Login Get Started
HelpDesk
 Embed  Download
  of  

or
Sign in to continue reading...

GCC Equity Market Monitor - 5 March

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

Ard, Dinar, Mal, Shariah

Sukuk

International Trade

Organisation Tags (4)


Create FREE account or Login to add your comment
Comments (0)


Transcription

  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 5, 2017 3/5/2017
  2. GCC  ‐ Equity Market Monitor 20.0% 15.0% 10.0% 5.0% 0.0% ‐5.0% Daily Return YTD Return MTD Return Oman Saudi UAE (DFM) UAE (DFM) UAE (ADX) UAE (ADX) Kuwait ‐ PI Kuwait  0.4% 0.7% ‐1.0% 0.6% 0.4% Kuwait ‐ Wtd 0.7% 0.6% 0.6% ‐2.7% 0.6% 1.5% ‐1.3% 1.1% 1.0% 17.7% ‐0.2% 11.7% 0.1% Source: Respective Stock Markets, Bloomberg, GBCM Research GBCM Morning Briefing 2 Qatar Bahrain ‐0.3% ‐0.2% 2.7% 0.2% 9.9% ‐0.6%
  3. MSM  ‐ Net Buy/(Sell) Position Top 5 ‐ Turnover Market Share – Previous Week Previous Week Turnover: RO 57.9 million (c. US$ 150.5 million) Figures In RO BUY SELL NET 56 195 378 56,195,378  51 509 006 51,509,006  4,686,373 4,686,373  GCC 342,004  3,475,048  (3,133,044) Arabs 163,119  128,356  34,763  1,199,603  2,787,695  (1,588,092) OMANIS OTHERS MSM ‐ Lead Indicators Value  Indicators ** Mkt. Cap (In RO 000s) Value Leaders Sector Turnover (RO) Market Share Oman Govt Bond ‐52 Bonds 24,945,000 43.08% Bank Sohar Bank Sohar Financial 8 816 960 8,816,960 15 23% 15.23% Ooredoo Oman Services 2,939,759 5.08% Bank Muscat Financial 2,663,324 4.60% Omantel Services 2,252,447 3.89% 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 6,710,200  9.7 1.2 5.3% MSM 30 5,815.06 5,791.12 0.41% 0.61% 0.56% Financial 3,458,580  9.0 0.9 4.5% Financial 8,181.27 8,179.94 0.02% 0.20% 6.64% Industrial 1,010,964  16.1 1.4 4.7% Industrial 7,970.58 7,943.56 0.34% 0.80% 7.60% Services 2,925,816  10.3 1.7 6.3% Services 3,031.41 3,012.83 0.62% 0.79% ‐0.89% MSM Shariah 2,745,009  11.1 1.6 6.0% 860.98 858.27 0.32% 0.83% ‐0.93% MSM Shariah 3/5/2017 GBCM Morning Briefing 3
  4. MENA  Markets Performance Index  Global Markets Performance Closing   MENA  % Chg %MTD %YTD   3.1 0.1 ‐0.3 0.1 0.4 2.6 ‐0.3 2.1 1.9 2.4 0.4 14.8 0.4 0.3 0.4 0.8 0.5 0.7 0.6 0.4 0.7 1.1 5.0 5.7 0.8 6.9 6.7 1.1 Egypt Jordan Tunis  Morocco Palestine Turkey 12,310.5 2.6 2,215.3 ‐0.1 5,591.3 0.0 25,047.3 ‐0.3 532.5 0.4 89,722.1 ‐0.2 MENA Benchmark (S&P/ MSCI) S&P GCC LMC 122.5 0.0 S&P GCC (USD) 100.5 0.0 S&P GCC (40 Index) – Price Return  1,053.0 0.1 S&P GCC (40 Index) – Total Return  1,660.6 0.0 MSCI GCC MSCI GCC 480.5 0.0 MSCI Frontier  533.9 0.4 MSCI Frontier ex GCC 804.4 0.5 MSCI Arabian Index 524.6 0.0 Index  Closing   Americas  % Chg %MTD %YTD   S&P 500 Dow Jones Nasdaq Brazil 2,383.1 21,005.7 5,870.8 66,785.5 0.1 0.0 0.2 1.4 0.8 0.9 0.8 0.2 6.4 6.3 9.1 10.9 ‐0.1 0.6 ‐0.3 1.5 2.8 1.6 3.2 2.7 4.8 ‐0.5 ‐0.7 00 0.0 ‐0.4 ‐1.1 0.8 1.8 ‐0.8 03 0.3 ‐0.7 ‐0.6 0.8 1.9 7.1 83 8.3 3.7 2.6 ‐3.8 %MTD %YTD %YTD  0.4 0.4 ‐0.6 ‐1.1 ‐0.7 0.6 ‐0.2 ‐0.5 0.0 ‐0.2 ‐0.8 ‐0.3 ‐1.6 0.0 0.0 0.0 ‐0.2 0.0 0.0 ‐0.7 1.0 0.5 2.6 ‐0.4 1.4 1.1 0.6 ‐0.1 1.7 5.4 0.7 ‐4.9 0.0 0.0 0.0 0.0 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  1,849.0 0.0 0.6 5.6 MSCI World ‐Ex MSCI World  Ex USA USA 1,761.0 ‐0.1 