Change. A:D Open High Low Close 7,000 6,500 6,000 5,500. 1,223, Qatar DSI 8,

Transcription

1 TASI Change No. of Volume Turnover A:D Open High Low Close Advance Decline Unchanged Points Percent Trades (mln) SAR (mln) Ratio 6,224 6,224 6,149 6, % 133, , :1 Commentary TASI closed yesterday at 6,155 down 69 points or 1.11% below the previous close of 6,224. The index traded in the range of 6,149 to 6,224. The best performing sector was Real Estate Development up 0.01%, while the worst performing was Buildig & Construction down 2%. Top gainer was Al Ahli Takaful with a 10.0% increase, and the top loser was Buruj Cooperative Insurance down 10.0%. The advance-decline ratio was 0.2:1. This was the third consecutive down day for TASI. Company Top Gainers Top Losers Close % Chg Company Close % Chg Al Ahli Takaful % Buruj % SABB Takaful % Tabuk Agriculture % Knowledge City % Anaam Holding % AXA-Cooperative % Saudi Fisheries % Almutakamela % FIPCO % 7,000 6,500 6,000 5,500 5,000 1 Yr Performance N D J F M A M J J A S O N y Dail Most Active Distribution by Mkt Cap Company Turnover (SAR mln) SAR (mln) SABIC < Buruj Al Ahli Takaful ,000-1, SABB Takaful ,000-10, ALLIANZ SF > 10, Regional and Global Markets % Change Sectoral Performance Market Index Level 6-mth YTD 1-yr Mkt Cap Weight % Change Bahrain BASI 1, Sector (SAR bln) (%) WTD 3-mth YTD 1-yr Kuwait KSI 5, TASI 1,223, Qatar DSI 8, Banking & Financial Services 304, Oman MSM30 5, Petrochemical Industries 462, Dubai DFM 1, Cement 52, Abu Dhabi ADXI 2, Retail 19, USA DJI 11, Energy & Utilities 56, USA NASDAQ 2, Agriculture & Food Industries 46, USA S&P 500 1, Telecoms & Info Tech 111, Japan NIKKEI 225 8, Insurance 26, UK FTSE 5, Multi-investment 31, Industrial Investment 41, Economic Calendar Key Rates Building & Construction 20, Date Event 3M SAIBOR 0.71% Real Estate Development 38, Nov US Total Vehicle Sales USD 3M LIBOR 0.43% Transport 5, Nov US Unemployment Rate US T-bill 1-yr 0.10% Media & Publishing 3, Nov US Consumer Credit US T-bill 10-yr 2.04% Hotel & Tourism 2, Nov US Trade Balance US T-bill 30-yr 3.05% Saudi Economic Indicators Commodities (USD) FOREX (USD) KSA Oil Production (000s) Money Supply (SAR bln) Price YTD Currency Rate YTD Month bbl / day Month M1 M2 M3 WTI Oil (bbl / day) % GBP-USD % Jun-11 9,813 Jul ,014 1,170 Brent Crude % EUR-USD % Jul-11 9,606 Aug ,018 1,175 Natural Gas (mbtu) % USD-JPY % Aug-11 9,756 Sep ,015 1,176 Gold (oz) 1, % USD-CHF % Silver (oz) % USD-CAD Saudi Annual Inflation SAMA's Foreign Assets (SAR bln) Copper (lb) % USD-AUD Month Rate Month Value Jul % Jul-11 1,897 Aug % Aug-11 1,899 Sep % Sep-11 1, % -1.2% Riyad Capital is licensed by the Saudi Arabia Capital Markets Authority (No ) Notes: 1. Trading days for the Saudi market are Saturday to Wednesday. Closing prices are as of November Trading days for the GCC markets are Sunday to Thursday. Closing prices are as of November Global markets closing prices are as of November Commodities prices, forex rates and key rates are as of November , 9 am. 5. Sources: Reuters, Bloomberg, Tadawul, SAMA, JODI, CDSI, Zawya, Mubasher, Argaam.

