Monthly Report Saudi Stock Market | September 2021

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AJC Research Team

Monthly Report

Saudi Stock Market | September 2021

2021

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TASI Movement in September

147.9bn, with an average daily value traded of SAR 7.04bn. The Materials and Banks sectors accounted for 39.2% of the total value traded. Materials and Commercial Service were the best performing sectors, showing an increase of 9.0%M/M and 6.4%M/M, respectively. The Pharma & Biotech and Insurance sectors were the worst performers, showing a decline of 11.8%M/M and 6.2%M/M, respectively. SABIC AGRI-NUTRIENTS was the best performing stock in September, recording 37.7%M/M growth. On the other hand, ALSAGR INSURANCE was the worst performing stock; posting a decline of 14.6%, M/M.

Saudi Electricity recorded the lowest P/E with 11.74x, compared to TASI’s P/E of 27.67x.

TASI started the month at 11,315.7 points and closed at 11,495.8 with an average daily value traded of SAR 7.04bn compared to SAR 6.64bn in August.

TASI rose YTD by 2,806.2 points (up 30.3%), and went up M/M by 176.6 points (up 1.6%M/M). Materials and Commercial Service sectors showed the highest M/M growth of 9.0%M/M and 6.4%M/M, respectively. On the other hand, Pharma & Bio Tech and Insurance were the worst performing sectors, recording a drop of 11.8%M/M and 6.2%M/M, respectively.

Materials and Banks registered the highest traded values among the sectors, accounting for 27.5% and 11.7%, respectively, of the total value traded in September.

2-Sep 3-Sep 4-Sep 5-Sep 8-Sep 9-Sep 10-Sep 11-Sep 12-Sep 15-Sep 16-Sep 17-Sep 18-Sep 19-Sep 22-Sep 23-Sep 24-Sep 25-Sep 26-Sep 29-Sep 30-Sep

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

11,100 11,200 11,300 11,400 11,500 11,600

Value Traded per Sector (%)

Materials Banks Insurance

Real Estate Mgmt & Dev't Capital Goods Food & Beverages Retailing

Consumer Durables & Apparel Energy

Software & Services Others

27.5%

11.7%

6.4% 4.3%

2.9%

3.0% 8.3%

3.7%

5.9%

1.3%

25.1%

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

Source: TADAWUL, Aljazira Capital

Sectors Performance

MoM Performance YTD

1.6% 2.8% 9.0% 6.4% -0.9% 0.2% 0.3% 0.9% 0.0% 0.2%

30.3% 2.9% 29.4% 38.5% 9.5% 31.1% 42.6% 20.5% 92.0% 30.3% 6.8% 45.7% 34.7% 46.3% 66.5% 20.5% 109.0% 22.3% 31.5% 16.1% 17.7%

-5.0%

15.0%

35.0%

55.0%

75.0%

95.0%

115.0%

TASI Energy Materials Capital Goods Commercial Service Transportation Consumer Durables Consumer Services Media Retailing Food & Staples Food & Beverages Healthcare Pharma & Bio Tech Banks Diversiﬁed Financials Insurance Software & Services Telecom Utilities REITs Real Estate-1.5% -0.9% -3.1% -1.3% -2.1% -0.9% -0.4% -1.3%

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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 September at 16.0%. Followed by SNB and Saudi Aramco at 7.7% and 7.3%, respectively.

Najran Cement and MUSHARAKA REIT had the largest dividend yields of 6.7% and 6.5%, respectively. The average dividend yield of the market stood at 1.8%.

Saudi Electricity and ALETIHAD traded at the lowest P/E of 11.74x and 11.86x, respectively. This was followed by SAIB and ARDCO at 12.13x and 12.45x, respectively.

*prices as of 3^rd of October 2021

SABIC and Al Rajhi Bank had the highest total value traded in September at SAR 6.47bn and SAR 5.98bn, respectively.

Followed by Saudi Aramco and Saudi Kayan at SAR 4.82bn and SAR 4.23bn, respectively

SABIC AGRI-NUTRIENTS was the best performing stock in September, recording an increase of 37.7%M/M. This was followed by Sipchem, which went up 29.6%M/M. In contrast, ALSAGR INSURANCE was the worst performing stock, recording a decline of 14.6%M/M, followed by SPIMACO, down 12.5%M/M.

DAR ALARKAN and SAIB traded at the lowest P/B of 0.58x and 0.94x, respectively. This was followed by ANB and SEERA at 1.14x and 1.18x, respectively.

