2-Oct Thousands 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 13:30 13:45 14:00 14:15 14:30 14:45 9 October 2016 TASI Index 5,631.3 0.83% Turnover (SAR mn) 3,030.4-13% TASI Intra Day Movement Global commentary Research Department research@alrajhi-capital.com Tel:+966 11 211 9370 5,660 5,640 5,620 5,600 5,580 5,560 5,540 Intraday TASI Activity Trend (Last 10 Days) - 6 4 2 Turnover (LHS, SAR bn) Previous Close TASI Index (RHS) 9,000 8,500 8,000 7,500 7,000 6,500 6,000 5,500 5,000 Regional Indices Close 1D% WTD% YTD% KSA (TASI) 5,631 0.8-18.5 Qatar (DSM) 10,357-0.1-0.7 Kuw ait (KSE) 5,320-0.6-5.3 Abu Dhabi (ADSM) 4,390-0.1 1.9 Dubai (DFM) 3,355-0.2 6.5 Oman (MSM30) 5,610-0.1 3.8 Bahrain (BSE) 1,137-0.2-6.5 MSCI GCC 413-8.9 Major Commodities / Currencies Close 1D % WTD % YTD % Gold Spot $/Oz 1,257 0.2-4.5 18.4 Silver Spot $/Oz 17.54 1.3-8.5 26.6 Crude Oil (Brent) 51.93-1.1 17.0 OPEC Basket 47.84 0.2 7.2 53.0 Euro 1.12 0.4-0.3 3.1 USD Index 96.63-0.1 - JPY 102.980-1.6 16.7 Major Global Indices Close 1D % WTD % YTD % DJ Industrial 18,240-0.2 4.7 S&P 500 2,154-0.3 5.4 Nikkei 225 16,860-0.2-11.4 Hang seng 23,852-0.4 8.8 FTSE 100 7,044 0.6 12.8 CAC 40 4,450-0.7 - MSCI World 1,712-0.3 3.0 MSCI EM 915-0.2 15.2 US stock markets declined over the past week, owing to weakerthan-expected non-farm payrolls data coupled with the IMF reducing the US 2016 growth forecast to 1.6%, down from 1.8% as predicted earlier. The S&P 500 dropped 0.7%, while the Dow Jones and the Nasdaq Composite Index fell 0.4% each. European markets ended the week on a mixed note. An ECB official rejected the reports suggesting scaling back of the QE program ahead of the schedule. The FTSE 100 advanced 2.1%, as the weak pound supported the export-oriented stocks. Meanwhile, the DAX shed 0.2%, while the CAC 40 ended on a flat note. GCC markets dropped last week. Dubai and Oman declined 3.4% and %, respectively, while Abu Dhabi and Kuwait fell 1.9% and 1.4%, respectively. Further, Bahrain and Qatar shed 1.1% and 0.7%, respectively. Asian markets rose over the previous week. The Nikkei 225 and the Hang Seng Index gained 2.5% and 2.4%, respectively, while the KOSPI rose %. Meanwhile, the Shanghai Composite Index was closed on account of Golden Week public holidays. Brent crude declined 1.1% on Friday, as investors were concerned over Russian energy minister s comment over the likelihood of the production cuts deal. Further, a rise in the US oil rig count (sixth consecutive weekly rise) weighed on the prices. Key crude contracts Brent and WTI ended at US$ 51.93 (-1.1%) and US$ 49.81 (-1.3%), respectively. Saudi commentary Tadawul All Share Index (TASI) rose 46.15 points or 0.83% to close at 5,631.26. Fourteen of the fifteen sector indices closed higher. The advance decline ratio was 109/51. Trading turnover was around SAR 3bn. S&P affirms Saudi Arabia s ratings at 'A-/A-2' with stable outlook: Saudi Arabia's credit ratings were affirmed on Friday by S&P Global Ratings at A-/A-2 with a stable outlook, backed by expectations that the kingdom s authorities will take steps to prevent any deterioration in the government fiscal position over the next two years. (Argaam) Tadawul to disseminate the Theoretical Open Price and Volume: Tadawul has finalized arrangements to start disseminating the Theoretical Open price and volume during the pre-open market state, starting from October 16th, 2016. This step is in line with Tadawul s goal to increase market transparency and information accessibility for investors.