Weekly Report – Saudi Arabia

December 16, 2018

2

Key Stories of the week

KSA’s crude production reaches 11.02 mbpd in

November

According to OPEC’s latest report, Saudi

Arabia’s crude oil output averaged 11.02

mbpd, rising 377,000 bpd in November.

However, total OPEC crude oil output

declined by 11,000 bpd to average 32.97

mbpd. Global oil demand is estimated to rise

by around 1.3 mbpd to average 100.1 mbpd

(down 160,000 bpd from the previous

forecast). Meanwhile, OPEC’s crude oil

demand is forecasted to reach 31.4 mbpd in

2019. Moreover, non-OPEC oil supply growth

is estimated to stand at 2.5 mbpd (upwardly

revised 0.2 mbpd from the previous month)

and 2.2 mbpd (revised down by 0.08 mbpd)

in 2018 and 2019, respectively.

Saudi construction material prices increases in 9M

2018

According to the General Authority for

Statistics (GASTAT), prices of construction

material increased in 9M 2018. Cable prices

recorded the highest rise, up 17.7% YoY,

whereas steel prices averaged SAR 2,558.67

per ton (up 14.9% YoY) during the period.

Meanwhile, prices of wood went up by 6.2%

YoY in 9M 2018. On the other hand, prices of

ready-mix concrete averaged SAR 173.69 per

cubic meter, down 4.6% YoY, whereas

cement prices edged down 0.2% YoY during

the nine month period.

Saudi agricultural fund records SAR 6.0 mn surplus

in 2018

The Saudi Agricultural Development Fund

(ADF)’s surplus reached SAR 6 mn in the

current fiscal year. However, surplus is

estimated to increase to SAR 65 mn in 2019.

ADF’s fiscal deficit narrowed to SAR 76 mn in

Q3 2018 (2015: SAR 568.0 mn).

Cement sales in KSA fall 9% in November

The combined sales of 17 Saudi-listed cement

companies declined to 3.5 mn tons in

November 2018, down 9% YoY. Five cement

producers recorded higher sales, led by

Southern Province Cement (up 13.2% YoY),

followed by Yamama Cement (up 12.6%

YoY), Riyadh Cement (up 7.8% YoY) and Al-

Safwa Cement (up 3.8% YoY). Meanwhile, 12

producers posted a decline in sales, with the

sales of Northern Province Cement declined

the most (down 62.4% YoY) followed by City

Cement (down 41% YoY), Qassim Cement

(down 36.4% YoY) and Eastern Province

Cement (down 32.4% YoY) in November.

Furthermore, clinker production stood at 3.9

mn tons, falling 3.6% YoY and clinker

inventories rose 18% YoY to 41.99mn tons

during the month.

Saudi retail sector to grow to USD 119.0 bn by 2023

According to Euromonitor International, Saudi

Arabia’s retails industry (currently worth USD

106 bn) is estimated to rise gradually to USD

119 bn in the five-year period (2018–23).

Store-based retailing, which accounts for USD

103.0 bn of the overall Saudi market, would

continue to dominate. However, non-store

retailing (which includes direct selling, social

media, online/ home shopping and mobile

internet) would expand by 93% by 2023.

Saudi Aramco awards contract to Arabian Pipes

Co. and Saudi Steel Pipe Co.

Saudi Aramco awarded a contract to

Arabian Pipes Co. worth SAR 49 mn to supply

OCTG steel pipes starting Q2 2019. The

related financial impact is expected to

reflect in Q2 2019. Moreover, Saudi Steel Pipe

Co. won two contracts worth over SAR 75 mn

to supply steel pipes to Saudi Aramco.

