© All rights reserved
Daily Report
1
Major Economic News
• Saudi banks’ investments in treasury bonds increased by SAR 4.7bn M/M to SAR 516.0bn in February. (Source: Argaam)
Major Corporate News
• The Capital Market Authority approved by First Milling Co.’s application to float 16.7mn shares or 30% of its capital. (Source: Tadawul)
• The Capital Market Authority gave the green light for Lumi Rental Co. to register and offer 16.5mn shares or 30% of its share capital. (Source:
Tadawul)
• Al Rajhi bank launched a US dollar denominated sustainable sukuk under its international sukuk program. The par value of the sukuk is USD 200,000 with maturity of 5 years. (Source: Tadawul)
• Arabian Contracting Services Co.’s (Al Arabia) shareholders approved a request to arrange a bank credit facility at SAR 1.05bn to finalize the takeover of Faden Media. (Source: Tadawul)
• Aramco (30%), NORINCO Group (51%), and Panjin Xincheng Industrial Group (19%) plan to collaborate to build the complex in Panjin, Liaoning Province, China. (Source: Tadawul)
• Aldrees Petroleum and Transport Services Co. opened a new integrated services station in Jazan which includes car wash and cafeterias.
(Source: Tadawul)
Top Gainers
Company Price Change%
Top Losers
Company Price Change%
Saudi Stock Exchange
Index Closing High Low Daily
Change% YTD % TASI
NomuC
10,503 10,503 10,452 0.3 0.2
19,603 19,603 19,387 0.4 1.0
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 8.0
10,450 10,470 10,490 10,510
*Source: Argaam (Excluding Aramco)
TASI movement during session
17.8 2.1 2.8 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 the month (bn)
10,468 10,340 10,342 4.76
Market Statistics
Value Traded
(SAR bn) Volumes
(mn shares) No. of Trades (‘000) Current Week
Previous week
22.4 836.50 1,531.00
22.4 737.40 1,623.70
Top Weighted Companies
Company Price Change%
APC 45.65 10.0
ALKATHIRI 65.20 10.0
SHAKER 19.74 6.2
SAUDI GERMAN HEALT 37.75 5.2
DALLAH HEALTH 154.00 5.1
THIMAR 41.30 -6.7
CARE 89.00 -3.8
SEERA 21.80 -3.0
EIC 33.35 -2.8
SIDC 11.50 -2.5
Saudi Aramco 32.40 0.3
Al Rajhi 72.30 -0.3
SNB 44.85 -0.1
SABIC 89.80 -0.2
STC 40.40 0.5
5,517 0.3 1.7 11.7
6,339 0.2 0.8 12.5
6,080 0.6 16.3 20.9
3,629 2.0 13.1 33.7
5,240 -0.1 15.4 High
4,415 0.9 4.5 Neg
4,641 1.6 25.8 High
23,615 1.7 9.9 24.8
7,855 1.3 9.5 23.9
9,709 1.5 13.7 20.5
4,894 0.3 5.5 41
10,842 2.2 19.0 High
3,098 -0.9 7.8 Neg
10,575 -0.1 -8.4 14.6
5,589 -0.6 -12.1 6.6
6,225 0.4 17.1 High
7,246 0.7 13.4 17.9
6,886 1.0 -4.0 14.3
3,830 0.6 -3.7 22.3
2,969 0.8 18.8 High
42,707 -0.4 19.0 36
Earnings update (Net Profit) (SAR mn)
Company Q4-22 Q4-21 Y/Y % Q3-22 Q/Q %
Farm superstores 6.8 8.5 -20.6 4.5 49.3
ALABDULLATIF -26.7 -37.8 NM -15.6 NM
ALUJAIN -18.2 1,413.3 NM 18.7 NM
ZAMIL INDUST -99.6 -172.5 NM 2.44 NM
AYYAN -29.7 -7.4 NM -16.8 NM
Market Analysis
• The Saudi Stock Exchange increased 0.3% to 10,503.2. The value traded stood at SAR 5.7bn (down 1.0% over previous day), while the advance-decline ratio stood at 148/61. The parallel market index increased 0.4% to 19,603.4 points. The value traded stood at SAR 17.3mn (down 15.3% over previous day). Most sectors in the main market ended in the green. Healthcare and Commercial service (up 2.2% and 2.0%, respectively) advanced the most; Pharma & Bio Tech (down 0.9% and 0.6%, respectively) led the laggards.
