GCC Daily Market Update - 24 April

Transcription

1. DAILY MARKET UPDATE April 24 , 2018 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) 2,670.3 0.2 24,448.7 (14.3) 6,648.8 (18.9) 7,398.9 30.7 12,572.4 31.9 5,438.6 25.7 110,932.5 (1,189.6) 22,088.0 (74.2) 30,254.4 (163.9) 3,068.0 (3.5) 34,450.8 35.2 0.0 (0.1) (0.3) 0.4 0.3 0.5 (1.1) (0.3) (0.5) (0.1) 0.1 1.1 1.4 1.0 4.9 3.9 5.2 (3.5) 3.0 0.5 (3.2) 4.5 (0.1) (1.1) 3.9 (3.8) (2.7) 2.4 (3.8) (3.0) 1.1 (7.2) 1.2 9,157.6 8,335.4 4,693.5 3,062.0 4,785.1 4,756.0 1,298.6 1,689.1 3,636.6 2.0 78.8 11.0 (17.5) (3.8) (5.0) (2.5) (7.0) (11.4) 0.0 1.0 0.2 (0.6) (0.1) (0.1) (0.2) (0.4) (0.3) 6.8 5.9 2.4 (1.5) (3.6) (0.4) (1.5) 2.2 0.6 7.4 15.3 6.7 (9.1) NA (6.7) (2.5) 6.1 (0.1) 74.7 68.6 2.7 1,322.5 311.1 0.7 0.3 0.0 (14.2) (2.5) 0.9 0.4 0.0 (1.1) (0.8) 6.7 6.2 0.2 (0.0) 3.2 12.1 14.1 (7.2) 1.0 (5.4) Global The US equity market ended mostly lower yesterday, as persistent increase in treasury yields reflected expectations of higher inflation and rate hikes from the US Fed. The Nasdaq continued its downward trend, as weakness in major blue-chip stocks weighed on the benchmark. The S&P 500 ended almost flat as decline in Technology stocks was offset by gains in Telecommunication shares. The Stoxx Europe 600 index inched 0.3% higher reversing the trend, supported by gains in Financial sector, as Eurozone bond yields inched higher tracking their US counterparts. The FTSE 100 continued its upward trend and inched higher by 0.4%, as Telecom, Oil and Gas and Financial sector stocks moved higher. In Asia, the Japanese benchmark inched 0.3% lower, amid weakness in blue-chip shares. Defense-related stocks remained the notable losers amid easing geopolitical tensions in the Korean peninsula. GCC Most GCC indices ended lower yesterday. The Saudi Arabian index rose 1.0%, supported by inflow of foreign funds and strong corporate earnings data. Bank Aljazira was up 5.1% after Bahrain’s Ahli United Bank acquired a 7.3% stake in the lender. Saudi Telecom rose 1.6%, after the company’s Q118 earnings matched market expectations. The Dubai index inched 0.6% lower. Damac Properties fell by 7.1% after the company lowered its annual cash dividend to 15 fils per share from 25 fils for FY-17. Qatar The QE index rose marginally higher supported by higher buying interests of gulf and foreign institutional investors. Trade turnover and volumes were on the increase in the market, where the Telecom, Banking and Industrials sectors together accounting for more than 81.0% of the total volume. Out of the 45 listed stocks, 41 exchanged hands of which, 17 advanced, 18 advanced and 6 remained unchanged. Source: Bloomberg QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All share 13.6 1.3 4.3 87.0 DSM 20 13.3 1.4 4.8 65.0 9,000 Saudi Arabia (TASI) 18.3 1.8 3.2 1,508.3 8,500 UAE (ADX) 12.2 1.3 5.1 52.5 UAE (DFM) 10.6 1.1 5.9 39.9 Kuwait (KSE) 14.4 1.2 4.9 35.6 Oman (MSM) 11.9 1.0 5.1 1.9 Source: Bloomberg Bahrain (BAX) 8.8 0.8 6.3 2.7 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 Qatar Fuel Qsc Vodafone Qatar Qatari Investors Group Gulf Warehousing Co Qatar Elect. & Water Top Losers Aamal Co Qatar & Oman Invest Zad Holding Co Masraf Al Rayan Qatar German Co Close Price 132.0 9.6 33.6 41.2 204.0 4.5 0.3 0.6 0.7 3.0 3.5 