GCC Daily Market Update - 9 November

Transcription

1. November 9 , 2021 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) 4,701.7 36,432.2 16,336.0 7,300.4 16,046.5 7,047.5 1,608.5 29,507.1 24,763.8 3,498.6 60,545.6 4.2 104.3 (23.4) (3.6) (7.8) 6.7 25.0 (104.5) (106.7) 7.1 478.0 0.1 0.3 (0.1) (0.0) (0.0) 0.1 1.6 (0.4) (0.4) 0.2 0.8 2.1 1.7 3.1 0.9 2.3 3.2 5.7 2.1 (2.4) (1.4) 2.1 25.2 19.0 26.8 13.0 17.0 26.9 8.9 7.5 (9.1) 0.7 26.8 11,970.9 11,846.5 8,182.0 3,104.3 7,215.6 4,050.1 1,782.0 764.6 6,450.3 (2.2) 4.9 88.3 5.9 (3.3) (3.2) (3.7) 7.7 10.6 (0.0) 0.0 1.1 0.2 (0.0) (0.1) (0.2) 1.0 0.2 1.8 1.2 4.0 8.4 1.5 (0.6) 2.2 1.8 2.2 14.7 36.3 62.2 24.6 30.1 10.7 19.6 35.3 18.4 83.4 81.9 5.4 1,827.4 4.4 0.7 0.7 (0.1) 11.0 0.1 0.8 0.8 (1.6) 0.6 1.3 (1.5) (2.5) 4.6 1.8 0.1 61.1 68.9 113.7 (3.5) 25.4 Global US equities hit new highs on Monday as investors welcomed the passage of a US infrastructure spending bill. The benchmark S&P 500 extended its run of all-time closing highs to eight straight sessions while the blue-chip Dow notched up its second consecutive record closing high. Strength in commodity-linked sectors helped European stocks inch up to a record high close on Monday as the pan-European Stoxx 600 index rose 0.04%. While the CAC 40 gained, the DAX FTSE ended flat. Asian share markets were mixed on Monday as gains were capped by signs of weakening domestic demand in China and a tech-driven fall in Hong Kong. GCC Major stock markets in the Gulf ended higher on Monday. Saudi Arabia's benchmark index finished flat as gains in Financial stocks were offset by declines in Petrochemicals. However, oil giant Saudi Aramco was down 0.3%, extending losses from the previous session trading ex-dividend. Dubai's main share index added 0.2% with Dubai Financial Market surging 9.9%, extending gains for a fifth session, driven by plans for the launch of an AED 2bn (USD 545mn) market-maker fund and IPO. The Abu Dhabi index advanced 1.1%, hitting a record high, led by a 1.7% rise in First Abu Dhabi Bank and a 1.3% increase in conglomerate International Holding Co. Qatar The Qatari benchmark index closed marginally lower at 0.02% as Gulf Warehousing advanced 2.6% and Qatar Aluminum Manufacturing increased 2.5%. Out of the total 47 traded stocks, 24 advanced and 23 declined. Total traded volume in the market was higher than the previous trading session. The Telecoms index advanced 0.6%, Real Estate increased 0.4%, while the Industrials index ended lower by 0.5%. Source: Refinitiv Eikon QATAR MARKET OVERVIEW P/E (x) P/B (x) Qatar All share 15.7 1.6 2.5 137.8 DSM 20 15.4 1.7 2.5 115.8 Saudi Arabia (TASI) 22.5 2.8 2.2 1,974.6 UAE (ADX) 20.8 2.4 2.7 379.6 UAE (DFM) 15.0 0.9 2.6 209.8 Kuwait (KSE) 20.8 1.7 1.8 261.0 Oman (MSM) 10.5 0.8 3.5 4.1 Bahrain (BAX) 10.5 1.1 2.4 2.4 GCC Fundamentals Dividend Value Traded Yield (%) (USD mn) Source: Refinitiv Eikon Qatar Trading Activity Close 1D Change Price Value (%) Top Gainers GULF WAREHOUSI QATAR ALUMINIU DOHA BK LTD MANNAI CORP WIDAM FOOD CO Top Losers QAT GER MED DE QLM LIFE ALKHALEEJ GROU QATARI INV GRP QA INDUS MANF 5.0 2.0 3.0 4.9 4.1 3.2 5.0 4.3 2.4 3.1 0.1 0.0 0.1 0.1 0.0 (0.1) (0.1) (0.1) (0.0) (0.0) 2.6 2.5 2.1 1.4 1.2 (2.6) (1.7) (1.2) (1.1) (1.1) Performance YTD YoY (%) (%) (2.5) 104.2 25.9 62.2 (35.9) 44.5 0.0 128.2 33.2 (2.1) Source: Refinitiv Eikon; Note: Prices are in local currency. (0.2) 104.7 23.8 68.5 (41.5) 83.0 0.0 122.1 36.0 8.3 Vol. (‘000) P/E TTM 875.6 31,701.5 6,176.5 78.3 283.8 12.7 18.2 14.9 5.5 NA 1,159.6 7.0 5.1 1,216.3 30.2 122.1 17.9 NA 21.9 12.0 Qatar DSM Index 12,400 12,000 11,600 11,200 10,800 10,400 10,000 12-Aug 11,970.9 300.0 200.0 100.0 0.0 26-Aug 9-Sep 23-Sep Index Volume (mn) 7-Oct 21-Oct 4-Nov Index Value Source: Refinitiv Eikon QE Sector Indices Banks & Financial Services Consumer Goods & Services Industrials Insurance Real Estate Telecoms Transportation Closing Level 5,082.4 8,315.9 4,196.8 2,602.0 1,872.3 1,044.9 3,567.7 1D Change (%) 0.1 0.3 (0.5) (0.0) 0.4 0.6 0.0 Source: Refinitiv Eikon Qatar Trading Summary Buy (%) Sell (%) Qatari Individuals 41.0 43.2 Qatari Institutions 18.5 35.6 Qatari – Total 59.5 78.8 Foreign Individuals 10.9 14.5 Foreign Institutions 29.6 40.5 6.8 21.2 Foreign – Total Source: Qatar Exchange 1
2. November 9 , 2021 GLOBAL NEWS  Credit Suisse said on Monday it had struck a deal to refer hedge fund clients to rival BNP Paribas following the Swiss lender’s decision to exit prime broking and some derivatives businesses in the wake of the Archegos scandal. (Source: Reuters)  Abu Dhabi’s Waha Capital reported that its Q3-21 net profit had halved to AED 71mn (USD 19.33mn) from AED 143mn last year due to lower income from investments and higher impairment charges. (Source: Zawya)  The Capital Market Authority has allowed financial market institutions to accept subscriptions from non-Saudis in real estate funds that invest in assets within the boundaries of Mecca and Medina. (Source:  British defense company BAE Systems stuck to its guidance for earnings to grow by 3% to 5% YoY and said that demand for its products and services remained high. (Source: Reuters)   The European Investment Bank and Allianz Global Investors said on Monday they plan to raise EUR 500mn (USD 577.55mn) for a fund aimed at bolstering climate mitigation and adaptation in developing countries. (Source: Yahoo Finance) The number of investors in Saudi public funds rose to a new all-time high of 402,163 by the end of Q2-21, the latest statistical bulletin by the CMA revealed. This corresponded to a 5.2% QoQ and 14.8% YoY growth in the number of investors. (Source: Arab News)   Credit Suisse's key decision-making power for Asia-Pacific will stay in the region despite the previously separate division being integrated into the bank's broader structure as part of its new strategy, its regional chief executive said. (Source: Reuters) Saudi Arabia’s Kingdom Holding Co returned to profititability in 9M-21 after seeing its net profit jumping by 145%. The company made a net profit of SAR 612mn (USD 163mn) compared to a loss of SAR 1.37bn in 9M-20. (Source: Arab News)   Japanese premier Fumio Kishida's new advisory panel called for an USD 88bn university fund on Monday and another one aimed at backing research and development on digital and green innovation as pillars of the country's new growth strategy. (Source: Reuters) Saudi-based Dallah Health’s Q3-21 net profit jumped 60.7% to SAR 86.5mn (USD 23mn) after an increase in operating income, investment income and gains