Crude oil prices also witnessed a pullback rally this week as Brent

closed at USD 34 per barrels levels. Separately, the meeting

between oil ministers of Saudi Arabia and Russia ended as a non-

event for the market.

Their decision to freeze production at record levels along with the

condition that other producers should co-operate, is clearly not

going to improve the supply situation going forward. The first

market reaction to this news was a decline in oil price. Saudi Ara-

bia has repeatedly indicated no interest in cutting oil output; ex-

pectations for future reduction will only lead to disappointments!

Tadawul All Share Index (TASI) started the week on a negative

note but capitalized from the second trading day to register a gain

of 3.9% for the week and close at 5,884 points. The market rally

was aided by recovery in global markets even as Standard &

Poor’s lowered Saudi Arabia’s sovereign rating. S&P cut Saudi

Arabia’s long-term foreign currency rating by two notches from

‘A+’ to ‘A–’.

All the regional indices saw upward momentum during the week.

Qatar reported the highest gain of 5.1% followed by Saudi Arabia

(+3.9%) and Dubai (+3.7%).

Saudi Arabia and Russia agree for oil freeze TASI surges 3.9% to close at 5,884 points

135

31 5 171

0

50

100

150

200

Gainers Losers No change Total No. of

Companies5,355 5,181 6,417 5,625 6,279

5,558

5,6915,740

5,802

5,884

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

14-Feb-16 15-Feb-16 16-Feb-16 17-Feb-16 18-Feb-16

5,300

5,400

5,500

5,600

5,700

5,800

5,900

6,000

Total Turnover (SAR Mn) TASI Close (RHS)

TASI CLOSE & MARKET TURNOVER TRADING STATISTICS

Saudi market breadth was positive with 135 gaining

stocks as against 31losers

“If other producers want to limit or agree to a freeze in terms of additional production

that may have an impact on the market but Saudi Arabia is not prepared to cut

production”

- Mr. Adel al-Jubeir, Saudi Arabian Foreign Minister

Week Ending

Feb 18, 2016

Sau

di S

to

ck M

arket

Weekly U

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ate

The sector indices reversed its last week trend with all the 15 sector indices clos-

ing in Green. Index heavyweight Petrochemical industries gained 8.9% and was

the top gaining index. This was followed by Industrial Investment (+6.3%) and

Multi-Investment (+4.8%). Another index heavyweight Banks gained 2.7% during

the week.

Note: Weekly returns are calculated considering Friday to Thursday week. Numbers indicate weekly returns and index closing values.

Banks continue to be the top traded sector by contributing 24.0% to the total

volume and 20.1% to the total value. Petrochemicals stood second with 12.6%

contribution to the volume and 17.7% contribution to the total value.

Index Open Close WTD

(%) YTD (%)

Total Volume

(Mn)

Total Turnover (SAR Mn)

No. of Trades

TASI 5,661 5,884 3.9% -14.9% 1,634 28,856 733,057

Banks & Financial Services 13,411 13,772 2.7% -11.6% 392 5,809 53,227

Petrochemical Industries 3,393 3,696 8.9% -13.5% 206 5,107 65,336

Cement 4,088 4,203 2.8% -7.5% 60 974 26,684

Retail 9,230 9,539 3.4% -24.0% 47 1,431 51,133

Energy & Utilities 4,994 5,197 4.1% -9.2% 7 104 1,876

Agriculture & Food Industries 6,894 7,155 3.8% -21.6% 65 1,385 53,112

Telecom & IT 1,397 1,424 1.9% -12.2% 42 369 10,517

Insurance 960 995 3.7% -20.0% 188 2,853 139,402

Multi-Investment 2,380 2,496 4.8% -24.4% 21 332 14,440

Industrial Investment 5,293 5,626 6.3% -12.5% 83 1,893 60,921

Building & Construction 1,688 1,765 4.6% -23.2% 82 1,045 43,741

Real Estate Development 4,998 5,121 2.5% -14.1% 307 3,395 82,861

Transport 5,832 6,054 3.8% -22.2% 29 855 22,437

Media and Publishing 2,645 2,731 3.3% -21.1% 70 2,125 74,310

Hotel & Tourism 9,464 9,435 -0.3% -43.9% 34 1,180 33,060

GLOBAL INDICES – WEEKLY RETURNS

SAUDI – SECTOR INDICES “All the 15 indices closed the week in Green”

