Saudi Arabia Weekly Review – week ended February 28, 2019

Stories of the week Summary of the week Key movers

Tadawul announces major improvements in NOMU Market

SAMA doesn’t see more bank mergers

Almarai issues international sukuk of USD 500 mn

New Saudi export bank to launch finance services in October

Maaden signs phosphate supply deals worth USD 2 bn with India

Saudi Aramco signs USD 10 bn deal to form China’s largest Sino-foreign JV.

Number of the week

SAR 868 bn Value of KSA’s oil exports in 2018

Saudi equity markets declined during the week with TASI falling 0.6%, while weekly trading volumes increased 9.8%. The fixed income market had a slightly upward movement, with 10 year sovereign yield improving by 0.5 basis points (bps).

On the policy front, Tadawul announced major improvements in Nomu Market, to be implemented in the first half of 2019. In corporate news, Maaden signed two MoUs with India’s firms IPL Co. and KRIBHCO worth USD 2 bn to supply 5 mn tons of phosphate fertilizers for five years. Almarai Co. issued international sukuk of USD 500 mn, which was 10 times oversubscribed.

Equities

Tadawul All Share Index

S&P Saudi Sharia

NOMU Index

Fixed Income

KSA 10-year sovereign yield

Commodities

ICE Brent

Disclaimer: “The Weekly Report – Saudi Arabia” has been prepared and issued by MEFIC Capital a CMA, Saudi Arabia regulated entity. This Report is intended to be circulated for general information only. The information and statistical data herein have been obtained from sources we believe to be reliable but in no way are warranted by us as to its accuracy or completeness. For further information, please contact at Email: investmentresearch@mefic.com.sa

0.5bps

0.6%

0.5%

0.9%

%4.4

Tel: +966 11 218 6666 | Fax: +966 11 218 6668 | Toll Free Number: 800-12-63342 | 7758 King Fahad Road-Office 1Riyadh 4187-12333 Saudi Arabia | www.mefic.com.sa | CMA License Number: 06029-37

CR: 1010237038 | CCR: 184700 @mefic MEFIC MEFIC Capital

March 03, 2019

Weekly Report – Saudi Arabia

Weekly Report – Saudi Arabia

March 03, 2019

2

Key Stories of the week

Tadawul announces major improvements in

NOMU Market

Tadawul announced major improvements in

Nomu Market, to be implemented in the first

half of 2019, which include:

Enabling direct listing without IPO

Companies have the option of

reporting on semi-annual basis

Reducing normal trade threshold

Including ETFs and REITs in NOMU

market

SAMA doesn’t see more bank mergers

The governor of Saudi Arabian Monetary

Authority (SAMA) has said that the institution

does not see more bank mergers for now

except those already announced. Saudi British

Bank and Alawwal Bank have announced

their merger to create Saudi Arabia’s third-

biggest bank in March, which was followed by

the National Commercial Bank's announcing

commencement of initial talks with Riyad Bank

for a possible merger.

Almarai issues international sukuk of USD 500

mn

Almarai issues international sukuk of USD 500

mn. It is fixed rate senior unsecured sukuk at a

yield of 4.311% and maturity of 5 years. The

issue was more than 10 times oversubscribed.

KSA’s oil exports in 2018 hit SAR 868 bn

The value of KSA’s oil exports in 2018 rose 36%

YoY to SAR 868 bn.

New Saudi export bank to launch finance

services in October

Saudi Arabia’s new export bank will offer

direct and indirect finance as well export

credit services as of October 2019, as per the

Saudi Export Development Authority (SEDA).

“We are working with the competent

government authorities on completing the

regulatory procedures required for setting up

the bank,” SEDA said.

Maaden signs phosphate supply deals worth

USD 2 bn with India

Saudi Arabian Mining Company (Maaden)

signed two MoUs with India’s firms IPL Co. and

KRIBHCO worth USD 2 bn to supply 5 mn tons

of phosphate fertilizers for five years.

