GCC Morning Brief - 11 June

Transcription

1. U Capital Morning Brief GCC Market Indices 11 June 2017 Current Close Previous Close Change D /D MTD Index Index Point % % % -1.58% -0.78% -0.45% -1.24% -1.24% -0.08% -0.03% -6.70% -6.78% -3.97% -3.05% -3.88% -7.40% -4.78% 18.01% -11.49% U-Capital Oman 20 Index U-Capital GCC 50 Index U-Capital MENA 200 Index Bloomberg GCC200 Index YTD Muscat Securities Market Saudi Stock Exchange Kuwait Stock Exchange Qatar Exchange Bahrain Stock Exchange 981.63 1,131.53 987.56 62.69 5,354.77 6,865.48 6,783.42 9,237.68 1,323.47 978.98 1,127.00 982.00 62.71 5,377.17 6,946.42 6,819.70 8,965.01 1,320.77 2.65 4.53 5.56 -0.02 (22.40) (80.94) (36.28) 272.67 2.70 0.27% 0.40% 0.57% -0.03% -0.42% -1.17% -0.53% 3.04% 0.20% 0.28% 8.44% Dubai Financial Market 3,400.10 3,406.01 (5.91) -0.17% 1.82% -3.70% 22.43 0.50% 1.11% -1.54% Abu Dhabi Sec. Exchange 4,476.57 4,454.14 Source: Bloomberg World Markets* Country Value Change Europe FTSE 100 DAX CAC 40 D/D Commodity Prices* Price Change D/D USD USD % Brent Crude (per bbl ) Updated 48.15 0.29 0.61 WTI Crude (per bbl ) Updated 45.83 0.19 0.42 Oma n Crude Oi l 47.13 0.21 0.45 1,266.63 (11.41) (0.89) 17.20 (0.24) (1.37) % United Kingdom Germany France 7,527.3 12,815.7 5,299.7 77.35 102.14 35.47 1.04 0.80 0.67 USA USA USA 21,272.0 2,431.8 6,207.9 89.44 (2.02) (113.85) 0.42 (0.08) (1.80) Japan 20,013.3 104.00 0.52 (Last Clo sing) United States DJIA S&P 500 NASDAQ Gol d100 OZ (per oz) Si l ver (per oz) Asia Pacific NIKKEI 225 HANG SENG Hongkong EGX 30 Index Blom Stock Index Tunis Egypt Lebanon 940.33 2.44 0.26 Copper, MT 5,804.00 74.50 1.30 26,030.3 (32.77) (0.13) Al umi ni um, MT 1,907.00 4.50 0.24 5,808.2 11.27 0.19 Lea d, MT 2,099.00 8.00 0.38 0.37 Zi nc, MT 2,533.00 66.00 2.68 Ni ckel , MT 8,980.00 165.00 1.87 Selected Middle East Tunis Se Index Pl a ti num (per oz) 13,683.7 1,165.8 50.68 (0.50) (0.04) So urce: B lo o mberg, U Capital- at 8:30A M M uscat time Source: Bloomberg, U Capital- at 8:30AM M uscat time Cross Rate for Major Currencies* Currency Code USD/1 Unit Units/1 USD Euro EUR 1.120 0.893 Bri ti s h Pound GBP 1.275 0.785 Ja pa nes e Yen JPY 0.009 110.320 Chi nes e Renmi nbi CNH 0.147 6.787 Indi a n Rupee INR 0.016 64.254 Rus s i a n Rubl e RUB 0.018 57.029 Ca na di a n Dol l a r CAD 0.743 1.347 Aus tra l i a n Dol l a r AUD 0.753 1.329 Source : Bloomberg Note: all prices/ indices are updated till 8:30 AM M uscat time.* markets are closed on Saturday and Sunday 1 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net
2. OMAN ECONOMIC & CORPORATE NEWS U Capital: Geopolitical tensions overshadow markets’ performance The local stock market, like other markets in the region, was affected by the recent geopolitical events which led to selling pressure especially by foreign investors who are traditionally highly sensitive to such events. This resulted in a drop at MSM30 by 1.48% on a weekly basis to 5,354.77 point. Moreover, possible merger news, fluctuations in oil prices, wait, and see strategy, in addition to expectations regarding upcoming financial results (second quarter / first half) also affected movements and trades. Source: Muscat Daily Fitch affirms six Omani banks’ long-term ratings Credit rating agency Fitch Ratings has affirmed the long-term issuer default ratings (IDR) of HSBC Bank Oman at ‘A-’ and Bank Muscat at ‘BBB’. National Bank of Oman (NBO), ahlibank, BankDhofar and Bank Sohar have also been affirmed at long-term IDR ‘BBB-’. Source: Muscat Daily Omani banks’ funding conditions improving, says Moody’s Omani banks’ funding conditions are continuing to improve this year as higher oil prices [compared to 2016] support the deposit levels and large international debt issuances by the government also help easing bank liquidity, Moody’s Investor Service said. Source: Muscat Daily Bank Sohar successfully raises $250 million syndicated loan Bank Sohar successfully closed a $250 million three-year syndicated term loan facility, in line with current strategies to maintain good credit capacity. The facility will be used for general funding purposes and to extend maturities of liabilities profile. Acting as the sole book runner and coordinating bank is Bahrain-based Bank ABC. Source: Times of Oman OETC raises $500m from international markets Following a successful road show, which covered core fixed income investors in the United States and the United Kingdom, the Oman Electricity Transmission Company (OETC) announced it has raised a $500 million from the international bond market recently. Source: Times of Oman United Finance Disclosure on Possible merger with Alizz Islamic Bank The Board of United Finance has met to discuss the letter received from Alizz Islamic Bank SAOG on 5th June 2017. The Board approved engaging in a dialogue with Alizz Islamic Bank to explore the possibility of merger, subject to it being on a full cash acquisition basis. This is subject to requisite regulatory and other approvals. Further disclosure concerning this matter will be made as and when there are developments to report. Source: MSM Website MIDDLE EAST ECONOMIC & CORPORATE NEWS Qatar could lose SAR50bn of Saudi investments More than 300 Saudi companies are investing around SAR 50 billion in the Qatar and could exit the market due to the growing tensions between the two countries. Source: Mubasher Saudi CMA approved public offering of investment fund The Saudi Capital Market Authority (CMA) has approved the public offering by Middle East Financial Investment Company of MEFIC Freestyle Saudi Equity Fund, according to a statement by the Saudi Stock Exchange (Tadawul). Source: Mubasher Saudi Arabia to roll out selective tax on Sunday On Sunday—halfway into the holy month of Ramadan—Saudi Arabia will introduce a “sin tax” on the consumption of several products that are deemed harmful to health, including cigarettes, and energy drinks. Source: Argaam Almarai to invest SAR12.5bn in next 5 years Almarai has announced that the Board of Directors (BOD) has carried out a review of the five-year plan for the period 2018-2022 in its latest meeting. Source: 4-traders 2 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net
