MENA Market Report - 22 June

Transcription

1. MENA Morning Report Thursday , June 22, 2017 Overview Regional Markets: MENA markets ended the session on a negative note as weakness in oil prices and end of Ramadan continues to weigh on investors sentiments. The last trading session before the Eid holidays might be subdued as investors might want to stay on the sideline due to the increased volatility in the region. For the day, the focus for the regional markets was on Saudi Arabia as there were couple of positive news, first the appointment of new crown prince who has been driving the economic reform and other was the upgrading of Riyadh into the MSCI Emerging Market index in 2019. As a result, the index rose sharply by 5.5% for the day, extending the weekly gains to 7.5%. The performance during the week has helped the index in recovering the annual losses to turn positive for the year on the back of sharp rise in trading activity across the market. Qatar, on the other hand, continued its downward trajectory as the index was down by 1.8% for the day, extending the losses to 5.2% in the past four trading sessions. Regional investors are playing out rotational strategy as exiting Qatar and entering Saudi Arabia seems to be happening across the region, both for investors and traders to capitalize on the ongoing rally in the Kingdom. UAE markets ended on a mixed note as Dubai was down by 1.0%, while Abu Dhabi closed marginally higher by 0.1% for the day. Egypt also closed lower by 0.3% for the day, in line with the sentiments seen across the region. Kuwait also ended lower by 0.3% for the day, extending the weekly losses to 0.7%. Bahrain and Oman also ended on a negative note as it was down by 0.4% and 1.4% respectively for the day. International Markets: US markets closed on a mixed note as Dow and S&P were down by 0.3% and 0.1% respectively, while Nasdaq was up by 0.7%. European markets closed in red as FTSE, DAX and CAC were down by 0.3%, 0.3% and 0.4% respectively. At the time of writing this report, Asian markets have opened on a positive note as Nikkei, Hang Seng and Shanghai are up by 0.2%, 0.6% and 0.8% respectively. Headlines (WW) US current account deficit widens to 2.5% of GDP (ME) Five global tourism megatrends impacting the Middle East (WW) UK government's priority is to win best possible Brexit deal (GCC) Islamic finance growth to lose momentum in 2018 (WW) UK deficit falls in boost for Philip Hammond (GCC) Falling fiscal break-even oil prices bring relief to GCC (WW) BoE says now not the time to raise rates (SA) Saudi Arabia eases austerity just as oil prices decline (WW) BoE reports consumer squeeze, solid business investment (SA) MSCI to Consider Adding Saudi Arabia to Key Index During 2019 (WW) Asia firms' confidence at three year-high on brighter global outlook (AE) Dubai in world's Top 20 costliest cities (WW) Asian central banks have cause