Monthly Report Saudi Stock Market | February 2022

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AJC Research Team

Monthly Report

Saudi Stock Market | February 2022

2022

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TASI Movement in February

traded stood at SAR 127.6 bn, with an average daily value traded of SAR 6.7bn. The Banks and Materials sectors accounted for 46.8% of the total value traded. Energy and Media were the top performers, showing a 10.1% M/M and 5.6% M/M, respectively. Consumer Durables and Capital Goods were the worst performers, showing a decrease of 10.9%M/M and 8.9%M/M, respectively.

In February, Elm was the best performing stock, recording 53.6%M/M increase. On the other hand, Alaseel was the worst performing stock, posting a decline of 18.9% M/M .Saudi Electricity recorded the lowest P/E with 8.3x, compared to TASI’s P/E of 23.2x.

TASI started the month at 12,293.38 points and closed at 12,590.26 with an average daily value traded of SAR 6.72bn compared to SAR 6.87bn in January.

TASI rose M/M by 318.4 points (up 2.6%M/M). On a monthly basis, Energy and Media were the top-performing sectors, recording an increase of 10.1%M/M and 5.6%M/M, respectively. On the other hand, Consumer Durables and Capital Goods were the worst performing sectors, posting a decline 10.9% and 8.9%, respectively.

Banks and Materials registered the highest traded values among the sectors, accounting 26.3% and 20.5%, respectively, of the total value traded in February.

3-Feb2-Feb1-Feb 6-Feb 7-Feb 8-Feb 9-Feb 10-Feb 13-Feb 14-Feb 15-Feb 16-Feb 17-Feb 20-Feb 21-Feb 23-Feb 24-Feb 27-Feb 28-Feb

Value Traded (bn) - RHS Closing Price - LHS 0.00 2.00 4.00 6.00 8.00 10.00

11,700 11,800 11,900 12,000 12,100 12,200 12,300 12,400 12,500 12,600 12,700

Value Traded per Sector (%)

26.3%

20.5%

6.2% 7.3%

4.3%

4.1%

3.6%

3.2%

3.2%3.1%

2.8%

15.52%

Banks Materials Energy

Real Estate Mgmt & Dev't Software & Services Telecommunication Services Insurance

Retailing

Consumer Services Diversiﬁed Financials Capital Goods others

Source: TADAWUL, Aljazira Capital Source: TADAWUL, Aljazira Capital

Source: TADAWUL, Aljazira Capital

Sectors Performance

M/M Performance 15.4%

26.3%

16.6% 14.4%

10.3% 8.3%

4.1%

8.9%

2.4% 3.2%

0.1% 3.0% 4.8% 4.2%

0.6% 4.6%

12.2%

2.3%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Energy Media Banks Utilities Consumer Services§ Materials Real Estate Healthcare REITs Retailing Food & Staples Food & Beverages Software & Services Telecom Commercial Service Insurance Diversiﬁed Financials Pharma & Bio Tech Transportation Capital Goods Consumer Durables

YTD

-4.6% -6.5%

-1.5%

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Top 10 Companies by Index Weight

Top/Worst Performing companies Vs. TASI (YTD)

Companies with the Lowest P/E (TTM)

Al Rajhi Bank had the highest weight in TASI at the end of February at 15.3%, followed by SNB and Aramco at 8.4%

and 8.1%, respectively.

ELM and Alinma were the top performing YTD, recording an increase of 53.6% and 48.2%, respectively. On the other hand, Sadr and ACIG were the worst performing in 2022, recording a decline of 26.0% and 18.1%. TASI increased 11.6% in 2022.

Saudi Electricity and Sipchem traded at the lowest P/E of 8.30x and 9.37x, respectively. This was followed by Alyamamah Steel and Chemanol at 9.97x and 10.13x, respectively.

Prices as of 2^ndof March 2022

Al Rajhi and Alinma had the highest total value traded in February at SAR 15.8bn and SAR 10.1bn, respectively, followed by Saudi Aramco and SNB at SAR 9.2bn and SAR 6.6bn, respectively.

