UAE: Daily Market Trading Report - 4 October

Transcription

1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 3M 04 October 2020 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 4,492 -0.6% -0.7% 4.8% -11.1% ADX 259 259 DFM 2,266 -0.3% 0.6% 9.8% -18.5% Local 52% 70% -19% TASI 8,295 0.0% 5.0% 14.4% 3.0% Foreign 48% 30% 19% BHSEASI - 1,432 -0.1% 1.9% 12.6% -5.5% Institutional 86% 87% -1% EGX 11,051 0.6% -1.6% 2.7% -23.8% Retail 14% 13% 1% Dow Jones 27,683 -0.5% -4.9% 7.2% 6.2% DFM 151 151 S&P 500 3,348 -1.0% -6.5% 7.0% 16.0% Local 61% 54% 7% Nasdaq 11,075 -2.2% -8.1% 8.5% 42.3% Foreign 39% 46% -7% 5,902 0.4% -0.7% -5.4% -17.1% Institutional 18% 19% -1% 12,689 -0.3% -4.2% 0.6% 6.4% Retail 82% 81% 1% Total 410 410 - Local 55% 64% -9% Foreign 45% 36% 9% FTSE 100 DAX CAC40 4,825 0.0% -4.1% -4.4% -11.0% Nikkei225 23,030 -0.7% -0.9% 4.0% 5.7% HIS 23,459 0.0% -6.6% -6.6% -9.9% # Upcoming Corporate Actions & Events Date Company Event 04-Oct IHC BoD/General 06-Oct TABREED General Assembly 14-Oct SALAMA General Assembly 14-Oct SHUAA General Assembly 12-Nov GFH BoD/Results 12-Nov ITHMAAR BoD/Results -
2. # KEY STORIES UAE on October 03 reported 1,231 new cases of the Covid-19, along with 1,051 recoveries. Total cases in the country at 97,760 with 87,122 recoveries and 426 deaths Air Arabia has announced the launch of a new direct flight from Sharjah to Tashkent, Uzbekistan capital city, starting November 4th, 2020 SHUAA launches three Sharia-compliant funds in ADGM and secures USD 75mln of commitments Mashreq Bank, Noon.com announce long-term strategic partnership to launch UAE’s first e-commerce co-branded credit card S&P says Dubai's economy will contract by around 11% in 2020, owing mainly to the Covid19 impact on its travel and tourism industry. The Dubai government now expects to post a deficit of AED 12bln (3.2% of GDP) this year Mubadala confirmed that it had picked up 1.4pct stake in Reliance Retail Ventures for AED 3.1bln, marking its second significant investment in three months in Reliance Group The UAE, the USA and Israel issued a joint statement about developing a joint strategy in the energy sector – WAM 1.7mln Middle East workers to lose jobs as airlines get pummelled - IATA Saudi Arabia will exempt real estate transactions from a 15% value-added tax and instead impose a new 5% tax on property deals, said a royal order issued by King Salman on Friday Saudi Stock Exchange disclosed that in September, foreigners bought SAR 427.5mln of stocks on a net basis Saudi’s Rabigh Refining and Petrochemical Company signed joint revolving loans and facility agreements valued at SAR 7.5bln Saudi’s CMA approves Saudi Arabian Amiantit request to reduce capital to SAR 200mln from SAR 344.5mln and also to increase capital by way of rights issue valued at SAR120mln Kuwait central bank affirmed on Saturday its commitment to the strength of the dinar and the stability of its exchange rate Egypt’s Ezz Steel posted Q2 consolidated attributable net loss EGP 984.1mln vs loss of EGP 1.02bln year ago. Q2 consolidated net sales EGP 7.04bln vs EGP 13.28bln year ago Egypt’s Alaa Holdings posted Q2 consolidated net loss after minority EGP 712.1mln vs loss of EGP 224.5mln year ago. Q2 consolidated revenue EGP 7.43bln vs EGP 3.62bln year ago
