GCC Daily Market Update - 25 April

Transcription

1. DAILY MARKET UPDATE April 25 , 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) 2,634.6 24,024.1 6,509.0 7,425.4 12,550.8 5,444.2 110,058.6 22,278.1 30,636.2 3,128.9 34,616.6 (35.7) (424.6) (139.8) 26.5 (21.6) 5.6 (873.9) 190.1 381.8 60.9 165.9 (1.3) (1.7) (2.1) 0.4 (0.2) 0.1 (0.8) 0.9 1.3 2.0 0.5 (0.2) (0.3) (1.1) 5.2 3.8 5.4 (4.2) 3.8 1.8 (1.3) 5.0 (1.5) (2.8) 1.8 (3.4) (2.8) 2.5 (4.6) (2.1) 2.4 (5.4) 1.6 9,091.3 8,315.4 4,689.2 3,034.3 4,789.2 4,762.0 1,282.4 1,679.1 3,600.7 (66.2) (19.9) (4.3) (27.7) 4.1 6.0 (16.2) (10.0) (35.9) (0.7) (0.2) (0.1) (0.9) 0.1 0.1 (1.2) (0.6) (1.0) 6.0 5.6 2.3 (2.4) (3.5) (0.2) (2.7) 1.6 (0.4) 6.7 15.1 6.6 (10.0) NA (6.6) (3.7) 5.4 (1.2) 73.9 67.7 2.8 1,331.4 314.2 (0.9) (0.9) 0.0 8.9 3.2 (1.1) (1.4) 1.5 0.7 1.0 5.1 4.3 1.8 0.7 3.6 10.5 12.1 (5.8) 1.7 (5.0) Global Equity markets across the Atlantic ended mostly lower yesterday, as persistent increase in the US treasury yields which touched the psychological 3.0% mark, weighed on the investor sentiment. In US, losses in Industrials, Materials and Technology sector stocks weighed on the overall market, while weakness in Alphabet shares impacted the Nasdaq. The Stoxx Europe 600 index inched marginally lower, as the German Ifo business climate data trailed expectations. Rising US bond yields weighed on the stocks that borrow funds from the US markets. The FTSE 100 index continued its upward trajectory for the sixth day in a row, on the back of gains in Oil and Gas stocks. The Japanese benchmark climbed 0.9%, supported by sharp drop of JPY against USD. The Chinese benchmark advanced 2.0%, after the government announced to introduce deeper economic and market reforms. GCC Most GCC markets ended lower yesterday. The Saudi index fell 0.2%. Dallah Healthcare dropped 3.7% after its Q1-18 net profit fell 32.0% YoY. Arabian Cement tumbled 8.3% after reporting an unexpected Q1-18 net loss of SAR 6.1mn. In Kuwait, Kuwaiti Education Company HumanSoft dropped 3.8% as the shareholders’ meeting refrained to approve a stock dividend of 70 shares for every 100 shares. In Dubai, DAMAC Properties continued its downtrend after lowering its dividend payout. Qatar The QE index inched 0.7% lower yesterday, reversing its previous trend, as Qatari and foreign institutional investors remained net sellers during yesterday’s trading session. Trade turnover and volumes were on the decline in the market, where Industrials, Banking and Telecom sectors together accounted for about 76.0% of the total volume. Out of the 45 listed stocks, 43 exchanged hands of which, 25 declined, 15 advanced, and 3 remained unchanged. Source: Bloomberg QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All share 13.5 1.3 4.4 77.0 DSM 20 13.2 1.4 4.8 45.8 9,000 Saudi Arabia (TASI) 18.3 1.8 3.2 1,613.7 8,500 UAE (ADX) 12.2 1.3 5.1 26.2 UAE (DFM) 10.5 1.1 6.0 56.8 Kuwait (KSE) 14.5 1.2 4.8 41.1 Oman (MSM) 11.9 1.0 5.1 6.9 Source: Bloomberg Bahrain (BAX) 8.7 0.8 6.4 0.9 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 Aamal Co Qatar Fuel Qsc Doha Insurance Co Qatar & Oman Invest Qatar Navigation Top Losers Gulf Int’l Services Qatar Insurance Co Islamic Holding Group Ezdan Holding Group Widam Food Co Close Price 11.3 140.0 12.6 7.3 53.0 0.7 8.0 0.3 0.1 1.0 6.5 6.1 2.0 2.0 1.9 30.0 37.2 (10.4) (8.2) (5.3) (18.2) 4.9 (26.0) (23.8) (24.8) 563.9 213.8 1.5 45.8 39.5 14.2 14.4 14.7 24.5 12.8 20.0 36.3 27.6 11.3 63.4 (1.3) (1.4) (0.9) (0.3) (1.7) (5.9) (3.7) (3.0) (2.6) (2.5) 13.0 (19.7) (26.3) (6.3) 1.4 (22.2) (40.9) (55.9) (26.3) (2.4) 496.2 257.4 10.9 213.5 218.0 43.7 31.9 NA 17.5 10.2 Source: Bloomberg; Note: Prices are in local currency. Qatar DSM Index 9,500 20.0 9,091.3 10.0 8,000 28/Jan 0.0 11/Feb 25/Feb 11/Mar Index Volume (mn) 25/Mar 8/Apr 22/Apr Index Value Closing Level 3,094.3 5,922.6 3,090.2 3,048.5 1,944.5 1,138.4 1,720.1 1D Change (%) (1.0) 3.0 (0.3) (2.8) (1.5) (0.5) 0.2 Buy (%) 46.2 21.5 67.7 11.3 21.0 32.3 Sell (%) 38.7 28.8 67.5 11.2 21.3 32.5 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 25 , 2018 GLOBAL NEWS  US new home sales increased 4.0% to a seasonally adjusted annual rate of 694,000 units in March-18 led by increase sales in the western region of the nation. (Source: US Census bureau)  S&P’s US national home price index rose to 6.3% YoY in February-18 from 6.1% YoY in January-18, led by continuous rise in home prices in Seattle, Las Vegas and San Francisco. (Source: Spice indices)   UK’s public sector net borrowings decreased by 9.0% YoY to GBP 42.6bn as at the end of March-18. The office for Budget Responsibility expects the public sector to borrow GBP 37.1bn over the next one year. (Source: ONS) China is expected to introduce an additional reduction to its reserve requirement ratio, while the money supply (M2) growth to rebound above 9.0% in 2018 according to Market News International. (Source: Reuters)    Abu Dhabi based developer Cristal Group has signed an agreement with Dubai based property developer FAM holding to open the fourstar resort on Al Marjan Island in 2020 which would be named as Al Mahra Resort by Cristal group. (Source: Arabian Business)  Sharjah Investment and Development Authority (Shurooq) has entered into a management agreement with Dubai-based Emaar Hospitality Group to operate a lifestyle boutique hotel in Al Qasba. (Source: Arabian Business)  Saudi Arabia is delaying the IPO its stock exchange, Tadawul to 2019 from the earlier 2018, as it expects that a potential upgrade by MSCI could increase its value. (Source: Arabian Business)  Saudi Arabia completed the issuance of a USD 1.3bn new Islamic sukuk sale in three tranches maturing in five, seven and ten years. The proceeds of which will be used to finance its budget deficit. (Source: Arabian Business)  Oman based Bank Sohar reported an increase of 48.6% YoY in its net income to OMR 8.9mn for Q1-18, resulting from the bank’s strategy of offering innovative financial solutions. (Source: Gulf base)  Oman based commodity trading company Oman Trading International has entered into an agreement to export 1.0mn tons of liquefied natural gas to Bangladesh for a period of ten years. (Source: Reuters)  Bahrain witnesses an 11.4% YoY increase in the number of tourist arrivals to 3.1mn in Q1-18 while the number of days that tourists spend in the country has increased to 3.1 nights from 2.8 a year ago, according to the Executive Director of Bahrain Tourism and Exhibition Authority. (Source: Alarabiya)  Kuwait’s newly-opened Al Kout Mall will see opening of 11 stores by Lebanon based premier lifestyle retail company Azadea Group which will mark its presence in 76 stores across the country, covering 32,000 sq. mm of total space. (Source: Trade Arabia) Turkey’s President is expecting 40mn tourists to visit the country in 2018 as compared to 32.4mn in 2017. (Source: Reuters) GCC NEWS   Dubai Free Zones Council will be implementing new e-commerce regulations including expanding air cargo and increasing operational efficiencies with the aim of attract greater FDI in Dubai’s e-commerce sector. (Source: