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Daily Report
1
Major Economic News
• Small and Medium Enterprises Bank (SME Bank), in coordination with the financing institutions, aims to offer SAR 3.0bn in loans to enterprises in FY23. The bank targets to increase arranged facilities to SAR 10.5bn over the next three years (Source: Argaam)
• Regional Voluntary Carbon Market Co. (RVCMC) sold 2.2mn tons of carbon credits in the largest carbon credit auction held in Nairobi. RVCMC mentioned the clearing price was set at USD 23.5per ton, and that Saudi Aramco, Saudi Electricity Co. and NEOM’s ENOWA bought the largest number of carbon credits. (Source: Argaam)
• An agreement to build an integrated ship fuel supply centre in Yanbu’s King Fahd Industrial Port was signed by the Saudi Ports Authority (Mawani), Alba Nova International, Trafalgar Co. Ltd., and the Ministry of Energy. The new centre, which will cover 393,000 sq.m. will cost more than SAR 2.0bn to build. (Source: Argaam)
Major Corporate News
• Alinma Bank completed the repurchase of 5.0mn treasury shares, to be allocated to the Employees Stock Incentive Shares Plan, at SAR 33.3each, totaling SAR 166.3mn. (Source: Tadawul)
• Bank AlJazira started the offer of SAR-denominated Additional Tier 1 sukuk by way of private placement. The par value of the Sukuk is SAR 1.0mn.
(Source: Tadawul)
• Alkhaleej Training and Education Co. acquired an additional 27% stake in Al Faisaliah Private Schools, bringing its total holding to 87%. The company will pay SAR 30.6mn in return for the additional stake in Jeddah- based Al-Faisaliah Private Schools. (Source: Tadawul)
Market Analysis
• The Saudi Stock Exchange increased 1.0% to 11,533.0. The value traded stood at SAR 7.1bn (up 7.4% over previous day), while the advance- decline ratio stood at 151/62. The parallel market index increased 6.0%
to 24,948.9 points. The value traded stood at SAR 50.9mn (up 11.3%
over previous day). Most sectors in the main market ended in the green.
Food and Beverages and Diversified Financials (up 5.4% and 5.1%, respectively) advanced the most; Telecom and Real Estate (down 0.2%
each) were the only laggards.
Top Gainers
Company Price Change%
Top Losers
Company Price Change%
Saudi Stock Exchange
Index Closing High Low Daily
Change% YTD % TASI
NomuC
11,533 11,542 11,428 1.0 10.1
24,949 24,969 23,407 6.0 28.5
TASI Ratios P/E* (x)
Price-to-Book (x) Dividend Yield (%) Return on Equity (%)
TASI (LHS) Volume Mn (RHS)
Millons
10:00
AM 11:00
AM 12:00
PM 1:00
PM 2:00
PM 3:00
PM 0.0 2.0 4.0 6.0
11,400 11,440 11,480 11,520 11,560
*Source: Argaam (Excluding Aramco)
TASI movement during session
21.7 2.3 2.6 25.1
Index Close Daily
Change% YTD % PE (TTM) Energy
Materials Capital Goods Commercial Service Transportation Consumer Durables Consumer Services Media
Retailing Food & Staples Food & Beverages Healthcare Pharma & Bio Tech Banks
Diversified Financial Insurance Telecom Utilities REITs Real Estate Software & Services Average Index Value
Average
days 5 Average
days 10 Average
days 20 Average value traded for the month (bn)
11,433 11,338 11,276 6.33
Market Statistics
Value Traded
(SAR bn) Volumes
(mn shares) No. of Trades (‘000) Current Week
Previous week
25.4 888.60 1,709.90
31.5 882.50 2,078.20
Top Weighted Companies
Company Price Change%
TECO 1.04 9.5
ALMARAI 64.00 9.4
TADAWUL GROUP 192.80 7.5
ALHAMMADI 61.60 6.6
SAUDI GERMAN HEALT 78.80 5.6
ANAAM HOLDING 25.90 -3.7
SADAFCO 358.80 -3.6
TAKWEEN 10.10 -1.9
ARABIAN DRILLING 160.20 -1.7
AWPT 154.00 -1.7
Saudi Aramco 32.65 1.4
Al Rajhi 74.00 1.1
SNB 37.30 0.8
SABIC 88.60 -0.1
STC 43.05 -0.1
6,124 1.3 12.8 13.8
6,634 0.4 5.5 21.8
7,644 0.4 46.3 21.5
4,321 2.4 25.8 28.4
6,165 0.9 35.7 High
5,263 1.1 24.6 Neg
5,220 2.2 41.5 49.3
24,426 2.2 13.6 25.5
8,317 0.3 15.9 24
10,651 0.7 24.7 22
6,147 5.4 32.5 33.2
11,974 2.6 31.4 High
5,673 2.4 97.4 Neg
11,438 0.9 -0.9 14.3
7,097 5.1 11.6 32.7
7,299 1.2 37.3 High
7,869 -0.2 23.2 17.5
7,488 0.8 4.4 13.9
3,896 0.5 -2.0 30.8
3,363 -0.2 34.5 High
57,272 0.6 59.6 41.5
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15 June 2023
Daily Report
2
Regional and International Markets
• Among other regional markets, Dubai and Abu Dhabi increased 0.1% and 0.4%, respectively. Kuwait and Qatar increased 0.7% each, while Bahrain rose 0.2%. Oman declined 0.2% while Egypt remained flat.
