MENA Market Report - 19 November

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1. MENA Morning Report Sunday , November 19, 2017 Overview Regional Markets: The MENA markets have continued to remain subdued during the week as investors are concerned about the geopolitical environment coupled with marginal weakness in oil prices. Lack of positive developments across the region is also not giving any reasons for investors to drive the regional markets. For the day, three out of the eight indexes closed in green, while four were in red and one remained unchanged. UAE markets ended on a negative note as both Dubai and Abu Dhabi were down by 0.2% each for the day. Dubai witnessed strong increase in trading activity, which was mostly dominated by GFH and Emaar during the session as they accounted for more than 50% of the total value traded. Egypt was the worst performer as it was down by 1.3% for the day, extending the weekly losses during the week. Qatar closed on a positive note as it was up by 0.8% for the day, recovering 50% of the losses during the week. Kuwait closed in green as it was up by 0.4% for the day, continuing the positive performance during the week. Saudi Arabia closed unchanged for the day as the index recovered the losses towards the end of the trading session. Bahrain was up by 0.4%, while Oman was down by 0.1% for the day. For the week, Egypt was the worst performer with losses of 3.5%, followed by 1.1% in Abu Dhabi, while Oman was the best performer with gains of 1.0%, followed by 0.8% in Kuwait. International Markets: US markets closed on a negative note as DJIA, Nasdaq and S&P were all down by 0.4%, 0.2% and 0.3% respectively for the day. European markets closed on a negative note as FTSE, DAX and CAC were all down by 0.1%, 0.4% and 0.3% respectively. Asian markets closed on a slightly positive note as Nikkei and Hang Seng were up by 0.2% and 0.6% respectively, while Shanghai was down by 0.5%. Headlines (WW) US industrial output surges as hurricane-related disruptions fade (ME) Job vacancies rise across Middle East (WW) US housing starts vault to one-year high; permits increase (GCC) Economic visions to increase competition among GCC countries (WW) China's home price growth picks up in October (GCC) GCC hoping state funding will remain stable (WW) UK growth to lag peers; next rate hike a year away at least (GCC) GCC to be connected by ultra-fast tube transportation system (WW) Confidence in euro zone expansion strong among economists (SA) SoftBank to invest up to $25bln in Saudi Arabia (WW) Cheap ECB cash still key for euro zone economy (AE) Dubai sustains strong growth despite challenges (WW) German economy to grow much stronger than expected in 2017 (AE) USD 63bn worth of oil and gas projects active in UAE (WW) Japan exports seen growing in Oct on robust external demand (AE) UAE ranked top economy in the GCC (CMD) Oil