MENA Market Report - 17 July

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1. MENA Morning Report Tuesday , July 17, 2018 Overview Regional Markets: MENA region continued the positive trend for the second consecutive session as the second quarter earnings released so far is making investors optimistic about similar results from other companies. Further, the valuations of regional equities are also supportive after the downward pressure seen in the past two to three months in selective markets. For the day, five out of the eight indexes ended in green, while two in red and one remained unchanged during the session. UAE markets ended on a positive note as Dubai and Abu Dhabi were both up by 0.7% and 1.1% respectively for the day. The market breadth in Dubai was slightly skewed towards advancers with 17 compared to 15 decliners, while 5 remained unchanged for the day. Saudi Arabia closed on a positive note as the index advanced by 1.0% for the day, extending the gains to 1.5% in the past two trading sessions. Egypt was the worst performer as the index was down by 1.2% for the day, the second consecutive session of losses despite the positive sentiments seen across regional markets. Qatar closed in green as the index was up by 1.1% for the day, which was supported by buying interest in the banking sector stocks as earnings are better than expectations. Kuwait closed unchanged during session after closing lower by 0.2% in the previous session. Bahrain closed higher by 0.6%, while Oman was down by 0.2% for the day. International Markets: US markets closed in red as S&P and NASDAQ were down by 0.1% and 0.3% respectively, while DJIA was up by 0.2% for the day. European markets closed lower as FTSE and CAC were down by 0.8% and 0.4% respectively, while DAX was up by 0.2% for the day. At the time of writing this report, Asian markets opened on a negative note as Hang Seng and Shanghai are down by 1.0% each, while Nikkei is up by 0.6%. Headlines (WW) IMF warns Trump trade war could cost global economy USD 430bn (GCC) Saudi Arabia and UAE to invest USD 20bn in South Africa (WW) Strong US retail sales lift second-quarter GDP estimates (SA) Saudi Arabia is using Fintech to move away from an oil-based economy (WW) China’s cooling economy spells trouble ahead for global growth (SA) IMF raises Saudi growth forecast on higher oil prices (WW) China's June property investment growth weakest in six months (AE) No respite for Abu Dhabi's residential market in Q2 (WW) Euro-zone exports add to short-term growth optimism (AE) Chinese invest USD 245mn in UAE money markets (WW) Italy proposes EUR 50bn of extra spending on investments (AE) Higher crude prices, output hike to boost UAE economic growth (WW) IMF lowers India's growth projection, but it still retains world's top spot (EG) Egypt, int’l banks mull USD 1.7bn loan to develop Cairo Metro (WW) Business confidence in India subdued in June (EG) Egypt's central bank receives USD 400mn loan to fund small businesses (CMD) Oil price falls on talk of increased global supply, slowdown in economic