march 03, 2019 · with china’s norinco to develop a refining and petrochemical complex in the...
TRANSCRIPT
Saudi Arabia Weekly Review – week ended February 28, 2019
Stories of the week Summary of the week Key movers
Tadawul announces major improvements in NOMU Market
SAMA doesn’t see more bank mergers
Almarai issues international sukuk of USD 500 mn
New Saudi export bank to launch finance services in October
Maaden signs phosphate supply deals worth USD 2 bn with India
Saudi Aramco signs USD 10 bn deal to form China’s largest Sino-foreign JV.
Number of the week
SAR 868 bn Value of KSA’s oil exports in 2018
Saudi equity markets declined during the week with TASI falling 0.6%, while weekly trading volumes increased 9.8%. The fixed income market had a slightly upward movement, with 10 year sovereign yield improving by 0.5 basis points (bps).
On the policy front, Tadawul announced major improvements in Nomu Market, to be implemented in the first half of 2019. In corporate news, Maaden signed two MoUs with India’s firms IPL Co. and KRIBHCO worth USD 2 bn to supply 5 mn tons of phosphate fertilizers for five years. Almarai Co. issued international sukuk of USD 500 mn, which was 10 times oversubscribed.
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: [email protected]
0.5bps
0.6%
0.5%
0.9%
%4.4
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CR: 1010237038 | CCR: 184700 @mefic MEFIC MEFIC Capital
March 03, 2019
Weekly Report – Saudi Arabia
Weekly Report – Saudi Arabia
March 03, 2019
2
Key Stories of the week
Tadawul announces major improvements in
NOMU Market
Tadawul announced major improvements in
Nomu Market, to be implemented in the first
half of 2019, which include:
Enabling direct listing without IPO
Companies have the option of
reporting on semi-annual basis
Reducing normal trade threshold
Including ETFs and REITs in NOMU
market
SAMA doesn’t see more bank mergers
The governor of Saudi Arabian Monetary
Authority (SAMA) has said that the institution
does not see more bank mergers for now
except those already announced. Saudi British
Bank and Alawwal Bank have announced
their merger to create Saudi Arabia’s third-
biggest bank in March, which was followed by
the National Commercial Bank's announcing
commencement of initial talks with Riyad Bank
for a possible merger.
Almarai issues international sukuk of USD 500
mn
Almarai issues international sukuk of USD 500
mn. It is fixed rate senior unsecured sukuk at a
yield of 4.311% and maturity of 5 years. The
issue was more than 10 times oversubscribed.
KSA’s oil exports in 2018 hit SAR 868 bn
The value of KSA’s oil exports in 2018 rose 36%
YoY to SAR 868 bn.
New Saudi export bank to launch finance
services in October
Saudi Arabia’s new export bank will offer
direct and indirect finance as well export
credit services as of October 2019, as per the
Saudi Export Development Authority (SEDA).
“We are working with the competent
government authorities on completing the
regulatory procedures required for setting up
the bank,” SEDA said.
Maaden signs phosphate supply deals worth
USD 2 bn with India
Saudi Arabian Mining Company (Maaden)
signed two MoUs with India’s firms IPL Co. and
KRIBHCO worth USD 2 bn to supply 5 mn tons
of phosphate fertilizers for five years.
Saudi Aramco signs USD 10 bn deal to form
China’s largest Sino-foreign JV
Saudi Aramco signed a USD 10 bn agreement
with China’s Norinco to develop a refining
and petrochemical complex in the Chinese
city of Panjin. Aramco and Norinco will form
Huajin Aramco Petrochemical Company,
which includes a refinery with capacity of
300,000 barrels per day. Saudi Aramco will
supply up to 70% of the complex’s crude
feedstock. The project is expected to be
operational in 2024.
