GCC Daily Market Update - 20 March

Transcription

1. March 20 , 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) 4,463.1 34,754.9 14,420.1 7,404.7 14,413.1 6,620.2 2,144.3 26,827.4 21,412.4 3,251.1 57,863.9 51.4 274.2 301.5 19.4 25.0 7.7 10.7 174.5 (88.8) 36.0 1,047.3 1.2 0.8 2.1 0.3 0.2 0.1 0.5 0.7 (0.4) 1.1 1.8 2.0 2.5 1.3 (0.7) (0.3) (0.6) 10.2 1.1 (5.7) (6.1) 2.9 (6.4) (4.4) (11.6) 0.3 (9.3) (7.4) 15.4 (6.8) (8.5) (10.7) (0.7) 13,397.6 12,769.2 9,606.5 3,350.1 7,869.7 4,315.8 1,965.1 844.6 5,788.6 117.9 113.0 (1.8) (59.8) (10.0) 3.8 3.9 (0.6) 79.6 0.9 0.9 (0.0) (1.8) (0.1) 0.1 0.2 (0.1) 1.4 3.5 1.4 3.1 (0.1) 3.0 6.4 0.1 2.6 0.8 15.2 13.2 13.2 4.8 11.7 4.5 9.3 14.2 (10.3) 107.9 104.7 4.9 1,928.2 4.7 1.3 1.7 (0.1) (13.9) 0.0 1.2 1.7 (2.5) (0.7) 0.9 6.9 9.4 10.5 1.5 6.4 38.8 39.2 30.4 5.5 6.2 Source: Refinitiv Eikon QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All Share 16.9 1.6 3.3 418.9 DSM 20 17.2 1.8 3.4 385.1 Saudi Arabia (TASI) 22.4 2.8 2.1 4,472.2 UAE (ADX) 22.2 2.5 2.1 359.4 UAE (DFM) 13.1 1.1 0.0 92.8 Kuwait (KSE) 13.6 1.8 2.3 386.5 Oman (MSM) 11.2 0.8 5.0 16.7 Bahrain (BAX) 8.9 1.1 4.1 2.5 GCC Fundamentals Dividend Value Traded Yield (%) (USD mn) Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers INVESTMENT HLD ZAD HOLDING QA ELEC & WATE INDUSTRIES QAT MESAIEED PETRO Top Losers DOHA INS CO QA COMM BK QAT GER MED DE QA CINEMA & FI MAZAYA 2.4 17.3 18.4 19.3 2.7 1.9 7.3 2.5 3.7 0.9 0.2 0.8 0.6 0.6 0.1 (0.1) (0.3) (0.1) (0.1) (0.0) Performance YTD YoY (%) (%) 7.5 5.1 3.5 3.0 2.9 (6.6) (3.8) (2.7) (2.6) (1.0) 91.6 3.8 10.7 24.3 31.2 (2.7) 7.5 (22.6) 3.9 0.1 Source: Refinitiv Eikon; Note: Prices are in local currency. 209.5 12.2 8.4 62.4 50.5 (11.0) 59.3 (17.0) (2.8) (24.5) Vol. (‘000) P/E TTM 29,109.2 18.5 1,662.4 5,474.3 20,539.8 74.2 22.8 13.8 14.4 18.5 907.0 4,131.6 1,956.5 5.3 12,396.3 12.8 14.4 92.9 NA 34.9 Global Wall Street's indexes closed higher on Friday, with the biggest boost from recently battered technology stocks, after talks between US President Joe Biden and Chinese President Xi Jinping over the Ukraine crisis ended without big surprises. The DJIA rose 0.8%, the S&P 500 gained 1.2% and the Nasdaq 100 added 2.1%. The pan-European STOXX 600 index closed 0.9% higher with technology stocks, leading the gains. In Asia, Japan’s Nikkei index ended 0.7% higher on Friday, tracking overnight Wall Street gains, amid caution over a five-day rally in local markets. While China stocks ended higher for a third consecutive session, reversing earlier losses, after a flurry of assurances this week by top policymakers pledging more support for the struggling economy. GCC Saudi Arabia's benchmark index advanced 0.9% on Thursday, with Saudi Industrial Investment Group jumping 7%. UAE stock markets fell on Friday, pressured by industrial and banking companies with Dubai index fell 1.7%, ending its second session of losses in a row. Financial and industrial stocks were among the big losers. Air Arabia declined 6.5% and was the biggest drag to the index. Abu Dhabi's index ended flat on Friday. Abu Dhabi Islamic Bank added 0.9% after shareholders approved an annual dividend of 31.11 fils per share. Qatar The Qatari benchmark index closed 0.9% higher on Thursday helped by Investment Holding Group (+7.5%) and Zad Holding (+5.1%) were the top gainers of the day. Out of the 46 traded stocks, 31 advanced, 11 declined and 4 remained unchanged. Total traded volume in the market was higher than in the previous trading session. The Industrials index advanced 2.8% and the Consumer Goods & Services index increased by 2.3% while Insurance index declined 0.1%. Qatar DSM Index 14,000 13,600 13,200 12,800 12,400 12,000 11,600 11,200 10,800 10,400 21-Dec 600.0 13,397.6 400.0 200.0 0.0 4-Jan 18-Jan 1-Feb Index Volume (mn) 15-Feb 1-Mar 15-Mar Index Value Source: Refinitiv Eikon QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation Closing Level 5,717.0 8,604.9 5,176.3 2,621.7 1,900.9 1,136.4 4,081.0 1D Change (%) 0.1 2.3 2.8 (0.1) 0.4 0.2 0.1 Buy (%) Sell (%) 19.6 28.8 Source: Refinitiv Eikon Qatar Trading Summary Qatari Individuals Qatari Institutions Qatari – Total 6.7 24.1 26.2 52.9 Foreign Individuals 6.6 7.9 Foreign Institutions 65.0 39.2 Foreign – Total 71.6 47.1 Source: Qatar Exchange 1
