MENA Market Report - 24 May

Transcription

1. MENA Morning Report Wednesday , May 24, 2017 Overview Regional Markets: MENA markets ended on a negative note as the region prepares for the Ramadan season, which is likely to start from the following week. Hence, the regional markets are expected to remain dull as investors might remain on the sideline, especially the retail investors who generally stay away from the markets during the whole month of Ramadan. Oil prices holding up above $50 per barrel augurs well for the region, which might provide opportunities for long term investors to accumulate stocks under pressure. For the regional markets, six indexes closed in red, while two ended on a positive note for the day. Saudi Arabia was the worst performer as it was down by 0.7% for the day, giving away all the gains incurred in the previous sessions. UAE markets also ended on the losing side as both Dubai and Abu Dhabi were down by 0.8% and 0.1% respectively for the day. The day's losses have turned the Dubai index into the negative territory and is expected to close in red for the week. Egypt was the best performing index as it was up by 1.1% for the day, rebounding after recording losses of 2.5% on the previous day post the tightening of monetary policy. Qatar closed marginally lower by 0.1% for the day as the index was supported by MSCI constituents from recorded deeper losses during the session. Kuwait closed lower by 0.4% for the day however the index is holding on to the gains recorded during the week. Bahrain closed marginally higher by 0.1%, while Oman was down by 0.2% for the day. International Markets: US markets closed on a positive note as Dow, Nasdaq and S&P were up by 0.2%, 0.1% and 0.2% respectively. European markets closed on a positive note as FTSE was down by 0.2%, while DAX and CAC were up by 0.3% and 0.5% respectively. At the time of writing this report, Asian markets have opened on a negative note as Hang Seng and Shanghai are down by 0.2% and 0.7% respectively, while Nikkei is up by 0.4%. Headlines (WW) US New home sales tumble from near 9-1/2-year high (ME) Middle East investors commit USD 20 billion for Russian investments (WW) US plan to sell oil reserve shows declining import needs (ME) Middle East family businesses well prepared for disruptions (WW) Trump's budget depends on strong growth, 'feedback' for balance (GCC) GCC unified VAT, Selective Excise Taxation agreements come into effect (WW) UK's consumer slowdown ripples through Britain's economy (SA) US and Saudi Arabia Strike USD 320 Billion Deal (WW) UK budget deficit widens more than expected as VAT revenues stall (SA) India could invest in Aramco IPO to strengthen ties (WW) China to open more sectors to foreign investors (AE) FDI inflows into Abu Dhabi up 8% to AED 95 billion in 2016 (WW) Japan sticks to budget balancing goal, seeks