growth (EG) Egypt’s non-oil exports hit EGP 12.7bn in H1 (CMD) Gold steadies as weak physical demand, higher US rates weigh (EG) Egypt’s GDP to remain solid at 5% in FY18/19 (FX) Dollar drops slightly as investors await testimony from Fed’s Powell (KW) Kuwait central bank reports 3.2% cash drop in June (FX) Sterling falls as May faces Brexit pressure in parliament (OM) National Bank of Oman H1 profit falls (FI) Euro-zone bond yields up after strong US retail sales (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 2,919.46 0.7% 1.2% 3.5% -13.4% ˅ ˅ ˅ Abu Dhabi (ADSMI) 4,747.09 1.1% 1.3% 4.1% 7.9% ˄ ˄ ˄ Saudi (SASEIDX) 8,490.75 1.0% 1.5% 2.1% 17.5% ˄ ˄ ˄ Kuwait (KWSE) 4,966.46 0.0% -0.2% 2.1% 2.9% ˅ ˅ ˄ Egypt (EGX30) 15,655.89 -1.2% -1.4% -4.2% 4.2% ˅ ˅ ˄ Qatar (DSM) 9,439.97 1.1% 1.3% 4.6% 10.8% ˄ ˄ ˄ Bahrain (BHSEIDX) 1,351.87 0.6% 0.7% 3.1% 1.5% ˄ ˄ ˅ Oman (MSM30) 4,448.77 -0.2% 0.2% -2.7% -12.8% ˅ ˅ ˅ 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) 135 183 183 49 68 72 79,450 Abu Dhabi (ADSMI) 23 58 63 27 34 35 130,126 Saudi (SASEIDX) 124 158 167 905 976 1,011 532,533 Kuwait (KWSE) 86 88 79 14 118 159 75,578 Egypt (EGX30) 122 219 291 45 76 93 27,074 Qatar (DSM) 7 10 11 60 116 100 111,112 Bahrain (BHSEIDX) 6 4 5 4 2 3 21,542 Oman (MSM30) 11 19 20 5 11 12 13,331 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 1
2. MENA Morning Report Tuesday , July 17, 2018 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 18 11.9 12.8 10.8 12 353.5 11.0 8.2 378.5 182.5 130.4 2.3 1.0 1.2 1.9 1.3 - - - 0.8 0.8 86.9 84.8 61.1 1.3 0 0 Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain Oman Dubai Average Abu Dhabi Saudi 5.3% 5.6% 3.9% 3.7% Egypt Qatar Bahrain Oman Average 17.5% 20% 5.1% Kuwait Year to Date Perfomance DividendYield 8% 6% Current 300 7.1 6 3 Previous 600 15.1 15 9 PB 15% 6.5% 7.9% 10% 4.7% 4.4% 10.8% 2.9% 5% 4% 0% 2% -10% 4.2% 1.5% -5% -15% 0.0% -20% 0% Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain Oman Average -12.8% -13.4% 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 Tuesday , July 17, 2018 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) DUBAI REFRESHMENTS PJSC 12.80 -6.25% 0 1 DAR AL TAKAFUL PJSC 0.89 -4.97% 0 10,092 15,281 DUBAI ISLAMIC INSURANCE & REINS 0.76 -3.82% 4,316 3,341 10,460 52,217 ISLAMIC ARAB INSURANCE CO PSC 0.43 -3.53% 12,285 5,316 2,640 730 DXB ENTERTAINMENTS PJSC 0.35 -1.43% 7,829 2,760 DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) 1.84 4.89% 10 18 GULF PHARMACEUTICAL INDUSTRIES 2.30 -6.52% 1 3 RAS AL KHAIMAH CEMENT CO PSC 0.75 2.67% 20 15 METHAQ TAKAFUL INSURANCE CO 0.82 -4.88% 1,365 1,148 FIRST ABU DHABI BANK PJSC 12.60 1.98% 2,754 34,358 ABU DHABI NATIONAL ENERGY CO 1.23 -2.44% 80 100 ABU DHABI NATIONAL FOR BUILDING 0.51 1.96% 107 54 DANA GAS PJSC 1.07 -1.87% 1,603 1,731 SUDATEL TELECOM GROUP LTD 0.53 1.89% 2,118 1,112 AGTHIA GROUP PJSC 4.90 -1.02% 283 1,394 Close * DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) SAUDI ENAYA COOPERATIVE INS 26.35 9.87% 1,117 28,120 SAUDI ARABIAN REFINERIES CO SJSC 48.30 -4.55% 1,735 85,804 AMANA