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GCC Daily Market Update - 7 July

IM Insights
By IM Insights
1 month ago
GCC Daily Market Update - 7 July

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  1. July 7 , 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) 3,845.1 31,037.7 11,852.6 7,107.8 12,594.5 5,912.4 2,408.2 26,423.6 21,586.7 3,355.3 53,751.0 13.7 69.9 72.7 82.3 193.3 117.4 36.9 (315.8) (266.4) (48.7) 616.6 0.4 0.2 0.6 1.2 1.6 2.0 1.6 (1.2) (1.2) (1.4) 1.2 1.6 0.9 3.0 (0.9) (1.5) (0.2) 0.1 (1.1) (1.2) (1.3) 1.4 (19.3) (14.6) (27.4) (3.7) (20.7) (17.3) 29.6 (9.3) (7.7) (7.8) . (7.7) 12,060.8 11,416.5 9,251.1 3,061.8 7,383.6 4,124.4 1,868.6 741.3 4,892.5 (202.2) 72.0 (19.4) (60.0) (87.9) 5.6 (8.1) 0.1 20.4 (1.6) 0.6 (0.2) (1.9) (1.2) 0.1 (0.4) 0.0 0.4 (1.1) (0.9) (1.3) (5.0) (0.3) 0.0 1.6 (1.1) 1.4 3.7 1.2 9.0 (4.2) 4.8 (0.1) 4.0 0.2 (24.2) 100.7 98.5 5.5 1,734.9 3.4 (2.1) (1.0) (0.0) (26.9) (0.0) (2.0) (1.0) (0.2) (1.5) (0.2) (12.3) (6.8) 1.6 (3.8) (8.0) 29.5 31.0 47.7 (5.1) (23.3) Source: Refinitiv Eikon QATAR MARKET OVERVIEW Qatar DSM Index P/E (x) P/B (x) Qatar All Share 14.5 1.5 3.6 115.5 DSM 20 14.6 1.5 3.7 104.8 Saudi Arabia (TASI) 18.8 2.6 3.0 1,320.1 UAE (ADX) 20.0 2.5 2.1 359.4 UAE (DFM) 13.1 1.1 0.0 63.2 Kuwait (KSE) 12.1 1.6 2.9 200.7 Oman (MSM) 11.1 0.8 5.2 5.6 Source: Refinitiv Eikon Bahrain (BAX) 7.2 1.0 4.4 2.3 QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation GCC Fundamentals Dividend Value Traded Yield (%) (USD mn) Global Wall Street put a seesaw day behind it to close higher on Wednesday, as investors digested new clues on the US central bank's approach to rate policy and its inflation fight detailed in the minutes from the latest Federal Reserve meeting. The DJIA rose 0.2%, the S&P 500 gained 0.4%, and the Nasdaq 100 added 0.6%. European shares rallied on Wednesday after Norwegian oil and gas workers ended their strike, easing energy supply worries. The continent-wide STOXX 600 was up 1.7%. In Asia, Japan’s Nikkei fell 1.2% on Wednesday after a two-day rally, dragged down by energy stocks. Shanghai shares dropped the most in six weeks on Wednesday, and Hong Kong’s stock benchmark fell more than 1%, as China continued to grapple with COVID-19 flare-ups, while energy stocks tracked a sell-off in the global oil market. GCC Most stock markets in the Gulf ended lower on Wednesday. Saudi Arabia's benchmark index reversed early losses to close 0.6% up, ending four sessions of losses, with Al Rajhi Bank rising 2% and Riyad Bank advancing 2.8%. Dubai's index falling most at 1.9%, dragged down by a 2.8% fall in Emaar Properties and a 2.7% decline in Dubai Islamic Bank. In Abu Dhabi, equities eased by 0.2%, hit by a 0.4% fall in conglomerate International Holding. Qatar The Qatari benchmark index finished 1.6% down on Wednesday hit by a 5%in Gulf International Services. Qatar Electricity & Water (+0.9%) and Qatar Industrial Manufacturing (+0.8%) were the top gainers of the day. Out of the 44 traded stocks, 11 advanced and 32 declined and 1 remained unchanged. Total traded volume in the market was higher than the previous trading session. The Insurance index gained 0.2% while