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GCC - Equity Market Monitor - 26 March

Majed Salah
By Majed Salah
5 years ago
GCC - Equity Market Monitor - 26 March

Ard, Dinar, Islam, Mal, Shariah , Sukuk


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  1. GBCM Morning Briefing GBCM  Morning Briefing Contents GCC Equity Markets Monitor MSM Statistics and Indicators MSM Statistics and Indicators MENA, Global markets, Benchmark Indices and Currencies Performance Global Commodities and Petrochemicals Oman News MSM Market Watch 2016 Dividends/ 2017 AGM Calendar  / Regional News Coverage March 26, 2017 3/26/2017
  2. GCC  ‐ Equity Market Monitor 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% ‐5.0% ‐10.0% Daily Return YTD Return MTD Return MTD Return Oman Saudi ( ) UAE (DFM) ( ) UAE (ADX) Kuwait ‐ PI 0.3% 0.7% ‐0.4% 0.3% 0.3% Kuwait ‐ Kuwait  Wtd 0.4% ‐2.6% 2.5% ‐2.5% ‐4.6% 1.3% ‐1.3% ‐2.0% 4.7% ‐4.7% ‐1.1% 1.2% ‐1.2% 22.5% 3.8% 11.7% 0.1% Source: Respective Stock Markets, Bloomberg, GBCM Research GBCM Morning Briefing 2 Qatar Bahrain 0.5% 0.6% 0.1% 2.4% ‐2.4% 12.7% 1.9%
  3. MSM  ‐ Net Buy/(Sell) Position Top 5 ‐ Turnover Market Share – Previous Week Previous Week Turnover: RO 25.272 million (c. US$ 65.7 million) Figures In RO Value Leaders Sector Turnover (RO) Market Share Sembcorp Salalah Utilities 7,568,593 29.95% BUY SELL NET OMANIS 20 749 134 20,749,134  20 876 576 20,876,576  (127,442) Omantel Services 3 068 841 3,068,841 12 14% 12.14% GCC 2,826,425  1,670,128  1,156,297  Oman Cables Industrial 2,130,470 8.43% 56,121  168,723  (112,601) Bank Muscat Banking 2,088,506 8.26% 1,640,134  2,556,388  (916,254) Ooredoo Oman Services 938,626 3.71% Arabs OTHERS MSM ‐ Lead Indicators Value  Indicators ** Mkt. Cap (In RO 000s) Daily Market Performance y PER (X) P/BV (X) Dividend  Yield (%) Indices  Monitor Current Closing Previous  Daily %  MTD %  Closing Chg Chg YTD % Chg MSM 30 6,434,234  10.2 1.1 5.6% MSM 30 5,635.08 5,617.68 0.31% ‐2.51% ‐2.55% Financial 3,250,776  8.5 0.9 4.9% Financial 7,981.36 7,945.49 0.45% ‐2.24% 4.03% Industrial 1,000,570  20.1 1.4 4.7% Industrial 7,882.87 7,869.14 0.17% ‐0.31% 6.42% Services 2,860,023  12.2 1.7 6.4% Services 2,930.32 2,940.50 ‐0.35% ‐2.57% ‐4.20% MSM Shariah 2,695,688  10.7 1.6 6.1% 845.91 843.70 0.26% ‐0.94% ‐2.66% MSM Shariah 3/26/2017 GBCM Morning Briefing 3
  4. MENA  Markets Performance Index  Global Markets Performance Closing   MENA  % Chg %MTD %YTD   9.2 1.1 ‐1.1 ‐3.6 1.6 3.3 5.6 3.1 1.0 ‐1.4 1.6 15.7 ‐1.6 ‐1.8 ‐1.4 0.9 ‐1.6 1.6 2.6 3.3 ‐1.7 ‐1.4 ‐1.0 3.1 5.7 ‐1.3 1.3 8.9 9.6 ‐1.1 Egypt Jordan Tunis  Morocco Palestine Turkey 13,032.1 1.2 2,236.7 0.3 5,545.3 0.0 24,117.0 ‐1.5 538.5 0.2 90,382.7 0.7 MENA Benchmark (S&P/ MSCI) S&P GCC LMC 120.0 0.0 S&P GCC (USD) 98.4 0.0 S&P GCC (40 Index) – Price Return  1,034.0 0.0 S&P GCC (40 Index) – Total Return  1,662.0 0.0 MSCI GCC MSCI GCC 470.6 0.0 MSCI Frontier  544.0 0.3 MSCI Frontier ex GCC 825.8 0.3 MSCI Arabian Index 513.4 ‐0.1 Index  Closing   Americas  % Chg %MTD %YTD   S&P 500 Dow Jones Nasdaq Brazil 2,344.0 20,596.7 5,828.7 63,853.8 ‐0.1 ‐0.3 0.2 0.5 ‐0.8 ‐1.0 0.1 ‐4.2 4.7 4.2 8.3 6.0 ‐0.1 ‐0.2 0.2 1.0 3.3 1.9 