© All rights reserved
15 March 2023
Daily Report
1
Major Economic News
• The Public Investment Fund (PIF) signed four memorandums of understanding (MoUs) with local entities today, March 14, on the sidelines of the inaugural PIF Private Sector Forum in Riyadh. The agreements seek to strengthen cooperation through a variety of initiatives aimed at assisting Saudi Arabia’s private sector in a variety of strategic sectors.
Source: Argaam)
• Saudi Airlines recently announced that it will purchase up to 49 Boeing 787 Dreamliner planes to expand its long-haul fleet. The national airline is planning to buy 39 Boeing 787 planes, with the option of buying ten more.
(Source: Argaam)
• Riyadh Air, PIF’s new world-class airline announced a multibillion-dollar order for up to 72 Boeing 787-9 Dreamliner planes. (Source: Argaam) Major Corporate News
• Methanol Chemicals Co. (Chemanol) resumed operations at its methanol and amine plants as of March 14, after being closed for a 17-day periodic maintenance. (Source: Argaam)
• Herfy Food Services Co. opened the first two Herfy restaurants in Abuja, Nigeria as a franchise. The move is in line with EatRite Food Services Co.’s plan to open 50 Herfy restaurants in Nigeria within the next ten years.
(Source: Argaam)
Top Gainers
Company Price Change%
Top Losers
Company Price Change%
Saudi Stock Exchange
Index Closing High Low Daily
Change% YTD % TASI
NomuC
10,207 10,327 10,207 -1.0 -2.6
18,965 18,971 18,754 -0.4 -2.3
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 0.5 1.0 1.5 2.0
10,200 10,250 10,300 10,350
*Source: Argaam (Excluding Aramco)
TASI movement during session
17.5 2.1 2.9 27
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)
10,354 10,357 10,331 4.21
Market Statistics
Value Traded
(SAR bn) Volumes
(mn shares) No. of Trades (‘000) Current Week
Previous week
12.7 450.00 986.70
20.2 749.20 1,523.30
Top Weighted Companies
Company Price Change%
AMIANTIT 39.90 9.9
NADEC 25.65 6.2
TAWUNIYA 103.20 4.7
MIS 107.20 3.1
ELM 409.00 3.0
THIMAR 31.70 -7.9
TAKWEEN 8.51 -5.0
WAFRAH 31.40 -4.1
ALSAGR INSURANCE 14.36 -3.9
ALHOKAIR GROUP 23.96 -3.4
Saudi Aramco 32.50 -1.4
Al Rajhi 71.80 -1.1
SNB 43.95 -1.5
SABIC 89.00 -2.7
STC 37.80 1.2
5,510 -1.3 1.5 11.8
6,247 -1.1 -0.7 12.4
5,777 -0.1 10.5 19.6
3,629 0.8 7.9 32.2
5,101 -0.9 12.3 High
4,242 -0.8 0.4 Neg
4,387 -0.3 18.9 High
22,116 -0.1 2.9 23.3
7,189 -0.1 0.2 22.1
9,283 0.3 8.7 19.9
4,795 -0.9 3.3 40
9,647 -0.6 5.9 48
3,061 -2.4 6.5 Neg
10,323 -1.4 -10.6 14.2
5,404 -0.8 -15.1 6.4
5,917 -0.2 11.3 High
6,796 1.3 6.4 16.7
6,595 -1.7 -8.1 13.7
3,793 0.0 -4.6 22.2
2,841 0.0 13.6 High
40,579 2.5 13.1 34.8
Earnings update (Net Profit) (SAR mn)
Company Q4-22 Q4-21 Y/Y % Q3-22 Q/Q %
Yanbu Cement 59.2 9.9 499.5 69.3 -14.6
BAHRI 578.1 92.0 528.6 269.9 114.2
PETRO RABIGH -1,811.0 449.0 NM 1,413.0 NM
NAMA CHEMICALS -17.7 3.3 NM -5.4 NM
SAUDI ELECTRICITY 1,740.0 -506.0 NM 6,375.0 -72.7 Market Analysis
• The Saudi Stock Exchange decreased 1.0% to 10,207.2. The value traded stood at SAR 4.4bn (down 7.9% over previous day), while the advance-decline ratio stood at 56/157. The parallel market index decreased 0.4% to 18,964.8 points. The value traded stood at SAR 15.8mn (down 57.8% over previous day). Most sectors in the main market ended in the red. Software & Services and Telecom (up 2.5% and 1.3%, respectively) advanced the most; Pharma & Bio Tech and Banks (down 2.4% and 1.4%, respectively) led the laggards.
