© All rights reserved
Daily Report
1
Major Economic News
• Saudi Arabia’s Balance of Trade data came at a surplus of SAR 72.7 ($19.38 billion) this morning at 9:00am at an almost 21% Y/Y increase as a result of soaring oil prices that continue to boost exports. (Source: Trading Economics) Major Corporate News
• Saudi telecom provider stc received a non-binding offer from the Public Investment Fund (PIF) to acquire 51% of stc’s fully-owned subsidiary, Telecommunications Towers Co. (TAWAL). After excluding debts and cash, stc will maintain a 49% stake in TAWAL that is valued at SAR 21.94 billion ($5.85 billion). (Source: Argaam)
• Arabian Pipes Co. won today, Oct. 24, a supply contract worth around SAR 22 million from Saudi Aramco. Under the contract, Arabian Pipes will supply steel pipes to Saudi Aramco made its own factories over a period of six month. (Source: Argaam)
• Yanbu Cement Co. completed on Oct. 24, the scheduled periodic maintenance for the fifth production line, in tandem with the start of on-site operation. (Source: Argaam)
• The Saudi Public Transport Co. (SAPTCO) received on Oct. 24, a notification from Qassim Municipality on awarding a public bus transport project for SAR 115mn (inclusive of a 15% value-added tax) in Buraydah and Unaizah governorates. The five-year deal does not have any related parties, the statement noted. (Source: Argaam)
Top Gainers
Company Price Change%
Top Losers
Company Price Change%
Saudi Stock Exchange
Index Closing High Low Daily
Change% YTD % TASI
NomuC
12,075 12,075 11,928 0.6 7.03
19,780 20,017 19,717 -1.12 -23.85
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 PM0.0 1.0 2.0 3.0 4.0
11,900 11,950 12,000 12,050 12,100
*Source: Argaam (Excluding Aramco)
TASI movement during session
19.8 2.5 2.2 27.1
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 September (bn)
11,930 11,711 11,610 5.23
Market Statistics
Value Traded
(SAR bn) Volumes
(mn shares) No. of Trades (‘000) Current Week
Previous week
11.8 277.9 611.00
24.1 629.4 1,392.60
Top Weighted Companies
Company Price Change%
SADAFCO 221.00 10.0
ENAYA 24.18 4.7
ACWA POWER 183.20 4.3
SABB 42.20 4.2
DAR ALARKAN 17.24 3.5
SAUDI KAYAN 13.80 -3.8
AMIANTIT 35.85 -2.7
JOUF CEMENT 11.42 -2.6
NCLE 60.20 -2.4
TASNEE 13.80 -2.4
Al Rajhi 88.10 0.7
Saudi Aramco 36.50 0.0
SNB 65.90 0.0
SABIC 94.00 0.3
STC 39.40 -0.3
6,160 0.0 2.1 14.2
7,181 0.2 6.4 13.2
6,631 0.2 7.9 22.5
3,726 -1.1 5.0 44.6
4,842 -0.1 3.2 High
5,018 -0.8 8.5 Neg
4,103 -0.8 2.6 High
24,475 0.3 8.0 26.9
8,125 -0.9 0.7 22.6
10,200 -0.6 2.6 28.8
5,016 1.3 6.1 45.3
9,943 -1.4 9.9 48.4
3,542 -1.3 2.7 Neg
13,566 0.8 7.4 20.0
8,046 1.4 9.6 8.8
5,765 1.8 5.3 Neg
6,894 -0.3 1.4 18.2
8,493 3.6 8.7 16.8
4,235 0.0 -0.1 23.4
3,169 1.0 6.9 High
38,367 2.1 9.3 37.0
Earnings update (Net Profit) (SAR mn)
Company Q3-22 Q3-21 Y/Y % Q2-22 Q/Q %
Bank AlJazira 232.7 204.5 13.8 257.8 -9.7
ANB 921.0 665.0 38.5 708.0 30.1
Eastern Cement 19.0 38.0 -50.0 43.0 -55.8
Bank AlBilad 540.6 449.7 20.2 511.0 5.8
Market Analysis
• The Saudi Stock Exchange increased 0.6% to 12,075.3 on Monday. The value traded stood at SAR 6.6bn (Up 26.0% over the previous day), while the advance-decline ratio stood at 90/112. The parallel market index declined 1.1% to 19,780.4 points. The value traded stood at SAR 66.8mn (up 198%
over the previous day). Most sectors in the main market ended in the green.
