GCC Daily Market Update - 28 June

Transcription

1. June 28 , 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) 3,900.1 31,438.3 12,008.2 7,258.3 13,186.1 6,047.3 2,529.3 26,871.3 22,229.5 3,379.2 53,161.3 (11.6) (62.4) (97.6) 49.5 67.9 (26.0) (24.8) 38.2 510.5 29.4 433.3 (0.3) (0.2) (0.8) 0.7 0.5 (0.4) (1.0) 1.4 2.4 0.9 0.8 (4.9) (4.2) (4.3) (3.6) (8.0) (5.8) (1.5) (2.1) 4.4 6.2 (4.0) (18.2) (13.5) (26.4) (1.7) (17.0) (15.5) 36.2 (6.7) (5.0) (7.2) . (8.7) 12,155.3 11,427.3 9,267.6 3,217.5 7,331.8 4,116.9 1,810.8 746.5 5,001.3 25.4 (85.8) 29.3 15.6 2.8 1.8 (5.5) 8.9 (6.0) 0.2 (0.7) 0.3 0.5 0.0 0.0 (0.3) 1.2 (0.1) (5.3) (10.5) (6.3) (5.6) (6.1) (0.3) (5.1) (8.8) (4.1) 4.6 1.3 9.2 0.7 4.1 (0.3) 0.8 0.9 (22.5) 115.1 109.6 6.5 1,820.9 3.8 2.0 1.9 0.3 (5.6) 0.0 1.7 1.8 4.5 (0.3) 0.5 (6.3) (4.4) (20.2) (1.2) (12.0) 48.0 45.7 74.3 (0.4) (15.2) Global US stocks closed lower on Monday, with few catalysts to sway investor sentiment as they approach the half-way point of a year in which the equity markets have been slammed by heightened inflation worries and tightening Fed policy. The DJIA fell 0.2%, the S&P 500 lost 0.3%, and the Nasdaq 100 dropped 0.8%. European shares on Monday jumped to their highest level in two weeks, underpinned by miners and oil stocks, as an easing of COVID-19 restrictions in China boosted commodity prices. The continent-wide STOXX 600 index was up 0.5%. In Asia, Japan’s Nikkei rose 1.4% for a third straight session on Monday, lifted by heavyweight technology stocks, after a surge in Wall Street at the end of last week. China stocks rose for a third consecutive session on Monday, with tourism and consumer sectors leading gains. GCC Most Gulf markets extended gains on Monday with the Saudi Arabia's benchmark index fell 0.7% in a choppy trade. Dubai's index gained 0.5%, led by a 2.7% rise in Emirates NBD. In Abu Dhabi, stocks added 0.3%, supported by a 3.6% jump in Alpha Dhabi Holding as its unit signed an MoU with a Libyan firm to develop a strategic long-term partnership and collaborate in renewable energy sector in Libya. Qatar The Qatari index added 0.2% with Qatar Gas Transport rising more than 3% after its cabinet approved increasing the percentage of non-Qatari investors' ownership up to 100% of the co's capital. Out of the 44 traded stocks, 22 advanced and 20 declined and 2 remained unchanged. Total traded volume in the market was lower than the previous trading session. The Transportations index advanced 1.8% and the Telecoms index increased by 1.1% while the Insurance index lower 1.8% Source: Refinitiv Eikon QATAR MARKET OVERVIEW Dividend Value Traded Yield (%) (USD mn) Qatar DSM Index P/E (x) P/B (x) Qatar All Share 14.4 1.5 3.6 147.1 DSM 20 14.4 1.5 3.7 131.7 Saudi Arabia (TASI) 18.3 2.3 2.8 1,685.5 UAE (ADX) 20.0 2.5 2.1 359.4 UAE (DFM) 13.1 1.1 0.0 43.1 Kuwait (KSE) 11.8 1.6 2.9 168.4 Oman (MSM) 10.7 0.7 5.2 5.1 Source: Refinitiv Eikon Bahrain (BAX) 6.9 1.0 4.5 0.9 QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation GCC Fundamentals Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers INMA HOLDING DOHA INS CO AAMAL HOLDING QA ELEC & WATE QA GAS TRANSPO Top Losers QA GEN INS REI QLM LIFE QATAR OMAN INV QAT GER MED DE ALKHALEEJ GROU 5.8 2.1 1.0 17.8 3.8 2.0 5.3 0.7 1.5 3.4 0.2 0.1 0.0 0.6 0.1 Performance YTD YoY (%) (%) 3.9 3.5 3.5 3.4 3.2 (0.2) (10.0) (0.2) (3.4) (0.0) (3.2) (0.0) (2.9) (0.1) (2.6) 47.7 11.1 (3.6) 7.1 14.8 (1.0) 5.3 (11.3) (51.8) (4.7) Source: Refinitiv Eikon; Note: Prices are in local currency. 15.4 9.1 11.1 7.1 26.3 (5.7) 8.4 (23.2) (33.8) (23.8) Vol. (‘000) P/E TTM 430.5 100.0 1,872.6 823.7 7,682.0 29.4 12.9 21.2 13.2 14.8 48.7 34.9 2,485.5 3,730.1 444.2 16.5 17.2 90.4 NA 22.6 16,000 15,000 14,000 13,000 12,000 11,000 10,000 31-Mar 12,155.3 600.0 400.0 200.0 0.0 14-Apr 28-Apr 12-May 26-May Index Volume (mn) 9-Jun 23-Jun Index Value Closing Level 5,188.0 8,474.1 4,415.3 2,637.5 1,749.8 1,155.9 4,063.7 1D Change (%) 0.1 0.8 0.8 (1.8) 0.3 1.1 1.8 Source: Refinitiv Eikon Qatar Trading Summary Buy (%) Sell (%) Qatari Individuals 34.6 31.8 Qatari Institutions 16.7 28.9 Qatari – Total 51.3 60.7 Foreign Individuals 15.6 15.8 Foreign Institutions 33.2 48.7 23.5 39.3 Foreign – Total Source: Qatar Exchange 1
