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Crude oil prices also witnessed a pullback rally this week as Brent
closed at USD 34 per barrels levels. Separately, the meeting
between oil ministers of Saudi Arabia and Russia ended as a non-
event for the market.
Their decision to freeze production at record levels along with the
condition that other producers should co-operate, is clearly not
going to improve the supply situation going forward. The first
market reaction to this news was a decline in oil price. Saudi Ara-
bia has repeatedly indicated no interest in cutting oil output; ex-
pectations for future reduction will only lead to disappointments!
Tadawul All Share Index (TASI) started the week on a negative
note but capitalized from the second trading day to register a gain
of 3.9% for the week and close at 5,884 points. The market rally
was aided by recovery in global markets even as Standard &
Poor’s lowered Saudi Arabia’s sovereign rating. S&P cut Saudi
Arabia’s long-term foreign currency rating by two notches from
‘A+’ to ‘A–’.
All the regional indices saw upward momentum during the week.
Qatar reported the highest gain of 5.1% followed by Saudi Arabia
(+3.9%) and Dubai (+3.7%).
Saudi Arabia and Russia agree for oil freeze TASI surges 3.9% to close at 5,884 points
135
31 5 171
0
50
100
150
200
Gainers Losers No change Total No. of
Companies5,355 5,181 6,417 5,625 6,279
5,558
5,6915,740
5,802
5,884
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
14-Feb-16 15-Feb-16 16-Feb-16 17-Feb-16 18-Feb-16
5,300
5,400
5,500
5,600
5,700
5,800
5,900
6,000
Total Turnover (SAR Mn) TASI Close (RHS)
TASI CLOSE & MARKET TURNOVER TRADING STATISTICS
Saudi market breadth was positive with 135 gaining
stocks as against 31losers
“If other producers want to limit or agree to a freeze in terms of additional production
that may have an impact on the market but Saudi Arabia is not prepared to cut
production”
- Mr. Adel al-Jubeir, Saudi Arabian Foreign Minister
Week Ending
Feb 18, 2016
Sau
di S
to
ck M
arket
Weekly U
pd
ate
The sector indices reversed its last week trend with all the 15 sector indices clos-
ing in Green. Index heavyweight Petrochemical industries gained 8.9% and was
the top gaining index. This was followed by Industrial Investment (+6.3%) and
Multi-Investment (+4.8%). Another index heavyweight Banks gained 2.7% during
the week.
Note: Weekly returns are calculated considering Friday to Thursday week. Numbers indicate weekly returns and index closing values.
Banks continue to be the top traded sector by contributing 24.0% to the total
volume and 20.1% to the total value. Petrochemicals stood second with 12.6%
contribution to the volume and 17.7% contribution to the total value.
Index Open Close WTD
(%) YTD (%)
Total Volume
(Mn)
Total Turnover (SAR Mn)
No. of Trades
TASI 5,661 5,884 3.9% -14.9% 1,634 28,856 733,057
Banks & Financial Services 13,411 13,772 2.7% -11.6% 392 5,809 53,227
Petrochemical Industries 3,393 3,696 8.9% -13.5% 206 5,107 65,336
Cement 4,088 4,203 2.8% -7.5% 60 974 26,684
Retail 9,230 9,539 3.4% -24.0% 47 1,431 51,133
Energy & Utilities 4,994 5,197 4.1% -9.2% 7 104 1,876
Agriculture & Food Industries 6,894 7,155 3.8% -21.6% 65 1,385 53,112
Telecom & IT 1,397 1,424 1.9% -12.2% 42 369 10,517
Insurance 960 995 3.7% -20.0% 188 2,853 139,402
Multi-Investment 2,380 2,496 4.8% -24.4% 21 332 14,440
Industrial Investment 5,293 5,626 6.3% -12.5% 83 1,893 60,921
Building & Construction 1,688 1,765 4.6% -23.2% 82 1,045 43,741
Real Estate Development 4,998 5,121 2.5% -14.1% 307 3,395 82,861
Transport 5,832 6,054 3.8% -22.2% 29 855 22,437
Media and Publishing 2,645 2,731 3.3% -21.1% 70 2,125 74,310
Hotel & Tourism 9,464 9,435 -0.3% -43.9% 34 1,180 33,060
GLOBAL INDICES – WEEKLY RETURNS
SAUDI – SECTOR INDICES “All the 15 indices closed the week in Green”
8.1%,
9,4647.9%,
5,972
5.1%,
1,5444.9%,
1,918
4.8%,
16,4134.7%,
7463.6%,
2,863 3.1%,
16,197
5.1%,
9,9673.9%,
5,8843.7%,
3,0933.5%,
4,213
1.2%,
5,419 0.5%,
1,1720.2%,
5,141
DA
X
FT
SE
100
MS
CI
Wor
ld
S&
P 5
00
DJI
A
MS
CI
EM
SSE
Nik
kei
Qa
tar
Sau
di
Du
bai
Ab
u
Dh
ab
i
Om
an
Bah
rain
Ku
wai
t
National Metal Manufacturing and Casting Co. surged 26.2% for the week and was the
largest gainer. It closed at SAR 23.95 and has curtailed its YTD loss to 6.5% . The other top
gainers were Saudi Industrial Export Co.(+13.7%) and Saudi International Petrochemical
Co. (+19.7%).
