Daily Market Report Saudi Arabia Stock Exchange 19 December 2019

Research Department TASI Index 8,253.4 0.68% [email protected] Turnover (SAR mn) 6,563.8 -22% Tel:+966 11 836 5464

Economic Indicators Global commentary Date Economic Indicator Actual Consensus Previous  US stock markets showcased a mixed trend on Wednesday. The 16-Dec China Retail Sales (y-o-y) (Nov) 8.0% 7.6% 7.2% Nasdaq Composite Index edged up 0.1%, whereas the Dow Jones 16-Dec Germany Manufacturing PMI (Dec) (Preliminary)43.4 44.5 44.1 inched down 0.1%. Meanwhile, the S&P 500 ended on a flat note. 16-Dec UK Services PMI (Dec) (Preliminary) 49.0 49.5 49.3 Increased investor optimism over global growth was offset by the 16-Dec US Manufacturing PMI (Dec) (Preliminary)52.5 52.5 52.6 political uncertainty. On the economic data front, weekly crude oil 17-Dec UK Unemployment Rate (3M) (Oct) 3.8% 3.9% 3.8% inventory reduced lower than expected (-1.085mn Vs -1.288mn 17-Dec US Housing Starts (m-o-m) (Nov) 1.365M 1.345M 1.323M consensus). 18-Dec UK Consumer Inflation (y-o-y) (Nov) 1.5% 1.4% 1.5% 19-Dec BoE Interest Rate Decision -0.1%  Most Europeans markets declined yesterday. The DAX fell 0.5%, 20-Dec UK GDP (y-o-y) (Q3) 1.0% 1.0% dragged down by utilities and industrials sectors; while the CAC40 20-Dec US GDP Annualized (Q3) 2.1% 2.1% lost 0.2%, pulled down by utilities and financials stocks. However, the Data Sources: Al Rajhi Capital, FXStreet FTSE 100 gained 0.2%. Meanwhile, UK’s inflation was higher than

Regional Indices expected (+1.5% y-o-y in Nov Vs +1.4% consensus). Further, C lo se 1D % WTD% YTD% Eurozone’s inflation data was in-line with the expectations at +1.0%. KSA (TASI) 8,253 0.7 3.1 5.5 KSA (MT30) 1,168 0.9 3.3 2.4  Most stock markets in the GCC region rose on Wednesday. Dubai Qatar (DSM) 10,340 1.2 0.8 0.4 jumped 1.1%, backed by Emaar Properties and Emirates NBD; while Kuwait (KSE) 6,162 0.4 0.8 21.3 Abu Dhabi gained 0.7% driven by First Abu Dhabi Bank and Abu Abu Dhabi (ADSM) 5,095 0.7 1.2 3.7 Dhabi Commercial Bank. However, Oman edged down 0.1%. Dubai (DFM) 2,787 1.1 2.4 10.2 Meanwhile, Bahrain ended on a flat note, while Qatar market Oman (MSM30) 3,943 - 0.1 - 1.9 - 8.8 remained closed on account of trading holiday. Bahrain (BSE) 1,584 0.0 1.0 18.4 MSCI GCC 563 0.7 2.6 4.7  Asian markets are trading in the red this morning. The Hang Sang Index, the KOSPI Index, the Nikkei 225 and the Shanghai Composite Major Commodities / Currencies C lo se 1D % W T D % Y T D % Index are down 0.7%, 0.6%, 0.4% and 0.2%, respectively. On the Gold Spot $/Oz 1,478 0.2 0.1 15.2 economic data front, Japan kept the interest rate unchanged at -0.1%. Silver Spot $/Oz 17.05 0.2 0.7 10.1 Crude Oil (Brent) 66.14 0.0 1.4 19.5  Brent price rose 0.1% on Wednesday, partially offset by the EIA data, OPEC Basket 67.48 0.4 1.1 30.9 which reported lower than expected decline in domestic crude Euro 1.11 0.1 0.1 - 3.0 supplies. Key crude contracts Brent and WTI ended at US$ 66.17 USD Index 97.33 - 0.1 0.2 1.2 (+0.1%) and US$ 60.93 (0.0%), respectively. JPY 109.580 0.0 - 0.2 0.1 Saudi commentary Major Global Indices  Tadawul All Share Index (TASI) advanced 56.04 points or C lo se 1D % W T D % Y T D % +0.7% to close at 8,253.43. Nineteen of the twenty one sectors indices DJ Industrial 28,239 - 0.1 0.4 21.1 closed higher. The advance decline ratio was 173/15. Trading S&P 500 3,191 0.0 0.7 27.3 Nikkei 225 23,850 - 0.4 - 0.7 19.2 turnover was around SAR 6.6bn. Hang seng 27,701 - 0.7 0.0 7.2  SABIC plans 22% dividend for H2 2019: SABIC board of FTSE 100 7,541 0.2 2.5 12.1 CAC 40 5,960 - 0.1 0.7 26.0 directors recommended a 22% cash dividend for the second half of MSCI World 2,333 - 0.1 0.6 23.9 2019, at SAR 2.2 per share, amounting to SAR 6.6 billion. (Source: MSCI EM 1,109 0.6 2.0 14.8 Tadawul)

