MENA Market Report - 23 April

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1. MENA Morning Report Monday , April 23, 2018 Overview Regional Markets: MENA region closed with a negative bias, following the sentiments seen in the global markets on Friday. The movement in oil prices and quarterly earnings is likely to dictate the trading activity within the week going forward but regional investors could also be influenced by the activity in the global markets. For the regional markets, five out of the eight indexes ended in red, while one in green and two remained unchanged for the day. UAE markets ended on a negative note as both Dubai and Abu Dhabi were down by 0.1% and 0.5% respectively for the day. The trading activity in Dubai was subdued during the session and the market breadth was skewed towards losers with 20 decliners compared to 12 advancers, while 3 remained unchanged for the day. Saudi Arabia closed lower as it was down by 0.2% for the day, which was mostly dragged lower by selling pressure recorded in healthcare companies. Kuwait closed on a negative note as it was down by 0.6% for the day. The index has continued to remain sluggish since the introduction of the new composition within the index since April 1, 2018, which was not appreciated by the market participants. Egypt was the only index to remain in positive territory as it was up by 0.7% for the day. Bahrain and Oman closed flat, while Qatar was down by 0.4% for the day. International Markets: At the time of writing this report, Asian markets have opened on a negative note as Nikkei, Hang Seng and Shanghai were all down by 0.3%, 0.7% and 0.4% respectively. Headlines (WW) China and US poised for fresh trade talks (GCC) Arab states finalise regional payment and settlement system (WW) Record USD 164tn global debt - a big number, but not a big worry (GCC) GCC hospitality project value tops USD 147bn in March (WW) Trade tensions with US testing resolve of Chinese consumers (SA) Saudi puts aside USD 64bn for arts, entertainment projects over next decade (WW) Pricey US home sales soar as buyers ignore new tax code (SA) Saudi Arabian insurance profits drop 55% in 2017 (WW) Japan's manufacturers' mood sours as yen, oil prices rise (AE) Dubai to deploy Artificial Intelligence to verify lease contracts (WW) German minister calls for diesel software upgrades by yr-end (AE) Declines in Dubai house prices set to continue as supply mounts up (WW) Australian economy set for steady growth, barring trade shock (AE) A futuristic networking platform launching in UAE (WW) India’s reforms bearing fruits, make case for more steps (QA) Crisis-hit Qatar looks to China for fresh natural gas demand and investment (CMD) Oil set for weekly gain on supply cuts, strong demand (KW) Kuwait edges closer to introducing remittance tax (CMD) Gold prices inch down as global political tensions ease (BH) Tourism and exhibitions authority promotes the Kingdom of Bahrain in Russia (FX) Treasury yields lead dollar higher, Mexican peso suffers selloff (OM) Oman set to see balanced budgets from 2023 (FX) Euro falls below USD 1.23 as ECB eyed; sterling drops (OM) IMF sees a sharp decline in Oman’s deficit in next 2 years (FI) US govt bond