Elm was the best performing stock in February, recording an increase of 53.6%M/M. This was followed by Equipment House, which rose up 30.0%M/M. In contrast, Alaseel was the worst performing stock, posting a decline of 18.9%M/M, followed by Salama, down 17.9%M/M.

Dar Alarkan and Jouf Cement traded at the lowest P/B of 0.62x and 1.05x, respectively. This was followed by Northern Cement and SEERA and Northern Cement at 1.09x and 1.11x, respectively

15.3%

8.4% 8.1%

4.8% 3.7% 3.6% 3.4% 3.1% 2.7% 2.4%

Al Rajhi SNB Aramco SABIC STC Alinma Riyad Bank BSFR SABB MAADEN

ELM ALINMA BJAZ MAADEN RIBL

YTD (%) Tasi (YTD %)

11.6%

-25.0%

-15.0%

-5.0%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

BATIC CHUBB ALSAGR ACIG SADR

SAUDI ELECTRICITY Chemanol

ALYAMAMAH STEEL

Sipchem AXA COOPERATIVE Saudi Kayan Petro Rabigh

8.30 9.37 9.97 10.13

12.20 12.66 12.87 13.21 13.50 13.77

Bawan ASTRA INDUSTRIAL Nayifat

Top 10 Companies in Total Value Traded

Top/Worst Performing companies (February 2022)

Companies with the Lowest P/B

ALRAJHI ALINMA SABICSNB STC

SABIC AGRI- NUTRIENTS

ARAMCO

10.1 9.2

6.6 5.4 5.1 5.1

3.6 3.4 3.2 15.8

ELM DAR ALARKAN BJAZ

-15.6%

-17.1%

-17.2%

-17.9%

-18.9%

53.6%

30.0%

29.5%

23.5%

18.5%

ELM EQUIPMENT HOUSE TECO TAPRCO ALINMA

SAUDI CABLE SACO

SABB TAKAFUL SALAMA ALASEEL

DAR ALARKAN SEERA

Jouf Cement NORTHERN CEMENT SAIB Kingdom

HCC YSCC

0.62

1.05 1.09 1.11 1.16 1.19 1.21 1.23 1.25 1.26

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40

TCC Jazira Takaful

Source: Bloomberg, Aljazira Capital

Source: Argaam, Bloomberg, Aljazira Capital Research

Source: TADAWUL, Aljazira Capital

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• Among the other regional markets, Abu Dhabi and Dubai recorded increase of 7.1% and 4.7%, respectively. Kuwait and Qatar increased by 4.0%, 3.6%, respectively, while Egypt and Oman decreased by 3.1%, 1.5%.

Regional Markets

Market Close M/M YTD P/E

Dubai (DFM) 3,354.6 4.7% 5.0% 15.9

Abu Dhabi (ADX) 9,319.4 7.1% 9.8% 24.5

Kuwait (KSE) 6,291.0 4.0% 6.9% 15.2

Qatar (QE) 12,948.8 3.6% 11.4% 17.0

Oman (MSM) 4,055.4 -1.5% -1.8% 11.2

Egypt (EGX30) 11,138.9 -3.1% -6.8% 8.5

• Among major global indices, most markets ended in red. On M/M basis, S&P 500 and Dow Jones decreased by 3.1% and 3.5%, respectively; FTSE 100 decreased by 0.1%, as CAC 40 decreased by 4.9%.

International Markets

Global Indices Close M/M YTD P/E

Dow Jones 33,892.6 -3.5% -6.7% 18.0

Nasdaq 14,237.8 -4.6% -12.8% 32.3

S&P 500 4,373.9 -3.1% -8.2% 22.4

FTSE 100 7,458.3 -0.1% 1.0% 15.2

Germany DAX 30 14,461.0 -6.5% -9.0% 13.1

France CAC 40 6,658.8 -4.9% -6.9% 17.0

Japan Nikkei 225 26,526.8 -1.8% -7.9% 15.4

Russia MOEX 2,470.5 -30.0% -34.8% 4.6

• Russia MOEX posted losses of 30.0%

M/M among emerging markets.

Meanwhile, China shanghai compo and South Korea KOSPI posted gains of 3.0% and 1.3%.