2.7 3.3 5.1 0.9 0.1 03 0.3 0.6 ‐0.2 0.0 0.8 2.6 24 2.4 0.9 3.7 2.3 0.8 10.7 10 5 10.5 5.3 7.0 ‐2.4 %MTD %YTD %YTD  ‐1.5 2.1 ‐0.6 1.3 0.8 2.6 1.5 ‐0.2 ‐0.1 1.9 ‐0.4 0.1 0.9 0.0 0.0 0.0 0.2 0.0 0.0 ‐2.5 2.7 0.5 5.0 1.1 3.4 2.8 0.9 ‐0.1 3.8 5.8 1.1 ‐2.4 0.0 0.0 0.0 0.4 0.0 0.0 Europe FTSE 100 CAC 40 DAX Asia Pacific Nikkei  Hang Seng Sensex Shanghai Korea Russia Global Benchmark Indices Index Closing  % Chg %MTD %YTD  1,845.8 0.0 0.4 5.4 MSCI World ‐Ex MSCI World  Ex USA USA 1,796.2 0.2 2.2 6.2 MSCI Europe‐ USD 1,567.0 0.0 3.4 6.5 969.1 0.1 3.5 12.4 MSCI EM Index Dollar Index USD Vs EURO  USD Vs Canadian Dollar  USD Vs Japanese Yen  USD Vs GBP  USD Vs Swedish Krona USD Vs Swiss Franc  USD Vs Chinese Renminbi USD Vs Hong Kong Dollar  USD Vs Indian Rupee  USD Vs Aus Dollar  USD Vs Indonesia Rupiah  USD Vs Turkish Lira Spot  USD Vs Omani Riyal  USD Vs UAE Dirham  USD Vs Saudi Riyal  USD Vs Kuwait Dinar  USD Vs Qatar Riyal  USD Vs Bahrain Dinar  Fixed Income (Bloomberg/EFFAS Bond Indices)  US 10+ Yr TR 560 8 560.8 03 0.3 00 0.0 17 1.7 Euro Liquid 10+ Yr TR 227.3 0.3 ‐0.8 ‐1.7 ‐3.7 ‐3.4 Commodity (Bloomberg)  Commodity  84.5 ‐0.1 Source: Data taken from Bloomberg GBCM Morning Briefing 19,262.5 24,358.3 29 421 4 29,421.4 3,269.4 2,169.0 1,124.7 Global Currencies Index Global Equity (MSCI) MSCI World – USD , 7,336.8 5,020.9 12,064.3 4 Closing Closing  % Chg % Chg In Comparison with USD 99.627 1.080 1.338 111.340 1.247 8.808 0.991 6.884 7.766 65.415 0.762 13327.000 3.612 0.385 3.673 3.750 0.305 3.641 0.377 ‐0.1 0.1 ‐0.2 ‐0.4 ‐0.4 0.2 0.2 0.0 0.0 0.2 ‐0.1 0.0 0.6 0.0 0.0 0.0 0.0 0.0 0.0
  5. Commodities  Performance Index  Petrochemical Performance Closing   % Chg %MTD %YTD  NYMEX Crude 48.0 0.6 ‐11.9 ‐14.4 ICE Brent Crude 50.8 0.5 ‐10.1 ‐12.5 Crude Oil, Oman  49.9 0.6 ‐9.5 ‐8.0 NYMEX Natural Gas  3.1 0.8 10.9 ‐13.7 160.5 1.0 ‐7.2 ‐13.8 Precious Metals Gold Spot  1,243.5 ‐0.1 ‐0.4 7.9 Silver Spot 17.8 1.0 ‐3.0 11.6 Platinum Spot  964.4 0.2 ‐5.8 6.7 Palladium Spot  809.0 ‐0.5 4.8 18.3 Base Metals  LME Aluminium‐Spot 1 928 8 1,928.8 03 0.3 05 0.5 13 2 13.2 LME Copper‐Spot 5,777.0 ‐0.4 ‐3.2 4.6 LME Zinc‐Spot 2,811.8 0.6 ‐0.2 9.9 LME Lead‐Spot 2,342.5 ‐0.9 3.9 17.2 LME Nickel‐Spot 9 807 5 9,807.5 ‐1.6 16 ‐10.2 10 2 ‐1.6 16 Steel  648.0 US ‐ Hot Roll Coil Steel  ‐0.8 4.5 %YTD ‐20.7 ‐5.3 ‐15.5 ‐1.8 820.0 ‐15.5 ‐1.8 Benzene CFR India Spot 825.0 ‐15.4 ‐1.8 456.5 ‐8.4 ‐1.4 Condensates (in USD/ MT)  European Naptha  Naphtha C&F Japan  451.9 ‐10.8 ‐9.0 Naphtha CIF NWE Cargo 443.1 ‐9.7 ‐8.8 p g p p Naphtha fob Singapore Spot  48.9 ‐11.1 ‐8.9 Olefins (in USD/ MT)  Ethylene Spot  1,185.0 3.0 28.1 Ethylene FOB Korea Spot 1,115.0 ‐13.9 0.9 Ethylene FOB Japan Spot 1,110.0 ‐14.0 0.9 855 0 855.0 ‐12.8 12 8 ‐1.2 12 3.1 15.5 Propylene FOB Korea Spot Propylene FOB Korea Spot Intermediate (in USD/ MT)  2EH CFR Far East Asia 1,005.0 2EH CFR South East Asia 1,020.0 2.5 14.6 955.0 ‐5.9 ‐3.1 DOP CFR Far East Asia Polymers (in USD/ MT)  ‐2.4 ‐5.6 ‐6.7 ‐4.3 Film Grd Poly HDPE SE Asia 1,160.0 ‐4.9 ‐0.9 y p Film Grd Poly HDPE India Spot 1,190.0 , 0.9 5.3 1,690.0 ‐1.5 9.0 UREA Cornbelt 260.0 ‐10.3 ‐5.5 UREA Middle East 222.0 ‐17.8 ‐9.4 US Urea Avg Retail Price US