Saudi Stock Market Report

Transcription

1 Market Snapshots TASI Intra-day Movement Source: Tadawul Stock Exchange, Official Website Index Market Summary Close Value Traded 6,964,130, Volume 359,695,649 Trades 160,954 Symbols Traded 148 Market Breadth 67:62 Source: Tadawul Stock Exchange, Official Website Indices Summary Index Close MTD YTD Tadawul All Share Index 6, Banks & Financial Services 14, Petrochemical Industries 6, Cement 5, Retail 6, Energy & Utilities 4, Agriculture & Food Ind. 5, Telecom & IT 1, Insurance Multi-Investment 2, Industrial Investment 5, Building & Construction 3, Market Commentary Global markets steady on tuesday Global equity markets gained on Tuesday as Chinese data signaling in its economic slowdown fueled speculation that the Chinese government may ease regulations to stimulate growth. NYMEX Crude Oil rose to the highest level in three days on speculation that China will intensify monetary stimulus, supporting fuel demand. France pushing for a ban on Iranian imports further supported the rise in crude prices, which crossed the $101 per barrel mark on Tuesday. Tadawul extended losses on disappointing results Disappointing corporate results and the anticipation that further announcements would be below market expectations saw the Tadawul All Share Index fall by 0.8 to 6, Positive global markets and rising crude oil prices did not have any impact on the Saudi investors. The Petrochemical led the market fall. Saudi Kayan was the top loser of the day and sank 6.7 after the company on Monday post trading hours announced that its Q loss widened by more than Saudi Kayan s major stakeholder SABIC declined by 2.1 to SAR92. SABIC post trading hours announced that its net income for Q reached SAR 5.24bn (as against analysts expectations of SAR7.56bn), a decrease of 10 from Q4 2010, and a decrease of 36 from Q Sahara Petrochemical slumped 3.6 after the company on Monday announced 89 drop in Q profits. Industrialization slipped 3.3 after it said that Q profits reached SAR544.1mn, an increase of 42.7 compared to Q and a decrease of 25 compared to Q Nama Chemicals bucked the negative trend and surged 9.6, featuring among the top gainers of the day. CHEMANOL jumped 7.3 after the company announced on Sunday a 483 increase in quarterly earnings. Most of the banking stocks fell with Al Rajhi, SAMBA and Riyad Bank dipping by 1.4, 0.2 and 0.4 respectively. Al Rajhi post trading hours announced a 13.9 increase in Q earnings as against analysts expectations of 15 increase in net profits. Riyad Bank post trading hours announced a meager 1.8 increase in Q earnings. Saudi Fransi retreated by 1.2 after the lender announced on Monday a 6.8 dip in Q earnings. Among the other notable losers of the day were Almarai and Ma aden. Almarai, the largest food company of the Kingdom dropped 1.0 after the company announced that its Q profits decreased as compared to Q Ma aden fell 0.4 during the day. Newsmakers Saudi Arabia said on Monday it favors an oil price of $100 per barrel, identifying an ideal oil price for the first time in more than three years. (Reuters) Saudi Market Outlook The Saudi market is likely to trade negative today after the disappointing results, particularly that of SABIC as well as those of the large-cap lenders. Real Estate Development 2, Transport 2, Media and Publishing 2, Hotel & Tourism 5, Source: Tadawul Stock Exchange, Official Website Index Close Volume ( 000) Regional Market Statistics Turnover (US$ 000) No. of Trades MTD YTD Abu Dhabi SM 2, ,477 32,974 1, Dubai FM 1, ,659 16,051 1, Kuwait SE 5, , ,024 4, Doha SM 8, ,447 41,159 2, Muscat SM 5, ,677 9,938 1, Bahrain SE 1, Source: Official websites of the Regional Stock Exchanges 1

