of  

or
Sign in to continue reading...

GCC Daily Market Update - 18 July

IB Insights
By IB Insights
7 years ago
GCC Daily Market Update - 18 July

Ard, Islam, Mal, Provision


Create FREE account or Login to add your comment
Comments (0)


Transcription

  1. DAILY MARKET UPDATE July 18 , 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) 2,459.1 21,629.7 5,839.7 7,404.1 12,587.2 5,230.2 106,217.0 20,118.9 26,470.6 3,176.5 32,074.8 (0.1) (8.0) 1.7 25.7 (44.6) (5.1) 1,041.3 NA 81.4 (46.0) 54.0 (0.0) (0.0) 0.0 0.4 (0.4) (0.1) 1.0 NA 0.3 (1.4) 0.2 1.5 1.3 3.4 1.3 2.1 2.1 5.8 0.4 2.7 (0.5) 3.7 9.8 9.4 20.1 3.7 9.6 7.6 35.9 5.3 20.3 2.3 20.5 9,436.1 7,288.9 4,575.6 3,602.5 6,800.9 5,073.3 1,315.3 1,652.4 3,329.0 92.5 (59.9) 51.6 29.5 (8.0) 9.5 1.3 6.5 1.4 1.0 (0.8) 1.1 0.8 (0.1) 0.2 0.1 0.4 0.0 4.5 (1.8) 3.4 6.2 0.6 (0.9) 0.4 4.9 1.8 (9.6) 1.1 0.6 2.0 18.3 (12.3) 7.8 5.1 14.7 48.4 46.0 3.0 1,233.7 271.7 (0.5) (0.5) 0.0 6.2 3.3 (1.0) (1.1) 1.3 0.5 1.2 1.2 0.1 0.0 (0.7) 0.7 (14.6) (14.2) (18.5) 7.1 8.4 Source: Bloomberg Global The US stocks remained broadly unchanged yesterday, as investors awaited for additional guidance from the upcoming earnings season. Gains in Utilities and Consumer Discretionary shares were offset by losses in Healthcare stocks. The decline in Healthcare shares, was majorly due to opposition from a few Senators over the passage of the healthcare bill. European stocks traded mostly lower, led by losses in French and German markets. Gains in Telecommunication shares limited the broad market losses yesterday. UK markets bucked the overall trend, ending 0.4% higher, helped by gains Mining stocks, which got a boost from improved metal prices, after Chinese GDP data came in higher than expected. Prospects of tighter control of the economy by the Chinese government outweighed positive GDP data. GCC GCC markets traded mostly higher yesterday. Dubai markets inched higher, as DAMAC Properties extended its gains during yesterday’s session. Islamic Arab Insurance climbed 3.4%, amidst higher trading volume. Sharjah Islamic Bank climbed 2.9%, after the lender reported 6.4% YoY rise in its Q2-17 earnings. Saudi markets inched lower. Banque Saudi Fransi slipped 4.6%, as the stock traded ex-dividend. Yansab retreated 1.8%, after its Q217 net income declined 54.0% YoY. Omani markets traded higher, led by gains in Industrial and Banking sectors. Qatar Qatari markets climbed 1.0%, outperforming its peer GCC indices and ended above 9,400 mark. Buying support from Gulf institutional and nonQatari retail investors drove markets higher. Trade turnover and volumes climbed, with Industrials, Banking and Telecom sectors together accounting for about 83.0% of the total volumes. The market had opened on a weaker note, however, strong buying support during the latter end of the session helped the overall market. Out of 44 companies listed, 42 exchanged hands, of which 30 advanced, 10 declined and 2 remain unchanged. QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All share 13.9 1.4 4.0 57.4 DSM 20 15.5 1.6 3.6 47.3 Saudi Arabia (TASI) 17.3 1.7 3.1 674.3 UAE (ADX) 16.5 1.4 4.5 42.5 UAE (DFM) 16.5 1.3 3.9 111.5 Kuwait (KSE) 18.5 1.2 5.3 49.1 Oman (MSM) 11.4 1.1 5.7 6.2 Source: Bloomberg Bahrain (BAX) 8.2 0.8 6.0 1.6 