Monthly Report
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
TASI ended the month on 6871.24 points, a 2.0% decline MoM compared to April 2017 .Total value traded stood at SAR 64.6bn. Basic Materials and Banks sectors accounted for 43.4% of the total value traded. Retailing and Food & Beverages were the best performing sectors, showing an increase of 4.1%MoM and 3.5%MoM respectively. While Capital goods and REITs sectors were the worst performers showing a decline of 13.9%MoM and 11.3%MoM respectively.
TASI Movement During May
Source: Bloomberg, Aljazira Capital 4.00
7,050 7,000
3.00
6,950 6,900
TASI started the month at 7013.47 points and closed at 6,871.24 with an average daily value traded of SAR 2.81bn compared to 3.11bn in April.
2.00
6,850 6,800
5
6
7
8
9
10
11
12
13
Value Traded-RHS
14
15
16
17
19
20
21
22
23
-20.0% -25.0%
MoM Performance
Pharma & Bio Tech
-15.0%
Banks
Healthcare Food & Staples
5.0% -10.0%
Food & Beverages
Media Retailing
Consumer Services
Consumer Durables
Source: Bloomberg, Aljazira Capital
Transportation
Commercial Service
Capital Goods
0.0%
Materials
5.0%
TASI
10.0%
Energy
15.0%
18
1.00 31-May-17 -
Closing Price -LHS
Sectors Performance 20.0%
26-May-17
Real Estate
4
21-May-17
Utilities
3
16-May-17
RETs
2
11-May-17
Telecom
1
6-May-17
Insurance
1-May-17
Diversified Financials
6,750
TASI declined 366.7 points by end of May (down 2.7%YoY). On a YTD basis, Retailing and REITs sectors showed the highest YTD increase of 16.4% and 14.6% respectively. On other hand Transportation and Consumer Services were the worst performing sectors recording a decline of 22.5% and 17.5% respectively.
YTD
Value Traded per Sector (%)
Source: TADAWUL, Aljazira Capital
24.00% 20.00% 16.00% 12.00% 8.00%
Real Estate
REITs
Utilities
Telecom
Insurance
Banks
Pharma & Bio Tech
Healthcare
Food & Beverages
Food & Staples
Retailing
Media
Consumer Services
Consumer Durables
Transportation
Commercial Service
Capital Goods
© All rights reserved
Diversified Financials
1
Materials
0.00%
Energy
4.00%
Basic Materials and Banks were the highest traded sectors, accounting for 23.0% and 20.5%, respectively, of total value traded in May. On the other hand, Pharma and Diversified Financials were the lowest, accounting for 0.08% and 0.35% respectively.
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
GCC Market Performance
Source: Bloomberg, Aljazira Capital 22.3%
18.5%
On a Monthly basis, all GCC markets showed a decline. Kuwait market index declined the least 0.8%MoM. Dubai was the worst performer recording a decline of 2.2%MoM.
13.5% 11.1%
8.5% 3.5%
Dubai (DFMGI)
Abu dahbi (ADSMI)
Qatar
Kuwait
MoM Performance
Bahrain
YTD
Top/Worst Performing Companies (May 2017)
18.6% 12.6%
11.7%
-19.7%
-20.1%
-21.5%
-21.7%
-30.0%
Companies with lowest PE 9.00 8.00 7.00
6.19
6.00
2
© All rights reserved
7.83
7.94
7.98
7.99
8.00
8.21
8.42
8.47
8.50
8.56
Zamil Indust
Gulf Union
WALAA
Aljazira Bank
Sagr Insurance
ALTAYYAR
saib
ALYAMAMAH STEEL
BABTAIN AL-
Solidarity
Buruj
Arab National Bank
3.00
7.36
On a monthly basis, Sharqiya Dev Co was the best performing stock recording an increase of 24.1%MoM followed by TALEEM REIT which showed increase of 21.0%MoM. On the other hand, Sagr Insurance was the worst performing stock recording a 25.0% decline, followed by Nama Chemical which showed a decline of 21.7%MoM.