Saudi Enaya Cooperative Insurance Co. declined 15.0% and led the losers table. This was
followed by Saudi Chemical Co. (-7.3%) and National Medical Care Co. (-6.5%)
TOP GAINERS TOP LOSERS
Company Close WTD
(%) YTD (%)
Value Traded
(SAR Mn)
Maadaniyah 23.95 26.2% -6.5% 154
SIECO 45.01 24.8% 13.7% 378
Sipchem 12.35 19.7% -11.9% 91
YANSAB 31.73 19.2% -2.1% 151
Dur 24.35 18.8% -9.0% 43
SABIC, the gulf’s largest company gained 10.56% during the week and clocked a turnover of SAR 3.69bn. SABIC has lost 7.91% during the
year and closed at SAR 70.45.
Top Gainer
National Metal
Manufacturing and
Casting Co.
(+26.2%)
Top Loser
Saudi Enaya
Cooperative
Insurance Co.
(-15.0%)
THE LIQUIDITY PLAY (VOLUME – VALUE TREND)
Week 0 Week 1 Week 2 Week 3
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
18/F
eb17
/Feb
16/F
eb15
/Feb
14/F
eb
11/F
eb10
/Feb
09/F
eb08
/Feb
07/F
eb
04/F
eb03
/Feb
02/F
eb01
/Feb
31/J
an
28/J
an27
/Jan
26/J
an25
/Jan
24/J
an
0
50
100
150
200
250
300
350
400
450
18/F
eb17
/Feb
16/F
eb15
/Feb
14/F
eb
11/F
eb10
/Feb
09/F
eb08
/Feb
07/F
eb
04/F
eb03
/Feb
02/F
eb01
/Feb
31/J
an
28/J
an27
/Jan
26/J
an25
/Jan
24/J
an
Market activity marginally increased during the week with 1,634mn shares (1,576mn and 1,729mn shares in the preceding two weeks)
being traded. The turnover also increased to SAR 28.9bn vis-a-vis SAR 28.5bn and SAR 30.6bn in the preceding two weeks.
TASI WEEKLY TURNOVER TREND (SAR MN) TASI WEEKLY VOLUME TREND (MN)
Company Close WTD
(%) YTD (%)
Value Traded
(SAR Mn)
Enaya 9.52 -15.0% -42.7% 117
Chemical 41.97 -7.3% -26.8% 85
Care 41.55 -6.5% -25.1% 260
Almarai 62.31 -6.3% -20.4% 119
AlAbdullatif 16.3 -6.1% -45.6% 168
THIS WEEK’S WINNERS & LOSERS
Week 0 Week 1 Week 2 Week 3
Saudi Arabian Monetary Agency (SAMA) has reportedly eased restrictions on bank lending in an attempt to stimulate
growth. SAMA has told banks that they can lend up to 90% of their deposits, up from the limit of 85%.
Saudi Arabia reportedly plans to start issuing floating-rate bonds to encourage local banks to buy its debt. Since last
August, the government has been issuing SAR 20bn of domestic bonds to banks every month to finance the deficit.
Al Tayyar Travel Group said it has acquired a 33.3% in Jumia Middle East which owns the online e-commerce website
Wadi.com, for EUR 30mn.
Jabal Omar Development Co.’s board of directors recommended converting the firm into a holding company that
would be licensed to acquire current and future projects, adding that the conversion would be part of a new ten-year
strategy. Separately, Jabal Omar Development Co. signed an agreement with Saudi Arabia’s finance ministry to post-
pone payments on a SAR 3bn loan, the developer said.
