© All rights reserved
Daily Report
1
Major Economic News
• The point-of-sale transactions reached nearly SAR 10.7bn in the week ended December 17, compared to SAR 11.1bn in the week before. Data showed that about 155.4mn transactions were processed during the week.
(Source: Argaam)
• Hassana Investment Co. (HIC), the investment manager of the General Organization of Social Insurance, and DP World announced investing nearly USD 2.4bn (SAR 9.0bn or AED 8.8bn) in three UAE assets of the port operator. HIC will inject about USD 2.4bn in investment in a new joint venture with DP World and will hold an interest of nearly 10.2% in the three UAE assets. The total investment value of these assets is expected to near USD 23.0bn. (Source: Argaam)
Major Corporate News
• Group Five Pipe Saudi Co. signed a contract with Civil Works Co. Ltd to supply spiral-welded steel pipes for water applications in the water quality improvement project in Dammam. The contract is valued at SAR 36.9mn, including VAT. The contract is valid for one year from the signing date and is expected to be completed by Q4-23. (Source: Argaam)
• Arabian International Healthcare Holding Co. said that its wholly owned subsidiary, International Medical Supplies Co., signed an on-demand supply/service contract with National United Procurement Co. for SAR 31.1mn. (Source: Argaam)
• Perfect Presentation for Commercial Services Co. signed a joint strategic agreement with Huawei, aligned with its strategic plan to establish strategic partnerships with leading manufacturers and IT service providers in communication infrastructure. (Source: Argaam)
Market Analysis
• The Saudi Stock Exchange ended flat at 10,276.9. The value traded stood at SAR 3.5bn (down 17.4% over previous day), while the advance- decline ratio stood at 136/64. The parallel market index increased 0.5%
to 18,751.8 points. The value traded stood at SAR 28.6mn (down 12.6%
over previous day). Most sectors in the main market ended in the green.
Commercial Service and Diversified Financials (up 1.2% each) advanced the most; Utilities and Food & Beverages (down 1.3% and 0.9%, respectively) led the laggards.
Top Gainers
Company Price Change%
Top Losers
Company Price Change%
Saudi Stock Exchange
Index Closing High Low Daily
Change% YTD % TASI
NomuC
10,277 10,323 10,249 0.0 -8.9
18,752 18,852 18,569 0.5 -27.8
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 1.0 2.0 3.0 4.0
10,220 10,260 10,300 10,340
*Source: Argaam (Excluding Aramco)
TASI movement during session
17 2.1 2.5 27.7
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)
10,257 10,217 10,445 4.41
Market Statistics
Value Traded
(SAR bn) Volumes
(mn shares) No. of Trades (‘000) Current Week
Previous week
14.8 556.00 1,223.50
26.5 1,840.40 1,919.60
Top Weighted Companies
Company Price Change%
SHAKER 20.30 7.5
ALRAJHI TAKAFUL 91.30 6.2
GACO 17.20 5.1
TAPRCO 68.30 5.1
2P 179.80 3.5
TECO 15.58 -3.1
ALAMAR 133.60 -2.2
RIYADH CABLES 40.30 -2.1
ALMARAI 52.80 -1.9
ACWA POWER 148.60 -1.9
Al Rajhi 74.70 -1.3
Saudi Aramco 31.00 0.0
SNB 49.00 2.4
SABIC 84.80 -1.4
STC 35.70 -0.1
5,251 0.0 -4.8 11.2
6,124 -0.2 -16.6 12.2
5,285 -0.1 -30.0 23.1
3,365 1.2 -24.3 29.2
4,585 0.5 -12.4 High
4,239 0.9 -33.2 Neg
3,698 0.1 -20.3 46.7
21,101 -0.4 -9.3 22.2
7,190 0.5 -27.0 20.1
8,727 0.7 -4.3 18.7
4,589 -0.9 -5.1 38.3
8,760 -0.9 19.8 42.8
2,902 -0.1 -44.1 Neg
11,331 0.1 -7.3 15.7
6,286 1.2 -7.9 6.9
5,275 0.9 -11.9 High
6,216 0.3 -14.6 15.5
7,069 -1.3 19.1 15.5
3,983 0.3 -13.6 21.9
2,536 -0.2 -20.0 46.4
36,626 0.4 27.8 34
© All rights reserved
22 December 2022
Daily Report
2
Regional and International Markets
• Among other regional markets, Dubai decreased 0.3%, while Abu Dhabi closed flat. Qatar and Egypt rose 0.3% and 0.1%, respectively; while Kuwait and Oman declined 0.5% and 0.4%, respectively. Meanwhile, Bahrain remained flat.