Interest Rates  Arabian Aramco announces SATORP shareholders’ 1M 3M 12M 3M Chg 1Y approval to refinance credit facilities: SATORP shareholders LIBOR (USD) 1.76 1.90 1.97 - 0.90 and board of directors approved signing a list of refinancing contracts SAIBOR 2.11 2.24 2.31 - 0.66 of a total value of SAR 8.25 billion, the company said. (Source: EIBOR 1.91 2.10 2.36 - 0.80 Tadawul) Data Sourc es: Bloomberg Updated as of 19/Dec/2019 9:44 AM  Al-Babtain inks SAR 12.5mn MoU to sell 49% of French subsidiary: Al-Babtain Power & Telecommunication Co. signed a binding MoU to sell 49% of Al-Babtain France to Portuguese Metalogalva. (Source: Tadawul)

 Moody’s assigns Baa2 rating to Malath: Moody’s Investors Service assigned a Baa2 insurance financial strength rating (IFSR) to Malath Cooperative Insurance Co., with stable outlook. (Source: Tadawul)

Please see penultimate page for additional important disclosures. Al Rajhi Capital (Al Rajhi) is a foreign broker-dealer unregistered in the USA. Al Rajhi research is prepared by research analysts who are not registered in the USA. Al Rajhi research is distributed in the USA pursuant to Rule 15a-6 of the Securities Exchange Act of 1934 solely by Rosenblatt Securities, an SEC registered and FINRA-member broker-dealer. 1

Daily Market Report Saudi Arabia Stock Exchange

Summary of our Coverage

Mcap Last ADTV P/E (x) EV/EBITDA (x) TP Upside (%) (SAR) (SARmn) Price (SARmn) 2018A 2019E 2020E 2018A 2019E 2020E

SABIC 270,900 91.5 95.0 3.83 222.2 16.1x 33.9x 29.5x 7.5x 9.0x 9.4x Sipchem 12,907 17.5 20.0 14.29 30.5 12.6x 14.1x 13.2x 7.3x 10.2x 8.6x SAFCO 31,292 76.2 75.0 (1.57) 25.9 18.4x 21.2x 19.5x 14.1x 16.4x 14.8x NIC 8,428 12.68 10.4 (17.98) 33.0 8.4x 16.3x 47.0x 7.0x 18.7x 14.3x Yansab 29,813 54 55.0 1.85 28.9 14.8x 27.0x 18.0x 9.5x 11.3x 10.4x APCC 10,391 48.3 52.0 7.66 16.8 13.9x 13.9x 14.2x 10.4x 10.4x 11.2x Arabian Cement 3,660 37 37.0 0.00 7.5 NM 17.2x 16.7x 21.5x 10.3x 10.3x Yamama Cement 5,164 25.75 22.0 (14.56) 11.5 NM 21.5x 23.4x 34.2x 14.4x 13.4x Saudi Cement 10,664 71 57.0 (19.72) 10.4 18.7x 26.3x 21.5x 12.9x 17.1x 15.1x Qassim Cement 6,021 67 69.0 2.99 6.2 25.1x 19.1x 15.6x 12.8x 13.3x 11.3x Yanbu Cement 6,119 39.5 34.0 (13.92) 9.0 40.0x 26.3x 21.9x 13.8x 13.6x 12.7x Southern Cement 9,170 66.4 52.0 (21.69) 6.1 26.5x 23.7x 20.8x 13.9x 15.8x 14.6x Ma'aden 50,454 41.55 45.0 8.30 26.1 31.2x NM NM 15.6x 15.2x 12.7x

Telecom STC 202,400 101.4 97.0 (4.34) 85.6 17.0x 18.0x 16.8x 8.3x 9.3x 9.0x Mobily 18,696 24.5 21.5 (12.24) 27.7 NM NM NM 5.4x 6.6x 6.5x Zain 6,538 11.28 UR NA 32.5 14.5x 8.4x 8.4x 4.5x 4.7x 4.7x