Southern Province Cement Co. expects to complete the second production line at Bisha cement plant by June 30, the
company said.
Al Hokair Group for Tourism & Development Co. has awarded a SAR 25mn contract to build the Park Inn Jubail hotel to
Saudi Arabia-based Omar Khalil Arnaout Contracting Establishment.
National Agricultural Development Co. (NADEC) has completed the first phase of its seventh cattle farm in the Saudi
village of Haradh, and is expected to reach full capacity within Q1-2016.
Saudi Kayan Petrochemical Co. has awarded Taiwan's CTCI Corp. a contract worth USD 94.5mn to build a new furnace
cracker at its complex in Jubail Industrial City.
Saudi Arabian Monetary Agency has approved Arabia Insurance Cooperative Co.’s request to cut its capital by SAR
135mn to SAR 265mn.
Saudi Electricity Co. is reportedly aiming to cut capital expenses by up to 25% over the next five years as part of the
company’s strategic turnaround plan. Separately, Saudi Electricity Co. board had approved expanding the amount of its
planned U.S. dollar-denominated sukuk programme to USD 2.5bn from USD 1.5bn.
Saudi Marketing Co.’s (Farm Superstores) plans to raise its capital by 28.57% to SAR 450mn through the distribution of
bonus shares.
Moody’s Investors Service downgraded Dar Al Arkan Real Estate Development Co’s corporate credit rating to B1 from
BA3, with negative outlook.
Saudi Arabia’s government-owned fund Sanabil Investments has acquired a 20% stake in Ebrahim Mohammed Almana
& Brothers Co, the owner of the Almana General Hospitals.
SAUDI ARABIA – CORPORATE & ECONOMIC NEWS
Standard & Poor's downgraded Bahrain rating to BB
from BBB-. Oman's credit rating was lowered two
steps to BBB- from BBB+. S&P has affirmed its 'AA/A
-1+' long- and short-term foreign and local currency
sovereign credit ratings on Kuwait.
Bahrain has upsized and launched a USD 750mn, two
-part bond at the tighter end of its previous rate
guidance.
Bahrain has appointed SSH as Contract Manager and
Site Supervision consultant for the construction of
the Primary Infrastructure and Bridge Construction
on Al Madina Al Shamaliya Islands.
Kuwait and Egypt have signed four agreements that
will promote cooperation in different domains.
Kuwait National Petroleum Company has launched
its first units to produce biofuel in the Al-Ahmadi
refinery.
Oman’s Muriya Tourism Development Company
plans to invest USD 500mn for completing high-end
hotels and other facilities in Salalah and Jebel Sifah.
Marafeq Qatar seeks EPC bids for Phase 1 DCP at
Lusail. The project is part of larger district cooling
network length of 168 kms.
Centrica Plc and Qatar Petroleum are reportedly
planning to sell out of their natural gas venture in
Canada
Dubai’s DAMAC Properties has purchased land in
Dubai for AED 1.26bn.
US industrial production for January rose by 0.9%.
Ingram Micro Inc., a computer, networking and soft-
ware distributor, agreed to be acquired by China’s
Tianjin Tianhai Investment Co. for an equity value of
USD 6bn.
Royal Dutch Shell completed the deal to buy British
rival BG Group for USD 53bn, forming one of the
world’s top liquefied natural gas firms.
Economies of 19 Eurozone countries expanded by
1.5% in 2015. In the last quarter of 2015, they grew
0.3%, compared with the previous three months.
HSBC has announced that it will keep its headquar-
ters in London. Concerns about stricter UK regula-
tions led the bank to launch a review into whether to
move elsewhere.
Japan’s SoftBank Group Corp. will buy back its 14.2%
stock at USD 4.4bn, using cash holdings and the pro-
ceeds of asset sales.
Mitsubishi Aircraft has signed a letter of intent with
U.S. ‘s Aerolease Aviation LLC for 10 planes on a firm
basis, with an option to purchase 10 more costing
around USD 946mn. Separately, ATR has won USD
130mn order from Singapore’s Avation Plc.
OTHER GULF NEWS GLOBAL ECONOMIC NEWS
Source: Haver Analytics, Economist.com
TREND IN CHINESE GDP GROWTH (% CHANGE OVER PREVIOUS YEAR)
Source: Chinese General Administration of Customs, Bloomberg
TREND IN CHINA’S MONTHLY NET FUEL EXPORTS
CH
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EK
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