GCC Daily Market Update - 14 December

Transcription

1. December 14 , 2020 GLOBAL MARKETS MARKET COMMENTARY Change Performance Value (%) MTD (%) YTD (%) Closing Level Indices Global S&P 500 Dow Jones Ind. Average Nasdaq 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) 3,663.5 30,046.4 12,375.4 6,546.8 13,114.3 5,507.6 1,370.7 26,652.5 26,505.9 3,347.2 46,099.0 (4.6) 47.1 (26.3) (53.0) (181.4) (42.1) 17.3 (103.7) 95.3 (26.1) 139.1 (0.1) 0.2 (0.2) (0.8) (1.4) (0.8) 1.3 (0.4) 0.4 (0.8) 0.3 1.2 1.4 0.9 4.5 (1.3) (0.2) 6.8 0.8 0.6 (1.3) 4.4 13.4 5.3 41.7 (13.2) (1.0) (7.9) 19.8 12.7 (6.0) 9.7 11.7 10,465.4 8,644.5 5,140.6 2,546.6 5,572.8 3,602.6 1,493.1 548.7 5,289.6 19.3 0.5 31.4 (0.2) 12.9 (4.4) 2.7 0.0 0.0 0.2 0.0 0.6 (0.0) 0.2 (0.1) 0.2 0.0 0.0 2.0 (1.2) 3.5 5.2 2.1 (1.1) 1.1 0.1 1.3 0.4 3.0 1.3 (7.9) (11.3) (9.5) (7.3) (3.7) 23.1 50.0 46.6 2.6 1,839.8 352.4 (0.3) (0.2) 0.0 6.2 (4.7) (0.6) (0.5) 1.5 0.3 (1.3) 5.2 2.8 (7.6) 3.6 3.0 (24.1) (23.6) 21.7 20.8 26.0 Global The US equity markets ended on a negative note on Friday, caused by rising uncertainty over the US COVID-19 stimulus package as the US Senate approved a one week extension for the federal funding. The S&P 500 ended 0.1% lower, amid losses in Energy and Financial stocks. The European markets ended lower on Friday, caused by worries over the economic impact of resurging COVID-19 cases and the halted Brexit deal. The Stoxx Europe 600 decreased by 0.8% to end at 390.1. Telecommunication Services stocks were the notable sector losers. In Asia, the Nikkei index ended lower on Friday, caused by rising COVID-19 cases in the country and uncertainty over the Brexit trade deal. GCC GCC markets ended on a mixed note yesterday. The Saudi Arabian index ended flat, as gains in Capital Goods stocks was set off by losses in Pharma, Biotech & Life Science stocks. Dubai’s index ended flat, as gains in Telecommunication stocks was set off by losses in Consumer Staples & Discretionary stocks. Abu Dhabi’s benchmark increased 0.6%, as gains in Banking and Real Estate stocks lifted the index. The Kuwaiti index increased by 0.1%, due to gains in Utilities and Insurance stocks. The Bahraini index increased by 0.2%, driven by gains in Banking and Services stocks. Qatar The Qatari index ended 0.2% higher yesterday. Buying support on part of foreign retail and institutional investors lifted the benchmark. Trade turnover and volumes decreased with Banking & Financial Services, Real Estate and Industrial sectors together accounting for 84.7% of the total traded volumes. Out of 47 listed stocks, 43 exchanged hands, 19 advanced, 19 declined and 5 remained unchanged. Source: Bloomberg QATAR MARKET OVERVIEW GCC Fundamentals Qatar All share P/E (x) P/B (x) 18.4 1.5 Dividend Value Traded Yield (%) (USD mn) 3.7 95.0 Qatar DSM Index 11,000 10,465.4 DSM 20 17.8 1.5 3.8 31.6 Saudi Arabia (TASI) 34.7 2.1 2.3 2,686.0 UAE (ADX) 19.9 1.5 4.7 94.8 UAE (DFM) 11.9 0.9 3.8 44.9 Kuwait (KSE) 37.2 