GCC Daily Market Update - 24 July

Transcription

1. July 24 , 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) 3,961.6 31,899.3 12,396.5 7,276.4 13,253.7 6,216.8 2,516.6 27,914.7 20,609.1 3,270.0 56,072.2 (37.3) (137.6) (222.9) 5.9 7.0 15.7 5.2 111.7 34.5 (2.0) 390.3 (0.9) (0.4) (1.8) 0.1 0.1 0.3 0.2 0.4 0.2 (0.1) 0.7 3.6 2.6 7.0 1.5 3.4 4.8 3.0 7.6 (5.7) (3.5) 6.0 (16.9) (12.2) (24.0) (1.5) (16.6) (13.1) 35.5 (3.0) (11.9) (10.2) . (3.7) 12,709.1 11,988.0 9,662.2 3,257.0 7,670.7 4,291.4 1,873.3 781.5 5,069.5 171.5 123.6 64.6 0.9 127.9 10.6 26.8 0.1 (42.0) 1.4 1.0 0.7 0.0 1.7 0.2 1.5 0.0 (0.8) 4.2 4.0 3.4 1.7 3.5 4.1 1.8 4.4 4.6 9.3 6.3 13.8 1.9 8.9 3.9 4.2 5.6 (21.5) 103.2 94.7 8.3 1,727.1 3.3 (0.7) (1.6) 0.4 14.4 0.0 (0.6) (1.7) 4.6 0.8 1.4 (10.1) (10.5) 53.0 (4.3) (9.9) 32.7 25.9 122.5 (5.5) (24.8) Source: Refinitiv Eikon QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All Share 15.1 1.5 3.5 164.4 DSM 20 15.2 1.6 3.5 148.3 Saudi Arabia (TASI) 19.2 2.7 2.9 1,510.4 UAE (ADX) 20.7 2.6 2.0 359.4 UAE (DFM) 13.1 1.1 0.0 57.2 Kuwait (KSE) 12.8 1.7 2.7 307.6 Oman (MSM) 11.6 0.8 4.9 11.2 Bahrain (BAX) 7.1 1.0 4.4 2.1 GCC Fundamentals Dividend Value Traded Yield (%) (USD mn) Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers ZAD HOLDING QNB MESAIEED PETRO QA ISLAMIC BK QA COMM BK Top Losers GULF INTR SERV QATAR ALUMINIU QA ISLAMIC INS QATAR OMAN INV INMA HOLDING 18.0 20.4 2.7 25.0 6.9 2.0 1.6 8.3 0.7 5.7 0.6 0.6 0.1 0.8 0.2 (0.1) (0.1) (0.3) (0.0) (0.2) Performance YTD YoY (%) (%) 3.3 3.2 3.1 3.1 2.4 (4.1) (3.6) (3.2) (2.7) (2.7) 13.2 1.1 30.1 36.4 2.4 13.9 (11.8) 3.9 (12.8) 43.8 Source: Refinitiv Eikon; Note: Prices are in local currency. 21.7 14.7 45.1 46.9 28.9 32.6 4.7 0.2 (24.0) 11.8 Vol. (‘000) P/E TTM 1.7 4,753.7 15,546.5 1,927.3 4,539.3 25.9 15.1 17.7 16.5 13.1 14,579.4 33,724.2 0.5 1,723.7 773.8 25.4 9.3 14.1 NA 28.6 Global US stocks ended lower on Friday as disappointing earnings from Snap spooked investors and shares in social media and ad tech firms dropped, offsetting gains from card issuer American Express following an upbeat forecast. The DJIA fell 0.4%, the S&P 500 lost 0.9% and the Nasdaq 100 dropped 1.8%. The ECB raised rates by 50 BPS after weeks of indicating a 25 BPS hike was in the offing. The pan-European STOXX 600 index closed 0.3% as biggest weekly percentage gain in two months, in part due to easing concerns over a potential energy crisis. In Asia, Japan’s Nikkei index closed 0.4% higher on Friday, led by growth stocks which tracked Wall Street’s overnight gains and shipping firms which rose on their robust earnings. China stocks closed almost flat on Friday, as COVID-19 flare-ups and property-sector risks raised worries about growth prospects in the world’s second-largest economy. GCC Stock markets in the Gulf ended higher on Thursday, extending their recovery from a recent selloff triggered by the prospect of aggressive global interest rate hikes to tame inflation. Saudi Arabia's benchmark index closed 1% higher. Dubai index gained 1.4% led by a 3.8% jump in Dubai Islamic Bank and a 2% increase in Emirates NBD Bank. Abu Dhabi, the index advanced 2.1%, buoyed by a 3.3% leap in the UAE biggest lender First Abu Dhabi Bank. Qatar The