Urea Avg. Retail Price 364 5 364.5 ‐3.8 38 56 5.6 ‐0.3 03 Wheat ‐ Active Contract  424.8 0.9 ‐4.3 1.0 CBOT ‐ Soya bean  975.8 ‐3.6 Shipping  44 4 44.4 815.0 Benzene CFR Japan Spot 9,395.0 ‐4.7 47 37 3.7 Benzene FOB Korea Spot 1,120.0 ‐0.1 01 ‐5.8 805.0 Film Grd Poly HDPE Far E Spot 356 3 356.3 ‐1.5 Benzene Aromatics Rotterdam  3.3 C Corn ‐ A i C Active Contract  B lti D I d Baltic Dry Index  %MTD LLDPE Future Contract (CNY/ MT)  Agriculture  1 240 0 1,240.0 Closing A Aromatics (in USD/ MT)  i (i USD/ MT) Energy  NYMEX Gasoline  Index  29 0 29.0 Urea (in USD/ MT)  Urea Price (RMB/ MT)  Source: Data taken from Bloomberg 3/26/2017 GBCM Morning Briefing 5
  6. Oman News Moody 's maintains Oman's Baa1 rating with Stable Outlook (Source: Moody’s)  Oman's Baa1 rating with a stable outlook reflects its high wealth levels and a still comparatively strong government balance sheet, balanced against credit challenges, including its heavy reliance on the oil and gas sector, Moody's Investors Service said in a report.  Although Moody’s expect government debt to rise to 40% of GDP by 2018 from less than 5% at the start of the oil price shock, Oman's fiscal buffers will support the country through its process of fiscal and external adjustment  For 2016‐2020, Moody's forecasts real GDP growth in Oman of around 2.1% per year on average, significantly lower than the 3.8% average annual growth seen between 2011 and 2015.  y expectation p of onlyy limited increases in oil and ggas p production and the dampening p g effect from ongoing g g This forecast is based on Moody's fiscal consolidation on non‐oil real GDP growth.  Moody's expects Oman's 2017 fiscal deficit to narrow substantially to OMR3.1 billion ($8.1 billion, 11.4% of GDP) from an estimated OMR5.0 billion ($13.0 billion, 20.1% of GDP) in 2016, and fiscal deficits will continue to decline gradually over the following years.  Helped by higher oil prices, hydrocarbon revenues will start to gradually rise from 2017.  Non‐oil revenues will also gradually increase over the coming years, backed by a re‐pricing of government services, the corporate income tax rate increase, and the expected introduction of value‐added tax from 2018 onwards.  The stable outlook reflects the anticipated resilience of Oman's rating over the next 12 to 18 months and signals that upward and downward pressures are balanced.  Upward pressure on the rating would stem from faster‐than‐expected progress in containing government fiscal deficits and debt and in diversifying the economy and government finances away from oil.  On the other hand, downward pressure would emerge if government finances deteriorate faster than Moody's baseline scenario currently anticipates. Greater‐than‐expected weakening in the balance of payments would also be credit negative. GBCM Morning Briefing 6
