GCC Daily Market Update - 17 April
GCC Daily Market Update - 17 April
Ard, Islam, Mal
Ard, Islam, Mal
Organisation Tags (17)
Dubai Electricity and Water Authority
Gulf International
Dubai Municipality
Department of Economic Development
Qatar Islamic Bank
Riyad Bank
Sharjah Islamic Bank
Bank Islam Malaysia
Saudi Investment Bank
Al Hilal Bank
GFH Financial Group
Doha Bank
Ahli Bank
Bloomberg
Barwa
Dana Gas PJSC
Qatar National Bank
Transcription
- DAILY MARKET UPDATE April 17 , 2017 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) S&P GCC Dow Jones Islamic Commodity Brent (USD/bbl) WTI (USD/bbl) Natural Gas (USD/mmBTU) Gold Spot (USD/t oz.) Copper (USD/lb) 2,329.0 20,453.3 5,353.6 7,327.6 12,109.0 5,071.1 90,063.7 18,335.6 24,261.7 3,246.1 29,461.5 NA NA NA NA NA NA 193.0 (91.2) NA (29.9) NA NA NA NA NA NA NA 0.2 (0.5) NA (0.9) NA (1.4) (1.0) (1.5) 0.1 (1.7) (1.0) 1.3 (3.0) 0.6 0.7 (0.5) 4.0 3.5 10.1 2.6 5.5 4.3 15.3 (4.1) 10.3 4.6 10.6 10,431.3 7,005.4 4,489.2 3,453.2 6,969.2 5,550.7 1,344.7 1,662.8 3,100.2 (20.1) (71.5) (28.9) (56.1) (38.7) (20.9) (11.5) 0.0 (0.1) (0.2) (1.0) (0.6) (1.6) (0.6) (0.4) (0.9) 0.0 (0.0) 0.4 0.1 1.0 (0.8) (0.9) 0.0 (0.8) 1.3 (0.8) (0.1) (2.8) (1.3) (2.2) 21.2 (4.0) 10.2 5.8 6.8 55.9 53.2 3.2 1,285.9 257.1 NA NA NA NA NA NA NA NA NA NA 4.8 4.2 0.2 3.1 (2.7) (2.5) (1.9) (14.2) 11.7 3.1 Global The US and European markets were closed on Friday on the occasion of Good Friday. In Asia, most indices fell with further rise in geopolitical tension where markets were already wary of risks over Syria as well as over the outcome of the French presidential election. Nikkei closed to its lowest in 2017, after US dropped a massive non-nuclear bomb in Afghanistan. A comment from a North Korean official that “country will go to war if the US chooses to provoke it” further dampened the investors’ sentiments. Shanghai Composite was down by 0.9% amidst concerns over tighter regulations. Moreover, a slew of weak economic indicators, including inflation and trade data, released during the week questioned sustainability of the economic recovery. GCC All of the Gulf indices closed in red on Sunday. Saudi Arabia benchmark index was down 1.0% mainly dragged by Banking shares on the news that US insurers have filed a lawsuit against two Saudi banks in an attempt to prove these entities’ alleged affiliation with Osama bin Laden's family and hold them liable for the 9/11 attack. Abu Dhabi Index fell with Dana Gas dropping 4.4% after its board meeting showed that company is under severe cash constraint. Real Estate stocks also weighed the index as investors cashed out on disappointment over the softening of property prices in the emirate in the first quarter. Dubai’s index fell 1.6% mainly dragged by the Construction sector shares with Arabtec down 9.7%. Qatar QE index fell by 0.2% on Sunday due to lower net buying from local retail investors and institutions. Bearish trends were seen in Real Estate, Industrial, Transport and Banking stocks. Trade turnover declined amidst higher volumes in the market, with Telecom and Banking sectors together accounting for more than 76% of the total volumes. Out of 44 stocks, 36 exchanged hands, out of which 7 rose, 25 fell and 4 remained unchanged. Source: Bloomberg QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All share 15.1 1.5 3.5 41.1 DSM 20 15.4 1.5 3.5 32.0 Saudi Arabia (TASI) 17.2 1.6 3.3 899.4 UAE (ADX) 17.7 1.3 4.4 33.2 UAE (DFM) 