UAE: Daily Market Trading Report - 9 October

Transcription

1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 3M 09 October 2019 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 5,070 -0.1% -0.7% 1.2% 1.3% ADX 90 90 DFM 2,797 -0.2% -2.6% 5.3% 0.8% Local 32% 46% -14% TASI 7,833 -0.6% -2.7% -11.3% -1.3% Foreign 68% 54% 14% BHSEASI 1,518 -0.1% -2.0% -1.0% 14.5% Institutional 75% 60% 14% EGX 14,349 -0.6% -3.9% 2.2% 5.5% Retail 25% 40% -14% Dow Jones 26,164 -1.2% -2.4% -2.4% -1.2% DFM 86 86 S&P 500 2,893 -1.6% -2.9% -2.8% 0.3% Local 50% 43% 7% Nasdaq 7,824 -1.7% -3.4% -3.4% 1.1% Foreign 50% 57% -7% FTSE 100 7,143 -0.8% -1.9% -5.4% -1.2% Institutional 60% 49% 12% 11,970 -1.1% -1.8% -4.6% 0.2% Retail 40% 51% -12% DAX CAC40 - - 5,457 -1.2% -2.6% -2.4% 3.0% Total 176 176 - Nikkei225 21,588 1.0% 1.8% 0.2% -9.2% Local 41% 44% -4% HIS 25,893 0.3% -3.0% -8.6% -1.2% Foreign 59% 56% 4% # Upcoming Corporate Actions & Events Date Company Event 09-Oct BOS BoD/Buisness Matters 10-Oct SALAMA BoD/Buisness Matters 13-Oct AIR ARABIA BoD/Buisness Matters 14-Oct MASHREQ BoD/Results 17-Oct KHCB BoD/Buisness Matters 29-Oct OOREDO BoD/Results 06-Nov KHCB BoD/Results 07-Nov ITHMAAR BoD/Results 13-Nov GFH BoD/Results
2. # KEY STORIES Dubai September PMI at 52.6 vs 51.7 in August Aldar Investment Properties, a fully owned subsidiary of Aldar Properties, has hired banks to arrange investor meetings ahead of a planned issue of U.S. dollar-denominated sukuk, or Islamic bonds. Subject to market conditions, it is planning to sell a sukuk with a 10-year maturity and of benchmark size, which generally means upwards of USD500mln DP World said that the USD 538mln first phase of the new Deepwater Port of Posorja in Ecuador is now completed and successfully operational The share of the aviation and tourism sector in UAE economy will more than double in the next two decades to USD128bln from USD47.4bln now - IATA ENOC plans to double the number of its service stations by 2021 from 133 stations currently and looks to add new revenue streams from the launch of on-demand fuel retail Mubadala Investment has not yet decided whether to invest in SoftBank's second large-scale tech investment fund, one of its top executives said on Tuesday Etihad Airways expects to return to profitability in 2023, at the end of a five-year turnaround plan - CCO Dubai recorded a non-oil foreign trade of AED 676bln in the first half of 2019, an increase of 5pct YoY from AED 644bln in the corresponding half last year Saudi Aramco is expected to publish its prospectus before month-end, the Wall Street Journal reports, citing unidentified people familiar with the matter. Saudi central bank vets local lenders ahead of Aramco IPO – sources Saudi Aramco was downgraded to A from A+ by Fitch given that the rating is capped by that of the sovereign, which was downgraded following the drone and missile attack on domestic infrastructure in September. Planned IPO seen as unlikely to have any major effect on company’s financial position, with Fitch seeing Saudi Aramco having capacity to maintain commitment to increase dividend payments to at least $75 billion per year in 2020 and beyond Saudi's Al Khodari announces termination of road project award to link Asfan with Al-Jouf. Financial impact of project contract termination represents loss of approx. SAR36.8mln Saudi’s Raydan Company and Bazeem Trading boards approve to move to main market Saudi’s United Electronics posted Q3 estimated net profit after zakat and tax SAR 27.2mln vs SAR 30.9mln year ago. Q3 estimated sales SAR1.04bln vs SAR894.8mln year ago Kuwait Finance House has received conditional approval from Kuwait's central bank for its proposed acquisition of Bahrain's Ahli United Bank. The deal is contingent on requirements to ensure adherence to Islamic Sharia, transparency and protection of free competition Oman’s Raysut Cement’s unit Pioneer Cement Industries is in process of setting up an integrated cement plant with annual capacity of 1.2m/t in Georgia at estimated cost of plant USD200mln
