MENA Market Report - 30 January

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1. MENA Morning Report Monday , January 30, 2017 Overview Regional Markets: MENA markets closed the trading session on a positive note as five out of the eight indexes closed in the green, while three ended down. Investors continue to focus on individual markets, especially with positive momentum and potential for catching up with other regional markets after a slow start to 2017. Saudi Arabia closed on a positive note as it was up by 0.7% for the day, adding to 3.8% of gains recorded in the previous week. The index has almost recovered the losses incurred during the first two weeks of 2017 as the market is playing out the catch up game and expected to end the month of January up , in line with the trend seen in other regional markets. Kuwait continues its bull run as the index was up by 1.3% for the day, adding to the gains of 6.5% in the previous week and extending the annual gains to around 21%. Egypt was another index that closed up by 0.5% for the day as investors are hopeful about additional reform measures being introduced to stimulate economic activity. UAE markets closed on a negative note as Dubai and Abu Dhabi were both down by 1.0% and 0.8% respectively for the day. Both indexes witnessed strong selling pressure in speculative stocks, especially small cap, which have rallied in the past couple of months. Qatar was another index to remain under pressure as it was down by 1.0% for the day, dragged lower by banking sector stocks. Bahrain and Oman closed up by 0.2% each for the day. International Markets: At the time of writing this report, Asian markets are closed for a public holiday to mark the Chinese New Year. Headlines (WW) U.S. Economy Slows On Wider Trade Gap; Business Spending Rises (GCC) GCC bank profits expected to improve in 2017 (WW) China's economic model cracking under pressure (GCC) Europe set to launch trade talks with GCC (WW) Investors upbeat on data, Fed; wary of Trump (SA) Saudi employers to be penalised for holding expats' passports (WW) Mainland firms expand property footprint in Hong Kong, set to fuel price rises (SA) Saudi money supply growth picks up as economy strengthens (WW) Putin and Trump agree to try to rebuild U.S.-Russia ties (SA) Saudi Aramco Said to Weigh Up to $5 Billion Renewable Deals (WW) Euro zone bailout fund - Greek public debt is manageable (SA) Saudi expats' remittances exceed $40bn in 2016 (WW) Germany urges EU to speed trade deals, mainly in Asia, after Trump, Brexit (AE) UAE credit demand eased slightly but seems to have stabilized in Q4- c.bank (WW) Better Forecasts Not Enough for Carney in Brexit’s Long Shadow (AE) Ease of doing business in Dubai attracts investors (WW) Switzerland eyeing pro-Brexit trade deal with