Source: TADAWUL, Aljazira Capital 8.62
4.40
UCA
4.00
MESC
5.00
6.98
-25.0%
SAICO
-20.0%
JADWA REIT ALHARAMAIN
-10.0%
Sharqiya Dev Co
0.0%
TALEEM REIT
10.0%
Sipchem
20.0%
Source: TADAWUL, Aljazira Capital
Petro Rabigh
21.0%
Chemical
24.1%
Salama
30.0%
Oman
Nama Chemicals
TASI
-4.0%
MEDGULF
-6.5%
-2.4%
-2.3%
Sagr Insurance
-1.4%
-2.9% -1.5%
MESC had the lowest P/E of 4.40x by the end of May, followed by United Cooperative Assurance at 6.19x and Arab National Bank at 6.98x.
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
Economic Data SAIBOR
Source: Bloomberg, Aljazira Capital
2.50% 2.35%
SAIBOR 3M
2.20%
SAIBOR 6M
2.05% 1.90%
3-month and 6-month SAIBOR ended the month at 1.724% and 2.001% respectively. The 3-month SAIBOR showed a decline of 0.4%MoM, while 6-month SAIBOR showed a decline of 0.2%MoM.
1.75% 1.60% May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar -17
Inflation Rate
May-17
Source: SAMA, Aljazira Capital
4.20%
Inflation rate stood at -0.6% at the end of April a decrease from -0.4% in March 2017.
3.20% 2.20% 1.20% 0.20% -0.80%
Mar-16
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Deposits & loans
Mar-17
Source: SAMA, Aljazira Capital
5.5%
90%
4.0%
88%
2.5%
86%
1.0%
84%
Changes in Loans(LHS)
Changes In Deposits(LHS)
Mar-17
Dec-16
Sep-16
Jun-16
Mar-16
Dec-15
Sep-15
Jun-15
Mar-15
Dec-14
Sep-14
Jun-14
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
78%
Dec-12
-3.5%
Sep-12
80% Jun-12
82%
-2.0% Mar-12
-0.5%
ADR(RHS)
Change in Loans by Maturity (%)
Source: SAMA, Aljazira Capital 16.0%
45.0%
13.0%
30.0%
10.0% 7.0%
15.0%
4.0%
0.0%
Less than 1 Year (%) -LHS
3
© All rights reserved
1 to 3 year (%) -LHS
Above 3 year (%) -LHS
Apr-17
Feb-17
Dec-16
Oct-16
Aug-16
Jul-16
Apr-16
Feb-16
Dec-15
Oct-15
Aug-15
Jul-15
Apr-15
Feb-15
Dec-14
Oct-14
Aug-14
Jul-14
1.0% Apr-14
-15.0%
Deposits showed an increase of SAR 2.70bn (0.2%MoM), while loans showed an increase of SAR 2.8bn (0.2%MoM) by end of April.
-2.0%
Tota loan YoY Growth (%) -RHS
Total loans showed a decline of 0.6%YoY, the highest increase was for loans with maturity above 3 years which showed an increase of 10.4%YoY, while loans of maturity of 1-3 year showed a decline of 5.6%YoY.
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
Demand - Time and Saving Deposits
Source: SAMA, Aljazira Capital
65,000
1,700,000
40,000
1,500,000
15,000
1,300,000
-10,000
1,100,000
-35,000
900,000
-60,000
Apr-12
Jul-12
Nov-12
Demand Deposit (LHS)
Mar-13
Jul-13
Nov-13 Mar-14 Jul-14
Time & Savings Deposits (LHS)
Nov-14 Mar-15 Jul-15
Other Deposits (LHS)
Nov-15 Mar-16 Jul-16
700,000
Demand deposits showed an increase of SAR 17.8bn (1.8%MoM), while Time & Saving deposits showed a decline of SAR 22.7bn (4.9%MoM). On the other hand government deposits showed an increase of 0.8%MoM.