Qatari benchmark index rose to 1.4% on Thursday with the help by Zad Holding (3.3%) and QNB (3.2%) were the top gainers of the day. Out of the 44 traded stocks, 20 advanced and 23 declined and 1 remained unchanged. Total traded volume in the market was lower than the previous trading session. The Banks and Financial Services index advanced 2.3% and Real Estate index increased 1.3% while the Insurance index lower by 1.2%. Qatar DSM Index 16,000 15,000 14,000 13,000 12,000 11,000 10,000 26-Apr 12,709.1 600.0 400.0 200.0 0.0 10-May 24-May 7-Jun Index Volume (mn) 21-Jun 5-Jul 19-Jul Index Value Source: Refinitiv Eikon QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation Closing Level 5,380.5 8,475.9 4,497.9 2,576.2 1,846.1 1,282.7 4,645.2 1D Change (%) 2.3 0.9 0.2 (1.6) 1.3 0.2 0.6 Buy (%) Sell (%) 35.0 42.8 Source: Refinitiv Eikon Qatar Trading Summary Qatari Individuals Qatari Institutions 14.5 14.8 Qatari – Total 49.5 57.6 Foreign Individuals 13.0 14.6 Foreign Institutions 37.5 27.8 Foreign – Total 50.5 42.4 Source: Qatar Exchange 1
2. July 24 , 2022 GLOBAL NEWS  Elon Musk's SpaceX on Friday broke its record for the number of rockets launched in a calendar year, topping last year's slate of 31 missions amid a whirlwind campaign to launch its own internet satellites into orbit. (Source: Reuters)  T-Mobile US Inc agreed on Friday to pay USD 350mn and spend an additional USD 150mn to upgrade data security to settle litigation over a cyberattack last year that compromised information belonging to an estimated 76.6mn people. (Source: Reuters)  Porsche Chief Executive Oliver Blume will take over from Herbert Diess as CEO of Volkswagen, the carmaker said on Friday, after a supervisory board vote forced Diess to step down from his four-year tenure following a series of missteps over strategy and communication style. (Source: Reuters)  Orange and MasMovil have signed a binding agreement to combine operations in Spain in a deal valuing the merged entity at close to USD 19bn, the two telecoms firms said in a statement on Saturday. (Source: Reuters)  Major Japanese travel agency H.I.S. Co. aims to sell its shares in the Dutch-themed Huis Ten Bosch seaside resort in Sasebo, Nagasaki Prefecture, in southwestern Japan. (Source: Mainichi)  Mobile service operator KDDI Corp. said Friday it plans to compensate millions of customers affected by a major service disruption that lasted several days earlier this month. (Source: Mainichi)  China Evergrande Group said that its CEO and finance head have resigned after a preliminary probe found their involvement in diverting loans secured by its publicly listed unit to the group. (Source: Reuters)  China's homegrown C919 narrow-body jet, designed to challenge the Airbus-Boeing duopoly, is nearing certification as its test planes completed all of the test flight tasks, the company said on Saturday. (Source: Reuters) GCC NEWS  The UAE economy is expected to grow at its fastest rate in years, due to improved oil production and a commitment to expand its manufacturing sector. The country's overall real GDP increased by 8.2% YoY during Q1-22. (Source: Zawya)  DEWA's R&D Centre develops national capabilities through 'Al Baheth' programmed. This