29-Jun 30-Jun Thousands 10:00 10:15 10:30 10:5 11:00 11:15 11:30 11:5 12:00 12:15 12:30 12:5 13:00 13:15 13:30 13:5 1:00 1:15 1:30 1:5 20 July 201 TASI Index,.9-3% Turnover (SAR mn) 3,812.8-8% TASI Intra Day Movement Global commentary Research Department research@alrajhi-capital.com Tel:+9 11 211 9370,90,80,70,0,50,0,30,20,10 Intraday TASI Activity Trend (Last 10 Days) - 2 Turnover (LHS, SAR bn) Previous Close TASI Index (RHS) 9,000 8,500 8,000 7,500 7,000,500,000 5,500 5,000 Regional Indices Close 1D% WTD% YTD% KSA (TASI),7 - -0.2-3.8 Qatar (DSM) 10,9 0. 2.1 2.1 Kuw ait (KSE) 5,371-0.2-0. -. Abu Dhabi (ADSM),583-0.1 0.1. Dubai (DFM) 3,52-0.3 1. 11.9 Oman (MSM30) 5,839-0.1-0. Bahrain (BSE) 1,13-0.1-0.9 -. MSCI GCC 7-0.3 0.3-1. Major Commodities / Currencies Close 1D % WTD % YTD % Gold Spot $/Oz 1,33 0.1-0.3 25. Silver Spot $/Oz 19.93 0.1-3.8 Crude Oil (Brent).83 0. -1. 10.2 OPEC Basket 3.3 0.3 0.3 38.7 Euro 1.10-0.2 1. USD Index 97.0-1. JPY 105.980 0.1-13. Major Global Indices Close 1D % WTD % YTD % DJ Industrial 18,559 0.1 0.2.5 S&P 500 2,1-0.1 0.1 5.9 Nikkei 225 1,09-0.7 0.7-12.7 Hang seng 21,839 0.8 0.8-0.3 FTSE 100,97 0. 7.3 CAC 0,330-0. - -. MSCI World 1,99-0.3-0.1 2.2 MSCI EM 88-0.2 9.3 Interest Rates 1M 3M 12M 3M Chg 1Y LIBOR (USD) 0.9 0.70 1.33 0.0 SAIBOR 3 2.23 2.8 EIBOR 0.72 1.13 1.7 0.37 Data Sources: Bloomberg Updated as of 20/Jul/201 7:37 AM US stock markets declined on Tuesday, owing to mixed corporate earnings. The Nasdaq Composite Index dropped 0.%, while the S&P 500 edged down 0.1%, pulled down by the materials and energy sectors. However, the Dow Jones gained 0.1%, driven by McDonald s and Johnson & Johnson. European markets fell yesterday, as a result of weak corporate earnings and sluggish economic sentiment data from Germany. The DAX and the CAC 0 declined 0.8% and 0.%, respectively. However, the FTSE 100 ended on a flat note, as the losses were pared by the gains in energy stocks. Most of the GCC markets declined yesterday, on the back of fall in oil prices and mixed corporate results. Dubai fell 0.3%, led by Drake & Scull and Arabtec Holdings, while Kuwait declined 0.2%. Further, Abu Dhabi dropped 0.1%, despite rise in Abu Dhabi Commercial Bank. Meanwhile, Oman and Bahrain edged down 0.1% each. However, Qatar rose 0.%, driven by Qatar Islamic Bank and Qatar International Islamic Bank. Asian markets are trading on a mixed note this morning. The Nikkei 225 is trading down 0.7%, as investors are cautious ahead of the corporate earnings season, while the KOSPI is down 0.2%. However, the Hang Seng Index is trading up 0.8%, but the Shanghai Composite Index is trading on a flat note. Brent crude declined 0.% on Tuesday, owing to the rise in US dollar and concerns regarding oversupply of crude oil in the market. The investors brushed aside the larger-than-expected fall in crude oil inventory data by the API. Key crude contracts Brent and WTI ended at US$. (-0.