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 Gulf Warehousing Co Al Khalij Com Bank Ezdan Holding Group Gulf Intl Services Qatar German Co Top Losers Qatar Islamic Insurance Zad Holding Co Al Ahli Bank Vodafone Qatar Widam Food Co Close Price 49.0 14.0 12.9 22.2 7.9 2.2 0.5 0.4 0.5 0.2 4.7 3.7 3.0 2.5 2.2 (12.5) (17.6) (14.6) (28.6) (21.8) (16.9) 210.9 13.6 (17.2) 34.6 11.8 (34.0) 353.5 15.6 (40.3) 2,006.1 NM (34.2) 59.5 NA 63.0 76.7 32.5 8.6 58.6 (1.9) (1.3) (0.5) (0.1) (0.6) (2.9) (1.7) (1.5) (1.5) (1.0) 24.5 (14.0) (12.5) (8.4) (13.8) 3.3 2.3 14.8 (11.8) 14.4 10.0 (13.1) 0.3 10.2 (23.3) 1,375.0 NA (7.3) 21.4 NA Source: Bloomberg; Note: Prices are in local currency. Qatar DSM Index 11,000 10,500 10,000 9,500 9,000 8,500 20/Apr 30.0 20.0 9,436.1 10.0 0.0 4/May 18/May 1/Jun Index Volume (mn) 15/Jun 29/Jun 13/Jul Index Value Closing Level 2,871.0 5,473.8 2,899.6 4,200.1 2,076.9 1,139.1 2,121.6 1D Change (%) 1.2 0.0 0.4 1.4 2.2 0.3 1.7 Buy (%) 38.7 23.1 61.8 9.7 28.5 38.2 Sell (%) 43.5 30.0 73.5 14.8 11.7 26.5 Source: Qatar Exchange Qatar Trading Summary Qatari Individuals Qatari Institutions Qatari – Total Foreign Individuals Foreign Institutions Foreign – Total Source: Qatar Stock Exchange, Bloomberg 1
  2. DAILY MARKET UPDATE July 18 , 2017 GLOBAL NEWS  Eurozone consumer prices rose 1.3% YoY in June-17 decelerating form 1.4% in May-17 and 1.9% in April-17 mostly because of the slowdown of energy prices, which grew by 1.9% YoY from 4.5% and 7.6% in the comparable periods. (Source: Reuters)  China’s GDP grew by 6.9% YoY in Q2-17 driven by stronger exports and production, particularly in steel. (Source: Reuters)  China’s total steel output rose by 5.7% YoY and 0.6% MoM to 73.2mn tons, aluminum production rose by 7.4% YoY to 2.9mn tons. (Source:  (Source: Trade Arabia)  Saudi Aramco’s Energy Industrial City’s first phase covering an area of 12 sq.km will be completed by 2021. (Source: Zawya)  Saudi Arabia based Sadara Chemical Company has started its new amines plant which comprises of the ethanol amines plant and the ethyleneamines plant. These will produce products from detergents and personal care items to industrial products such as textiles, plastics, cement, wood, gas, rubber, oil, asphalt, and pharmaceuticals. (Source: Reuters)  China's real estate investment, including residential, commercial and office space, grew by 8.2% YoY in Q2-17 as compared to 9.1% in Q117. (Source: Reuters)  Turkey’s budget deficit stood at TRY 13.7bn (USD 3.9bn) in June-17 as compared to the surplus of TRY 6.4bn (USD 1.8bn) in May-17. Budget deficit for first six months stood at TRY 25.2bn (USD 6.9bn) in June-17, the nation’s Finance Minister said. (Source: AA)  Turkey’s private sector long-term foreign debt rose 1.9% MoM in May17 to USD 209.0bn. Non-financial private companies’ long-term debt stock also rose by 1.5% MoM in May-17 to USD 99.7bn while private banks’ debt rose by 2.6% to USD 91.6bn. (Source: bne) Trade Arabia)  The total assets of Islamic banks and windows combined amounted to OMR 3.1 bn at the end of 2016, constituting 10.3% of the banking system assets, according to the CBO annual report. (Source: Oman Tribune)  Oman based Bank Muscat’s net profit declined 6.8% YoY in H1-17 to OMR 84.3mn. Net interest income from conventional banking stood at OMR 