enhances Dubai's position as a global hub for research and development in solar power, smart grids, energy and water efficiency and capacity building. (Source: Zawya)  The Dubai real estate market recorded 379 sales transactions worth AED 1.09bn, as well as 96 mortgage deals worth AED 319.78mn and 18 gift deals worth AED 35.4mn. (Source: Zawya)  The Rochester Institute of Technology (RIT) Dubai has joined forces with One Moto, a sustainable vehicle company, to establish the UAE's first Smart Mobility and Innovation Centre. Three innovative electric motorcycles will be developed at the centre. (Source: Zawya)  DU increased its net profits by 26.20% YoY to AED 240mn in the Q222 from AED 303mn. In Q2-22, the company's revenue was AED 2.85bn, up 9.90% from AED 3.13bn the previous year. (Source: Zawya)  Arada has reported a 30% increase in the value of properties sold in the H1-22, as buyer interest in Sharjah and the wider UAE property markets grows. The results come against the continuing strong performance of the Sharjah property market. (Source: Zawya)  Abu Dhabi's real estate market continued to expand, fueled by investor optimism, with 7,474 property transactions totaling more than AED 22.51bn. According to the department’s H1-22 report, all types of land, buildings, and real estate were purchased, sold, and mortgaged. (Source: Zawya)  NMDC, based in Abu Dhabi, outperformed its H1-21 net profits by 74%, reaching USD 110mn in the H1-22. NMDC's revenues also reached USD 965.5mn, and its assets totaled USD 3.63bn, representing an 8.5% and 3% increase over the same period last year. (Source: Arab News)  ACC, a leading developer of lifestyle shopping malls in Saudi Arabia, has signed a lease agreement for the development of Jawharat AlKhobar, a shopping mall that will cost between SAR1bn and SAR1.3bn. (Source: Zawya)  ENEC has completed the HFT on Unit 4 successfully. The Barakah Plant is expected to contribute the most to cutting Abu Dhabi Emirate's power and water sector carbon emissions by half and generating more than 85% of Abu Dhabi's clean electricity. (Source: Zawya)  Kingdom Holding Co., which is controlled by Saudi Arabia's Prince Alwaleed bin Talal, has invested slightly more than SAR 1bn (USD 229mn) in M&G, one of Europe's largest insurance and asset management firms. (Source: Zawya)  Saudi Azm for Communication and Information Technology Company has been awarded a SAR 8.13mn operation and maintenance project. The project contract on July 18, 2022, with a 36-month duration period. (Source: Zawya)  Saudi Arabia's Ministry of Industry and Mineral Resources has launched a programmed to transition 4,000 factories from relying on unskilled labor to automated manufacturing. (Source: Arab News)  The Kempinski Hotel Muscat has signed an MoU with the Association for Children with Disabilities in Oman. The agreement was signed by the General Manager of the hotel. (Source: Times of Oman)  According to the most recent sources, Bahrain is ranked fourth among Arab League members and 66th globally, with the passports of 199 world nations ranked by the destinations their holders can enter without a pre-approved visa. (Source: News of Bahrain)  The Ministry of Education is waiting