1.4 3.5 97.8 Oman (MSM) 10.8 0.7 7.0 2.6 Source: Bloomberg Bahrain (BAX) 14.5 1.0 4.5 1.8 QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation Source: Bloomberg Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers Inma Holding Co Industries Qatar Qatar First Bank Qatar Elec & Water Co Salam Int Investme Top Losers Dlala Holding Qatar Insurance Co Doha Bank Qpsc Medicare Group Qatar & Oman Invs Co Performance YTD YoY (%) (%) Vol. (‘000) P/E TTM 5.2 10.9 1.8 18.6 0.7 0.3 0.2 0.0 0.2 0.0 5.9 2.0 1.3 1.0 0.9 173.6 5.5 122.7 15.3 28.0 169.4 4.6 107.7 14.5 29.8 15,660.8 419.7 51,937.5 26.7 10,498.5 NA 44.7 NA 13.6 NA 1.9 2.5 2.4 9.0 0.9 (0.0) (0.0) (0.0) (0.1) (0.0) (1.8) (1.7) (1.5) (1.3) (1.0) 216.4 (19.8) (6.2) 6.9 33.3 211.3 (18.0) (8.1) 3.8 34.1 1,270.3 477.5 6,464.6 219.5 889.8 NA NA 15.0 31.0 22.3 10,200 200.0 9,800 9,400 16-Sep 0.0 30-Sep 14-Oct 28-Oct Index Volume (mn) 11-Nov 25-Nov Index Value 9-Dec Closing Level 4,261.7 8,222.5 3,110.2 2,460.8 1,965.6 962.1 3,327.3 1D Change (%) 0.2 0.1 1.1 (1.1) (0.0) (0.4) (0.5) Buy (%) Sell (%) 59.5 62.1 Source: Qatar Exchange Qatar Trading Summary Qatari Individuals Qatari Institutions Source: Bloomberg; Note: Prices are in local currency. 400.0 10,600 9.9 12.4 Qatari – Total 69.4 74.5 Foreign Individuals 22.0 17.3 Foreign Institutions 8.6 30.6 8.2 25.5 Foreign – Total Source: Qatar Stock Exchange, Bloomberg 1
2. December 14 , 2020 GLOBAL NEWS    As per sources, the US lawmakers are considering to split the USD 908.0bn COVID-19 relief plan into 2 packages. The 1st package will be of USD 748.0bn for supporting small businesses, unemployed citizens and distribution of COVID-19 vaccine, while the 2nd package will be worth USD 160.0bn for state and local governments. (Source: Bloomberg) The US President, Donald Trump has announced to consider veto for the passage of National Defense Authorization Act worth USD 740.0bn. He has 10 days to decide whether he wants to veto or approve. (Source: Reuters) The UK and the European Union agreed to work more in coming days to finalize a trade agreement despite missing their latest deadline to reach ‘no deal’ Brexit at the end of December-20. Both sides had said on Friday that a ‘no-deal’ was sure outcome, but on Sunday they assigned negotiators to continue. (Source: Financial Post)  According to the Financial Times newspaper, UK is considering to launch new state-backed guarantees which will permanently replace the GBP 65.0bn (USD 86.9bn) COVID-19 loans Programme to support lending banks and small & mid-size businesses. (Source: Reuters)  According to a survey report by Bank of Japan, the headline index for big manufacturers’ sentiment improved from -27.0 in September-20 to -10.0 in December-20 in the nation. The progress indicated that the nation’s economy is gradually recovering from the coronavirus pandemic. (Source: Reuters)  The Acting Director-General of Ras Al Khaimah Chamber of Commerce and Industry has announced that