0.2 4.1 MSCI Europe‐ USD 1,527.4 0.3 0.8 3.8 931.1 ‐0.6 ‐0.6 8.0 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 553 8 553.8 01 0.1 ‐1.2 12 05 0.5 Euro Liquid 10+ Yr TR 228.1 0.0 ‐0.5 ‐1.4 ‐0.6 ‐0.4 Commodity (Bloomberg)  Commodity  87.2 0.2 Source: Data taken from Bloomberg GBCM Morning Briefing 19,469.2 23,552.7 28 832 5 28,832.5 3,218.3 2,078.8 1,108.3 Global Currencies Index Global Equity (MSCI) MSCI World – USD , 7,374.3 4,995.1 12,027.4 4 Closing Closing  % Chg % Chg In Comparison with USD 101.540 1.062 1.338 114.040 1.229 8.980 1.008 6.904 7.763 66.805 0.760 13383.000 3.705 0.385 3.673 3.750 0.306 3.642 0.377 ‐0.6 1.1 0.1 0.3 0.2 1.2 0.5 ‐0.2 0.0 ‐0.1 0.3 ‐0.2 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 53.3 1.4 ‐1.3 ‐3.8 ICE Brent Crude 55.9 1.5 ‐1.1 ‐3.7 Crude Oil, Oman  54.8 0.9 ‐0.7 0.9 NYMEX Natural Gas  2.8 0.8 1.9 ‐20.7 165.3 0.6 ‐4.4 ‐11.2 Precious Metals Gold Spot  1,234.6 0.0 ‐1.1 7.1 Silver Spot 18.0 1.2 ‐1.8 13.0 Platinum Spot  999.8 1.2 ‐2.4 10.7 Palladium Spot  767.7 ‐0.3 ‐0.5 12.2 Base Metals  LME Aluminium‐Spot 1 883 8 1,883.8 ‐1.0 10 ‐1.9 19 10 5 10.5 LME Copper‐Spot 5,905.8 ‐0.2 ‐1.0 6.9 LME Zinc‐Spot 2,767.0 ‐0.2 ‐1.8 8.2 LME Lead‐Spot 2,243.3 ‐0.1 ‐0.5 12.2 LME Nickel‐Spot 10 936 0 10,936.0 20 2.0 01 0.1 98 9.8 Steel  620.0 US ‐ Hot Roll Coil Steel  0.0 0.0 ‐1.1 Agriculture  C Corn ‐ A i C Active Contract  380 8 380.8 03 0.3 19 1.9 65 6.5 Wheat ‐ Active Contract  453.5 0.2 2.2 7.8 CBOT ‐ Soya bean  1,037.5 0.0 0.2 2.5 Shipping  B lti D I d Baltic Dry Index  939 0 939.0 Closing %MTD %YTD 1,015.0 ‐3.8 19.4 Benzene FOB Korea Spot 965.0 0.5 16.3 Benzene CFR Japan Spot 970.0 0.5 16.2 Benzene CFR India Spot 975.0 0.5 16.1 478.4 ‐4.0 3.3 A Aromatics (in USD/ MT)  i (i USD/ MT) Energy  NYMEX Gasoline  Index  39 3.9 93 9.3 ‐2 3 ‐2.3 Benzene Aromatics Rotterdam  Condensates (in USD/ MT)  European Naptha  Naphtha C&F Japan  485.5 ‐4.2 ‐2.2 Naphtha CIF NWE Cargo 476.9 ‐2.8 ‐1.9 p g p p Naphtha fob Singapore Spot  52.6 ‐4.3 ‐2.0 19.8 24.3 Olefins (in USD/ MT)  Ethylene Spot  1,150.0 Ethylene FOB Korea Spot 1,295.0 17.2 17.2 Ethylene FOB Japan Spot 1,290.0 17.3 17.3 980 0 980.0 10 7 10.7 13 3 13.3 975.0 8.9 12.1 995.0 8.7 11.8 1,015.0 4.1 3.1 Propylene FOB Korea Spot Propylene FOB Korea Spot Intermediate (in USD/ MT)  2EH CFR Far East Asia 2EH CFR South East Asia DOP CFR Far East Asia Polymers (in USD/ MT)  LLDPE Future Contract (CNY/ MT)  9,640.0 0.1 ‐3.1 Film Grd Poly HDPE Far E Spot 1,200.0 5.3 2.6 Film Grd Poly HDPE SE Asia 1,220.0 4.3 4.3 y p Film Grd Poly HDPE India Spot 1,180.0 , 1.7 4.4 1,715.0 1.5 10.7 UREA Cornbelt 285.0 ‐1.7 3.6 UREA Middle East 270.0 0.0 10.2 US Urea Avg Retail Price US Urea Avg. Retail Price 379 1 379.1 00 0.0 98 9.8 Urea (in USD/ MT)  Urea Price (RMB/ MT)  Source: Data taken from Bloomberg 3/5/2017 GBCM Morning Briefing 5