2 Market Movers & Shakers Top Gainers Closing Volume (mn) Top Losers Closing Volume (mn) Saudi Industrial Wataniya Nama Chemicals ACE CHEMANOL Saudi Kayan Gulf Union SADAFCO Sahara Petrochemical Industrialization Volume Leaders Value Leaders Closing Volume (mn) Closing Value (SAR mn) Nama Chemicals Saudi Kayan CHEMANOL Alinma SAPTCO Week New High / Low Closing New High AL Bilad HCC Arabian Shield Saudi Industrial New Low SABIC Saudi Kayan Nama Chemicals CHEMANOL SISCO Stocks consistently gaining / losing over last three trading sessions (Top 6) Current 3 Days 3 Days Avg. Volume (mn) Saudi Industrial Cables Walaa Insurance SSP H B FIPCO Sector Turnover (SAR mn) Sector Volume (mn) Banks & Financial Services Petrochemical Industries Cement Retail Energy & Utilities Agriculture & Food Industries Telecom. & Information Technology Insurance Multi-Investment Industrial Investment Building & Construction Real Estate Development Transport Media and Publishing Hotel & Tourism Source: Data pertaining to all the tables and charts in this page are taken from Tadawul Stock Exchange, Official Website 2

3 Saudi Technical Watch R: Resistance S: Support PP: Pivot Point The TASI on Tuesday hit our suggested target of 6,352 and closed below the 40 Day DEMA (6,440). Most of the technical indicators like the MACD, the CCI, and the short-term stochastic and the Williams R are in a negative mode. The short-term outlook of the market is uncertain. The TASI may find support at 6,352, 6,330 and 6,228, whilst it may see resistance at 6,328, 6,408 and 6,431. TASI 6, , , , , Tadawul All Shares Index SABIC Saudi Basic Industries Corp. SABIC on Tuesday hit our suggested target of and closed below the 10 day DEMA (93.40). The MACD and the CCI are giving a negative signal. Investors may sell the stock, with a stop loss of 93.40, for a target of 90 and

4 Saudi Technical Watch STC Saudi Telecom Co. Saudi Telecom on Tuesday traded above our suggested stop loss of and closed above the 10 day DEMA (34.05). The MACD and the CCI are giving a positive signal. Investors may buy the stock, with a stop loss of 33.90, for a target of and Al Rajhi Al Rajhi Bank Al Rajhi on Tuesday closed below the 20 day DEMA (72.75). However, the short-term stochastic and the CCI are giving a positive signal, whilst the RSI closed at Investors are advised to avoid the stock for the time being and wait for our next call. 4

5 Saudi Technical Watch SECO Saudi Electricity Co. Saudi Electricity on Tuesday closed below the 10 day DEMA (13.64). The MACD and the CCI are giving a negative signal. Investors may sell the stock, with a stop loss of 13.65, for a target of and MA ADEN Saudi Arabian Mining Co. MA ADEN on Tuesday touched an intra-day low of and closed below the 10 day DEMA (24.99). The MACD is giving a positive signal, whilst the CCI is in a negative mode. Investors may avoid the stock for the time being and wait for our next call. 5

6 GCC Technical Watch EMAAR Emaar Properties (Dubai Financial Market) EMAAR on Tuesday faced resistance at 2.45 and closed below the 10 day DEMA (2.44). The MACD and the CCI are giving a negative signal. Investors may sell the stock, with a stop loss of 2.46, for a target of 2.39 and ARTC ARTC on Tuesday hit our suggested stop loss of 1.70 and closed below the 10 day DEMA (1.70). The MACD and the CCI are giving a positive signal, whilst the short-term Stochastic and the Williams R are in a negative mode. Investors may exit the stock and wait for our next call. Arabtec Holding (Dubai Financial Market) 6

7 GCC Technical Watch Dana DANA on Tuesday formed an Outside Bar pattern and closed above the 10 day DEMA (0.365). The short-term Stochastic and the Williams R are in a negative mode, whilst the RSI closed at 28. Investors may buy the stock, with a stop loss of 0.35, for a target of 0.40 and Dana Gas PJSC (Abu Dhabi Securities Market) IQCD Industries of Qatar (Doha Securities Market) IQCD on Tuesday closed below the 125 day SMA (130.00). The MACD and the CCI are in an oversold zone. Risk takers may buy the stock, with a stop loss of , for a target of

8 GCC Technical Watch KFIN Kuwait Finance House (Kuwait Stock Exchange) KFIN on Tuesday closed above the 10 day DEMA (877). The short-term Stochastic and the Williams R are in an oversold zone. Investors may buy the stock, with a stop loss of 880, for a target of 900 and

