MENA Market Report - 2 April

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1. MENA Morning Report Monday , April 02, 2018 Overview Regional Markets: The trading activity within the MENA region was mostly subdued as four out of the eight indexes ended in red, while three in green and one remained unchanged for the day. Oil prices is hovering around $70 per barrel mark, which augurs well for the regional governments as it helps them in continuing with their spending programs if not accelerate over the course of the year. For the day, Saudi Arabia closed on a negative note as it was down by 0.9% during the session. Post the news of its inclusion in the secondary FTSE EM index, the market is witnessing downward pressure as short term investors are booking profits. The market is likely to benefit from the positive development, however the inflow is expected to be gradual as foreign investors will be tracking the valuations and accordingly enter the market. UAE markets ended on a positive note as Dubai was up by 0.9%, while Abu Dhabi was flat for the day. Egypt closed on a positive note as it was up by 0.8% for the day. The index continues to remain one of the most preferred markets within the region as investors are hoping for further rate cuts, which should stimulate the economic activity going forward. Qatar closed on a positive note as it was up by 1.1% for the day on the back of news of an increase in foreign ownership. Kuwait was marginally lower as it was down by 0.1% for the day, the first day of trading after the latest revamp of the stock exchange. Bahrain and Oman ended on the losing side as both were down by 1.2% and 0.8% respectively for the day. International Markets: At the time of writing this report, Asian markets have opened on a positive note as Nikkei, Hang Seng and Shanghai are up by 0.3%, 0.2% and 0.2% respectively. Headlines (WW) EU sours on reviving trade-pact push with US amid tariffs row (SA) Saudi Arabia to tender consolidation of project consultancy services (WW) China announces it's imposing new tariffs on 128 US products (SA) Saudi Arabia trade surplus grows 82% in January (WW) China official factory PMI rises to 51.5 in March, beats forecasts (AE) UAE banks may hike fees to offset additional VAT costs (WW) China says protectionist moves will mean shutting door on the country (AE) Abu Dhabi attracts USD 26bn foreign direct investment (WW) China presses state lenders to curb local government debt risk (AE) Pick up in loan growth signals better profit outlook for UAE banks (WW) Japan February household spending seen up for second straight month (AE) Dubai’s hardware and tools trade surges to USD 1.3bn (WW) Russia central bank seen cutting key rate to 6.5% by year-end (AE) UAE, Egypt push to accelerate trade ties (WW) RBI to take hawkish stance by end-2018, hike