GCC Morning Brief - 10 July

Transcription

1. U Capital Morning Brief GCC Market Indices 10 July 2017 Current Close Previous Close Change D /D MTD YTD Index Index Point % % % 951.22 1,165.89 1,006.36 63.24 5,119.52 7,203.99 6,680.13 8,922.72 1,310.86 2.46 -22.83 -11.83 -0.2 Muscat Securities Market Saudi Stock Exchange Kuwait Stock Exchange Qatar Exchange Bahrain Stock Exchange 953.68 1,143.06 994.53 63.04 5,134.88 7,166.77 6,723.57 8,904.16 1,310.04 15.36 (37.22) 43.44 (18.56) (0.82) 0.3% -2.0% -1.2% -0.3% 0.3% -0.5% 0.7% -0.2% 1.2% -2.4% -1.8% -2.1% 0.3% -3.5% -0.6% -1.4% -9.4% -3.0% -2.4% -3.3% -11.2% -0.6% 17.0% -14.7% -0.1% -0.2% 7.3% Dubai Financial Market 3,402.66 3,401.15 1.51 0.0% 0.3% -3.6% Abu Dhabi Sec. Exchange 4,410.50 4,396.35 14.15 0.3% -0.3% -3.0% Price Change D/D USD USD % Brent Crude (per bbl) Updated 47.09 0.38 0.81 WTI Crude (per bbl) Updated 44.59 0.37 0.84 Oman Crude Oil 45.45 (1.50) (3.19) 1,211.12 (2.11) (0.17) U-Capital Oman 20 Index U-Capital GCC 50 Index U-Capital MENA 200 Index Bloomberg GCC200 Index Source: Bloomberg World Markets* Country Value Change Europe FTSE 100 DAX CAC 40 D/D Commodity Prices* % United Kingdom Germany France 7,350.9 12,388.7 5,145.2 13.64 7.43 (7.24) 0.19 0.06 (0.14) USA USA USA 21,414.3 2,425.2 6,153.1 94.30 15.43 63.62 0.44 0.64 1.04 Gold100 OZ (per oz) Silver (per oz) 15.50 (0.11) (0.73) NIKKEI 225 Japan 20,065.1 135.96 0.68 Platinum (per oz) 906.36 (3.20) (0.35) HANG SENG Hongkong 25,581.3 247.36 0.98 Copper, MT 5,828.00 (23.00) (0.39) Aluminium, MT 1,930.00 (14.00) (0.72) Lead, MT 2,296.00 12.00 0.53 Zinc, MT 2,793.00 8.00 0.29 Nickel, MT 8,920.00 (155.00) (1.71) United States DJIA S&P 500 NASDAQ (Last Closing) Asia Pacific Selected Middle East Tunis Se Index Tunis 6,141.3 5.01 0.08 EGX 30 Index Egypt 13,342.1 (27.79) (0.21) Blom Stock Index Lebanon 1,151.4 3.46 0.30 Source: Bloomberg, U Capital- at 8:30AM M uscat time Source: Bloomberg, U Capital- at 8:30AM M uscat time Cross Rate for Major Currencies* Currency Code USD/1 Unit Euro EUR 1.140 0.877 Bri ti s h Pound GBP 1.289 0.776 Ja pa nes e Yen JPY 0.009 114.160 Chi nes e Renmi nbi CNH 0.147 6.801 Indi a n Rupee INR 0.015 64.526 Rus s i a n Rubl e RUB 0.017 60.357 Ca na di a n Dol l a r CAD 0.776 1.288 Aus tra l i a n Dol l a r AUD 0.761 1.314 Source : Bloomberg Note: all prices/ indices are updated till 8:30 AM M uscat time.* markets are closed on Saturday and Sunday P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net Units/1 USD
2. OMAN ECONOMIC & CORPORATE NEWS Oman’s GDP rises 275 times from 1970, says World Bank Oman’s gross domestic product (GDP) rose from US$256.3mn in 1970 to US$66.29bn in 2016, rising nearly 275 times during this period, according to a statistical bulletin published by the World Bank on its website recently. Source: Muscat Daily Oman power subsidy to fall to RO 456m in 2017 Reversing a longstanding trend in rising government grants to the sector, electricity subsidy is projected to ease to RO 456.3 million in 2017 versus an amount of RO 510.5 million disbursed last year, entailing a 10.6 per cent decline, according to details published by the sector regulator. Source: Oman Observer Oman’s Islamic banking assets surge 34% to RO3.4bn in April Total assets of Islamic banks and windows in Oman reached to RO3.4bn at the end of April 2017 compared with RO2.54bn a year ago, recording a robust growth of 34 per cent. Islamic banking industry now accounts for 11 per cent of total banking system assets in the sultanate. Source: Muscat Daily Coal power mooted for Duqm cement plants The National Programme for Enhancing Economic Diversification (Tanfeedh) is advocating the use of coal-fired captive power capacity to support the development of new cement plants planned in the Special Economic Zone (SEZ) at Duqm. Source: Oman Observer Ibri power project aims to deliver 940MW in April 2018 A Mitsui & Co Ltd-led consortium has achieved marked progress in building two major natural gas-fired power projects—Sohar 3 and Ibri— in Oman, which will have a combined capacity of 3,219 megawatt (MW). Source: Times of Oman Ithraa sees