Separately, Rystad Energy, an independent oil and gas consulting

firm, released a report which concluded that the US now holds

more recoverable oil reserves than both Saudi Arabia and Russia!

Globally, the International Monetary Fund (IMF) has reduced its

outlook for 2016’s global growth to 3.1% from its previous

estimate of 3.2%. The primary reason being the uncertainty

caused due to Britain’s exit from EU. IMF mentioned that “Brexit

has thrown a spanner in the works”. IMF expects U.K.’s economic

growth next year to slow to 1.3%, down 0.9% from the April

estimate.

Tadawul All Share Index (TASI) decreased 0.9% to close at 6,601

points. Q2 2016 corporate results weren’t so encouraging to cata-

pult the index out of the current trading range.

Regional indices were mixed with Dubai (+2.1%) gaining the most

followed by Qatar (+1%). Bahrain index shed 1.1%.

Oil prices continued to be range-bound as supply expectations

were strong. Any recovery in oil price might again make extraction

from unconventional sources (Shale) viable. At the end of the day,

the oil giants can’t stop working or looking for oil, just because

prices are down. Technology might play catch-up to reduce cost.

IMF expects 3.1% global growth in 2016 TASI decreases by 0.9%

57

111 7 175

0

50

100

150

200

Gainers Losers No change Total No. of

Companies3,596 4,131 3,813 3,156 3,598

6,681 6,682

6,647

6,631

6,601

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

17-Jul-16 18-Jul-16 19-Jul-16 20-Jul-16 21-Jul-16

6,560

6,580

6,600

6,620

6,640

6,660

6,680

6,700

Total Turnover (SAR Mn) TASI Close (RHS)

TASI CLOSE & MARKET TURNOVER TRADING STATISTICS

Saudi market breadth was negative with 57 gainers as

against 111 losing stocks

“The Brexit vote implies a substantial increase in economic, political, and

institutional uncertainty, which is projected to have negative macroeconomic

consequences, especially in advanced European economies”

- IMF World Economic Outlook Update, July 2016

Week Ending

July 21, 2016

Sau

di S

to

ck M

arket

Weekly U

pd

ate

Amongst sectors, 11 out of the 15 indices closed the week on the lower side.

Industrial Investment and Hotel & Tourism indices lost the most, decreasing 3.6%

each, followed by Cement (-3.3%) and Retail (+3.0%).

Banking index lost 1% while Petrochemicals lost 0.9% .

Note: Weekly returns are calculated considering Friday to Thursday week. Numbers indicate weekly returns and index closing values.

Banks constituted 20.3% of the total traded value and 24.1% of the total volume

to become the top trading sector. This was followed by Petrochemicals which

contributed 19.6% to the value and 14% to the total volume.

Index Open Close WTD

(%) YTD (%)

Total Volume

Total Turnover

No. of Trades

TASI 6,662 6,601 -0.9% -4.5% 990 18,295 435,305

Banks & Financial Services 14,453 14,310 -1.0% -8.2% 239 3,719 42,814

Petrochemical Industries 4,524 4,565 0.9% 6.8% 138 3,586 46,902

Cement 4,372 4,228 -3.3% -6.9% 19 502 13,993

Retail 10,621 10,298 -3.0% -17.9% 21 740 29,126

Energy & Utilities 7,248 7,052 -2.7% 23.2% 9 191 7,761

Agriculture & Food Industries 7,705 7,756 0.7% -15.0% 31 805 24,670

Telecom & IT 1,557 1,561 0.3% -3.7% 23 440 8,882

Insurance 1,297 1,283 -1.1% 3.2% 181 3,025 114,748

Multi-Investment 2,679 2,658 -0.8% -19.5% 18 275 9,315

Industrial Investment 6,678 6,436 -3.6% 0.1% 46 1,239 36,731

Building & Construction 2,132 2,136 0.2% -7.1% 43 802 32,867

Real Estate Development 6,559 6,498 -0.9% 9.0% 180 1,566 34,386

Transport 7,209 7,111 -1.4% -8.6% 21 818 15,799

Media and Publishing 2,711 2,688 -0.9% -22.4% 10 275 9,833

Hotel & Tourism 9,971 9,616 -3.6% -42.8% 8 312 7,478

GLOBAL INDICES – WEEKLY RETURNS

SAUDI – SECTOR INDICES “11 out of 15 sector indices closed the week in Red”

2.6%,

16,810

0.9%,

10,156 0.7%,

6,7000.6%,

8710.1%,

1,7050.1%,

2,165

0.1%,

18,517

-0.5%,

3,039

2.1%,

3,544

1%,

10,534

0.3%,

4,590 0%,

5,391-0.7%,

5,818

-0.9%,

6,601-1.1%,

1,160

Nik

kei

DA

X

FT

SE

100

MS

CI

EM

MS

CI

Wo

rld

S&

P 5

00

DJI

A

SSE

Du

bai

Qa

tar

Ab

u D

hab

i

Ku

wai

t

Om

an

Sau

di

Bah

rain

United Wire Factories Co. registered the largest gain, this week, by increasing 12.1% to

close at SAR 27.85. This was followed by Red Sea Housing Services Co. (+7.7%) and Al Sagr

Cooperative Insurance Co. (+7%).

