MENA Market Report - 20 August

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1. MENA Morning Report Sunday , August 20, 2017 Overview Regional Markets: MENA markets closed the session on a mixed tone, however the week was mostly negative due to lack of positive catalysts coupled with disappointing second quarter earnings from regional corporate. The rising geopolitical risk between North Korea and the US also made investors cautious preferreing to remain on the sideline. Further, the oil prices have also remained volatile during the week due to uncertainty within the markets. For the regional markets, four out of the eight indexes ended in red, while the remaining four closed in green for the day. Saudi Arabia closed on a positive note as it was up by 0.7% for the day, which was mostly supported by buying interest in banking sector stocks. The performance during the session helped the broader index in recovering the losses to end the week on a positive note. Kuwait was another index that managed to close in green as it advanced by 0.5% for the day, extending the weekly gains. Qatar was the best performing index as it was up by 0.9% for the day after remaining under downward pressure during the previous four sessions of the week. UAE markets ended on a mixed note, in line with the regional sentiments. Dubai closed higher by 0.3%, while Abu Dhabi was down by 0.1% for the day. Egypt closed in red as it was down by 0.2% for the day, after recording gains of 0.4% in the previous session. Bahrain and Oman were down by 0.9% and 0.5% respectively for the day. For the week, all indexes ended in red with the exception of Saudi Arabia and Kuwait. Egypt was the worst performer with losses of 2.5%, followed by 1.5% in Qatar and 1.3% in both of UAE indexes. International Markets: US markets closed in red as DJIA, Nasdaq and S&P were all down by 0.4%, 0.1% and 0.2% respectively for the day. European markets ended in red also as FTSE, DAX and CAC were all down by 0.9%, 0.3% and 0.6% respectively. Asian markets closed on a negative note as Nikkei and Hang Seng were down by 1.2% and 1.1% respectively, while Shanghai was up by 0.01%. Headlines (WW) US business sectors gain or hold steady in public esteem (GCC) USD 32bn worth urban projects at tendering stage in GCC (WW) US industrial production rises 0.2% in July (SA) Oil drives Saudi Arabia’s fiscal deficit lower in H1 (WW) Global insured losses from disasters drop in H1 2017 (SA) China, Saudi Arabia agree to strengthen economic ties (WW) China's new home price growth cools in July (SA) Saudi Labour Ministry declares war on corruption in private sector (WW) UK unemployment hits lowest since 1975, wage growth still muted (AE) UAE's Topaz Energy eyes expansion, better growth in 2018 (WW) Japan's exports rise in July, underpin strengthening economy (AE) VAT’s impact on UAE’s consumer