2 Major Changes in Ownership Company Name Arabian Cement Company Al Hassan Ghazi Ibrahim Shaker Shareholder Name % Ownership Comments National Commercial Bank (NCB) 7.7% Down from 7.9% Alhassan Ghazi Ibrahim Shaker 12.5% Down from12.6% Saudi Corporate and Economic News Saudi Industrial Investment Group (SIIG) announced that production has resumed at the plant, after a one month scheduled maintenance shutdown on some of its production units at the Jubail site. Alsorayai Trading and Industrial Group announced that it has been granted a loan worth SAR 16.6 million from Saudi Industrial Development Fund (SIDF(. The Group plans to utilize the loan towards development and expansion of Alsorayai Carpet Factory. The project is included in the fourth phase of the Industrial City in Jeddah. The tenure of the loans will be six years and will be repaid in half-yearly installments starting H until H, the loans have been granted on the basis of guarantee of assets of the two expansion projects. Abdullah A. M. Al-Khodari Sons Company announced that it has been awarded a three-year, SAR 70 million contract from the Ministry of Municipal and Rural Affairs (Jazan Municipality) to clean the cities and villages of Jazan. A further announcement will be made upon contract signing including the expected start of the financial impact. SABIC has set up a new venture capital arm to invest in innovative technology and companies. SABIC Ventures will be based in the Netherlands and funded through an innovation fund managed by the company. International Corporate and Economic News Air Arabia reported 3Q2011 net profit of AED 99 million (-27% Y/Y) as high fuel costs hit earnings. Zain of Kuwait reported 3Q2011 net profit of KWD 70 million (-13% Y/Y), attributing the decline to FX losses. Investors shed riskier assets after Greece s sudden announcement to hold a referendum on the debt deal reached last week. Sources: Reuters, Bloomberg, Tadawul, Zawya, Argaam.

3 Close Price Issued Market Market Sector Company (SAR) Shares (mln) Cap (mln) Weight Weight (SAR) BVPS P / E P / B Riyad Bank ,500 35, % 11.7% x 1.2x Bank Al-Jazira , % 1.6% x 1.1x Saudi Investment Bank , % 2.9% x Saudi Hollandi Bank , % 3.0% x Banque Saudi Fransi , % 9.6% x SABB , % 9.7% x 1.8x Arab National Bank , % 7.6% x 1.4x SAMBA , % 13.9% EPS Trailing 10.0x Al-Rajhi Bank , , % 33.6% x 3.3x Bank Al-Bilad , % 1.8% x Alinma Bank ,500 13, % 4.6% x 0.9x Banks & Financial Services 304, % 100.0% 1 CHEMANOL , % 0.3% x Petrochem , % 2.2% x 2.2x SABIC , , % 61.4% x 2.1x SAFCO , % 10.0% x Industrialization , % 4.7% x Alujain , % 0.3% x 2.1x Nama Chemicals , % 0.3% M SIIG , % 1.9% x Sahara Petrochemical , % 1.2% x YANSAB , % 5.4% x 2.5x Sipchem , % 1.6% Advanced , % 0.8% x Saudi Kayan ,500 26, % 5.7% M Petro Rabigh , % 4.2% x 2.4x Petrochemical Industries Yamamah Cement Saudi Cement Qassim Cement Southern Cement Yanbu Cement Eastern Cement Tabuk Cement Jouf Cement Cement Abdullah Al-Othaim Market Mouwasat SASCO Thim'ar Fitaihi Group Jarir Al-Drees 462, % 100.0% 0% HCC , % 2.4% Arab Cement , % 6.6% Al-Hokair Al-Khaleej Training Retail Gas & Industrialization Saudi Electric Energy & Utilities 2.1x 10.5x 22x 2.2x M 2.6x x , % 15.3% x 2.6x , % 18.3% x 3.1x , % 11.5% x , % 19.7% x 4.3x , % 11.5% x 2.3x , % 7.6% x , % 3.7% x 1.8x , % 3.4% , % 100.0% , % 10.8% x 4.3x , % 10.1% x 3.1x 21.2x 1.4x 12.3x 2.5x % 3.3% x 1.2x % 1.0% M 7.5x % 3.1% x 0.9x , % 40.7% x 8.7x , % 5.4% x , % 21.4% x % 4.2% x 2.8x 19, % 100.0% 14.1x 3.7x , % 2.4% x ,167 55, % 97.6% x 1.1x 56, % 100.0% 22.3x 1.1x 2.6x

