GCC Daily Market Update - 29 May

Transcription

1. May 29 , 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) 4,158.2 33,213.0 12,681.4 7,585.5 14,462.2 6,515.8 2,438.8 26,781.7 20,697.4 3,130.2 54,884.7 100.4 575.8 404.6 20.5 230.9 105.2 (12.0) 176.8 581.2 7.1 632.1 2.5 1.8 3.3 0.3 1.6 1.6 (0.5) 0.7 2.9 0.2 1.2 0.6 0.7 (1.3) 0.5 2.6 (0.3) 0.3 0.6 (4.6) 2.5 (4.9) (12.8) (8.6) (22.3) 2.7 (9.0) (8.9) 31.3 (12.8) (14.0) (14.2) (6.9) 12,828.5 12,530.3 9,689.0 3,297.0 7,632.0 4,106.7 1,894.1 798.6 5,126.4 (30.1) (58.6) 145.1 0.9 48.3 (14.9) 5.2 (2.7) 103.4 (0.2) (0.5) 1.5 0.0 0.6 (0.4) 0.3 (0.3) 2.0 (5.6) (8.8) (5.3) (11.4) (8.7) (1.2) (7.9) (10.5) (4.1) 10.3 11.1 12.4 3.1 8.4 (0.6) 5.4 7.9 (20.6) 119.4 115.1 8.7 1,851.3 4.3 2.0 1.0 (0.2) 3.9 0.0 1.7 0.9 (2.0) 0.2 1.2 11.0 9.4 16.7 (0.6) 1.1 53.5 53.0 134.0 1.3 (3.4) Source: Refinitiv Eikon QATAR MARKET OVERVIEW Qatar DSM Index P/E (x) P/B (x) Qatar All Share 15.2 1.5 3.4 151.8 DSM 20 15.2 1.6 3.5 130.2 Saudi Arabia (TASI) 20.1 2.6 2.5 1,893.6 UAE (ADX) 20.6 2.6 2.0 359.4 UAE (DFM) 13.1 1.1 0.0 84.2 Kuwait (KSE) 12.4 1.7 2.7 311.6 Oman (MSM) 10.6 0.7 5.2 3.8 Source: Refinitiv Eikon Bahrain (BAX) 7.3 1.0 4.3 2.6 QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation GCC Fundamentals Dividend Value Traded Yield (%) (USD mn) Global Global markets enjoyed a broad-based rally on Friday after data showed that US consumer spending rose in April and the uptick in inflation slowed, two signs the world’s largest economy could be on track to grow this quarter. On Wall Street, the DJIA rose 1.8%, the S&P 500 gained 2.5%, and the Nasdaq 100 added 3.3%. European stocks closed higher as fears over monetary policy tightening subsided slightly. The pan-European provisionally closed up by 1.5%, with tech stocks adding 3.2% to lead gains as most sectors and major bourses entered positive territory. In Asia Japan’s Nikkei index snapped three straight sessions of losses on Friday, ended 0.7% higher. China stocks rose, as investors looked ahead to stimulus measures to aid growth, while comments by a US official on China were interpreted by some as positive. Hong Kong stocks jumped nearly 3%, led by tech shares following forecast-beating results from Alibaba Group and Baidu. GCC Saudi Arabia's benchmark index dropped 0.5% on Thursday, with Saudi National Bank losing 1.6%, while Dr Sulaiman Al-Habib Medical Services retreated 1.9%. Stocks in Abu Dhabi rebounded on Friday, closed at 1.6% higher, ahead of its biggest ever IPO of petrochemicals firm Borouge, although the Dubai index ended flat. Qatar The Qatari benchmark index fell 0.2% on Thursday. Qatar Navigation (+2.7%) and Gulf Warehousing (+2.3%) were the top gainers of the day. Out of the 45 traded stocks, 23 advanced, 19 declined and 3 remained unchanged. Total traded volume in the market was slightly higher than the previous trading session. The Transportation index advance 2.1% and the Real Estate index increased by 0.5% while the Banks & Financial Services index lower by 1.2%. Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers QATAR NAVIGATI GULF WAREHOUSI DLALA' BROKERA QA INDUS MANF NAT LEASING CO Top Losers DOHA INS CO QNB ALKHALEEJ GROU QA ISLAMIC BK QLM LIFE 8.5 4.5 1.7 3.1 0.9 2.0 20.5 3.9 24.3 6.0 0.2 0.1 0.0 0.1 0.0 (0.1) (0.5) (0.1) (0.4) (0.1) Performance YTD YoY (%) (%) 2.7 2.3 2.1 2.0 1.7 (2.9) (2.4) (2.0) (1.6) (1.2) Source: Refinitiv Eikon; Note: Prices are in local currency. 10.6 (0.8) 34.9 0.1 (4.6) 2.7 1.5 9.4 32.3 18.4 18.8 (12.0) (3.5) 6.0 (24.3) (0.9) 16.5 (13.1) 40.2 16.3 Vol. (‘000) P/E TTM 937.6 6,640.8 1,138.8 32.6 7,027.3 12.2 11.5 12.6 9.7 NA 19.3 3,499.5 1,289.4 4,178.8 176.4 11.9 15.1 25.9 16.5 19.4 14,800 14,400 14,000 13,600 13,200 12,800 12,400 12,000 11,600 27-Feb 600.0 12,828.5 400.0 200.0 0.0 13-Mar 27-Mar 10-Apr Index Volume (mn) 24-Apr 8-May 22-May Index Value Closing Level 5,497.8 8,642.1 4,720.9 2,678.3 1,804.2 1,104.2 4,002.1 1D Change (%) (1.2) (0.1) 0.5 (0.4) 0.5 (0.4) 2.0 Buy (%) Sell (%) 29.8 24.5 Source: Refinitiv Eikon Qatar Trading Summary Qatari Individuals Qatari Institutions 22.5 0.6 Qatari – Total 52.3 25.1 Foreign Individuals 10.8 10.0 Foreign Institutions 39.5 41.6 Foreign – Total 50.2 51.5 Source: Qatar Exchange 1
2. May 29 , 2022 GLOBAL NEWS  The US Federal Reserve is carrying USD 330bn in unrealized losses on its holdings of US Treasury and mortgage-backed securities as of the end of March, according to newly released financial statements showing the impact of rising interest rates on the market value of the Fed's balance sheet. (Source: Reuters)  Broadcom Inc said it will acquire cloud computing company VMware Inc in a USD 61bn cash-and stock deal, the chipmaker's biggest and boldest bid to diversify its business into enterprise software. (Source: Reuters)  Airbus and Qatar Airways are heading towards a three-month summer trial next year after a UK judge granted the airline a relatively quick timetable while dismissing its procedural claims in a bitter safety and contractual dispute. (Source: Reuters)  German home prices will rise faster this year than thought only three months ago, as a supply shortage outweighs a deepening cost of living crisis and the prospect of higher interest rates. (Source: Reuters)  Japan's net balance of external assets surpassed JPY 400tn (USD 3.2tn) for Q1-21 as the weakness of the yen against major currencies inflated their value, making the country the world's biggest creditor for the 31st consecutive year, the Finance Ministry said. (Source: Mainichi)  BoJ Governor Haruhiko Kuroda said the country's core consumer inflation will likely remain around the central bank's 2% target for 12M unless energy prices drop sharply. (Source: Reuters)  China Evergrande Group is considering repaying offshore public bondholders owed around USD 19 with cash instalments and equity in two of its Hong Kong-listed units, as the world's most indebted developer looks to emerge from its financial woes. (Source: Reuters)  Taiwan authorities raided ten Chinese companies suspected of illegally poaching chip engineers and other tech talent this week, the island's Investigation Bureau said, the latest crackdown on Chinese firms to protect its chip supremacy. (Source: Reuters)  Turkey’s central bank held its