MENA Market Report - 11 July

Transcription

1. MENA Morning Report Tuesday , July 11, 2017 Overview Regional Markets: MENA region closed the session on a positive note as six out of the eight indexes ended in green, while two were in red for the day. The trading activity was boosted by second quarter earnings, which is raising hopes and encouraging investors to buy into the regional equities, which have largely underper formed the global markets. Egypt was the best performing index as it was up by 1.1% for the day, which helped in recovering the losses recorded on the previous session to turn positive for the week. Saudi Arabia closed on a positive note as it was up by 1.0% for the day, which was boosted by buying interest in banking sector stocks. Although early but the second quarter earnings is raising hopes of improvement in net profits, which is likely to act as a catalyst of rebound in selected markets. UAE markets ended on a mixed note as Dubai was up by 0.4%, while Abu Dhabi was down by 0.3% for the day. However the performance in the past two sessions is positive as investors continue to buy into selective stocks, which have been dragged lower due to the overall regional sentiments. Qatar witnessed buying interest, which pushed the index higher by 1.0% for the day, recovering the losses recorded on the previous day. Kuwait closed up by 0.4% for the day, adding to the gains of 0.7% recorded on the previous day. Bahrain closed marginally lower by 0.1%, while Oman was up by 0.5% for the day. International Markets: US markets closed on a positive note as DJIA was flat, while Nasdaq and S&P were up by 0.4% and 0.1% respectively. European markets closed on a positive note as FTSE, DAX and CAC were all up by 0.3%, 0.5% and 0.4% respectively. At the time of writing this report, Asian markets have opened on a slightly positive note as Nikkei and Hang Seng are both up by 0.3% and 1.1% respectively, while Shanghai is down by 0.2%. Headlines (WW) US economic growth falters at mid-year, with prospects unclear (AE) UAE exempts VAT on residential real estate, passenger transport (WW) US mortgage rates jump higher (AE) Dubai economy records faster output growth in June (WW) US job growth accelerates in June (AE) Average Dubai rents slump by more than 10% in past year (WW) China's June factory price inflation subdued on modest raw materials recovery (AE) Growth in Dubai's private sector gathers steam during June (WW) China cancels charges on bank services to support real economy (SA) Contraction in Saudi growth seen slowing pace fiscal reforms (WW) Big UK firms curtail investment plans, consumer slowdown deepens (SA) Saudi said to delay subsidy cuts amid economic pain (WW) Post-election dip in UK business confidence (SA) Drop in oil prices weighs on Saudi stocks (WW) Japan's May machinery orders unexpectedly fall, gov't downgrades outlook (QA) Qatar’s economic fundamentals seen weakening as sanctions bite (WW) India surpasses China to become new global economic growth pole (QA) Qatar dedicated to investing in digital drive (CMD) Gold holds steady at near four-month lows (EG) Egypt sees rate hike as temporary (CMD) Oil falls as evidence points to rising global