to keep holding rates while the Fed hikes (AE) Dubai and Abu Dhabi turn costlier for expats (WW) Brazil's economy creates more jobs than expected in May (AE) Dubai launches new index to measure knowledge worldwide (CMD) Oil prices sink to 7-mo lows on growing global oversupply (AE) Money supply in UAE continues to increase in May (CMD) Gold edges up from five-week lows as equities fall (AE) Opportunities abound for UAE real estate service providers (FX) Yuan bears throw in the towel, say it isn't worth fighting China's PBOC (EG) Egypt ranks 4th among African countries in FDI during 2016 (FX) Dollar hits 3-week high on Fed comments, sterling slips (KW) Kuwait sets up massive media monitoring committee amid Gulf rift (FI) US yield curve flattens as Fed stays hawkish amid low inflation (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,418.30 -1.0% -1.2% 2.4% -3.2% ˄ ˅ ˅ Abu Dhabi (ADSMI) 4,459.05 0.1% -0.9% 0.7% -1.9% ˅ ˅ ˄ Saudi (SASEIDX) 7,334.87 5.5% 7.5% 6.7% 1.7% ˄ ˅ ˄ Kuwait (KWSE) 6,765.01 -0.3% -0.7% -0.3% 17.7% ˄ ˅ ˄ Egypt (EGX30) 13,376.44 -0.3% -0.8% 0.3% 8.4% ˄ ˄ ˄ Qatar (DSM) 8,777.73 -1.8% -5.2% -11.3% -15.9% ˅ ˅ ˅ Bahrain (BHSEIDX) 1,313.41 -0.4% -1.0% -0.5% 7.6% ˄ ˅ ˄ Oman (MSM30) 5,121.47 -1.4% -2.4% -5.5% -11.4% ˅ ˅ ˅ 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) 159 287 416 64 93 149 80,873 Abu Dhabi (ADSMI) 117 103 134 54 50 60 132,079 Saudi (SASEIDX) 388 170 197 2,657 801 946 439,448 Kuwait (KWSE) 45 217 328 41 64 98 75,578 Egypt (EGX30) 131 284 325 39 77 87 20,119 Qatar (DSM) 15 11 11 119 81 87 104,704 Bahrain (BHSEIDX) 2 4 4 2 2 3 20,376 Oman (MSM30) 22 16 17 -14 8 9 15,412 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 Thursday , June 22, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 PB 14.0 11.7 11.0 9.2 386.2 8.4 300 8 239.3 188.3 4 1.1 1.5 2.0 1.7 1.3 - - 0.9 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% 5.0% 5.4% 4% 3.6% 3.1% 1.7% 0% -9% 2% -3.2% -1.9% -11.4% -18% 0.0% 0.0% Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain -15.9% -27% 0% Dubai 7.6% 8.4% 9% 4.7% 4.3% 17.7% 18% 6.1% 6% Current 489.3 11.8 11.1 12 Previous 600 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 Thursday , June 22, 2017 Top Performers by Country (* indicates native currency; Latest data) Top Losers Close * DoD % Volume ('000) Value (AED ‘000) ARABTEC HOLDING PJSC 3.01 -75.80% 13,568 104,899 62 MASHREQBANK PSC 76.00 -9.21% 4 295 4,288 3,366 SHUAA CAPITAL PSC 1.32 -8.33% 1,517 2,093 0.00% 0 1 DRAKE AND SCULL INTERNATIONAL 0.42 -5.50% 35,450 15,249 0.00% 0 0 DUBAI FINANCIAL MARKET PJSC 1.17 -3.42% 7,534 8,971 Close * DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) DANA GAS PJSC 0.65 6.15% 62,985 39,754 METHAQ TAKAFUL INSURANCE CO 0.88 -4.55% 1,015 914 NATIONAL BANK OF RAS AL KHAIMAH 4.30 5.58% 101 421 UNION CEMENT CO PSC 1.30 -3.85% 116 154 GULF PHARMACEUTICAL INDUSTRIES 2.30 4.35% 100 225 INTERNATIONAL