Monthly Report Saudi Stock Market | October 2021

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AJC Research Team

Monthly Report

Saudi Stock Market | October 2021

2021

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TASI Movement in October

156.5bn, with an average daily value traded of SAR 7.5bn. The Materials and Banks sectors accounted for 41.2% of the total value traded. Banks and Utilities were the best performing sectors, showing an increase of 8.2%M/M and 7.3%M/M, respectively. The Pharma & Biotech and Consumer Durables sectors were the worst performers, showing a decline of 8.5%M/M and 8.2%M/M, respectively. ACWA POWER was the best performing stock in October, recording 30.4%M/M growth. On the other hand, SISCO was the worst performing stock; posting a decline of 17.4%, M/M. Sipchem recorded the lowest P/E with 11.24x, compared to TASI’s P/E of 25.17x.

TASI started the month at 11,453.3 points and closed at 11,704.1 with an average daily value traded of SAR 7.5bn compared to SAR 7.04bn in September.

TASI rose YTD by 3,014.6 points (up 32.3%), and went up M/M by 208.4 points (up 1.8%M/M). Banks and Utilities sectors showed the highest M/M growth of 8.2%M/M and 7.3%M/M, respectively. On the other hand, Pharma

& Bio Tech and Consumer Durables were the worst performing sectors, recording a drop of 8.5%M/M and 8.2%M/M, respectively.

Materials and Banks registered the highest traded values among the sectors, accounting for 27.0% and 14.2%, respectively, of the total value traded in October.

2-Oct 3-Oct 4-Oct 5-Oct 8-Oct 9-Oct 10-Oct 11-Oct 12-Oct 15-Oct 16-Oct 17-Oct 18-Oct 19-Oct 22-Oct 23-Oct 24-Oct 25-Oct 26-Oct 29-Oct 31-Oct30-Oct

Value Traded (bn) - RHS Closing Price - LHS 0.00 2.00 4.00 6.00 8.00 10.00 12.00

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

Value Traded per Sector (%)

Materials Banks Energy Utilities

Consumer Services Software & Services Real Estate Mgmt & Dev't Food & Beverages Insurance

Telecommunication Services Others

27.0%

14.2%

7.3% 8.5%

4.8%

4.1%

4.0%3.7%

16.9%

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

Source: TADAWUL, Aljazira Capital

Sectors Performance

M/M Performance YTD

-7.4%4.6%5.8%13.0%15.7%16.1%16.2%16.5%18.8%20.7%26.4%30.0%31.8%32.3%36.4%38.0%41.1%41.3%47.5% 66.6% 92.6% 107.2%

-8.0% 12.0% 32.0% 52.0% 72.0% 92.0% 112.0%

Food & Staples Food & BeveragesReal EstateInsuranceTelecomEnergyREITs Commercial ServicePharma & Bio TechConsumer ServicesTransportationCapital GoodsHealthcareMaterialsRetailingUtilitiesTASI Consumer DurablesBanks Diversified FinancialsSoftware & ServicesMedia

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Top 10 Companies by Index Weight

Top 10 Highest Dividend Yield

Companies with the Lowest P/E

Al Rajhi Bank had the highest weight in TASI at the end of October at 17.8%. Followed by SNB and Saudi Aramco at 8.4% and 7.8%, respectively.

Najran Cement and SPCC had the largest dividend yields of 7.9% and 6.7%, respectively. The average dividend yield of the market stood at 2.2%.

Sipchem and ALETIHAD traded at the lowest P/E of 11.24x and 11.39 x, respectively. This was followed by ARDCO and ALYAMAMAH STEEL at 11.58x and 11.83x, respectively

*prices as of 1^st of November 2021

Al Rajhi Bank and ACWA POWER had the highest total value traded in October at SAR 8.8bn and SAR 8.1bn, respectively.

Followed by Saudi Aramco and Saudi Kayan at SAR 7.1bn and SAR 5.9bn, respectively.

ACWA POWER was the best performing stock in October, recording an increase of 30.4%M/M. This was followed by Al- Rajhi, which went up 13.4%M/M. In contrast, SISCO was the worst performing stock, recording a decline of 17.4%M/M, followed by TANMIAH, down 16.6%M/M.

