Economy

A monitoring conducted by the “Mal” newspaper revealed the recommendation of a number of research companies to increase the weight of the shares of 22 companies listed on the Saudi stock market “Tadawul” during the elapsed period of the first quarter of this year, including 20 companies that have not yet reached the target price for their shares, while M Company has exceeded IS and Sasco price target.

According to the monitoring, Jazz topped the companies in terms of not reaching the target price of 95 riyals per share, as GI Capital recommended last May 25 to increase the weight of the company’s share, and the share price at that time was 75 riyals per share, while the current share price is at the close of Monday, corresponding to June 12, 2023 at 74 riyals per share, down 28.4% from the target price per share

The share of Extra Company came second, as it closed at 73.5 riyals per share, down 27.9% from the target price of the share, which was estimated by Aljazira Capital at 94 riyals in mid-April, then the share of Jahez Company, down 24.6% from the target price by Al Rajhi Capital of 720 riyals. per share.

On the other hand, MIS’s share exceeded the target price set by Ubhar Capital of 135.4 riyals per share, by 9.2%, as the share is trading at 149.2 riyals per share, while SASCO’s share rose above the price estimated by GI Capital, which indicated 51. riyals per share, while the share closed at 51.5 riyals at the end of the session on Monday, June 12.

According to what was shown by the monitoring, GI Capital recommended increasing the weight of the shares of 8 companies listed on the Saudi stock market “Tadawul”, 7 of which are trading below the target price of the share, while SASCO exceeded the target price by 1%.

On the other hand, Al-Rajhi Capital recommended increasing the weight for the shares of 6 other companies, all of which are trading below the target price, while Ubhar Capital recommended increasing the weight for the shares of 4 companies, 3 of which are below the target price, and MIS exceeded the price estimated by the company, while Al-Jazira Capital recommended increasing the weight for the shares of 3 Companies also have not yet reached the price estimated by the research company, at a time when the drug company’s share is trading close to the price estimated by the National Capital of 100.3 riyals, as the share closed at 98.4 riyals.

Amazon confirmed that a number of services on its cloud unit (AWS) were disrupted yesterday, Tuesday, with customers, adding that it was working to end the failure.

Down Detector, which tracks outages of electronic services, said regarding 12,000 users reported problems accessing services.

The number of users affected by this malfunction may be greater than that.

The status page for the AWS unit showed a message saying, “We have identified the underlying cause as an issue with the AWS Lambda and are working closely to resolve it.”

AWS Lambda is a service that allows customers to run computer programs without having to manage any underlying servers.

This service is used by some companies such as T-Mobile US, Netflix and Autodesk.
None of the three companies have yet to respond to requests from Archyde.com for comment.

“Inflation rates remain elevated but the moderate slowdown gives the Fed room to suspend rate hikes,” said Kathy Bostjancic, chief economist for Nationwide Insurance Company.

The meeting of the Fed’s monetary policy committee (FOMC) began Tuesday morning, two hours following the publication of the latest inflation figures.

And that might weigh heavily in the balance, because consumer prices slowed down their vertiginous escalation sharply in May, to 4.0% over one year once morest another 4.9% the previous month, according to the CPI index, i.e. the lowest level since March 2021.

Inflation is now half as high as in June 2022, when the peak of 9.1% was reached.

This remains well above the 2.0% targeted by the Fed, maneuvering to extinguish this surge in prices, but the institution is beginning to see its objective.

After ten increases in a row, of five percentage points in total – which brought its main key rate to the range of 5.00 to 5.25% – several of its officials were in favor of a break.

This “would allow us to observe more data before making decisions on the magnitude” of the increases still necessary, explained in particular Philip Jefferson, one of the governors of the Fed, and soon vice-president if the Senate confirms his appointment. .

And also to avoid weighing too much on consumption and investment, and therefore on economic activity. Above all, to avoid a recession.

“Open Door”

The bulk of market participants now believe the Fed will pause, according to CME Group’s assessment.

For consumers, the good news would be twofold: prices that rise less sharply and more affordable bank loans.

“However, if the economic data continues to surprise on the upside and inflation remains strong, the door is open for a further rate hike in the coming months – as early as July” at the next meeting, warns Kathy nevertheless. Bostjancic.

The Fed favors another measure of inflation, the PCE index whose data for May will be published at the end of June and which started to rise once more in April, to 4.4% over one year.

On the labor market, labor shortages persist although the situation is improving.

Job creations in May were much higher than forecast, but the unemployment rate rose more than expected, to 3.7%. And weekly jobless claims were in early June at their highest since October 2021.

Inflation, labor market data and credit conditions “will determine whether the FOMC is done raising rates or whether further tightening is needed,” said Rubeela Farooqi, chief economist for HFE.

However, it anticipates that “rates will be maintained at the current level, at least until the end of the year”.

Fed officials will also update their March forecasts for gross domestic product (GDP) growth, unemployment and inflation. And they will say how far they expect to drive rates up.