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GCC Equity Market Monitor - 6 March

Majed Salah
By Majed Salah
5 years ago
GCC Equity Market Monitor - 6 March

Dinar, Islam, Shariah , Rub, Sales


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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 6, 2017 3/6/2017
  2. GCC  ‐ Equity Market Monitor 20.0% 15.0% 10.0% 5.0% 0.0% ‐5.0% Oman Saudi UAE (DFM) UAE (DFM) UAE (ADX) UAE (ADX) Kuwait ‐ PI Kuwait  Daily Return YTD Return ‐0.1% 0.4% ‐0.7% ‐3.4% ‐1.1% 0.4% ‐0.7% 0.4% 0.6% 18.4% Kuwait ‐ Wtd 0.3% 12.0% MTD Return 0.5% ‐0.1% ‐2.4% 0.3% 0.3% 0.4% Source: Respective Stock Markets, Bloomberg, GBCM Research GBCM Morning Briefing 2 Qatar Bahrain 0.0% 2.7% 0.1% 10.0% 0.2% ‐0.5%
  3. MSM  ‐ Net Buy/(Sell) Position Top 5 ‐ Turnover Market Share – Previous Day Previous Day Turnover: RO 4.846 million (c. US$ 12.6 million) Value Leaders Sector Turnover (RO) Market Share Figures In RO Al Anwar Holding Inv Hldg 1,088,975 22.5% Oman Fisheries Oman Fisheries Services 787 965 787,965 16 3% 16.3% BUY SELL NET 4,513,133 4,513,133  3,666,146 3,666,146  846,987 846,987  GCC 94,919  422,863  (327,944) Omantel Services 543,460 11.2% Arabs 39,449  54,873  (15,424) Al Suwadi Power Utilities 272,596 5.6% OTHERS 198,869  702,488  (503,619) Al Madina Takaful Insurance 248,338 5.1% OMANIS 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 6,693,983  9.7 1.2 5.3% MSM 30 5,807.81 5,815.06 ‐0.12% 0.48% 0.43% Financial 3,452,701  9.0 0.9 4.5% Financial 8,204.88 8,181.27 0.29% 0.49% 6.95% Industrial 1,010,795  16.1 1.4 4.7% Industrial 8,018.83 7,970.58 0.61% 1.41% 8.26% Services 2,917,968  10.3 1.7 6.3% Services 3,029.21 3,031.41 ‐0.07% 0.71% ‐0.97% MSM Shariah 2,734,619  11.0 1.6 6.0% 860.18 860.98 ‐0.09% 0.73% ‐1.02% MSM Shariah 3/6/2017 GBCM Morning Briefing 3
  4. MENA  Markets Performance Index  Global Markets Performance Closing   MENA  % Chg %MTD %YTD   4.7 0.0 ‐0.3 0.1 0.7 2.6 1.3 1.9 1.9 2.4 0.7 14.8 0.0 ‐0.1 0.4 0.8 0.5 0.7 0.6 0.4 0.3 0.7 5.0 5.7 0.8 6.9 6.7 1.1 Egypt Jordan Tunis  Morocco Palestine Turkey 12,499.6 1.5 2,212.1 ‐0.1 5,591.3 0.0 25,047.3 ‐0.3 533.9 0.3 89,722.1 ‐0.2 MENA Benchmark (S&P/ MSCI) S&P GCC LMC 122.0 ‐0.4 S&P GCC (USD) 100.1 ‐0.4 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 0.4 07 0.7 0.4 0.1 0.8 1.3 ‐0.4 10 1.0 ‐0.4 ‐0.5 0.8 1.3 7.5 91 9.1 4.1 2.7 ‐3.8 %MTD %YTD %YTD  0.3 0.2 ‐0.7 ‐1.0 ‐0.7 0.6 ‐0.3 ‐0.4 0.0 ‐0.1 ‐1.1 ‐0.2 ‐1.9 0.0 0.0 0.0 ‐0.1 0.0 0.0 ‐0.7 0.8 0.4 2.7 ‐0.4 1.4 1.0 0.7 ‐0.1 1.7 5.1 0.8 ‐5.2 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 ‐0.3 ‐0.1 Commodity (Bloomberg)  Commodity  87.4 0.3 Source: Data taken from Bloomberg GBCM Morning Briefing 19,368.2 23,640.0 29 042 8 29,042.8 3,230.1 2,081.4 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 101.470 1.060 1.339 113.910 1.229 8.984 1.009 6.895 7.764 66.761 0.758 13363.000 3.718 0.385 3.673 3.750 0.306 3.641 0.377 ‐0.1 ‐0.2 ‐0.1 0.1 0.0 0.0 ‐0.1 0.1 0.0 0.1 ‐0.3 0.1 ‐0.3 0.0 0.0 0.0 0.1 0.0 0.0
  5. Commodities  Performance Index  Petrochemical Performance Closing   % Chg %MTD %YTD  NYMEX Crude 53.1 ‐0.4 ‐1.7 ‐4.2 ICE Brent Crude 55.7 ‐0.4 ‐1.4 ‐4.0 Crude Oil, Oman  54.8 0.9 ‐0.7 0.9 NYMEX Natural Gas  2.9 3.1 5.0 ‐18.3 164.8 ‐0.3 ‐4.7 ‐11.4 Precious Metals Gold Spot  1,233.5 ‐0.1 ‐1.2 7.1 Silver Spot 17.9 ‐0.7 ‐2.5 12.2 Platinum Spot  994.2 ‐0.6 ‐2.9 10.0 Palladium Spot  777.4 1.3 0.7 13.7 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  382 0 382.0 03 0.3 22 2.2 69 6.9 Wheat ‐ Active Contract  458.3 1.0 3.3 9.0 CBOT ‐ Soya bean  1,042.8 0.5 0.7 3.0 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)  9,710.0 0.8 ‐2.4 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 3/6/2017 GBCM Morning Briefing 5