supply (EG) Egypt’s urban consumer price inflation rises (FX) Dollar stands tall after solid US jobs back Fed tightening plans (BH) Bahrain issues new rules to encourage fintech growth (FI) Investors brace for ECB to roil European bond markets (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,417.94 0.4% 0.5% 0.8% -3.2% ˄ ˅ ˅ Abu Dhabi (ADSMI) 4,397.96 -0.3% 0.0% -0.6% -3.3% ˅ ˅ ˄ Saudi (SASEIDX) 7,236.94 1.0% 0.5% -2.5% 0.4% ˄ ˄ ˄ Kuwait (KWSE) 6,748.54 0.4% 1.0% -0.2% 17.4% ˅ ˅ ˄ Egypt (EGX30) 13,483.04 1.1% 0.8% 0.7% 9.2% ˅ ˄ ˄ Qatar (DSM) 8,995.12 1.0% 0.8% -0.4% -13.8% ˅ ˅ ˅ Bahrain (BHSEIDX) 1,308.25 -0.1% -0.2% -0.1% 7.2% ˅ ˅ ˄ Oman (MSM30) 5,158.83 0.5% 0.8% 0.8% -10.8% ˅ ˅ ˅ MENA Market Statistics Volume (mln) 3M Avg. Volume (mln) 6M Avg. Volume (mln) Value (USD mln) 3M Avg. Value (USD mln) 6M Avg. Value (USD mln) Market Cap (USD mln) Dubai (DFMGI) 201 295 378 83 95 140 79,721 Abu Dhabi (ADSMI) 50 109 132 27 47 60 131,312 Saudi (SASEIDX) 211 178 185 867 825 899 452,728 Kuwait (KWSE) 88 115 315 45 47 96 75,578 Egypt (EGX30) 350 278 297 89 76 84 20,497 Qatar (DSM) 8 11 11 93 79 91 104,998 Bahrain (BHSEIDX) 2 4 4 1 2 2 20,223 Oman (MSM30) 7 14 17 5 6 9 14,155 Index * ST trend based on a 5x25 day SMA crossover; MT trend based on a 25x100 day SMA crossover; LT trend based on a 50x200 day SMA crossover Data & News Source: Thomson Reuters ** indicates markets were closed on Sunday. 1
2. MENA Morning Report Tuesday , July 11, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 PB 12.1 11.7 11.0 9.1 386.2 8.4 300 8 239.3 188.3 4 1.1 1.5 2.0 1.8 1.3 0.9 1.0 Qatar Bahrain Oman - - - 178.1 106.9 87.2 1.4 0 0 Dubai Abu Dhabi Saudi Kuwait Egypt Average Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain Oman Average Year to Date Perfomance DividendYield 8% 6% Current 489.3 13.6 10.9 12 Previous 600 27% 5.1% 6.1% 5.5% 4.7% 4.4% 4% 17.4% 18% 3.1% 7.2% 9.2% 9% 3.6% 0.4% 0% -9% -3.2% -3.3% 2% -18% 0.0% -10.8% -13.8% 0.0% 0% -27% Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain Oman Average Dubai Abu Dhabi Saudi Kuwait Egypt Data & Charts Source: Thomson Reuters; Table includes Bloomberg estimates and data for UAE, KSA, QA, KW and EG where available Qatar Bahrain Oman 2
3. MENA Morning Report Tuesday , July 11, 2017 Top Performers by Country (* indicates native currency; Latest data) Top Losers Close * DoD % Volume ('000) Value (AED ‘000) 1,967 ARABTEC HOLDING PJSC 3.47 -2.02% 20,035 70,236 0 5,900 NATIONAL CENTRAL COOLING CO PJSC 2.12 -1.89% 1,060 2,270 2.08% 1,767 4,199 EMIRATES NBD BANK PJSC 8.15 -1.84% 1,258 10,347 1.02 1.96% 18,173 18,358 DRAKE AND SCULL INTERNATIONAL 0.39 -1.03% 15,347 5,986 0.92 1.73% 57,314 52,507 SHUAA CAPITAL PSC 1.20 -0.83% 1,262 1,521 Top Gainers Close * DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) INTERNATIONAL FISH FARMING HOLD 1.52 4.61% 4,165 6,192 ABU DHABI SHIP BUILDING PJSC 2.61 -9.20% 0 1 MANAZEL REAL ESTATE PJSC 0.51 1.96% 895 452 RAS AL KHAIMAH CEMENT CO PSC 0.80 -3.75% 1 1 RAK PROPERTIES PJSC 0.64 1.56% 6,116 3,884 ABU DHABI NATIONAL FOR BUILDING 0.54 -3.70% 95 52 EMIRATES TELECOMMUNICATIONS 17.35 0.58% 761 13,169 ABU DHABI COMMERCIAL BANK PJSC 7.13 -2.38% 1,265 9,133 INSURANCE HOUSE PSC 0.83 