  6. Oman News Oman 's natural gas production and imports data – Jan 2017 (Source: Times of Oman)  Oman’s natural gas production and imports fell by 4.5% to 3,424 million cubic metres (MNCM) in January 2017, compared to 3,584 MNCM in the same month last year.  Of this, non‐associated gas and imports dropped by 3.7% to 2,859 MNCM, while associated gas production fell by 8% to 565 MNCM, according to the latest official data. data  A sizeable portion of natural gas in Oman is used by various mega‐industrial projects. In January 2017, it stood at 2,183 MNCM, against 2,199 MNCM for the same period of last year. Natural gas is also used in oilfields, either as fuel or for re‐injection.  During January, as much as 693 MNCM of natural gas was used in oil fields, against 816 MNCM units consumed during the same period in 2016. Other major consumers of natural gas in Oman include power producers, small‐scale industries and liquefied natural gas plants. Societe Generale arranges $ 227 million financing for Oman Shipping Company (Source: ONA)  Oman Shipping Co (OSC), wholly owned by the Government of the Sultanate, successfully raised $227 million to finance its purchase of 10 new Medium Range Tankers, which are chartered to Shell Tankers Singapore for seven years.  Societe Generale acted as Sole Arranger and Sole Underwriter for the landmark transaction, which involved a combination of export credit g y ((ECA)) and commercial financing. g Seven of the ten vessels were covered byy Korea’s export p credit agency, g y K‐SURE. agency  The funding covered the purchase of ten 50,000 dwt medium‐range tankers, built by Hyundai Heavy Industries of South Korea.  Societe Generale underwrote the whole transaction on the basis of an innovative structure for seven of the vessels, a 12‐year ECA facility combined with a Tied Commercial Loan. The remaining three vessels were financed under a seven‐year mortgage loan.  Societe Generale, Crédit Agricole Corporate & Investment Bank, the Korea Development Bank and ABN Amro acted as Mandated Lead Arrangers. GBCM Morning Briefing 6
  7. Oman News ACWA Power ‐ Announcement of 2017 dividends (Source: MSM)  To authorize the Board of Directors to propose and pay interim dividends to shareholders on two occasions.  The first period will be in June 2017 (from the audited accounts for the period ending 30 April 2017) and the second period will be in December 2017 (from the audited accounts for the period ending 31 October 2017) with the total amount for the two periods mentioned not exceeding 56% of the paid up capital (being 56 baisa per share) depending on the available profit for the financial year ending 2017.  Based on the cash dividends announced for 2017, the dividend yield works out to be 7.7% levels GBCM Morning Briefing 7
  8. MSM ‐ Market Watch Source Bloomberg, Source: Bloomberg GBCM Research Market Outlook – Range bound trade to prevail, MSM support seen at 5,780 levels… During the previous trading week, we saw all the GCC markets ending on a negative note amid traders selling pressure on dividend related l d adjustments dj and d also l a mixed i d set off global l b l cues. UAE (DFM ‐1.4% 1 4% WTD, WTD ADX ‐1.2% 1 2% WTD) and d Qatari Q i (‐1.9% ( 1 9% WTD) equities ii underperformed as compared to the other markets. Oman also ended lower for the week (‐0.6% WTD) amid selling pressure seen in the frontline stocks (esp. telecom sector) amid announcement of the dividend withholding tax and also weakening outlook. We expect the MSM and the regional markets to open on a flattish note for the week and to see range bound trade during the coming sessions. We do expect the upcoming US Fed rate increase to impact the flows to the regional markets and this may impact the short term performance. We see technical support for MSM at 5,780 points and resistance around 5,875 levels. GBCM Morning Briefing 8
