GCC Daily Market Update - 22 August

Transcription

1. DAILY MARKET UPDATE August 22 , 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) 2,428.4 21,703.8 5,786.5 7,318.9 12,066.0 5,087.6 108,614.9 19,393.1 27,154.7 3,286.9 31,258.9 2.8 29.2 (4.4) (5.1) (99.2) (26.6) 1,412.5 (77.3) 107.1 18.2 (265.8) 0.1 0.1 (0.1) (0.1) (0.8) (0.5) 1.3 (0.4) 0.4 0.6 (0.8) (1.7) (0.9) (1.6) (0.7) (0.4) (0.1) 1.0 (2.7) (0.6) 0.4 (3.9) 8.5 9.8 19.0 2.5 5.1 4.6 39.0 1.5 23.4 5.9 17.4 9,065.2 7,225.4 4,494.9 3,595.1 6,913.4 4,943.8 1,309.8 1,672.1 3,311.5 (68.8) 16.1 2.3 (20.3) 12.8 30.6 (2.6) 1.6 3.3 (0.8) 0.2 0.1 (0.6) 0.2 0.6 (0.2) 0.1 0.1 (3.6) 1.8 (1.6) (1.0) 0.9 (1.6) (1.4) (0.2) (0.9) (13.1) 0.2 (1.1) 1.8 20.3 (14.5) 7.3 6.4 14.0 51.7 47.4 3.0 1,290.8 298.1 (1.1) (1.1) 0.1 5.1 4.1 (2.0) (2.4) 2.4 0.4 1.4 (1.6) (5.3) 6.2 1.9 3.2 (8.8) (11.5) (20.4) 12.1 19.1 Source: Bloomberg Global With limited economic releases across the globe, investors focused on the joint military exercise conducted by US and South Korea, which raises geopolitical concerns in the Korean Peninsula. A risk-off buying was witnessed across markets, with Defensive sectors advancing in major US indices, which closed marginally higher yesterday. A sell-off in Technology shares however weighed on Nasdaq index. The Stoxx Europe 600 index declined 0.4%, further pressured by the strength in the EUR which weighed on the exporters listed in the region. Rising metal prices, however, capped losses in the mining heavy UK benchmark, which demonstrated some resilience compared to its regional peers. In Japan, the Nikkei index declined 0.4%, led by losses in Exporting and Financial shares. GCC Most GCC markets closed higher yesterday. Saudi Arabian benchmark edged 0.2% higher. Leading Petrochemical shares advanced, as Brent oil prices held on to its previous session’s gains during the regions trading session. The DFM index fell 0.6%. Drake & Scull International slipped 1.8%, after stating that it would seek shareholders’ approval to convert itself into a Sharia compliant company. The Abu Dhabi benchmark inched 0.1% higher, helped by solid gains in Dana Gas, which has been buoyed by strong results posted last week. Qatar The QE index underperformed its peer indices, declining by 0.8% yesterday, amidst a muted trading session. High activity was witnessed in Banking, Consumer Goods and Telecommunication sectors, which accounted for 77.0% of total trades in terms of value. Most of the sectors closed in red, with Insurance, Real Estate and Telecom sector leading losses. Qatari and Foreign Institutional investors were among the net sellers in yesterday’s trading session. The Commercial Bank declined 1.7%, erasing its previous session’s gains. Out of 45 companies listed, 40 exchanged hands, of which 23 declined, 11 advanced and 6 remain unchanged. QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All share 13.9 1.3 4.2 30.1 DSM 20 15.6 1.5 3.8 19.8 Saudi Arabia (TASI) 17.5 1.7 3.3 761.9 UAE (ADX) 16.6 1.3 4.6 41.8 UAE (DFM) 23.9 1.3 4.0 45.6 Kuwait (KSE) 18.0 1.2 5.3 71.4 Oman (MSM) 11.4 1.0 5.5 7.9 Source: Bloomberg Bahrain (BAX) 7.7 0.8 6.0 0.5 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 Doha Insurance Co Qatar Gen. Insurance QOIS Qatar Intl. Islamic Al Meera Cons Goods Top Losers Qatar Insurance Co Gulf Warehousing Co Medicare Group Widam Food Co United Development Close Price 14.4 32.3 8.6 57.0 151.8 0.7 1.5 0.2 1.1 1.8 5.0 4.7 2.6 2.0 1.2 (20.9) (31.4) (13.2) (9.2) (13.5) (30.7) (34.1) (23.2) (14.9) (30.7) 66.5 46.5 76.2 66.0 15.7 (2.0) (1.1) (1.8) (1.4) (0.3) (2.9) (2.3) (2.3) (2.1) (1.8) (9.8) (17.0) 21.1 (2.9) (24.0) (15.6) (19.8) (19.7) (0.8) (25.8) Source: Bloomberg; Note: Prices are in local currency. 