GCC Daily Market Update - 26 April

Transcription

1. DAILY MARKET UPDATE April 26 , 2018 GLOBAL MARKETS MARKET COMMENTARY Change Performance Value (%) MTD (%) YTD (%) Closing Level Indices Global S&P 500 Dow Jones Ind. Average Nasdaq 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) S&P GCC Dow Jones Islamic Commodity Brent (USD/bbl) WTI (USD/bbl) Natural Gas (USD/mmBTU) Gold Spot (USD/t oz.) Copper (USD/lb) 2,639.4 4.8 24,083.8 59.7 6,513.9 4.9 7,379.3 (46.1) 12,422.3 (128.5) 5,413.3 (30.9) 107,401.4 (2,657.2) 22,215.3 (62.8) 30,328.2 (308.1) 3,118.0 (11.0) 34,501.3 (115.4) 0.2 0.3 0.1 (0.6) (1.0) (0.6) (2.4) (0.3) (1.0) (0.4) (0.3) (0.1) (0.1) (1.0) 4.6 2.7 4.8 (6.6) 3.5 0.8 (1.6) 4.6 (1.3) (2.6) 1.8 (4.0) (3.8) 1.9 (6.9) (2.4) 1.4 (5.7) 1.3 9,113.0 8,233.1 4,671.1 3,026.3 4,810.2 4,740.7 1,269.2 1,678.6 3,588.8 21.7 (82.4) (18.1) (8.0) 21.0 (21.3) (13.2) (0.5) (11.8) 0.2 (1.0) (0.4) (0.3) 0.4 (0.5) (1.0) (0.0) (0.3) 6.3 4.6 1.9 (2.6) (3.1) (0.7) (3.7) 1.6 (0.7) 6.9 13.9 6.2 (10.2) NA (7.0) (4.7) 5.4 (1.3) 74.0 68.1 2.8 1,321.2 313.5 0.1 0.4 0.0 (10.2) (0.8) 0.2 0.5 0.2 (0.8) (0.2) 5.9 5.3 2.0 (0.1) 3.2 11.3 13.2 (5.6) 0.9 (5.4) Global The US equity markets ended higher yesterday, as investors focused on the latest batch of earnings data. The continuous advance in US bond yields, limited the gains in the US markets. The S&P 500 index inched 0.2% higher supported by gains in the Energy, Health Care, Consumer Discretionary and Industrials sectors. European indices inched lower as companies borrowing funds from US market were impacted by rising US bond yields. The Stoxx Europe 600 index continued its downward trend to settle 0.8% lower, weighed by Basic Resources stocks which fell 1.8% while Industrials inched 1.7% lower. In Asia, the Chinese benchmark fell 0.4%, led by decline in Banking and Coal producing stocks. Weakness in Construction stocks weighed on the Japanese benchmark. GCC Most GCC indices ended lower yesterday. The Saudi Arabian index continued its downward trend to inch 1.0% lower as investors dumped blue chip stocks. However, L’azurde Company for Jewelry rose 1.9%, after the company clinched a deal to acquire peer firm Izdiad Commercial Company of Arabia. In Dubai, Drake & Scull International plunged 9.4%, amid reports that the shareholders proposed to either increase its capital or issue convertible bonds. The Abu Dhabi index inched 0.4% lower, weighed by losses in index heavy-weight Etisalat, which fell by 0.9% after the company reported a flattish Q1-18 earnings report. Qatar The QE index inched 0.2% higher, supported by strong buying by foreign institutional buyers. Trade turnover and volumes rose, with Industrials and Banking sectors together accounting for about 57.0% of the total volume. Barwa Real Estate advanced 1.6%, after seeking to increase its foreign ownership limit. Out of the 45 listed stocks, 42 exchanged hands of which, 21 advanced, 18 declined and 3 remained unchanged. Source: Bloomberg QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All