giants unlikely to share coal's fate, for now (AE) Dubai seeks to attract USD 2.5bn to pharmaceutical sector (CMD) Gold gains on jitters over probe into Trump's campaign (EG) Egypt's central bank holds interest rates as expected (FX) US dollar, Wall Street fall with tax overhaul in focus (EG) Entrepreneurs to lead the Egyptian economy (FX) Visitors to UK hits August record after Brexit fall in pound (KW) Kuwait non-oil growth projected at 4% in medium run (FI) Indian bond market euphoria seen short-lived as mood bearish prevails (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,460.21 -0.2% 0.3% -4.8% -2.0% ˅ ˅ ˄ Abu Dhabi (ADSMI) 4,327.58 -0.2% -1.1% -3.4% -4.8% ˅ ˅ ˅ Saudi (SASEIDX) 6,913.46 0.0% -0.6% -0.3% -4.1% ˅ ˅ ˄ Kuwait (KWSE) 6,309.31 0.4% 0.8% -3.1% 9.8% ˅ ˅ ˅ Egypt (EGX30) 13,847.36 -1.3% -3.5% -3.5% 12.2% ˄ ˄ ˄ Qatar (DSM) 7,825.77 0.8% -0.8% -4.2% -25.0% ˅ ˅ ˅ Bahrain (BHSEIDX) 1,269.90 0.4% 0.2% -0.5% 4.1% ˅ ˅ ˅ Oman (MSM30) 5,105.67 -0.1% 1.0% 1.9% -11.7% ˄ ˅ ˅ 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) 352 476 387 172 170 139 80,833 Abu Dhabi (ADSMI) 32 122 99 24 49 45 129,039 Saudi (SASEIDX) 204 267 235 839 1,126 1,017 439,307 Kuwait (KWSE) 68 113 92 31 50 40 75,578 Egypt (EGX30) 205 379 299 75 87 68 20,876 Qatar (DSM) 6 7 7 43 62 69 91,981 Bahrain (BHSEIDX) 10 2 2 4 1 1 20,191 Oman (MSM30) 9 18 17 3 12 10 14,247 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 Sunday , November 19, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 PB 11.0 11.6 11.0 9.6 386.2 9.5 300 8 239.3 188.3 4 1.2 1.5 2.1 1.6 - - 1.1 0.8 0.9 Bahrain Oman - 178.1 106.9 87.2 1.3 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 21% 8% 6% Current 489.3 13.6 10.6 12 Previous 600 5.0% 5.3% 4.5% 9.8% 4.1% 7% 3.6% 4% 12.2% 14% 5.9% 5.5% 3.7% 0% -7% -2.0% -4.8% -4.1% -14% 2% -11.7% -21% 0.0% 0.0% Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain -25.0% -28% 0% 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 Sunday , November 19, 2017 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) DUBAI INSURANCE CO PSC 3.35 -9.46% 11 39 14,736 NATIONAL CENTRAL COOLING CO PJSC 1.85 -4.15% 1,250 2,363 16,188 8,669 EMIRATES INTEGRATED TELECOMM 5.15 -2.83% 879 4,593 1.61% 57,333 71,666 AJMAN BANK PJSC 1.10 -1.79% 684 760 0.56% 16,380 29,402 DAR AL TAKAFUL PJSC 0.89 -1.66% 610 547 Close * DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) NATIONAL TAKAFUL CO PJSC 0.55 14.58% 10 5 NATIONAL CORP FOR TOURISM 2.14 -4.89% 500 1,098 ABU DHABI NATIONAL ENERGY CO 0.65 8.33% 1,364 852 BANK OF SHARJAH PJSC 1.19 -3.25% 160 194 ABU DHABI NATIONAL HOTELS CO 2.90 5.45% 0 0 RAS AL KHAIMAH CERAMICS PSC 2.51 -1.57% 143 361 RAS AL KHAIMAH CEMENT CO PSC 0.67 3.08% 326 215 DANA GAS PJSC 0.72 -1.37% 5,328 3,863 METHAQ TAKAFUL INSURANCE CO 0.79 2.60% 523 408 UNION NATIONAL BANK PJSC 3.98 -1.24% 1,193 4,777 Close * DoD % Volume ('000) Value (SAR ‘000) Top