Hong Kong Hang Seng 22,713.0 -4.6% -2.9% 8.8

South Korea KOSPI 2,699.2 1.3% -9.4% 11.8

China Shanghai Composite 3,462.3 3.0% -4.9% 14.9

Australia ASX 200 7,096.5 1.1% -5.3% 17.2

India Sensex 56,247.3 -3.0% -3.4% 24.2

MSCI EM 1,171.3 -3.1% -4.9% 12.8

MSCI World 2,978.0 -2.7% -7.9% 19.6

Source: Argaam, Bloomberg, Aljazira Capital

Commodities Performance

Commodity Name Price M/M Q/Q Y/Y YTD 3 Yrs 5 Yrs LOW_52WEEK HIGH_52WEEK

Light Crude ($/bbl) 99.9 9.6% 0.3% 55.5% 26.0% 45.1% 82.3% 60.9 102.6

Brent Crude ($/bbl) 101.0 10.7% -0.9% 52.7% 29.8% 53.0% 77.7% 60.3 105.8

Texas crude ($/bbl) 95.7 8.6% 0.2% 55.6% 27.3% 56.8% 78.2% 57.3 100.5

Natural Gas ($/mn Btu) 4.4 -9.7% -36.4% 58.9% 18.0% 101.1% 18.2% 2.4 7.3

GOLD ($/oz) 1,909 6.2% 4.1% 10.1% 4.4% 25.8% 66.4% 1,677 1,974.3

Silver ($/oz) 24.5 8.8% 5.1% -8.3% 4.9% 37.0% 53.5% 21.4 28.8

Steel ($/ton) 1,056 -9.4% -24.5% -16.5% -26.4% 79.6% 66.8% 970.0 1,945

Iron Ore (CNY/MT) 740 -10.4% -4.3% -42.6% 5.0% 3.3% 10.1% 511.0 1,423

Wheat ($/bu) 934.0 21.9% 4.7% 43.9% 20.6% 57.9% 64.7% 610.0 968.5

Corn ($/bu) 690.8 10.6% 8.4% 43.1% 16.1% 65.4% 69.3% 462.5 716.3

Sugar ($/lb) 17.7 -0.6% -5.9% 19.0% -4.8% 22.6% 21.2% 14.2 20.3

SMP (EUR/MT) 3,763 4.0% 21.0% 57.6% 11.8% 46.4% 72.5% 2,640 3,770

Oil prices rose in February. Brent crude and light crude increased by 10.7% and 9.6% M/M respectively. However, natural

gas posted losses of 9.7% M/M. Gold and Silver posted an increase by 6.2% and 8.8% M/M in February. Meanwhile, steel

posted losses of 9.4% M/M. Sugar decreased M/M by 0.6%.

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Economic Data

Macro Economic Data Q/Q Y/Y

GDP (Q3-21) 665.2bn SAR 9.22% 6.95%

Reserve Assets (Q3-21) 1707.64bn SAR -2.17% 0.38%

Public Debt (Q3-21) 948.3bn SAR 2.75% 11.85%

Public Debt/GDP (2020) 32.50% - -

Consumer Spending Jan-22 M/M Y/Y

ATM Withdrawals 49.7bn SAR 1.75% 1.78%

Point of Sales 43.55bn SAR -1.88% -1.85%

Total Spending (ATM & POS) 92.3bn SAR -0.98% -0.97%

No. of ATMs 16.55k 0.06% 0.06%

No. of ATM Transactions 125.88k -6.54% -6.14%

No. of POS Terminal 1050.89k 3.59% 3.73%

Inflation Rate (December-21) 1.2%

Repo Rate (March-20) 1.0%

1-Month 3-Months 6-Months 12-Months

Saudi Arabia (SAIBOR) 0.87 1.51 1.50 1.76

US (LIBOR) 0.24 0.50 0.80 1.29

Region Rate M/M (bps) YTD (bps) Y/Y (bps)

Saudi Arabia (SAIBOR-3M) 1.512 50.81 60.65 71.22

UAE (EIBOR-3M) 0.600 15.23 23.54 29.30

Qatar (QIBOR-3M) 1.150 2.50 2.50 11.50

Bahrain (BHIBOR-3M) 1.600 -2.50 8.33 -34.17

Source: Argaam, Bloomberg, Aljazira Capital

Deposit & Loans – January 22

Deposits and Loans posted losses of 0.6% M/M in January, while ADR stood at 99.3%.