  9. 2016  Dividends/ 2017 AGM Calendar  FY2016 Company‐ Figures in RO 000s Last  Closing Par Value Market  Cap   Al Batinah Dev. Inv. Holding Al Batinah Hotels Muscat Thread Mills Computer Stationery Oman National Engineering United Power Gulf Mushroom National Biscuit Raysut Cement Hotel Management National Detergent Muscat Gases Bank Muscat S Sweets of Oman t fO Ubar Hotels Al Sharqia Inv. Holding Al Maha Petro Ooredoo Al Omaniya Financial Services Al Omaniya Financial Services Oman Cement Al Anwar Ceramics Al Jazeira Services Salalah Beach Resort Oman Oil Marketing Oman Oil Marketing National Bank of Oman Al Maha Ceramics Oman Cables Salalah Port Services Port Services National Gas 0.101 1.125 0.094 0.260 0.161 3.400 0.336 3.750 1 475 1.475 1.250 0.704 0.582 0.476 1 340 1.340 0.129 0.133 1.590 0.604 0 286 0.286 0.490 0.170 0.195 1.380 1.860 0.247 0.486 1.600 0.632 0.322 0.532 0.100 1.000 0.100 0.100 0.100 1.000 0.100 1.000 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 1.000 0.100 0.100 0.100 0.100 0.100 0.100 0.100 3030 4074 1390 2600 16100 6800 11555 3750 295000 3750 11977 17460 1188215 9380 6452 11970 109710 393168 76608 162128 50356 21785 8625 119970 364271 25515 143520 113657 30603 29260 Equity   3000 3621 1479 1000 10000 2000 3439 1000 20000 3000 1701 3000 249625 700 5002 9000 6900 65094 26786 33087 29621 11172 6250 6450 147478 5250 8970 17984 9504 5500 PAT  EPS  DPS 383 19 66 126 1,249 941 317 647 20 734 20,734 1,877 1,108 804 176,560 502 473 1,109 8,086 46,300 5 311 5,311 12,227 1,700 1,641 498 9,602 , 55,800 2,091 15,254 5,726 2,716 2,796 0.013 0.005 0.004 0.013 0.012 0.471 0.009 0.647 0 104 0.104 0.626 0.065 0.027 0.071 0 072 0.072 0.009 0.012 0.117 0.071 0 020 0.020 0.037 0.006 0.015 0.080 0.149 0.038 0.040 0.170 0.032 0.029 0.051 0.006 0.000 0.003 0.010 0.010 0.500 0.000 0.150 0 065 0.065 0.750 0.050 0.030 0.025 0 040 0.040 0.004 0.005 0.100 0.042 0 017 0.017 0.030 0.008 0.015 0.080 0.060 0.016 0.030 0.085 0.020 0.055 0.011 Source: Bloomberg, GBCM Research, ** Div. Yield calculated on distributed Cash Dividends only GBCM Morning Briefing 9 Dividend  Cash  Cash  Stock  Payout (%) Dividends  Dividend Dividend 47.0% 0.0% 55.7% 79.6% 80.1% 106.3% 0.0% 23.2% 62 7% 62.7% 119.9% 76.8% 111.9% 35.3% 55 8% 55.8% 42.3% 40.6% 85.3% 59.0% 85 7% 85.7% 81.2% 139.4% 102.1% 100.4% 40.3% 42.1% 75.9% 50.0% 62.8% 192.4% 21.6% 180 0 37 100 1000 1000 0 150 13000 2250 851 900 62406 280 200 450 6900 27339 4554 9926 2370 1676 500 3870 23478 1588 7625 3597 5227 605 6.0% 0.0% 2.5% 10.0% 10.0% 50.0% 0.0% 15.0% 65 0% 65.0% 75.0% 50.0% 30.0% 25.0% 40 0% 40.0% 4.0% 5.0% 100.0% 42.0% 17 0% 17.0% 30.0% 8.0% 15.0% 8.0% 60.0% 15.9% 30.2% 85.0% 20.0% 55.0% 11.0% 0.0% 0.0% 2.5% 0.0% 0.0% 0.0% 10.0% 0.0% 0 0% 0.0% 0.0% 0.0% 0.0% 5.0% 0 0% 0.0% 0.0% 0.0% 0.0% 0.0% 0 0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5.0% 4.8% 0.0% 0.0% 0.0% 9.1% Mand.  