Weekly Report – Saudi Arabia March 31, 2019

Saudi Arabia Weekly Review – week ended March 28, 2019

Stories of the week Summary of the week Key movers

Saudi Aramco acquires 70% majority stake in SABIC for SAR 260 bn

Zain signs SAR 2.5 bn agreement for tower infra sale

Aggregate profit of Saudi banks rises 3.4% YoY in February 2019

Kingdom Holding’s net profit up 2.7% YoY in FY 2018

NEOM to develop USD 5 bn rainwater recycling project

Saudi’s foreign capital inflows to increase to USD 50 bn in 2019: IIF

Number of the week

5.22% FII Ownership in Tadawul, at the record high at the end of March 21st, up from 5.08% at the end of the previous week

Saudi equity markets rose during the week with TASI increasing 0.9%, while weekly trading volumes fell 18%. The fixed income market had a slightly downward movement, with 10 year sovereign yield down by 0.2 basis points (bps).

In corporate news, State oil giant Saudi Aramco acquired 70% majority stake in SABIC from the PIF for SAR 260 bn, at SAR 123.39 per share. Kingdom Holding Co. reported a net profit of SAR 681.6 mn for FY 2018, a rise of 2.7% YoY. Saudi Arabia's megacity project NEOM is plans to develop a USD 5 bn rainwater recycling project.

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

1%

0.9%

0.2bps

0.7%

0.4%

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Weekly Report – Saudi Arabia

March 31, 2019

2

Key Stories of the week

Saudi Aramco acquires 70% majority stake in

SABIC for SAR 260 bn

State oil giant Saudi Aramco acquired 70%

majority stake in SABIC from the Public

Investment Fund (PIF) for SAR 260 bn. The

private transaction was signed for SAR 123.39

per share. “This transaction is a major step in

accelerating Saudi Aramco’s transformative

downstream growth strategy of integrated

refining and petrochemicals,” Amin Nasser,

President and CEO, Saudi Aramco said.

Zain signs SAR 2.5 bn agreement for tower

infra sale

Mobile Telecommunications Co. (Zain) signed

an agreement worth SAR 2.52 bn with IHS

Holding Limited for the sale and lease back of

its passive towers infrastructure. The

agreement includes sale of approximately

8,100 passive tower infrastructure and the

building of an additional 1,500 over the next 6

years together with the lease back of such

towers, for 15 years with the option to extend.

The proceeds from the sale will be used to

reduce debt of the Murabaha facility by SAR

2.52 bn, which will result in significant savings in

the debt servicing, the company said.

Aggregate profit of Saudi banks rises 3.4% YoY

in February 2019

Saudi-listed banks reported a 3.4% YoY rise in

aggregate net profit to SAR 3.9 bn in February

2019, as per data released by SAMA. The

sector’s aggregate earnings grew by 11% YoY

to SAR 8.83 bn year to date.

Kingdom Holding’s net profit up 2.7% YoY in FY

2018

Kingdom Holding Co. reported a net profit of

SAR 681.6 mn for FY 2018, a rise of 2.7% YoY,

due to higher profit share from equity-

accounted affiliates, hotel and other

operating revenues and dividends income.

NEOM to develop USD 5 bn rainwater

recycling project

Saudi Arabia's megacity project NEOM is

developing a USD 5 bn rainwater recycling

project, as per Gavin van Tonder, Water

Sector head at NEOM. “Under the new

project, seven mega tanks will be built in

several sites to capture, recycle and reuse

runoff and rainwater,” Tonder said. The first

phase of the program is expected to be

finalized by 2022, he added.

Saudi’s foreign capital inflows to increase to

USD 50 bn in 2019: IIF

Non-resident capital inflows in Saudi Arabia

are expected to increase to USD 50 bn in

2019, from USD 37 bn in 2018, as per the

Institute of International Finance (IIF). Equity

inflows are expected to make a significant

contribution to portfolio flows as Saudi

Arabia’s stock market was admitted into the

FTSE on March 18, it noted in a report. It also

noted that Saudi stocks will also be benefitted

significantly from the addition to the MSCI EM

Index during May, as the eight-largest

constituent with 2.6% weight.

