MENA Market Report - 20 June

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1. MENA Morning Report Wednesday , June 20, 2018 Overview Regional Markets: MENA region closed on a negative note as the intensifying trade war between U.S. and China is weighing on investor sentiments. Oil prices moved higher during the session on the back of reports of lower crude inventories in U.S., however the range bound movement is likely to persist until the outcome of the OPEC meeting later this week. Some of the key markets were still closed for the day due to the Eid holidays, while the five indexes that remained open ended on a negative note during the session. UAE markets continued their downward pressure as both Dubai and Abu Dhabi were down by 1.5% and 0.6% respectively for the day. Both the indexes have lost more than 3.0% in the past two sessions, which can be attributed to the exposure to Abraaj as the firm has filed for provisional liquidation. The market breadth in Dubai was skewed towards decliners with 24 compared to only 6 gainers, while 5 remained unchanged for the day. The index was mostly dragged lower by 5.2% decline in Emaar, followed by losses in other prominent names during the session. Egypt closed on a negative note as it was down by 0.9% for the day as the index opened after an extended Eid holiday. Kuwait and Oman also closed in red as they were down by 0.3% and 0.1% respectively for the day, which was in line with the sentiments seen in the broader regional markets. International Markets: US markets ended on a negative note as DJIA, Nasdaq and S&P were down by 1.2%, 0.3% and 0.4% respectively for the day. European markets closed on a negative note as FTSE, DAX and CAC were down by 0.4%, 1.2% and 1.1% respectively. At the time of writing this report, Asian markets have opened on a negative note as Hang Seng and Shanghai were down by 0.1% and 1.1% respectively, while Nikkei is flat. Headlines (WW) Fed's Kaplan sees muted economic hit from any oil price rise (SA) Saudi Arabia, Russia to invest USD 2bn in tech projects (WW) US housing starts jump to near 11-year high, permits fall (SA) Saudi Arabia approves 20 new housing projects by local developers (WW) China to ease foreign investment restrictions on several more sectors (AE) UAE's new insurance policy to create more jobs and spur small businesses (WW) Trade war fears boost demand for core European debt (AE) UAE Central Bank caps retail banking fees in boost to expat-friendly economy (WW) Bank of England to keep rates steady as winter chill slow to lift (AE) UAE supply chain outlook 'remains positive' (WW) Germany's Ifo sees euro crisis 2.0, trade war slashing growth (AE) DIFC to expand FinTech offering in partnership with Startupbootcamp (WW) Italy to stay on debt reduction path as growth labors (EG) Egypt says to receive USD 2bn IMF payment by end-July (WW) Japan sticks with assessment economy is gradually recovering (EG) Economic reforms spur steep fuel price jumps in Egypt (CMD) OPEC sees strong oil market, possible need for more output (EG) Egypt's inflation falls behind Nigeria's as bold reforms pay off (CMD) Gold shines as US-China trade spat stokes safe-haven buying (QA) Qatar's nominal GDP to hit QAR 695bn in 2018 (FX) Dollar falls vs. yen after US threatens further tariffs on China (QA) Real estate sector to see more growth (FX) Swiss government warns Italian worries could spark franc rise (OM) Oman's real estate sector shows signs of recovery (FI) Euro zone bond yields drop as US, China exchange tariff threats (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 