the emirates total exports value reached AED 3.7bn (USD 1.0bn) in 9M-20. Saudi Arabia ranked highest in terms of total certificates of origin reaching 3,208 covering goods worth AED 582.0mn (USD 158.5mn). (Source: Emirates News Agency)  According to a data released by Saudi Justice Ministry, the nation’s real estate deals value rose by 22.0% YoY and 54.0% MoM to SAR 18.0bn (USD 4.8bn) from October-20 to November-20. The total real estate deal rose to 29,500 from 27,900. (Source: Mubasher)  National Water Company began the operation of the Rabigh sewage treatment plant project being constructed at an investment of SAR 110.0mn (USD 29.3mn) in Makkah region. The new plant has production capacity of 15,000 cubic meter per day and will cater to over 75,000 residents. (Source: Trade Arabia)  Jabal Omar Development Company signed a contract to sell a plot of land situated at the company’s project site in Makkah city to an investment company for SAR 830.0mn (USD 221.0mn). The proceeds will be used to finance the company’s projects and restructuring existing loans. (Source: Mubasher)  Riyad Capital announced that its fund has invested SAR 92.5mn (USD 25.0mn) in US class A office building, spanning over an area of 32,000 square meters. Investment fund is anticipated to generate an average annual yield of 8.0% over a 5-year investment period. (Source: Mubasher)  Saudi Indian Company for Cooperative Insurance’s (Wafa Insurance) board recommended raising the company’s capital by SAR 300.0mn (USD 79.9mn) through a rights issue. The proceeds will be used to improve financial solvency margin. (Source: Mubasher)  Yanbu Cement Company’s board of directors agreed to distribute cash dividends of SAR 196.9mn (USD 52.5mn) for H2-20, equivalent to SAR 1.25 (USD 0.3) per share. (Source: Mubasher)  Bahrain-based Al Salam Bank and Europe-based FlexxPay have signed a cooperation deal to offer innovative employee benefit solutions to businesses and government entities in the nation. (Source: Zawya)  As per sources, Kuwait has authorized the use of Pfizer Inc. and BioNTech vaccine in the nation while Bahrain has approved Chinabased Sinopharm Group Co.’s vaccine for tackling coronavirus. (Source: GCC NEWS  The UAE Government has signed a mutual visa waiver agreement with Thailand to facilitate the issuance of visas to the citizens of the two nations. UAE citizens holding diplomatic and special passports will be exempt from entry visas to the latter nation. (Source: Emirates News Agency)  The UAE announced a new strategy aimed at development of a comprehensive scheme to regulate the local tourism sector in partnership with the relevant local and federal entities. (Source: Trade Arabia)   Etihad Credit Insurance has signed a cooperation agreement with the Israel Foreign Trade Risks Insurance Corporation (ASHR’A) to develop mutual economic relations by supporting exports, trade, and investment. The mutual trade between the two nations is expected to