  7. Oman News Draft regulation for real estate investment trust funds ready (Source: Times of Oman)  A draft regulation for listing real estate investment trust (REIT) funds is ready and is awaiting final approval from certain ministries, such as the Ministry of Housing, according to news sources quoting the executive president of the Capital Market Authority (CMA).  From CMA side, the draft is ready and they need to talk to certain government entities like the Ministry of Housing because there are certain legal issues that prevent companies and funds from owing properties. properties CMA need to resolve this issue with the Ministry of Housing  The whole issue will be resolved shortly and the regulation will be announced this year. The new regulation, which was approved by Tanfeedh, will be for both conventional and Sharia compliant REITs. This will be another venue for Sharia‐compliant issue.  REITs are securities that sell like stock on the bourse and invest in real estate directly, either through properties or mortgages. It provides investors an opportunity to participate in real‐estate projects even with a small fund size offers regular income and capital appreciation. Oman says it could cut crude exports by 15% from June for Sohar refinery (Source: Reuters)  Oman has notified customers in Asia that it could reduce supplies of crude by 15% from June to meet demand at a domestic refinery, and as part of its commitment to cut output under a landmark producers' agreement, as per news sources.  A cut would likely affect China most, as the world's second‐largest oil consumer buys close to 90 percent of Oman's exports.  Oman's Ministry of Oil and Gas (MoG) told buyers that the supply cuts are also to meet rising domestic demand at the state‐owned Sohar refinery, which is being expanded.  Oman's Minister of Oil and Gas said in October last year that the country's exports would drop by about 50,000 barrels a day when new refining capacity comes on stream in early 2017. GBCM Morning Briefing 7
  8. Oman News Oman Airports Data ‐ Feb 2017 (Source: ONA)  The number of international flights at Muscat International Airport logged a 10.6% increase by the end of February this year, compared with the same period last year, according to the official data  During the period, there were 8141 landings and an equal number of take‐offs, as against 7361 landings and 7358 take‐offs in the first two months of 2016.  There has been a 15.5% increase in the number of passengers on international flights to and from Muscat International Airport, with their numbers rising to 2.04 million this year, compared with 1.77 million recorded last year.  g , on the other hand,, went up p 4.5% to 1571,, from 1503 flights g last yyear. Passengers g on domestic flights g too logged gg a rise of Domestic flights, 15.9% to reach 173,177, as against 149,444 domestic passengers by the end of February last year.  The number of passengers through Salalah Airport till the end of February stood at 209,265 passengers via 1,792 flights. Polypropylene Plant in Sohar Produces 340,000 Tons Annually (Source: ONA)  Oman Refineries and Petroleum Industries Co (Orpic) said that the production of its polypropylene plant in Sohar after completing the current expansions will be 340,000 tons of high quality polypropylene per annum.  The plant is part of the government's vision to develop the chemical manufacturing industries. Sohar Refinery of Orpic is the main supplier of raw materials used in the production of polypropylene.  