MENA Market Report - 2 July

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1. MENA Morning Report Sunday , July 02, 2017 Overview Regional Markets: MENA markets ended the session on a mixed note as the region was still in the holiday mood with half of the regional indexes closed during the week. The performance in the month of June was mostly negative as rising diplomatic rifts between Qatar and other Arab states weighed on investor sentiments. In the region, Saudi Arabia was the outperformer in June as it appreciated by 8.1%, which was mainly driven by optimism over leadership change. Qatar, on the other hand, was the worst performer with losses of 8.8% due to the ongoing diplomatic rift. However, the first half performance of the regional indexes was mixed as investors have preferred indexes with the potential growth opportunities which are driven by public sector spending or leadership change. The regional markets will closely monitor the first half earnings from companies, which will be important for the markets and drive the direction during the month of July. For the day, UAE markets ended on a mixed note as Dubai was up by 0.4%, while Abu Dhabi was down by 0.5%. Dubai was mostly supported by buying interest in real estate sector stocks, while Abu Dhabi was weighed down by broad based selling pressure across the index. Kuwait was marginally lower by 0.1% for the day after remaining flat on the previous day. Bahrain was unchanged for the day, while it was down on the previous day. Saudi Arabia, Egypt, Qatar and Oman were closed for the day. International Markets: US markets closed on a mixed note as Dow and S&P were up by 0.3% and 0.2% respectively, while Nasdaq was down by 0.1%. European markets closed in red as FTSE, DAX and CAC were down by 0.5%, 0.7% and 0.7% respectively. Asian markets closed on a negative note as Nikkei and Hang Seng were down by 0.9% and 0.8% respectively, while Shanghai was up by 0.1%. Headlines (WW) Global equity listings up by a third, but below previous peaks (ME) Pursuing the fourth industrial revolution in the Middle East (WW) US first-quarter GDP growth revised up to 1.4 percent (SA) Saudi GDP falls for first time since financial crisis as oil output cut (WW) U.S. consumer spending rises modestly, inflation cools (SA) Political stability and reforms to boost Saudi outlook (WW) UK consumer borrowing spikes, adding to confused rate-hike picture (SA) Saudi Arabia imposes tax on expats and their dependents (WW) China factory growth unexpectedly quickens, but debt risks pressure economy (SA) The mysterious (and continuing) fall in Saudi foreign reserves (WW) China needs to eliminate barriers to investment, create jobs (AE) Dubai house prices, rents bottoming out: report (WW) Japan factory output tumbles, flashes warning signs on growth (AE) UAE economic growth forecast adjusted to 2% by Emirates NBD (WW) Euro zone economic sentiment jumps in June to almost 10-yr high (EG) Egypt raises fuel prices by up to 50 percent under IMF deal (CMD) Oil up for seventh day but first-half drop biggest since 1998 (QA) Several UK banks stop selling Qatar riyals as diplomatic crisis mounts (CMD) Gold steady as dollar falls, but hawkish central banks weigh (QA) Qatar seen fastest growing in GCC despite blockade (FX) Euro logs best quarter against the dollar since 2010 (KW) Kuwait to build new