Source: Tadawul, Bloomberg, Media reports

Weekly Report – Saudi Arabia

March 31, 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 March 28, 2019

28-Mar,

8789

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

27-M

ar

16.7%

29-Mar,

3.80

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

25-F

eb

27-M

ar

6M 75 bps

1M 21 bps

28-Mar,

68.0

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

14-M

ar

1M 4.6%

6M -15.4%

28-Mar,

123.0

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

27-M

ar

1M

22.9% 29-Mar,

3.27

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

25-F

eb

27-M

ar

6M 82 bps

1M 31 bps

28-Mar,

67.9

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

14-M

ar

1M 1.6%

6M -15.9%

28-Mar,

19.6

15

16

17

18

19

20

8-M

ar

7-A

pr

7-M

ay

6-J

un

6-J

ul

5-A

ug

4-S

ep

4-O

ct

3-N

ov

3-D

ec

2-J

an

1-F

eb

3-M

ar

0.7x

3.3X

1M

6M

28-Mar,

133.91

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

11-M

ar

1M -1bps

6M -5bps

28-Mar,

1,290.6

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

28-F

eb

1M -0.2%

6M 5.4%

21-Mar,

5.22

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

8-M

ar

15bps 1M

21bps 6M

28-Mar,

2.87

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

27-F

eb

1M -4bps

6M +13bps

28-Mar,

2,953.2

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

27-F

eb

1M 0.1%

6M -1.3%

3.5% 1M

6M

Weekly Report – Saudi Arabia

March 31, 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 550.2 8789 0.9 3.5 12.3 8.3 19.4 2 3.2

S&P Saudi Sharia 351.9 1130 0.7 3.6 12.8 7.4 21 2.1 3.4

NOMU Index 1.2 3689 1 2.7 46.3 -19.7 10.8 1.8 6

MSCI EM Index 14293 1045 -2.3 -0.5 8.2 34.9 13.1 1.6 2.7

Volume & Value

Index Volume (Mn) % Change

Weekly Value (SAR Mn)

Tadawul All Share Index 619.6 -18 14644.5

Parallel Market Index (NOMU) 0.5 31.1 8.6

Tadawul (Top 10)

Companies M.Cap

$ Bn

Last

(SAR)

1Wk

(%)

MTD

(%)

YTD

(%)

P/E

(TTM) P/B

(TTM) D/Y

(%)

Saudi Basic Indust Corp 99 123.8 -1 1.1 6.5 17.3 2.1 3.5

Saudi Telecom 57.2 107.2 1.1 7.8 16.8 19.9 3.3 3.7

Al Rajhi Bank 46.2 106.6 3.5 6.2 21.8 16.8 3.6 4

National Comm Bank 43.9 54.9 3.8 5.4 14.7 15.4 2.8 3.9

Samba Fin. Group 20.5 38.4 2.7 5.3 22.3 13.9 1.8 4.7

Riyad Bank 19.3 24.1 0.9 8 21.5 15.3 2 3.2

Saudi Electricity 18.3 16.5 -1 -0.1 9 39.1 0.9 4.2

Saudi Arabian Mining 17.1 54.8 -0.4 0.2 11.2 34.7 2.3 0

Saudi British Bank 15.1 37.7 3.3 3.3 15.5 11.5 1.7 5.2

Almarai 14.7 55.1 0.2 2.2 14.8 28.3 3.9 1.5

Top Gainers

Companies Last

(SAR) 1Wk (%)

MTD

(%) YTD (%)

P/E

(TTM)

P/B

(TTM) D/Y (%)

Al Tayyar Travel Group 28.3 7.2 17 41.5 NA 1 1.7

Herfy Food Services 54.8 6.2 11.4 20.2 17.4 3.8 3.9

United Intl Transp 32.4 5.4 10.4 22.8 13.5 2 4.7

Banque Saudi Fransi 37 3.9 2.4 17.7 13.4 1.4 3.4

Yamama Cement 15.4 3.9 10.2 20.7 NA 0.9 0

Top Losers

Companies Last

(SAR)

1Wk

(%)

MTD

(%)

YTD

(%)

P/E

(TTM)

P/B

(TTM)

D/Y

(%)

Al Rajhi Co for Coop Insur 65.1 -12 -13 -2.7 11.8 3.4 NA

Saudi Cable 43.5 -8.6 -6 13.9 NA 5.5 NA

Saudi Enaya Coo Ins 13.4 -7.2 -1.5 -35.6 NA 5.2 NA

Zamil Industrial Invest 18 -6.6 -1.2 3.4 NA 0.8 0

Arabian Shield Insur 17.3 -6.3 -6.2 -5.8 15.2 1.2 0

Most Active (Volume)

Most Active Volume

Volume

Traded

(Mn)

1Wk

(%)

YTD

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

Saudi Kayan Petchem 58.8 -4.2 6.7 12.4 1.3 NA

Alinma Bank 42 -2.7 5.4 14.3 1.7 4.1

Abdullah Abdul Mohsin 41.5 -5.2 -12.2 NA 0.9 0

Al Tayyar Travel Group 39.9 7.2 41.5 NA 1 1.7

Dar Al Arkan Real Estate 37.7 -2.5 19.3 22.8 0.6 4.6

Most Active (Value)

Most Active Value

Value

Traded

(SAR Mn)

1Wk (%) % YTD P/E

(TTM)

P/B

(TTM) D/Y (%)

Al Rajhi Banking & Invest 1831.7 3.5 21.8 16.8 3.6 4

Saudi Basic Indust Corp 1800.2 -1 6.5 17.3 2.1 3.5

Al Tayyar Travel Group 1133.5 7.2 41.5 NA 1 1.7

Alinma Bank 1031.1 -2.7 5.4 14.3 1.7 4.1

Saudi Kayan Petchem 836.3 -4.2 6.7 12.4 1.3 NA

NOMU (Top 5)