It is also a key component in the building of an integrated local petrochemical industry. Orpic markets the product under the brand name product for export p in ancient times. 'Luban', the most renowned Omani p  The plant production, which ranges between very soft materials to granules, is exported to more than 63 countries including the GCC, India, Pakistan, Sri Lanka, Bangladesh, MENA countries, China, Vietnam, Peru, South Korea, Myanmar, the Philippines and South Africa. GBCM Morning Briefing 8
  9. Oman News Agreement Inked to Develop Quriyat Tourism Complex (Source: ONA)  Oman Ministry of Tourism signed an agreement with the Quriyat Development Company, to develop Quriyat Tourism Complex, the newest ITC development in Oman.  The Quriyat Development Company was established as joint venture between Al Madina Real Estate and Fadhaa Al Khaleej Company. The company will develop the Quriyat Integrated Tourism Complex, which covers a total area of 1,282,300 sqm.  The total estimated budget of the project is RO 385 million. The development is planned to be implemented in three 5 year phases, with RO 100 million allocated to develop the first phase. It is anticipated that the first phase will be completed and launched by 2021.  project j contains three major j aspects; p ; tourism,, residential and recreation facilities. The tourism facilities will include three hotels 3,, 4 The p and 5 Star with a total of 750 rooms, and a golf course with 9 holes. The residential aspect includes establishing 3,000 residential units.  Additionally, the recreational aspect includes a water park, Boulevard walk including a number of restaurants and cafés, cinema halls and a spa. The project will also develop the fishing port and develop a floating dock for marine taxis which will facilitate transport for visitors, as well as all tourism ports to Sur. GBCM Morning Briefing 9
  10. MSM ‐ Market Watch Source: Bloomberg, GBCM Research Market Outlook – Last trading week of Q1 2017, MSM to adjust further for dividends… During the last trading week, we saw mixed closing among the regional markets with Kuwait continuing its outperformance trend gaining 3.4% WTD. UAE‐ADX (1.6% WTD) and Qatar (0.8% WTD) also ended on a positive note. While UAE‐DFM (‐1.7% WTD), Oman (‐ 0 6% WTD) and Saudi (‐0.6% 0.6% ( 0 6% WTD) ended in red. red MSM Index saw further decline amid the ongoing dividend season/ adjustments. adjustments We anticipate the MSM and GCC equities to open on a flattish note for the last trading week of Q1 2017 with relative stable cues from the global equities. Omani stocks would adjust further on the ongoing AGMs/ dividend season. We do see institutional support to come in certain stocks ahead of the dividends in Oman. Upcoming AGMs‐ Today (26th Mar)‐ NBO, Oman Cables, Al Maha Ceramics, Gulf International Chemicals Tomorrow (27th Mar)‐ Bank Dhofar, Port Services, Ahli Bank, Shell Oman, National Gas, Muscat National, Taageer Finance GBCM Morning Briefing 10