Consumer Goods & Services index declined 2.8% Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers QA ELEC & WATE QA INDUS MANF QATAR INS CO QA INTL IS BK NA Top Losers GULF INTR SERV MANNAI CORP QAT GER MED DE INDUSTRIES QAT SALAM INTL INV 17.6 3.4 2.4 11.3 NA 2.0 7.8 1.4 15.3 0.8 0.2 0.0 0.0 0.0 NA (0.1) (0.4) (0.1) (0.6) (0.0) 0.9 0.8 0.6 0.2 NA (5.0) (4.6) (4.3) (3.8) (3.8) Performance YTD YoY (%) (%) 5.8 9.1 (13.3) 22.7 NA 14.6 64.3 (54.9) (1.5) (3.1) Source: Refinitiv Eikon; Note: Prices are in local currency. 5.4 18.9 (2.5) 20.5 NA 30.3 103.8 (50.7) 13.7 (17.8) Vol. (‘000) P/E TTM 417.7 37.5 194.6 1,394.6 NA 13.0 10.5 13.9 18.8 NA 15,899.5 207.0 4,408.7 2,557.4 5,662.2 25.5 13.9 NA 9.9 17.2 16,000 15,000 14,000 13,000 12,000 11,000 10,000 10-Apr 12,060.8 600.0 400.0 200.0 0.0 24-Apr 8-May 22-May Index Volume (mn) 5-Jun 19-Jun 3-Jul Index Value Closing Level 5,152.0 8,127.6 4,298.0 2,616.3 1,732.9 1,165.7 4,144.3 1D Change (%) (1.1) (2.8) (2.7) 0.2 (0.9) (0.8) (0.9) Buy (%) Sell (%) 31.9 29.6 Source: Refinitiv Eikon Qatar Trading Summary Qatari Individuals Qatari Institutions 13.1 21.3 Qatari – Total 45.0 50.9 Foreign Individuals 11.9 12.4 Foreign Institutions 43.1 416.0 Foreign – Total 55.0 428.4 Source: Qatar Exchange 1
  2. July 7 , 2022 GLOBAL NEWS  A New York judge held real estate firm Cushman & Wakefield PLC in contempt of court for not producing documents subpoenaed in a probe of former US President Donald Trump's business practices. (Source: Reuters)  The US government reassigned 16 peak-hour runway timings at congested Newark Airport in New Jersey to Spirit Airlines from Southwest Airlines, saying this would boost competition and help reduce costs for travelers. (Source: Reuters)  Two laid-off Tesla workers filed an emergency motion to stop the electric car maker for allegedly seeking separation agreements for far less severance than legally required. (Source: Reuters)  Airline SAS headed into the third day of a crippling pilot strike which sent new bookings tumbling and prompted the cancellation of well over half its flights on Wednesday. (Source: Reuters)  Nearly 90% of Japanese felt prices rising from a year earlier, the highest in 14 years, a BoJ survey showed Wednesday, as Russia's war against Ukraine and a sharp drop in the yen have sent energy and food prices higher. (Source: Mainichi)  Saudi Arabia's Advanced Petrochemicals Co. said on Wednesday its Q2-22 net profit more than halved to SAR 110mn (USD 29mn) from SAR 265mn in the year-ago period. The result fell short of the analysts’ estimate of SAR 132.3mn, as per data provider Refinitiv. (Source: Zawya)  Saudi King Salman bin Abdulaziz Al Saud has issued a royal decree ordering the allocation of SAR 20bn (USD 5.33bn) as a financial support to tackle the effects of the rising global prices. Of this half of the allocated money will go to social insurance beneficiaries and for the Citizen Account Programme, reported SPA. (Source: Trade Arabia)  US-based Tyson International Holding Co., a wholly owned subsidiary of Tyson Foods Inc., is acquiring a stake in two of Saudi-based Tanmiah Food Co.’s wholly owned subsidiaries, Agricultural Development