9 Corporate News & Announcements Al Rajhi Bank announced that its net profit for Q reached SAR1.8bn, as compared to SAR1.6bn for Q4 2010, an increase of The bank distributed dividend for year 2011 at SAR3.25 per share. Emaar The Economic City announced that its net income for Q reached SAR2.4mn, as compared to net loss of SAR206.4mn for Q Almarai announced that its net income for Q reached SAR285.5mn, as compared to SAR283.8mn for Q4 2010, an increase of 0.6. National Industrialization announced that its net income for Q amounted to SAR544.1mn, as compared to SAR381.4mn for Q4 2010, an increase of Jabal Omar Development announced that its net loss during Q amounted to SAR36.8mn, as compared to loss of SAR37mn for Q4 2010, a decrease of 0.5. Saudi Arabia Refineries announced that its net profit for Q amounted to SAR0.33mn, as compared to SAR1.2mn, a decrease of 73. Herfy Food Services announced that its net income for Q reached SAR40.3mn, as compared to SAR33.1mn for Q4 2010, an increase of National Petrochemical announced that its net loss for Q reached SAR29mn, as compared to net profit of SAR41mn for Q Spimaco Addwaeih announced that its net income for Q reached SAR73.5mn, as compared to SAR70mn for Q4 2010, an increase of 5. Southern Province Cement announced that its net profit for Q amounted to SAR251mn, as compared to net profit of SAR165mn for Q4 2010, an increase of NADEC announced that its net income for Q amounted to SAR21.2mn, as compared to net loss of SAR14mn for Q Riyad Bank announced that its net income for Q reached SAR778mn, as compared to SAR764mn for Q4 2010, an increase of 1.8. Saud Basic Industries Corporation announced that its net income for Q reached SAR5.24bn, as compared to SAR5.81bn for Q4 2010, a decrease of 10, and compared to the net income for the third quarter of 2011 of SAR8.19bn representing a decrease of 36. Saudi Arabian Mining announced that its net income for Q reached SAR280mn, as compared to net loss of SAR61mn for Q

10 Tabuk Cement announced that its net profit for Q amounted to SAR28mn, as compared to net profit of SAR23.8mn for Q4 2010, an increase of Red Sea Housing Services announced that its net profit for Q amounted to SAR10.89mn, as compared to net profit of SAR24.67mn for Q4 2010, an increase of 55.9 and also recommend the distribution of cash dividends for the year 2011 at SAR1 per share. NSCSA announced that its net profit for Q amounted to SAR113.6mn, as compared to net profit of SAR55.4mn for Q4 2010, an increase of 105. Al Hassan Ghazi Ibrahim Shaker announced that its net income for Q amounted to SAR18mn, as compared to SAR21mn for Q4 2010, a decrease of 14. Savola Group announced that its net income for Q amounted to SAR498.6mn, as compared to SAR2mn for Q4 2010, an increase of 24,830 and also recommended the distribution of cash dividends for the year 2011 at SAR1.30 per share. Al-Baha Investment and Development announced that net loss during Q amounted to SAR1.5mn, as compared to net profit of SAR0.26mn for Q4 2010, and compared to SAR3.95mn for Q3 2011, a decrease of (Source: Tadawul) 10

11 Tadawul Market Performance & Valuation Table Current () MTD YTD 52-Week Range Volume ( 000) Value (SAR 000) Beta Dividend Yield () PE EPS Free Float () Market Cap (SAR mn) / Revenue P/B P/CF ROA () ROE () RIBL , , BJAZ , , Saudi Investment , Saudi Hollandi Bank , , Saudi Fransi Bank , , SABB , , Arab National , , SAMBA , , Al Rajhi ,192 86, , AL Bilad , , Alinma , , , N/A CHEMANOL , , , Petrochem ,412 29, N/A N/A ,840 N/A 2.1 N/A SABIC , , , SAFCO , , Industrialization ,305 89, , Alujain , , , N/A Nama Chemicals , , N/A N/A , N/A SIIG ,275 24, , Sahara Petrochemical ,511 95, , YANSAB , ,906 N/A 2.4 N/A Sipchem ,003 39, , N/A Advanced , , Saudi Kayan , , N/A N/A ,925 N/A 1.6 N/A Petro Rabigh ,352 54, N/A N/A , N/A Arab Cement , , N/A Yamamah Cement , , Saudi Cement , , Qassim Cement , , Southern Cement , , Source: Tadawul Stock Exchange, Official Website 11