3. # Key Global Trends/ Market Clues Global equity markets slumped and investors piled into gold and the Japanese yen on Friday after U.S. President Donald Trump tested positive for the coronavirus, adding to market uncertainty just 32 days before the U.S. election. Gold posted its best week in eight even after paring gains, while the yen advanced sharply before also retreating a bit. Yields on the 10-year U.S. Treasury note rose slightly, stuck in a narrow trading range it has held for three weeks. The main U.S. stock indexes fell but regional ones in Europe ended slightly higher after an initial sell-off on the Trump news. The FTSEurofirst 300 index rose 0.22% to 1,405.35 and the STOXX Europe 600 added 0.25% to 362.69. MSCI's benchmark for global equity markets fell 0.69% to 564.07, while its emerging markets index fell 0.29%. On Wall Street, the Dow Jones Industrial Average fell 0.48%. The S&P 500 lost 0.96% and the Nasdaq Composite dropped 2.22%. Oil prices fell more than 4% on Friday, and posted a second weekly decline after U.S. President Donald Trump tested positive for COVID-19, roiling risky assets, and as rising global crude output threatened to overwhelm the market's weak recovery. Benchmark Brent and U.S. crude each posted a second straight week of losses. The uncertainty surrounding the U.S. president's health added to a series of jitters, including a lackluster U.S. unemployment report and increased supply from major world oil producers. Brent crude was down USD 1.66, or 4.1%, at USD 39.27 a barrel. Brent was down 7% on the week. U.S. oil settled down USD 1.67, or 4.3% at USD 37.05 a barrel, an 8% drop on the week. Both benchmarks were down for a second consecutive week. Russian oil and gas condensate production edged up to 9.93mln barrels per day (bpd) from an average of 9.86mln bpd in August, two sources familiar with the preliminary data told Reuters. # UAE Stories The United Arab Emirates on October 03 announced 1,231 new COVID-19 cases, bringing the total confirmed cases in the country to 97,760. At the same time, 1,051 more patients have recovered from the virus, taking the tally of recoveries in the UAE to 87,122, UAE's Ministry of Health and Prevention said. It has reported 2 death from COVID-19 during the past 24 hours. The nationwide death toll stands at 426. Air Arabia has announced the launch of a new direct flight from Sharjah to Tashkent, Uzbekistan capital city, starting November 4th, 2020. SHUAA launches three Sharia-compliant funds in ADGM and secures USD 75mln of commitments. Mashreq Bank, Noon.com announce long-term strategic partnership to launch UAE’s first e-commerce cobranded credit card Dubai's economy will contract by around 11% in 2020, owing mainly to the Covid-19 impact on its travel and tourism industry, the sector most affected by the pandemic, according to an S&P Global Ratings report. As per S&P estimate, Dubai's gross general government debt will reach about 77% of GDP in 2020. Low oil prices have had broad effects on GCC economies, of which Dubai is one, but hydrocarbons directly contribute only about 1% to Dubai's total GDP. Although Dubai's economy is somewhat more diversified than that of most its regional peers, the report anticipates an economic contraction of around 11% of GDP in 2020, recovering to 2019 levels by 2023. STR Global, a data intelligence and benchmarking firm, reported Dubai's hotel occupancy rate at 26% in June as inbound tourism sharply declined following global lockdowns and muchreduced air travel designed to curb the spread of Covid-19. The fact that fewer residents left Dubai during the hot summer months and instead spent more domestically to some extent has supported the economy. Local support for the economy cannot, however, offset the almost complete shutdown of inbound international tourism for most of 2020, and the likely slow recovery of the long-haul aviation that Dubai specializes in. The Dubai government now expects to post a deficit of AED 12bln (3.2% of GDP) this