14.8 1.3 4.0 59.4 Kuwait (KSE) 22.3 1.3 3.4 92.2 Oman (MSM) 12.2 1.1 5.3 4.9 Source: Bloomberg Bahrain (BAX) 8.8 0.8 5.8 1.2 1D Change Performance Value (%) YTD (%) YoY (%) Vol. P/E (‘000) TTM QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation GCC Fundamentals Dividend Value Traded Yield (%) (USD mn) Source: Bloomberg Qatar Trading Activity Top Gainers Ooredoo Qsc QGMD National Leasing Gulf Inter Services Aamal Co Top Losers Qatar Industrial Manuf Dlala Holding Commercial Bank Qsc United Development Barwa Real Estate Co Close Price 106.8 9.7 18.2 27.9 14.5 1.8 0.1 0.2 0.2 0.1 1.7 1.5 1.3 0.5 0.5 4.9 (4.1) 19.1 (10.3) 6.2 17.2 (23.5) (4.2) (22.7) 9.3 134.3 4.6 667.8 18.3 43.4 15.6 NA 179.1 78.5 19.6 43.6 21.7 31.5 19.6 35.5 (1.6) (0.4) (0.5) (0.3) (0.5) (3.5) (1.9) (1.6) (1.5) (1.4) (2.0) 1.0 1.8 (5.3) 6.8 14.7 19.4 (11.8) 1.8 2.9 0.1 23.6 26.0 114.5 100.6 10.7 157.9 40.2 11.1 8.6 Source: Bloomberg; Note: Prices are in local currency. Qatar DSM Index 60.0 11,000 10,431.3 10,500 10,000 22/Jan 40.0 20.0 5/Feb 19/Feb 5/Mar Index Volume (mn) 19/Mar 2/Apr 0.0 16/Apr Index Value Closing Level 3,056.1 6,429.7 3,296.0 4,280.9 2,377.4 1,292.7 2,294.9 1D Change (%) (0.3) (0.0) (0.4) (0.0) (0.5) 1.4 (0.3) Buy (%) 52.9 32.0 84.9 10.4 4.8 15.1 Sell (%) 49.1 31.5 80.6 11.6 7.8 19.4 Source: Qatar Exchange Qatar Trading Summary Qatari Individuals Qatari Institutions Qatari – Total Foreign Individuals Foreign Institutions Foreign – Total Source: Qatar Stock Exchange, Bloomberg 1
- DAILY MARKET UPDATE April 17 , 2017 GLOBAL NEWS The US stopped short of branding China a currency manipulator, but urged the world’s second-largest economy to let the yuan rise with market forces and embrace more trade. (Source: Business Mirror) A post-Brexit trade deal should be governed by a new court system that is fairer to workers, Frances O’Grady, UK’s Trade Union Congress’ general secretary said. (Source: The Guardian) Real estate investment in China remained robust in Q1-17 as the pace of new construction quickened, despite intensified government cooling measures. Strong property investment helped China’s fixedasset investment excluding rural areas expand 9.2% YoY in Q1-17. (Source: Bloomberg) Saudi Arabia raised USD 9.0bn in its first dollar-denominated Islamic bond sale, USD 1.0bn more than what the government was said to be planning to issue initially. The government sold a USD 4.5bn 5-year tranche at 100 bps over the mid-swaps rate and an equally-sized 10year tranche at a spread of 140 bps to the benchmark. (Source: Bloomberg) Saudi Arabia based Al AbdulKarim Holding is collaborating with Panasonic Marketing Middle East and Africa for showcasing its highefficiency solar panels at a major renewable energy forum in Riyadh, Saudi Arabia. (Source: Trade Arabia) Bahrain based Alba has secured commitment worth USD 700.0mn from Export Credit Agency (ECA) to finance Line 6 Expansion project. (Source: Trade Arabia) India's economic growth is expected to pick up speed from 6.8% in 2016 to 7.2% by 2017 after a modest setback due to weaker than expected investments and effects of withdrawal of large denomination bank notes, a World Bank report showed. (Source: Times of Oman based Daleel Petroleum has awarded a contract, representing phase 2 expansion of the company’s gas processing plant, for a new gas treatment train to its processing facilities in onshore Block 5 in Dhahirah Governorate, a report said. (Source: Trade Arabia) Kuwait based Nation Bank of Kuwait reported a rise in net profit by 8.1% QoQ to KWD 85.4mn in Q1-17 due to higher net interest income and income from Islamic financing as a result of strong growth in business volumes. (Source: Gulf Base) Trade Arabia) Turkey has accomplished economic growth double the European Union and OECD average despite last year’s political difficulties, the nation’s prime minister said. (Source: Albawaba) Turkish President Recep Tayyip Erdogan has narrowly won a referendum to expand presidential powers, which could keep him in office until 2029. With 99.45% of ballots counted, the "Yes" campaign had won 51.37% and "No" 48.63%. (Source: BBC) GCC NEWS Dubai Municipality has completed its first phase of the ‘Hatta Hiking’ project, part of Hatta Comprehensive Development Plan which aims to boost tourism activity in the region. (Source: Trade Arabia) Department of Economic Development of Dubai (DED) has signed a collaboration agreement with the UAE Telecommunications Regulatory Authority (TRA) for enhancing co-operation and coordination efforts in Network Readiness Index (NRI) that measure how countries are doing in the digital world. (Source: Trade Arabia) QATAR NEWS Qatar is “well-positioned” to manage the impact that lower oil prices have had on its revenue, the IMF has said. The agency further added that The country has taken the necessary first steps to handle new deficits by cutting expenditures and diversifying its economy. (Source: Doha News) Phillipine President Rodrigo R Duterte has assured that the government will honor USD 206mn worth of committed investments from Qatar. (Source: Gulf Times) Dubai Electricity and Water Authority (DEWA) owned Mia Dubai will more than double its current production capacity to 50mn units in 2020, based on a planned additional investment of AED 600.0mn. It will be carried out in 2 phases. (Source: The National) Moushtarayat 2017, the expo organized by Qatar Development Bank (QDB) in partnership with the Ministry of Finance (MoF) has created job opportunities for SMEs worth QAR 2.5bn in relation to the FIFA World Cup 2022. (Source: Gulf Times) A new tender to build Reem Mall on Reem Island which was due to open in 2018, will be awarded later this year, Al Farwaniya Chief Executive Shane Eldstrom told. (Source: Zawya) QIB reported a 12.8% YoY increase in net profit to QAR 555mn. The bank's total assets increased 9.1% YoY to QAR 143.3bn driven by a continued growth in the financing activities. (Source: Gulf Times) Ezdan Holding Group is gearing up for first phase of 'Ezdan Oasis' project, Group CEO Ali Mohamed al-Obaidli announced. The project would be composed of 2,058 residential and commercial units and 180 outlets, including restaurants, cafés, and other vital facilities of different sizes. (Source: Gulf Times) Qatar Industrial Manufacturing Company (QIMC) has signed an agreement with the UK based Cheval Residences to launch luxury serviced apartments in Doha in 2020. (Source: Gulf Times) Ahli bank reported net profit of QAR 170mn in Q1-17 compared to QAR 164mn in Q1-16. EPS amounted to QAR 0.85 for Q1-17. (Source: QE) Mazaya has announced that its Extra Ordinary General Assembly meeting was not held on 12th April-17, due to non-availability of the required quorum. The next meeting will be held on Monday, 17th April17. (Source: QE) Abu Dhabi City Municipality (ADM) has inked musataha agreement worth AED 172.0mn (USD 46.8mn) with Desert General Transport and Clearance Co for the construction of a community market. (Source: Construction Week Online) Abu Dhabi based Mubadala Development Company and Eshraq Properties announced their plans to set up a new Real Estate company to jointly develop plots in Abu Dhabi. (Source: Trade Arabia) Sharjah Islamic Bank has reported a 5.9% YoY increase in net profit by to AED 139.1mn in Q1-17.Total assets reached AED 34.6bn in Q1-17 from AED 33.5bn at the end of 2016. (Source: Gulf Base) Oman Telecommunications Company reported a decline in net profit by 31.6% YoY to OMR 23.8mn in Q1-17. This was driven by increase in royalty expenses by OMR 6.4mn in Q1-17 as compared to Q1-16. (Source: Times of Oman) India) Bahrain based GFH Capital has partnered with Corporate Office Properties Trust for signing a new investment deal in a US Virginiabased data center with market value beyond USD 100.0mn. (Source: China's steel production totaled 201.1 million tons in Q1-17, up 4.6% YoY, stoking worries of a glut that continues to grow even as Beijing tries to rein in excess capacity in the bloated sector and demand remains flat. (Source: Reuters) Saudi Arabia's government is ordering its ministries and agencies to review billions of dollars' worth of unfinished infrastructure and economic development projects with a view to abandoning or restructuring them, government sources said. (Source: Reuters) 2
- DAILY MARKET UPDATE April 17 , 2017 FX RATES Currencies Value Currencies Value EUR/USD 1.0648 USD/QAR 3.6407 108.6400 EUR/QAR 3.8766 USD/JPY GBP/USD 1.2553 JPY/QAR 0.0335 USD/CHF 1.0055 GBP/QAR 4.5702 USD/CAD 1.3325 CHF/QAR 3.6208 AUD/USD 0.7579 CAD/QAR 2.7322 NZD/USD 0.6998 AUD/QAR 2.7593 USD/INR 63.9113 INR/QAR 0.0570 USD/TRY 3.7092 TRY/QAR 0.9815 USD/ZAR 13.4377 ZAR/QAR 0.2709 USD/BRL 3.1442 BRL/QAR 1.1579 FX Commentary USD ended lower against basket of major currencies on Friday as geopolitical tensions continued to rise after US president Donald Trump said North Korea is a problem that "will be taken care of," as China urged caution and speculation rose that Pyongyang might be on the verge of a sixth nuclear test. The unexpected decline in US CPI in March and drop in US retail sales in March further weighed on currency. CAD weakened against its US counterpart in a quiet trade on account of the good Friday holiday. EUR remained steady against the greenback, though concerns about the outcome of the first round of France's presidential election continued to limit its upside. JPY strengthened against weaker dollar on back of its demand as a safe haven. Source: Bloomberg INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.93 0.95 0.99 1.16 1.77 (0.42) (0.38) (0.37) (0.33) (0.12) QAIBOR 1.45 1.56 1.75 1.98 2.72 4.0% SAIBOR NA 1.09 1.30 1.73 2.21 2.0% EIBOR 0.69 0.83 1.07 1.46 2.21 BMIBOR 0.80 1.00 1.50 1.85 2.53 NA NA 1.38 1.63 2.13 LIBOR EURIBOR KIBOR 1 Month 3 Month 1 Year Qatar vs US Treasuries Yields 6.0% 1.85% 1.18% 0.0% 2 Yrs 2.66% 2.94% 3.21% 1.72% 2.00% 2.20% 7 Yrs 10 Yrs US 5 Yrs Qatar 4.31% 2.87% 30 Yrs Source: Bloomberg Source: Bloomberg US Swap Rates 5 Years CDS 3.0% US 25.0 (1.6) Turkey 234.0 UK 28.1 (9.9) Brazil 225.9 (41.6) Germany 19.4 (0.1) Egypt 350.0 (130.2) 2.0% 1.50% 2.17% 2.00% 1.84% 2.46% 2.10% 1.0% 0.0% 0.86% 1.37% 1.17% 2 Yrs 1.61% 5 Yrs 7 Yrs Current 10 Yrs Last Year 30 Yrs France Spreads 6M Change 5 Years CDS Spread 6M Change (18.8) 58.4 28.9 Abu