share 13.6 1.3 4.3 48.5 DSM 20 13.3 1.4 4.8 29.9 Saudi Arabia (TASI) 18.2 1.8 3.2 1,180.2 UAE (ADX) 12.2 1.3 5.1 22.4 UAE (DFM) 10.4 1.1 6.0 55.3 GCC Fundamentals Dividend Value Traded Yield (%) (USD mn) Kuwait (KSE) 14.5 1.2 3.9 29.7 Oman (MSM) 11.8 1.0 5.1 2.7 Bahrain (BAX) 8.6 0.8 6.4 1.2 1D Change Performance Value (%) YTD (%) YoY (%) Vol. P/E (‘000) TTM Source: Bloomberg Qatar Trading Activity Top Gainers Qatar Navigation Al Khaleej Takaful Grp Qatar General Ins. Dlala Holding Commercial Bank Top Losers Gulf Int’l Services National Leasing Islamic Holding Group Industries Qatar Medicare Group Close Price 57.0 12.0 47.5 11.1 36.2 4.0 0.5 1.5 0.3 1.0 7.5 4.3 3.3 3.1 2.8 1.9 (9.4) (3.1) (24.3) 25.2 (19.5) (37.2) 21.5 (54.3) 21.4 123.3 81.7 1.6 93.9 59.5 13.8 21.0 13.5 33.9 21.6 18.7 9.5 27.0 108.1 66.3 (1.4) (0.4) (0.6) (2.4) (1.0) (6.8) (4.3) (2.3) (2.2) (1.5) 5.4 (11.8) (28.0) 11.4 (5.1) (27.6) (45.5) (57.0) 0.6 (32.9) 467.3 69.6 1.8 83.2 2.5 43.8 125.3 NA 19.7 22.5 Source: Bloomberg; Note: Prices are in local currency. Qatar DSM Index 9,500 20.0 9,113.0 9,000 10.0 8,500 8,000 28/Jan 0.0 11/Feb 25/Feb 11/Mar Index Volume (mn) 25/Mar 8/Apr 22/Apr Index Value Source: Bloomberg QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation Closing Level 3,114.3 5,903.2 3,052.7 3,075.6 1,953.0 1,125.7 1,779.9 1D Change (%) 0.7 (0.3) (1.2) 0.9 0.4 (1.1) 3.5 Buy (%) 46.1 23.0 69.1 10.2 20.7 30.9 Sell (%) 49.7 21.3 71.0 12.4 16.6 29.0 Source: Qatar Exchange Qatar Trading Summary Qatari Individuals Qatari Institutions Qatari – Total Foreign Individuals Foreign Institutions Foreign – Total Source: Qatar Stock Exchange, Bloomberg 1
2. DAILY MARKET UPDATE April 26 , 2018 GLOBAL NEWS   Moody’s has maintained its top-notch ‘Aaa’ credit rating for the US, citing that the strength in the economy would help in counterbalancing the nation’s lower fiscal strength. (Source: Reuters) The German government has lowered its domestic growth forecast for 2018 growth to 2.3% from previous 2.4% expressing concerns about international trade tensions, while reiterating that economy remains strong and the upturn is continuing. (Source: Reuters)  China is expected to further reduce taxes to support small firms and high-tech companies. The planned seven measures is expected to result in tax cuts of more than CNY 60.0bn (USD 9.5bn). (Source: Reuters)  China is welcoming foreign enterprises to invest in its top state-backed semiconductor fund to push its domestic ambitions in the chip market in order to reduce its heavy reliance on imports, according to its industry ministry. (Source: Reuters)  Fitch ratings services has maintained its ‘A’ rating for Japan while maintaining a ‘stable’ outlook considering the high domestic savings rate and bias of home investors which contributed to economy's external flexibility. (Source: FxStreet)  Turkey’s central bank increased the rate it uses to set bank funding costs by 75 bps to 13.5% with the aim of supporting the