GCC Morning Brief - 2 July

Transcription

1. U Capital Morning Brief GCC Market Indices 2 July 2017 Current Close Previous Close Change Index Index Point % % % -5.55% 2.71% 2.07% 1.40% -5.60% 8.07% -0.33% -8.80% -10.55% -0.59% -0.60% -1.30% -11.49% 2.99% 17.65% -13.47% U-Capital Oman 20 Index U-Capital GCC 50 Index U-Capital MENA 200 Index Bloomberg GCC200 Index D/D MTD YTD Muscat Securities Market Saudi Stock Exchange Kuwait Stock Exchange Qatar Exchange Bahrain Stock Exchange 941.95 1,171.36 1,012.56 64.37 5,118.31 7,425.72 6,762.82 9,030.44 1,310.04 942.66 1,161.87 1,002.57 64.46 5,121.47 7,334.87 6,769.06 8,777.73 1,310.04 -0.71 9.49 9.99 -0.09 (3.16) 90.85 (6.24) 252.71 0.00 -0.08% 0.82% 1.00% -0.14% -0.06% 1.24% -0.09% 2.88% 0.00% -0.74% 7.34% Dubai Financial Market 3,392.00 3,379.01 12.99 0.38% 1.58% -3.93% Abu Dhabi Sec. Exchange 4,425.40 4,449.68 (24.28) -0.55% -0.04% -2.66% 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 48.77 1.14 2.39 WTI Crude (per bbl) Updated 46.04 1.11 2.47 Oman Crude Oil (Last Closing) 47.76 1.29 2.78 1,241.55 (3.97) (0.32) % United Kingdom Germany France 7,312.7 12,325.1 5,120.7 (37.60) (91.07) (33.67) (0.51) (0.73) (0.65) USA USA USA 21,349.6 2,423.4 6,140.4 62.60 3.71 (3.93) 0.29 0.15 (0.06) Gold100 OZ (per oz) Silver (per oz) 16.63 0.01 0.03 NIKKEI 225 Japan 20,033.4 (186.87) (0.92) Platinum (per oz) 927.50 7.02 0.76 HANG SENG Hongkong 25,764.6 (200.84) (0.77) Copper, MT 5,937.00 (3.00) (0.05) Aluminium, MT 1,919.00 4.00 0.21 (22.00) (0.95) United States DJIA S&P 500 NASDAQ Asia Pacific Selected Middle East Tunis Se Index Tunis 6,022.8 36.61 0.61 Lead, MT 2,292.00 EGX 30 Index Egypt 13,395.8 (21.33) (0.16) Zinc, MT 2,758.00 2.50 0.09 Blom Stock Index Lebanon 1,150.3 4.31 0.38 Nickel, MT 9,390.00 100.00 1.08 Source: Bloomberg, U Capital- at 8:30AM 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 1.143 0.875 Britis h Pound GBP 1.303 0.768 Japanes e Yen JPY 0.009 112.390 Chines e Renminbi CNH 0.148 6.781 Indian Rupee INR 0.015 64.579 Rus s ian Ruble RUB 0.017 58.943 Canadian Dollar CAD 0.771 1.296 Aus tralian Dollar AUD 0.769 1.301 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: MSM30: despite drop, higher trades on local and external developments Before Eid holidays, we saw multiple external factors (like continuity of geopolitical developments and oil prices movements) and internal factors such as 1) movements ahead of quarter end, 2) restructuring of investments and strategies in view of the recent rules for social insurance and pension funds and 3) international reports. Such factors led to higher activities and MSM30 to end the week down by 2.48% to 5,118.31. Source: Muscat Daily Vehicle sales skid in Oman as consumers play safe Oman recorded a drop in new vehicle registrations this year as uncertainty prevailed in consumer buying sentiments. NCSI (National Centre for Statistical Information) data showed that between January and May this year, only 22,579 new private vehicles were registered, which reflects a 22.7 per cent drop, compared with 29,208 new private vehicles registered during the same period last year. Source: Times of Oman 30pc jump in gypsum exports this year Gypsum exports from the Sultanate surged to 3.30 million metric tonnes (MMT) in the first five months of this year, up from 2.55 MMT for the corresponding period of 2016 — registering a solid 30 per cent increase that effectively puts Oman on pace to emerge as the world’s top exporter of natural gypsum within the next few years, according to a key industry executive. Source: Oman Observer S&P Global affirms QIC’s ‘A’ financial strength rating S&P Global has reaffirmed Qatar Insurance Company’s (QIC) ‘A’ rating with a stable outlook. The rating agency emphasised QIC’s recognised brand that has rapidly expanded outside its core territories, notably in the UK and in global reinsurance markets. Thanks to its diverse product offering, QIC has established a track record of good earnings. Source: Oman Observer Sultanate to head WTO dumping panel Oman has been elected chairman of the World Trade Organisation (WTO) anti-dumping