(tadawul) Saudi Catering wins tender to operate duty free shops at King Khaled Airport: Saudi Airlines Catering Company said that its consortium comprising Lagardere Travel Retail, a French company, and Arabian Ground Handling Logistic Co. was awarded the tender to operate the duty free shops at King Khaled International Airport in Riyadh.(Argaam) Interest Rates 1M 3M 12M 3M Chg 1Y LIBOR (USD) 3 0.88 1.59 6 SAIBOR 8 2.36 2.64 1.46 EIBOR 0.75 1.27 1.81 0.44 Data Sources: Bloomberg Updated as of 09/Oct/2016 7:53 AM Please see penultimate page for additional important disclosures. Al Rajhi Capital (Al Rajhi) is a foreign broker-dealer unregistered in the USA. Al Rajhi research is prepared by research analysts who are not registered in the USA. Al Rajhi research is distributed in the USA pursuant to Rule 15a-6 of the Securities Exchange Act of 1934 solely by Rosenblatt Securities, an SEC registered and FINRA-member broker-dealer. 1
Latest Research - Saudi Arabian Economy: - The Kingdom s Q2 2016 GDP grew 1.4% y-o-y, recording its slowest pace of growth since Q1 2013. Meanwhile, the nonoil sector GDP recorded a positive growth after declining over the past two quarters. - Brent crude November futures advanced 4.6% m-o-m in September 2016 after an agreement between OPEC nations to cut its production. The final deal is expected to be ratified at their November meeting in Vienna. - Saudi Arabia reduced public sector salaries in view of the country s fiscal situation. The Royal Decree ordered a 20% cut in ministers and similar ranked official s salaries, along with a 15% cut for its Shura council members and curbed overtime bonuses, certain allowance and cancelled annual increments for public sector employees. - SAMA injected SAR20bn (US$5.33bn) in the banking system on behalf of government entities to ease the liquidity situation in the system. - Foreign reserve assets declined for the third consecutive month, in August, by 0.2% m-o-m, versus a monthly fall 1.2% in July. - POS transactions dropped 6.0% y-o-y in August (-15.7% y-o-y in July), while ATM withdrawals rose 3.1% y-o-y (-19.4% y-o-y in July). - Bank claims on the private sector rose in August by 7.5% y-o-y versus a 7.4% y-o-y rise in July. Meanwhile, deposits dropped at a slower pace in August (-2.8% y-o-y as compared to -3.1% in the previous month), pushing the loan-to-deposit ratio beyond the 90% mark for the third straight month. - On the equity front, TASI continued to drop in September (-7.5% m-o-m in September versus -3.5% m-o-m in August 2016). Click here to download attached English Report Disclosures Please refer to the important disclosures at the back of this report. 2
