GCC Daily Market Update - 17 July

Transcription

1. July 17 , 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) 3,863.2 31,288.3 11,983.6 7,159.0 12,864.7 6,036.0 2,382.4 26,788.5 20,297.7 3,228.1 53,760.8 72.8 658.1 215.2 119.2 345.1 120.6 (25.7) 145.1 (453.5) (53.7) 344.6 1.9 2.2 1.8 1.7 2.8 2.0 (1.1) 0.5 (2.2) (1.6) 0.7 1.0 0.6 3.4 (0.1) 0.4 1.8 (2.5) 3.3 (7.1) (4.7) 1.6 (18.9) (13.9) (26.6) (3.1) (19.0) (15.6) 28.3 (7.0) (13.2) (11.3) . (7.7) 11,867.8 11,163.0 9,250.0 3,160.2 7,360.3 4,141.2 1,850.1 732.0 4,901.7 (15.5) (126.7) 6.0 6.4 (34.8) 26.6 (22.2) 0.6 75.7 (0.1) (1.1) 0.1 0.2 (0.5) 0.6 (1.2) 0.1 1.6 (2.7) (3.1) (1.0) (1.3) (0.7) 0.5 0.6 (2.3) 1.2 2.1 (1.1) 9.0 (1.1) 4.5 0.3 2.9 (1.1) (24.1) 101.2 97.6 7.0 1,702.4 3.2 2.1 1.8 0.4 (2.1) 0.0 2.1 1.9 6.3 (0.1) 0.7 (11.9) (7.7) 29.4 (5.6) (12.9) 30.1 29.8 88.1 (6.8) (27.4) Global Wall Street’s main indices rose as encouraging retail sales data allayed fears of an economic slowdown. The DJIA rose 2.2% while the S&P 500 gained 1.9%, the Nasdaq 100 added 1.8%. Following 2-day decline as investors struggled with shifting expectations of US interest rate hikes, automakers and retail firms led a recovery in European markets on Friday. The continent-wide STOXX 600 index ended 1.8% higher after falling 2.6% in the last 2 sessions. In Asia, Japan’s Nikkei index ended 0.5% higher for the third straight session on Friday in subdued trade after moving sideways for most of the session. China’s stock market dragged by property developers and financial firms, following homebuyers’ threats to stop mortgage payments on unfinished apartments despite Beijing’s assurance to solve the crisis. GCC Saudi Arabia's benchmark index dropped 1.1%, hitting its lowest since lateDecember, dragged down by a 1% fall in Retal Urban Development Company. Stock markets in UAE ended higher on Friday, as oil prices firmed following reports that US was not expecting Saudi Arabia to immediately boost oil production. Dubai's index rose 0.2%, supported by a 0.5% gain in Dubai Islamic Bank. Abu Dhabi index edged 0.1% higher, with Abu Dhabi National Oil Co for Distribution rising 1.2% and National Marine Dredging jumped 1.9%. Qatar The Qatari benchmark index lost 0.1% hit by 9.4% in Qatar Cinema & Film Distributing. Qatar Islamic Bank rising 3.7%. Out of the 44 traded stocks, 11 advanced and 31 declined and 2 remained unchanged. Total traded volume in the market was lower than the previous trading session. The Transportation Index advanced 1.4% and Banks & Financial Services index increased by 1% while Industrials Index lower by 2.8%. Source: Refinitiv Eikon QATAR MARKET OVERVIEW Dividend Value Traded Yield (%) (USD mn) Qatar DSM Index P/E (x) P/B (x) Qatar All Share 14.1 1.4 3.7 103.9 DSM 20 14.1 1.5 3.8 96.3 Saudi Arabia (TASI) 18.5 2.6 3.0 1,132.7 UAE (ADX) 20.0 2.5 2.1 359.4 UAE (DFM) 13.1 1.1 0.0 58.2 Kuwait (KSE) 12.5 1.6 2.9 183.3 Oman (MSM) 11.2 0.8 5.1 2.5 Source: Refinitiv Eikon Bahrain (BAX) 7.1 1.0 4.5 0.8 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 QA ISLAMIC BK QA GAS TRANSPO UNITED DVLPMNT QNB VODAFONE QATAR Top Losers QA CINEMA & FI NAT LEASING CO GULF INTR SERV EZDAN HOLIDING ESTITHMAR HLD 23.0 3.9 1.4 19.0 1.6 3.3 0.8 1.7 1.0 1.6 0.8 0.1 0.0 0.3 0.0 (0.3) (0.1) (0.2) (0.1) (0.1) Performance YTD YoY (%) (%) 3.7 2.6 2.3 1.4 1.3 (9.4) (8.7) (8.3) (5.2) (5.0) 25.5 18.2 (9.3) (5.9) (4.6) (6.6) (14.8) 0.8 (29.1) 29.8 Source: Refinitiv Eikon; Note: Prices are in local currency. 35.1 29.4 (5.6) 6.7 0.3 (13.9) (29.9) 17.4 (41.3) 48.1 Vol. (‘000) P/E TTM 1,161.9 4,072.0 1,277.1 3,177.7 1,502.6 15.7 15.3 13.8 14.1 18.2 1.0 3,285.0 19,503.1 6,206.1 7,316.4 78.6 NA 22.5 NA 49.4 16,000 15,000 14,000 13,000 12,000 11,000 10,000 19-Apr 600.0 11.867.8 400.0 200.0 0.0 3-May 17-May 31-May Index Volume (mn) 14-Jun 28-Jun 12-Jul Index Value Closing Level 5,040.6 8,079.0 4,197.4 2,606.2 1,731.1 1,173.4 4,236.9 1D Change (%) 1.0 0.0 (2.8) (0.7) (0.5) (0.0) 1.4 Source: Refinitiv Eikon Qatar Trading Summary Buy (%) Sell (%) Qatari Individuals 28.5 27.0 Qatari Institutions 9.9 25.4 Qatari – Total 38.4 52.4 Foreign Individuals 16.6 15.0 Foreign Institutions 45.0 61.6 32.6 47.6 Foreign – Total Source: Qatar Exchange 1
