GCC Daily Market Update - 1 June

Transcription

1. June 1 , 2022 GLOBAL MARKETS MARKET COMMENTARY Change Performance Value (%) MTD (%) YTD (%) Closing Level Indices Global S&P 500 Dow Jones Ind. Average Nasdaq 100 FTSE 100 DAX 30 CAC 40 BIST 100 Nikkei Hang Seng Shanghai Composite BSE Sensex GCC QE Index Saudi Arabia (TASI) UAE (ADX) UAE (DFM) Kuwait (KSE) Oman (MSM) Bahrain (BAX) MSCI GCC Dow Jones Islamic Commodity Brent (USD/bbl) WTI (USD/bbl) Natural Gas (USD/mmBTU) Gold Spot (USD/t oz.) Copper (USD/lb) 4,132.2 32,990.1 12,642.1 7,607.7 14,388.4 6,468.8 2,547.1 27,279.8 21,415.2 3,186.4 55,566.4 (26.1) (222.8) (39.3) 7.6 (187.6) (93.6) 19.9 (89.6) (156.3) (2.9) (359.3) (0.6) (0.7) (0.3) 0.1 (1.3) (1.4) 0.8 0.3 (0.7) (0.1) (0.6) 0.0 0.4 (1.7) 0.8 2.1 1.0 4.8 1.6 (0.2) 4.6 (2.6) (13.3) (9.2) (22.5) 3.0 (9.4) (9.6) 37.1 (5.3) (8.5) (12.5) (4.6) 12,919.4 12,921.7 10,054.9 3,347.2 7,823.6 4,116.0 1,920.8 828.5 5,259.5 26.3 14.6 147.3 2.1 14.4 (22.3) 13.0 5.7 (3.2) 0.2 0.1 1.5 0.1 0.2 (0.5) 0.7 0.7 (0.1) (5.1) (6.0) (1.7) (10.1) (6.6) (0.5) (7.2) (7.8) (1.0) 11.1 14.5 18.5 4.7 11.1 (0.3) 6.9 12.0 (18.5) 122.8 114.7 8.1 1,842.7 4.3 1.2 (0.4) (0.6) (8.6) (0.0) 1.0 (0.4) (6.7) (0.5) (0.2) 12.4 9.5 12.4 (3.5) (2.3) 57.9 52.5 118.4 0.8 (3.6) Source: Refinitiv Eikon QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All Share 15.3 1.5 3.4 958.4 DSM 20 15.3 1.6 3.5 940.7 Saudi Arabia (TASI) 20.5 2.6 2.4 4,828.0 UAE (ADX) 21.7 2.7 1.9 359.4 UAE (DFM) 13.1 1.1 0.0 387.7 Kuwait (KSE) 12.7 1.7 2.6 650.7 Oman (MSM) 10.8 0.7 5.1 13.1 Bahrain (BAX) 7.4 1.0 4.3 2.0 GCC Fundamentals Dividend Value Traded Yield (%) (USD mn) Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers MESAIEED PETRO BALADNA COMPAN DOHA INS CO QA GAS TRANSPO QNB Top Losers MANNAI CORP QATAR FUEL CO QA ELEC & WATE QA INTL IS BK QATAR FIRST BA 2.7 1.8 2.0 3.7 21.6 8.7 17.2 16.8 10.6 1.5 0.1 0.1 0.1 0.1 0.6 (0.4) (0.8) (0.6) (0.3) (0.0) Performance YTD YoY (%) (%) 4.9 4.4 3.2 2.9 2.7 (4.6) (4.4) (3.7) (3.1) (2.1) Source: Refinitiv Eikon; Note: Prices are in local currency. 29.7 26.0 6.3 13.3 6.7 83.0 (5.9) 1.2 15.1 (6.8) 43.5 17.3 4.0 21.0 21.5 140.2 (4.1) 2.6 11.4 (12.5) Vol. (‘000) P/E TTM 25,765.6 42,035.1 130.2 27,456.8 25,677.4 17.7 25.9 12.3 14.6 15.9 1,120.9 6,160.3 2,579.8 2,803.8 2,315.5 15.5 17.4 12.4 17.6 7.9 Global Global equity markets dipped on Tuesday as investors weighed the prospects of higher inflation following a phased ban of Russian oil imports by the EU that has lifted crude prices to new highs. On Wall Street, all three main indexes closed lower, driven by healthcare, technology, energy and industrial sectors. The DJIA fell 0.7%, the S&P 500 lost 0.6% and the Nasdaq 100 dropped 0.4%. European stocks closed lower on Tuesday after hot inflation readings reignited concerns about the pace of monetary tightening from central banks. The pan-European had dropped 0.7% by the close, with retail stocks shedding 1.7% to lead losses. Japan’s Nikkei index ended 0.3% lower in