Saudi Stock Market. Weekly Update TRADING STATISTICS TASI CLOSE & MARKET TURNOVER. Week Ending Dec 17, 2015

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1 Saudi Stock Market Weekly Update Week Ending Dec 17, 215 While in the short run you want to finance this shock by spending more, over time you have to cut government spending, you have to cut government employment, cut subsidies and transfers to the private sector, otherwise you ll have unsustainable public debt over time. - Mr. Nouriel Roubini, Chairman, Roubini Global Economics TASI ascends 1.4% to 7,46 points Tadawul All Share Index (TASI) rebounded during this week and ascended 1.4% to close above 7, points at 7,46 points. The index lost almost 4% during the first two days and then bounced back during the later part of the week. Saudi Arabian Central Bank raised its benchmark reverse repurchase rate by 25bps to 5bps during the week following the US Federal Reserve s decision. Regionally, other Central Banks also announced increase in benchmark interest rates to maintain currency competitiveness. Equity indices witnessed mixed trend with Dubai (+4.4%) and Abu Dhabi (+1.5%) reporting gains. TASI CLOSE & MARKET TURNOVER US ends zero rate policy Globally, the much expected US interest rate hike was announced with the Federal Reserve increasing its benchmark interest rate range by a quarter of a percentage point from % to.25% to between.25% and.5%. "The process (interest rate hike) is likely to proceed gradually." said the Fed Chairman indicating that it is the beginning of tightening cycle. The rate increase, after nearly a decade, did not arrest the oil price fall and Brent closed around USD 37 per barrel. Market participants expect further pressure as voluntary output cuts looks a remote possibility at this stage. TRADING STATISTICS 9, 8, 7, 6, 5, 4, 3, 2, 1, 6,686 6,765 6,772 6,867 7,46 5,342 5,472 5,68 5,895 7, Dec Dec Dec Dec Dec-15 Total Turnover (SAR Mn) TASI Close (RHS) 7,1 7, 6,9 6,8 6,7 6,6 6, Gainers Losers No change Total No. of Companies Saudi market breadth was negative with 55 gainers as against 11 losing stocks

2 SSE Nikkei DAX MSCI EM FTSE 1 DJIA S&P 5 MSCI World Dubai Abu Dhabi Saudi Qatar Kuwait Bahrain Oman GLOBAL INDICES WEEKLY RETURNS 3.6%, 3,58 4.4%, 3,73 1.6%, 19, %, 1, %, %, 4, %, 7,46.2%, 6,13 -.4%, 17, %, 2,42 -.5%, 1,655-1%, 9, %, 5, %, 1, %, 5,359 Note: Weekly returns are calculated considering Friday to Thursday week. Numbers indicate weekly returns and index closing values. SAUDI SECTOR INDICES 1 out of the 15 sector indices closed the week in Red Amongst the sector Indices, the increase was witnessed only in 5 sector. Media and Publishing (+21.8%) was the top gaining index. Media has surged 57.2% YTD. Index heavyweight Banks (+5.2%) stood second. Retail lost 2.7% during the week and became the top losing index. This was followed by Building & Construction (-2.2%). Banks were the top traded sector during the week by contributing 29.8% to the total volume and 25.7% to the total value. Petrochemicals constituted 9.% of the volume and 15.1% of the total value. Index Open Close WTD YTD Total Volume (Mn) Total Turnover (SAR Mn) No. of Trades TASI 6,949 7,46 1.4% -15.5% 1,491 29,54 587,288 Banks & Financial Services 14,855 15, % -14.7% 444 7,59 73,489 Petrochemical Industries 4,843 4, % -17.6% 135 4,469 48,439 Cement 4,789 4,88.4% -29.8% ,456 Retail 12,443 12,12-2.7% -22.% ,381 Energy & Utilities 5,458 5, % -4.% ,332 Agriculture & Food Industries 9,184 9,15 -.9% -22.% 44 1,242 35,615 Telecom & IT 1,644 1, % -16.5% ,16 Insurance 1,179 1, % -8.% 123 2,67 14,914 Multi-Investment 3,384 3, % -9.1% ,48 Industrial Investment 6,731 6, % -.1% 68 1,823 48,933 Building & Construction 2,344 2, % -3.6% ,735 Real Estate Development 5,739 5,798 1.% -2.% 397 4,277 83,312 Transport 7,883 8, % 12.4% 38 1,629 29,278 Media and Publishing 2,841 3, % 57.2% 63 2,15 53,16 Hotel & Tourism 16,44 16,236-1.% -17.9% ,82

