Editor’s Note:
The Jadwa Investment firm in Riyadh introduced the “Saudi Chartbook” last year. It provides a quick, chart-based briefing on the key developments and trends in the Saudi economy and stock market for the previous month. SUSRIS is pleased to provide the summary from the September Saudi Chartbook and a link to the complete report which is rich with illuminating charts and graphs. SUSRIS thanks Jadwa Investment’s Chief Economist, Brad Bourland, and Head of Research, Paul Gamble, for providing this insightful product for your consideration.
***
[Complete report with charts, graphs and tables at this link.]
Summary
Real economy: Indicators of consumer spending picked up in October in both absolute and year-on-year terms, which is encouraging given the heightening problems in the global economy. Cement sales recovered after Ramadan and Eid al-Fitr.
Bank lending: Bank lending to the private sector rose at the fastest pace in two years in October. Although interbank rates have continued to creep up, the increase in lending suggests that banks are not yet unduly concerned about the potential spread of stresses in Eurozone banks.
Money supply: Money supply growth jumped in October, driven largely by a jump in government foreign currency deposits. Total bank deposits hit a new all-time high even though time and savings deposits were near a four-year low.
Inflation: Inflation fell slightly in October owing to a fall in food price inflation. Most other components of the cost of living index rose, with rental inflation up for the fifth consecutive month.
Current account: The current account surplus rose in the second quarter owing to higher oil revenues. Import growth was reasonably sluggish. Inflows of investment income were at an all-time high and outflows of workers remittances were only a little off their peak.
Oil: Oil prices have generally been fairly stable over the past month, oscillating in line with concerns about the Eurozone. Technical factors have caused a significant narrowing of the differential between Brent and WTI.
Exchange rates: The deepening Eurozone crisis and deteriorating economic data has pushed the euro down against the dollar. The Egyptian pound has slipped to a psychologically important level against the dollar and the Indian rupee has fallen sharply.
Click here for the original report with charts and graphs.
Stock market:The TASI fell by 1.9 percent in November, owing to expectations of slower fourth quarter earnings growth and movements in global markets. Volumes rose for the fourth month in a row, but were mostly driven by high speculative activity.
Sectoral performance: Only six sectors were up in November, led by the smaller sectors that have been the target of heavy speculative activity in recent months. All of the main sectors fell, which may point to investor concern about the impact of global economic strains.
Valuation: The price-to-earnings ratio of the TASI is close to its low point since April 2009. However, falls in stock markets across the world mean that it is still not cheap when compared to leading global, emerging and regional markets.
[Complete report with charts, graphs and tables at this link.]
***
About Jadwa Investment – Jadwa Investment is a Saudi Closed Joint Stock company operating under the supervision of the Saudi Arabian Capital Markets Authority (CMA). Under the CMA decision published on August 21, 2006, Jadwa was awarded a license to offer all types of investment services including dealing, managing, custody, arranging and advising. All investment services offered by Jadwa Investment are supervised by a Shariah Supervisory Board and are fully Shariah-compliant.
SUSRIS Reports on Economic Issues:
- Saudi Arabia Inflation Report – October 2011 – Jadwa – SUSRIS – Nov 22, 2011
- Monthly Bulletin – November 2011 – Jadwa Investment – SUSRIS – Nov 3, 2011
- Saudi Stock Market Listed Companies’ Foreign Earnings – SUSRIS – Nov 2, 2011
- Saudi Economy: Jadwa November 2011 Chartbook – SUSRIS – Nov 1, 2011
- Saudi Arabia Inflation Report – September 2011 – Jadwa – SUSRIS – Oct 20, 2011