4 Close Price Issued Market Market Sector EPS Trailing Company (SAR) Shares (mln) Cap (mln) Weight Weight (SAR) BVPS P / E P / B SAVOLA Group , % 27.6% x 1.8x Food Products % 1.0% x SADAFCO , % 3.0% x Al-Marai , % 44.8% x 3.2x Anaam Holding % 1.2% x 4.4x Halwani Bros % 2.1% x 1.9x Herfy Foods , % 4.9% x 5.7x NADEC , % 3.4% x Qassim Agriculture % 1.1% M 1.4x Tabuk Agriculture % 1.2% x Saudi Fisheries , % 3.7% M 19.6x Sharqiya Dev Co % 1.0% M 5.8x Jouff Agriculture % 1.6% x Bishah Agriculture % 0.0% x 0.0x Jazan Development , % 2.7% M 2.3x Agriculture & Food Industries 46, % 100.0% 16.5x 2.5x STC ,000 66, % 59.1% x 1.4x Etihad Etisalat , % 32.1% x 2.1x ZAIN KSA ,400 7, % 7.0% M Atheeb Telecom % 0.0% x 0.0x Saudi Integrated Telecom Co , % 1.1% x Telecoms & Info Tech 111, % 100.0% 8.1x Tawuniya , % 13.9% Malath Insurance % 1.9% x MEDGULF , % 7.5% x 1.9x ALLIANZ Saudi Fransi % 2.3% M 3.8x SALAMA % 1.4% x 4.4x Walaa Insurance % 1.4% M 2.7x Arabian Shield % 1.7% x SABB Takaful , % 4.4% x SANAD % 1.6% M 4.1x SAICO % 1.4% M 6.3x Saudi Indian % 0% 1.4% M x Gulf Union % 1.6% M 2.3x Al-Ahli Takaful , % 7.0% M 30.1x Al-Ahlia Insurance % 1.3% M 10.5x ACIG % 1.4% M 11.8x AICC % 1.6% x 2.6x Trade Union % 2.1% Sagr Insurance % 1.8% x 1.9x U C A % 2.1% x 1.9x Saudi Re % 3.5% M Bupa Arabia % 3.1% x Weqaya Takaful % 2.7% M 5.5x Al Rajhi Takaful , % 3.9% M 9.9x ACE % 1.7% M 5.4x AXA-Cooperative % 2.7% x 4.0x Gulf General % 2.7% M 5.2x Buruj , % 8.3% M 25.1x Al Alamiya % 2.8% M 4.4x Solidarity , % 5.1% M 2.8x Wataniya % 2.6% x 8.5x AMANA Insurance % 3.3% M 3.5x Insurance 26, % 100.0% 16.1x 3.0x

