GCC Daily Market Update - 13 July

Transcription

1. July 13 , 2022 GLOBAL MARKETS MARKET COMMENTARY Change Performance Value (%) MTD (%) YTD (%) Closing Level Indices Global S&P 500 Dow Jones Ind. Average Nasdaq 100 FTSE 100 DAX 30 CAC 40 BIST 100 Nikkei Hang Seng Shanghai Composite BSE Sensex GCC QE Index Saudi Arabia (TASI) UAE (ADX) UAE (DFM) Kuwait (KSE) Oman (MSM) Bahrain (BAX) MSCI GCC Dow Jones Islamic Commodity Brent (USD/bbl) WTI (USD/bbl) Natural Gas (USD/mmBTU) Gold Spot (USD/t oz.) Copper (USD/lb) 3,818.8 30,981.3 11,745.0 7,209.9 12,905.5 6,044.2 2,434.0 26,336.7 20,844.7 3,281.5 53,886.6 (35.6) (192.5) (115.3) 13.3 73.0 47.9 NA (475.6) (279.5) (32.1) (508.6) (0.9) (0.6) (1.0) 0.2 0.6 0.8 NA (1.8) (1.3) (1.0) (0.9) (0.2) (0.4) 1.4 0.6 0.7 1.9 (0.4) 0.8 (4.6) (3.1) 1.8 (19.9) (14.7) (28.0) (2.4) (18.8) (15.5) 31.0 (9.2) (10.9) (9.8) . (7.5) 12,084.7 11,416.5 9,231.8 3,128.7 7,395.1 4,118.7 1,872.4 741.5 4,854.3 NA NA 8.9 19.8 11.5 NA NA 0.6 4.9 NA NA 0.1 0.6 0.2 NA NA 0.1 0.1 (0.9) (0.9) (1.2) (2.3) (0.2) (0.1) 1.8 (1.0) 0.2 3.9 1.2 8.8 (2.1) 5.0 (0.3) 4.2 0.2 (24.8) 99.5 95.8 6.2 1,723.3 3.3 (7.6) (8.3) (0.3) (6.7) (0.1) (7.1) (7.9) (4.1) (0.4) (4.1) (13.3) (9.4) 13.6 (4.5) (11.3) 27.9 27.4 65.2 (5.7) (26.0) Global World stocks traded mixed while oil prices and bond yields dipped on Tuesday as traders fretted over prospects of further central bank tightening and worries about the health of economies worldwide. On Wall Street, the DJIA rose 0.6% while the S&P 500 lost 0.9% and the Nasdaq 100 dropped 1%. European shares rose on Tuesday led by beaten-down aerospace, luxury and travel stocks, although worries about an energy supply crunch and a potential global recession capped gain. The pan-European STOXX 600 index ended 0.5% higher after opening lower and breaking a three-day winning streak in the previous session. In Asia Japan’s Nikkei index fell 1.8% after losing as much as 1.99% earlier in the session. China stocks ended lower on Tuesday as strict COVID-19 curbs in Shanghai reignited worries of a wider economic disruption, while possible de-listing risks of major Chinese firms from US exchanges dragged Hong Kong shares to a 1-1/2-month low. GCC Saudi Arabia's benchmark index was closed on Tuesday on the occasion of Eid. Stock markets in UAE closed higher on Tuesday, as they reopened after Eid holidays, with Dubai's benchmark index rose 0.6%, buoyed by a 1.5% jump in Dubai Islamic Bank and a 1.2% gain in Emaar Properties. Abu Dhabi index closed 0.1% higher, snapping losses in straight seven sessions, supported by a 0.8% increase in First Abu Dhabi Bank and 1.1% rise in Multiply Group. Qatar The Qatar stock market was closed on Tuesday due to Eid al-Adha. Source: Refinitiv Eikon QATAR MARKET OVERVIEW Dividend Value Traded Yield (%) (USD mn) Qatar DSM Index P/E (x) P/B (x) Qatar All Share 14.4 1.4 3.7 103.3 DSM 20 14.4 1.5 3.7 97.1 Saudi Arabia (TASI) 18.6 2.6 3.0 1,320.1 UAE (ADX) 20.0 2.5 2.1 359.4 UAE (DFM) 13.1 1.1 0.0 63.9 Kuwait (KSE) 12.5 1.6 