GCC Daily Market Update - 26 June

Transcription

1. June 26 , 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) 3,911.7 31,500.7 12,105.8 7,208.8 13,118.1 6,073.4 2,554.1 26,492.0 21,719.1 3,349.7 52,728.0 116.0 823.3 408.2 188.4 205.5 190.0 10.9 320.7 445.2 29.6 462.3 3.1 2.7 3.5 2.7 1.6 3.2 0.4 1.2 2.1 0.9 0.9 (4.6) (4.0) (3.5) (4.3) (8.5) (5.4) (0.6) (3.5) 2.0 5.3 (4.8) (17.9) (13.3) (25.8) (2.4) (17.4) (15.1) 37.5 (8.0) (7.2) (8.0) . (9.5) 11,753.4 11,310.7 9,238.3 3,201.9 7,240.2 4,115.1 1,816.4 737.6 4,998.0 (189.7) (9.2) (6.1) 3.0 23.1 (21.6) (12.3) (0.0) 147.2 (1.6) (0.1) (0.1) 0.1 0.3 (0.5) (0.7) (0.0) 3.0 (8.4) (11.4) (6.6) (6.0) (7.3) (0.4) (4.8) (9.9) (4.2) 1.1 0.3 8.8 0.2 2.8 (0.3) 1.1 (0.3) (22.6) 113.1 107.6 6.2 1,826.5 3.8 3.1 3.4 (0.0) 0.8 0.0 2.8 3.2 (0.3) 0.0 0.0 (7.9) (6.1) (23.6) (0.9) (12.5) 45.4 43.1 66.8 (0.1) (15.6) Source: Refinitiv Eikon QATAR MARKET OVERVIEW Qatar DSM Index P/E (x) P/B (x) 3 1.4 3.7 183.9 DSM 20 14.0 1.5 3.8 161.4 Saudi Arabia (TASI) 18.0 2.3 2.8 1,414.6 UAE (ADX) 20.0 2.5 2.1 359.4 UAE (DFM) 13.1 1.1 0.0 71.1 Kuwait (KSE) 11.7 1.6 2.9 183.0 Oman (MSM) 10.7 0.7 5.2 4.8 Source: Refinitiv Eikon Bahrain (BAX) 7.0 1.0 4.5 1.5 QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation GCC Fundamentals Qatar All Share Dividend Value Traded Yield (%) (USD mn) Global Wall Street's main indexes soared on Friday in a broad rally as signs of slowing economic growth and a recent pullback in commodity prices tempered expectations for the Federal Reserve's rate-hike plans. The DJIA rose 2.7%, the S&P 500 gained 3.1% and the Nasdaq 100 added 3.5%. European stocks jumped 2.6% on Friday, pushing them into positive territory for the week as investors started to scale back central bank tightening bets, spurring inflows into risky assets. In Asia, Japan’s Nikkei index rose 1.2%, with tech stocks leading the rise after sharp overnight gains on Wall Street, while sentiment was also aided by the domestic central bank’s loose monetary policy. China stocks closed up to its highest level since early March on Friday, gaining for a fourth straight week, as the country stepped up effort to stimulate a COVID-hit economy with the infusion of fresh capital into the banking system to keep liquidity stable. GCC Saudi Arabia's benchmark index eased 0.1% in a choppy trade, with Sahara International Petrochemical Company losing 3.2%. Stock markets in the UAE were mixed on Friday, as hopes that declines in copper and other commodities could put a brake on runaway inflation eased economic growth concerns. Dubai index added 0.1%, helped by a 1.4% rise in Emaar Properties. Abu Dhabi index eased 0.1%, with the First Abu Dhabi Bank losing 0.3%. Qatar The Qatari index lost 1.6%, with Estithmar Holding 6.1% lower on Thursday. Qatar First Bank (+7.2%) and Doha Insurance (+3%) were the top gainers of the day. Out of the 45 traded stocks, 10 advanced, 35 declined. Total traded volume in the market was higher than the previous trading session. The Transportation index declined 4.2% and the Industrials index increased by 4.2%. Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers QATAR FIRST BA DOHA INS CO MANNAI CORP AAMAL HOLDING DOHA BK LTD Top Losers ESTITHMAR HLD SALAM INTL INV AL MEERA CONSM QA GAS TRANSPO BALADNA COMPAN 1.2 2.1 8.1 1.0 2.6 1.7 0.7 16.7 3.6 1.5 0.1 0.1 0.2 0.0 0.0 (0.1) (0.0) (1.0) (0.2) (0.1) 7.2 3.0 2.5 2.4 1.3 (6.1) (6.0) (5.5) (5.2) (5.0) Performance YTD YoY (%) (%) (26.7) 8.5 70.6 (12.1) (18.3) 35.9 (10.1) (14.6) 9.2 1.2 Source: Refinitiv Eikon; Note: Prices are in local currency. (31.3) 3.1 119.0 (4.0) (3.6) 62.1 (25.7) (12.7) 20.0 (4.3) Vol. (‘000) P/E TTM 7,946.8 0.1 145.0 1,786.0 2,773.6 6.2 12.6 14.4 