16.0%

7.7% 7.3% 6.5%

4.2% 2.8% 2.6% 2.5% 2.5% 2.1%

0.0%2.0%

4.0%6.0%

10.0%8.0%

12.0%

14.0%

16.0%

18.0%

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

Dividend Yield Average market dividend yield 6.7% 6.5% 6.4%

5.6% 5.6% 5.4% 5.4% 5.4% 5.3% 5.2%

1.8%

0.0%1.0%

2.0%3.0%

4.0%5.0%

6.0%7.0%

8.0%

Najran Cement MUSHARAKA REIT SPCC Saudi Cement City Cement ACC YCC QACCO A.Othaim Market Maharah

11.74 11.86 12.13 12.45 12.54 12.54

14.49 15.27 15.51 16.04

SAUDI ELECTRICITY ALETIHAD SAIB ARDCO AXA COOPERATIVE ALYAMAMAH STEEL UACC Budget Saudi Jadwa REIT Saudi RIBL

Top 10 Companies in Total Value Traded

Top/Worst Performing Companies

Companies with the Lowest P/B

6.47 5.98

4.82 4.23

3.60 3.33 3.07 2.92 2.79 2.69

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00

SABIC ALRAJHI SAUDI ARAMCO SAUDI KAYAN ALINMA SIPCHEM STC TECO SNB TASNEE

37.74%

29.6%

25.1%

23.3%

17.8%

-14.6%

-12.5%

-12.2%

-11.6%

-11.0%

SABIC AGRI-NUTRIENTS Sipchem Chemanol Naseej Sadr

ALSAGR INSURANCE SPIMACO

SHAKER ARDCO TCC

0.58

0.94 1.14 1.18 1.21 1.23 1.27 1.28 1.32 1.37

DAR ALARKAN SAIB ANB SEERA Kingdom Jouf Cement BJAZ SABB NORTHERN CEMENT Taiba

Source: Bloomberg, Aljazira Capital

Source: Argaam, Bloomberg, Aljazira Capital Research

Source: Argaam, Aljazira Capital

Source: TADAWUL, Aljazira Capital

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• Among other regional markets, Qatar, Kuwait and Abu Dhabi grew 3.5%, 2.0% and 0.2%, respectively, Egypt, Dubai and Oman fell 5.6%, 2.0% and 0.6%, respectively.

Regional Markets

Market Close M/M YTD P/E

Dubai (DFM) 2,845 -2.0% 14.2% 20.9

Abu Dhabi (ADX) 7,699 0.2% 52.6% 23.9

Kuwait (KSE) 5,619 2.0% 23.4% 54.4

Qatar (QE) 11,485 3.5% 10.1% 17.5

Oman (MSM) 3,943 -0.6% 7.8% 11.7

Egypt (EGX30) 10,517 -5.6% -3.0% 9.2

• Among major global indices, S&P 500 and Dow Jones decreased by 4.8% and 4.3%, respectively. CAC and FTSE 100 fell by 2.4% and 0.5%, respectively.

International Markets

Global Indices Close M/M YTD P/E

Dow Jones 33,844 -4.3% 10.6% 20.7

Nasdaq 14,690 -5.7% 14.0% 34.5

S&P 500 4,308 -4.8% 14.7% 26.1

FTSE 100 7,086 -0.5% 9.7% 19.5

Germany DAX 30 15,261 -3.6% 11.2% 18.2

France CAC 40 6,520 -2.4% 17.4% 22.2

Japan Nikkei 225 29,453 4.9% 7.3% 16.8

Russia MOEX 4,079 4.1% 24.0% 9.3

• Russia MOEX posted the highest gains 4.1% among emerging markets, followed by India Sensex at 2.7%.

Hong Kong Hang Seng 24,576 -5.0% -9.8% 10.1

South Korea KOSPI 3,069 -4.1% 6.8% 16.0

China Shanghai Composite 3,568 0.7% 2.7% 15.2

Australia ASX 200 7,332 -2.7% 11.3% 24.1

India Sensex 59,126 2.7% 23.5% 30.4

MSCI EM 1,253 -4.2% -3.0% 15.5

MSCI World 3,007 -4.3% 11.8% 23.5

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) 78.97 9.4% 4.7% 95.8% 58.2% -3.3% 78.4% 35.4 80.2

Brent Crude ($/bbl) 78.77 7.6% 2.9% 91.7% 51.6% -5.1% 60.0% 35.7 80.8

Texas crude ($/bbl) 75.05 9.5% 1.5% 86.5% 54.6% 2.4% 55.5% 33.6 77.0

Natural Gas 5.59 34.0% 49.9% 132.2% 131.1% 95.0% 101.9% 2.2 6.3

GOLD ($/oz) 1730.47 -3.1% -3.2% -6.8% -7.5% 47.5% 33.5% 1,677 1,966

Silver ($/oz) 21.65 -7.2% -13.0% -4.6% -16.0% 51.3% 15.6% 21.4 30.1

Steel ($/ton) 1900.00 -2.3% 0.6% 208.9% 89.1% 125.9% 283.1% 622.0 1,945

Iron Ore (CNY/MT) 715.00 -23.4% -30.7% -25.6% -33.7% 41.4% 61.2% 631.0 1,423

Wheat ($/bu) 714.00 0.4% 1.8% 21.7% 13.9% 27.9% 27.9% 584.0 786.5

Corn ($/bu) 540.50 0.5% -1.6% 37.1% 23.5% 28.1% 31.0% 381.0 638.0

Sugar ($/lb) 19.73 -1.0% 10.4% 56.8% 42.5% 32.8% 32.8% 12.8 20.9

SMP (EUR/MT) 2780.00 8.6% 13.0% 28.5% 24.9% 76.2% 31.9% 2,175 2,640

Oil prices grow significantly in September. Light crude and Brent crude increased 9.4% and 7.6% M/M respectively. Moreover, natural

gas continued the strong performance posting gain of 34.0% M/M, while gold declined 3.1% M/M. Silver, Steel and Sugar prices fell

7.2%, 2.3% and 1.0% M/M respectively in September.

