Document 6598107

Transcription

Document 6598107
Saudi Stock Market – Weekly Update
For the Week ending 06 November 2014
"..the authority has launched a fast track service for serious investors, small and large alike, and we will
give special consideration to those who are here to establish regional hubs and export oriented businesses."
Mr. Abdullatif Al-Othman, Governor—Saudi Arabian General Investment Authority
TASI PERFORMANCE FOR THE WEEK
“TASI loses 3.8%
to end at 9,649”
TASI LOSES 3.8%
Tadawul All Share Index (“TASI”) continued its slide down and lost 3.8% during the week. The index closed at
9,649 points lowering the year-to-date gain 13%. National Commercial Bank’s IPO probably drained out liquidity from the markets. The issue saw retail tranche getting oversubscribed by 23 times with investors placing
orders worth USD 83bn. Once the excess money is returned to the investors, it could find its way back into the
equity markets helping in some recovery.
During the week, Etihad Etisalat Co. (Mobily) stunned investors as it announced a cumulative reduction in its
net profits for FY 2013 and 1H 2014 by SAR 1.43bn because of mistakes in revenue recognition!
The oil market continued to be shaky with Brent hovering at USD 82/barrel level for most part of the week.
News of Saudi Arabia cutting the price of oil sold to the US exacerbated the bad sentiment that was already prevailing.
Meanwhile, in Europe, the European Union reduced its growth forecasts for this year and next (Yes, yet again!).
EU now expects Eurozone GDP to expand by 0.8% in 2014, down from its earlier forecast of 1.2%. For 2015,
growth is forecasted to be at 1.1%, less than the previous estimate of 1.7%. The central bank (ECB) is unperturbed and has committed to act more aggressively to intensify stimulus and expand its balance sheet.
“EU lowers GDP
growth forecast
for 2014 to 0.8%
Chart 1: TASI Close & Market Turnover
10,200
10,099
10,142
10,000
15,000
9,785
9,800
9,629
9,649
9,600
10,000
5,000
9,400
9,200
0
2-Nov
3-Nov
4-Nov
Total Turnover (SAR Mn) (RHS)
5-Nov
6-Nov
SAR Mn
TASI Close
Chart 2: Trading Statistics
116
8
167
Saudi market
breadth was
Negative with
43 gainers as against
116 losers
43
Gainers
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Losers
No change
Total No. of Companies
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Chart 3: Global Indices – Weekly Returns
1.1%
1708
0.7%
13590
-0.2%
1441
Qatar
MSCI EM
MSCI World
FTSE 100
SSE
S&P 500
DJIA
DAX
Nik kei
-1.6%
991
-0.8%
6921
-1.5%
4790
-3.1%
4406
-3.1%
7135
-3.8%
9649
Saudi
1.4%
6551
Kuwait
1.5%
2426
Dubai
1.8%
2031
Abu D habi
2.1%
17554
Om an
2.9%
9377
Bahrain
7.2%
16792
Note: Weekly returns are calculated considering Friday to Thursday week. Numbers indicate weekly returns and index closing values.
SAUDI – SECTOR INDICES
“14 out of 15
sectors closed
in the Red”
Sector indices resembled the movement in TASI with 14 out of 15 sectors closing the week in
Red. Media & Publishing was the only index which closed with marginal gains of 0.1%. Telecom & IT slumped the highest (-16.2%) followed by index heavy weight Petrochemicals losing
5.0%. Agriculture & Food Industries reported a fall of 4.2% during the week and Banking index lost 2.1%.
Banks led the turnover contributing 19.7% to total traded value and 22.9% to total volumes. Petrochemicals seconded the
turnover table with 15.5% contribution to total traded value and 13.4% to the volume.
