24-Dec Thousands 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 15:00 15:15 29 December 2015 TASI Index 6,992.2 0.66% Turnover (SAR mn) 5,191.7 19% TASI Intra Day Movement Global commentary Research Department research@alrajhi-capital.com Tel:+966 11 211 9370 7,020 7,010 7,000 6,990 6,980 6,970 6,960 6,950 6,940 6,930 6,920 6,910 Intraday TASI Activity Trend (Last 10 Days) 10-8 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 US stock markets marginally declined on Monday, led by energy sector shares due to a drop in oil prices. The Nasdaq Composite and the S&P 500 fell 0.2% each while the Dow Jones slipped 0.1%. European markets fell yesterday, as markets were weighed down by weak commodity prices, particularly oil, coupled with negative cues from Chinese markets. The CAC 40 lost 1% while the DAX declined 0.7%. The markets in UK were closed for Boxing Day holiday. Asian markets are trading higher this morning. The Hang Seng index and the Shanghai Composite are up 0.3% and 0.2% respectively while the KOSPI and the Nikkei 225 are trading higher 0.1% each. GCC markets traded mixed on Monday. Qatar advanced 0.9%, led by Gulf International and Industries Qatar while Bahrain rose 0.4%. Abu Dhabi edged up 0.1%, supported by Etisalat. On the other hand, Dubai fell 1.3%, dominated by real estate sector shares while Kuwait slid 0.3%. However, Oman ended the session flat. Brent crude oil prices fell 3.4% on Monday, dragged down by worries over global oil glut and weak demand. Key crude contracts Brent and WTI ended at US$ 36.62 (-3.4%) and US$ 36.81 (-3.4%) respectively. Regional Indices Close 1D% WTD% YTD% KSA (TASI) 6,992 0.7 0.7-16.1 Qatar (DSM) 10,398 0.9 1.4-15.4 Kuw ait (KSE) 5,628-0.3 0.2-13.9 Abu Dhabi (ADSM) 4,252 0.1 0.2-6.1 Dubai (DFM) 3,119-1.3-0.6-17.3 Oman (MSM30) 5,435 0.3-14.3 Bahrain (BSE) 1,204 0.4 0.5-15.6 MSCI GCC 457 0.5 0.7-16.0 Major Commodities / Currencies Close 1D % WTD % YTD % Gold Spot $/Oz 1,072 0.2-0.4-9.5 Silver Spot $/Oz 13.99 0.4-2.7-10.9 Crude Oil (Brent) 36.66 0.1-3.2-4 OPEC Basket 32.14 2.9 1.6-38.2 Euro 1.10 0.1-9.3 USD Index 97.89-0.1 8.4 JPY 120.330-0.4 Major Global Indices Close 1D % WTD % YTD % DJ Industrial 17,528-0.1-0.1-1.7 S&P 500 2,057-0.2-0.2-0.1 Nikkei 225 18,970 0.5 1.1 8.7 Hang seng 21,989 0.3-0.7-6.8 FTSE 100 6,255 0.2-4.7 CAC 40 4,618 - - 8.1 MSCI World 1,670-0.2-0.2-2.3 MSCI EM 800-0.5-0.5-16.3 Interest Rates 1M 3M 12M 3M Chg 1Y LIBOR (USD) 0.42 0.60 1.15 0.35 SAIBOR 1.23 1.51 1.75 0.65 EIBOR 0.67 5 1.47 0.38 Data Sources: Bloomberg Updated as of 29/Dec/2015 7:51 AM TASI rose 0.67 %, to close at 6,992 Major News Tadawul All Share Index (TASI) advanced 46.19 points or 0.67% to close at 6,992.19. Ten of the fifteen sector indices closed higher. The advance decline ratio was 100/60. Trading turnover was around SAR 5.19 bn. Among the heavyweight sectors, Banks rose 8%, Telecom gained 0.36% while Petrochemical Industries added 0.19%. Among other sectors, Energy & Utilities jumped 9.84%, Media & Publishing rose 4.89% while Industrial Investment advanced 1.76%. Saudi Arabia cuts spending by 14% in 2016 budget: Saudi Arabia, hit by low oil prices, plans to slash spending in 2016 by 14 percent to SAR 840 billion, the finance ministry said on Monday. Next year s spending will be cut by SAR 135 billion, compared with expenditures in 2015. The kingdom is expecting to post a SAR 326 billion deficit, as revenues are estimated to reach SAR 514 billion. (Argaam) Saudi Arabia raises domestic energy prices: Saudi Arabian Cabinet endorsed on Monday changes to domestic energy prices, which included a rise in fuel prices. Accordingly, the kingdom raised the price of gas to $1.25 per million British thermal units (mmbtu), ethane to $1.75 per mmbtu, kerosene to $25.70 per barrel. 91 octane gasoline price was raised to SAR 0.75 per litre, while 95 octane gasoline price was increased to SAR 0.90 per litre. (Mubasher) 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