2.9 194.1 Oman (MSM) 11.1 0.8 5.2 8.4 Source: Refinitiv Eikon Bahrain (BAX) 7.2 1.0 4.4 1.1 QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation GCC Fundamentals Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers AL MEERA CONSM MESAIEED PETRO NAT LEASING CO QA COMM BK QATAR ALUMINIU Top Losers QA ISLAMIC INS QA INTL IS BK QATAR NAVIGATI QNB DOHA INS CO 17.4 2.6 0.8 6.6 1.6 8.3 11.0 8.6 19.2 2.1 0.5 0.1 0.0 0.1 0.0 (0.3) (0.3) (0.1) (0.3) (0.0) 3.2 2.6 2.5 2.2 1.9 Performance YTD YoY (%) (%) (11.5) 23.4 (11.9) (2.3) (11.2) (3.5) (2.7) (1.7) (1.5) (1.4) Source: Refinitiv Eikon; Note: Prices are in local currency. 3.1 19.4 13.2 (4.9) 6.8 (11.0) 36.8 (27.6) 22.2 5.3 0.6 17.9 15.3 7.6 6.2 Vol. (‘000) P/E TTM 63.1 4,852.0 1,438.4 1,847.4 23,168.5 18.2 16.8 NA 12.5 9.4 39.9 934.3 1,926.1 3,466.5 15.6 14.0 18.3 12.5 14.2 12.4 16,000 15,000 14,000 13,000 12,000 11,000 10,000 10-Apr 12,084.7 600.0 400.0 200.0 0.0 24-Apr 8-May 22-May Index Volume (mn) 5-Jun 19-Jun 3-Jul Index Value Closing Level 5,126.3 8,169.8 4,346.9 2,608.6 1,749.0 1,166.7 4,132.9 1D Change (%) NA NA NA NA NA NA NA Source: Refinitiv Eikon Qatar Trading Summary Buy (%) Sell (%) Qatari Individuals 31.9 29.6 Qatari Institutions 13.1 21.3 Qatari – Total 45.0 50.9 Foreign Individuals 11.9 12.4 Foreign Institutions 43.1 55.0 416.0 428.4 Foreign – Total Source: Qatar Exchange 1
2. July 13 , 2022 GLOBAL NEWS Company, has signed several sharia-compliant facility agreements worth SAR 6.1bn with a consortium of financial institutions. (Source: Trade Arabia)  Elon Musk's attempt to cancel his USD 44bn purchase of Twitter Inc may leave the world's wealthiest person in a better financial position than before he announced the deal, with billions of dollars in cash from selling Tesla shares now sitting in the bank. (Source: Reuters)  The Saudi IPI increased in May by 24% compared to the same period last year, according to General Authority for Statistics. The IPI continued to show positive growth rates due to the high production.  PepsiCo Inc increased its FY revenue forecast as consumers purchased more sodas and snacks despite rising prices. In the Q2-22, PepsiCo’s overall net revenue increased 5.2% to USD 20.23bn, exceeding analysts' expectations of USD 19.51bn. (Source: Reuters)  Central banks face key decisions on digital currency, says BIS. Central banks must make critical choices on the access of non-residents and foreign financial institutions to central bank digital currencies. (Source:  Subway can be sued for allegedly misleading customers about its tuna products, including claims that it uses other fish species, chicken, pork, and cattle instead of the advertised 100% tuna, according to a federal judge. (Source: Reuters)  Oil exports have skyrocketed Saudi Arabia’s current account balance to USD 37.4bn in the Q1-22, according to preliminary data on the Kingdom’s balance of payments published by Saudi Central Bank.  