12 Tadawul Market Performance & Valuation Table Current () MTD YTD 52-Week Range Volume ( 000) Value (SAR 000) Beta Dividend Yield () PE EPS Free Float () Market Cap (SAR mn) / Revenue P/B P/CF ROA () ROE () Yanbu Cement , , N/A Eastern Cement , Tabuk Cement , , Jouf Cement ,636 54, , HCC ,119 90, N/A N/A ,269 N/A 1.7 N/A A. Othaim Market , , Mouwasat , , EXTRA , N/A N/A N/A N/A N/A SASCO , N/A Thim ar , N/A N/A N/A Fitaihi Group , , Jarir , , Aldrees , , AlHokair , , AlKhaleej Trng , Gas&Industrialization , , Saudi Electricity ,850 25, , SAVOLA Group , , Food , SADAFCO , , Almarai , , Anaam Holding , N/A HB , , Herfy Foods , ,322 N/A 5.8 N/A NADEC , , Qassim Agriculture , N/A N/A , Tabuk Agriculture , Saudi Fisheries ,398 49, N/A N/A N/A Sharqiya Dev. Co , N/A N/A N/A Jouff Agriculture , Bishah Agriculture N/A N/A N/A 6.9 N/A N/A N/A Source: Tadawul Stock Exchange, Official Website 12

13 Tadawul Market Performance & Valuation Table Current () MTD YTD 52-Week Range Volume ( 000) Value (SAR 000) Beta Dividend Yield () PE EPS Free Float () Market Cap (SAR mn) / Revenue P/B P/CF ROA () ROE () Jazan Development , , STC , , Mobily ,448 25, N/A N/A , N/A ZAIN KSA N/A N/A N/A N/A N/A Atheeb Telecom , , N/A N/A N/A N/A N/A N/A N/A Almutakamela , , Tawuniya ,072 18, Malath Insurance , , N/A MEDGULF , N/A N/A N/A ALLIANZ SF , SALAMA ,035 20, N/A N/A N/A Walaa Insurance , N/A Arabian Shield ,016 29, N/A N/A N/A SABB Takaful , N/A N/A N/A SANAD , N/A N/A N/A SAICO , N/A Saudi Indian ,987 91, N/A N/A N/A Gulf Union , N/A N/A N/A ATC , N/A N/A N/A Al-Ahlia , N/A N/A N/A ACIG , N/A N/A N/A AICC , N/A Trade Union , N/A Sagr Insurance ,094 36, N/A UCA ,764 39, N/A N/A , N/A Saudi Re ,201 35, , N/A Bupa Arabia , N/A N/A N/A Weqaya Takaful ,621 88, N/A N/A , N/A Al Rajhi Takaful , N/A N/A N/A 6.8 N/A ACE , , Source: Tadawul Stock Exchange, Official Website 13

14 Tadawul Market Performance & Valuation Table Current () MTD YTD 52-Week Range Volume ( 000) Value (SAR 000) Beta Dividend Yield () PE EPS Free Float () Market Cap (SAR mn) / Revenue P/B P/CF ROA () ROE () AXA-Cooperative , N/A Gulf General , N/A N/A N/A Buruj ,361 90, N/A N/A N/A Al Alamiya ,141 46, N/A N/A N/A 4.9 N/A Solidarity ,283 50, N/A N/A ,224 N/A 2.6 N/A Wataniya ,131 97, N/A N/A N/A AMANA Insurance ,595 56, N/A N/A , N/A SARCO , , N/A Saudi Advanced , , N/A N/A Al Ahsa for Dev , , N/A N/A SISCO , , N/A N/A , Assir ,540 59, , Al Baha ,032 18, N/A N/A N/A Kingdom ,017 10, , BCI , MA ADEN , N/A N/A , Astra Indust , , N/A AlSorayai Group , N/A SHAKER , ,109 N/A N/A N/A Pharmaceutical , Glass , , FIPCO ,899 78, N/A Maadaniyah ,189 38, N/A N/A Saudi Chemical , , SPM , , N/A AlAbdullatif , , Saudi Export , N/A MMG , N/A N/A , SSP , , N/A ALKHODARI , , N/A Source: Tadawul Stock Exchange, Official Website 14

