GCC Daily Market Update - 19 October

Transcription

1. October 19 , 2021 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) 4,486.5 35,258.6 15,300.9 7,203.8 15,474.5 6,673.1 1,417.7 29,025.5 25,409.8 3,568.1 61,765.6 15.1 (36.2) 154.0 (30.2) (112.9) (54.4) 8.1 (43.2) 78.8 (4.2) 459.6 0.3 (0.1) 1.0 (0.4) (0.7) (0.8) 0.6 (0.1) 0.3 (0.1) 0.7 4.2 4.2 4.2 1.7 1.4 2.3 0.8 (1.5) 3.4 (0.0) 4.5 19.4 15.2 18.7 11.5 12.8 20.2 (4.0) 5.8 (6.7) 2.7 29.3 11,743.4 11,758.0 7,834.7 2,802.1 6,923.9 3,969.5 1,710.0 747.3 6,166.8 (8.0) (15.3) 23.1 12.6 10.3 (4.1) 1.3 2.2 22.0 (0.1) (0.1) 0.3 0.5 0.1 (0.1) 0.1 0.3 0.4 2.2 2.3 1.8 (1.5) 0.9 0.7 0.3 2.4 3.6 12.5 35.3 55.3 12.4 24.8 8.5 14.8 32.3 13.2 84.3 82.4 5.0 1,764.8 4.7 (0.5) 0.2 (0.4) (2.4) (0.0) (0.6) 0.2 (7.8) (0.1) (0.1) 7.4 9.9 (15.0) 0.5 15.7 62.8 69.9 96.5 (6.8) 34.6 Global Global equity indices were mixed on Monday as data showed slower-thanexpected growth in China in the last quarter. While the Dow Jones Industrial Average fell 0.1%, the S&P 500 (+0.3%), and the Nasdaq Composite (+0.3%) and the Nasdaq 100 (+1.0%) closed higher. The pan-European Stoxx 600 index lost 0.5% while the MSCI’s global measure, the All-Country World Equity Index shed 0.1%. The Shanghai Composite fell 0.1% while Hong Kong edged up 0.3% even as Q3-21 economic growth came in lower than expected. The Nikkei finished the session lower by 0.1%. GCC Most stock markets in the Gulf ended higher on Monday, mirroring strong oil prices, although the Saudi index broke a four-day run, driven by profittaking. Saudi Arabia's benchmark index eased 0.1%, hit by a 1.5% fall in petrochemical maker Saudi Basic Industries and a 4.8% decline in Yanbu National Petrochemicals Co. The Abu Dhabi index added 0.3%, aided by a 1.9% rise in the country's largest lender First Abu Dhabi Bank and a 0.5% advance by Emirates Telecommunications Group. Dubai's main share index gained 0.5% with blue-chip developer Emaar Properties closing 1% higher and diversified investment group Dubai Investments advancing 2.4%. Qatar The Qatari benchmark index closed 0.1% down as Mannai Corporation advanced 6.2% and Dlala Brokerage & Investment Holding appreciated 2.9%. Out of the total 47 traded stocks, 19 advanced, 25 declined and 3 remained unchanged. Total traded volume in the market was marginally lower than the previous trading session. The Insurance index advanced 0.5%, Consumer Goods and Services gained 0.4% while the Industrials index ended 0.5% lower. Source: Refinitiv Eikon QATAR MARKET OVERVIEW P/E (x) GCC Fundamentals P/B (x) Dividend Value Traded Yield (%) (USD mn) Qatar DSM Index 12,000 Qatar All share 16.8 1.5 2.5 183.8 DSM 20 16.7 1.7 2.5 140.2 11,200 Saudi Arabia (TASI) 24.6 2.8 2.2 1,931.9 UAE (ADX) 21.8 2.3 2.9 372.1 UAE (DFM) 14.1 0.9 2.8 33.6 Kuwait (KSE) 21.1 1.7 1.9 201.1 Oman (MSM) 10.6 0.8 3.6 5.5 Source: Refinitiv Eikon Bahrain (BAX) 13.3 1.0 1.9 2.6 QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers MANNAI CORP DLALA' BROKERA QA GEN INS REI MASRAF AL RAYA DOHA BK LTD Top Losers QAT GER MED DE QATARI INV GRP QATAR ALUMINIU MAZAYA QA CINEMA & FI 4.9 1.6 2.1 4.7 3.0 3.6 2.6 2.0 1.1 3.7 0.3 0.0 0.0 0.1 0.0 (0.2) (0.1) (0.0) (0.0) (0.0) 6.2 2.9 1.9 1.7 1.6 (4.7) (2.5) (2.4) (1.1) (1.1) Performance YTD YoY (%) (%) 64.7 (10.3) (22.9) 2.6 26.7 60.6 42.0 105.9 (13.1) (7.3) Source: Refinitiv Eikon; Note: Prices are in local currency. 