2,939.33 -1.5% -3.3% -0.8% -12.8% ˄ ˅ ˅ Abu Dhabi (ADSMI) 4,561.64 -0.6% -3.2% -0.9% 3.7% ˄ ˅ ˄ Saudi (SASEIDX) Closed Closed n.a. 1.3% 14.4% ˄ ˄ ˄ Kuwait (KWSE) 4,864.02 -0.3% -0.3% 1.0% -2.7% ˅ ˅ ˄ Egypt (EGX30) 16,067.77 -0.9% -0.9% -2.1% 7.0% ˅ ˅ ˄ Qatar (DSM) Closed Closed n.a. 2.4% 6.7% ˄ ˄ ˄ Bahrain (BHSEIDX) Closed Closed n.a. 3.3% -1.8% ˄ ˅ ˅ 4,589.33 -0.1% -0.1% -0.4% -10.0% ˅ ˅ ˅ Oman (MSM30) 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) 148 161 191 65 65 78 80,851 Abu Dhabi (ADSMI) 38 69 68 42 37 38 116,549 Saudi (SASEIDX) Closed 182 179 Closed 1,114 1,044 526,325 Kuwait (KWSE) 32 79 83 7 281 170 75,578 Egypt (EGX30) 188 315 297 56 96 97 27,678 Qatar (DSM) Closed 12 12 Closed 121 105 108,533 Bahrain (BHSEIDX) Closed 4 6 Closed 3 3 20,796 5 27 21 2 17 12 12,877 Index 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 1
2. MENA Morning Report Wednesday , June 20, 2018 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 18 PB Previous 14.9 435.0 15 11.5 12 11.1 12.4 11.5 9.0 9 351.2 300 7.3 198.1 6 3 131.3 2.3 1.0 1.2 1.8 1.2 - - - 0.8 0.8 66.6 1.3 0 104.7 100.0 0 Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain Oman Average Dubai Abu Dhabi 20% 5.6% 5.9% 5.1% 4% Kuwait 10% 4.4% 3.6% 7.0% 3.7% 2% -15% 0.0% Kuwait Oman Average 6.7% -1.8% -2.7% -10.0% -12.8% -20% 0% Saudi Bahrain 0% -10% Abu Dhabi Qatar 5% -5% Dubai Egypt 14.4% 15% 6.3% 4.8% 3.7% Saudi Year to Date Perfomance DividendYield 8% 6% Current 600 Egypt Qatar Bahrain 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 , June 20, 2018 Top Performers by Country (* indicates native currency; Latest data) Dubai Abu Dhabi Saudi Arabia DoD % Volume ('000) Value (AED ‘000) EMAAR PROPERTIES PJSC 5.43 -5.16% 0 56,458 13,239 DAR AL TAKAFUL PJSC 0.69 -3.89% 0 124 1,671 ISLAMIC ARAB INSURANCE CO PSC 0.44 -3.61% 3,128 1,411 DXB ENTERTAINMENTS PJSC 0.40 -3.54% 13,010 5,233 AMLAK FINANCE PJSC 0.81 -3.33% 1,372 1,131 Close * DoD % Volume ('000) Value (AED ‘000) RAS AL KHAIMAH CEMENT CO PSC 0.75 -8.00% 20 16 21 GULF CEMENT CO PSC 1.01 -6.93% 67 70 100 119 ABU DHABI NATIONAL ENERGY CO 1.22 -4.10% 216 269 925 786 ABU DHABI NATIONAL OIL COMPANY 2.40 -2.08% 290 703 0.00% 3,900 2,691 SUDATEL TELECOM GROUP LTD 0.54 -1.85% 534 291 DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) Close (fils) * DoD % Volume ('000) Value (KWD 000) Volume ('000) Value (AED ‘000) ARAMEX PJSC 3.90 2.56% 0 929 DUBAI INVESTMENTS PJSC 2.02 0.99% 0 SHUAA CAPITAL PSC 1.07 0.93% 1,569 NATIONAL CENTRAL COOLING CO PJSC 1.70 0.59% 78 132 DAMAC PROPERTIES DUBAI CO PSC 2.36 0.42% 1,599 3,765 Close * DoD % Volume ('000) Value (AED ‘000) WAHA CAPITAL PJSC 1.70 5.88% 1,875 3,098 ABU DHABI NATIONAL FOR BUILDING 0.58 1.72% 37 SHARJAH ISLAMIC BANK PJSC 1.20 1.67% INSURANCE HOUSE PSC 0.85 0.00% ESHRAQ PROPERTIES COMPANY PJSC 0.69 Close * Top Gainers Market Remained Closed Top Losers Top Losers Market Remained Closed Close (fils) * DoD % Volume ('000) Value (KWD 000) NATIONAL INDUSTRIES COMPANY 174.00 5.17% 7 1 AL MASSALEH REAL ESTATE CO KSCP 35.50 -13.52% 20 1 ASIYA CAPITAL INVESTMENTS CO 39.20 4.34% 22 1 AJWAN GULF REAL ESTATE CO KSCP 23.70 -12.66% 12,281 312 61.60 -10.71% 1,316 86 Top Gainers Kuwait Close * DoD % Top Gainers Top Losers SENERGY HOLDING COMPANY KSCP 30.70 4.23% 563 17 PRIVATIZATION HOLDING CO KPSC AL AMAN INVESTMENT COMPANY 50.20 3.59% 1 0 NATIONAL INTERNATIONAL HOLDING 59.00 -6.78% 28 2 MENA REAL ESTATE CO KSCP 28.00 3.57% 20 1 BOUBYAN INTERNATIONAL INDUST 30.00 -5.00% 56 2 Close * DoD % Volume ('000) Value (EGP ‘000) Top Losers Close * DoD % Volume ('000) Value (EGP ‘000) ARAB CO FOR ASSET MANAGEMENT 