Trading results for 7 March 2025
The past week did not bring clarity to the current situation and left many open questions. Naturally, expecting any kind of growth in such conditions would be naive. As a result, we observed alternating periods of substantial sell-offs and relatively weak rebounds. President Trump’s inconsistency in tariff policies – imposing duties one moment and suspending them the next – created confusion among investors, outweighing any positive factors that occasionally surfaced in the market.
It reached the point where even U.S. Federal Reserve Chairman Jerome Powell had to step in, attempting to calm investors. His efforts were acknowledged – the market did recover slightly after his reassurances that “everything is under control.” However, on a broader scale, this did not alter the overall picture. The losses in the U.S. market over the week were significant: the Dow Jones Industrial Average (DJIA-30) dropped by 2.37%, the NASDAQ Composite declined by 3.45%, and the S&P 500 fell by 3.1%.
Beyond these general losses, thoughtful investors are also growing concerned about the technical picture unfolding in the market. All major indexes are approaching their 200-day moving averages. While the DJIA-30 and S&P 500 are still holding slightly above this psychologically important support level, the NASDAQ has already broken below it. This is occurring with increased trading volumes, which is another negative signal for investors.
Sectoral analysis does not inspire much optimism either. Nine out of 11 sectors ended the past week in negative territory. Only the commodities sector managed to stay afloat, gaining an average of 0.69% over the week. Gold mining companies performed the best, as their stocks were in demand amid rising gold prices. Shares of Barrick Gold (GOLD) – the segment leader – surged more than 4%, while Newmont Corp. (NEM) climbed nearly 2.5%. This coincided with a 1.74% increase in gold prices over the same period. Notably, both companies are listed on ITS.
Unfortunately, the commodities sector was the only one to show any growth over the week. The healthcare sector ended with a purely symbolic gain of 0.02%, while all others declined. Some sectors – financials, consumer cyclicals, and technology – experienced particularly heavy losses. The first two sectors fell by more than 4% over the week, while the technology sector was not far behind, dropping nearly 3.5% (‑3.48%).
Given the significant influence of the U.S. on global finance, one might have expected ITS indexes to mirror the performance of the American market entirely. However, the results turned out to be somewhat different. The ITS Shariah Index (ITSS), which tracks Shariah-compliant securities, did follow the major U.S. indexes, losing 3.25%. Meanwhile, the ITS World Index (ITSW), which represents the global market, demonstrated far greater resilience, declining by only 0.22%.
ITSW’s relatively strong performance was supported by its broad geographical diversification. Unlike indexes that are predominantly U.S.-focused, ITSW includes companies from Europe and Asia. It was precisely the stocks from these regions that acted as key drivers of growth, helping the index stay afloat. Chinese tech giants played a leading role in this dynamic.
This is reflected in the performance of major Chinese indexes. While the broad Shanghai Composite Index rose by 1.56% over the week, the Hong Kong-based Hang Seng Index – which has a high concentration of Chinese “big tech” companies – skyrocketed, gaining a remarkable 5.62%. This surge helped ITSW minimise its losses and remain relatively stable amid the U.S. market sell-off. The biggest contributors to ITSW’s performance were Chinese giants Alibaba (BABA), which gained over 6% for the week, and Baidu (BIDU), which saw an impressive 10% increase in its market capitalisation.