depreciating Turkish Lira, however it kept the short-term interest rates unchanged at 8.0%. (Source: AA)  Saudi Arabia is aiming to create 1.2mn jobs by 2022 to reduce the unemployment rate to 9.0% from current 12.8% by focusing on the retail sector according to Ministry of labor. (Source: Reuters)  Saudi Arabia is planning to implement the privatization program to generate between USD 9.0bn and USD 11.0bn in revenue by 2020 while creating around 12,000 jobs. The complete plan includes over 100 initiatives across more than 10 sectors and with a total private investment target of USD 16.6bn by 2020. (Source: Arabian Business)  Saudi Arabia is restructuring debt owed by construction company owned by family of Lebanese Prime Minister Saudi Oger as its not in operations and Saudi banks who owe SAR 13.0bn (USD 3.5bn) in debt have come under pressure from the regulator in recent quarters. (Source: Gulf news)  Saudi Aramco and French energy company, Total are considering jointly acquire Tas’helat Marketing Co. in order to gain access to networks of retail fuel stations in Saudi Arabia. (Source: Arabian Business)  Bahrain Marina Development Company has appointed Hong Kongbased Shangri-La Hotels and Resorts as the operator of Bahrain Marina hotel which is scheduled to open by 2022. (Source: Arabian Business)  Bahrain’ Prime minister has announce that the country has prepared a conducive atmosphere complying with required legal and technical infrastructure to support investment in the real estate and construction sector. (Source: Trade Arabia)  Kuwait based Jazeera Airways reported a lower net loss of KWD 0.3mn in Q1-18 led by a 43.1% increase in total passenger traffic to 403,863. The company’s operating revenue grew by 42.7% YoY to KWD 14.3mn in the same period. (Source: Arabian Business)  Kuwait Energy PLC started producing natural gas from Siba, the first gas field to be brought on stream in the south of Iraq at an initial rate of 25 mcf/d, which should rise gradually to 100 mcf/d by the end of 2018. (Source: Reuters) GCC NEWS  Dubai’s Roads and Transport Authority entered into an agreement with British bus manufacturer Optare Company for procuring 316 multi-size buses valued at AED 465.0mn (USD 126.5mn). (Source: Trade Arabia)  Dubai based property developer Azizi Developments has announced that its AED 12.0bn (USD 3.3bn) flagship project Azizi Riviera near Dubai Water Canal is progressing as expected and is expected to completed in Q3-19. (Source: Trade Arabia)   Dubai based property developer Azizi Developments has awarded two contracts worth AED 220.0mn (USD 120.0mn), each for the development of two buildings in Dubai Healthcare City to Dubai based Zahrat Al Safa Contracting. (Source: Arabian Business) Qatar budget spending in infrastructure is rising up to 45.8% of the total planned budget in 2018 to QAR 29.0bn most of which would be spent on facilities aimed at supporting the activities for the FIFA World Cup 2022. (Source: Gulf times)   Dubai based luxury hotel