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GCC Daily Market Update - 4 July

IM Insights
By IM Insights
1 month ago
GCC Daily Market Update - 4 July


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  1. July 4 , 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) 3,825.3 31,097.3 11,585.7 7,168.7 12,813.0 5,931.1 2,443.8 25,935.6 21,859.8 3,387.6 52,907.9 40.0 321.8 82.0 (0.6) 29.3 8.2 38.4 (457.4) (137.1) (11.0) (111.0) 1.1 1.1 0.7 (0.0) 0.2 0.1 1.6 (1.7) (0.6) (0.3) (0.2) NA NA NA NA NA NA NA NA NA NA NA (19.7) (14.4) (29.0) (2.9) (19.3) (17.1) 31.6 (9.9) (6.6) (6.9) . (9.2) 12,272.2 11,465.0 9,344.6 3,201.8 7,467.9 4,108.7 1,865.8 748.8 4,844.3 80.9 (58.3) NA NA 59.4 (13.9) 26.2 (0.9) 3.7 0.7 (0.5) NA NA 0.8 (0.3) 1.4 (0.1) 0.1 0.7 (0.5) NA NA 0.8 (0.3) 1.4 (0.1) 0.1 4.9 2.1 10.1 0.2 5.2 (0.2) 2.4 1.2 (24.9) 111.6 108.4 5.7 1,798.9 3.6 (3.2) 2.7 0.3 (5.2) (0.1) (2.8) 2.5 5.6 (0.3) (2.6) (2.8) 2.5 5.6 (0.3) (2.6) 43.5 44.2 53.6 (1.6) (18.8) Global Wall Street bounced back to a sharply higher close in light trading on Friday as investors embarked on the second half of the year ahead of the long holiday weekend. The DJIA and the S&P 500 gained 1.1% each while the Nasdaq 100 added 0.7%. European shares closed flat on Friday as gains in defensives countered a sell-off in semiconductor and commodity-linked stock. The continent-wide STOXX 600 index cut session lost 0.2%. In Asia, Japan’s Nikkei index fell 1.7%, for a third straight session on Friday to end at a near two-week low. China stocks edged down as a private sector poll showed Beijing’s manufacturing activity expanded at its fastest in 13 months in June. GCC Stock markets in the Gulf ended mixed on Sunday, with the Saudi index extending losses as investors fret that the latest show of central bank determination to tame inflation will slow economies rapidly. Saudi Arabia's benchmark index dropped 0.5%, with Retal Urban Development Co losing 2.4%, while Al Rajhi Bank declined 2.6%. Oman index edged down 0.3% while Kuwait and Bahrain index closed up 0.8% and 1.4% respectively. No trading happened in Dubai and Abu Dhabi stock markets as the exchange remained closed. Qatar The Qatari benchmark index gained 0.7% on Sunday, helped by a Zad Holding (+3.4%) and Dlala Brokerage & Investment Holding (+2.1%) were the top gainers of the day. Out of the 44 traded stocks, 29 advanced and 15 declined. Total traded volume in the market was lower than the previous trading session. The Telecoms index advanced 1% and Industrials index increased by 0.9%. Source: Refinitiv Eikon QATAR MARKET OVERVIEW Dividend Value Traded Yield (%) (USD mn) Qatar DSM Index P/E (x) P/B (x) Qatar All Share 14.5 1.5 3.6 189.3 DSM 20 14.5 1.5 3.7 178.5 Saudi Arabia (TASI) 19.2 2.6 2.9 1,720.4 UAE (ADX) 20.2 2.6 2.1 359.4 UAE (DFM) 13.1 1.1 0.0 80.7 Kuwait (KSE) 12.0 1.6 2.9 337.2 Oman (MSM) 10.8 0.7 5.2 7.9 Source: Refinitiv Eikon Bahrain (BAX) 7.1 1.0 4.4 1.1 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 ZAD HOLDING DLALA' BROKERA GULF INTR SERV QA ISLAMIC BK QNB Top Losers QA INDUS MANF QATARI INV GRP DOHA INS CO QA COMM BK MANNAI CORP 18.2 1.5 2.1 22.6 20.3 3.4 2.0 2.1 6.8 8.3 0.6 0.0 0.0 0.4 0.3 (0.1) (0.0) (0.0) (0.1) (0.1) Performance YTD YoY (%) (%) 3.4 2.1 1.8 1.7 1.6 (2.8) (1.5) (1.4) (1.1) (1.1) Source: Refinitiv Eikon; Note: Prices are in local currency. 14.4 19.9 23.5 23.4 0.5 10.7 (9.5) 6.8 0.3 74.8 21.7 (7.4) 40.2 30.5 12.8 19.3 (20.1) 3.0 27.8 113.9 Vol. (‘000) P/E TTM 0.1 562.6 11,679.1 928.0 957.2 26.2 11.2 27.5 15.4 15.0 34.6 2,416.1 9.5 345.1 44.6 10.7 10.7 12.4 12.8 14.8 16,000 15,000 14,000 13,000 12,000 11,000 10,000 6-Apr 12,272.2 600.0 400.0 200.0 0.0 20-Apr 4-May 18-May Index Volume (mn) 1-Jun 15-Jun 29-Jun Index Value Closing Level 5,237.0 8,545.7 4,482.8 2,644.6 1,755.2 1,169.3 4,078.7 1D Change (%) 0.8 0.7 0.9 0.1 0.7 1.0 0.3 Source: Refinitiv Eikon Qatar Trading Summary Buy (%) Sell (%) Qatari Individuals 45.3 55.0 Qatari Institutions 14.9 11.8 Qatari – Total 60.2 66.8 Foreign Individuals 24.4 23.6 Foreign Institutions 14.8 39.1 9.6 33.2 Foreign – Total Source: Qatar Exchange 1