from subsidiaries. Revenues soared from SAR 350.8mn to SAR 544.1mn over the same period. (Source: Zawya)  Alkhaleej Training Company starts its offering and tradable rights trading period as of Monday, to increase its capital from SAR 450mn (USD 119.9mn) to SAR 650mn (USD 173.2mn). (Source: Arab News)  Saudi fintech company Geidea has signed a partnership with the Saudi telecom giant's sales and distribution arm, channels by STC, to simplify digital payments for small firms in the kingdom. (Source: Arab News)  Investcorp, a Bahrain-based asset manager which counts Mubadala Investment Company as its biggest shareholder, announced that it has completed the acquisition of ten UK industrial assets, comprising approximately 660,000 sq ft, via four transactions for a combined purchase price of 56.7mn. (Source: Emirates News Agency)  SoftBank Group Corp slumped to a quarterly loss as its Vision Fund unit took a USD 10bn hit from a decline in the share price of its portfolio companies and as China's regulatory crackdown on tech firms weighed. (Source: Reuters)  Proxy advisory firm ISS followed rival Glass Lewis & Co in recommending shareholders of Japan's Shinsei Bank Ltd to vote for the lender's plan for a poison pill defense against an unsolicited USD 1.1bn bid from SBI Holdings Inc. (Source: Reuters)  Some holders of offshore bonds issued by a unit of developer China Evergrande Group had not received interest payments due on 6th November by Monday morning in Asia, two people familiar with the matter revealed. (Source: Reuters)  US electric vehicle maker Tesla Inc sold 54,391 China-made vehicles in October including 40,666 for export, according to the China Passenger Car Association. (Source: Reuters) GCC NEWS  The UAE will require all gold refineries to undergo annual audits to ensure their suppliers are responsible in an effort to combat illicit trading. (Source: Reuters)  UAE’s Energy Minister Suhail al-Mazrouei said insufficient investments in the oil and natural gas industry could lead to a hike in energy prices. He asserted that oil and gas are needed to ensure reliable supply of energy during the transition period required to implement non-carbon emitting projects. (Source: Reuters)  Etihad Rail has announced the completion of 50% of the construction works of the marine rail bridge in the UAE as part of Package B of Stage Two of the UAE National Rail Network. The marine rail bridge extends over 1 km, connecting Khalifa Port with the UAE National Rail Network. (Source: Emirates News Agency)  Fertiglobe reported a more than 20x increase in profit for Q3-21 on higher ammonia and urea prices. Net profit attributable to shareholders jumped to USD 137.7mn in Q3-21 from USD 6.2mn in Q321. (Source: Reuters)  State-owned AD Ports Group’s subsidiary MICCO Logistics has expanded its ground fleet with the acquisition of 31 tipper trucks to tap into the construction and metals manufacturing sectors, according to a statement on Monday. (Source: Zawya) Arab News) QATAR NEWS  S&P Global Ratings on Monday said it has affirmed its AA-/A-1+ longand short-term foreign and local currency ratings on Qatar, citing that the outlook is stable for the country. (Source: Zawya)  Qatar took part in the 114th meeting of the GCC Financial