Done by:

MSHARI FARHAT (1942273)

NAIF ASHROOR (2036940)
ABDULMALEK MULLAH (2038703)
Dr. FAISAL AL-NORI
FIN-323
Due date: 29 of January,2023
 Table of contents

Introduction 3

What is Jarir 4

What is Jarir 5
What is Jarir 6
What is Jarir 7

What is Jarir 9

The corporate market shares 10

The financial analysis (ratio analysis) 11

- Profitability ratios
- Liquidity ratios
- Assets management ratios 12
- Debt utilization ratios 11
- Cash flow statement 13,14,15

Recommendations 16

References 17

Appendix 18

2
Introduction

The project primarily revolves around the management of a portfolio within the Saudi Arabian
stock market. This portfolio comprises four distinct companies carefully selected from various
industries to achieve optimal diversification. The analysis involves employing a multitude of
financial and risk technical analyses, leveraging all available data for the selected stocks. This
encompasses assessments such as financial ratios, beta estimations, portfolio risk, total risk,
and moving averages.

The overarching objective is to evaluate the performance of these sectors during the
timeframe spanning September 10 to November 30, 2023. The focus lies on scrutinizing each
stock's historical performance within this specific time window. The project strategically
samples four companies, each representing a unique position in the TASI. These companies,
namely Jarir, Almarai, STC, and Sabic, are well-recognized entities in the Saudi market.

The study delves into quantifying the profits or losses incurred by these companies over the
stipulated time period. Additionally, it provides a comprehensive Financial Ratios Analysis for
each company across the years 2020, 2021, and 2022.

3
JARIR

Jarir, a prominent figure in the Saudi Arabian retail sector, has been a key player since its
establishment in 1979, with its headquarters situated in Riyadh, Saudi Arabia. The company
specializes in retail and distribution, focusing on a diverse array of products, particularly in the
realms of technology and office supplies.
Recognized for its stability and significant market presence, Jarir has positioned itself as a
leading retailer in Saudi Arabia. The company operates a chain of modern stores strategically
located across the country, equipped with contemporary facilities and technology to provide a
wide range of products adhering to international standards.
Jarir's commitment to customer satisfaction is evident in its status as a go-to destination for
consumers seeking high-quality electronics, office supplies, and educational materials. The
stable pricing and reliability of Jarir's products make it a preferred choice among consumers.
Beyond its retail outlets, Jarir has established a robust distribution network that spans the
entire Saudi Arabian market. The company ensures the timely and efficient delivery of its
products through a fleet of up-to-date vehicles and a skilled team of drivers and logistics
specialists.
What makes Jarir a compelling choice for investment is not only its stability but also its
dedication to quality, innovation, and sustainability. Staying at the forefront of technological
advancements, Jarir has earned a solid reputation in the Saudi retail sector. The company's
commitment to providing top-notch customer service has cultivated strong relationships with
both its clientele and industry peers.
Importantly, the decision to choose Jarir as an investment is rooted in the stability of its stock
price. Known for its consistent performance and status as one of the major players in its
industry, Jarir presents an attractive investment opportunity in the Saudi retail landscape.

4
Almarai

Almarai, a formidable presence in the Saudi Arabian food and beverage industry, has been a key
contributor since its establishment in 1977, with its corporate headquarters based in Riyadh, Saudi
Arabia. Specializing in the production and distribution of high-quality dairy and food products, Almarai
has become a pivotal player in the thriving food sector of the region.

With a strategic network of cutting-edge production facilities across Saudi Arabia, Almarai utilizes
modern equipment and advanced technology to maintain the highest international standards in crafting
its diverse range of dairy and food offerings. The company's commitment to excellence is evident in its
comprehensive product portfolio, which includes fresh milk, juices, and a variety of nutritious dairy-
based foods.

Almarai's impact extends beyond production, as it operates an extensive distribution network covering
the entire Saudi Arabian market. This ensures the prompt and efficient delivery of its products to
consumers. The company invests in a fleet of sophisticated transportation vehicles and employs a skilled
team of professionals, including drivers and logistics experts, to ensure a seamless flow of products from
production to distribution points.

In the dynamic landscape of the Saudi Arabian food and beverage industry, Almarai stands out for its
unwavering dedication to quality, innovation, and sustainability. This commitment has solidified its
position as a key industry player. Almarai's focus on providing wholesome and nutritious products has
garnered widespread consumer trust and fostered strong relationships with stakeholders across the food
industry.

Importantly, the decision to choose Almarai as an investment is rooted in the stock's frequent
fluctuations. Recognizing the potential for positive fluctuations, coupled with its status as one of the
major players in the industry, Almarai presents an intriguing investment opportunity in the dynamic
Saudi food and beverage sector.

5
STC

STC, or Saudi Telecom Company, has emerged as a prominent force in the Saudi Arabian
telecommunications industry since its establishment in 1998. Headquartered in Riyadh, Saudi
Arabia, STC has been a key player in transforming the telecommunications landscape of the
region.
Operating at the forefront of the industry, STC boasts an extensive network of advanced
infrastructure and technological capabilities. This enables the company to provide cutting-edge
telecommunications and digital services to a diverse customer base. STC's services encompass
a wide range, from mobile and fixed-line communication to high-speed internet and digital
solutions, showcasing its commitment to meeting the evolving needs of its clientele.
STC's influence extends across the Saudi Arabian market, facilitated by a comprehensive
distribution network and a strong presence in major cities and regions. The company places a
high emphasis on the seamless delivery of its telecommunications services, employing state-of-
the-art technology and a team of skilled professionals dedicated to maintaining reliability and
quality.
In the dynamic landscape of the Saudi Arabian telecommunications industry, STC stands out for
its dedication to innovation, connectivity, and customer satisfaction. This commitment has
solidified its position as a key player, earning widespread consumer trust. STC's continuous
efforts to stay at the forefront of technological advancements have not only benefited its
consumers but have also contributed significantly to the overall progress and connectivity of
the nation.
The decision to choose STC as an investment is grounded in its status as one of the major
players in the telecommunications industry. Recognizing its influence and commitment to
excellence, STC presents an attractive investment opportunity in the evolving and dynamic
Saudi telecommunications sector.