Atlantis, The Palm has announced record occupancy rates averaging 96.0% in Q1-18 as compared to 92.6% in Q1-17. (Source: Arabian Business) Qatar's hospitality sector has been ranked first in the Middle East region led by improved guest experience according to the Guest Experience in the Middle East Report, released by hospitality and travel data institution Olery. (Source: Gulf times)  Dubai based midscale hotel brand Rove Hotels has entered into management agreement with Ras Al Khaimah based developer Al hamra to develop a 250-room hotel which will opened by 2020. (Source:  Qatar Airways CEO has announced that the airlines has made substantial loss in FY-17 due to the blockade imposed by the other GCC countries. (Source: Reuters) Arabian Business)  Qatargas has supplied its first liquefied natural gas cargo to Bangladesh under its long-term sale and purchase agreement with the Bangladesh Oil, Gas and Mineral Corporation. (Source: Gulf times)  Ooredoo’s net profit declined by 17.0% YoY to QAR 486.0mn as the positive performance in Iraq and Myanmar were offset by challenging conditions in Indonesia and Algeria. (Source: Gulf times)  Regency Group Holding and United Developers Company are investing more than QAR 7.5bn in four new real-estate projects with an aim to expand their portfolio. (Source: Gulf times)  United Development Company has successfully sold properties worth QAR 70.0mn during its participation in four day event Cityscape Qatar 2018. (Source: Gulf times)  Qatar Industrial Manufacturing Company’ net profit declined by 15.9% YoY to QAR 50.8mn in Q1-18 led by non-recurring expenses and lower profits of associates. (Source: Peninsula Qatar)  Abu Dhabi based Mubadala Investment Partners has entered into an agreement with Mubadala Infrastructure Partners to sell their 50.0% combined stake in Abu Dhabi Terminals to Abu Dhabi Ports. (Source: Trade Arabia)  Total number of hotel guests in Abu Dhabi increased 10.1% YoY to 4.9mn in 2017 while the total hotel proceeds reached AED 5.6bn (USD 1.5 bn) during the year according to Abu Dhabi Statistics Centre. (Source: QATAR NEWS Trade Arabia)   Sharjah International Airport witnessed a 5.1% YoY increase in total passenger traffic to 2.88mn in Q1-18 which took the average monthly traffic to 960,000. (Source: Arabian Business) Ras Al Khaimah based subsidiary of Finns slim floor structures applications supplier Peikko Group has been awarded a major contract to supply Deltabeam composite beams for the Sun Island residential project in Sharjah until 2019. (Source: Trade Arabia) 2