DAR ALARKAN and SAIB traded at the lowest P/B of 0.56x and 0.91x, respectively. This was followed by ANB and BJAZ at 1.12 x and 1.14x, respectively.

Al Rajhi SNB SAUDI ARAMCO SABIC STC Riyad Bank Banque Saudi Fransi

Alinma Bank SABB Almarai

17.8%

8.4% 7.8%

4.9% 3.2% 2.9% 2.6% 2.6% 2.4% 1.9%

0.0%2.0%

4.0%6.0%

10.0%8.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Dividend Yield Average market dividend yield

Najran Cement SPCC MUSHARAKA REIT Saudi Cement ACC BAHRI QACCO EPCCO DERAYAH REIT Kingdom

7.9% 6.7% 6.5%

5.9% 5.8% 5.5% 5.5% 5.2% 5.2% 4.8%

2.2%

0.0%1.0%

2.0%3.0%

4.0%5.0%

6.0%7.0%

8.0%9.0%

11.24 11.39 11.58 11.83 12.43 12.67 12.90 14.19 14.43 14.45

Sipchem ALETIHAD ARDCO ALYAMAMAH STEEL AXA COOPERATIVE SAUDI ELECTRICITY SAIB Saudi Kayan Petro Rabigh TASNEE

Top 10 Companies in Total Value Traded

Top/Worst Performing Companies

Companies with the Lowest P/B

8.8 8.1 7.1

5.9 5.8 5.8 5.3

4.2 4.1 3.8

0.01.0 2.03.0 4.05.0 6.07.0 8.0 10.09.0

ALRAJHI ACWA POWER SAUDI ARAMCO SAUDI KAYAN SOLUTIONS SABIC SIPCHEM TASNEE PETRO RABIGH SEERA

37.74 13.4%

11.7%

11.5%

10.5%

-17.4%

-16.6%

-16.4%

-16.3%

-15.3%

ACWA POWER ALRAJHI DUR CHUBB ALHAMMADI

SISCO TANMIAH ATHEEB TELECOM NAJRAN CEMENT NASEEJ

NORTHERN CEMENT

0.56

0.91 1.12 1.14 1.17 1.18 1.21 1.22 1.25 1.28

DAR ALARKAN SAIB ANB BJAZ Kingdom Jouf Cement SEERA HCC SABB

Source: Bloomberg, Aljazira Capital

Source: Argaam, Bloomberg, Aljazira Capital Research

Source: TADAWUL, Aljazira Capital

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• Among other regional markets, Egypt, Kuwait and Oman grew 8.6%, 6.4%

and 3.4%, respectively, Qatar, Abu Dhabi and Dubai grew 2.4%, 2.2%

and 0.7%, respectively.

Regional Markets

Market Close M/M YTD P/E

Dubai (DFM) 2,864 0.7% 14.9% 20.6

Abu Dhabi (ADX) 7,865 2.2% 55.9% 23.1

Kuwait (KSE) 5,978 6.4% 31.3% 65.0

Qatar (QE) 11,765 2.4% 12.7% 16.4

Oman (MSM) 4,075 3.4% 11.4% 11.0

Egypt (EGX30) 11,420 8.6% 5.3% 9.9

• Among major global indices, S&P 500 and Dow Jones increased by 6.9% and 5.8%, respectively. South Korea KOSPI and Japan Nikkei 225 fell by 3.2% and 1.9%, respectively.

International Markets

Global Indices Close M/M YTD P/E

Dow Jones 35,820 5.8% 17.0% 20.2

Nasdaq 15,850 7.9% 23.0% 35.4

S&P 500 4,605 6.9% 22.6% 25.9

FTSE 100 7,238 2.1% 12.0% 19.3

Germany DAX 30 15,689 2.8% 14.4% 17.9

France CAC 40 6,830 4.8% 23.0% 21.3

Japan Nikkei 225 29,647 -1.9% 5.3% 16.8

Russia MOEX 4,150 1.1% 26.2% 9.0

• Russia MOEX posted the highest gains 1.1% among emerging markets, followed by India Sensex at 0.3%.