2. March 20 , 2022 GLOBAL NEWS  US Republican Senators introduced a bill to ban US imports of Russian uranium to punish Moscow for its invasion of Ukraine. (Source: Reuters)  US Senate Banking Committee Chairman Sherrod Brown and other Senate Democrats have asked government regulators to examine Wells Fargo's mortgage refinancing policies to ensure they do not discriminate against minority borrowers. (Source: Reuters)  Activist investor Pentwater Capital Management, the largest minority shareholder of Canada's Turquoise Hill with a 10% stake, has rejected a USD 2.7bn bid for the copper producer by Rio Tinto as too low. (Source: Reuters)  BP's board recommended investors vote against a shareholder resolution filed by Dutch activist group Follow This urging the British energy company to accelerate its energy transition strategy. (Source: Reuters)  Japanese manufacturers began restarting production at plants in the country's quake-hit northeast, but Toyota Motor Corp said it plans to idle 18 assembly lines for a few days next week due to a shortage of parts from suppliers. (Source: Reuters)  Nearly 70% of Japanese firms expect the fallout from the crisis in Ukraine to hurt their earnings, a Reuters poll showed, with a majority of those citing a surge in oil prices as their primary concern. (Source: Japan Times)  China opposes a US crackdown on its telecom companies, the commerce ministry said, after a US regulator stripped Pacific Networks and its ComNet unit of authorization to provide US telecoms services. (Source: Reuters)  Tesla resumed production at its Shanghai factory on Friday after a twoday suspension, people familiar with the matter said, as movement controls imposed on its workers as part of the city's efforts to curb the latest COVID-19 outbreak eased. (Source: Reuters)  Turkey's central bank kept its interest rates steady for a third consecutive month, in line with market expectations. The move comes amid the Ukraine conflict and soaring energy prices that are set to put further pressure on domestic inflation. (Source: Daily Sabah) GCC NEWS  Gulf central banks raised their main interest rates by a quarter percentage point in lockstep with the US Federal Reserve as it began a monetary tightening cycle in a newly aggressive stance against rising inflation. (Source: Reuters)  Dubai Harbour welcomed the Swiss experimental vessel powered solely by renewables, PORRIMA, to its marinas on 17 March 2022, as part of its worldwide journey across five continents called the Blue Odyssey. (Source: Emirates News Agency)  A Dubai-based travel agency has officially launched a franchise project in the UAE and abroad to expand the number of its outlets and create more entrepreneurs in the travel industry. (Source: Khaleej Times)  The desalination plants in Abu Dhabi produce 9% of the world’s total desalinated water, a top government official said. (Source: Khaleej Times)  The Abu Dhabi national oil company ADNOC has announced framework agreements worth AED 2.4bn (USD 658mn) for cementing, according to a statement. (Source: Arab News)  Saudi Arabia’s central bank raised its key interest rates following the US Federal Reserve's decision to increase rates to tackle inflation. The SAMA, increased late on Wednesday the repo rate by 25 BPS to 1.25%, and the reverse repo rate by 25 BPS to 0.75%. (Source: Arab News)  The total volume of investments in Saudi Arabia’s industrial sector accumulated to SAR 1.33tn (USD 354bn) by the end of January, official data showed. The Ministry