GCC Daily Market Update - 3 August

Transcription

1. August 3 , 2021 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) MSCI GCC Dow Jones Islamic Commodity Brent (USD/bbl) WTI (USD/bbl) Natural Gas (USD/mmBTU) Gold Spot (USD/t oz.) Copper (USD/lb) 4,387.2 34,838.2 14,963.6 7,081.7 15,568.7 6,675.9 1,399.7 27,781.0 26,235.8 3,464.3 52,950.6 (8.1) (97.3) 3.7 49.4 24.3 63.1 6.7 497.4 274.8 66.9 363.8 (0.2) (0.3) 0.0 0.7 0.2 1.0 0.5 1.8 1.1 2.0 0.7 (0.2) (0.3) 0.0 0.7 0.2 1.0 0.5 1.8 1.1 2.0 0.7 16.8 13.8 16.1 9.6 13.5 20.3 (5.2) 1.2 (3.7) (0.3) 10.9 10,816.6 11,157.0 7,404.3 2,790.3 6,547.7 4,007.2 1,600.0 688.7 6,156.9 80.2 90.1 11.2 8.7 (27.5) (30.6) 6.1 6.2 21.3 0.8 0.8 0.2 0.3 (0.4) (0.8) 0.4 0.9 0.4 0.6 1.3 1.2 0.9 (0.5) (0.6) 0.2 1.4 0.4 3.6 28.4 46.8 12.0 18.1 9.5 7.4 25.5 12.8 72.9 71.3 3.9 1,818.1 443.3 (3.4) (2.7) 0.0 5.5 (5.0) (4.5) (3.6) 0.5 0.3 (1.1) (4.3) (3.4) 1.6 0.3 (1.3) 41.0 47.3 56.6 (4.1) 25.7 Global The US markets ended marginally lower yesterday. The S&P 500 index ended 0.2% lower yesterday as gains in Utilities and Consumer Discretionary stocks were offset by concerns over Delta variant of the coronavirus and a slowdown of the US economy. The Stoxx Europe 600 index ended higher by 0.6% yesterday to close at 464.5 as gains in Retail and Technology stocks supported the benchmark. The FTSE 100 index ended 0.7% higher yesterday as gains in Mining shares supported the benchmark. Amongst Asian markets, Japan’s stock market index increased by 1.8% yesterday, boosted by strong earnings from shippers and other cyclical firms which offset the concerns about rising Delta coronavirus variant cases in the nation. India’s stock market index advanced by 0.7% yesterday as gains in Automobile and Energy stocks supported the benchmark. GCC Most GCC markets ended higher yesterday. Saudi Arabia’s benchmark outperformed its peers yesterday by increasing 0.8% as gains in Utilities and Banking stocks supported the benchmark. Also, Saudi Arabia’s benchmark was boosted by the release of corporate earnings. Abu Dhabi’s market advanced marginally by 0.2% as gains in Banking stocks were capped by losses in Telecommunications stocks. Dubai’s benchmark advanced 0.3% as gains in Transportation and Banking stocks supported the benchmark. Qatar The QE index advanced by 0.8% yesterday. Buying support on the part of foreign institutional investors supported the benchmark. Trade turnover declined while volume increased on the bourse with Industrial, Banking & Financial, Consumer Goods & Services stocks accounting for 87.3% of the total trading value. Out of the 48 listed stocks, 47 exchanged hands, 38 advanced, 8 declined and 1 remained unchanged. Source: Bloomberg QATAR MARKET OVERVIEW Dividend Value Traded Yield (%) (USD mn) Qatar DSM Index P/E (x) P/B (x) Qatar All share 18.5 1.6 2.6 102.7 DSM 20 18.0 1.6 2.7 66.7 Saudi Arabia (TASI) 33.3 2.5 2.1 2,201.3 UAE (ADX) 23.6 2.2 2.9 362.9 UAE (DFM) 20.8 1.0 2.8 37.6 Kuwait (KSE) 36.9 1.7 1.8 201.4 Oman (MSM) 12.6 0.8 3.9 2.6 Source: Bloomberg Bahrain (BAX) 11.4 0.8 3.4 4.8 QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation GCC Fundamentals Source: Bloomberg Qatar Trading Activity Top Gainers Qatar Aluminum Mesaieed Petrochem Salam International Qatar German Co For Investment Holding Top Losers Qatar Cinema & Film Qatar General Widam Food Co Qatar Islamic Insurance Qatar Electricity & Close 1D Change Performance Price Value (%) YTD (%) YoY (%) 1.6 2.0 0.9 2.8 1.1 0.1 0.1 0.0 0.1 0.0 4.9 3.1 2.7 2.7 2.3 65.0 (4.2) 40.1 26.4 79.8 88.9 (5.9) 100.4 19.4 112.0 3.8 2.1 4.1 8.4 16.7 (0.2) (0.0) (0.0) (0.0) (0.0) (4.7) (1.0) (0.6) (0.4) (0.2) (4.8) (21.8) (35.9) 21.2 (6.3) 14.8 (6.2) (40.2) 34.9 (1.1) Source: Bloomberg; Note: Prices are in local currency. Vol. P/E (‘000) TTM 40,649.1 43.1 10,665.2 28.9 44,486.9 NA 4,252.5 NA 15,979.3 40.7 31.7 25.0 906.3 50.0 124.4 NA 10.9 43.3 16.8 14.3 11,000 10,816.6 200.0 10,800 10,600 100.0 10,400 10,200 6-May 0.0 20-May 3-Jun 17-Jun Index Volume (mn) 1-Jul 15-Jul 29-Jul Index Value Closing Level 4,537.8 8,123.8 3,616.5 2,637.0 1,779.1 1,056.0 3,413.6 1D Change (%) 0.6 0.5 1.2 0.6 0.7 0.8 0.8 Buy (%) 40.1 14.9 55.0 19.2 25.8 45.0 Sell (%) 52.0 16.1 68.1 19.8 12.1 31.9 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. August 3 , 2021  Saudi-based National Building and Marketing Company has agreed with Ukraine-based Yuzhmash International Company to extend the MoU, signed on 3rd May-21 to establish a limited liability military industries company for three months. (Source: Mubasher)  Saudi’s Capital Market Authority approved Saudi’s Emaar the Economic City’s (EMAAR EC) capital increase. The company announced to convert debt and owe SAR 2.8bn (USD 756.0mn) to the Saudi Public Investment Fund (PIF). (Source: Zawya)  The US Senate is expected to pass a legislation this week, which would result in ending employee retention tax credit on 30th September-21. The tax is valued at up to USD 28,000 per employee kept on the payroll in 2021. (Source: Bloomberg) Bank AlJazira reported 64.9% YoY increase in H1-21 net profit to SAR 572.8mn (USD 152.8mn). The Bank’s total assets increased by 4.4% to SAR 95.9bn (USD 25.6bn). (Source: Saudi Arabia Exchange)  UK Prime Minister said that he wants to get the travel industry moving again with user-friendly system where people would be allowed for trips abroad without spreading new variants of coronavirus. (Source: Saudi-based Middle East Paper Company reported 290.7% YoY increase in H1-21 net profit to SAR 60.8mn (USD 16.2mn). The company’s total revenue increased by 22.7% YoY to SAR 450.9mn (USD 120.2mn). (Source: Saudi Arabia Exchange)  Saudi Telecom Company reported 2.4% YoY increase in H1-21 net profit to SAR 5.8bn (USD 1.6bn). The company’s total revenue increased by 9.5% YoY to SAR 31.6bn (USD 8.4bn). (Source: Dubai Financial GLOBAL NEWS     The IMF said that the pandemic reversed the decline in global current account imbalances in 2020 because of huge deficit aid expenditure in advanced countries combined with wider trade gaps for medical supplies and reducing demand for oil and travel. (Source: Reuters) US Treasury Secretary Janet Yellen took additional steps to reserve the federal government's borrowing capacity under a restored debt limit. She suspended some investments in government employee retirement and health benefits funds. (Source: Reuters) Reuters)  Japan's Finance Minister Taro Aso stated that the government was not yet considering compiling an extra budget. Though the nation's fiscal situation has weakened, it will improve to near pre-pandemic levels once vaccinations proceed. (Source: Channel News Asia) GCC NEWS   The total number of new business licenses issued in Dubai increased by 77.0% to 31,000 in H1-21, according