%) and US$.5 (-1.3%), respectively. Saudi commentary Tadawul All Share Index (TASI) lost 35.11 points or 3% to close at,.8. Thirteen of the fifteen sector indices closed lower. The advance decline ratio was 2/95. Trading turnover was around SAR 3.8bn. Saudi economic growth to hit 2% in 2017 IMF: Economic growth in Saudi Arabia, the GCC s biggest economy, is expected to hit percent in 2017, a 0.1 percent increase from the International Monetary Fund s (IMF) April outlook. The agency left its expectation for Saudi GDP growth in 201 unchanged at 1.2 percent in its latest World Economic Outlook report. )Argaam) The projections of IMF suggest that the GDP growth of the Kingdom is set to bottom out in 201 and stage an increase in 2017. Further, the GDP estimates for 2017 have been marginally upgraded suggesting evidence of better build-up of economic activity, which is positive for all asset classes in the Kingdom including equities. Al Rajhi Bank announces SAR0.75 dividend for first half of 201: The Board of Directors of Al Rajhi Bank has recommended the distribution of dividend to the tune of SAR0.75 per share for the first half of 201. (Tadawul) Al Rajhi Bank s dividend of SAR0.75 per share for the first half of 201 is higher than SAR per share dividend declared during the same period last year 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- of the Securities Exchange Act of 193 solely by Rosenblatt Securities, an SEC registered and FINRA-member broker-dealer. 1
SABB s H1 net profit rises 2%: Saudi British Bank (SABB) reported a net profit of SAR 2.3 billion in the first half of 201, a 1.8 percent y-o-y rise attributed to higher total operating income as net special commission income increased. There was also an increase in exchange and trading income, offset by a reduction in fee and commission income and gains on non-trading investments. (Argaam) Mobily said to be in talks on refinancing SAR 8 bln debt: Saudi Arabia s Etihad Etisalat Co. (Mobily) has started talks with creditors on refinancing debt worth SAR 8 billion to get better terms, Bloomberg reported on Tuesday, citing unnamed sources familiar with the matter. (Argaam) Latest Research Saudi Arabian Mining Co- Q2: Earnings below expectations Ma aden s Q2 net profit of SAR132mn (down 51% y-o-y) was below our estimate of SAR19mn and consensus estimate of SAR157mn, on the back of continuing unfavourable pricing environment for its products. Lower product prices were negated by higher sales volume, which led to revenue coming in-line with our estimates (SAR2.5bn, down 15.5% y-o-y; our estimate of SAR2.55bn). The company is implementing cost reduction initiatives to sustain margins in a challenging environment and has been able to reduce its operating expenses and cushion the margin decline. Going forward, we expect gold and aluminium volumes to increase led by production ramp up of new facilities. Moreover, the modest recovery in commodity prices should also support Ma aden s profitability in Q3 201. We will revise our estimates and rating on the company post a discussion with the management. Ma aden s stock price jumped ~28% since our last