practices committee for 2017-2018. The election took place during a meeting here. Said Faisal Bin Saud Al Nabhani, adviser to the Sultanate’s office at the WTO in Geneva and Chairman of the committee for the coming period, said the organisation would hold a meeting in October when a president and heads of councils and committees would also be elected. Source: Oman Tribune MIDDLE EAST ECONOMIC & CORPORATE NEWS Surge in IPO floats in the Middle East during Q1 A positive start to the year as the first quarter of 2017 saw a record high in number of IPOs (10) issued during one quarter in the Gulf Cooperation Council (GCC) within the past five years. The Saudi Stock Exchange (Tadawul) launched the first parallel market (NOMU) in the GCC. NOMU is an alternative equity market to the Tadawul, aimed at smaller cap companies although provides the possibility for companies to transition to the main market after a period of time. Source: Oman Observer Privatisation plans, reforms to boost GCC capital markets: IIF The privatisation plans and reforms being undertaken by the GCC governments are expected to boost capital market activity and foreign investment in the regional markets, according to the Institute of International Finance (IIF). In a research note released last week, the IIF said the oil crash has taken its toll on GCC stock markets which are still well below their average for 2014, with a market capitalisation of US$940bn (68 per cent of GCC GDP). Source: Muscat Daily Expat taxes to start today in Saudi Arabia Saudi Arabia’s monthly tax on expatriate family members and dependents will start today, said the kingdom’s finance minister Mohammed Al-Jadaan. Saudi Arabia will impose a monthly fee of SAR 100 per expat dependent. This will increase gradually by SAR 100 every year until 2020, amounting to SAR 400 per dependent per month in 2020. Source: Argaam UAE's Centurion Investments raises stake in NMC by 4.9% NMC Health , the London-listed and United Arab Emirates-based healthcare provider, said on Saturday its shareholder Centurion Investments had raised its stake in NMC by 4.9 percent. Centurion Investments has acquired 10 million shares, representing 4.9 percent of the issued capital of NMC from B.R. Shetty, also a shareholder in NMC, a company statement said. Source: Zawya 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. Fees over collapse of Al-Gosaibi Saudi business empire 'could hit $1bln' Lawyers, accountants and other professional advisers stand to make up to $1 billion in fees as a result of the collapse of the Saudi Arabia-based Al-Gosaibi business empire in 2009, one of the senior executives at the heart of the affair has told Arab News. Source: Zawya Saudi Ma'aden signs agreement with Fluor Fluor Corporation announced Thursday that it has signed a memorandum of understanding (MOU) with Saudi Arabian Mining Company (Ma’aden) to support future Ma’aden projects located within and outside the Kingdom of Saudi Arabia. Source: Zawya Tadawul awaits important events this weekSeveral British banks said on Friday they had stopped dealing in Qatari riyals, as the diplomatic crisis surrounding the tiny Gulf country disrupted overseas trading of its currency. Source: Zawya Tadawul awaits important events this week Investors in the Saudi Stock Exchange (Tadawul) are anticipating a series of major events in the upcoming week, between 2 and 6 July, led by the distribution of cash dividends by the National Commercial Bank (NCB). Source: Mubasher Saudi SEDCO Development to begin construction of Jeddah complex SEDCO Development has announced concluding an agreement with SEDCO Holding Group and Methak Holding Company to begin developing Al-Rawdah Complex in Jeddah, Saudi Arabia, Reuters reported. Source: Mubasher Dubai's Abraaj said to plan IPO of South African firm Abraaj Group is planning an initial public offering of South African food and personal care maker Libstar, which may value the firm at as much as $1 billion, according to people familiar with the matter. Source: Arabian Business Qatar CDS surge to 1-year high on Saudi-led ultimatum Qatar’s