Saudi Aramco signs USD 10 bn deal to form

China’s largest Sino-foreign JV

Saudi Aramco signed a USD 10 bn agreement

with China’s Norinco to develop a refining

and petrochemical complex in the Chinese

city of Panjin. Aramco and Norinco will form

Huajin Aramco Petrochemical Company,

which includes a refinery with capacity of

300,000 barrels per day. Saudi Aramco will

supply up to 70% of the complex’s crude

feedstock. The project is expected to be

operational in 2024.

Source: Tadawul, Bloomberg, Media reports

Weekly Report – Saudi Arabia

March 03, 2019

3

Key Charts – Trends for rolling year

Equities

Fixed Income

Commodities

TASI 10-yr Sovereign Yield (%) Brent (USD/bl)

Volume (daily mn shares) SEC Sukuk Yield (%) Arab Light Crude (USD/bl)

P/E Saudi Arabia CDS (10 YR) Gold (USD/Oz)

FII Ownership (%) SAIBOR – 3M (%) CRB Commodity Index

Source: Tadawul, Reuters Eikon, Bloomberg

Data as of February 28, 2019

28-Feb,

8,473

6500

7000

7500

8000

8500

9000

1-J

an

31-J

an

2-M

ar

1-A

pr

1-M

ay

31-M

ay

30-J

un

30-J

ul

29-A

ug

28-S

ep

28-O

ct

27-N

ov

27-D

ec

26-J

an

25-F

eb

8.12%

01-Mar,

4.02

3.50

3.75

4.00

4.25

4.50

4.75

1-J

an

31-J

an

2-M

ar

1-A

pr

1-M

ay

31-M

ay

30-J

un

30-J

ul

29-A

ug

28-S

ep

28-O

ct

27-N

ov

27-D

ec

26-J

an

6M 17bps

1M 13bps

01-Mar,

66.3

40

50

60

70

80

90

19-D

ec

18-J

an

17-F

eb

19-M

ar

18-A

pr

18-M

ay

17-J

un

17-J

ul

16-A

ug

15-S

ep

15-O

ct

14-N

ov

14-D

ec

13-J

an

12-F

eb

1M 7.1%

6M -15.4%

28-Feb,

111.6

0

50

100

150

200

250

300

350

400

1-J

an

31-J

an

2-M

ar

1-A

pr

1-M

ay

31-M

ay

30-J

un

30-J

ul

29-A

ug

28-S

ep

28-O

ct

27-N

ov

27-D

ec

26-J

an

25-F

eb

1M

-38.6%

01-Mar,

3.61

3.00

3.25

3.50

3.75

4.00

4.25

4.50

1-J

an

31-J

an

2-M

ar

1-A

pr

1-M

ay

31-M

ay

30-J

un

30-J

ul

29-A

ug

28-S

ep

28-O

ct

27-N

ov

27-D

ec

26-J

an

6M 15bps

1M 10bps

01-Mar,

67.1

40

50

60

70

80

90

19-D

ec

18-J

an

17-F

eb

19-M

ar

18-A

pr

18-M

ay

17-J

un

17-J

ul

16-A

ug

15-S

ep

15-O

ct

14-N

ov

14-D

ec

13-J

an

12-F

eb

1M 8.2%

6M -13.8%

28-Feb,

[VALUE]