125.6mn and net income from Islamic financing was OMR 11.8mn. (Source: Trade Arabia)  Oman Power and Water Procurement Company is planning to develop a seawater desalination project with a capacity of 100,000 m3 per day in Dhofar area. The new project is expected to meet an annual average growth of 9.0% in potable water demand for the next seven years. GCC NEWS   GCC sovereigns and government related entities lead the debt issuance from Middle East, which increased by more than 50.0% YoY to USD 57.4bn in H1-17, according to Thomson Reuters statistics. The high growth was majorly on back of Saudi Arabia’s USD 9.0bn international Islamic bond in April-17 and Kuwait’s USD 8.0bn debut international bond sale in March-17. (Source: Zawya) Dubai SME, the agency of Dubai Economy mandated to develop the small and medium enterprise (SME) sector, inked an MoU with Souq.com to launch an e-commerce initiative for SMEs to provide its members with integrated e-commerce solutions comprising online product display, e-payment, product delivery and logistics support. (Source: Trade Arabia)  Dubai Electricity and Water Authority has awarded contracts worth AED 95.0mn (USD 25.8mn) to several national companies for the supply of 1,290 km of low voltage cables for household connections. (Source: Trade Arabia)  Foreign investors purchased securities worth AED 2.1bn on the Abu Dhabi Securities Exchange in June-17, accounting for 55.4% of the total buy trades. (Source: WAM)  Abu Dhabi National Oil Company signed a framework agreement with European gas major Borealis, with an aim to advance their two key projects that will expand their downstream petrochemicals business.  National Bank of Fujairah’s net profit rose 24.4% YoY in Q2-17 to AED 154.9mn (USD 42.2mn) due to an improvement in the impairment provisions during the current quarter and a high level of resilience in its core business. Banks’s net profit surged 2.2% YoY in H1-17 to AED 281.0mn. (Source: Trade Arabia)  Saudi Public Transport Authority is looking to open doors to private companies globally, in the field of building and operation of railway transport services in the Kingdom. In a related development, the Ministry of Environment, Water and Agriculture has announced that it plans to start privatising the sewage sector offering three key projects in five cities and governorates across the Kingdom. (Source: Trade Arabia)  Saudi Arabia’s Ministry of Housing has launched 27,658 housing products across the Kingdom within its housing program, “sakani”, under which the government plans to allocate and deliver 280,000 housing products in 2017, according to SPA report. (Source: Zawya) Qatar’s non-oil exports reached to QAR 8.6bn in H1-17 majorly driven by March-17 exports which stood at QAR 1.8bn, according to the Qatar Chamber’s monthly report on the private sector’s foreign trade. (Source: Gulf Times)  About 56km of roads linking Hamad Port to different parts of Doha and the Industrial Area have been opened so far this year, according to the Public Works Authority (Ashghal). (Source: Gulf Times)  Ashghal has opened its first phase (125-km-long road) of the New Orbital Highway and Truck Route, which will serve as a link between the southern and northern areas of the country. (Source: Trade Arabia)  Qatar’s