59.4 (26.5) (10.1) 11.6 20.0 75.2 33.1 87.5 (9.6) (2.9) Vol. (‘000) P/E TTM 1,247.7 17,624.2 14.9 16,520.4 5,679.9 6.7 31.1 10.5 15.6 15.1 5,159.6 5,972.1 21,468.1 13,715.4 4.7 122.7 28.2 30.1 43.2 62.6 300.0 11,743.4 11,600 200.0 10,800 100.0 10,400 10,000 25-Jul 0.0 8-Aug 22-Aug 5-Sep Index Volume (mn) 19-Sep 3-Oct 17-Oct Index Value Closing Level 4,902.6 8,318.2 4,208.3 2,604.8 1,847.4 1,081.9 3,472.2 1D Change (%) (0.1) 0.4 (0.5) 0.5 (0.0) (0.0) (0.1) Source: Refinitiv Eikon Qatar Trading Summary Buy (%) Sell (%) Qatari Individuals 38.9 43.3 Qatari Institutions 25.4 33.5 Qatari – Total 64.3 76.8 Foreign Individuals 14.0 13.4 Foreign Institutions 21.7 35.7 9.8 23.2 Foreign – Total Source: Qatar Exchange 1
2. October 19 , 2021 GLOBAL NEWS  Five members of the US House Judiciary committee have written to Amazon.com's chief executive, accusing the company's top executives including founder Jeff Bezos of lying to or misleading the Congress about Amazon's business practices. (Source: Reuters)  The USFDA has declined to approve United Therapeutics and Mannkind Corp's lung disease therapy, citing an inspection issue at a third-party facility. (Source: Reuters) 700 merchants across the UAE and Saudi Arabia (Source: Zawya)  Mubadala Capital, the asset management subsidiary of Abu Dhabi's sovereign investor Mubadala, led a Series B funding round in UK-based logistics start-up Huboo Fulfilment, pumping in USD 82mn in investments to help drive Huboo’s expansion plans across continental Europe. (Source: Zawya)  Newly-listed healthcare investment and management firm Response Plus Holding reported posted a net profit of AED 40.1mn (USD 10.9mn) 9M-21, up 817% from a loss of AED 3.9mn a year earlier. The company reported revenues of AED 197.7mn, registering a growth of 920%. The Abu Dhabi-listed company attributed the turnaround to major contracts it signed with key clients in the UAE including Abu Dhabi Health Services (SEHA), Mafraq Hospital, Emirates Global Aluminium and Abu Dhabi Police. (Source: Zawya)  Arabian Contracting Services expects outdoor advertising spend in Saudi Arabia to reach SAR 1.3bn (USD 360mn) by 2025. The company, which recently issued the prospectus for its planned IPO, announced an increase in its net profit of 68.6% to SAR 91.7mn in 2019. (Source: Arab  California-based enterprise software developer Informatica Inc is looking to list in the stock market again almost 6 years after it went private. The company is seeking a valuation of up to USD 9bn with the IPO expected to bring in proceeds of USD 928mn at the top end. (Source: Reuters)  CFOs at top British companies believe that supply chain problems that are dragging on the economy's post-lockdown recovery will persist for at least a year, according to a survey by the Bank of England. (Source: Reuters)  The UK's biggest retailer Tesco has started a program to buy back shares up to GBP 500mn (USD 686mn) in value. (Source: Reuters) News)  Ford will invest up to GBP 230mn (USD 316mn) in its Halewood factory in northern England to produce 250,000 electric car power units a year from mid-2024. It will be Ford’s first European in-house location to