Nov-16 Apr-17
Government Deposits ( includes all types of deposits)(RHS)
POS (Point of Sale)
Source: SAMA, Aljazira Capital 60.0
18.0 50.0
16.0
40.0
14.0
30.0
4
© All rights reserved
Apr-17
Feb-17
No. of Transactions (mn) (RHS)
Dec-16
Oct-16
Aug-16
Jun-16
Apr-16
Feb-16
Dec-15
Oct-15
Sales(bn) (LHS)
Aug-15
Jun-15
Apr-15
Feb-15
Dec-14
Oct-14
Aug-14
Jun-14
10.0
Apr-14
12.0
20.0
Point of Sales showed an increase of 1.0%MoM and stood at SAR 16.5bn, with total number of transactions standing at 55.5mn.
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
Commodities Prices Oil Prices *
Source: Bloomberg, Aljazira Capital 5
58 3
53
Brent and WTI showed a decline of 2.7%MoM and 2.0%MoM respectively, and closed at $50.31 and $48.32.
1
48
-1
43
38 Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Spread(RHS)
Nov-16
Brent(LHS)
Dec-16
Jan-17
Feb-17
Mar-17
-3 Apr-17
WTI(LHS)
Gold & Silver (% Monthly change)
Source: Bloomberg, Aljazira Capital
Changes in Silver Price(LHS)
Copper
May-17
Feb-17
Nov-16
Aug-16
May-16
Feb-16
Nov-15
Aug-15
Nov-12
Changes in Gold Price(LHS)
May-15
50
Feb-15
-15.0%
Nov-14
55
Aug-14
60
-10.0%
May-14
65
-5.0%
Feb-14
70
0.0%
Nov-13
5.0%
Aug-13
75
May-13
10.0%
Feb-13
80
Aug-12
85
15.0%
May-12
20.0%
Gold and Silver showed an increase of 0.1%MoM and 0.7%MoM respectively, and closed the month at $1268.9 and $17.3.
G/S(RHS)
Source: Bloomberg, Aljazira Capital
280
260
Copper showed a decline of 0.6%MoM and ended at $258.0.
240
220
200 May-16
Jul-16
Sep-16
Nov-16
Jan-17
Steel **
Mar-17
May-17
Source: Bloomberg, Aljazira Capital
650
Steel showed a decline of 6.5%MoM and ended the month at $575.
600
550
500
450
May-16
5
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
*July 2017 contract for Brent, June 2017 contract for WTI. ** HRC1 Index
© All rights reserved
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
Exchange Rate Dollar Index
Source: Bloomberg, Aljazira Capital
104
Dollar Index showed a decline of 2.1%MoM by the end of May and stood at 96.9 points.
102 100 98 96 94 92 May -16
Jun-16
Jul-16
Aug -16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
EUR/USD
Feb-17
Mar -17
Apr -17
May -17
Source: Bloomberg, Aljazira Capital
1.15
Euro depreciated against the Dollar by 3.2%MoM and stood at 1.1244 EUR/USD.
1.11
1.07
1.03 May-16
Jun-16
Jul-16
Aug -16
Sep-16
Oct- 16
Nov-16
Dec-16
Jan-17
USD/YUAN
Feb-17
Mar-17
Apr-17
May-17
Source: Bloomberg, Aljazira Capital
7
6 .9
YUAN appreciated by 1.1%MoM against the Dollar and stood at 6.818 YUAN/ USD.
6 .8
6 .7
6 .6
6 .5 M ay -1 6
Jun- 1 6
Jul-1 6
Aug- 1 6
Se p- 16
O ct-1 6
Nov -1 6
De c- 1 6
Jan- 17
YEN/USD
Fe b- 17
M ar- 17
Apr-1 7
M ay -1 7
Source: Bloomberg, Aljazira Capital
119
YEN appreciated by 0.9%MoM against the Dollar and stood at 110.78 YEN/USD.
