Saudi Stock Market. Weekly Update TRADING STATISTICS TASI CLOSE & MARKET TURNOVER

Transcription

1 Saudi Stock Market Weekly Update The program s initiatives seek to create (more than 450,000) jobs in the nongovernment sector by the year 2020, thus contributing to the Vision s goal of providing opportunities for all. Week Ending June 09, Saudi Arabia s National Transformation Plan Document Saudi Arabia Releases National Transformation Plan TASI increases 1.8% Tadawul All Share Index (TASI) registered a gain of 1.8% during the week and curtailed its year-to-date loss to 4.4%. The index closed at 6,607 points with increased volumes. During the week, Saudi Arabia unveiled the much awaited National Transformation Plan, which will serves as a cornerstone for achieving Vision 2030 and preparing for post-oil era. The 112 page document details specific initiatives and targets to be achieved by each of the ministries. Notable targets include cutting public sector wages as a proportion of budget to 40% by 2020 from the current 45% and increasing non-oil exports from SAR 185bn to SAR 330bn by ,605 5,000 6,533 4,000 3,000 6,607 6, , ,550 6,477 6,450 2,000 6,400 1,000 2, Losers No change Total No. of Companies ,500 6,413 4,045 Meanwhile, globally, the World Bank, reduced its global GDP growth forecast for yet another time. World Bank now expects global growth to be at 2.4% for 2016, as against the 2.9% projected in January. Growth predictions were revised lower for 2017 and 2018 as well. According to World Bank: The move is due to sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade, and diminishing capital flows. TRADING STATISTICS TASI CLOSE & MARKET TURNOVER 6,000 Overall, the plan was well laid-out and achieving the targets would go a long way in diversifying the country away from hydrocarbon and realizing broader economic development. 3,951 5,658 5, , Gainers 6, Jun Jun Jun Jun Jun-16 Total Turnover TASI Close (RHS) Saudi market breadth was positive with 137 gainers as against 29 losing stocks

2 MSCI EM MSCI World DJIA FTSE 100 Nikkei S&P 500 SSE DAX Dubai Qatar Abu Dhabi Saudi Oman Kuwait Bahrain GLOBAL INDICES WEEKLY RETURNS 3.4%, %, 1, %, 17, %, 6, %, 16, %, 2, %, 2, %, 10, %, 3, %, 9,837 3%, 4, %, 6, %, 5, %, 5, %, 1,120 Note: Weekly returns are calculated considering Friday to Thursday week. Numbers indicate weekly returns and index closing values. SAUDI SECTOR INDICES 14 out of 15 indices closed the week in Green Amongst sectors, 14 out of the 15 indices closed the week on the positive side. Real Estate Development increased 6.4% and was the highest gaining index. Energy & Utilities (+4.5%) and Retail (+3.1%) followed. Industrial Investment slipped 1.0% and was the only losing index. Banks and Petrochemicals gained 0.8% and 1.4% respectively. Petrochemicals constituted 23.4% of the total traded value and 15.3% of the total volume to become the top trading sector. This was followed by Banks which contributed 21.7% to the value and 23.7% to the total volume. Index Open Close WTD YTD Total Volume Total Turnover No. of Trades TASI 6,489 6, % -4.4% 1,375 21, ,438 Banks & Financial Services 14,424 14, % -6.7% 326 4,723 44,234 Petrochemical Industries 4,455 4, % 5.6% 210 5,086 56,001 Cement 4,302 4, % -3.2% ,655 Retail 10,285 10, % -15.5% 28 1,009 30,160 Energy & Utilities 5,944 6, % 8.5% ,394 Agriculture & Food Industries 7,745 7, % -14.2% ,493 Telecom & IT 1,508 1, % -6.1% ,719 Insurance 1,250 1, % 3.4% 153 2,349 90,380 Multi-Investment 2,684 2, % -18.6% ,366 Industrial Investment 6,652 6, % 2.5% 39 1,000 30,412 Building & Construction 2,002 2, % -10.7% ,728 Real Estate Development 5,843 6, % 4.3% 355 3,010 57,146 Transport 7,071 7, % -7.0% ,136 Media and Publishing 2,820 2, % -18.5% ,170 Hotel & Tourism 9,923 10, % -39.8% ,444