Cement Industries Building Retail Energy Transport Multi invt Hotels Media TASI Large Cap (>10% Index weight) Sectors Performance TASI Top Gainers / Losers 3.5 3.0 2.5 1.5 TASI Petrochem Banks Telecom 1 - -1-1 -2-2 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Arabian Pipes Co 14.35 1 1.420 19.55 Gulf General Coop 12.39 ` 06 12.11 Saudi Elec 17.21 8.4 2.137 35.55 Saudi Steel Pipe 14.25 7.3 0.409 5.74 Takw een Advanced 13.35 6.4 1.908 24.69 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Al Hokair 2-3.9 3.513 88.51 Zain Saudi 7.5-3.2 5.225 39.40 Etihad Atheeb 3.1-3.1 1.615 4 Halw ani Bros Co 48.5-2.4 80 3.96 Jabal Omar 5-2.4 0.474 24.93 TASI Mid Cap (5-10% index weight) Sectors Performance TASI Top Index Movers / Losers (Heavy weight stocks) 2.5 1.5 - - - - -1 Real Estate Agri -1-2 -2-3 Company Last Price Chg % Index Imp Value Trd (SAR mn) Saudi Elec 17.21 8.4 9.8 2.14 Samba 17.65 8.6 0.83 NCB 35.18 3.5 8.6 0.79 Sabic 84.25 5.2 4.31 STC 54.14 3.0 5.2 4 Company Last Price Chg % Index Imp Value Trd (SAR mn) Jabal Omar 51.95-2.4-7.1 24.93 Al Rajhi Bk 51.80-0.8-4.9 99.45 Al Hokair 24.97-3.9-1.1 88.51 Zain Saudi 7.47-3.2-0.8 39.40 Makkah Const 86.58-0.8-0.7 7 TASI Small Cap (<5% index weight) Sectors Performance TASI Volume Leaders 8 6 4 2 0-2 -4-6 -8 2 1-1 -2-3 -4-5 -6 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Alinma Bk 11.40 44.292 505.88 Saudi Kayan 6.13 4.4 22.276 133.82 Dar Al Arkan 4.94-0.6 14.469 71.90 Zain Saudi 7.47-3.2 5.225 39.40 Sabic 84.25 4.305 362.21 Saudi Paper Mfg 7.54 1.9 3.825 29.07 Al Hokair 24.97-3.9 3.513 88.51 Al Tayyar 26.00-0.3 3.127 81.75 Bank Al-Jazira 12 0.3 2.525 25.42 Saudi Printing & Pkg 11.46 5.1 2.381 27.33-10 -7 TASI Stocks Closer to 52 Week High TASI - Stocks Closer to 52 Week Low Company Last Price 52Wk High % Diff Value Trd (SAR mn) Sanad Coop Ins 15.23 15.23 % 00 Weqaya For Takaf 19.39 19.39 % 00 Wala'a 15.98 17.10 7.0% 32.836 Yansab 47.50 50 9.5% 17.150 Sabic 84.25 92.75 10.1% 362.214 Company Last Price 52Wk Low % Diff Value Trd (SAR mn) Sanad Coop Ins 15.23 15.23 % 00 Weqaya For Takaf 19.39 19.39 % 00 Al Hokair 24.97 24.70 1.1% 88.512 Jarir Mktg 80 80 1.2% 122 Saudi Air Cater 80.91 79.75 1.5% 17.118 Disclosures Please refer to the important disclosures at the back of this report. 3
2-Oct DSM Bank Telecom Consumer Transport Real Estate ADSM Real Estate Energy Telecome Banks Fin. Industrial Consumer DFM Bank Reality Investment Transport Telcom Performance of Regional markets Country Last Index Change (%) MCap Volume Turnover P/E (x) P/E (x) P/E (x) P/B (x) Div Yld Close 1D 1M YTD US$ bn mn shr US$ mn 12M 2016E 2017E Current 12M (%) Saudi Arabia 5,631 0.8 0.1-18.5 357 182 808 13.4 12.1 1 1.3 4.2 Qatar 10,357-0.1-0.7-0.7 130 5.5 52 14.5 13.2-1.6 3.9 Dubai 3,355-0.2-3.4 6.5 80 175 76 1 1 1.2 4.1 Abu Dhabi 4,390-0.1-1.9 1.9 118 51 34 11.7 11.7 6.3 1.4 5.6 Kuw ait 5,320-0.6-1.4-5.3 79 113 60 18.3 NA 8.5 4.4 Oman 5,610-0.1-3.8 17 14 6 1 8.7-8.2 1.1 5.1 Bahrain 1,137-0.2-1.1-6.5 18 1.1 1 9.5 NA NA 0.4 4.9 Dubai Activity Trend (Last 10 Days) Dubai Sector Performances Dubai Top Gainers / Losers 0.8 0.4 Turnover (LHS, AED