12

13

14

15

16

17

22-F

eb

24-M

ar

23-A

pr

23-M

ay

22-J

un

22-J

ul

21-A

ug

20-S

ep

20-O

ct

19-N

ov

19-D

ec

18-J

an

17-F

eb

0.2x

0.8X

1M

6M

28Feb,

139.4

110

120

130

140

150

160

170

14-F

eb

16-M

ar

15-A

pr

15-M

ay

14-J

un

14-J

ul

13-A

ug

12-S

ep

12-O

ct

11-N

ov

11-D

ec

10-J

an

9-F

eb

1M -0.8bps

6M +1.1bps

01-Mar,

1293

1150

1200

1250

1300

1350

1400

5-D

ec

4-J

an

3-F

eb

5-M

ar

4-A

pr

4-M

ay

3-J

un

3-J

ul

2-A

ug

1-S

ep

1-O

ct

31-O

ct

30-N

ov

30-D

ec

29-J

an

1M -2.2%

6M 7.6%

21-Feb,

5.07

3.5

4.0

4.5

5.0

5.5

13-D

ec

12-J

an

11-F

eb

13-M

ar

12-A

pr

12-M

ay

11-J

un

11-J

ul

10-A

ug

9-S

ep

9-O

ct

8-N

ov

8-D

ec

7-J

an

6-F

eb

9bps 1M

-4bps 6M

28-Feb,

2.93

1.50

1.75

2.00

2.25

2.50

2.75

3.00

3.25

4-D

ec

3-J

an

2-F

eb

4-M

ar

3-A

pr

3-M

ay

2-J

un

2-J

ul

1-A

ug

31-A

ug

30-S

ep

30-O

ct

29-N

ov

29-D

ec

28-J

an

1M -5bps

6M +30bps

28-Feb,

[VALUE]

2500

2650

2800

2950

3100

3250

4-D

ec

3-J

an

2-F

eb

4-M

ar

3-A

pr

3-M

ay

2-J

un

2-J

ul

1-A

ug

31-A

ug

30-S

ep

30-O

ct

29-N

ov

29-D

ec

28-J

an

1M 4.8%

6M 0.6%

-1,0%

1M

6M

Weekly Report – Saudi Arabia

March 03, 2019

4

Key Statistics

Asset Class Equity

Indices

Index M.Ca

p $ Bn

Last

Close

1Wk

(%)

MTD

(%)

YTD

(%)

2018

(%)

P/E

(TTM)

P/B

(TTM)

D/Y

(%)

Tadawul All Share 540.2 8493 -0.6 -0.8 8.5 8.3 15.2 1.7 3.3

S&P Saudi Sharia 341.6 1112 -0.5 -0.9 8.5 8.1 15.2 1.3 3.2

NOMU Index 1.2 3593 4.4 17.6 42.5 -19.7 9.1 1.7 6.3

MSCI EM Index 13571 1052 0.1 0.2 8.9 34.9 12.1 1.5 2.8

Volume & Value

Index Volume (Mn) % Change

Weekly Value (SAR Mn)

Tadawul All Share Index 503.8 9.8 10814.4

Parallel Market Index (NOMU) 0.5 22.9 10.9

Tadawul (Top 10)

Companies M.Cap

$ Bn

Last

(SAR)

1Wk

(%)

MTD

(%)

YTD

(%)

P/E

(TTM) P/B

(TTM) D/Y

(%)

Saudi Basic Indust Corp 98 122.4 -0.8 5.3 5.1 17.2 2.1 3.6

Saudi Telecom 53 99.4 -1 8.3 8.1 18.6 3.1 4

Al Rajhi Bank 43.6 100.4 -0.4 14.7 14.5 15.9 3.4 4.5

National Comm Bank 27.8 52.1 -1 8.9 8.7 14.8 2.7 2.6

Samba Fin. Group 19.5 36.4 -1.6 16.1 15.9 13.4 1.8 4.2

Saudi Electricity 18.3 16.5 -1.3 9.1 8.9 15 1.9 3.2

Riyad Bank 17.8 22.3 -5.3 12.5 12.3 39.1 0.9 4.2

Saudi Arabian Mining 17.1 54.7 -0.6 11 10.8 34.8 2.3 0

Saudi British Bank 14.6 36.5 -1.6 11.8 11.6 11.3 1.7 4.5

Almarai 14.4 53.9 -2.5 12.3 12.1 28.4 3.9 1.4

Top Gainers

Companies Last

(SAR) 1Wk (%)

MTD

(%) YTD (%)

P/E

(TTM)

P/B

(TTM) D/Y (%)

FITNESS TIME 65 11.1 10.5 10.3 NA NA NA

Etihad Etisalat 19.9 9.6 19.8 19.6 NA 2.2 2.1

Al-baha 22.1 6.3 -6.8 -7 8.4 NA NA

Al-Ahlia 12.4 5.6 9.9 9.7 NA 0.9 2.1

ARDCO 20.1 5.6 14.4 14.2 12.2 1.1 NA

Top Losers

Companies Last

(SAR)

