RIYADH, January 25, 2012
The Riyadh based Saudi Arabia\'s benchmark Tadawul All Share Index (TASI) rose for third consecutive day led by Multi-Investment and Telecommunication & Information Technology sector and surged by 0.16% or 10.32 points to close at 6476.86 points.
Throughout the day’s trade, the Tadawul All Share Index (TASI) touched intraday low at 6,450.33 points and intraday high at 6,480.80 points; however the open index was 6,466.54 points. About 289.154 million shares were traded on the Tadawul, compared with a six-month daily average of 184 million shares. Out of 148 issues traded, 59 issues gained prices while 76 issues declined and rest of 13 issues remained unchanged.
Among the trades, the volume toppers were Nama Chemicals Co., Mobile Telecommunications Company Saudi Arabia, Alinma Bank, Emaar the Economic City, Dar Alarkan Real Estate Development Co and Solidarity Saudi Takaful Co. However, the value toppers were Saudi Basic Industries Corp, Solidarity Saudi Takaful Co, Nama Chemicals Co., United Electronics Company, Tabuk Agriculture Development Co. and Knowledge Economic City.
Among the top gainers, Saudi Integrated Telecom Company was up by +9.90%, Qassim Agriculture Co. +6.67%, Halwani Bros Co. +6.19%, Solidarity Saudi Takaful Co +5.70%, United Electronics Company +3.43% and Savola Group +3.33%.
Among the top losers, Saudi Automotive Services Co. was down by -3.43%, Tabuk Agriculture Development Co. -3.03%, Saudi Arabia Refineries Co. -2.96%, Jazan Development Co. -2.95%, Saudi Fisheries Co. -2.94%, and Saudi Steel Pipe Company -2.59%.
Meanwhile, Increasing sales push Saudi Arabia\'s Advanced Petrochemical net profit. Advanced Petrochemical Company gained 1.37% to reach SR29.60. In 2011, as the firm achieved a 56% higher net profit than in the year before, amounting to SR512.8m. The reasons for the increase in net profit of 2011 compared to the same period in 2010 are mainly due to the improved product prices and increased sales.
Saudi Arabia’s decision to allow foreign companies to list securities in the Arab world’s biggest bourse helped the Saudi bourse to grow, while providing innovative opportunities to the region’s equity markets and lure investors and boost trading volumes. Securities of another exchange with comparable listing rules to those in Saudi Arabia can apply for a dual listing in the kingdom, according to new regulations posted on the Saudi Arabian Capital Market Authority’s website. The country currently doesn’t permit foreigners to directly own shares in its listed companies. The government allowed citizens of neighboring Persian Gulf states to trade in shares in 2007.
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Macro-Economic Analysis:
January 25, 2012
Analyst forecasts slower growth, higher government spending, and smaller current account surpluses for Saudi Arabia in 2012. The Kingdom’s economic growth is expected to decline to 3.1 percent in 2012 from 6.8 percent in 2011 owing mainly to the slow recovery of the U.S economy, highly volatile debt of the Euro zone countries and its negative impact over the emerging countries. However since the Kingdom\'s carried over finances are more than comfortable, the total government expenditure is predicted to be 36 percent of GDP, compared to an average of 30.1 over the five years to 2008, adding considerable stimulus to the economy. Non-oil private sector growth is forecasted at 4.7 percent, although the trend may vary across key sectors.
- The Oil, Manufacturing, Wholesale and Retail, Telecom, Transport and the Finance sectors are expected to slow with the global decline in demand, regional instability and a decline in the supply of refined oil. The Construction sector is expected to be the fastest growing sector in 2012, spurred on by the government\'s plan to build 500,000 new housing and a reported additional $660 billion of planned or underway construction in the Kingdom. Electricity, gas and water sector growth is predicted to be faster than the 6.4 percent average of the past decade. The Finance sector growth will be sluggish.
Inflation: Inflation is expected to fall to 4.4 percent owing to an easing of price pressures from outside of the Kingdom, although there will be some local inflationary pressure owing to the high level of government spending. Domestic policies staved off the greatest impacts of global food inflation in 2011. Increased domestic disposable incomes contributed to making rents a main source of inflation in the Kingdom in recent years, and high consumer spending, double-digit money supply growth, rising bank lending and exceptionally low interest rates is likely to raise the inflation rate by the end of 2012..