  6. Oman News Real estate transactions data in Oman – January 2017 (Source: Times of Oman)  Oman witnessed a 36.8% fall in the traded value of real estate properties in Jan 2017 at RO 235.1 million, compared to the same period in 2016. Also, the number of contracts fell by 32.8% to 5,582 in January, compared to 8,308 contracts for the same period in 2016.  The total value of the 68,145 real estate transactions in 2016 stood at RO 6,622.4 million. The government authorities collected some RO 6.8 million by way of fees for these sales deeds in January this year, against RO 5.7 million collected in the same period last year.  The report said that the value of the Sultanate’s mortgage contracts dropped by 49.7% to RO 126.4 million, from RO 251.3 million during the same period. Also, the number of mortgage contracts fell by 20.9% to 1,726, against 2,181 in January 2016.  , plots in Januaryy 2017 in different ggovernorates,, which mainlyy include housingg p p plots,, The Sultanate’s Ministryy of Housingg allotted 2,143 against 3,891 plots in the same period of 2016. This did not include the wilayat of Sohar.  Among different governorates, plot allotments in Al Dakhliyah was the highest, at 906 plots in January 2017, showing a 68.1% growth over the same period of 2016. This was followed by Muscat at 301 plots, Musandam at 229 plots, Al Batinah South at 197 plots, Al Sharqiyah South at 197 plots and Al Sharqiyah North at 155 plots. Muscat Life Assurance rating affirmed (Source: Oman Tribune)  AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long‐Term Issuer Credit Rating of “bbb‐” of Muscat Life p y ((MLAC). ) The outlook of these Credit Ratings g ((ratings) g ) remains stable. Assurance Company  The ratings of Muscat Life Assurance reflect the company’s strong risk‐adjusted capitalisation and track record of good operating performance. Muscat Life Assurance’s very limited business profile in the Oman insurance market remains an offsetting rating factor.  The ratings of Muscat Life Assurance received rating enhancement as a result of its continued strategic importance to the Muscat National Holding Company group, inclusive of the strength of its affiliated company, Muscat Insurance Company.  Muscat Life Assurance’s strong risk‐adjusted capitalisation is supported by the company’s very low net underwriting leverage, with Muscat Life Assurance’s capital base remaining sufficient to support the company’s growth in underwriting risk in recent years. GBCM Morning Briefing 6
  7. MSM ‐ Market Watch Source Bloomberg, Source: Bloomberg GBCM Research Market Outlook – Consolidation trend to prevail amid ongoing dividend season… During the previous trading session, we saw mixed closing among the regional markets amid weak global market sentiments along with i h the h ongoing i dividend di id d season. Kuwaiti K i i markets k revealed l d outperformance f trend. d Oman O ended d d on a flattish fl i h note amid id increased i d market participation from the retail investors. We anticipate the local and the GCC markets to reveal consolidation trend for the day amid the ongoing dividend season. We continue to advise investors to look at stable dividend yielding stocks. We see technical support for MSM at 5,775 points and resistance around 5,860 levels. GBCM Morning Briefing 7