for the approval of its new budget KWD 2.6bn, which has been submitted to its finance counterpart, reports Al-Anba daily quoting sources. (Source: Arab Times)  The National Bank of Kuwait reports a net profit of USD 772mn for the Q1. Net profit for the 3-month period ended Q2-22 was USD 395.3mn, a 58.6% increase over the comparable period in 2021. (Source: Zawya) QATAR NEWS  Qatar Airways placed an order for 25 Boeing 737 MAX 10 following negotiations at the Farnborough Airshow, finalizing a deal that had been in the works for months and bringing the total number of orders for the single aisle jet this week to 125. (Source: Zawya)  As the economy expands in the run-up to the FIFA World Cup 2022, Qatar's Islamic finance institutions are poised for growth in 2022. QIFI is well-positioned to overcome any remaining obstacles. (Source: The Peninsula)  The popularity of contactless payments is expected to grow further, and Qatar will continue to play an important role in the region's position as a fintech and digital commerce leader. (Source: The Peninsula)  Qatar Fund for Development supported the Lebanese Ministry of Public Health by covering the fuel costs for several hospitals and health facilities in Lebanon. (Source: The Peninsula)  Qatar has made strides in digital transformation by developing its ICT sector and strengthening human resource capacity. As the infrastructure works related to the FIFA World Cup Qatar 2022 ends, the country is looking to build on this momentum and attract talent in high-potential areas. (Source: The Peninsula) 2
3. July 24 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0240 USD/QAR 3.6400 136.0500 EUR/QAR 3.7274 USD/JPY GBP/USD 1.2032 JPY/QAR 0.0268 USD/CHF 0.9613 GBP/QAR 4.3796 USD/CAD 1.2914 CHF/QAR 3.7865 AUD/USD 0.6925 CAD/QAR 2.8186 NZD/USD 0.6252 AUD/QAR 2.5207 USD/INR 79.3300 INR/QAR 0.0459 USD/TRY 17.7173 TRY/QAR 0.2054 USD/ZAR 16.8304 ZAR/QAR 0.2163 USD/BRL 5.4968 BRL/QAR 0.6622 FX Commentary USD dipped on Friday after data showed US business activity shrank for the first time in nearly two years in July as a services slowdown outweighed manufacturing growth. The US Dollar fell 0.2% at 106.62. European counterparts the BoE is tasked with the tricky objective of taming surging prices while avoiding a harsh economic downturn. The EUR/USD went down 0.9% at 1.0210. Britain's businesses grew at their slowest pace in 17 months in July and inflation pressures eased. The GBP/USD went up 0.1% at 1.2002. The USD/JPY traded down 1% at 136.05, after the BoJ maintained its ultra-easy monetary policy. The USD/CNY down 0.23% at 6.7500. The USD/CAD traded 0.4% higher at 1.2914. The risk sensitive AUD/USD went down 0.1% at 0.6925. The NZD/USD went up 0.02% at 0.6252. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration Overnight 1 Week 1.56 0.08 2.25 2.77 3.81 (0.65) (0.42) (0.17) 0.20 1.20 QAIBOR 2.25 2.25 2.35 2.45 2.75 SAIBOR 1.88 1.91 1.99 2.91 3.67 EIBOR 1.65 1.74 2.30 2.51 3.42 LIBOR EURIBOR 1 Month 3 Month 1 Year BMIBOR 2.33 2.58 3.36 4.02 5.08 KIBOR 1.06 1.56 1.81 2.13 2.69 Source: Refinitiv Eikon 3.17% 2.0% 0.0% Qatar vs US Treasuries Yields 6.0% 3.72% 4.0% 3.54% 2.98% 2.0% 2.93% 4.62% 3.62% 3.81% 2.86% 2.77% 2.98% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 3 Yrs Qatar Source: Refinitiv Eikon, Investing.com US Swap Rates 4.0% SOVEREIGN YIELD CURVES & CDS SPREAD 5 Years CDS 2.82% 0.81% 2.80% 2.78% 1.28% 1.05% 2.71% 1.64% 0.29% 2 Yrs 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs Source: Refinitiv Eikon Spread 6M Change 5 Years CDS Spread 6M Change US 20.4 8.7 Turkey 832.7 UK 17.5 6.7 Brazil 291.8 69.2 Germany 17.0 7.9 Egypt 1,374.9 777.4 Abu Dhabi France 299.1 27.5 8.4 70.2 22.6 Italy 166.3 71.2 Bahrain 341.1 45.4 Greece 176.8 59.3 Dubai 141.5 49.4 Russia 12,840.2 12,594.3 Qatar 72.2 23.6 Japan 30.2 12.6 Saudi Arabia 73.2 20.6 Source: Refinitiv Eikon, worldgovernmentbonds.com GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) Emirates Integrated Telecom 3136.9 9.9 0.3 302.8 26.2 -2.7 Aldrees Petroleum and Tran 2987.6 37.5 7.5 NA NA NA Masraf Al Rayan 1362.7 25.8 9.7 519.7 -8.6 2.7 Emirates Driving Company Medicare Group 80.5 37.6 5.6 47.3 23.8 -37.4 128.1 18.2 9.1 18.3 86.5 6.2 0.9 15.5 18.9 0.0 NA NA 111.1 21.7 -15.6 68.7 25.0 -28.8 Gulf Franchising Holding Co National Bank of Umm Al Qa Source: Refinitiv Eikon; Note: All figures are in local currency 3
4. QSE MAIN FINANCIAL INDICATORS (as on 21st July 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 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 (%) 2.69 2.30 2.32 2.97 3.57 3.22 4.30 0.00 0.00 0.00 1.41 0.88 2.79 3.44 0.00 0.00 3.60 1.64 4.29 0.00 3.66 5.07 3.08 3.95 3.37 6.18 6.25 0.00 4.41 4.30 0.00 4.04 0.00 5.04 5.18 4.22 5.71 0.00 2.41 4.81 4.16 3.82 3.69 4.85 0.00 0.00 3.69 3.44 3.61 3.48 2.93 2.30 2.92 2.90 2.73 P/B Ratio (x) 1.86 2.34 1.18 0.56 1.37 2.12 1.47 1.37 0.65 1.18 0.81 2.15 1.69 3.06 4.96 0.62 1.95 1.62 2.01 1.96 1.71 2.45 1.42 1.89 0.97 1.08 2.68 1.72 1.50 0.96 1.09 2.12 1.72 1.44 1.89 0.73 0.88 0.31 1.49 2.76 3.42 0.73 0.49 0.69 0.81 0.94 0.61 1.20 1.58 1.37 0.75 1.23 2.43 1.31 2.17 July 24, 2022 P/E Ratio (x) 15.15 16.51 13.07 10.79 14.75 19.36 18.00 6.23 1076.25 11.31 134.98 28.61 15.66 25.89 133.65 18.23 23.59 86.55 17.90 0.00 14.57 18.66 28.24 19.91 11.20 13.71 10.37 55.55 14.59 23.57 25.41 17.75 55.55 9.32 12.17 13.82 12.68 15.47 20.46 14.12 17.13 14.37 14.69 12.18 401.18 0.00 14.67 54.47 19.08 36.55 14.79 11.14 16.06 15.21 18.77 EPS (QR) 1.32 1.42 0.50 0.23 0.27 0.59 0.22 0.20 -0.04 0.07 0.02 0.11 0.72 0.69 0.01 0.05 0.28 0.03 0.98 -0.37 0.61 0.98 0.07 0.34 0.29 0.34 1.34 0.03 1.33 0.05 0.03 0.15 0.03 0.15 0.36 0.16 0.15 0.11 0.16 0.57 0.30 0.20 0.09 0.29 0.00 -0.21 0.04 0.01 0.08 0.19 0.64 0.38 0.24 0.32 0.31 BV/Share (QR) 10.71 10.47 5.95 4.60 2.89 5.75 3.20 0.72 1.35 1.74 0.93 2.57 4.93 5.56 0.28 1.36 3.66 2.24 9.09 1.54 4.81 7.75 1.19 3.50 3.57 4.67 6.53 1.03 10.74 1.25 1.75 1.36 1.03 1.14 2.58 3.40 2.38 5.86 2.07 2.83 1.77 3.02 3.11 5.36 1.22 0.85 1.86 6.63 1.09 3.47 12.96 3.53 1.58 3.52 2.71 Stock Price (QR) 20.42 25.00 6.91 2.52 4.00 11.63 3.96 1.16 0.86 1.49 0.71 5.67 18.00 1.43 0.84 6.95 3.65 17.71 2.84 8.19 17.75 1.72 3.56 4.86 15.99 1.79 18.14 1.16 1.96 2.72 1.79 1.59 2.37 2.10 1.86 3.11 8.31 5.29 1.49 3.61 1.02 0.81 8.72 1.66 10.25 4.34 4.10 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: Refinitiv Eikon; 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