Losers Close * DoD % Volume ('000) Value (SAR ‘000) SAUDI VITRIFIED CLAY PIPE CO SJSC 47.30 10.00% 273 12,334 DAR AL ARKAN REAL ESTATE DEVELOP 7.32 -9.63% 84,880 654,423 MIDDLE EAST SPECIALIZED CABLES CO 8.35 5.43% 3,050 24,810 SAUDI INDUSTRIAL EXPORT CO SJSC 13.74 -9.01% 2,035 29,347 DEVELOPMENT WORKS FOOD CO 79.00 4.64% 1 55 ANAAM INTERNATIONAL HOLDING 13.08 -6.70% 3,406 46,148 JABAL OMAR DEVELOPMENT CO SJSC 64.30 3.71% 476 30,075 RED SEA INTERNATIONAL CO 18.20 -6.67% 755 14,237 BANQUE SAUDI FRANSI SJSC 31.30 3.30% 793 24,427 ABDULLAH SAAD MOHAMMED ABO 10.40 -5.45% 5 56 Close (fils) * DoD % Volume ('000) Value (KWD 000) Close (fils) * DoD % Volume ('000) Value (KWD 000) KUWAIT CABLE VISION COMPANY 27.00 18.42% 0 0 AMAR FINANCE AND LEASING CO 30.50 -19.74% 0 0 AL MAL INVESTMENT COMPANY KPSC 30.00 17.65% 5,951 165 AJWAN GULF REAL ESTATE CO KSCP 46.60 -15.27% 17,897 909 TAMKEEN HOLDING CO 21.50 14.36% 176 4 NATIONAL RANGES CO KPSC 19.60 -6.67% 2 0 SANAM REAL ESTATE COMPANY KSCP 36.50 14.06% 8 0 AAN DIGITAL SERVICES CO KSCP 29.90 -5.38% 1,638 50 KUWAIT RESORTS COMPANY KPSC 78.90 12.71% 0 0 AL MASSALEH REAL ESTATE CO KSCP 37.00 -5.13% 5 0 Close * DoD % Volume ('000) Value (EGP ‘000) Top Losers Close * DoD % Volume ('000) Value (EGP ‘000) SUEZ BAGS CO SAE 42.24 10.00% 4 160 WADI KOM OMBO FOR LAND RECLAM 8.21 -8.47% 2 20 OCTOBER PHARMA FOR PHARMA 79.05 9.02% 1 78 EL EBOUR COMPANY FOR REAL EST 6.51 -7.13% 30 202 ALEXANDRIA MEDICAL SERVICES CO 28.19 8.42% 3 74 ARAB ENGINEERING INDUSTRIES SAE 4.36 -6.64% 3 16 RAYA CONTACT CENTER CO 15.00 7.14% 55 798 ORIENTAL WEAVERS CARPET CO SAE 15.65 -5.27% 1,933 31,100 ORANGE EGYPT FOR TELECOMM 210.48 6.63% 33 6,637 ISMAILIA DEVELOPMENT & REAL EST 4.19 -5.20% 15 64 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) AL KHALEEJ TAKAFUL GROUP QPSC 11.19 3.52% 0 1 MEDICARE GROUP QSC 45.00 -6.29% 62 2,869 BARWA REAL ESTATE COMPANY QPSC 28.60 3.44% 527 14,819 EZDAN HOLDING GROUP QSC 6.85 -6.04% 594 4,196 OOREDOO QSC 84.50 2.66% 50 4,153 QATARI INVESTORS GROUP QSC 22.99 -4.61% 57 1,342 COMMERCIAL BANK PSQC 26.85 2.29% 87 2,311 QATAR FIRST BANK LLC 4.92 -4.09% 487 2,447 INDUSTRIES QATAR QSC 96.00 2.11% 137 12,995 QATARI GERMAN COMPANY 5.30 -3.64% 2 9 Close * DoD % Volume ('000) Value (AED ‘000) AL SALAM BANK SUDAN PLC 1.85 2.78% 58 105 COMMERCIAL BANK OF DUBAI PSC 1.14 2.70% 13,099 ISLAMIC ARAB INSURANCE CO PSC 0.54 2.08% AMANAT HOLDINGS PJSC 1.26 DRAKE AND SCULL INTERNATIONAL 1.80 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 Top Losers 3