to Dubai’s economy report. Restaurants and cafes recorded 1,153 new licenses, while the tourism sector welcomed 342 licenses, including 20 new hotels. Dubai's real estate sector increased by 186.0% YoY. (Source: Mubasher) Dubai-based Emerson has partnered with Dubai-based SirajPower to build a solar rooftop plant at its head office in Dubai to become the largest plant in a single location within Jebel Ali. The solar rooftop consists of 5,489 solar panels covering a roof area of 19,340 sqm, with a capacity of 2.6 MWp. (Source: Mubasher)  The Dubai Gold and Commodities Exchange registered a monthly Average open interest (AOI) of 181,879 contracts during July-21. The Group’s weekly INR-USD Futures Contract, recorded a volume growth of 86.0% YTD. (Source: Trade Arabia)  Dubai Insurance Company reported 28.0% YoY increase in H1-21 net profit to AED 42.3mn (USD 11.5mn). The company’s gross premium increased by 38.6% to AED 644.5mn (USD 175.5mn) in H1-21. (Source: Market)  Saudi Telecom Company announces distribution of cash dividend of SAR 2.0bn (USD 0.5bn) for H1-21. Dividend per share is amounted to SAR 1.0 (USD 0.3). (Source: Saudi Arabia Exchange)  Eastern Province Cement Company announces distribution of cash dividend of SAR 120.4mn (USD 32.1mn) for H1-21. Dividend per share is amounted to SAR 1.4 (USD 0.4). (Source: Saudi Arabia Exchange)  Non-oil economic activities in Bahrain have started to show signs of recovery because of improved consumer and business confidence, according to The Economy, Strategy and Finance Centre Gulf Economic Outlook. The country’s non-oil sector will drive the nation’s economic recovery in 2021. (Source: Gulf Daily News)  The Central Bank of Kuwait announced the issuance of bonds, Tawarruq worth KWD 240.0mn (USD 798.8mn). CBK said that the issue’s return rate is 1.3% and maturity period is 3 months. (Source: Kuwait News Agency)  A subsidiary of Kuwait-based Combined Group Contracting (CGC) has won a tender to develop and raise the efficiency of Sharjah E88 federal road in the UAE at a total value of KWD 15.9mn (USD 52.9mn). According to a Bourse Filing, the project will take 730 days to be completed. (Source: Mubasher)  National Industries Group Holdings reported 68.0% YoY increase in H121 net profit to KWD 43.6mn (USD 145.1mn). The company’s total revenue increased by 9.7% YoY to KWD 52.4mn (USD 174.4mn). (Source: Dubai Financial Market)    The Abu Dhabi Department of Economic Development announced that the requirements for starting a new commercial business is reduced by 71.0% by the Abu Dhabi Government. Duplicate requirements are removed and existing requirements are modified to facilitate the process of starting a business. (Source: Emirates News Agency) Abu Dhabi Islamic Bank signed a partnership with the Ministry of Interior (MOI) to allow opening of accounts remotely and digitally. ADIB becomes the first bank in the UAE to achieve instant and highly secure verification before opening a new account. (Source: Zawya) QATAR NEWS  Saudi Arabia’s real estate price index increased by 0.4% YoY in Q2-21, due to 0.8% increase in residential properties. Residential real estate prices increased by 0.2% QoQ in Q2-21 and Commercial real estate prices decreased 0.5% QoQ. (Source: Mubasher) Qatar’s PTSC Mechanical & Construction (PTSC M&C) has signed a contract for Gallaf Batch 3 Project – EPCI05 (Package 