GCC Daily Market Update - 20 October

Transcription

1. October 20 , 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) 4,519.6 35,457.3 15,410.7 7,217.5 15,515.8 6,669.9 1,429.9 29,215.5 25,787.2 3,593.2 61,716.1 33.2 198.7 109.8 13.7 41.4 (3.3) 12.1 190.1 377.5 25.0 (49.5) 0.7 0.6 0.7 0.2 0.3 (0.0) 0.9 0.7 1.5 0.7 (0.1) 4.9 4.8 4.9 1.9 1.7 2.3 1.7 (0.8) 4.9 0.7 4.4 20.3 15.8 19.6 11.7 13.1 20.1 (3.2) 6.5 (5.3) 3.5 29.2 11,767.5 11,792.5 7,888.4 2,818.3 6,955.9 3,969.5 1,718.1 749.2 6,218.7 24.1 34.5 (4.6) 16.1 32.0 (4.1) 8.1 1.8 51.9 0.2 0.3 (0.1) 0.6 0.5 (0.1) 0.5 0.2 0.8 2.5 2.6 2.5 (1.0) 1.3 0.7 0.7 2.7 4.5 12.8 35.7 56.4 13.1 25.4 8.5 15.3 32.6 14.2 85.1 83.0 5.1 1,769.7 4.7 0.8 0.5 0.1 4.9 (0.0) 0.9 0.6 2.0 0.3 (0.3) 8.4 10.6 (13.3) 0.8 15.3 64.2 71.0 100.4 (6.5) 34.1 Global Most global equity indexes advanced Tuesday as US technology shares extended recent gains after strong earnings reports. The Dow Jones Industrial Average rose 0.6%, the S&P 500 gained 0.7%, and the Nasdaq 100 added 0.7%. Positive earnings and defensive buying helped European indices close in the black on Tuesday as the pan-European Stoxx 600 index rose 0.3%. Most Asian markets surged ahead on Tuesday, led by technology stocks as Chinese markets regained lost ground after disappointing economic data. The Hong Kong benchmark rose 1.5% while the Shanghai Composite Index gained 0.7%. Japan’s Nikkei closed 0.7% higher. GCC The Saudi equity market scaled a more than 15-year high on Tuesday, advancing for a fifth session in the last six and leading gains in the Gulf as crude oil prices reversed earlier losses. The Saudi benchmark rebounded to end 0.3% higher, touching its highest level since July 2006, boosted by a 3% rise in Al Rajhi Bank and a 0.5% gain in Saudi National Bank. Dubai's main equity index added 0.6%, helped by a 0.8% rise in Dubai Islamic Bank and a 0.5% increase in blue-chip developer Emaar Properties. In Abu Dhabi, the index fell 0.1%, hit by a 0.3% drop in First Abu Dhabi Bank and a 1.4% decline in Alpha Dhabi Holding. Qatar The Qatari benchmark index gained 0.2% as Gulf International Services advanced by 4.3% and Medicare Group increased by 2.2%, ending as the day’s top gainers. Out of the total 47 traded stocks, 20 advanced, 23 declined and 4 remained unchanged. Total traded volume in the market was lower than the previous trading session. The Banks & Financial Services and Consumer Goods & Services indices increased 0.4% each while the Telecoms index ended lower by 0.6%. 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 16.7 1.5 2.5 165.5 DSM 20 16.6 1.7 2.5 132.7 11,200 Saudi Arabia (TASI) 24.6 2.8 2.2 1,963.8 UAE (ADX) 21.8 2.3 2.9 364.0 UAE (DFM) 14.2 0.9 2.8 50.3 Kuwait (KSE) 21.1 1.7 1.9 169.3 Oman (MSM) 10.6 0.8 3.6 5.5 Source: Refinitiv Eikon Bahrain (BAX) 13.4 1.0 1.9 4.0 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 GULF INTR SERV MEDICARE GROUP QATAR ALUMINIU QA GEN INS REI MANNAI CORP Top Losers DLALA' BROKERA NAT LEASING CO QA CINEMA & FI MAZAYA QAT GER MED DE 1.8 8.6 2.0 2.1 5.0 1.6 1.1 3.7 1.1 3.6 0.1 0.2 0.0 0.0 0.1 (0.0) (0.0) (0.1) (0.0) (0.0) 4.3 2.2 1.7 1.5 1.2 (1.8) (1.5) (1.4) (1.3) (1.0) Performance YTD YoY (%) (%) 6.8 (2.9) 109.3 (21.8) 66.6 (11.9) (14.8) (8.6) (14.2) 59.0 Source: Refinitiv Eikon; Note: Prices are in local currency. 