YTD
(%)
Total
Volume
(Mn)
Total
Turnover
(SAR Mn)
No. of
Trades
Open
Close
WTD
(%)
TASI
10,035
9,649
-3.8%
13.0%
1,028
34,645
545,932
Banks & Financial Services
21,467
21,020
-2.1%
17.7%
235
6,832
57,668
Petrochemical Industries
7,616
7,233
-5.0%
-4.1%
138
5,365
53,618
Cement
7,893
7,832
-0.8%
11.5%
27
877
19,125
16,741
16,348
-2.3%
39.7%
19
1,442
27,143
6,298
6,191
-1.7%
15.5%
11
193
3,196
12,703
12,176
-4.2%
32.4%
57
2,902
59,297
Telecom & IT
2,836
2,376
-16.2%
-10.6%
108
3,327
23,432
Insurance
1,621
1,614
-0.4%
33.7%
119
4,282
124,482
Multi-Investment
4,613
4,431
-3.9%
1.8%
39
861
19,440
Industrial Investment
8,139
7,861
-3.4%
10.9%
66
2,826
51,418
Building & Construction
4,391
4,375
-0.4%
24.9%
72
2,496
52,163
Real Estate Development
6,754
6,525
-3.4%
37.0%
103
1,716
24,966
Transport
7,928
7,713
-2.7%
19.1%
22
778
14,108
Media and Publishing
2,502
2,506
0.1%
-8.4%
4
147
4,656
23,344
23,208
-0.6%
43.5%
8
600
11,220
Index
Retail
Energy & Utilities
Agriculture & Food Industries
Hotel & Tourism
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THIS WEEK’S WINNERS & LOSERS
Middle East Specialized Cables was the largest gainer, increasing 13.0% during
the week to close at SAR 21.2. This was followed by Saudi Arabian Cooperative Insurance (+8.9%) and Tourism Enterprise Co. (+8.5%).
Top Gainer
Middle East
Specialized
Cables
(+13.0%)
On the other side, Etihad Etisalat lost 26.8% due to the announcement on accounting errors. Amana Insurance (-18.9%) and Kingdom Holding (-14.7%) also
registered sizeable losses.
Top Loser
Etihad Etisalat
(-26.8%)
SABIC, the gulf’s largest company, decreased 5.4% for the week and clocked a turnover of SAR 2.9bn. SABIC has now
lost 5.9% YTD to close at SAR 104.96.
Top Gainers
Top Losers
YTD
(%)
Value
Traded
(SAR Mn)
Close
WTD
(%)
YTD
(%)
Value
Traded
(SAR Mn)
Company
Close
WTD
(%)
MESC
21.20
13.0%
54.2%
418
Etihad Etisalat
58.5
-26.8%
-31.6%
2,152
SAICO
56.74
8.9%
13.7%
295
Amana Insurance
22.1
-18.9%
-49.7%
7
Shams
69.3
8.5%
-16.0%
208
Kingdom
19.09
-14.7%
-22.1%
97
139.54
8.3%
100.1%
156
Sipchem
32.59
-9.8%
2.5%
117
18.18
8.3%
23.3%
198
AlHokair
107.78
-7.8%
55.1%
231
Dallah Health
ADC
Company
THE LIQUIDITY PLAY (VOLUME – VALUE TREND)
The market activity continued its downward momentum during the week with the overall market trading 1,028mn
shares (1,102mn, 1,328mn shares in the preceding two working weeks). The week’s total turnover also declined to SAR
34.6bn as against SAR 35.9bn, SAR 42.8bn in the preceding two weeks.
TASI Weekly Turnover Trend (SAR Mn)
TASI Weekly Volume Trend (Mn)
12,000
350
10,000
300
250
8,000
200
6,000
Week 0
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Week -1
Week -2
Week -3
Week 0
Week -1
Week -2
16-Oct
15-Oct
14-Oct
13-Oct
12-Oct
23-Oct
22-Oct
21-Oct
20-Oct
19-Oct
30-Oct
29-Oct
28-Oct
27-Oct
26-Oct
16-Oct
15-Oct
14-Oct
13-Oct
12-Oct
0
23-Oct
22-Oct
21-Oct
20-Oct
19-Oct
0
30-Oct
29-Oct
28-Oct
27-Oct
26-Oct
50
6-Nov
5-Nov
4-Nov
3-Nov
2-Nov
100
2,000
6-Nov
5-Nov
4-Nov
3-Nov
2-Nov
150
4,000
Week -3
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SAUDI – CORPORATE & ECONOMIC NEWS
 The seasonally adjusted SABB HSBC Saudi Arabia Purchasing Managers’ Index eased to a five-month low of 59.1
points in October as against 61.8 points in September.
 Saudi Arabia’s bank lending to the private sector increased 13.2% year-on-year (YoY) in September and money
supply also grew 13.4% YoY in September.
 Saudi Aramco has lowered the sale price of its crude to US, for the month of December, even as the company increased prices to Asia and Europe .
 Saudi Basic Industries Corporation’s carbon reduction project at its manufacturing affiliate, Al Jubail Fertiliser
Company (Al-Bayroni) has been registered by the executive board of the Clean Development Mechanism (CDM).
 Mohammad Al Mojil Group (MMG) said Korea-based SK Engineering & Construction owes MMG nearly USD
129mn, which would aid its survival, if paid.