  8. 2016  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 (%) Al Batinah Hotels 1.125 1.000 4074 3621 19 0.005 0.000 0.0% 0 0.0% 0.0% 0.0% 7‐Mar‐17 Muscat Thread Mills 0.094 0.100 1390 1479 66 0.004 0.003 55.7% 37 2.5% 2.5% 2.7% 8‐Mar‐17 Computer Stationery 0 260 0.260 0 100 0.100 2600 1000 126 0 013 0.013 0 010 0.010 79 6% 79.6% 100 10 0% 10.0% 0 0% 0.0% 3 8% 3.8% 8‐Mar‐17 Oman National Engineering 0.161 0.100 16100 10000 1,249 0.012 0.010 80.1% 1000 10.0% 0.0% 6.2% 12‐Mar‐17 United Power 3.400 1.000 6800 2000 941 0.471 0.500 106.3% 1000 50.0% 0.0% 14.7% 13‐Mar‐17 Gulf Mushroom 0.336 0.100 11555 3439 317 0.009 0.000 0.0% 0 0.0% 10.0% 0.0% 13‐Mar‐17 National Biscuit 3.750 1.000 3750 1000 647 0.647 0.150 23.2% 150 15.0% 0.0% 4.0% 14‐Mar‐17 Raysut Cement 1.475 0.100 295000 20000 20,734 0.104 0.065 62.7% 13000 65.0% 0.0% 4.4% 14‐Mar‐17 Hotel Management 1.250 1.000 3750 3000 1,877 0.626 0.750 119.9% 2250 75.0% 0.0% 60.0% 15‐Mar‐17 National Detergent 0.704 0.100 11977 1701 1,108 0.065 0.050 76.8% 851 50.0% 0.0% 7.1% 15‐Mar‐17 Muscat Gases 0.582 0.100 17460 3000 804 0.027 0.030 111.9% 900 30.0% 0.0% 5.2% 16‐Mar‐17 Bank Muscat 0.476 0.100 1188215 249625 176,560 0.071 0.025 35.3% 62406 25.0% 5.0% 5.3% 19‐Mar‐17 Sweets of Oman 1.340 0.100 9380 700 502 0.072 0.040 55.8% 280 40.0% 0.0% 3.0% 19‐Mar‐17 Ubar Hotels 0.129 0.100 6452 5002 473 0.009 0.004 42.3% 200 4.0% 0.0% 3.1% 19‐Mar‐17 Al Sharqia Inv. Holding 0.133 0.100 11970 9000 1,109 0.012 0.005 40.6% 450 5.0% 0.0% 3.8% 19‐Mar‐17 Al Maha Petro 1.590 0.100 109710 6900 8,086 0.117 0.100 85.3% 6900 100.0% 0.0% 6.3% 20‐Mar‐17 Ooredoo Oo edoo 0.604 0.100 393168 65094 46,300 0.071 0.042 59.0% 27339 42.0% 0.0% 7.0% 20‐Mar‐17 0 a Al Omaniya Financial Services 0.286 0.100 76608 26786 5,311 0.020 0.017 85.7% 4554 17.0% 0.0% 5.9% 21‐Mar‐17 Oman Cement 0.490 0.100 162128 33087 12,227 0.037 0.030 81.2% 9926 30.0% 0.0% 6.1% 21‐Mar‐17 Al Anwar Ceramics 0.170 0.100 50356 29621 1,700 0.006 0.008 139.4% 2370 8.0% 0.0% 4.7% 21‐Mar‐17 Al Jazeira Services 0.195 0.100 21785 11172 1,641 0.015 0.015 102.1% 1676 15.0% 0.0% 7.7% 21‐Mar‐17 Salalah Beach Resort Salalah Beach Resort 1.380 1.000 8625 6250 498 0.080 0.080 100.4% 500 8.0% 0.0% 5.8% 22 Mar 17 22‐Mar‐17 Oman Orix Leasing 0.135 0.100 33890 25104 5,531 0.022 0.009 40.8% 2259 9.0% 4.0% 6.7% 22‐Mar‐17 Oman Oil Marketing 1.860 0.100 119970 6450 9,602 0.149 0.060 40.3% 3870 60.0% 0.0% 3.2% 23‐Mar‐17 National Bank of Oman 0.247 0.100 364271 147478 55,800 0.038 0.016 42.1% 23478 15.9% 5.0% 6.4% 26‐Mar‐17 Al Maha Ceramics 0.486 0.100 25515 5250 2,091 0.040 0.030 75.9% 1588 30.2% 4.8% 6.2% 26‐Mar‐17 O Oman Cables C bl 1 600 1.600 0 100 0.100 143520 8970 15 254 15,254 0 170 0.170 0 085 0.085 50 0% 50.0% 7625 85 0% 85.0% 0 0% 0.0% 5 3% 5.3% 26 M 17 26‐Mar‐17 Source: Bloomberg, GBCM Research, ** Div. Yield calculated on distributed Cash Dividends only GBCM Morning Briefing 8 8.0%