FISH FARMING 1.52 -3.29% 138 214 RAS AL KHAIMAH CEMENT CO PSC 0.80 3.75% 330 259 RAK PROPERTIES PJSC 0.67 -2.99% 9,399 6,394 ABU DHABI AVIATION 2.53 2.77% 67 166 ABU DHABI NATIONAL ENERGY CO 0.52 -1.92% 1,835 964 Close * DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) SAMBA FINANCIAL GROUP SJSC 22.72 10.26% 14,048 304,333 BAAZEEM TRADING COMPANY CJSC 27.90 -8.60% 78 2,292 EMAAR THE ECONOMIC CITY SJSC 13.52 10.21% 15,244 196,561 AL-OMRAN INDUSTRIAL AND TRADING 22.98 -6.88% 35 840 NATIONAL COMMERCIAL BANK SJSC 45.80 10.04% 18,404 804,431 AL ASEEL CO LTD 63.40 -2.84% 36 2,291 AL RAJHI BANKING & INVESTMENT 64.00 10.00% 15,063 920,185 SALAMA COOPERATIVE INSURANCE 16.88 -2.25% 420 7,168 SAUDI ARABIAN MINING CO SJSC 40.95 9.65% 9,002 352,430 ARAB SEA INFORMATION SYSTEMS CO 14.22 -1.55% 61 874 Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) AL MOWASAT HEALTHCARE CO KSCC 378.00 19.84% 3 1 KUWAIT CABLE VISION COMPANY 34.00 -11.76% 118 4 UNITED PROJECTS FOR AVIATION 610.50 19.57% 0 0 AL MASSALEH REAL ESTATE CO KSCP IFA HOTELS AND RESORTS CO KSCP 192.00 9.38% 0 0 EYAS FOR HIGER AND TECHNICAL GULF FRANCHISING HOLDING CO KSCP 70.00 7.29% 3,494 236 AL DEERA HOLDING CO KPSC 30.00 6.67% 0 Close * DoD % MISR CEMENT CO SAE 110.29 MISR BENI SUEF CEMENT CO SAE GOLDEN TEXTILES AND CLOTHES Close * DoD % Volume ('000) Value (AED ‘000) ARAMEX PJSC 5.11 0.78% 0 2,251 AFKAR S&P UAE UCITS ETF CLASS A 4.10 0.49% 0 DXB ENTERTAINMENTS PJSC 0.79 0.00% AL SAFWA MUBASHER FINANCIAL 1.23 EMIRATES REFRESHMENTS PSC 4.05 Dubai Top Gainers Abu Dhabi Top Gainers Saudi Arabia Top Gainers Kuwait Top Gainers Egypt Top Losers 45.00 -11.11% 20 1 1120.00 -10.71% 33 40 KUWAIT REMAL REAL ESTATE CO KPSC 65.00 -10.00% 185 13 0 CONTRACTING AND MARINE SERVICES 80.00 -8.50% 432 36 Volume ('000) Value (EGP ‘000) Top Losers Close * DoD % Volume ('000) Value (EGP ‘000) 9.57% 11 1,135 ALEXANDRIA MEDICAL SERVICES CO 52.75 -5.23% 0 12 21.41 9.29% 33 673 MARIDIVE AND OIL SERVICES SAE 0.22 -4.55% 1,306 294 5.50 9.09% 7 36 GULF CANADIAN COMPANY FOR ARAB 8.87 -4.17% 12 110 MINAPHARM PHARMACEUTICALS SAE 49.58 7.85% 2 77 PRIME HOLDING FOR FINANCIAL 4.85 -4.12% 10 48 CLEOPATRA HOSPITAL 23.05 6.25% 602 13,472 EGYPTIAN TOURAH PORTLAND 13.50 -3.48% 9 122 Close * DoD % Volume ('000) Value (QAR ‘000) Top Losers Close * DoD % Volume ('000) Value (QAR ‘000) AL KHALEEJ TAKAFUL GROUP QSC 17.01 5.76% 16 270 DLALA BROKERAGE AND INVESTMENT 20.69 -9.38% 359 7,822 QATAR CINEMA FILM DISTRIBUTION 25.30 5.34% 1 13 QATAR OMAN INVESTMENT CO QSC 8.90 -5.84% 14 127 QATAR NAVIGATION QSC 67.20 1.79% 248 16,521 ZAD HOLDING CO SAQ 78.70 -5.34% 0 8 QATAR INTERNATIONAL ISLAMIC 53.60 0.93% 76 4,034 ISLAMIC HOLDING GROUP QSC 52.90 -5.29% 126 6,837 DOHA INSURANCE CO QSC 14.50 0.69% 2 29 AL KHALIJ COMMERCIAL BANK QSC 12.91 -4.65% 171 2,260 Top Gainers Top Gainers Qatar Top Losers Data & Charts Source: Thomson Reuters 3
