GCC Daily Market Update - 19 May

Transcription

1. May 19 , 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) 3,923.7 (165.2) 31,493.6 (1,167.5) 11,928.3 (635.8) 7,438.1 (80.3) 14,007.8 (178.2) 6,352.9 (77.3) 2,393.6 (1.2) 26,911.2 251.5 20,644.3 41.8 3,086.0 (7.7) 54,318.5 (109.9) (4.0) (3.6) (5.1) (1.1) (1.3) (1.2) (0.1) 0.9 0.2 (0.3) (0.2) (5.0) (4.5) (7.2) (1.4) (0.6) (2.8) (1.5) (0.7) (2.3) 1.5 (4.8) (17.7) (13.3) (26.9) 0.7 (11.8) (11.2) 28.9 (7.4) (11.9) (15.0) (6.8) 13,020.3 12,713.4 9,907.8 3,437.3 7,938.0 4,156.3 1,963.1 822.0 5,017.5 162.6 23.5 137.4 (32.6) 144.3 (7.0) 6.5 3.7 (15.7) 1.3 0.2 1.4 (0.9) 1.9 (0.2) 0.3 0.5 (0.3) (4.2) (7.4) (1.7) (7.6) (5.0) (0.1) (4.5) (7.9) (6.2) 12.0 12.7 16.7 7.6 12.7 0.6 9.2 11.1 (22.3) 109.1 109.6 8.4 1,815.9 4.2 (2.8) (2.8) 0.1 (2.3) (0.1) (2.5) (2.5) 0.8 (0.1) (1.4) 1.4 4.2 11.9 (2.5) (1.7) 40.3 45.7 124.3 (0.6) (6.1) Global Wall Street tumbled on Wednesday, with target losing a quarter of its stock market value and highlighting worries about the US economy after the retailer became the latest victim of surging prices. The DJIA fell 3.6%, the S&P 500 lost 2.42% and the Nasdaq 100 dropped 2.55%. European shares slipped led by technology stocks as worries about inflation and monetary policy tightening dampened optimism around China's economic recovery, while shares of UniCredit and Commerzbank rose. The pan-European STOXX 600 index fell 1.1% after rising a little more than 3% since Friday. In Asia, Japan’s Nikkei index rose 0.9%, to its highest close in nearly two weeks on Wednesday, with technology heavyweights leading the rally. China stocks fell, following a recent recovery, dragged down by fears that policies announced by Beijing would not be enough to revive the coronavirus-battered economy. GCC Most stock markets in the Gulf ended higher on Wednesday. Saudi Arabia's benchmark index edged up 0.2%, trimming earlier gains, Saudi National Bank rising 2.9%. On the other hand, Saudi Electricity slid about 8%. Dubai's index fell 0.9%, dragged down by a 2.2% fall in Emaar Properties. Abu Dhabi index advanced 1.4%, with IHC jumping 6.9% after the conglomerate completed a AED 7.3bn investment deal for three Adani companies. Qatar The Qatari benchmark index rose 1.3% on Wednesday helped by the Qatar General Insurance & Reinsurance (+7.5%) and Inma Holding (+5.6%) were the top gainers of the day. Out of the 45 traded stocks, 35 advanced, 10 declined. Total traded volume in the market was higher than the previous trading session. The Consumer Goods & Services index advanced 1.5% and Transportation index increased by 1.2% while Telecoms index 0.3% lower. Source: Refinitiv Eikon QATAR MARKET OVERVIEW Dividend Value Traded Yield (%) (USD mn) Qatar DSM Index P/E (x) P/B (x) Qatar All Share 15.5 1.6 3.4 244.2 DSM 20 15.5 1.6 3.4 222.1 Saudi Arabia (TASI) 20.2 2.6 2.4 2,370.2 UAE (ADX) 21.4 2.7 2.0 359.4 UAE (DFM) 13.1 1.1 0.0 91.2 Kuwait (KSE) 12.7 1.7 2.7 343.8 Oman (MSM) 10.7 0.7 5.2 9.4 Source: Refinitiv Eikon Bahrain (BAX) 7.6 1.1 4.2 1.7 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 GEN INS REI INMA HOLDING QA INTL IS BK SALAM INTL INV ALKHALEEJ GROU Top Losers QLM LIFE QA NAT CEMENT QA ISLAMIC INS AL MEERA CONSM QNB 2.1 6.3 10.8 1.0 3.7 5.7 5.1 8.3 18.4 22.0 0.1 0.3 0.4 0.0 0.1 (0.1) (0.1) (0.1) (0.1) (0.1) Performance YTD YoY (%) (%) 7.5 5.6 4.2 3.2 3.1 (1.6) (1.2) (1.0) (0.5) (0.4) Source: Refinitiv Eikon; Note: Prices are in local currency. 