© All rights reserved
30 March 2023
Daily Report
2
Regional and International Markets
• Among other regional markets, Dubai increased 0.5%, while Abu Dhabi remained flat. Egypt and Bahrain increased 3.2% and 0.8%, respectively, while Qatar, Kuwait and Oman declined 0.9%, 0.6% and 0.1%, respectively.
• According to EIA, oil inventories in the US fell 7.5barrels (prior: up 1.1mn) to 473.7mn in the week ended March 24. Gasoline inventories fell 2.9mn barrels (prior: down 6.4mn) to 226.7mn, while distillate inventories up 0.3mn barrels (prior: down 3.3mn) to 116.7. (Source: EIA, Econoday)
• US pending home sales index rose 0.8% M/M in February to 83.2 (consensus: 1.0% M/M) as compared to rise of 8.1% M/M in January which reached 82.5. US weekly index of total loan applications increased by 2.9%. The biggest contributor to growth was a 4.8% in loan refinancing applications. (Source: Econoday, Reuters)
• UK mortgage approvals for house purchases increased to 43,500 in February (consensus: 40,500) from 39,600 in January, the first monthly increase since August 2022. (Source: RTT news)
• Oil prices slid 0.5%, despite data denoting weekly inventories of US crude declining the most in four months amid a drop in gasoline stockpiles coupled with indication of pick up in energy demand ahead of the oncoming summer driving season.
• Gold prices declined 0.4%, weighed by stronger US dollar but fall has been relatively limited indicating ongoing concerns about the financial industry.
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 29, 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
3,401 0.5 -1.1 2.2 9.1
9,456 0.0 -4.0 -7.9 15.9
5,492 -0.6 -1.0 -1.9 12.1 10,213 -0.9 -3.4 -4.4 11.3
4,854 -0.1 2.1 -0.1 11.1
1,894 0.8 -1.9 0.0 7.9
16,411 3.2 -3.5 12.4 6.3
32,718 1.0 0.2 -1.3 19.5
12,846 1.9 6.7 17.4 28.5
4,028 1.4 1.5 4.9 19.3
7,564 1.1 -4.0 1.5 10.9
15,329 1.2 -0.2 10.1 12.1 7,187 1.4 -1.1 11.0 11.7
27,884 1.3 1.6 6.9 22.9
2,461 0.8 9.2 14.2 3.2
20,192 2.1 2.1 2.1 13.0
2,444 0.4 1.3 9.3 12.4
3,240 -0.2 -1.2 4.9 14.1
7,050 0.2 -2.9 0.2 14.3
57,960 0.6 -1.7 -4.7 21.9
980 1.0 1.7 2.5 12.4
2,739 1.3 0.9 5.3 17.2
79.12 0.2 -5.2 -6.1
78.28 -0.5 -6.7 -8.9
72.97 -0.3 -5.3 -9.1
2.18 1.7 -20.5 -44.2
1,964.70 -0.4 7.5 7.7
23.34 0.0 11.6 -2.6
1,170.00 12.9 11.0 57.3
933.50 2.5 1.8 8.9
704.75 0.7 -0.1 -11.8
650.50 0.5 3.2 -4.1
21.25 -0.3 5.9 13.5
2,557.00 -0.1 -1.5 -7.9
102.64 0.2 -2.1 -0.9
1.08 0.0 2.5 1.3
132.86 1.5 -2.4 1.3
1.23 -0.2 2.4 1.9
6.89 0.2 -0.9 -0.4
82.34 0.2 -0.4 -0.5
3.67 0.0 0.0 0.0
3.67 0.0 0.2 0.0
0.31 0.0 -0.2 0.1
0.39 0.0 0.0 0.0
0.38 0.0 0.0 0.0
30.90 0.0 0.9 24.8
5.38 0.2 13.5 65.4
5.66 0.5 7.7 31.8
5.66 0.5 -10.5 6.3
5.53 -1.8 -30.2 -33.6
5.16 0.0 20.0 39.6
4.99 0.0 8.9 67.7
Corporate Calendar
Date Company Event
2nd Apr ALRAJHI Cash Dividend Distribution 2nd Apr SABIC Cash Dividend Distribution
2nd Apr TAPRCO EGM
3rd Apr RIBL Cash Dividend Distribution 4th Apr City Cement Cash Dividend Distribution 4th Apr ALSAIF GALLERY Cash Dividend Distribution
Daily Technical Outlook
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3
Technical observations
Index TASI
Ticker SASEIDX Index
Last Close 10,503
Short-term view Cautious Buy 52 weeks high/low 13,949 – 9,931
Key price levels
S3 S2 S1 Pivot R1 R2 R3
10,200 10,340 10,375 10,450 10,530 10,600 10,700
Market data
Exchange Market Cap. (SAR bn) 9,980.3
Value (SAR mn) 5,681.9
Volume (mn) 250.9
Number of Transactions 408,092
Market Breadth 148 : 61
Key statistics
1D return % 0.34%
MTD return % 3.96%
QTD return 0.24%
YTD return 0.24%
ADT vol. 3M* (mn) 156.8
ADT val. 3M (SARmn) 4,228.4
TASI market commentary
• TASI witnessed a rise on Wednesday which was led by index heavyweight Telecommunication Services (0.68% D/D) and Energy (0.28% D/D) sectors. At close, the Saudi market ended the day with a change of 0.34% at 10,503. In terms of activity, total volumes and value traded were
~251mn and ~SAR 5.7bn respectively. The advance-decline ratio came in at 148/61.