Source: Tadawul, Bloomberg, Media reports

Weekly Report – Saudi Arabia

December 16, 2018

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 December 13, 2018

13-Dec,

7,914

6500

7000

7500

8000

8500

4-O

ct

3-N

ov

3-D

ec

2-J

an

1-F

eb

3-M

ar

2-A

pr

2-M

ay

1-J

un

1-J

ul

31-J

ul

30-A

ug

29-S

ep

29-O

ct

28-N

ov

13-Dec,

4.38

3.50

3.75

4.00

4.25

4.50

4.75

2-N

ov

2-D

ec

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

6M -11bps

1M 14.6bps

13-Dec,

61.5

40

50

60

70

80

90

19-O

ct

18-N

ov

18-D

ec

17-J

an

16-F

eb

18-M

ar

17-A

pr

17-M

ay

16-J

un

16-J

ul

15-A

ug

14-S

ep

14-O

ct

13-N

ov

13-D

ec

1M -7.8%

6M -22.6%

13-Dec,

105.4

0

50

100

150

200

250

300

350

400

4-O

ct

3-N

ov

3-D

ec

2-J

an

1-F

eb

3-M

ar

2-A

pr

2-M

ay

1-J

un

1-J

ul

31-J

ul

30-A

ug

29-S

ep

29-O

ct

28-N

ov

6M

1M -20.3%

-21.7%

13-Dec,

4.05

3.00

3.25

3.50

3.75

4.00

4.25

4.50

2-N

ov

2-D

ec

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

6M -26bps

1M 4.6bps

13-Dec,

60.7

40

50

60

70

80

90

19-O

ct

18-N

ov

18-D

ec

17-J

an

16-F

eb

18-M

ar

17-A

pr

17-M

ay

16-J

un

16-J

ul

15-A

ug

14-S

ep

14-O

ct

13-N

ov

13-D

ec

1M -10.3%

6M -21.7%

13-Dec,

16.6

14

15

16

17

18

19

4-O

ct

3-N

ov

3-D

ec

2-J

an

1-F

eb

3-M

ar

2-A

pr

2-M

ay

1-J

un

1-J

ul

31-J

ul

30-A

ug

29-S

ep

29-O

ct

28-N

ov

0.61X

-1.85X

1M

6M

13-Dec,

144.13

110

120

130

140

150

160

170

4-O

ct

3-N

ov

3-D

ec

2-J

an

1-F

eb

3-M

ar

2-A

pr

2-M

ay

1-J

un

1-J

ul

31-J

ul

30-A

ug

29-S

ep

29-O

ct

28-N

ov

1M -1.8 bps

6M -1.5 bps

13-Dec,

1,239.4

1150

1200

1250

1300

1350

1400

5-O

ct

4-N

ov

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

1M 2.2%

6M -1.2%

06-Dec,

4.68

3.5

4.0

4.5

5.0

5.5

27-S

ep

27-O

ct

26-N

ov

26-D

ec

25-J

an

24-F

eb

26-M

ar

25-A

pr

25-M

ay

24-J

un

24-J

ul

23-A

ug

22-S

ep

22-O

ct

21-N

ov

-3bps 1M

-30bps 6M

13-Dec,

2.89

1.50

1.75

2.00

2.25

2.50

2.75

3.00

4-O

ct

3-N

ov

3-D

ec

2-J

an

1-F

eb

3-M

ar

2-A

pr

2-M

ay

1-J

un

1-J

ul

31-J

ul

30-A

ug

29-S

ep

29-O

ct

28-N

ov

1M +8.38bps

6M +29.6bps

13-Dec,

2,779.1

2500

2650

2800

2950

3100

3250

4-O

ct

3-N

ov

3-D

ec

2-J

an

1-F

eb

3-M

ar

2-A

pr

2-M

ay

1-J

un

1-J

ul

31-J

ul

30-A

ug

29-S

ep

29-O

ct

28-N

ov

1M -3.2%

6M -8.6%

3.3%

-4.8 %

1M

6M

Weekly Report – Saudi Arabia

December 16, 2018

4

Key Statistics

Asset Class Equity

Indices

Index M.Ca

p $ Bn

Last

Close

1Wk

(%)

MTD

(%)

YTD

(%)

2017

(%)

P/E

(TTM)

P/B

(TTM)

D/Y

(%)

Tadawul All Share 498.1 7914 0.8 2.7 9.5 0.2 17 1.8 3.5

S&P Saudi Sharia 317.6 1013 0.2 2.6 8.7 0.4 18.6 1.9 3.7

NOMU Index 0.6 2515 4.1 5.7 -19.9 -47.7 8.1 1.2 9

MSCI EM Index 12659 979 0 -1.6 -15.5 34.9 11.8 1.5 3

Volume & Value

Index Volume (Mn) % Change

Weekly Value (SAR Mn)