Companies M.Cap

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

P/E

(TTM) P/B (TTM)

Al Aseel 220.8 27.6 0.4 8.2 33.7 14.6 1.6

Raydan 91.3 15.2 2.8 1.5 -0.1 12.6 1.2

Baazeem 78 28.9 3.2 -8.5 -0.7 10.8 1.5

Abo Moati 60.4 14.2 5.5 8.9 15.5 12.4 1

Arab Sea 36 13.5 0 4.8 9.8 NA 0.9

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 4.6 3663 3.9 10.4 24.3 -20 272.7 1.4 2.1

Banks 188.8 8506 2.5 5.1 17.9 31.1 14.4 2.2 3.6

Food retail 2 6003 2.4 6.5 1 5.9 28.9 3.1 2.1

Retailing 8.2 7148 1.8 7.1 4.1 21.9 33 6.1 3.1

Transportation 3.2 3752 1.1 3.5 7.9 -13.3 20.2 1.6 4.2

Diversified Financials 9.2 3718 0.6 2.1 6.9 -13.7 NA 1 3.2

Telecommunication 62.9 6511 0.2 8.7 20.5 27.1 27.4 2.3 2.7

Food & Beverages 22 4325 -0.2 0.5 11.3 -20.6 225.5 2.5 2.1

Health Care 5.8 3781 -0.2 0.5 0.6 -15.4 22.2 2.3 2.7

Utilities 19.1 3688 -0.5 0.7 9.5 -26.1 35.5 1 4.3

Materials Industry 173.7 5760 -0.6 1.9 9.7 3.9 19 1.8 3.2

Real Estate 20.8 3282 -0.6 -0.9 1.7 -31.3 51.2 1.3 2.2

Pharma & Biotech 0.9 3641 -0.7 3.6 -6.1 -2.3 32.6 1.3 3.6

Energy Industry 8.6 4613 -0.8 0.4 -4.9 13.3 25.8 1.5 3.6

Consumer Durables 0.8 3735 -0.9 3 1.9 -11.5 NA 1.1 2.5

Capital Goods 2.4 4019 -1.9 4.2 3 -10.1 NA 1.2 1.3

Media 1.8 9837 -2.1 -3.8 -3.3 31.6 57.8 6.2 NA

Commercial Services 2.1 4137 -2.3 -3.2 0 -1.6 18.5 4 6

Insurance 10 4123 -4 -3.6 -1.3 -11.6 63.8 2.3 0.6

Asset Class Fixed Income

Corporate Bonds: Top 5 Performance (sorted by weekly

performance)

Name Size ($

Mn)

Close

Price

1Wk

(%)

MTD

(%)

YTD

(%)

Cur.

Yield Duration

Saudi Electricity Global 5.50% 689.8 106.5 0.9 2.1 4.5 5.2 13.5

Acwa Power Mgmt 5.95% 814 100.9 0.6 1.4 7.3 5.9 7.8

Saudi Electricity Global 4.00% 1500 102.5 0.5 1.7 3.3 3.9 4.4

KSA Sukuk Ltd 2.89% 4500 99.7 0.5 1.2 2.3 2.9 2.9

Saudi Electricity Global 5.06% 1000 101.3 0.5 2.2 5.1 5 13.6

Government Debt Instruments: Top 5 Performance (sorted

by weekly performance)

Description Size ($

Mn)

Close

Price

1Wk

(%)

MTD

(%)

YTD

(%)

Cur.

Yiel

d

Duration

KSA 5.00% 17 April 2049 3500 104.2 0.7 2.3 7.3 4.8 15.4

KSA 2.89% 20 April 2022 4500 99.7 0.5 1.2 2.3 2.9 2.9

KSA 4.50% 26 October 2046 6500 98.4 0.4 2 7.7 4.6 15.3

KSA 3.63% 20 April 2027 4500 99.7 0.3 1.5 3.1 3.6 6.8

KSA 4.50% 17 April 2030 3000 105.1 0.2 1.8 5 4.3 8.6

ASSET CLASS: REAL ESTATE

Index M.Cap ($ Bn) Last 1Wk

(%)

MTD

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

Tadwaul REIT Index 3.2 3673 0.3 2.3 1.4 5.8

NAREIT 1095.6 732 0.7 4.1 16.4 3.9

ASSET CLASS: COMMODITIES

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

ICE Brent (Spot Prices $/bl) 68 0.4 3 2.1 -0.9

Arab Light Crude (Spot $/bl) 67.9 -1.4 1.9 4.3 2.3

Gold (Spot prices $/Oz) 1290.6 -1.4 -1.7 -0.9 0.8

Source: Tadawul, Reuters Eikon, Bloomberg

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

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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