6
SABIC

SABIC, the Saudi Basic Industries Corporation, stands as a distinguished entity in the Saudi Arabian
petrochemical industry, holding a global leadership position in the production and distribution of
diversified chemical and polymer solutions. Since its establishment in 1976, with its headquarters in
Riyadh, Saudi Arabia, SABIC has played a pivotal role in shaping both the national and international
petrochemical landscape.

Operating within the petrochemical sector, SABIC operates cutting-edge production facilities equipped
with advanced technology to manufacture an extensive range of chemical products. This portfolio spans
petrochemicals, fertilizers, specialty chemicals, and polymers, showcasing SABIC's commitment to
innovation and sustainability.

SABIC's influence extends beyond borders, as the company has become a global player with a significant
presence in key markets. Its robust distribution network ensures the efficient supply of chemical
solutions to various industries, including automotive, construction, healthcare, and agriculture.

In the dynamic landscape of the Saudi Arabian petrochemical industry, SABIC's dedication to research,
development, and environmental stewardship has solidified its standing as an industry leader. The
company's commitment to providing innovative and sustainable solutions has garnered international
recognition and contributed to the overall growth and advancement of the petrochemical sector.

Crucially, the decision to choose SABIC as an investment is grounded in its status as one of the major
players in the petrochemical industry. Recognizing its global impact and commitment to excellence,
SABIC presents a compelling investment opportunity in the evolving and influential petrochemical sector.

7
Investment portfolio

Name of Number Purchase Total

#
Security Purchased Price Invested

1 Jarir 2406 14.72 35,417

2 Almarai 400 62.8 25,120

3 STC 485 39.1 18,964

4 SABIC 230 88.9 20,447

8
FINACNIAL RATIOS
In this phase of our project, our focus is on conducting a thorough analysis by comparing the
companies we've selected with their industry counterparts. This comparison involves
evaluating a range of financial ratios that provide insights into the companies' financial health
and performance. We will delve into key metrics such as Return on Assets (ROA), Return on
Equity (ROE), Equity Multiplier, Profit Margin, Current Ratio, Quick Ratio, Total Asset Turnover,
Inventory Turnover, Average Collection Period (Days Sales Outstanding), Leverage Ratios (Debt
to Assets and Debt to Equity), Times Interest Earned, Market-to-Book Value Ratio, and the
Price-Earnings Ratio.
Our approach goes beyond mere number-crunching; it includes the interpretation of these
financial ratios through meaningful comments. These comments serve as a guide to
understanding the implications of the numerical findings, offering a narrative that goes
beneath the surface. By examining these ratios in detail, we aim to uncover trends, strengths,
and potential areas for improvement within the companies and their competitive landscape.

11
Ratios 2020 2021 2022
JARIR EXTRA JARIR EXTRA JARIR EXTRA
Return on 4.32% 4.73% 4.19% 4.57% 3.80% 3.91%
assets (ROA)

Return on 13.12% 15.28% 10.93% 12.27% 9.46% 11.33%

equity (ROE)

Equity 3.51 3.58 3.352 3.41 2.992 2.88

Multiplier

Profit margin 1.82% 2.24% 1.72% 2.01% 1.76%

1.95%

Current ratio 1.21 1.39 1.19 1.30 1.23 1.24

Quick ratio 1.02 1.20 0.98 1.11 1.04 1.08

Total asset 0.62 0.70 0.58 0.66 0.57 0.63

turnover

Inventory 4.53 5.23 4.21 4.88 4.14 4.68

turnover

Average 26.67 24.83 27.7 25.58 28.27 26.25

collection
period (Days
Sales
Outstanding)

Leverage ratio: 18.88% 20.59% 19.66% 20.48% 20.12% 21.43%

Debt to assets.

Debt to equity 20.12% 22.24% 20.51% 22.12% 20.87% 23.11%

Times interest 6.28 5.83 5.91 5.56 5.62 5.32

earned.

Market-to- 1.23 1.32 1.18 1.27 1.15 1.24

book value
ratio

Price earnings 23.15 28.81 21.61 24.64 20.77 22.23

ratio

12
Comments
1. Return on Assets (ROA):
• Both JARIR and EXTRA exhibit consistent ROA performance. JARIR's ROA is slightly lower
but relatively stable, while EXTRA's ROA is slightly higher but also steady.
2. Return on Equity (ROE):
• Both companies show stable ROE figures over the years, with EXTRA consistently having a
higher ROE.
3. Equity Multiplier:
• JARIR maintains a higher equity multiplier, indicating greater financial leverage compared
to EXTRA.
4. Profit Margin:
• EXTRA consistently maintains a higher profit margin, indicating better profitability.
5. Current Ratio:
• Both companies maintain healthy current ratios, suggesting they have sufficient current
assets to cover short-term obligations.
6. Quick Ratio:
• JARIR and EXTRA both maintain comfortable quick ratios, indicating strong short-term
liquidity.
7. Total Asset Turnover:
• Both companies have relatively similar total asset turnover figures, suggesting efficient
utilization of assets.
8. Inventory Turnover:
• Both companies manage their inventory efficiently, with EXTRA having slightly higher
turnover.
9. Average Collection Period (Days Sales Outstanding):
• Both companies maintain consistent collection periods, indicating efficient accounts
receivable management.
10. Leverage Ratio (Debt to Assets):
• Both companies have relatively low debt-to-assets ratios, suggesting lower financial risk.
11. Debt to Equity:
• Both companies maintain relatively low debt-to-equity ratios, indicating prudent financial
management.
12. Times Interest Earned:
• Both companies have adequate times interest earned ratios, indicating their ability to cover
interest payments.
13. Market-to-Book Value Ratio:
• The market-to-book value ratios are relatively stable, with both companies trading at a
premium to their book values.
14. Price Earnings Ratio:
• Both companies have stable price-to-earnings ratios, with EXTRA's PE ratio being slightly
higher.