Technical outlook
• TASI gained 35 points to close Wednesday’s trading session near 10,503 points. The index is still hovering around the significant resistance level of the prior peak near 10,530 for the third session in a row reflecting the indecision situation in the market. Meanwhile, maintaining above the 20-day SMA and the aforementioned declining trendline near the level of 10,300 keeps the near-term trend up and put the odds in favor of a bullish breakout above the prior peak near 10,530 which would provide a strong buying signal. Moreover, the RSI indicator maintained above its 50 level and recently headed upward. The index has immediate resistance near 10,530 followed by 10,600; if penetrated, it will pave the way toward the significant resistance level of the previous medium-term peak near 10,860. On the other hand, immediate support is seen around 10,450 followed by 10,375 points; if breached, the index would be expected to reach the level of 10,340 near the 20-day SMA. Traders are advised to cautiously buy and keep track of a protective stop loss below 10,300.
Source: Tradingview, Aljazira Capital Source: Bloomberg, Argaam
TASI daily chart
Our view
Unchanged UpDown
148 61
15
NEUTRAL
PROFIT Booking BEARISH
CAUTIOUS ACCUMULATE
HOLD CAUTIOUS
BUY BUY
Market depth
*ADT stands for Average Daily Traded
Market cap SAR9,980bn
D/Y (%) 2.81%
P/B 2.14x
ROE 27.1%
TTM P/E 17.8x
30 March 2023
Daily Technical Outlook
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4
SAUDI MARKET - TOP PICKS FOR THE
DAY
Code Company Close* Buy range Target Stop loss
6015 Americana Restaurants International
PLC Co. 4.17 4.15 – 4.17 4.25 4.15
1832 Sadr Logistics Co. 35.95 35.85 – 35.95 36.30 35.60
1830 Leejam Sports Co. 103.60 103.35 – 103.60 104.65 102.55
1831 Maharah Human Resources Co. 58.20 58.05 – 58.20 58.80 57.60
2200 Arabian Pipes Co. 45.65 45.55 – 45.65 46.55 45.20
4012 Thob Al Aseel Co. 37.30 37.20 – 37.30 37.65 36.95
2310 Sahara International Petrochemical
Co. 37.60 37.50 – 37.60 38.00 37.20
2090 National Gypsum Co. 22.54 22.50 – 22.54 22.75 22.30
2250 Saudi Industrial Investments 24.60 24.55 – 24.60 24.85 24.35
7040 Etihad Atheeb Telecommunication Co. 60.30 60.15 – 60.30 60.90 59.70
* As of 29th March 2023 * Note – Stop loss is based on an intraday basis
AMERICANA penetrated the historical high with heavy volume. Moreover, all the technical indicators show bullish structure.
Sadr developed a higher high structure accompanied by heavy volume after penetrating its 50-day SMA. Moreover, the RSI shows a bullish structure.
Americana Restaurants International PLC Co. (AMERICANA)
Sadr Logistics Co. (Sadr) Technical observations
Technical observations
Source: Tradingview, AlJazira Capital
Source: Tradingview, AlJazira Capital
CHARTS OF THE DAY
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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.
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.