2. July 17 , 2022 GLOBAL NEWS  The number of Americans filing new unemployment claims increased for the 2nd week in a row last week, indicating some cooling in the labour market amid tighter monetary policy and financial conditions. For the week ending July 9, initial claims for state unemployment benefits increased by 9,000 to a seasonally adjusted 244,000. (Source: Reuters)  Twitter Inc was down for thousands of users worldwide, the company's first outage since February. In the US, there were over 27,000 reports of people having problems with Twitter. (Source: Reuters)  This year, Japan ranked 116th out of 146 countries in the gender gap rankings, trailing both the East Asia and Pacific group and the Group of Seven major economies, according to a Swiss-based think tank. (Source: Mainichi)  Panasonic Corp. of Japan chose Kansas as the site for a multibilliondollar mega-factory to produce EV batteries for Tesla and other automakers. (Source: Mainichi)  China's exports are expected to maintain stable growth during the second half of the year as trade activity continues to vitalize, providing stronger support to overall economic expansion, according to trade experts and economists. (Source: China Daily)  China will introduce stronger policy steps to keep payrolls stable and boost job creation in an effort to stabilize overall employment, according to a decision made at the State Council's Executive Meeting. (Source: China Daily)  The US House of Representatives approved legislation that would create a new hurdle for President Joe Biden’s plan to sell F-16 fighter jets to Turkey. (Source: Daily Sabah) GCC NEWS  Azizi Developments has announced that it has contracted Athens Technical Services to supply and install Tarkett vinyl flooring for the gyms at its masterplanned waterfront community project. (Source: Zawya)  A new system that allows tenants in Dubai to pay rent via direct debit went into effect. The system allows tenants to avoid submitting postdated rental cheques to their real estate companies. (Source: Zawya)  Dubai's Emirates airline said it was planning to operate as scheduled to and from London's Heathrow airport, with no plans to cut capacity after the airport threatened legal action if capacity is not cut. (Source: Zawya)  The Department of Planning and Development, Trakhees, the regulatory arm of Ports, Customs and Free Zone Corporation in Dubai, has awarded green building certificate to 32 projects completed in 2022 which are located in its Special Development Zones. (Source: Trade Arabia)  Cybersecurity spending for the energy industry will reach USD 10bn by 2025 spurred by rapid digitalization of the sector, says GlobalData. (Source: Trade Arabia)  Abu Dhabi Commercial Bank has announced that it has joined the Arab Monetary Fund's Buna system to provide its customers with an enhanced regional cross-border payments system, in line with the bank's digital transformation strategy. (Source: Zawya)  The Abu Dhabi Fund for Development and the Abu Dhabi Exports Office will provide financing to Bahrain's Electricity and Water Authority for a water supply network project worth AED 337.9mn (USD 91.9mn). According to the signed agreements, ADFD will lend AED 150.6mn, while ADEX has committed AED 187.32mn. (Source: AbcBahrain)  The annual consumer inflation rate in Saudi Arabia increased to 2.3%, up from 2.2% in May. The slight increase in the inflation rate was primarily due to an increase in food and beverage prices. This category's growth rate reached 4.4%. (Source: Arab News)  Saudi-based East Pipes