© All rights reserved
15 March 2023
Daily Report
2
Regional and International Markets
• Among other regional markets, Dubai and Abu Dhabi decreased 1.5% and 1.7%, respectively. Oman increased 0.7%, while Kuwait, Qatar, Egypt and Bahrain declined 1.9%, 1.8%, 0.5% and 0.1%, respectively.
• UK ILO unemployment rate edged lower to 3.7% in February (consensus:
3.8%) as compared to 3.7% in January. Claimant count decreased by 11,200 M/M in February (consensus: decline of 12,400 M/M) as compared to prior revised decline of 30,000 M/M. Average earnings incraesed by 5.7% Y/Y (consensus: 5.7% Y/Y) as compared to 6.0% Y/Y rise in January (Source: Econoday)
• US CPI increased 6.0% Y/Y in February (consensus: 6.0% Y/Y) easing slightly as compared to increase of 6.4% Y/Y in January. Excluding food and energy, prices increased 5.5% Y/Y (consensus: 5.5% Y/Y) as compared to 5.6% in January. (Source: Econoday)
• China industrial production increased 2.4% Y/Y in January and February (consensus: 2.6% Y/Y) as compared to 1.3% Y/Y in December. (Source:
Econoday)
• China retail sales increased 3.5%Y/Y in February (consensus: 3.5% Y/Y) in contrast to a decline of 1.8% Y/Y in January. (Source: Econoday)
• Oil prices declined 4.1%, as worry of a new financial crisis that would lower future oil demand was stirred by a report on US inflation and recent bank failures in the US.
• Gold prices fell 0.5%, as US treasury yields strengthened and paused the bullion’s rally driven by US banking crisis.
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 March 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
3,304 -1.5 -3.9 -0.7 8.8
9,587 -1.7 -2.6 -6.6 16
5,366 -1.9 -3.3 -4.1 12.3 10,216 -1.8 -3.4 -4.4 11.5
4,929 0.7 3.7 1.5 11.6
1,906 -0.1 -1.3 0.6 8
15,362 -0.5 -9.6 5.2 6.1
32,155 1.1 -1.5 -3.0 19.1 12,200 2.3 1.3 11.5 27.0
3,919 1.6 -1.3 2.1 18.8
7,637 1.2 -3.0 2.5 10.7
15,233 1.8 -0.9 9.4 12.0 7,142 1.9 -1.7 10.3 12.5 27,222 -2.2 -0.8 4.3 22.3
2,290 0.9 1.6 6.3 2.7
19,248 -2.3 -2.7 -2.7 11.4 2,349 -2.6 -2.6 5.0 11.5 3,245 -0.7 -1.0 5.1 14.2 7,009 -1.4 -3.4 -0.4 11.6 57,900 -0.6 -1.8 -4.8 21.8 945 -1.7 -2.0 -1.2 11.9
2,674 1.2 -1.5 2.8 16.8
80.24 -2.7 -3.8 -4.7
77.45 -4.1 -7.7 -9.8
71.33 -4.6 -7.4 -11.1
2.57 -1.3 -6.3 -34.3
1,904.01 -0.5 4.2 4.4
21.70 -0.5 3.8 -9.4
1,075.00 1.9 2.0 44.5
953.50 -0.5 4.0 11.3
696.25 1.7 -1.3 -12.8
620.75 1.2 -1.5 -8.4
20.68 -0.6 3.0 10.5
2,573.00 -0.3 -0.8 -7.3
103.60 0.0 -1.2 0.1
1.07 0.0 1.5 0.3
134.22 0.8 -1.4 2.4
1.22 -0.2 1.1 0.6
6.88 0.4 -1.1 -0.6
82.49 0.4 -0.2 -0.3
3.67 0.0 0.0 0.0
3.66 0.1 -0.1 -0.3
0.31 0.0 -0.1 0.2
0.38 -0.1 -0.1 -0.1
0.38 0.0 0.0 0.0
30.90 0.0 0.9 24.8
5.34 -0.7 9.2 61.1
5.61 -8.0 3.2 27.3
5.73 -2.4 -3.7 13.0
5.79 -5.4 -4.2 -7.7
4.87 -27.2 -9.6 9.9
4.75 -31.5 -14.7 44.1
Corporate Calendar
Date Company Event
15th Mar STC Cash Dividend Distribution 15th Mar ALJOUF Eligibility for Cash Dividend 15th Mar ALANDALUS Eligibility for Cash Dividend 15th Mar AL Maather REIT Eligibility for Cash Dividend