Source: Tadawul, Bloomberg, Media reports
Weekly Report – Saudi Arabia
March 03, 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 February 28, 2019
28-Feb,
8,473
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
8.12%
01-Mar,
4.02
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
6M 17bps
1M 13bps
01-Mar,
66.3
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
1M 7.1%
6M -15.4%
28-Feb,
111.6
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
1M
-38.6%
01-Mar,
3.61
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
6M 15bps
1M 10bps
01-Mar,
67.1
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
1M 8.2%
6M -13.8%
28-Feb,
[VALUE]
12
13
14
15
16
17
22-F
eb
24-M
ar
23-A
pr
23-M
ay
22-J
un
22-J
ul
21-A
ug
20-S
ep
20-O
ct
19-N
ov
19-D
ec
18-J
an
17-F
eb
0.2x
0.8X
1M
6M
28Feb,
139.4
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
1M -0.8bps
6M +1.1bps
01-Mar,
1293
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
1M -2.2%
6M 7.6%
21-Feb,
5.07
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
9bps 1M
-4bps 6M
28-Feb,
2.93
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
1M -5bps
6M +30bps
28-Feb,
[VALUE]
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
1M 4.8%
6M 0.6%
-1,0%
1M
6M
Weekly Report – Saudi Arabia
March 03, 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 540.2 8493 -0.6 -0.8 8.5 8.3 15.2 1.7 3.3
S&P Saudi Sharia 341.6 1112 -0.5 -0.9 8.5 8.1 15.2 1.3 3.2
NOMU Index 1.2 3593 4.4 17.6 42.5 -19.7 9.1 1.7 6.3
MSCI EM Index 13571 1052 0.1 0.2 8.9 34.9 12.1 1.5 2.8
Volume & Value
Index Volume (Mn) % Change
Weekly Value (SAR Mn)
Tadawul All Share Index 503.8 9.8 10814.4
Parallel Market Index (NOMU) 0.5 22.9 10.9
Tadawul (Top 10)
Companies M.Cap
$ Bn
Last
(SAR)
1Wk
(%)
MTD
(%)
YTD
(%)
P/E
(TTM) P/B
(TTM) D/Y
(%)
Saudi Basic Indust Corp 98 122.4 -0.8 5.3 5.1 17.2 2.1 3.6
Saudi Telecom 53 99.4 -1 8.3 8.1 18.6 3.1 4
Al Rajhi Bank 43.6 100.4 -0.4 14.7 14.5 15.9 3.4 4.5
National Comm Bank 27.8 52.1 -1 8.9 8.7 14.8 2.7 2.6
Samba Fin. Group 19.5 36.4 -1.6 16.1 15.9 13.4 1.8 4.2
Saudi Electricity 18.3 16.5 -1.3 9.1 8.9 15 1.9 3.2
Riyad Bank 17.8 22.3 -5.3 12.5 12.3 39.1 0.9 4.2
Saudi Arabian Mining 17.1 54.7 -0.6 11 10.8 34.8 2.3 0
Saudi British Bank 14.6 36.5 -1.6 11.8 11.6 11.3 1.7 4.5
Almarai 14.4 53.9 -2.5 12.3 12.1 28.4 3.9 1.4
Top Gainers
Companies Last
(SAR) 1Wk (%)
MTD
(%) YTD (%)
P/E
(TTM)
P/B
(TTM) D/Y (%)
FITNESS TIME 65 11.1 10.5 10.3 NA NA NA
Etihad Etisalat 19.9 9.6 19.8 19.6 NA 2.2 2.1
Al-baha 22.1 6.3 -6.8 -7 8.4 NA NA
Al-Ahlia 12.4 5.6 9.9 9.7 NA 0.9 2.1
ARDCO 20.1 5.6 14.4 14.2 12.2 1.1 NA
Top Losers
Companies Last
(SAR)
1Wk
(%)
MTD
(%)
YTD
(%)
P/E
(TTM)
P/B
(TTM)
D/Y
(%)
Amana Insurance 14 -11.8 -17.1 -30.3 NA 1.2 0
ALKHODARI 4.3 -8.6 -36.3 4.6 NA 9 NA
MEFIC REIT 8 -7.6 -1.8 -6.1 NA NA NA
Enaya 13.6 -5.6 -34.6 -11.5 NA 2.1 NA
RIBL 22.3 -5.3 12.5 10.8 NA 0.8 0
Most Active (Volume)
Most Active Volume
Volume
Traded
(Mn)
1Wk
(%)
YTD
(%) P/E (TTM) P/B (TTM) D/Y (%)
Abdullah Abdul Mohsin 50.2 -16.5 -30.3 NA 0.7 0
Alinma Bank 30.6 0 4.8 14.3 1.7 3.3
Saudi Kayan Petchem 27.1 -0.7 3.5 12 1.3 NA
Dar Al Arkan Real Estate 24.1 -0.2 13.3 13.8 0.6 4.9
Saudi Arabian Amiantit 18.7 -10.1 4.6 NA 0.8 NA
