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

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1 Saudi Stock Market Weekly Update Week Ending August 04, 2016 The 1% fall in sector (bank) deposits in 1H16 is the first downturn in many years and reflects tightening liquidity across the economy, starting at the state level and spreading across the private sector - Fitch Ratings on Saudi Arabia TASI decreases by 1.4% Bank of England cuts Bank Rate Tadawul All Share Index (TASI) registered yet another weekly fall with the index losing 1.4% to close at 6,246 points. Three consecutive weekly fall has dragged down the index by 6% and took the year-to-date loss to 9.6%. Oil prices also continued to be soft even as Brent saw some recovery during the later part. Brent Crude currently trades at USD 43 per barrel levels. During the week, Saudi Arabia saw its own version of liquidity injection with SAMA offering about SAR 15bn to Saudi Arabian banks in order to overcome short-term liquidity pressure. As Reuters reports, Saudi Arabian interbank rates have been increasing steadily over the last 12 months. TASI CLOSE & MARKET TURNOVER 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, ,302 3,405 3,345 4,450 3,486 3, Jul-16 6,346 6,268 6,238 6, Aug Aug Aug Aug-16 Total Turnover TASI Close (RHS) 6,360 6,340 6,320 6,300 6,280 6,260 6,240 6,220 6,200 6,180 Regional indices were largely negative with Abu Dhabi (-1.5%) losing the most followed by Saudi (-1.4%). Qatar and Oman gained 0.3% each. Globally, after more than seven years, Bank of England (BoE) reduced interest rate from 0.5% to 0.25% in an effort to ward off a possible recession post the Brexit vote. Apart from announcing that it will buy GBP 60bn of UK government bonds and GBP 10bn of corporate bonds, the bank also signalled that rates could go lower if the economy worsens. BoE also painted a grim picture for the economy, expecting 0.8% growth in 2017, down from 2.3%. TRADING STATISTICS Gainers Losers No change Total No. of Companies Saudi market breadth was negative with 45 gainers as against 122 losing stocks

2 FTSE 100 MSCI EM MSCI World S&P 500 SSE DAX DJIA Nikkei Qatar Oman Kuwait Bahrain Dubai Saudi Abu Dhabi GLOBAL INDICES WEEKLY RETURNS 0.3%, 6, %, 876 0%, 1, %, 2, %, 2, %, 10, %, 18, %, 10, %, 5,870 0%, 5, %, 1, %, 16, %, 3, %, 6, %, 4,527 Note: Weekly returns are calculated considering Friday to Thursday week. Numbers indicate weekly returns and index closing values. SAUDI SECTOR INDICES 12 out of 15 sector indices closed the week in Red Amongst sectors, 12 out of the 15 indices closed the week on the lower side. Media and Publishing index lost the most, decreasing 7.6%, followed by Hotel & Tourism (-5.6%) and Telecom & IT (-4.0%). Banking and Petrochemical indices lost 1.2% and 2% respectively. Petrochemicals constituted 22.7% of the total traded value and 14.4% of the total volume to become the top trading sector. This was closely followed by Banks which contributed 22.6% to the value and 27% to the total volume. Index Open Close WTD YTD Total Volume (Mn) Total Turnover No. of Trades TASI 6,336 6, % -9.6% 1,027 18, ,093 Banks & Financial Services 13,628 13, % -13.6% 277 4,072 51,559 Petrochemical Industries 4,426 4, % 1.5% 147 4,082 51,791 Cement 4,097 4, % -11.3% ,770 Retail 9,788 9, % -21.4% ,910 Energy & Utilities 6,815 6, % 16.5% ,708 Agriculture & Food Industries 7,417 7, % -20.4% ,013 Telecom & IT 1,446 1, % -14.4% ,540 Insurance 1,278 1, % 2.6% 156 2, ,253 Multi-Investment 2,496 2, % -24.2% ,864 Industrial Investment 6,202 6, % -3.6% ,569 Building & Construction 2,045 2, % -12.6% ,138 Real Estate Development 6,314 6, % 5.9% 186 1,494 31,806 Transport 6,795 6, % -15.3% ,501 Media and Publishing 2,590 2, % -30.9% ,680 Hotel & Tourism 9,298 8, % -47.8% ,991

3 THIS WEEK S WINNERS & LOSERS Top Gainer United Cooperative Assurance Co. (+29.4%) United Cooperative Assurance Co. registered the largest gain, this week, by increasing 29.4% to close at SAR This was followed by National Medical Care Co. (+12%) and Mouwasat Medical Services Co. (+8%). On the other side, Malath Cooperative Insurance and Reinsurance Co. shed 27.2% and led the losers table, followed by Tihama Advertising & Public Relations Co. (-16.7%) and Abdulmohsen Alhokair Group for Tourism and Development (-14.8%). Top Loser Malath Cooperative Insurance and Reinsurance Co. (-27.2%) SABIC, the gulf s largest company, decreased 2% during the week and clocked a turnover of SAR 3bn. SABIC has increased 5.4% during the year to close at SAR TOP GAINERS TOP LOSERS Company Close WTD YTD Value Traded Company Close WTD YTD Value Traded U C A % 16.5% 12,028 Care % 28.2% 1,400 Mouwasat % 15.7% 266 MESC % -17.3% 3,680 Herfy Foods % -27.8% 664 Malath Insuranc % -46.1% 5,359 TAPRCO % -13.9% 12,074 Al Hokair Group % -48.8% 4,427 TADCO % 12.6% 3,277 MEDGULF % -25.0% 3,863 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. 241, % 5.4% 16, Saudi Telecom Co. 120, % -11.9% 8, Al Rajhi Bank 93, % 10.3% 7, Saudi Electricity Company 76, % 17.4% 1, National Commercial Bank 74, % -26.9% 9, Jabal Omar Development Co. 58, % 13.5% -230 NA 6.3 Almarai Co. 43, % -6.5% 2, Saudi Arabian Mining Co. 41, % 7.2% Kingdom Holding Co. 40, % -30.8% Samba Financial Group 36, % -21.3% 5, TASI 1,446,037 6, % -9.6% 95,