On the other side, Fawaz Abdulaziz Alhokair Co. shed 8.8% and led the losers table,

followed by Saudi Ceramic Co. (-6.7%) and Saudi Arabian Mining Co. (-6.3%).

TOP GAINERS TOP LOSERS

Company Close WTD

(%) YTD (%)

Value Traded

(SAR Mn)

ASLAK 27.85 12.1% 26.7% 2,640

Red Sea 27.89 7.7% 14.2% 1,463

Sagr Insurance 39.83 7.0% 27.8% 11,761

YANSAB 44.34 7.0% 36.8% 3,600

Astra Indust 18.18 6.3% -8.1% 3,094

SABIC, the gulf’s largest company, gained 0.1% during the week and clocked a turnover of SAR 2.4bn. SABIC has increased 8.8% during the

year to close at SAR 83.24.

Top Gainer

United Wire

Factories Co.

(+12.1%)

Top Loser

Fawaz Abdulaziz

Alhokair Co.

(-8.8%)

TOP 10 MARKET CAPITALIZATION COMPANIES

Company Close WTD

(%) YTD (%)

Value Traded

(SAR Mn)

AlHokair 42.43 -8.8% -40.0% 3,182

Saudi Ceramics 37.3 -6.7% -20.3% 1,710

MAADEN 36.67 -6.3% 10.6% 5,531

YSCC 25.72 -5.8% -18.3% 2,014

Dar Al Arkan 6.76 -5.6% 9.0% 18,869

THIS WEEK’S WINNERS & LOSERS

Company Name Market Cap

(SAR Mn) WTD Change YTD Change

LTM Net Income

(SAR Mn) P/E Ratio P/BV Ratio

Last Price (SAR)

Saudi Basic Industries Corp. 249,720 0.1% 8.8% 18,255 13.7 1.5 83.2

Saudi Telecom Co. 128,380 -0.6% -6.2% 9,206 13.9 2.1 64.2

Al Rajhi Bank 96,265 0.0% 13.7% 7,629 12.6 2.0 59.2

Saudi Electricity Company 82,207 -2.4% 25.6% 2,073 39.6 1.4 19.7

National Commercial Bank 79,440 -3.6% -22.2% 9,115 8.7 1.5 39.7

Jabal Omar Development Co. 59,472 -0.3% 15.3% -220 NA 6.4 64.0

Almarai Co. 44,224 -1.5% -5.8% 1,918 23.1 3.6 55.3

Saudi Arabian Mining Co. 42,848 -6.3% 10.6% 513 83.5 1.6 36.7

Kingdom Holding Co. 40,209 -2.5% -31.3% 672 59.9 1.5 10.9

Samba Financial Group 40,200 -1.6% -13.8% 5,196 7.7 1.0 20.1

TASI 1,522,196 6,601 -0.9% -4.5% 99,203 12.9 1.6

Saudi Aramco has signed four engineering contracts to build its Fadhili gas processing plant. The plant, estimated to

cost SAR 50bn is expected to be finished by the end of 2019.

Saudi Arabia has invited bids from consultants for a financial advisory role on the Kingdom’s first competitively ten-

dered independent water project (IWP).

The National Shipping Company of Saudi Arabia (Bahri) will sign an agreement with Arab Petroleum Investment Corp.

(APICORP) to start a USD 1.5bn investment fund to buy oil tankers.

Dallah Healthcare Holding Co. said that construction of its new hospital in Riyadh’s Namar district is now 32% com-

plete, with initial operations expected to launch in Q3 2017.

Saudi Aramco has awarded a USD 1.6bn contract for developing the second phase of the Hasbah Offshore Gas field, to

a consortium led by India’s L&T Hydrocarbon Engineering.

Saudi Cable Co. said it has completed all terms related to a debt restructuring agreement it had signed with local banks.

Saudi Electricity Company has reportedly invited developers to submit pre-qualification entries for contracts to develop

50 MW photovoltaic (PV) solar plants at Al-Jouf and Rafha.

Etihad Etisalat Co. (Mobily) is reportedly talking with creditors on refinancing debt worth SAR 8bn to get better terms.

Saudi Telecom Co. and China Telecom Corp. are said to have expressed interest in acquiring 4G licenses offered by the

Egyptian government.

Saudi Arabia plans to build a maritime complex with shipbuilding capability on its east coast to upgrade its oil-exporting

capacity, Energy minister said.

Royal HaskoningDHV has been appointed by Saudi Trade and Export Development Co (Tusdeer) to provide the master

planning and consulting engineering services for its logistics park in Jeddah.

Egypt’s Authority for Combating Subsidies and Dumping has cancelled plans to impose anti-dumping duties on imports

of polyethylene terephthalate (PET) from Saudi Basic Industries Corp.