3.5 60.6 17.2 20.9 1.9 13.5 (0.9) 3.8 (6.4) 9.0 (17.1) 25.9 14.9 4.2 (15.2) 13.2 1.1 3.8 (1.1) 24.2 Vol. (‘000) P/E TTM 92.0 4,143.6 1,832.1 38,655.2 1,228.1 19.4 32.0 18.0 21.4 24.2 261.7 65.1 26.5 95.5 7,182.1 18.6 14.7 14.1 19.3 16.2 14,800 14,400 14,000 13,600 13,200 12,800 12,400 12,000 11,600 20-Feb 600.0 13,020.3 400.0 200.0 0.0 6-Mar 20-Mar 3-Apr Index Volume (mn) 17-Apr 1-May 15-May Index Value Closing Level 5,681.3 8,780.1 4,755.7 2,667.1 1,813.1 1,121.3 3,941.6 1D Change (%) 0.9 1.5 1.1 0.9 0.6 (0.3) 1.2 Source: Refinitiv Eikon Qatar Trading Summary Buy (%) Sell (%) Qatari Individuals 30.3 37.4 Qatari Institutions 17.2 25.4 Qatari – Total 47.4 62.9 Foreign Individuals 11.5 12.5 Foreign Institutions 41.1 52.6 24.7 37.1 Foreign – Total Source: Qatar Exchange 1
2. May 19 , 2022 GLOBAL NEWS  Billionaire Elon Musk's SpaceX is poised to become the most valuable US startup as its valuation rose to over USD 125bn in an ongoing share sale in the secondary market, according to sources. (Source: Reuters)  British inflation surged last month to its highest annual rate since 1982, piling pressure on finance minister Rishi Sunak to step up his help for households facing a worsening cost-of-living crisis. (Source: Reuters)  The star portfolio manager at the centre of a fraud at the US funds unit of Allianz SE relied on the German insurer's good name to lure investors and thrived from a lack of oversight as he pocketed USD 60mn in pay, US authorities said. (Source: Reuters)  Japan's economy in the January-March period contracted a real 0.2% from the previous quarter, or an annualized 1%, on sluggish private consumption and increased imports such as coronavirus vaccines, government data showed. (Source: Mainichi)  Three banks in China's central Henan province have frozen at least USD 178mn of deposits, offering scant information on why or for how long, leaving firms unable to pay workers and individuals locked out of savings, depositors told Reuters. (Source: Reuters)  Shanghai authorities have granted approval to 864 of the city's financial institutions to resume work, according to sources, as it gradually eases a city-wide lockdown that began seven weeks ago. (Source: Reuters)  Turkey’s defense and aerospace industry sector turnover exceeded the USD 10bn threshold in 2021 and returned to pre-pandemic figures, Presidency of Defense Industries head Ismail Demir said. (Source: Daily Sabah) GCC NEWS  The average size of venture capital investment in the UAE has tripled since 2016, according to Ahmad Belhoul Al-Falasi, UAE’s Minister of State for Entrepreneurship and SMEs. (Source: Arab News)  Etihad Rail has announced that it has taken several giant strides in its journey towards establishment of a cheaper, faster, more reliable, and sustainable mode for passenger travel. The country's rail network now stands 75% completed, 28 months after the construction work began, said its CEO Engineer Shadi Malak. (Source: Trade Arabia)  Sovereign Group, a leading global provider of corporate, private client and retirement planning services, has acquired PRO Partner Group, a top company formation