5 Close Price Issued Market Market Sector EPS Trailing Company (SAR) Shares (mln) Cap (mln) Weight Weight (SAR) BVPS P / E P / B SARCO % 2.4% x 2.1x Saudi Advanced % 1.9% x Al-Ahsa for Dev % 1.6% x SISCO % 2.7% x 1.1x Assir , % 5.5% x 0.8x Al-Baha % 0.8% M 2.8x Kingdom ,706 26, % 85.2% x 1.1x Multi-Investment 31, % 100.0% 36.0x 1.1x BCI % 1.6% x MA ADEN , % 59.0% x Astra Indust , % 5.9% x 1.4x AlSorayai Group % 1.6% x SHAKER , % 5.3% x 3.2x Pharmaceutical , % 7.1% x 0.9x Glass % 2.4% x FIPCO % 1.0% x 2.7x Maadaniyah % 2.2% x 2.5x Saudi Chemical ,428 02% 0.2% 59% 5.9% x 17 Saudi Paper Manufacturing , % 2.6% x Al-Abdullatif , % 4.7% x Saudi Export % 0.8% x 2.8x Industrial Investment 41, % 100.0% 27.3x United Wire Factories Company , % 5.6% x 2.9x Mohammad Al-Mojil Group , % 11.7% M Saudi Steel Pipe , % 6.2% x Abdullah Al-Khodari Sons Co , % 10.9% x Ceramic , % 16.6% 6% x 31x 3.1x Gypsum % 4.1% x Cables % 4.3% x 0.9x Saudi Industrial % 2.6% x Amiantit , % 8.2% Pipes % 4.1% M 1.1x Zamil Industrial , % 7.6% x 1.2x AL-Babtain % 4.5% x Saudi Vitrified Clay Pipes % 4.5% x MESC % 2.9% M 1.8x Red Sea , % 6.1% x Building & Construction 20, % 100.0% 13.4x Real Estate , % 7.2% x 0.9x Taiba , % 7.1% x 0.9x Makkah , % 13.9% x Arriyadh Development , % 4.2% x 1.1x Emaar E.C , % 13.9% M Jabal Omar , % 28.4% M 1.2x Dar Al Arkan ,080 6, % 17.5% x 0.4x Knowledge Economic City , % 7.8% M 0.9x Real Estate Development Shipping ,161 3, % 0.3% 100.0% 60.7% x 15.3x 0.8x SAPTCO % 16.0% x Mubarrad % 7.9% M 3.1x Budget Saudi % 15.4% x 1.8x Transport 5, % 100.0% 13.8x 0.8x Tihama , % 32.3% x 4.5x SRMG , % 42.9% x 1.1x Saudi Printing & Packaging % 24.8% x Media and Publishing 3, % 100.0% 23.1x 1.4x Hotels , % 88.5% x 1.2x Shams % 11.5% x 3.6x Hotel & Tourism 2, % 100.0% 15.3x Market 1,223, x M= Minus

6 Riyad Capital Coverage Universe TASI Current RC Target RC Upside to Company Symbol Price Price Recommendation Target Price Banque Saudi Fransi Strong Buy 40.4% SABB Hold 18.3% Arab National Bank Hold 14.4% SAMBA Hold 10.2% Al-Rajhi Bank Buy 12.8% SABIC Buy 28.8% Almarai Hold 6.9% Jarir Marketing Company Under Review Under Review N/A Dar Al-Arkan Not Rated N/A STC Buy 57.6% Etihad Etisalat (Mobily) Buy 21.0% Zain KSA Under Review Under Review N/A Note: Prices in SAR ap y Market Reca

7 Disclaimer This document and its contents are prepared for information purposes only and do not constitute an offer or the solicitation of an offer, to buy or sell a security or enter into any other agreement in any jurisdiction where such an offer or solicitation would be illegal. Technical analysis centers on studying charts of a stock s price movement and trading volume, as opposed to focusing on a company s actual historical or potential future operating or financial results and as such may not correlate with reports based on a company s fundamentals. We make no representations about the accuracy of technical analysis or its validity as a technique. Past performance is not a guide to future performance. The information and any views expressed are given as at the date of writing and are subject to change. While the information has been obtained from sources believed to be reliable we do not represent that it is accurate or complete and it should not be relied upon as such. Riyad Capital, its affiliates and subsidiaries can accept no liability for any direct or consequential loss arising from use of its documents or their contents. At any time, Riyad Capital or its employees may have a position, subject to change in any securities or instruments referred to, or provide services to the issuer of those securities or instruments. Riyad Capital is licensed by the Saudi Arabia Capital Markets Authority (No )