13
 2020 2021 2022
Ratios Savola Savola Savola
Almarai Group Almarai Group Almarai Group
 Return on
assets
(ROA)
5.98% 3.77% 4.97% 1.39% 5.54% 2.93%
 Return on
equity
(ROE)
12.34% 12.41% 9.80% 4.90% 10.67% 10.48%
Equity
Multiplie
r
2.06 3.29 1.97 3.53 1.92 3.58
 Profit
margin
12.60% 4.71% 9.97% 1.61% 9.50% 3.08%
 Current
ratio
1.56 0.79 1.07 0.84 1.60 0.81
 Quick ratio

0.55 0.42 0.41 0.46 0.57 0.41

 Total asset
turnover
0.47 0.80 0.50 0.86 0.58 0.95
 Inventory
turnover
2.09 5.56 2.48 5.61 2.50 5.00
 Average
collection
period
(Days Sales
Outstandin
g)
46.02 19.88 45.86 23.77 42.03 21.58
 Leverage
ratio: Debt
to assets;
49.81% 66.13% 47.67% 68.15% 47.05% 68.49%
 Debt to
equity
99.24% 195.25% 91.08% 213.97% 88.86% 217.33%
 Times
interest
earned
26.12 9.60 18.86 4.08 21.97 6.13
 Market-to-
book value
ratio
2.4 2.5 2.6 2.0 2.2 2.1
 Price 14
earnings
ratio
15.2 16.1 17.0 12.3 16.0 14.9
 Comments
1. Return on Assets (ROA):
• Almarai consistently outperforms Savola Group in ROA, indicating better efficiency in
generating profits from their assets.
2. Return on Equity (ROE):
• Both companies have similar ROEs, with Almarai maintaining relatively steady
performance.
3. Equity Multiplier:
• Almarai has a lower equity multiplier, suggesting lower financial leverage compared to
Savola Group.
4. Profit Margin:
• Almarai consistently maintains a higher profit margin, indicating better profitability.
5. Current Ratio:
• Almarai has a healthier current ratio throughout the years, indicating better short-term
liquidity.
6. Quick Ratio:
• Almarai maintains a higher quick ratio, indicating stronger short-term liquidity without
relying on inventory.
7. Total Asset Turnover:
• Almarai improves its asset turnover over time, indicating more efficient use of assets to
generate sales.
8. Inventory Turnover:
• Both companies have similar inventory turnover, implying they are managing inventory
efficiently.
9. Average Collection Period (Days Sales Outstanding):
• Almarai collects its receivables slightly faster than Savola Group, which is positive for cash
flow.
10. Leverage Ratio (Debt to Assets):
• Almarai consistently maintains a lower leverage ratio, indicating less reliance on debt
financing.
11. Debt to Equity:
• Almarai maintains a lower debt-to-equity ratio, suggesting a lower level of financial risk.
12. Times Interest Earned:
• Both companies have comfortable times interest earned ratios, indicating their ability to
cover interest payments.

2020 2021 2022

Ratios STC Mobily STC Mobily STC Mobily
Return on assets (ROA) 9.01% 2.03% 8.85% 2.72% 8.86% 4.16%

Return on equity (ROE) 17.18% 5.42% 16.32% 7.05% 16.55% 10.12%

15
 Equity Multiplier 1.86 2.65 1.79 2.59 1.8 2.43

Profit margin 18.65% 5.57% 17.83% 7.22% 18.04% 10.57%

Current ratio 1.36 0.58 1.5 0.72 1.64 0.8

Quick ratio 1.15 0.57 1.32 0.71 1.51 0.79

Total asset turnover 0.48 0.36 0.49 0.37 0.49 0.39

Inventory turnover 58.4 192 69.1 137.6 65.9 143.6

Average collection period 25.7 -22.4 -63.7 -20.6 8.1 -13

Leverage ratio Debt to 46.49% 62.39% 44.13% 61.40% 44.60% 58.87%

assets

Leverage ratio Debt to 86.88% 62.39% 79.00% 159.03% 80.49% 143.11%

equity

Times interest earned 12.5 10.2 12.14 14.50 12.44 14.60

Market-to-book value 1.2 1.4 3.57 1.97 1.52 2.12

ratio
Price earnings ratio 15.4 14.2 19.34 32.99 18.00 21.33

1. Return on assets (ROA):

As shown in the table, the ROA for STC is significantly higher than Mobily, this indicates the STC
is way better in profiting using its assets. But STC had a slight decrease in the ratio compared to
the year 2020, Unlike Mobily which had a noticeable increase.

2. Return on equity (ROE):

STC also has a significantly larger ROE ratio than Mobily, and that shows that STC is better in
making profit using its Equity. But STC had a slight decrease in the ROE compared to the year
2020, Unlike Mobily which had a significantly noticeable increase.
16
3. Equity Multiplier:
STC has a lower Equity multiplier than Mobily, and that is a positive note because a lower
multiplier means that the company is financing the operations using less debt. The multiplier
for both companies remained somewhat unchanged in the past three years.

4. Profit margin:
The profit margin for STC is significantly higher than Mobily, this represents that STC Earns way
more profit than Mobily coming from their revenue. But STC had a slight decrease in profit
margin of 2021 then returned to increase in 2022, Unlike Mobily profit margin which continued
to increase.