13.4 (5.4) 91.8 (8.8) 63.9 (28.9) (17.5) (4.2) (9.7) 69.6 Vol. (‘000) P/E TTM 43,121.4 809.9 28,825.9 6.9 1,209.8 NA 27.8 30.6 10.6 6.8 6,789.0 5,034.8 1.6 18,635.4 3,506.3 30.5 20.8 61.8 41.0 134.3 300.0 11,767.5 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 4,921.7 8,353.8 4,216.0 2,611.0 1,847.9 1,075.4 3,475.8 1D Change (%) 0.4 0.4 0.2 0.2 0.0 (0.6) 0.1 Source: Refinitiv Eikon Qatar Trading Summary Buy (%) Sell (%) Qatari Individuals 41.9 43.7 Qatari Institutions 20.9 35.1 Qatari – Total 62.8 78.8 Foreign Individuals 14.2 13.8 Foreign Institutions 23.0 37.2 7.4 21.2 Foreign – Total Source: Qatar Exchange 1
2. October 20 , 2021 knowledge with an eye to upgrade the energy sector in the emirate. GLOBAL NEWS (Source: Zawya)  The Saudi Ministry of Energy announced the list of candidates for bids received from developers participating in the third phase of renewable energy projects in the kingdom, comprising four independent solar power generation projects with a total capacity of 1200 MW. France’s Total Solar, ACWA Power and AlFanar Energy are among the candidates. (Source: Arab News)  Saudi Arabia's holding of US Treasury securities decreased to USD 124.1bn at the end of August, the lowest since May 2020, according to new data from the US government. (Source: Arab News)  Average motor and aviation gasoline demand in Saudi Arabia jumped to 470 kbpd in 2021 (up to August), compared to 455 kbd in 2020, data compiled by Arab News revealed. (Source: Arab News)  Russia said it would seek to fine Google between 5% and 20% of its annual Russia turnover, which could reach up to USD 240mn, for repeatedly failing to delete content deemed illegal. (Source: Reuters)  Etihad Etisalat Co’s net profit jumped 40% YoY to SAR 751mn (USD 200mn) as revenues increased 4% YoY to SAR 10.9bn during 9M-21.  Asia's biggest warehouse operator GLP revealed on Tuesday that it raised JPY 311bn (USD 2.73bn) for its largest Japan-focused private real estate fund amid a global boom in the logistics sector spurred by growing e-commerce sales. (Source: Reuters)   About a dozen US senators from both parties have introduced a bill to bar Big Tech platforms such as Amazon and Google from favoring their products and services. (Source: Reuters)  The UK government is working with Bill Gates to invest GBP 400mn (USD 552mn) to develop new green technologies that are more affordable including in areas such as green hydrogen, long-term energy storage, sustainable aviation fuels and direct air capture of carbon dioxide. (Source: Reuters)  British digital bank Zopa has reported raising USD 300mn from investors including Japan's SoftBank Group as the lender looks to expand its business ahead of a possible listing as soon as next year. (Source: Reuters) (Source: Argaam) The Saudi Venture Investment Co (SVC) has launched the “Investment in Accelerator Funds and Startup Studios” initiative, the Saudi Press Agency reported. The initiative is a part of the company’s efforts to support startups in the kingdom in the seed and pre-seed phases. SVC has investments worth SAR 1.1bn (USD 293.2mn) in 20 funds. (Source:  Hengda Real Estate Group, the flagship Hong Kong unit of beleaguered China Evergrande, has paid an onshore bond coupon of CNY 121.8mn (USD 19mn) amid concerns about a possible offshore default by the cash-strapped developer later this week. (Source: Reuters)   Chinese smartphone manufacturer Xiaomi is expecting to mass produce its own electric vehicles by