reach USD 4.0bn annually, as per WAM. (Source: Reuters)  Dubai SME signed a MoU with Pipeline Business Growth Services, to jointly support and promote SME growth and sustainability. The two parties will offer lead generation and sales consultancy, at special prices to members registered with Dubai SME and the Government Procurement Program. (Source: Emirates News Agency)  Lord Mayor of London, during his visit to Qatar has expressed his optimistic views for the cooperation between the two nations and future opportunities will strengthen their relation in the field of green finance, technology and the financial services sector. (Source: Gulf Times) Bloomberg) QATAR NEWS According to the Managing Director of US-Qatar Business Council, the Qatari government's initiatives to promote fintech and food security has successfully attracted US foreign direct investment inflows to the nation. He also said new projects worth USD 300.0bn are in pipeline. (Source: Gulf Times)  Dubai-based Azizi Developments has signed an agreement with Germany-based Kludi, for the supply of bathroom fittings at its landmark projects, Riviera and Creek Views. (Source: Trade Arabia)  Dubai Investments has entered into an agreement with Carrefour, owned and operated by Dubai-based Majid Al Futtaim to open a new store in Mirdif Hills, the first mixed-use community at Mirdif. (Source:  According to Qatar’s diplomat in the US, Fahad al-Dosari, the business relationship between the two nations have grown gradually and reached over USD 200.0bn. (Source: Gulf Times) Trade Arabia)  Qatar First Bank (QFB) announced the acquisition of “The Grand 2 at Papago Park Centre” in Arizona, US. The center is a 358,800 square foot newly-completed Class A office building that is 100% leased to DoorDash under a 15-year triple net lease (NNN). (Source: Gulf Times)  Deputy Chairman of Katara Hospitality said that Construction of the Qetaifan Island North at QAR 17.0bn (USD 4.7bn) is on track and anticipated to be completed in Q2-22 despite the challenges created by coronavirus pandemic. (Source: Peninsula Qatar)  As per sources, officials of Abu Dhabi are planning to allow tourists to visit the emirate by January-21. (Source: Bloomberg)  Abu Dhabi-based Eltizam Asset Management Group has signed two joint ventures valued at total USD 100.0mn with Egypt-based real estate group, Al Ahly Sabbour Developments. Under these JVs, the group will provide its facilities management and community management services in Egypt. (Source: Trade Arabia) 2