4. MENA Morning Report Sunday , November 19, 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 79,836 99.80 0.4% 9.1% 2,911 77,475 105.40 85.50 16 1.9 6.0% 2 Emirates Telecommunications Group Co AE 39,309 16.60 -1.2% -11.7% 1,569 7,090 19.00 16.60 16 3.4 4.8% 3 Saudi Telecom Company SJSC SA 37,225 69.80 1.0% 0.0% 407 7,584 78.90 62.75 0 0.0 0.0% 4 Qatar National Bank QPSC QA 30,687 120.95 1.0% -18.3% 306 9,654 157.27 118.10 9 1.5 2.6% 5 First Abu Dhabi Bank PJSC AE 30,266 10.20 0.5% 2.1% 1,315 3,651 11.55 8.77 12 1.1 4.4% 6 National Commercial Bank SJSC SA 28,425 53.30 0.8% 25.1% 1,894 26,923 58.00 37.00 11 1.7 3.0% 7 Al Rajhi Banking & Investment Corp SA 27,255 62.90 0.2% -0.2% 2,490 41,763 71.70 61.00 12 1.9 3.6% 8 Saudi Electricity Company SJSC SA 26,709 24.04 0.5% 7.3% 1,225 7,852 26.05 17.85 10 1.3 2.9% 9 DP World Ltd AE 19,754 23.80 -0.8% 35.9% 97 628 24.60 15.53 19 2.0 1.6% 10 Saudi Arabian Mining Co SJSC SA 17,511 56.20 0.4% 44.1% 329 4,926 57.00 37.50 196 2.5 0.0% 11 Industries Qatar QSC QA 15,954 96.00 2.1% -18.3% 137 3,421 122.00 85.00 22 1.7 4.2% 12 Jabal Omar Development Co SJSC SA 15,936 64.30 3.7% -14.0% 476 8,166 76.00 59.10 444 5.9 0.0% 13 Emaar Properties PJSC AE 15,323 7.86 -0.3% 10.2% 14,599 31,242 8.95 6.52 9 1.3 1.9% 14 National Bank of Kuwait SAKP KW 14,509 740.00 0.1% 19.5% 1,912 4,689 800.00 600.00 15 1.4 3.9% 15 Almarai Co SJSC SA 14,479 54.30 -1.6% -0.9% 257 3,725 78.64 48.60 26 3.9 1.3% 16 Samba Financial Group SJSC SA 12,426 23.30 -0.6% -4.3% 3,828 23,782 27.10 19.80 10 1.1 4.1% 17 Emirates NBD Bank PJSC AE 12,288 8.12 0.0% -4.4% 268 593 9.00 7.60 6 0.8 4.9% 18 Emirates Islamic Bank PJSC AE 10,794 7.30 0.0% 0.0% 1 1 11.95 1.57 80 5.5 0.0% 19 Kuwait Finance House KSCP KW 10,478 549.00 0.0% 11.8% 2,806 5,106 650.00 454.55 16 1.7 2.8% 20 Saudi British Bank SJSC SA 10,399 26.00 0.4% 4.0% 505 3,498 28.55 20.05 10 1.2 2.7% 21 Banque Saudi Fransi SJSC SA 10,060 31.30 3.3% 19.9% 793 6,620 33.40 22.10 11 1.2 3.4% 22 Abu Dhabi Commercial Bank PJSC AE 10,049 7.10 -0.7% 2.9% 1,464 2,831 7.68 5.88 9 1.2 0.0% 23 Riyad Bank SJSC SA 9,759 12.20 0.3% 5.6% 1,396 4,541 12.20 10.10 11 1.0 5.3% 24 Kingdom Holding Co SA 8,597 8.70 -1.5% -27.2% 124 287 12.95 7.90 51 1.0 5.7% 25 Yanbu National Petrochemicals Co SJSC SA 8,310 55.40 -1.8% 2.6% 271 4,002 61.75 46.40 14 2.0 5.4% 26 Dubai Islamic Bank PJSC AE 8,101 6.02 0.5% 0.0% 2,729 4,473 6.29 5.06 8 1.2 0.0% 27 Emaar Malls PJSC AE 7,619 2.15 -0.9% -17.9% 1,289 755 2.80 2.13 14 1.7 4.7% 28 Ooredoo QSC QA 7,435 84.50 2.7% -17.0% 50 1,096 116.10 80.00 14 1.2 4.1% 29 Masraf Al Rayan QPSC QA 7,105 34.49 0.3% -8.3% 480 4,314 45.40 33.10 12 2.0 5.8% 30 Alinma Bank SJSC SA 6,992 17.48 -0.1% 15.8% 26,073 1,21,536 18.46 13.90 14 1.3 2.9% Company Name Total M-Cap; W. Avg Yield 553,591 3.3% Data Source: Thomson Reuters Disclaimer: This report is prepared by Al Masah Capital Management Limited (“AMCML”). AMCML is a company incorporated in the DIFC (Dubai International Financial Centre) and regulated by the DFSA (Dubai Financial Services 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 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, and as such should not be relied upon by or distributed to “Retail Clients”. 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