TASI ended the month at 7,226.32 points, a 3.2% increase MoM compared to November 2017.Total value traded stood at SAR 87.41bn. Basic Materials and Real Estate Mgmt & Dev t sectors accounted for 51.4% of the total value traded. Capital Goods and Media were the best performing sectors, showing an increase of 10.2%MoM and 8.8%MoM respectively. While Utilities and Food & Beverages sectors were the worst performers showing a decline of 11.6% and 2.7% MoM respectively. TASI Movement During December 7,300 7,250 7,200 7,150 5.50 5.00 4.50 4.00 TASI started the month at 7003.97 points and closed at 7226.32 with an average daily value traded of SAR 4.16bn compared to 3.43bn in November. 7,100 3.50 7,050 3.00 7,000 2.50 3-10- 17-24- 31- Value Traded(bn)-RHS Closing Price - LHS Sectors Performance 6 5 4 3 2 - -2-3 TASI Energy Materials Capital Goods Commercial Service Transportation Consumer Durables Consumer Services Media Retailing Food & Staples MoM Performance Food & Beverages YTD Healthcare Pharma & Bio Tech Banks Diversified Financials Insurance Telecom Utilities REITs Real Estate TASI increased 222.3 points (up 3.2%MoM). Media and Retailing sectors showed the highest YTD increase of 51.1% and 14.7% respectively. On other hand, Pharma & Bio Tech and Consumer Services were the worst performing sectors recording a decline of 26.2% and 23.7% respectively. Value Traded per Sector (%) 1 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Materials Real Estate Mgmt & Dev't Banks Insurance Capital Goods Telecommunication Services Food & Beverages Consumer Services Utilities Energy Commercial & Professional Svc Transportation Media Health Care Equipment & Svc REITs Diversified Financials Retailing Food & Staples Retailing Consumer Durables & Apparel Pharma, Biotech & Life Science Basic Materials and Real Estate were the highest traded sectors, accounting for 27.35% and 24.02%, respectively, of total value traded in December. On the other hand, Consumer Durables and Pharma were the lowest, accounting for 0.60% and 0.13% respectively.
GCC Market Performance 5.0% - - -2 TASI Dubai (DFMGI) Abu dahbi Qatar Kuwait Bahrain Oman Monthly YTD On a Monthly basis, Qatar was the best performing index, rising 10.5%MoM. Dubai index was the worst performer recording a decline of 1.5% MoM. On A YTD basis, Qatar was the worst performing index, showed a decline of 18.3%YTD. On the other hand, Kuwait was the best performer, rising 11.5%YTD. Top/Worst Performing Companies (December 2017) 55.0% 45.0% 35.0% 25.0% 5.0% - Dar Al Arkan Yanbu cement CHEMANOL Najran cement ALJOUF Herfy Foods Mouwasat AlHokair Saudi Electric. Enaya Dar Al Arkan was the best performing stock in December recording an increase of 51.3%MoM followed by Yanbu Cement which showed increase of 33.9%MoM. On the other hand, Enaya was the worst performing stock recording a 13.9% decline, followed by Saudi Electric which showed a decline of 12.3%MoM. Companies with lowest PE 10.00 9.00 8.00 7.00 6.00 5.00 6.57 7.54 7.86 7.91 8.07 8.27 8.44 8.45 8.50 8.54 8.84 8.88 9.03 9.21 9.57 Buruj had the lowest P/E of 6.57x by the end of December, followed by Arabian Shield at 7.54x and AL-BABTAIN at 7.86x. 4.00 Buruj Arabian Shield AL-BABTAIN Gulf Union BJAZ saib SAICO ARNB Solidarity Saudi Electric. Trade Union U C A ALTAYYAR WALAA Samba 2
Economic Data SAIBOR 2.500 2.350 2.200 2.050 1.900 3-month and 6-month SAIBOR ended the month at 1.896% and 2.088% respectively. The 3-month and 6-month SAIBOR showed an increase of 4.3% and 1.2% respectively. 1.750 1.600 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Inflation Rate 2.60% 2.10% 1.60% 1.10% 0.60% Saudi Arabia inflation rate stood at 0.1% at the end of November, an increase from ( 0.2%) in October. 0.10% -0.40% -0.90% Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Deposits & loans 5.5% 4.0% 2.5% 1.0% -0.5% -2.0% 90% 88% 86% 84% 82% 80% Deposits showed a decline of SAR 1.22bn (-0.1%MoM), while loans showed a decline of SAR 3.19bn(-0.2%MoM) by end of November. -3.5% Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 78% Changes In Deposits(LHS) Changes in Loans(LHS) ADR(RHS) Change in Loans by Maturity (%) 45.0% 3 - Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 16.0% 13.0% 7.0% 4.0% 1.0% -2.0% Total loans showed a decline of (-1.0% YoY), the highest decline was for loans with maturity of less than 1 year which showed a decline of (-2.9%YoY), while loans of maturity above 3 year showed an increase of 2.5%YoY. Less than 1 Year (%) -LHS 1 to 3 year (%) -LHS Above 3 year (%) -LHS Tota loan YoY Growth (%) -RHS 3