2. June 28 , 2022 GLOBAL NEWS  The US Supreme Court rejected another Bayer AG bid to dismiss litigation alleging that its Roundup weedkiller causes cancer as the German pharmaceutical and chemical giant tries to avoid potentially billions of dollars in damages. (Source: Reuters)  Lockheed Martin Corp won a USD 2.3bn contract to build at least 120 H-60M Black Hawks as the US military continues its search for a nextgeneration helicopter, the Pentagon said. (Source: Reuters)  The Group of Seven rich democracies will commit to a new package of coordinated actions meant toraise pressure on Russia over its war in Ukraine and will finalize plans for a price cap on Russian oil, a senior US official said. (Source: Reuters)  EU countries' energy ministers will discuss options for how they could jointly curb gas demand, as the bloc grapples with cuts to Russian supplies and prepares for possible further supply shocks. (Source: Reuters)  Toshiba Corp's shareholders are expected to endorse all proposed directors, including two from its hedge fund investors, on Tuesday in a move that could mark a crossroads for the 146-year-old Japanese conglomerate and hasten a potential buyout. (Source: Reuters)  Profits at China's industrial firms shrank at a slower pace in May following a sharp fall in April, as activity in major manufacturing hubs resumed, but COVID-19 restrictions still weighed on factory production and squeezed factory margins. (Source: Reuters)  China Evergrande Group said a winding-up petition was filed against it by investment holding firm Top Shine Global Ltd in Hong Kong for not fulfilling a financial obligation of HKD 862.5mn (USD 109.91mn). (Source: Reuters) GCC NEWS  The Saudi VC Company has announced investment in the Venture Debt Fund, which is run by the Partners for Growth Company, which is one of the directors of international funds and known for its expertise in offering venture debt tools for startups, and SMEs. (Source: Zawya)  Mouwasat Medical Services Company has signed a contract with Tareg Al Jaafari Contracting Company on 23 June to construct Mouwasat Hospital project in Al Sawari neighbourhood. A total of SAR 295mn has been pumped under the joint agreement to carry out the architectural, construction, electrical, as well as health and mechanical works for the development. (Source: Zawya)  Alfanar Global Development, a major player in the Middle East region for energy, water, oil and gas and social infrastructure sectors, has signed agreements worth SAR 2bn (USD 532mn) with the Arab Organization for Industrialization and Benya Holding Group. (Source: Trade Arabia)  Arab National Bank’s board has proposed a dividend payout of SAR 750mn (USD 200mn) for the H1-22 following strong earnings in the Q1-22. (Source: Arab News)  The Saudi Grains Organization has completed the procedures for the third tender of imported wheat for 2022 from Europe, North and South America and Australia. (Source: Arab News)  Oman’s actual budget deficit by the end of 2021 was OMR 1.223bn (USD 3.18bn), a 45.4% decline compared to the estimated deficit of OMR 2.240bn as a result of the improvement in oil prices and the rise in oil revenue. (Source: Trade Arabia)  Oman's Public Authority for Special Economic Zones and Free Zones have signed a land development agreement with Green Hydrogen and Chemicals Company to develop phase one of the green hydrogen and ammonia project in the Special Economic Zone at Duqm. (Source: Zawya)  The GCC Interconnection