4 SAUDI ARABIA CORPORATE & ECONOMIC NEWS Etihad Etisalat Co. (Mobily) signed a Memorandum of Understanding (MoU) with Saudi Telecom Co. (STC) to explore joint options to extract value from their telecommunication towers in the Kingdom. Red Sea Housing Services Co. has signed a letter of award with Kuwait s Fluor Consultants to build residential complexes and a warehouse in Kuwait for a total value of SAR 57mn. United Electronics Co. (extra) has cancelled a letter of intent (LoI) with Mohammed Youssef Al-Saqr and Partners to acquire a 51% stake in fashion retail subsidiary v Co. Saudi Vitrified Clay Pipes Co. said it will partly halt some kilns in its Riyadh plants from August 1 to cut operating expenses, in response to a lower demand for pipes. Saudi Company for Hardware (SACO) has inked a one-year service contract with Medscan Terminal Company to provide transportation, logistics and warehousing services. Arabia Insurance Cooperative Company s board has approved a proposal to decrease the company s capital by 33.75% from SAR 400mn to SAR 265mn. Saudi Arabia s government is reportedly in talks to buy out construction conglomerate Saudi Oger. The Royal Commission for Jubail and Yanbu (RCJY) signed several contracts to launch commercial projects worth SAR 1.26bn in Jubail and Ras Al Khair industrial cities. Nesma Airlines has received its airline operator certificate from Saudi Arabia's General Authority for Civil Aviation in Hail. The Capital Market Authority (CMA) has published draft instructions before introducing real estate investment traded funds (REIT). Saudi Basic Industries Corp. (SABIC) has cut its local urea price for August by SAR 38 per ton to SAR 667 per ton. General Authority of Civil Aviation has reportedly received bids to operate and maintain Jeddah s King Abdulaziz International airport, and the contract could be awarded within August. Saudi Arabia plans to establish a SAR 4bn fund to develop its venture capital industry and support small and mediumsized companies. The cabinet has approved a plan for the Public Investment Fund and the Ministry of Commerce and Investment to set up the new fund. Saudi Arabia s Ministry of Labor and Social Development is preparing to launch a major project to provide housing for social security beneficiaries and those in need of housing support.

5 OTHER GULF NEWS GLOBAL ECONOMIC NEWS UAE-based KBW Investments has signed two agree- Australia's central bank has reduced interest rates to ments with Jordan to install LED streetlights in the a record low, cutting its cash rate from 1.75% to Kingdom. 1.5%, after a recent run of weak inflation numbers. Abu Dhabi-based Aldar Properties has agreed with Toyota Motor Corp said it is developing a next- banks to refinance loans worth AED 1.8bn with long- generation taxi for the Japanese market and that it er maturities. had formed a partnership with Japan hire-taxi feder- UAE-based healthcare firm AVIVO Group aims to list ation to explore uses for new technology. in London next March and raise around USD 500mn Chevron Corp, the second-largest U.S. oil company, from the offering, its Chairman said. is reportedly selling some assets in Asia worth up to DP World has signed a long-term lease agreement USD 5bn. for the expansion and operation of Canada's Rodney AirAsia Bhd will kick off the sale of a majority stake in Container Terminal. its plane leasing unit this month, a deal that could Qatar Airways has increased its stake in British Air- value the business at about USD 1bn. ways owner International Airlines Group (IAG) to Bankrupt solar company SunEdison plans to stop 20% and reiterated that it might consider increasing making interest payments on behalf of its two yield- its stake further within the allowable limits. cos, TerraForm Global Inc and TerraForm Power LLC, Qatar-based Barwa Real Estate has bought a vacant due to its Chapter 11 proceedings. plot of land in the Riyadh, Saudi Arabia for SAR Office Depot Inc said it would close about 300 more 659mn. stores in the next three years to help cut annual Oman Air and Saudi Arabian Airlines have signed a costs by USD 250mn by the end of codeshare agreement covering services between Emerson Electric Co, said it would sell its network Muscat and four destinations in Saudi Arabia. power unit to investment firm Platinum Equity in a Aluminium Bahrain (Alba) said it had appointed the GE and GAMA Consortium as EPC contractor for its Power Station 5. deal worth USD 4bn, while Japan's Nidec Corp would buy its motors and electric power division for USD 1.2bn.

6 C H A R T S O F T H E W E E K MARKET CAPITALIZATION OF WORLD S MOST VALUABLE PUBLIC COMPANIES (2006 VS 2016) Source: Yahoo Finance, Forbes, Statista TREND IN WORLDWIDE TABLET SHIPMENTS SINCE 2010 Source: IDC, Statista

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