see-saw trade on Tuesday, with technology stocks leading the losses amid caution over the global economic outlook. Chinese shares closed at five-week highs, led by a rally in consumer and high-tech stocks. GCC Most Gulf markets ended higher on Tuesday, tracking oil prices with Saudi Arabia's benchmark index edged up 0.1%, helped by a 3.6% jump in Saudi National Bank and a 1.1% increase in Saudi Aramco. Dubai's index concluded 0.1% higher, with blue-chip developer Emaar Properties advancing 2.5%. Abu Dhabi index advanced 1.5%, nearing the peak hit in April, boosted by a 3.6% jump in First Abu Dhabi Bank. Qatar The Qatari benchmark index firmed 0.2% on Tuesday. Mesaieed Petrochemical Holding Co. (+4.9%) and Baladna Company (+4.4%) were the top gainers of the day. Out of the 46 traded stocks, 23 advanced, 19 declined and 4 remained unchanged. Total traded volume in the market was higher than the previous trading session. The Transportation index advanced 2.2% and the Telecoms index increased by 1.5% while the Consumer Goods & Services index lower by 1.9%. Qatar DSM Index 14,800 14,400 14,000 13,600 13,200 12,800 12,400 12,000 11,600 3-Mar 12,919.4 600.0 400.0 200.0 0.0 17-Mar 31-Mar 14-Apr Index Volume (mn) 28-Apr 12-May 26-May Index Value Source: Refinitiv Eikon QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation Closing Level 5,541.6 8,494.8 4,883.7 2,678.1 1,827.3 1,129.8 4,098.8 1D Change (%) 0.4 (1.9) 1.2 0.6 0.5 1.5 2.2 Buy (%) Sell (%) 7.9 10.2 Source: Refinitiv Eikon Qatar Trading Summary Qatari Individuals Qatari Institutions Qatari – Total 7.5 11.6 15.4 21.8 Foreign Individuals 3.5 3.4 Foreign Institutions 81.1 74.7 Foreign – Total 84.6 78.2 Source: Qatar Exchange 1
2. June 1 , 2022 GLOBAL NEWS  GSK agreed to buy US biotech Affinivax for up to USD 3.3bn, its second major deal in two months, giving the British pharmaceutical giant access to the company's roster of next-generation vaccines. (Source: Reuters)  Facebook parent Meta Platforms Inc will use Broadcom Inc's custom chips to build its metaverse hardware, becoming the chipmaker's next billion-dollar ASIC customer, analysts at J.P. Morgan said. (Source: Reuters)  German prosecutors raided asset manager DWS and the headquarters of its majority owner Deutsche Bank over allegations of misleading investors about "green" investments, the prosecutors said. (Source: Reuters)  Russia widened its gas cuts to Europe with Gazprom turning off supply to top Dutch trader GasTerra escalating the economic battle between Moscow and Brussels and pushing up European gas price. (Source: Reuters)  Japan's unemployment rate fell to 2.5% in April, the third straight month it has declined, as the labor market showed signs of recovery after all coronavirus restrictions were lifted in late March, the Ministry of Internal Affairs and Communications said. (Source: Reuters)  Japan's parliament enacted Tuesday a JPY 2.7tn (USD 21bn) extra budget for fiscal 2022 to tackle recent rising fuel and food prices