Authority aims to connect with Europe in the future once the grids to Egypt and Jordan are linked, said the authority’s CEO Ahmed Ali Al-Ebrahim. (Source: Arab News)  Oman’s Public Authority for Special Economic Zones and Free Zones has awarded the first phase of construction works of the National Road No. 32, located with the industrial zone. (Source: Trade Arabia)  UAE-based energy firm Dana Gas today confirmed it has temporarily suspended its KM 250 expansion project after two small rockets landed in Khor Mor Block in Kurdistan, Iraq. (Source: Zawya)  The listing of regular and Islamic banks shares in Boursa Kuwait, the stock exchange, is an act that stimulated and balanced the market, said a number of experts on Monday. The capital of the banking sector is worth over KHD 4.5bn (USD 16.2bn). (Source: Arab Times)  Hydrogen plays a crucial role in UAE’s energy transition as the country aims to achieve the target of net-zero by 2050, according to Energy Minister Suhail Mohamed Al Mazrouei. (Source: Arab News)  DEWA has announced the launch of an Automatic Smart Grid Restoration System, the first of its kind in the MENA region, to increase the control, management, and monitoring of its power network. (Source: Emirates News Agency)  Dubai business park operator TECOM Group said it had raised AED 1.7bn (USD 463mn) from investors via its IPO. (Source: Reuters)  The Saudi Export-Import Bank approved loans worth SAR 1.7bn (USD 450mn) in 2021, with 51% of the total financing given to SMEs, according to the bank’s CEO, Saad Alkhalb. (Source: Arab News)  Saudi Arabia's overall merchandise exports increased 98% in April 2022 compared to April 2021 and the value amounted to SAR 137.1bn (USD 36.53bn), up from SAR 69.3bn, according to official data. (Source: Trade Arabia)  The Saudi central bank placed about SAR 50bn (USD 13bn) as time deposits with commercial lenders, Bloomberg reported. (Source: Zawya)  The number of SMEs in Saudi Arabia registered a 15% growth to 752,600 in the Q1-22 from 650,550 in the corresponding period last year, revealed the SMEs General Authority, also known as Monsha’at, in its latest report. (Source: Arab News)  The Ministry of Finance and representatives of Apple have set the guidelines for launching the Apple Pay service, which is soon expected to be introduced in Kuwait, during a meeting last week between the two sides, reports Al-Qabas daily. (Source: Arab Times) QATAR NEWS  Qatari private sector exports recorded a significant growth of 46% during the Q1-22 with the total volume of exports reaching QAR 7.7bn, compared to QAR 5.3bn during the same period last year, further indicating the country’s economic recovery, the Qatar Chamber said in its latest Quarterly Report and Certificates of Origin. (Source: The Peninsula)  Islamic finance assets in Qatar grew by 20% to QAR 629bn (USD 172bn) in 2021, with Islamic banks accounting for 87% of these assets, followed by Islamic Sukuk (11.6%), Takaful insurance companies (0.8%), and the remaining share distributed to investment funds and other Islamic financial institutions, according to the Islamic Finance Report 2021. (Source: The Peninsula)  The Qatar Financial Center said that it has pledged USD 100mn to fund a new platform aimed at recovering distressed assets. (Source: Reuters)  QatarEnergy has joined the Aiming for Zero Methane Emissions Initiative, an industry-led initiative that aims to reach near zero methane emissions from operated oil and gas assets by 2030. (Source: The Peninsula) 2