H1-24, its CEO Lei Jun has said. In March, the company announced its entrance into the EV space, stating it planned to invest USD 10bn into the business over the next 10 years. Moody's Investors Service has upgraded the outlook on seven Omani banks to stable from negative. The banks reviewed include Bank Muscat, HSBC Bank Oman, Bank Dhofar, National Bank of Oman, Sohar International Bank, Oman Arab Bank and Bank Nizwa. (Source: Zawya)  Bahrain witnessed robust growth in applications for advertising licenses despite the Covid-19 pandemic as the government’s Advertising Committee reported a 135% YoY jump in the number of applications received during 9M-21. (Source: The Daily Tribune) Arab News) (Source: CNBC)  HSBC and Standard Chartered Bank are among 19 lenders that the Hong Kong Monetary Authority has allowed to sell investment products under a new cross-border investment scheme that connects capital markets in the Guangdong-Hong Kong-Macao Greater Bay Area. (Source: CNBC) QATAR NEWS  GCC NEWS  The IMF has raised its growth forecast for MENA to 4.1% this year from an earlier estimate of 4%. The revision is attributable to fast vaccine roll-outs in parts of the region and financial measures taken at the start of the pandemic. 2022 growth is also seen at 4.1%, up from April’s estimate of 3.7% as the international finance institution cautioned that the recovery is uneven across the region. (Source: Bloomberg)  According to HSBC’s Expat Explorer 2021 survey, the UAE has climbed 10 spots to rank the fourth best place to live and work out of 48 global markets with most expatriates feeling positive about life in general and expecting better personal finances as well as work-life balance. Two other Gulf states making it to the top 10 rankings included Bahrain (8th) and Qatar (10th). (Source: Zawya)  Emirates Integrated Telecommunications Co reported a 66% decline in Q3-21 net profit to AED 283mn (USD 77.05mn) as operating expenses rose, offsetting a rise in revenue. (Source: Zawya)  Dubai Investments (DIC) has signed a deal with RAK-based developer Marjan for the development of residential and hospitality projects worth AED 1bn (USD 272mn) on Ras Al Khaimah’s Al Marjan Island. (Source: Zawya)  The Abu Dhabi Department of Energy has signed a Memorandum of Understanding with Huawei to strengthen collaboration, and support research and development, capability building and the exchange of The Qatari Emir has appointed Ali Bin Ahmad Al-Kuwari as finance minister in a government reshuffle, according to a statement issued by the emiri court. Al-Kuwari had been serving as commerce and industry minister and as acting finance minister before the reshuffle. (Source: Reuters)  Qatar Business Incubation Center (QBIC), one of the business incubators in the MENA region, founded by Qatar Development Bank, has launched the country’s first-of-its-kind Lean Coach Program, designed to develop the next generation of certified startup coaches. (Source: The Peninsula)  Qatari real estate and investment company Barwa Real Estate Group posted a net profit attributable to the shareholders of the parent company amounting to QAR 736mn in Q3-21, an increase of 2% YoY. (Source: The Peninsula)  Qatari real estate development company owned by Katara Hospitality, Qetaifan Projects and Saudi developer Dar Al Arkan Real Estate Development have signed a QAR 700mn agreement to develop premium sea-front projects on Qetaifan Island North. (Source: The Peninsula)  Al Khalij Commercial Bank has announced its financial results for 9M21, reporting a net profit of QAR 561mn, an increase of more than 3% YoY. (Source: The Peninsula)  Masraf Al Rayan has announced a net profit of QAR 1.713bn for 9M21, a growth of 3.1% YoY. The bank’s total assets grew by 7.1% YoY to QAR 124.765bn from QAR 116.548bn as of September-end. (Source: The Peninsula) 2