following Russia's invasion of Ukraine. (Source: Reuters)  China's external portfolio investment assets, excluding reserve assets, amounted to USD 979.7bn by the end of 2021, according to the country's foreign exchange regulator. Of the total, USD 648.4bn was in equity investments and USD 331.3bn was in bond investments, according to data from the SAFE. (Source: China Daily)  China's mobile phone shipments reached 18.08mn units in April, down 34.2% from a year ago, data from the China Academy of Information and Communications Technology showed. (Source: China Daily)  Turkey’s economy expanded at a higher-than-expected pace in Q1-22, official data showed, driven by strong demand, manufacturing and exports. GDP grew 7.3% YoY in the January-March period, the TurkStat said. (Source: Daily Sabah) GCC NEWS  Despite persistent efforts in the GCC to pursue reforms in the times of economic expansion, more work needs to be done to achieve a sustainable growth model with low hydrocarbon dependence, said a senior World Bank official. (Source: Arab News)  Trade between Israel and the UAE is expected to exceed USD 2bn this year as the two nations signed a free trade agreement, the first big trade accord with an Arab state and a move aimed at boosting trade between the two Middle East nations. (Source: Arab News)  Retail investors have helped fuel the growth in the Middle East’s AUM industry, which recorded a double-digit increase in 2021, according to a new report by BCG. The region’s AUM jumped 16% to USD 1.2tn last year, significantly above the 10-year growth average. (Source: Zawya)  Eutelsat has signed an agreement to provide technical support for DEWA’s Space-D program and to launch its 3U nanosatellite DEWASAT1. (Source: Arab News)  The Investment Corporation of Dubai posted a profit of AED 10.1bn (USD 2.7bn) for 2021, a significant turnaround from the previous 12M and indicative of recovery from the impact of the COVID-19 pandemic. (Source: Arab News)  Dubai-based fintech Tarabut Gateway is working with four major Saudi banks as the kingdom approaches the launch of open banking. The DIFC-based platform said it has been selected by Riyad Bank, SABB, Alinma Bank and Banque Saudi Fransi as part of its expansion into Saudi Arabia. (Source: Zawya)  Tecom Group is aiming for an annual dividend payout of AED 800mn (USD 218mn) following its listing in the H1-22. The firm, which is part of state-owned Dubai Holding, may go public as early as June, Bloomberg reported. (Source: Arab News)  The Abu Dhabi-based petrochemicals company Borouge Plc has raised more than USD 2bn in a 10% stake sale that was hugely oversubscribed. Total gross demand for the IPO amounted to over USD 83.4bn, implying an oversubscription of almost 42 times. (Source: Zawya)  Abu Dhabi-based Agthia Group is expanding in KSA investing AED 90mn (USD 24.5mn) to set up a manufacturing facility in Jeddah for Nabil, one of its protein brands. (Source: Trade Arabia)  Foreign ownership in Saudi Arabia’s