year, largely owing to the reduction in economic activity and the consequent expected 28% decline in revenue, stated S&P Global Ratings. It also expects significant off-balance-sheet expenditure, resulting in the government's net debt position worsening by more than what the headline deficit would imply, as has occurred in previous years. Mubadala confirmed that it had picked up 1.4pct stake in Reliance Retail Ventures for AED 3.1bln, marking its second significant investment in three months in Reliance Group controlled by Asia's richest man. Mubadala
4. is the fourth global investor in RRVL , which already has secured around USD 2.67bln from KKR & Co, Silver Lake Partners and General Atlantic in deals, valuing it at a pre-money equity value of INR 4.285trn. The United Arab Emirates, the United States and Israel issued a joint statement on Thursday about developing a joint strategy in the energy sector, the state news agency (WAM) reported. The statement, issued by energy ministers, also stressed that countries will seek solutions for energy challenges the Palestinian people face by developing energy resources, technologies, and related infrastructure. The Middle East’s aviation industry is heading for more job losses, as the air traffic continues to suffer due to the coronavirus pandemic, the International Air Transport Association (IATA) said. Before the end of the year, an estimated 1.7mln people are expected to be out of employment, the air transport body’s latest research revealed. The number is half of the region’s 3.3mln workers in aviation and related industries. Within the aviation industry alone, some 323,000 jobs will be lost, while the gross domestic product (GDP) supported by aviation in the region will plummet by up to USD 105bln. # GCC/ MENA Saudi Arabia will exempt real estate transactions from a 15% value-added tax and instead impose a new 5% tax on property deals, said a royal order issued by King Salman on Friday. Saudi Stock Exchange disclosed that in September, foreigners bought SAR 427.5mln of stocks on a net basis. Foreigners bought SAR 18.07bln of stocks and sold SAR 17.64bln of stocks. Saudi institutions bought SAR 3.66bln of stocks on a net basis. Saudi institutions bought SAR 14.40bln of stocks while sold SAR 10.74bln of stocks. Saudi’s Rabigh Refining and Petrochemical Company signed joint revolving loans and facility agreements valued at SAR 7.5bln. Saudi Aramco facility agreement valued at SAR 1,875mln (the lender is Saudi Aramco). Shareholder revolving loan agreement with Saudi Aramco valued at SAR 2,812.5mln (the lender is Saudi Aramco). Shareholder revolving loan agreement with Sumitomo chemical valued at SAR 2,812.5mln (the lender is Sumika Finance). Saudi’s CMA approves Saudi Arabian Amiantit request to reduce capital to SAR 200mln from SAR 344.5mln and also to increase capital by way of rights issue valued at SAR120mln. Kuwait central bank affirmed on Saturday its commitment to the strength of the dinar and the stability of its exchange rate. The central bank said that "in light of recent online reports falsely speculating on the intent to devalue the national currency, [it] reiterates its commitment to maintaining the Kuwaiti dinar exchange rate at a level that protects its purchasing power." It will also continue adhering to policies that aim to bolster the local currency and maintain monetary and financial stability in the country, the central bank added. Egypt’s Ezz Steel posted Q2 consolidated attributable net loss EGP 984.1mln vs loss of EGP 1.02bln year ago. Q2 consolidated net sales EGP 7.04bln vs EGP 13.28bln year ago. Egypt’s Alaa Holdings posted Q2 consolidated net loss after minority EGP 712.1mln vs loss of EGP 224.5mln year ago. Q2 consolidated revenue EGP 7.43bln vs EGP 3.62bln year ago. Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian business