Co. and Supreme Foods Processing Co., for USD 70mn. (Source: Zawya)  Construction work on the first phase of the SAR 26bn (USD 7bn) Thakher Makkah, one of the largest projects in the Saudi city of Makkah, is almost complete, according to Thakher Development Company, the master developer of the project. (Source: Trade Arabia)  Oman Oil Marketing Company and Sohar Port and Freezone have signed a bunker license agreement for OOMCO to provide marine fuels to vessels visiting Sohar Port and also at the anchorage area. (Source: Times of Oman)  Japan's tax revenue in fiscal 2021 hit JPY 67.04tn (USD 495bn), up 10.2% from the previous year and setting a record for the second straight year, as the economy continues on its recovery track from the coronavirus pandemic, the Finance Ministry said. (Source: Mainichi)  The Kingdom of Bahrain’s Business Confidence Index has shown that 89% of investors expect stability in the investment climate in the Q222. (Source: Trade Arabia)  US electric vehicle maker Tesla Inc sold around 78,000 China-made vehicles in June, preliminary estimates published by the China Passenger Car Association showed. (Source: Reuters)  GFH Financial Group has announced its acquisition of a USD 300mn student housing portfolio affiliated to select top-rated universities located in Texas, Michigan and Missouri in the US. (Source: Trade Arabia)  Turkey’s trade deficit grew by 155.2% YoY in May 2022, driven by a relative rise in the value of imports to exports owing primarily to a steep increase in the cost of imported energy. (Source: Trade Arabia)  Kuwait Finance House has agreed to fully acquire Ahli United Bank for USD 11.6bn. KFH plans to offer one share per 2.695 shares of Ahli United, implying a USD 1.04 offer price, according to Bloomberg. GCC NEWS  Al Masaood Power Division, leaders and experts in power solutions, has signed a distribution agreement with Sunstream International to spearhead the future of solar panel solutions in the GCC. (Source: Trade Arabia)  Rising oil prices and inflationary pressures have taken a toll on the UAE’s non-oil economy, with businesses witnessing their input costs increasing at the fastest pace for 11 years at the halfway point of 2022, according to S&P Global. (Source: Arab News)  Forbes Middle East has named Bader Nasser Al-Kharafi, the CEO of Zain Group. as one of the top 100 CEOs in the Middle East for 2022. (Source: Arab News)  KPMG Lower Gulf has signed an MoU with CPX Holding, a UAE-based provider of digital-first cybersecurity solutions and services, to boost cybersecurity maturity in the UAE and help governments and businesses protect their data. (Source: Zawya)  UAE-based Azizi Developments has announced that it has sold 90% of its released units at Beachfront, the developer’s three premium lagoon-facing towers within its flagship waterfront project Riviera at MBR City in Dubai. (Source: Zawya)  Saudi Telecom Co. has received the CMA’s nod to increase its capital from SAR 20bn to SAR 50bn (USD 13bn) by issuing 1.5 bonus shares per existing share. The capital hike will increase the number of shares from 2bn to 5bn, a CMA statement revealed. (Source: Arab News)  Saudi