• According to EIA, oil inventories in the US fell 5.9mn barrels (prior: up 10.2mn) to 418.2mn in the week ended December 16. Gasoline inventories increased 2.5mn barrels (prior: up 4.5mn) to 226.1mn, while distillate inventories edged down by 0.2mn barrels (prior: up 1.4mn) to 119.9mn.
(Source: EIA, Econoday)
• US existing home sales plunged 7.7% M/M in November to an annual rate of 4.1mn (consensus: 4.2mn) compared to a fall of 5.9% to a rate of 4.4mn in October. The recent increase in mortgage rates partly impacted the existing home sales. (Source: Econoday, RTT News)
• US consumer confidence index jumped to 108.3 in December (consensus:
101.0) from an upwardly revised 101.4 in November. (Source: RTT News)
• Oil prices surged 2.8%, as data revealed that US oil inventories witnessed a drawdown last week. Oil also received support from continued easing of COVID restrictions in China.
• Gold prices fell 0.2%, as US dollar showed some recovery, thus weighing on the yellow metal demand
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 December 21, 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
3,340 -0.3 0.5 4.5 8.5
10,340 0.0 -2.0 21.8 18.7
5,585 -0.5 -1.7 -5.1 13
10,998 0.3 -7.8 -5.4 12.2
4,797 -0.4 4.0 16.2 12
1,857 0.0 -0.4 3.3 7.1
14,542 0.1 9.7 21.7 7
33,376 1.6 -3.5 -8.2 19.2 11,236 1.5 -6.6 -31.2 24.4 3,878 1.5 -4.9 -18.6 18.8
7,497 1.7 -1.0 1.5 13.9
14,098 1.5 -2.1 -11.2 13.0 6,580 2.0 -2.3 -8.0 13.6 26,388 -0.7 -5.7 -8.3 17.9 2,116 -0.2 -2.7 -44.1 3.6
19,160 0.3 3.0 -18.1 7.1
2,329 -0.2 -5.8 -21.8 11.1 3,068 -0.2 -2.6 -15.7 13.8 7,115 1.3 -2.3 -4.4 14.7 61,067 -1.0 -3.2 4.8 23.5
953 0.2 -2.0 -22.6 10.7
2,627 1.3 -3.5 -18.7 16.8
82.41 0.9 -3.4 4.1
82.20 2.8 -3.8 3.6
78.29 2.9 -2.8 1.7
5.33 0.1 -23.1 33.3
1,814.39 -0.2 2.6 -0.0
23.97 -0.8 8.0 4.0
660.00 -1.5 0.8 -53.7
831.00 0.8 8.3 21.1
767.75 2.3 -3.5 -1.7
662.25 1.6 -0.7 19.8
20.75 0.8 5.7 13.6
2,885.00 0.3 -5.3 -14.3
104.01 0.0 -1.8 8.7
1.06 -0.2 1.9 -6.7
132.46 0.6 -4.1 15.1
1.21 -0.8 0.2 -10.7
6.99 0.4 -0.8 9.9
82.82 0.1 1.7 11.4
3.67 0.0 -0.0 -0.0
3.66 -0.0 -0.4 -0.3
0.31 0.0 -0.5 1.3
0.38 0.1 -0.1 -0.1
0.38 0.0 0.0 -0.0
24.72 0.0 0.7 57.3
4.80 -4.1 41.3 409.5
5.25 0.3 -19.8 434.1
5.67 3.5 -6.7 469.0
5.86 -1.5 -19.8 479.8
4.75 1.4 -2.6 453.8
4.60 7.8 12.2 423.6
Corporate Calendar
Date Company Event
22nd Dec SIIG Cash Dividend Distribution
22nd Dec Luberef Allocation Date
22nd Dec Saudi Top for Trading Listing Date
22nd Dec Nofoth Close of offering
26th Dec HCC Cash Dividend Distribution
26th Dec LAZURDE EGM
Daily Technical Outlook
© All rights reserved
3
Technical observations
Index TASI
Ticker SASEIDX Index
Last Close 10,277
Short-term view Buy
52 weeks high/low 13,949 – 9,950
Key price levels
S3 S2 S1 Pivot R1 R2 R3