  2. July 4 , 2022 GLOBAL NEWS  President Joe Biden's administration unveiled a five-year proposal for offshore oil and gas development in areas of existing production and said the final plan may have anywhere from zero to 11 lease sales. (Source: Reuters)  Boeing Co said it is disappointing that geopolitical differences continue to constrain US aircraft exports while responding to China's three biggest state-owned airlines buying 300 jets from European planemaker Airbus SE. (Source: Reuters)  Andrew Bailey, the governor of the BoE, opposes plans drawn up by Britain's Treasury to overrule financial regulators, Sky News reported. (Source: Reuters)  Italy's state-owned bad loan specialist AMCO said it had signed an agreement with lender Intesa Sanpaolo to purchase a portfolio of nonperforming leasing credits with a gross value of around EUR 1.4bn (USD 1.46bn). (Source: Reuters)  The average land price in Japan as of Jan. 1 was up 0.5% from a year earlier, the National Tax Agency said, rebounding from a fall in 2021 as the country recovers from the coronavirus pandemic. (Source: Mainichi)  The BoJ bought a record amount of JGB in June, in response to selling by foreign investors anticipating a policy change by the central bank. According to an estimate by Mitsubishi UFJ Morgan Stanley Securities Co., the BOJ purchased some JPY 16tn of JGBs, topping the previous monthly record of about JPY 11tn marked in November 2014. (Source: Japan Times)  China's Great Wall Motor has shelved plans to invest USD 1bn in India and laid off all employees at its operations there after failing to obtain regulatory approvals, according to sources. (Source: Reuters)  Tesla Inc (TSLA.O) said on Saturday its vehicle deliveries fell to 254,695 in the second quarter, as a COVID-related shutdown in Shanghai hit its production and supply chain. (Source: Reuters)  Turkey has decided to raise the minimum wage in the country by 30%, President Recep Tayyip Erdoğan announced, in an effort to safeguard households from soaring inflation. Effective as of July 1, the new minimum wage has been set as TRY 5,500 (USD 330) per month, Erdoğan told a televised address in Istanbul. (Source: Daily Sabah) GCC NEWS  Dr. Karen Remo, a business leader based in the UAE, has received the Presidential Award, the highest honor bestowed by the Philippine government on Filipinos overseas. (Source: Arab News)  Careem has acquired Denarii, a Dubai-based money transfer platform, in its second acquisition this month. While the company has not disclosed the value of the deal, this acquisition will allow Careem to integrate Denarii’s technologies and assets into its platform. (Source: Arab News)  DEWA has announced that its total production capacity of energy has surged to 14,117 after adding 700mw more power. This includes 600mw from the Hassyan Power Complex, which runs on natural gas, and 100 MW from photovoltaic solar panels at the 5th phase of the Mohammed bin Rashid Al Maktoum Solar Park. (Source: Trade Arabia)  Saudi Arabia’s Ministry of Industry and Mineral Resources has decided to adjust the fuel and feedstock prices for the industrial sector from the fourth quarter of 2023, according to a ministry statement to companies. (Source: Arab News)  Saudi banks’ real