Saudi Daily Market Report - 18 Sep

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1. Daily Market Report Saudi Arabia Stock Exchange 18 September 2016 TASI Index Turnover (SAR mn) 6,176.5 2,064.1 Global commentary TASI Intra Day Movement Intraday Previous Close  US stock markets advanced over the past week, owing to gains in Apple. Further, the investors awaited the Fed monetary policy meeting. The Nasdaq Composite Index and the S&P500 rose 2.3% and 0.5%, respectively, while the Dow Jones added 0.2%.  European markets declined last week, as the US Justice Department demanded a US$14bn fine from Deutsche Bank as a settlement for wrongly selling mortgage-backed securities, which fueled concerns that other banks could also be fined. The CAC 40 dropped 3.5%, led by losses in oil & gas, utilities and financial sectors, while the DAX lost 2.8%. Meanwhile the FTSE 100 fell 1.0%.  Most of the GCC markets were closed for the week on account of Eid al-Adha holidays. Dubai and Abu Dhabi dropped 1.1% and 0.4%, respectively. However, Bahrain gained 0.4%.  Asian markets dropped over the past week. The Hang Seng Index and the Nikkei 225 fell 3.2% and 2.6%, respectively, while the Shanghai Composite Index and the KOSPI declined 2.5% and 1.9%, respectively.  Brent crude declined 1.8% on Friday, as concerns over a global glut increased owing to rise in crude oil exports from OPEC member countries. Key crude contracts Brent and WTI ended at US$ 45.77 (1.8%) and US$ 43.03 (-2.0%), respectively. 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 13:30 13:45 14:00 14:15 14:30 14:45 6,190 6,180 6,170 6,160 6,150 6,140 6,130 6,120 6,110 Research Department research@alrajhi-capital.com Tel:+966 11 211 9370 0.61% -18% TASI – Activity Trend (Last 10 Days) Thousands Turnover (LHS, SAR bn) TASI Index (RHS) 6 9,000 8,500 8,000 7,500 7,000 6,500 6,000 5,500 5,000 4 2 8-Sep 7-Sep 6-Sep 5-Sep 4-Sep 1-Sep 31-Aug 30-Aug 29-Aug 28-Aug - Regional Indices WTD% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 YTD% -10.6 1.0 -3.3 4.5 10.5 6.9 -7.5 -4.6 Major Com m odities / Currencies Close 1D % WTD % Gold Spot $/Oz 1,310 -0.3 -1.3 Silver Spot $/Oz 18.78 -1.1 -1.4 Crude Oil (Brent) 45.77 -1.8 0.0 OPEC Basket 41.67 -2.1 -6.5 Euro 1.12 -0.8 -0.7 USD Index 96.11 0.9 0.0 JPY 102.290 0.0 0.4 YTD % 23.4 35.5 4.5 33.3 2.7 -2.6 17.5 Major Global Indices Close DJ Industrial 18,124 S&P 500 2,139 Nikkei 225 16,519 Hang seng 23,336 FTSE 100 6,710 CAC 40 4,332 MSCI World 1,696 MSCI EM 885 YTD % 4.0 4.7 -13.2 6.5 7.5 -6.6 2.0 11.5 KSA (TASI) Qatar (DSM) Kuw ait (KSE) Abu Dhabi (ADSM) Dubai (DFM) Oman (MSM30) Bahrain (BSE) MSCI GCC Close 6,177 10,534 5,429 4,499 3,482 5,778 1,125 433 1D% 0.6 -0.9 0.3 -0.4 -1.1 -0.1 0.4 0.0 1D % WTD % -0.5 0.0 -0.4 0.0 0.7 0.0 0.6 0.0 -0.3 0.0 -0.9 0.0 -0.5 0.0 -0.4 0.0 Saudi commentary  