Mand Conv.  Bonds 8 0% 8.0% Dividend  AGM Date Yield (%) 5.9% 0.0% 2.7% 3.8% 6.2% 14.7% 0.0% 4.0% 4 4% 4.4% 60.0% 7.1% 5.2% 5.3% 3 0% 3.0% 3.1% 3.8% 6.3% 7.0% 5 9% 5.9% 6.1% 4.7% 7.7% 5.8% 3.2% 6.4% 6.2% 5.3% 3.2% 17.1% 2.1% 5‐Mar‐17 7‐Mar‐17 8‐Mar‐17 8‐Mar‐17 12‐Mar‐17 13‐Mar‐17 13‐Mar‐17 14‐Mar‐17 14‐Mar‐17 15‐Mar‐17 15‐Mar‐17 16‐Mar‐17 19‐Mar‐17 19 M 17 19‐Mar‐17 19‐Mar‐17 19‐Mar‐17 20‐Mar‐17 20‐Mar‐17 21‐Mar‐17 21‐Mar‐17 21‐Mar‐17 21‐Mar‐17 22‐Mar‐17 23‐Mar‐17 23 Mar 17 26‐Mar‐17 26‐Mar‐17 26‐Mar‐17 27‐Mar‐17 27‐Mar‐17 27‐Mar‐17
  10. 2016  Dividends/ 2017 AGM Calendar  FY2016 Par Value Market  Cap   Muscat National Holding 1.770 1.000 8850 5000 1,339 0.268 0.100 37.3% 500 10.0% 100.0% 5.6% 27‐Mar‐17 Oman United Insurance 0.398 0.100 39800 10000 4,053 0.041 0.030 74.0% 3000 30.0% 0.0% 7.5% 28‐Mar‐17 Voltamp Energy 0.520 0.100 31460 6050 3,630 0.060 0.018 30.0% 1089 18.0% 17.0% 3.5% 29‐Mar‐17 A Saffa Foods 0.800 0.100 96000 12000 4,575 0.038 0.020 52.5% 2400 20.0% 0.0% 2.5% 29‐Mar‐17 Ominvest 0.526 0.100 334426 63579 23,900 0.038 0.015 39.9% 9537 15.0% 10.0% 2.9% 29‐Mar‐17 Al Kamil Power Al Kamil Power 0.312 0.100 30030 9625 3,728 , 0.039 0.010 25.8% 963 10.0% 0.0% 3.2% 31 Jul 17 31‐Jul‐17 Port Services 0.322 0.100 30603 9504 2851 30.0% 0.0% 9.3% 1‐Aug‐17 Sahara Hospitality 2.500 1.000 14583 5833 2,490 0.427 0.150 35.1% 875 15.0% 0.0% 6.0% National Finance 0.156 0.100 42296 27113 6,349 0.023 0.014 59.8% 3796 14.0% 3.0% 9.0% Bank Dhofar 0 257 0.257 0 100 0.100 488094 189920 47 622 47,622 0 025 0.014 0.025 0 014 53 8% 53.8% 25639 13 5% 13.5% 7 5% 7.5% 5 3% 5.3% Ahli Bank 0.202 0.100 287857 142504 29,600 0.021 0.010 48.1% 14250 10.0% 0.0% 5.0% Oman Orix Leasing 0.135 0.100 33890 25104 5,531 0.022 0.009 40.8% 2259 9.0% 4.0% 6.7% Taageer Finance 0.134 0.100 33981 25359 4,474 0.018 0.013 73.7% 3297 13.0% 0.0% 9.7% Shell Oman 2.000 0.100 200000 10000 16,000 0.160 0.106 66.3% 10600 106.0% 0.0% 5.3% Bank Sohar 0.158 0.100 253511 160450 19,112 0.012 0.005 42.0% 8023 5.0% 10.0% 3.2% United Finance 0.155 0.100 50577 32630 4,505 0.014 0.010 72.4% 3263 10.0% 5.0% 6.5% HSBC Bank Oman 0.128 0.100 256040 200031 16,900 0.008 0.005 59.2% 10002 5.0% 0.0% 3.9% Oman Fiber Optic 4.570 1.000 32973 7215 2,536 0.351 0.300 85.4% 2165 30.0% 0.0% 6.6% Muscat Finance 0.140 0.100 37341 26672 5,138 0.019 0.010 51.9% 2667 10.0% 7.0% 7.1% Oman Chromite 3.640 1.000 10920 3000 489 0.163 0.100 61.3% 300 10.0% 0.0% 2.7% Gulf Stone 0.120 0.100 4356 3630 375 0.010 0.010 96.9% 363 10.0% 0.0% 8.3% Equity   PAT  EPS  DPS Dividend  Cash  Cash  Stock  Payout (%) Dividends  Dividend Dividend Mand.  Conv.  Bonds Last  Closing Company‐ Figures in RO 000s 0.030 Source: Bloomberg, GBCM Research, ** Div. Yield calculated on distributed Cash Dividends only GBCM Morning Briefing 10 Dividend  AGM Date Yield (%)