estate lending witnessed a YoY increase of SAR 131bn (USD 34.9bn) to SAR 605.5bn in the Q1-22, from SAR 474.5bn during the same period last year, according to latest figures released by the Saudi Central Bank. (Source: Arab News)  The Red Sea Development Co. has signed a JV agreement worth SAR 1.5bn (USD 400mn) with Almutlaq Real Estate Investment Co., a subsidiary of the Al Mutlaq Group. (Source: Arab News)  Saudi oil giant Aramco has given out an order worth SAR 60mn (USD 16mn) to homegrown Arabian Pipes Co. to supply steel pipes. The contract will be valid for one year, the Riyadh-based pipe manufacturer said in a statement to the Saudi stock exchange. (Source: Arab News)  The Saudi National Bank will distribute SAR 4.92bn (USD 1.31bn) in dividends for the H1-22. With over 4.47bn shares eligible for dividends, the payout per share is SAR 1.1, the bank said. (Source: Arab News)  Saudi PIF owned ACWA Power Co. announced that its shareholders have approved a dividend payout of SAR 563mn (USD 150mn) for 2021. Shareholders will receive SAR 0.77 per share, representing 7.7% of the nominal value per share. (Source: Arab News)  Saudi Arabia’s capital, Riyadh, has dropped 72 places in a ranking of the world’s most expensive cities for expats as it tumbled out of the top 100, according to a report issued by Mercer. (Source: Arab News)  Mashreq bank announced the pricing of an aggregate principal amount of USD 300mn of its 8.5% Perpetual Non-callable 5-year Additional Tier 1 Notes. The offering is expected to close on July 7, subject to customary closing conditions. (Source: Trade Arabia)  The Saudi Central Bank has appointed Khaled Al-Dhaher as deputy governor for control and technology at the excellent rank, according to the Saudi Press Agency. (Source: Arab News)  The Saudi British Bank has appointed Yasser Ali Al-Barrak as its new CEO for corporate and institutional banking from this month. (Source: Arab News)  Omani contractor Galfar Engineering & Contracting has announced that it has awarded a contract from the Ministry of Defence for the dualization of Phase 2 of Al Murtafaat Street at a cost of OMR 16.145mn. (Source: Oman Observer)  Bahrain’s economic activity is set for a moderate rebound in 2022 and the fiscal and external positions will improve considerably in the nearterm and over the medium-term, growth is set to stabilize at 3%, according to a review by IMF. (Source: Zawya)  Kamco Invest acted as the Partial Purchase Offer Manager to Qurain Petrochemical Industries Company in purchasing a 9% stake in Advanced Technology Company’s. (Source: Arab Times) QATAR NEWS  The Qatar Central Bank announced that more than 25,000 local transactions, worth more than QAR 230mn, were executed within the first 24 hours of the start of the money transfer service outside official working hours. (Source: The Peninsula)  The total earnings for Qatari-listed companies increased by 28% during the Q1-22 to reach USD 3.7bn as compared to USD 2.9bn in Q121. Also, the earnings reported by GCC-listed companies reached a new record level during Q1-22 backed by a broad-based QoQ growth in profits across all sectors according to Kamco Invest report. (Source: The Peninsula)  Qatar First Bank has acquired the Gateway Plaza building in Richmond, Virginia, USA. The new acquisition is a Class AA trophy asset with an area of 330,000 square feet. (Source: The Peninsula)  Banks in Qatar could act as trail-blazers for a world-leading, fraudinhibiting, super-fast global payments system fit for the next century, if they seize the opportunity being offered by a UK-headquartered fintech business. (Source: The Peninsula) 2