The ECB could cap the amount of planned digital euros, an electronic version of banknotes and coins, so they do not deprive banks of deposits, Bank of France Governor Francois Villeroy de Galhau said. (Source: Reuters)  Digital insurance startup Wefox said it had raised USD 400mn from investors, valuing the insurtech business at USD 4.5bn. (Source: Reuters)  According to BoJ data released, wholesale prices in Japan increased 9.2% YoY in June, as import prices increased at the fastest rate on record due to the sharp drop in the JPY. (Source: Mainichi)  China leads in renewable energy growth installed capacity has increased roughly 90 times, cementing its position as a global leader in renewable energy capacity growth. During the last decade, the country's total installed capacity for renewable energy generation increased to 1.1bn kw. (Source: China Daily)  Alibaba's supermarket chain Freshippo is seeking to raise funds at a valuation of about USD 6bn, much lower than a hoped-for valuation of up to USD 10bn earlier this year. (Source: Reuters) GCC NEWS  Expats rank the UAE first globally in terms of increasing job opportunities and career prospects. The UAE has been named one of the top ten best countries in the world for expatriates to live and work. (Source: Zawya)  Air cargo volumes in the Middle East remained lower in May compared to the previous year, the International Air Transport Association reported on Tuesday. (Source: Trade Arabia)  UAE President HH Sheikh Mohamed bin Zayed Al Nahyan, in his capacity as the ruler of Abu Dhabi, has ordered the disbursement of AED 1.5bn worth of housing benefits to Abu Dhabi citizens, covering more than 1,100 beneficiaries in the emirate. (Source: Trade Arabia)  In UAE, Al-Futtaim Group partners with Berlin-based TIER Mobility for sustainable micro-mobility Under the partnership, TIER Mobility will enable Dubai Festival City’s residents, mall visitors, and tenants to use a low-carbon alternative by using e-bikes. (Source: Zawya)  Industrial and Commercial Bank of China Limited listed five-tranche carbon-neutrality-themed bonds on Nasdaq Dubai on Tuesday, valued at AED 9.84bn (USD 2.68bn). (Source: Arab News)  Herman Miller opens redesigned showroom in Dubai. The showroom highlights the company’s iconic and innovative design solutions for both commercial, healthcare and hospitality spaces in a real-life workplace in Dubai’s prestigious Marina Plaza. (Source: Zawya)  The DEWA announced that it would complete its 3mn imperial gallons per day Water Microfiltration project in Hatta by the end of the year. (Source: Zawya)  Advanced Petrochemical Company, based in Saudi Arabia, has announced that one of its subsidiaries, Advanced Polyolefins Industry (Source: Trade Arabia) Zawya) (Source: Arab News)  Saudi German Health has awarded contracts worth SAR 223.3mn (USD 59.5mn) for the construction of an outpatient tower with 14 clinics and a 207-bed inpatient beds expansion in Saudi German Hospital Riyadh. (Source: Trade Arabia)  Saudi Arabia announced that the volume of data traffic transferred via the STC