5) with North Oil Company. The project is the next developmental phase of the Al Shaheen oil field which will take around three years to complete. (Source: Trade Arabia)  The Communications Regulatory Authority (CRA) issued an Order to direct Ooredoo Qatar and Vodafone Qatar to implement specific wholesale charges for 2021, 2022 and 2023 to maintain a competitive, fair, and developing telecom sector in Qatar. (Source: Gulf Times)  Hamad General Hospital's medical director said that the fourth phase of lifting Covid-19 restrictions could start by September-21 if the situation continued to improve and remained under control. (Source: BDT Capital Partners (BDT), Mubadala Investment Company and its asset management subsidiary, Mubadala Capital, announced the transaction close of the acquisition of Culligan International. (Source: Emirates News Agency)  Dubai Financial Market) Gulf Times) 2
3. August 3 , 2021 FX RATES Currencies Value Currencies Value EUR/USD 1.1900 USD/QAR 3.6415 109.3100 EUR/QAR 4.3334 USD/JPY GBP/USD 1.3913 JPY/QAR 0.0333 USD/CHF 0.9055 GBP/QAR 5.0664 USD/CAD 1.2510 CHF/QAR 4.0215 AUD/USD 0.7361 CAD/QAR 2.9109 NZD/USD 0.6970 AUD/QAR 2.6805 USD/INR 73.8463 INR/QAR 0.0490 USD/TRY 8.3545 TRY/QAR 0.4359 USD/ZAR 14.4724 ZAR/QAR 0.2516 USD/BRL 5.1738 BRL/QAR 0.7038 FX Commentary The USD was lower against a basket of major currencies yesterday with US dollar index declining by 0.1% to close at 92.0. The USD declined due to the release of lower than expected Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) data of July-21. The EUR was flat against the greenback despite the release of higher than expected rise in Germany’s Manufacturing PMI data for July-21. The GBP edged lower yesterday despite the release of UK Manufacturing PMI data of July-21 as per expectations. The JPY rose against the greenback due to the release of higher than expected rise in Tokyo Core Consumer Price Index (CPI) data for July-21. The TRY edged higher against the greenback after the release of Turkey’s PMI’s data of July-21 which showed factory activity rose at the fastest pace in six months. Source: Bloomberg SOVEREIGN YIELD CURVES & CDS SPREAD INTERBANK OFFERING & US SWAP RATES Duration Overnight LIBOR 1 Week 1 Month 3 Month 1 Year 0.08 0.09 0.09 0.12 0.24 (0.59) (0.56) (0.56) (0.54) (0.50) QAIBOR 0.63 0.78 0.80 0.90 1.25 SAIBOR 0.54 0.58 0.63 0.79 0.91 EIBOR 0.17 0.16 0.19 0.39 0.67 BMIBOR 0.65 0.82 1.42 1.29 1.52 KIBOR 0.56 0.88 1.25 1.50 2.00 EURIBOR Qatar vs US Treasuries Yields 4.0% 3.13% 2.24% 0.22% 0.17% 0.0% Source: Bloomberg US Swap Rates 5 Years CDS 1.61% 1.0% 0.25% 0.19% 1.21% 0.98% 0.75% 0.80% 0.55% 0.39% 0.27% 0.0% 2 Yrs 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs 0.65% 2 Yrs Source: Bloomberg 2.0% 1.53% 1.26% 2.0% 5 Yrs Qatar Spreads 6M Change 0.95% 7 Yrs 1.18% 1.85% 10 Yrs US 30 Yrs 5 Years CDS Spread 6M Change US 11.4 (2.0) Turkey 382.2 57.7 UK 12.6 (7.5) Brazil 179.0 (14.6) Germany 11.0 (0.7) Egypt 375.0 48.3 France 21.1 3.8 43.9 (4.5) Italy 75.8 (26.4) 265.3 16.5 Greece 74.7 (4.5) Dubai 97.3 (13.8) Russia 87.6 (9.4) Qatar 43.8 (5.4) Japan 18.6 0.8 Saudi Arabia 57.2 (13.0) Abu Dhabi Bahrain Source: Bloomberg Source: Bloomberg ECONOMIC CALENDAR Time Country Event Period Survey 16:30 Canada Markit Canada Manufacturing PMI Jul -- Prior 56.5 17:00 US Factory Orders Jun 1.00% 1.70% 17:00 US Durable Goods Orders Jun F 