MONTHLY TECHNICAL REPORT

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1 The purpose of producing this report is to present a general view on the market, equities and commodities subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, no information in this analysis should be considered as being business, financial and legal advice.

2 TADAWUL: DAILY CHART SHORT-TERM VIEW TADAWUL: WEEKLY CHART MED-TERM VIEW 7665 Trend Overview: On the Daily charts, the Index remains in Pennant Pattern, which is considered to be a continuous pattern (positive) when formed after a bullish wave. Moreover, the Index ended with a negative candlestick that edged below the daily moving averages. Meanwhile, daily RSI continued its negative performance toward the 50 level which further boost negative expectations on the short term; the daily simple moving averages crosses are trending negatively. Estimation: We expect the index to retest the level of 9570, and then attempts to surpass the earlier peak at 9897, reaching for points in the coming period. Maintaining the positive trend requires stability on the short term above 9570 to avoid any negative behavior that could discontinue the above positive scenario. Trend Overview: On the Weekly charts, The Index penetrated the downtrend levels at the end of last April, and moving around the earlier peak at 9745 for the sixth consecutive week, closing with a positive candlestick formation in the last week. In addition, the weekly MACD indicator remained positive and the weekly simple moving averages crosses are trending positively. Estimation: We expect an uptrend during the upcoming period to around levels. For the positive trend to continue on the medium term, the index is required to show stability above the simple moving average for 20 weeks at 9340 to avoid any negative scenario that could counter the positive trend on the medium term. 2

3 TADAWUL: MONTHLY CHART LONG-TERM VIEW TECHNICAL SUMMARY The index closed at 9689 points. Trend Overview: On monthly basis, the index maintained the bullish trend started during the first quarter Moreover, the index ended the month with a consistent performance after testing one of its important moving averages at 9550 points, closing above the bullish level; thus, indicating a positive movement outlook for the upcoming period. The RSI monthly bounced back from the 50 levels, indicating the potential uptrend on the medium term. In addition, the index closed above the simple moving average levels of 10 months and for the second consecutive month for the first time since November Expectations: The outlook on the long run remains positive, as resistance levels will be at points levels, while the levels at represent the most important support levels on the long run. 3

4 8250: AXA COOPERATIVE INSURANCE CO. : BUY TECHNICAL SUMMARY The stock ended at SAR On the weekly charts, the stock edged up to current horizontal level, which indicates the possibility of a continued up trend toward new levels. Also, the movement of the most important weekly simple moving averages in an attempt to form positive crosses for the first time in months, support the positive outlook. Traders could consider buying above SAR 27.50m with a stop loss of weekly close below 25.70, and the technical target price at SAR : JABAL OMAR DEVELOPMENT CO. : BUY The stock ended at SAR On the weekly charts, the stock is about to outperform the trend formed during the last period, which signals a positive impression for the upcoming period. The stock ended with a positive candlestick formation above last week level, which support the positive outlook for the upcoming period. The RSI is moving in positive territory with higher traded volume, which further supports the uptrend. Traders could consider buying above SAR levels, with stop-loss of weekly close below SAR and technical target price at SAR

5 MONTHLY TECHNICAL REPORT 2140: AL-AHSA DEVELOPMENT CO. : BUY TECHNICAL SUMMARY The stock ended at SAR On the weekly charts, the stock overcame the downside trend that started May 2014, which indicates a possible bullish trend toward new levels. It is still holding above the important weekly moving averages for the fifth week in a raw. The RSI broke above the 50 level and held steady, which further supports the positive outlook. Traders could consider buying the stock above SAR levels, with stop-loss of weekly close below SAR 15.70, and technical target price of SAR : WAFRAH FOR INDUSTRY AND DEVELOPMENT CO. : BUY The stock ended at SAR On the weekly charts, The stock penetrated across the bearish trend for the earlier period, providing a positive note for future trend. The stock also bounced back from the 20 weeks simple moving average and held steady, which indicates a further bullish performance possibility; moreover, the Slow Stochastic index reversed to form a positive weekly cross. Traders could consider buying above SAR with stop-loss of weekly close below SAR The technical target price is at SAR

