MENA Daily Fixed Income Report - 5 March

Transcription

1. Kuwait Financial Centre “Markaz” MENA Daily Fixed Income Report – 05 March 2017 News Update: GCC Bonds & Sukuk: Best and worst Performers (05 March 2017) S&P revises Qatar sovereign credit outlook down to negative Best daily Performers Daily change Worst daily Performers Daily change EBIUH 4.81 05/05/25 2.04% NBADUH 0 1/2 03/27/28 -2.00% from stable – S&P revises Qatar sovereign credit outlook down to BKSBOM 4 1/2 04/29/18 0.99% QATAR 6.4 01/20/40 -1.04% negative from stable; Current rating is AA. Qatar's external liquidity OMANGS 3 1/2 11/03/20 0.62% TAQAUH 6 1/2 10/27/36 -0.64% position has weakened with rapid growth of banks' foreign liabilities, Best YTD Performers YTD change Worst YTD Performers YTD change public sector debt. Expect that higher hydrocarbon prices will boost AABAR 1 03/27/22 9.74% NBADUH 4.44 07/26/21 -8.91% fiscal revenues and contribute to a gradual reduction in fiscal DUGB 5 1/4 01/30/43 6.63% HSBC 0 07/08/20 -2.98% AABAR 0 1/2 03/27/20 6.18% BKSBOM 4 1/2 04/29/18 -2.86% deficits.Expect that fiscal deficit will be about 7% of GDP in 2017 at central government level, gradually falling to balance by 2018-2019. Source: Bloomberg Outlook reflects risk Qatar's external position could deteriorate should Bonds & Sukuk Indices (05 March 2017) YTD∆ Price 1-Day ∆ Yield rapid growth in external debt continue outpacing external liquid asset Index Name S&P MENA Bond and Sukuk Index 116.220 -0.17% 1.19% 3.38% growth. S&P MENA Bond Index 117.090 -0.21% 1.32% 3.31% UAE Central Bank issues capital adequacy regulations in line S&P MENA Sukuk Index 114.260 -0.05% 0.79% 3.09% with Basel III - The Central Bank of the UAE has issued new Bloomberg Global Developed Sovereign Bond Index 108.568 0.14% 0.15% 0.95% regulations to ensure that capital adequacy of all banks operating in Bloomberg Global Investment Grade Corporate Bond Index 124.704 0.07% 0.62% 2.56% 164.894 -0.02% 2.97% 5.61% the UAE is in line with revised rules outlined by the Basel Committee Bloomberg Global High Yield Corporate Bond Index 159.797 0.05% 2.73% 4.82% on Banking Supervision in Basel III, a global regulatory framework for Bloomberg USD Emerging Market Composite Bond Index Bloomberg US Treasury Bond Index 124.136 0.04% 0.00% 1.98% more resilient banks and banking systems. 102.255 -0.09% 0.66% Bank of Sharjah plans five-year bond issue – Sharjahs second Dow Jones Sukuk Index biggest bank by net assets, has set initial guidance for a new five- Interbank Rates (%) year international bond, according to lead arrangers this week, 3 Month 6 Month 12 Month confirming an expected price of 250 basis points over mid-swaps (a 31/12/2016 31/12/16 05/03/2017 05/03/2017 05/03/2017 31/12/2016 1.7725 2.0350 2.0138 2.2170 2.2088 2.4230 benchmark for calculating bids). Bank of Sharjah is believed to be SAIBOR 1.4375 1.4375 1.7500 1.7500 2.0625 2.0625 planning to issue a US$ 500 million (AED 1.84b) 5-year senior KIBOR BHIBOR 1.8000 0.6500 2.2000 2.2000 2.5750 2.6250 unsecured bond, after securing shareholder approval last year to QATAR 1.8755 1.7815 2.1561 1.9650 2.5985 2.3636 issue bonds worth up to US$1.5 billion (AED 5.51b) for general AEIBOR 1.4050 1.4757 1.6496 1.7179 2.1360 2.0950 corporate purposes. SAIBOR 2.0210 2.0350 2.1980 2.2170 2.4080 2.4230 LIBOR 1.1017 0.9979 1.4227 1.3177 1.8082 1.6873 LIBOR EURIBOR JDIBOR TRLIBOR 0.8859 -0.3290 5.0630 11.3444 Bank Muscat's Meethaq gets approval for OMR100m Sukuk issue – Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has received the initial approval from the Capital Market U.S. Treasuries Current Authority (CMA) to launch the first OMR100 million Sukuk Yield programme.Meethaq is the first Islamic banking entity in the (%) Sultanate to obtain CMA approval for the first ever Sukuk issuance 1-Month 0.96 targeting retail investors in Oman. 3-Month 0.70 Dubai’s ENBD REIT Planning to List Shares on Nasdaq Dubai– ENBD REIT, a Shariah-compliant real estate investment trust managed by Emirates NBD Asset Management, intends to proceed with an offer of ordinary shares to trade on Nasdaq Dubai, according to a statement. 0.6127 -0.3190 4.5660 9.8990 1.2582 -0.2370 5.8940 11.6096 0.8462 -0.2210 5.3220 10.5683 1.5823 -0.1130 6.3810 11.9924 Currencies 1-Day ∆ USD 1.1780 -0.0810 5.8780 10.9240 Swap rates 1-Day ∆ Last price 1 Year (%) -0.003 KWD 0.3059 0.0000 -0.016% 2-Y 0.033 SAR 3.7506 0.0000 0.040% 5-Y 6-Month 0.82 0.000 BHD 0.3770 0.0000 -0.003% 10-Y 1-Year 0.96 -0.003 QAR 3.6418 0.0001 -0.003% 30-Y 2-Year 1.31 0.012 OMR 0.3851 0.0000 0.000% 3-Year 1.58 0.027 AED 3.6729 0.0001 0.008% 5-Year 2.01 0.035 EGP 16.178 (0.1670) 12.346% 7-Year 10-Year 2.31 2.48 0.055 0.008 JOD 0.7100 1.0627 0.0001 0.0115 -0.183% 0.998% EUR 1.65 2.124 2.455 2.687 1-Day ∆ -0.01% 0.00% 0.00% -0.01% Sovereign Ratings Moody’s S&P Fitch Abu Aa2 AA AA Dhabi Bahrain Ba2 BB- BB+ Kuwait Aa2 AA AA Oman Baa1 BBB- NR Qatar Aa2 AA AA KSA A1 A- AA- UAE Aa2 NR NR Egypt B3 B- B Lebanon B2 B- B Turkey Baa3 BB+ BBB- Tunisia Ba3 NR B+ Morocco Ba1 BBB- BBBJordan B1 BB- NR China Aa3 AA- A+ UK Aa1 AA AA USA Aaa AA+ AAA USD 5-Year CDS YTD Change Abu Dhabi Dubai 40.400 -30.30 113.080 -21.88 Bahrain 207.260 -27.79 Qatar 60.420 -21.82 Saudi 90.590 -18.24 Egypt 314.910 -25.10 Lebanon 414.470 -10.52 Turkey 241.871 -10.84 Iran 28.526 -6.63 Morocco 129.380 -25.000 China 87.950 -23.96 France 59.310 67.12 Germany 18.384 -7.13 Japan 22.910 -20.15 UK 26.630 -8.25 US 21.770 -4.99 This report has been prepared and issued by Kuwait Financial Centre S.A.K (Markaz) , which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is subject to copyrights. Sale of any copies of this report is strictly prohibited. This report cannot be quoted