Food & Agriculture Almarai 49,500 49.25 51.0 3.55 21.8 23.9x 25.1x 24.5x 12.9x 13.9x 13.5x Savola 16,927 31.2 30.0 (3.85) 23.1 NM 26.2x 24.6x 34.0x 28.2x 27.0x Herfy 3,337 51.6 62.0 20.16 3.6 14.3x 14.5x 12.9x 10.9x 13.2x 12.1x Catering 7,503 91.6 91.0 (0.66) 8.2 14.5x 16.1x 15.3x 11.9x 14.6x 13.8x Sadafco 4,323 135.4 156.0 15.21 4.6 12.5x 20.3x 17.1x 8.2x 13.0x 11.1x

Retail Jarir 19,632 164 156.2 (4.76) 24.6 19.0x 19.3x 18.2x 18.9x 18.2x 17.1x Alhokair 4,750 23 22.0 (4.35) 8.4 44.0x 33.3x NA 10.9x 16.4x 8.9x Alothaim 7,335 82.9 79.0 (4.70) 8.2 20.9x 28.5x 26.2x 12.0x 15.4x 14.4x Extra 3,500 71.1 74.0 4.08 6.3 19.9x 16.9x 15.1x 15.2x 13.1x 11.7x

Healthcare Dallah 3,225 43.2 52.0 20.37 5.3 23.4x 28.8x 19.6x 18.0x 18.1x 14.4x Mouwasat 8,560 85.5 89.0 4.09 7.1 22.4x 21.4x 17.8x 17.0x 15.8x 13.7x NMCC 2,130 47.3 47.0 (0.63) 2.4 36.2x 24.9x 23.7x 12.9x 11.1x 10.8x Al Hammadi 2,318 19.32 22.0 13.87 6.8 34.4x 22.5x 16.1x 17.5x 12.9x 10.9x

Other Bupa Arabia 12,240 102 102.0 0.00 12.5 18.4x 20.4x 19.2x NM NM NM Bahri 14,569 37.6 UR NA 41.4 13.9x 12.2x 12.2x 10.3x 9.2x 9.2x Saudi Ceramic 2,109 35.7 36.0 0.84 15.8 NM NM 9.8x 46.2x 19.3x 7.9x Leejam Sports 4,086 78 95.0 21.79 11.4 17.1x 17.0x 13.0x 11.6x 14.0x 11.5x Source: Bloomberg, AlRajhi capital. Fawaz Al Hokair fiscal ending is March, hence 2019e corresponds to Year ending March 2020

Disclosures Please refer to the important disclosures at the back of this report. 2 Daily Market Report Saudi Arabia Stock Exchange

Performance of Regional markets

Last Index Change (%) **MCap ^FF MCap Volume Turnover P/E (x) P/B (x) Div Yld Country Close 1D 1M YTD US$ bn US$ bn mn shr US$ mn 12M Current 12M (%) Saudi Arabia* 8,253 0.7 5.0 5.5 2,473 297 207 1,750 19.4 1.6 3.7 Saudi Arabia (MT30) 1,168 0.9 4.7 2.4 NA NA 65 NA 15.0 1.5 4.1 Qatar 10,340 1.2 1.9 0.4 158 84 177 132 11.1 1.0 4.2 Dubai 2,787 1.1 4.1 10.2 103 36 177 68 11.1 1.0 4.2 Abu Dhabi 5,095 0.7 1.3 3.7 145 67 369 1,377 15.7 1.4 4.9 Kuw ait (All Share) 6,162 0.4 3.9 21.3 116 78 116 78 15.2 1.4 3.5 Oman 3,943 -0.1 -3.0 -8.8 17 8 3 2 7.4 0.7 7.6 Bahrain 1,584 0.0 3.7 18.4 26 13 5 2 12.8 1.0 4.9 Data Sources: Al Rajhi Capital, Bloomberg; Note: P/E & Div Yield LTM basis; *The TTM PE ratio for TASI has been revised after adjusting zakat expenses for banking stocks; ^Free Float Market Capitalization; **Respective Stock Exchange.