rates early next year (EG) Egypt invests EGP 2.6bn in local development projects in H1-17/18 (CMD) US crude oil production rose slightly in January (QA) Govt projects add to construction growth rate by 7% until 2019 (CMD) Gold drops this week, as the Dollar gains ground (QA) Qatar commercial banks’ assets jump 10% YoY QAR1.38tn in Feb (FX) Dollar stalls after rally, braces for headwinds in new quarter (BH) Bahrain discovers largest oilfield in decades (FX) Sterling up in value as it performs strongly against the Euro (OM) Key role for oil and gas industry in Oman despite diversification (FI) Bond yields drop hard, USD recovers ahead of Easter (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,136.36 0.9% 0.9% 0.9% -6.9% ˅ ˅ ˅ Abu Dhabi (ADSMI) 4,583.53 -0.0% -0.0% -0.0% 4.2% ˄ ˄ ˄ Saudi (SASEIDX) 7,800.88 -0.9% -0.9% -0.9% 8.0% ˄ ˄ ˄ Kuwait (KWSE) 4,993.41 -0.1% -0.1% -0.1% 3.4% ˅ ˄ ˄ Egypt (EGX30) 17,595.88 0.8% 0.8% 0.8% 17.2% ˄ ˄ ˄ Qatar (DSM) 8,669.04 1.1% 1.1% 1.1% 1.7% ˅ ˄ ˄ Bahrain (BHSEIDX) 1,303.14 -1.2% -1.2% -1.2% -2.1% ˅ ˄ ˄ Oman (MSM30) 4,737.17 -0.8% -0.8% -0.8% -7.1% ˅ ˅ ˅ 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) 166 214 241 62 87 102 82,510 Abu Dhabi (ADSMI) 84 71 79 33 39 41 133,491 Saudi (SASEIDX) 168 173 175 1,027 993 952 497,760 Kuwait (KWSE) 23 82 83 5 48 52 75,578 Egypt (EGX30) 661 329 344 104 105 93 30,442 Qatar (DSM) 11 11 10 75 86 77 99,772 Bahrain (BHSEIDX) 2 7 6 1 3 3 21,914 Oman (MSM30) 39 16 17 13 11 12 13,295 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 Monday , April 02, 2018 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 Previous Current 600 14.4 12.4 12 8 PB 11.4 10.8 10.7 7.6 7.6 4 1.1 1.3 2.7 1.8 - - 148.3 109.5 1.1 0.8 0.8 Bahrain Oman - 60.4 1.4 0 291.6 253.8 300 88.5 86.3 0 Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Dubai Average Abu Dhabi 6.5% 5.5% 6.0% 6.0% 5.1% 4.5% 4.1% 4% 2.8% 2% 0.0% 0% Dubai Abu Dhabi Saudi Kuwait Egypt Kuwait Egypt Qatar Bahrain Oman Average Year to Date Perfomance DividendYield 8% 6% Saudi Qatar Bahrain Oman Average 18% 15% 12% 9% 6% 3% 0% -3% -6% -9% 17.2% 8.0% 4.2% 1.7% 0.0% -2.1% -7.1% -6.9% 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 Monday , April 02, 2018 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) AL SALAM BANK SUDAN PLC 1.68 -2.33% 0 17 SHUAA CAPITAL PSC 1.03 -1.90% 0 730 9,280 AJMAN BANK PJSC 1.03 -1.90% 409 425 3,541 DXB ENTERTAINMENTS PJSC 0.48 -0.82% 7,607 3,682 DRAKE AND SCULL INTERNATIONAL 1.72 -0.58% 4,964 8,564 Close * DoD % Volume ('000) Value (AED ‘000) AL KHAZNA INSURANCE COMPANY 0.24 -7.69% 511 128 9,332 ARKAN BUILDING MATERIALS CO PJSC 0.65 -4.41% 3,051 2,029 21,523 20,016 AGTHIA GROUP PJSC 4.21 -4.32% 3 15 270 1,014 NATIONAL TAKAFUL CO PJSC 0.47 -2.08% 50 24 1.89% 20 11 INVEST BANK PSC 2.37 -1.25% 21 51 Close * DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) AL