- The “Robust” Saudi Banking Sector: A Conversation with Khaled AlKhattaf – SBRIS – Oct 20 2011
- Economic Projections – Jadwa – SUSRIS – Oct 16, 2011
- Saudi Arabia Inflation Report – August 2011 – Jadwa – SUSRIS – Sep 17, 2011
- Saudi Arabia: Continuing Prosperity – Prince Turki Al-Faisal – SUSRIS – Sep 12, 2011
- September Chartbook – Jadwa – SUSRIS – Sep 9, 2011
- Key Economic Developments – Jadwa – SUSRIS – Sep 3, 2011
- Monthly Bulletin – August 2011 – Jadwa – SUSRIS – Aug 24, 2011
- Saudi Arabia Inflation Report – July 2011 – Jadwa – SUSRIS – Aug 22, 2011
- Inflation Report – Second Quarter 2011 – Saudi Arabian Monetary Agency
- Saudi Economic Trends – Jadwa Chartbook – August 13, 2011
- Debt, Downgrade and Saudi Arabia – Jadwa – August 9, 2011
- The Saudi Stock Market and Ramadan – July 23, 2011
- Saudi Arabia Inflation Report – Jadwa – July 21, 2011
- Saudi Arabia Economics – June 2011 – BSF – July 21, 2011
- Saudi Economic Trends – Jadwa Chartbook – July 20, 2011
- Short Term Inflation Spike – SUSRIS – Jul 16, 2011
- Energy, Consumption Lift Saudi Q3 Business Confidence – Sfakianakis – SUSRIS – June 28, 2011
- Saudi Arabia Economics – SUSRIS – June 21, 2011
- Saudi Arabia Economics – SUSRIS – May20, 2011
- Real Estate Saudi Arabia – SUSRIS – May 12, 2011
- Saudi Arabia Monetary Indicators – April 2011 – SUSRIS – Apr 28, 2011
- Business Confidence Rides on $100 Plus Oil – SUSRIS – March 2011
- Economics Quarterly: To Spend or Not to Spend? – SUSRIS – March 2011
- Monthly Monetary Indicators – SUSRIS – March 2011
- Reaching Out Again: Financial Support Analyzed – BSF – Mar 23,2011
- Royal decrees, regional unrest and the economy – Jadwa – SUSRIS – Mar 23, 2011
- Saudi Arabia Economics – BSF – Mar 22, 2011
- Monthly Monetary Indicators – March 2011
- Emerging Markets: What is next for Saudi Arabia? – March 2011
- Employment Quandary: Urgency for Reform – SUSRIS – February 2011
- Saudi Arabia Monetary Indicators – SUSRIS – February 2011
- Uprising in Egypt and Financial Volatility – SUSRIS – January 31
- Saudi Arabia Economics – SUSRIS – January 2011
- Saudi Business Leaders Bullish in 2011, BSF Confidence Index Show- SUSRIS
- Why Are Economists Bullish on Saudi Arabia’s 2011 Economic Prospects – SUSRIS
- Saudi Arabia Monetary Indicators – January 2011 – SUSRIS
- Ready to Roll: 2011 Saudi Budget: Sfakianakis – SUSRIS – Dec 21, 2010
- Saudi 2011 Budget Reflects Solid Economy – SUSRISblog – Dec, 21, 2010
- Saudi Arabia Monetary Indicators – December 2010
- Saudi Arabia Economics – December 2010 – SUSRIS – Dec 7, 2010
- Saudi Monetary Indicators – November 2010 – SUSRIS – Nov 12, 2010
- Saudi Arabia Business Confidence Index – 2010Q4 – SUSRIS – Oct 19, 2010
- Saudi Arabia Economics – BSF – October 2010 – SUSRIS – Oct 11, 2010
- Jadwa Monthly Economic Bulletin – September 2010 – SUSRIS – Oct 9, 2010
- Saudi Monthly Monetary Indicators from BSF 10-06-10 – SUSRIS – Oct 7, 2010
- Saudi Monetary Indicators for August 2010 – SUSRIS – Sep 1, 2010
- Saudi Arabia Economics – August 2010 – SUSRIS – Aug 22, 2010
- August Bulletin – Jadwa Investment – SUSRIS – Aug 10, 2010
- Saudi Economic Trends – Jadwa Chartbook – August 2010 – SUSRIS – Jul 31, 2010
- Saudi Monetary Indicators for July 2010 – SUSRIS – Jul 7, 2010
- Saudi Monetary Indicators for June 2010 – SUSRIS – Jun 30, 2010
- Saudi Economic Trends – Jadwa Chartbook – June 2010 – SUSRIS – Jun 1, 2010
- Euro crisis and its impact on Saudi Arabia – Jadwa – SUSRIS – May 29, 2010
- Saudi Arabia Economics – May 2010 – SUSRIS – May 25, 2010
- Saudi Monetary Indicators for April 2010 – SUSRIS – May 25, 2010
- Vulnerability to European “Shockwaves” – Sfakianakis – SUSRIS – May 17, 2010
- Jadwa Investment May 2010 Bulletin – SUSRIS – May 17, 2010
- Greek Debt Crisis and the Kingdom – SUSRIS – May 11, 2010
- Jadwa Investment April 2010 Bulletin – SUSRIS – Apr 28, 2010
- U.S. Exports to Arab World Rebounding – SUSRIS – Apr 16, 2010
- Saudi Economic Trends – Jadwa Chartbook – April 2010
- Saudi Stock Market Report – Jadwa Investment – SUSRIS IOI – Mar 21, 2010
- Jadwa Chartbook – March 2010
- Jadwa Chartbook – February 2010