growth strategy continuity (AE) Abu Dhabi economy showing signs of recovery (WW) Euro zone business activity remained buoyant in May (AE) Investors urged to back UAE business ecosystem (CMD) Oil prices fall as White House proposes US oil reserve sales (AE) India to deepen ties with UAE private sector (CMD) Gold price sustains upward trend on hedging, futures (EG) Egypt's tourist visitors up 49% year-on-year in March (FX) Sterling slips after Conservatives' slide in polls (EG) Egypt expects to EGP 5-7 billion from state IPOs (FX) Dollar flat as UK bombing adds to market uncertainty (EG) Egypt deficit falls to 8% of GDP in first 9 months of 2016-17 (FI) US Government Bonds Pull Back Ahead of New Debt Supply (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,363.60 -0.8% -0.4% -1.5% -4.7% ˅ ˅ ˅ Abu Dhabi (ADSMI) 4,546.03 -0.1% -0.8% 0.5% -0.0% ˄ ˅ ˄ Saudi (SASEIDX) 6,936.37 -0.7% -0.0% -1.1% -3.8% ˄ ˅ ˄ Kuwait (KWSE) 6,744.67 -0.4% 0.3% -1.4% 17.3% ˅ ˄ ˄ Egypt (EGX30) 12,791.83 1.1% -1.2% 2.9% 3.6% ˄ ˅ ˄ Qatar (DSM) 10,123.00 -0.1% 0.2% 0.6% -3.0% ˄ ˅ ˅ Bahrain (BHSEIDX) 1,309.86 0.1% 0.1% -1.9% 7.3% ˅ ˄ ˄ Oman (MSM30) 5,401.59 -0.2% -0.2% -2.0% -6.6% ˅ ˅ ˅ 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) 200 273 479 74 102 173 80,156 Abu Dhabi (ADSMI) 49 81 128 26 50 61 134,648 Saudi (SASEIDX) 159 178 224 705 854 1,052 439,013 Kuwait (KWSE) 46 300 355 21 82 103 75,578 Egypt (EGX30) 448 270 341 75 83 91 19,241 Qatar (DSM) 7 11 10 55 90 81 128,756 Bahrain (BHSEIDX) 1 5 5 2 3 3 20,208 Oman (MSM30) 19 17 17 7 11 10 16,164 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 Wednesday , May 24, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 14.0 386.2 8.8 300 8 239.3 188.3 4 1.1 Current 489.3 11.3 11.4 9.0 1.5 1.8 1.9 1.4 0.8 1.0 Egypt Qatar Bahrain Oman - - - 178.1 106.9 87.2 1.4 0 0 Dubai Abu Dhabi Saudi Kuwait Average Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain Oman Average Year to Date Perfomance Dividend Yield 8% 6% Previous 600 13.5 11.3 12 PB 27% 5.1% 5.8% 5.4% 4.2% 7.3% 9% 4.0% 4% 17.3% 18% 3.6% 3.4% 3.1% 0% 0.0% 2% -9% 0.0% -3.0% -3.8% -4.7% -6.6% 0.0% 0% -18% 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 Wednesday , May 24, 2017 Dubai Top Performers by Country (* indicates native currency; Latest data) Close DoD % Volume Value DUBAI FINANCIAL MARKET PJSC 1.12 -3.57% 18,185 20,744 1,736 GULF GENERAL INVESTMENT CO PSC 0.38 -3.39% 2,474 964 1,366 3,531 DXB ENTERTAINMENTS PJSC 0.83 -2.18% 16,179 13,497 15,793 17,926 AMLAK FINANCE PJSC 0.95 -2.11% 1,184 1,137 5,431 15,614 SHUAA CAPITAL PSC 1.48 -2.03% 1,076 1,610 DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) 0.42 2.38% 6,462 2,683 COMMERCIAL BANK INTERNATIONAL 1.58 -5.06% 30 49 0.67 1.49% 177 118 UNITED ARAB BANK PJSC 1.56 -3.85% 100 159 ABU DHABI COMMERCIAL BANK PJSC 7.30 0.68% 456 3,319 SUDATEL TELECOM GROUP LTD 0.59 -3.39% 676 406 EMIRATES TELECOMMUNICATIONS 17.40 0.29% 749 13,019 SHARJAH CEMENT AND INDUSTRIAL 1.01 -2.97% 50 51 RAS AL KHAIMAH CEMENT CO PSC 0.80 -2.50% 94 76 Close * DoD % Volume ('000) Value (SAR ‘000) GULF GENERAL COOPERATIVE INSUR 16.35 -4.59% 422 7,061 AXA COOPERATIVE INSURANCE CO 23.85 -4.40% 210 5,121 Top Gainers Close DoD % Volume Value AMANAT HOLDINGS PJSC 1.12 2.68% 0 27,214 NATIONAL CENTRAL COOLING CO PJSC 1.89 1.59% 0 EMAAR MALLS GROUP PJSC 2.60 1.15% AJMAN BANK PJSC 1.14 0.88% DAMAC PROPERTIES DUBAI CO PSC 2.88 0.35% Close * DANA GAS PJSC ARKAN BUILDING MATERIALS CO PJSC Abu Dhabi Top Gainers DoD % Volume ('000) Value (SAR ‘000) AL ANDALUS PROPERTY CO SJSC 21.25 6.12% 2,939 60,656 DEVELOPMENT WORKS FOOD CO 87.00 4.60% 5 385 SAUDI INDUSTRIAL DEVELOPMENT CO 11.65 2.58% 2,135 24,557 TABUK AGRICULTURAL DEVELOPMENT 13.80 -4.35% 2,995 42,273 GULF UNION COOPERATIVE INSUR 17.97 1.85% 1,250 22,250 NATIONAL MEDICAL CARE COMPANY 49.20 -4.07% 803 40,353 KNOWLEDGE ECONOMIC CITY CO SJSC 17.30 1.73% 1,001 17,176 ALJAZIRA TAKAFUL TAAWUNI CO SJSC 28.10 -3.91% 285 8,159 Top Gainers Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) NATIONAL CONSUMER HOLDING CO 90.00 18.89% 0 0 AL MASSALEH REAL ESTATE CO KSCP 48.00 -18.75% 0 0 KUWAIT CEMENT CO KSCP 401.00 12.22% 2 1 FUTURE KID ENTERTAINMENT 118.00 -15.25% 0 0 KUWAIT AND GULF LINK TRANSPORT 64.50 5.43% 150 9 WETHAQ TAKAFUL INSURANCE CO 52.00 -13.46% 0 0 ALAFCO AVAIATION LEASE AND FINAN 275.00 4.00% 234 63 MENA REAL ESTATE CO KSCP 28.50 -11.58% 2,762 84 KUWAIT SYRIAN HOLDING CO KSC 35.00 4.00% 55 2 AUTOMATED SYSTEMS CO KPSC 215.00 -6.98% 2 0 Close DoD % Volume Value Close DoD % Volume Value EGYPTIAN FINANCIAL & INDUSTRIAL 15.85 7.00% 1,183 18,136 DEVELOPMENT AND ENGINEERING 10.02 -6.99% 8 81 AMER GROUP HOLDING CO SAE 0.30 6.67% 101,984 29,639 EFG HERMES HOLDINGS SAE 26.32 -6.12% 15,921 432,694 PORTO GROUP HOLDING SAE 0.32 6.25% 142,251 44,182 ARAB CO FOR LAND RECLAMATION 5.95 -6.05% 2 11 SABAA INTERNATIONAL COMPANY 3.69 5.15% 11 40 QALAA HOLDINGS SAE 0.86 -4.65% 53,806 47,402 AL EZZ CERAMIC AND PORCELAIN CO 7.26 5.10% 118 835 DELTA SUGAR CO SAE 18.98 -4.53% 11 204 Close DoD % Volume Value Close * DoD % Volume ('000) Value (QAR ‘000) QATAR ISLAMIC INSURANCE CO QSC 62.50 2.88% 110 6,749 ZAD HOLDING CO SAQ 79.00 -4.43% 17 1,342 QATAR OMAN INVESTMENT CO QSC 9.10 2.20% 0 1 QATAR ELECTRICITY AND WATER CO 215.00 -1.86% 4 864 QATAR NATIONAL BANK SAQ 140.30 1.21% 162 22,636 WIDAM FOOD CO QSC 62.40 -1.12% 39 2,434 GULF INTERNATIONAL SERVICES QSC 23.80 0.80% 139 3,296 MEDICARE GROUP QSC 95.00 -1.05% 28 2,717 ISLAMIC HOLDING GROUP QSC 65.50 0.61% 35 2,318 AL KHALEEJ TAKAFUL GROUP QSC 19.70 -1.02% 12 231 Saudi Arabia Kuwait Top Gainers Egypt Top Losers Close * Top Gainers Top Gainers Qatar Top Losers Data & Charts Source: Thomson Reuters Top Losers Top Losers Top Losers 3
