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Daily Report
1
Major Economic News
• Saudi Arabia recorded more than 93mn domestic and international visits in FY22, with total spending of more than SAR 185bn. (Source: Argaam)
• The Public Investment Fund is negotiating to buy a stake in Flynas. Flynas had also planned a potential offering, but this could be postponed if the equity sale to PIF goes through. Kingdom Holding Co., a Tadawul-listed company, owns 37.1% of the low-cost carrier, while PIF owns 16.9%.
(Source: Argaam)
• More than 106 contracting and consulting firms have been qualified by the Water and Electricity Regulatory Authority (WERA) to install small-scale solar PV systems at all establishments. (Source: Argaam)
Major Corporate News
• United International Transportation Co. (Budget Saudi) signed a sale and purchase agreement to acquire 70% of Overseas Development Co.’s ownership in Saudi Arabia worth SAR 126.4mn. (Source: Tadawul)
• Al-Gassim Investment Holding Co.’s (GACO) board of directors recommended reducing the stock’s par value from SAR 10 to SAR 0.5.
Thus, the number of the company’s shares will become 600.0mn shares instead of 30.0mn shares. (Source: Tadawul)
• The Capital Market Authority (CMA) approved the application received from Maharah Human Resources Co. to increase its capital to SAR 475.0mn from SAR 375.0mn via a one-for-five bonus share distribution.
(Source: Tadawul)
• Seera Group Holding Company announced that two vehicle rental service contracts are signed between Lumi Rental Company (fully owned subsidiary by Seera) and Saudi Arabian Oil Company for a total value of SAR 471mn. (Source: Tadawul)
• Obeikan Glass Co.’s shareholders will vote on the board’s recommendation to increase capital by 33.3% to SAR 320.0mn in their EGm which will be held on May 18. (Source: Tadawul)
Top Gainers
Company Price Change%
Top Losers
Company Price Change%
Saudi Stock Exchange
Index Closing High Low Daily
Change% YTD % TASI
NomuC
11,271 11,292 11,238 -0.3 7.6
21,322 21,371 21,093 0.0 9.8
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
11,200 11,225 11,250 11,275 11,300
*Source: Argaam (Excluding Aramco)
TASI movement during session
19.4 2.3 2.6 26.9
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)
11,234 11,086 10,903 5.55
Market Statistics
Value Traded
(SAR bn) Volumes
(mn shares) No. of Trades (‘000) Current Week
Previous week
- - -
19.5 668.70 1,209.70
Top Weighted Companies
Company Price Change%
SALAMA 17.38 9.2
ALKHALEEJ TRNG 18.40 5.8
AMANA INSURANCE 11.26 5.4
ENAYA 11.22 4.9
MALATH INSURANCE 14.74 4.4
ANAAM HOLDING 26.55 -5.2
NCLE 110.80 -4.0
RIYADH CABLES 51.30 -3.4
SAUDI KAYAN 12.66 -2.9
SIIG 25.45 -2.9
Saudi Aramco 36.00 0.0
Al Rajhi 76.80 -1.7
SNB 48.90 -0.7
SABIC 92.30 -1.6
STC 45.00 2.5
6,100 -0.1 12.4 13.2
6,658 -1.0 5.9 16.2
6,503 -1.2 24.4 18.4
3,629 -0.2 23.6 30.3
5,443 -0.1 19.9 High
4,776 -0.2 13.0 Neg
4,903 0.3 32.9 49.9
25,241 -0.4 17.4 26.2
7,888 0.5 10.0 21.5
10,289 -0.6 20.5 20.9
5,333 0.6 15.0 32.7
11,381 0.7 24.9 High
3,377 -1.2 17.5 Neg
11,282 -0.8 -2.3 14.6
6,360 -1.2 0.0 7.4
6,444 0.1 21.2 High
8,096 1.6 26.7 19.1
7,533 0.1 5.0 13.4
3,931 -0.1 -1.1 31.1
3,202 0.0 28.1 High
45,468 -0.3 26.7 34.9
Earnings update (Net Profit) (SAR mn)
Company Q1-23 Q1-22 Y/Y % Q4-22 Q/Q %
ANB 1,068.0 650.7 64.1 790.9 35.0
Market Analysis
• The Saudi Stock Exchange decreased 0.3% to 11,271.2 on Thursday.