SAUDI ARABIA – CORPORATE & ECONOMIC NEWS

Abu Dhabi’s inflation rate increased 2.7% year-on-

year (YoY) in the first half of 2016 as the cost of

housing, water, electricity, and fuels increased.

Abu Dhabi’s Aldar Properties has awarded AED

440mn contracts for two residential projects –

Nareel Island and Al Merief – to National Projects

and Construction.

Drake & Scull International said it has been awarded

a AED 226mn contract at the Zubair oil field in south-

ern Iraq by a subsidiary of Italian energy company

Eni.

Germany-based Hapag-Lloyd and United Arab

Shipping Co. signed a merger agreement to create

the world’s fifth-largest liner shipping entity.

Fitch Ratings has affirmed Qatar National Bank’s long

-term issuer default rating at AA- and adopted a

Stable outlook, backed by strong public spending

despite lower oil prices.

Telecommunications operator Ooredoo said it has

completed the pre-launch phase for 4G mobile in

Tlemcen, Algeria.

Kuwaiti government has allocated land to Jazeera

Airways for the construction of a dedicated passen-

ger terminal and car park buildings at Kuwait Inter-

national Airport.

S&P lowered its credit outlook for Deutsche Bank AG

from Stable to Negative, saying market conditions

and the U.K.’s decision to leave the EU are expected

to complicate the Bank’s restructuring plans.

UK technology firm ARM Holdings is to be bought by

Japan's Softbank for USD 32bn.

Four truck manufacturers have been fined EUR

2.93bn by the European Union (EU) for colluding on

prices and passing on the costs of emissions-

reducing technology.

The UK unemployment rate has fallen to 4.9%, the

lowest since July 2005. Unemployment total fell to

1.65 million in the March-to-May period, down

54,000 from the previous quarter.

The European Central Bank (ECB) has voted to keep

its main interest rates at 0% and expects rates to

remain at record lows or fall to lower levels for an

extended period of time.

Brewers Anheuser-Busch InBev and SABMiller

received U.S. antitrust approval for their USD 107bn

merger.

OTHER GULF NEWS GLOBAL ECONOMIC NEWS

CH

AR

TS

O

F

TH

E

WE

EK

Source: Yardeni.com

ACTIVE RIG COUNTS IN THE U.S. (UNITS)

Source: IMF, Zero Hedge

VENEZULA’S ANNUAL INFLATION RATE

Treeline Business Solutions is a boutique provider of business process outsourcing services based in Chennai, India, with Sales

offices in the GCC and serving diverse range of clients around the world.

Over a period of time, Treeline has successfully built in-house expertise and professional capability to handle business needs of

various clients in the following functional areas:

Transaction Processing & Oversight

Consulting & Advisory

IT Support

Family office & Wealth Management

Fund Administration

Recruitment

Our Family Office and Wealth Management Support Services focus on the following areas:

Financial Modelling and Business Research Support

Family Office Set-up and Governance

Investment Back Office

Private Equity Fund Administration

Portfolio Performance Valuation, Benchmarking & Reporting

Treeline has clients across the world and serves many industries & sectors including banks, investment companies and family offices. Our

clients value our commitment to producing high-quality work with quick turnaround. Treeline follows and adheres to best practices in

maintaining sanctity of transactional information or privileged inputs, received in due course of project execution. IT enables strict access

controls coupled with employer—employee confidentiality agreements puts in place the basics of data confidentiality and ensures no

breach of set norms through strict compliance measures.

We are recognized for our practical approach—”rolling up our sleeves to make change happen”. Our sole focus is on doing what is right

for our clients.

Treeline has launched the beta version of Cedar—Saudi Capital Market Analytics platform. For more details on Cedar, download the

product presentation by visiting https://cedar.treeline.co/introduction/ and for getting the trial access kindly visit the webpage

https://cedar.treeline.co

Delivery Center

First Floor, Cavinville, 12 Cenotaph Road, Teynampet, Chennai 600018, India

+91 44 2435 7756 / 7766 | www.treeline.co

Contact Us

Tirtha Brata Panda

tirtha@treeline.co

Mobile: +91 91766 34582 | +966 554 856 799

J Madhu Soothanan

madhu@treeline.co

Mobile: +91 98942 33991

AlOhdah Management &

Economic Consulting

Fifth Floor, Al Eqtessad Building

Olaya Street, P.O. Box 300 734

Riyadh 11372, Saudi Arabia

Our Presence in Saudi Arabia

Disclaimer: The information in this report is prepared by Treeline Business Solutions Private Limited (herein after referred as "Treeline"). The report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable but no representation or warranty, expressed or implied, is made that such information and data is accurate or complete, and therefore should not be relied upon as such. Treeline makes no representation as to the accuracy or completeness of such information. Nothing contained in this document shall be construed to be an investment advice or an assurance of the benefits of investing in the any of the securities indicated in this report. Recipient alone shall be fully responsible for any decision taken on the basis of this document. Treeline has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. This report may not consider the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors are urged to make their own investigation or seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report. Investors should note that income from such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Investors should be able and willing to accept a total or partial loss of their investment. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily indicative of future performance.