  11. 2016  Dividends/ 2017 AGM Calendar  FY2016 Company‐ Figures in RO 000s Last Closing Par Value Market Cap  Equity   National Bank of Oman Al Maha Ceramics Oman Cables Gulf Int. Chemicals Bank Dhofar Salalah Port Services Port Services Ahli Bank Shell Oman National Gas Muscat National Holding Taageer Finance Al Madina Takaful O Oman United Insurance U it d I Oman Chlorine United Power Muscat Finance Salalah Mills Oman Investment & Finance Oman Investment & Finance National Finance Voltamp Energy A Saffa Foods Ominvest United Finance HSBC Bank Oman Bank Sohar Dhofar Beverage Global Financial Inv Al Kamil Power P tS i Port Services 0.251 0.466 1.700 0.287 0.251 0.632 0.300 0.199 1.990 0.510 1.720 0.125 0.093 0 420 0.420 0.488 3.400 0.135 1.395 0.233 0.156 0.558 0.656 0.532 0.150 0.127 0.151 0.260 0.167 0.312 0 300 0.300 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 1.000 0.100 0.100 0 100 0.100 0.100 1.000 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0 100 0.100 370170 24465 152490 6027 476699 113657 28512 283582 199000 28050 8600 31699 16275 42000 33233 6800 36007 67187 46600 42296 33759 78720 338240 48945 254040 242280 5200 33400 30030 28512 147478 5250 8970 2100 189920 17984 9504 142504 10000 5500 5000 25359 17500 10000 6810 2000 26672 4816 20000 27113 6050 12000 63579 32630 200031 160450 2000 20000 9625 9504 PAT  EPS  DPS 55,800 2,091 15,254 587 47,622 5,726 2,716 29,600 16,000 2,796 1,339 4,474 1,661 4 053 4,053 1,905 941 5,138 3,691 6,381 , 6,349 3,630 4,575 23,900 4,505 16,900 19,112 133 1,415 3,728 0.038 0.040 0.170 0.028 0.025 0.032 0.029 0.021 0.160 0.051 0.268 0.018 0.009 0 041 0.041 0.028 0.471 0.019 0.077 0.032 0.023 0.060 0.038 0.038 0.014 0.008 0.012 0.007 0.007 0.039 0.016 0.030 0.085 0.029 0.014 0.020 0.055 0.010 0.106 0.011 0.100 0.010 0.006 0 030 0.030 0.015 0.000 0.010 0.040 0.016 0.014 0.018 0.020 0.015 0.008 0.005 0.005 0.005 0.005 0.010 0 030 0.030 Source: Bloomberg, GBCM Research, ** Div. Yield calculated on distributed Cash Dividends only GBCM Morning Briefing 11 Dividend  Cash  Cash  Payout (%) Dividends  Dividend 42.1% 75.9% 50.0% 101.9% 53.8% 62.8% 192.4% 48.1% 66.3% 21.6% 37.3% 53.8% NM 74 0% 74.0% 53.6% 0.0% 51.9% 52.2% 50.2% 59.8% 30.0% 52.5% 39.9% 57.9% 59.2% 42.0% 75.4% 70.7% 25.8% 23478 1588 7625 599 25639 3597 5227 14250 10600 605 500 2409 1050 3000 1022 0 2667 1927 3200 3796 1089 2400 9537 2610 10002 8023 100 1000 963 2851 15.9% 30.2% 85.0% 28.5% 13.5% 20.0% 55.0% 10.0% 106.0% 11.0% 10.0% 9.5% 6.0% 30 0% 30.0% 15.0% 0.0% 10.0% 40.0% 16.0% 14.0% 18.0% 20.0% 15.0% 8.0% 5.0% 5.0% 5.0% 5.0% 10.0% 30 0% 30.0% Stock  Dividend 5.0% 4.8% 0.0% 0.0% 7.5% 0.0% 0.0% 0.0% 0.0% 9.1% 100.0% 0.0% 0.0% 0 0% 0.0% 0.0% 0.0% 7.0% 0.0% 3.0% 17.0% 0.0% 10.0% 7.0% 0.0% 10.0% 0.0% 0.0% 0.0% 0 0% 0.0% Mand.  M d Conv.  Bonds Dividend  AGM Date Yield (%) 6.3% 6.5% 5.0% 9.9% 5.4% 3.2% 18.3% 5.0% 5.3% 2.2% 5.8% 7.6% 6.5% 7 1% 7.1% 3.1% 0.0% 7.4% 2.9% 6.9% 9.0% 3.2% 3.0% 2.8% 5.3% 3.9% 3.3% 1.9% 3.0% 3.2% 10 0% 10.0% 26‐Mar‐17 26‐Mar‐17 26‐Mar‐17 26‐Mar‐17 27‐Mar‐17 27‐Mar‐17 27‐Mar‐17 27‐Mar‐17 27‐Mar‐17 27‐Mar‐17 27‐Mar‐17 27‐Mar‐17 27‐Mar‐17 28 M 17 28‐Mar‐17 28‐Mar‐17 28‐Mar‐17 28‐Mar‐17 28‐Mar‐17 28‐Mar‐17 28 Mar 17 29‐Mar‐17 29‐Mar‐17 29‐Mar‐17 29‐Mar‐17 29‐Mar‐17 30‐Mar‐17 30‐Mar‐17 30‐Mar‐17 30‐Mar‐17 31‐Jul‐17 1 A 17 1‐Aug‐17