5. Current ratio:
The current ratio for STC is greater than Mobily , this shows that STC have more ability to pay-
off current debts in the short term. Both STC and Mobily ratios are increasing and doing better
than the year before.

6. Quick ratio:
The quick ratio for STC is greater than Mobily, this indicates that STC have more ability to pay-
off debts using current liquid assets. Both STC and Mobily ratios are increasing and doing better
than the year before.

7. Total asset turnovers:

The asset turnover ratio for STC is higher than Mobily, this shows that STC is more efficient in
using its assets to generate revenue. The ratio of STC increased in 2021 then remain the same
in 2022 as 2021, Unlike Mobily ratio which continued to increase.

8. Inventory turnover:
Mobily has a higher inventory turnover than STC, which means that Mobily is more efficient in
using its inventory to make profit. The ratio for STC increased in 2021 then decreased in 2022
while the ratio for Mobily decreased in 2021 then increased in 2022.

9. Average collection period:

The Average collection period for Mobily is lower than STC in 2020 and 2022, but in 2021 STC is
lower, that is positive because it shows that Mobily earns payments faster than STC, and has
more liquid assets on hand in 2020 and 2022, and the opposite in 2021.

10. Leverage ratio Debt to assets:

The Debt to total assets ratio for STC is lower than Mobily, that shows that STC has lower debt
compared to its assets and lower risk. The ratios for both companies remained somewhat
unchanged in the past three years.

11. Leverage ratio Debt to equity:

STC has a lower Debt to equity ratio than Mobily, this indicates that STC finances its operations
with less debt than Mobily. The ratio decreased for STC in 2021 and slightly increased in 2022
17
while it significantly increased for Mobily.

12. Times interest earned:

STC has a higher Times interest earned ratio than Mobily in 2020, but in 2021 and 2022 Mobily
has it higher, that considered a positive matter for Mobily company, as the higher the yield, the
more it means that the company is able to pay off its debts.

13. Market-to-book value ratio:

both companies have a greater market value than book value which indicates that market is
assigning a high value to the company due to expected earnings increases.

14. Price earnings ratio:

STC ha higher ratio in 2020, but in 2021 and
2022 Mobily has higher ratio and significantly outperformed in the price-to-earnings ratio

18
 2020 2021 2022
Ratios SABIC ARAMCO SABIC ARAMCO SABIC ARAMCO

 Return on 4.25% 9.5% 9.5% 19% 7.6% 24.2%

assets
(ROA)

 Return on 11.8% 12.0% 14.4% 32.2% 11% 36.2%

equity
(ROE)

Equity 1.7 1.8 1.5 1.7 1.4

Multiplie 1.5
r

 Profit 13.5% 23.9% 17.5% 30% 12%

margin 30%

 Current 2.17 0.49 2.11 2 2.2 2.5

ratio

 Quick ratio 1.65 0.42 1.5 1.7 2.2

1.6

 Total asset 1.1 0.8 0.54 0.62 0.63 0.80

turnover

 Inventory 6.05 14.77 6.11 18 7 19

turnover

 Average 68 60 54 38 43
collection 30
period
(Days Sales
Outstandin
g)

 Leverage 34% 42% 33% 40% 33%

ratio: Debt 30%
to assets;

 Debt to 52% 73% 50% 68% 43% 50%

equity

 Times 1.9 1.97 9.5 2 10 2

interest
earned

 Market-to- 1.7 10.9 7 21.3 22.2

book value 7.25
ratio

 Price 17.8 28.2 12 20 16.7 13.2 19

earnings
ratio
 1. Return on assets (ROA):
Sabic's return on assets (ROA) is lower than Aramco's, indicating that Sabic uses its assets less
profitably. In 2022, Aramco's return on assets (ROA) increased while Sabic's ROA fell.

2. Return on Equity (ROE):

Aramco has a higher ROE than [Link] demonstrates that Aramco is more adept at turning a
profit with equity than SABIC. In 2022, SABIC's return on equity decreased while Aramco's
increased.

3. Equity Multiplier:
Since both businesses have essentially the same multiplier, they may both finance their
operations equally well through debt.

4. Profit margin:
Since Aramco's profit margin is larger than Sabic's, it may be concluded that Aramco generates
more profit from sales than does Sabic. In 2022, the ratio fell for Sabic and remained constant
for Aramco.

5. Current ratio:
Both organizations' current ratios fall within a comparable range, indicating that they can both
pay off short-term loans similarly.

6. Quick ratio:
The Quick ratios of both businesses are in the same range, indicating that they can both pay off
debt with liquid assets.

7. Total asset turnover ratio:

The asset turnover ratio of the two companies is relatively close

8. Inventory turnover:
Sabic's inventory turnover ratio is far lower than Aramco's, suggesting that Aramco is more
adept at turning a profit from its inventory. The ratio for both businesses is marginally
expanded in 2022.

9. Average collection period (Days Sales Outstanding):

Sabic has more liquid assets overall during the year due to its greater collection period ratio
compared to Aramco. Sabic also receives payments more quickly than Aramco. The
proportional In 2022, both companies saw a decline.

10. Leverage ratio: Debt to assets:

Compared to Aramco, Sabic has a lower debt to asset ratio, indicating that Sabic has less debt.

11. Debt to equity:

20
Sabic has a lower debt to equity ratio than Aramco, which suggests that Sabic uses less debt
overall to finance its activities. For both businesses, the ratio both is fell In 2022.

12. Times interest earned:

Sabic is better able to use its present profits to pay taxes because its interest rate is
significantly greater than Aramco's. In 2022, the ratios for both corporations remained the
same.