3. DAILY MARKET UPDATE April 26 , 2018 FX RATES Currencies Value Currencies Value EUR/USD 1.2191 USD/QAR 3.6415 109.4300 EUR/QAR 4.4394 USD/JPY GBP/USD 1.3962 JPY/QAR 0.0333 USD/CHF 0.9833 GBP/QAR 5.0843 USD/CAD 1.2844 CHF/QAR 3.7033 AUD/USD 0.7565 CAD/QAR 2.8352 NZD/USD 0.7069 AUD/QAR 2.7548 USD/INR 66.3962 INR/QAR 0.0548 USD/TRY 4.0816 TRY/QAR 0.8922 USD/ZAR 12.4399 ZAR/QAR 0.2927 USD/BRL 3.4848 BRL/QAR 1.0450 FX Commentary The USD rose to a four month high against a basket of major currencies yesterday, consistently supported by rising US Treasury bond yields, which continued its upward trajectory after breaking the psychological level of 3.0%. The dollar index settled at 91.241. The CAD weakened against the greenback to its lowest in more than three weeks despite Improved prospects for a deal to revamp the NAFTA. The EUR weakened against USD, as investors remained cautious about the outcome of the European Central Bank’s policy meeting scheduled later today. The GBP fell against the USD, amid rising expectations that the Bank of England might not hike its interest rates in the upcoming policy meeting. The TRY strengthened against the USD, after the Turkish central bank lifted its interest rates to tackle the stubbornly high inflation. Source: Bloomberg INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 1.70 1.74 1.90 2.36 2.77 (0.44) (0.38) (0.37) (0.33) (0.19) 2.29 2.35 2.46 2.65 3.05 4.0% SAIBOR NA 1.92 2.07 2.36 2.76 2.0% EIBOR 1.22 1.66 1.99 2.37 3.13 BMIBOR 1.63 1.90 2.43 2.78 3.28 NA NA 1.75 1.94 2.44 LIBOR EURIBOR QAIBOR KIBOR 1 Month 3 Month 1 Year Qatar vs US Treasuries Yields 6.0% 3.33% 2.49% 3.99% 4.24% 4.45% 2.84% 2.98% 3.03% 3.21% 7 Yrs 10 Yrs US 30 Yrs 5.05% 0.0% 2 Yrs 5 Yrs Qatar Source: Bloomberg Source: Bloomberg US Swap Rates 5 Years CDS 4.0% US 28.5 0.2 Turkey 197.2 UK 18.3 (8.5) Brazil 173.8 (5.1) Germany 11.9 (1.9) Egypt 277.3 (79.9) France 18.5 (4.3) Abu Dhabi 64.0 (2.1) Italy 87.6 (45.3) Bahrain 293.9 48.8 Greece 333.4 (186.6) Dubai 113.8 (13.6) Russia 134.3 4.4 Qatar 88.4 (15.1) Japan 26.3 (8.3) Saudi Arabia 88.5 4.4 2.76% 3.06% 3.01% 2.96% 2.0% 1.56% 2.25% 2.09% 1.93% 3.09% 2.50% 0.0% 2 Yrs 5 Yrs 7 Yrs Current 10 Yrs Last Year 30 Yrs Spreads 6M Change 5 Years CDS Spread 6M Change 7.0 Source: Bloomberg Source: Bloomberg ECONOMIC CALENDAR Time Country Event 14:45 Eurozone ECB Main Refinancing Rate Period Survey Prior Apr-26th 0.00% 0.00% 15:30 US 16:00 Russia Initial Jobless Claims Apr-21st 230k 232k Gold and Forex Reserve Apr-20th -- 462.4b 02:30 Japan Jobless Rate 02:50 Japan Industrial Production MoM Mar 2.50% 2.50% Mar P 0.50% 2.00% Source: Bloomberg GCC COMPANY RESULTS Company Name YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) 3,194.2 45.2 18.3 230.2 (23.7) 102.9 101.4 (8.2) 5.2 50.8 (15.9) 19.2 National Shipping Co NA NA NA 123.1 (67.5) (40.5) Commercial Bank Of Dubai NA NA NA 279.7 74.7 (17.1) Saudi Research And Marketing NA NA NA 11.7 (35.2) NA Saudi International Petrochem NA NA NA 151.4 65.2 (7.9) National Bank Of Fujairah NA NA NA 145.4 15.3 106.0 United Arab Bank NA NA NA 35.9 29.2 NA Zamil Industrial Investment NA NA NA 15.6 (62.7) 220.9 Qatar Insurance Co Revenues (mn) Qatar Industrial Manu Source: Bloomberg; Note: All figures are in local currency 3