Hong Kong Hang Seng 25,377 3.3% -6.8% 10.2

South Korea KOSPI 2,979 -3.2% 3.4% 14.5

China Shanghai Composite 3,544 -0.6% 2.1% 15.0

Australia ASX 200 7,371 -0.1% 11.2% 24.0

India Sensex 59,307 0.3% 23.9% 29.3

MSCI EM 1,265 0.9% -2.1% 14.8

MSCI World 3,175 5.6% 18.0% 23.6

Source: Argaam, Bloomberg, Aljazira Capital

Commodities Performance

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

Light Crude ($/bbl) 83.89 6.2% 68.1% 34.4% 83.3% 35.4 85.3 80.2

Brent Crude ($/bbl) 84.38 7.5% 62.9% 40.1% 74.7% 35.7 86.7 80.8

Texas crude ($/bbl) 83.57 11.4% 72.2% 54.2% 78.3% 33.6 85.4 77.0

Natural Gas 5.43 -7.5% 113.7% 106.1% 79.3% 2.2 6.5 6.3

GOLD ($/oz) 1783.38 1.5% -6.1% 17.9% 39.6% 1,677 1,966 1,966

Silver ($/oz) 23.90 7.8% -9.5% 32.0% 33.5% 21.4 30.1 30.1

Steel ($/ton) 1803.00 -5.1% 79.4% 262.0% 266.5% 700.0 1,945 1,945

Iron Ore (CNY/MT) 641.50 -10.3% -40.5% -4.8% 31.7% 607.0 1,423 1,423

Wheat ($/bu) 772.75 6.5% 21.4% 38.6% 36.2% 584.5 786.5 786.5

Corn ($/bu) 568.25 5.9% 30.7% 37.3% 38.7% 383.8 638.0 638.0

Sugar ($/lb) 19.27 -5.3% 35.0% 36.0% 25.8% 12.9 20.9 20.9

SMP (EUR/MT) 3010.00 8.3% 35.3% 23.5% 45.9% 2,175 2,640 2,640

Oil prices grow significantly in October. Brent crude and Light crude increased 7.5% and 6.2% M/M respectively. Moreover, natural

gas fell by 7.5% M/M, while gold increased 1.5% M/M. Silver prices increased by 7.8% M/M. Sugar and Steel prices fell by 5.3%,

5.1% M/M respectively in October.

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Economic Data

Macro Economic Data Q/Q Y/Y

GDP (Q2-21) 735bn SAR 4.05% 30.27%

Reserve Assets (Q3-21) 1745.6bn SAR 4.38% 4.00%

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

Public Debt/GDP (2020) 32.50% - -

Consumer Spending Sep-21 M/M Y/Y

ATM Withdrawals 45.69bn SAR -2.45% -16.06%

Point of Sales 40bn SAR -2.43% 16.98%

Total Spending (ATM & POS) 85.69bn SAR -2.44% -0.64%

No. of ATMs 16.82k -0.06% -10.70%

No. of ATM Transactions 129.21k -2.14% -15.36%

No. of POS Terminal 899.66k 2.24% 31.72%

Inflation Rate (September-21) 0.6%

Repo Rate (March-20) 1.0%

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

Saudi Arabia (SAIBOR) 0.66 0.83 0.88 0.95

US (LIBOR) 0.09 0.13 0.20 0.36

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

Saudi Arabia (SAIBOR-3M) 0.829 2.00 1.1 -1.8

UAE (EIBOR-3M) 0.305 -1.89 -20.7 -9.0

Qatar (QIBOR-3M) 1.159 0.94 3.9 39.3

Bahrain (BHIBOR-3M) 1.500 -2.50 -75.0 -78.3

Source: Argaam, Bloomberg, Aljazira Capital

Deposit & Loans – September 21

Deposits and Loans recorded growth of 1.3% M/M in September, while ADR increased to 97.6%.