3. The Egyptian cabinet endorsed the Financial Regulatory Authority 's (FRA) recommendation to reduce regulatory fees on stock trading by 50%, the chairman of the FRA said Egypt’s Fawry Banking and Payment Technology Services posted Q2 consolidated net profit of EGP 10.6mln vs EGP 14.8mln year ago # Key Global Trends/ Market Clues Asian stocks fell the most in a week on Wednesday as the United States and China’s ever-expanding dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3%. Japan’s Nikkei slid 0.81%. Australian shares were down 0.92%. Oil prices slipped for a third consecutive session on Wednesday as the prospect of the United States and China striking a trade deal in talks this week dimmed, raising uncertainties for global economic growth and oil demand. U.S. industry data showing a bigger-than-expected rise in stockpiles at the world's top oil producer also depressed prices. Brent crude futures fell 27 cents, or 0.5%, to USD57.97 a barrel by 0148 GMT. The U.S. government widened its trade blacklist to include some of China’s top artificial intelligence startups, punishing Beijing for its treatment of Muslim minorities and ratcheting up tensions ahead of high-level trade talks in Washington this week. The decision, which drew a sharp rebuke from Beijing, targets 20 Chinese public security bureaus and eight companies including video surveillance firm Hikvision, as well as leaders in facial recognition technology SenseTime Group Ltd and Megvii Technology Ltd. The ongoing trade conflicts could cost the global economy around USD700bln (AED 2.57trn), or 0.8 per cent of its output by 2020 as trade growth across the world comes to “a near standstill”, according to the International Monetary Fund. # UAE Stories Dubai Sept. PMI at 52.6 vs 51.7 in Aug. IHS Markit release purchasing managers’ index for Dubai in September.
4. Index rises to 52 .6 from 51.7 in Aug.; Year ago 54.4. Highest reading since July 2019. New work falls to 53.9 vs 54.8 in Aug. Lowest reading since Feb. 2016. Business expectations fall vs prior month. Lowest reading since Dec. 2018 Aldar Investment Properties, a fully owned subsidiary of Abu Dhabi’s largest developer Aldar Properties, has hired banks to arrange investor meetings ahead of a planned issue of U.S. dollar-denominated sukuk, or Islamic bonds, a document issued by one of the banks showed. Subject to market conditions, it is planning to sell a sukuk with a 10-year maturity and of benchmark size, which generally means upwards of USD500mln, the document said. DP World said that the USD538mln first phase of the new Deepwater Port of Posorja in Ecuador is now completed and successfully operational. The overall USD1.2bln project will replicate Dubai’s Jebel Ali Port and freezone, making Ecuador a trade and logistics hub for South America’s west coast, and opening a gateway for large container ships with capacities exceeding 10,000 TEUs. The share of the aviation and tourism sector in United Arab Emirates's (UAE) economy will more than double in the next two decades to USD128bln, an official of the International Air Transport Association (IATA) said on Tuesday. Currently they contribute USD47.4bln to the UAE's gross domestic product (GDP), accounting for 13% of its GDP, said Mohammad Albakri, regional vice president of Africa & Middle East at an IATA event. UAE's aviation and tourism market is likely