8.1%,

9,4647.9%,

5,972

5.1%,

1,5444.9%,

1,918

4.8%,

16,4134.7%,

7463.6%,

2,863 3.1%,

16,197

5.1%,

9,9673.9%,

5,8843.7%,

3,0933.5%,

4,213

1.2%,

5,419 0.5%,

1,1720.2%,

5,141

DA

X

FT

SE

100

MS

CI

Wor

ld

S&

P 5

00

DJI

A

MS

CI

EM

SSE

Nik

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tar

Sau

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Ab

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Bah

rain

Ku

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National Metal Manufacturing and Casting Co. surged 26.2% for the week and was the

largest gainer. It closed at SAR 23.95 and has curtailed its YTD loss to 6.5% . The other top

gainers were Saudi Industrial Export Co.(+13.7%) and Saudi International Petrochemical

Co. (+19.7%).

Saudi Enaya Cooperative Insurance Co. declined 15.0% and led the losers table. This was

followed by Saudi Chemical Co. (-7.3%) and National Medical Care Co. (-6.5%)

TOP GAINERS TOP LOSERS

Company Close WTD

(%) YTD (%)

Value Traded

(SAR Mn)

Maadaniyah 23.95 26.2% -6.5% 154

SIECO 45.01 24.8% 13.7% 378

Sipchem 12.35 19.7% -11.9% 91

YANSAB 31.73 19.2% -2.1% 151

Dur 24.35 18.8% -9.0% 43

SABIC, the gulf’s largest company gained 10.56% during the week and clocked a turnover of SAR 3.69bn. SABIC has lost 7.91% during the

year and closed at SAR 70.45.

Top Gainer

National Metal

Manufacturing and

Casting Co.

(+26.2%)

Top Loser

Saudi Enaya

Cooperative

Insurance Co.

(-15.0%)

THE LIQUIDITY PLAY (VOLUME – VALUE TREND)

Week 0 Week 1 Week 2 Week 3

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

18/F

eb17

/Feb

16/F

eb15

/Feb

14/F

eb

11/F

eb10

/Feb

09/F

eb08

/Feb

07/F

eb

04/F

eb03

/Feb

02/F

eb01

/Feb

31/J

an

28/J

an27

/Jan

26/J

an25

/Jan

24/J

an

0

50

100

150

200

250

300

350

400

450

18/F

eb17

/Feb

16/F

eb15

/Feb

14/F

eb

11/F

eb10

/Feb

09/F

eb08

/Feb

07/F

eb

04/F

eb03

/Feb

02/F

eb01

/Feb

31/J

an

28/J

an27

/Jan

26/J

an25

/Jan

24/J

an

Market activity marginally increased during the week with 1,634mn shares (1,576mn and 1,729mn shares in the preceding two weeks)

being traded. The turnover also increased to SAR 28.9bn vis-a-vis SAR 28.5bn and SAR 30.6bn in the preceding two weeks.

TASI WEEKLY TURNOVER TREND (SAR MN) TASI WEEKLY VOLUME TREND (MN)

Company Close WTD

(%) YTD (%)

Value Traded

(SAR Mn)

Enaya 9.52 -15.0% -42.7% 117

Chemical 41.97 -7.3% -26.8% 85

Care 41.55 -6.5% -25.1% 260

Almarai 62.31 -6.3% -20.4% 119

AlAbdullatif 16.3 -6.1% -45.6% 168

THIS WEEK’S WINNERS & LOSERS

Week 0 Week 1 Week 2 Week 3

Saudi Arabian Monetary Agency (SAMA) has reportedly eased restrictions on bank lending in an attempt to stimulate

growth. SAMA has told banks that they can lend up to 90% of their deposits, up from the limit of 85%.

Saudi Arabia reportedly plans to start issuing floating-rate bonds to encourage local banks to buy its debt. Since last

August, the government has been issuing SAR 20bn of domestic bonds to banks every month to finance the deficit.

Al Tayyar Travel Group said it has acquired a 33.3% in Jumia Middle East which owns the online e-commerce website

Wadi.com, for EUR 30mn.

Jabal Omar Development Co.’s board of directors recommended converting the firm into a holding company that

would be licensed to acquire current and future projects, adding that the conversion would be part of a new ten-year

strategy. Separately, Jabal Omar Development Co. signed an agreement with Saudi Arabia’s finance ministry to post-

pone payments on a SAR 3bn loan, the developer said.