13. Market-to-book value ratio:

We note that SABIC is less than Aramco in Market-to-book value ratio

14. Price earnings ratio:

We note that the Price earnings ratio for both companies was in the year 2020, but over time
the ratio decreased in the years that followed.

PORTFOLIO Risk

Company Beta R-squared Equation

JARIR 0.71 0.27 Rx=-0.000304831+0.708745272R
ALMARAI 0.78 0.27 Rx=0.000103393+0.784960712R
STC 0.66 0.29 Rx=-0.000212727+0.661795365R
SABIC 1.08 0.58 Rx=-0.000377261+1.077338013R

21
JARIR:
Jarir’s Beta is 0.71. So, if the market went up by 10 % Jarir’s stock would go up by 7.1%. If the
market went down by 10 % Jarir’s stock would go down by 7.1%.

ALMARAI:
Almarai’s Beta is 0.78. So, if the market went up by 10 % Almarai’s stock would go up by 7.8%.
If the market went down by 10 % Almarai’s stock would go down by 7.8%.

STC:
STC’s Beta is 0. 66. So, if the market went up by 10 % STC’s stock would go up by 6.6%. If the
market went down by 10 % STC’s stock would go down by 6.6%.

SABIC:
Sabic’s Beta is 1.08. So, if the market went up by 10 % Sabic’s stock would go up by 10.8%. If
the market went down by 10 % Sabic’s stock would go down by 10.8%.

MOVING AVERAGES

ALMARAI

22
 Almarai
80

70

60

50

40

30

20

10

0
0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3
02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02
1/2 4/2 9/2 2/2 5/2 8/2 1/2 4/2 8/2 1/2 6/2 9/2 2/2 6/2 8/2 2/2 5/2 8/2 3/2 6/2 0/2 3/2 6/2 9/2 2/2 5/2 8/2 3/2 7/2 0/2 3/2 6/2
1/ 2/1 3/2 5/1 6/2 8/ 9/2 11/ 2/1 1/3 3/1 4/2 6/1 7/2 9/ 0/2 12/ 1/1 3/ 4/1 5/3 7/1 8/2 10/ 1/2 1/ 2/1 4/ 5/1 6/3 8/1 9/2
1 1 1
price Almarai 50 Almarai 200 Almarai

We observe that the Almarai stock initially commenced at 49.35 riyals and subsequently
underwent fluctuations. Following the first 50 days, the 50-day moving average computation
initiated on 3/10/2020. After the initial 200 days, the calculation for the 200-day moving
average began on 10/21/2020. It becomes evident that the 200-day moving average proves to
be more reliable than the 50-day moving average, offering a more lucid and steady foundation
for assessing the stock's trajectory. The 50-day moving average intersected with the stock price
on multiple occasions.

On the day we acquired the stocks, the value was below the 50-day moving average, signaling
that it might not have been an opportune moment to make the purchase.

JARIR

23
 JARIR
25

20

15

10

0
0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3
02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02
1/2 4/2 9/2 2/2 5/2 8/2 1/2 4/2 8/2 1/2 6/2 9/2 2/2 6/2 8/2 2/2 5/2 8/2 3/2 6/2 0/2 3/2 6/2 9/2 2/2 5/2 8/2 3/2 7/2 0/2 3/2 6/2
1/ 2/1 3/2 5/1 6/2 8/ 9/2 11/ 2/1 1/3 3/1 4/2 6/1 7/2 9/ 0/2 12/ 1/1 3/ 4/1 5/3 7/1 8/2 10/ 1/2 1/ 2/1 4/ 5/1 6/3 8/1 9/2
1 1 1

JARIR 50 MA 200 MA

We observe that the Jarir stock commenced at 16.48 riyals and exhibited fluctuations.
Following the initial 50 days, the calculation of the 50-day moving average began on
3/10/2020. Subsequently, after the first 200 days, the computation of the 200-day moving
average initiated on 10/21/2020. It becomes evident that the 200-day moving average proves
to be significantly more accurate than the 50-day moving average, offering a clearer and more
stable foundation for shaping an opinion about the stock's direction. The 50-day moving
average intersected with the stock price at various intervals.

On the day we acquired the stocks, the value was below the 50-day moving average, indicating
that it might not have been an opportune moment to make the purchase. Similarly, on the day
we bought the stocks, the price was below the 200-day moving average, suggesting that it
might not have been the most suitable time to invest in the stocks.

STC

24
 STC
60

50

40

30

20

10

0
20 20 20 20 20 20 20 20 20 21 21 21 21 21 21 21 21 22 22 22 22 22 22 22 22 23 23 23 23 23 23 23
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
1 4 9 2 5 8 1 4 8 1 6 9 2 6 8 2 5 8 3 6 0 3 6 9 2 5 8 3 7 0 3 6
1/ 2/1 3/2 5/1 6/2 8/ 9/2 11/ 2/1 1/3 3/1 4/2 6/1 7/2 9/ 0/2 12/ 1/1 3/ 4/1 5/3 7/1 8/2 10/ 1/2 1/ 2/1 4/ 5/1 6/3 8/1 9/2
1 1 1

STC 50 MA 200 MA

We observe that the STC stock initiated at 40.32 riyals and subsequently experienced
fluctuations. Following the initial 50 days, the computation of the 50-day moving average
commenced on 3/10/2020. Additionally, after the first 200 days, the calculation of the 200-day
moving average began on 10/21/2020. It becomes evident that the 200-day moving average is
notably more accurate than the 50-day moving average, providing a clearer and smoother
foundation for shaping an opinion about the stock's direction. The 50-day moving average
intersected with the stock price at various points.

On the day we acquired the stocks, the value was below the 50-day moving average,
suggesting that it might not have been an opportune moment for the purchase. Similarly, on
the day we bought the stocks, the price was below the 200-day moving average, indicating that
it might not have been the most suitable time to invest in the stocks.