6 3020: YAMAMA CEMENT CO. : BUY TECHNICAL SUMMARY The stock ended at SAR On the weekly charts, the stock was able to surpass Fibonacci 23.6% levels at SAR 48.31, which provide a positive sign if it holds during the coming period. After performing below the simple moving average of 20 weeks for a long period, the stock bounced above it, and the MACD index is trending positively which entitles the stock for a bullish movement in the coming period. Traders could consider buying above SAR levels, with a stop loss of weekly close below SAR for a target price of SAR : ASTRA INDUSTRIAL GROUP : BUY The stock ended at SAR On the weekly charts, the stock bounced above the simple moving average for 20 weeks and retested, thus providing a positive outlook for the coming period. Most of the stock s weekly averages are about to cross positively, which could provide for further uptrend in the future. The weekly MACD index crosses are in a positive position which strengthens the short term positive expectations. Traders could consider buying above SAR 34.25, with a stop loss of weekly close below SAR for a technical target price of SAR

7 BRENT OIL: EXPECTED RETESTING THE US$ LEVEL TECHNICAL SUMMARY The index ended at US$ On the Daily charts, the Brent Crude Index price is still trading in the up on the near-term, and holding above the uptrend on the near term, suggesting a positive trend on near-term. The index movement is still restricted in the Flag Pattern, which suggests a continued trend if penetrated above The RSI still moving positively above the (50) level. The Brent Crude Index rebounded above its important daily averages, supporting positive expectations and uptrend movement. Estimation: Is likely to retest the US$ levels towards the US$ target. We believe that the inability to exceed $69.7 may signal a weakness to start forming a negative trend of the index on the near term Double Tops. 7

8 GOLD ANALYSIS: SPOT GOLD TO FALL BETWEEN $1166 AND $ 1142 IN THE NEAR-TERM TECHNICAL SUMMARY The index ended at US$ 1190 On the Weekly charts, the price continued its negative trend started in September 2011 at US$ Our outlook for Gold remains negative on the medium term, as it is expected to fall toward US$ levels in Moreover, the index is moving in a narrow range of a Symmetrical Triangle Pattern, indicating a continued pattern of movement. We believe that falling below will add accelerating pressure to the index towards the levels indicated in the chart. Estimations: With the index peaking lower than the previous peaks, along with the RSI trending low, our estimations point to the negative side reaching around US$ an ounce on the short term, then towards the consecutive expected targets, while we estimate that a reverse trend towards US$ 1260 will cancel the above scenario. 8

9 DOLLAR INDEX (DXY): WE LEVERAGE OUR OUTLOOK FOR THE US$ INDEX IN 2015 TO TECHNICAL SUMMARY The index ended at The index is currently trending in the second corrective wave (B) of the monthly charts started in 2008 at The index received good support at the levels above around 93.61, which indicates the first end signs for wave (4) from wave (C), and is expected to test the previous peak at The RSI continued to hold firm above the (70) level pointing up in an indication for a positive performance in the coming period. The 10 months simple moving average is trending above the 20 months moving average, marking a positive interaction that support uptrend movement on the medium term. Estimations: It is likely that the index will test the levels of in the coming period, and continue rising towards levels and then further to levels during

10 AGM - Head of Research Abdullah Alawi a.alawi@aljaziracapital.com.sa Analyst Jassim Al-Jubran j.aljabran@aljaziracapital.com.sa Research Division Senior Analyst Talha Nazar t.nazar@aljaziracapital.com.sa Analyst Sultan Al Kadi s.alkadi@aljaziracapital.com.sa Brokerage And Investment Centers Division General Manager - Brokerage Division Ala a Al-Yousef a.yousef@aljaziracapital.com.sa Sales And Investment Centers Central Region Manager Sultan Ibrahim AL-Mutawa s.almutawa@aljaziracapital.com.sa AGM - Head of International and Institutional Brokerage Luay Jawad Al-Motawa lalmutawa@aljaziracapital.com.sa Area Manager - Qassim & Eastern Province Abdullah Al-Rahit aalrahit@aljaziracapital.com.sa Regional Manager - West and South Regions Abdullah Al-Misbahi a.almisbahi@aljaziracapital.com.sa AGM - Head of Institutional Brokerage Samer Al-Jaouni s.aljaouni@aljaziracapital.com.sa 10

11 Disclaimer The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by AlJazira Capital from sources believed to be reliable, but AlJazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Aljazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Aljazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Aljazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Aljazira Capital. Funds managed by Aljazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Aljazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Aljazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Aljazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Aljazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations. 11