MENA Market Report - 10 May

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1. MENA Morning Report Wednesday , May 10, 2017 Overview Regional Markets: MENA markets closed mostly on a positive note, second consecutive session of gains after starting the week on a sharp sell-off across the board. Investors reassessing their holdings to focus on companies that have reported better than expected earnings during the quarter, while reduce the exposure in underperforming companies. For the regional markets, five out of the eight indexes closed in green, while three ended in red for the day. Saudi Arabia was one of the best performers as it was up by 0.8% for the day, which was supported by companies reporting growth in earnings. Banking sector shares also garnered interest, which helped the broader to close higher for the day. UAE markets ended on a positive note as both Dubai and Abu Dhabi were up by 0.5% and 0.1% respectively for the day. The market breadth in Dubai was skewed towards gainers but it was pushed higher by mostly Emaar as it closed up by 1.1% for the day. Qatar also closed up by 0.1% for the day, adding to the gains of 0.2% recorded on the previous day, however trading activity depicted movement in the index’s heavyweights. Egypt closed on a positive note as it was up by 0.8% for the day, extending the weekly gains to 1.8%, and to be the only index to remain in the positive territory for the week, while the rest are all in red. Kuwait closed lower by 0.4% for the day after rising by 1.0% on the previous day. Bahrain and Oman continued their downward trend as they were both down by 0.5% and 0.3% respectively for the day. International Markets: US markets closed on a mixed note as Dow and S&P were down by 0.2% and 0.1% respectively, while Nasdaq was up by 0.3%. European markets closed in green as FTSE, DAX and CAC were all up by 0.6%, 0.4% and 0.3% respectively. At the time of writing the report, Asian marke ts have opened on a positive note as Nikkei, Hang Seng and Shanghai are all up by 0.4%, 0.7% and 0.2% respectively. Headlines (WW) US workforce seems on a roll but the wider economy is labouring (MENA) M&A activity in MENA may rise as oil fuels confidence (WW) US wholesale inventories rise in March, sales flat (MENA) MENA hospitality markets see revenues drop in Q2 (WW) US economy is rigged for benefit of the well-to-do (GCC) Turkey aims to boost GCC ties amid free trade talks (WW) UK shoppers seek bargains, employers hunt staff as Brexit bites: surveys (GCC) lessons from successful SME startup stories in GCC (WW) IMF says Asia facing risks from rise in protectionism (SA) Saudi pragmatism eases pain of economic transformation (WW) China's CB to focus on impact on stability of non-bank financial institutions (AE) UAE, France bilateral trade set for boost (WW) Japan's top bank regulator warns of over-reliance on monetary policy (AE) Focus on diversification for a sustainable economy (WW) German job vacancies hit record high in first quarter (AE) Better times ahead for UAE banking sector (CMD) Oil and dollar again stall emerging market gains (QA) Qatar's regulators urged to check capital outflows (CMD) Gold holds near seven-week low as