3. December 14 , 2020 FX RATES Currencies Value Currencies Value EUR/USD 1.2142 USD/QAR 3.6415 104.0400 EUR/QAR 4.4215 USD/JPY GBP/USD 1.3254 JPY/QAR 0.0350 USD/CHF 0.8902 GBP/QAR 4.8264 USD/CAD 1.2769 CHF/QAR 4.0907 AUD/USD 0.7533 CAD/QAR 2.8518 NZD/USD 0.7084 AUD/QAR 2.7431 USD/INR 73.1500 INR/QAR 0.0498 USD/TRY 7.8452 TRY/QAR 0.4642 USD/ZAR 15.1377 ZAR/QAR 0.2406 USD/BRL 5.0610 BRL/QAR 0.7195 FX Commentary The USD ended higher against the basket of major currencies on Friday, with the dollar index settling higher by 0.2% at 91.0. The dollar strengthened, as investors turned to the safe haven after a fall in risk appetite caused by rising uncertainty over the US stimulus package. The EUR decreased against the USD, after the European Central Bank announced a new round of COVID-19 stimulus in line with expectations. The GBP decreased against the USD, caused by worries that Britain will likely leave the European Union without any trade deal. The CAD ended lower against the USD, as investor turned cautious due to rising economic uncertainties around the world. The AUD ended flat against the USD, as gains in the currency supported by rising commodity prices was set off by uncertainty over the US fiscal stimulus and the Brexit trade deal. Source: Bloomberg INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.08 0.10 0.16 0.22 0.34 (0.58) (0.55) (0.55) (0.54) (0.50) QAIBOR 1.33 1.37 1.41 1.55 1.83 2.0% SAIBOR 0.56 0.60 0.66 0.83 0.95 1.0% EIBOR 0.15 0.16 0.25 0.42 0.71 BMIBOR 0.65 0.85 1.77 1.93 2.22 KIBOR 0.69 0.94 1.19 1.44 1.94 LIBOR EURIBOR 1 Month 3 Month 1 Year Source: Bloomberg 1.0% 0.20% 2.81% 1.75% 1.34% 0.99% 0.59% 0.12% 0.90% 0.63% 0.37% 1.63% 0.0% 2 Yrs 5 Years CDS 3.0% 1.64% 3.0% 5 Yrs Qatar 7 Yrs 10 Yrs US 30 Yrs Source: Bloomberg US Swap Rates 2.0% Qatar vs US Treasuries Yields 1.76% 1.67% 1.63% 0.90% 0.64% 0.43% 1.94% 1.35% 2 Yrs 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs Source: Bloomberg 5 Years CDS Spread 6M Change 18.4 (4.4) Turkey 392.4 (103.8) UK 21.3 (9.2) Brazil 157.3 (103.8) Germany 12.9 (5.3) Egypt 357.9 (149.5) Abu Dhabi France 0.0% Spreads 6M Change US 19.0 (6.2) 39.2 (37.1) Italy 105.6 (65.0) Bahrain 267.9 (92.5) Greece 109.1 (41.9) Dubai 116.6 (91.7) Russia 79.2 (34.2) Qatar 40.7 (35.5) Japan 17.6 (3.4) Saudi Arabia 68.8 (41.2) Source: Bloomberg ECONOMIC CALENDAR Time Country Event 7:30 Japan Tertiary Industry Index MoM Period Survey Prior Oct 1.20% 1.80% 7:30 Japan 7:30 Japan Industrial Production MoM Oct F -- 3.80% Industrial Production YoY Oct F -- (3.20%) 7:30 Japan Capacity Utilization MoM Oct -- 6.40% 10:00 Germany Wholesale Price Index YoY Nov -- (1.90%) 10:00 Germany Wholesale Price Index MoM Nov -- (0.20%) 13:00 Eurozone Industrial Production SA MoM Oct 2.00% (0.40%) 13:00 Eurozone Industrial Production WDA YoY Oct (4.20%) (6.80%) 16:00 Canada Bloomberg Nanos Confidence Dec-11th -- 53.3 17:00 Canada Bloomberg Dec. Canada Economic Survey NA -- -- NA France Bank of France Ind. Sentiment Nov 95 97 Source: Bloomberg GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) Jabal Omar Development Co NA NA NA (237.7) NA (48.9) Boubyan Petrochemicals Co 19.7 (2.4) 59.6 1.2 16.6 3.3 3.1 6.0 (2.7) 0.1 NA 8.5 Oman Education & Training In Source: Bloomberg; Note: All figures are in local currency 3