Change in Demand - Time and Saving Deposits SAR (Million) 65,000 40,000 15,000-10,000-35,000-60,000 700 Nov-12 Mar-13 Jul-13 Nov-13 Mar-14 Jul-14 Nov-14 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17 1700 1500 1300 1100 900 SAR ('000) Demand deposits showed an increase of SAR 3.3bn (0.3%MoM), while Time & Saving deposits showed a decrease of SAR 12.1bn (-2.7%MoM). On the other hand, government deposits showed a decline of (-2.7% MoM). Demand Deposit (LHS) Time & Savings Deposits (LHS) Other Deposits (LHS) Government Deposits ( includes all types of deposits)(rhs) POS (Point of Sale) 20.0 69.0 SAR (Million) 18.0 16.0 14.0 12.0 64.0 59.0 54.0 49.0 44.0 39.0 34.0 29.0 SAR ('000) Point of Sales showed an increase of (2.4% MoM) and stood at SAR 16.8bn, with total number of transactions standing at 66.0mn (up 2.7%). 10.0 24.0 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Sales(bn) (LHS) No. of Transactions (mn) (RHS) 4
Commodities Prices Oil Prices (USD) * 68 63 58 53 48 43 8 7 6 5 4 3 2 1 Brent and WTI showed an increase of 5.2%MoM and 5.3%MoM respectively, and closed at $66.87 and $60.42 respectively. 38 Spread(RHS) Brent(LHS) WTI(LHS) 0 Gold & Silver (% Monthly change) 2 5.0% 85 80 75 70 65 60 Gold and Silver showed an increase of 2.2%MoM and 3.0%MoM respectively, and closed the month at $1302.8 and $16.9 respectively. - 55 - Changes in Gold Price(LHS) Changes in Silver Price(LHS) G/S Price (RHS) 50 Copper 3.4 USD/Ib 3.2 3.0 2.8 Copper showed an increase of 8.7%MoM and ended the month at 3.301USD/lb. 2.6 2.4 Steel ** 670.0 USD/Ton 660.0 650.0 640.0 630.0 620.0 610.0 Steel showed an increase of 5.2%MoM and ended the month at 662.0 USD/ton. 600.0 590.0 580.0 570.0 5 * February 2018 contract for Brent, January 2018 contract for WTI ** HRC1 Index
Exchange Rate Dollar Index 104 102 100 98 Dollar Index showed a decrease of (-1.0%MoM) by the end of December and stood at 92.12 points. 96 94 92 90 EUR/USD 1.23 1.19 1.15 Euro appreciated against the Dollar by 0.8%MoM and stood at 1.201EUR/USD. 1.11 1.07 1.03 USD/YUAN 6.950 6.850 6.750 6.650 YUAN appreciated by 1.5%MoM against the Dollar and stood at 6.507YUAN/USD. 6.550 6.450 USD/YEN 118 116 114 112 YEN depreciated by (0.1%MoM)against the Dollar and stood at 112.69YEN/USD. 110 108 106 6
RESEARCH DIVISION Head of Research Talha Nazar +966 11 2256250 t.nazar@aljaziracapital.com.sa Waleed Al-jubayr +966 11 2256146 W.aljubayr@aljaziracapital.com.sa Sultan Al Kadi, CAIA +966 11 2256374 s.alkadi@aljaziracapital.com.sa Muhanad Al-Odan +966 11 2256115 M.alodan@aljaziracapital.com.sa Jassim Al-Jubran +966 11 2256248 j.aljabran@aljaziracapital.com.sa BROKERAGE AND INVESTMENT CENTERS DIVISION General Manager Brokerage Services & sales Alaa Al-Yousef +966 11 2256060 a.yousef@aljaziracapital.com.sa AGM-Head of Sales And Investment Centers Central Region Sultan Ibrahim AL-Mutawa +966 11 2256364 s.almutawa@aljaziracapital.com.sa AGM-Head of international and institutional brokerage Luay Jawad Al-Motawa +966 11 2256277 lalmutawa@aljaziracapital.com.sa AGM-Head of Qassim & Eastern Province Abdullah Al-Rahit +966 16 3617547 aalrahit@aljaziracapital.com.sa AGM- Head of Western and Southern Region Investment Centers Mansour Hamad Al-shuaibi +966 12 6618443 m.alshuaibi@aljaziracapital.com.sa RESEARCH DIVISION AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business. RATING TERMINOLOGY 1. Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target. Stocks rated Overweight will typically provide an upside potential of over 10% from the current price levels over next twelve months. 2. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target. Stocks rated Underweight would typically decline by over 10% from the current price levels over next twelve months. 3. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated Neutral is expected to stagnate within +/- 10% range from the current price levels over next twelve months. 4. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company. 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. 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