make electric vehicle parts. (Source: Reuters)  Saudi Arabia's Economic Cities and Special Zones Authority signed a MoU with the Saudi Industrial Development Fund and Emaar Economic City to enhance the investment environment in King Abdullah Economic City. (Source: Arab News)  Japanese Prime Minister Fumio Kishida asserted that the country must issue government bonds to fund policies aimed at protecting livelihoods and recovering from the hit taken by the economy due to the Covid-19 pandemic. (Source: Reuters)  The number of SMEs registered with Oman’s Authority for Small and Medium Enterprises Development until the end of August 2021 stood at 56,687, compared to 45,706 in August 2020, informing an increase of 24%, according to the data released by the National Centre for Statistics and information. (Source: Times of Oman)  Bahrain exported BHD 1.17mn worth of products of national origins during Q3-21, according to the Information and eGovernment Authority’s foreign trade report for Q3-21. The value of imports increased by 16%, reaching BHD 1.35bn Q3-21 compared to BHD 1.17bn in Q3-20. The trade balance recorded a deficit of BHD 1mn in Q3-21 compared to BHD 335mn in Q3-20, an improvement of 99.8%.  The Chinese economy continued to decelerate as GDP growth came in at 4.9% in Q3-21, impacted by the country's zero-tolerance Covid measures and energy shortages. (Source: Nikkei Asia)  China hopes US firms will strengthen their cooperation with Chinese companies in the areas of new energy vehicles, biopharma and nextgeneration information and communication technology, the country's industry minister said on Monday. (Source: Reuters)  Goldman Sachs revealed that it has received approval from the Chinese securities regulator to take full control of its mainland securities business. The US bank looks to buy out the remainder of Goldman Sachs Gao Hua Securities and rename it as Goldman Sachs (China) Securities Company. (Source: Reuters) GCC NEWS  OPEC+ compliance with oil cuts fell marginally to 115% in September, suggesting that some members continue to struggle to increase production to their agreed quota levels due to technical challenges. (Source: Bahrain Business News)  QATAR NEWS  Qatar has signed an air transport agreement with the EU, the country’s Minister of Transport and Communications Jassim Said Ahmed AlSulaiti stated. The agreement will provide airlines with easy access to markets with fewer restrictions, replacing existing bilateral agreements. (Source: Arab News)  Qatar Islamic Bank announced its 9M-21 results. Net profit attributable to the shareholders of the bank amounted to QAR 2.52bn for 9M-21, representing a growth of 13.9% YoY. (Source: The Peninsula)  Nakilat announced its financial results for Q3-21, reporting a net profit of QAR 1bn, an 11.5% YoY increase compared to the net profit of QAR 900mn reported in Q3-20. Revenues came in at QAR 3.071bn (+0.2% YoY) as general and administrative expenses decreased by 4.8% and operating expenses fell 0.9% during the quarter on a YoY basis. (Source: (Source: Reuters)  Azimut (ME) Limited ADGM, part of leading asset management group Azimut, in partnership with innovation platform GELLIFY Middle East, is launching a MENA-focused venture capital fund aiming to raise USD 