0.00% 88 73 ABU DHABI NATIONAL ENERGY CO 0.52 -1.92% 707 371 Close * DoD % Volume ('000) Value (SAR ‘000) Top Losers Close * DoD % Volume ('000) Value (SAR ‘000) UNITED ELECTRONICS COMPANY JSC 33.45 10.31% 750 23,899 AL KATHIRI HOLDING CO 24.80 -10.08% 300 7,845 SAUDI RESEARCH AND MARKETING 40.65 9.96% 1,311 50,883 AL SAMAANI FACTORY METAL INDUST 71.00 -6.34% 9 661 TIHAMA ADVERTISING AND PUBLIC 32.75 8.85% 1,340 42,101 DEVELOPMENT WORKS FOOD CO 72.50 -6.21% 10 718 BANQUE SAUDI FRANSI SJSC 28.70 8.71% 761 20,958 AL-OMRAN INDUSTRIAL AND TRADING 20.02 -6.09% 67 1,385 SAUDI PRINTING AND PACKAGING CO 16.78 5.24% 5,317 86,998 ARAB SEA INFORMATION SYSTEMS CO 12.70 -5.20% 50 653 Top Gainers Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) NATIONAL CLEANING CO KSCP 41.00 19.02% 372 14 AJWAN GULF REAL ESTATE CO KSCP 92.00 -20.00% 36 4 CREDIT RATING AND COLLECTION CO 27.00 18.15% 0 0 KUWAIT NATIONAL CINEMA CO 1670.0 -19.16% 3 5 KUWAIT FINANCE AND INVESTMENT 35.20 13.64% 16 1 GULF FRANCHISING HOLDING CO KSCP 70.00 -14.29% 9 1 BURGAN FOR WELL DRILLING 80.00 11.25% 0 0 YIACO MEDICAL COMPANY KPSC 182.00 -11.54% 5 1 TAAMEER REAL ESTATE INVESTMENT 32.50 10.77% 2,468 76 OSOS HOLDING GROUP CO KSCP 133.00 -8.27% 40 6 Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) ALEXANDRIA NATIONAL COMPANY 4.12 9.95% 26 103 TRANS OCEANS TOURS SAE 0.06 -16.67% 16 1 ALEXANDRIA FLOUR MILLS AND BAKER 39.80 9.92% 5 187 INTERNATIONAL COMPANY 10.89 -7.53% 21 239 GENERAL COMPANY FOR PAPER 3.81 9.71% 256 931 CAIRO FOR OIL AND SOAP CO SAE 11.53 -6.59% 645 7,694 NASR CO FOR CIVIL WORKS SAE 16.39 9.40% 43 675 NATIONAL BANK OF KUWAIT EGYPT 41.60 -6.23% 1 41 SOUTH CAIRO AND GIZA MILLS 44.98 9.36% 11 462 INDUSTRIAL ENGINEERING CO 10.95 -4.47% 85 950 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) QATAR INSURANCE CO SAQ 66.10 3.03% 20 1,302 QATAR ISLAMIC INSURANCE CO QSC 64.90 -2.93% 3 211 QATAR NATIONAL CEMENT CO QSC 64.90 2.47% 31 1,972 GULF WAREHOUSING CO QSC 45.80 -1.53% 4 165 QATAR NATIONAL BANK SAQ 124.60 1.93% 1,436 177,292 EZDAN HOLDING GROUP QSC 12.22 -1.23% 254 3,126 BARWA REAL ESTATE CO QSC 31.90 1.72% 183 5,799 QATAR INDUSTRIAL MANUFACTURING 42.00 -1.07% 4 167 INDUSTRIES QATAR QSC 93.40 1.71% 95 8,772 OOREDOO QSC 91.70 -0.76% 83 7,619 Close * DoD % Volume ('000) Value (AED ‘000) MARKA PJSC 0.69 4.78% 0 DAMAC PROPERTIES DUBAI CO PSC 3.31 3.63% EMAAR MALLS GROUP PJSC 2.40 AIR ARABIA PJSC UNION PROPERTIES PJSC Abu Dhabi Dubai Top Gainers Kuwait Saudi Arabia Top Gainers Egypt Top Gainers Qatar Top Gainers Data & Charts Source: Thomson Reuters Top Losers Top Losers Top Losers 3
4. MENA Morning Report Tuesday , July 11, 2017 Top 30 MENA Stocks by Market Capitalization (* indicates native currency; Latest data) Country Market Cap (USD mln) Close * DoD % YTD % Volume ('000) Value (USD ‘000) 52w High * 52w Low * P/E P/B Div. Yield (T12M) 1 Saudi Basic Industries Corporation SJSC SA 81,118 101.40 0.4% 10.8% 4,048 109,442 105.40 76.00 15 1.9 5.9% 2 Emirates Telecommunications Group Co AE 41,322 17.45 0.6% -7.2% 761 3,617 20.20 17.10 17 3.4 4.6% 3 Saudi Telecom Company SJSC SA 38,986 73.10 -0.4% 0.0% 227 4,421 78.90 51.00 0 0.0 0.0% 4 Qatar National Bank SAQ QA 32,222 127.00 