developer Jabal Omar Development Co. has received approval from the CMA to increase its capital by SAR 5.3bn (USD 1.4bn). The listed company will finance the capital plan by converting debt, according to a statement by CMA. (Source: Arab News) (Source: Arab News)  The Kuwait Public Transportation Company has approved to reduce the company’s capital from KWD 49mn to 15mn based on the proposal of its Board of Directors to reduce KWD 34mn to address the accumulated losses. The proposal was based on the financial statements that ended on December 31, 2020 amounting to KWD 36.5mn, leaving a loss amount of KWD 2.5mn, reports Al-Nahar daily. (Source: Arab Times) QATAR NEWS  The Qatari economy achieved a Real Economic Growth Rate at constant prices of 2.5% during the Q1-22 on an annual basis, according to the preliminary estimates of the GDP issued in a press release by the PSA. (Source: The Peninsula)  QCB issued treasury bills for July, for three, six and nine months, with a value of QAR 600mn. QCB said that the treasury bills were distributed as follows: QAR 300mn for 3M at an interest rate of 0.75%, QAR 200mn for 6M at an interest rate of 2.02%, and QAR 100mn for 9M at an interest rate of 2.29%. (Source: The Peninsula)  QatarEnergy announced the selection of Shell plc. as partner in the North Field East expansion project, the single largest project in the history of the LNG industry. (Source: The Peninsula)  Qontrac Shipping Services was awarded with ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certifications by Lloyds Register, Qatar. (Source: The Peninsula)  Qatargas Operating Company Limited sponsored and presented the Best Overall Prizes for the first, second and third place winning teams at the 18th Annual Plant Design Competition, organized by Qatar University's Department of Chemical Engineering. (Source: The Peninsula) 2
  3. July 7 , 2022 FX RATES Currencies Value Currencies Value EUR/USD 1.0211 USD/QAR 3.6400 135.9300 EUR/QAR 3.7168 USD/JPY GBP/USD 1.1960 JPY/QAR 0.0268 USD/CHF 0.9706 GBP/QAR 4.3534 USD/CAD 1.3036 CHF/QAR 3.7503 AUD/USD 0.6775 CAD/QAR 2.7923 NZD/USD 0.6147 AUD/QAR 2.4661 USD/INR 78.5200 INR/QAR 0.0464 USD/TRY 17.2098 TRY/QAR 0.2115 USD/ZAR 16.7987 ZAR/QAR 0.2167 USD/BRL 5.4287 BRL/QAR 0.6705 FX Commentary The USD rose 0.5% at 107.07, fresh 20-year highs on Wednesday as traders sought out this safe haven in the face of renewed recession fears, soaring gas prices, and political uncertainty in the UK. The EUR/USD slipped 0.8% to 1.0181. The BoE was the first major central bank to increase borrowing costs to try to tame soaring inflation but has been overtaken by a hawkish US Federal Reserve. The GBP/USD went down 0.2% at 1.1930. The USD/JPY traded up 0.04% at 135.93 after Japanese households' inflation expectations strengthened in the three months to June, with the ratio of homes expecting price rises over the coming year hitting the highest level in 14 years. The USD/CNY went down 0.2% at 6.7080. The USD/CAD ended flat at 1.3036. The AUD/USD went down 0.4% at 0.6775. The NZD/USD traded down 0.3% at 0.6147. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration Overnight 1 Week 1.56 0.08 1.79 2.35 3.59 (0.65) (0.57) (0.46) (0.15) 0.94 LIBOR EURIBOR 1 Month 3 Month 1 Year QAIBOR 2.25 2.25 2.35 2.45 2.75 SAIBOR 1.95 1.88 1.85 2.87 3.55 EIBOR 1.51 1.62 1.88 1.95 3.20 BMIBOR 2.33 2.57 3.32 3.61 4.75 KIBOR 1.06 1.56 1.81 2.13 2.69 Source: Refinitiv Eikon 3.23% 2.0% 0.0% 6.0% 3.46% 4.0% 3.33% 2.97% 2.0% 2.98% 4.64% 3.59% 3.67% 2.96% 2.92% 3.12% 5 Yrs 10 Yrs US 30 Yrs 0.0% 2 Yrs 5 Years CDS 2.99% 2.99% 2.97% 1.31% 1.09% 0.86% 2.84% 1.65% 3 Yrs Qatar 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs Source: Refinitiv Eikon Spread 6M Change 5 Years CDS Spread 6M Change US 18.5 6.8 Turkey 853.3 UK 14.3 3.7 Brazil 298.1 87.7 Germany 14.0 4.9 Egypt 1,059.0 579.0 Abu Dhabi France 0.29% 2 Yrs Qatar vs US Treasuries Yields Source: Refinitiv Eikon, Investing.com US Swap Rates 4.0% SOVEREIGN YIELD CURVES & CDS SPREAD 281.0 25.0 5.0 68.2 23.6 Italy 139.4 49.2 Bahrain 336.6 40.5 Greece 173.8 68.2 Dubai 134.6 42.5 Russia 12,840.2 12,716.0 Qatar 69.7 25.2 Japan 32.3 14.7 Saudi Arabia 74.1 23.6 Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event 11:30 Germany Industrial Output MoM Period Survey Prior May 0.4% 11:30 UK 0.7% Halifax House Prices MoM Jun NA 12:15 1.0% France Reserve Assets Total Jun NA 2,37,654mn 18:00 US International Trade USD -87.1bn 18:00 US Initial Jobless Clm 18:00 Canada 05:20 17:45 May -85.0bn 2 Jul, w/e 230k 231k Trade Balance CAD May 2.40bn 1.50bn Japan Current Account NSA JPY May 185.6bn 501.1bn US ADP National Employment Jun 200k 128k 18:00 US Cont Jobless Clm 25 Jun, w/e 1.328mn 1.328mn 19:30 Canada Ivey PMI Jun NA 66.7 Source: Refinitiv Eikon GCC COMPANY RESULTS Company Name Advanced Petrochemical Co Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) 814.0 5.9 -6.0 NA NA NA Source: Refinitiv Eikon; Note: All figures are in local currency 3
  4. QSE MAIN FINANCIAL INDICATORS (as on 6th 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 (%) 2.82 2.46 2.48 3.02 3.44 3.32 4.23 0.00 0.00 0.00 1.43 0.95 2.89 3.56 0.00 0.00 3.70 1.64 4.45 0.00 3.85 5.35 3.37 4.00 3.58 6.05 6.56 0.00 4.55 4.72 0.00 4.38 0.00 5.10 5.28 4.19 5.77 0.00 2.36 4.68 4.11 3.76 4.02 5.17 0.00 0.00 3.90 3.87 3.75 3.80 3.41 2.45 3.20 3.22 2.73 P/B Ratio (x) 1.86 2.27 1.10 0.55 1.42 2.06 1.21 1.37 0.60 1.12 0.77 2.00 1.63 2.96 4.99 0.58 1.92 1.62 1.94 1.97 1.63 2.32 1.32 1.86 0.92 1.10 2.55 1.55 1.51 0.88 1.10 1.96 1.55 1.42 1.86 0.74 0.87 0.33 1.52 2.84 3.46 0.74 0.45 0.65 0.82 0.90 0.58 1.06 1.52 1.25 0.65 1.16 2.22 1.18 2.17 July 7, 2022 P/E Ratio (x) 14.39 15.93 12.20 10.62 15.31 18.81 18.29 6.23 0.00 10.66 87.73 26.56 15.08 25.03 134.49 17.15 25.54 86.79 17.25 0.00 13.87 17.67 22.37 19.52 10.55 13.99 9.89 50.12 13.02 21.50 25.55 16.40 50.12 9.22 11.83 13.90 12.55 16.62 20.88 14.53 17.34 14.57 13.47 11.42 403.54 0.00 13.88 48.47 18.34 33.49 12.68 10.46 14.68 13.70 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) 19.50 23.35 6.45 2.48 4.15 11.30 4.02 1.16 0.81 1.41 0.70 5.27 17.40 1.44 0.79 6.76 3.66 17.07 2.84 7.80 16.81 1.58 3.35 4.96 15.25 1.62 17.57 1.06 1.97 2.51 1.62 1.57 2.39 2.08 2.00 3.17 8.55 5.35 1.37 3.39 1.03 0.78 7.76 1.60 8.79 4.08 3.75 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