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: MONTHLY CHART LONG-TERM VIEW TADAWUL: DAILY CHART SHORT-TERM VIEW Source: Bloomberg Trend Overview: On the monthly charts, the index is still moving in uptrend since Q The movement was ended in a bullish candlestick formation with two longlegged candlestick pattern, suggesting consolidation at current level and indicates a likely pause in the strong downtrend. Also, the last month s candle is above the previous month s candle, corroborating the above observation. The monthly RSI has turned up above the (50) level, supporting this observation and indicating a mid-term rise. Estimation: In the coming month, the index could rise toward 9,192 and 9,656 if it sustains above 8,728. Source: Bloomberg On the Daily charts, the TASI is trading above its upward sloping trend line after breaking the downtrend, and ended in a bearish small body candlestick formation, suggesting a strong resistance at 8949, which represents the previous peak. The daily RSI in the positive terrain has turned down, suggesting the index could start to negatively reverse in the near term. Despite this, the recent Royal decisions in the last week could support turning the scenario into a positive side. Estimation: The index could penetrate 8,949 and rise toward 9,226 and 9,677 if it sustains above 8,450. in contrast, breakout below 8450 could end the mid-term upward path. 2

3 4250: JABAL OMAR DEVELOPMENT : BUY TECHNICAL SUMMARY The stock ended at SAR On the weekly charts, the stock ended in a bullish candlestick formation above the current sideway trend, suggesting continued rebound. consolidation near the 20-week SMA supports the above observation. in addition, the breakout is confirmed by higher than the average volumes. Traders could consider buying above SAR 56.00, with a stop loss of weekly close below SAR and a target price of SAR : NATIONAL PETROCHEMICAL (PETROCHEM ) : BUY The stock ended at SAR On the weekly charts, the stock ended above the 10-week SMA for the first time since Oct It forms a bullish candlestick formation above the previous candle s high, suggesting continued rebound. The RSI has turned up, supporting this observation and indicating a near-term rise. Traders could consider buying above SAR 24.75, with a stop loss of weekly close below SAR23.90 for a target price of SAR

4 2280 : ALMARAI COMPANY : BUY TECHNICAL SUMMARY The stock ended at SAR On the weekly charts, it breached the Bullish Symmetrical Triangle, signifying the end of sideway movement for the stock. The stock ended in a bullish candlestick formation above the previous peaks, suggesting continued rebound. The weekly RSI is in the positive terrain, suggesting the stock could gain in the coming sessions. Traders could consider buying above SAR83.50, with a stop loss of weekly close below SAR79.30 for a target price of SAR : RED SEA HOUSING SERVICES COMPANY : BUY The stock ended at SAR On the weekly charts, the stock breached the downward sloping trend line and ended above the 38% retracement, suggesting optimism. Furthermore, consolidation above the 10-week SMA supports the above observation. Daily momentum oscillators in the positive terrain indicates further upside potential. Traders could consider buying above SAR40.50, with a stop loss of weekly close below SAR39.00 for a target price of SAR

5 4040: SAUDI PUBLIC TRANSPORT (SAPTCO ) : BUY TECHNICAL SUMMARY The stock ended at SAR On the weekly charts, the stock stabilized above the lower Bollinger band, signifying increased upside momentum in the near term, suggesting continued rebound. Furthermore, it ended above the 10-week SMA for the first time since Oct-2014 and forms a bullish candlestick above the downward sloping trend line. Therefore, we expect the stock to strongly rebound in the near term. Traders could consider buying above SAR25.70, with a stop loss of weekly close below SAR23.25 for a target price of SAR : AL JOUF CEMENT COMPANY : BUY The stock ended at SAR On the weekly charts, the stock ended above the 10-week SMA for the first time since Oct It forms a bullish candlestick formation with above-average volume, supporting the bullish bias on the stock. The RSI has turned up, supporting this observation and indicating a nearterm rise Traders could consider buying above SAR16.10, with a stop loss of weekly close below SAR15.20 for a target price of SAR

6 2040: SAUDI CERAMIC COMPANY : BUY TECHNICAL SUMMARY The stock ended at SAR On the weekly charts, it breached the Pennant formation, signifying the end of narrow fluctuation for the stock. The stock ended above the 10- week SMA for the first time since Nov-2014, suggesting continued rebound. The weekly RSI is in the positive terrain, suggesting the stock could gain in the coming sessions. Traders could consider buying above SAR110.25, with a stop loss of weekly close below SAR106.5 for a target price of SAR : BAWAN COMPANY : BUY The stock ended at SAR55.03 On the weekly charts, the stock breached the downward sloping trend line and in ends a bullish candlestick formation, suggesting optimism. Furthermore, consolidation above the 10-week SMA supports the above observation. Daily momentum oscillators in the positive terrain indicates further upside potential. Traders could consider buying above SAR55.00, with a stop loss of weekly close below SAR52.75 for a target price of SAR

7 COMMODITY ANALYSIS: BRENT OIL MAY RISE TO $72.13 IN H TECHNICAL SUMMARY The index ended at $52.99 On the Monthly charts, the price is moving in the last corrective wave (C) of a three-wave cycle (A), (B) and (C). The index found support near the 200% Fibonacci projection ($48.58) and ended in a monthly close above the support, indicating a mid-term rebound. Despite of a positive anticipation, Its hard to confirm the end of correction before the next month close and the next month candlestick formation. The index ended in a weekly bullish candlestick pattern, suggesting optimism and further upside potential toward $61.83 in the near term and $72.13 at the end of Breakout and a monthly close below $48.58 could open the way towards the next support at $ Source: Bloomberg 7

8 COMMODITY ANALYSIS: SPOT GOLD TO DECLINE INTO A RANGE OF IN 2015 TECHNICAL SUMMARY The index ended at $ On the Weekly charts, the price is moving in the first wave (A) of a threewave cycle that developed from Sep high of $1921. A detailed study on the structure of the wave (A) suggests a maximum fall toward $ The index faced resistance at the top of the descending triangle ($1307.6), indicating the trend is likely to resume declining toward the first target of $ The index ended in a weekly bearish candlestick pattern with Hanging Man formation, suggesting further downside potential toward $ in the midterm and $ in the long-term. breakout and a weekly close above $ could take the index higher in the medium term. Source: Bloomberg 8

9 COMMODITY ANALYSIS: DOLLAR INDEX TO RISE TO IN NEAR-TERM. TECHNICAL SUMMARY The index ended at On the Monthly charts, the price is moving in the second corrective wave ((B)) that developed from March 2008 low of A detailed study on the structure of the uncompleted wave ((B)) shows upward breakout from the combinations of corrective patterns double threes, suggesting further upside toward in the near term. The monthly RSI has positively breached the overbought level (70), supporting the optimistic view on the index. Moreover, the short-term moving average 10-month SMA crosses the longer-term average 20-month SMA from below, supporting the bullish bias on the index. The index ended in a monthly bullish candlestick pattern, suggesting further upside potential toward in the short-term and in the mid-term. Source: Bloomberg 9

10 AGM - Head of Research Abdullah Alawi a.alawi@aljaziracapital.com.sa Senior Analyst Syed Taimure Akhtar s.akhtar@aljaziracapital.com.sa Analyst Sultan Al Kadi s.alkadi@aljaziracapital.com.sa Research Division Senior Analyst Talha Nazar t.nazar@aljaziracapital.com.sa Analyst Jassim Al-Jubran j.aljabran@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