• The Federal Reserve kept interest rates unchanged in the range of 5.00%- 5.25% but signalled in new economic projections that borrowing costs will likely rise by another 50bpsby the end of this year as the US central bank reacted to a stronger-than-expected economy and a slower decline in inflation. Policymakers see the overnight interest rate rising from the current 5.00%-5.25% range to a 5.50%-5.75% range by the end of the year. (Source: Reuters)
• According to EIA, oil inventories in the US increased 7.9mn barrels (prior:
down 0.5mn) to 467.1mn in the week ended June 9. Gasoline inventories rose 2.1mn barrels (prior: up 2.7mn) to 220.9mn, while distillate inventories rose 2.1mn barrels (prior: rose 5.1mn) to 113.9mn. (EIA, Econoday).
• US PPI increased 1.1% Y/Y in May (consensus: rise of 1.6% Y/Y) as compared to increase of 2.3% Y/Y in April. Excluding food and energy PPI increased 2.8% Y/Y (consensus: 2.9% Y/Y) as compared to 3.2% Y/Y in April. (Source: Econoday)
• Oil prices declined 1.5%, after data showed crude stockpiles grew seven times more than expected last week.
• Gold prices edged lower 0.1%, after the US Federal Reserve kept interest rates unchanged, as widely expected, but pointed to more rate hikes down the year.
Forex / Currency
Currency / USD Close Daily
Change% MTD % YTD % Dollar Index
Euro
Japanese Yen Sterling Pound Chinese Yuan Indian Rupee UAE Dirham Qatari Rial Kuwaiti Dinar Omani Rial Bahraini Dinar Egyptian Pound
Data Sources: Tadawul, Bloomberg, Reuters Closes as of June 14, 2023
*EGM: Extra Ordinary Meeting
*OGM: Ordinary General Meeting
Regional Markets
Market Close Daily
Change% MTD % YTD % P/E Dubai (DFM)
Abu Dhabi (ADX) Kuwait (KSE) Qatar (QE) Oman (MSM) Bahrain (BSE) Egypt (EGX30)
Interbank Rates
Region Rate* Daily
Change(bps) MTD (bps) YTD (bps) KSA (SAIBOR 1M)
KSA (SAIBOR 3M) KSA (SAIBOR 6M) KSA (SAIBOR 12M) USD (LIBOR 3M) UAE (EIBOR 3M) International Markets
Index Close Daily
Change% MTD % YTD % P/E Dow Jones
Nasdaq S&P 500 FTSE 100 Germany DAX 30 France CAC 40 Japan Nikkei 225 Russia MOEX Hong Kong Hang Seng South Korea KOSPI China Shanghai Composite Australia ASX 200 India Sensex MSCI EM MSCI World Commodity Markets
Commodity Price Daily
Change% MTD % YTD % Arab Light Crude ($/bbl)
Brent Crude ($/bbl) Texas crude ($/bbl) Natural Gas ($/mmbtu) Gold ($/oz)
Silver ($/oz) Steel ($/ton) Iron Ore (CNY/MT) Wheat ($/bu) Corn ($/bu) Sugar ($/lb) SMP* (EUR/MT)
