GCC Daily Market Update - 6 June

Transcription

1. June 6 , 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) 4,108.5 32,899.7 12,548.0 7,533.0 14,460.1 6,485.3 2,601.3 27,761.6 21,082.1 3,195.5 55,769.2 (68.3) (348.6) (344.9) (74.7) (25.1) (15.1) (0.3) 347.7 (212.8) 13.3 (48.9) (1.6) (1.1) (2.7) (1.0) (0.2) (0.2) (0.0) 1.3 (1.0) 0.4 (0.1) 0.2 0.3 (0.0) 0.0 0.8 1.0 1.3 0.7 (1.0) 0.4 0.7 (13.8) (9.5) (23.1) 2.0 (9.0) (9.3) 40.0 (5.3) (9.9) (12.2) (4.3) 12,806.1 12,656.1 9,836.5 3,386.8 7,674.9 4,123.3 1,903.8 809.2 5,237.3 6.0 51.0 NA NA (90.4) (8.6) (2.9) (0.6) 1.7 0.1 0.4 NA NA (1.2) (0.2) (0.2) (0.1) 0.0 (0.2) (1.3) (0.6) (0.6) (0.6) 0.0 (0.1) (1.1) 0.4 10.1 11.7 15.9 6.0 10.3 0.1 6.1 9.4 (18.9) 119.7 118.9 8.5 1,845.4 4.5 2.1 2.0 0.0 (21.1) (0.1) 1.8 1.7 0.4 (1.1) (1.7) (2.5) 3.7 4.6 0.1 4.2 53.9 58.1 128.5 1.0 0.5 Global Global equity markets fell on Friday after data showed the American economy generated a greater-than-expected number of jobs in May, signaling the Federal Reserve will likely continue raising interest rates in its effort to curb inflation. On Wall Street, all three major indexes were led lower by sell-offs in the technology, consumer discretionary, communication services, financials, and industrials sectors. The DJIA fell 1.1%, the S&P 500 lost 1.6% and the Nasdaq 100 dropped 2.7% while the pan-European STOXX 600 index fell 0.3% with volumes expected to be subdued due to holidays in Britain. Japan’s Nikkei index closed 1.3% higher, almost two-month high on Friday, boosted by gains in shares of Fast Retailing after it reported robust domestic sales. China’s stock was closed for the Dragon Boat Festival on Friday. Markets in Hong Kong and Taiwan was also shut. GCC Saudi Arabia's benchmark index rose 0.4% on Sunday after a survey showed that non-oil private sector continued its strong growth in May as demand withstood rising output costs. Among the stocks, oil giant Saudi Aramco advancing 1.1%, while Al Rajhi Bank was up 0.5%. No trading happened in Dubai and Abu Dhabi stock markets as the exchange remained closed. Qatar The Qatari benchmark index rose 0.1% on Sunday. Ezdan Holding Group (+2.9%) and Doha Insurance (+2.3%) were the top gainers of the day. Out of the 46 traded stocks, 29 advanced, 14 declined and 3 remained unchanged. Total traded volume in the market was lower than the previous trading session. The Real Estate index advanced 1.6% and the Consumer Goods & Services index increased by 0.8% while the Banks & Financial Services l index ended lower by 0.7%. Source: Refinitiv Eikon QATAR MARKET OVERVIEW Dividend Value Traded Yield (%) (USD mn) Qatar DSM Index P/E (x) P/B (x) Qatar All Share 15.2 1.5 3.4 121.2 DSM 20 15.2 1.6 3.5 101.1 Saudi Arabia (TASI) 20.0 2.6 2.5 1,316.6 UAE (ADX) 21.2 2.7 2.0 359.4 UAE (DFM) 13.1 1.1 0.0 4.7 Kuwait (KSE) 12.6 1.7 2.7 214.7 Oman (MSM) 10.7 0.7 5.2 1.2 Source: Refinitiv Eikon Bahrain (BAX) 7.3 1.0 4.3 0.7 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 EZDAN HOLIDING DOHA INS CO GULF WAREHOUSI DOHA BK LTD BARWA REAL EST Top Losers DOHA INS CO QA ISLAMIC BK MANNAI CORP INDUSTRIES QAT MASRAF AL RAYA 1.3 2.1 4.5 2.7 3.5 2.0 21.9 9.1 17.8 4.6 0.0 0.0 0.1 0.0 0.1 (0.1) (0.6) (0.2) (0.3) (0.1) 2.9 2.3 2.3 1.6 1.5 Performance YTD YoY (%) (%) (0.2) 6.8 (0.5) (15.9) 12.7 (5.4) (2.6) (2.2) (1.5) (1.3) Source: Refinitiv Eikon; Note: Prices are in local currency. 4.3 19.6 91.6 15.1 (1.4) (24.7) 1.2 (12.1) (3.5) 8.2 1.0 26.7 151.4 38.2 3.0 Vol. (‘000) P/E TTM 33,285.4 5.0 2,287.3 4,136.3 2,634.4 NA 12.4 11.6 11.5 11.6 36.5 4,921.2 160.1 2,439.4 17,802.0 12.1 15.0 16.2 11.6 20.8 14,800 14,400 14,000 13,600 13,200 12,800 12,400 12,000 11,600 9-Mar 12,806.1 600.0 400.0 200.0 0.0 23-Mar 6-Apr 20-Apr Index Volume (mn) 4-May 18-May 1-Jun Index Value Closing Level 5,423.6 8,705.8 4,858.5 2,671.8 1,868.6 1,128.7 4,133.2 1D Change (%) (0.7) 0.7 0.6 (0.0) 1.6 (0.0) 0.4 Source: Refinitiv Eikon Qatar Trading Summary Buy (%) Sell (%) Qatari Individuals 39.8 52.2 Qatari Institutions 18.7 26.4 Qatari – Total 58.5 78.6 Foreign Individuals 16.2 14.9 Foreign Institutions 25.3 41.5 6.5 21.4 Foreign – Total Source: Qatar Exchange 1