Performance of FTSE Emerging Index

Last Index Change (%) MCap ^FF MCap Volume Turnover P/E (x) P/B (x) Div Yld Country Close 1D 1M YTD US$ bn US$ bn mn shr US$ mn 12M Current 12M (%) Brazil 114,315 1.5 5.6 30.1 855 538 798 5,633 17.9 2.3 2.8 Czech Republic 1,106 0.5 2.4 12.1 53 27 2 24 12.5 1.4 5.3 Greece 906 1.2 0.5 47.7 61 32 37 117 33.0 0.8 2.8 Hungary 45,657 1.4 4.5 16.7 30 20 4 45 10.9 1.3 2.6 Malaysia 1,595 -0.3 2.1 -5.7 249 78 128 200 18.4 1.6 3.5 Mexico 45,106 1.6 5.3 8.3 295 175 259 503 17.5 2.2 3.0 South Africa 57,768 0.8 4.4 9.5 1,040 705 272 1,765 16.0 1.8 4.0 Taiw an 12,028 -0.8 4.7 23.7 1,211 803 2,622 4,692 19.5 1.8 3.8 Thailand 1,556 -0.5 -2.2 -0.5 548 277 2,916 1,418 18.7 1.7 3.3 Turkey 110,575 -0.4 3.4 21.2 127 49 2,409 1,461 8.6 1.0 3.3 Chile 4,739 -1.6 4.4 -7.2 129 57 1,095 198 15.4 1.4 3.7 China 4,020 -0.3 5.0 33.5 4,661 1,410 15,135 28,238 14.3 1.8 2.1 Colombia 1,636 0.7 1.5 23.4 105 42 21 41 12.8 1.2 3.4 Egypt 1,271 1.1 -1.0 -0.5 21 13 63 24 12.8 1.5 2.6 India 12,213 -0.1 1.3 12.4 1,268 625 519 3,146 26.7 2.9 1.2 Indonesia 6,260 -0.4 4.1 1.1 519 175 4,992 506 19.6 2.1 2.4 Kuw ait 6,162 0.4 3.9 21.3 116 78 116 78 15.2 1.4 3.5 Pakistan 41,604 0.0 5.9 12.2 44 15 183 67 9.8 1.3 5.0 Peru 1,671 0.9 1.6 0.6 54 18 1 47 17.4 2.2 3.6 Philippines 7,663 -0.9 -1.0 2.6 190 80 200 99 16.6 1.9 1.6 Qatar 10,340 1.2 1.9 0.4 158 84 65 132 15.0 1.5 4.1 Russia 1,523 0.1 5.8 42.5 679 290 30,320 1,128 6.7 1.0 6.2 UAE 5,095 0.7 1.3 3.7 145 67 369 1,377 15.7 1.4 4.9 FTSE Emerging Index 554 -0.5 5.8 15.9 15,896 7,631 69,327 71,806 15.3 1.8 2.8 Data Sources: Al Rajhi Capital, Bloomberg; ^Free Float Market Capitalization

Disclosures Please refer to the important disclosures at the back of this report. 3 Daily Market Report Saudi Arabia Stock Exchange

TASI Intra Day Movement TASI – Activity Trend (Last 10 Days)

Intraday Previous Close Turnover (LHS, SAR bn) TASI Index (RHS) 8,280 6 9,500 8,260 8,240 9,000 4 8,220 8,500 8,200 8,000 8,180 2 7,500 8,160 8,140 - 7,000

8,120

Dec Dec Dec

Dec Dec Dec Dec Dec Dec Dec

- - -

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5 9 8

00 15 30 45 00 15 30 45 00 15 30 45 00 15 30 45 00 30 45 00 15

: : : : : : : : : : : : : : : : : : : : :

10 11 12 15 16 17 18

10 10 10 10 11 11 11 11 12 12 13 13 14 14 14 14 15 12 12 13 13

TASI – Large Cap (>10% Index weight) Sectors’ Performance TASI – Top Gainers / Losers

1D % (LHS) MTD % (LHS) YTD % (RHS) 9.0 25.0 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Anaam Intl Hldg 12.16 10.0 5.355 63.31 8.0 20.0 7.0 ANB Ins 18.64 9.9 0.779 14.40 15.0 6.0 JADWA REIT SAUDI 10.90 9.1 0.643 7.01 5.0 10.0 DUR HOSPITALITY 23.00 7.2 0.286 6.47 4.0 5.0 NATIONAL CO FOR 28.70 6.3 0.320 9.12 3.0 0.0 2.0 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) 1.0 -5.0 SAUDI ARABIAN OI 36.7 -2.8 69.275 2561.96 0.0 -10.0 Wala'a Insurance 15.5 -2.5 1.488 23.36 TASI Materials Banks Real Telecom Savola 31.2 -1.6 1.236 38.28 Estate Kingdom Hold 7.3 -0.9 0.557 4.08 Tabuk Cement 14.9 -0.8 0.539 8.06

TASI – Mid Cap (5 -10% index weight) Sectors’ Performance TASI – Top Index Movers / Losers (Heavy weight stocks)

1D % (LHS) MTD % (LHS) YTD % (RHS) 7.0 35.0 Company Last Price Chg % Index Imp Value Trd (SAR mn) NCB 49.15 3.8 21.8 2.71 6.0 30.0 Al Rajhi Bk 64.90 0.9 12.1 8.06 5.0 Sabic 91.50 1.3 7.2 3.04 25.0 Riyad Bank 23.90 1.7 6.1 2.38 4.0 20.0 Jabal Omar 25.40 2.8 4.5 2.49 3.0 15.0 Company Last Price Chg % Index Imp Value Trd (SAR mn) 2.0 SAUDI ARABIAN OI 36.70 -2.8 -31.2 2561.96 10.0 1.0 Savola 31.20 -1.6 -1.9 38.28 Sabb 34.10 -0.6 -1.4 42.68 0.0 5.0 Sipchem 17.50 -0.6 -0.6 38.88 Insurance Food & Capital Utilities Retailing Almarai 49.25 -0.5 -0.5 17.82 -1.0 0.0 Beverages Goods