0.80% 0.80% 17:00 US Durables Ex Transportation Jun F 0.30% 0.30% Source: Bloomberg GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) 155.2 4.1 (19.3) 30.5 NA (17.6) NA NA NA 27.0 NA NA 15,899.0 6.6 1.3 2,821.0 3.6 (4.4) NA NA NA 251.2 51.5 (21.9) (61.9) Qatari Investors Group Commercial Bank International Saudi Telecom Co Bank Al-Jazira Makkah Construction & Devepl Aluminium Bahrain Bsc Humansoft Holding Co Ksc National Industries Grp Hold Middle East Paper Co Dubai Insurance Co. (P.S.C.) 33.0 (78.0) 41.5 (4.0) NA 370.0 51.6 22.2 92.6 NA 77.4 26.7 NA (2.9) 17.6 NA (9.0) 28.5 27.3 42.5 8.4 24.5 NA 250.5 29.4 24.9 43.1 NA NA 96.2 NA 34.3 15.6 44.0 (41.3) Source: Bloomberg; Note: All figures are in local currency 3
4. August 3 , 2021 th QSE MAIN FINANCIAL INDICATORS (As of 29 July 2021) 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 Baladna 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 QAMCO Qatar Electricity & Water The Investors Ind. Manf. Co. National Cement Co. Industrials Alkhaleej Takaful Doha Insurance Qatar Insurance General Insurance Islamic Insurance QLM 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 (%) 3.9 1.8 0.0 2.5 1.0 2.6 3.9 2.4 0.0 2.3 3.5 2.5 0.0 2.6 3.6 0.3 3.3 4.5 2.7 2.6 0.0 0.0 2.5 4.5 2.9 4.2 0.0 0.0 2.5 2.1 2.4 3.8 2.6 3.5 4.0 2.6 1.1 5.3 0.0 0.0 3.9 0.0 0.7 4.1 0.0 2.9 3.4 1.2 3.5 3.2 3.5 1.9 3.6 4.0 3.6 2.6 P/B Ratio (x) 1.4 1.2 2.0 0.9 2.0 1.2 2.3 0.8 2.5 2.1 2.3 2.2 0.9 1.9 1.2 0.7 2.5 2.9 1.7 2.1 9.8 0.7 2.3 2.3 1.8 0.8 0.8 1.0 2.4 1.5 1.4 1.7 1.0 0.8 1.1 1.8 2.5 0.9 1.0 0.4 3.0 3.2 1.0 0.6 1.3 1.0 0.5 0.9 1.1 1.5 1.2 1.6 1.7 0.6 1.1 1.6 P/E Ratio (x) 12.9 12.9 50.6 11.2 40.7 12.3 14.5 -356.6 (M) (‫)س‬ 12.6 14.4 13.6 26.6 13.6 17.8 24.5 27.9 19.3 51.3 19.9 83.9 (M) (‫)س‬ -48.8 18.4 23.1 54.8 (M) (‫)س‬ 40.0 25.0 28.1 39.4 14.2 30.5 12.5 18.9 25.7 (M) (‫)س‬ 13.8 16.8 10.9 16.6 16.3 22.8 10.3 (H) (‫)م‬ 38.6 18.8 31.9 -35.0 28.0 -71.6 12.9 13.5 (H) (‫)م‬ 17.0 18.5 EPS (QR) 0.3 0.4 0.0 0.3 0.1 0.2 0.3 0.0 (M) (‫)س‬ 1.4 0.6 1.3 0.0 0.6 0.1 0.2 0.3 1.0 0.1 0.9 0.0 (M) (‫)س‬ -0.1 0.8 0.3 0.0 (M) (‫)س‬ 0.0 0.5 0.1 0.0 1.2 0.1 0.2 0.3 0.2 (M) (‫)س‬ 0.1 0.2 0.2 0.5 0.3 0.1 0.3 0.0 0.0 0.1 0.1 -0.2 0.1 -0.1 0.4 0.2 0.2 0.2 0.3 BV/Share (QR) 2.7 4.5 0.8 3.3 2.5 1.9 1.9 1.4 0.7 8.0 4.1 8.3 1.0 4.5 1.2 5.0 3.5 7.0 2.1 8.5 0.3 1.3 1.8 6.7 3.4 1.2 1.7 1.0 5.5 1.2 1.0 9.5 2.3 3.4 4.6 2.3 1.9 2.2 2.6 5.8 2.8 1.6 3.0 5.2 1.2 1.1 3.1 1.9 6.3 1.0 3.3 3.3 1.8 12.2 3.6 3.0 Stock Price (QR) 3.9 5.5 1.5 3.0 5.0 2.2 4.3 1.1 1.8 17.2 9.2 18.2 0.9 1.5 3.7 8.6 20.1 3.7 18.0 2.7 0.9 4.1 15.5 1.0 1.4 1.1 13.4 1.9 1.5 16.5 2.3 2.8 5.0 4.7 1.9 2.5 2.1 8.3 5.1 3.1 1.5 1.0 1.5 7.1 1.6 5.2 3.0 7.5 - Company ‫االهلي‬ ‫التجاري‬ ‫داللة‬ ‫بنكالدوحة‬ ‫اإلسالميةالقابضة‬ ‫الخليجي‬ ‫الريان‬ ‫االجارة‬ ‫ االول‬QFC ‫المصرف‬ ‫الدولي‬ ‫بنكقطرالوطني‬ ‫قطروعمان‬ ‫البنوكوالخدماتالمالية‬ ‫الرعاية‬ ‫الرعاية‬ ‫مجمعالمناعي‬ ‫الميرة‬ ‫السينما‬ ‫قطرللوقود‬ ‫الطبية‬ ‫السالم‬ ‫ودام‬ ‫زاد‬ ‫البضائعوالخدماتاالستهالكية‬ ‫أعمال‬ ‫الخليجالدولية‬ ‫ا س ت ثمار ال قاب ضة‬ ‫صناعاتقطر‬ ‫مسيعيد‬ ‫قامكو‬ ‫كهرباءوماء‬ ‫المستثمرين‬ ‫التحويلية‬ ‫االسمنت‬ ‫الصناعات‬ ‫الخليج‬ ‫الدوحة‬ ‫قطر‬ ‫العامة‬ ‫االسالمية‬ QLM ‫التأمين‬ ‫بروة‬ ‫إزدانالقابضة‬ ‫مزاياقطر‬ ‫المتحدةللتنمية‬ ‫العقارات‬ ‫كيوتل‬ ‫فودافونقطر‬ ‫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 material or for any delays, inaccuracies, errors in, or omissions of the said information. 4