2. June 6 , 2022 GLOBAL NEWS  Tesla CEO Elon Musk has a super bad feeling about the economy and wants to cut about 10% of jobs at the electric carmaker, he said in an email to executives seen by Reuters. (Source: Reuters)  Frontier Group Holdings Inc said it has agreed to pay a break-up fee of USD 250mn in a bid to salvage its USD 2.9bn acquisition of Spirit Airlines Inc that would create the fifth-largest US airline. (Source: Reuters)  Spain's Acerinox and Dutch company Aperam are in preliminary talks about a possible merger, they said, a move that could create a global leader in stainless steel and Europe's biggest producer. (Source: Reuters)  EU countries and EU lawmakers are set to agree on a common charging port for mobile phones, tablets and headphones on June 7 when they meet to discuss a proposal that has been fiercely criticised by Apple. (Source: Reuters)  Rising prices of daily necessities could hurt household sentiment, BoJ Governor Haruhiko Kuroda said on Friday, suggesting that mounting inflationary pressure is emerging as a risk to the country's fragile economy. (Source: Reuters)  Toshiba Corp. said it has received 10 business strategy proposals from potential partners, eight of which recommend that the Japanese conglomerate go private to raise its corporate value. (Source: Reuters)  China's Ministry of Industry and Information Technology pledged to strengthen support for the industrial economy despite mounting downward pressure, as part of efforts to stabilize the country's economic fundamentals. (Source: China Daily)  China's major ports handled over 23mn twenty-foot equivalent units (TEUs) of containers in May, up 4.2% from a year ago, according to the Ministry of Transport. (Source: China Daily)  Turkey's annual inflation rate jumped to a 24-year high of 73.5% in May, fuelled by the war in Ukraine, rising energy prices and a tumbling lira though the figure was slightly lower than economists had feared. (Source: Reuters) GCC NEWS  Etisalat Egypt, a subsidiary of UAE’s Etisalat Group has signed commercial agreements with Telecom Egypt, worth EGP 17bn (USD 912.5mn) for a period of 10 years, in the areas of infrastructure, availability, and roaming services. (Source: Arab News)  Masdar has signed an agreement with the Ministry of Energy of the Republic of Azerbaijan to develop clean and renewable energy projects in the country with a combined capacity of 4,000 MW, the company said in a statement. (Source: Arab News)  Emirates Nuclear Energy Corporation has announced that 97% of the work has been completed on the Barakah Nuclear Energy Plant being developed in the Al Dhafra region of Abu Dhabi in co-ordination with Korea Electric Power Corporation, the JV partner and prime contractor of the plant. (Source: Trade Arabia)  The trade volume between Saudi Arabia and the US reached SAR 92.5bn (USD 24.7bn) in 2021, an increase of 22% from 2020, as nonoil exports from the Kingdom to the US witnessed a record high, a report showed. (Source: Arab News)  Saudi Arabia’s PMI remained unchanged from April at 55.7, according to a press release from S&P Global. (Source: Arab News)  Saudi Arabia raised oil prices for its largest market in Asia more than