The value traded stood at SAR 6.3bn (down 8.2% over previous day), while the advance-decline ratio stood at 96/113. The parallel market index remained flat at 21,322.1 points. The value traded stood at SAR 33.2mn (up 20.4% over previous day). Most sectors in the main market ended in the red. Telecom and Healthcare (up 1.6% and 0.7%, respectively) advanced the most; Capital Goods and Diversified Financials (down 1.2% each) led the laggards.
© All rights reserved
30 April 2023
Daily Report
2
Regional and International Markets
• Among other regional markets, Dubai and Abu Dhabi increased 0.8%
and 0.4%, respectively. Egypt, Qatar, Kuwait, and Oman increased 2.0%, 0.7%, 0.4% and 0.3%, respectively. Meanwhile, Bahrain remained flat.
• According to Baker Hughes, North America’s rig count decreased to 848 from 858 earlier in the week ended April 28. The rig count in the US increased to 755 from 753 a week ago and increased to 19 from 18 in the Gulf of Mexico. The rig count in Canada decreased to 93 from 105 in the week earlier. (Source: Baker Hughes)
• US initial jobless claims increased to 230,000 (consensus: 249,000) in the week ended April 22, representing a decrease of 16,000 from the previous week’s revised level of 246,000. (Source: Econoday)
• US GDP increased at an annual rate of 1.1% in Q1-23 (consensus:
2.0% Y/Y) as compared to 2.6% Y/Y rise in previous quarter. Personal consumption expenditure increased 3.7% Y/Y in Q1-23 as compared to 1.0% Y/Y rise in prior quarter. (Source: Econoday)
• US consumer sentiment index was at 63.5 in April (consensus: 63.5) like 63.5 in March. (Source: Econoday)
• Oil prices increased 1.5%, after US data revealed that crude output was falling while fuel demand was rising.
• Gold prices edged up 0.1%, due to drop in yields and renewed worries over the US financial crisis which helped gold recover even as sustained US inflation reinforced expectations for an interest rate hike next week.
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 April 28, 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
3,545 0.8 3.5 6.5 9.0
9,789 0.4 3.3 -4.7 16.3
5,606 0.4 1.9 0.2 11.5
10,145 0.7 -0.7 -5.0 11.1
4,735 0.3 -2.6 -2.5 10.7
1,895 0.0 0.4 0.0 7.9
17,797 2.0 8.4 21.9 6.9
33,826 1.6 3.6 2.0 19.7
13,160 2.8 9.3 20.3 29.5
4,135 2.0 4.2 7.7 19.9
7,832 -0.3 -0.6 5.1 11.1
15,800 0.0 2.8 13.5 13.4
7,484 0.2 3.0 15.6 12.4
28,458 0.1 3.7 9.1 23.7
2,646 1.0 17.4 22.8 3.4
19,840 0.4 0.3 0.3 11.3
2,496 0.4 3.4 11.6 12.8
3,286 0.7 0.2 6.4 15.2
7,293 -0.3 0.5 3.6 14.9
60,649 0.6 2.9 -0.3 22.9
972 0.4 0.8 1.7 12.5
2,816 1.3 3.7 8.2 17.8
79.57 -4.3 -4.6 -5.5
78.37 0.9 -6.6 -8.8
74.76 0.6 -3.0 -6.9
2.36 2.2 -14.3 -39.9
1,987.78 -0.1 8.8 9.0
24.93 0.2 19.2 4.1
1,074.00 0.1 1.9 44.4
835.50 2.6 -8.9 -2.5
629.25 -2.0 -10.8 -21.2
581.50 -3.2 -7.7 -14.2
26.35 2.2 31.3 40.8
2,395.00 1.5 -7.7 -13.7
101.47 -0.4 -3.2 -2.0
1.10 0.6 4.4 3.1
133.67 -0.1 -1.8 1.9
1.25 0.5 3.7 3.2
6.94 -0.0 -0.2 0.3
81.77 -0.2 -1.1 -1.2
3.67 -0.0 -0.0 -0.0
3.65 -0.0 -0.3 -0.5
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
5.45 -2.1 20.5 72.3
5.70 -3.9 11.4 35.5
5.71 -0.7 -5.1 11.6
5.76 -1.8 -7.2 -10.7
5.30 0.3 34.0 53.5
4.99 -20.8 9.3 68.1
Corporate Calendar
Date Company Event
30th Apr SAIB Cash Dividend Distribution 30th Apr SISCO Eligibility for Cash Dividend
30th Apr Alinma EGM
30th Apr Catering Cash Dividend Distribution
1st May ALBILAD EGM
1st May ALDREES EGM
Daily Technical Outlook
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3
Technical observations
Index TASI
Ticker SASEIDX Index
Last Close 11,271
Short-term view Cautious Buy 52 weeks high/low 13,949 – 9,931
Key price levels
S3 S2 S1 Pivot R1 R2 R3
11,065 11,100 11,175 11,250 11,330 11,400 11,600
Market data
Exchange Market Cap. (SAR bn) 10,957.2
Value (SAR mn) 6,315.4
Volume (mn) 208.2
Number of Transactions 417,059
Market Breadth 96 : 113
Key statistics
1D return % -0.32%
MTD return % 6.43%
QTD return 6.43%
YTD return 7.57%
ADT vol. 3M* (mn) 169.0
ADT val. 3M (SARmn) 4,653.6
TASI market commentary
• TASI witnessed a decline on Thursday which was led by index heavyweight Materials (-0.95%
D/D) and Banks (-0.75% D/D) sectors. At close, the Saudi market ended the day with a change of -0.32% at 11,271 In terms of activity, total volumes and value traded were ~208mn and ~SAR 6.3bn respectively. The advance-decline ratio came in at 96/113.