3 THIS WEEK S WINNERS & LOSERS Top Gainer Dar Alarkan Real Estate Development Co. (+20.8%) Dar Alarkan Real Estate Development registered the largest gain, this week, by increasing 20.8% to close at SAR This was followed by Saudi Public Transport Co. (+14.3%) and Emaar The Economic City (+10.3%). Dar Alarkan announced that the company is in talks with the government to provide housing units under the economic reform plan. On the other side, Amana Cooperative Insurance Co. shed 6.7% and led the losers table. Top Loser Amana Cooperative Insurance Co. (-6.7%) SABIC, the gulf s largest company, was flat during the week and clocked a turnover of SAR 3.5bn. SABIC has gained 7.9% during the year and closed at SAR TOP GAINERS TOP LOSERS Company Close WTD YTD Value Traded Company Close WTD YTD Value Traded Dar Al Arkan % -2.7% 23,567 SAPTCO % -17.7% 6,603 Emaar EC % 15.6% 11,456 ASLAK % 11.0% 1,739 Solidarity % 35.0% 4,472 Amana Insurance % 25.3% 6,273 AICC % 31.6% 4,250 Al-Ahlia % 11.4% 4,364 ALYAMAMAH % 4.6% 13,624 MAADEN % 17.2% 5,199 TOP 10 MARKET CAPITALIZATION COMPANIES Company Name Market Cap Last Price (SAR) WTD Change YTD Change LTM Net Income P/E Ratio P/BV Ratio Saudi Basic Industries Corp. 247, % 7.9% 18, Saudi Telecom Co. 125, % -8.1% 9, Al Rajhi Bank 95, % 12.4% 7, National Commercial Bank 82, % -19.7% 9, Saudi Electricity Company 72, % 11.3% 2, Jabal Omar Development Co. 57, % 11.3% -220 NA 6.2 Saudi Arabian Mining Co. 45, % 17.2% Almarai Co. 44, % -4.8% 1, Samba Financial Group 43, % -7.2% 5, Kingdom Holding Co. 42, % -27.7% TASI 1,519,963 6, % -4.4% 99,

4 SAUDI ARABIA CORPORATE & ECONOMIC NEWS Capital Market Authority (CMA) will give listed firms more time to disclose their financial results starting January 1, 2017 as they are adapting to international accounting standards. Companies will have up to one month to announce their interim results, compared to the current deadline of two weeks. Annual results should be released within three months, instead of the previous 40-day deadline. Saudi Arabia s budget deficit is expected to shrink to 14% of GDP this year, compared to 16% in 2015, the IMF said. Saudi Arabia is set to offer local and foreign property developers partnership deals as part of its plans to build 1.5 million homes over the next seven or eight years, the Kingdom s housing minister said. Saudi Arabia is reportedly considering a sukuk issue for its Real Estate Development Fund (REDF), by the end of Saudi Arabia s CMA approved the final draft of the amended Investment Funds Regulations after the draft was published on its website for 60 days for public consultation. Almarai s board of directors approved a new version of the company s five-year business plan, which will cover the period from 2017 to 2021, targeting capital investments of SAR 14.5bn. Saudi Arabia s General Authority of Civil Aviation is reportedly preparing to award airline operator certificates to privately-owned airlines before the end of June or in early July. Rabigh Refining and Petrochemical Company (Petro Rabigh) has awarded SAIPEM a SAR 782mn contract to construct facilities at its Rabigh 2 project. Jabal Omar Development Co. has awarded Ruwad Civil Construction Co. a SAR 492mn contract to furnish six hotels in Jabal Omar s complex in Makkah. Methanol Chemical Company s (Chemanol) general assembly approved to withhold the payment of cash dividend for FY-2015 to support the company s financial position and strategic plans. Mobile Telecommunication Co. Saudi Arabia (Zain Saudi) signed a long-term, commercial loan facility agreement for SAR 2.25bn. The loan was provided by a consortium of banks. Work on the Riyadh Metro project is 36% complete and the project will be finished on time, Riyadh governor said.