bn) DFMGI Index (RHS) 3,550 3,500 3,450 3,400 3,350 3,300 3,250-2 Dubai 2.48 14.8 0 2 Emaar Malls 2.60 1.2 1.79 1 Air Arabia 1.30 0.8 5.52 1 Shuaa Capital 0.88 0.6 7 Union Properties 0.72 0.6 7.34 - -1 Takaful House 0.95-3.1 1.46 Dubai Islamic Ins 4-2.9 0.35 DFM 1.22-2.4 6.54 Islamic Arab Ins 0.45-2.1 3.81 Drake & Scull Intl 0.45-1.7 17.96 Abu Dhabi Activity Trend (Last 10 Days) Abu Dhabi Sector Performances Abu Dhabi Top Gainers / Losers Turnover (LHS, AED bn) ADSMI Index (RHS) 5,000 4,500 4,000 3.0 - - - - 3 Abu Dhabi Natl Taka 0 5.3 0.236 2 Aldar Prop 2.62 4.128 2 AD Nat (TAQA) 5 1.9 68 Rak Properties 0.60 1.7 5.309 1 Fujairah Cement 0.86 1.2 2.378 1 - -1-1 Intl Fish Farming 1.73-2.8 0.249 NBAD 8.70-2.3 0.484 Methaq Takaful 0.82-1.2 1.393 Natl Marine Dredg 4.70-0.8 00 FGB 11.30-0.4 47 Qatar Activity Trend (Last 10 Days) Qatar Sector Performances Qatar Top Gainers / Losers 0.6 0.3 Turnover (LHS, QAR bn) DSM Index (RHS) 10,800 10,400-2 Gulf Intl Servcs 35.35 0.9 99 1 Qatar Intl Is Bk 64.40 13 Qatary investors 50.60 0.4 0.820 1 Qatar Electric 210 0.3 16 Ooredoo 94.20 0.3 95 10,000 - - - Qatar 86.90-1.3 39 QIsB 103.00-0.105 United Devt Co 19.75-0.9 28 Barw a Real Est 33.50-0.9 64 Vodafone Qatar 10.91-0.6 2.578 Disclosures Please refer to the important disclosures at the back of this report. 4
BSE Banks Hotel & Tourism Industries 2-Oct Thousands KSE Technology Investment Industrial Real estate Bank Fin. Parallel Telecom Consumer Basic material Oil&Gas Healthcare Kuwait Activity Trend (Last 10 Days) Kuwait Sector Performances Kuwait Top Gainers / Losers 20 15 10 5 0 Turnover (LHS, KWD mn) KWSEIDX Index (RHS) 5,420 5,400 5,380 5,360 5,340 5,320 5,300 5,280 5,260 - - - 2 Wataniya 1140 7.6 05 2 Future Communicatio 102 5.2 33 1 Tijara And Real 41 3.8 0.100 1 Ikarus Petroleum 32 3.2 55 Zima Holding Co 39.5 2.6 0.635 - -1-1 -2 Ifa Hotels & Res 168-12.5 02 Kuw ait & Middle Inv 22-10.2 96 Sultan Center Fd 54-6.9 0.218 Kuw ait Fin & Invest 34-6.9 92 Arab Real Estate 28-6.7 2.839 Oman Activity Trend (Last 10 Days) Oman Sector Performances Oman Top Gainers / Losers 24 20 16 12 8 4 0 Turnover (LHS, OMR mn) MSM30 Index (RHS) 5,800 5,750 5,700 5,650 5,600 5,550 5,500 - - - 1 HSBC Bank Oman 0.106 2.935 1 Sembcorp 0.239 3.5 08 MSM 30 Bank Industry 1 Oman United Ins 0.286 1.8 17 Bank Nizw a 79 1.3 5.214 8.0 Bank Muscat 0.412 1.245 6.0 Renaissance Serv 0.210-4.6 09 Bank Dhofar 0.206-2.8 1.433 Galfar Engineering 0.105-2.8 60 Al Anw ar Holding 0.180-2.7 33 Ahli Bank 0.185-2.6 0.100 Bahrain Activity Trend (Last 10 Days) Bahrain Sector Performances Bahrain Top Gainers / Losers 1 1 1 8.0 6.0 - Turnover (LHS, BHD mn) BHSEASI Index (RHS) 1,155 1,150 1,145 1,140 1,135 1,130 1,125 - - - -3.5 - -1-1 -2-2 United Gulf Bank 0.376 9.9 37 Bahrain Islamic Bk 0.112 8.7 41 Nass Corp 0.102 20 Seef Properties 0.204 66 NA NA NA NA GFH 0.280-9.7 28 Ithmaar Bank 0.115-4.2 0.220 Albaraka Banking 0.470-1.1 15 Ahli United Bk 0.635-0.8 0.140 Bahrain Telecom 0.288-0.7 85 Disclosures Please refer to the important disclosures at the back of this report. 5
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