five-year credit default swaps (CDS) increased by 4 basis points (bps) to 115 bps on Monday compared to Friday’s close, Reuters reported, citing data released by IHS Markit. This level is the highest since June 2016, IHS said. The rise comes days after several Arab and Gulf countries gave Qatar an ultimatum that it needs to comply with, and almost a month after these countries announced severing ties with Qatar, accusing it of supporting terrorism. Source: Mubasher Saudi hotels lead GCC in occupancy, revenues in May – Report Saudi hotels enjoyed good occupancy rates and high revenues in May 2017, whereas data showed that the same items in the UAE weren’t as good compared to the-year ago period, according to new data revealed by Ernst & Young (EY). Source: Mubasher Saudi Economy Shrinks, Showing Task Facing New Crown Prince Saudi Arabia’s economy shrank by 0.5 percent in the first quarter, illustrating the scale of the challenge facing the country’s new heir as he overhauls an economy still reliant on a struggling oil industry. Source: Bloomberg KSA's rail system in Makkah looks to be moving along The tender for Phase 2 of Makkah’s first rail system may be awarded by next year, an official close to the project has said. According to Benjamin Highfield, executive vice president of HKA, the construction claims group of Hill International, government officials are currently in talks to secure funding for the project after previous reports said it may have been shelved due to budgetary strains. Source: Arabian Business INTERNATIONAL ECONOMIC & CORPORATE NEWS Russia Sticks to Conservative $40 Oil Forecast for 2018 Budget The Russian government is sticking to its conservative assumptions for oil prices as it drafts the budget for the next three years, relying mainly on domestic borrowing to finance the deficit in order to preserve its rainy-day funds. 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. Dropbox seeks to hire IPO underwriters – sources Data-sharing business Dropbox Inc is seeking to hire underwriters for an initial public offering that could come later this year, which would make it the biggest U.S. technology company to go public since Snap Inc (SNAP.N), people familiar with the matter said on Friday. Source: Reuters Big pharma turns to AI to speed drug discovery, GSK signs deal The world's leading drug companies are turning to artificial intelligence to improve the hit-and-miss business of finding new medicines, with GlaxoSmithKline unveiling a new $43 million deal in the field on Sunday. Source: Reuters Buffett's company to become Bank of America's top shareholder Warren Buffett's company will become the biggest shareholder in Bank of America Corp (BAC.N), after Berkshire Hathaway Inc (BRKa.N) on Friday invoked its right to acquire 700 million shares of the second-largest U.S. bank. Source: Reuters China to impose 3% VAT on asset management Asset managers will be levied with a new 3 percent value-added tax (VAT) for returns on assets under management from January 1, 2018, instead of the previously noticed 6 percent rate from July 1, 2017. Source: People’s Daily COMMODITIES NEWS Goldman Sees Oil Staying Lower Without Deeper OPEC Cuts OPEC may need to make deeper supply cuts to rebalance the oil market as booming production from Libya and Nigeria threatens to undercut the group’s efforts, according to analysts at Goldman Sachs Group Inc. Source: Bloomberg Oil up for seventh day but first-half drop biggest since 1998 Oil climbed on Friday for a seventh straight session as a decrease in the U.S. rig count and stronger demand data from China lifted depressed prices that still finished the first half with the biggest decline for that period since 1998. Source: Reuters 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 Ubhar Capital (U Capital) Research, 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 he 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 company 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 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 other 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