Tadawul All Share Index (TASI) gained 37.15 points or 0.61 % to close at 6,176.53 on 8th September 2016. Thirteen of the fifteen sector indices closed higher. The advance decline ratio was 126/38. Trading turnover was around SAR 2.06bn. The market will be open today after Eid holidays. After weak volumes in the recent periods, we would wait for two more weeks to take a call on what could be the range for normal trading volumes.  Umm Al-Qura begins commercial operations and sales of its new Portland cement production line: Umm Al-Qura Cement has begun the commercial operations and sales of its new Portland cement production line. However, the cement producer added that it would be difficult to measure the financial impact at this stage due to supply and demand factors (Tadawul)  Al Rajhi Bank, Saudi REDF to launch new loan program in days: The Real Estate Development Fund (REDF) plans to launch the accelerated loan program in partnership with Al Rajhi Bank within the next few days, Saudi daily Alriyadh newspaper has reported .(Argaam) Interest Rates 1M 3M 12M 3M Chg 1Y LIBOR (USD) 0.53 0.86 1.54 0.52 SAIBOR 2.06 2.34 2.63 1.46 EIBOR 0.74 1.20 1.78 0.38 Data Sources: Bloomberg Updated as of 18/Sep/2016 8:16 AM Please see penultimate page for additional important disclosures. Al Rajhi Capital (Al Rajhi) is a foreign broker-dealer unregistered in the USA. Al Rajhi research is prepared by research analysts who are not registered in the USA. Al Rajhi research is distributed in the USA pursuant to Rule 15a-6 of the Securities Exchange Act of 1934 solely by Rosenblatt Securities, an SEC registered and FINRA-member broker-dealer. 1
2. Daily Market Report Saudi Arabia Stock Exchange TASI – Large Cap (>10% Index weight) Sectors’ Performance TASI – Top Gainers / Losers 1D % (LHS) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 MTD % (LHS) YTD % (RHS) 10.0 5.0 0.0 -5.0 Company Saudi Res and Mktg SGS SIIG Sipchem Banq Saudi Fr Last Price 29.62 44.62 13.44 13.95 22.78 Chg % 6.2 4.6 3.9 3.4 3.3 Vol (mn) Value Trd (SAR mn) 1.029 30.34 0.374 16.27 0.512 6.81 0.413 5.70 0.091 2.06 Company Amana Coop Ins Al-Ahlia Coop Ins NIC Wala'a Insurance Saudi Steel Pipe Last Price 8.6 6.0 13.3 14.6 17.1 Chg % -2.3 -2.0 -1.6 -1.6 -1.4 Vol (mn) Value Trd (SAR mn) 1.348 11.75 1.579 9.45 2.720 36.08 0.249 3.66 0.164 2.82 -10.0 -15.0 -20.0 TASI Petrochem Banks Telecom TASI – Mid Cap (5 -10% index weight) Sectors’ Performance 1D % (LHS) MTD % (LHS) TASI – Top Index Movers / Losers (Heavy weight stocks) YTD % (RHS) 1.6 5.0 1.4 0.0 1.2 1.0 -5.0 0.8 Company Banq Saudi Fr Jabal Omar Riyad Bank Al Rajhi Bk NCB Last Price 22.78 60.22 10.65 57.56 35.85 Chg % 3.3 1.0 1.9 0.4 0.8 Index Imp Value Trd (SAR mn) 4.8 0.09 3.4 0.29 3.2 0.73 3.0 1.23 2.1 0.42 Company Saudi Elec NIC Sabb Samba Al Othaim Last Price 18.93 13.25 