Tadawul All Share Index 531.9 -26 11338.9

Parallel Market Index (NOMU) 0.7 7.3 12.1

Tadawul (Top 10)

Companies M.Cap

$ Bn

Last

(SAR)

1Wk

(%)

MTD

(%)

YTD

(%)

P/E

(TTM) P/B

(TTM) D/Y

(%)

Saudi Basic Indust Corp 96 120 -0.7 2.2 17.7 16.4 2.1 3.7

Saudi Telecom 46.2 86.6 2.2 4.3 26.2 16.8 2.6 4.7

National Comm Bank 38.5 48.1 5.1 6.9 -12.6 13.6 2.6 2.9

Al Rajhi Banking 37.6 86.7 0 1.3 34.2 14.1 2.7 5.2

Saudi Electricity 17.5 15.8 2.5 6.9 -25 1779 0.8 4.5

Samba Financial 17 31.8 1.6 2.9 35.5 12 1.5 4.9

Saudi Arabian Mining 15.8 50.8 1.2 8.5 -2.1 40.5 2.2 0

Riyad Bank 14.2 17.8 -0.2 1.7 42.4 12.3 1.5 4.2

Almarai 13.5 50.6 -1.9 3.5 -5.9 24.4 3.8 1.5

Saudi British Bank 13.3 33.2 1.1 2.2 23 11.2 1.5 5

Top Gainers

Companies Last

(SAR) 1Wk (%)

MTD

(%) YTD (%)

P/E

(TTM)

P/B

(TTM) D/Y (%)

Saudi Enaya Coo Ins 19.9 33.3 39.4 8.5 NA 4.5 NA

Allianz Saudi Fransi Insur 31.7 21.5 26.3 -8 16.3 2.2 NA

Amana Coop Insur 25 21 29.1 13 NA 3.1 NA

Eastern Province 22.8 11.4 17.4 -13.7 37.7 0.9 4.6

CHUBB Arabia Coop 20 9.1 12.5 -15.4 10.8 1.4 0

Top Losers

Companies Last

(SAR)

1Wk

(%)

MTD

(%)

YTD

(%)

P/E

(TTM)

P/B

(TTM)

D/Y

(%)

Al Jazira Mawten REIT 15.5 -3.2 -4.2 -11.5 NA NA 3.2

Saudi Cable 36 -3.1 -3 -24 NA 4.6 NA

Banque Saudi Fransi 31.4 -2.9 -6.1 9.6 10.9 1.2 4

Saudi Arabian Refineries 41.4 -2.9 -1.5 33 57.4 1.3 1.2

United Electronics 58.7 -2.8 -0.8 24 18.1 3.1 3

Most Active (Volume)

Most Active Volume

Volume

Traded

(Mn)

1Wk

(%)

YTD

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

Mobile Telecom 56.4 2.1 -1.6 NA 1.2 NA

Alinma Bank 51.5 0.6 16.3 13.7 1.7 3.6

Saudi Kayan Petchem 29.5 1 32.6 13.3 1.4 NA

Dar Al Arkan Real Estate 26.5 1.1 -38.5 12 0.5 5.6

Saudi Enaya Coo Ins 16.4 33.3 8.5 NA 4.5 NA

Most Active (Value)

Most Active Value

Value

Traded

(SAR Mn)

1Wk (%) % YTD P/E

(TTM)

P/B

(TTM) D/Y (%)

Saudi Basic Indust Corp 1450 -0.7 17.7 16.4 2.1 3.7

Alinma Bank 1137.6 0.6 16.3 13.7 1.7 3.6

Al Rajhi Banking & Invest 743.3 0 34.2 14.1 2.7 5.2

Saudi Industrial Export 725.5 3 -33.8 NA 26.7 NA

Saudi Kayan Petchem 414.5 1 32.6 13.3 1.4 NA

NOMU (Top 5)

Companies M.Cap

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

P/E

(TTM) P/B (TTM)

Al Aseel 175.1 21.9 -0.4 -0.5 -30.1 11.8 1.2

Raydan 88.9 14.8 19.5 28.6 -15.3 12.3 1.2

Baazeem 76.9 28.5 7.5 5.6 5.8 10.7 1.5

Abo Moati 47.9 11.2 4.3 12.5 -11.7 9.9 0.8

Arab Sea 29.9 11.2 4.7 9.8 -7.7 NA 0.7

Tadawul Indices (sorted by weekly performance)