3. June 28 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0613 USD/QAR 3.6400 135.4300 EUR/QAR 3.8631 USD/JPY GBP/USD 1.2294 JPY/QAR 0.0269 USD/CHF 0.9558 GBP/QAR 4.4750 USD/CAD 1.2878 CHF/QAR 3.8083 AUD/USD 0.6923 CAD/QAR 2.8265 NZD/USD 0.6300 AUD/QAR 2.5200 USD/INR 77.9200 INR/QAR 0.0467 USD/TRY 16.5229 TRY/QAR 0.2203 USD/ZAR 15.8563 ZAR/QAR 0.2296 USD/BRL 5.2366 BRL/QAR 0.6951 FX Commentary The USD struggled on Monday as softening inflation expectations prompted a review of the prospects for aggressive interest rate hikes, but volatile markets supported a broader decline. The US Dollar index fell 0.1% at 103.97. Meanwhile, the EUR/USD went up 0.2% at 1.0583 as the ECB will soon raise interest rates for the first time in more than a decade. The GBP/USD went down 0.2% at 1.2264. The USD/JPY traded up 0.3% at 135.43. The USD/CNY ended flat at 6.6899. Commodity currencies came under pressure on Monday as data showed profits at China's industrial firms shrank again, albeit at a slower pace, in May after a sharp fall in April. The USD/CAD traded 0.2% lower at 1.2878. The risk sensitive AUD/USD went down 0.3% at 0.6923 while the NZD/USD traded down 0.2% at 0.6300. 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 1.92 1.91 2.03 2.93 3.56 EIBOR 1.64 1.71 1.78 1.77 3.34 BMIBOR 2.33 2.57 3.29 3.50 4.74 KIBOR 1.00 1.50 1.81 2.13 2.75 LIBOR EURIBOR 1 Month 3 Month 1 Year Source: Refinitiv Eikon 3.42% 2.0% 0.0% 6.0% 4.0% 3.69% 3.40% 3.08% 3.19% 2.0% 4.68% 3.80% 3.87% 3.23% 3.17% 3.29% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 3.27% 3.25% 3.24% 1.43% 1.21% 0.96% 3.05% 1.77% 0.33% 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 Source: Refinitiv Eikon 30 Yrs Spread 6M Change 5 Years CDS Spread 6M Change US 17.5 5.9 Turkey 787.6 UK 13.1 2.4 Brazil 283.0 77.9 Germany 13.0 3.9 Egypt 918.2 438.5 France Abu Dhabi 232.9 24.0 4.0 62.2 17.6 Italy 137.0 47.3 Bahrain 308.0 12.1 Greece 164.4 53.1 Dubai 124.7 32.6 Russia 12,840.2 12,713.1 Qatar 62.2 16.7 Japan 20.1 0.5 Saudi Arabia 64.7 12.2 Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event 19:30 US Consumer Confidence Period Survey Prior Jun 100.9 106.4 11:30 Germany 12:15 France GfK Consumer Sentiment Jul -27.7 -26.0 Consumer Confidence Jun 84 18:30 86 US CaseShiller 20 MoM SA Apr 1.8% 2.4% 18:30 US CaseShiller 20 YoY 05:20 Japan Retail Sales YoY 13:30 Italy 13:30 Apr 21.0% 21.2% May 3.3% 2.9% Industrial Sales MoM SA Apr NA 2.4% Italy Industrial Sales YoY WDA Apr NA 21.4% 18:00 US Adv Goods Trade Balance May NA -106.70bn 18:00 US Wholesale Inventories Adv May NA 2.2% 18:00 US Retail Inventories Ex-Auto Adv May NA 1.7% 18:25 US Redbook YoY 25 Jun, w/e NA 12.8% 18:30 US Monthly Home Price MoM Apr NA 1.5% 18:30 US Monthly Home Price YoY Apr NA 19.0% 18:30 US Monthly Home Price Index Apr NA 386.5 Source: Refinitiv Eikon 3
4. QSE MAIN FINANCIAL INDICATORS (as on 27th 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 (%) 2.75 2.62 2.33 2.85 3.66 3.54 4.10 0.00 0.00 0.00 1.39 0.86 2.90 3.44 0.00 0.00 3.62 1.64 4.23 0.00 3.47 5.23 3.28 3.95 3.43 5.91 6.33 0.00 4.50 4.78 0.00 4.38 0.00 4.91 5.28 4.16 5.63 0.00 2.19 4.76 4.14 3.73 3.89 5.29 0.00 0.00 3.90 3.90 3.78 3.87 3.66 2.41 3.17 3.31 2.73 P/B Ratio (x) 1.91 2.13 1.17 0.58 1.33 1.93 1.24 1.42 0.58 1.19 0.80 2.21 1.63 3.06 5.34 0.61 1.96 1.62 2.04 1.95 1.81 2.38 1.35 1.89 0.96 1.13 2.64 1.76 1.52 0.86 1.11 1.96 1.76 1.47 1.86 0.74 0.90 0.33 1.64 2.79 3.44 0.75 0.46 0.63 0.88 0.92 0.58 1.05 1.51 1.23 0.60 1.18 2.24 1.15 2.17 P/E Ratio (x) 14.76 14.99 13.01 11.25 14.39 17.65 18.86 6.45 0.00 11.35 90.36 29.39 15.02 25.89 143.67 17.95 26.09 86.79 18.16 0.00 15.38 18.08 22.95 19.80 11.02 14.34 10.25 56.91 13.17 21.19 25.77 16.38 56.91 9.56 11.83 14.01 12.87 16.47 22.58 14.28 17.23 14.71 13.93 11.17 432.28 0.00 13.89 48.04 18.22 32.94 11.83 10.64 14.84 13.31 18.77 June 28, 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) 20.00 21.97 6.88 2.63 3.90 10.60 4.15 1.20 0.79 1.50 0.72 5.83 18.00 1.53 0.83 6.90 3.66 17.97 2.83 8.65 17.20 1.62 3.50 5.08 15.80 1.84 17.78 1.05 1.98 2.51 1.84 1.63 2.40 2.13 1.98 3.43 8.40 5.32 1.42 3.31 1.10 0.79 7.69 1.59 8.20 4.15 3.79 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