UK (EG) Record Egypt-Tied Note Issuance Highlights IMF Loan Cheer (WW) Brazil faces unemployment, austerity and scandal, struggles to Keep It Together (EG) Egyptian billionaire Sawiris markets Cyprus real estate project to UAE investors (CMD) World Gold Mine Supply Tracking Lower, Top Quality Projects Shrinking (KW) Kuwait lawmakers criticise proposal to tax expat remittances (CMD) US border tax ideas roil oil markets (KW) Kuwait Extends World-Topping Rally as Traders Dismiss U.S. Ban (FX) Interbank rate drops by 6.5% on liquidity injection (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,666.16 -1.0% -1.0% 3.8% 3.8% ˄ ˄ ˄ Abu Dhabi (ADSMI) 4,586.55 -0.8% -0.8% 0.9% 0.9% ˄ ˄ ˄ Saudi (SASEIDX) 7,183.25 0.7% 0.7% -0.4% -0.4% ˄ ˄ ˄ Kuwait (KWSE) 6,943.24 1.3% 1.3% 20.8% 20.8% ˄ ˄ ˄ Egypt (EGX30) 13,161.52 0.5% 0.5% 6.6% 6.6% ˄ ˄ ˄ Qatar (DSM) 10,884.70 -1.0% -1.0% 4.3% 4.3% ˄ ˄ ˄ Bahrain (BHSEIDX) 1,302.37 0.2% 0.2% 6.7% 6.7% ˄ ˄ ˄ Oman (MSM30) 5,763.38 0.2% 0.2% -0.3% -0.3% ˄ ˄ ˅ 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) 501 729 496 211 246 170 86,142 Abu Dhabi (ADSMI) 140 205 136 61 73 55 121,821 Saudi (SASEIDX) 210 303 246 1,081 1,344 1,071 444,495 Kuwait (KWSE) 770 298 182 248 88 60 75,578 Egypt (EGX30) 413 495 340 74 98 72 18,783 Qatar (DSM) 4 8 8 41 69 73 139,706 Bahrain (BHSEIDX) 6 4 3 3 3 2 20,112 Oman (MSM30) 8 14 15 4 8 8 17,095 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 Monday , January 30, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 12 14.3 13.1 PB Previous 13.7 489.3 11.8 11.3 386.2 9.8 8.8 300 8 239.3 188.3 4 1.3 Current 600 1.4 2.3 1.7 1.6 - - 0.9 1.2 Bahrain Oman - 178.1 0 106.9 87.2 1.5 0 Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Average Dubai Abu Dhabi Saudi Kuwait 27% 5.5% 4.6% 4.0% 9% 3.7% Oman Average 20.8% 3.8% 3.1% 6.6% 0.9% 4.3% 6.7% 0% 1.9% 2% Bahrain 18% 5.2% 4% Qatar Year to Date Perfomance Dividend Yield 8% 6% Egypt -0.3% -0.4% -9% 0.0% 0.0% -18% 0% 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 Monday , January 30, 2017 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) EMIRATES ISLAMIC BANK PJSC 2.73 14.65% 1 3 TAKAFUL EMARAT INSURANCE PJSC 2.35 8.09% 3,026 6,844 AL SALAM BANK SUDAN PLC 1.88 6.38% 3,860 EMIRATES INTEGRATED TELECOMM 5.98 1.34% ARAMEX PJSC 4.09 0.98% Close * DoD % Volume ('000) Value (AED ‘000) SUDATEL TELECOM GROUP LTD 0.69 8.70% 17,399 ABU DHABI NATIONAL INSURANCE CO 2.40 8.33% FOODCO HOLDING PJSC 6.00 SHARJAH ISLAMIC BANK PJSC 1.54 UNION CEMENT CO PSC Close DoD % Volume Value SHUAA CAPITAL PSC 1.63 -9.82% 4,043 6,949 DAR AL TAKAFUL PJSC 1.20 -5.83% 1,832 2,267 0 UNION PROPERTIES PJSC 1.12 -3.57% 17,581 20,055 213 0 DUBAI INVESTMENTS PJSC 2.54 -3.15% 5,476 14,136 1,360 5,535 GULF GENERAL INVESTMENT CO PSC 0.53 -3.01% 3,752 2,027 Top Losers Close * DoD % Volume ('000) Value (AED ‘000) 0 INTERNATIONAL FISH FARMING HOLD 3.24 -9.88% 6,360 21,735 15 0 RAS AL KHAIMAH CEMENT CO PSC 0.95 -8.42% 127 126 6.67% 450 2,616 ESHRAQ PROPERTIES COMPANY PJSC 1.14 -7.02% 39,417 46,631 3.25% 2,672 0 ARKAN BUILDING MATERIALS CO PJSC 0.94 -6.38% 7,093 6,895 1.25 3.20% 27 0 AGTHIA GROUP PJSC 7.24 -5.52% 197 1,468 Close * DoD % Volume ('000) Value (SAR ‘000) Close DoD % Volume Value NAMA CHEMICALS CO SJSC 4.00 10.00% 1,851 7,067 AL SORAYAI TRADING AND INDUS 13.80 -5.07% 6,965 98,683 ALLIANZ SAUDI FRANSI COOPERATIVE 31.20 9.62% 1,337 39,898 SAUDI AIRLINES CATERING CO SJSC 94.50 -2.38% 244 23,306 SAUDI ARABIAN AMIANTIT CO SJSC 7.15 9.09% 4,171 28,580 KNOWLEDGE ECONOMIC CITY CO SJSC 20.50 -1.71% 689 14,241 UMM AL QURA CEMENT CO SJSC 21.15 7.09% 3,978 81,351 NATIONAL GAS AND INDUSTRIAL 36.50 -1.37% 488 17,926 SAUDI INDUSTRIAL DEVELOPMENT CO 10.25 6.83% 5,347 53,054 AL HAMMADI COMPANY 37.30 -1.34% 411 15,435 Top Gainers Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) NAFAIS HOLDING COMPANY KSCP 174.00 11.49% 9 1 AL MUDON INTERNATIONAL REAL 67.00 -7.46% 16,926 1,180 GULF CABLE AND ELECTRICAL INDUS 500.00 10.00% 543 259 MENA REAL ESTATE CO KSCP 41.00 -6.10% 11,792 499 KUWAIT SYRIAN HOLDING CO KSC 52.00 9.62% 11,419 568 NATIONAL SLAUGHTER HOUSE CO 42.00 -5.95% 55 2 HAYAT COMMUNICATIONS CO KSCP 104.00 9.62% 930 92 ARKAN AL KUWAIT REAL ESTATE 93.00 -5.38% 548 52 ENERGY HOUSE HOLDING COMPANY 53.00 9.43% 2,711 137 INTERNATIONAL FINANCIAL ADVISORS 54.00 -3.70% 7,752 427 Close DoD % Volume Value Top Losers Close DoD % Volume Value 0.06 16.67% 94 5 MINAPHARM PHARMACEUTICALS SAE 70.58 -9.32% 0 27 MISR CHEMICAL INDUSTRIES CO SAE 4.37 8.47% 184 771 CAIRO NATIONAL CO 3.81 -8.92% 4 16 NATIONAL CO FOR MAIZE PRODUCTS 11.46 8.29% 22 245 ARABIAN CEMENT CO SAE 9.98 -4.71% 1,537 15,719 ARAB DRUG COMPANY FOR PHARMA 11.02 7.99% 70 745 EL AHRAM CO FOR PRINTING 4.58 -3.71% 160 748 EL NASR TRANSFORMERS AND ELECT 5.57 7.00% 203 1,095 ALEXANDRIA PORTLAND CEMENT CO 7.39 -2.98% 3 20 Close DoD % Volume Value Close DoD % Volume Value AL KHALIJ COMMERCIAL BANK QSC 16.37 1.41% 12 199 MASRAF AL RAYAN QSC 42.50 -3.41% 284 12,290 SALAM INTERNATIONAL INVESTMENT 11.60 1.21% 55 632 GULF INTERNATIONAL SERVICES QSC 31.60 -2.85% 259 8,294 QATAR FUEL QSC 161.00 0.68% 84 13,415 ALIJARAH HOLDING CO QSC 15.89 -2.45% 63 1,020 QATAR GAS TRANSPORT CO LTD 24.50 0.61% 355 8,670 ISLAMIC HOLDING GROUP QSC 60.90 -2.13% 4 247 QATARI GERMAN COMPANY 9.85 0.51% 11 106 MAZAYA QATAR REAL ESTATE DEVEL 14.78 -1.89% 423 6,307 Dubai Top Gainers Abu Dhabi Top Gainers Kuwait Saudi Arabia Top Gainers Top Gainers Egypt TRANS OCEANS TOURS SAE Qatar Top Gainers Data & Charts Source: Thomson Reuters Top Losers Top Losers Top Losers 3