19.21 19.21 84.33 Chg % -1.2 -1.6 -0.5 -0.1 -0.5 Index Imp Value Trd (SAR mn) -1.6 32.06 -1.3 36.08 -0.5 1.04 -0.2 12.04 -0.1 8.18 Chg % 0.6 0.9 0.2 1.1 3.0 -1.6 0.2 0.1 -1.2 1.4 Vol (mn) Value Trd (SAR mn) 27.012 342.14 8.369 55.45 7.777 43.61 4.508 45.93 3.565 56.69 2.720 36.08 2.531 213.55 2.265 31.65 1.686 32.06 1.683 60.41 -10.0 0.6 0.4 -15.0 0.2 -20.0 0.0 Insurance -0.2 Real Estate Agri -25.0 TASI – Small Cap (<5% index weight) Sectors’ Performance 1D % (LHS) 4 MTD % (LHS) YTD % (RHS) 3 2 1 Media Hotels Multi invt Transport Energy Retail Building Industries -2 Cement 0 -1 30.0 20.0 10.0 0.0 -10.0 -20.0 -30.0 -40.0 -50.0 -60.0 Last Price 52Wk High 15.23 15.23 19.39 19.39 47.91 48.30 71.47 73.00 15.04 15.40 % Diff 0.0% 0.0% 0.8% 2.1% 2.4% Company Alinma Bk Saudi Kayan Dar Al Arkan Saudi Paper Mfg Saudi Printing & Pkg NIC Sabic Emaar Eco City Saudi Elec Al Tayyar Last Price 12.72 6.64 5.61 10.10 15.71 13.25 84.23 13.99 18.93 35.90 TASI - Stocks Closer to 52 Week Low TASI – Stocks Closer to 52 Week High Company Sanad Coop Ins Weqaya For Takaf Filing & Packing National Medical United Co-Operat TASI – Volume Leaders Value Trd (SAR mn) 0.000 0.000 5.486 13.144 78.676 Company Sanad Coop Ins Weqaya For Takaf Saudi Hollandi ANB Riyad Bank Last Price 52Wk Low 15.23 15.23 19.39 19.39 10.75 10.60 17.10 16.85 10.90 10.70 % Diff 0.0% 0.0% 1.4% 1.5% 1.9% Value Trd (SAR mn) 0.000 0.000 4.880 8.468 2.124 Data Sources: Al Rajhi Capital, Bloomberg Disclosures Please refer to the important disclosures at the back of this report. 2
3. Daily Market Report Saudi Arabia Stock Exchange Performance of Regional markets Last Index Change (%) Close 1D 1M YTD Saudi Arabia 6,177 0.6 1.6 -10.6 Qatar 10,534 -0.9 -4.1 1.0 Dubai 3,482 -1.1 -0.6 10.5 Abu Dhabi 4,499 -0.4 0.6 4.5 Kuw ait 5,429 0.3 0.2 -3.3 Oman 5,778 -0.1 0.7 6.9 Bahrain 1,125 0.4 -1.5 -7.5 Data Sources: Al Rajhi Capital, Bloomberg Country 15-Sep 8-Sep 7-Sep 6-Sep 5-Sep 4-Sep 4,000 1-Sep 0.0 Qatar – Activity Trend (Last 10 Days) Services Telcom Transport Investment Insurance Reality Bank 1D % (LHS) MTD % (LHS) YTD % (RHS) Consumer Insurance Services Industrial 20.0 -30.0 MTD % (LHS) 1.0 11,200 -1.0 YTD % (RHS) 20.0 8-Sep 7-Sep 6-Sep 5-Sep 4-Sep 1-Sep 31-Aug -4.0 10,000 -5.0 Insurance Transport Real Estate 10,400 Consumer Bank -3.0 15.0 Last Price Change % 1.57 1.3 0.99 1.0 1.51 0.7 8.20 0.2 NA NA Vol (mn) 59.30 0.15 2.38 0.04 NA Company Takaful Emarat Ins Drake & Scull Intl Emaar Malls Damac Properties Arabtec Last Price Change % 2.74 -6.5 0.50 -2.7 2.73 -2.5 2.36 -2.1 1.48 -2.0 Vol (mn) 0.23 36.52 4.59 2.00 11.14 Company United Arab Bk RAK Ceramics Waha Capital RAK Cement UNB Last Price Change % 2.25 13.6 3.08 3.7 1.99 2.1 0.84 1.2 4.33 0.7 Vol (mn) 0.005 0.209 0.430 0.100 4.684 Company Arkan Building Mat AD Nat (TAQA) Agthia Group ADCB