*SMP: Skimmed Milk Powder
3,717 0.1 3.9 11.7 9
9,393 0.4 -0.1 -8.5 15.6
7,742 0.7 3.3 -4.6 10.9
10,292 0.7 1.3 -3.6 11.8
4,687 -0.2 1.3 -3.5 10.1
1,958 0.2 -0.3 3.3 9
17,873 0.0 2.2 22.4 6.4
33,979 -0.7 3.3 2.5 19.7 15,006 0.7 5.3 37.2 33.1
4,373 0.1 4.6 13.9 20.9
7,603 0.1 2.1 2.0 10.7
16,311 0.5 4.1 17.1 13.3
7,329 0.5 3.2 13.2 12.6
33,502 1.5 8.5 28.4 33.0
2,765 0.3 1.7 28.4 3.6
19,408 -0.6 6.4 -1.9 10.4 2,619 -0.7 1.6 17.1 15.3
3,229 -0.1 0.8 4.5 14.4
7,162 0.3 1.0 1.7 14.6
63,229 0.1 1.0 3.9 23.6
1,015 0.2 5.9 6.1 13.2
2,940 0.3 5.0 12.9 18.5
77.20 3.4 3.3 -8.4
73.20 -1.5 0.7 -14.8
68.27 -1.7 0.3 -14.9
2.34 0.1 3.4 -43.7
1,942.52 -0.1 -1.0 6.5
23.92 1.1 1.8 -0.1
923.00 -0.6 -1.2 24.1
827.50 -1.9 6.3 -3.4
641.25 -1.0 7.9 -20.1
549.25 -0.4 -7.5 -18.2
25.37 2.4 2.5 42.4
2,505.00 0.6 3.5 -9.8
102.95 -0.4 -1.3 -0.6
1.08 0.3 1.3 1.2
140.09 -0.1 0.5 6.8
1.27 0.4 1.8 4.8
7.17 -0.0 0.8 3.6
82.11 -0.3 -0.8 -0.8
3.67 0.0 0.0 0.0
3.65 -0.0 0.0 -0.6
0.31 -0.0 -0.2 0.4
0.39 0.1 0.0 0.0
0.38 0.0 0.0 -0.0
30.89 -0.0 -0.0 24.8
5.66 2.8 8.1 92.8
5.96 1.2 5.9 62.2
5.85 -0.2 1.8 25.1
5.88 1.4 5.8 0.7
5.55 0.0 3.5 78.5
5.14 3.3 -8.0 83.3
Corporate Calendar
Date Company Event
15th Jun Chemanol EGM
15th Jun NORTHERN CEMENT Cash Dividend Distribution 15th Jun SEDCO CAPITAL REIT Cash Dividend Distribution 15th Jun AMAK Cash Dividend Distribution 15th Jun Abdul Aziz Al-Tuwaijri
Trading End of IPO
18h Jun Nayifat EGM
Daily Technical Outlook
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3
Technical observations
Index TASI
Ticker SASEIDX Index
Last Close 11,533
Short-term view Buy
52 weeks high/low 13,949 – 9,931
Key price levels
S3 S2 S1 Pivot R1 R2 R3
11,150 11,275 11,340 11,450 11,600 11,800 11,860
Market data
Exchange Market Cap. (SAR bn) 11,009.3
Value (SAR mn) 7,078.6
Volume (mn) 282.8
Number of Transactions 453,451
Market Breadth 151 : 62
Key statistics
1D return % 1.04%
MTD return % 4.71%
QTD return 8.90%
YTD return 10.06%
ADT vol. 3M* (mn) 196.0
ADT val. 3M (SARmn) 5,763.4
TASI market commentary
• TASI witnessed a rise on Wednesday which was led by index heavyweight Energy (1.30% D/D) and Banks (0.89% D/D) sectors. At close, the Saudi market ended the day with a change of 1.04% at 11,533. In terms of activity, total volumes and value traded were ~283mn and ~SAR 7.1bn respectively. The advance-decline ratio came in at 151/62.