10,050 10,116 10,209 10,252 10,387 10,446 10,593
Market data
Exchange Market Cap. (SAR,bn) 9,570.6
Value (SAR,mn) 3,546.9
Volume (mn) 137.8
Number of Transactions 289,575
Market Breadth 136 : 64
Key statistics
1D return % -0.03%
WTD return % -0.13%
QTD return -9.89%
YTD return -8.91%
ADT vol. 3M* (mn) 153.5
ADT val. 3M (SARmn) 5,056.9
TASI market commentary
• The TASI marginally fell on Wednesday, primarily due to weakness in Index heavyweights Utilities (-1.30% D/D) and Materials (-0.21% DD) stocks. At close, the Saudi market ended the day with a small loss of -0.03% at 10,277. In terms of activity, total volumes and value traded were ~138mn and ~SAR 3.6bn respectively. The advance-decline ratio came in at 136/64.
Technical outlook
• TASI closed around 3 points lower to close the trading session near the 10,280 mark. The index opened gap up and tagged an intraday high near 10,325, but failed to make any further headway and surrendered all its gains on the back of profit booking. Meanwhile, the index managed to stay above its 10-day moving average near the 10,220 level, showing the positive momentum to be intact. The index has immediate resistance near the 10,390 level, any penetration above it can trigger buying interest which can push the index toward the 10,450 – 10,600 level. On the flip side, the index has support near 10,250, followed by the 10,200 level. Traders are advised to buy, but also need to keep a close eye on 10,120 (Fibonacci 61.8% level of the latest prior minor upside rebound from 9,950 to 10,380) as a strict stop-loss.
Source: Tradingview, Aljazira Capital Source: Bloomberg, Argaam
TASI daily chart
Our view
Unchanged Up Down
136 64
18 NEUTRAL
CAUT- IOUS
PROFIT Booking BEARISH HOLD ACCUM- ULATE
CAUTIOUS BUY
BUY
Market depth
*ADT stands for Average Daily Traded
Market cap SAR9,571bn
D/Y (%) 2.49%
P/B 2.10x
ROE 27.7%
TTM P/E 17.0x
22 December 2022
Daily Technical Outlook
© All rights reserved
4
* As of 21th December 2022 * Note – Stop loss is based on a closing basis and not on an intraday basis
Code Company Close* Buy range Target 1 Target 2 Stop loss
4031 Saudi Ground Services Co. 23.00 22.80-23.00 23.90 24.60 22.35
SAUDI MARKET - TOP PICKS FOR THE WEEK
SGS penetrated above its channel resistance yesterday, indicating positive signs. Moreover, the stock is trading above both its 10-day and 20-day moving averages, showing its strength.
Furthermore, the RSI line is above the 50 level.
We recommend buying the stock in a range of SAR 22.80 – 23.00, for a target of SAR 23.90 followed by SAR 24.60, with a strict stop loss of SAR 22.35 on a closing basis.
Saudi Ground Services Co. (SGS) Technical observations
Source: Tradingview, AlJazira Capital
CHARTS OF THE WEEK
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.