19.3 11.2 14,208.8 7,675.1 844.4 5,841.1 19,247.9 51.7 15.9 17.6 14.1 20.8 16,000 15,000 14,000 13,000 12,000 11,000 10,000 28-Mar 600.0 11,753.4 400.0 200.0 0.0 11-Apr 25-Apr 9-May Index Volume (mn) 23-May 6-Jun 20-Jun Index Value Closing Level 5,110.9 8,070.8 4,115.3 2,638.4 1,671.3 1,129.7 3,905.8 1D Change (%) (0.4) (2.5) (3.1) (0.5) (1.3) (1.7) (4.2) Buy (%) Sell (%) 33.2 30.2 Source: Refinitiv Eikon Qatar Trading Summary Qatari Individuals Qatari Institutions 16.3 32.0 Qatari – Total 49.5 62.2 Foreign Individuals 13.8 13.0 Foreign Institutions 36.8 24.7 Foreign – Total 50.5 37.8 Source: Qatar Exchange 1
2. June 26 , 2022 GLOBAL NEWS  Ratings agency Moody’s on Friday affirmed US’ rating at “Aaa”, citing the country’s emergence from the pandemic shock with “exceptional” economic strength. (Source: Reuters)  US President Joe Biden rarely mentions electric car maker Tesla Inc in public. But privately his administration has leaned on the company to help craft a new policy to allow EVs to benefit from the nation's lucrative renewable fuel subsidies. (Source: Reuters)  Monte dei Paschi di Siena said it would tap taxpayers and investors for EUR 2.5bn (USD 2.6bn) in cash to fund its latest turnaround efforts as the Italian state-owned bank seeks to triple its net profit in the next three years. (Source: Reuters)  Japan's news outlets have legal grounds to jointly negotiate contracts on the use of their articles on sites run by IT giants, including Yahoo Japan Corp., the antitrust watchdog said. (Source: Mainichi)  Germany's BMW said that production has formally begun at a new plant in China with an investment of YPY 15bn (USD 2.24bn) as the carmaker accelerates EV production. (Source: Reuters)  Toyota is recalling 2,700 bZ4X crossover vehicles globally for wheel bolts that could become loose, in a major setback for the Japanese automaker's ambitions to roll out electric cars. (Source: Mainichi)  Sumitomo Mitsui Financial Group Inc. said it will acquire a roughly 10% stake in Japanese internet financial giant SBI Holdings Inc. in a deal worth JPY 79.6bn (USD 585mn) to strengthen its online brokerage service. (Source: Mainichi) Finance said in a statement that under the new fintech strategy the number of firms is expected to increase from 82 to 230 by 2025. (Source: Arab News)  Saudi Al Moammar Information Systems Co. has received approval from its shareholders to increase capital by 20% through the issuance of bonus shares. According to a bourse filing, MIS’ board had earlier recommended boosting capital from SAR 250mn (USD 67mn) to SAR 300mn to enhance the company’s resources. (Source: Arab News)  Saudi Arabian Refineries Co. has signed two non-binding agreements with UK-based Christof Global Impact for the development of renewable energy projects in the Kingdom aimed at reducing carbon emissions. (Source: Arab News)  Fawaz Alhokair Group’s investments in Egypt exceed SAR 1.8bn (USD 480mn), the CEO of its subsidiary FAS Real Estate Co., Turki Alhokair told Al-Arabiya TV. (Source: Arab News)  Aramco, the world’s largest oil and gas giant, tops the Forbes Middle East Top 100 Listed Companies for 2022 for the third consecutive year with USD 400.5bn in sales and a market value of USD 2.3tn. (Source: Trade Arabia)  Global credit rating agency Moody’s Investors Service has affirmed Saudi Reinsurance Co.’s rating at A3 on its Insurance Financial Strength Rating, with a stable outlook. (Source: Arab News)  Saudi Arabia’s Kingdom Holding Co. has concluded a multisector investment program valued at SAR 12.8bn (USD 3.4bn). According to the filing, the program took place over a period of two years starting from the second quarter of 2020 until the