4. MENA Morning Report Thursday , June 22, 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 SA 83,689 104.60 2.3% 14.3% 14,876 414,978 105.40 76.00 16 1.9 3.8% 2 Emirates Telecommunications Group AE 41,084 17.35 0.3% -7.7% 1,504 7,103 20.20 17.15 17 3.4 4.6% 3 Saudi Telecom Company SJSC SA 40,004 75.00 6.4% 0.0% 2,879 57,589 75.90 51.00 0 0.0 0.0% 4 First Abu Dhabi Bank PJSC AE 31,452 10.60 0.0% 6.1% 5,313 15,333 11.55 8.30 10 1.2 4.2% 5 Qatar National Bank SAQ QA 31,031 123.30 -2.1% -16.7% 704 23,667 157.27 122.10 9 1.6 2.6% 6 Al Rajhi Banking & Investment Corp SA 30,510 70.40 10.0% 11.7% 15,063 282,805 70.40 48.60 14 2.2 3.2% 7 Saudi Electricity Company SJSC SA 27,247 24.52 6.5% 9.5% 7,738 50,602 25.80 14.30 12 1.4 2.9% 8 National Commercial Bank SJSC SA 26,883 50.40 10.0% 18.3% 18,404 247,374 50.40 32.00 11 1.7 3.2% 9 Almarai Co SJSC SA 19,202 90.00 9.1% 31.4% 7,381 177,173 90.70 51.50 35 5.6 1.0% 10 Jabal Omar Development Co SJSC SA 17,499 70.60 6.3% -5.6% 2,333 43,919 76.00 46.00 75 6.4 0.0% 11 DP World Ltd AE 17,347 20.90 -1.4% 19.4% 121 690 23.85 15.53 18 2.0 1.8% 12 Emaar Properties PJSC AE 15,498 7.95 -0.4% 11.5% 4,588 9,931 8.08 6.07 11 1.3 0.0% 13 Industries Qatar QSC QA 15,166 92.00 -2.6% -21.7% 189 4,733 122.00 91.10 17 1.7 4.3% 14 Saudi Arabian Mining Co SJSC SA 13,992 44.90 9.6% 15.1% 9,002 107,800 44.90 27.80 744 2.0 0.0% 15 National Bank of Kuwait SAKP KW 13,579 696.00 -1.0% 12.4% 2,416 5,543 723.81 523.81 14 1.3 4.1% 16 Samba Financial Group SJSC SA 13,361 25.05 10.3% 2.9% 14,048 93,852 25.20 15.90 10 1.2 3.8% 17 Emirates NBD Bank PJSC AE 12,061 7.97 -0.5% -6.1% 1,055 2,290 9.00 7.60 7 0.8 5.0% 18 Saudi British Bank SJSC SA 10,321 25.80 6.2% 3.2% 2,196 15,111 26.30 16.40 10 1.2 2.7% 19 Abu Dhabi Commercial Bank PJSC AE 10,035 7.09 -0.8% 0.0% 3,009 5,809 7.68 5.66 9 1.2 5.6% 20 Kingdom Holding Co SA 9,706 9.82 -0.8% -17.8% 307 803 12.95 9.80 68 1.3 5.1% 21 Banque Saudi Fransi SJSC SA 9,561 29.75 2.8% 14.0% 3,307 26,237 30.80 18.00 10 1.2 3.5% 22 Kuwait Finance House KSCP KW 9,200 484.00 -3.8% -1.4% 6,500 10,372 572.73 400.00 13 1.6 0.0% 23 Emaar Malls Group PJSC AE 9,001 2.54 -0.4% -3.1% 3,041 2,103 3.00 2.47 18 2.0 3.9% 24 Ezdan Holding Group QSC QA 8,839 12.23 -3.5% -19.1% 291 971 20.24 10.72 15 1.0 4.1% 25 Emirates Islamic Bank PJSC AE 8,576 5.80 0.0% 0.0% 1 1 11.95 1.57 106 4.6 0.0% 26 Riyad Bank SJSC SA 8,561 10.70 3.1% -7.4% 8,567 24,447 11.80 8.55 10 0.9 6.1% 27 Yanbu National Petrochemicals Co SJSC SA 8,386 55.90 0.0% 3.5% 970 14,461 61.75 37.00 13 2.0 5.4% 28 Masraf Al Rayan QSC QA 7,837 38.35 -2.0% 2.0% 492 5,145 45.40 33.05 14 2.5 5.2% 29 Ooredoo QSC QA 7,768 89.00 -1.1% -12.6% 68 1,641 116.10 87.80 15 1.3 3.9% 30 Dubai Islamic Bank PJSC AE 7,738 5.75 -0.7% 3.2% 5,255 8,228 6.29 4.90 9 1.2 7.8% Company Name Total M-Cap; W. Avg Yield 565,134 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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