safe-haven demand fades (QA) Qatari banks witness sharp increase in external debt (FX) Sterling steadies below USD 1.30 as focus turns to BoE (BH) Bahrain's economy strained as low oil prices persist (FX) Dollar cheered by rising US yields as risk appetite grows (BH) Delegation in Germany promotes investment opportunities in Bahrain (FI) Sharjah sees no need for bond issuance in near future (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,408.44 0.5% -0.3% -0.2% -3.5% ˅ ˅ ˅ Abu Dhabi (ADSMI) 4,584.65 0.1% -0.7% 1.4% 0.8% ˄ ˄ ˄ Saudi (SASEIDX) 6,918.82 0.8% -0.1% -1.3% -4.0% ˅ ˅ ˄ Kuwait (KWSE) 6,598.97 -0.4% -2.3% -3.6% 14.8% ˅ ˄ ˄ Egypt (EGX30) 12,933.68 0.8% 1.8% 4.0% 4.8% ˅ ˄ ˄ Qatar (DSM) 9,865.78 0.1% -0.7% -2.0% -5.5% ˅ ˅ ˅ Bahrain (BHSEIDX) 1,315.74 -0.5% -1.2% -1.5% 7.8% ˅ ˄ ˄ Oman (MSM30) 5,423.26 -0.3% -1.0% -1.6% -6.2% ˅ ˅ ˅ MENA Market Statistics Volume (mln) 3M Avg. Volume (mln) 6M Avg. Volume (mln) Value (USD mln) 3M Avg. Value (USD mln) 6M Avg. Value (USD mln) Market Cap (USD mln) Dubai (DFMGI) 197 321 530 74 128 192 79,503 Abu Dhabi (ADSMI) 52 99 154 47 56 66 135,268 Saudi (SASEIDX) 176 181 240 752 890 1,118 430,286 Kuwait (KWSE) 135 363 350 42 103 102 75,578 Egypt (EGX30) 363 269 378 58 95 96 19,628 Qatar (DSM) 8 11 10 69 96 82 125,283 Bahrain (BHSEIDX) 3 5 4 2 3 3 20,437 Oman (MSM30) 11 19 17 6 12 10 16,243 Index * ST trend based on a 5x25 day SMA crossover; MT trend based on a 25x100 day SMA crossover; LT trend based on a 50x200 day SMA crossover Data & News Source: Thomson Reuters ** indicates markets were closed on Sunday. 1
2. MENA Morning Report Wednesday , May 10, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 11.6 12.2 11.1 9.1 386.2 300 239.3 188.3 4 1.1 Current 8.8 8 1.6 2.0 1.7 1.4 - - 0.9 1.1 Bahrain Oman - 178.1 106.9 87.2 1.4 0 0 Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Average Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain Oman Average Year to Date Perfomance Dividend Yield 27% 8% 6% Previous 600 489.3 13.6 11.1 12 PB 5.2% 4.3% 0% 2% -9% 0.0% 0.0% Egypt Qatar Bahrain -3.5% -4.0% -5.5% -6.2% -18% 0% Kuwait 4.8% 0.8% 3.5% 3.0% Dubai Abu Dhabi Saudi 7.8% 9% 4.2% 4% 14.8% 18% 5.8% 5.2% Oman Average Dubai Abu Dhabi Saudi Kuwait Egypt Data & Charts Source: Thomson Reuters; Table includes Bloomberg estimates and data for UAE, KSA, QA, KW and EG where available Qatar Bahrain Oman 2
3. MENA Morning Report Wednesday , May 10, 2017 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) EMIRATES ISLAMIC BANK PJSC 6.04 -9.93% 1 4 9,095 MARKA PJSC 1.23 -9.76% 995 1,291 6,814 6,359 AL SALAM BANK SUDAN PLC 1.90 -3.16% 10 19 6,785 49,401 AMANAT HOLDINGS PJSC 1.16 -1.72% 5,818 6,808 1.01% 1,142 900 ARABTEC HOLDING PJSC 0.76 -1.18% 51,636 39,479 Close * DoD % Volume ('000) Value (AED ‘000) Top Losers Close * DoD % Volume ('000) Value (AED ‘000) SHARJAH ISLAMIC BANK PJSC 1.37 4.38% 100 134 FOODCO HOLDING PJSC 6.50 -7.85% 427 2,895 ABU DHABI NATIONAL FOR BUILDING 0.55 3.64% 16 9 ESHRAQ PROPERTIES COMPANY PJSC 1.10 -1.82% 11,755 13,050 ABU DHABI NATIONAL ENERGY CO 0.56 3.57% 352 194 UNION NATIONAL BANK PJSC 5.07 -1.38% 657 3,357 RAK PROPERTIES PJSC 0.59 3.39% 4,916 2,853 RAS AL KHAIMAH CERAMICS PSC 2.43 -1.23% 432 