4. MENA Morning Report Wednesday , May 24, 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 78,604 98.25 -0.5% 7.4% 2,647 69,357 102.50 76.00 15 1.8 4.1% 2 Emirates Telecommunications Group Co AE 41,320 17.45 0.3% -7.2% 749 3,560 20.20 17.20 17 3.4 4.6% 3 Saudi Telecom Company SJSC SA 37,335 70.00 0.0% 0.0% 178 3,315 74.00 51.00 0 0.0 0.0% 4 Qatar National Bank SAQ QA 36,020 142.00 1.2% -4.1% 162 6,330 157.27 121.36 10 1.9 2.2% 5 First Abu Dhabi Bank PJSC AE 33,083 11.15 0.0% 11.6% 2,153 6,535 11.55 7.60 11 1.3 4.0% 6 Al Rajhi Banking & Investment Corp SA 27,085 62.50 -0.8% -0.8% 2,155 35,924 67.50 48.60 12 2.0 3.6% 7 Saudi Electricity Company SJSC SA 26,001 23.40 0.0% 4.5% 1,076 6,714 25.80 14.30 12 1.4 3.0% 8 National Commercial Bank SJSC SA 22,295 41.80 0.0% -1.9% 517 5,759 45.00 32.00 9 1.4 3.8% 9 DP World Ltd AE 18,534 22.33 -0.6% 27.5% 827 5,031 22.50 15.53 19 2.1 1.7% 10 Industries Qatar QSC QA 17,413 104.80 -0.2% -10.8% 169 4,872 122.00 94.50 20 2.0 3.8% 11 Jabal Omar Development Co SJSC SA 16,730 67.50 -0.4% -9.7% 119 2,134 76.00 46.00 72 6.1 0.0% 12 Almarai Co SJSC SA 16,481 77.25 -0.6% 12.8% 123 2,534 77.75 51.50 30 4.8 0.0% 13 Emaar Properties PJSC AE 14,289 7.33 -1.5% 2.8% 2,334 4,659 7.79 5.95 10 1.2 2.0% 14 National Bank of Kuwait SAKP KW 13,371 685.00 0.0% 10.7% 458 1,034 723.81 523.81 14 1.3 4.2% 15 Saudi Arabian Mining Co SJSC SA 13,025 41.80 -2.6% 7.2% 609 6,788 44.00 27.80 692 1.9 0.0% 16 Emirates NBD Bank PJSC AE 12,181 8.05 -1.8% -5.2% 4,015 8,800 9.00 7.60 7 0.8 5.0% 17 Samba Financial Group SJSC SA 11,627 21.80 -0.7% -10.5% 291 1,690 25.20 15.90 9 1.0 4.4% 18 Ezdan Holding Group QSC QA 11,291 15.50 -0.7% 2.6% 1,386 5,898 20.24 14.63 19 1.3 3.2% 19 Emirates Islamic Bank PJSC AE 11,089 7.50 0.0% 0.0% 6 11 11.95 1.57 137 5.9 0.0% 20 Abu Dhabi Commercial Bank PJSC AE 10,403 7.35 0.7% 6.5% 456 913 7.68 5.66 9 1.3 5.4% 21 Kingdom Holding Co SA 10,180 10.30 -1.0% -13.8% 31 86 12.95 9.90 71 1.3 4.9% 22 Kuwait Finance House KSCP KW 9,434 496.00 0.8% 1.0% 3,074 5,029 572.73 400.00 13 1.6 0.0% 23 Ooredoo QSC QA 9,334 106.10 0.1% 4.2% 19 555 116.10 81.50 18 1.5 3.3% 24 Emaar Malls Group PJSC AE 9,319 2.63 1.2% 0.4% 1,366 978 3.00 2.47 18 2.1 3.8% 25 Saudi British Bank SJSC SA 9,160 22.90 -0.9% 0.0% 241 1,474 25.90 16.40 9 1.1 0.0% 26 Masraf Al Rayan QSC QA 9,104 44.20 0.2% 17.6% 763 9,260 44.40 32.50 16 2.8 4.5% 27 Banque Saudi Fransi SJSC SA 8,676 27.00 0.0% 3.4% 6 41 27.50 18.00 9 1.1 3.9% 28 Yanbu National Petrochemicals Co SJSC SA 8,363 55.75 0.9% 3.2% 349 5,190 61.75 37.00 13 2.0 5.4% 29 Riyad Bank SJSC SA 8,280 10.35 0.0% -10.4% 170 469 11.80 8.55 10 0.8 6.3% 30 Dubai Islamic Bank PJSC AE 7,818 5.81 -0.9% 4.3% 2,439 3,858 6.29 4.90 9 1.2 7.7% Company Name Total M-Cap; W. Avg Yield 557,847 3.1% 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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