  11. 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 (%) Final Dividends Al Jazeera Steel Products Omantel Gulf Hotels Sembcorp Salalah Omantel SMN Power Sembcorp Salalah Sembcorp Salalah SMN Power Phoenix Power Phoenix Power 0.254 0.100 31724 12490 4,601 0.037 0.009 24.4% 1124 9.0% 0.0% 3.5% 1.405 0.100 1053750 75000 116,700 0.156 0.070 45.0% 52500 70.0% 0.0% 5.0% 10.495 1.000 35977 3428 1,735 0.506 0.250 49.4% 857 25.0% 0.0% 2.4% 0 245 0.245 0 100 0.100 233870 95457 14 629 14,629 0 015 0.015 0 004 0.004 23 5% 23.5% 3436 3 6% 3.6% 0 0% 0.0% 1 5% 1.5% 1.405 0.100 1053750 75000 22500 30.0% 0.0% 2.1% 0.696 0.100 138946 19964 11,752 0.059 0.016 27.2% 3194 16.0% 0.0% 2.3% 0.245 0.100 233870 95457 14,629 0.015 0.010 67.9% 9928 10.4% 0.0% 4.2% 0.696 0.100 138946 19964 3394 17.0% 0.0% 2.4% 0.146 0.100 213540 146260 18,458 0.013 0.003 25.4% 4680 3.2% 0.0% 2.2% 0.146 0.100 213540 146260 18,458 0.013 0.005 37.2% 6874 4.7% 0.0% 3.2% 0.030 0.017 Source: Bloomberg, GBCM Research, ** Div. Yield calculated on distributed Cash Dividends only GBCM Morning Briefing 11 23‐Mar‐17 30‐Mar‐17 2‐Apr‐17 Aug‐17 1‐May‐17 1 Nov 17 1‐Nov‐17 25‐Nov‐17 Jul‐17 Jan‐18
  12. UAE  News Dubai unveils plan to develop city's largest public park (Source: Arabian Business)  Dubai Holding has signed an agreement with Dubai Municipality to develop the largest public park in the emirate. It added that when completed, this park will increase public space in Dubai by 17%.  Stretching across an area of 1.43 million sq m in Dubailand, the park will act as a "new destination for residents and tourists and provide a vibrant, natural environment, encouraging individuals to lead a healthy and active lifestyle”.  The park will also include 30km of pedestrian pathways, 20km of jogging tracks, over 14km of cycle tracks and over 7km of nature trails. It will also feature 55 playgrounds for children, 45 sports grounds, five major events spaces and retail space for shops, restaurants and coffee shops.  The h parkk will ill have h smart cards d for f ticketing i k i and d purchasing h i and d Wi‐fi i fi connectivity i i throughout. h h The h construction i off first fi phase h off the h park, k covering 318,000 sq m, is scheduled to start later 2017, and will offer a 4km jogging track, 7km of pedestrian pathways and 2km cycling track. Etisalat to invest more than Dh3 billion in 2017, CEO says (Source: Gulf News)  Etisalat plans to invest more than Dh3 billion in 2017 to develop infrastructure and expand mobile and fibre optic networks across UAE, as per news sources quoting CEO of the company.  These investments will improve coverage across the country as well as prepare the network towards the deployment and requirements of 5G technologies h l i  Due to these investments, 3G network coverage has reached more than 99% while 4G LTE is at more than 95%. Fibre to the home (FTTH) penetration has grown over the last year to reach 93.7%. GBCM Morning Briefing 12
  13. GCC News Investcorp acquires 3i ’s debt management business (Source: Trade Arabia)  Investcorp said it has completed the acquisition and integration of “3iDM,” the debt management business of 3i Group. The business, now recognized as Investcorp Credit Management (ICM), adds $11 billion of assets under management, bringing the total to $21.4 billion.  The ICM is a leading global credit investment platform, managing funds which invest primarily in senior secured corporate debt issued by mid and d large‐cap l corporates in Western Europe and d the h US.  