and Economic Cooperation Committee, which was hosted by the Kingdom of Bahrain with the participation of the GCC Ministers of Finance, Economy and Planning. (Source: The Peninsula)  Qatar has ordered six vessels from South Korea, Bloomberg reported. The gas-rich country is buying four ships from Daewoo Shipbuilding and Marine Engineering and two from Samsung Heavy Industries. The vessels procurement is part of a USD 19bn signed between Qatar and the two Korean firms last year, state producer Qatar Energy said. (Source: Arab News)  Industries Qatar and its group companies are implementing several initiatives to minimize their environmental impacts. The initiatives include establishing near zero liquid discharge plant, according to the Sustainability Report released by IQ. (Source: The Peninsula)  Qatar Free Zones Authority and Google Cloud recently co-hosted the “Qatar Leaders Connect at Google Next ’21”. The event highlighted the latest technologies, new research, and developments to enhance the digital business transformation and applications of the Cloud. (Source: The Peninsula)  Vodafone Qatar has announced that it is the official Innovation Partner of Hospitality Qatar 2021, a flagship exhibition that provides a platform for experts to showcase the latest products and solutions in the industry. (Source: The Peninsula) 2
3. November 9 , 2021 FX RATES Currencies Value Currencies Value EUR/USD 1.1616 USD/QAR 3.6400 113.2200 EUR/QAR 4.2282 USD/JPY GBP/USD 1.3591 JPY/QAR 0.0321 USD/CHF 0.9135 GBP/QAR 4.9471 USD/CAD 1.2441 CHF/QAR 3.9847 AUD/USD 0.7420 CAD/QAR 2.9258 NZD/USD 0.7165 AUD/QAR 2.7009 USD/INR 73.4043 INR/QAR 0.0496 USD/TRY 9.6791 TRY/QAR 0.3761 USD/ZAR 14.9083 ZAR/QAR 0.2442 USD/BRL 5.5440 BRL/QAR 0.6566 FX Commentary Currency markets lacked momentum as investors watched closely volatile rate projections and central banks’ tolerance of inflation. US CPI data is due on Wednesday after the Fed reiterated last week that current high inflation is expected to be transitory. The USD dipped after hitting 15-month highs in the previous week as the US Dollar index fell 0.2% to 94.055. The EUR/USD was 0.2% higher at 1.1586 while the GBP/USD traded up 0.5% at 1.3561. The USD/JPY traded down 0.2% at 113.22. The USD/CNY was 0.1% lower at 6.3902. The USD/CAD inched down 0.1% at 1.2441. The AUD/USD traded up 0.3% at 0.7420 as the NZD/USD climbed 0.8% to 0.7165, boosted by Prime Minister Jacinda Arden announcing a likely phasing-out of lockdown measures by the end of the month. Source: Refinitiv Eikon INTERBANK OFFERING & US SWAP RATES Duration SOVEREIGN YIELD CURVES & CDS SPREAD Overnight 1 Week 0.07 0.07 0.09 0.14 0.36 (0.58) (0.57) (0.57) (0.57) (0.50) QAIBOR 0.90 0.92 1.01 1.15 1.34 SAIBOR 0.55 0.60 0.67 0.84 0.95 EIBOR 0.11 0.17 0.21 0.32 0.77 BMIBOR 0.82 1.02 1.51 1.50 1.77 KIBOR 0.56 0.88 1.25 1.50 2.00 LIBOR EURIBOR 1 Month 3 Month 1 Year Source: Refinitiv Eikon 3.09% 2.17% 2.0% 0.43% 0.0% 1.29% 0.93% 0.60% 0.74% 2 Yrs 5 Years CDS 2.0% 1.50% 1.36% 1.20% 0.64% 4.0% 3 Yrs Qatar 1.10% 1.48% 5 Yrs 10 Yrs US 1.87% 30 Yrs Source: Refinitiv Eikon, Investing.com US Swap Rates 1.0% Qatar vs US Treasuries Yields 0.92% 0.68% 0.48% 1.66% 1.36% 2 Yrs 5 Yrs Current 7 Yrs 10 Yrs Last Year 30 Yrs Source: Refinitiv Eikon