4. DAILY MARKET UPDATE April 26 , 2018 QSE MAIN FINANCIAL INDICATORS (As on 19th April 2018) Company Ahli Bank Comm. Bank of Qatar Dlala Doha Bank Islamic Holding Al khalij Commercial Bank Rayan National Leasing Qatar First Bank (QFC) Qatar Islamic Bank Intl. Islamic Bank QNB Qatar Oman Banks & Financial Services Mannai Corp. Medicare Al Meera Cinema Qatar Fuel Qatar German Co. Med Salam International Widam Zad Holding Company Consumer Goods & Services Aamal Gulf International Investment Holding Industries Qatar Mesaieed Qatar Electricity & Water The Investors Ind. Manf. Co. National Cement Co. Industrials Alkhaleej Takaful Doha Insurance Qatar Insurance General Insurance Islamic Insurance Insurance Barwa Ezdan Holding Mazaya Qatar United Dev. Company Real Estate Ooredoo Vodafone Qatar Telecoms Gulf warehousing Co Nakilat Qatar Navigation Transportation Market Dividend Yield (%) 3.1 2.8 0.0 10.8 3.6 6.7 5.5 4.9 0.0 3.9 7.4 3.9 6.9 4.4 8.3 5.9 6.2 4.4 6.5 0.0 0.0 6.6 8.9 6.5 5.3 0.0 4.4 4.4 4.2 3.8 2.3 7.5 8.2 4.3 0.0 6.1 3.5 4.7 6.9 3.9 6.9 4.1 0.0 8.8 5.3 4.2 0.0 3.3 4.2 6.8 6.7 6.4 4.5 P/B Ratio (x) 1.2 0.9 0.2 0.8 1.2 0.6 2.1 0.5 0.8 1.7 1.2 2.1 0.8 1.6 0.8 1.9 2.0 1.1 1.7 1.2 0.4 3.4 0.6 1.4 0.9 1.0 0.5 2.0 1.4 2.5 1.6 1.2 1.1 1.7 0.6 0.6 1.5 0.7 2.2 1.1 0.8 1.1 0.6 4.7 1.0 1.2 1.8 1.3 1.5 0.9 0.4 0.7 1.4 P/E Ratio (x) 10.2 24.1 19.0 7.8 (M) (‫)س‬ 7.3 13.5 162.8 (M) (‫)س‬ 10.7 9.8 10.8 24.3 11.4 4.4 26.9 14.1 18.2 12.8 (M) (‫)س‬ (M) (‫)س‬ 10.7 4.8 11.5 14.2 45.2 11.5 20.5 19.1 13.8 16.4 10.2 11.0 17.8 20.0 14.6 28.5 13.3 12.3 21.0 8.2 18.9 29.6 8.3 12.9 13.5 (M) (‫)س‬ 19.3 11.1 9.6 12.7 10.8 13.3 EPS (QR) 3.0 1.5 0.6 3.6 (M) (‫)س‬ 1.5 2.7 0.1 (M) (‫)س‬ 10.2 5.5 14.2 0.3 5.8 11.1 2.5 9.7 1.2 9.7 (M) (‫)س‬ (M) (‫)س‬ 6.0 15.2 5.4 0.8 0.5 0.5 5.5 0.9 14.7 2.0 3.9 5.0 2.4 0.6 0.8 1.3 3.5 4.1 1.7 4.4 0.6 0.2 1.7 1.2 6.1 (M) (‫)س‬ 1.5 3.7 1.5 4.1 2.1 3.0 BV/Share (QR) 25.2 42.1 48.6 34.9 24.0 17.5 17.6 20.1 7.7 64.7 45.0 73.4 8.8 40.1 64.5 35.6 69.0 21.1 71.1 4.7 12.9 19.0 116.2 44.7 12.7 19.8 10.5 56.6 11.6 81.7 21.4 34.4 48.0 25.0 19.3 20.8 25.1 70.8 23.4 32.4 48.6 11.4 12.8 3.0 14.7 72.2 5.3 23.7 27.9 15.7 118.3 32.8 27.6 Stock Price (QR) 31.2 35.9 11.2 27.8 28.0 11.2 36.5 10.2 6.1 108.5 54.0 153.5 7.2 48.5 68.2 137.0 22.6 123.7 5.8 5.6 64.1 73.0 11.3 20.7 5.6 112.5 16.5 202.0 33.3 39.9 54.8 11.5 12.3 37.8 46.8 50.9 36.3 12.1 7.2 14.2 83.0 9.3 40.9 14.7 52.0 - Company ‫االهلي‬ ‫التجاري‬ ‫داللة‬ ‫بنك الدوحة‬ ‫اإلسالمية القابضة‬ ‫الخليجي‬ ‫الريان‬ ‫االجارة‬ ‫ األو ل‬QFC ‫المصرف‬ ‫الدولي‬ ‫الوطني قطر بنك‬ ‫قطروعمان‬ ‫البنوك والخدمات المالية‬ ‫مجمع المناعي‬ ‫الرعاية‬ ‫الميرة‬ ‫السينما‬ ‫قطر للوقود‬ ‫الطبية‬ ‫السالم‬ ‫ودام‬ ‫زاد‬ ‫البضائع والخدمات االستهالكية‬ ‫أعمال‬ ‫الخليج الدولية‬ ‫ا س ت ثمار ال قاب ضة‬ ‫صناعات قطر‬ ‫مسيعيد‬ ‫كهرباء وماء‬ ‫المستثمرين‬ ‫التحويلية‬ ‫االسمنت‬ ‫الصناعات‬ ‫الخليج‬ ‫الدوحة‬ ‫قطر‬ ‫العامة‬ ‫االسالمية‬ ‫التأمين‬ ‫بروة‬ ‫إزدان القابضة‬ ‫مزايا قطر‬ ‫المتحدة للتنمية‬ ‫العقارات‬ ‫كيوتل‬ ‫فودافون قطر‬ ‫االتصاالت‬ ‫مخازن‬ ‫ناقالت‬ ‫المالحة‬ ‫النقل‬ Source: Qatar Exchange; 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 materials or for any delays, inaccuracies, errors in, or omissions of the said information. 4