second stadium being built for the football World Cup 2022 will be completed on schedule next year despite blockade, said project manager. He added that more than 50.0% of concrete work at the stadium has been completed while steel material for the roof structure has already been delivered. (Source: Qatar Tribune)  Qatar based AlJaber Engineering company has been awarded contracts worth QAR 1.6bn (USD 438.0mn) by New Port Project steering committee for designing and building food security facilities and warehouses at Hamad Port in Doha. (Source: Trade Arabia)  Masraf Al Rayan’s reported a net profit of QAR 1.0bn in the H1-17 as its financing and investments grew 5.8% YoY to QAR 67.9bn and 34.7% YoY to QAR 19.6bn respectively. Total assets grew 5.4% to QAR 93.2bn. (Source: WAM)  Bank of Bahrain and Kuwait (BBK) registered a 3.8% YoY growth in net profit during Q2-17 to BHD 16.4mn (USD 43.2mn). In H1-17 profits grew by 8.1% to BHD 32.2mn. (Source: Mubasher) QATAR NEWS (Source: Zawya)  Saudi Arabia’s Industrial Energy City will contribute SAR 22.5bn (USD 6.0bn) to the nation’s economy and will also provide direct and indirect jobs, Minister of Energy, Industry and Mineral Resources said. (Source: Gulf Times)  Manateq and five Qatari property developers signed QAR 488.5mn worth deal for the construction of hotels and hotel apartment complexes inside the Ras Bufontas Special Economic Zone, said Manateq CEO. He added that construction is expected to be completed by April-19. (Source: Gulf Times)  Al Khalij Commercial Bank reported a net profit QAR 319.8mn (USD 87.0mn) in H1-17 compared to QAR 320.0mn driven by effective cost management and prudent provisioning on the credit portfolio. (Source: Trade Arabia) 2
  3. DAILY MARKET UPDATE July 18 , 2017 FX RATES Currencies Value Currencies Value EUR/USD 1.1508 USD/QAR 3.6415 112.6300 EUR/QAR 4.1906 USD/JPY GBP/USD 1.3085 JPY/QAR 0.0323 USD/CHF 0.9626 GBP/QAR 4.7649 USD/CAD 1.2697 CHF/QAR 3.7830 AUD/USD 0.7801 CAD/QAR 2.8680 NZD/USD 0.7318 AUD/QAR 2.8407 USD/INR 63.8550 INR/QAR 0.0570 USD/TRY 3.5285 TRY/QAR 1.0320 USD/ZAR 12.9493 ZAR/QAR 0.2812 USD/BRL 3.1824 BRL/QAR 1.1443 FX Commentary USD hit its lowest level against a basket of major currencies in 10 months on Monday, with the dollar index down to 95.018, as recently released weak economic data continued to weigh on the greenback. US rate hike expectations have been pared to less than a 50% probability after the latest inflation print on Friday and with no top-tier data this week. The CAD was little changed against the USD, holding near 14-month highs following a Bank of Canada interest rate hike last week even as domestic data showed a big drop in home sales. Emerging market currencies along with AUD got a major boost, following higher than expected growth in China’s GDP. AUD hit a more than two-year high as it is a major trading partner to China and is one of the high yielding developed economy, thereby further benefitting from the risk on mode following the data release. Source: Bloomberg INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 1.18 1.19 1.23 1.30 1.74 (0.42) (0.38) (0.37) (0.33) (0.15) 1.83 1.99 2.27 2.52 3.03 4.0% SAIBOR NA 1.36 1.46 1.80 2.24 2.0% EIBOR 0.99 1.17 1.32 1.55 2.13 BMIBOR 1.00 1.25 1.75 1.98 2.73 NA NA 1.50 