and corporate services provider in the Middle East. (Source: Trade Arabia)  Demand for office space in Dubai has surged to a five-year high amid a huge influx of foreign businesses looking to relocate or expand in the UAE, according to the latest data. (Source: Zawya)  Sharjah based Invest Bank reported that net loss for Q1-22 reached AED 31.8mn (USD 8.6mn), up by 62% compared to the previous year’s AED 19.6mn. (Source: Zawya)  Abu Dhabi hotels had an average occupancy level of 79.1% last May 2, which was 4.5% higher than the Eid date two years ago. Similarly, Dubai’s occupancy came in at 75.4% during the same period, which was 19.7% higher than the pre-pandemic comparable. (Source: Zawya)  ADNOC together with its long-standing partner Borealis AG, plans to float 10% of Borouge, their petrochemicals JV, on the Abu Dhabi Securities Exchange through an IPO. (Source: Trade Arabia)  Response Plus Holding said it pivoted to a net profit of AED 14.31mn (USD 3.9mn) in Q1-22, from a loss of AED 1mn in the same period last year. Total revenues stood at AED 87.7mn compared with 0.4 million dirhams in March 2021. (Source: Zawya)  ADNOC plans to build a new LNG plant as the world’s producers race to expand their exports amid surging demand. The LNG facility, to be built at Fujairah on the UAE’ west coast outside the Gulf, will be able to produce as much as 9.6mn tons a year. (Source: Gulf Business)  FDI in Saudi Arabia will increase 20 times by 2030 compared to current levels, according to Minister of Investment Khalid Al-Falih. (Source: Saudi Gazette)  General Electric Saudi Advanced Turbines has been awarded a new contract to build three gas turbines at Aramco’s Tanajib oilfield, based 200 km north of Dammam in the Kingdom’s Eastern Province. (Source: Arab News)  Saudi Electricity Company posted a 10% fall in Q1-22 net profit after zakat and tax at SAR 1.51bn (USD 1.73bn) compared to a net income of SAR 1.69bn reported in the same time last year. (Source: Zawya)  ACWA Power Co. saw its profit climb 9% in Q1-22, thanks to higher project income. The profits of the PIF-owned firm climbed to SAR 152mn (USD 41mn), compared to SAR 139mn in the same period last year. (Source: Arab News)  Dallah Healthcare has posted solid profit and revenues for Q1-22, mainly supported by an increase in patient occupancy rates. Net profit surged by 59% to SAR 86.9mn (USD 23mn) and sales hit SAR 609mn, up 23% YoY. (Source: Arab News)  Saudi Methanol Chemicals Co posted the highest quarterly profit since it was founded, climbing 244% in Q1-22. The methanol manufacturer's profit rose to SAR 103mn (USD 27mn), compared to SAR 30mn for the same period a year earlier. (Source: Arab News)  The Memorandum of Understanding (MoU) between Credit Oman and the Export Guarantee Fund of Iran (EGFI) was renewed on the sidelines of the Iranian business delegation’s visit to Oman. (Source: Times of Oman)  The Port of Salalah has announced the successful installation and operationalization of 16 new eco-efficient, rubber-tyred gantry cranes from ZPMC and three new mobile harbour cranes from Liebherr. (Source: Oman Observer)  The value of Bahrain’s exports of national origin increased by 62% reaching BHD 478mn (USD 1.26bn) during April 2022, compared to BHD 295mn for the same month of the previous