expected as major economies in the region eased coronavirus restrictions, helping boost demand, Bloomberg reported. (Source: Arab News)  The total number of PoS transactions in Saudi Arabia fell in April by 71mn compared to March, according to data collected by Arab News from a recent monthly report from the Saudi Central Bank. (Source: Arab News)  Saudi Arabia’s PIF has signed a USD 185mn subscription agreement with Capital Bank Group, to have a 23.97% stake in the group’s capital upon subscription. (Source: Arab News)  The Saudi Paper Manufacturing Co. signed a SAR 300mn (USD 80mn) deal to purchase a tissue paper manufacturing machine for its fifth production line from Italian firm Toscotec. (Source: Arab News)  Buoyed by strong bilateral trade totaling USD 3.5bn annually, Saudi Arabia and Spain look to play a key role in strengthening global tourism as both the countries continue to share strong business relationships. (Source: Arab News)  Saudi Electricity Co. has extended the tender closing date for the contract to build an electricity interconnection network between Saudi Arabia and Jordan by two months to the end of July, MEED reported. (Source: Arab News)  Red Sea Farms is planning to widen the scope of its greenhouse space in Saudi Arabia to 100 hectares in the next three years, said a top executive of the company. (Source: Arab News)  Petromin’s new venture Electromin aims to kick-start confidence in customers’ minds to buy EV, even as the company recently opened 100 EV charging stations in Saudi Arabia, according to its group CEO. (Source: Arab News)  International Seafood Co. has inked a construction contract with a leading local contractor to establish a complex for canning tuna, sardines and other seafood product at a cost of OMR 14mn. (Source: Oman Obsever)  Takaful Oman’s long-term growth strategy and to meet the company’s solvency requirement, it is gearing for a rights issue of 150mn shares for 41 Baisa per share. (Source: Times of Oman)  Mondelez Bahrain Biscuits has signed a solar power purchase agreement with Yellow Door Energy, a leading provider of sustainable energy for businesses in the region, for setting up a solar plant with a capacity of 2.3mw. (Source: ABC- Bahrain)  London based Linklaters had advised Bahrain’s state oil and gas company, nogaholding, on its first sustainability-linked loan, a refinancing and upsizing of its USD 1.6bn murabaha facility to USD 2.2bn. (Source: Trade Arabia)  Bahrain’s iGA has been honoured for its Digital Policies project at the World Summit on the Information Society Forum 2022. (Source: ABCBahrain)  STC Bahrain has been awarded the status of Approved Employer for the second time by the ACCA. (Source: ABC- Bahrain)  Kuwait-based contractor Spetco signed a USD 295mn financing deal with four banks to finance the USD 398mn JPF 4 upstream oil and gas project, MEED reported. (Source: Arab News)  One of the foreign banks operating in Kuwait has verbally informed the regulatory authorities that it plans to close its branch in Kuwait, reports Al-Rai daily. (Source: Arab Times) QATAR NEWS  Masraf Al Rayan signed a sponsorship agreement with Estithmar Holding through its subsidiary, Elegancia Ventures Real Estate Development, whereby Masraf Al Rayyan will be one of the main sponsors of Doha Winter Wonderland. (Source: The Peninsula)  Qatar International Centre for Conciliation and Arbitration at Qatar Chamber held a hybrid seminar titled Collaborative Contracts in Construction Projects. (Source: The Peninsula) 2