network in the Arafat area increased by 40% in comparison to the 2019 hajj seasons. This was the highest number to be recorded, with 5G and 4G networks accounting for 96 percent of the total traffic, SPA reported. (Source: Arab News)  Saudi Aramco has notified at least three North Asian buyers that it will supply full contractual volumes of crude oil in August, according to Reuters. (Source: Reuters)  Middle Eastern airlines’ traffic rose 317.2% in May, according to a new report, load factor climbed 37.1% points to 76.8%. The progressive reopening of Asian markets is boosting traffic through Gulf hubs. (Source: Times of Oman)  National Life and General Insurance Company, a flagship insurance subsidiary of Ominvest, said it has successfully completed the strategic acquisition of RSA Middle East, a leading provider of property and casualty insurance in the Middle East with operations in Bahrain, UAE, Oman and Saudi Arabia. (Source: Trade Arabia)  Bahraini law firm Salwa Ahmed Al Khalifa has signed an agreement with London-based Albertson Solicitors Legal Practice that will see the duo provide specialized legal services to the clients of both parties, whether in the GCC region or UK or EU countries. (Source: Trade Arabia)  Kuwait’s imports of perfumes and its preparations amounted to KWD 219.6mn, an increase of 21%, with a value of KWD 37.969 during 2021, compared to KWD 191.367 in the year 2020, reports Al-Anba daily. (Source: Arab Times) QATAR NEWS  Qatar is an attractive home for investors. Qatar is strongly committed to economic growth, diversification and developing new opportunities for international investors. There are significant growth opportunities in all sectors of the Qatari economy. (Source: The Peninsula)  QNB, a leading financial institution in region, has posted a net profit of QAR 7.8bn for 6M-22, reflecting an increase of 15% YoY. (Source: Trade Arabia)  Qatar's population policy seeks to strike a balance between population growth and long-term development.   It is expected to reach approximately 8.5bn by 2030, 9.7bn by 2050, and 10.9bn by 2100. (Source: The Peninsula)  Qatar Central Bank revealed that on the first day of extending the work of the Electronic Check Conversion, it settled over 3,000 cheques worth QAR 80mn. (Source: The Peninsula) 2
3. July 13 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0066 USD/QAR 3.6684 136.8600 EUR/QAR 3.6926 USD/JPY GBP/USD 1.1915 JPY/QAR 0.0268 USD/CHF 0.9816 GBP/QAR 4.3709 USD/CAD 1.3021 CHF/QAR 3.7372 AUD/USD 0.6756 CAD/QAR 2.8173 NZD/USD 0.6136 AUD/QAR 2.4784 USD/INR 78.9500 INR/QAR 0.0465 USD/TRY 17.3000 TRY/QAR 0.2120 USD/ZAR 17.0196 ZAR/QAR 0.2155 USD/BRL 5.4368 BRL/QAR 0.6747 FX Commentary The USD is benefiting from expectations that the US central bank has more room to hike rates than peers, which are facing more challenging growth outlooks. The US Dollar rose 0.04% at 108.21. The EUR/USD went down 0.03% at 1.0036. The EUR has been particularly vulnerable given the impact of an ongoing spike in natural gas prices on the regional economy and the war in neighboring Ukraine, and with the ECB behind rivals in raising interest rates. The GBP/USD slipped 0.04% at 1.1885. The USD/JPY traded down 0.4% at 135.86. The USD/CNY went up 0.1% at 6.7234. The USD/CAD traded 0.1% higher at 1.3021. The risk sensitive AUD/USD traded up 0.4% at 0.6756. The NZD/USD went up 0.4% at 0.6136. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration Overnight 1 Week 1.56 0.08 1.96 2.46 3.72 (0.65) (0.57) (0.40) (0.07) 0.97 QAIBOR 2.25 2.25 2.35 2.45 2.75 SAIBOR 1.96 1.89 1.84 2.75 3.58 EIBOR 1.59 1.68 1.95 2.11 3.31 BMIBOR 2.33 2.57 3.32 3.61 4.76 KIBOR 1.06 1.56 1.81 2.19 2.75 LIBOR EURIBOR 1 Month 3 Month 1 Year Source: Refinitiv Eikon 3.26% 2.0% 0.0% 6.0% 3.58% 4.0% 3.41% 3.05% 3.09% 2.0% 4.72% 3.53% 3.81% 3.02% 2.98% 3.17% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 3.00% 3.03% 3.00% 1.34% 1.11% 0.86% 2.89% 1.71% 0.30% 2 Yrs Qatar vs US Treasuries Yields 3 Yrs Qatar Source: Refinitiv Eikon, Investing.com US Swap Rates 4.0% SOVEREIGN YIELD CURVES & CDS SPREAD 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs Source: Refinitiv Eikon Spread 6M Change 5 Years CDS Spread 6M Change US 19.7 8.0 Turkey 866.3 UK 15.3 4.6 Brazil 294.7 79.9 Germany 16.0 6.9 Egypt 1,054.6 545.7 France Abu Dhabi 324.4 25.0 5.0 68.7 24.1 Italy 139.4 50.7 Bahrain 328.8 32.9 Greece 174.6 67.7 Dubai 135.6 43.5 Russia 12,840.2 12,684.0 Qatar 69.2 21.6 Japan 32.3 14.7 Saudi Arabia 73.2 22.6 Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event 15:30 US CPI MM, SA Period Survey Jun 1.1% 17:00 Canada BoC Rate Decision 12:00 Euro Zone 12:00 Euro Zone 15:30 US 15:30 US 02:01 UK Prior 1.0% 13 Jul 2.25% 1.50% Industrial Production MoM May 0.3% 0.4% Industrial Production YoY May 0.3% -2.0% Core CPI YY, NSA Jun 5.7% 6.0% CPI YY, NSA Jun 8.8% 8.6% RICS Housing Survey Jun 70 73 Source: Refinitiv Eikon GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) Gulf Mushroom Products 2.4 25.5 -1.5 NA NA QoQ (%) NA Educational Holding Group 1.1 55.9 4.0 2.0 7.2 19.8 Qatar National Bank NA NA NA 3418.0 -1.3 -5.5 Source: Refinitiv Eikon; Note: All figures are in local currency 3
4. QSE MAIN FINANCIAL INDICATORS (as on 7th July 2022) Company QNB Qatar Islamic Bank Comm. Bank of Qatar Doha Bank Ahli Bank Intl. Islamic Bank Rayan Qatar First Bank (QFC) National Leasing Dlala Qatar Oman Inma Banks & Financial Services Zad Holding Company Qatar German Co. Med Salam International Medicare Cinema Qatar Fuel Widam Mannai Corp. Al Meera Baladna Consumer Goods & Services Ind. Manf. Co. National Cement Co. Industries Qatar The Investors Electricity & Water Aamal Gulf International Mesaieed Investment Holding QAMCO Industrials Qatar Insurance Doha Insurance General Insurance Alkhaleej Takaful Islamic Insurance QLM Insurance United Dev. Company Barwa Ezdan Holding Mazaya Real Estate Ooredoo Vodafone Qatar Telecoms Qatar Navigation Gulf warehousing Co Nakilat Transportation Market Dividend Yield (%) 2.86 2.44 2.43 3.00 