2.9 7.3 17.8 88.3 0.5 8.4 16.3 24.6 10.7 15.2 9.5 19.1 1.1 13.0 4.2 31.9 413.5 NA 72.8 9.7 Qatar DSM Index 11,000 10,500 10,000 9,500 9,000 8,500 25/May 30.0 20.0 9,065.2 10.0 0.0 8/Jun 22/Jun 6/Jul Index Volume (mn) 20/Jul 3/Aug 17/Aug Index Value Closing Level 2,817.1 5,364.8 2,746.1 3,942.8 1,884.3 1,098.2 1,928.8 1D Change (%) (0.4) (0.3) (0.7) (1.7) (1.4) (1.3) 0.3 Buy (%) 50.0 31.6 81.6 9.3 9.1 18.4 Sell (%) 44.5 33.6 78.1 7.9 14.0 21.9 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 August 22 , 2017 GLOBAL NEWS  US Fed survey showed that the unemployment rate stood at 4.4%, which is near a 16-year low after more than eight years of economic recovery. The respondents on average said in July-17 that the lowest annual salary they would accept in a new job would be USD 57,960.0, down from USD 59,660.0 only four months earlier. (Source: Reuters)  Canadian wholesale trade fell by 0.5% MoM in June-17 led by lower sales in the food, beverage and tobacco subsector. Sales also decreased by 0.7% in terms of volumes. (Source: Nasdaq)  The German central bank said that GDP growth in the current year could even be stronger than expected compared to what it projected in June-17. The bank had earlier forecasted a growth of 1.9% for 2017. The bank added that outlook for the employment for the next few months remained upbeat. (Source: Morningstar)  Japan’s department stores sales fell 1.4% YoY in July-17 on a samestore basis, partly due to weak sales of clothes and food items. Sales at 229 stores run by 80 companies totaled JPY 547.0bn. Sales decreased as most of the stores had moved their summer sale period to June-17. (Source: The Mainichi)  Japan's all industry activity index rose 0.4% MoM in June-17 as 1.7% contraction in construction activity was offset by the 2.2% increase in industrial production. All industry activity rose 2.2% YoY in June-17.  Abu Dhabi's residential property prices have declined by 4.0% to 15.0% year to June-17 and the market may soon hit a price floor, according to Core Savills’s Chief executive. Developers are expected to withhold stock in a healthy adjustment mechanism, already witnessed in Dubai in the past five years which would, in turn, cause a prolonged period of lower volumes and flattened sales prices. (Source: Zawya)  Ras Al Khaimah (RAK) International Airport’s aircraft movements to date have moved up 17.6% YoY. On the cargo front, volumes have increased by 30.2% YoY due to additional routes coming on stream and passenger volume to date has increased 6.0% YoY. (Source: Trade Arabia)  Saudi Arabia has issued a regulatory framework for electricity consumers to operate their own, small-scale solar power generating systems and export unused power to the national grid, the government said. The rules will come into existence by 1st July-18 and cover small photovoltaic facilities with generating capacity of no more than 2 megawatts. (Source: Zawya)  Saudi