TASI – Small Cap (<5% index weight) Sectors’ Performance TASI – Volume Leaders 8 30.0 1D % (LHS) MTD % (LHS) YTD % (RHS) Company Last Price Chg % Vol (mn) Value Trd (SAR mn) 6 20.0 SAUDI ARABIAN OI 36.70 -2.8 69.275 2561.96 4 Alinma Bk 26.10 0.4 10.718 278.32 10.0 Saudi Kayan 10.44 2.2 8.926 92.21 2 Al Rajhi Bk 64.90 0.9 8.057 520.24 0.0 Petro Rabigh 20.86 5.4 7.389 149.13 0 Tabuk Agriculture 9.31 3.1 6.931 65.07 -10.0 Anaam Intl Hldg 12.16 10.0 5.355 63.31

-2 Media

Energy NIC 12.68 0.6 4.691 59.26 Pharma

Transport -20.0 Dar Al Arkan 10.50 1.0 4.393 46.18 -4 Retailing

& Svc & Al Jouf Cement 9.04 0.7 3.191 28.90

Apparel Food & StaplesFood & Commercial &

-6 ProfessionalSvc -30.0

ConsumerServices

DiversifiedFinancials Consumer Durables & & ConsumerDurables Health Care Equipment HealthCare

Disclosures Please refer to the important disclosures at the back of this report. 4 Daily Market Report Saudi Arabia Stock Exchange

TASI – Stocks Closer to 52 Week High TASI - Stocks Closer to 52 Week Low

Company Last Price 52Wk High % Diff Value Trd (SAR mn) Company Last Price 52Wk Low % Diff Value Trd (SAR mn) Hail Cement 11.64 11.68 0.3% 6.146 Saudi Paper Mfg 21.16 20.92 1.1% 3.812 City Cement 18.56 18.64 0.4% 8.195 Dallah Healthcare 43.20 42.70 1.2% 5.255 Co For Coop Ins 77.00 77.40 0.5% 18.119 Shams 20.20 19.86 1.7% 2.071 DUR HOSPITALITY 23.00 23.20 0.9% 6.473 Aminatit 13.94 13.62 2.3% 7.066 Najran Cement 11.40 11.52 1.1% 11.481 Fitaihi Holding 10.74 10.42 3.1% 2.151 Data Sources: Al Rajhi Capital, Bloomberg

Dubai – Activity Trend (Last 10 Days) Dubai – Sector Performances Dubai – Top Gainers / Losers

Company Last Price Change % Vol (mn) Turnover (LHS, AED bn) DFMGI Index (RHS) 1D % (LHS) MTD % (LHS) YTD % (RHS) 10.0 30.0 EMAAR Dev 3.83 4.4 6.74 0.4 2,800 Tabreed 1.95 2.6 0.96 2,780 25.0 Amlak Finance 0.51 2.0 22.96 2,760 20.0 Emaar Prop 4.13 2.0 14.10 2,740 5.0 2,720 15.0 Aramex 3.65 2.0 4.17 2,700 10.0 2,680 Company Last Price Change % Vol (mn) 2,660 5.0 2,640 0.0 Islamic Arab Ins 0.59 -2.3 16.58

0.0 2,620 0.0 Gulf Navigation 0.62 -1.4 1.44 DFM Bank Arabtec 1.37 -1.4 4.78

-5.0

Reality

Telcom

Dec Dec Dec

Dec Dec Dec Dec Dec Dec Dec

Services Shuaa Capital 0.99 -1.0 0.12

- - -

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Transport

Insurance

5 8 9

-5.0 Investment -10.0 DXB Entertainments 0.20 -1.0 1.39

16 10 11 12 15 17 18 Data Sources: Al Rajhi Capital, Bloomberg

Abu Dhabi – Activity Trend (Last 10 Days) Abu Dhabi – Sector Performances Abu Dhabi – Top Gainers / Losers

Company Last Price Change % Vol (mn) Turnover (LHS, AED bn) ADSMI Index (RHS) 1D % (LHS) MTD % (LHS) YTD % (RHS) 5.0 100.0 Comm Bk Intl 0.77 13.2 0.015 5.5 5,500 80.0 AD Nat (TAQA) 0.64 8.3 1.462 5.0 Arkan Building Mat 0.46 5.5 0.100 4.5 60.0 4.0 Gulf Cement Co 0.60 5.3 0.081 3.5 40.0 3.0 Methaq Takaful 0.82 2.5 0.017 2.5 5,000 20.0 2.0 0.0 1.5 0.0 Company Last Price Change % Vol (mn)