1.75 2.31 LIBOR EURIBOR QAIBOR KIBOR 1 Month 3 Month 1 Year Qatar vs US Treasuries Yields 6.0% 2.25% 1.36% 0.0% 2 Yrs 3.01% 3.25% 3.49% 1.85% 2.11% 2.30% 7 Yrs 10 Yrs US 5 Yrs Qatar 4.43% 2.89% 30 Yrs Source: Bloomberg Source: Bloomberg US Swap Rates 5 Years CDS 3.0% US 26.5 (2.9) Turkey 190.4 (94.9) UK 21.3 (11.7) Brazil 224.3 (32.5) Germany 16.5 (5.3) Egypt 407.5 (31.1) France 22.4 (18.5) Abu Dhabi Italy 146.2 (10.4) Greece 604.7 Russia 172.2 Japan 27.6 2.0% 1.59% 1.91% 2.55% 1.84% 1.0% 0.0% 2.25% 2.07% 0.90% 1.26% 1.11% 2 Yrs 1.44% 5 Yrs 7 Yrs Current 10 Yrs Last Year 30 Yrs Spreads 6M Change 5 Years CDS Spread 6M Change 61.6 (0.9) Bahrain 240.8 (36.2) (554.2) Dubai 127.7 (21.3) (12.7) Qatar 106.8 (11.0) (4.9) Saudi Arabia 105.9 17.6 Source: Bloomberg Source: Bloomberg ECONOMIC CALENDAR Time Country Event Period Survey Prior 11:30 UK CPI MoM Jun 0.20% 0.30% 11:30 UK CPI YoY Jun 2.90% 2.90% 12:00 Eurozone ZEW Survey Current Situation Jul 88.0 88.0 12:00 US ZEW Survey Expectations Jul 18.0 18.6 Source: Bloomberg GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) Al Khalij Commercial Bank NA NA NA 158.9 (3.2) (1.3) Masraf Al Rayan NA NA NA 509.7 0.9 (0.1) Yanbu National Petrochemical NA NA NA 345.7 (49.8) (43.2) Saudi Kayan Petrochemical Co NA NA NA 242.0 165.9 (8.8) 43.3 Gulf Bank 64.0 14.2 4.1 13.4 12.4 Commercial Bank of Kuwait NA NA NA 1.2 (68.0) 50.6 Human Soft Holding Co NA NA NA 6.0 19.8 (15.4) Al Ahli Bank Of Kuwait 55.8 2.7 2.1 7.7 5.6 (9.5) Qassim Cement NA NA NA 53.2 (53.8) (33.6) BBK Bsc (Kuwait) NA NA NA 16.4 2.4 4.2 Source: Bloomberg; Note: All figures are in local currency 3
  4. DAILY MARKET UPDATE July 18 , 2017 QSE MAIN FINANCIAL INDICATORS (As on 13th July 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 (%) 2.9 0.0 0.0 8.2 2.0 5.6 4.8 3.5 0.0 5.0 7.2 2.3 5.8 3.3 5.1 3.7 6.6 3.5 5.7 0.0 8.7 5.9 5.8 5.6 5.4 4.6 4.0 4.5 3.6 2.1 6.9 5.1 4.1 3.5 4.1 1.8 4.6 5.4 2.4 7.4 4.0 0.0 7.2 5.1 3.7 0.0 3.0 3.4 5.4 4.8 4.5 3.5 P/B Ratio (x) 1.4 0.7 2.1 1.1 2.1 0.8 2.7 0.7 0.9 1.7 1.4 2.0 0.9 1.7 1.5 2.4 2.2 1.4 1.7 1.2 0.7 4.1 0.7 1.6 0.9 1.1 1.9 1.2 2.9 2.4 1.4 1.6 1.7 0.8 0.7 2.4 0.5 3.1 1.5 0.8 1.1 0.9 0.6 0.9 1.4 1.6 1.4 1.9 1.3 0.6 1.0 1.6 P/E Ratio (x) 10.4 40.4 (H) (‫)م‬ 8.9 73.8 11.3 15.5 (H) (‫)م‬ (M) (‫)س‬ 10.2 10.6 9.9 24.3 11.3 7.2 33.3 14.3 47.5 13.6 (M) (‫)س‬ 10.3 11.2 6.2 12.0 15.7 (H) (‫)م‬ 19.2 17.0 14.7 21.1 10.3 10.7 17.6 33.9 9.5 19.4 13.8 15.2 17.9 9.2 15.3 24.0 10.4 12.7 15.9 (M) (‫)س‬ 23.0 13.1 11.3 14.2 12.5 14.8 EPS (QR) 3.2 0.8 0.5 3.4 0.7 1.2 2.7 0.1 (M) (‫)س‬ 9.4 5.3 13.8 0.4 5.5 11.0 2.5 9.5 0.6 8.2 (M) (‫)س‬ 0.9 5.3 12.6 5.4 0.7 0.0 5.3 0.8 14.0 2.3 4.2 6.7 2.4 0.5 1.6 3.7 2.4 4.3 3.0 3.7 0.8 0.5 1.7 1.2 5.9 (M) (‫)س‬ 1.4 3.6 1.6 5.2 2.6 3.0 BV/Share (QR) 24.2 42.0 9.2 29.1 24.3 16.7 15.6 20.1 9.0 57.9 39.2 68.1 9.6 36.8 54.5 33.9 63.0 20.9 65.8 6.4 14.0 14.5 112.9 41.5 12.7 19.5 52.9 10.9 72.3 20.1 30.9 44.8 23.9 20.9 21.3 29.2 71.6 21.0 35.7 45.6 11.7 12.6 30.2 17.4 68.5 5.5 22.8 25.2 14.7 122.0 33.3 27.4 Stock Price (QR) 33.0 30.3 19.1 30.5 51.1 13.5 42.1 14.2 7.8 95.5 55.8 136.7 8.6 79.1 81.4 136.3 29.0 112.0 7.8 9.2 58.9 78.0 11.2 21.9 101.0 13.5 206.0 48.8 43.2 71.1 17.3 14.7 70.9 33.0 64.9 34.0 12.6 11.0 17.5 94.1 8.6 47.0 18.5 73.7 - 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