city for 20,000 expats (FX) Dollar drops to 12-month low against euro (JO) Jordan's economy grows by 2.2% (FI) US bond yields up as central bank views shift (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,392.00 0.4% -0.3% 1.6% -3.9% ˄ ˅ ˅ Abu Dhabi (ADSMI) 4,425.40 -0.5% -0.1% -0.0% -2.7% ˅ ˅ ˄ Saudi (SASEIDX) Closed Closed Closed 8.1% 3.0% ˄ ˅ ˄ Kuwait (KWSE) 6,762.82 -0.1% -0.1% -0.3% 17.7% ˅ ˅ ˄ Egypt (EGX30) Closed Closed Closed 0.4% 8.5% ˄ ˄ ˄ Qatar (DSM) Bahrain (BHSEIDX) Oman (MSM30) Closed Closed Closed -8.8% -13.5% ˅ ˅ ˅ 1,310.04 0.0% -0.2% -0.7% 7.3% ˅ ˅ ˄ Closed Closed Closed -5.6% -11.5% ˅ ˅ ˅ 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) 145 291 416 59 93 149 79,815 Abu Dhabi (ADSMI) 70 107 135 32 51 61 131,547 Closed 173 197 Closed 820 950 468,619 Kuwait (KWSE) 35 199 327 22 60 98 75,578 Egypt (EGX30) Closed 280 316 Closed 77 85 20,293 Qatar (DSM) Closed 11 11 Closed 79 88 104,275 1 4 4 1 2 3 20,233 Closed 15 17 Closed 7 9 15,140 Index Saudi (SASEIDX) Bahrain (BHSEIDX) Oman (MSM30) * 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 Sunday , July 02, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 PB 14.3 11.8 11.1 9.1 8.1 386.2 300 8 239.3 188.3 4 1.1 1.5 2.0 1.9 1.3 - - 0.8 1.0 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% 6.2% 6% Current 489.3 12.2 11.0 12 Previous 600 5.1% 4.6% 4.2% 4% -9% 0.0% 0.0% Kuwait Egypt Qatar Bahrain -3.9% -2.7% Oman Average -11.5% -13.5% -18% 0% Saudi 3.0% 0% 2% Abu Dhabi 7.3% 8.5% 9% 3.6% 3.1% Dubai 17.7% 18% 5.5% 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 , July 02, 2017 Top Performers by Country (* indicates native currency; Latest data) Dubai Abu Dhabi Volume ('000) Value (AED ‘000) DUBAI ISLAMIC INSURANCE 0.84 -3.56% 1,035 885 SHUAA CAPITAL PSC 1.08 -2.70% 3,556 3,894 DUBAI FINANCIAL MARKET PJSC 1.11 -2.63% 2,288 2,574 2,329 UNION PROPERTIES PJSC 0.90 -2.07% 13,420 12,205 6,610 DAR AL TAKAFUL PJSC 1.04 -1.89% 1,156 1,213 Close * DoD % Volume ('000) Value (AED ‘000) ESHRAQ PROPERTIES COMPANY PJSC 0.86 -8.51% 20,742 18,668 SHARJAH ISLAMIC BANK PJSC 1.29 -4.44% 33 43 INTERNATIONAL FISH FARMING 1.41 -4.08% 142 204 SHARJAH CEMENT AND INDUSTRIAL 0.95 -4.04% 47 45 SUDATEL TELECOM GROUP LTD 0.52 -3.70% 597 317 Close * DoD % Volume ('000) Value (SAR ‘000) Volume ('000) Value (AED ‘000) ARABTEC HOLDING PJSC 2.87 4.36% 0 31,426 DAMAC PROPERTIES DUBAI CO PSC 3.16 3.27% 0 12,216 EMIRATES NBD BANK PJSC 8.14 2.26% 25 201 DEYAAR DEVELOPMENT PJSC 0.51 1.80% 4,616 ARAMEX PJSC 5.18 1.57% 1,286 Close * DoD % Volume ('000) Value (AED ‘000) RAS AL KHAIMAH CERAMICS PSC 2.47 6.47% 152 363 ABU DHABI NATIONAL FOR BUILDING 0.54 1.89% 97 52 RAK PROPERTIES PJSC 0.64 1.59% 3,087 1,960 ARKAN BUILDING MATERIALS CO PJSC 0.67 1.52% 190 126 METHAQ TAKAFUL INSURANCE CO 0.84 1.20% 345 288 Close * DoD % Volume ('000) Value (SAR ‘000) Top Gainers Saudi Arabia DoD % DoD % Top Gainers Market Remained Closed Top Losers Top Losers Top Losers Market Remained Closed Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) EKTTITAB HOLDING CO KSCP 43.00 19.44% 1,079 43 GULF FRANCHISING HOLDING CO KSCP 65.00 -18.75% 46 3 HITS TELECOM HOLDING CO KSCP 47.00 15.20% 4,688 206 YIACO MEDICAL COMPANY KPSC 155.00 -16.22% 14 2 KUWAIT AND MIDDLE EAST FINANCIAL 29.90 8.73% 1 0 KUWAIT FINANCE AND INVESTMENT 40.50 -7.95% 95 4 KUWAIT REMAL REAL ESTATE CO KPSC 64.50 7.50% 212 13 REAL ESTATE TRADE CENTERS CO 46.00 -6.12% 36 2 MEZZAN HOLDING COMPANY KSCP 948.00 4.06% 10 9 SAFAT GLOBAL HOLDING CO 25.50 -5.90% 158 4 Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) Top Gainers Kuwait Close * Close * Top Gainers Top Gainers Market Remained Closed Egypt Market Remained Closed Top Losers Top Gainers DoD % Volume ('000) Value (QAR ‘000) Top Losers Market Remained Closed Qatar Market Remained Closed Close * Data & Charts Source: Thomson Reuters 3