stock exchange more than doubled in two years to SAR 450bn (USD 120bn) by the end of the Q122. (Source: Arab News)  Shareholders of Ma’aden, have approved a capital hike plan in addition to the board’s proposal to withhold dividends for 2021. The company is looking to double capital from SAR 12.3bn (USD 3.3bn) to SAR 24.6bn by issuing bonus shares. (Source: Arab News)  Saudi Arabia has announced the launch of 26 water, environmental and agricultural projects in the Tabuk region of the kingdom at a total cost of more than SAR 2.5bn (USD 667mn). (Source: Zawya)  The Jeddah Central Development Company PIF has awarded Saudi group Dar Al-Handasah Consultants to design the master plan for the first phase of its mega SAR 75bn (USD 20bn) Central Jeddah project. (Source: Trade Arabia)  Port of Salalah climbed four positions from 6th place in the CPPI 2020 to 2nd place globally in the CPPI 2021 report published by the World Bank-S&P Global Market Intelligence. It also achieved the 1 spot in the throughput category of large ports (above 4mn TEUS). (Source: Oman Observer)  Oman based Al Maha Ceramics Company has announced in a filing to the CMA that it has signed a Sales & Purchase Agreement to acquire 45% of Al Hael Ceramics Company one of the largest companies of its kind in the Middle East. (Source: Oman Observer)  Bahrain’s ministry of transportation and telecommunications has received 11 documents from bidders showing interest to pre-qualify for a contract to construct the first phase of the Bahrain metro, International Railway Journal reported. (Source: Arab News) QATAR NEWS  Huawei and UDC signed an agreement to deploy Huawei smart campus system at another UDC development, Gewan Island. The agreement builds on a partnership UDC signed last year with Huawei to enhance The Pearl Island’s Smart City features. (Source: The Peninsula)  Poland said Qatar has become its very important and close partner as it finds immense cooperation opportunities in new sectors such as aviation, ICT, research and development and innovation. (Source: Gulf times)  Qatar Airways is suing the European planemaker in a UK court for USD 1bn in damages after grounding about two dozen of its A350s experiencing the flaws, which it says raise safety concerns something Airbus and European regulators deny. (Source: Reuters)  Qatar, whose digital sector is poised for rapid growth and expected to catalyse the economic diversification in the country, is offering lucrative opportunities for sportech companies, according to a top official of the QFC. (Source: Gulf times) 2
