Weekly Report – Saudi Arabia
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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, 2.00 4.0 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.