Weekly Report – Saudi Arabia
December 09, 2018
Key Stories of the week
KSA PMI surges to 2018-highest level in November POS transaction in Saudi Arabia rises 17% in Saudi Arabia’s non-oil private sector increased to October its highest level of 2018. The seasonally adjusted According to the data by the Saudi Arabian Emirates NBD Saudi Arabia PMI expanded to 55.2 Monetary Authority (SAMA), POS transactions in in November, from 53.8 in the preceding month, Saudi Arabia increased to SAR 19.3 bn, up 17% driven by a faster pace of growth in both output YoY in October. Cash withdrawals reached SAR and new orders. Meanwhile, new export orders 62.1 bn (+1% YoY) through 182 mn transactions remained stronger. processed across 18,600 ATMs during the month.
Saudi crown prince inks deals with the KSA Transport Ministry launches new road projects Mauritanian President The Ministry of Transport of Saudi Arabia launched Saudi Crown Prince Mohammed Bin Salman and nine road projects worth SAR 1.5 bn in the Eastern the Mauritanian President Mohamed Ould Abdel region (Hafar Al-Batin, Qaryat al-Ulya, Nariyah, Aziz inked three memorandums of understanding Khafji, Jubail, Qatif, Ras Tanura, and Abqaiq). The (MoUs). The three MoUs include the avoidance of projects include completing existing road projects double taxation, cooperation in the field of water and executing new ones. Moreover, the ministry is & sanitation and the third was related to wildlife currently executing SAR 1.7 bn regular protection. maintenance and precautionary projects to assure road safety.
New pharma firms to enter KSA in two years SABIC extends partnership deal on methanol Chairman of the National Committee for Pharmaceutical Industries at the Council of Saudi operations Chambers stated that ten new pharmaceutical Saudi Basic Industries Corporation (SABIC) producers would enter the KSA market over the extended its partnership deal with Japan Saudi next two years, increasing the number of Arabia Methanol Co. Under the deal, SABIC pharmaceutical plants operating in the Kingdom would buy a 25% stake in Saudi Methanol Co. (Ar- to 30. The new plants would enhance the local Razi) from Japan Saudi Arabia Methanol Co. production capacity by 30% from the current 10 (JSMC) for USD 150mn and now would 75% of Ar- bn pills per annum in next five years. Razi, while JSMC would own the remaining 25%. Furthermore, SABIC would extend partnership with JSMC on Ar-Razi for 20 years for USD 1.35bn. Derayah REIT inks Islamic facility deal with Al Rajhi