KATHIRI HOLDING CO 23.00 8.49% 22 489 AL SAMAANI FACTORY METAL IND 61.00 -4.69% 0 25 NATIONAL AGRICULTURE MARKETING 32.30 7.49% 1,707 53,226 RAYDAN COMPANY CJSC 13.80 -4.17% 35 493 ALLIED COOPERATIVE INSURANCE 18.28 6.28% 508 9,015 SAUDI CEMENT CO SJSC 53.80 -3.93% 120 6,612 AL BABTAIN POWER AND TELECO 27.95 4.68% 1,846 50,438 BAAZEEM TRADING COMPANY CJSC 23.14 -3.90% 13 309 HALWANI BROTHERS CO JSC 60.00 4.35% 241 14,161 SAUDI ARABIAN MINING CO SJSC 52.60 -3.84% 618 33,178 Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) MENA REAL ESTATE CO KSCP 27.90 20.78% 1 0 UNITED REAL ESTATE COMPANY SAKP 60.00 -11.63% 10 1 INTERNATIONAL RESORTS COMPANY 30.00 20.00% 2 0 AMAR FINANCE AND LEASING CO 44.10 -10.00% 79 4 22.00 -5.58% 20 0 Close DoD % Volume Value MARKA PJSC 0.50 8.15% 0 4,284 GULF GENERAL INVESTMENT CO PSC 0.34 3.65% 0 260 AMANAT HOLDINGS PJSC 1.37 3.01% 6,874 NATIONAL CENTRAL COOLING CO PJSC 1.59 2.58% 2,256 EMIRATES INTEGRATED TELECO 4.88 2.52% 49 234 Close * DoD % Volume ('000) Value (AED ‘000) AL KHALEEJ INVESTMENT CO PJSC 2.29 14.50% 9 19 ESHRAQ PROPERTIES COMPANY PJSC 0.74 2.78% 12,784 DANA GAS PJSC 0.94 2.17% ABU DHABI ISLAMIC BANK PJSC 3.79 2.16% SUDATEL TELECOM GROUP LTD 0.54 Dubai Top Gainers Abu Dhabi Top Gainers Saudi Arabia Top Gainers Kuwait Top Gainers Egypt Top Losers Top Losers FIRST DUBAI FOR REAL ESTATE DEV 44.00 18.28% 12 1 TAAMEER REAL ESTATE INVESTMENT BOUBYAN INTERNATIONAL INDUSTRY 27.50 10.00% 55 1 TIJARA AND REALESTATE INVESTMENT 54.00 -5.10% 26 1 CREDIT RATING AND COLLECTION CO 27.50 10.00% 0 0 KUWAIT SYRIAN HOLDING CO KSC 32.20 -3.59% 85 3 Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) REMCO TOURISM VILLAGES CONST 5.74 10.81% 0 12,049 DEVELOPMENT AND ENGINEERING 19.50 -5.48% 266 5,344 MISR NATIONAL STEEL SAE 54.46 10.00% 4 192 ROWAD TOURISM COMPANY SAE 12.32 -5.01% 38 475 BPE HOLDING FOR FINANCIAL INVEST 13.00 9.98% 329 4,081 GLAXOSMITHKLINE SAE 22.50 -4.98% 2 36 ALEXANDRIA CO FOR PHARMA 170.52 9.27% 9 1,534 SINAI CEMENT CO SAE 12.07 -4.66% 13 163 NORTH UPPER EGYPT DEVELOPMENT 7.94 8.47% 489 3,731 GENERAL COMPANY FOR PAPER IND 8.17 -4.11% 135 1,124 Top Gainers Close DoD % Volume Value Top Losers Close DoD % Volume Value MESAIEED PETROCHEMICAL HOLDING 16.15 9.94% 2,953 45,540 QATAR GENERAL INSURANCE & REINS 43.50 -3.33% 4 174 QATAR FUEL CO QSC 117.75 7.07% 462 52,570 DOHA INSURANCE CO QSC 13.70 -2.84% 18 248 GULF INTERNATIONAL SERVICES QSC 19.51 6.26% 709 13,423 QATARI INVESTORS GROUP QSC 33.03 -2.51% 67 2,225 INDUSTRIES QATAR QSC 108.12 2.87% 58 6,161 QATAR FIRST BANK LLC 6.25 -2.04% 679 4,287 EZDAN HOLDING GROUP QSC 10.70 1.90% 31 326 VODAFONE QATAR QSC 8.55 -1.61% 988 8,513 Top Gainers Qatar Top Losers Data & Charts Source: Thomson Reuters Top Losers 3