benchmark policy rate unchanged for the fifth consecutive month, in line with market expectations, in a move that comes amid expectations of a further rise in inflation. (Source: Daily Sabah) GCC NEWS  The UAE-based healthcare and education investment company Amanat aims to revolutionize education in the Middle East by integrating experiential learning and virtual reality into the curriculum, its CEO told Arab News. (Source: Arab News)  Dubai real estate market recorded 610 sales transactions worth AED 1.72bn and 80 mortgage deals of AED 396.52mn, in addition to 15 gift deals amounting to AED 40.18mn, data released by Dubai's Land Department showed. (Source: Emirates News Agency)  Borouge’s USD 2bn IPO has drawn interest from big investors, including the world’s largest asset manager BlackRock Inc. and Fidelity. The UAE-based firm received bids from the two international funds for the share sale that could value it at USD 20bn at listing, Bloomberg reported. (Source: Arab News)  The net rental income of ENBD REIT, the Shariah-compliant real estate investment trust managed by Emirates NBD Asset Management Ltd., fell by nearly 18% to USD 9.5mn for FY-21. (Source: Zawya)  Saudi Arabia's ACWA Power, Oman's state-owned energy company OQ and US-based Air Products signed a joint development agreement to set up the H2Oman Project in Dhofar to produce green hydrogen. (Source: Zawya)  Aramco, the Saudi Arabian oil giant, could swallow BP and Shell and buy both of them, CEO and Founder of Brand Finance David Haigh said at the World Economic Forum’s annual meeting. (Source: Arab News)  Oil giant Saudi Aramco has approached motor oil and lubricant maker Valvoline Inc to buy its segment that caters to commercial customers, according to sources. (Source: Reuters)  Saudi Power Procurement Co., the sole licensed principal buyer of electricity in Saudi Arabia, received an A1 rating from Moody's Investors Service on May 23. (Source: Arab News)  The Saudi stock exchange has approved the listing of SAR 14.95bn (USD 4bn) worth of government debt instruments submitted by the Ministry of Finance, it said in a statement. The amount will be used to increase the size of three existing issuances to reach SAR 26.4bn, SAR 29.7bn, and SAR 14.3bn, respectively. (Source: Arab News)  Saudi Arabia’s National Debt Management Center has completed arranging local sukuk issuances for the debt principal repayments for 2022, with a funding amount of around SAR 43bn (USD 11bn). (Source: Arab News)  Saudi Reinsurance Co. has received the necessary approval from the Kingdom’s central bank to increase its capital to SAR 1.34bn (USD 356mn). (Source: Arab News)  Growth Avenue Investment Co. has finalized a deal to acquire 40% of the shares in Salis for Trading & Marketing. (Source: Arab News)  Saudi Ataa Educational Co. has received approval from the CMA to increase its capital to SAR 420mn (USD 112mn) for the acquisition of Naba'a Educational Co. (Source: Arab News)  Following their successful green hydrogen project in NEOM, ACWA Power is partnering again with US-based Air Products to develop a multibillion-dollar world-scale green