116 113 110 107 104 101 98 May-16
6
Jun-16
Jul-16
© All rights reserved
Aug-16
Sep-16
Oct-16
Nov-1 6
Dec-16
Jan -17
Feb-17
Mar-17
Apr-17
May-17
RESEARCH DIVISION
Acting Head of Research
RESEARCH DIVISION
BROKERAGE AND INVESTMENT CENTERS DIVISION
Talha Nazar
Sultan Al Kadi
Analyst
Jassim Al-Jubran
+966 11 2256250 [email protected]
+966 11 2256374 [email protected]
Analyst
Analyst
Waleed Al-jubayr
Muhanad Al-Odan
+966 11 2256146 [email protected]
+966 11 2256115 [email protected]
General Manager – Brokerage Services &
AGM-Head of international and institutional
AGM- Head of Western and Southern Region Investment
sales
brokerage
Centers
Alaa Al-Yousef
Luay Jawad Al-Motawa
Mansour Hamad Al-shuaibi
+966 11 2256060 [email protected]
+966 11 2256277 [email protected]
AGM-Head of Sales And Investment Centers
AGM-Head of Qassim & Eastern Province
+966 11 2256248 [email protected]
+966 12 6618443 [email protected]
Central Region
Sultan Ibrahim AL-Mutawa
Abdullah Al-Rahit
+966 11 2256364 [email protected]
+966 16 3617547 [email protected]
AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business. 1.
RATING TERMINOLOGY
Analyst
2. 3. 4.
Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target. Stocks rated “Overweight” will typically provide an upside potential of over 10% from the current price levels over next twelve months. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target. Stocks rated “Underweight” would typically decline by over 10% from the current price levels over next twelve months. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated “Neutral” is expected to stagnate within +/- 10% range from the current price levels over next twelve months. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company.
Disclaimer The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by Aljazira Capital from sources believed to be reliable, but Aljazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Aljazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Aljazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Aljazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Aljazira Capital. Funds managed by Aljazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Aljazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Aljazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Aljazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Aljazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations.
Asset Management | Brokerage | Corporate Finance | Custody | Advisory Head Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia، Tel: 011 2256000 - Fax: 011 2256068
Aljazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No. 07076-37
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
TASI ended the month on 6871.24 points, a 2.0% decline MoM compared to April 2017 .Total value traded stood at SAR 64.6bn. Basic Materials and Banks sectors accounted for 43.4% of the total value traded. Retailing and Food & Beverages were the best performing sectors, showing an increase of 4.1%MoM and 3.5%MoM respectively. While Capital goods and REITs sectors were the worst performers showing a decline of 13.9%MoM and 11.3%MoM respectively.
TASI Movement During May
Source: Bloomberg, Aljazira Capital 4.00
7,050 7,000
3.00
6,950 6,900
TASI started the month at 7013.47 points and closed at 6,871.24 with an average daily value traded of SAR 2.81bn compared to 3.11bn in April.
2.00
6,850 6,800
5
6
7
8
9
10
11
12
13
Value Traded-RHS
14
15
16
17
19
20
21
22
23
-20.0% -25.0%
MoM Performance
Pharma & Bio Tech
-15.0%
Banks
Healthcare Food & Staples
5.0% -10.0%
Food & Beverages
Media Retailing
Consumer Services
Consumer Durables
Source: Bloomberg, Aljazira Capital
Transportation
Commercial Service
Capital Goods
0.0%
Materials
5.0%
TASI
10.0%
Energy
15.0%
18
1.00 31-May-17 -
Closing Price -LHS
Sectors Performance 20.0%
26-May-17
Real Estate
4
21-May-17
Utilities
3
16-May-17
RETs
2
11-May-17
Telecom
1
6-May-17
Insurance
1-May-17
Diversified Financials
6,750
TASI declined 366.7 points by end of May (down 2.7%YoY). On a YTD basis, Retailing and REITs sectors showed the highest YTD increase of 16.4% and 14.6% respectively. On other hand Transportation and Consumer Services were the worst performing sectors recording a decline of 22.5% and 17.5% respectively.