Most Active (Value)
Most Active Value
Value
Traded
(SAR Mn)
1Wk (%) % YTD P/E
(TTM)
P/B
(TTM) D/Y (%)
Al Rajhi Banking & Invest 1254.4 -0.6 15.2 15.9 3.4 4.5
Saudi Basic Indust Corp 1116.3 -0.5 6.2 17.2 2.1 3.6
Alinma Bank 734.6 0 4.8 14.3 1.7 3.3
Saudi Kayan Petchem 369.6 -0.7 3.5 12 1.3 NA
Saudi Cable 365.4 8.4 26.7 NA 6.1 NA
NOMU (Top 5)
Companies M.Cap
$ mn Last (SAR) 1Wk (%) MTD (%) YTD (%)
P/E
(TTM) P/B (TTM)
Al Aseel 204 25.5 9.9 8.6 22.3 12.5 1.3
Raydan 90 15 0.5 -2.5 -1.6 12.4 1.2
Baazeem 85.6 31.7 1.6 5.3 8.8 11.7 1.7
Abo Moati 55.3 13 2 -0.3 5.6 11.2 0.9
Arab Sea 33.3 12.5 -2.2 -8.5 1.7 NA 0.8
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 4.3 3317 3 3.3 12.6 -20 129.5 1.2 2.2
Telecommunication 58.8 5988 1.5 1.2 10.8 27.1 24.9 2.1 3
Diversified Financials 9 3640 0.9 0.1 4.7 -13.7 NA 1 3.4
Energy 8.3 4596 0.8 -3.6 -5.2 -26.1 24.9 1.5 3.6
Retailing 7.7 6673 0.8 -2.2 -2.8 21.9 32.1 5.6 3
Food retail 1.9 5638 0.7 -3.7 -5.1 5.9 23 3.1 2.1
Insurance 9.8 4278 0.6 -0.5 2.5 -11.6 57.8 2.3 0.6
Transportation 3.1 3627 0.4 0.7 4.3 -13.3 19.7 1.5 4.4
Materials 170.6 5651 0.4 0.3 7.6 3.9 18 1.8 3.4
Media 0 10223 -0.4 -3 0.4 31.6 0 0 NA
Capital Goods 2.3 3856 -0.4 -6.6 -1.1 -10.1 NA 1.2 1.6
Banks 187.4 8094 -0.6 -1.2 12.2 31.1 10.4 1.6 3.7
Real Estate 20.9 3311 -0.9 -0.4 2.7 -31.3 38.4 1.4 2.3
Commercial Services 2.1 4273 -1.2 -2.8 3.3 -1.6 18.3 4 5.8
Utilities 19.2 3661 -1.2 -4.5 8.7 -26.1 37.1 1 4.6
Consumer Durables 0.8 3627 -1.2 -2.8 -1 -11.5 NA 1 2.5
Health Care 5.8 3763 -1.3 -0.5 0.1 -15.4 20.3 2.3 4
Food & Beverages 22.2 4303 -2.9 -2.8 10.7 -20.6 64.9 2.5 2.2
Pharma & Biotech 0.9 3516 -3.8 -7.8 -9.4 -2.3 25.6 1.1 5.2
Asset Class Fixed Income
Corporate Bonds: Top 5 Performance (sorted by weekly
performance)
Name Size ($
Mn)
Close
Price
1Wk
(%)
MTD
(%)
YTD
(%)
Cur.
Yield Duration
Acwa Power Mgmt 5.95% 814 99.1 0.1 1.4 5.5 6 7.8
Saudi Electricity Global 4.00% 1500 100.7 0.1 0.4 1.5 4 4.5
SABIC Capital I 2.75% 750 104.7 0.1 0.1 0.2 2.6 1.7
Dar Al-Arkan Sukuk Co 6.88% 500 97 0 2 2.4 7.1 2.7
Dar Al-Arkan Sukuk Co 6.50% 400 100.4 0 0 0 6.5 0.3
Government Debt Instruments: Top 5 Performance (sorted
by weekly performance)
Description Size ($
Mn)
Close
Price
1Wk
(%)
MTD
(%)
YTD
(%)
Cur.
Yiel
d
Duration
KSA 2.38% 26 October 2021 5500 97.4 0.2 0.1 0.9 2.4 2.5
KSA 2.88% 04 March 2023 3000 97.9 0.1 0.5 1.7 2.9 3.7
KSA 3.25% 26 October 2026 5500 95.9 0 0 2.1 3.4 6.6
KSA 3.63% 20 April 2027 4500 98.1 -0.1 -0.4 1.4 3.7 6.9
KSA 4.50% 17 April 2030 3000 102.9 -0.1 0.7 2.8 4.4 8.6
ASSET CLASS: REAL ESTATE
Index M.Cap ($ Bn) Last 1Wk
(%)
MTD
(%) YTD (%) D/Y (%)
Tadwaul REIT Index 3.2 3591 -0.8 -0.8 -0.9 5.8
NAREIT 1099.4 701 -1.1 0 11.4 3.9
ASSET CLASS: COMMODITIES
Name Last 1Wk (%) MTD (%) YTD (%) 2018 %
ICE Brent (Spot Prices $/bl) 66.3 -0.9 7.1 -0.5 -7.1
Arab Light Crude (Spot $/bl) 67.1 -0.9 8.2 3.1 -4.7
Gold (Spot prices $/Oz) 1292.9 -2.3 -2.1 -0.7 1.4
Source: Tadawul, Reuters Eikon, Bloomberg
Note: NM – Not meaningful (e.g. negative PE ratio); NA – Not available; Data as of February 28, 2019
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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: [email protected]