Dollar Index edged up by 0.2% M/M at the end of February.

Euro and Sterling Pound declined against the US dollar by 0.1% and 0.2%, respectively, on M/M basis in February.

The Indian Rupee increased against the US dollar by 1.0%. Meanwhile, the Chinese Yuan increased against the US dollar by 0.8%.

POS fell 1.8%M/M in January to SAR 43.6bn, with the total number of transactions standing at 535.7mn.

99%

Deposits (bn) Loans (bn) ADR

82%84%

86%88%

90%92%

94%96%

98%100%

102%

0.00 0.50 1.00 1.50 2.00 2.50

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22

Point of Sale (POS)

Monthly change aginst the US Dollar (%)

Sales(bn) - LHS No. of Transactions (mn) - RHS 0.0 100.0 200.0 300.0 400.0 500.0 600.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0

Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22

Source: SAMA, Aljazira Capital Source: SAMA, Aljazira Capital

Exchange Rate

0.2%

0.8%

-0.1%

-0.2%

0.1%

1.0%

-3.0% -2.0% -1.0% 0.0% 1.0% 2.0%

Indian Rupee Japanese Yen Chinese Yuan

Sterling Pound Euro Dollar Index

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March 4, 2022

BHGE Baker Hughes US Rig Count report – weekly

March 7, 2022

Nahdi Medical End of IPO book-building process

ALBAHA Close of rights issue

BURUJ Ordinary general meeting

March 8, 2022

American Petroleum Institute The American Petroleum Institute (API) report on the US crude oil inventories - Weekly March 9, 2022

E.I.A EIA Report on US crude oil and petroleum inventories – Weekly

DMSCO Allocation date

SGS Ordinary general meeting

AMAK Start of IPO

March 10, 2022

SISCO Eligibility for Cash Dividend

ALBAHA End of subscription to new shares

March 11, 2022

AMAK End of IPO

March 13, 2022

Nahdi Medical Start of IPO

SRECO Ordinary general meeting

March 14, 2022

ALDREES Cash Dividend Distribution

MIS Cash dividend distribution

March 15, 2022

Nahdi Medical End of IPO

US Federal American Federal meeting

American Petroleum Institute The American Petroleum Institute (API) report on the US crude oil inventories - Weekly

OPEC OPEC monthly report

Fitaihi Group Ordinary general meeting

Jouf Cement Extraordinary general meeting

AMAK Final allocation date

March 16, 2022

US Federal American Federal meeting

IEA Reports

Saudi Ceramics Ordinary general meeting Herfy Foods Extraordinary general meeting March 17, 2022

STC Cash Dividend Distribution

AMAK Surplus refund date

March 18, 2022

BHGE Baker Hughes US Rig Count report - weekly

March 20, 2022

Nahdi Medical Final allocation date

A.Othaim Market Eligibility for Cash Dividend

Saudi Aramco Financial results

Advanced Extraordinary general meeting

Advanced Ex-bonus Date

March 22, 2022

Nahdi Medical Surplus refund date

QACCO Ordinary general meeting

March 25, 2022

March 27, 2022

SISCO Cash Dividend Distribution

March 28, 2022

SAMA SAMA monthly bulletin

March 29, 2022

ALASEEL Eligibility for Cash Dividend

A.Othaim Market Cash Dividend Distribution

March 31, 2022

RIYAD REIT Eligibility for Cash Dividend

TADAWUL GROUP results

Source: Argaam

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AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business.

1. Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target.

Stocks rated “Overweight” will typically provide an upside potential of over 10% from the current price levels over next twelve months.

2. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target.

Stocks rated “Underweight” would typically decline by over 10% from the current price levels over next twelve months.

3. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated “Neutral” is expected to stagnate within +/- 10% range from the current price levels over next twelve months.

4. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company.

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