to support 1.4mln jobs in the next 20 years, from 800,000 jobs now, he said. Emirates National Oil Company plans to double the number of its service stations by 2021 and looks to add new revenue streams from the launch of on-demand fuel retail. The UAE consumes 12bln litres of fuel per year serviced by 566 stations. Enoc is the largest fuel retailer in Dubai. “Today we have 133 stations, our network by 2021 will double in number, it will be 100 per cent expansion,” Zaid Alqufaidi, managing director of retail at Enoc said. Mubadala Investment has not yet decided whether to invest in SoftBank's second large-scale tech investment fund, one of its top executives said on Tuesday. "We are evaluating it, we will continue evaluate it," said Ibrahim Ajami, head of ventures. Etihad Airways expects to return to profitability in 2023, at the end of a five-year turnaround plan, its chief commercial officer, Robin Kamark, said on Wednesday. Etihad suffered from its third consecutive year of annual losses in 2018 despite cost savings of nearly half a billion dollars as it cut its workforce and fleet. Dubai recorded a non-oil foreign trade of AED 676bln in the first half of 2019, an increase of 5pct YoY from AED 644bln in the corresponding half last year. Exports registered the highest rise at 17pct to reach AED76bln while re-exports were up 3pct at AED210bln and imports grew 4pct at AED390bln. Dubai’s non-oil foreign trade volumes surged 31pct YoY in the first half of 2019. # GCC/ MENA Saudi Aramco is expected to publish its prospectus before month-end, the Wall Street Journal reports, citing unidentified people familiar with the matter. Prospectus will be published in Arabic on Oct. 25 and English version will be posted 2 days later, WSJ says citing document outlining the timeline. Saudi Aramco was downgraded to A from A+ by Fitch given that the rating is capped by that of the sovereign, which was downgraded following the drone and missile attack on domestic infrastructure in September. Planned IPO seen as unlikely to have any major effect on company’s financial position, with Fitch seeing Saudi Aramco having capacity to maintain commitment to increase dividend payments to at least $75 billion per year in 2020 and beyond. The Saudi central bank is vetting local lenders' exposure to Saudi Aramco ahead of an initial public offering (IPO) of the state-oil giant that will likely see large numbers of Saudi investors seek loans to buy its stock. Saudi's Al Khodari announces termination of road project award to link Asfan with Al-Jouf. Al Khodari says 2% of total value of project work has been billed and financial impact of project contract termination represents loss of approx. SAR36.8mln.
5. Saudi ’s Raydan Company and Bazeem Trading board approves to move to main market. Saudi’s United Electronics posted Q3 estimated net profit after zakat and tax SAR 27.2mln vs SAR 30.9mln year ago. Q3 estimated sales SAR1.04bln vs SAR894.8mln year ago. Kuwait Finance House has received conditional approval from Kuwait's central bank for its proposed acquisition of Bahrain's Ahli United Bank. The deal depends on a number of requirements to ensure adherence to Islamic Sharia, transparency and protection of free competition, the central bank said in a statement. Oman’s Raysut Cement implementing greenfield cement project in Georgia. Raysut Cement’s unit Pioneer Cement Industries is in process of setting up an integrated cement plant with annual capacity of 1.2m/t in Georgia at estimated cost of plant USD200mln. Arrangements for project are currently being finalized and construction work in project is slated to commence on 15 November 2019. The Egyptian cabinet endorsed the Financial Regulatory Authority's (FRA) recommendation to reduce regulatory fees on stock trading by 50%, the chairman of the FRA Mohamed Omran said. Egypt’s Fawry Banking and Payment Technology Services posted H1 consolidated net profit EGP 33.7mln vs EGP 29.7mln year ago. Q2 consolidated net profit EGP 10.6mln vs EGP 14.8mln year ago. Q2 consolidated revenue EGP 199.5mln vs EGP 145.9mln year ago. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