5. # UAE FOCUS LIST - COMPANY DATA MCAP Company PRICE HIGH - LOW 52WH 52WL VALUATION TTM P/E DIV TTM P/B YLD (%)^ HISTORICAL RETURN 1M% 3M% 6M% 12M% ADCB 39,170 5.63 8.15 3.82 10.64 0.74 6.7% 0.9 13.1 28.0 (22.0) ADIB 15,327 4.22 5.85 3.19 9.23 0.83 6.5% 5.0 12.8 18.3 (11.5) 2,081 3.65 4.00 2.70 5.86 0.95 8.2% (5.2) 15.9 (1.4) 21.7 44,000 3.52 3.57 2.40 22.50 12.78 5.4% 10.3 18.5 32.4 40.8 Agthia 2,142 3.57 3.70 2.50 22.49 1.13 4.2% 17.0 23.1 39.7 4.4 Air Arabia 5,273 1.13 1.61 0.87 10.51 1.29 8.0% (1.7) (6.6) 25.0 0.1 Ajman Bank 1,470 0.70 0.94 0.50 39.77 0.59 0.0% 1.2 16.7 29.4 (23.4) Al Waha Capital 1,896 0.98 1.03 0.62 NA 0.64 NA 1.2 42.3 21.9 (3.5) Aldar Properties 15,804 2.01 2.37 1.35 9.06 0.65 7.2% (2.0) 12.3 34.9 10.0 Amanat Holdings 2,000 0.80 0.92 0.56 78.35 0.80 2.8% (6.7) (9.1) 33.0 (8.7) 470 0.31 0.64 0.20 NA 0.72 0.0% (2.8) 7.9 36.7 (19.1) Aramex 6,164 4.21 4.45 2.00 14.40 2.45 3.9% 16.9 28.4 93.9 9.5 Bank of Sharjah 1,113 0.53 0.83 0.53 NA 0.36 0.0% NA (13.8) (19.7) (35.6) DAMAC Properties 5,512 0.91 0.98 0.36 NA 0.40 NA 2.8 24.1 91.8 (0.3) Dana Gas 4,988 0.71 0.98 0.53 NA 0.54 7.7% (3.8) 11.8 36.8 (19.2) Deyaar Development 1,647 0.29 0.43 0.18 31.18 0.36 0.0% (5.6) 2.5 35.7 (12.6) Dubai Financial Market 6,744 0.84 1.00 0.50 50.15 0.88 3.0% (2.3) 2.7 58.8 3.0 Dubai Investment 4,890 1.15 1.39 0.98 9.60 0.42 NA (5.0) (0.0) 14.9 (2.3) Dubai Islamic Bank 31,280 4.32 5.86 3.04 7.56 0.86 8.1% 4.3 12.8 26.3 (9.4) DXB Entertainments 1,024 0.13 0.23 0.09 NA 0.50 0.0% 3.2 1.6 8.5 (37.6) Emaar Dev 9,560 2.39 4.16 1.79 4.06 0.90 0.0% 6.2 14.4 15.5 (41.6) Emaar Malls 19,261 1.48 1.96 0.98 12.83 1.03 0.0% 6.5 6.5 43.7 (21.3) Emaar Properties 20,190 2.82 4.70 1.90 3.96 0.36 0.0% (1.7) 3.7 33.6 (37.3) Emirates Integrated Tele 24,024 5.30 6.35 4.33 17.31 2.91 6.4% 1.5 6.6 2.7 1.0 Emirates NBD 66,324 10.50 13.90 6.33 5.83 0.81 3.8% (3.7) 18.0 52.2 (11.3) (22.8) ADNIC ADNOC Dist Amlak Finance Eshraq Investments (A EDm) (A ED) 700 0.30 0.46 0.16 NA 0.51 NA (21.0) 33.8 52.0 Etisalat 144,540 16.62 17.00 11.02 16.40 3.19 4.8% 0.4 0.9 22.7 7.1 First Abu Dhabi Bank 121,649 11.14 15.92 7.78 11.59 1.25 6.6% (2.8) (0.0) 14.3 (22.0) 2,150 0.60 0.93 0.45 0.35 0.63 5.7% (5.7) 7.0 20.4 (27.7) 448 0.44 0.73 0.28 NA 0.83 0.0% (9.8) (14.4) 43.3 (36.9) 69,761 38.30 40.90 5.00 NM 14.87 NA 2.1 30.3 158.8 666.0 GFH Gulf Navigation Holding IHC Julphar 1,513 1.31 1.54 0.54 NA 1.40 0.0% 5.6 14.9 95.9 20.3 11,140 62.75 86.80 62.00 8.08 0.52 6.4% (6.2) (6.2) (12.8) (4.9) National Bank of Fujairah 9,536 4.98 4.98 4.98 NA NA 1.9% NA NA NA 3.3 Tabreed 5,974 2.20 2.34 1.67 12.00 1.24 4.8% 4.8 12.8 0.9 25.7 RAK Bank 5,950 3.55 5.00 3.33 7.04 0.80 8.5% 1.7 (4.6) (4.2) (15.8) 762 0.38 0.48 0.33 6.83 0.20 10.5% (3.3) 7.3 7.0 (6.7) RAK Ceramics 1,351 1.36 1.81 1.24 15.30 0.60 10.5% (7.5) 2.3 1.5 2.0 SALAMA 1,047 0.87 0.88 0.30 15.41 1.35 NA 18.8 72.3 138.0 44.1 Sharjah Islamic Bank 3,605 1.17 1.29 0.95 7.12 0.48 4.1% (1.7) 5.4 18.2 6.5 SHUAA Capital 1,595 0.63 1.03 0.40 22.42 1.21 NA (2.5) 21.4 42.6 (33.1) Mashreqbank RAK Properties Takaful Emarat Insurance 215 1.43 1.46 0.97 NA 1.78 5.8% (2.1) 6.7 2.1 2.9 155,159 1.38 1.65 0.40 NA 4.90 0.0% (6.8) 106.3 134.3 97.1 Union Properties 1,253 0.29 0.39 0.15 NA 0.49 0.0% (5.8) (1.4) 43.1 (2.7) United Arab Bank 1,844 0.89 1.13 0.81 NA NA 0.0% NA - (0.2) (10.6) TAQA (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
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