Spread 6M Change 4.8 Turkey 393.7 8.3 UK 10.7 (1.9) Brazil 233.2 61.9 358.6 16.6 44.7 (2.8) 9.4 (1.0) Egypt 20.9 (2.1) Abu Dhabi Italy 77.4 (7.8) Bahrain 234.6 18.0 Greece 86.7 4.4 Dubai 96.6 (13.3) Russia 84.2 (8.9) Qatar 39.7 (5.8) Japan 19.6 2.5 Saudi Arabia 53.7 (11.8) France 0.0% 5 Years CDS 13.7 Germany 0.25% Spreads 6M Change US Source: Refinitiv Eikon, worldgovernmentbonds.com ECONOMIC CALENDAR Time Country Event Period Survey Prior 02:50 Japan Current Account NSA JPY Sep 1,060.1bn 1,665.6bn 13:00 Germany ZEW Economic Sentiment Nov 20.0 22.3 13:00 Germany ZEW Current Conditions Nov 18.0 21.6 16:30 US PPI Final Demand YoY Oct 8.7% 8.6% 16:30 US PPI ex-Food/Energy YoY Oct 6.8% 6.8% Source: Refinitiv Eikon GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%) 119.8 55.1 10.9 49.7 NA NA Saudi Ground Services Co 60.7 57.0 12.2 2.3 NA NA Middle East Healthcare Co 12.1 1.3 9.2 2.9 -58.9 57.0 Qassim Cement Company 197.8 -26.5 -13.9 100.2 NA NA Kingdom Holding Co 421.5 12.6 -19.7 412.2 NA NA Dar Al Arkan Real Estate Dev 567.8 52.2 4.9 22.4 NA NA 18,936.1 7.4 16.4 5,828.1 NA NA 1,570.9 -0.3 -7.0 65.5 46.8 3.6 178.0 2.3 0.4 11.6 NA 14.7 Dallah Healthcare Company Saudi Electricity Company Aramex Kuwait Projects Co Holding Source: Refinitiv Eikon; Note: All figures are in local currency 3
4. QSE MAIN FINANCIAL INDICATORS (as on 8th November 2021) Company QNB Qatar Islamic Bank Comm. Bank of Qatar Doha Bank Ahli Bank Intl. Islamic Bank Rayan Al khalij Commercial Bank 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 (%) 2.1 2.2 1.6 2.5 3.7 3.3 3.4 2.5 0.0 2.4 0.0 0.0 1.1 2.3 4.0 0.0 0.0 3.4 3.3 2.8 2.5 2.5 0.2 4.7 2.8 1.8 3.2 3.9 2.1 2.5 3.7 3.5 0.0 1.7 0.0 2.2 0.0 5.1 0.0 0.0 1.2 4.1 0.7 3.1 3.9 0.0 2.9 1.1 3.6 3.0 3.5 3.9 2.0 3.3 3.4 2.3 P/B Ratio (x) 2.4 2.2 1.4 0.9 1.5 2.3 2.5 1.2 2.4 0.8 1.9 1.0 1.8 2.1 2.8 11.3 0.7 1.3 2.4 1.6 2.1 2.3 1.0 2.6 1.9 1.8 0.9 1.1 2.6 1.1 1.7 0.9 1.1 1.8 1.3 1.9 1.0 0.8 3.0 0.3 2.2 2.9 0.9 0.5 0.6 1.3 1.0 0.9 1.1 1.6 1.2 0.6 1.4 1.7 1.1 1.7 P/E Ratio (x) 15.2 12.8 11.4 11.2 13.5 14.9 16.7 11.5 20.3 (M) (‫)س‬ 27.9 52.5 47.1 14.4 20.8 44.2 (M) (‫)س‬ 21.0 26.7 74.3 19.0 (M) (‫)س‬ 5.5 19.5 18.6 18.3 12.0 14.3 14.7 21.9 14.4 30.4 (M) (‫)س‬ 17.9 56.7 16.7 10.9 14.0 17.1 13.6 (M) (‫)س‬ 15.4 13.6 18.5 10.3 (H) (‫)م‬ 40.1 31.7 (M) (‫)س‬ 26.8 (M) (‫)س‬ 26.4 12.7 14.4 16.4 17.1 November 9, 2021 EPS (QR) 1.4 1.4 0.6 0.3 0.3 0.7 0.3 0.2 0.1 (M) (‫)س‬ 0.1 0.0 0.1 0.7 0.8 0.1 (M) (‫)س‬ 0.1 0.3 0.0 1.0 (M) (‫)س‬ 0.9 1.0 0.4 0.1 0.3 0.4 1.1 0.1 1.2 0.0 (M) (‫)س‬ 0.1 0.0 0.3 0.2 0.1 0.3 0.1 (M) (‫)س‬ 0.5 0.2 0.1 0.3 0.0 0.0 0.1 (M) (‫)س‬ 0.1 (M) (‫)س‬ 0.3 0.4 0.2 0.3 0.3 BV/Share (QR) 8.7 8.4 4.7 3.4 2.7 4.3 2.0 1.9 0.8 1.4 0.8 0.9 2.5 4.7 5.7 0.3 1.3 1.2 3.6 2.2 8.8 1.8 4.7 7.5 3.4 1.1 3.5 4.7 6.2 2.3 10.3 1.2 1.8 1.3 1.0 2.5 2.6 2.3 1.7 5.9 2.0 2.7 3.0 3.1 5.3 1.2 1.1 1.9 6.4 1.1 3.4 12.6 3.4 1.9 3.7 3.1 Stock Price (QR) 21.0 18.3 6.4 3.0 3.9 9.8 5.0 2.2 1.8 1.1 1.5 1.0 4.7 15.9 3.2 1.0 1.6 8.5 3.6 18.5 4.1 4.9 19.2 2.0 3.1 5.1 15.8 2.4 17.1 1.2 2.0 2.3 1.3 2.5 2.0 5.0 2.0 4.3 7.9 1.6 3.2 1.6 1.1 6.9 1.6 7.6 5.0 3.3 Company QNB ‫الم ف‬ ‫التجاري‬ ‫بنك الدوحة‬ ‫اﻻه‬ ‫الدو‬ ‫ال ان‬ ‫الخل‬ 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: 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