2.8 1.8 1.7 1.5 29.3 19.2 (8.2) (6.3) 14.6 10.6 7.1 70.0 35.7 5.6 (0.5) (0.3) (2.0) (0.6) (0.1) (4.2) (3.7) (2.8) (1.7) (1.4) 22.0 (10.0) (4.9) (5.5) (12.8) Source: Bloomberg; Note: Prices are in local currency. (1.3) 180.1 13.6 0.5 5,949.2 NA (44.0) 24.6 16.5 (20.3) 32.6 10.9 (2.4) 85.3 13.5 (23.3) (26.4) (13.1) (14.7) (41.0) 264.3 13.3 1.8 24.0 30.2 8.4 779.8 13.1 20.1 NA Qatar DSM Index 9,500 20.0 9,157.6 10.0 8,000 25/Jan 0.0 8/Feb 22/Feb 8/Mar Index Volume (mn) 22/Mar 5/Apr 19/Apr Index Value Closing Level 3,124.7 5,750.6 3,098.3 3,136.2 1,973.8 1,143.6 1,716.5 1D Change (%) (0.4) 1.8 0.5 0.4 0.0 1.4 (0.1) Buy (%) 43.3 17.3 60.6 11.1 28.3 39.4 Sell (%) 45.3 19.8 65.1 12.2 22.7 34.9 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 April 24 , 2018 GLOBAL NEWS    US existing home sales rose 1.1% MoM to a seasonally adjusted annual rate of 5.60mn units in March-18 due to recovery in sales in the Northeast and Midwest regions, according to National Association of Realtors. (Source: Reuters) Bank of Canada Governor Stephen Poloz stated that though the inflation is expected to rise above the central bank’s target of 2.0% in 2018, it would be due to temporary factors. (Source: Reuters)  Saudi Telecom Company has signed a Memorandum of Understanding with the blockchain company ConsenSys to use the technology to empower various industry verticals across Saudi Arabia as per the Country’s vision 2030. (Source: Saudi Gazette)  Kuwait based leading real estate developer United Real Estate Company has issued a KWD 60.0mn bond with a five-year tenure, with KAMCO Investment Company acting as the Sole Manager and Arranger. (Source: Kuwait times)  Oman’s Sohar Port and Freezone has entered into an agreement with Sohar Flour Mills for constructing a 12 grain storage silos with a storage capacity of 13,000 tons each within the port area as well as construction of new agro bulk terminal and deep water berth. (Source: Canada’s wholesale sales declined 0.8% MoM to CAD 62.8bn in February-18 due to lower sales in miscellaneous, motor vehicle and ancillary part suppliers and building material and supplies subsectors. CBNME) (Source: Statistics Canada)  European Central Bank’s director Benoit Coeure has announced that the central bank could provide liquidity for the lenders which are on the verge of bankruptcy if they meet certain conditions. (Source: Reuters)  Prime Minister of the UK has announced that the government was sticking to its proposals to ease trade regulations with the European Union after Brexit which rejects suggestions that plans to quit its customs union which were dividing her party. (Source: Reuters)  British government is highly confident that Europe will offer financial companies substantial market access after the Brexit, which will maintain the country’s position as a top global financial center. (Source:  The contribution of Bahrain’s tourism and hospitality sector to the GDP, which stood at 6.3% in FY-17 is expected to reach to "double digits" over next several years, according to the Bahrain Economic Development Board. (Source: Arabian Business)  Bahrain based publisher, Al Hilal Group has ended its media relationship with ME3 due to a disputes between the two parties. (Source: Trade Arabia)  Reuters)   Australia’s Consumer Price