1.0 -20.0 National Takaful 0.70 -10.0 0.001 Banks

0.5 ADSM

0.0 4,500 Energy -40.0 Investbank 1.03 -6.4 0.006

Services

Industrial

Insurance Telecome Consumer International holding 6.00 -3.1 1.609

Real EstateReal -60.0

Fin.Services

Dec Dec Dec

Dec Dec Dec Dec Dec Dec

Dec RAK Cement 0.73 -2.7 0.078

- - -

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- -5.0 -80.0

5 8

9 Abu Dhabi Nation 2.90 -2.0 5.252

10 11 12 15 16 17 18

Qatar – Activity Trend (Last 10 Days) Qatar – Sector Performances Qatar – Top Gainers / Losers

1D % (LHS) MTD % (LHS) YTD % (RHS) Company Last Price Change % Vol (mn) Turnover (LHS, QAR bn) DSM Index (RHS) 4.0 40.0 MESAIEED PETROCH 2.59 4.9 5.415 1.2 10,400 QNB 20.06 3.9 10.523 3.0 30.0 1.0 CBQ 4.49 2.8 4.836 20.0 0.8 2.0 Qatar Insurance 3.14 2.0 1.836 10.0 Qatar Intl Is Bk 9.59 1.4 5.899 0.6 1.0 0.4 0.0 0.0 Company Last Price Change % Vol (mn) 0.2 -10.0 Doha Bank 2.52 -2.3 2.144

0.0 10,000 -1.0 DSM

Bank -20.0 Vodafone Qatar 1.17 -0.9 3.736

Dec Dec Dec Dec

Dec Dec Dec Dec Dec Dec

-2.0 Telecom Nakilat 2.43 -0.8 3.417

- - - -

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Transport -30.0

Insurance

Consumer

4 5 8 9

Real EstateReal

10 11 12 16 17 15 QIsB 15.26 -0.6 1.875 -3.0 -40.0 Gulf Intl Servcs 1.73 -0.6 1.198

Disclosures Please refer to the important disclosures at the back of this report. 5 Daily Market Report Saudi Arabia Stock Exchange

Kuwait – Activity Trend (Last 10 Days) Kuwait – Sector Performances Kuwait – Top Gainers / Losers Company Last Price Change % Vol (mn) Turnover (LHS, KWD mn) KWSEPM Index (RHS) 1D % (LHS) MTD % (LHS) YTD % (RHS) 8.0 40.0 GFH 72.5 2.1 1.884 45 6,850 Ahli United Bank 309 1.6 8.197 40 6.0 30.0 35 6,800 NBK 1059 0.9 3.772 30 6,750 4.0 20.0 Kuw ait Intl Bk 273 0.7 1.590 25 2.0 10.0 Agility 792 0.5 1.260 20 6,700 15 6,650 0.0 0.0 Company Last Price Change % Vol (mn) 10 6,600 5 -2.0 -10.0 Mezzan Holding 500 -1.8 0.011 0 6,550 KSE Al-Qurain Petroc 310 -0.6 0.291

-4.0 -20.0

Oil&Gas

Telecom

Goods Financial

Materials KIPCO 216 -0.5 0.784

Consumer

Dec Dec Dec

Dec Dec Dec Dec Dec Dec Dec

Healthcare

- - -

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-6.0 Technology -30.0 Warba bank 282 -0.4 3.072

5 8 9

10 11 12 15 16 17 18 -8.0 -40.0 Boubyan Bank 608 -0.3 0.526

Oman – Activity Trend (Last 10 Days) Oman – Sector Performances Oman – Top Gainers / Losers

Turnover (LHS, OMR mn) MSM30 Index (RHS) 0.0 1D % (LHS) MTD % (LHS) YTD % (RHS) 0.0 Company Last Price Change % Vol (mn) 7 4,040 MSM 30 Bank Industry Services Al Batinah Pow er 0.061 1.7 0.320 -0.5 -2.0 6 4,020 Ominvest 0.340 0.6 0.176 -4.0 5 4,000 -1.0 Bank Muscat 0.432 0.5 0.701 -6.0 NA NA NA NA 4 3,980 -1.5 3 3,960 -8.0 NA NA NA NA -2.0 2 3,940 -10.0 -2.5 Company Last Price Change % Vol (mn) 1 3,920 -12.0 Oman Invest &Fin 0.106 -4.5 0.178 0 3,900 -3.0 -14.0 Oman Cement Co 0.241 -1.6 0.056 Galfar Engineering 0.073 -1.4 0.157