15th Mar MULKIA REIT MULKIA REIT
15th Mar Foods Gate End of IPO
15 March 2023
Daily Technical Outlook
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3
Technical observations
Index TASI
Ticker SASEIDX Index
Last Close 10,207
Short-term view Neutral
52 weeks high/low 13,949 – 9,931
Key price levels
S3 S2 S1 Pivot R1 R2 R3
9,950 10,060 10,160 10,230 10,300 10,350 10,450
Market data
Exchange Market Cap. (SAR bn) 9,897.9
Value (SAR mn) 4,425.8
Volume (mn) 146.5
Number of Transactions 358,879
Market Breadth 56 : 157
Key statistics
1D return % -0.95%
MTD return % 1.03%
QTD return -2.59%
YTD return -2.59%
ADT vol. 3M* (mn) 144.6
ADT val. 3M (SARmn) 3,861.7
TASI market commentary
• The TASI declined on Tuesday, primarily due to weakness in Index heavyweights Banks (-1.39%
D/D) and Energy (-1.32% D/D) stocks. At close, the Saudi market ended the day with a change of -0.95% at 10,207. In terms of activity, total volumes and value traded were ~147mn and ~SAR 4.4bn respectively. The advance-decline ratio came in at 56/157.
Technical outlook
• TASI lost 98 points to close Tuesday’s trading session near the 10,207 mark. The last session witnessed initial buying behavior that pushed the index up to record an intraday high near 10,327 before heavy profit-booking action threw the index down to close at the low. TASI resumed declining to the 50% retracement level of the last short-term upside trend at 10,230 points, which indicates the market’s weakness and suggests that there could be a further decline towards the 61.8%
retracement level at 10,160. This could ultimately lead to a short-term rebound in the market.
Otherwise, breaking the 61.8% level raises the probability of retracing 100% of the last short-term upside leg. The RSI indicator is still heading down below the 50 level reflecting the short-term weakness. The index has immediate support at 10,160 points; if breached, it’ll be expected to continue toward the support level of 10,060 followed by the level of the prior bottom near 9,950.
On the flip side, immediate resistance is seen around the level of 10,230 followed by the level of the 20-day SMA near 10,350. Traders are recommended to keep an eye on the support level of 10,160 points, where a potential rebound may be witnessed.
Source: Tradingview, Aljazira Capital Source: Bloomberg, Argaam
TASI daily chart
Our view
Unchanged Up
Down
56
157 11
NEUTRAL
PROFIT Booking BEARISH
CAUTIOUS ACCUMULATE
HOLD CAUTIOUS
BUY BUY
Market depth
*ADT stands for Average Daily Traded
Market cap SAR9,898bn
D/Y (%) 2.88%
P/B 2.05x
ROE 27.0%
TTM P/E 17.5x
SAUDI MARKET - TOP PICKS FOR THE WEEK
Code Company Close* Buy range Target 1 Target 2 Stop loss
No stocks recommendations due to market volatility
* As of 14th March 2023
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.
RESEAR CH DIVISION
Head of Sell-Side Research Jassim Al-Jubran +966 11 2256248
