15 May 2013
RIYADH - NCB Capital, the GCC's leading wealth manager and the Kingdom's largest asset manager, has published its 5th Annual Saudi Factbook, the most comprehensive analysis of the Saudi capital markets, its economy and all 160 stocks in the TASI (Tadawul All Shares Index).
It also details each of the 15 sectors comprising the sector indices in the market.
Commenting on the background to this year's Factbook, Farouk Miah, Head of Equity Research at NCB Capital, said, "The economy of Saudi Arabia remains in an envious position with strong GDP growth, low debt levels and government spending on infrastructure projects supporting a positive outlook.
Through a combination of strong economic outlook and earnings growth, we believe the fundamental outlook for the TASI remains favorable."
The Business Optimism Index 2Q 2013 survey reveals that Saudi Arabia's hydrocarbon sector composite index has turned down slightly in Q2 2013 as two out of the three parameters displayed a weakening trend. The BOI for Net Profits has witnessed a fall of 21 points to 37 in Q2 2013 compared to 58 in the previous quarter as businesses feel that the change in government policies and increase in cost of raw material will negatively pressure margins.
The index for the New Employees parameter has descended to 40 in the second quarter from 47 in the preceding quarter.
The sector has an optimistic outlook regarding selling prices as the Level of Selling Prices parameter gained 10 points to reach 23 in Q2 2013 as compared to 13 in Q1.
The BOI survey continues to display healthy optimism levels for non-hydrocarbon businesses in Q2 013.
The composite BOI for the non-hydrocarbon sector for Q2 2013 has remained unchanged from the previous quarter's level of 55. The BOI for the Level of Selling Prices parameter has witnessed an increase of 2 points from 34 in Q1 2013 to 36 in the second quarter.
Three among the five business sectors in the non-hydrocarbon sector have witnessed an improvement in optimism levels; these include Manufacturing, Construction and Business Services. BOI score for Transportation sector remained unchanged; however Trade & Hospitality BOI recorded a sharp decline. The construction sector continues to be the most optimistic amongst all the non-hydrocarbon sectors for Q2 2013.
Commenting on the findings of the survey, Dr. Said Al-Shaikh, Senior Vice President and Group Chief Economist of the National Commercial Bank, said, "Businesses in Saudi Arabia plan to continue hiring despite the headwinds that the global economy must still overcome to reach a sustainable path. Of the non-oil and gas companies surveyed, 56% plan to increase their headcounts in the 2nd Q, whereas 42% anticipate no change.
"It is also apparent that the continued improvement in bank credit conditions along with strong government investment spending in physical and social infrastructure to have made the construction sector the most optimistic among other sectors, as demonstrated by the rise in the construction BOI to 65 points.
RIYADH - NCB Capital, the GCC's leading wealth manager and the Kingdom's largest asset manager, has published its 5th Annual Saudi Factbook, the most comprehensive analysis of the Saudi capital markets, its economy and all 160 stocks in the TASI (Tadawul All Shares Index).
It also details each of the 15 sectors comprising the sector indices in the market.
Commenting on the background to this year's Factbook, Farouk Miah, Head of Equity Research at NCB Capital, said, "The economy of Saudi Arabia remains in an envious position with strong GDP growth, low debt levels and government spending on infrastructure projects supporting a positive outlook.
Through a combination of strong economic outlook and earnings growth, we believe the fundamental outlook for the TASI remains favorable."
The Business Optimism Index 2Q 2013 survey reveals that Saudi Arabia's hydrocarbon sector composite index has turned down slightly in Q2 2013 as two out of the three parameters displayed a weakening trend. The BOI for Net Profits has witnessed a fall of 21 points to 37 in Q2 2013 compared to 58 in the previous quarter as businesses feel that the change in government policies and increase in cost of raw material will negatively pressure margins.
The index for the New Employees parameter has descended to 40 in the second quarter from 47 in the preceding quarter.
The sector has an optimistic outlook regarding selling prices as the Level of Selling Prices parameter gained 10 points to reach 23 in Q2 2013 as compared to 13 in Q1.
The BOI survey continues to display healthy optimism levels for non-hydrocarbon businesses in Q2 013.
The composite BOI for the non-hydrocarbon sector for Q2 2013 has remained unchanged from the previous quarter's level of 55. The BOI for the Level of Selling Prices parameter has witnessed an increase of 2 points from 34 in Q1 2013 to 36 in the second quarter.
Three among the five business sectors in the non-hydrocarbon sector have witnessed an improvement in optimism levels; these include Manufacturing, Construction and Business Services. BOI score for Transportation sector remained unchanged; however Trade & Hospitality BOI recorded a sharp decline. The construction sector continues to be the most optimistic amongst all the non-hydrocarbon sectors for Q2 2013.
Commenting on the findings of the survey, Dr. Said Al-Shaikh, Senior Vice President and Group Chief Economist of the National Commercial Bank, said, "Businesses in Saudi Arabia plan to continue hiring despite the headwinds that the global economy must still overcome to reach a sustainable path. Of the non-oil and gas companies surveyed, 56% plan to increase their headcounts in the 2nd Q, whereas 42% anticipate no change.
"It is also apparent that the continued improvement in bank credit conditions along with strong government investment spending in physical and social infrastructure to have made the construction sector the most optimistic among other sectors, as demonstrated by the rise in the construction BOI to 65 points.
© The Saudi Gazette 2013