hydrogen-based ammonia production plant in Oman with the sultanate's energy company OQ. (Source: Arab News)  International Finance Corporation is providing a USD 30mn loan to UAE-based waste management company Averda International to support its expansion in Oman, Morocco, and South Africa. (Source: Zawya)  Bahrain ranks first among Arab countries and second in MENA in ground and port infrastructure, according to the World Economic Forum's 2021 Travel and Tourism Development Index. (Source: Trade Arabia)  Bahrain Real Estate Investment Company has signed a 10-year lease agreement worth USD 7mn with Trident Warehousing for an 8,137 sq m facility at Sitra Industrial Park. (Source: Trade Arabia)  Kuwait is set to launch the world’s largest petroleum center yet. Kuwait is on track to start construction on the largest petroleum research center worldwide worth USD 120mn before the end of 2022, MEED reported, citing the country’s oil ministry. (Source: Arab News) QATAR NEWS  The number of IP applications filed by young entrepreneurs and inventors at the MoCI has surged over the past year amid a booming entrepreneurship ecosystem and the rising number of young innovators in the Qatari market, according to an official. (Source: The Peninsula)  Major airlines in the GCC are working together to provide passenger services during the FIFA World Cup in Qatar, scheduled to take place in November this year, which is expected to contribute around USD 20bn to the economy. (Source: Zawya)  Hamad Port has ranked the third most efficient gateway in the world on the World Bank and S&P Global Market Intelligence’s 370-member Container Port Performance Index for 2021. (Source: The Peninsula) 2
3. May 29 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0757 USD/QAR 3.6400 127.1100 EUR/QAR 3.9155 USD/JPY GBP/USD 1.2646 JPY/QAR 0.0286 USD/CHF 0.9570 GBP/QAR 4.6031 USD/CAD 1.2723 CHF/QAR 3.8036 AUD/USD 0.7160 CAD/QAR 2.8610 NZD/USD 0.6534 AUD/QAR 2.6062 USD/INR 77.0956 INR/QAR 0.0472 USD/TRY 16.1807 TRY/QAR 0.2250 USD/ZAR 15.5688 ZAR/QAR 0.2338 USD/BRL 4.7295 BRL/QAR 0.7696 FX Commentary The USD edged lower on Friday as traders pared expectations for US Federal Reserve interest rate hikes and as improving inflation and consumer spending data eased recession fears. The US Dollar index fell 0.2% to 101.67. The EUR/USD ended flat at 1.0727 as investors believe much of the expected rate hikes from the ECB have been priced into current levels. The GBP/USD traded up 0.2% to 1.2616. The USD/JPY ended flat at 127.11. The USD/CNY went down 0.6% at 6.6986. The USD/CAD traded down 0.4% at 1.2723as recent volatility in global financial markets continued to subside. The AUD/USD went up 0.9% to 0.7160. The NZD/USD was up 0.9% at 0.6534. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.82 0.08 1.06 1.57 2.68 (0.65) (0.56) (0.54) (0.35) 0.36 LIBOR EURIBOR 1 Month 3 Month 1 Year Qatar vs US Treasuries Yields 6.0% QAIBOR 0.70 0.75 1.00 1.15 1.85 4.0% SAIBOR 1.65 1.65 1.88 3.03 3.28 EIBOR 0.84 0.84 1.11 1.63 2.55 2.0% BMIBOR 1.60 1.78 2.52 2.66 3.54 KIBOR 0.81 1.31 1.63 1.88 2.44 Source: Refinitiv Eikon 2.78% 0.0% 0.85% 2.76% 2.80% 1.52% 1.20% 2.72% 1.94% 0.22% 2 Yrs 2.64% 3.40% 2.72% 2.74% 2.97% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 2.76% 2.0% 1.0% 2.48% 4.26% 3.19% 3 Yrs Qatar Source: Refinitiv Eikon, Investing.com US Swap Rates 3.0% 3.08% 2.75% 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs Source: Refinitiv Eikon Spread 6M Change 5 Years CDS Spread 6M Change US 16.2 0.2 Turkey 714.4 216.3 UK 11.1 0.5 Brazil 222.5 (31.1) Germany 11.0 1.9 Egypt 770.4 276.0 France 21.5 1.5 Abu Dhabi 66.6 22.0 Italy 124.6 34.5 Bahrain 307.9 73.0 Greece 165.2 52.9 Dubai 126.8 30.2 Russia 12,820.9 12,706.1 Qatar 66.1 23.5 Japan 20.2 0.6 Saudi Arabia 64.1 16.5 Source: Refinitiv Eikon, worldgovernmentbonds.com GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) 37.3 13.6 5.9 -4.7 NA NA 106.6 -52.3 NA 4.6 -71.3 NA Tabuk Agricultural Development 21.6 -4.4 -20.5 NA NA NA Saudi Cable Company 35.4 -44.6 11.0 -37.2 NA NA Raydan Food Company Al Moammar Information Sys Source: Refinitiv Eikon; Note: All figures are in local currency 3
4. QSE MAIN FINANCIAL INDICATORS (as on 26th May 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 Baladna Medicare Cinema Qatar Fuel Widam Mannai Corp. Al Meera Consumer Goods & Services QAMCO Ind. Manf. Co. National Cement Co. Industries Qatar The Investors Electricity & Water Aamal Gulf International Mesaieed Investment Holding Industrials Qatar Insurance Doha Insurance QLM General Insurance Alkhaleej Takaful Islamic Insurance Insurance United Dev. Company Barwa Ezdan Holding Mazaya Real Estate Ooredoo Vodafone Qatar Telecoms Qatar Navigation Gulf warehousing Co Nakilat Transportation Market Dividend Yield (%) 2.7 2.4 2.3 2.8 3.6 3.4 3.5 0.0 0.0 NA 1.2 0.8 2.7 3.5 0.0 NA 3.7 1.6 4.2 0.0 3.7 4.9 3.2 3.9 3.9 6.0 5.7 0.0 4.6 4.5 0.0 4.3 0.0 4.0 4.9 4.1 6.1 0.0 1.9 4.7 3.7 3.7 3.8 5.3 0.0 0.0 3.8 4.2 3.8 4.0 3.6 2.2 3.3 3.4 2.7 P/B Ratio (x) 2.0 2.4 1.2 0.6 1.4 2.0 1.4 1.8 0.7 1.3 0.9 2.4 1.7 3.0 6.8 0.7 1.9 1.6 2.1 2.1 1.7 2.6 1.4 1.9 0.8 1.1 2.9 2.1 1.5 0.9 1.0 2.0 2.1 1.8 2.0 0.7 0.8 0.3 1.9 2.8 3.9 0.8 0.5 0.6 1.0 1.0 0.6 1.0 1.5 1.2 0.6 1.3 2.1 1.1 2.2 P/E Ratio (x) 15.1 16.5 13.2 11.5 14.8 18.1 21.8 8.0 NA 12.6 100.5 31.3 15.9 25.7 184.0 20.6 25.8 86.6 18.4 NA 14.4 19.4 23.8 20.2 9.7 14.1 11.3 67.2 12.8 22.4 24.3 16.6 67.2 11.8 12.7 14.0 11.9 16.3 25.9 14.5 19.4 14.9 14.1 11.1 509.1 NA 14.2 45.1 18.2 31.5 12.2 11.5 14.0 13.1 18.8 May 29, 2022 EPS (QR) 1.3 1.4 0.5 0.2 0.3 0.6 0.2 0.2 0.0 0.1 0.0 0.1 0.7 0.7 0.0 0.0 0.3 0.0 1.0 -0.4 0.6 1.0 0.1 0.3 0.3 0.3 1.3 0.0 1.3 0.0 0.0 0.1 0.0 0.1 0.4 0.2 0.1 0.1 0.2 0.6 0.3 0.2 0.1 0.3 0.0 -0.2 0.0 0.0 0.1 0.2 0.6 0.4 0.2 0.3 0.3 BV/Share (QR) 10.7 10.5 5.9 4.6 2.9 5.7 3.2 0.7 1.4 1.7 0.9 2.6 4.9 5.6 0.3 1.4 3.7 2.2 9.1 1.5 4.8 7.7 1.2 3.5 3.6 4.7 6.5 1.0 10.7 1.2 1.8 1.4 1.0 1.1 2.6 3.4 2.4 5.9 2.1 2.8 1.8 3.0 3.1 5.4 1.2 0.8 1.9 6.6 1.1 3.5 13.0 3.5 1.6 3.5 2.7 Stock Price (QR) 20.5 24.3 7.0 2.7 4.0 10.9 4.8 1.5 0.9 1.7 0.8 6.2 17.9 2.0 1.0 6.8 3.7 18.2 3.0 8.1 18.5 1.7 3.1 5.0 17.5 2.2 17.3 1.1 1.9 2.5 2.2 2.0 2.4 2.0 2.0 3.9 8.5 6.0 1.4 3.3 1.3 0.9 7.2 1.6 8.5 4.5 3.6 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