3 THIS WEEK S WINNERS & LOSERS Top Gainer Saudi Research and Marketing Group (+34.7%) Saudi Research and Marketing Group (SRMG) topped the gainers table for yet another week by increasing 34.7% to close at SAR 6.1. SRMG has more than tripled during the calendar year. This was followed by Saudi Printing and Packaging Company (+22.6%) and Emaar The Economic City (+15.%). The losing stocks was led by Arabian Shield Cooperative Insurance Co. which shed 1.3%. This was followed by Rabigh Refining and Petrochemical Co. (-8.6%) and Basic Chemical Industries Co. (-8.%). Top Loser Arabian Shield Cooperative Insurance Co. (-1.3%) SABIC, the gulf s largest company gained.97% for the week and clocked a turnover of SAR 3.22bn. SABIC has gained 5.75% YTD to close at SAR TOP GAINERS TOP LOSERS Company Close WTD YTD Value Traded (SAR Mn) Company Close WTD YTD Value Traded (SAR Mn) SRMG % 261.6% 616 SPPC % 49.5% 1,255 Emaar EC % 11.4% 1,564 SPM % -12.1% 515 Al Rajhi % 4.1% 1,166 Arabian Shield % -23.9% 45 Petro Rabigh % -3.9% 256 BCI % -31.8% 28 Takween % -17.9% 37 MEPCO % -2.3% 164 THE LIQUIDITY PLAY (VOLUME VALUE TREND) Market activity increased during the week with 1,491mn shares (1,21mn and 1,312mn shares in the preceding two weeks) being traded. The turnover expanded to SAR 29.5bn vis-a-vis SAR 26.6bn and SAR 28.1bn in the preceding two weeks. TASI WEEKLY TURNOVER TREND (SAR MN) TASI WEEKLY VOLUME TREND (MN) 9, 8, 7, 6, 5, 4, 3, 2, 1, /Dec 16/Dec 15/Dec 14/Dec 13/Dec 1/Dec 9/Dec 8/Dec 7/Dec 6/Dec 3/Dec 2/Dec 1/Dec 3/Nov 29/Nov 26/Nov 25/Nov 24/Nov 23/Nov 22/Nov 17/Dec 16/Dec 15/Dec 14/Dec 13/Dec 1/Dec 9/Dec 8/Dec 7/Dec 6/Dec 3/Dec 2/Dec 1/Dec 3/Nov 29/Nov 26/Nov 25/Nov 24/Nov 23/Nov 22/Nov Week Week 1 Week 2 Week 3 Week Week 1 Week 2 Week 3