  9. 2016  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 (%) Salalah Port Services 0.632 0.100 113657 17984 5,726 0.032 0.020 62.8% 3597 20.0% 0.0% 3.2% 27‐Mar‐17 Port Services 0.322 0.100 30603 9504 2,716 0.029 0.055 192.4% 5227 55.0% 0.0% 17.1% 27‐Mar‐17 National Gas 0.532 0.100 29260 5500 2,796 0.051 0.011 21.6% 605 11.0% 9.1% 2.1% 27‐Mar‐17 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 Taageer Finance 0.134 0.100 33981 25359 4,474 0.018 0.013 73.7% 3297 13.0% 0.0% 9.7% 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 HSBC Bank Oman 0.128 0.100 256040 200031 16,900 0.008 0.005 59.2% 10002 5.0% 0.0% 3.9% 30‐Mar‐17 Al Kamil Power 0 312 0.312 0 100 0.100 30030 9625 3 728 3,728 0 039 0.039 0 010 0.010 25 8% 25.8% 963 10 0% 10.0% 0 0% 0.0% 3 2% 3.2% 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% B k Dh f Bank Dhofar 0 257 0.257 0 100 0.100 488094 189920 47 622 47,622 0 025 0.025 0 014 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% 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 United Finance 0.155 0.100 50577 32630 4,505 , 0.014 0.010 72.4% 3263 10.0% 5.0% 6.5% 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% 0.030 Source: Bloomberg, GBCM Research, ** Div. Yield calculated on distributed Cash Dividends only GBCM Morning Briefing 9
  10. 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 Final Dividends Al Jazeera Steel Products 0.254 0.100 31724 12490 4,601 0.037 0.009 24.4% 1124 9.0% 0.0% 3.5% 23‐Mar‐17 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 Gulf Hotels 10.495 1.000 35977 3428 1,735 0.506 0.250 49.4% 857 25.0% 0.0% 2.4% Sembcorp Salalah 0.245 0.100 233870 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 0.696 0.100 138946 19964 11,752 0.059 0.016 27.2% 3194 16.0% 0.0% 2.3% 1‐May‐17 Sembcorp Salalah 0.245 0.100 233870 95457 14,629 0.015 0.010 67.9% 9928 10.4% 0.0% 4.2% 1‐Nov‐17 SMN Power 0.696 0.100 138946 19964 3394 17.0% 0.0% 2.4% 25‐Nov‐17 Phoenix Power 0.146 0.100 213540 146260 18,458 0.013 0.003 25.4% 4680 3.2% 0.0% 2.2% Jul‐17 Phoenix Power 0.146 0.100 213540 146260 18,458 0.013 0.005 37.2% 6874 4.7% 0.0% 3.2% Jan‐18 0.030 0.017 Source: Bloomberg, GBCM Research, ** Div. Yield calculated on distributed Cash Dividends only GBCM Morning Briefing 10
  11. UAE  News DFM set to regulate local exchange‐traded funds (Source: The National)  The Dubai Financial Market (DFM) has given the green light to a platform enabling the trading of locally domiciled exchange‐traded funds (ETFs). ETFs are similar to mutual funds, in that they track an asset or series of assets including stocks, commodities and bonds, but differ in that they are listed on stock exchanges and charge minimal fees.  The h DFM launched l h d the h new ETF platform l f yesterday d at the h exchange, h after f f l finalising regulations l f the for h marketing k and d trading d off the h securities. Under new regulations, trading in ETFs on the DFM is confined to market makers, authorized participants and liquidity providers. Abu Dhabi aims to close $872 million solar plant financing in April (Source: Reuters)  Abu Dhabi's government‐owned power utility aims to close a financing package for a 3.2 billion dirham ($872 million) solar power plant, which will be the world's largest, in April.  Abu Dhabi Water & Electricity Authority (ADWEA) said it had selected a consortium of Japan's Marubeni Corp and China's JinkoSolar Holding to build and operate the 1,177 megawatt plant. The duo were selected from six bids received by ADWEA in September.  