1,056 MANAZEL REAL ESTATE PJSC 0.54 1.85% 2,656 1,421 INTERNATIONAL FISH FARMING HOLD 1.63 -0.61% 153 250 Close * DoD % Volume ('000) Value (SAR ‘000) Top Losers Close * DoD % Volume ('000) Value (SAR ‘000) SALAMA COOPERATIVE INSURANCE 14.75 7.80% 6,418 91,241 SALAMA COOPERATIVE INSURANCE 14.75 7.80% 6,418 91,241 NAMA CHEMICALS CO SJSC 3.90 6.41% 7,312 27,660 NAMA CHEMICALS CO SJSC 3.90 6.41% 7,312 27,660 JARIR MARKETING CO SJSC 133.25 6.00% 248 32,071 JARIR MARKETING CO SJSC 133.25 6.00% 248 32,071 ALLIED COOPERATIVE INSURANCE 12.25 4.90% 996 11,919 ALLIED COOPERATIVE INSURANCE 12.25 4.90% 996 11,919 MIDDLE EAST PAPER CO SJSC 17.05 3.81% 546 9,135 MIDDLE EAST PAPER CO SJSC 17.05 3.81% 546 9,135 Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) PALMS AGRO PRODUCTION CO KSCP 100.00 10.00% 0 0 ALSHAMEL INTERNATIONAL HOLDING 285.00 -8.77% 0 0 UNITED PROJECTS FOR AVIATION 760.00 6.58% 0 0 AL DEERA HOLDING CO KPSC 33.00 -7.58% 647 22 EYAS FOR HIGER AND TECHNICAL 395.00 6.33% 0 0 KUWAIT REAL ESTATE HOLDING CO 35.50 -7.04% 913 34 YIACO MEDICAL COMPANY KPSC 208.00 4.81% 14 3 SENERGY HOLDING COMPANY KSCP 40.00 -6.25% 525 22 SPECIALITIES GROUP HOLDING 84.00 4.76% 20 2 MANAZEL HOLDING CO KPSC 51.00 -5.88% 4,756 250 Close DoD % Volume Value Close DoD % Volume Value EL EBOUR COMPANY FOR RE 4.32 9.95% 28 115 GLAXOSMITHKLINE SAE 14.09 -7.17% 1 17 MISR REFRIGERATION AND AC 52.81 9.35% 2 86 SAUDI EGYPTIAN INVESTMENT 52.01 -4.88% 1 37 CAIRO NATIONAL CO FOR INVEST 3.63 7.99% 9 30 SABAA INTERNATIONAL CO 4.23 -4.02% 91 394 ISMAILIA DEVELOPMENT AND RE 3.70 7.57% 29 105 OBOUR LAND FOR FOOD INDUSTRIES 16.49 -3.94% 52 879 MANSOURA POULTRY CO SAE 7.93 7.06% 250 1,921 DELTA SUGAR CO SAE 21.29 -3.85% 74 1,603 Close DoD % Volume Value Close * DoD % Volume ('000) Value (QAR ‘000) ZAD HOLDING CO SAQ 74.00 2.84% 2 113 QATAR ISLAMIC INSURANCE CO QSC 61.80 -2.91% 1 64 ISLAMIC HOLDING GROUP QSC 61.30 1.96% 37 2,233 QATAR FUEL QSC 121.80 -1.48% 232 28,415 OOREDOO QSC 101.80 1.47% 58 5,816 COMMERCIAL BANK QSC 29.15 -1.20% 579 16,971 QATAR ELECTRICITY AND WATER CO 203.50 1.23% 28 5,690 UNITED DEVELOPMENT CO PSC 18.99 -1.16% 32 615 MASRAF AL RAYAN QSC 41.40 1.09% 208 8,574 MANNAI CORPORATION QSC 77.80 -0.90% 2 126 Close DoD % Volume Value DEYAAR DEVELOPMENT PJSC 0.52 2.14% 0 3,278 DUBAI FINANCIAL MARKET PJSC 1.15 1.74% 0 DXB ENTERTAINMENTS PJSC 0.94 1.70% EMAAR PROPERTIES PJSC 7.32 1.09% DUBAI ISLAMIC INSURANCE 0.79 Dubai Top Gainers Abu Dhabi Top Gainers Saudi Arabia Top Gainers Kuwait Top Gainers Egypt Top Gainers Qatar Top Gainers Data & Charts Source: Thomson Reuters Top Losers Top Losers Top Losers 3
4. MENA Morning Report Wednesday , May 10, 2017 Top 30 MENA Stocks by Market Capitalization (* indicates native currency; Latest data) Country Market Cap (USD mln) Close * DoD % YTD % Volume ('000) Value (USD ‘000) 52w High * 52w Low * P/E P/B Div. Yield (T12M) 1 Saudi Basic Industries Corporation SJSC SA 77,804 97.25 1.8% 6.3% 3,660 94,931 102.50 76.00 15 1.8 4.1% 2 Emirates Telecommunications Group Co AE 42,030 17.75 0.3% -5.6% 1,331 6,435 20.20 17.15 17 3.4 4.5% 3 Saudi Telecom Company SJSC SA 37,202 69.75 0.7% 0.0% 241 4,480 74.00 51.00 0 0.0 0.0% 4 Qatar National Bank SAQ QA 34,780 