Current Account: The current account surplus in 2012 is forecast to decline to 14.9 percent of GDP from 27.6 percent because of lower oil export revenues (85-90 percent of total export revenue). Import growth is expected to pick up as implementation of the housing construction and other government infrastructure programs lifts demand for construction raw materials and machinery. High consumer spending will boost imports of household goods, vehicles and electronics. Remittances of foreign workers will remain the main source of outflows from the invisibles accounts, and will approach $30 billion in 2012.
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Annual Statistic (2011):
At the end of the year 2011 Tadawul All Share Index (TASI) closed at a level of 6,417.73 points compared to 6,620.75 points for the previous year, lost 203.02 points (3.07%). The highest close level for the index (TASI) during the year was 6,788.42 points as on 16th of January. The total Market Capitalization at the end of the year 2011 reached SR 1,270.84 billion (US$ 338.89 billion), decreasing by 4.12% as compared to the end of the previous year.
The total Value of Shares Traded for the year 2011 reached SR 1,098.84 billion (US$ 293.02 billion) compared to SR 759.18 billion (US$ 202.45 billion) for the previous year, increasing by 44.74%. The total number of Transactions executed during the year 2011 reached 25.55 million compared to 19.54 million trades for the previous year, increasing by 30.77%. The total number of Shares Traded for the year 2011 reached 48.54 billion compared to 33.33 billion shares traded during the previous year, increasing by 45.61%.
The Daily Average Number of Transactions executed during the year 2011 reached 103.01 thousand trades compared to 78.46 thousand trades during the previous year, increasing by 31.29%. The Daily Average Value of Shares Traded during the year 2011 reached SR 4,430.79 million compared to SR 3,048.93 million for the previous year, increasing by 45.32%. The Daily Average Number of Shares Traded during the year 2011 reached 195.71 million shares compared to 133.87 million shares traded during the previous year, increasing by 46.19%.
Sectorial Activities:
In term of number of transactions during the year 2011, the Insurance sector was the most active sector with 6.96 million trades that represent 27.24% of the total trades during the year, followed by the Petrochemical Industries sector with 4.07 million trades or 15.95% and the Agriculture & Food Industries sector 3.00 million trades or 11.76% of the total trades executed during the year 2011.
The Petrochemical Industries sector led the market in term of value of shares traded during the year 2011 amounting to SR 329.39 billion that represent 29.98% of the total value traded, followed by the Insurance sector with SR 197.47 billion or 17.97% and the Agriculture & Food Industries sector SR 108.34 billion or 9.86% of the total value traded during the year 2011.
In term of volume of shares traded (adjusted), the Petrochemical Industries sector was the most active sector during the year 2011, the number of shares traded for the sector reached 9.55 billion shares that represent 19.67% of the total volume traded during the year, followed by the Insurance Sector with a volume of 7.19 billion shares or 14.81% and the Real Estate Development Sector with 5.30 billion shares traded or 10.91% of the total shares traded during the year 2011.
Market capitalization:
By the end of 2011, market capitalization of listed companies on the Saudi bourse stood at 1,270.8 billion riyals ($323.8 billion), down by 56.6 billion ($14.4 billion), compared to 1,325.4 billion ($353.4 billion) reported at the end of FY2010.
Stock Activities:
With respect to stocks activity during the year 2011, SABIC led the market in term of number of transactions with 1,266.29 thousand trades, followed by Solidarity and Alinma Bank with 559.48 and 482.29 thousand transactions respectively.
SABIC was also the market leader in term of value of shares traded during the year 2011 and has posted a turnover of SR 152.98 billion. The two other most active stocks were Saudi Kayan and Alinma Bank that posted a value of SR 42.66 billion and SR 38.76 billion respectively.
In term of number of shares traded (adjusted) during the year 2011, Alinma Bank topped the list with 3.95 billion shares traded during the year, followed by Saudi Kayan and Zain KSA with a volume of 2.37 and 2.29 billion shares respectively.
Initial Public Offerings (IPOs) Summary - 2011
The number of companies offered parts of its shares to public (IPOs) during the year 2011 reached 5 companies (representing Cement, Retail, Telecom.& information Technology, Insurance and Building & Construction sectors), bringing the total number of listed companies to 150 (Saudi Enaya Company is not yet listed).
The total offered value reached SR 1.73 billion and the number of shares offered for all IPOs during the year 2011 was 116.9 million shares. By the end of the year 2011 the market capitalization of the listed IPOs companies (4 companies) reached SR 6.32 billion that represent 0.50% of the total market capitalization.