report in April. Hence, we revise our rating to Neutral (from Overweight earlier) and maintain our target price of SAR35 per share. Click here to download attached English Report Arabian Cement- Q2: Mixed performance Arabian Cement reported a disappointing set of numbers in Q2 with net profit of SAR12.8mn (down 12% y-o-y and down 3.7% q- o-q), missing our estimate (SAR171mn) and consensus estimates (SAR 18mn). While the company s top-line of SAR33mn (-18.% y-o-y) was better than our estimate of SAR351mn, higher than expected cost of goods sold, due to high cost of imported clinker led to gross and operating profits declining 1% y-o-y and were below our estimates. The partial consumption of imported clinker impacted the company s gross margin, which declined by ~830 bps as compared to the previous quarter when the company consumed its own clinker. For now, we reiterate Neutral rating on Arabian Cement with a target price of SAR.5 per share 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 2.5 - - - TASI Petrochem Banks Telecom - - - - -1 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Red Sea Housing 27.87 3. 0.350 9. Al Alamiya Coope 31.98 3.1 0.782 2 Sisco 1.7 3.1 1.980 28.32 Saudi Indl Devt 11.3 2.9 1.373 15.88 Allied Coop Ins 1.35 2.8 3.52 58. Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Maaden 37.2 -.1 3.70 128.99 Emaar Eco City 1.2-3.319 7.89 Natl Agri Dev 22.5-3. 20 23.28 Dallah Healthcare 85.1-31 2.8 Amana Coop Ins 10.8-2.3 1.885 23 TASI Mid Cap (5-10% index weight) Sectors Performance TASI Top Index Movers / Losers (Heavy weight stocks) 3.5 2.5 - - 1 1 - -1 Real Estate Agri -1-2 Company Last Price Chg % Index Imp Value Trd (SAR mn) Savola 33 2.1 3.2 0.8 Riyad Bank 11.2 0.8 1. 0.98 Mobily 29.29 0.8 1.1 2.91 Jabal Omar 3.75 0.3 0.11 Jarir Mktg 11.77 0.9 0.9 0.19 Company Last Price Chg % Index Imp Value Trd (SAR mn) Maaden 37.1 -.1 -.5 128.99 Sabic 83.22-0.9 -.7 515.93 Samba 20.11-1.7-3.5.1 Emaar Eco City 1.1 - - 7.89 Alinma Bk 13.77-1.2-1.8 57.79 TASI Small Cap (<5% index weight) Sectors Performance TASI Volume Leaders 8 2 0-2 - 3 2 1-1 -2-3 - -5 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Alinma Bk 13.77-1.2 0.900 57.79 Dar Al Arkan.89 0. 31.700 219.3 Saudi Kayan.8-0.7 8.33 5.9 Sabic 83.22-0.9.17 515.93 Solidarity Saudi 9.82 5.93 59.80 Allied Coop Ins 1.35 2.8 3.52 58. Maaden 37.1 -.1 3.70 128.99 Emaar Eco City 1.1-3.319 7.89 Al Sagr Coop Ins 1.9 1.8 28 12.0 Malath 1.8 2.3 2.985 9.9 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 Sadafco 152.9 157.00 % 3 Bupa Arabia 20.7 21.80 % 257.721 Saudi Elec 12 150 7.8%.53 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 Saudi Inv Bk 12.0 12.0 1.% 0.880 Safco 10 10.80 1.9% 2.290 Riyad Bank 2. 0 2.% 9.778 Disclosures Please refer to the important disclosures at the back of this report. 3