The plant, to become operational in 2019, will be funded 25% by equity and 75% by debt. ADWEA would contribute the equity while local and international banks would fund the debt. The winning bidders offered to provide electricity for 2.42 U.S. cents per kilowatt hour  A special‐purpose company would be formed to operate the project; ADWEA would own 60 percent of the company while Marubeni and Ji k would Jinko ld hold h ld 40 percent. t Power P generated t d would ld be b sold ld to t Abu Ab Dhabi Dh bi for f 25 years. Bank of Sharjah issues unsecured fixed‐rate notes worth $500 million (Source: Reuters)  Bank of Sharjah has issued senior unsecured fixed rate notes totalling U$500 million, for a five‐year maturity at mid swaps plus 225 basis points, i t to t yield i ld 4.23%, 4 23% the th lender l d said. id  The notes were issued under the bank’s recently‐established euro medium term note (EMTN) programme which is listed on the Irish Stock Exchange and rated BBB+ by Fitch. The notes were sold to a diversified investor base from the GCC and Asian and European markets.  The issue was 3.8 3 8 times oversubscribed with the book build at one point achieving a total of $1.9 $1 9 billion in bids GBCM Morning Briefing 11
  12. GCC News Saudi allocates $800 million for tourism project loans (Source: Gulf Business)  The Saudi Commission for Tourism and National Heritage (SCTH) has allocated SAR3bn ($800m) over the next three years to lend to hotel and tourism projects. It includes SAR397m ($105.8m) for the current year.  The commission’s vice president for investment and tourism development was quoted as saying 40 tourism project funding requests had b been received. d Eight h projects with h a totall cost off SAR424m, had h d been b processed d and d sent to the h Ministry off Finance for f approval.l  The kingdom is reportedly aiming to attract 1.5 million non‐pilgrim tourists by 2020 from around 200,000 last year. Saudi German gets SAR 100 million Islamic loan from NCB (Source: Argaam)  Middle East Healthcare Co. (MEAHCO), the owner and operator of the Saudi German Hospital (SGH) brand, sealed an Islamic Tayseer facility at a total value of SAR 100 million with National Commercial Bank (NCB).  The facility is valid until July 2017 and will be used to finance the company’s working capital requirements, it said in a statement. The loan, which was guaranteed by a promissory note, could be repaid in monthly, quarterly, biannual installments, or in lump sum. Saudi PMI hits 18‐month high on new order growth (Source: Argaam)  Saudi Arabia’s Purchasing Managers’ Index (PMI) rose to 57 in February, the highest reading since August 2015 due to a sharp rise in new orders and output, Emirates NBD said in its latest PMI report.  New order growth accelerated at the fastest rate in a year‐and‐a‐half, supported by higher new export orders. The surveyed firms also cited new projects, promotional activity and stronger underlying demand as reasons for the stronger growth in new work last month, the bank said.  Job creation continued to remain slow, with the employment index close to the neutral level at 50.3 in Feb marginally lower than January’s reading. Backlogs of work increased at the fastest rate since May 2015, due to strong rise in demand combined with weak jobs growth. GBCM Morning Briefing 12
  13. | 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. 3/6/2017 GBCM Morning Briefing 13