Integrated Company for Industry has announced that it has been awarded a contract worth SAR 324mn (USD 86.2mn) by Saline Water Conversion Corporation to supply steel pipes for one of the kingdom's key water transmission projects. (Source: Trade Arabia)  Saipem and Saudi construction company Nasser S. Al Hajri Corporation have signed a deal with Saudi Aramco to set up a new entity in the kingdom to execute onshore EPC project in Saudi Arabia, maximizing the use of local resources. (Source: Zawya)  Saudi Naval Base in Jubail prepares tender for infrastructure buildup. The USACE’s Transatlantic Middle East District has already invited contractors to submit information by July 19. (Source: Arab News)  By the end of April 2022, the number of passengers entering the Sultanate of Oman through various airports in the country will have increased by 100%. During the same time, the number of passengers departing from Oman increased by 69%. (Source: Zawya)  Oman Investment Authority says it has green-lighted an exit plan submitted by wholly-owned energy and petrochemicals subsidiary OQ Group envisioning divestments totalling between OMR 1.5bn and OMR 2bn. (Source: Oman Observer)  Omani SMEs saw revenues earned through the In-Country Value programme grow by around 14% of total spending last year, according to the Ministry of Energy and Minerals. (Source: Oman Observer)  The Ministry of Agriculture, Fisheries and Water Resources has indicated that the number of private veterinary clinics licensed to provide artificial insemination services for the livestock sector in the Sultanate of Oman has climbed to 21 as of end-2021. (Source: Oman Observer)  Bank Muscat has announced its preliminary unaudited results for the 6M-22. The Bank posted a net profit of OMR 99.26mn for the period compared to OMR 94.65mn reported in 6M-21, an increase of 4.9%. (Source: Oman Observer)  USD 2bn Bahrain Metro Phase I bid evaluation will be completed by the end of July. Phase 1 of the Bahrain government's ambitious plans to build a 109 km rail-based urban transit network consisting of an elevated corridor with 2 lines totaling 28.6 km in length, 20 stations, and 2 interchanges. (Source: Zawya)  Gulf Air has announced the launch of its Flight Pass system in partnership with Option Town. This new product will allow our passengers to purchase flights in bulk. (Source: Abc-Bahrain)  The delay in the implementation of infrastructure projects in a number of industrial areas hinders and impedes the acceleration of the launch of industrial projects in those areas, reports Annahar daily. (Source: Arab Times) QATAR NEWS  Qatar’s hospitality sector is witnessing a strong rebound with hotels across segments seeing an increase in occupancy rates. Among the hotels, two and one star hotels surged to 93% in May against 50% YoY, according to the PSA data. (Source: The Peninsula)  FIFA World Cup will enhance Qatar’s position on world sports map. Türkiye is cooperating with Qatar in contributing to the success of the 2022 FIFA World Cup. (Source: The Peninsula) Qatar Airways, Etihad, Emirates among world's 20 best airlines for 2022. Qatar Airways bagged the top spot for the second year in a row, with Etihad Airways and Emirates landing the third and 16th position. (Source: Zawya) 2
3. July 17 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0117 USD/QAR 3.6735 138.5300 EUR/QAR 3.7165 USD/JPY GBP/USD 1.1882 JPY/QAR 0.0265 USD/CHF 0.9761 GBP/QAR 4.3649 USD/CAD 1.3030 CHF/QAR 3.7634 AUD/USD 0.6792 CAD/QAR 2.8193 NZD/USD 0.6159 AUD/QAR 2.4950 USD/INR 79.2600 INR/QAR 0.0463 USD/TRY 17.3950 TRY/QAR 0.2112 USD/ZAR 17.0634 ZAR/QAR 0.2153 USD/BRL 5.4082 BRL/QAR 0.6792 FX Commentary The USD edged lower on Friday as investors evaluated how high the Federal Reserve is likely to raise interest rates by when it meets later this month and as investors took profits after a strong rally that sent the greenback to a two-decade high on Thursday. The US Dollar fell 0.5% at 107.98. Other data showed that manufacturing production slumped for a second straight month in June and US consumers tempered their inflation expectations in July. The EUR/USD jumped 0.7% to 1.0087. The GBP/USD went up 0.3% at 1.1852. The USD/JPY traded down 0.3% at 138.53. The USD/CNY went up 0.03% at 6.7565 as the weak data raised doubts about this year's economic growth target. The USD/CAD traded 0.7% lower at 1.3030. The AUD/USD went up 0.7% at 0.6792. The NZD/USD traded up 0.5% at 0.6159. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration Overnight 1 Week 1.57 0.08 2.12 2.74 3.90 (0.65) (0.57) (0.32) 0.07 1.06 QAIBOR 2.25 2.25 2.35 2.45 2.75 SAIBOR 1.90 1.89 1.83 2.83 3.60 EIBOR 1.59 1.69 2.09 2.22 3.49 BMIBOR 2.33 2.57 3.32 3.71 4.85 KIBOR 1.06 1.56 1.81 2.13 2.75 LIBOR EURIBOR 1 Month 3 Month 1 Year Source: Refinitiv Eikon 3.37% 2.0% 0.0% Qatar vs US Treasuries Yields 6.0% 3.55% 4.0% 3.52% 3.13% 3.14% 2.0% 4.67% 3.78% 3.52% 3.05% 2.93% 3.09% 10 Yrs US 30 Yrs 0.0% 2 Yrs 3 Yrs Qatar 5 Yrs Source: Refinitiv Eikon, Investing.com US Swap Rates 4.0% SOVEREIGN YIELD CURVES & CDS SPREAD 5 Years CDS 3.02% 0.87% 2.98% 2.98% 1.33% 1.10% 2.80% 1.68% 0.30% 2 Yrs 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs Source: Refinitiv Eikon Spread 6M Change 5 Years CDS Spread 6M Change US 19.9 8.2 Turkey 906.0 353.3 UK 18.1 7.6 Brazil 325.5 105.0 Germany 18.0 8.9 Egypt 1,303.0 724.8 France 27.5 7.5 Abu Dhabi 71.1 23.6 Italy 156.7 68.1 Bahrain 342.3 46.0 Greece 180.7 70.8 Dubai 141.7 49.6 Russia 12,840.2 12,650.8 Qatar 73.1 24.6 Japan 32.1 14.6 Saudi Arabia 77.1 24.6 Source: Refinitiv Eikon, worldgovernmentbonds.com GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) Omani Qatari Telecom 64.4 3.7 -0.5 NA NA QoQ (%) NA SMN Power Holding 21.4 -4.8 70.1 3.1 -11.7 126.5 Oman Arab Bank NA NA NA 3.5 -51.1 0.6 Gulf International Chemicals 0.5 29.1 -0.9 NA NA NA Al Jazeera Steel Products Co 41.8 15.8 2.7 NA NA NA HSBC Bank Oman NA NA NA 9.4 62.9 74.2 Barka Water and Power Co 3.0 -64.9 -31.7 NA NA NA Construction Materials Ind & Co 0.8 -25.9 -13.2 NA NA NA Ahli Bank NA NA NA 8.3 18.7 9.9 National Biscuit Industries 3.0 85.8 -12.1 0.0 NA NA Al Jazeira Services Co 2.0 9.1 5.8 0.7 3.7 -19.9 Al Maha Petroleum Products 123.3 37.0 23.4 1.7 188.6 86.6 0.0 -87.6 -56.6 0.0 NA NA 10.5 93.8 66.0 NA NA NA Ekttitab Holding Company Voltamp Energy Source: Refinitiv Eikon; Note: All figures are in local currency 3
4. QSE MAIN FINANCIAL INDICATORS (as on 14th 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 (%) 2.90 2.50 2.46 3.13 3.60 3.41 4.39 0.00 0.00 0.00 1.42 0.98 2.98 3.54 0.00 0.00 3.63 1.81 4.50 0.00 3.95 5.19 3.47 4.14 3.41 6.31 6.81 0.00 4.48 4.67 0.00 4.28 0.00 5.45 5.55 4.17 5.88 0.00 2.47 4.81 4.15 3.77 3.94 5.16 0.00 0.00 3.94 3.82 3.77 3.81 3.41 2.46 3.08 3.18 2.73 P/B Ratio (x) 1.73 2.23 1.11 0.53 1.36 2.00 1.16 1.35 0.60 1.09 0.77 1.94 1.58 2.97 4.78 0.58 1.95 1.47 1.92 1.90 1.59 2.39 1.26 1.80 0.96 1.05 2.46 1.53 1.53 0.89 0.97 2.00 1.53 1.33 1.76 0.74 0.86 0.33 1.46 2.77 3.43 0.74 0.45 0.65 0.76 0.89 0.57 1.08 1.51 1.25 0.65 1.15 2.31 1.19 2.17 P/E Ratio (x) 14.08 15.69 12.31 10.26 14.64 18.30 17.60 6.13 1001.25 10.41 87.86 25.73 14.63 25.17 128.68 17.04 26.01 78.61 17.07 0.00 13.52 18.21 25.07 19.06 11.08 13.42 9.53 49.41 13.23 21.70 22.48 16.77 49.41 8.62 11.25 13.99 12.31 16.54 20.01 14.14 17.16 14.54 13.75 11.44 374.41 0.00 13.76 49.03 18.23 33.44 12.69 10.44 15.27 13.87 18.77 July 17, 2022 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) 18.99 23.00 6.51 2.40 3.97 10.99 3.87 1.14 0.80 1.38 0.70 5.10 17.50 1.37 0.79 6.88 3.32 16.89 2.75 7.60 17.33 1.53 3.52 4.75 14.69 1.60 17.86 1.07 1.73 2.57 1.60 1.47 2.40 2.04 1.99 3.04 8.32 5.30 1.40 3.39 0.95 0.76 7.85 1.59 8.80 4.07 3.90 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