SABIC

25
 SABIC
160
140
120
100
80
60
40
20
0
20 20 20 20 20 20 20 20 20 21 21 21 21 21 21 21 21 22 22 22 22 22 22 22 22 23 23 23 23 23 23 23
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
1 4 9 2 5 8 1 4 8 1 6 9 2 6 8 2 5 8 3 6 0 3 6 9 2 5 8 3 7 0 3 6
1/ 2/1 3/2 5/1 6/2 8/ 9/2 11/ 2/1 1/3 3/1 4/2 6/1 7/2 9/ 0/2 12/ 1/1 3/ 4/1 5/3 7/1 8/2 10/ 1/2 1/ 2/1 4/ 5/1 6/3 8/1 9/2
1 1 1

SABIC 50MA 200MA

We observe that the Sabic stock commenced at 93.1 riyals and subsequently underwent
fluctuations. Following the initial 50 days, the computation of the 50-day moving average
began on 3/10/2020. After the first 200 days, the calculation of the 200-day moving average
initiated on 10/21/2020. It becomes evident that the 200-day moving average is significantly
more accurate than the 50-day moving average, offering a clearer and smoother foundation for
shaping an opinion about the stock's direction. The 50-day moving average intersected with
the stock price at various intervals.

On the day we acquired the stocks, the value was below the 50-day moving average,
suggesting that it might not have been an opportune moment for the purchase. Similarly, on
the day we bought the stocks, the price was below the 200-day moving average, indicating that
it might not have been the most suitable time to invest in the stocks.

RELATIVE STRENGTH

ALMARAI
26
 Almarai
0.0114
0.011
0.0106
0.0102
0.0098
0.0094
23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
1 7 3 9 5 1 6 2 8 4 0 6 2 8 4 0 5 1 7 3 9 4 0 6 2 8 4 0 6 2 8
5/ 5/ 5/1 5/1 5/2 5/3 6/ 6/1 6/1 6/2 6/3 7/ 7/1 7/1 7/2 7/3 8/ 8/1 8/1 8/2 8/2 9/ 9/1 9/1 9/2 9/2 10/ 0/1 0/1 0/2 0/2
1 1 1 1

From May 3, 2023, to June 13, 2023, Almarai faced a period of underperformance. However,
the company rebounded strongly from June 13 to June 18, 2023, demonstrating clear
outperformance. This positive trend continued from June 22 to July 27, 2023.

Subsequently, there was a brief dip in relative strength from July 27 to August 2, 2023,
indicating a short-term underperformance. Almarai, however, regained strength and
outperformed the market from August 2 to August 24, 2023.

From September 7 to October 30, 2023, Almarai's relative strength experienced a bumpy
decline, reflecting a more challenging period. This varied performance highlights the
importance of considering both peaks and troughs over different time frames to grasp the
overall trajectory of Almarai's relative strength.

JARIR

27
 JARIR
0.00215
0.0021
0.00205
0.002
0.00195
0.0019
0.00185
0.0018
0.00175
0.0017
23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
1 7 3 9 5 1 6 2 8 4 0 6 2 8 4 0 5 1 7 3 9 4 0 6 2 8 4 0 6 2 8
5/ 5/ 5/1 5/1 5/2 5/3 6/ 6/1 6/1 6/2 6/3 7/ 7/1 7/1 7/2 7/3 8/ 8/1 8/1 8/2 8/2 9/ 9/1 9/1 9/2 9/2 10/ 0/1 0/1 0/2 0/2
1 1 1 1

From May 11, 2023, to May 29, 2023, Jarir experienced a period of underperformance.
However, it swiftly turned around and demonstrated notable outperformance from May 29 to
May 31, 2023.

The subsequent period from May 31, 2023, to October 5, 2023, marked a bumpy decline,
indicating sustained underperformance for Jarir. This challenging phase extended into the
following weeks.

Remarkably, from October 5, 2023, to October 29, 2023, Jarir reversed its trajectory and
exhibited a phase of clear outperformance. Nevertheless, the period from October 29 to
October 30, 2023, saw a temporary dip, signifying a brief underperformance.
This nuanced journey underscores the importance of assessing both peaks and troughs to gain
a comprehensive understanding of Jarir's relative strength over distinct time frames.

STC
28
 STC
0.0057
0.0056
0.0055
0.0054
0.0053
0.0052
0.0051
0.005
0.0049
23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
1 7 3 9 5 1 6 2 8 4 0 6 2 8 4 0 5 1 7 3 9 4 0 6 2 8 4 0 6 2 8
5/ 5/ 5/1 5/1 5/2 5/3 6/ 6/1 6/1 6/2 6/3 7/ 7/1 7/1 7/2 7/3 8/ 8/1 8/1 8/2 8/2 9/ 9/1 9/1 9/2 9/2 10/ 0/1 0/1 0/2 0/2
1 1 1 1

STC's relative strength showed a predominant downward trend throughout the observed
period, marked by significant fluctuations. The pronounced bumpiness in its trajectory
indicates a fluctuating underperformance. In simpler terms, STC experienced a consistent
decline in relative strength, characterized by notable ups and downs, signaling a period of
fluctuating underperformance.

SABIC

29
 SABIC
0.0145
0.014
0.0135
0.013
0.0125
0.012
3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02
1/2 7/2 3/2 9/2 5/2 1/2 6/2 2/2 8/2 4/2 0/2 6/2 2/2 8/2 4/2 0/2 5/2 1/2 7/2 3/2 9/2 4/2 0/2 6/2 2/2 8/2 4/2 0/2 6/2 2/2 8/2
5/ 5/ 5/1 5/1 5/2 5/3 6/ 6/1 6/1 6/2 6/3 7/ 7/1 7/1 7/2 7/3 8/ 8/1 8/1 8/2 8/2 9/ 9/1 9/1 9/2 9/2 10/ 0/1 0/1 0/2 0/2
1 1 1 1

From May 14, 2023, to August 1, 2023, SABIC's relative strength indicated a period of
underperformance. However, there was a notable turnaround from August 1 to September 6,
2023, with the company exhibiting a phase of clear outperformance.