1Wk

(%)

MTD

(%)

YTD

(%)

P/E

(TTM)

P/B

(TTM)

D/Y

(%)

Amana Insurance 14 -11.8 -17.1 -30.3 NA 1.2 0

ALKHODARI 4.3 -8.6 -36.3 4.6 NA 9 NA

MEFIC REIT 8 -7.6 -1.8 -6.1 NA NA NA

Enaya 13.6 -5.6 -34.6 -11.5 NA 2.1 NA

RIBL 22.3 -5.3 12.5 10.8 NA 0.8 0

Most Active (Volume)

Most Active Volume

Volume

Traded

(Mn)

1Wk

(%)

YTD

(%) P/E (TTM) P/B (TTM) D/Y (%)

Abdullah Abdul Mohsin 50.2 -16.5 -30.3 NA 0.7 0

Alinma Bank 30.6 0 4.8 14.3 1.7 3.3

Saudi Kayan Petchem 27.1 -0.7 3.5 12 1.3 NA

Dar Al Arkan Real Estate 24.1 -0.2 13.3 13.8 0.6 4.9

Saudi Arabian Amiantit 18.7 -10.1 4.6 NA 0.8 NA

Most Active (Value)

Most Active Value

Value

Traded

(SAR Mn)

1Wk (%) % YTD P/E

(TTM)

P/B

(TTM) D/Y (%)

Al Rajhi Banking & Invest 1254.4 -0.6 15.2 15.9 3.4 4.5

Saudi Basic Indust Corp 1116.3 -0.5 6.2 17.2 2.1 3.6

Alinma Bank 734.6 0 4.8 14.3 1.7 3.3

Saudi Kayan Petchem 369.6 -0.7 3.5 12 1.3 NA

Saudi Cable 365.4 8.4 26.7 NA 6.1 NA

NOMU (Top 5)

Companies M.Cap

$ mn Last (SAR) 1Wk (%) MTD (%) YTD (%)

P/E

(TTM) P/B (TTM)

Al Aseel 204 25.5 9.9 8.6 22.3 12.5 1.3

Raydan 90 15 0.5 -2.5 -1.6 12.4 1.2

Baazeem 85.6 31.7 1.6 5.3 8.8 11.7 1.7

Abo Moati 55.3 13 2 -0.3 5.6 11.2 0.9

Arab Sea 33.3 12.5 -2.2 -8.5 1.7 NA 0.8

Tadawul Indices (sorted by weekly performance)

Index M.Ca

p $ Bn

Last

Close

1Wk

(%)

MTD

(%)

YTD

(%)

2018

(%)

P/E

(TTM) P/B

(TTM) D/Y

(%)