3. June 6 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0748 USD/QAR 3.6400 130.8600 EUR/QAR 3.9123 USD/JPY GBP/USD 1.2515 JPY/QAR 0.0278 USD/CHF 0.9624 GBP/QAR 4.5555 USD/CAD 1.2593 CHF/QAR 3.7822 AUD/USD 0.7206 CAD/QAR 2.8905 NZD/USD 0.6509 AUD/QAR 2.6230 USD/INR 77.0923 INR/QAR 0.0472 USD/TRY 16.4126 TRY/QAR 0.2218 USD/ZAR 15.5296 ZAR/QAR 0.2344 USD/BRL 4.7734 BRL/QAR 0.7626 FX Commentary The USD edged up on Friday after a better-than-expected US employment report pointed to a tight labor market that could keep the Federal Reserve on an aggressive path of interest rate hikes. The US Dollar index rose 0.3% at 102.14. Nonfarm payrolls increased by 390,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. The EUR/USD went down 0.3% at 1.0718. The GBP/USD traded down 0.7% to 1.2485. The USD/JPY traded up 0.8% at 130.86 as the BoJ stuck to its superlow interest rate policy stance. The USD/CNY ended flat at 6.6607. The USD/CAD traded up 0.2% at 1.2593. The AUD/USD went down 0.8% at 0.7206. The NZD/USD was down 0.8% at 0.6509. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.82 0.08 1.12 1.63 2.78 (0.65) (0.57) (0.54) (0.33) 0.49 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 1.62 1.56 1.91 3.02 3.34 EIBOR 0.88 0.94 1.20 1.72 2.64 2.0% BMIBOR 1.60 1.78 2.52 2.78 3.73 KIBOR 0.81 1.31 1.63 1.88 2.44 Source: Refinitiv Eikon 3.01% 2.0% 0.0% 2.85% 3.48% 2.94% 2.94% 3.10% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 2.97% 3.00% 2.97% 1.51% 1.20% 0.84% 2.86% 1.92% 3 Yrs Qatar 5 Yrs Current 7 Yrs 10 Yrs Last Year Source: Refinitiv Eikon 30 Yrs Spread 6M Change 5 Years CDS Spread 6M Change US 15.9 1.6 Turkey 713.5 UK 11.2 0.6 Brazil 224.8 (5.0) Germany 11.0 1.9 Egypt 750.4 256.1 Abu Dhabi France 0.22% 2 Yrs 2.66% 4.40% 3.22% Source: Refinitiv Eikon, Investing.com US Swap Rates 4.0% 3.07% 2.86% 21.5 1.5 Italy 127.1 41.4 Greece 150.3 Russia Japan 177.1 58.7 14.1 Bahrain 312.3 16.3 114.1 Dubai 119.8 27.7 12,840.2 12,727.4 Qatar 61.2 16.6 20.2 0.6 Saudi Arabia 62.2 9.6 Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event 05:00 Japan All Household Spending YoY Period Survey Prior Apr -0.8% -2.3% 05:00 Japan All Household Spending MoM 17:00 US Employment Trends Apr 1.3% 4.1% May NA 120.18 02:01 UK BRC Retail Sales YoY 02:30 Japan Overtime Pay May NA -1.7% Apr NA 02:50 Japan 2.5% Foreign Reserves May NA 1,322.2bn 08:00 08:00 Japan Coincident Index Apr NA 0.2 Japan Leading Indicator Apr NA 0.7 Source: Refinitiv Eikon 3
4. QSE MAIN FINANCIAL INDICATORS (as on 5th 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 (%) 2.62 2.64 2.19 2.79 3.53 3.48 3.70 0.00 0.00 0.00 1.23 0.77 2.77 3.48 0.00 0.00 3.53 1.64 4.23 0.00 3.26 4.95 2.86 3.86 3.81 6.00 5.57 0.00 4.56 4.39 0.00 4.05 0.00 3.94 4.80 4.15 5.85 0.00 1.95 4.68 3.89 3.68 3.74 5.07 0.00 0.00 3.65 4.05 3.74 3.96 3.47 2.21 3.21 3.25 2.73 P/B Ratio (x) 2.00 2.12 1.25 0.60 1.38 1.96 1.38 1.71 0.67 1.35 0.90 2.45 1.70 3.02 7.53 0.70 2.01 1.62 2.04 2.08 1.92 2.51 1.55 1.94 0.86 1.11 3.00 2.07 1.50 0.94 1.09 2.12 2.07 1.84 2.04 0.75 0.86 0.33 1.84 2.84 3.66 0.76 0.48 0.66 1.07 1.06 0.62 1.02 1.52 1.20 0.64 1.28 2.21 1.16 2.17 June 6, 2022 P/E Ratio (x) 15.50 14.88 13.81 11.50 14.94 17.93 20.92 7.77 0.00 12.88 102.00 32.56 15.70 25.60 202.91 20.61 26.79 86.55 18.16 0.00 16.36 19.13 26.32 20.32 9.92 14.13 11.64 67.07 13.00 23.12 25.32 17.73 67.07 11.92 13.02 14.05 12.37 16.47 25.27 14.53 18.33 14.91 14.49 11.64 526.77 0.00 14.77 46.30 18.38 32.16 12.48 11.59 14.64 13.53 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) 21.00 21.81 7.30 2.69 4.05 10.77 4.60 1.45 0.90 1.70 0.82 6.46 17.80 2.17 0.95 7.09 3.65 17.97 3.02 9.20 18.20 1.85 3.15 5.00 17.95 2.17 17.55 1.14 1.95 2.72 2.17 2.03 2.41 2.05 1.98 3.84 8.55 5.66 1.47 3.45 1.34 0.91 7.41 1.60 8.65 4.52 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