Dollar Index fell by 0.1% M/M at the end of October. The Sterling Pound and Indian Rupee increased against the US dollar by 1.5% and 0.9% respectively, on M/M basis in October. The Japanese Yen and Euro decreased against the US dollar by 2.4% and 0.2%, respectively. Meanwhile the Chinese Yuan increased by 0.6%.

POS fell by 2.4%M/M in September to SAR 40.0bn, with the total number of transactions standing at 468.9mn (up 0.66%M/M).

Deposits (bn) Loans (bn) ADR

97.6%

82%84%

86%88%

90%92%

94%96%

98%100%

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

Point of Sale (POS)

Monthly change aginst the US Dollar (%)

Sales(bn) - LHS No. of Transactions (mn) - RHS 0.050.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 500.0

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

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

Exchange Rate

%0.9 -%2.4

%0.6

%1.5 -%0.2

-%0.1

-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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Company Event

November 1, 2021

ALBILAD SUKUK Eligibility for Cash Dividend November 2, 2021

US Federal U.S. Federal Reserve meeting

American Petroleum Institute The American Petroleum Institute (API) report on the US crude oil inventories - Weekly November 3, 2021

ALKHALEEJ TRNG Eligibility for subscription to rights issue

US Federal U.S. Federal Reserve meeting

E.I.A EIA Report on US Crude oil and petroleum inventories – Weekly MEDGULF Eligibility for subscription to rights issue

SISCO Eligibility for Cash Dividend

SISCO Ordinary general meeting

MEDGULF Extraordinary general meeting (capital hike) ALKHALEEJ TRNG Extraordinary general meeting (capital hike) November 4, 2021

Arabian Contracting Services Co. Final allocation date Arabian Contracting Services Co. Surplus refund date

ALUJAIN Eligibility for Cash Dividend

Saudi Aramco Eligibility for Cash Dividend

OPEC OPEC + meeting

Chemanol A special meeting to review the company’s performance during and post-COVID-19 pandemic Naseej Extraordinary general meeting (capital hike)

Naseej Eligibility for subscription to rights issue

BUPA ARABIA Extraordinary general meeting

BHGE Baker Hughes US Rig Count report - weekly

ATAA Eligibility for Cash Dividend

ATAA Ordinary general meeting

Nayifat Start of offering

OASIS Ordinary general meeting

Nayifat Close of retail offering

BINDAWOOD Judicial hearing

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

AICC Eligibility for Cash Dividend

AYYAN Extraordinary general meeting (capital hike) AICC Extraordinary general meeting (capital hike)

Chemanol Ordinary general meeting

November 10, 2021

E.I.A EIA Report on US Crude oil and petroleum inventories – Weekly ALKHABEER REIT Eligibility for Cash Dividend

HCC Ordinary general meeting

November 11, 2021

Advanced Eligibility for Cash Dividend

OPEC reports

Saudi Exchange results

November 12, 2021

November 13, 2021

Nayifat Allocation date

November 14, 2021

DERAYAH REIT Cash Dividend Distribution

November 15, 2021

SULAIMAN ALHABIB Cash Dividend Distribution

BJAZ Ordinary general meeting

SADAFCO Extraordinary general meeting

Nayifat Surplus refund date

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November 16, 2021

IEA reports

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

ALALAMIYA Ordinary general meeting

November 17, 2021

E.I.A EIA Report on US Crude oil and petroleum inventories – Weekly November 18, 2021

ALUJAIN Cash Dividend Distribution

STC Cash Dividend Distribution

November 19, 2021

November 21, 2021

Advanced Cash Dividend Distribution

November 22, 2021

Saudi Aramco Cash Dividend Distribution

ANAAM HOLDING Ordinary general meeting

November 23, 2021

Maadaniyah Eligibility

American Petroleum Institute The American Petroleum Institute (API) report on the US crude oil inventories - Weekly Maadaniyah Extraordinary general meeting (capital reduction)

Wafa Insurance Ordinary general meeting November 24, 2021

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

Saudi Cement Ordinary general meeting

November 26, 2021

November 28, 2021

SAMA SAMA monthly bulletin

November 30, 2021

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

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Asset Management

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Corporate Finance

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