MENA Market Report - 19 April

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1. MENA Morning Report Thursday , April 19, 2018 Overview Regional Markets: The trading activity in the MENA region closed on a subdued note as four out of the eight indexes ended in red, while two in green and two were unchanged for the day. Earnings for the first quarter have kicked off with banks starting the season with growth YoY, which should encourage investors to look into other banks with potential to report growth during the quarter. For the day, UAE markets ended on a negative note as Dubai and Abu Dhabi were down by 1.4% and 0.5% respectively for the day. The performance seen in Dubai during the past two sessions have dragged the index into negative territory with losses of 0.2% for the week. Abu Dhabi, on other hand, has managed to remain in positive territory with gains of 0.5% for the week despite the losses. The market breadth in Dubai was skewed toward decliners, as decliners reached 25 compared to only 6 gainers, while 6 remained unchanged. Saudi Arabia closed on a positive note as it was up by 0.6% for the day, extending the weekly gains to 4.1% and annual to 12.7%. The index has witnessed investor interest in the past two to three weeks on the back of positive developments. Kuwait remained subdued during the session, a trend seen during the week as there is lack of confidence within the investors. Qatar closed on a positive note as it was up by 1.1% for the day, extending the gains to 1.5% for the week. Egypt closed on a negative note as it was down by 0.5% for the day, giving away 50% of the gains recorded during the earlier sessions. Bahrain closed flat, while Oman was down by 0.5% for the day. International Markets: US markets ended on a mixed note as DJIA was down by 0.2%, while S&P and NASDAQ were up by 0.1% and 0.2% respectively for the day. European markets closed on a positive note as FTSE, CAC and DAX were all up by 1.3%, 0.5% and 0.04% respectively for the day. At the time of writing this report, Asian markets have opened on a positive note as Nikkei, Hang Seng and Shanghai were all up by 0.5%, 1.3% and 1.0% respectively. Headlines (WW) US housing starts, industrial production rise in March (SA) Saudi Arabia economy set to expand beyond forecasts for 2018 (WW) Trade spat to dull expected tax cut boost to US economy (AE) UAE economy to grow 3% in 2019 (WW) China has contingency plans to deal with US trade frictions (AE) Dubai Government entities agree to support innovative private sector (WW) China's new home prices edge up, gains extend to larger cities (AE) Expo 2020 to boost UAE’s reputation as events destination (WW) Bank of England to raise rates in May, almost all economists say (AE) UAE business loan demand rising, personal loan demand weak (WW) Japan's March exports disappoint on strong yen, trade friction a risk (AE) Monetary deposits at UAE Central Bank stood at USD 15.2.bn in Q1 (WW) Japan’s trade balance surplus, exports rise in March (EG) IMF raises Egypt economic growth to 5.2% in FY17/18 (WW) India calms cash crunch worries, will