of Industry and Mineral Resources said investments worth SAR 1.8bn were recorded in January. (Source: Arab News)  Saudi Arabia and Egypt have signed a joint agreement regarding investment by the Kingdom's PIF in the North African country, Saudi Press Agency reported. (Source: Arab News)  Saudi Arabia has announced more than 60 water projects, worth SAR 35bn (USD 9.33bn), that will cement the kingdom's position as the world's largest water desalination market, a top official told delegates at the 3rd Mena Desalination Projects Forum 2022 being held in Abu Dhabi. (Source: Trade Arabia)  The Saudi Agriculture Development Fund has approved several loans with an accumulated worth of over SAR 861mn (USD 229mn) to finance working capital, according to the Saudi Press Agency. (Source: Arab News)  Saudi Dairy and Foodstuff Co. expanded its Jeddah-based dairy factory by 19,800 sq mt, making it the largest dairy factory in throughput terms. (Source: Arab News)  Oman Air have announced greater cooperation to align both airlines’ networks for passenger growth in and out of Oman. (Source: Trade Arabia)  Oman Cement Company achieved a net profit after tax of OMR 4.447mn, during FY-21, as the company, during that period, managed to produce 2mn and 393,000 tonnes of cement. (Source: Times of Oman)  The CBB has decided to raise its key policy interest rate by 25 BPS. CBB’s key policy interest rate on the one-week deposit facility is raised from 1.00% to 1.25%, a statement said. (Source: Trade Arabia)  Bahrain’s Islamic banking sector growth is expected to continue growth in 2022-2023, thanks to the strong momentum in 2021, likely driven by the increasing public demand for products and the expected improvement in the operating environment, according to Fitch Ratings. (Source: Zawya)  Arab Bank will be offering housing loan programmes at the Gulf Property Show taking place from March 22-24 in Bahrain. (Source: Gulf Daily News)  Kuwait's government proposed gradually raising the retirement age by three years starting from 2024, its finance minister Abulwahab Mohammed Al Rushaid said. (Source: Reuters) QATAR NEWS  The Qatar Central Bank announced that it raised the repo rate by 25 BPS to 1.25%, starting from Thursday. (Source: Gulf Times)  The EU’s planned diversification from Russian gas could have important implications for Qatar and, more specifically, state hydrocarbons producer QatarEnergy, said S&P Global in its report. (Source: The Peninsula)  The volume of real estate trading in sales contracts at the Department of Real Estate Registration at the Ministry of Justice during the period from March 6-10 amounted to QAR 237.14mn. (Source: The Peninsula)  QFMA has approved the acquisition by the Investment Holding Group of Elegancia Group LLC and its subsidiaries, the resignation of the board of directors, and the convening of the ordinary and extraordinary general assembly. (Source: The Peninsula)  QFC has developed a Sustainable Sukuk and Bonds Framework, the first in the GCC region, which is based on the latest ICMA’s Green Bond Principles, Social Bond Principles and Sustainable Bond Guidelines. (Source: The Peninsula)  Commercial Bank held its Ordinary and EGA Meetings and approved all items on the agenda including the Board’s recommendation to distribute a cash dividend of QAR 0.16 per share, equivalent to 16% of the nominal share value. (Source: The Peninsula) 2