1.9% -14.2% 1,436 50,112 157.27 121.70 9 1.7 2.5% 5 First Abu Dhabi Bank PJSC AE 30,266 10.20 -0.5% 2.1% 2,477 6,880 11.55 8.30 10 1.2 4.4% 6 Al Rajhi Banking & Investment Corp SA 27,993 64.60 0.5% 2.5% 3,558 61,288 71.70 48.60 13 2.0 3.5% 7 National Commercial Bank SJSC SA 27,253 51.10 2.2% 20.0% 988 13,465 58.00 32.00 11 1.7 3.1% 8 Saudi Electricity Company SJSC SA 26,132 23.52 0.7% 5.0% 1,479 9,278 26.05 14.30 12 1.4 3.0% 9 Almarai Co SJSC SA 17,962 84.20 2.1% 22.9% 142 3,181 98.30 51.50 33 5.3 1.1% 10 DP World Ltd AE 17,513 21.10 -1.8% 20.5% 121 697 23.85 15.53 18 2.0 1.8% 11 Jabal Omar Development Co SJSC SA 17,423 70.30 -1.7% -6.0% 263 4,934 76.00 46.00 75 6.4 0.0% 12 Industries Qatar QSC QA 15,788 95.00 1.7% -19.1% 95 2,472 122.00 91.10 18 1.8 0.0% 13 Saudi Arabian Mining Co SJSC SA 15,735 50.50 0.6% 29.5% 1,358 18,287 53.80 27.80 836 2.3 0.0% 14 Emaar Properties PJSC AE 15,089 7.74 0.0% 8.6% 3,124 6,583 8.08 6.37 10 1.3 1.9% 15 National Bank of Kuwait SAKP KW 13,369 685.00 0.1% 10.7% 739 1,670 723.81 523.81 14 1.3 4.2% 16 Samba Financial Group SJSC SA 13,269 24.88 4.5% 2.2% 367 2,435 27.10 15.90 10 1.1 3.8% 17 Emirates NBD Bank PJSC AE 12,106 8.00 -1.8% -5.8% 1,258 2,740 9.00 7.60 7 0.8 5.0% 18 Saudi British Bank SJSC SA 10,260 25.65 2.6% 2.6% 138 947 28.40 16.40 10 1.2 2.7% 19 Banque Saudi Fransi SJSC SA 10,025 31.20 8.7% 0.0% 761 6,329 32.10 18.00 11 1.2 3.4% 20 Abu Dhabi Commercial Bank PJSC AE 9,851 6.96 -2.4% 0.9% 1,265 2,398 7.68 5.66 9 1.2 5.7% 21 Kingdom Holding Co SA 9,833 9.95 0.0% -16.7% 98 261 12.95 9.80 69 1.3 5.0% 22 Kuwait Finance House KSCP KW 9,261 487.00 0.6% -0.8% 2,042 3,280 572.73 400.00 13 1.6 0.0% 23 Ezdan Holding Group QSC QA 8,794 12.07 -1.2% -20.1% 254 843 20.24 10.72 15 1.0 4.1% 24 Riyad Bank SJSC SA 8,688 10.86 1.1% -6.0% 617 1,786 11.80 8.55 10 0.9 6.0% 25 Emaar Malls Group PJSC AE 8,682 2.45 2.1% 0.0% 1,767 1,179 3.00 2.38 17 1.9 0.0% 26 Emirates Islamic Bank PJSC AE 8,576 5.80 0.0% 0.0% 1 1 11.95 1.57 106 4.6 0.0% 27 Masraf Al Rayan QSC QA 8,210 39.85 0.8% 6.0% 458 5,017 45.40 33.05 15 2.6 5.0% 28 Yanbu National Petrochemicals Co SJSC SA 8,040 53.60 0.6% -0.7% 146 2,082 61.75 39.90 12 1.9 5.6% 29 Ooredoo QSC QA 8,007 91.00 -0.8% -10.6% 83 2,069 116.10 88.00 15 1.3 3.8% 30 Dubai Islamic Bank PJSC AE 7,563 5.62 0.4% 0.9% 1,634 2,500 6.29 5.01 9 1.2 8.0% Company Name Total M-Cap; W. Avg Yield 559,334 3.3% Data Source: Thomson Reuters Disclaimer: This report is prepared by Al Masah Capital Management Limited (“AMCML”). AMCML is a company incorporated under the DIFC Companies Law and is regulated by the Dubai Financial Services Authority (“DFSA”). The information contained in this report does not constitute an offer to sell securities or the solicitation of an offer to buy, or recommendation for investment in, any securities in any jurisdiction. The information in this report is not intended as financial advice and is only intended for professionals with appropriate investment knowledge and ones that AMCML is satisfied meet the regulatory criteria to be classified as a ‘Professional Client’ as defined under the Rules & Regulations of the appropriate financial authority. 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