137.10 -0.8% -7.4% 115 4,344 157.27 121.36 10 1.8 2.3% 5 First Abu Dhabi Bank PJSC AE 33,231 11.20 -0.4% 12.1% 3,170 9,666 11.55 7.60 11 1.3 4.0% 6 Al Rajhi Banking & Investment Corp SA 27,301 63.00 1.2% 0.0% 1,806 30,337 67.50 48.60 13 2.0 3.6% 7 Saudi Electricity Co SJSC SA 25,890 23.30 1.1% 4.0% 977 6,074 25.80 14.30 46 1.6 3.0% 8 National Commercial Bank SJSC SA 20,694 38.80 1.6% -8.9% 407 4,208 45.00 32.00 8 1.3 4.1% 9 DP World Ltd AE 18,053 21.75 0.2% 24.2% 61 362 22.25 15.53 19 2.1 1.7% 10 Industries Qatar QSC QA 16,916 101.80 1.0% -13.4% 236 6,608 122.00 94.50 19 1.9 3.9% 11 Jabal Omar Development Co SJSC SA 16,668 67.25 0.4% -10.0% 71 1,266 76.00 46.00 72 6.1 0.0% 12 Almarai Co SJSC SA 15,788 74.00 0.3% 8.0% 169 3,344 74.50 51.50 29 4.6 0.0% 13 Emaar Properties PJSC AE 14,426 7.40 1.1% 3.8% 6,785 13,671 7.79 5.95 10 1.3 2.0% 14 National Bank of Kuwait SAKP KW 12,850 660.00 -1.5% 6.6% 879 1,909 723.81 523.81 13 1.3 4.3% 15 Saudi Arabian Mining Co SJSC SA 12,807 41.10 -0.7% 5.4% 450 4,938 43.80 27.80 681 1.9 0.0% 16 Emirates NBD Bank PJSC AE 12,408 8.20 0.6% -3.4% 350 781 9.00 7.60 7 0.8 4.9% 17 Samba Financial Group SJSC SA 11,174 20.95 1.2% -14.0% 533 2,978 25.20 15.90 8 1.0 4.5% 18 Ezdan Holding Group QSC QA 11,110 15.25 -0.1% 0.9% 1,112 4,659 20.24 14.63 19 1.3 3.3% 19 Abu Dhabi Commercial Bank PJSC AE 10,332 7.30 1.5% 5.8% 6,211 12,346 7.68 5.66 9 1.3 5.5% 20 Kingdom Holding Co SA 10,229 10.35 1.0% -13.4% 81 223 12.95 9.90 75 1.4 4.8% 21 Kuwait Finance House KSCP KW 9,201 485.00 1.0% -1.2% 2,859 4,563 572.73 400.00 13 1.6 3.2% 22 Emaar Malls Group PJSC AE 9,142 2.58 0.8% -1.5% 4,957 3,482 3.00 2.47 18 2.1 0.0% 23 Ooredoo QSC QA 9,088 103.30 1.5% 1.5% 58 1,633 116.10 81.50 17 1.5 3.4% 24 Saudi British Bank SJSC SA 8,720 21.80 0.9% -12.8% 347 2,018 25.90 16.40 8 1.0 3.2% 25 Masraf Al Rayan QSC QA 8,621 41.85 1.1% 0.0% 208 2,393 44.20 32.50 15 2.7 0.0% 26 Banque Saudi Fransi SJSC SA 8,355 26.00 2.0% -0.4% 125 869 27.50 18.00 9 1.1 4.0% 27 Riyad Bank SJSC SA 8,200 10.25 0.5% -11.3% 1,102 3,011 11.80 8.55 9 0.8 6.3% 28 Yanbu National Petrochemicals Co SJSC SA 8,100 54.00 -1.4% 0.0% 334 4,814 61.75 37.00 12 1.9 5.6% 29 Emirates Islamic Bank PJSC AE 8,043 5.44 -9.9% 0.0% 1 1 11.95 1.57 100 4.3 0.0% 30 Dubai Islamic Bank PJSC AE 7,737 5.75 0.0% 3.2% 1,901 2,976 6.29 4.90 9 1.2 7.8% Company Name Total M-Cap; W. Avg Yield 546,903 3.1% Data Source: Thomson Reuters Disclaimer: This report is prepared by Al Masah Capital Management Limited (“AMCML”). AMCML is a company incorporated under the DIFC Companies Law and is regulated by the Dubai Financial Services Authority (“DFSA”). The information contained in this report does not constitute an offer to sell securities or the solicitation of an offer to buy, or recommendation for investment in, any securities in any jurisdiction. The information in this report is not intended as financial advice and is only intended for professionals with appropriate investment knowledge and ones that AMCML is satisfied meet the regulatory criteria to be classified as a ‘Professional Client’ as defined under the Rules & Regulations of the appropriate financial authority. 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