  3. July 4 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0458 USD/QAR 3.6615 135.1900 EUR/QAR 3.8292 USD/JPY GBP/USD 1.2124 JPY/QAR 0.0271 USD/CHF 0.9593 GBP/QAR 4.4392 USD/CAD 1.2883 CHF/QAR 3.8168 AUD/USD 0.6814 CAD/QAR 2.8421 NZD/USD 0.6206 AUD/QAR 2.4949 USD/INR 78.4283 INR/QAR 0.0467 USD/TRY 16.7613 TRY/QAR 0.2184 USD/ZAR 16.3958 ZAR/QAR 0.2233 USD/BRL 5.3310 BRL/QAR 0.6868 FX Commentary The USD edged higher on Friday as central banks take on inflation at the expense of economic growth. The USD index gained 0.36% against a basket of currencies to 105.14. It is holding just below a 20-year high of 105.79 reached on June 15. The EUR/USD went down 0.5% at 1.0428 as investors bet that the ECB is unlikely to throw caution to the wind on rate hikes despite data showing inflation swelled to a record. The GBP/USD dropped 0.7% at 1.2094. The USD/JPY traded down 0.4% at 135.19. The USD/CNY went up 0.03% at 6.7000. The USD/CAD traded 0.1% higher at 1.2883. The risk sensitive AUD/USD fell to a two-year low, ended 1.3% at 0.6814 while the NZD/USD traded down 0.6% at 0.6206. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration Overnight 1 Week 1.57 0.08 1.80 2.29 3.56 (0.65) (0.57) (0.51) (0.18) 0.96 QAIBOR 2.25 2.25 2.35 2.45 2.75 SAIBOR 1.85 1.86 1.95 2.94 3.56 EIBOR 1.63 1.71 1.81 1.79 3.30 BMIBOR 2.33 2.58 3.30 3.57 4.77 KIBOR 1.00 1.56 1.81 2.19 2.75 LIBOR EURIBOR 1 Month 3 Month 1 Year Source: Refinitiv Eikon 3.09% 2.0% 0.0% 6.0% 4.0% 2.0% 3.41% 3.40% 2.84% 2.87% 4.64% 3.56% 3.71% 2.89% 2.90% 3.12% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 2.89% 2.89% 1.20% 0.95% 2.94% 1.43% 2.85% 1.76% 0.32% 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 18.2 6.5 Turkey 838.2 UK 13.5 2.9 Brazil 291.0 89.3 Germany 13.1 4.0 Egypt 1,074.7 594.9 France Abu Dhabi 290.1 24.0 4.0 69.3 24.7 Italy 131.9 41.8 Bahrain 336.1 40.2 Greece 162.2 57.0 Dubai 131.6 39.5 Russia 12,840.2 12,720.5 Qatar 69.3 24.7 Japan 27.4 9.8 Saudi Arabia 72.2 22.7 Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event Period Survey Prior 09:00 Germany Exports MoM SA May 0.9% 4.4% 09:00 Germany Imports MoM SA May 0.9% 3.1% 09:00 Germany Trade Balance, EUR, SA May 2.7bn 3.5bn 02:50 Japan Monetary Base YoY Jun NA 4.49% 06:00 Japan Overall Comprehensive Risk Q3 NA 9.02 09:00 Germany Current Account - Balance NSA May NA 7.4bn Source: Refinitiv Eikon 3
  4. QSE MAIN FINANCIAL INDICATORS (as on 3rd July 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 2.58 2.34 2.88 3.64 3.52 4.12 0.00 0.00 0.00 1.38 0.90 2.89 3.52 0.00 0.00 3.57 1.64 4.26 0.00 3.58 5.16 3.12 3.95 3.43 5.87 6.27 0.00 4.57 4.65 0.00 4.42 0.00 4.70 5.24 4.17 5.77 0.00 2.30 4.57 3.97 3.72 3.95 5.24 0.00 0.00 3.91 3.90 3.77 3.86 3.57 2.45 3.21 3.31 2.73 P/B Ratio (x) 1.94 2.20 1.15 0.57 1.35 1.95 1.23 1.41 0.61 1.17 0.80 2.09 1.63 3.09 5.48 0.64 1.99 1.62 2.04 2.03 1.74 2.40 1.41 1.89 0.93 1.15 2.69 1.70 1.52 0.89 1.18 1.96 1.70 1.55 1.87 0.74 0.86 0.33 1.58 2.88 3.58 0.75 0.46 0.64 0.87 0.94 0.58 1.07 1.53 1.23 0.62 1.17 2.21 1.15 2.17 July 4, 2022 P/E Ratio (x) 14.98 15.43 12.80 11.05 14.57 17.81 18.66 6.40 0.00 11.21 90.61 27.74 15.04 26.16 147.61 18.82 26.47 86.79 18.17 0.00 14.76 18.28 23.86 19.80 10.71 14.63 10.44 54.83 13.10 21.90 27.54 16.41 54.83 10.09 11.91 14.04 12.37 16.62 21.63 14.72 17.96 14.75 13.83 11.31 427.56 0.00 13.83 48.56 18.46 32.98 12.19 10.56 14.65 13.32 18.77 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) 20.30 22.62 6.77 2.59 3.95 10.70 4.10 1.19 0.82 1.48 0.72 5.50 18.19 1.58 0.87 7.00 3.66 17.98 2.93 8.30 17.39 1.68 3.40 5.18 16.10 1.77 17.68 1.08 2.12 2.52 1.77 1.72 2.41 2.05 2.00 3.29 8.66 5.55 1.41 3.35 1.09 0.81 7.77 1.61 8.45 4.12 3.74 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