Arabia based Waseela, an ICT systems integrator, is working on more than 200 mega buildings across several GCC countries that involves wireless coverage and capacity enhancement solutions, after an increase in demand for technology driven by Smart City efforts. (Source: Trade Arabia)  The Kuwaiti minister of electricity and water said that country is planning to raise its production from liquefied natural gas (LNG) to more 2.0bn cubic meters within the next five years. He added that Kuwait has a program to raise production to 500.0mn cubic meters in the next two years. (Source: Mubasher)  GS EPS Company, a joint independent power producing associate of Oman Oil Company and GS Holdings, has completed the construction of the environment-friendly phase four 900-MW combined cycle power plant powered by directly imported LNG in South Korea. (Source: (Source: Market Insider)  Turkey and Singapore would reach USD 2.0bn in trade by the end of 2018, said Turkish Economy Minister. He added that a free-trade agreement between Turkey and Singapore will come into force by 1 st October-17. (Source: AA) GCC NEWS  The Dubai Gold and Commodities Exchange and Saudi Arabian conglomerate Ayedh Dejem Group said that they are planning to develop and introduce the Middle East's first sharia-compliant spot gold contract to be traded on an international exchange. The CEO of exchange is expecting that it would attract new institutional investors to trade. (Source: Zawya)  Dubai Electricity and Water Authority, DEWA, has signed a partnership agreement with Mashreq Bank, to allow its customers to pay their DEWA bills in instalments of 3 or 6 months, with no interest or extra charges, while using Mashreq Bank credit cards. (Source: Zawya)  Dubai based Yellow Door Energy (YDE) will install a 311 kWP solar photovoltaic (PV) plant at Elcome's headquarters in Dubai Investments Park. It will manage the construction, operation and maintenance of the solar PV plant for the next 20 years. (Source: Trade Arabia)  Dubai based Drake & Scull International’s (DSI) subsidiary, Gulf Technical Construction Company (GTCC), has received a contract worth AED 175.0mn (USD 47.6mn) from Orion Real Estate Development, to build a residential tower for the latter’s West Bay residential tower project. (Source: Trade Arabia)  Dubai based Emirates Central Cooling Systems Corporation has connected 75 new buildings to its services in 2017. The company added that there is a good progress towards deploying its services to many other buildings in the coming months. (Source: Trade Arabia)  Dubai based Invest Group Overseas (IGO) has introduced a new, 40storey, 195 metre-tall tower in Dubai’s Jumeirah Lakes Towers. It will cost between AED 500.0mn to 600.0mn and the tender for construction works on site is expected to be both floated and awarded in December-17. (Source: Zawya)  Abu Dhabi has allocated 15.4% of its land and 13.5% of its marine areas as protected areas in the emirate, according to report from the Environment Agency-Abu Dhabi (EAD). (Source: Zawya) Trade Arabia) QATAR NEWS  The Supreme Committee for Delivery & Legacy (SC) launched the design of Al Thumama Stadium, the sixth 2022 FIFA World Cup venue. The stadium is being designed by renowned Qatari architect Ibrahim M Jaidah. (Source: Gulf Times)  Qatar ranked 7th globally