COOPERATIVE INSURANCE CO 21.20 5.57% 2,588 53,419 SAUDI REAL ESTATE CO SJSC 15.52 -3.35% 1,885 29,770 BANK ALBILAD SJSC 24.76 3.39% 978 23,812 SAUDI RESEARCH AND MARKETING 97.00 -2.27% 145 14,217 SAUDI CABLE CO JSC 7.95 3.27% 2,052 16,059 DEVELOPMENT WORKS FOOD CO CJSC 66.50 -2.26% 6 381 AL JAZIRA MAWTEN REIT 14.36 3.20% 1,039 14,686 UNITED ELECTRONICS COMPANY JSC 62.60 -2.24% 233 14,761 Top Gainers Close (fils) * DoD % Volume ('000) Value (KWD 000) Close (fils) * DoD % Volume ('000) Value (KWD 000) GULF FRANCHISING HOLDING CO KSCP 20.00 100.00% 1 0 TAMKEEN HOLDING CO 14.00 -78.57% 42 2 SPECIALITIES GROUP HOLDING CO 61.10 17.51% 1,454 82 KUWAIT AND MIDDLE EAST FINANCIAL 25.50 -8.24% 191 5 MENA REAL ESTATE CO KSCP 29.60 -7.09% 29 1 Close * DoD % Volume ('000) Value (AED ‘000) AL SALAM BANK SUDAN PLC 1.55 5.81% 0 655 AL RAMZ CORPORATION INVESTMENT 1.25 4.00% 0 19 NATIONAL CENTRAL COOLING CO PJSC 1.75 2.86% 8,855 EMAAR PROPERTIES PJSC 5.06 2.77% GULF GENERAL INVESTMENT CO PSC 0.28 2.50% Close * ABU DHABI SHIP BUILDING PJSC Dubai Top Gainers Abu Dhabi Top Gainers Kuwait Saudi Arabia Top Gainers Egypt Top Losers Top Losers Top Losers MANAZEL HOLDING CO KPSC 33.70 9.50% 17,984 580 AL MUDON INTERNATIONAL REAL EST 29.30 9.22% 0 0 AQAR REAL ESTATE INVESTMENTS CO 69.00 -5.80% 20 1 EQUIPMENT HOLDING CO KSCP 31.50 6.35% 1,335 41 AL MASSALEH REAL ESTATE CO KSCP 44.20 -4.98% 955 43 Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) ZAHRAA MAADI INVESTMENT & DEV 11.57 9.94% 0 388 EL EBOUR COMPANY FOR REAL EST 7.94 -9.70% 34 283 DELTA INSURANCE COMPANY SAE 17.90 9.50% 2 33 INDUSTRIAL AND ENGINEERING ENT 14.16 -7.27% 76 1,118 EGYPTIANS FOR INVESTMENT AND UR 1.96 4.08% 1,224 2,352 ISMAILIA DEVELOPMENT AND REAL ES 8.55 -6.08% 147 1,300 EGYPTIAN STARCH AND GLUCOSE 13.56 3.39% 82 1,090 MISR NATIONAL STEEL SAE 44.00 -5.82% 7 327 CREDIT AGRICOLE EGYPT SAE 41.73 3.07% 415 17,049 ARAB VALVES CO SAE 1.74 -5.75% 325 583 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) INDUSTRIES QATAR QSC 114.00 4.74% 264 29,458 ZAD HOLDING CO SAQ 92.29 -2.48% 16 1,465 AHLI BANK QSC 31.50 3.14% 73 2,252 AL KHALEEJ TAKAFUL INSURANCE CO 11.10 -1.80% 0 1 VODAFONE QATAR QSC 9.08 3.08% 3,454 30,893 MEDICARE GROUP QSC 70.00 -1.43% 5 326 WIDAM FOOD CO QSC 63.45 2.44% 82 5,122 MESAIEED PETROCHEMICAL HOLDING 15.45 -1.23% 148 2,298 EZDAN HOLDING GROUP QSC 8.08 1.49% 242 1,943 ISLAMIC HOLDING GROUP QPSC 29.00 -1.21% 25 737 Top Gainers Top Gainers Qatar Top Losers Data & Charts Source: Thomson Reuters Top Losers Top Losers 3
4. MENA Morning Report Tuesday , July 17, 2018 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 103,203 129.00 0.6% 26.7% 4,822 165,872 131.40 94.90 21 2.3 3.3% 2 Saudi Telecom Company SJSC SA 47,148 88.40 1.4% 28.9% 270 6,366 93.40 65.10 17 2.8 4.5% 3 Emirates Telecommunications Group Co AE 41,201 17.40 1.8% -0.6% 1,523 7,216 18.85 15.70 17 3.5 4.6% 4 Qatar National Bank QPSC QA 40,842 161.00 1.2% 27.8% 247 10,934 165.00 115.01 11 2.0 3.7% 5 Al Rajhi Banking & Investment Corp Ltd SA 38,741 89.40 1.9% 38.4% 3,796 90,488 92.40 61.70 16 2.9 4.5% 