3. June 1 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0763 USD/QAR 3.6400 128.6800 EUR/QAR 3.9177 USD/JPY GBP/USD 1.2630 JPY/QAR 0.0283 USD/CHF 0.9592 GBP/QAR 4.5973 USD/CAD 1.2644 CHF/QAR 3.7948 AUD/USD 0.7173 CAD/QAR 2.8788 NZD/USD 0.6513 AUD/QAR 2.6110 USD/INR 77.0690 INR/QAR 0.0472 USD/TRY 16.3748 TRY/QAR 0.2223 USD/ZAR 15.6258 ZAR/QAR 0.2329 USD/BRL 4.7315 BRL/QAR 0.7693 FX Commentary The USD strengthened across the board on Tuesday as Treasury yields climbed and worries over a further acceleration in global inflation depressed investors' risk appetite. The US Dollar index was up 0.5% at 101.80. The EUR/USD remained weak 0.4% at 1.0733 as data on Tuesday showed euro zone inflation hit a record high in May, adding pressure on the ECB as it fends off a recession and looks to curb high prices with gradual interest rate increases in coming months. The GBP/USD traded down 0.4% to 1.2600. The USD/JPY traded up 0.9% at 128.68. The USD/CNY went up 0.2% at 6.6715. The USD/CAD traded 0.1% lower at 1.2644 ahead of Wednesday's Bank of Canada meeting. The AUD/USD went down 0.3% to 0.7173. The NZD/USD was down 0.6% at 0.6513. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.83 0.08 1.06 1.58 2.70 (0.65) (0.57) (0.55) (0.35) 0.36 LIBOR EURIBOR 1 Month 3 Month 1 Year Qatar vs US Treasuries Yields 6.0% QAIBOR 0.70 0.75 1.00 1.15 1.85 4.0% SAIBOR 1.58 1.58 2.07 3.11 3.33 EIBOR 0.87 0.94 1.15 1.67 2.61 2.0% BMIBOR 1.60 1.78 2.53 2.73 3.66 KIBOR 0.88 1.31 1.63 1.88 2.44 Source: Refinitiv Eikon 2.87% 2.0% 0.0% 2.74% 3.43% 2.84% 2.86% 3.06% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 2.91% 2.86% 2.85% 1.56% 1.24% 0.88% 2.82% 1.99% 0.23% 2 Yrs 2.57% 4.34% 3.15% 3 Yrs Qatar Source: Refinitiv Eikon, Investing.com US Swap Rates 4.0% 2.96% 2.73% 5 Yrs Current 7 Yrs 10 Yrs Last Year Source: Refinitiv Eikon 30 Yrs Spread 6M Change 5 Years CDS Spread 6M Change US 16.8 0.9 Turkey 701.2 174.9 UK 11.0 0.3 Brazil 220.5 (24.7) Germany 11.0 1.9 Egypt 722.2 227.8 France 21.5 1.5 Abu Dhabi 59.1 14.5 Italy 122.2 29.6 Bahrain 313.2 37.1 Greece 162.3 46.3 Dubai 115.9 19.3 Russia 12,840.2 12,728.9 Qatar 60.1 17.4 Japan 20.1 0.5 Saudi Arabia 61.1 13.4 Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event Period Survey Prior 10:45 Italy S&P Global Mfg PMI May 53.6 54.5 10:50 France S&P Global Mfg PMI May 54.5 54.5 10:55 Germany S&P Global/BME Mfg PMI May 54.7 54.7 11:00 Euro Zone S&P Global Mfg Final PMI May 54.4 54.4 11:30 UK S&P GLBL/CIPS Mfg PMI FNL May 54.6 54.6 12:00 Euro Zone Unemployment Rate Apr 6.7% 6.8% 16:30 Canada S&P Global Mfg PMI SA May NA 56.2 16:45 US S&P Global Mfg PMI Final May NA 57.5 17:00 US ISM Manufacturing PMI May 54.5 55.4 17:00 Canada BoC Rate Decision 1 Jun 1.50% 1.00% 19:00 Russia Industrial Output Apr NA 3.0% 19:00 Russia Unemployment Rate Apr NA 4.1% 11:00 Italy Unemployment Rate Apr 8.2% 8.3% Source: Refinitiv Eikon 3
4. QSE MAIN FINANCIAL INDICATORS (as on 31st May 2022) Company QNB Qatar Islamic Bank Comm. Bank of Qatar Doha Bank Ahli Bank Intl. Islamic Bank Rayan Qatar First Bank (QFC) National Leasing Dlala Qatar Oman Inma Banks & Financial Services Zad Holding Company Qatar German Co. Med Salam International Medicare Cinema Qatar Fuel Widam Mannai Corp. Al Meera Baladna Consumer Goods & Services Ind. Manf. Co. National Cement Co. Industries Qatar The Investors Electricity & Water Aamal Gulf International Mesaieed Investment Holding QAMCO