5 OTHER GULF NEWS GLOBAL ECONOMIC NEWS Abu Dhabi Marine Operating Company has reportedly cancelled a USD 500mn project at the offshore Umm Shaif field. Japan's economy expanded an annual rate of 1.9% rate in the first quarter of 2016, revised from a preliminary figure of 1.7%. Abu Dhabi Financial Group will buy Dubai Banking Toyota Finance Corp. issued JPY 20bn of bonds at a Group s 48.3% stake in Shuaa Capital. yield of 0.001%, the lowest coupon ever by a Japa- IBM said it signed a USD 300mn, ten-year technology nese company that isn t backed by the government. services agreement with Dubai's Emirates Airline. Verizon Communications plans to submit a second- India s Larsen & Toubro Ltd has secured a contract to build a USD 135mn stadium for Qatar's 2022 World round bid of around USD 3bn for Yahoo Inc's core internet business. Cup. US fashion brand Ralph Lauren will cut 1,000 jobs, or Oman Oil Refineries and Petroleum Industries Co. is investing USD 320mn for building a 290 KM pipeline 8% of its workforce, and also close more than 50 stores as part of a cost-cutting drive. between Muscat and Sohar for transporting refined South Korea's central bank cut its seven-day repur- products. chase rate by 25 basis points to 1.25%, a new record Abraaj Group announced the acquisition of a minori- low. ty stake in Turkish bank Fibabanka, through one of Vodafone's New Zealand unit is merging with the its funds. country's biggest pay television provider Sky Net- Dubai Electricity and Water Authority has signed an work in a USD 2.4bn deal. agreement for a project that aims to produce 2,400 Chinese group Nanshan has bought a 20% stake in MW of electricity using clean coal. Virgin Australia from Air New Zealand.

6 C H A R T S O F T H E W E E K TOP 10 U.S. COMPANIES BY AMOUNT OF CASH HELD (USD BN, 2015) Source: Moody s Investor Service, Statista AVERAGE YIELDS FOR INVESTMENT GRADE DEBT Source: Bank of America Merrill Lynch, Bloomberg

7 Treeline Business Solutions is a boutique provider of business process outsourcing services based in Chennai, India, with Sales offices in the GCC and serving diverse range of clients around the world. Over a period of time, Treeline has successfully built in-house expertise and professional capability to handle business needs of various clients in the following functional areas: Transaction Processing & Oversight Consulting & Advisory IT Support Family office & Wealth Management Fund Administration Recruitment Our Family Office and Wealth Management Support Services focus on the following areas: Financial Modelling and Business Research Support Family Office Set-up and Governance Investment Back Office Private Equity Fund Administration Portfolio Performance Valuation, Benchmarking & Reporting Treeline has clients across the world and serves many industries & sectors including banks, investment companies and family offices. Our clients value our commitment to producing high-quality work with quick turnaround. Treeline follows and adheres to best practices in maintaining sanctity of transactional information or privileged inputs, received in due course of project execution. IT enables strict access controls coupled with employer employee confidentiality agreements puts in place the basics of data confidentiality and ensures no breach of set norms through strict compliance measures. We are recognized for our practical approach rolling up our sleeves to make change happen. Our sole focus is on doing what is right for our clients. Treeline has launched the beta version of Cedar Saudi Capital Market Analytics platform. For more details on Cedar, download the product presentation by visiting and for getting the trial access kindly visit the webpage Delivery Center First Floor, Cavinville, 12 Cenotaph Road, Teynampet, Chennai , India / Contact Us Tirtha Brata Panda tirtha@treeline.co Mobile: J Madhu Soothanan madhu@treeline.co Mobile: Our Presence in Saudi Arabia AlOhdah Management & Economic Consulting Fifth Floor, Al Eqtessad Building Olaya Street, P.O. Box Riyadh 11372, Saudi Arabia Disclaimer: The information in this report is prepared by Treeline Business Solutions Private Limited (herein after referred as "Treeline "). The report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable but no representation or warranty, expressed or implied, is made that such information and data is accurate or complete, and therefore should not be relied upon as such. Treeline makes no representation as to the accuracy or completeness of such information. Nothing contained in this document shall be construed to be an investment advice or an assurance of the benefits of investing in the any of the securities indicated in this report. Recipient alone shall be fully responsible for any decision taken on the basis of this document. Treeline has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. This report may not consider the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors are urged to make their own investigation or seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report. Investors should note that income from such securities, if any, may fluctuate and that each security s price or value may rise or fall. Investors should be able and willing to accept a total or partial loss of their investment. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily indicative of future performance.