5-Jul 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 201E 2017E Current 12M (%) Saudi Arabia,7-2.3-3.8 08 181 1,007 15.2 13.9 12. 3.7 Qatar 10,9 0. 7.7 2.1 132.1 5,393 0.2 0.3-1. 3.8 Dubai 3,52-0.3.5 11.9 8 21,39 0.1 2.2 1..3 Abu Dhabi,583-0.1 1.9. 123 15 3,39 0.7 2..3 5.3 Kuw ait 5,371-0.2 0.1 -. 79 1 5,8 0. 0.8 8.5. Oman 5,839-0.1 1.1 17 11 1,11-8.2 1.3. Bahrain 1,13-0.1 -. 18 1. 0.8 9.7 NA NA 0..7 Dubai Activity Trend (Last 10 Days) Dubai Sector Performances Dubai Top Gainers / Losers 0.8 0. Turnover (LHS, AED bn) DFMGI Index (RHS) 3,00 3,550 3,500 3,50 3,00 3,350 3,300 3,250 3,200 1-3 Takaful Emarat Ins 2.77 1.9 1.75 3 Takaful House 1.15. 22.79 2 Aramex 3.2 3.3 1 2 Gulf Navigation 8 1.9 13.31 1 Shuaa Capital 0. 1. 7.35 1 National Cement 3.11-9.9 0 Drake & Scull Intl 7-2.1 23.1 Amlak Finance 1.8 -.72 Arabtec -1.9 59.13 Islamic Arab Ins 2-1.9 1.7 Abu Dhabi Activity Trend (Last 10 Days) Abu Dhabi Sector Performances Abu Dhabi Top Gainers / Losers Turnover (LHS, AED bn) ADSMI Index (RHS) 5,000,500 9.0 7.0 - - 3 Abu Dhabi Aviati 0 9.9 0.200 2 Arkan Building Mat 0.95 5. 2 2 Abu Dhabi Nat Co 1.1 1.187 1 Union Cement 1.15 3. 20 1 Rak Properties 0.1 3. 3.58 - Natl Marine Dredg. - 02-1 Abu Dhabi Natl Ins 1.90-0.17 United Arab Bk 2.0-2.8 0.100 Bank Of Sharjah 1.37-1. 22 Eshraq Propertie 0.77-1.3 18.75 Qatar Activity Trend (Last 10 Days) Qatar Sector Performances Qatar Top Gainers / Losers 2.1 1.8 1.2 0.9 0. 0.3 Turnover (LHS, QAR bn) DSM Index (RHS) 10,800 10,00 10,000 9,00 9,200 1-2 1 1 1 1 1 QIsB 10.90 3.9 0.192 Qatar Intl Is Bk 5.0 Barw a Real Est 35.5 1.9 2 Qatar Electric 22.80 1.7 1 CBQ 0.5 1. 0.08 United Devt Co 19.5-1.8 0.827 Qatar 80-1.1 0.107 QNB 150-0.3 0.13 Disclosures Please refer to the important disclosures at the back of this report.
5-Jul BSE Banks Hotel & Tourism Industries 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 12 10 8 2 0 Turnover (LHS, KWD mn) KWSEIDX Index (RHS) 5,395 5,390 5,385 5,380 5,375 5,370 5,35 5,30 5,355 5,350 - - - - Pamls Agro Produ 108 00 Kuw ait Slaughter 10.7 00 Marine 91 5.8 15 Specialities Group 77 5.5 01 Alrai Media Grp 12 5.2 0.120 3 2 2 1 1 - -1-1 -2 Kuw ait Cable Vision 17.5-12.5 00 Automated Sys 270 -.9 13 Gulf Franchising 29 -.5 07 Kuw ait Natl Cinema 1580-01 Combined Group 50-5.8 07 Oman Activity Trend (Last 10 Days) Oman Sector Performances Oman Top Gainers / Losers 8 0 Turnover (LHS, OMR mn) MSM30 Index (RHS) 5,90 5,920 5,900 5,880 5,80 5,80 5,820 5,800 5,780 5,70 2.5 - - 1 Al Sharqiya Inv 0.1 1. 0.73 1 NBO 0.25 0.8 0.12 1 Raysut Cement 1.375 0.7 91 1 Oman Telecom 1.0 0. 0.211 Ooredoo 0.7 0.39 MSM 30 Bank Industry Al-Anw ar Ceramic 0.233 -.9 0.09 Al Anw ar Holding 0.18-3.1 05 Ominvest 0-1.8 0.121 Gulf Invest Svcs 0.11-1.7 0.180 Renaissance Serv 0.281-1. 95 Bahrain Activity Trend (Last 10 Days) Bahrain Sector Performances Bahrain Top Gainers / Losers 1.8 1. 1. 1.2 0.8 0. 0. 0.2 - Turnover (LHS, BHD mn) BHSEASI Index (RHS) 1,180 1,170 1,10 1,150 1,10 1,130 1,120 1,110 1,100 2 2 1 1 - - - - - -1-1 -1-1 Nass Corp 0.117 2. 0.333 Bahrain Duty Fre 0.825 0. 10 Aluminium Bahrain 0.3 0. 80 Ahli United Bk 0.35-0.8 0.393 Disclosures Please refer to the important disclosures at the back of this report. 5
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