year, said the iGA in its foreign trade report for the month. (Source: Trade Arabia)  A report issued by Research and Markets Company during the period between 2022-2027 and affirmed that the market will achieve a compound annual growth rate of 10% from KWD 166mn in 2022 to KWD 295.1mnin 2027, reports Al-Anba daily. (Source: Arab Times) QATAR NEWS  The number of building permits issued in April by municipalities in Qatar stood at 677, a decrease of 31% compared to 988 permits issued in the previous month, data released by the PSA showed. (Source: The Peninsula)  Microsoft has become the first global cloud provider in Qatar to receive the National Information Assurance Certification issued by the National Cyber Security Agency. (Source: The Peninsula)  Qatar Airways and Malaysia Airlines have unveiled the roadmap outlining the next phase of their strategic partnership, following Malaysia Airlines’ announcement to launch a non-stop service from Kuala Lumpur to Doha from May 25. (Source: Trade Arabia)  Dukhan Bank has won the Outstanding Innovation in Mobile Banking from Global Finance in The Innovators 2022 Awards for its mobile banking application ‘Dukhan Mobile’, which provides easy and convenient banking experience for customers. (Source: The Peninsula) 2
3. May 19 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0496 USD/QAR 3.6400 128.2200 EUR/QAR 3.8205 USD/JPY GBP/USD 1.2368 JPY/QAR 0.0284 USD/CHF 0.9877 GBP/QAR 4.5020 USD/CAD 1.2888 CHF/QAR 3.6853 AUD/USD 0.6953 CAD/QAR 2.8243 NZD/USD 0.6295 AUD/QAR 2.5309 USD/INR 77.3000 INR/QAR 0.0471 USD/TRY 15.9272 TRY/QAR 0.2285 USD/ZAR 16.0183 ZAR/QAR 0.2272 USD/BRL 4.9682 BRL/QAR 0.7327 FX Commentary The USD edged higher, on pace to break a three-session losing streak, a day after Fed Chair Jerome Powell promised the US central bank would ratchet up rates as high as needed to combat rising inflation. The US Dollar index rose 0.4% to 103.81. The EUR/USD went down 0.8% to 1.0466. The GBP/USD traded down 1.2% to 1.2338. British inflation surged to its highest annual rate since 1982 as energy bills soared. The USD/JPY traded down 0.9% at 128.22. The USD/CNY went up 0.3% at 6.7540. The USD/CAD traded 0.6% higher at 1.2888 as Canadian inflation rose to 6.8% last month, largely driven by rising food and shelter prices, Statistics Canada data showed. The risksensitive AUD/USD went down 1.1% at 0.6953 while the NZD/USD weakened 1% at 0.6295. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.82 0.08 0.93 1.45 2.68 (0.65) (0.56) (0.54) (0.38) 0.24 0.70 0.75 1.00 1.15 1.85 4.0% SAIBOR 1.55 1.53 1.78 2.61 3.16 EIBOR 0.81 0.89 0.99 1.51 2.61 2.0% BMIBOR 1.60 1.78 2.52 2.59 3.54 KIBOR 0.81 1.31 1.63 1.94 2.44 LIBOR EURIBOR QAIBOR 1 Month 3 Month 1 Year Source: Refinitiv Eikon 2.92% 2.0% 0.0% 3.22% 2.76% 2.68% 2.86% 4.61% 3.40% 3.73% 2.92% 2.92% 3.10% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 2.90% 0.90% 2.93% 2.90% 1.59% 1.26% 2.79% 2.02% 3 Yrs Qatar 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs Source: Refinitiv Eikon Spread 6M Change 5 Years CDS Spread 6M Change US 16.9 2.3 Turkey 700.8 UK 10.9 0.2 Brazil 236.7 2.0 Germany 13.0 3.9 Egypt 852.5 493.9 Abu Dhabi France 0.25% 2 Yrs 6.0% Source: Refinitiv Eikon, Investing.com US Swap Rates 4.0% Qatar vs US Treasuries Yields 259.2 