price inflation will be limited (WW) Australia proposes stronger money laundering rules, includes bitcoin (AE) Dubai population to double by 2027 (WW) New BRICS bank plans USD 1.5bn lending for South African projects (EG) Egypt's first bitcoin exchange to begin trading this month (CMD) Oil steady as high US output balances crude stock draw (EG) Egypt's cabinet passes regulations for new investment law (CMD) Gold rises on Fed caution, palladium hits 16-year peak (EG) Egypt's central bank keeps key interest rates unchanged (FX) Euro dives to three-week low after ECB points to overshoot (QA) Qatar economy growth slowest since 1995 (FX) Weakened sterling steadies ahead of retail sales (KW) Kuwait's trade surplus with Japan soars 48.1% (FI) Fed's inflation conundrum firms demand for government bonds (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,601.20 0.3% -1.3% -0.9% 2.0% ˅ ˄ ˄ Abu Dhabi (ADSMI) 4,492.66 -0.1% -1.3% -1.6% -1.2% ˅ ˄ ˅ Saudi (SASEIDX) 7,179.34 0.7% 0.2% 1.2% -0.4% ˅ ˄ ˄ Kuwait (KWSE) 6,885.84 0.5% 0.6% 0.5% 19.8% ˄ ˄ ˄ Egypt (EGX30) 13,119.44 -0.2% -2.5% -2.2% 6.3% ˅ ˄ ˄ Qatar (DSM) 9,106.19 0.9% -1.5% -3.2% -12.7% ˅ ˅ ˅ Bahrain (BHSEIDX) 1,298.94 -0.9% -1.9% -2.2% 6.4% ˅ ˅ ˄ Oman (MSM30) 4,889.28 -0.5% -2.0% -2.7% -15.5% ˅ ˅ ˅ 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) 234 258 273 79 92 100 83,671 Abu Dhabi (ADSMI) 183 113 100 52 43 48 133,126 Saudi (SASEIDX) 156 149 166 810 782 828 449,517 Index Kuwait (KWSE) 95 65 193 53 54 72 75,578 Egypt (EGX30) 153 291 285 41 58 73 18,982 Qatar (DSM) 5 11 11 34 86 90 108,013 Bahrain (BHSEIDX) 6 3 4 3 2 2 20,652 Oman (MSM30) 23 13 16 18 6 9 13,500 * 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 Sunday , August 20, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 PB 14.0 11.4 12.3 11.1 386.2 9.6 8.1 300 8 239.3 188.3 4 1.2 1.6 Current 489.3 11.3 12 Previous 600 2.0 1.6 1.3 0.9 0.9 Qatar Bahrain Oman - - - 178.1 0 106.9 87.2 1.4 0 Dubai Abu Dhabi Saudi Kuwait Egypt Average Dubai Abu Dhabi Saudi Kuwait 27% 6.2% 9% 4.6% 4.3% 4% Bahrain Oman Average 3.6% 3.2% 19.8% 18% 5.4% 4.8% Qatar Year to Date Perfomance DividendYield 8% 6% Egypt 0% -1.2% -9% -0.4% 2% -12.7% -18% 0.0% 6.4% 6.3% 2.0% -15.5% 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 Sunday , August 20, 2017 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) TAKAFUL EMARAT INSURANCE PJSC 2.07 -5.05% 209 444 EMIRATES INTEGRATED TELECOMM 5.51 -2.82% 745 4,162 71 ARABTEC HOLDING PJSC 3.27 -1.21% 4,124 13,568 100 298 AIR ARABIA PJSC 1.12 -0.88% 4,056 4,562 178 823 GULF NAVIGATION HOLDING PJSC 1.26 -0.79% 46 58 DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) 2.40 13.21% 10 23 INVEST BANK PSC 2.52 -5.26% 17 44 SHARJAH CEMENT AND INDUSTRIAL 1.05 6.06% 187 191 DANA GAS PJSC 0.60 -3.23% 9,001 5,491 ABU DHABI SHIP BUILDING PJSC 2.30 4.55% 2 5 RAS AL KHAIMAH CEMENT CO PSC 0.75 -2.60% 93 71 SUDATEL TELECOM GROUP LTD 0.56 3.70% 2,275 1,251 NATIONAL BANK OF UMM AL QAIWAI 2.95 -1.67% 100 298 ABU DHABI NATIONAL ENERGY CO 0.62 3.33% 52,684 32,137 NATIONAL BANK OF RAS AL KHAIMAH 4.60 -1.08% 178 823 Close * DoD % Volume ('000) Value (SAR ‘000) Top Losers Close * DoD % Volume ('000) Value (SAR ‘000) SAUDI RESEARCH AND MARKETING 69.20 8.13% 2,112 140,674 FAWAZ ABDULAZIZ ALHOKAIR CO SJSC 45.55 -4.71% 875 40,841 DEVELOPMENT WORKS FOOD CO 68.00 7.94% 7 437 ASH SHARQIYAH DEVELOPMENT CO 49.60 -4.25% 651 32,991 ARAB SEA INFORMATION SYSTEMS CO 11.98 3.99% 7 81 TALEEM REIT FUND 14.94 -4.11% 4,725 72,107 TIHAMA ADVERTISING AND PUBLIC 46.80 3.54% 2,031 93,404 MEDITERRANEAN AND GULF COOP 12.86 -2.58% 827 10,782 SAUDI BRITISH BANK SJSC 26.60 3.30% 91 2,370 AMANA COOPERATIVE INSURANCE CO 23.30 -2.27% 1,745 41,137 Top Gainers Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) AL MASSALEH REAL ESTATE CO KSCP 44.80 9.54% 1 0 UNITED PROJECTS FOR AVIATION 715.00 -7.14% 4 3 AMAR FINANCE AND LEASING CO 38.00 8.57% 57 2 CREDIT RATING AND COLLECTION CO 29.90 -6.27% 4 0 KUWAIT RESORTS COMPANY KPSC 79.00 7.92% 1,333 101 NATIONAL PETROLEUM SERVICES CO 852.00 -5.02% 38 33 REAL ESTATE TRADE CENTERS CO 44.90 6.90% 17 1 AFAQ EDUCATIONAL SERVICES CO 105.00 -4.55% 30 3 NATIONAL INDUSTRIES COMPANY 187.00 6.86% 92 17 KUWAIT NATIONAL CINEMA CO 1200.0 -4.00% 0 0 Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) SHOROUK FOR MODERN PRINTING 17.74 9.98% 2 33 EGYPTIAN SATELLITE CO SAE 7.50 -8.76% 0 1 MINAPHARM PHARMACEUTICALS SAE 58.14 9.41% 0 12 MISR NATIONAL STEEL SAE 18.17 -6.87% 9 163 CAIRO NATIONAL CO FOR INVEST 4.35 8.75% 21 88 KAFR EL ZAYAT PESTICIDES & CHEMI 54.67 -5.02% 18 1,005 ARAB ENGINEERING INDUSTRIES SAE 6.50 6.73% 2 13 SUEZ CANAL BANK SAE 9.82 -4.01% 20 201 ALEXANDRIA NATIONAL COMPANY 4.58 6.51% 13 56 INTERNATIONAL CO FOR AGRI 1.92 -4.00% 359 703 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) QATAR ISLAMIC BANK QPSC 96.80 3.42% 64 6,054 QATAR GENERAL INSURANCE 30.80 -2.84% 4 122 INDUSTRIES QATAR QSC 93.20 2.42% 140 12,884 QATAR ISLAMIC INSURANCE CO QSC 55.80 -2.11% 2 86 EZDAN HOLDING GROUP QSC 12.00 2.21% 48 572 INVESTMENT HOLDING GROUP 8.11 -1.82% 195 1,597 QATAR OMAN INVESTMENT CO QSC 8.59 2.02% 1 6 ALIJARAH HOLDING CO QPSC 13.19 -1.12% 253 3,352 135.90 1.80% 109 14,736 QATAR GAS TRANSPORT CO LTD 16.92 -1.11% 168 2,853 Close * DoD % Volume ('000) Value (AED ‘000) INVEST BANK PSC 2.52 -5.26% 17 44 DANA GAS PJSC 0.60 -3.23% 9,001 5,491 RAS AL KHAIMAH CEMENT CO PSC 0.75 -2.60% 93 NATIONAL BANK OF UMM AL QAIWAI 2.95 -1.67% NATIONAL BANK OF RAS AL KHAIMAH 4.60 -1.08% Top Gainers Close * GULF MEDICAL PROJECTS CO PSC Abu Dhabi Dubai Top Gainers Kuwait Saudi Arabia Top Gainers Egypt Top Gainers Qatar Top Gainers QATAR NATIONAL BANK SAQ Data & Charts Source: Thomson Reuters Top Losers Top Losers Top Losers Top Losers 3