4. December 14 , 2020 QSE MAIN FINANCIAL INDICATORS Company Ahli Bank Comm. Bank of Qatar Dlala Doha Bank Islamic Holding Al khalij Commercial Bank Rayan National Leasing Qatar First Bank (QFC) Qatar Islamic Bank Intl. Islamic Bank QNB Qatar Oman Banks & Financial Services Baladna Mannai Corp. Medicare Al Meera Cinema Qatar Fuel Qatar German Co. Med Salam International Widam Zad Holding Company Consumer Goods & Services Aamal Gulf International Investment Holding Industries Qatar Mesaieed QAMCO Qatar Electricity & Water The Investors Ind. Manf. Co. National Cement Co. Industrials Alkhaleej Takaful Doha Insurance Qatar Insurance General Insurance Islamic Insurance Insurance Barwa Ezdan Holding Mazaya Qatar United Dev. Company Real Estate Ooredoo Vodafone Qatar Telecoms Gulf warehousing Co Nakilat Qatar Navigation Transportation Market Dividend Yield (%) 4.2 4.7 0.0 0.0 0.0 4.0 5.1 4.0 0.0 3.1 4.7 3.3 2.2 3.5 1.1 6.8 3.1 4.0 2.6 4.3 0.0 0.0 4.8 5.7 4.0 4.5 0.0 0.0 3.7 3.4 0.1 4.2 3.0 4.7 7.4 3.6 2.6 5.8 5.9 0.0 5.6 4.8 5.9 0.0 0.0 2.9 1.4 3.5 3.8 3.6 3.9 3.1 4.2 3.5 3.4 P/B Ratio (x) 1.3 1.0 2.6 0.8 2.1 1.1 2.4 0.9 2.7 2.3 0.2 1.8 0.9 1.3 1.6 0.7 2.6 2.8 1.8 2.3 8.3 0.5 2.7 2.4 1.9 0.1 0.8 0.6 2.0 1.7 1.0 2.2 0.8 1.0 0.9 0.9 0.9 0.6 1.1 0.4 2.6 0.9 0.7 1.5 1.2 0.6 1.1 1.0 1.3 1.0 1.6 1.8 0.6 1.1 1.1 P/E Ratio (x) 13.0 10.3 (M) (‫)س‬ 10.4 54.1 9.7 15.2 33.1 (M) (‫)س‬ 13.1 14.6 13.3 22.4 13.3 31.5 (M) (‫)س‬ 30.3 20.8 52.7 24.2 (M) (‫)س‬ (M) (‫)س‬ 14.2 17.6 29.5 35.5 49.4 10.6 44.1 25.2 (H) (‫)م‬ 13.6 28.9 19.0 21.5 29.1 66.9 12.8 (H) (‫)م‬ (M) (‫)س‬ 63.0 (M) (‫)س‬ 9.3 (H) (‫)م‬ 48.7 30.6 41.3 11.7 34.7 13.5 12.7 15.3 15.9 15.1 18.1 EPS (QR) 0.3 0.4 (M) (‫)س‬ 0.2 0.1 0.2 0.3 0.0 (M) (‫)س‬ 1.3 0.6 1.4 0.0 0.6 0.1 (M) (‫)س‬ 0.3 1.0 0.1 0.8 (M) (‫)س‬ (M) (‫)س‬ 0.4 0.9 0.2 0.0 0.0 0.1 0.2 0.1 0.0 1.4 0.1 0.2 0.2 0.1 0.0 0.1 0.0 (M) (‫)س‬ 0.1 (M) (‫)س‬ 0.4 0.0 0.0 0.1 0.0 0.6 0.0 0.3 0.4 0.2 0.4 0.3 0.3 BV/Share (QR) 2.5 4.4 0.7 3.1 2.5 1.7 1.9 1.4 0.7 7.5 40.5 10.2 1.0 6.4 1.2 4.5 3.5 7.4 2.2 8.3 0.3 1.4 2.3 6.2 3.3 12.4 1.9 1.0 5.4 1.2 1.0 8.5 2.2 3.3 4.5 4.2 2.1 2.1 2.3 5.7 2.5 2.9 5.1 1.2 1.1 3.1 1.8 7.2 1.0 3.7 3.2 1.8 12.3 3.5 4.0 Stock Price (QR) 3.4 4.3 1.9 2.4 5.2 1.9 4.4 1.3 1.8 16.9 9.0 18.2 0.9 1.9 3.0 9.0 21.0 3.9 18.8 2.2 0.7 6.2 15.0 0.9 1.5 0.6 10.9 2.1 1.0 18.6 1.9 3.2 4.1 1.9 1.4 2.5 2.4 6.7 3.4 1.8 1.3 1.7 7.1 1.3 5.1 3.2 7.1 - Company ‫االهلي‬ ‫التجاري‬ ‫داللة‬ ‫بنك الدوحة‬ ‫اإلسالمية القابضة‬ ‫الخليجي‬ ‫الريان‬ ‫االجارة‬ ‫ األو ل‬QFC ‫المصرف‬ ‫الدولي‬ ‫الوطني قطر بنك‬ ‫قطروعمان‬ ‫البنوك والخدمات المالية‬ ‫مجمع المناعي‬ ‫الرعاية‬ ‫الميرة‬ ‫السينما‬ ‫قطر للوقود‬ ‫الطبية‬ ‫السالم‬ ‫ودام‬ ‫زاد‬ ‫البضائع والخدمات االستهالكية‬ ‫أعمال‬ ‫الخليج الدولية‬ ‫ا س ت ثمار ال قاب ضة‬ ‫صناعات قطر‬ ‫مسيعيد‬ ‫قامكو‬ ‫كهرباء وماء‬ ‫المستثمرين‬ ‫التحويلية‬ ‫االسمنت‬ ‫الصناعات‬ ‫الخليج‬ ‫الدوحة‬ ‫قطر‬ ‫العامة‬ ‫االسالمية‬ ‫التأمين‬ ‫بروة‬ ‫إزدان القابضة‬ ‫مزايا قطر‬ ‫المتحدة للتنمية‬ ‫العقارات‬ ‫كيوتل‬ ‫فودافون قطر‬ ‫االتصاالت‬ ‫مخازن‬ ‫ناقالت‬ ‫المالحة‬ ‫النقل‬ Source: Qatar Exchange; 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