6. # 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% ADCB 53,501 7.69 10.26 7.37 9.06 1.02 6.0% (9.2) (9.1) (15.2) (2.8) ADIB 19,104 5.26 5.31 3.46 8.19 1.07 5.1% 1.9 14.1 13.6 44.5 ADNIC 1,125 3.00 4.00 2.60 8.28 0.80 10.0% 9.1 (6.3) (14.3) (20.0) Agthia 2,214 3.69 5.00 3.17 11.94 1.16 4.1% 5.4 7.0 (10.7) (9.3) Air Arabia 6,067 1.30 1.30 0.90 NA 1.20 NA 8.3 21.5 30.0 36.0 Ajman Bank 1,932 0.92 0.99 0.82 10.06 0.77 3.8% (0.8) 2.2 2.2 (3.0) Al Waha Capital 1,944 1.00 2.02 0.89 NA 0.60 7.5% (3.8) 8.0 (9.1) (47.4) Aldar Properties 16,590 2.11 2.37 1.43 9.41 0.69 6.6% (3.7) 6.0 20.6 23.4 Amanat Holdings 2,250 0.90 1.20 0.85 44.84 0.89 1.7% 2.4 (8.2) (9.2) (21.1) Amlak FiNAce (A EDm) (A ED) 12M% 615 0.41 0.60 0.25 NA 0.52 0.0% 28.1 47.0 22.0 (30.5) Arabtec 2,655 1.77 2.41 1.37 13.20 1.62 2.8% 11.3 12.0 (15.7) (2.7) Aramex 5,944 4.06 5.01 3.89 11.93 2.52 4.1% (2.9) (1.7) (12.5) (1.2) Bank of Sharjah 1,743 0.83 1.12 0.79 21.99 0.45 0.0% (4.0) (6.7) (10.4) (23.9) DAMAC Properties 5,481 0.91 2.13 0.84 14.76 0.39 NA (2.9) 0.2 (33.4) (54.0) Dana Gas 6,645 0.95 1.17 0.73 NA 0.69 5.8% (3.5) (0.0) 1.7 (17.4) Deyaar Development 2,016 0.35 0.48 0.29 18.06 0.45 0.0% 9.4 10.8 (3.3) (22.1) Dubai FiNAcial Market 7,040 0.88 0.96 0.65 65.23 0.90 0.0% (1.6) 24.5 14.4 (1.9) Dubai Investment 5,400 1.27 1.82 1.04 10.51 0.46 7.9% (4.5) 3.3 (7.7) (29.1) Dubai Islamic Bank 34,924 5.30 5.40 4.66 7.33 1.14 6.6% (0.0) 3.3 5.2 (0.6) DXB Entertainments 1,624 0.20 0.38 0.17 NA 0.49 0.0% (10.2) 4.1 (19.4) (44.8) Emaar Dev 16,360 4.09 5.02 3.26 4.72 1.98 12.7% (0.7) 2.5 12.2 (17.1) Emaar Malls 24,596 1.89 2.17 1.43 10.89 1.43 5.3% 1.1 (5.5) 13.1 4.4 Emirates Integrated Tele 25,202 5.56 5.80 4.88 14.82 2.99 6.3% (3.0) 7.8 9.9 12.1 Emirates NBD 72,805 13.10 14.45 8.25 6.14 1.04 3.1% (2.2) 18.0 9.2 41.6 921 0.40 0.64 0.36 NA 0.64 NA (2.2) (1.7) (16.1) (31.5) Etisalat 143,493 16.50 17.80 15.20 15.96 3.15 4.8% (1.2) 1.0 1.7 (0.6) First Abu Dhabi Bank 165,761 15.18 16.96 13.50 14.08 1.64 4.9% 1.2 2.6 (0.1) 2.7 3,164 0.87 1.37 0.73 8.90 0.78 3.7% (5.0) (0.5) (15.3) (36.4) Eshraq Investments GFH Gulf Navigation Holding 712 0.70 1.17 0.67 NA 0.80 0.0% (14.8) (12.4) (19.6) (25.4) 1,448 1.25 2.20 1.00 NA 1.42 0.0% 8.7 (20.9) (20.9) (37.5) 13,314 75.00 80.00 66.00 6.28 0.64 5.3% 2.7 0.0 (1.3) NA National Bank of Fujairah 9,231 4.99 4.99 2.72 14.84 1.72 1.3% NA 4.4 17.0 65.1 Tabreed 5,268 1.94 1.94 1.44 12.68 1.13 4.9% 13.5 14.1 27.6 27.6 RAK Bank 7,627 4.55 4.75 4.00 7.35 1.06 6.6% 1.1 1.1 10.7 12.3 916 0.46 0.62 0.39 6.67 0.24 0.0% 1.8 4.1 4.8 (24.9) 1,486 1.57 2.28 1.42 8.64 0.63 9.1% (0.6) 1.9 (7.6) (25.1) 765 0.63 0.76 0.39 35.51 1.00 NA (9.1) (3.2) 29.8 2.8 Sharjah Islamic Bank 3,522 1.20 1.28 1.05 6.80 0.64 6.7% (3.2) 7.1 8.1 0.8 SHUAA Capital 2,467 0.97 1.11 0.60 NA 1.32 NA 0.3 1.4 13.0 (9.1) Julphar Mashreqbank RAK Properties RAK Ceramics SALAMA Takaful Emarat Insurance 204 1.36 1.80 1.25 15.50 1.30 5.1% (0.7) (8.7) (13.4) (23.6) TAQA 4,246 0.70 1.18 0.64 12.71 0.96 0.0% (12.5) (2.8) (23.1) (38.6) Union Properties 1,330 0.31 0.69 0.28 NA 0.44 0.0% (6.6) (6.1) (19.1) (53.7) United Arab Bank 2,269 1.10 1.30 0.90 55.98 0.87 0.0% 10.1 (11.3) (7.6) (8.3) (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
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