Consumer Services 4.3 3317 3 3.3 12.6 -20 129.5 1.2 2.2

Telecommunication 58.8 5988 1.5 1.2 10.8 27.1 24.9 2.1 3

Diversified Financials 9 3640 0.9 0.1 4.7 -13.7 NA 1 3.4

Energy 8.3 4596 0.8 -3.6 -5.2 -26.1 24.9 1.5 3.6

Retailing 7.7 6673 0.8 -2.2 -2.8 21.9 32.1 5.6 3

Food retail 1.9 5638 0.7 -3.7 -5.1 5.9 23 3.1 2.1

Insurance 9.8 4278 0.6 -0.5 2.5 -11.6 57.8 2.3 0.6

Transportation 3.1 3627 0.4 0.7 4.3 -13.3 19.7 1.5 4.4

Materials 170.6 5651 0.4 0.3 7.6 3.9 18 1.8 3.4

Media 0 10223 -0.4 -3 0.4 31.6 0 0 NA

Capital Goods 2.3 3856 -0.4 -6.6 -1.1 -10.1 NA 1.2 1.6

Banks 187.4 8094 -0.6 -1.2 12.2 31.1 10.4 1.6 3.7

Real Estate 20.9 3311 -0.9 -0.4 2.7 -31.3 38.4 1.4 2.3

Commercial Services 2.1 4273 -1.2 -2.8 3.3 -1.6 18.3 4 5.8

Utilities 19.2 3661 -1.2 -4.5 8.7 -26.1 37.1 1 4.6

Consumer Durables 0.8 3627 -1.2 -2.8 -1 -11.5 NA 1 2.5

Health Care 5.8 3763 -1.3 -0.5 0.1 -15.4 20.3 2.3 4

Food & Beverages 22.2 4303 -2.9 -2.8 10.7 -20.6 64.9 2.5 2.2

Pharma & Biotech 0.9 3516 -3.8 -7.8 -9.4 -2.3 25.6 1.1 5.2

Asset Class Fixed Income

Corporate Bonds: Top 5 Performance (sorted by weekly

performance)

Name Size ($

Mn)

Close

Price

1Wk

(%)

MTD

(%)

YTD

(%)

Cur.

Yield Duration

Acwa Power Mgmt 5.95% 814 99.1 0.1 1.4 5.5 6 7.8

Saudi Electricity Global 4.00% 1500 100.7 0.1 0.4 1.5 4 4.5

SABIC Capital I 2.75% 750 104.7 0.1 0.1 0.2 2.6 1.7

Dar Al-Arkan Sukuk Co 6.88% 500 97 0 2 2.4 7.1 2.7

Dar Al-Arkan Sukuk Co 6.50% 400 100.4 0 0 0 6.5 0.3

Government Debt Instruments: Top 5 Performance (sorted

by weekly performance)

Description Size ($

Mn)

Close

Price

1Wk

(%)

MTD

(%)

YTD

(%)

Cur.

Yiel

d

Duration

KSA 2.38% 26 October 2021 5500 97.4 0.2 0.1 0.9 2.4 2.5

KSA 2.88% 04 March 2023 3000 97.9 0.1 0.5 1.7 2.9 3.7

KSA 3.25% 26 October 2026 5500 95.9 0 0 2.1 3.4 6.6

KSA 3.63% 20 April 2027 4500 98.1 -0.1 -0.4 1.4 3.7 6.9

KSA 4.50% 17 April 2030 3000 102.9 -0.1 0.7 2.8 4.4 8.6

ASSET CLASS: REAL ESTATE

Index M.Cap ($ Bn) Last 1Wk

(%)

MTD

(%) YTD (%) D/Y (%)

Tadwaul REIT Index 3.2 3591 -0.8 -0.8 -0.9 5.8

NAREIT 1099.4 701 -1.1 0 11.4 3.9

ASSET CLASS: COMMODITIES

Name Last 1Wk (%) MTD (%) YTD (%) 2018 %

ICE Brent (Spot Prices $/bl) 66.3 -0.9 7.1 -0.5 -7.1

Arab Light Crude (Spot $/bl) 67.1 -0.9 8.2 3.1 -4.7

Gold (Spot prices $/Oz) 1292.9 -2.3 -2.1 -0.7 1.4

Source: Tadawul, Reuters Eikon, Bloomberg

Note: NM – Not meaningful (e.g. negative PE ratio); NA – Not available; Data as of February 28, 2019

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addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for

any purpose.

This document is based on data sources that are publicly available and are thought to be reliable. MEFIC Capital

may not have verified all of this information with third parties. Neither MEFIC Capital nor its advisors, directors or

employees can guarantee the accuracy, reasonableness or completeness of the information received from any

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This document may contain certain statements, estimates, and projections with respect to the anticipated future

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representation or warranty is made as to the accuracy of such statements, estimates, and projections or as to its

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Opinions expressed are our current opinions as of the date appearing on this material only and may change without

notice.

Disclaimer: This report has been prepared and issued by MEFIC Capital a CMA, Saudi Arabia

regulated entity. This Report is intended to be circulated for general information only. The information

and statistical data herein have been obtained from sources we believe to be reliable but in no way

are warranted by us as to its accuracy or completeness. For further information, please contact at

Email: investmentresearch@mefic.com.sa