  12. 2016  Final Dividends/ 2017 AGM Calendar  FY2016 Company‐ Figures in RO 000s Last Closing Par Value Market Cap  Equity   PAT  EPS  DPS Dividend  Cash  Cash  Payout (%) Dividends  Dividend Stock  Dividend Mand.  Conv.  Bonds Dividend  AGM Date Yield (%) Fi l Di id d Final Dividends Omantel 1.405 0.100 1053750 75000 116,700 0.156 0.070 45.0% 52500 70.0% 0.0% 5.0% 30‐Mar‐17 Sembcorp Salalah 0.242 0.100 231006 95457 14,629 0.015 0.004 23.5% 3436 3.6% 0.0% 1.5% 2‐Apr‐17 Omantel 1.405 0.100 1053750 75000 22500 30.0% 0.0% 2.1% Aug‐17 SMN Power 0.700 0.100 139745 19964 11,752 0.059 0.016 27.2% 3194 16.0% 0.0% 2.3% 1‐May‐17 Sembcorp Salalah 0.242 0.100 231006 95457 14,629 0.015 0.010 67.9% 9928 10.4% 0.0% 4.3% 1‐Nov‐17 SMN Power 0.700 0.100 139745 19964 3394 17.0% 0.0% 2.4% 25‐Nov‐17 Phoenix Power 0.143 0.100 209152 146260 18,458 0.013 0.003 25.4% 4680 3.2% 0.0% 2.2% Jul‐17 Phoenix Power 0.143 0.100 209152 146260 18,458 0.013 0.005 37.2% 6874 4.7% 0.0% 3.3% Jan‐18 0.030 0.017 Source: Bloomberg, GBCM Research, ** Div. Yield calculated on distributed Cash Dividends only GBCM Morning Briefing 12
  13. UAE  News Emaar Malls bids for Souq.com to challenge Amazon (Source: Trade Arabia)  Emaar Malls has made a bid for Dubai online retailer Souq.com, seeking to challenge an existing offer from online retail giant Amazon, as per  news sources  The unit of Emaar Properties offered about $800 million for Souq.com this week, which includes a convertible deposit of $500 million, as  per news sources.  Amazon has an exclusivity clause in its buyout talks for Souq.com. No final agreement has been reached with any of the parties, it added.  Souq.com, whose existing investors include Tiger Global Management and South Africa’s NaspersSouq.com, was valued at $1 billion in its last  ffunding round, said the report. di d id th t GBCM Morning Briefing 13
  14. GCC News Tadawul to start using T +2 settlement cycle on April 23 (Source: Argaam)  The Saudi Stock Exchange (Tadawul) will amend the settlement cycle of listed securities to (T+2) starting from April 23, 2017, which allows a two‐day settlement period for transactions, the bourse said in a statement.  All necessary pilot phases have been completed to ensure full technical and functional readiness, as well as market connectivity. The new settlement l willll not have h an impact on traders. d  Amending the (T+2) settlement cycle of listed securities will increase the level of asset safety for investors by providing enough time to verify trades, and will unify the settlement duration for all types of listed securities.  It gives i sellers ll purchasing h i power for f the th securities iti they th sell, ll thus, th they th will ill be b able bl to t buy b new securities iti directly di tl upon executing ti trades. t d At the th same time, buyers will be able to sell securities directly upon executing trades with no need to wait for completing settlement of securities. Saudi Aramco signs up Samba as IPO advisor (Source: Trade Arabia)  Saudi Aramco has selected Samba Capital as one of two banks to work as an adviser on its planned share sale in Riyadh, said a report.  