15 Tadawul Market Performance & Valuation Table Current () MTD YTD 52-Week Range Volume ( 000) Value (SAR 000) Beta Dividend Yield () PE EPS Free Float () Market Cap (SAR mn) / Revenue P/B P/CF ROA () ROE () Ceramic , , Gypsum , , Cables , , , Saudi Industrial ,215 22, N/A N/A Amiantit ,347 88, , Pipes ,854 61, N/A N/A , Zamil Industrial , , AL Babtain , , SVCP , N/A MESC ,665 44, N/A N/A Red Sea , , ASLAK , , Real Estate , , Taiba , , Makkah , Arriyadh Development ,519 33, , N/A Emaar E. C , , , N/A Jabal Omar ,569 31, N/A N/A , Dar Al Arkan ,097 75, , N/A KEC , , N/A N/A , Mubarrad , N/A N/A , Shipping ,252 27, SAPTCO , , Budget Saudi , Tihama , , SRMG , , SPPC , , Hotels , N/A Shams , N/A N/A N/A Source: Tadawul Stock Exchange, Official Website 15

16 Definition - Technical Indicators Candlestick Patterns, Doji DojiI is a form of candlestick pattern. It normally suggests major up and down movements. Trading above the Doji is positive for the market. Trading below the Doji value indicates bearish momentum. Hammer A small body (white or black) near the high with a long lower shadow with little or no upper shadow. This indicates a bullish pattern during a downtrend. Inverse-black-hammer: a bottom reversal signal with confirmation the next trading day. Moving Average, SMA (Simple Moving Average) Normally we use the 10, 20, 50 and 125 day SMA to identify the trend. A cross-over of the short-term moving average with the long-term moving average is positive for the market. The reverse is the case on the negative side. DEMA - Double-smoothed Exponential Moving Average We use the 10, 20 and 40 DEMA to identify a trend. A cross-over of the 10 and 20 DEMA gives a positive indication. A crossover of the 20 and 10 DEMA gives a negative indication. As long as a stock or index trades above the 40 DEMA, this gives a positive indication for the stock or index. Trading below the 40 DEMA may create downside for a short time. MACD - Moving Average Convergence and Divergence The MACD has its own line period and another signal line; the dotted line indicates the signal line. When the MACD crosses the signal line from below and trades above it, it gives a positive indication. The reverse is the situation for a bearish trend. RSI - Relative Strength Index When the RSI remains below 30, it indicates that a market or sttock is in oversold territory. When the RSI is above 70, it indicates that the market/stock is in an overbought level. ROC When the ROC is above zero it gives positive signals for an index or stock. When the price ROC is below zero, it gives a negative signal for the index or stock. Stochastic Oscillators When Stochastic Oscillators are below zero, the stock is in an oversold zone and some bounce back is expected. When Stochastic Oscillators are above zero, the stock is in an overbought zone and some correction is expected. Williams R When Williams R is above zero, the stock is in an overbought zone and some correction is expected. When Williams R is below zero, the stock is in an oversold zone and some bounce back is expected. CCI (Commodity Channel Index) While the CCI was originally designed for commodities, the indicator also works very well with stocks and mutual funds. There are two methods of interpreting the CCI: 1. Looking for divergences: A popular method of analyzing the CCI is to look for divergences in which the underlying security is making new highs while the CCI is failing to surpass its previous highs. This classic divergence is usually followed by a correction in the security's price. 2. As an overbought/oversold indicator The CCI usually oscillates between +/-100. Readings outside these ranges imply an overbought/oversold condition. Fibonacci Retracements Fibonacci Retracements are based on a trend line that we draw between a significant trough and peak. If the trend line is rising, the retracement lines will project downward; if the trend line is falling, the retracement lines will project upward. The number of Fibonacci Retracement levels appearing on the chart depends on the range of the y-axis. If we want to see all nine retracement levels, we may need to manually adjust the minimum and maximum values of the y-axis. Major Fibonacci Levels are 23.6, 38.2, 50, 61.8 and