2.62 14.12% 0 42,169 WADI KOM OMBO FOR LAND RECLAM 14.73 -9.84% 4 59 UNIVERSAL CO FOR PACKAGING 5.38 7.43% 49 255 ARABIA COTTON GINNING CO SAE 2.96 -9.12% 7,764 24,136 NORTH AFRICA CO FOR REAL ESTATE 0.94 6.38% 81 74 MODERN WATERPROOFING CO SAE 1.26 -5.56% 309 401 ARABIA INVESTMENTS DEVELOPMENT 0.65 6.15% 5,847 3,690 ARABIAN FOOD INDUSTRIES CO SAE 11.37 -4.93% 664 7,743 ARAB VALVES CO SAE 1.69 5.92% 521 857 EL AHRAM CO FOR PRINTING 8.14 -4.05% 5 41 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) Top Gainers Egypt Top Losers Close * Top Gainers Top Gainers Market Remained Closed Qatar Market Remained Closed Top Losers Data & Charts Source: Thomson Reuters 3
4. MENA Morning Report Wednesday , June 20, 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 101,277 126.60 0.3% 24.4% 2,508 84,669 131.40 94.90 20 2.2 3.3% 2 Saudi Telecom Company SJSC SA 46,719 87.60 0.6% 27.7% 464 10,840 93.40 65.10 17 2.8 4.6% 3 Qatar National Bank QPSC QA 40,194 158.40 0.5% 25.7% 10,020 435,872 165.00 115.01 11 2.0 3.8% 4 National Commercial Bank SJSC SA 38,599 48.25 -0.8% 31.4% 919 11,818 49.95 28.33 14 2.3 2.3% 5 Emirates Telecommunications Group Co AE 37,886 16.00 -0.6% -8.6% 1,717 7,478 18.85 15.70 16 3.2 5.0% 6 Al Rajhi Banking & Investment Corp SA 37,699 87.00 0.1% 34.7% 2,146 49,773 92.40 61.00 15 2.8 4.6% 7 First Abu Dhabi Bank PJSC AE 35,902 12.10 -0.8% 18.0% 6,090 20,064 12.70 10.05 12 1.4 5.8% 8 Saudi Electricity Company SJSC SA 24,532 22.08 0.6% 4.8% 710 4,182 26.05 19.76 121 1.3 3.2% 9 DP World Ltd AE 18,775 22.62 -0.6% -9.5% 580 3,572 27.06 20.80 16 1.7 1.8% 10 Saudi Arabian Mining Co SJSC SA 17,823 57.20 -0.2% 9.8% 402 6,126 60.00 39.50 62 2.5 0.0% 11 Industries Qatar QSC QA 17,602 105.90 -1.9% 9.2% 1,646 47,860 116.89 85.00 18 2.0 4.7% 12 Samba Financial Group SJSC SA 16,400 30.75 0.7% 30.7% 1,264 10,367 32.40 21.80 12 1.4 4.9% 13 Almarai Co SJSC SA 15,520 58.20 -0.7% 8.2% 321 4,981 78.64 50.00 27 3.9 1.3% 14 National Bank of Kuwait SAKP KW 15,372 748.00 -0.1% 7.9% 1,138 2,816 761.90 642.86 14 1.5 3.6% 15 Emirates NBD Bank PJSC AE 14,981 9.90 -1.0% 20.7% 156 420 11.00 7.95 7 0.9 4.0% 16 Emirates Islamic Bank PJSC AE 14,046 9.50 0.0% -3.1% 1 1 10.00 6.00 75 7.9 0.0% 17 Riyad Bank SJSC SA 12,880 16.10 -1.0% 28.0% 1,092 4,690 16.34 10.24 12 1.3 4.5% 18 Saudi British Bank SJSC SA 12,440 31.10 -0.6% 15.2% 312 2,591 34.00 22.40 12 1.5 4.6% 19 Kuwait Finance House KSCP KW 10,950 522.00 -0.4% -0.3% 2,272 3,923 590.91 424.55 17 1.8 3.0% 20 Yanbu National Petrochemicals Co SJSC SA 10,950 73.00 0.3% 23.7% 250 4,872 75.70 52.00 17 2.4 4.5% 21 Banque Saudi Fransi SJSC SA 10,816 33.65 0.6% 18.1% 245 2,195 35.00 25.30 11 1.3 4.2% 22 Abu Dhabi Commercial Bank PJSC AE 10,219 7.22 -0.8% 6.2% 2,286 4,493 7.68 6.50 9 1.3 5.8% 23 Emaar Properties PJSC AE 10,039 5.15 -5.2% -19.3% 10,122 14,193 8.23 4.89 6 0.8 0.0% 24 Jabal Omar Development Co SJSC SA 9,914 40.00 1.8% -32.3% 890 9,494 75.60 35.20 0 3.9 0.0% 25 Dubai Islamic Bank PJSC AE 8,971 5.00 -0.8% 0.0% 8,478 11,541 5.90 4.66 7 1.2 0.0% 26 Arab National Bank SA 8,826 33.10 0.3% 33.7% 372 3,283 34.30 19.70 11 1.4 3.6% 27 Alinma Bank SJSC SA 8,680 21.70 0.7% 13.3% 16,109 93,212 22.14 14.18 15 1.6 3.7% 28 Kingdom Holding Co SA 8,677 8.78 0.7% -1.3% 147 345 11.30 7.90 48 1.1 5.7% 29 Abu Dhabi National Oil Company AE 7,998 2.35 -2.1% -11.3% 290 186 2.90 2.35 16 8.5 2.5% 30 Qatar Islamic Bank QPSC QA 7,855 121.00 1.5% 24.7% 1,922 63,854 124.49 86.90 13 1.6 4.1% Company Name Total M-Cap; W. Avg Yield 632,540 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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