Technical outlook
• TASI closed near 11,271 after losing 36 points. The index is still showing a positive medium- term view after completing a positive double-bottom pattern. However, after six consecutive green sessions, the index displayed a Bearish Harami candlesticks pattern, a short-term weakness sign suggesting a possible short-term profit booking action. The RSI indicator lies inside its overbought zone and points to the downside. The index currently has immediate support near 11,250 followed by 11,175. If breached, the index would be expected to meet the next support near the level of 127.2% Fibonacci external retracement near 11,100. Immediate resistance is seen around 11,330 followed by 11,400. If penetrated, it will pave the way toward the resistance level of 11,600 followed by the medium-term target of the completed double-bottom pattern near 11,790. Traders are advised to cautiously buy near the zone of 11,175 – 11,100 and keep track of a stop loss below the 10-day SMA near 11,065.
Source: Tradingview, Aljazira Capital Source: Bloomberg, Argaam
TASI daily chart
Our view
Unchanged UpDown
113 96 15
NEUTRAL
PROFIT Booking BEARISH
CAUTIOUS ACCUMULATE
HOLD CAUTIOUS
BUY BUY
Market depth
*ADT stands for Average Daily Traded
Market cap SAR10,957bn
D/Y (%) 2.64%
P/B 2.28x
ROE 26.9%
TTM P/E 19.4x
30 April 2023
Daily Technical Outlook
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4
SAUDI MARKET - TOP PICKS FOR THE
DAY
* As of 27th April 2023 * Note – Stop loss is based on an intraday basis
Baazeem penetrated the upper boundary of a continuation ascending triangle price pattern. Moreover, all the technical indicators show bullish structure.
ALMUNAJEM penetrated the prior minor peak after finishing an inverted head and shoulders price pattern.
Moreover, all the technical indicators show bullish structure.
Baazeem Trading Company (Baazeem)
Almunajem Foods Co. (ALMUNAJEM) Technical observations
Technical observations
Source: Tradingview, AlJazira Capital
Source: Tradingview, AlJazira Capital
CHARTS OF THE DAY
Code Company Close* Buy range Target Stop loss
4051 Baazeem Trading Company 69.90 69.75 – 69.90 70.60 69.20
4162 Almunajem Foods Co. 62.50 62.35 – 62.50 63.15 61.90
4071 Arabian Contracting Services Co. 126.40 126.10 – 126.40 127.65 125.10
6013 Development Works Food Co. 165.20 164.80 – 165.20 166.85 163.55
3091 Al Jouf Cement Company 12.76 12.73 – 12.76 12.90 12.65
2180 Filing and Packing Materials Manufacturing Co. 41.85 41.75 – 41.85 42.25 41.45
1202 Middle East Paper Co. 32.40 32.30 – 32.40 32.70 32.10
2001 Methanol Chemicals Company 25.00 24.95 – 25.00 25.25 24.75
4192 AlSaif Stores for Development and Investment
Co. 86.00 85.80 – 86.00 86.85 85.15
8260 Gulf General Cooperative Insurance Co. 8.08 8.05 – 8.08 8.16 8.00
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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.