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Economic Data

Macro Economic Data Q/Q Y/Y

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

Reserve Assets (Q2-21) 1672.3bn SAR -0.67% -0.33%

Public Debt (Q2-21) 922.9bn SAR 2.39% 12.56%

Public Debt/GDP (2020) 32.50% 0 -

Consumer Spending Aug-21 M/M Y/Y

ATM Withdrawals 46.81bn SAR -3.05% -2.67%

Point of Sales 40.94bn SAR 5.11% 23.91%

Total Spending (ATM & POS) 87.78bn SAR 0.79% 9.76%

No. of ATMs 16.83k -0.30% -10.87%

No. of ATM Transactions 131.97k 0.63% -7.81%

No. of POS Terminal 879.52k 2.29% 34.06%

Inflation Rate (August-21) 0.3%

Repo Rate (March-20) 1.0%

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

Saudi Arabia (SAIBOR) 0.65 0.81 0.86 0.93

US (LIBOR) 0.08 0.13 0.16 0.24

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

Saudi Arabia (SAIBOR-3M) 0.809 1.29 -0.9 -6.0

UAE (EIBOR-3M) 0.324 -3.76 -18.8 -16.3

Qatar (QIBOR-3M) 1.150 13.13 2.9 21.5

Bahrain (BHIBOR-3M) 1.550 -2.50 -70.0 -73.3

Source: Argaam, Bloomberg, Aljazira Capital

Deposit & Loans – August 21

Deposits recorded a decline of 0.4% M/M in August.

However, Loans recorded an increase of 0.8% M/M, while ADR increased to 97.4%.

Dollar Index edged up by 1.7% M/M at the end of September.

The Sterling Pound and Euro declined against the US dollar by 2.0% and 1.9% respectively, on M/M basis in September. The Indian rupee and Chinese Yuan increased against the US dollar by 1.7% and 0.2%, respectively.

Meanwhile the Japanese Yen decreased by 1.1%.

POS went up 5.5%M/M in August to SAR 41.0bn, with the total number of transactions standing at 465.8mn (up 3.8%M/M).

Deposits (bn) Loans (bn) ADR

97%

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

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

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

Exchange Rate

Japanese Yen Sterling Pound -1.9% Euro

-2.0%

-1.1%

1.7%

0.2%

1.7%

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

Indian Rupee Chinese Yuan

Dollar Index

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Company Event

October 1, 2021

Saudi Exchange Start of Q3 2021 earnings season

BHGE Baker Hughes US Rig Count report - weekly

ACWA Power Close of retail offering

October 3, 2021

Najran Cement Eligibility for Cash Dividend

SABIC Cash Dividend Distribution

HCC Ordinary general meeting

TAPRCO Ordinary general assembly meeting

October 4, 2021

SASCO Cash Dividend Distribution

ACWA Power Allocation Date

October 5, 2021

ABO MOATI Cash Dividend Distribution

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

ACWA Power Surplus refund date

BAHRI Eligibility for Cash Dividend

October 6, 2021

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

Theeb Cash Dividend Distribution

October 7, 2021

Jadwa REIT Saudi End of subscription to increase the total value of the fund’s assets October 8, 2021

October 12, 2021

Naseej IPO

American Petroleum Institute The American Petroleum Institute (API) report on the US crude oil inventories - Weekly Naseej Extra-Ordinary general assembly meeting (capital hike)

Thimar Extra-Ordinary general assembly meeting

October 13, 2021

OPEC Reports

E.I.A EIA Report on US Crude oil and petroleum inventories – Weekly AYYAN Extra-Ordinary general assembly meeting (capital hike)

HB Ordinary general meeting

SAUDI CABLE Ordinary general assembly meeting

October 14, 2021

E.I.A reports

Dallah Health Cash Dividend Distribution

FITNESS TIME Ordinary general assembly meeting

October 15, 2021

October 19, 2021

American Petroleum Institute The American Petroleum Institute (API) report on the US crude oil inventories - Weekly October 20, 2021

E.I.A EIA Report on US Crude oil and petroleum inventories – Weekly Petro Rabigh Ordinary general assembly meeting

October 22, 2021

October 25, 2021

BAHRI Cash Dividend Distribution

October 26, 2021

American Petroleum Institute The American Petroleum Institute (API) report on the US crude oil inventories - Weekly October 27, 2021

E.I.A EIA Report on US Crude oil and petroleum inventories – Weekly October 28, 2021

SAMA SAMA monthly bulletin

October 29, 2021

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Asset Management

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Brokerage

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Corporate Finance

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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.

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