4. MENA Morning Report Monday , January 30, 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 77,400 96.75 -0.3% 5.7% 3,329 85,878 98.50 63.25 16 1.8 4.1% 2 Emirates Telecommunications Group Co AE 42,976 18.15 -0.5% -3.5% 437 2,159 20.20 15.85 17 3.7 4.4% 3 Qatar National Bank SAQ QA 38,629 167.50 -1.4% 2.8% 58 2,663 173.00 133.50 11 2.0 2.1% 4 Saudi Telecom Company SJSC SA 36,533 68.50 -0.7% 0.0% 698 12,757 74.00 51.00 0 0.0 0.0% 5 Al Rajhi Banking & Investment Corp SA 28,817 66.50 1.9% 5.6% 3,195 56,652 67.25 48.60 13 2.2 2.3% 6 Saudi Electricity Co SJSC SA 25,000 22.50 1.1% 0.4% 1,609 9,651 23.95 13.80 44 1.5 0.0% 7 National Commercial Bank SJSC SA 23,520 44.10 0.0% 3.5% 820 9,646 46.30 32.00 10 1.5 3.5% 8 Industries Qatar QSC QA 19,707 118.60 -1.0% 0.9% 18 579 122.00 94.50 21 2.2 4.2% 9 Jabal Omar Development Co SJSC SA 17,535 70.75 1.8% -5.4% 315 5,934 76.00 44.20 108 6.5 0.0% 10 First Gulf Bank PJSC AE 16,050 13.10 -0.8% 1.9% 2,790 9,952 13.50 10.50 10 1.6 7.6% 11 DP World Ltd AE 15,944 19.21 -1.0% 9.7% 40 210 20.00 15.53 16 1.9 1.6% 12 Almarai Co SJSC SA 14,933 70.00 0.4% 2.2% 678 12,651 70.00 46.13 28 4.3 1.3% 13 National Bank of Abu Dhabi PJSC AE 14,879 10.40 -1.0% 4.1% 82 232 10.80 7.50 12 1.2 4.3% 14 Emaar Properties PJSC AE 14,718 7.55 -0.7% 5.9% 3,490 7,175 7.79 4.97 12 1.3 2.0% 15 National Bank of Kuwait SAKP KW 13,858 750.00 1.4% 15.4% 2,721 6,700 750.00 550.00 14 1.3 4.0% 16 Saudi Arabian Mining Co SJSC SA 13,087 42.00 5.3% 7.7% 2,866 32,094 43.20 27.80 122 1.8 0.0% 17 Emirates NBD Bank PJSC AE 13,013 8.60 0.0% 1.3% 630 1,475 9.00 7.10 7 0.9 4.7% 18 Samba Financial Group SJSC SA 12,160 22.80 0.2% -6.4% 956 5,812 25.20 15.90 9 1.1 3.9% 19 Kingdom Holding Co SA 11,562 11.70 2.2% -2.1% 483 1,507 13.15 9.90 85 1.5 0.0% 20 Ezdan Holding Group QSC QA 11,292 15.50 -0.6% 2.6% 437 1,860 20.24 13.50 24 1.4 3.2% 21 Kuwait Finance House KSCP KW 10,827 630.00 3.3% 16.7% 7,554 15,623 630.00 427.27 17 1.8 2.5% 22 Abu Dhabi Commercial Bank PJSC AE 10,771 7.07 -2.2% 2.5% 2,347 4,518 7.68 5.66 9 1.2 6.4% 23 Ooredoo QSC QA 9,590 109.00 0.4% 7.1% 89 2,676 110.00 78.60 16 1.5 2.8% 24 Saudi British Bank SJSC SA 9,240 23.10 0.9% -7.6% 101 621 25.90 16.40 8 1.1 3.2% 25 Emaar Malls Group PJSC AE 9,071 2.56 -0.8% -2.3% 2,654 1,850 3.10 2.30 18 2.1 3.9% 26 Riyad Bank SJSC SA 8,960 11.20 0.0% -3.0% 496 1,480 11.80 8.55 9 0.9 6.3% 27 Yanbu National Petrochemicals Co SJSC SA 8,850 59.00 0.4% 9.3% 345 5,421 59.75 26.50 14 2.0 5.1% 28 Masraf Al Rayan QSC QA 8,456 41.05 -3.4% 9.2% 284 3,204 43.35 32.10 15 2.4 4.9% 29 Banque Saudi Fransi SJSC SA 8,323 25.90 2.4% -0.8% 512 3,537 27.80 18.00 8 1.1 4.1% 30 Dubai Islamic Bank PJSC AE 8,222 6.11 -1.1% 9.7% 5,436 9,043 6.23 4.90 9 1.2 7.4% Company Name Total M-Cap; W. Avg Yield 553,922 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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