4. MENA Morning Report Sunday , July 02, 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 81,604 102.00 -2.5% 11.5% 6,567 178,631 105.40 76.00 16 1.9 5.9% 2 Saudi Telecom Company SJSC SA 41,069 77.00 2.7% 6.2% 1,966 40,378 77.30 51.00 18 2.5 5.2% 3 Emirates Telecommunications Group Co AE 40,967 17.30 0.6% 0.0% 593 2,791 20.20 17.10 0 0.0 0.0% 4 Qatar National Bank SAQ QA 31,963 127.00 3.0% -14.2% 470 16,078 157.27 122.10 9 1.7 2.5% 5 First Abu Dhabi Bank PJSC AE 31,156 10.50 -1.4% 5.1% 3,483 9,958 11.55 8.30 10 1.2 4.3% 6 Al Rajhi Banking & Investment Corp SA 30,032 69.30 -1.6% 10.0% 11,688 215,997 70.90 48.60 14 2.2 3.2% 7 Saudi Electricity Company SJSC SA 28,334 25.50 4.0% 13.8% 6,801 46,250 26.00 14.30 13 1.5 2.7% 8 National Commercial Bank SJSC SA 28,108 52.70 4.6% 23.7% 11,528 162,010 55.40 32.00 11 1.7 3.0% 9 Almarai Co SJSC SA 20,268 95.00 5.6% 38.7% 4,305 109,058 97.90 51.50 37 5.9 0.9% 10 Jabal Omar Development Co SJSC SA 18,341 74.00 4.8% -1.0% 2,797 55,192 76.00 46.00 79 6.7 0.0% 11 DP World Ltd AE 17,364 20.92 -4.0% 19.5% 95 540 23.85 15.53 18 2.0 1.8% 12 Industries Qatar QSC QA 15,743 95.50 3.8% -18.7% 265 6,810 122.00 91.10 18 1.8 0.0% 13 Saudi Arabian Mining Co SJSC SA 15,300 49.10 9.4% 25.9% 8,961 117,341 49.35 27.80 813 2.2 0.0% 14 Emaar Properties PJSC AE 15,167 7.78 -0.1% 9.1% 5,308 11,244 8.08 6.10 10 1.3 1.9% 15 Samba Financial Group SJSC SA 13,841 25.95 3.6% 6.6% 12,613 87,286 27.00 15.90 10 1.2 3.7% 16 National Bank of Kuwait SAKP KW 13,188 675.00 -3.3% 9.0% 754 1,681 723.81 523.81 14 1.3 4.2% 17 Emirates NBD Bank PJSC AE 12,318 8.14 2.3% -4.1% 25 55 9.00 7.60 7 0.8 4.9% 18 Saudi British Bank SJSC SA 10,441 26.10 1.2% 4.4% 1,670 11,627 27.20 16.40 10 1.2 2.7% 19 Abu Dhabi Commercial Bank PJSC AE 9,922 7.01 0.1% 0.0% 1,939 3,701 7.68 5.66 9 1.2 5.7% 20 Banque Saudi Fransi SJSC SA 9,801 30.50 2.5% 16.9% 1,487 12,099 32.10 18.00 10 1.2 3.4% 21 Kingdom Holding Co SA 9,735 9.85 0.3% -17.6% 163 427 12.95 9.80 68 1.3 5.1% 22 Kuwait Finance House KSCP KW 9,195 483.00 -0.4% -1.6% 1,252 1,999 572.73 400.00 13 1.6 0.0% 23 Ezdan Holding Group QSC QA 9,099 12.59 2.9% -16.7% 1,007 3,411 20.24 10.72 15 1.1 4.0% 24 Emaar Malls Group PJSC AE 8,930 2.52 0.8% -3.8% 995 683 3.00 2.47 17 2.0 4.0% 25 Riyad Bank SJSC SA 8,720 10.90 1.9% 0.0% 4,342 12,622 11.80 8.55 10 0.9 0.0% 26 Emirates Islamic Bank PJSC AE 8,576 5.80 0.0% 0.0% 1 1 11.95 1.57 106 4.6 0.0% 27 Yanbu National Petrochemicals Co SJSC SA 8,340 55.60 -0.5% 3.0% 828 12,278 61.75 37.00 12 2.0 5.4% 28 Masraf Al Rayan QSC QA 8,072 39.50 3.0% 5.1% 536 5,700 45.40 33.05 15 2.5 5.1% 29 Ooredoo QSC QA 8,021 91.90 3.3% -9.7% 172 4,244 116.10 87.80 16 1.3 3.8% 30 Dubai Islamic Bank PJSC AE 7,670 5.70 0.0% 2.3% 1,187 1,842 6.29 5.01 9 1.2 7.9% Company Name Total M-Cap; W. Avg Yield 571,287 3.2% 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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