Arabian Business) Dubai based industrial company, Emirates Global Aluminium has completed the construction work of the calcination process facility at the Al Taweelah alumina refinery which took more than 2.4mn hours of work. (Source: Trade Arabia) Dubai International Academic City (DIAC) is planning to build Myriad Dubai which will be Dubai’s first urban styled fully integrated student housing community by 2020, which would be located at the vicinity of universities in DIAC. (Source: Trade Arabia)  Dubai based shopping mall retailer, Emaar Malls has received shareholder approval for cash dividends of AED 1.3bn (USD 353.9mn) which is 10.0% of the total share capital for FY-17. (Source: Trade Arabia)  Dubai based Noor bank has listed its second USD 500.0mn sukuk on Nasdaq Dubai which was oversubscribed 2.1 times, following similar listing in 2016. (Source: Arabian Business)  Dubai based developer MAG Lifestyle Development has entered into an agreement with loyalty program of Etihad Airways, Etihad Guest to offer a 5.0% discount on selected properties to its members. (Source: QATAR NEWS  (Source: Gulf times)  Qatari and Kuwaiti investors’ delegation is expected to visit the Philippines to explore investment opportunities in the export manufacturing and halal sectors. (Source: Gulf times)  Qatar Petroleum’s high level delegation discussed ways to strengthen and expand energy cooperation with Poland’s Energy Minister especially in the field of LNG sector. (Source: Gulf times)  Qatar National Bank has launched its latest product ‘QNB-Simplify ecommerce’ to support the government’s initiative of Digital Transformation of SME program (DTSME). (Source: Gulf times)  Qatari marine company Nakilat has reported a 13.0% YoY increase in net profit to QAR 217.0mn in Q1-18, driven by efficient operations and growth in international portfolio through recent acquisition. (Source: Gulf Arabian Business)  Dubai based Emirates Holidays has entered into an agreement with Dubai Health Tourism Council to offer world-class spas, wellness centers and health facilities in Dubai to health-conscious travelers. (Source: Arabian Business)  Supreme Committee for Delivery & Legacy has committed tenders worth QAR 700.0mn for the 2022 FIFA World Cup exclusively for the SMEs to involve them in the country’s tournament preparations. Dubai based financial services provider, Shuaa Capital has acquired Integrated Securities and Integrated Capital after regulatory approval which will grow its AUM to about AED 4.5bn (USD 1.3bn). (Source: Arabian times) Business)   Abu Dhabi based A.Hak Industrial Services has changed it brand identity to Intero Integrity Services and positioned itself as an inspection and industrial service provider to the oil, gas refining and petrochemical industries. (Source: Trade Arabia) Barwa Real Estate Group’s net profit decreased by 15.4% YoY to QAR 405.0mn driven by decrease in items such as property valuation gains and other income which was partly offset by increase in its net rental income. (Source: Peninsula Qatar)   Abu Dhabi based state owned oil company Abu Dhabi National Oil Company has announced the establishment of a new trading unit to manage non-speculative trading. (Source: Trade Arabia) Qatar based service group Gulf International Services’ net profit increased to QAR 9.0mn led by a 3.0% increase in the revenues to QAR 628.0mn. (Source: Gulf times)   Abu Dhabi based Etisalat Group’s net profit increased by 0.5% YoY to AED 2.1bn (USD 570.0mn) in Q1-18 led by transformation efforts in line with industry dynamics, innovation and successful partnerships, the company’s CEO stated. (Source: Arabian Business) Qatar Insurance Company reported a net profit of QAR 230.0mn in Q118 which represent almost 55.0% of the total profits in FY-17 led by efficient operations management. (Source: Gulf times) 2