ensure adequate currency supply (QA) Tech entrepreneurs key to Qatar’s economic development (CMD) Oil gains after drop in US inventories adds to supply concerns (KW) Kuwait's trade surplus with Japan down second month (CMD) Gold slips as dollar steadies on positive US data (KW) Kuwait Petroleum Corp set to spend USD 113bn in 5 years (FX) Dollar rises as risk appetite returns, investors turn to data (BH) Bahrain oil discovery could support sovereign credit over longer term (FX) Falling UK price data sends sterling to four-day low (OM) Oman’s push to recruit locals 97% on target (FI) US/German 2-year bond yield gap (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,087.75 -1.4% -0.2% -0.7% -8.4% ˅ ˅ ˅ Abu Dhabi (ADSMI) 4,682.08 -0.5% 0.6% 2.1% 6.4% ˄ ˄ ˄ Saudi (SASEIDX) 8,146.13 0.6% 4.1% 3.5% 12.7% ˄ ˄ ˄ Kuwait (KWSE) 4,849.53 0.0% -0.0% -3.0% 0.7% ˅ ˄ ˄ Egypt (EGX30) 17,705.87 -0.5% 0.5% 1.5% 17.9% ˄ ˄ ˄ Qatar (DSM) 9,055.02 1.1% 1.5% 5.6% 6.2% ˄ ˄ ˄ Bahrain (BHSEIDX) 1,301.98 -0.0% 0.8% -1.2% -2.2% ˅ ˅ ˄ Oman (MSM30) 4,751.95 -0.4% -0.5% -0.5% -6.8% ˅ ˅ ˅ 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) 115 180 219 70 74 96 82,792 Abu Dhabi (ADSMI) 37 68 73 26 37 37 1,36,006 Saudi (SASEIDX) 243 178 185 1,368 1,057 1,004 5,12,833 Kuwait (KWSE) 39 68 74 8 201 129 75,578 Egypt (EGX30) 303 359 346 108 112 98 31,029 Qatar (DSM) 19 11 10 100 84 80 1,05,723 Bahrain (BHSEIDX) 1 6 5 1 3 3 21,638 Oman (MSM30) 16 21 18 7 13 12 13,364 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 1
2. MENA Morning Report Thursday , April 19, 2018 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 15.0 12.6 11.1 12 8 PB Current 12.0 11.1 8.2 7.7 1.1 1.3 2.6 1.8 148.9 110.7 1.2 - - 0.8 0.8 Bahrain Oman - 87.8 62.7 1.4 0 289.4 255.1 300 4 87.5 0 Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Dubai Average Abu Dhabi Saudi 5.5% 5.9% 5.2% 6.0% 4.9% 4.2% 3.9% 4% 2.6% 2% 0.0% 0% Dubai Abu Dhabi Saudi Kuwait Egypt Kuwait Egypt Qatar Bahrain Oman Average Year to Date Perfomance DividendYield 8% 6% Previous 600 Qatar Bahrain Oman Average 18% 15% 12% 9% 6% 3% 0% -3% -6% -9% -12% 17.9% 12.7% 6.2% 6.4% 0.7% -2.2% -6.8% -8.4% 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 Thursday , April 19, 2018 Dubai Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) MARKA PJSC 0.32 -6.45% 0 4,609 2,511 DUBAI REFRESHMENTS PJSC 12.00 -6.25% 0 3,100 732 2,983 EMAAR PROPERTIES PJSC 5.64 -3.59% 19,505 1,12,057 0.37% 449 368 EMAAR MALLS PJSC 2.11 -1.86% 3,656 7,788 0.20% 151 747 DXB ENTERTAINMENTS PJSC 0.44 -1.77% 12,680 5,668 Close * DoD % Volume ('000) Value (AED ‘000) Top Losers Close * DoD % Volume ('000) Value (AED ‘000) ABU DHABI AVIATION 2.95 5.36% 1 3 NATIONAL BANK OF UMM AL QAIWAI 2.68 -9.76% 74 209 METHAQ TAKAFUL INSURANCE CO 0.80 3.90% 35 28 INVEST BANK PSC 2.25 -4.26% 42 97 GULF CEMENT CO PSC 1.08 2.86% 142 151 DANA GAS PJSC 0.96 -2.04% 3,742 3,630 AGTHIA GROUP PJSC 4.37 2.10% 139 602 SUDATEL TELECOM GROUP LTD 0.51 -1.92% 944 486 RAK PROPERTIES PJSC 0.68 1.49% 479 323 BANK OF SHARJAH PJSC 1.10 -1.79% 105 117 Close * DoD % Volume ('000) Value (SAR ‘000) Top Losers