Index rose 0.4% QoQ in Q1-18 while the annual growth was 1.9% indicating that inflationary pressures is slowly build up. (Source: Australian Bureau of Statistics) Turkey’s finance minister has announced that a VAT exemption was issued for foreigners in the nation for services offered as government plans to promote health tourism. (Source: Daily Sabah) Times of Oman) QATAR NEWS  Public Works Authority (Ashghal) has announced that about 100 infrastructure projects with an investment value of QAR 40.0bn are expected to be executed in the country over next two years. Qatar also plans to invest about USD 20.0bn in infrastructure projects and roads over the next five to seven years. (Source: Qatar tribune)  Qatar Airways’ orders from local suppliers has grown by 21.0% YoY in in the past year during the blockade which indicates its support to local SMEs according to a company official. (Source: Gulf times)  Qatar Development Bank’s CEO has revealed that it has received more than 2,000 business opportunities valued at QAR 6.5bn which included public tenders extended by 40 big buyers such as larger private sector companies, semi-governmental and governmental bodies. (Source: Gulf GCC NEWS  S&P Global ratings forecasts that all of the GCC countries are well placed to benefit from solar power considering their favorable climate and the ample amount of land at their disposal. (Source: Trade Arabia)  Occupancy rates of UAE hotels increased by 1.1% YoY to 83.4% in Q118 led by healthy demand growth of 5.2% YoY which outpaced continued supply growth. ADR, however, was down 3.4% YoY to AED 666.48 (USD 181.4) while RevPAR slipped 2.3% to AED 556.1 (USD 151.3).  Dubai based healthcare provider NMC Health has been assigned a Ba1 –PD corporate family rating from Moody’s with a stable outlook considering the favorable regulatory environment and the company’s relations with the various government bodies. (Source: Trade Arabia)  Dubai based Mashreq Bank’s net profit increased by 9.5% YoY to AED 598.0mn (USD 163.0mn) for the Q1-18 led by a 4.0% YoY increase in operating income. (Source: Trade Arabia)  Dubai based real estate developer Emaar Properties has approved the distribution of cash dividend amounting to AED 1.0bn (USD 272.3mn) which is 14.0% its share capital for FY-17. (Source: Trade Arabia)  Abu Dhabi’s state investor Mubadala has halted its talks to buy the investment business of the troubled private equity firm Abraaj which his facing investigation by its investors. (Source: Reuters)   Abu Dhabi Global Market (ADGM) has entered into a memorandum of understanding with Shanghai Stock Exchange to set up a “Belt and Road” exchange within ADGM to fulfill the investment and financing needs of the MENA region. (Source: Trade Arabia) Sharjah’s tourism sector’s contributes AED 7.0bn (USD 1.9bn) or 8.5% to the total GDP of AED 83.0bn of Sharjah according to the chairman of the Sharjah Commerce and Tourism Development Authority. (Source: Bahrain’s state-owned Gulf Air is expanding on its Middle East routes by adding 8 destinations to its network make over 60 destination by 2023 aimed at driving passenger growth and turning around the lossmaking airline carrier according to the company’s Deputy CEO. (Source: times)  Qatar Financial Centre has launched a new