Bank GCC banks’ outlook remains stable for 2019, as Derayah REIT inked a Shariah-compliant facility per Moody’s deal worth SAR 1 bn with Al Rajhi Bank for seven Credit rating agency Moody’s 2019 outlook for years to acquire new assets. The loan would be GCC banking systems remains stable, reflecting repaid upon maturity date while the accrued their improving operating conditions, weakening interest rate would be paid half-yearly. but still solid loan performance and strong capital.
Source: Tadawul, Bloomberg, Media reports
2 Weekly Report – Saudi Arabia
December 09, 2018
Key Charts – Trends for rolling year
Equities Fixed Income Commodities
TASI 10-yr Sovereign Yield (%) Brent (USD/bl)
1M 8500 4.75 6M -13.3bps 90 1.4% 07-Dec, 4.50 8000 80 60.3 4.25 70 06-Dec, 7500 07-Dec, 7,849 4.00 60 1M -15.0% 4.45 7000 6M -4.4 % 3.75 1M 5.9bps 50 6M -20.2%
6500 3.50 40
1-Jul
1-Apr
1-Jan
1-Jun
2-Apr
30-Jul
2-Jan
2-Mar
1-Feb
2-Nov
31-Jul
4-Oct
3-Mar
2-Dec
3-Nov
1-May
3-Dec
16-Jul
30-Jun
2-May
31-Jan
28-Sep
28-Oct
29-Sep 27-Nov
29-Oct
29-Aug
16-Jun
28-Nov
17-Apr
17-Jan
30-Aug 31-May
16-Feb
14-Sep
19-Oct 14-Oct
18-Mar
18-Nov 13-Nov
15-Aug 18-Dec 17-May
Volume (daily mn shares) SEC Sukuk Yield (%) Arab Light Crude (USD/bl)
400 4.50 90 06-Dec, 6M 6M -28.6bps 07-Dec, 350 57.1% 144.8 4.25 07-Dec, 60.2 300 1M 80 12.4% 4.00 4.08 250 70 200 3.75 60 150 3.50 1M -15.6% 100 3.25 1M 1.8bps 50 50 6M -17.8%
0 3.00 40
1-Jul
1-Apr
1-Jan
1-Jun
2-Apr 30-Jul
2-Jan
2-Mar
1-Feb
2-Nov
31-Jul
4-Oct
3-Mar
2-Dec
3-Nov
1-May
3-Dec
16-Jul
30-Jun
2-May
31-Jan
28-Sep
28-Oct
29-Sep 27-Nov
29-Oct
29-Aug
16-Jun
28-Nov
17-Apr
17-Jan
30-Aug 31-May
16-Feb
14-Sep
19-Oct 14-Oct
18-Mar
18-Nov 13-Nov
15-Aug 18-Dec 17-May
P/E Saudi Arabia CDS (10 YR) Gold (USD/Oz)
6M -1.75X 6M -1.44bps 1400 6M -3.3% 19 170 1M 1350 160 1M +4.78bps 18 0.29X 1M 0.4% 150 1300 17 140 16 06-Dec, 1250 130 06-Dec, 07-Dec, 16.5 15 120 146.95 1200 1,228.0
14 110 1150
1-Jul 1-Jul 2-Jul
1-Jun 1-Jun 2-Jun
2-Apr 2-Apr 3-Apr
2-Jan 2-Jan 3-Jan
1-Feb 1-Feb 2-Feb
31-Jul 31-Jul
5-Oct 4-Oct 4-Oct
3-Mar 3-Mar 4-Mar
4-Nov 3-Nov 3-Nov
1-Aug
3-Dec 3-Dec 4-Dec
2-May 2-May 3-May
29-Sep 29-Sep 30-Sep
29-Oct 29-Oct 30-Oct
28-Nov 28-Nov 29-Nov
30-Aug 31-Aug 30-Aug
FII Ownership (%) SAIBOR – 3M (%) CRB Commodity Index
6M -37bps 5.5 3.00 1M +7.38bps 1M -6.0% 3250 2.75 5.0 06-Dec, 3100 2.50 2.86 2950 4.5 29-Nov, 2.25 4.67 2800 06-Dec, 4.0 2.00 2,807.2 2650 1M -10bps 1.75 6M +32.13bps 6M -7.4% 3.5
1.50 2500
1-Jul
24-Jul
1-Jul
1-Jun
2-Apr
2-Jan
24-Jun
1-Feb
25-Apr
31-Jul
4-Oct
25-Jan
3-Mar
24-Feb
27-Sep 22-Sep
3-Nov
27-Oct 22-Oct
26-Mar
3-Dec
1-Jun
26-Nov 21-Nov
2-Apr
23-Aug 2-Jan
2-May
26-Dec
1-Feb
31-Jul
4-Oct
25-May
3-Mar
3-Nov
29-Sep
3-Dec
29-Oct
2-May
28-Nov
30-Aug
29-Sep
29-Oct 28-Nov 30-Aug
Source: Tadawul, Reuters Eikon, Bloomberg Data as of December 06, 2018
3 Weekly Report – Saudi Arabia
December 09, 2018
Key Statistics