and first in MENA region in providing high speed broadband services by providing 108 Mbps average peak connection in Q1-17, according to report by Akamai. (Source: Qatar Tribune)  The Ministry of Transport and Communications (MoTC) introduced the Qatar Transport Resilience Programme (QTRP), which aims to deliver an efficient intermodal transport network that encourages public transport ridership. MoTC added that the framework will facilitate cooperation and co-ordination across the transport sector’s relevant entities. (Source: Gulf Times)  Qatar General Electricity and Water Corporation (Kahramaa) has signed a QAR 350.0mn contract with Voltamp Oman for the supply of 4,900 transformers for the electric distribution grid in Qatar. The transformer will be used for the power distribution network to supply electricity to infrastructure projects, industrial projects and residential units. (Source: Gulf Times)  S&P has reaffirmed the current ‘A-’ rating of Doha Insurance with a stable outlook. This decision reflects solid financial position of the Qatari economy and the unwavering support of the government, said Doha Insurance Group chairman. (Source: Gulf Times)  Ashghal said that it has started development and maintenance works on Doha Corniche, stretching from West Bay to the Museum of Islamic Art area. Works to develop and maintain the Corniche in Al Khor will start in Q4-17 and Al Wakrah Beach in the Q1-18. (Source: Gulf Times) 2
3. DAILY MARKET UPDATE August 22 , 2017 FX RATES Currencies Value Currencies Value EUR/USD 1.1845 USD/QAR 3.6415 108.9800 EUR/QAR 4.3134 USD/JPY GBP/USD 1.2930 JPY/QAR 0.0334 USD/CHF 0.9619 GBP/QAR 4.7085 USD/CAD 1.2558 CHF/QAR 3.7857 AUD/USD 0.7939 CAD/QAR 2.8997 NZD/USD 0.7326 AUD/QAR 2.8910 USD/INR 63.6387 INR/QAR 0.0572 USD/TRY 3.4964 TRY/QAR 1.0415 USD/ZAR 13.1742 ZAR/QAR 0.2764 USD/BRL 3.1651 BRL/QAR 1.1505 FX Commentary The USD inched lower against a basket of currencies, amid a risk-off mode among the investors, as military exercises between US and South Korea, renewed the geopolitical tensions in the Korean peninsula. Market participants are now gearing up for the upcoming Jackson Hole Symposium, where global central banks would provide additional guidance for the future course of monetary policy. Safe haven currencies remained on the focal point of investors, with both JPY and CHF moving higher yesterday. The JPY also found support, as industrial activity in the nation improved during June-17. The EUR continued its upward trajectory, amid broad-based losses in the greenback. The CAD edged higher, however, losses in oil prices limited gains in the currency. Source: Bloomberg INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 1.18 1.20 1.24 1.31 1.73 (0.43) (0.38) (0.37) (0.33) (0.16) 1.89 2.01 2.23 2.41 2.91 4.0% SAIBOR NA 1.36 1.46 1.80 2.24 2.0% EIBOR 0.92 1.05 1.31 1.54 2.13 BMIBOR 1.00 1.25 1.75 1.98 2.73 NA NA 1.56 1.75 2.31 LIBOR EURIBOR QAIBOR KIBOR 1 Month 3 Month 1 Year Qatar vs US Treasuries Yields 6.0% 2.15% 1.31% 0.0% 2 Yrs Source: Bloomberg US Swap Rates 5 Years CDS 3.0% US 29.9 UK Germany France 2.0% 1.57% 1.97% 1.83% 1.0% 1.40% 1.26% 0.99% 1.15% 2 Yrs 5 Yrs 7 Yrs Current 2.43% 1.70% 0.0% 10 Yrs Last Year 30 Yrs 3.08% 3.30% 1.76% 2.01% 2.19% 7 Yrs 10 Yrs US 5 Yrs Source: Bloomberg 2.14% 2.86% Qatar Spreads 6M Change 5 Years