The business has a strong track record of consistent performance and growth, employing approximately 50 people in London, New York and Singapore. Saudi di Arabia bi to launch l h new airline i li in i mid‐2017 id (Source: Trade Arabia)  Saudi Arabia's General Authority of Civil Aviation (GACA) plans to launch a new airline ‐ Al‐Maha Airways ‐ in July as part of its big expansion strategy, said a report.  The GACA also aims to convert all regional airports in the kingdom into international airports and link small cities together without the need for passengers to travel by Riyadh, Jeddah and Dammam to reach their destinations under this ambitious plan. Qatar tells banks to obey new FX limits by April 1 (Source: Gulf Business)  Qatar’s central bank told commercial banks that they would have to obey new restrictions on open positions in foreign currency by April 1.  In April 2016, the central bank had said it planned to introduce a ceiling on total foreign currency positions surplus or deficit of 30% of each bank’s capital and reserves.  The h centrall bank b k said d the h rule, l which h h would ld “limit “l the h risks k off foreign f currency open positions”, ” would ld also l apply l to Qatari banks’ b k ’ foreign f branches. But it will not apply at the level of banks’ subsidiaries, or to hedging transactions.  Under previous regulations, lenders’ foreign currency assets were required to be at least equal to their liabilities. GBCM Morning Briefing 13
  14. GCC News Kuwait chooses consortium to advise on Az ‐Zour power project IPO (Source: Reuters)  Kuwait has chosen a consortium led by NBK Capital to advise on an initial public offer of shares in the Az‐Zour North One power scheme, as per news sources  The government plans to launch the emirate's first IPO for an independent power project this year, selling 50 percent of the Az‐Zour North Independent d d Water & Power Project.  Kuwait and other Gulf states are promoting independent power projects, in which companies other than public utilities invest in and operate power plants, to reduce the burden on state budgets and increase efficiency.  Az‐Zour A Z N th One, North O with ith a capacity it off att least l t 1,500 1 500 MW, MW is i 40 percentt owned d by b France's F ' Engie, E i Japan’s J ’ Sumitomo S it C Corp and d Kuwaiti K iti firm fi AH Al Sagar & Brothers. Saudi Electricity exempted from 2% power consumption fee (Source: Argaam)  Saudi Electricity Co. (SEC) has been exempted from paying a 2% power consumption fee to the municipalities by virtue of a royal decree, the utility firm said in a statement.  Accordingly, the outstanding payments to the municipalities until the end of 2016 will be canceled. SEC will cut current liabilities in the balance sheet, which will be recorded as non‐recurring revenue in the comprehensive income statement at SAR 6.1 billon.  Meanwhile, operating expenses will be also reduced by 2% from March 2, the statement added. The exemption was confirmed by a letter from the Electricity & Cogeneration Regulatory Authority (ECRA). GBCM Morning Briefing 14
  15. | 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. 3/5/2017 GBCM Morning Briefing 15