Index M.Ca

p $ Bn

Last

Close

1Wk

(%)

MTD

(%)

YTD

(%)

2017

(%)

P/E

(TTM) P/B

(TTM) D/Y

(%)

Health Care 5.8 3842 3.7 4 -13.5 -11.5 20.1 2.4 3.7

Insurance 9.8 4299 3.1 8.6 -9 -3.8 90.2 2.4 0.5

Telecommunication 50.1 5243 2.7 5.5 23.3 -15 27.3 1.9 3.4

Diversified Financials 8.3 3434 2.5 2.7 -14.8 -19.2 NA 0.9 3.6

Utilities 18 3498 2 6 -23.3 -6.2 181.4 0.9 4.6

Real Estate 20.8 3317 1.8 1.6 -29.4 -6.4 24.2 1.4 2.2

Transportation 3.2 3595 1.3 0.2 -10.4 -21.3 21.3 1.5 4.2

Banks 162.8 7107 0.9 2.4 29.2 8.2 12.7 1.8 4.2

Consumer Durables 0.8 3721 0.8 1.7 -10.1 -10.9 NA 1.1 2.5

Commercial Services 2.2 4459 0.8 4.1 6 -16.6 19 4.1 5.7

Consumer Services 3.8 3065 0.5 1.8 -16.8 -23.7 264.8 1.1 2.4

Food retail 2.1 6062 0.4 4.5 8 11 24.4 3.3 2.1

Materials Industry 165 5509 0.4 3 9 1.4 17.1 1.8 3.1

Pharma & Biotech 0.9 3879 0.3 0.2 -2.3 -26.2 27 1.2 5.1

Capital Goods 2.3 4039 0.3 1.9 -7 -13 NA 1.2 1.7

Retailing 8.1 6903 -0.5 0.6 22.5 14.7 32.3 5.7 3.1

Media 2.1 11201 -0.9 1.2 44.8 51.1 66.5 6.9 NA

Food & Beverages 20.1 3925 -1.1 0.5 -19.9 -0.1 58.7 2.2 2.4

Energy Industry 9 4966 -1.2 1.4 16 -14 18.8 1.6 3.5

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 5.06% 1000 95.4 0.8 1.8 -1.8 5.3 13.5

Saudi Electricity Global 5.50% 689.8 100.8 0.7 1.7 0.4 5.5 13.5

Acwa Power Mgmt 5.95% 814 94.2 0.5 1.2 -7.1 6.3 7.6

KSA Sukuk Ltd 2.89% 4500 97.4 0.3 0.1 -2.9 3 3.1

Saudi Electricity Global 3.47% 1000 97.6 0.2 0.3 -4 3.6 3.9

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 97.2 0.6 0.5 0 5.2 15.2

KSA 4.50% 17 April 2030 3000 99.2 0.6 0.7 0 4.5 8.7

KSA 4.63% 04 October 2047 4500 92 0.4 0.5 -10.7 5 15.1

KSA 4.50% 26 October 2046 6500 91.2 0.4 0 -9.3 4.9 15.1

KSA 3.63% 04 March 2028 5000 94.3 0.4 0.4 -5.2 3.8 7.6

ASSET CLASS: REAL ESTATE

Index M.Cap ($ Bn) Last 1Wk

(%)

MTD

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

Tadwaul REIT Index 3.1 3622 -0.2 0.6 -21.8 4.6

NAREIT 1048 673 -3.7 -2.1 -1.5 4.1

ASSET CLASS: COMMODITIES

Name Last 1Wk (%) MTD (%) YTD (%) 2017 %

ICE Brent (Spot Prices $/bl) 61.5 1.9 3.7 -7.8 17.7

Arab Light Crude (Spot $/bl) 60.7 -0.8 3.1 -6.7 11.1

Gold (Spot prices $/Oz) 1239.4 1.0 1.3 -4.9 13.5

Source: Tadawul, Reuters Eikon, Bloomberg

Note: NM – Not meaningful (e.g. negative PE ratio); NA – Not available; Data as of December 13, 2018

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