Aldar Prop Last Price Change % 0.79 -6.0 0.50 -5.7 5.46 -4.9 6.28 -2.3 2.65 -2.2 Vol (mn) 0.017 0.175 2.860 3.560 20.844 Company Vodafone Qatar Gulf Intl Servcs Qatar Insurance Mazaya Qatar Aamal Co Last Price Change % 11.35 1.3 36.00 1.1 87.70 0.8 14.00 0.7 15.40 0.7 Vol (mn) 1.125 0.254 0.178 0.096 0.397 Company QIsB CBQ Ooredoo Ezdan Hold Nakilat Last Price Change % 102.40 -3.7 38.40 -2.4 96.50 -2.3 17.80 -2.1 23.70 -1.9 Vol (mn) 0.232 0.291 0.275 1.146 0.709 10.0 5.0 -6.0 -7.0 Company Ajman Bank Takaful House Tabreed ENBD NA Qatar – Top Gainers / Losers 25.0 DSM -2.0 Div Yld 12M (%) 3.8 3.9 4.3 5.4 4.4 5.0 4.9 0.0 -10.0 2.0 11,600 10,800 0.0 10.0 -20.0 1D % (LHS) P/B (x) Current 1.4 1.6 1.3 1.5 1.0 1.1 0.4 Abu Dhabi – Top Gainers / Losers 30.0 Telecom 0.3 30-Aug 0.0 Abu Dhabi – Sector Performances 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 -8.0 P/E (x) 2017E 11.8 -4.0 1.0 6.3 8.5 -8.2 NA 5.0 -5.0 0.0 29-Aug 10.0 Qatar – Sector Performances DSM Index (RHS) 0.6 28-Aug 30.0 15.0 Fin.Services 4,500 31-Aug YTD % (RHS) 0.0 -5.0 P/E (x) 2016E 13.0 13.3 11.3 12.0 NA 8.8 NA Dubai – Top Gainers / Losers 20.0 Banks 5,000 30-Aug P/E (x) 12M 14.6 14.7 12.5 12.0 18.7 10.1 9.4 25.0 Telecome 0.5 29-Aug MTD % (LHS) Energy ADSMI Index (RHS) Turnover (LHS, QAR bn) 1D % (LHS) ADSM Abu Dhabi – Activity Trend (Last 10 Days) Turnover (LHS, AED bn) 5.0 Real Estate 8-Sep 5-Sep 4-Sep 1-Sep 31-Aug 30-Aug 29-Aug 0.0 Turnover US$ mn 537 109 93 70 24 7 1 15-Sep 0.4 7-Sep DFMGI Index (RHS) 3,560 3,540 3,520 3,500 3,480 3,460 3,440 6-Sep Turnover (LHS, AED bn) 0.8 Volume mn shr 105 8.4 206 63 67 8 1.2 Dubai – Sector Performances DFM Dubai – Activity Trend (Last 10 Days) MCap US$ bn 383 131 83 120 80 17 18 0.0 Data Sources: Al Rajhi Capital, Bloomberg Disclosures Please refer to the important disclosures at the back of this report. 3
4. Daily Market Report Saudi Arabia Stock Exchange Kuwait – Sector Performances 1D % (LHS) MTD % (LHS) Kuwait – Top Gainers / Losers YTD % (RHS) 2.0 1.0 Oil&Gas Healthcare Insurance Basic material Telecom Consumer Parallel Services Bank Fin. Services Industrial Real estate Investment -2.0 KSE 0.0 -1.0 Technology 5,440 5,430 5,420 5,410 5,400 5,390 5,380 5,370 5,360 5,350 8-Sep 7-Sep 6-Sep 5-Sep 4-Sep 31-Aug 30-Aug 29-Aug 1-Sep Turnover (LHS, KWD mn) KWSEIDX Index (RHS) 8 7 6 5 4 3 2 1 0 28-Aug Thousands Kuwait – Activity Trend (Last 10 Days) -3.0 -4.0 1.5 1.0 0.5 15-Sep 8-Sep 7-Sep 6-Sep 5-Sep 4-Sep 1-Sep 31-Aug 30-Aug - 16.0 1.0 14.0 0.8 12.0 0.6 10.0 0.4 8.0 0.2 6.0 0.0 -0.2 MSM 30 Bank Industry Services 4.0 -0.4 2.0 -0.6 0.0 Bahrain – Sector Performances 2.0 1D % (LHS) MTD % (LHS) YTD % (RHS) -6.0 -8.0 -10.0 -12.0 -14.0 -16.0 Services -4.0 0.0 Vol (mn) 0.087 0.050 0.343 0.052 0.022 Company Al Arabi Group Tameer Real Estate -10.0 Al Safat Energy Kuw ait Resorts Co -15.0 Wethaq Takaful -5.0 Last Price Change % 55 -5.2 21 -4.6 36.5 -4.0 82 -3.5 30.5 -3.2 NA NA NA NA NA Company Last Price Change % NA NA NA NA NA NA NA NA NA NA Vol (mn) NA NA NA NA NA Company Oman Cables Ind NA NA NA NA Last Price Change % 1.704 -0.1 NA NA NA NA NA NA NA NA Vol (mn) 0.000 NA NA NA NA Bahrain – Top Gainers / Losers 0.0 -2.0 Vol (mn) 0.930 2.199 0.015 0.886 0.010 Oman – Top Gainers / Losers YTD % (RHS) Industries 1,150 1,145 1,140 1,135 1,130 1,125 1,120 1,115 1,110 1,105 2.0 MTD % (LHS) Insurance BHSEASI Index (RHS) 2.5 29-Aug Thousands Turnover (LHS, BHD mn) 1D % (LHS) Hotel & Tourism Bahrain – Activity Trend (Last 10 Days) 1.2 Banks 5-Sep 4-Sep 1-Sep 31-Aug 30-Aug 29-Aug 28-Aug 0 8-Sep 4 7-Sep MSM30 Index (RHS) 5,820 5,800 5,780 5,760 5,740 5,720 5,700 5,680 5,660 6-Sep Turnover (LHS, OMR mn) 8 Oman – Sector Performances BSE Oman – Activity Trend (Last 10 Days) Company Last Price Change % 20.0 Amw al Intl Invest 21 7.7 36 7.5 15.0 Kuw ait Remal RE Al Massaleh Real 38 7.0 10.0 Inovest Co 66 4.8 Kw t & Gulf Link Transp 44 4.8 5.0 0.0 -5.0 -10.0 -15.0 -20.0 -25.0 -30.0 Company Albaraka Banking Ahli United Bk Al-Salam Bank NA NA Company BMMI NBB NA NA NA Last Price Change % 0.400 5.3 0.650 1.6 0.091 1.1 NA NA NA NA Vol (mn) 0.020 0.457 0.380 NA NA Last Price Change % 0.840 -1.2 0.700 -0.7 NA NA NA NA NA NA Vol (mn) 0.050 0.021 NA NA NA Data Sources: Al Rajhi Capital, Bloomberg Disclosures Please refer to the important disclosures at the back of this report. 4
5. Daily Market Report Saudi Arabia Stock Exchange IMPORTANT DISCLOSURES FOR U .S. PERSONS This research report was prepared by Al Rajhi Capital (Al Rajhi), a company authorized to engage in securities activities in Saudi Arabia. Al Rajhi is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This research report is provided for distribution to “major U.S. institutional investors” in reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”). 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6. Daily Market Report Saudi Arabia Stock Exchange Disclaimer and additional disclosures for Equity Research Disclaimer This research document has been prepared by Al Rajhi Capital Company (“Al Rajhi Capital”) of Riyadh, Saudi Arabia. It has been prepared for the general use of Al Rajhi Capital’s clients and may not be redistributed, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of Al Rajhi Capital. Receipt and review of this research document constitute your agreement not to redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information contained in this document prior to public disclosure of such information by Al Rajhi Capital. The information contained was obtained from various public sources believed to be reliable but we do not guarantee its accuracy. 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