17 Whipsaw A whipsaw is a situation in which a share price heads in one direction, but then is followed quickly by a movement in the opposite direction. The origin of the term is the push and pull action used by lumberjacks to cut wood with a type of saw of the same name. Gravestone Doji In a Japanese Candle Stick chart, this is a doji candle where prices rallied but came back and closed at the level they started; the open and close are equal. Inside Bar An inside bar is a bar, which is completely within the range of the preceding bar, i.e. it has a higher low and lower high than the bar immediately before it. An inside bar indicates a time of indecision or consolidation. On a smaller time frame, it will look like a triangle. Inside bars often occur at tops and bottoms, in continuation flags, and at key decision points like major support/resistance levels and consolidation breakouts. Big Bar A big bar is a bar, which is bigger than the preceding bar, i.e. it has a lower low and higher high than the bar immediately before it. Normally, after, forming a big bar, for a coming few sessions, the stock may move in the range of the high and low of the big bar. Breaking out or breaking down will give a fresh bullish or bearish pattern. Higher High This implies that today s intra-day high is higher than the intra-day high(s) of the previous session(s). Lower High This implies that today s intra-day high is lower than the intra-day high(s) of the previous session(s). Higher Low This implies that today s intra-day low is higher than the intra-day low(s) of the previous session(s). Lower Low This implies that today s intra-day low is lower than the intra-day low(s) of the previous session(s). Triangle This is a technical analysis pattern created by drawing trend lines along a price range that gets narrower over time because of lower tops and higher bottoms. Variations of a triangle include ascending and descending triangles. Technical analysts see a breakout of this triangular pattern as either bullish (on a breakout above the upper line) or bearish (on a breakout below the lower line). Standard Error Channel Parallel lines drawn higher and lower from the Linear Regression Trend-line form Standard Error Channels. The distance at which they are traced is a certain number of standard errors over or above the linear regression trend-line. The characteristic of the price fluctuations is its movement from one extreme to another and it depends on the traders' common opinion. s trend up in the optimistic market whether a pessimistic one causes prices reduction. The prices are drawn to a certain equilibrium point existing for each issue. The location of such point can be found out by using the Linear Regression analysis whether Standard Error Channel analysis presents the data about the cyclic direction of the prices as well as the forecasts for possible trend changes. Long Headed Doji Pattern This is a bullish signal, particularly when around price support levels. 17

18 Double Tops / Double Bottoms A double top is simply two peaks. After the second peak is formed a breakout through the base is a signal of a possible reversal of the trend in prices. In the case of a double bottom, two troughs form and an expectation follow for the possibility of a trend reversal if the market price rises through the base. Waiting for confirmation is important for trading double tops or double bottoms. Three White Soldiers Formation The Three White Soldiers formation indicates a bullish candlestick pattern that is used to predict the reversal of the current downtrend. This pattern consists of three consecutive long-bodied candlesticks that have closed higher than the previous day, with each session's open occurring within the body of the previous candle. Bullish Harami Cross Pattern This is a Doji contained within a large black body. This is a bottom reversal signal. 18

19 Contact Us Dr. Saleh Alsuhaibani Head of Research Tel : alsuhaibanis@alrajhi-capital.com Al Rajhi Capital Research Department P.O Box 5561 Riyadh Saudi Arabia Tel : Fax : research@alrajhi-capital.com Al Rajhi Capital is licensed by the Saudi Arabian Capital Market Authority, No /37. Disclaimer This research document has been prepared by Al Rajhi Capital ( 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. Al Rajhi Capital makes no representations or warranties (express or implied) regarding the data and information provided and Al Rajhi Capital does not represent that the information content of this document is complete, or free from any error, not misleading, or fit for any particular purpose. This research document provides general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment products related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial, legal or tax advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that the price or value of such securities and investments may rise or fall. Fluctuations in exchange rates could have adverse effects on the value of or price of, or income derived from, certain investments. Accordingly, investors may receive back less than originally invested. Al Rajhi Capital or its officers or one or more of its affiliates (including research analysts) may have a financial interest in securities of the issuer(s) or related investments, including long or short positions in securities, warrants, futures, options, derivatives, or other financial instruments. Al Rajhi Capital or its affiliates may from time to time perform investment banking or other services for, solicit investment banking or other business from, any company mentioned in this research document. Al Rajhi Capital, together with its affiliates and employees, shall not be liable for any direct, indirect or consequential loss or damages that may arise, directly or indirectly, from any use of the information contained in this research document. This research document and any recommendations contained are subject to change without prior notice. Al Rajhi Capital assumes no responsibility to update the information in this research document. Neither the whole nor any part of this research document may be altered, duplicated, transmitted or distributed in any form or by any means. This research document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or which would subject Al Rajhi Capital or any of its affiliates to any registration or licensing requirement within such jurisdiction. 19