6 National Commercial Bank SJSC SA 38,681 48.35 1.7% 31.6% 1,081 13,942 49.95 30.43 14 2.3 2.3% 7 First Abu Dhabi Bank PJSC AE 38,127 12.85 2.0% 25.4% 2,754 9,634 12.85 10.05 13 1.5 5.4% 8 Saudi Electricity Company SJSC SA 23,445 21.10 1.3% 0.2% 848 4,773 25.85 19.76 116 1.2 3.3% 9 Industries Qatar QSC QA 19,840 119.40 4.7% 23.1% 264 8,670 120.00 85.00 20 2.2 4.2% 10 DP World Ltd AE 19,090 23.00 2.2% -8.0% 280 1,751 27.06 21.00 16 1.8 1.8% 11 Saudi Arabian Mining Co SJSC SA 18,229 58.50 1.6% 12.3% 433 6,752 60.00 47.10 63 2.6 0.0% 12 Samba Financial Group SJSC SA 17,574 32.95 2.6% 40.1% 860 7,559 32.95 21.80 13 1.5 4.6% 13 National Bank of Kuwait SAKP KW 16,789 817.00 0.5% 17.8% 4,579 12,373 820.00 646.67 15 1.6 3.3% 14 Almarai Co SJSC SA 15,440 57.90 -0.5% 7.6% 356 5,491 68.56 50.00 27 3.9 1.3% 15 Emirates NBD Bank PJSC AE 15,284 10.10 0.0% 23.2% 54 147 11.00 8.00 7 1.0 4.0% 16 Emirates Islamic Bank PJSC AE 14,786 10.00 0.0% 2.0% 0 1 10.00 6.00 79 8.3 0.0% 17 Riyad Bank SJSC SA 13,936 17.42 2.5% 38.5% 1,372 6,375 17.46 10.56 13 1.4 4.2% 18 Saudi British Bank SJSC SA 13,140 32.85 2.2% 21.7% 550 4,816 34.00 23.90 12 1.6 4.3% 19 Kuwait Finance House KSCP KW 13,110 625.00 1.6% 19.4% 10,883 22,498 649.00 424.55 21 2.2 2.5% 20 Banque Saudi Fransi SJSC SA 11,877 36.95 2.4% 29.6% 397 3,915 37.20 25.30 13 1.4 3.8% 21 Yanbu National Petrochemicals Co SJSC SA 11,550 77.00 2.0% 30.5% 273 5,613 77.50 52.00 18 2.5 4.2% 22 Jabal Omar Development Co SJSC SA 10,781 43.50 -1.4% -26.4% 637 7,384 71.10 35.20 - 4.3 0.0% 23 Emaar Properties PJSC AE 10,137 5.20 2.8% -18.5% 10,460 14,810 8.23 4.89 6 0.8 0.0% 24 Abu Dhabi Commercial Bank PJSC AE 10,049 7.10 -0.7% 4.4% 2,506 4,845 7.68 6.50 9 1.2 5.9% 25 Arab National Bank SA 9,240 34.65 2.5% 0.0% 338 3,119 34.90 22.10 11 1.4 0.0% 26 Kingdom Holding Co SA 9,003 9.11 -1.6% 2.4% 381 925 11.30 7.90 50 1.1 5.5% 27 Dubai Islamic Bank PJSC AE 8,971 5.00 0.2% -9.3% 2,271 3,092 5.90 4.66 7 1.2 8.0% 28 Alinma Bank SJSC SA 8,792 21.98 1.9% 14.7% 26,346 154,428 22.14 14.70 15 1.6 3.6% 29 Abu Dhabi National Oil Co for Dist AE 8,406 2.47 0.4% -6.8% 419 282 2.90 2.25 17 8.9 2.4% 30 Qatar Islamic Bank QPSC QA 7,918 122.00 0.5% 25.8% 118 3,961 124.49 87.00 13 1.6 4.1% Company Name Total M-Cap; W. Avg Yield 655,331 3.5% Data Source: Thomson Reuters Disclaimer: This report is prepared by Al Masah Capital Limited (“AMCL”). AMCL is a company incorporated in the Cayman Islands as an Exempt Company established under the laws of the Cayman Monetary Authority. The information contained in this report does not constitute any offer to sell securities or the solicitation of any 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 to be used by experienced investment persons with appropriate investment knowledge and ones that AMCL is satisfied meet the regulatory criteria to be classified as a ‘Professional Client’ as defined under the Rules & Regulations of the appropriate financial authority, and as such should not be relied upon by or distributed to “Retail Clients”. 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