3. October 20 , 2021 FX RATES Currencies Value Currencies Value EUR/USD 1.1662 USD/QAR 3.6400 114.3600 EUR/QAR 4.2450 USD/JPY GBP/USD 1.3825 JPY/QAR 0.0318 USD/CHF 0.9228 GBP/QAR 5.0323 USD/CAD 1.2362 CHF/QAR 3.9445 AUD/USD 0.7472 CAD/QAR 2.9445 NZD/USD 0.7152 AUD/QAR 2.7198 USD/INR 74.6005 INR/QAR 0.0488 USD/TRY 9.2918 TRY/QAR 0.3917 USD/ZAR 14.5224 ZAR/QAR 0.2506 USD/BRL 5.5844 BRL/QAR 0.6518 FX Commentary The USD fell for the second consecutive day this week as other currencies received support from investors’ expectations of an interest rate hike in the US sooner. The US Dollar index was down 0.14% at 93.81. The EUR/USD gained 0.2% at 1.1632 as the GBP/USD traded up 0.5% at 1.3795. The USD/JPY traded up 0.04% at 114.36. The CNY/USD gained 0.8% at 0.1567. The CAD rose to its highest level in more than three months against its US counterpart on Tuesday before giving up gains as investors took profits ahead of a key Canadian inflation report on Wednesday. The USD/CAD was trading 0.1% lower at 1.2362. The risk sensitive AUS/USD traded up 0.8% at 0.7472 as the NZD/USD benefited from rising interest rate increase expectations, climbing 1.0% at 0.7152. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.07 0.07 0.09 0.13 0.30 (0.59) (0.57) (0.56) (0.55) (0.48) QAIBOR 1.00 1.00 1.03 1.15 1.35 SAIBOR 0.55 0.59 0.66 0.82 0.94 EIBOR 0.14 0.17 0.19 0.35 0.55 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 1.63% 1.44% 1.22% 2.0% 0.40% 0.0% 1.31% 0.96% 0.61% 0.73% 2 Yrs 3 Yrs Qatar 1.17% 1.67% 5 Yrs 10 Yrs US 2.12% 30 Yrs 7 Yrs 10 Yrs Last Year Spread 6M Change 13.3 4.2 Turkey 446.1 1.20% UK 10.9 (1.7) Brazil 202.3 5.2 9.6 (0.7) Egypt 358.7 17.0 Abu Dhabi 44.6 (3.0) Germany 0.0% 5 Yrs Current 5 Years CDS US 0.79% 0.57% 0.41% Spreads 6M Change 1.85% 0.23% 2 Yrs 2.29% 5 Years CDS 2.0% 0.56% 3.32% 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 (1.1) Italy 72.2 (10.3) Greece 74.9 (6.4) Russia 85.2 (26.6) Japan 19.5 2.4 Bahrain 40.4 234.9 18.3 Dubai 96.6 (13.3) Qatar 45.1 (2.5) Saudi Arabia 57.1 (8.4) Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event Period Survey Prior 09:00 UK CPI YoY Sep 3.2% 3.2% 12:00 Euro Zone HICP Final MoM Sep 0.5% 0.4% 12:00 Euro Zone HICP Final YoY Sep 3.4% 3.4% 15:30 Canada CPI BoC Core YoY Sep NA 3.5% 15:30 Canada CPI BoC Core MoM Sep NA 0.2% Source: Refinitiv Eikon GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) Masraf Al Rayan NA NA NA 570.0 -1.5 0.2 Al Khalij Commercial Bank NA NA NA 188.9 3.6 1.1 Ahli Bank NA NA NA 216.1 4.7 NA Qatar Islamic Bank NA NA NA 929.9 17.7 10.0 18.1 Emirates Integrated Telecom 2,874.1 6.9 0.7 283.2 -65.6 National Marine Dredging 2,111.5 81.3 0.5 NA NA NA NA NA NA 52.5 -48.7 -48.7 170.7 -21.5 -15.8 40.0 -48.6 -48.5 3,606.0 7.5 -3.3 281.0 26.7 15.2 Sharjah Islamic Bank Yamama Cement Company Etihad Etisalat Company 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 20, 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