Cement Industries Building Retail Energy Transport Multi invt Hotels Media TASI Large Cap (>10% Index weight) Sectors Performance TASI Top Gainers / Losers -1 TASI Petrochem Banks Telecom -1-2 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Saudi Elec 16.70 9.9 4.206 68.88 Saudi Enaya Coop 15.84 9.6 0.816 12.38 National Gas & Ind 26.80 9.6 1.398 37.13 Saudi Res and Mktg 58.19 7.5 3.201 177.34 Saudi Printing & Pkg 27.39 5.6 6.745 178.92 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Al Alamiya Coope 59.0-9.6 1.560 95.42 Saudi Cem 67.5-3.5 0.246 16.80 Makkah Const 92.2-2.3 65 6.09 Al Sagr Coop Ins 28.9-2.2 0.541 16.03 Kingdom Hold 16.4-1.7 0.572 9.39 TASI Mid Cap (5-10% index weight) Sectors Performance TASI Top Index Movers / Losers (Heavy weight stocks) -1-1 Real Estate Agri -1-2 Company Last Price Chg % Index Imp Value Trd (SAR mn) Saudi Elec 16.70 9.9 1 4.21 Al Rajhi Bk 52.81 1.7 10.7 3.05 Banq Saudi Fr 27.06 2.6 4.5 0.13 Maaden 35.70 2.7 3.8 3.58 Sabic 81.75 0.5 2.8 6.75 Company Last Price Chg % Index Imp Value Trd (SAR mn) Saudi Cem 67.54-3.5-3.3 16.80 Makkah Const 92.19-2.3-2.4 6.09 Sabb 23.28-1.2-1.3 6.73 Almarai 80.37-0.7-1.1 14.96 Al Tayyar 71.98-1.2-1.1 132.81 TASI Small Cap (<5% index weight) Sectors Performance TASI Volume Leaders 40 35 30 25 20 15 10 5 0-5 -10 7 6 5 4 3 2 1-1 -2-3 -4 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Alinma Bk 14.49 1.2 66.930 965.99 Dar Al Arkan 6.12 1.3 24.345 148.73 Emaar Eco City 13.09 2.1 14.346 190.27 Petro Rabigh 13.00 5.5 12.432 162.13 Saudi Kayan 7.26 0.1 8.723 63.43 Sabic 81.75 0.5 6.751 551.76 Saudi Printing & Pkg 27.39 5.6 6.745 178.92 Etihad Atheeb 5.44-1.3 6.406 34.76 Know Econ City 15.46 4.963 76.51 Saudi Elec 16.70 9.9 4.206 68.88 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 Jazan Devt 16.83 17.30 2.8% 25.875 Saudi Res and Mktg 58.19 61.75 6.1% 177.343 Saudi Transport 71.98 78.00 8.4% 44.113 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 Tabuk Cement 10 14.95 0.3% 4.323 Al Jouf 35.35 35.20 0.4% 5.627 Sipchem 15.63 15.55 0.5% 12.219 Disclosures Please refer to the important disclosures at the back of this report. 2
24-Dec 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 2014 Current 2015E Current 12M (%) Saudi Arabia 6,992 0.7-3.4-16.1 427 238 1,384 13.7 15.8 11.5 1.7 3.6 Qatar 10,398 0.9 3.0-15.4 127 58 12.4 10.8 11.1 1.6 4.9 Dubai 3,119-1.3-2.6-17.3 74 193 55 12.7 12.3 1 1.1 3.8 Abu Dhabi 4,252 0.1 0.4-6.1 110 49 23 9.3 11.2 8.6 1.2 5.8 Kuw ait 5,628-0.3-3.0-13.9 86 114 31 NA 15.5 NA 4.6 Oman 5,435-14.3 16 13 9 9.9 9.9 9.5 1.2 4.8 Bahrain 1,204 0.4-2.3-15.6 19 4.1 1.2 NA 7.8 NA 0.8 5.7 Dubai Activity Trend (Last 10 Days) Dubai Sector Performances Dubai Top Gainers / Losers 0.8 0.4 Turnover (LHS, AED bn) DFMGI Index (RHS) 3,200 3,150 3,100 3,050 3,000 2,950 2,900 2,850 2,800 2,750-1 Tabreed 1.22 10.9 15.80 Gulf Navigation 0.60 4.3 14.29 Shuaa Capital 0.38 0.8 4.51 Aramex 3.12 0.7 0.25 Du 8 0.4 1.17 1-1 -2-3 Mashreq Bk 80-9.1 0 Ajman Bank 8-4.6 4 Damac Properties 2.31-3.8 1.67 DFM 1.18-3.3 5.26 Arabtec 1.23-3.2 52.85 Abu Dhabi Activity Trend (Last 10 Days) Abu Dhabi Sector Performances Abu Dhabi Top Gainers / Losers 1.5 0.5 Turnover (LHS, AED bn) ADSMI Index (RHS) 4,500 4,000 3,500 4.0 3.0 - -3.0 7 Comm Bk Intl 1.85 14.9 91 6 