Purchasing Managers’ Index for the non-oil private sector which will be compiled by IHS Markit and will give early signs of changes in business activities. (Source: Gulf times)  Qatar Rail CEO has announced that its participation in Government Procurement and Contracting Conference and Exhibition is aimed at showing its commitment to support the private sector and SMEs by providing them opportunities. (Source: Gulf times)  Qatar National Bank Group has entered into a landmark merchant agreement with Qatar Rail whereby the bank will act as a strategic partner and the official Acquirer Bank for all TravelCard and Fare Media payments. (Source: Gulf times)  Qatar Insurance Company launched its unique initiative ‘QIC Anaya’ which will grant all Qataris and residents cover up to 70% of medical expenses, provide consultation for certain medical specialties and cover treatments not included under other insurance policies. (Source: Gulf times)  Qatar Electricity and Water Company’s net profit has increased by 12.6% YoY to QAR 394.0mn despite an 8.0% YoY decline in revenue due to rise in share of profit of joint ventures to QAR 131.1mn. (Source: Gulf times) Trade Arabia) 2
3. DAILY MARKET UPDATE April 24 , 2018 FX RATES Currencies Value Currencies Value EUR/USD 1.2239 USD/QAR 3.6415 108.7100 EUR/QAR 4.4568 USD/JPY GBP/USD 1.3970 JPY/QAR 0.0335 USD/CHF 0.9782 GBP/QAR 5.0872 USD/CAD 1.2849 CHF/QAR 3.7227 AUD/USD 0.7605 CAD/QAR 2.8341 NZD/USD 0.7148 AUD/QAR 2.7694 USD/INR 65.9812 INR/QAR 0.0552 USD/TRY 4.1083 TRY/QAR 0.8864 USD/ZAR 12.3500 ZAR/QAR 0.2949 USD/BRL 3.4525 BRL/QAR 1.0547 FX Commentary The USD rose against the basket of major currencies yesterday, with the dollar index rising 0.7% to settle at 90.960 near its three-month high level. The greenback was supported by consistent gains in the US bond yields. Encouraging existing home sales data also supported the greenback. The EUR weakened against USD, despite the release of encouraging manufacturing activity data across the common currency bloc. The CAD weakened against USD, as dovish comments from the Bank of Canada Governor Stephen Poloz that there remains no urgency to lift the interest rates weighed on the currency. Moreover, an unexpected decline in the Canadian wholesale sales data also weighed on the currency. The AUD fell against the USD, amid reports that US might lift its sanctions on Rusal, easing commodity supply shortage fears. Source: Bloomberg INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 1.70 1.74 1.90 2.36 2.76 (0.44) (0.38) (0.37) (0.33) (0.19) 2.27 2.33 2.46 2.65 3.04 4.0% SAIBOR NA 1.91 2.06 2.35 2.74 2.0% EIBOR 1.39 1.61 2.00 2.46 3.09 BMIBOR 1.63 1.90 2.43 2.78 3.28 NA NA 1.75 2.00 2.44 LIBOR EURIBOR QAIBOR KIBOR 1 Month 3 Month 1 Year Qatar vs US Treasuries Yields 6.0% 3.32% 2.48% 3.98% 4.24% 4.43% 2.81% 2.93% 2.96% 3.13% 7 Yrs 10 Yrs US 30 Yrs 5.03% 0.0% 2 Yrs 5 Yrs Qatar Source: Bloomberg Source: Bloomberg US Swap Rates 5 Years CDS 4.0% US 28.3 0.0 Turkey 197.4 UK 18.4 (8.4) Brazil 171.8 (1.7) Germany 11.5 (2.1) Egypt 277.4 (67.8) France 18.3 (4.5) Abu Dhabi 63.7 3.2 Italy 86.1 (47.9) Bahrain 289.2 45.2 Greece 339.9 (180.9) Dubai 113.5 (15.8) Russia 134.5 3.5 Qatar 88.5 (12.9) Japan 25.2 (10.8) Saudi Arabia 88.4 3.3 2.75% 2.99% 2.95% 2.92% 2.0% 1.56% 2.25% 