At least six investment banks pitched for a role advising the world's largest oil producer on its listing on the Saudi stock exchange in Riyadh, the Tadawul  SSaudi di authorities h i i are aiming i i to list li 5% off Aramco A on the h Tadawul T d l and d one or more international i i l markets k in i an initial i i i l public bli offering ff i that h could ld raise $100 billion. Alandalus Property buys stake worth SAR 51 million in plot (Source: Argaam)  Alandalus Al d l property t Co. C has h acquired i d a 25% common share h i a plot in l t off land l d in i Jeddah J dd h for f SAR 50.83 50 83 million. illi Th plot, The l t which hi h has h an area off 28,240 square meters, is intended to be used to set up a shopping mall in partnership with the other land owners.  The land was evacuated for this purpose on March 23, 2017. The developer added that it financed the deal through the company’s outstanding bank facilities and will announce any material updates on the matter as they occur. GBCM Morning Briefing 14
  15. GCC News Saudi Aramco chooses hybrid sukuk structure for first debt issue (Source: Reuters)  Saudi Aramco has chosen a commonly used hybrid structure for a domestic offer of riyal‐denominated Islamic bonds that will be the state‐ owned oil giant's first debt sale, the prospectus for the offer showed.  The debt issue is part of the state‐owned oil giant's plans to develop new sources of finance in an era of low oil prices. They include what could ld be b the h biggest b ever stockk market k listing l in history h next year.  At least 51% of the funds raised in the debt issue would be used in a mudaraba agreement, a form of Islamic investment management partnership, according to the prospectus. The money would be invested in Aramco's business and used for general corporate purposes.  No more than N th 49% would ld be b used d in i a murabaha b h facility f ilit that th t would ld trade t d commodities diti with ith a special i l purpose vehicle. hi l This Thi could ld help h l to t finance payments on the sukuk.  Aramco began meeting with potential sukuk investors on Wednesday and the sale may take place as early as next week, banking sources said. It is part of a 37.5 billion riyal sukuk issuance program established by Aramco. GBCM Morning Briefing 15
  16. | Institutional Sales ‐ Hunaina Banatwala, (+968) 2235 0717 |Institutional Brokerage ‐ Talal Al Balushi, (+968) 2235 0725| | Equity Research ‐ Kanaga Sundar, Sundar (+968) 2235 0727 | Vijay Sridharan, Sridharan (+968) 2235 0728 | Disclaimer: This document has been prepared and issued by Gulf Baader Capital Markets SAOC ("the Company") on the basis of publicly available information, internally developed data and other sources believed to be reliable. While all care has been taken to ensure that the facts stated are accurate and the opinions given are reasonable, neither Gulf Baader Capital Markets SAOC nor any employee shall be in anyway responsible for the contents of this report. report The Company may have a position and may perform buying/selling for itself or its clients in any security mentioned in this report. This is not an offer to buy or sell the investments referred therein. 3/26/2017 GBCM Morning Briefing 16