4 SAUDI ARABIA CORPORATE & ECONOMIC NEWS Saudi Arabian government has reportedly contacted local banks to sell them local currency bonds worth SAR 2bn. The annual cost of living in Saudi Arabia increased by 2.3% in November 215. Saudi Telecom Company has received approval from Kuwait's Capital Markets Authority to acquire all the shares of its Kuwaiti affiliate Viva. STC will offer USD 3.3 per share, a discount of 9% from the last closing price to buy out other shareholders in its Kuwaiti affiliate. Saudi Aramco is seeking a USD 4.7bn loan from banks to refinance cash used to build a joint venture with China s Sinopec in Yanbu. Abdullah Al Othaim Markets Co. has approved plans of geographical expansion through opening of new stores in Egypt at a total value of SAR 144mn over the next three years. Saudi Arabia's electronic trade reached nearly USD 2.7 billion during 215, according to head of Makkah Chamber of Commerce and Industry Almarai is reportedly interested in buying a majority stake in UAE s National Food Products Company. Saudi Arabia has issued a directive to invest SAR 3bn in Egypt and supply it with oil as needed over the next five years. Al-Jubail Petrochemical Company will commence partial operations at its elastomers facility. The full operations are expected to start during the second quarter of 216. The value of real estate transactions in Saudi Arabia dropped 41% year-on-year to SAR 24.1bn in the 3-day period ending Dec. 12. Saudi American Glass, a subsidiary of Dubai Investments, has completed projects valued over SAR 3mn across KSA. Abraaj has reportedly emerged as the frontrunner to buy a majority stake in Al Raya for Foodstuff Co, Saudi Arabia Pharmaline Saudi Arabia and King Abdullah Economic City have signed a land lease agreement, which will allow the pharmaceutical company to build its first plant in the Kingdom in 216 Riyadh and Dammam will soon be connected by a high-speed electric train that will run at a speed of up to 3 km/h compared to the current 14km/h. Rabigh Electricity Company, partly owned by Saudi Electricity Co., is in talks with banks to raise a loan worth USD 2bn. Separately, SEC has signed murabaha credit facility for SAR 2.5bn. Saudi Arabia s labor ministry issued 1.64 million visas to private sector firms last year, marking a 61% year-on-year increase.

5 OTHER GULF NEWS GLOBAL ECONOMIC NEWS A joint venture between Canadian pension fund and Annual Industrial production in the Eurozone rose by the Abu Dhabi Investment Authority has acquired a 1.9% in November, data from Eurostat showed. portfolio of U.S. industrial properties from Exeter Property Group for USD 3.15bn. Bank of Japan has announced supplementary measures for its quantitative easing program, The UAE central bank decided to raise the interest committing to increasing its exposure to longer-term rate on its certificates of deposits by 25bps. government bonds and domestic stock funds. DP World will make investments worth USD 1.9bn in China. The UAE and China launched a USD 1bn UAE-China joint strategic investment fund. Oman's annual consumer price index declined.55% in November, data released by the National Centre for Statistics and Information showe d. Qatar government will finance the budgeted deficit of QAR 46.5bn in 216 by issuing debt in the local and international markets, the Finance Minister said. Sumitomo Mitsui Finance & Leasing Co. agreed to buy General Electric Co. s Japanese leasing business for about USD 4.8bn. Zurich Insurance Group AG will buy Wells Fargo & Company's crop insurance business for USD 1.5bn. Philippines central bank left the rate it pays lenders for overnight deposits at 4% while boosting inflation forecasts for the next two years. China Southern Airlines Co., has ordered 11 planes valued at about USD 1bn in list prices from Boeing. Doha Insurance Company will sell a land plot in Shell BG expects to cut around 2,8 jobs after Marina area for QAR 145.3mn. Shell has conducted a comprehensive review of Kuwait Company for Process Plant Construction and the joint operations in the UK. Contracting has received tender worth KWD AstraZeneca Plc agreed to buy a 55% stake in Acerta 97.96mn. Pharma BV for USD 4bn to gain a potential block- Standard and Poor s has kept a Negative outlook on buster medicine for blood cancer. Bahrain due to uncertainties in the kingdom s fiscal GlaxoSmithKline Plc has acquired HIV drugs of Bristol forecast. It affirmed its BBB-/A-3 ratings on long- -Myers Squibb for USD 1.5bn. and short-term foreign and local currency. Bahrain's central bank raised the interest rate on its overnight deposit facility from.25% to.5%. It has kept its repo and lending rates at 2.25%.

6 C H A R T S O F T H E W E E K PRICE OF VARIOUS GRADES OF CRUDE OIL Source: Bloomberg SAUDI ARABIA CREDIT DEFAULT SWAPS Source: BofA Merill Lynch, Bloomberg

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