4. MENA Morning Report Monday , April 02, 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 92,965 116.20 -0.2% 14.1% 6,293 195,001 120.00 94.25 19 2.1 3.6% 2 Saudi Telecom Company SJSC SA 43,576 81.70 -1.4% 19.1% 312 6,807 85.00 65.10 16 2.6 4.9% 3 Emirates Telecommunications Group Co AE 41,324 17.45 -1.1% -0.3% 380 1,808 18.85 15.75 18 3.4 4.6% 4 First Abu Dhabi Bank PJSC AE 34,719 11.70 0.0% 14.1% 3,162 10,072 12.00 10.05 13 1.2 6.0% 5 National Commercial Bank SJSC SA 34,455 64.60 -0.8% 17.2% 405 6,977 65.50 37.00 13 2.0 2.6% 6 Qatar National Bank QPSC QA 33,509 132.11 1.6% 4.8% 26 952 151.00 115.01 9 1.6 4.5% 7 Al Rajhi Banking & Investment Corp Ltd SA 32,328 74.60 -1.1% 15.5% 2,679 53,298 78.20 61.00 13 2.2 5.4% 8 Saudi Electricity Company SJSC SA 22,934 20.64 0.0% -2.0% 736 4,054 26.05 19.76 12 1.2 3.4% 9 DP World Ltd AE 18,683 22.51 0.0% -10.0% 3 17 27.06 20.30 16 1.7 1.8% 10 Industries Qatar QSC QA 17,963 108.12 2.9% 11.5% 58 1,716 115.00 85.00 20 1.9 4.6% 11 Saudi Arabian Mining Co SJSC SA 16,391 52.60 -3.8% 1.0% 618 8,674 57.10 39.50 86 2.4 0.0% 12 Emirates NBD Bank PJSC AE 16,193 10.70 -0.5% 30.5% 1,013 2,951 11.00 7.95 8 1.0 3.7% 13 National Bank of Kuwait SAKP KW 15,488 746.00 -0.5% 7.6% 512 1,274 761.90 619.05 15 1.4 3.6% 14 Almarai Co SJSC SA 14,454 54.20 -1.8% 0.7% 345 4,989 78.64 50.00 26 3.7 1.4% 15 Emirates Islamic Bank PJSC AE 14,048 9.50 0.0% -3.1% 1 1 10.20 4.90 73 7.1 0.0% 16 Samba Financial Group SJSC SA 13,974 26.20 -2.2% 11.4% 894 6,247 27.55 20.50 10 1.2 5.7% 17 Saudi British Bank SJSC SA 12,401 31.00 -1.1% 14.8% 14 116 32.50 21.25 12 1.4 4.6% 18 Jabal Omar Development Co SJSC SA 12,157 49.05 -3.1% -17.0% 764 9,994 75.60 47.50 339 4.5 0.0% 19 Emaar Properties PJSC AE 11,405 5.85 0.9% -10.5% 9,403 14,978 8.43 5.68 7 0.9 0.0% 20 Kuwait Finance House KSCP KW 11,366 590.00 -0.5% 2.4% 5,285 10,410 650.00 467.00 18 1.8 2.9% 21 Riyad Bank SJSC SA 11,041 13.80 -0.6% 9.7% 1,381 5,081 14.20 10.10 10 1.1 5.3% 22 Yanbu National Petrochemicals Co SJSC SA 10,831 72.20 -1.2% 22.4% 131 2,514 74.30 52.00 17 2.4 4.5% 23 Abu Dhabi Commercial Bank PJSC AE 9,484 6.70 1.5% -1.5% 233 426 7.50 6.50 8 1.1 6.3% 24 Banque Saudi Fransi SJSC SA 9,434 29.35 0.0% 3.0% 199 1,557 33.40 25.20 10 1.1 4.8% 25 Kingdom Holding Co SA 9,142 9.25 2.5% 0.0% 1,272 3,137 11.30 7.90 54 1.1 0.0% 26 Abu Dhabi National Oil Co for Dist AE 9,088 2.67 1.1% 0.8% 24 17 2.90 2.50 18 11.7 2.2% 27 Alinma Bank SJSC SA 8,176 20.44 -0.9% 6.7% 25,728 140,234 20.92 14.00 15 1.5 3.9% 28 Ezdan Holding Group QSC QA 7,794 10.70 1.9% -11.4% 31 90 16.30 6.19 17 0.9 0.0% 29 Saudi Arabia Fertilizers Co SJSC SA 7,767 69.90 -1.1% 7.2% 193 3,602 73.10 57.00 33 4.2 2.5% 30 Emaar Malls PJSC AE 7,726 2.18 1.4% 2.3% 368 219 2.70 2.00 14 1.7 4.6% Company Name Total M-Cap; W. Avg Yield 600,816 3.6% 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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