 Savola Group has agreed a seven-week extension for talks with Takween Advanced Industries over sale of Savola’s entire share capital in Savola Packaging Co.
 GCC spends more than USD 160bn on energy subsidies annually, and Saudi Arabia accounts for almost half of the
GCC subsidies, a World Bank official said .
 Engineering company KBR has won a front-end engineering design (FEED) contract from SABIC for debottlenecking and expansion of its Petrokemya butadiene extraction plant in Jubail, Saudi Arabia.
 Egypt has signed USD 350mn worth of financing agreements with Saudi Arabia to upgrade its power grid and
secure import of petroleum products.
 The Saudi Cabinet has approved the labor agreement signed between Saudi Arabia and Philippines in May 2013.
 Saudi Arabia plans rail link to Jordan which is part of 2177-kilometers mega GCC rail network project.
 Saudi Aramco reported that the operations are unaffected by a leak and fire which hit a diesel fuel pipeline near
the capital Riyadh.
 Al-Falak Electronic Equipment & Supplies Company has acquired a local e-commerce site, to complement its expansion strategy in Saudi Arabia.
 Saudi Arabia’s Real Estate Development Fund announced re-offering a zero-interest investment loan at a total value of up to SAR 30mn to real estate development companies.
 National Water Co. has completed constructing the largest wastewater project worth SAR 400mn in Riyadh .
 Al-Ahli Takaful Co. has signed a contract with Tata Consultancy Services for the implementation of a new automated insurance system for SAR 8.12mn.
 Etihad Etisalat (Mobily) said it would not distribute dividends for the third quarter.
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OTHER GULF NEWS
 The UAE’s headline Purchasing Managers’ Index rose to 61.2 in October.
 A unit of Dubai Holding has mandated Citi Bank, Dubai Islamic Bank , Mashreq, Abu Dhabi Commercial Bank and
Noor Bank as arrangers for facility worth AED 4bn(USD 1.1bn).
 DIFC Investments has launched a USD 700mn 10-year sukuk at 185 basis points (bps) over midswaps.
 The UAE economy is recovering at good pace from the global financial crisis, supported by construction, logistics
and hospitality but remains threatened by low oil prices, the IMF said.
 Aldar’s flagship retail development, Yas Mall, will open on November 19
 The Abu Dhabi fund, which owns a major stake in British commercial spaceflight company Virgin Galactic, will
wait for results of the probe into last week's fatal crash before deciding on its commitment to the project.
 Qatar International Petroleum Marketing Co plans to renew its contract to supply condensate to the UAE for 2015,
according to Company’s CEO.
 Oman’s investment expenditure grew by 7.4% Y-o-Y for the period ended June 2014 to hit OMR 1.4bn.
 Kuwait Petroleum Corporation has signed MoU with PEMEX, for Oil exploration and production work in Mexico.
 Kuwaiti logistics firm Agility is reportedly interested in competing to buy a 35% stake in loss-making state carrier
Kuwait Airways
 Bahrain based OAK Utility Solutions has entered into a licensing agreement to bring a new pipeline rehabilitation
technology known as XHab .
 Work on Bahrain's USD 1.3bn Durrat Marina is on track and the first phase of the specially designed waterfront
residential project has been completed, a senior official said.
 Songbird Estates, the majority owner of London's Canary wharf, has rejected a takeover approach from Qatar Investment Authority and Brookfield Property Partners, saying the bid price "materially undervalued" Songbird.
 Investcorp has acquired Italian protective clothing maker Dainese for an enterprise value of EUR 130mn, the alternative investment firm said.
GLOBAL ECONOMIC NEWS
 United States Markit’s composite index, fell to 57.2 in October while service sector index declined to 57.1.
 UK Service sector PMI fell to 56.2 in October while the Eurozone PMI inched up to 52.1 in October from 52 in September.
 People’s Bank of China confirmed that it pumped CNY 769.5bn (USD 126bn) to its lenders in the last two months
through a newly-created Medium-term Lending Facility
 Chinese smartphone maker Xiaomi is reportedly in talks to raise close to USD 1.5bn in new capital at a valuation
set to exceed USD 40bn
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CHARTS OF THE WEEK
Chart 1: Movement in Crude Oil Price and Consensus GDP Growth Estimate
Sources : Bloomberg; Zero Hedge
Chart 2: Countries with highest Foreign Remittance inflows as Percentage of GDP (2013)
Sources : World Bank, Statista
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