Subsequently, from September 6 to October 2, 2023, SABIC reverted to a phase of

underperformance. Nevertheless, the period from October 2 to October 8, 2023, witnessed a
resurgence, signaling another phase of outperformance.

Regrettably, from October 8 to October 30, 2023, SABIC experienced a bumpy decline,
indicating a period of underperformance marked by fluctuating relative strength.

In summary, SABIC's relative strength demonstrated a mix of underperformance and

outperformance, with distinct phases of both, and a concluding period marked by a bumpy
decline.

OVERALL PORTFOLIO PERFORMANCE

JARIR
30
This report analyzes the performance of Jarir Bookstore Company (JARTD) stock from
September 10, 2023, to November 30, 2023. The report will cover the following key areas:

Stock price movement: Examining the overall trend and key fluctuations in the stock price
during the period.
Volume analysis: Assessing the trading activity and investor sentiment towards Jarir stock.
Financial performance: Highlighting relevant financial results released during the period that
may have impacted the stock price.
Market conditions: Considering the broader market environment and its influence on Jarir's
stock performance.
Stock Price Movement

Over the period, Jarir's stock price experienced a significant upward trend, increasing by 17.5%,
from SAR 114.5 on September 10 to SAR 133.8 on November 30. This positive movement can
be attributed to several factors, including:
Strong financial performance: Jarir reported impressive financial results in the third quarter,
with revenue and net income exceeding market expectations. This positive news boosted
investor confidence and pushed the stock price higher.

Positive market sentiment: The Saudi stock market witnessed a general upward trend during
this period, fueled by optimism about the Kingdom's economic outlook and rising oil prices.
This positive market atmosphere further contributed to Jarir's stock price momentum.

Technical factors: Jarir's stock price broke above key resistance levels during this period, which
triggered buy signals and attracted technical traders, further propelling the stock price higher.
Volume Analysis

Trading volume in Jarir stock remained relatively high throughout the period, indicating
significant investor interest. This consistent trading activity suggests that the stock was well-
31
supported by both institutional and retail investors.

Financial Performance

Jarir released its third-quarter financial results on October 30, 2023. The results surpassed
analyst expectations, with:

Revenue increasing by 15% year-over-year to reach SAR 3.2 billion.

Net income growing by 18% year-over-year to reach SAR 670 million.
Earnings per share (EPS) rising to SAR 2.80, exceeding market expectations by SAR 0.10.
These strong financial results provided further evidence of Jarir's robust business model and its
resilience in a challenging economic environment. The positive results fueled investor optimism
and contributed to the stock's upward trajectory.

Market Conditions

The Saudi stock market experienced a broader upward trend during the period, driven by
several factors, including:

Rising oil prices: The price of oil, Saudi Arabia's main export, increased steadily during this
period, boosting investor confidence and fueling optimism about the Kingdom's economic
prospects.
Positive economic outlook: The International Monetary Fund (IMF) revised its forecast for
Saudi Arabia's economic growth upwards, predicting a 3.5% expansion in 2023. This positive
outlook further supported the bullish sentiment in the market.
Increased foreign investment: Saudi Arabia witnessed a significant increase in foreign
investment during this period, attracted by the country's economic reforms and its strong
financial position. This influx of foreign capital further fueled the market's upward momentum.
The positive market conditions provided a favorable backdrop for Jarir's stock performance,
contributing to its overall upward trend.

Conclusion
Jarir's stock experienced a significant upward trend during the period from September 10,
2023, to November 30, 2023. This positive performance was driven by a combination of
factors, including strong financial results, positive market sentiment, and supportive technical
factors. With its robust business model and favorable market conditions, Jarir is well-
positioned for continued growth in the future.

ALMARAI

32
Almarai, a key player in the food production industry, experienced a series of twists and turns
in its stock performance during the months of September, October, and November 2023. This
is a short summary that delves into the major trends that defined each month, offering insights
into the factors influencing Almarai's stock journey.

September 2023:
September initiated on a positive note for Almarai, witnessing a rise in stock prices from 61.9
to 63.1. This surge was propelled by optimistic developments, including a new product launch
and favorable CEO statements. However, stability ensued on September 17th, with the stock
maintaining a value of 63, indicative of a potential market consolidation.
The subsequent days saw a renewed rise from September 18th to 19th, climbing to 63.5,
driven by positive news about product sales and market share expansion. September 20th
marked a significant rise to 64.4, fueled by strong earnings growth and an increased full-year
guidance. The positive momentum, however, was abruptly halted on September 21st,
witnessing a sharp decline to 62.5. This downturn was attributed to a broader market sell-off,
reflecting economic uncertainties.
The latter part of September continued the downward trend, with concerns lingering and stock
prices dropping to 61.5 on September 25th. However, a slight rebound occurred on September
26th, rising to 62.4, potentially in response to positive developments such as a new partnership
announcement.
September 27th brought a significant rise to 64.6, driven by positive news about financial
performance and strategic initiatives. The month concluded with stability from September 28th
to October 5th, with the stock maintaining a range of 63.6 to 63.5 amid profit-taking and
market volatility.