Asset Class Equity NOMU (Top 5) M.Cap P/E Indices Companies Last (SAR) 1Wk (%) MTD (%) YTD (%) P/B (TTM) $ mn (TTM) M.Ca Last 1Wk MTD YTD 2017 P/E P/B D/Y Index Al Aseel 175.8 22 -0.1 -0.1 -29.9 11.8 1.2 p $ Bn Close (%) (%) (%) (%) (TTM) (TTM) (%) Raydan 74.4 12.4 7.6 7.6 -29.1 10.3 1 Tadawul All Share 496 7849 1.9 1.9 8.6 0.2 16.9 1.8 3.5 Baazeem 71.5 26.5 -1.9 -1.9 -1.7 9.9 1.4 S&P Saudi Sharia 317.8 1010 2.3 2.3 8.4 0.4 18.5 1.9 3.7 Abo Moati 45.9 10.8 7.9 7.9 -15.3 9.4 0.8 NOMU Index 0.6 2416 1.6 1.6 -23.1 -47.7 8 1.2 6.7 Arab Sea 28.5 10.7 4.9 4.9 -11.9 NA 0.7 MSCI EM Index 12682 979 -1.9 -1.6 -15.5 34.9 11.8 1.5 3.0 Volume & Value Tadawul Indices (sorted by weekly performance) M.Ca Last 1Wk MTD YTD 2017 P/E P/B D/Y % Change Index Index Volume (Mn) Value (SAR Mn) p $ Bn Close (%) (%) (%) (%) (TTM) (TTM) (%) Weekly Insurance 9.6 4170 5.4 5.4 -11.7 -3.8 87.5 2.3 0.5 Tadawul All Share Index 718.5 17.8 17884.5 Food retail 2.1 6035 4.0 4.0 7.6 11 24.3 3.3 2.1 Parallel Market Index (NOMU) 0.7 141.7 9.4 Utilities 17.7 3431 4.0 4.0 -24.8 -6.2 177.9 0.9 4.7 Tadawul (Top 10) Commercial Services 2.2 4425 3.3 3.3 5.2 -16.6 18.8 4.1 5.8 Telecommunication 49.9 5104 2.7 2.7 20 -15 26.6 1.9 3.5 M.Cap Last 1Wk MTD YTD P/E D/Y Companies P/B $ Bn (SAR) (%) (%) (%) (TTM) (TTM) (%) Materials Industry 165.6 5487 2.6 2.6 8.6 1.4 17 1.7 3.2 Saudi Basic Indust Corp 96.6 120.8 2.9 2.9 18.5 16.5 2.1 3.6 Energy Industry 9.1 5025 2.6 2.6 17.4 -14 19.1 1.6 3.4 Saudi Telecom 45.2 84.7 2.0 2.0 23.5 16.5 2.6 4.7 Media 2.1 11304 2.2 2.2 46.1 51.1 67.1 7 NA Al Rajhi Banking 37.6 86.7 1.3 1.3 34.2 14.1 2.7 5.1 Capital Goods 2.3 4028 1.7 1.7 -7.2 -13 NA 1.2 2 National Comm Bank 36.6 45.8 1.7 1.7 -16.9 12.9 2.5 3.1 Food & Beverages 20.3 3969 1.6 1.6 -18.9 -0.1 59.4 2.3 2.3 Saudi Electricity 17.1 15.4 4.3 4.3 -26.8 1736.2 0.8 4.5 Banks 160.9 7047 1.6 1.6 28.1 8.2 12.6 1.8 4.3 Samba Financial 16.7 31.4 1.3 1.3 33.4 11.8 1.5 4.9 Consumer Services 3.8 3048 1.3 1.3 -17.3 -23.7 263.4 1.1 2.4 Saudi Arabian Mining 15.6 50.2 7.3 7.3 -3.3 40 2.1 0 Retailing 8.1 6937 1.1 1.1 23.2 14.7 32.5 5.8 3 Riyad Bank 14.3 17.8 1.9 1.9 42.7 12.3 1.5 4.2 Consumer Durables 0.8 3690 0.8 0.8 -10.9 -10.9 NA 1.1 2.5 Diversified Financials 8.1 3351 0.2 0.2 -16.8 -19.2 NA 0.9 3.7 Almarai 13.8 51.6 5.5 5.5 -4.0 24.9 3.8 1.5 Health Care 5.7 3704 0.2 0.2 -16.6 -11.5 19.4 2.3 3.8 Saudi British Bank 13.1 32.8 1.1 1.1 21.7 11.1 1.5 5.1 Real Estate 20.7 3259 -0.1 -0.1 -30.6 -6.4 23.7 1.3 2.3 Top Gainers Pharma & Biotech 0.9 3865 -0.2 -0.2 -2.7 -26.2 27.0 1.2 5.1 Transportation 3.1 3548 -1.1 -1.1 -11.6 -21.3 21.0 1.5 4.3 Last MTD P/E P/B Companies 1Wk (%) YTD (%) D/Y (%) (SAR) (%) (TTM) (TTM) Bupa Arabia for Coop 79.2 12.3 12.3 -14.9 17.7 3.8 1.7 Asset Class Fixed Income Buruj Coop Insur 26.4 11.0 11.0 -20.2 8.0 1.5 0 Corporate Bonds: Top 5 Performance (sorted by weekly Saudi Industrial Export 96.2 10.7 10.7 -35.7 NA 26.5 NA performance) Solidarity Saudi Takaful 15.9 10.0 10.0 -22.6 3935.6 1.3 NA Size ($ Close 1Wk MTD YTD Cur. Wataniya Insur 25.5 9.2 9.2 -7.7 12.0 2.0 NA Name Duration Mn) Price (%) (%) (%) Yield Top Losers Saudi Electricity Global 5.50% 689.8 100.1 1.3 1.0 -0.2 5.5 13.5 Saudi Electricity Global 5.06% 1000 94.7 1.3 1.0 -2.6 5.4 13.5 Last 1Wk MTD YTD P/E P/B D/Y Companies Acwa Power Mgmt 5.95% 814 93.8 0.5 0.7 -7.5 6.4 7.6 (SAR) (%) (%) (%) (TTM) (TTM) (%) Saudi Chemical 31.6 -5.4 -5.4 -1.6 15.6 1.3 7.1 Saudi Electricity Global 4.00% 1500 98.3 0.3 0.2 -4.7 4.1 4.7 Al Alamiya for Coo Insur 33.2 -4.7 -4.7 36.9 36.2 3.5 0 Saudi Electricity Global 3.47% 1000 97.3 0.2 0 -4.3 3.6 3.9 United Intl Transp 26.2 -4.4 -4.4 -3.5 12.9 1.7 5.6 Al Hammadi 24.4 -3.6 -3.6 -34.3 28.4 2.0 3.0 Government Debt Instruments: Top 5 Performance (sorted Banque Saudi Fransi 32.3 -3.3 -3.3 12.9 11.2 1.2 3.8 by weekly performance) Cur. Size ($ Close 1Wk MTD YTD Most Active (Volume) Description Yiel Duration Mn) Price (%) (%) (%) Volume d 1Wk YTD Most Active Volume Traded P/E (TTM) P/B (TTM) D/Y (%) KSA 4.00% 17 April 2025 4500 98.7 0.4 0.4 0 4.0 5.5 (%) (%) (Mn) KSA 2.88% 04 March 2023 3000 95.9 0.3 0.2 -2.7 3.0 3.9 Alinma Bank 120.5 6.0 15.5 13.6 1.6 3.6 KSA 4.50% 17 April 2030 3000 98.7 0.3 0.1 0 4.5 8.7 Dar Al Arkan Real Estate 47.2 0.1 -39.2 11.9 0.5 5.7 KSA 3.25% 26 October 2026 5500 92.7 0.1 0.1 -5.7 3.5 6.8 Al Hammadi 37.5 -3.6 -34.3 28.4 2.0 3.0 KSA 2.38% 26 October 2021 5500 96.2 0.1 -0.1 -1.5 2.5 2.7 Saudi Kayan Petchem 35.2 0.9 31.3 13.2 1.3 NA Mobile Telecom 29.7 5.9 -3.7 NA 1.1 NA ASSET CLASS: REAL ESTATE Most Active (Value) 1Wk MTD Index M.Cap ($ Bn) Last YTD (%) D/Y (%) Value (%) (%) P/E P/B Most Active Value Traded 1Wk (%) % YTD D/Y (%) Tadwaul REIT Index 3.1 3629 0.8 0.8 -21.7 4.5 (TTM) (TTM) (SAR Mn) NAREIT 1094.2 698 2.5 1.6 2.2 3.9 Alinma Bank 2645.5 6.0 15.5 13.6 1.6 3.6 Saudi Basic Indust Corp 2618.4 2.9 18.5 16.5 2.1 3.6 ASSET CLASS: COMMODITIES Saudi Industrial Export 1595.4 10.7 -35.7 NA 26.5 NA Al Rajhi Banking & Invest 992.1 1.3 34.2 14.1 2.7 5.1 Name Last 1Wk (%) MTD (%) YTD (%) 2017 % Al Hammadi 887.5 -3.6 -34.3 28.4 2.0 3.0 ICE Brent (Spot Prices $/bl) 60.3 1.8 1.8 -9.5 17.7 Arab Light Crude (Spot $/bl) 60.2 2.3 2.3 -7.5 11.1 Gold (Spot prices $/Oz) 1228 0.3 0.3 -5.7 13.5
Source: Tadawul, Reuters Eikon, Bloomberg Note: NM – Not meaningful (e.g. negative PE ratio); NA – Not available; Data as of December 06, 2018
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