-3.5 -16.0

Dec Dec Dec

Dec Dec Dec Dec Dec Dec Dec

- - -

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- Raysut Cement 0.464 -1.3 0.185

5 8 9

11 10 12 15 16 17 18 -4.0 -18.0 Al Madina 0.079 -1.3 0.131

Data Sources: Al Rajhi Capital, Bloomberg

Bahrain – Activity Trend (Last 10 Days) Bahrain – Sector Performances Bahrain – Top Gainers / Losers

8.0 50.0 Company Last Price Change % Vol (mn) Turnover (LHS, BHD mn) BHSEASI Index (RHS) 1D % (LHS) MTD % (LHS) YTD % (RHS) 7.0 40.0 GFH 0.240 0.8 3.200 6.0 1,590 6.0 30.0 NA NA NA NA 5.0 20.0 5.0 1,580 NA NA NA NA 1,570 4.0 10.0 NA NA NA NA 4.0 3.0 0.0 1,560 NA NA NA NA 3.0 1,550 2.0 -10.0 1,540 1.0 -20.0 2.0 Company Last Price Change % Vol (mn) 1,530 0.0 -30.0 1.0 1,520 -1.0 -40.0 Bahrain Telecom 0.387 -0.3 0.062 - 1,510 BSE NA NA NA NA

Banks NA NA NA NA

Services

Industries

Insurance

Dec Dec Dec Dec Dec

Dec Dec Dec Dec

Dec NA NA NA NA

- - - - -

2 3 4 5

8 NA NA NA NA

15 10 11 12 18 Tourism Hotel&

Data Sources: Al Rajhi Capital, Bloomberg

Disclosures Please refer to the important disclosures at the back of this report. 6 Daily Market Report Saudi Arabia Stock Exchange

IMPORTANT DISCLOSURES FOR U.S. PERSONS

This research report was prepared by Al Rajhi Capital (Al Rajhi), a company authorized to engage in securities activities in Saudi Arabia. Al Rajhi is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This research report is provided for distribution to “major U.S. institutional investors” in reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Any U.S. recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments based on the information provided in this research report should do so only through Rosenblatt Securities Inc, 40 Wall Street 59th Floor, New York, NY 10005, a registered broker dealer in the United States. Under no circumstances should any recipient of this research report effect any transaction to buy or sell securities or related financial instruments through Al Rajhi. Rosenblatt Securities Inc. accepts responsibility for the contents of this research report, subject to the terms set out below, to the extent that it is delivered to a U.S. person other than a major U.S. institutional investor.

The analyst whose name appears in this research report is not registered or qualified as a research analyst with the Financial Industry Regulatory Authority (“FINRA”) and may not be an associated person of Rosenblatt Securities Inc. and, therefore, may not be subject to applicable restrictions under FINRA Rules on communications with a subject company, public appearances and trading securities held by a research analyst account. Ownership and Material Conflicts of Interest

Rosenblatt Securities Inc. or its affiliates does not ‘beneficially own,’ as determined in accordance with Section 13(d) of the Exchange Act, 1% or more of any of the equity securities mentioned in the report. Rosenblatt Securities Inc, its affiliates and/or their respective officers, directors or employees may have interests, or long or short positions, and may at any time make purchases or sales as a principal or agent of the securities referred to herein. Rosenblatt Securities Inc. is not aware of any material conflict of interest as of the date of this publication. Compensation and Investment Banking Activities

Rosenblatt Securities Inc. or any affiliate has not managed or co-managed a public offering of securities for the subject company in the past 12 months, nor received compensation for investment banking services from the subject company in the past 12 months, neither does it or any affiliate expect to receive, or intends to seek compensation for investment banking services from the subject company in the next 3 months. Additional Disclosures

This research report is for distribution only under such circumstances as may be permitted by applicable law. This research report has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient, even if sent only to a single recipient. This research report is not guaranteed to be a complete statement or summary of any securities, markets, reports or developments referred to in this research report. Neither Al Rajhi nor any of its directors, officers, employees or agents shall have any liability, however arising, for any error, inaccuracy or incompleteness of fact or opinion in this research report or lack of care in this research report’s preparation or publication, or any losses or damages which may arise from the use of this research report.

Al Rajhi may rely on information barriers, such as “Chinese Walls” to control the flow of information within the areas, units, divisions, groups, or affiliates of Al Rajhi.

Investing in any non-U.S. securities or related financial instruments (including ADRs) discussed in this research report may present certain risks. The securities of non-U.S. issuers may not be registered with, or be subject to the regulations of, the U.S. Securities and Exchange Commission. Information on such non-U.S. securities or related financial instruments may be limited. Foreign companies may not be subject to audit and reporting standards and regulatory requirements comparable to those in effect within the United States.