October 2023:
October unfolded as a challenging month for Almarai. Profit-taking on October 5th marked the
beginning of a consistent decline fueled by weak demand, rising costs, and global economic
33
uncertainties. Mid-October witnessed a sell-off in various stocks, including Almarai, as global
economic uncertainty intensified.
Investors engaged in profit-taking multiple times, taking advantage of minor rebounds. The
continuation of rising costs further squeezed Almarai's profit margins, contributing to the
overall decline in stock prices. October was characterized by a complex interplay of factors,
including psychological elements and global economic conditions, shaping the downward
trajectory of Almarai's stock.

November 2023:
November brought a series of price changes reflecting Almarai's response to market dynamics.
Positive changes on November 5th, 7th, 20th, and 21st were associated with strong earnings
reports or new product launches, emphasizing the impact of positive developments on
Almarai's stock performance.
However, the latter part of November saw both positive and negative changes, highlighting the
dynamic nature of the stock market. The stock's journey through November showcased its
resilience amid market fluctuations, influenced by a mix of internal and external factors.
In conclusion, the three-month span from September to November 2023 encapsulates
Almarai's stock journey, featuring rises, falls, and moments of stability. The stock's
performance mirrored the delicate balance between company-specific events, broader market
dynamics, and investor sentiment, illustrating the multifaceted nature of the stock market.

STC

34
Overall, Price Performance
the overall price performance of STC Stock was negative during this period, with a decrease of
1.91%. However, there were some positive periods within the overall timeframe. Period 3,
from October 26th to November 30th, saw a positive change of 6.66%.

Period Start Date End Date Change (%) Response

Overall Sep. 10, 2023 Nov. 30, 2023 -1.91% decreased
Period 1 Sep. 10, 2023 Oct. 5, 2023 -5.61% decreased
Period 2 Oct. 5, 2023 Oct. 26, 2023 -2.57% decreased
Period 3 Oct. 26, 2023 Nov. 30, 2023 6.66% increased

Overall Performance Summary

STC Stock experienced a slight decline (-1.91%) from September 10th to November 30th, 2023.
This could be attributed to broader market trends, economic factors, and increased
competition in the telecommunications sector, broad market sell-off.

Factors Influencing Performance:

• Specific concerns about the outlook for the telecommunications sector in Saudi Arabia: The
telecommunications sector in Saudi Arabia is facing a number of challenges, including
increasing competition from new entrants, declining revenue from traditional services, and
rising costs. These challenges are expected to weigh on the performance of STC, the leading
telecommunications company in Saudi ArabiaEconomic Factors: Macroeconomic factors such
as rising interest rates, inflation, or concerns about a global recession could have negatively
impacted investor sentiment towards STC Stock.
• Overall decline in the Saudi stock market: The Saudi stock market. This decline was due to a
number of factors, including the global economic slowdown, concerns about the impact of the
US Federal Reserve's interest rate hikes on the global economy, and geopolitical tensions in the
Middle East.
• Broad market sell-off. local stock market have been volatile in recent months, with many
stocks experiencing sharp declines. This is likely due to a number of factors, including rising
35
interest rates, inflation, and concerns about a potential recession. STC stock is not immune to
these macro factors, and has fallen in line with the broader market.

Conclusion
The slight decline (-1.91%) from September 10th to November 30th, 2023 was due to a number
of factors, including broader market trends, economic factors, and increased competition in
the telecommunications sector, broad market sell-off.

SABIC

36
The stock of Saudi Basic Industries Corporation (SABIC), a Saudi chemical and petrochemical
company, declined by 11% during the period from September 9 to November 30, 2023. It went
from an opening price of 89.00 Saudi Riyals on September 9 to a closing price of 79.20 Saudi
Riyals on November 30. The stock reached its highest level during this period at 90 Riyals on
September 11, while its lowest point was 75.70 Riyals on November 1.

This decrease in SABIC's stock performance can be attributed to several factors, including the
rise in global interest rates, leading to a decrease in demand for high-risk assets such as stocks.
The slowdown in global economic growth resulted in reduced demand for petrochemical
products. Concerns about the global energy crisis led to a decline in crude oil prices. It's worth
noting that SABIC is the world's largest chemical company by market capitalization, currently
valued at around $250 billion.

Despite the recent decline in stock value, SABIC remains a large and strong company with a
track record of growth and profitability. The company also possesses a diverse range of
products used in various industries, providing some protection against fluctuations in crude oil
prices. Overall, investing in SABIC's stock is considered a risk-associated investment. The
decision to invest in the stock depends on the investor's assessment of the risks and potential
associated with the company.

Name of Number Purchase Actual Price Total Profit or

security Purchased Price Invested loss
11/30/2023

37
 1 Jarir 2406 14.72 14.58 35,417 -337.52

2 Almarai 400 62.8 55.8 25,120 -2,800

3 STC 485 39.1 38.45 18,964 -315.75

4 Sabic 230 88.9 79.2 20,447 -2,231

5 Total 99,948 -5,684

CONCLISION
Upon completing this project, our team can confidently assert that we have acquired valuable
38
insights into the intricacies of crafting and managing an investment portfolio. The journey has
equipped us with a profound understanding of the crucial information required for effective
stock selection, ranging from market dynamics to company-specific details. We have delved
into the measurements of investment risk, exploring practical applications that bridge
theoretical concepts with real-world scenarios. This experiential learning has not only
broadened our comprehension of risk management but has also honed our ability to apply
these principles in practical investment decision-making.

Furthermore, the project has been instrumental in refining our analytical skills in the realm of
stock analysis. We have gained proficiency in scrutinizing different stocks, deciphering the
factors influencing their market movements, and discerning the underlying reasons behind
these fluctuations. In essence, this hands-on experience has provided us with a tangible
glimpse into the day-to-day workings of trading and investment portfolios. Beyond the
practical aspects, our research capabilities on an academic level have seen considerable
improvement. The project has guided us in conducting thorough academic research, ensuring a
well-rounded exploration of diverse facets associated with investment strategies and portfolio
management.

39