3. DAILY MARKET UPDATE April 25 , 2018 FX RATES Currencies Value Currencies Value EUR/USD 1.2263 USD/QAR 3.6415 108.8200 EUR/QAR 4.4656 USD/JPY GBP/USD 1.4008 JPY/QAR 0.0335 USD/CHF 0.9789 GBP/QAR 5.1010 USD/CAD 1.2833 CHF/QAR 3.7200 AUD/USD 0.7604 CAD/QAR 2.8376 NZD/USD 0.7120 AUD/QAR 2.7690 USD/INR 65.8850 INR/QAR 0.0553 USD/TRY 4.0861 TRY/QAR 0.8912 USD/ZAR 12.3262 ZAR/QAR 0.2954 USD/BRL 3.4724 BRL/QAR 1.0487 FX Commentary The USD erased its gains against its peer currencies yesterday, with the dollar index settling near its three month high levels at 90.763. Persistent increase in the US bond yields supported the greenback for most part of the day. The EUR edged slightly lower against USD, amid rising worries that the European Central Bank policymakers may signal a cautious stance at the policy meeting scheduled later during the week. Moreover, dismal German business climate data also weighed on the shared currency. The AUD came under pressure following the release of discouraging Australian inflation data, suggesting that the RBA would need to stick to its accommodative stance for a foreseeable future. The GBP steadied against the USD, after the UK posted an unexpected budget surplus in March-18 Source: Bloomberg INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 1.70 1.74 1.90 2.36 2.77 (0.44) (0.38) (0.37) (0.33) (0.19) 2.27 2.33 2.46 2.65 3.03 4.0% SAIBOR NA 1.91 2.06 2.36 2.75 2.0% EIBOR 1.39 1.62 1.98 2.38 3.13 BMIBOR 1.63 1.90 2.43 2.78 3.28 NA NA 1.81 2.00 2.50 LIBOR EURIBOR QAIBOR KIBOR 1 Month 3 Month 1 Year Qatar vs US Treasuries Yields 6.0% 3.32% 2.49% 3.96% 4.22% 4.42% 2.83% 2.96% 3.00% 3.18% 7 Yrs 10 Yrs US 30 Yrs 5.01% 0.0% 2 Yrs 5 Yrs Qatar Source: Bloomberg Source: Bloomberg US Swap Rates 5 Years CDS 4.0% US 28.5 0.2 Turkey 195.8 UK 18.4 (8.5) Brazil 172.9 (1.6) Germany 11.3 (2.3) Egypt 277.4 (70.1) France 17.9 (5.2) Abu Dhabi 62.7 0.7 Italy 87.6 (46.7) Bahrain 289.1 42.6 Greece 334.9 (190.4) Dubai 111.0 (15.4) Russia 131.1 (0.7) Qatar 88.0 (15.5) Japan 25.9 (9.9) Saudi Arabia 87.8 2.9 2.75% 3.03% 2.98% 2.94% 2.0% 1.60% 2.32% 2.15% 1.99% 3.05% 2.57% 0.0% 2 Yrs 5 Yrs 7 Yrs Current 10 Yrs Last Year 30 Yrs Spreads 6M Change 5 Years CDS Spread 6M Change 12.4 Source: Bloomberg Source: Bloomberg ECONOMIC CALENDAR Time Country Event 09:45 France Consumer Confidence Period Survey Apr 100 14:00 US 16:00 Russia 100 MBA Mortgage Applications Apr-20th - 4.90% CPI WoW Apr-23rd - 0.10% - 1.00% - ¥797.6b 16:00 Russia CPI Weekly YTD Apr-23rd 02:50 Japan Japan Buying Foreign Bonds Apr-20th Prior Source: Bloomberg GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) Qatar Gas Transport NA NA NA 217.0 13.6 (9.5) Widam Food Co NA NA NA 26.7 16.2 (4.5) 715.4 (4.3) (0.5) (8.2) NA (91.5) 13,104.0 5.2 (2.8) 2,112.0 1.0 7.3 National Industrialization NA NA NA 361.4 249.7 12.0 Dallah Healthcare Co NA NA NA 58.1 (31.7) (8.0) National Mobile Telecom. 174.6 3.3 (0.2) 9.2 (29.1) 91.7 Saudia Dairy & Foodstuff Co 379.0 (15.3) (13.1) 49.9 (31.8) (26.4) NA NA NA 47.7 (9.4) (0.3) Salam International Invest Emirates Telecom Group Co Herfy Food Services Co Source: Bloomberg; Note: All figures are in local currency 3
4. DAILY MARKET UPDATE April 25 , 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