4. MENA Morning Report Sunday , August 20, 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 78,398 98.00 0.3% 7.1% 2,514 65,694 105.40 76.00 16 1.9 6.1% 2 Emirates Telecommunications Group Co AE 42,623 18.00 0.3% -4.3% 688 3,370 20.00 17.10 18 3.6 4.4% 3 Saudi Telecom Company SJSC SA 39,306 73.70 -0.3% 0.0% 175 3,437 78.90 51.00 0 0.0 0.0% 4 Qatar National Bank SAQ QA 34,331 135.90 1.8% -8.2% 109 4,082 157.27 121.70 10 1.7 2.3% 5 First Abu Dhabi Bank PJSC AE 31,452 10.60 0.0% 6.1% 2,039 5,885 11.55 8.30 13 1.2 4.2% 6 Al Rajhi Banking & Investment Corp SA 27,559 63.60 1.0% 1.0% 2,699 45,779 71.70 48.60 12 1.9 3.5% 7 National Commercial Bank SJSC SA 26,826 50.30 0.6% 18.1% 344 4,614 58.00 32.00 11 1.7 3.2% 8 Saudi Electricity Company SJSC SA 26,221 23.60 1.8% 5.4% 832 5,234 26.05 14.30 11 1.4 3.0% 9 DP World Ltd AE 18,077 21.78 -1.0% 24.4% 243 1,439 23.85 15.53 19 2.1 1.7% 10 Jabal Omar Development Co SJSC SA 16,828 67.90 -0.1% -9.2% 124 2,254 76.00 46.00 72 6.2 0.0% 11 Almarai Co SJSC SA 16,746 78.50 2.5% 14.6% 226 4,724 98.30 51.50 30 4.7 1.1% 12 Emaar Properties PJSC AE 16,453 8.44 1.2% 18.4% 2,895 6,652 8.53 6.37 11 1.4 0.0% 13 Industries Qatar QSC QA 15,422 93.20 2.4% -20.7% 140 3,580 122.00 90.50 22 1.7 4.3% 14 Saudi Arabian Mining Co SJSC SA 15,268 49.00 1.3% 25.6% 700 9,145 53.80 27.80 224 2.2 0.0% 15 National Bank of Kuwait SAKP KW 14,353 732.00 0.4% 18.2% 502 1,217 747.00 533.33 14 1.4 3.9% 16 Samba Financial Group SJSC SA 13,162 24.68 0.7% 1.4% 529 3,478 27.10 15.90 10 1.1 3.8% 17 Emirates NBD Bank PJSC AE 12,560 8.30 1.8% -2.2% 3,250 7,346 9.00 7.60 7 0.8 4.8% 18 Kuwait Finance House KSCP KW 10,833 567.00 -0.4% 15.5% 2,343 4,405 576.00 413.64 17 1.8 2.7% 19 Saudi British Bank SJSC SA 10,640 26.60 3.3% 0.0% 91 642 28.40 16.40 11 1.2 2.6% 20 Kingdom Holding Co SA 10,198 10.32 0.0% -13.6% 234 643 12.95 9.80 68 1.3 4.8% 21 Abu Dhabi Commercial Bank PJSC AE 10,191 7.20 -0.7% 4.3% 1,211 2,375 7.68 5.66 9 1.2 5.6% 22 Banque Saudi Fransi SJSC SA 9,932 30.90 0.7% 18.4% 487 4,010 33.20 18.00 11 1.2 0.0% 23 Emirates Islamic Bank PJSC AE 8,872 6.00 0.0% 0.0% 2 3 11.95 1.57 94 4.6 0.0% 24 Riyad Bank SJSC SA 8,720 10.90 1.1% -5.6% 1,009 2,931 11.80 8.55 11 0.9 6.0% 25 Ezdan Holding Group QSC QA 8,706 12.00 2.2% 0.0% 48 159 19.72 10.72 16 1.1 0.0% 26 Emaar Malls Group PJSC AE 8,611 2.43 0.8% 0.0% 475 314 2.87 2.38 17 1.9 0.0% 27 Yanbu National Petrochemicals Co SJSC SA 8,250 55.00 2.0% 1.9% 440 6,449 61.75 39.90 14 2.0 5.5% 28 Masraf Al Rayan QSC QA 8,236 40.15 0.2% 6.8% 208 2,294 45.40 33.05 15 2.5 5.0% 29 Dubai Islamic Bank PJSC AE 8,060 5.99 -0.5% 7.5% 1,551 2,529 6.29 5.01 9 1.2 7.5% 30 Ooredoo QSC QA 7,885 90.00 -1.0% -11.6% 60 1,477 116.10 88.20 16 1.3 3.9% Company Name Total M-Cap; W. Avg Yield 564,716 3.2% 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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