Close * DoD % Volume ('000) Value (SAR ‘000) RABIGH REFINING AND PETROCHEM 29.75 7.59% 5,249 1,50,636 RAYDAN COMPANY CJSC 16.00 -5.66% 9 144 ABDULLAH SAAD MOHAMMED ABO M 12.98 6.57% 85 1,071 NATIONAL SHIPPING CO OF KSA 31.25 -3.55% 1,259 40,059 MALATH COOPERATIVE INSURANCE 16.56 5.88% 3,000 48,296 DALLAH HEALTHCARE COMPANY SJSC 107.00 -2.90% 65 7,085 ALUJAIN CORPORATION SJSC 26.15 5.87% 1,985 50,477 UNITED INTERNATIONAL TRANSPORT 37.55 -2.85% 462 17,587 AL SAGR COOPERATIVE INSURANCE 23.96 5.74% 1,468 34,225 SAUDI ARABIAN REFINERIES CO SJSC 43.50 -2.47% 640 28,176 Top Gainers Close (fils) * DoD % Volume ('000) Value (KWD 000) Close (fils) * DoD % Volume ('000) Value (KWD 000) AL MASAKEN INTERNATIONAL REAL ES 80.00 14.29% 156 12 HAYAT COMMUNICATIONS CO KSCP 56.00 -34.88% 3 0 LIVESTOCK TRANSPORT AND TRADING 220.00 10.00% 10 2 AMWAL INTERNATIONAL INVESTMEN 45.00 -8.35% 10 0 155.00 -8.28% 0 0 Top Gainers Close * DoD % Volume ('000) Value (AED ‘000) AMANAT HOLDINGS PJSC 1.35 1.50% 0 47 GULF NAVIGATION HOLDING PJSC 1.05 0.96% 0 ARAMEX PJSC 4.09 0.74% AMLAK FINANCE PJSC 0.82 EMIRATES INTEGRATED TELECOM 4.94 Abu Dhabi Top Gainers Egypt Kuwait Saudi Arabia Top Gainers Top Losers REAL ESTATE TRADE CENTERS CO 25.50 8.97% 4 0 NATIONAL INDUSTRIES COMPANY FIRST DUBAI FOR REAL ESTATE DEV 45.00 8.70% 38 2 MANAZEL HOLDING CO KPSC 36.00 -6.49% 4,316 161 AAYAN REAL ESTATE COMPANY KSCP 56.30 7.85% 53 3 KUWAIT CEMENT CO KSCP 440.00 -6.38% 0 0 Top Gainers Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) SOUTH CAIRO AND GIZA MILLS & BAK 33.91 10.64% 0 13 7.37 -7.99% 100 770 EL NASR FOR MANUFACTURING AGRI 18.61 9.66% 168 2,982 PIONEERS HOLDING COMPANY 9.82 -7.71% 17,904 1,83,157 EL AHRAM CO FOR PRINTING & PACK 8.63 8.96% 255 2,107 EGYPTIAN TOURAH PORTLAND CEMEN 20.92 -5.08% 183 3,927 GULF CANADIAN COMPANY FOR ARAB 10.83 8.63% 188 1,951 SUEZ BAGS CO SAE 24.50 -4.67% 0 3 AL OROUBA SECURITIES BROKERAGE 0.68 7.94% 12 8 MISR HOTELS CO SAE 53.47 -4.43% 1 44 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) EZDAN HOLDING GROUP QSC 11.20 4.77% 655 7,169 QATAR OMAN INVESTMENT CO QSC 7.00 -2.78% 5 37 COMMERCIAL BANK PSQC 35.20 3.83% 462 15,958 AAMAL CO QPSC 11.00 -1.96% 303 3,361 DOHA BANK QPSC 27.20 3.42% 786 21,017 GULF WAREHOUSING CO QPSC 40.50 -1.20% 19 794 VODAFONE QATAR QSC 9.20 2.91% 8,097 73,436 QATAR FIRST BANK LLC 6.07 -1.14% 787 4,807 ALIJARAH HOLDING CO QPSC 10.23 2.30% 180 1,816 MEDICARE GROUP QSC 67.50 -0.59% 11 747 Top Gainers Qatar Top Losers Data & Charts Source: Thomson Reuters Top Losers AL TAWFEEK COMPANY FOR FINANCI Top Losers 3
4. MENA Morning Report Thursday , April 19, 2018 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 96,800 121.00 -1.1% 18.9% 4,841 1,56,212 123.60 94.25 20 2.2 3.5% 2 Saudi Telecom Company SJSC SA 45,333 85.00 0.7% 23.9% 182 4,127 85.00 65.10 17 2.7 4.7% 3 Emirates Telecommunications Group Co AE 41,083 17.35 0.9% -0.9% 890 4,205 18.85 15.75 17 3.4 4.6% 4 Qatar National Bank QPSC QA 37,047 146.00 1.4% 15.9% 228 9,126 148.00 115.01 10 1.9 4.1% 5 First Abu Dhabi Bank PJSC AE 36,792 12.40 -1.2% 21.0% 1,974 6,667 12.65 10.05 14 1.3 5.6% 