CDS 4.36% 2.77% 30 Yrs Spread 6M Change 1.4 Turkey 179.2 (61.1) 20.3 (2.3) Brazil 204.8 (21.8) 16.0 (11.2) Egypt 361.6 (55.1) 22.0 (50.7) Abu Dhabi Italy 140.3 (61.2) Greece 601.7 Russia 151.1 Japan 28.9 4.2 60.0 7.4 Bahrain 240.7 (6.7) (507.9) Dubai 125.0 (3.1) (25.2) Qatar 96.0 (21.8) Saudi Arabia 93.6 5.2 Source: Bloomberg Source: Bloomberg ECONOMIC CALENDAR Time Country Event Period Survey Prior 08:00 Japan Supermarket Sales YoY Jul - (1.20%) 11:30 UK Public Finances (PSNCR) Jul - 18.3b 11:30 UK Public Sector Net Borrowing Jul 0.3b 6.3b 11:30 UK PSNB ex Banking Groups Jul 1.0b 6.9b 12:00 Germany ZEW Survey Current Situation Aug 85.2 86.4 12:00 Eurozone ZEW Survey Expectations Aug - 35.6 12:00 Germany ZEW Survey Expectations Aug 15.0 17.5 15:30 Canada Retail Sales MoM Jun 0.20% 0.60% 15:30 Canada Retail Sales Ex Auto MoM Jun 0.10% (0.10%) 16:00 US FHFA House Price Index MoM Jun 0.50% 0.40% 16:00 US House Price Purchase Index QoQ Q2 - 1.40% 17:00 US Richmond Fed Manufact. Index Aug 10.0 14.0 03:30 Japan Nikkei Japan PMI Mfg Aug P - 52.1 Source: Bloomberg GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) NA NA NA 113.7 6.7 102.4 Makkah Construction & Dev. Source: Bloomberg; Note: All figures are in local currency 3
4. DAILY MARKET UPDATE August 22 , 2017 QSE MAIN FINANCIAL INDICATORS 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 Investment Holding 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 (%) 3.0 0.0 0.0 8.2 2.1 5.9 5.0 3.8 0.0 4.9 7.0 2.4 5.8 3.4 5.4 3.9 5.9 4.0 6.1 0.0 9.3 5.3 6.0 5.8 5.7 5.1 0.0 4.3 4.6 3.9 2.2 7.0 5.4 4.3 3.9 4.2 2.0 4.7 6.2 2.5 7.6 4.4 0.0 8.0 5.5 3.9 0.0 3.1 3.4 5.9 5.4 5.4 3.9 P/B Ratio (x) 1.3 0.7 2.1 0.9 1.9 0.8 2.5 0.7 0.8 1.6 1.6 2.0 0.9 1.6 1.3 2.2 2.3 1.2 1.5 1.3 0.6 4.1 0.7 1.5 0.9 1.0 0.7 1.7 1.2 2.6 2.3 1.4 1.5 1.6 0.8 0.7 2.3 0.5 2.6 1.4 0.7 1.0 0.8 0.5 0.8 1.3 1.6 1.3 1.8 1.1 0.6 0.8 1.4 P/E Ratio (x) 9.8 67.0 31.0 8.9 67.9 10.7 14.7 (M) (‫)س‬ (M) (‫)س‬ 10.1 10.7 9.8 24.6 11.2 7.1 32.0 15.2 59.8 14.7 (M) (‫)س‬ 11.7 11.7 5.8 12.4 14.8 (M) (‫)س‬ 17.4 21.7 17.0 13.6 21.4 9.9 11.4 18.3 26.6 8.4 19.7 16.3 13.4 18.2 9.8 14.8 42.9 9.7 12.6 15.6 (M) (‫)س‬ 23.1 13.0 10.9 17.4 13.1 13.5 EPS (QR) 3.2 0.4 0.6 3.4 0.7 1.2 2.7 (M) (‫)س‬ (M) (‫)س‬ 9.6 5.3 13.8 0.4 5.4 10.6 2.4 10.0 0.4 7.2 (M) (‫)س‬ 0.7 5.6 12.9 5.1 0.7 (M) (‫)س‬ 0.4 4.3 0.8 14.2 2.2 4.4 6.0 2.1 0.6 1.7 3.4 2.0 4.3 2.8 3.4 0.8 0.2 1.6 1.1 5.7 (M) (‫)س‬ 1.3 3.6 1.6 3.7 2.1 2.8 BV/Share (QR) 25.0 42.3 8.7 34.2 24.3 16.9 16.3 19.9 8.7 60.6 36.7 68.1 9.2 37.6 59.5 34.1 65.5 20.7 68.4 6.2 14.0 16.2 111.0 43.0 12.3 19.5 10.3 53.9 11.1 73.6 20.6 31.6 45.7 23.8 20.2 20.8 29.4 70.7 21.9 35.6 46.7 11.2 12.7 30.3 17.1 69.7 5.5 23.2 26.1 15.0 118.6 32.2 27.2 Stock Price (QR) 31.5 29.8 18.0 30.4 47.0 12.7 40.2 13.2 7.2 96.5 57.0 135.0 8.6 74.8 76.2 151.8 25.0 105.5 8.2 8.7 66.0 75.0 10.5 19.7 7.5 93.2 13.2 192.9 46.6 43.8 68.0 15.6 14.4 66.5 32.3 56.9 33.1 11.4 10.2 15.7 88.8 8.9 46.5 17.0 64.8 - 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 االستهاليكية‬ ‫أعمال‬ ‫الخليج الدولية‬ ‫ا س ت ثمار ال قاب ضة‬ ‫صناعات قطر‬ ‫مسيعيد‬ ‫يكهرباء وماء‬ ‫المستثمرين‬ ‫التحويلية‬ ‫االسمنت‬ ‫الصناعات‬ ‫الخليج‬ ‫الدوحة‬ ‫قطر‬ ‫العامة‬ ‫االسالمية‬ ‫التأمين‬ ‫بروة‬ ‫إزدان القابضة‬ ‫مزايا قطر‬ ‫المتحدة للتنمية‬ ‫العقارات‬ ‫يكيوتل‬ ‫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