Industrials Qatar Insurance Doha Insurance General Insurance Alkhaleej Takaful Islamic Insurance QLM Insurance United Dev. Company Barwa Ezdan Holding Mazaya Real Estate Ooredoo Vodafone Qatar Telecoms Qatar Navigation Gulf warehousing Co Nakilat Transportation Market Dividend Yield (%) 2.6 2.5 2.3 2.8 3.4 3.5 3.6 0.0 0.0 0.0 1.2 0.8 2.7 3.4 0.0 0.0 3.6 1.6 4.4 0.0 3.5 4.9 2.9 3.9 3.9 6.0 5.5 0.0 4.8 4.4 0.0 4.1 0.0 3.9 4.8 4.1 5.9 0.0 2.0 4.7 3.8 3.7 3.8 5.2 0.0 0.0 3.8 4.1 3.7 4.0 3.5 2.2 3.2 3.4 2.7 P/B Ratio (x) 2.1 2.2 1.2 0.6 1.4 1.9 1.4 1.7 0.7 1.3 0.9 2.4 1.7 3.1 6.8 0.7 2.0 1.6 2.0 2.1 1.8 2.5 1.5 1.9 0.8 1.1 3.1 2.1 1.4 0.9 1.1 2.1 2.1 1.8 2.0 0.7 0.9 0.3 1.8 2.8 3.8 0.8 0.5 0.6 1.0 1.1 0.6 1.0 1.5 1.2 0.6 1.3 2.2 1.1 2.2 P/E Ratio (x) 15.9 15.8 13.4 11.5 15.3 17.6 21.4 7.9 NA 12.7 101.1 31.3 16.0 26.0 182.8 20.5 26.6 86.6 17.4 NA 15.5 19.2 25.9 20.2 9.7 14.1 11.9 66.7 12.4 23.0 25.6 17.7 66.7 12.0 12.9 14.1 12.3 16.3 25.0 14.4 18.9 14.8 14.2 11.4 506.7 NA 14.4 46.2 18.5 31.7 12.2 11.5 14.6 13.1 18.8 June 1, 2022 EPS (QR) 1.3 1.4 0.5 0.2 0.3 0.6 0.2 0.2 0.0 0.1 0.0 0.1 0.7 0.7 0.0 0.0 0.3 0.0 1.0 -0.4 0.6 1.0 0.1 0.3 0.3 0.3 1.3 0.0 1.3 0.0 0.0 0.1 0.0 0.1 0.4 0.2 0.1 0.1 0.2 0.6 0.3 0.2 0.1 0.3 0.0 -0.2 0.0 0.0 0.1 0.2 0.6 0.4 0.2 0.3 0.3 BV/Share (QR) 10.7 10.5 5.9 4.6 2.9 5.7 3.2 0.7 1.4 1.7 0.9 2.6 4.9 5.6 0.3 1.4 3.7 2.2 9.1 1.5 4.8 7.7 1.2 3.5 3.6 4.7 6.5 1.0 10.7 1.2 1.8 1.4 1.0 1.1 2.6 3.4 2.4 5.9 2.1 2.8 1.8 3.0 3.1 5.4 1.2 0.8 1.9 6.6 1.1 3.5 13.0 3.5 1.6 3.5 2.7 Stock Price (QR) 21.6 23.2 7.1 2.7 4.2 10.6 4.7 1.5 0.9 1.7 0.8 6.2 18.1 2.0 1.0 7.0 3.7 17.2 3.0 8.7 18.3 1.8 3.1 5.0 18.3 2.2 16.8 1.1 2.0 2.7 2.2 2.0 2.4 2.0 2.0 3.8 8.5 5.8 1.4 3.4 1.3 0.9 7.4 1.6 8.5 4.5 3.7 Company QNB ‫الم ف‬ ‫التجاري‬ ‫بنك الدوحة‬ ‫اﻻه‬ ‫الدو‬ ‫ال ان‬ QFC ‫اﻷول‬ ‫اﻻجارة‬ ‫دﻻلة‬ ‫قطروعمان‬ ‫إنماء‬ ‫البنوك والخدمات المال ة‬ ‫زاد‬ ‫الطب ة‬ ‫السﻼم‬ ‫لدنا‬ ‫الرعا ة‬ ‫الس نما‬ ‫قطر للوقود‬ ‫ودام‬ ‫مجمع المنا‬ ‫الم ة‬ ‫الخدمات والسلع اﻻستهﻼ ة‬ ‫قامكو‬ ‫التح ل ة‬ ‫اﻻسمنت‬ ‫صناعات قطر‬ ‫المس ثم ن‬ ‫كه اء وماء‬ ‫أعمال‬ ‫الخليج الدول ة‬ ‫مس ع د‬ ‫اس ثمار القا ضة‬ ‫الصناعات‬ ‫قطر‬ ‫الدوحة‬ ‫كيو إل إم‬ ‫العامة‬ ‫الخليج الت اف‬ ‫اﻻسﻼم ة‬ ‫التأم‬ ‫المتحدة للتنم ة‬ ‫بروة‬ ‫إزدان القا ضة‬ ‫مزا ا‬ ‫العقارات‬ Ooredoo ‫فودافون قطر‬ ‫اﻻتصاﻻت‬ ‫المﻼحة‬ ‫مخازن‬ ‫ناقﻼت‬ ‫النقل‬ Source: Refinitiv Eikon; Note: The above-mentioned indicators were calculated according to the latest reliable financial data. DISCLAIMER It is understood that any opinions expressed by Commercial Bank or its affiliates as to the commentary, market information, and future direction of prices of specific securities reflects the views of the individual analyst who issued them, and not necessarily represent the views of Commercial Bank or its affiliates in any way. In no event shall CBQ or its affiliates have any liability for any direct or indirect losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material or for any delays, inaccuracies, errors in, or omissions of the said information. 4