Dhabi 40.0 (27.5) Italy 190.0 52.8 Bahrain 224.7 (161.4) Greece 909.7 (118.9) Dubai 113.1 (36.2) Russia 168.3 (64.2) Qatar 60.3 (28.3) Japan 26.5 (6.0) Saudi Arabia 92.7 (54.9) Source: Bloomberg Source: Bloomberg ECONOMIC CALENDAR Time Country Event 15:30 US Empire Manufacturing Period Survey Prior Apr 15 17:00 Canada Bloomberg Nanos Confidence 16.4 Apr-14th - 17:00 US 58.9 NAHB Housing Market Index Apr 70 71 11:00 11:00 US Total Net TIC Flows Feb - 110.4b US Net Long-term TIC Flows Feb - 6.3b Source: Bloomberg GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) Qatar Islamic Bank NA NA NA 555.4 12.8 1.0 Bank Dhofar Saog NA NA NA 12.5 (7.7) 16.4 Bankmuscat Saog NA NA NA 44.2 1.1 11.5 Human Soft Holding Co Ksc YoY (%) QoQ (%) NA NA NA 7.1 15.2 (10.6) Oman Telecommunications Co 132.6 (2.2) 7.1 23.8 (31.6) 10.2 Sharjah Islamic Bank 397.2 8.1 (17.3) 139.1 5.9 9.4 Riyad Bank NA NA NA 1,047.0 (10.8) 256.9 Ominvest NA NA NA 8.3 16.7 (6.2) National Bank Of Kuwait NA NA NA 85.4 8.1 12.4 Source: Bloomberg; Note: All figures are in local currency 3
- DAILY MARKET UPDATE April 17 , 2017 QSE MAIN FINANCIAL INDICATORS (As on 13th April 2017) Company Ahli Bank Comm. Bank of Qatar Dlala Doha Bank Islamic Holding Al khalij Commercial Bank Rayan National Leasing First Bank (QFC) Qatar Islamic Bank Intl. Islamic Bank QNB Qatar Oman Banks & Financial Services Mannai Corp. Medicare Al Meera Cinema Qatar Fuel Qatar German Co. Med Salam International Widam Zad Holding Company Consumer Goods & Services Aamal Gulf International Industries Qatar Mesaieed Qatar Electricity & Water The Investors Ind. Manf. Co. National Cement Co. Industrials Al Kaleej 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 (%) 2.7 0.0 0.0 10.0 1.5 5.2 4.7 2.8 0.0 4.7 6.3 2.1 5.2 3.1 5.0 3.0 5.5 3.0 4.7 0.0 7.6 5.5 5.1 4.8 4.2 3.6 3.6 4.0 3.5 1.6 6.6 4.6 3.6 3.0 3.7 1.9 3.8 5.7 2.3 6.9 3.2 0.0 6.3 4.3 3.3 0.0 2.7 3.0 4.8 4.7 4.5 3.4 P/B Ratio (x) 1.4 0.9 2.4 0.8 2.6 0.9 2.5 0.9 0.9 1.7 1.7 2.3 1.0 1.8 1.4 2.8 2.4 1.5 1.9 1.5 0.7 3.8 0.8 1.7 1.2 1.4 2.0 1.3 2.9 3.0 1.4 1.7 1.9 1.0 0.8 2.4 0.5 2.7 1.5 0.8 1.4 1.1 0.6 1.1 1.5 1.7 1.6 2.1 1.4 0.6 1.0 1.6 P/E Ratio (x) 11.1 25.9 (H) ()م 7.4 91.9 12.2 15.4 (H) ()م (M) ()س 11.2 12.3 10.9 22.8 12.0 6.8 43.9 16.6 48.2 15.3 (M) ()س 10.5 12.6 6.9 13.2 19.6 77.0 22.8 18.8 15.5 27.5 11.1 11.0 20.0 38.4 11.4 18.9 15.6 14.4 18.0 8.7 23.1 20.7 11.3 15.7 15.3 (M) ()س 22.9 15.1 12.2 12.1 12.5 14.7 EPS (QR) 3.2 1.2 0.1 4.1 0.7 1.2 2.8 0.1 (M) ()س 9.1 5.2 13.8 0.4 5.6 11.7 2.3 10.0 0.7 8.9 (M) ()س 1.0 5.1 12.8 5.8 0.7 0.4 4.9 0.8 14.0 2.2 4.1 7.3 2.3 0.5 1.4 3.7 2.5 4.2 3.1 4.1 0.7 0.7 1.8 1.2 6.8 (M) ()س 1.6 3.5 1.7 6.2 2.6 3.0 BV/Share (QR) 24.3 37.8 9.1 36.3 25.2 16.8 16.9 20.6 9.0 60.3 37.5 65.1 9.8 36.6 56.5 36.1 70.1 21.6 70.7 6.5 14.7 16.8 108.5 43.9 12.5 20.4 55.4 11.4 75.2 20.4 32.7 47.2 24.8 21.1 21.5 29.7 72.8 23.0 36.4 46.9 11.4 13.2 30.8 17.3 69.3 5.6 23.1 25.9 15.4 123.9 33.3 27.3 Stock Price (QR) 35.0 32.0 22.1 30.1 66.6 14.4 42.5 18.0 8.5 101.8 64.0 149.5 9.7 79.4 101.5 165.1 33.0 135.6 9.6 10.5 63.8 88.9 14.4 27.8 111.4 14.9 217.0 61.3 45.2 80.0 20.0 16.4 70.6 39.1 61.1 36.0 15.8 14.0 19.9 105.0 9.4 53.1 21.0 75.0 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 صناعات قطر مسيعيد 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 materials or for any delays, inaccuracies, errors in, or omissions of the said information. 4
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