Investbank 6 14.4 05 5 Sharjah Cement 9 9.0 04 4 Abu Dhabi Nat Hotels 2.87 6.3 25 3 Foodco Holding 4.00 5.3 0.497 2 1-1 -2-3 AD Nat (TAQA) 0.45-6.3 0.243 RAK Cement 0.89-4.3 45 Gulf Pharma Ind 2.50-3.9 0.203 Methaq Takaful 0.60-3.2 4.423 ADIsB 3.81-2.3 0.454 Qatar Activity Trend (Last 10 Days) Qatar Sector Performances Qatar Top Gainers / Losers 2.4 2.1 1.8 1.5 1.2 0.9 0.6 0.3 Turnover (LHS, QAR bn) DSM Index (RHS) 10,800 10,400 10,000 9,600 9,200 1 1 8.0 6.0 4.0 1 Aamal Co 13.27 3.8 0.301 Qatar Electric 218.00 3.2 34 Qatar 87.00 3.0 42 Vodafone Qatar 12.77 2.6 63-1 Al Meera Consumer 224.50 2.1 19-2 -3-3 -4 Qatar Navigation 94.60-0.4 79 Nakilat 23.16-0.4 0.234 Disclosures Please refer to the important disclosures at the back of this report. 3
10-Dec 13-Dec 24-Dec BSE Banks Hotel & Tourism Industries KSE Technology Investment Industrial Real estate Bank Fin. Parallel Telecom Consumer Basic material Oil&Gas Healthcare Thousands Kuwait Activity Trend (Last 10 Days) Kuwait Sector Performances Kuwait Top Gainers / Losers 18 16 14 12 10 8 6 4 2 0 Turnover (LHS, KWD mn) KWSEIDX Index (RHS) 5,660 5,640 5,620 5,600 5,580 5,560 5,540 5,520 6.0 4.0-1 1 Securities Group 110 1 00 City Group 405 6.6 07 Housing Finance 33 6.5 1.888 Hayat Communication 46 5.8 00 Kuw ait Utd Poultry 186 5.7 11-1 -2-3 Credit Rating & Coll 44.5-10.1 04 Yiaco Medical Co 140-6.7 09 Alrai Media Grp 144-6.5 00 #N/A 29.5-6.4 #VALUE! GFH 38.5-6.1 32.557 Oman Activity Trend (Last 10 Days) Oman Sector Performances Oman Top Gainers / Losers 52 48 44 40 36 32 28 24 20 16 12 8 4 0 Turnover (LHS, OMR mn) MSM30 Index (RHS) 5,460 5,440 5,420 5,400 5,380 5,360 5,340 5,320 5,300-0.5 - -1.5-2.5 MSM 30 Bank Industry Al Sharqiya Inv 95 2.2 39 Galfar Engineering 73 1.4 0.375 Ooredoo 0.724 0.6 68 Ominvest 0.436 0.5 0.849 NBO 0.267 0.4 90-1 -1-14.0-16.0-18.0-2 Al Anw ar Holding 0.165-2.4 78 Bank Sohar 0.157-1.9 41 Oman Invest &Fin 0.177-1.7 51 Bank Nizw a 71-1.4 1.599 Global Fin Inves 0.111-0.9 2.621 Bahrain Activity Trend (Last 10 Days) Bahrain Sector Performances Bahrain Top Gainers / Losers 1.4 1.2 0.8 0.6 0.4 0.2 - Turnover (LHS, BHD mn) BHSEASI Index (RHS) 1,220 1,215 1,210 1,205 1,200 1,195 1,190 1,185 1,180 1,175 1.5 0.5-0.5 - -1.5-2.5-1 -2-3 Khaleeji Com Bk 67 6.4 2.171 Bahrain Islamic Bk 0.140 4.5 30 Bahrain Comm Fac 0.720 2.9 03 Ahli United Bk 0.690 1.5 0.343 BBK 0.432 0.5 34 Trafco Group 0.240 0.374 Ithmaar Bank 0.140-3.5 83 Aluminium Bahrain 0.366-0.5 33 Disclosures Please refer to the important disclosures at the back of this report. 4
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"Neutral": We expect the share price to settle at a level between 10% below the current share price and 10% above the current share price on a 12 month time horizon. "Underweight": Our target price is more than 10% below the current share price, and we expect the share price to reach the target on a 12 month time horizon. "Target price": We estimate target value per share for every stock we cover. This is normally based on widely accepted methods appropriate to the stock or sector under consideration, e.g. DCF (discounted cash flow) or SoTP (sum of the parts) analysis. Please note that the achievement of any price target may be impeded by general market and economic trends and other external factors, or if a company s profits or operating performance exceed or fall short of our expectations. Contact us Pritish Devassy, CFA Senior Research Analyst Tel : +966 1 211 9370 Email: devassyp@alrajhi-capital.com Al Rajhi Capital Research Department Head Office, King Fahad Road P.O. 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