50mn in capital. (Source: Zawya)  A special hub will be set up at the Dubai World Trade Centre (DWTC) Free Zone to attract companies operating in the crypto assets and blockchain space. The DWTC Free Zone and digital assets exchange CoinMENA announced entering into an agreement to develop a crypto asset and blockchain hub in DWTC. (Source: Zawya)  Australia-headquartered leading global Buy Now, Pay Later (BNPL) company Zip Co has completed the acquisition of Spotii. Dubai-based Spotii is a digital payments platform providing BNPL services with over National Bank of Kuwait reported a 63% increase to KWD 94.1mn (USD 311.8mn) in Q3-21 net profit as the economy recovered from the pandemic-imposed restrictions, leading to an improvement in business confidence. (Source: Zawya) The Peninsula)  Doha Bank’s mobile wallet Doha Pay has won the “Best Digital Wallet App” award by Global Business Review Magazine. Doha Bank received the award for its continued efforts in an innovative and customercentric approach through digital wallet services. (Source: The Peninsula) 2
3. October 19 , 2021 FX RATES Currencies Value Currencies Value EUR/USD 1.1639 USD/QAR 3.6573 114.3100 EUR/QAR 4.2567 USD/JPY GBP/USD 1.3755 JPY/QAR 0.0320 USD/CHF 0.9237 GBP/QAR 5.0306 USD/CAD 1.2374 CHF/QAR 3.9594 AUD/USD 0.7410 CAD/QAR 2.9556 NZD/USD 0.7083 AUD/QAR 2.7101 USD/INR 74.6905 INR/QAR 0.0490 USD/TRY 9.3248 TRY/QAR 0.3922 USD/ZAR 14.6816 ZAR/QAR 0.2491 USD/BRL 5.5117 BRL/QAR 0.6636 FX Commentary The USD fell on Monday after data revealed that production at American factories fell the maximum in seven months in September, wiping off earlier gains on expectations of the Fed raising interest rates sooner than previously expected. The US Dollar index lost 0.04% to 93.94. The EUR/USD traded up 0.1% at 1.1609 as the GBP/USD traded down 0.3% at 1.3725. The USD/JPY traded down 0.02% at 114.31. The CNY/USD traded up 0.1% at 0.1555. The CAD edged lower against its US counterpart on Monday but held near its highest level in more than three months as US and domestic bond yields climbed while a Bank of Canada survey showed that companies anticipate stronger demand. The USD/CAD was trading 0.02% higher at 1.2374. The risk sensitive AUS/USD edged down 0.2% at 0.7410 as the NZD/USD traded down 0.02% at 0.7083. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.07 0.07 0.08 0.12 0.28 (0.58) (0.57) (0.56) (0.55) (0.48) QAIBOR 1.00 1.00 1.03 1.15 1.35 SAIBOR 0.55 0.59 0.65 0.82 0.94 EIBOR 0.14 0.17 0.19 0.39 0.54 BMIBOR 0.82 1.03 1.51 1.52 1.80 KIBOR 0.56 0.88 1.25 1.50 2.00 LIBOR EURIBOR 1 Month 3 Month 1 Year Source: Refinitiv Eikon 1.58% 1.41% 1.22% 2.0% 0.40% 0.0% 1.28% 0.97% 0.57% 0.71% 2 Yrs 3 Yrs Qatar 1.15% 1.58% 5 Yrs 10 Yrs US 2.02% 30 Yrs 7 Yrs 10 Yrs Last Year Spread 6M Change 13.4 4.3 Turkey 442.3 1.20% UK 10.8 (2.0) Brazil 200.1 5.4 9.6 (0.6) Egypt 358.9 17.1 Abu Dhabi 44.5 (3.0) Germany 0.0% 5 Yrs Current 5 Years CDS US 0.79% 0.57% 0.41% Spreads 6M Change 1.78% 0.23% 2 Yrs 2.21% 5 Years CDS 2.0% 0.57% 3.29% 4.0% Source: Refinitiv Eikon, Investing.com US Swap Rates 1.0% Qatar vs US Treasuries Yields 30 Yrs Source: Refinitiv Eikon France 20.9 (0.9) Italy 72.2 (10.4) Greece 74.9 (6.4) Russia 84.5 (17.0) Japan 19.6 2.5 Bahrain 47.6 234.9 18.3 Dubai 96.6 (13.3) Qatar 45.1 (2.5) Saudi Arabia 57.0 (8.4) Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event Period Survey Prior 15:30 US Housing Starts Number Sep 1.620mn 1.615mn 02:50 Japan Exports YoY Sep 11.0% 26.2% 02:50 Japan Imports YoY Sep 34.4% 44.7% 02:50 Japan Trade Balance Total Yen Sep -519.2bn -635.4bn 15:30 US Building Permits: Number Sep 1.680mn 1.721mn Source: Refinitiv Eikon GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) NA NA NA 929.93 17.7 10.0 903.86 0.7 0.4 367.75 5.0 16.7 582.7 8.0 0.9 66.3 45.3 -2.5 NA NA NA 3,500.4 23.1 8.9 9.58 -4.4 -31.7 NA NA NA 197.4 37.2 9.6 NA NA NA 12.0 -21.4 357.3 NA NA NA Aldrees Petroleum & Transport 2,556.40 96.6 17.6 47.40 28.5 31.8 Yanbu National Petrochemicals 1,779.60 23.5 -10.3 179.80 -8.1 -69.8 Qatar Islamic Bank Qatar Gas Transport Nakilat Vodafone Qatar Qatar National Bank QG Co for Medical Devices Qatar National Cement Alijarah Holding Co Source: Refinitiv Eikon; Note: All figures are in local currency 3
4. QSE MAIN FINANCIAL INDICATORS (as on 14th October 2021) Company QNB Qatar Islamic Bank Comm. Bank of Qatar Doha Bank Ahli Bank Intl. Islamic Bank Rayan Al khalij Commercial Bank 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 (%) 2.3 2.2 1.6 2.6 3.9 3.4 3.7 2.5 0.0 2.3 0.0 0.0 1.0 2.5 4.5 0.0 0.0 3.3 2.7 2.6 2.4 0.2 4.6 3.2 2.8 3.2 3.9 2.1 2.3 3.7 3.9 0.0 1.7 0.0 1.7 2.2 0.0 5.2 0.0 1.1 4.2 0.0 0.8 3.2 3.9 0.0 2.7 1.1 3.5 3.0 3.4 4.0 2.0 3.5 3.5 2.3 P/B Ratio (x) 2.3 2.3 1.3 0.9 1.5 2.4 2.4 1.2 2.5 0.8 2.0 1.0 2.0 2.0 2.6 13.1 0.7 2.4 1.7 2.1 2.4 1.0 2.7 1.4 1.9 0.9 1.1 2.7 1.2 1.8 0.8 1.0 1.9 1.4 2.0 2.0 1.0 0.9 0.4 2.4 3.0 2.9 0.9 0.5 0.6 1.3 1.0 1.0 1.1 1.6 1.2 0.6 1.5 1.7 1.1 1.7 P/E Ratio (x) 14.3 13.2 14.3 11.1 13.0 15.1 15.4 12.6 (M) (‫)س‬ (M) (‫)س‬ 29.8 30.5 41.5 14.4 18.7 126.8 (M) (‫)س‬ 27.3 61.8 19.9 (M) (‫)س‬ 45.3 19.3 20.2 23.0 13.9 14.1 19.0 28.7 14.5 55.3 (M) (‫)س‬ 23.2 57.8 105.0 21.9 12.6 14.0 10.4 (M) (‫)س‬ 15.8 16.4 18.1 19.9 10.6 (H) (‫)م‬ 44.3 34.1 (M) (‫)س‬ 29.5 -73.7 43.8 12.7 14.0 17.3 18.6 October 19, 2021 EPS (QR) 1.4 1.4 0.4 0.3 0.3 0.6 0.3 0.2 (M) (‫)س‬ (M) (‫)س‬ 0.1 0.0 0.1 0.6 0.8 0.0 (M) (‫)س‬ 0.3 0.1 0.9 (M) (‫)س‬ 0.1 1.0 0.1 0.3 0.2 0.4 0.8 0.1 1.2 0.0 (M) (‫)س‬ 0.1 0.0 0.0 0.2 0.2 0.1 0.2 (M) (‫)س‬ 0.5 0.3 0.2 0.1 0.3 0.0 0.0 0.1 (M) (‫)س‬ 0.1 -0.1 0.2 0.4 0.2 0.2 0.3 BV/Share (QR) 8.7 8.0 4.5 3.3 2.7 4.1 1.9 1.9 0.8 1.4 0.8 0.9 2.5 4.6 6.2 0.3 1.4 3.5 2.2 8.5 1.8 4.7 7.3 1.2 3.4 3.4 4.7 5.8 2.3 9.5 1.2 1.7 1.3 1.0 1.1 2.4 2.6 2.3 5.8 1.9 2.6 1.6 3.0 3.1 5.2 1.2 1.1 1.9 6.3 1.0 3.3 12.2 3.3 1.8 3.6 3.0 Stock Price (QR) 19.8 18.1 6.1 2.9 3.9 9.7 4.6 2.2 1.8 1.1 1.6 1.0 5.1 15.7 3.7 1.0 8.4 3.7 18.0 4.2 4.6 19.6 1.7 3.2 5.1 15.8 2.6 16.9 1.0 1.7 2.4 1.5 2.1 2.5 1.9 2.0 4.6 7.8 4.8 1.6 3.2 1.6 1.1 53.7 7.2 1.7 7.5 5.1 3.1 Company QNB ‫الم ف‬ ‫التجاري‬ ‫بنك الدوحة‬ ‫اﻻه‬ ‫الدو‬ ‫ال ان‬ ‫الخل‬ QFC ‫اﻷول‬ ‫اﻻجارة‬ ‫دﻻلة‬ ‫قطروعمان‬ ‫إنماء‬ ‫البنوك والخدمات المال ة‬ ‫زاد‬ ‫الطب ة‬ ‫السﻼم‬ ‫الرعا ة‬ ‫الس نما‬ ‫قطر للوقود‬ ‫ودام‬ ‫مجمع المنا‬ ‫الم ة‬ ‫لدنا‬ ‫الخدمات والسلع اﻻستهﻼ ة‬ ‫التح ل ة‬ ‫اﻻسمنت‬ ‫صناعات قطر‬ ‫المس ثم ن‬ ‫كه اء وماء‬ ‫أعمال‬ ‫الخليج الدول ة‬ ‫مس ع د‬ ‫اس ثمار القا ضة‬ ‫قامكو‬ ‫الصناعات‬ ‫قطر‬ ‫الدوحة‬ ‫العامة‬ ‫الخليج الت اف‬ ‫اﻻسﻼم ة‬ ‫كيو إل إم‬ ‫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