MID-YEAR SECTOR AND STOCK VIEW REVISION

Trends in the food retail sector remain challenging adding pressure on valuations: we downgrade Othaim and BinDawood to Sell. We continue to view eXtra as one of the best picks in the discretionary space, with unique exposure to consumer finance (Buy), while Jarir is supported by its dividend yield (Hold). Alamar’s earnings recovery has been weaker than expected – we have cut our estimates but maintain a Buy rating at current levels. Jahez is the only stock in our coverage to receive earnings upgrade by the street YTD – we expect solid earnings momentum to continue in 2H25 and upgrade the stock to Buy as warranted by valuations.