hyper local as way forward for tourism in Oman Involving local communities and promoting local tourism manpower is the way to drive tourism in Oman, according to a report by Ithraa. The report presents an analysis post the panel discussion panel during Ithraa’s Inside Stories, all of which point out that there are a large number of travelers, who are looking for offbeat locations to get the local, unique real-life experience, a market worth around US$140 billion globally. Source: Times of Oman For MSM’s Q2’17 Results, please see the last page. MIDDLE EAST ECONOMIC & CORPORATE NEWS Jabal Omar hires Foster + Partners to design Four Seasons hotel Jabal Omar Development Co. signed a memorandum of cooperation on Sunday with London-based architectural firm Foster + Partners to design the Jabal Omar Four Seasons Hotel and a residential tower near the Grand Mosque in Makkah. Source: Argaam SABIC begins commercial ops at KEMYA JV Saudi Basic Industries Corp (SABIC) on Sunday started commercial operations at its synthetic rubber ethylene-propylene-diene-monomer unit, as well as the thermoplastic specialty polymers and halobutyl rubber units at full capacity at Al-Jubail Petrochemical Company (KEMYA) joint venture plant. Source: Argaam UAE completes key packages of $1.4bn highway project Abu Dhabi General Services Company (Musanada) said it has achieved a major milestone with the completion of two packages of MafraqGhuwaifat Highway project that will be linking western region cities to the international borders with Saudi Arabia. Source: Trade Arabia ADX, DGCX partner on unified clearing house The Abu Dhabi Securities Exchange (ADX) has signed an agreement with Dubai Gold and Commodities Exchange (DGCX) and DMCC (Dubai Multi Commodities Centre) to create a collaboration on a unified clearing house in the UAE. Source: Trade Arabia P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net
3. Saudi Arabia should scrap cement export fees , says Najran CEO Najran Cement Co.’s chief executive Badr Jawhar urged the Saudi authorities to exempt cement from export tariffs altogether, adding that the Kingdom’s recent decision to cut the tariffs was “a step in the right direction”. Source: Argaam SAMA ready to implement Basel III standards without repercussions The implementation of new demands by the Basel III committee will impact Saudi banks, Al Iktisadia newspaper reported, citing SAMA’s deputy governor for supervision Ahmed Abdullah Al Alsheikh Source: Mubasher Saudi Arabia to issue sukuk this month, finance minister tells Al Arabiya Saudi Finance Minister Mohammed al-Jadaan revealed that the Ministry will issue a sukuk this month in line with the objectives of the fiscal balancing program. Source: Al Arabiya Dow Chemical to build $100m polymer facility in Saudi Arabia Dow Chemical Company has uncovered plans to establish a facility in Saudi Arabia at total investments exceeding $100 million, Construction Week Online reported. Source: Mubasher Saudi Arabia should scrap cement export fees, says Najran CEO Najran Cement Co.’s chief executive Badr Jawhar urged the Saudi authorities to exempt cement from export tariffs altogether, adding that the Kingdom’s recent decision to cut the tariffs was “a step in the right direction”. Source: Argaam Contraction in Saudi growth seen slowing pace fiscal reforms Slowing economic growth in Saudi Arabia is expected to challenge the pace of fiscal reforms as the real GDP of the country contracted in the first quarter of the year led by the oil sector. Source: Zawya Vodafone Egypt disowns Vodafone Qatar network rename Vodafone Egypt said that all decisions taken by Vodafone Qatar does not represent nor express the views of Vodafone Global in general or Vodafone Egypt in specific, as it only reflects those who a majority stake in the Qatari company. Source: Mubasher Dow Chemical to build $100m polymer facility in Saudi Arabia Dow Chemical Company has uncovered plans to establish a facility in Saudi Arabia at total investments exceeding $100 million, Construction Week Online reported. Source: Mubasher Average yields on Egypt's three- and