YTD
Value Traded per Sector (%)
Source: TADAWUL, Aljazira Capital
24.00% 20.00% 16.00% 12.00% 8.00%
Real Estate
REITs
Utilities
Telecom
Insurance
Banks
Pharma & Bio Tech
Healthcare
Food & Beverages
Food & Staples
Retailing
Media
Consumer Services
Consumer Durables
Transportation
Commercial Service
Capital Goods
© All rights reserved
Diversified Financials
1
Materials
0.00%
Energy
4.00%
Basic Materials and Banks were the highest traded sectors, accounting for 23.0% and 20.5%, respectively, of total value traded in May. On the other hand, Pharma and Diversified Financials were the lowest, accounting for 0.08% and 0.35% respectively.
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
GCC Market Performance
Source: Bloomberg, Aljazira Capital 22.3%
18.5%
On a Monthly basis, all GCC markets showed a decline. Kuwait market index declined the least 0.8%MoM. Dubai was the worst performer recording a decline of 2.2%MoM.
13.5% 11.1%
8.5% 3.5%
Dubai (DFMGI)
Abu dahbi (ADSMI)
Qatar
Kuwait
MoM Performance
Bahrain
YTD
Top/Worst Performing Companies (May 2017)
18.6% 12.6%
11.7%
-19.7%
-20.1%
-21.5%
-21.7%
-30.0%
Companies with lowest PE 9.00 8.00 7.00
6.19
6.00
2
© All rights reserved
7.83
7.94
7.98
7.99
8.00
8.21
8.42
8.47
8.50
8.56
Zamil Indust
Gulf Union
WALAA
Aljazira Bank
Sagr Insurance
ALTAYYAR
saib
ALYAMAMAH STEEL
BABTAIN AL-
Solidarity
Buruj
Arab National Bank
3.00
7.36
On a monthly basis, Sharqiya Dev Co was the best performing stock recording an increase of 24.1%MoM followed by TALEEM REIT which showed increase of 21.0%MoM. On the other hand, Sagr Insurance was the worst performing stock recording a 25.0% decline, followed by Nama Chemical which showed a decline of 21.7%MoM.
Source: TADAWUL, Aljazira Capital 8.62
4.40
UCA
4.00
MESC
5.00
6.98
-25.0%
SAICO
-20.0%
JADWA REIT ALHARAMAIN
-10.0%
Sharqiya Dev Co
0.0%
TALEEM REIT
10.0%
Sipchem
20.0%
Source: TADAWUL, Aljazira Capital
Petro Rabigh
21.0%
Chemical
24.1%
Salama
30.0%
Oman
Nama Chemicals
TASI
-4.0%
MEDGULF
-6.5%
-2.4%
-2.3%
Sagr Insurance
-1.4%
-2.9% -1.5%
MESC had the lowest P/E of 4.40x by the end of May, followed by United Cooperative Assurance at 6.19x and Arab National Bank at 6.98x.
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
Economic Data SAIBOR
Source: Bloomberg, Aljazira Capital
2.50% 2.35%
SAIBOR 3M
2.20%
SAIBOR 6M
2.05% 1.90%
3-month and 6-month SAIBOR ended the month at 1.724% and 2.001% respectively. The 3-month SAIBOR showed a decline of 0.4%MoM, while 6-month SAIBOR showed a decline of 0.2%MoM.
1.75% 1.60% May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar -17
Inflation Rate
May-17
Source: SAMA, Aljazira Capital
4.20%
Inflation rate stood at -0.6% at the end of April a decrease from -0.4% in March 2017.