3. SABIC ’s Ibn Sina POM plant to go operational in Q3 Saudi Basic Industries Corp.’s (SABIC) Ibn Sina Polyoxymethylene (POM) Project in Jubail Industrial City is expected to launch commercial operations in the third quarter of this year, SABIC said in a statement to Tadawul on Thursday. Source: Argaam Emaar hires Goldman Sachs to manage IPO of real estate unit Emaar Properties hired Goldman Sachs Group to manage the sale of shares in its UAE real estate development business in Dubai, Chairman Mohamed Alabbar said. Source: Arabian Business GCC, Egypt, Qatar dispute threatens trade exchange worth QAR 34bn The trade exchange volume between Qatar from one side and Egypt, Saudi Arabia, UAE, and Bahrain from the other side became threatened after the aforementioned countries cut their ties with Qatar. Source: Mubasher DP World ‘s P&O Maritime buys Spanish services operator Reyser DP World fully owned subsidiary P&O Maritime has acquired Reyser (Remolques y Servicios Maritimos, S.L.), a Spanish company providing maritime services internationally since 1966, from Bergé y Cía, S.A. The transaction value is below 5% of DP World’s net asset value. Source: Saudi Gazette MidEast airlines set to see profits slump to $400m in 2017 Middle East airlines are expected to post a $400 million profit this year, well down on the $1.1 billion seen in 2016, according to the International Air Transport Association (IATA). Source: Arabian Business INTERNATIONAL ECONOMIC & CORPORATE NEWS Pound falls after UK election shock, dollar gains The British pound fell to a seven-week low on Friday after a shock election result cast doubt on Britain's talks to leave the European Union, but key indices hit fresh record highs before tumbling technology shares drove the Nasdaq and S&P 500 lower. Source: Zawya Exclusive: Nordstrom family launches search for buyout partner – sources A group of Nordstrom Inc family members is talking to buyout firms about raising $1 billion to $2 billion in equity to fund a potential bid to take the U.S. department store operator private, according to people familiar with the matter. Source: Reuters Regional banks may keep lagging without Washington lift A rough few months for most U.S. bank stocks has been particularly unkind to regional banks, and that’s not likely to change soon as hopes dim for higher long-term interest rates and timely policy relief from Washington Source: Reuters Euro Drops After ECB Meeting; Focus Shifts to U.K. Election European Central Bank left rates and policies unchanged while trimming expectations for inflation through 2019. The euro declined versus all of its G-10 peers and fell below 1.1200 versus the dollar, its lowest this month. Source: Bloomberg COMMODITIES NEWS Gold slips; Palladium surges 7% to highest in 16 years Gold prices fell about 1 percent on Friday as the dollar strengthened while palladium leapt more than 7 percent as a surge in speculative demand forced industrial users to close out short positions, traders said. Source: Zawya Saudi's Falih Sees No Need to Alter Oil-Cuts Deal, Interfax Says Saudi Arabia doesn’t see any need for changes to the oil-cuts deal agreed on by OPEC and its allies last month in Vienna, Oil Minister Khalid Al-Falih said, according to Interfax. Source: Bloomberg 3 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net
4. Qatari LNG Diversions Shock EU Traders as Crisis Intensifies European energy markets started to feel the impact of the escalating diplomatic row in the Middle East after natural gas prices soared when tankers full of Qatari fuel abruptly changed course . Source: Bloomberg Ubhar Capital SAOC (U Capital) Website: www.u-capital.net PO Box 1137 PC 111, Sultanate of Oman Tel: +968 2494 9000 Fax: +968 2494 9099 Email: research@u-capital.net Disclaimer: This report has been prepared by research department in Ubhar Capital SAOC (U Capital), and is provided for information purposes only. Under no circumstances is to be used or considered as an offer to sell or solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained therein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such, and the bank accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents. All opinions and estimates included in this document constitute U Capital’s Research department judgment as of the date of production of this report, and are subject to change without notice. This report may not be reproduced, distributed or published by any recipient for any purpose. 4 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +968 2494 9000 l Fax: +968 2494 9099 l Email: info@u-capital.net l Web: www.u-capital.net