3.62 3.41 4.26 0.00 0.00 0.00 1.42 0.94 2.93 3.54 0.00 0.00 3.65 1.64 4.45 0.00 3.82 5.19 3.35 4.10 3.57 6.00 6.49 0.00 4.51 4.75 0.00 4.26 0.00 5.00 5.36 4.19 5.85 0.00 2.38 4.85 4.04 3.77 4.01 5.09 0.00 0.00 3.90 3.87 3.74 3.83 3.47 2.42 3.18 3.25 2.73 P/B Ratio (x) 1.83 2.29 1.12 0.55 1.35 2.00 1.20 1.38 0.61 1.12 0.77 2.03 1.61 2.97 5.01 0.59 1.94 1.62 1.94 1.94 1.64 2.40 1.33 1.82 0.92 1.11 2.58 1.56 1.52 0.87 1.09 2.01 1.56 1.45 1.83 0.74 0.86 0.33 1.51 2.74 3.52 0.74 0.45 0.66 0.81 0.92 0.58 1.06 1.53 1.24 0.64 1.17 2.23 1.16 2.17 July 13, 2022 P/E Ratio (x) 14.18 16.04 12.47 10.68 14.57 18.31 18.15 6.24 0.00 10.68 87.86 26.94 14.98 25.17 134.96 17.37 25.91 86.79 17.24 0.00 13.96 18.24 22.50 19.07 10.59 14.12 9.99 50.62 13.14 21.33 25.41 16.83 50.62 9.39 11.65 13.91 12.37 16.54 20.76 14.02 17.63 14.55 13.52 11.61 400.39 0.00 13.88 48.47 18.40 33.24 12.47 10.62 14.76 13.53 18.77 EPS (QR) 1.32 1.42 0.50 0.23 0.27 0.59 0.22 0.20 -0.04 0.07 0.02 0.11 0.72 0.69 0.01 0.05 0.28 0.03 0.98 -0.37 0.61 0.98 0.07 0.34 0.29 0.34 1.34 0.03 1.33 0.05 0.03 0.15 0.03 0.15 0.36 0.16 0.15 0.11 0.16 0.57 0.30 0.20 0.09 0.29 0.00 -0.21 0.04 0.01 0.08 0.19 0.64 0.38 0.24 0.32 0.31 BV/Share (QR) 10.71 10.47 5.95 4.60 2.89 5.75 3.20 0.72 1.35 1.74 0.93 2.57 4.93 5.56 0.28 1.36 3.66 2.24 9.09 1.54 4.81 7.75 1.19 3.50 3.57 4.67 6.53 1.03 10.74 1.25 1.75 1.36 1.03 1.14 2.58 3.40 2.38 5.86 2.07 2.83 1.77 3.02 3.11 5.36 1.22 0.85 1.86 6.63 1.09 3.47 12.96 3.53 1.58 3.52 2.71 Stock Price (QR) 19.21 23.52 6.60 2.50 3.95 11.00 3.99 1.16 0.83 1.41 0.70 5.34 17.50 1.44 0.80 6.85 3.66 17.06 2.81 7.85 17.35 1.58 3.36 5.00 15.40 1.63 17.73 1.05 1.96 2.58 1.63 1.60 2.39 2.05 1.99 3.15 8.25 5.44 1.37 3.44 1.02 0.79 7.76 1.61 8.64 4.14 3.77 Company QNB ‫الم ف‬ ‫التجاري‬ ‫بنك الدوحة‬ ‫اﻻه‬ ‫الدو‬ ‫ال ان‬ QFC ‫اﻷول‬ ‫اﻻجارة‬ ‫دﻻلة‬ ‫قطروعمان‬ ‫إنماء‬ ‫البنوك والخدمات المال ة‬ ‫زاد‬ ‫الطب ة‬ ‫السﻼم‬ ‫لدنا‬ ‫الرعا ة‬ ‫الس نما‬ ‫قطر للوقود‬ ‫ودام‬ ‫مجمع المنا‬ ‫الم ة‬ ‫الخدمات والسلع اﻻستهﻼ ة‬ ‫قامكو‬ ‫التح ل ة‬ ‫اﻻسمنت‬ ‫صناعات قطر‬ ‫المس ثم ن‬ ‫كه اء وماء‬ ‫أعمال‬ ‫الخليج الدول ة‬ ‫مس ع د‬ ‫اس ثمار القا ضة‬ ‫الصناعات‬ ‫قطر‬ ‫الدوحة‬ ‫كيو إل إم‬ ‫العامة‬ ‫الخليج الت اف‬ ‫اﻻسﻼم ة‬ ‫التأم‬ ‫المتحدة للتنم ة‬ ‫بروة‬ ‫إزدان القا ضة‬ ‫مزا ا‬ ‫العقارات‬ Ooredoo ‫فودافون قطر‬ ‫اﻻتصاﻻت‬ ‫المﻼحة‬ ‫مخازن‬ ‫ناقﻼت‬ ‫النقل‬ Source: Refinitiv Eikon; Note: The above-mentioned indicators were calculated according to the latest reliable financial data. DISCLAIMER It is understood that any opinions expressed by Commercial Bank or its affiliates as to the commentary, market information, and future direction of prices of specific securities reflects the views of the individual analyst who issued them, and not necessarily represent the views of Commercial Bank or its affiliates in any way. In no event shall CBQ or its affiliates have any liability for any direct or indirect losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material or for any delays, inaccuracies, errors in, or omissions of the said information. 4