Technical outlook
• TASI closed near 11,533 after gaining 119 points. The index experienced a powerful buying power which enabled it to decisively penetrate the significant resistance level of the prior short- term peak and the 161.8% external Fibonacci retracement of the previous medium-term down leg near 11,450. Currently, TASI is heading toward the medium-term upside target zone that was assigned due to the completed double-bottom pattern between 11,600 – 11,800. Moreover, volume, moving averages, as well as momentum indicators, are showing bullish structures confirming the upside breakout in the price. TASI currently has immediate resistance near 11,600. If penetrated, the next one is expected to lay near 11,800 followed by 11,860. On the other hand, immediate support is seen at around 11,450. If breached, the index would be expected to meet the next support near the 10-day SMA near 11,340 followed by the level of the 20-day SMA near 11,275. Traders are advised to buy as long as the index is maintained above the support level of 11,340.
Source: Tradingview, Aljazira Capital Source: Bloomberg, Argaam
TASI daily chart
Our view
Unchanged UpDown
151 52
11
NEUTRAL
PROFIT Booking BEARISH
CAUTIOUS ACCUMULATE
HOLD CAUTIOUS
BUY BUY
Market depth
*ADT stands for Average Daily Traded
Market cap SAR11,009bn
D/Y (%) 2.61%
P/B 2.31x
ROE 25.1%
TTM P/E 21.7x
15 June 2023
Daily Technical Outlook
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4
ZOUJAJ penetrated the level of the prior peak after bouncing off its 5-day EMA.
Moreover, all the technical indicators show bullish structure.
The National Company For Glass Industries (ZOUJAJ) Technical observations
Source: Tradingview, AlJazira Capital
CHARTS OF THE DAY
BINDAWOOD penetrated the level of the prior peak after bouncing off its 5-day EMA. Moreover, all the technical indicators show bullish structure.
BinDawood Holding Co. (BINDAWOOD) Technical observations
Source: Tradingview, AlJazira Capital
SAUDI MARKET - TOP PICKS FOR THE DAY
Code Company Close* Buy range Target Stop loss
2150 The National Company For Glass Industries 39.15 39.15 - 39.05 39.55 38.75
4161 BinDawood Holding Co. 71.80 71.80 - 71.60 72.50 71.10
1304 Al Yamamah Steel Industries Co. 28.35 28.35 - 28.30 28.65 28.05
3010 Arabian Cement Co. 38.55 38.55 - 38.45 38.95 38.15
4012 Thob Al Aseel Co. 48.15 48.15 - 48.05 48.60 47.65
4290 Alkhaleej Training and Education Co. 25.00 25.00 - 24.95 25.25 24.75
4004 Dallah Healthcare Company 170.00 170.00 - 169.60 171.70 168.30
4013 Dr. Sulaiman Al Habib Medical Services Group 274.00 274.00 - 273.30 276.75 271.25
* As of 14th June 2023 * Note – Stop loss is based on an intraday basis
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D efinitions
Disclaimer
Candlestick: A candlestick (candle) is a type of price chart used to display the high, low, opening, and closing prices of a security for the period under consideration.
Support: This is the price level at which demand is strong enough to avoid any further price decline.
Resistance: This is the price level at which supply is strong enough to stop any further price increase.
Pattern/formation: This is a plot of a security’s price activity over a certain period that can be used to identify potential trends, reversal of trends, price targets, entry and exit points, etc. There are various formations – such as head & shoulders, triangles, flags, etc.
Simple moving average: A simple moving average is formed by computing the average price of a security over a specific number of periods. Moving averages are based on closing prices.
Relative strength index (RSI): RSI is a momentum indicator that compares a security’s price gains to its losses for a predetermined number of periods (generally, 14 periods are used). The RSI attempts to point out how security, in relative terms, is in the overbought/overs old zone.
Moving average convergence/divergence (MACD): MACD is a trading indicator that shows changes in the strength, direction, momentum, and duration of a trend in a stock’s price through a collection of three- time series calculated from historical closing prices.
Fibonacci retracements: These are horizontal lines that indicate the expected areas of support/resistance for a security based on a predetermined price movement. These are usually indicated by Fibonacci ratios of 23.6%, 38.2%, 50.0%, 61.8%, and 100% from that movement.
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