6 Al Rajhi Banking & Investment Corp Ltd SA 35,620 82.20 1.0% 27.2% 4,200 92,057 82.20 61.00 15 2.4 4.9% 7 National Commercial Bank SJSC SA 35,200 66.00 0.0% 19.8% 697 12,260 66.30 37.90 13 2.1 2.6% 8 Saudi Electricity Company SJSC SA 23,888 21.50 1.8% 2.1% 2,607 14,946 26.05 19.76 13 1.2 3.3% 9 Industries Qatar QSC QA 18,615 112.00 1.3% 15.5% 265 8,167 115.00 85.00 20 2.0 4.5% 10 DP World Ltd AE 18,393 22.16 0.7% -11.4% 197 1,191 27.06 20.30 16 1.7 1.9% 11 Saudi Arabian Mining Co SJSC SA 16,888 54.20 0.9% 4.0% 774 11,181 57.10 39.50 89 2.4 0.0% 12 Emirates NBD Bank PJSC AE 15,586 10.30 -0.5% 25.6% 956 2,680 11.00 7.95 7 1.0 3.9% 13 Almarai Co SJSC SA 15,440 57.90 -0.3% 7.6% 359 5,545 78.64 50.00 27 3.9 1.3% 14 National Bank of Kuwait SAKP KW 15,020 724.00 -0.1% 4.4% 1,402 3,389 761.90 619.05 14 1.4 3.8% 15 Samba Financial Group SJSC SA 14,960 28.05 2.9% 19.3% 2,830 21,172 28.05 20.50 11 1.3 5.3% 16 Emirates Islamic Bank PJSC AE 14,046 9.50 0.0% -3.1% 1 1 10.00 4.90 73 7.1 0.0% 17 Saudi British Bank SJSC SA 12,640 31.60 0.3% 17.0% 295 2,483 32.50 21.45 12 1.4 4.5% 18 Riyad Bank SJSC SA 11,776 14.72 2.8% 17.0% 1,559 6,120 14.72 10.10 11 1.1 5.0% 19 Jabal Omar Development Co SJSC SA 11,748 47.40 -1.0% -19.8% 793 10,025 75.60 47.30 - 4.6 0.0% 20 Yanbu National Petrochemicals Co SJSC SA 10,995 73.30 0.1% 24.2% 492 9,618 74.50 52.00 17 2.5 4.4% 21 Emaar Properties PJSC AE 10,995 5.64 -3.6% -13.7% 19,505 29,954 8.43 5.52 7 0.8 0.0% 22 Kuwait Finance House KSCP KW 10,969 518.00 0.0% -1.1% 2,011 3,479 590.91 424.55 18 1.7 2.7% 23 Abu Dhabi Commercial Bank PJSC AE 10,162 7.18 0.0% 5.6% 838 1,638 7.50 6.50 9 1.2 5.8% 24 Banque Saudi Fransi SJSC SA 10,109 31.45 4.8% 10.4% 392 3,290 33.40 25.30 11 1.2 4.5% 25 Kingdom Holding Co SA 8,944 9.05 0.0% 0.0% 449 1,084 11.30 7.90 51 1.1 0.0% 26 Abu Dhabi National Oil Co for Dist AE 8,440 2.48 -0.4% -6.4% 185 125 2.90 2.47 17 10.9 2.4% 27 Alinma Bank SJSC SA 8,312 20.78 -0.1% 8.5% 23,836 1,32,085 21.58 14.00 15 1.5 3.8% 28 Ezdan Holding Group QSC QA 8,162 11.20 4.8% -7.3% 655 2,016 16.30 6.19 18 1.0 0.0% 29 Arab National Bank SA 8,160 30.60 2.9% 23.6% 341 2,784 31.00 19.15 10 1.3 3.9% 30 Saudi Arabia Fertilizers Co SJSC SA 7,822 70.40 0.4% 8.0% 221 4,156 73.10 57.00 33 4.3 2.5% Company Name Total M-Cap; W. Avg Yield 6,19,946 3.5% Data Source: Thomson Reuters Disclaimer: This report is prepared by Al Masah Capital Limited (“AMCL”). AMCL is a company incorporated in the Cayman Islands as an Exempt Company established under the laws of the Cayman Monetary Authority. The information contained in this report does not constitute any offer to sell securities or the solicitation of any 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 to be used by experienced investment persons with appropriate investment knowledge and ones that AMCL is satisfied meet the regulatory criteria to be classified as a ‘Professional Client’ as defined under the Rules & Regulations of the appropriate financial authority, and as such should not be relied upon by or distributed to “Retail Clients”. 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