nine-month T-bills jumps Average yields on Egypt's three- and nine-month treasury bills rose at an auction on Sunday, data from the central bank showed. The average yield on the 91-day bill rose to 22.523 percent from 20.951 percent at the last similar auction on July 3 and the yield on the 273day bill rose to 22.444 percent from 21.155 percent. Source: Zawya INTERNATIONAL ECONOMIC & CORPORATE NEWS Asian stocks follow Wall Street higher after U.S. jobs data beats forecasts Asian stocks rallied on Monday, lifted by Wall Street's strong performance on Friday, while the U.S. dollar extended gains made after much stronger than expected June employment data. Source: Reuters Goldman Sachs is 2017's worst selling fund manager with $27 billion in outflows: FT Investors have pulled an estimated $26.7 billion from Goldman Sachs Asset Management’s mutual funds so far in 2017, according to Morningstar data, the Financial Times reported Sunday, making Goldman the world's worst-selling fund manager globally. Source: Reuters France pledges payroll tax cuts in bid to lure bankers French Prime Minister Edouard Philippe used a rooftop presentation with a sweeping view over Paris to announce new tax initiatives benefiting bankers and traders as the race to win Brexit jobs heats up. Source: Mena FN P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net
4. COMMODITIES NEWS Oil recovers some losses but market still under pressure Oil prices recovered some losses on Monday after a 3 percent fall in the previous session , but markets remain under pressure from high drilling activity in the United States and ample supplies from producer club OPEC. Source: Reuters Oil pact monitors won't discuss further cuts at July meet: report A ministerial committee monitoring an OPEC-led pact on cutting oil production will not discuss the possibility of further cuts at its regular meeting on July 24, OPEC's secretary-general said in comments carried by Russia's Interfax news agency on Sunday. Source: Reuters P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net
5. Q2 ’17 Results Net Profit / (Loss) Sector Wise - (OMR 000) Financial Sector 2Q'16 1Q'17 2Q'17 QoQ YoY TAAGEER FINANCE Financial Leasing Sub Sector 1,100 1,100 910 910 1,154 1,154 26.8% 26.8% 4.9% 4.9% NATIONAL SECURITIES Investment & Brokerage Sub Sector 432 432 (175) (175) (182) (182) 4.0% 4.0% Total Financial Sector 1,532 735 972 32.2% -36.6% INDUSTRIAL SECTOR 2Q'16 1Q'17 2Q'17 QoQ YoY OMAN CHROMITE Mining Sub Sector (16) (16) 102 102 172 172 68.3% 68.3% PACKAGING CO LTD Paper, Glass & Packaging 244 244 341 341 243 243 -28.5% -28.5% -0.2% -0.2% Total Industrial Sector 228 443 415 -6.2% 82.3% SERVICES SECTOR 2Q'16 1Q'17 2Q'17 QoQ YoY OMAN OIL MARKETING COMPANY Oil & Gas Marketing Sub Sector 2,903 2,903 1,865 1,865 1,768 1,768 -5.2% -5.2% -39.1% -39.1% 121 121 454 454 808 808 77.9% 77.9% 567.1% 567.1% Total Service Sector 3,024 2,319 2,576 11.1% -14.8% Total Market 4,784 3,497 3,964 13.3% -17.2% OMAN NATIONAL ENGINEERING AN Energy Sub Sector Source: MSM Note: Profit for the companies whose second quarter ends in June P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net
6. Ubhar Capital SAOC (U Capital) Website: www.u-capital.net PO Box 1137 PC 111, Sultanate of Oman Tel: +968 2494 9000 Fax: +968 2494 9099 Email: research@u-capital.net Disclaimer: This report has been prepared by Ubhar Capital (U Capital) Research, and is provided for information purposes only. Under no circumstances is to be used or considered as an offer to sell or solicitation of any offer to buy. While all reasonable care has been taken to ensure that he information contained therein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such, and the company accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents. All opinions and estimates included in this document constitute U Capital’s Research judgment as of the date of production of this report, and are subject to change without notice. This report may not be reproduced, distributed or published by any recipient for any other purpose. P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net