Utilities and Insurance (up 3.6% and 2.1%; respectively) advanced the most;
Health Care Equipment and Pharma (down 1.4% and 1.3%, respectively) led the laggards.
© All rights reserved
25 October 2022
Daily Report
2
Regional and International Markets
• Among other regional markets, only Egypt ended the previous trading session at an increase (0.9%). All other markets closed at a decline with Kuwait and Oman declining the most by almost 1.0%.
• European natural gas prices have dropped below €100 per megawatt hour for the first time since Russia slashed supplies this summer, with warm weather and close-to-full gas storage easing concerns over winter shortages.
(Source: FT.com)
• Investors worldwide issued a skeptical verdict on Xi Jinping’s third term in office, selling shares in Chinese companies after the country’s leader wrapped up a Communist party congress that signaled a shift in focus from the economy to security. The sell-off began on Monday morning in Asia, where Hong Kong’s Hang Seng Tech index fell 9.7 per cent, a one-day move that matched its largest ever drop. (Source: FT.com)
• Gilts and sterling rallied on Monday following Boris Johnson’s exit from the race to become the UK’s next prime minister, as investors bet that his rivals were more likely to stick with the economic policies that have calmed markets in recent days. The 10-year gilt yield sank 0.24 percentage points to trade at 3.81 per cent early on Monday. (Source: Ft.com)
• US stocks rose on Monday as investors prepare for a busy earnings week for blue-chip technology groups, whose results will be used as a barometer for the health of the consumer economy. (Source: FT.com)
Forex / Currency
Currency 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 October 24, 2022
*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
3,377 -0.6 1.1 5.7 10.4
10,068 -0.5 3.3 18.6 20.5
8,061 -1.0 1.4 5.5 20.5
12,499 -0.8 -1.5 7.5 13.7
4,374 -1.0 -3.4 5.9 11.2
1,864 -0.1 -1.0 3.7 4.8
10,354 0.9 5.4 -13.4 6.8
31,477 1.3 9.6 -13.4 18.0 11,430 1.1 4.2 -30.0 23.5 3,797 1.2 5.9 -20.3 18.7
7,014 0.6 1.7 -5.0 13.6
12,931 1.6 6.7 -18.6 12.6 6,131 1.6 6.4 -14.3 12.9
26,975 0.3 4.0 -6.3 27.3
2,064 1.0 5.4 -45.5 3.4
15,181 -6.4 -11.9 -35.1 5.8
2,236 1.0 3.7 -24.9 9.6
2,978 -2.0 -1.5 -18.2 13.1
6,779 1.5 4.7 -8.9 13.8
59,832 0.9 4.2 2.7 22.1
843 -2.6 -3.8 -31.6 9.4
2,493 1.2 4.8 -22.9 16.2
94.27 0.0 -4.2 19.1
93.26 -0.3 6.0 17.6
84.58 -0.6 6.4 9.9
5.20 4.8 -23.2 40.8
1,649.78 -0.5 -0.7 -9.1
19.23 -1.0 1.1 -16.5
757.00 -0.7 -2.4 -47.0
726.50 -4.7 -4.7 5.9
838.75 -1.4 -9.0 7.7
681.50 -0.4 0.6 24.9
18.13 -1.4 2.5 -0.7
3,524.00 0.7 -4.5 4.7
112.01 0.0 -0.1 17.1
0.99 0.1 0.7 -13.2
148.91 0.9 2.9 29.4
1.13 -0.2 1.0 -16.7
7.33 1.3 2.6 15.2
82.69 0.0 1.6 11.2
3.67 0.0 0.0 0.0
3.68 0.0 0.0 0.2
0.31 -0.2 0.1 2.6
0.39 0.0 0.0 0.0
0.38 0.0 -0.1 0.0
19.68 0.3 0.7 25.2
4.75 0.8 106.3 405.0
5.43 15.0 131.3 452.5
5.58 18.0 101.4 459.8
6.02 1.9 97.8 496.0
4.36 0.0 60.4 414.9
4.04 -4.9 47.8 367.2
Corporate Calendar
Date Company Event
25th Oct MEPCO Cash Dividend Distribution 30th Oct ARDCO Cash Dividend Distribution
10th Nov SISCO EGM
10th Nov MOBI EGM
13th Nov DERAYAH REIT Cash Dividend Distribution 14th Nov SULAIMAN ALHABIB Cash Dividend Distribution
Daily Technical Outlook
© All rights reserved
3
Technical observations
Index TASI
Ticker SASEIDX Index
Last Close 12,075
Short-term view Cautious Buy 52 weeks high/low 13,949 – 10,600
Key price levels
S3 S2 S1 Pivot R1 R2 R3
11,897 11,937 11,968 12,024 12,091 12,235 12,310
Market data
Exchange Market Cap. (SARbn) 11,178.0
Value (SARmn) 6,585.3
Volume (mn) 147.9
Number of Transactions 333,953
Market Breadth 90 : 112
Key statistics
1D return % 0.57%
WTD return % 0.93%
QTD return 5.87%
YTD return 7.03%
ADT vol. 3M* (mn) 155.6
ADT val. 3M (SARmn) 5,969.1
TASI market commentary
• The TASI rose on Monday on the back of buying in index heavyweights like Banks (0.80% D/D) and Materials (0.24% D/D) stocks. At close, the Saudi market ended the day with gains of 0.57%
at 12,075. In terms of activity, total volumes and value traded were ~148mn and ~SAR 6.6bn respectively. The advance-decline ratio came in at 90/112.