3.20% 2.20% 1.20% 0.20% -0.80%
Mar-16
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Deposits & loans
Mar-17
Source: SAMA, Aljazira Capital
5.5%
90%
4.0%
88%
2.5%
86%
1.0%
84%
Changes in Loans(LHS)
Changes In Deposits(LHS)
Mar-17
Dec-16
Sep-16
Jun-16
Mar-16
Dec-15
Sep-15
Jun-15
Mar-15
Dec-14
Sep-14
Jun-14
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
78%
Dec-12
-3.5%
Sep-12
80% Jun-12
82%
-2.0% Mar-12
-0.5%
ADR(RHS)
Change in Loans by Maturity (%)
Source: SAMA, Aljazira Capital 16.0%
45.0%
13.0%
30.0%
10.0% 7.0%
15.0%
4.0%
0.0%
Less than 1 Year (%) -LHS
3
© All rights reserved
1 to 3 year (%) -LHS
Above 3 year (%) -LHS
Apr-17
Feb-17
Dec-16
Oct-16
Aug-16
Jul-16
Apr-16
Feb-16
Dec-15
Oct-15
Aug-15
Jul-15
Apr-15
Feb-15
Dec-14
Oct-14
Aug-14
Jul-14
1.0% Apr-14
-15.0%
Deposits showed an increase of SAR 2.70bn (0.2%MoM), while loans showed an increase of SAR 2.8bn (0.2%MoM) by end of April.
-2.0%
Tota loan YoY Growth (%) -RHS
Total loans showed a decline of 0.6%YoY, the highest increase was for loans with maturity above 3 years which showed an increase of 10.4%YoY, while loans of maturity of 1-3 year showed a decline of 5.6%YoY.
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
Demand - Time and Saving Deposits
Source: SAMA, Aljazira Capital
65,000
1,700,000
40,000
1,500,000
15,000
1,300,000
-10,000
1,100,000
-35,000
900,000
-60,000
Apr-12
Jul-12
Nov-12
Demand Deposit (LHS)
Mar-13
Jul-13
Nov-13 Mar-14 Jul-14
Time & Savings Deposits (LHS)
Nov-14 Mar-15 Jul-15
Other Deposits (LHS)
Nov-15 Mar-16 Jul-16
700,000
Demand deposits showed an increase of SAR 17.8bn (1.8%MoM), while Time & Saving deposits showed a decline of SAR 22.7bn (4.9%MoM). On the other hand government deposits showed an increase of 0.8%MoM.
Nov-16 Apr-17
Government Deposits ( includes all types of deposits)(RHS)
POS (Point of Sale)
Source: SAMA, Aljazira Capital 60.0
18.0 50.0
16.0
40.0
14.0
30.0
4
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Apr-17
Feb-17
No. of Transactions (mn) (RHS)
Dec-16
Oct-16
Aug-16
Jun-16
Apr-16
Feb-16
Dec-15
Oct-15
Sales(bn) (LHS)
Aug-15
Jun-15
Apr-15
Feb-15
Dec-14
Oct-14
Aug-14
Jun-14
10.0
Apr-14
12.0
20.0
Point of Sales showed an increase of 1.0%MoM and stood at SAR 16.5bn, with total number of transactions standing at 55.5mn.
Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
Commodities Prices Oil Prices *
Source: Bloomberg, Aljazira Capital 5
58 3
53
Brent and WTI showed a decline of 2.7%MoM and 2.0%MoM respectively, and closed at $50.31 and $48.32.
1
48
-1
43
38 Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Spread(RHS)
Nov-16
Brent(LHS)
Dec-16
Jan-17
Feb-17
Mar-17
-3 Apr-17
WTI(LHS)
Gold & Silver (% Monthly change)
Source: Bloomberg, Aljazira Capital
Changes in Silver Price(LHS)
Copper
May-17
Feb-17
Nov-16
Aug-16
May-16
Feb-16
Nov-15
Aug-15
Nov-12
Changes in Gold Price(LHS)
May-15
50
Feb-15
-15.0%
Nov-14
55
Aug-14
60
-10.0%
May-14
65
-5.0%
Feb-14
70
0.0%
Nov-13
5.0%
Aug-13
75
May-13
10.0%
Feb-13
80
Aug-12
85
15.0%
May-12
20.0%
Gold and Silver showed an increase of 0.1%MoM and 0.7%MoM respectively, and closed the month at $1268.9 and $17.3.
G/S(RHS)
Source: Bloomberg, Aljazira Capital
280
260
Copper showed a decline of 0.6%MoM and ended at $258.0.