The value of any investment or income from any securities or related financial instruments discussed in this research report denominated in a currency other than U.S. dollars is subject to exchange rate fluctuations that may have a positive or adverse effect on the value of or income from such securities or related financial instruments.

Past performance is not necessarily a guide to future performance and no representation or warranty, express or implied, is made by Al Rajhi with respect to future performance. Income from investments may fluctuate. The price or value of the investments to which this research report relates, either directly or indirectly, may fall or rise against the interest of investors. Any recommendation or opinion contained in this research report may become outdated as a consequence of changes in the environment in which the issuer of the securities under analysis operates, in addition to changes in the estimates and forecasts, assumptions and valuation methodology used herein.

No part of the content of this research report may be copied, forwarded or duplicated in any form or by any means without the prior consent of Al Rajhi and Al Rajhi accepts no liability whatsoever for the actions of third parties in this respectThis research document has been prepared by Al Rajhi Capital Company (“Al Rajhi Capital”) of Riyadh, Saudi Arabia. It has been prepared for the general use of Al Rajhi Capital’s clients and may not be redistributed, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of Al Rajhi Capital. Receipt and review of this research document constitute your agreement not to redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information contained in this document prior to public disclosure of such information by Al Rajhi Capital. The information contained was obtained from various public sources believed to be reliable but we do not guarantee its accuracy. Al Rajhi Capital makes no representations or warranties (express or implied) regarding the data and information provided and Al Rajhi Capital does not represent that the information content of this document is complete, or free from any error, not misleading, or fit for any particular purpose. This research document provides general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment products related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document.

Investors should seek financial, legal or tax advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that the price or value of such securities and investments may rise or fall. Fluctuations in exchange rates could have adverse effects on the value of or price of, or income derived from, certain investments. Accordingly, investors may receive back less than originally invested. Al Rajhi Capital or its officers or one or more of its affiliates (including research analysts) may have a financial interest in securities of the issuer(s) or related investments, including long or short positions in securities, warrants, futures, options, derivatives, or other financial instruments. Al Rajhi Capital or its affiliates may from time to time perform investment banking or other services for, solicit investment banking or other business from, any company mentioned in this research document. Al Rajhi Capital, together with its affiliates and employees, shall not be liable for any direct, indirect or consequential loss or damages that may arise, directly or indirectly, from any use of the information contained in this research document.

This research document and any recommendations contained are subject to change without prior notice. Al Rajhi Capital assumes no responsibility to update the information in this research document. Neither the whole nor any part of this research document may be altered, duplicated, transmitted or distributed in any form or by any means. This research document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or which would subject Al Rajhi Capital or any of its affiliates to any registration or licensing requirement within such jurisdiction.

7 Daily Market Report Saudi Arabia Stock Exchange

Disclaimer and additional disclosures for Equity Research Disclaimer

This research document has been prepared by Al Rajhi Capital Company (“Al Rajhi Capital”) of Riyadh, Saudi Arabia. It has been prepared for the general use of Al Rajhi Capital’s clients and may not be redistributed, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of Al Rajhi Capital. Receipt and review of this research document constitute your agreement not to redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information contained in this document prior to public disclosure of such information by Al Rajhi Capital. The information contained was obtained from various public sources believed to be reliable but we do not guarantee its accuracy. Al Rajhi Capital makes no representations or warranties (express or implied) regarding the data and information provided and Al Rajhi Capital does not represent that the information content of this document is complete, or free from any error, not misleading, or fit for any particular purpose. This research document provides general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment products related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document.

Explanation of Al Rajhi Capital’s rating system

Al Rajhi Capital uses a three-tier rating system based on absolute upside or downside potential for all stocks under its coverage except financial stocks and those few other companies not compliant with Islamic Shariah law:

"Overweight": Our target price is more than 10% above the current share price, and we expect the share price to reach the target on a 12 month time horizon.

"Neutral": We expect the share price to settle at a level between 10% below the current share price and 10% above the current share price on a 12 month time horizon.

"Underweight": Our target price is more than 10% below the current share price, and we expect the share price to reach the target on a 12 month time horizon.

"Target price": We estimate target value per share for every stock we cover. This is normally based on widely accepted methods appropriate to the stock or sector under consideration, e.g. DCF (discounted cash flow) or SoTP (sum of the parts) analysis.

Please note that the achievement of any price target may be impeded by general market and economic trends and other external factors, or if a company’s profits or operating performance exceed or fall short of our expectations.

Al Rajhi Capital Research Department Head Office, King Fahad Road P.O. Box 5561, Riyadh 11432 Kingdom of Saudi Arabia Email: [email protected]

Al Rajhi Capital is licensed by the Saudi Arabian Capital Market Authority, License No. 07068/37.