Technical outlook
• The TASI gained around 70 points to close the trading session above the 12,050 mark. The index opened gap down and after testing an intraday low near 11,930, rebounded and recouped all its losses and later gained momentum throughout the day, as the bulls were under control.
Moreover, the index developed a bullish engulfing candle on the daily chart, indicating positive signs. Furthermore, the index managed to defend and close above both its 50-day moving average near 11,900 and also the 100-day moving average near 11,940, showing strength.
Meanwhile, the index’s next resistance is near its previous peak of 12,100 level, above which it may change the trajectory on the upside, from the current main downtrend and move higher to test the 12,350 – 12,500 levels. On the flip side, the index has its immediate support near the 12,020 level, followed by the 11,970 level. Traders may buy at the current level, and also if the index dips near 12,020.
Source: Tradingview, Tadawul, AlJazira Capital Source: Bloomberg, Argaam
TASI daily chart
Our view
Unchanged Up
Down 90
112 14 NEUTRAL
CAUTIOUS
PROFIT Booking BEARISH HOLD ACCUMUL
CAUTIOUS BUY
BUY
Market depth
ADT stands for Average Daily Traded *
Market cap SAR11,178bn
D/Y (%) 2.11%
P/B 2.48x
ROE 27.2%
TTM P/E 19.8x
25 October 2022
Daily Technical Outlook
© All rights reserved
4
Code Company Close* Buy range Target Stop loss
4071 Arabian Contracting Services Co. 114.20 113.90-114.20 115.20 113.20
8210 Bupa Arabia For Cooperative Insurance 189.80 189.00-189.80 191.70 187.90
1211 Saudi Arabian Mining Co. 82.00 81.70-82.00 82.80 81.20
2280 Almarai Co. 57.30 57.00-57.30 57.90 56.70
4040 Saudi Public Transport Co. 16.90 16.80-16.92 17.05 16.74
2081 Alkhorayef Water and Power
Technologies Co. 137.00 136.80-137.10 138.20 135.80
*As of 24th October 2022 *Note – Stop loss is based on a intraday basis
SAUDI MARKET - TOP PICKS FOR THE DAY
BUPA ARABIA yesterday penetrated above its previous swing high. Moreover, all technical indicators support this bullish view.
Bupa Arabia For Cooperative Insurance Co. (BUPA ARABIA) Technical observations
Source: Tradingview, AlJazira Capital Source: Tradingview, AlJazira Capital
Arabian Contracting Services Co. (ALARABIA) Technical observations
CHARTS OF THE DAY
ALARABIA yesterday penetrated above its channel trendline resistance. Moreover, all technical indicators look bullish.
Asset Management | Brokerage | Investment Banking | Custody | Advisory
Head Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia، Tel: 011 2256000 - Fax: 011 2256068
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.
The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by Al- Jazira Capital from sources believed to be reliable, but Al-Jazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Al-Jazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Al-Jazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Al-Jazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Al-Jazira Capital. Funds managed by Al-Jazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Al-Jazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Al-Jazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Al-Jazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Al-Jazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations.