23.5 3.5 65.1 20.4 Italy 124.7 39.4 Bahrain 328.3 93.5 Greece 155.1 58.1 Dubai 124.9 28.3 Russia 9,585.8 9,483.6 Qatar 66.6 26.9 Japan 20.1 0.3 Saudi Arabia 66.0 18.4 Source: Refinitiv Eikon, worldgovernmentbonds.com GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) Mezzan Holding Company 72.5 -1.2 34.4 2.9 -40.7 NA Saudi Electricity Company 13531.0 1.4 -9.9 NA NA NA Saudi Research and Media 786.3 31.7 -15.7 NA NA NA 2.6 -45.8 -16.7 0.3 59.0 11.4 Specialities Group Holding Co Hail Cement Co 68.6 -16.2 38.8 -6.9 NA NA 108.1 -36.6 14.2 NA NA NA Arab Sea Information Systems 8.9 0.5 -62.1 NA NA NA Jassim Transport & Stevedoring 6.6 26.8 13.9 NA NA NA 158.0 34.4 NA NA NA NA 2079.5 5.0 5.4 NA NA NA Integrated Holding Co 6.9 29.4 27.4 1.4 1022.5 1.5 National Petroleum Services Co 7.0 5.5 -13.9 NA NA NA Metal and Recycling Co 3.6 -23.1 10.7 0.1 NA NA Energy House Holding Company 0.2 -14.8 15.2 -0.2 NA NA 50.0 -6.2 0.9 0.9 5.2 NA City Cement Company Al Masane Al Kobra Mining Co Nahdi Medical Co SULTAN CENTER FOOD PRO Source: Refinitiv Eikon; Note: All figures are in local currency 3
4. QSE MAIN FINANCIAL INDICATORS (as on 21th March 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 Baladna Medicare Cinema Qatar Fuel Widam Mannai Corp. Al Meera Consumer Goods & Services QAMCO Ind. Manf. Co. National Cement Co. Industries Qatar The Investors Electricity & Water Aamal Gulf International Mesaieed Investment Holding Industrials Qatar Insurance Doha Insurance QLM General Insurance Alkhaleej Takaful Islamic Insurance Insurance United Dev. Company Barwa Ezdan Holding Mazaya Real Estate Ooredoo Vodafone Qatar Telecoms Qatar Navigation Gulf warehousing Co Nakilat Transportation Market Dividend Yield (%) 2.4 2.5 2.2 2.8 3.7 3.1 NA 0.0 0.0 0.0 0.0 0.8 2.2 NA 0.0 0.0 3.6 3.9 1.7 4.1 0.0 0.1 4.7 3.0 3.3 3.7 0.0 5.2 4.0 4.4 4.0 0.0 3.9 0.0 4.5 0.0 0.0 4.1 0.0 1.3 4.5 1.0 3.6 0.0 NA 3.3 0.4 4.1 3.6 4.0 3.6 2.4 3.3 3.3 2.8 P/B Ratio (x) 2.6 2.6 1.6 0.8 1.5 1.8 NA 1.8 0.7 2.1 0.9 2.4 2.6 NA 8.5 0.7 1.2 2.0 1.6 2.0 2.1 1.7 2.5 2.0 2.1 0.9 1.1 3.0 1.0 1.7 1.0 1.1 2.1 2.3 2.2 0.7 0.8 3.1 0.3 1.8 29.4 0.8 0.5 0.6 NA 1.1 1.7 1.1 1.5 1.2 0.7 1.2 1.9 1.2 2.1 P/E Ratio (x) 15.8 15.2 12.7 11.9 14.0 15.7 NA 10.5 (M) (‫)س‬ 56.8 54.9 57.8 17.4 NA (H) (‫)م‬ 20.9 20.7 25.6 (H) (‫)م‬ 18.8 (M) (‫)س‬ 13.6 19.5 22.6 16.2 11.1 15.2 14.5 16.9 13.6 26.0 65.2 19.0 92.4 15.8 13.0 12.7 17.8 15.7 24.2 16.5 14.5 16.4 12.0 NA (M) (‫)س‬ 47.8 (H) (‫)م‬ 21.3 81.1 13.3 11.1 15.0 14.1 18.3 May 19, 2022 EPS (QR) 1.4 1.5 0.6 0.2 0.3 0.7 NA 0.1 (M) (‫)س‬ 0.0 0.0 0.1 0.6 NA 0.0 0.1 0.1 0.3 0.0 1.0 (M) (‫)س‬ 0.6 1.0 0.3 0.2 0.3 0.3 1.3 0.1 1.3 0.0 0.0 0.1 0.0 0.4 0.2 0.1 0.3 0.1 0.2 0.5 0.2 0.1 0.3 NA (M) (‫)س‬ 0.0 0.0 0.1 0.1 0.6 0.4 0.2 0.3 0.3 BV/Share (QR) 8.5 8.8 4.5 3.3 2.6 5.7 NA 0.8 1.4 0.8 0.9 2.6 4.3 NA 0.3 1.6 1.2 3.7 2.2 9.1 1.5 4.8 7.7 3.3 1.1 3.6 4.7 6.5 2.4 10.7 1.2 1.8 1.4 1.0 2.6 3.4 2.4 1.8 5.9 2.1 0.3 3.5 3.1 5.4 NA 0.8 0.9 6.6 1.1 3.5 13.0 3.5 1.9 3.8 2.8 Stock Price (QR) 22.6 22.9 7.3 2.7 3.9 10.4 5.1 1.5 0.9 1.6 0.9 6.2 17.0 2.4 1.1 1.5 7.2 3.5 18.4 3.2 8.2 19.2 2.4 3.3 5.2 19.4 2.5 18.2 1.3 1.9 2.8 2.4 2.5 1.9 5.4 1.9 3.8 8.8 1.5 3.5 1.4 0.9 7.3 1.7 8.5 4.3 3.7 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: 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