ongoing quarter. (Source: Arab News)  Chinese battery giant CATL will start mass production next year of its latest generation product, with greater efficiency that lets electric cars drive longer distances on each charge, the company said. (Source: Reuters)  Retal Urban Development Co. will list its shares on Saudi Arabia’s main market TASI early next week, after raising SAR 1.44bn (USD 384mn) in an IPO. (Source: Arab News)  Turkey’s first publicly owned floating storage and regasification unit has transmitted around 2.1bn cu mts of gas to the national grid system, a statement from the Energy and Natural Resources Ministry said. (Source: Daily Sabah)  Saudi Networkers Services Co. has posted a 28% drop in profit ahead of its IPO. Its profits fell from SAR 39.1mn (USD 10.4mn) to SAR 28.3mn in 2021, despite marginal revenue growth of 1.1% to SAR 473mn, Argaam reported. (Source: Arab News) GCC NEWS  The UAE is the most competitive country in the Arab world, according to the 2022 IMD World Competitiveness Ranking. (Source: Zawya)  Etihad Rail has signed a AED 1.2bn (USD 327mn) agreement with Spain’s CAF Group for designing, manufacturing, supplying and maintaining passenger trains. (Source: Zawya)  The OPEC Fund has allocated USD 100mn support for transportation and SMEs. The funding is expected to benefit public and private sector projects promoting sustainable development globally. (Source: Zawya)  UAE investment and holding company ADQ will allocate more than AED 100mn (USD 367.3mn) for (R&D in the technology sector. (Source: Zawya)  Dubai's economy has posted a 6.2% growth in its GDP in 2021. The emirate's GDP also rose 5.9% to AED 102bn (USD 27.8bn) in Q1-22, supported by strategic initiatives and economic stimulus programmes. (Source: Zawya)  China, India, and South Korea remain Saudi Arabia’s main trading partners, as the Kingdom's overall merchandise exports increased by 98% to SAR 137bn (USD 36.51bn) in April, up from SAR 69.3bn in April 2021, according to the General Authority for Statistics. (Source: Arab News)  Saudi Arabia's non-oil exports increased by 36.6% in April, YoY, as the country continues to diversify its economy to achieve the goals outlined in Vision 2030, the GASTAT said in a report. (Source: Arab News)  Saudi Arabia plans to increase the number of fintech companies in the Kingdom by threefold under a new national strategy. The Ministry of  Kingdom Holding Co., controlled by Saudi Arabia's Prince Alwaleed bin Talal, has stated that it has invested SAR 12.8bn (USD 3.4bn) in new sectors over the past two years. (Source: Zawya)  Bahrain’s Infracorp, the social infrastructure group of GFH Financial Group, has posted a net profit of USD 6.2mn on a revenue of USD 17.4mn during the Q1-22. (Source: Trade Arabia)  The National Bank of Bahrain has been honoured with the Best Retail Bank Award at the Mena Banking Excellence Awards 2022 instituted by MEED. (Source: Trade Arabia) QATAR NEWS  Qetaifan Projects, fully owned by Katara Hospitality and the real estate developer of Qetaifan Island North signed an MoU with JMJ Properties for the construction of a QAR 600mn mixed-use development at QIN. (Source: The Peninsula)  The IPA Qatar announced the signing of two MoU with Green Boom and PricewaterhouseCoopers which will enable these leading international companies to deepen their presence in Qatar. (Source: The Peninsula)  Rastec Real Estate Division is diversifying into a new era in the real estate sector to own and operate its own building with 62 fully furnished executive bachelor suites and commercial space at Umm Salal. (Source: The Peninsula)  Cityscape Qatar and networking event has produced an increase in international interest amid a raft of new project launches, unit sales and growing demand. (Source: The Peninsula) 2