2.09% 1.93% 3.01% 2.50% 0.0% 2 Yrs 5 Yrs 7 Yrs Current 10 Yrs Last Year 30 Yrs Spreads 6M Change 5 Years CDS Spread 6M Change 16.5 Source: Bloomberg Source: Bloomberg ECONOMIC CALENDAR Time Country Event Period Survey Prior 11:00 Germany IFO Business Climate Apr 102.8 103.2 11:00 Italy Manufacturing Confidence Apr 108.8 109.1 11:00 Italy Consumer Confidence Index Apr 116.9 117.5 17:00 US New Home Sales Mar 630k 618k 17:00 US Conf. Board Consumer Confidence Apr 126 127.7 Source: Bloomberg GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) Qatar Electricity & Water Co YoY (%) QoQ (%) 29.4 659.9 (8.4) (6.6) 394.4 12.6 Islamic Holding Group NA NA NA 0.2 (81.9) NA Mashreq Bank NA NA NA 598.2 9.5 54.2 Abu Dhabi Islamic Bank NA NA NA 0.0 NA NA Sahara Petrochemical Co NA NA NA 140.2 46.2 47.9 United Wire Factories Co NA NA NA 7.7 0.3 (23.8) Saudi Paper Manufacturing Co NA NA NA 4.7 NA NA Filing & Packing Materials NA NA NA 1.2 (63.5) 18.0 Takaful Emarat Insurance 29.6 10.2 (35.5) 2.0 196.0 (88.2) Source: Bloomberg; Note: All figures are in local currency 3
4. DAILY MARKET UPDATE April 24 , 2018 QSE MAIN FINANCIAL INDICATORS (As on 19th April 2018) Company Ahli Bank Comm. Bank of Qatar Dlala Doha Bank Islamic Holding Al khalij Commercial Bank Rayan National Leasing Qatar 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 Alkhaleej 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 (%) 3.1 2.8 0.0 10.8 3.6 6.7 5.5 4.9 0.0 3.9 7.4 3.9 6.9 4.4 8.3 5.9 6.2 4.4 6.5 0.0 0.0 6.6 8.9 6.5 5.3 0.0 4.4 4.4 4.2 3.8 2.3 7.5 8.2 4.3 0.0 6.1 3.5 4.7 6.9 3.9 6.9 4.1 0.0 8.8 5.3 4.2 0.0 3.3 4.2 6.8 6.7 6.4 4.5 P/B Ratio (x) 1.2 0.9 0.2 0.8 1.2 0.6 2.1 0.5 0.8 1.7 1.2 2.1 0.8 1.6 0.8 1.9 2.0 1.1 1.7 1.2 0.4 3.4 0.6 1.4 0.9 1.0 0.5 2.0 1.4 2.5 1.6 1.2 1.1 1.7 0.6 0.6 1.5 0.7 2.2 1.1 0.8 1.1 0.6 4.7 1.0 1.2 1.8 1.3 1.5 0.9 0.4 0.7 1.4 P/E Ratio (x) 10.2 24.1 19.0 7.8 (M) (‫)س‬ 7.3 13.5 162.8 (M) (‫)س‬ 10.7 9.8 10.8 24.3 11.4 4.4 26.9 14.1 18.2 12.8 (M) (‫)س‬ (M) (‫)س‬ 10.7 4.8 11.5 14.2 45.2 11.5 20.5 19.1 13.8 16.4 10.2 11.0 17.8 20.0 14.6 28.5 13.3 12.3 21.0 8.2 18.9 29.6 8.3 12.9 13.5 (M) (‫)س‬ 19.3 11.1 9.6 12.7 10.8 13.3 EPS (QR) 3.0 1.5 0.6 3.6 (M) (‫)س‬ 1.5 2.7 0.1 (M) (‫)س‬ 10.2 5.5 14.2 0.3 5.8 11.1 2.5 9.7 1.2 9.7 (M) (‫)س‬ (M) (‫)س‬ 6.0 15.2 5.4 0.8 0.5 0.5 5.5 0.9 14.7 2.0 3.9 5.0 2.4 0.6 0.8 1.3 3.5 4.1 1.7 4.4 0.6 0.2 1.7 1.2 6.1 (M) (‫)س‬ 1.5 3.7 1.5 4.1 2.1 3.0 BV/Share (QR) 25.2 42.1 48.6 34.9 24.0 17.5 17.6 20.1 7.7 64.7 45.0 73.4 8.8 40.1 64.5 35.6 69.0 21.1 71.1 4.7 12.9 19.0 116.2 44.7 12.7 19.8 10.5 56.6 11.6 81.7 21.4 34.4 48.0 25.0 19.3 20.8 25.1 70.8 23.4 32.4 48.6 11.4 12.8 3.0 14.7 72.2 5.3 23.7 27.9 15.7 118.3 32.8 27.6 Stock Price (QR) 31.2 35.9 11.2 27.8 28.0 11.2 36.5 10.2 6.1 108.5 54.0 153.5 7.2 48.5 68.2 137.0 22.6 123.7 5.8 5.6 64.1 73.0 11.3 20.7 5.6 112.5 16.5 202.0 33.3 39.9 54.8 11.5 12.3 37.8 46.8 50.9 36.3 12.1 7.2 14.2 83.0 9.3 40.9 14.7 52.0 - 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 االستهالكية‬ ‫أعمال‬ ‫الخليج الدولية‬ ‫ا س ت ثمار ال قاب ضة‬ ‫صناعات قطر‬ ‫مسيعيد‬ ‫كهرباء وماء‬ ‫المستثمرين‬ ‫التحويلية‬ ‫االسمنت‬ ‫الصناعات‬ ‫الخليج‬ ‫الدوحة‬ ‫قطر‬ ‫العامة‬ ‫االسالمية‬ ‫التأمين‬ ‫بروة‬ ‫إزدان القابضة‬ ‫مزايا قطر‬ ‫المتحدة للتنمية‬ ‫العقارات‬ ‫كيوتل‬ ‫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