Reports

2022-12-15

Daily Market Monitor 15-12-2022

Tadawul Review:

Tadawul All-Share Index (TASI) ended Wednesday's session up for the second day in a row by +27 points (+0.3%), to close at 10,248 levels. TASI opened the session positively, up +69 points, and continued to rise in the first hours of trading as it reached its intraday high, surpassing the level of 10,300, achieving +165 points from the previous close, but TASI began to decline after that to reduce its profits by 138 points. In general, 16 sectors out of 20 closed in the green zone, while 127 shares rose and 69 fell. Health Care Equipment & Svc sector contributed the most to the index's rise (+4.4%), followed by Energy (+1.1%), and Food & Beverages ‎‎(+1.2%), as they contributed to the index's rise with a total of 23 points. Stock-wise, Aramco (+1%), Arab National Bank (+4.9%), and Riyad Bank (+1.9%) contributed most to the stability and rise of the index. The trading activity witnessed a decline in the volume and value of trading by 35% and 8%, respectively, to reach 348mn shares and SAR5.2bn.

 

 

Market Wrap International:

The global equity indices turned lower on Wednesday on the disappointment over the Fed dot plot (the median forecast of Fed policy makers) and comments of the Fed Chair. A 50bps rate hike by FOMC to 4-4.25 (upper and lower bound) was broadly expected however guidance on terminal rate of 5.1% came ahead of market expectations which had used the recent CPI print as its anchor. The benchmark S&P 500 and Nasdaq Composite swung from gains to losses post the rate hike decision and closed with losses of 0.6% and 0.8% respectively. 10 out of 11 listed industrial groups in the S&P ‎‎500 were red. Treasury yields moved in divergent directions.

The indices in Europe broadly moved lower in the last session on soft CPI print in the U.S. Investors remained cautious with important decisions from the central banks to be announced ‎‎(FED, ECB, BOE). The benchmark Stoxx Euro 600 Index remained negative for most of the session and made an intraday low of 0.7% before paring most of its losses and closing little changed on Wednesday the country level indices were lower by 0.1-0.3% at session close.

In Asia, markets celebrated soft CPI data and further affirmation of economic reopening in China. Tech-based Indices with heavy tilt to exports were the major gainers with KOSPI (+1.1%), and TAIEX (+1.5%) emerging as the best performers followed by HangSeng (+0.4%) and TOPIX ‎‎(+0.6%). Reportedly, the Chinese authorities have decided to count only symptomatic cases in the overall infection cases, hinting at a more accommodative stance towards COVID-19.

Daily Market Monitor 15-12-2022