3. June 26 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0584 USD/QAR 3.6400 135.1700 EUR/QAR 3.8526 USD/JPY GBP/USD 1.2292 JPY/QAR 0.0269 USD/CHF 0.9578 GBP/QAR 4.4743 USD/CAD 1.2893 CHF/QAR 3.8004 AUD/USD 0.6948 CAD/QAR 2.8232 NZD/USD 0.6314 AUD/QAR 2.5291 USD/INR 77.7300 INR/QAR 0.0468 USD/TRY 16.8860 TRY/QAR 0.2156 USD/ZAR 15.7990 ZAR/QAR 0.2304 USD/BRL 5.2417 BRL/QAR 0.6944 FX Commentary The USD slipped on Friday as traders dialed down bets on where interest rates may peak and brought forward their views on the timing of rate cuts to counter a possible recession. The US Dollar index fell 0.2% at 104.18. The EUR/USD went up 0.3% at 1.0554. Meanwhile, the GBP/USD remained firm, edging slightly higher by 0.02% to 1.2262, following data on Friday that showed UK retail sales volumes declined by 0.5% in May, but were above analyst estimates. The USD/JPY traded up 0.2% at 135.17. The USD/CNY went down 0.2% at 6.6878. The USD/CAD traded 0.8% lower at 1.2893. The risk sensitive AUD/USD went up 0.9% at 0.6948 while the NZD/USD traded up 0.6% at 0.6314. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration Overnight 1 Week 1.58 0.08 1.63 2.23 3.54 (0.65) (0.57) (0.55) (0.22) 0.98 QAIBOR 0.70 0.75 1.00 1.15 1.85 SAIBOR 1.99 1.96 2.14 3.29 3.56 EIBOR 1.64 1.71 1.75 1.88 3.24 BMIBOR 2.33 2.57 3.28 3.50 4.75 KIBOR 1.00 1.50 1.81 2.13 2.75 LIBOR EURIBOR 1 Month 3 Month 1 Year Source: Refinitiv Eikon 3.38% 2.0% 0.0% 3.18% 1.21% 3.20% 1.44% 3.01% 1.77% 0.32% Source: Refinitiv Eikon 6.0% 4.0% 3.59% 3.42% 3.06% 3.15% 2.0% 4.69% 3.76% 3.90% 3.19% 3.14% 3.26% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 3.21% 0.94% 2 Yrs Qatar vs US Treasuries Yields 3 Yrs Qatar Source: Refinitiv Eikon, Investing.com US Swap Rates 4.0% SOVEREIGN YIELD CURVES & CDS SPREAD 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs Spread 6M Change 5 Years CDS Spread 6M Change US 17.5 5.8 Turkey 803.2 UK 13.3 2.7 Brazil 287.9 82.0 Germany 13.0 3.9 Egypt 918.2 438.5 France Abu Dhabi 248.5 25.0 5.0 62.2 17.6 Italy 132.0 42.3 Bahrain 308.0 12.1 Greece 160.9 49.6 Dubai 124.7 32.6 Russia 12,840.2 12,713.1 Qatar 62.2 16.7 Japan 20.3 0.7 Saudi Arabia 64.7 12.2 Source: Refinitiv Eikon, worldgovernmentbonds.com 3
4. QSE MAIN FINANCIAL INDICATORS (as on 23rd June 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 (%) 2.78 2.60 2.41 2.87 3.66 3.64 4.23 0.00 0.00 0.00 1.46 0.98 2.94 3.64 0.00 0.00 3.64 1.64 4.42 0.00 3.70 5.38 3.62 4.14 3.74 6.12 6.87 0.00 4.71 5.25 0.00 4.58 0.00 5.33 5.66 4.22 5.76 0.00 2.34 4.88 3.96 3.73 4.10 5.45 0.00 0.00 4.08 3.95 3.98 3.96 3.74 2.49 3.33 3.44 2.73 P/B Ratio (x) 1.88 2.15 1.13 0.58 1.33 1.88 1.21 1.36 0.55 1.10 0.76 1.94 1.60 2.89 5.11 0.54 1.95 1.62 1.95 1.90 1.69 2.31 1.22 1.80 0.88 1.09 2.44 1.60 1.46 0.79 1.03 1.87 1.60 1.36 1.73 0.73 0.87 0.37 1.53 2.73 3.59 0.75 0.44 0.61 0.81 0.86 0.55 1.04 1.43 1.20 0.59 1.14 2.13 1.10 2.17 P/E Ratio (x) 14.58 15.06 12.56 11.18 14.39 17.16 18.29 6.18 0.00 10.53 85.86 25.73 14.80 24.45 137.58 15.90 25.99 86.79 17.39 0.00 14.41 17.58 20.78 18.84 10.10 13.85 9.44 51.73 12.60 19.33 23.96 15.66 51.73 8.82 11.03 13.82 12.58 18.29 21.06 13.94 18.01 14.72 13.21 10.84 398.43 0.00 13.28 47.47 17.29 32.19 11.56 10.29 14.10 12.79 18.77 June 26, 2022 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) 19.76 22.08 6.64 2.61 3.90 10.31 4.02 1.15 0.74 1.39 0.69 5.10 17.00 1.47 0.74 6.87 3.66 17.20 2.75 8.10 16.73 1.46 3.21 4.90 14.55 1.67 17.00 0.95 1.84 2.40 1.67 1.50 2.37 2.08 2.20 3.20 8.20 5.56 1.34 3.21 1.01 0.74 7.60 1.51 8.01 4.01 3.60 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