Southern Province Cement Co. expects to complete the second production line at Bisha cement plant by June 30, the

company said.

Al Hokair Group for Tourism & Development Co. has awarded a SAR 25mn contract to build the Park Inn Jubail hotel to

Saudi Arabia-based Omar Khalil Arnaout Contracting Establishment.

National Agricultural Development Co. (NADEC) has completed the first phase of its seventh cattle farm in the Saudi

village of Haradh, and is expected to reach full capacity within Q1-2016.

Saudi Kayan Petrochemical Co. has awarded Taiwan's CTCI Corp. a contract worth USD 94.5mn to build a new furnace

cracker at its complex in Jubail Industrial City.

Saudi Arabian Monetary Agency has approved Arabia Insurance Cooperative Co.’s request to cut its capital by SAR

135mn to SAR 265mn.

Saudi Electricity Co. is reportedly aiming to cut capital expenses by up to 25% over the next five years as part of the

company’s strategic turnaround plan. Separately, Saudi Electricity Co. board had approved expanding the amount of its

planned U.S. dollar-denominated sukuk programme to USD 2.5bn from USD 1.5bn.

Saudi Marketing Co.’s (Farm Superstores) plans to raise its capital by 28.57% to SAR 450mn through the distribution of

bonus shares.

Moody’s Investors Service downgraded Dar Al Arkan Real Estate Development Co’s corporate credit rating to B1 from

BA3, with negative outlook.

Saudi Arabia’s government-owned fund Sanabil Investments has acquired a 20% stake in Ebrahim Mohammed Almana

& Brothers Co, the owner of the Almana General Hospitals.

SAUDI ARABIA – CORPORATE & ECONOMIC NEWS

Standard & Poor's downgraded Bahrain rating to BB

from BBB-. Oman's credit rating was lowered two

steps to BBB- from BBB+. S&P has affirmed its 'AA/A

-1+' long- and short-term foreign and local currency

sovereign credit ratings on Kuwait.

Bahrain has upsized and launched a USD 750mn, two

-part bond at the tighter end of its previous rate

guidance.

Bahrain has appointed SSH as Contract Manager and

Site Supervision consultant for the construction of

the Primary Infrastructure and Bridge Construction

on Al Madina Al Shamaliya Islands.

Kuwait and Egypt have signed four agreements that

will promote cooperation in different domains.

Kuwait National Petroleum Company has launched

its first units to produce biofuel in the Al-Ahmadi

refinery.

Oman’s Muriya Tourism Development Company

plans to invest USD 500mn for completing high-end

hotels and other facilities in Salalah and Jebel Sifah.

Marafeq Qatar seeks EPC bids for Phase 1 DCP at

Lusail. The project is part of larger district cooling

network length of 168 kms.

Centrica Plc and Qatar Petroleum are reportedly

planning to sell out of their natural gas venture in

Canada

Dubai’s DAMAC Properties has purchased land in

Dubai for AED 1.26bn.

US industrial production for January rose by 0.9%.

Ingram Micro Inc., a computer, networking and soft-

ware distributor, agreed to be acquired by China’s

Tianjin Tianhai Investment Co. for an equity value of

USD 6bn.

Royal Dutch Shell completed the deal to buy British

rival BG Group for USD 53bn, forming one of the

world’s top liquefied natural gas firms.

Economies of 19 Eurozone countries expanded by

1.5% in 2015. In the last quarter of 2015, they grew

0.3%, compared with the previous three months.

HSBC has announced that it will keep its headquar-

ters in London. Concerns about stricter UK regula-

tions led the bank to launch a review into whether to

move elsewhere.

Japan’s SoftBank Group Corp. will buy back its 14.2%

stock at USD 4.4bn, using cash holdings and the pro-

ceeds of asset sales.

Mitsubishi Aircraft has signed a letter of intent with

U.S. ‘s Aerolease Aviation LLC for 10 planes on a firm

basis, with an option to purchase 10 more costing

around USD 946mn. Separately, ATR has won USD

130mn order from Singapore’s Avation Plc.

OTHER GULF NEWS GLOBAL ECONOMIC NEWS

Source: Haver Analytics, Economist.com

TREND IN CHINESE GDP GROWTH (% CHANGE OVER PREVIOUS YEAR)

Source: Chinese General Administration of Customs, Bloomberg

TREND IN CHINA’S MONTHLY NET FUEL EXPORTS

CH

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