240
220
200 May-16
Jul-16
Sep-16
Nov-16
Jan-17
Steel **
Mar-17
May-17
Source: Bloomberg, Aljazira Capital
650
Steel showed a decline of 6.5%MoM and ended the month at $575.
600
550
500
450
May-16
5
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
*July 2017 contract for Brent, June 2017 contract for WTI. ** HRC1 Index
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Monthly Report
June 2017
Saudi Arabia | Saudi Stock Market | May 2017
Please read Disclaimer on the back
Exchange Rate Dollar Index
Source: Bloomberg, Aljazira Capital
104
Dollar Index showed a decline of 2.1%MoM by the end of May and stood at 96.9 points.
102 100 98 96 94 92 May -16
Jun-16
Jul-16
Aug -16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
EUR/USD
Feb-17
Mar -17
Apr -17
May -17
Source: Bloomberg, Aljazira Capital
1.15
Euro depreciated against the Dollar by 3.2%MoM and stood at 1.1244 EUR/USD.
1.11
1.07
1.03 May-16
Jun-16
Jul-16
Aug -16
Sep-16
Oct- 16
Nov-16
Dec-16
Jan-17
USD/YUAN
Feb-17
Mar-17
Apr-17
May-17
Source: Bloomberg, Aljazira Capital
7
6 .9
YUAN appreciated by 1.1%MoM against the Dollar and stood at 6.818 YUAN/ USD.
6 .8
6 .7
6 .6
6 .5 M ay -1 6
Jun- 1 6
Jul-1 6
Aug- 1 6
Se p- 16
O ct-1 6
Nov -1 6
De c- 1 6
Jan- 17
YEN/USD
Fe b- 17
M ar- 17
Apr-1 7
M ay -1 7
Source: Bloomberg, Aljazira Capital
119
YEN appreciated by 0.9%MoM against the Dollar and stood at 110.78 YEN/USD.
116 113 110 107 104 101 98 May-16
6
Jun-16
Jul-16
© All rights reserved
Aug-16
Sep-16
Oct-16
Nov-1 6
Dec-16
Jan -17
Feb-17
Mar-17
Apr-17
May-17
RESEARCH DIVISION
Acting Head of Research
RESEARCH DIVISION
BROKERAGE AND INVESTMENT CENTERS DIVISION
Talha Nazar
Sultan Al Kadi
Analyst
Jassim Al-Jubran
+966 11 2256250 [email protected]
+966 11 2256374 [email protected]
Analyst
Analyst
Waleed Al-jubayr
Muhanad Al-Odan
+966 11 2256146 [email protected]
+966 11 2256115 [email protected]
General Manager – Brokerage Services &
AGM-Head of international and institutional
AGM- Head of Western and Southern Region Investment
sales
brokerage
Centers
Alaa Al-Yousef
Luay Jawad Al-Motawa
Mansour Hamad Al-shuaibi
+966 11 2256060 [email protected]
+966 11 2256277 [email protected]
AGM-Head of Sales And Investment Centers
AGM-Head of Qassim & Eastern Province
+966 11 2256248 [email protected]
+966 12 6618443 [email protected]
Central Region
Sultan Ibrahim AL-Mutawa
Abdullah Al-Rahit
+966 11 2256364 [email protected]
+966 16 3617547 [email protected]
AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business. 1.
RATING TERMINOLOGY
Analyst
2. 3. 4.
Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target. Stocks rated “Overweight” will typically provide an upside potential of over 10% from the current price levels over next twelve months. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target. Stocks rated “Underweight” would typically decline by over 10% from the current price levels over next twelve months. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated “Neutral” is expected to stagnate within +/- 10% range from the current price levels over next twelve months. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company.
Disclaimer The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by Aljazira Capital from sources believed to be reliable, but Aljazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Aljazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Aljazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Aljazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Aljazira Capital. Funds managed by Aljazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Aljazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Aljazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Aljazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Aljazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations.
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Aljazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No. 07076-37