3. March 20 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.1085 USD/QAR 3.6400 119.1700 EUR/QAR 4.0349 USD/JPY GBP/USD 1.3210 JPY/QAR 0.0305 USD/CHF 0.9312 GBP/QAR 4.8084 USD/CAD 1.2602 CHF/QAR 3.9089 AUD/USD 0.7415 CAD/QAR 2.8884 NZD/USD 0.6903 AUD/QAR 2.6991 USD/INR 75.5500 INR/QAR 0.0482 USD/TRY 14.7899 TRY/QAR 0.2461 USD/ZAR 14.9689 ZAR/QAR 0.2432 USD/BRL 5.0231 BRL/QAR 0.7247 FX Commentary The USD bounced back from recent declines as Federal Reserve officials said the central bank may need to be more aggressive to deal with inflation. The US Dollar index rose 0.3% at 98.23. The EUR/USD traded down 0.3% to 1.1055. The GBP/USD went up 0.3% at 1.3180, a day after the BoE increased its interest rate for the third consecutive meeting but softened its language over future tightening plans. The USD/JPY traded up 0.5% at 119.17, the BoJ offered no surprises on Friday, leaving policy ultra-easy. The USD/CNY went up 0.24% at 6.3609. The USD/CAD traded 0.2% lower at 1.2602, as stronger-than-expected domestic retail sales data supported the view that the BoC will keep pace with expected rate hikes this year by the Federal Reserve. The risk-sensitive AUD/USD rose 0.6% at 0.7415. The NZD/USD traded up 0.4% at 0.6903. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.33 0.08 0.45 0.93 1.78 (0.65) (0.57) (0.55) (0.49) (0.22) QAIBOR 0.45 0.50 1.00 1.15 1.35 SAIBOR 0.87 0.95 1.34 2.02 2.32 EIBOR 0.34 0.40 0.53 1.01 1.81 BMIBOR 1.03 1.27 1.75 1.80 2.43 KIBOR 0.63 1.00 1.38 1.63 2.19 LIBOR EURIBOR 1 Month 3 Month 1 Year Source: Refinitiv Eikon 2.18% 0.0% 2.22% 2.24% 2.22% 1.64% 1.28% 0.89% 2.23% 2.11% 0.24% 2 Yrs 2.14% 3.74% 2.77% 2.38% 2.20% 1.87% 1.94% 2.0% 2.15% 2.15% 2.42% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 2.0% 1.0% 4.0% 3 Yrs Qatar Source: Refinitiv Eikon, Investing.com US Swap Rates 3.0% Qatar vs US Treasuries Yields 7 Yrs 10 Yrs Last Year 30 Yrs Source: Refinitiv Eikon 5 Years CDS Spread 6M Change 15.8 3.5 Turkey 568.6 UK 13.7 1.5 Brazil 201.3 4.6 Germany 13.1 2.5 Egypt 568.4 210.3 France 22.5 2.0 Abu Dhabi 50.5 5.9 Italy 87.7 11.1 Bahrain 296.1 61.5 Greece 5 Yrs Current Spread 6M Change US 173.6 92.6 20.3 Dubai 103.0 6.4 Russia 4,473.3 4,387.1 Qatar 56.5 11.3 Japan 18.7 (1.0) Saudi Arabia 50.5 (6.6) Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event Period Survey Prior 10:00 Germany Producer Prices YoY Feb 26.2% 25.0% 10:00 Germany Producer Prices MoM Feb 1.7% 2.2% Source: Refinitiv Eikon GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) L'azurde Company for Jewelry 418.1 306.0 -20.6 -4.0 NA NA Jazan Energy and Developmen 36.4 46.9 89.8 1.1 21.9 -54.1 1506.9 26.5 16.4 338.9 937.1 NA 12.5 12.0 23.0 2.2 41.8 143.6 -41.6 Acwa Power Co National Industries Company QoQ (%) Tamdeen Real Estate Co 6.2 86.7 -19.0 2.8 NA Kuwait Resorts Company 1.4 -14.5 -38.6 -1.0 NA NA Al Soor Fuel Marketing Co 36.9 8.6 3.5 0.2 -78.3 -81.8 Source: Refinitiv Eikon; Note: All figures are in local currency 3
4. QSE MAIN FINANCIAL INDICATORS (as on 17th 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 2.7 3.7 3.1 0.0 0.0 0.0 0.0 0.0 0.8 2.2 0.0 0.0 0.0 3.6 3.8 1.6 4.1 0.0 0.1 4.6 3.0 3.3 3.7 0.0 5.2 4.1 4.4 4.0 0.0 4.0 0.0 4.5 0.0 0.0 4.2 0.0 1.3 4.7 1.0 3.6 0.0 0.0 3.2 0.4 4.1 3.6 4.0 3.5 2.4 3.2 3.3 2.8 P/B Ratio (x) 2.7 2.6 1.6 0.8 1.5 1.8 NA 1.9 0.7 2.1 1.0 2.3 2.6 NA 8.7 0.7 1.2 2.0 1.6 2.0 2.1 1.6 2.5 2.1 2.2 0.9 1.1 2.9 1.0 1.7 1.0 1.1 2.0 2.3 2.2 0.7 0.8 3.0 0.3 1.9 28.7 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) 15.9 15.1 12.7 12.0 14.0 15.7 NA 10.6 (M) (‫)س‬ 56.1 56.8 55.0 17.5 NA (H) (‫)م‬ 21.4 20.8 26.2 (H) (‫)م‬ 19.0 (M) (‫)س‬ 12.9 19.8 22.8 16.4 11.1 15.6 14.4 16.6 13.8 25.5 66.9 18.5 92.6 15.7 13.1 12.8 17.3 15.7 24.6 16.1 14.4 16.4 12.0 NA (M) (‫)س‬ 48.3 (H) (‫)م‬ 21.6 81.8 13.4 10.9 15.2 14.2 18.3 March 20, 2022 EPS (QR) 1.4 1.5 0.6 0.2 0.3 0.7 0.0 0.1 (M) (‫)س‬ 0.0 0.0 0.1 0.6 0.0 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 0.0 (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 0.0 0.8 1.4 0.8 0.9 2.6 4.3 0.0 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 0.0 0.8 0.9 6.6 1.1 3.5 13.0 3.5 1.9 3.8 2.8 Stock Price (QR) 22.8 22.7 7.3 2.7 3.9 10.4 5.2 1.5 0.9 1.6 0.9 5.9 17.3 2.5 1.1 1.5 7.4 3.7 18.6 3.2 7.8 19.5 2.5 3.2 5.4 19.3 2.4 18.4 1.2 2.0 2.7 2.4 2.5 1.9 5.3 1.9 3.9 8.6 1.5 3.4 1.4 0.9 7.4 1.7 8.5 4.2 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