yields jump as inflation expectations rise to 3½-year high (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,079.51 -0.1% -0.1% -0.9% -8.6% ˅ ˅ ˅ Abu Dhabi (ADSMI) 4,682.47 -0.5% -0.5% 2.1% 6.5% ˄ ˄ ˄ Saudi (SASEIDX) 8,256.60 -0.2% -0.2% 4.9% 14.3% ˄ ˄ ˄ Kuwait (KWSE) 4,810.54 -0.6% -0.6% -3.8% -0.1% ˅ ˄ ˄ Egypt (EGX30) 17,898.09 0.7% 0.7% 2.6% 19.2% ˄ ˄ ˄ Qatar (DSM) 9,155.55 -0.4% -0.4% 6.8% 7.4% ˄ ˄ ˄ Bahrain (BHSEIDX) 1,301.08 -0.0% -0.0% -1.3% -2.3% ˅ ˅ ˄ Oman (MSM30) 4,759.22 -0.0% -0.0% -0.3% -6.7% ˅ ˅ ˅ 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) 57 175 212 25 72 93 81,837 Abu Dhabi (ADSMI) 43 66 72 19 36 37 1,36,502 Saudi (SASEIDX) 209 179 186 1,177 1,074 1,015 5,22,432 Kuwait (KWSE) 32 65 73 10 199 128 75,578 Egypt (EGX30) 494 360 344 91 112 98 31,090 Qatar (DSM) 12 11 11 63 82 81 1,09,433 Bahrain (BHSEIDX) 2 6 5 2 3 3 21,629 Oman (MSM30) 3 21 18 3 13 12 13,339 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 Monday , April 23, 2018 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios 12.6 11.2 12 8 PE (+ve.eps) 15.5 16 12.3 PB 8.2 1.0 1.3 2.6 149.0 110.8 1.2 - - 0.8 0.8 Bahrain Oman - 87.7 62.3 1.4 0 87.6 0 Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Dubai Average Abu Dhabi Saudi 5.6% 6.0% 4.8% 4.2% 3.8% 4% 2.6% 2% 0.0% 0% Dubai Abu Dhabi Saudi Kuwait Egypt Egypt Qatar Bahrain Oman Average 19.2% 5.9% 5.3% Kuwait Year to Date Perfomance DividendYield 8% 6% 289.4 256.2 300 1.8 Current 11.2 7.5 4 Previous 600 Qatar Bahrain Oman Average 18% 15% 12% 9% 6% 3% 0% -3% -6% -9% -12% 14.3% 7.4% 6.5% -0.1% -2.3% -6.7% -8.6% 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 Monday , April 23, 2018 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) GULF GENERAL INVESTMENT CO PSC 0.25 -6.69% 0 1,082 4,389 MARKA PJSC 0.32 -3.93% 0 1,184 4,205 1,961 SHUAA CAPITAL PSC 0.99 -2.48% 1,871 1,866 1.00% 792 796 ISLAMIC ARAB INSURANCE CO PSC 0.41 -2.17% 532 218 0.94% 366 779 DRAKE AND SCULL INTERNATIONAL 1.67 -1.76% 462 779 Close * DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) SHARJAH CEMENT AND INDUSTRIAL 1.19 10.19% 1 1 UNION INSURANCE CO PSC 1.26 -9.35% 7 10 AL KHAZNA INSURANCE COMPANY 0.24 4.35% 27 6 AXA GREEN CRESCENT INSURANCE CO 0.80 -6.98% 220 183 INTERNATIONAL HOLDING COMPANY 1.43 3.62% 60 84 INVEST BANK PSC 2.24 -4.27% 165 378 ABU DHABI NATIONAL ENERGY CO 1.23 3.36% 19,345 23,407 WAHA CAPITAL PJSC 1.75 -2.23% 152 269 NATIONAL MARINE DREDGING PSC 3.40 3.03% 1 2 DANA GAS PJSC 0.94 -2.08% 5,938 5,641 Close * DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) ASH SHARQIYAH DEVELOPMENT CO 51.70 9.88% 1,433 70,747 SAHARA PETROCHEMICAL CO SJSC 18.98 -5.10% 3,888 75,779 ASTRA INDUSTRIAL GROUP SJSC 20.66 7.60% 2,628 52,385 SAUDI ARABIAN AMIANTIT CO SJSC 7.90 -4.13% 4,910 39,626 MOBILE TELECOMMUNICATIONS CO 8.07 6.18% 18,494 1,44,898 SAUDI PHARMACEUTICAL INDUSTRIES 30.60 -3.01% 191 5,935 ARABIA INSURANCE COOPERATIVE CO 18.50 5.71% 1,064 19,153 AXA COOPERATIVE INSURANCE CO 27.95 -2.44% 393 11,120 AL ALAMIYA FOR COOPERATIVE INS 31.60 4.64% 221 6,842 ARAB NATIONAL BANK 31.35 -2.34% 292 9,249 Close (fils) * DoD % Volume ('000) Value (KWD 000) Close (fils) * DoD % Volume ('000) Value (KWD 000) YIACO MEDICAL COMPANY KPSC 132.00 10.00% 1 0 FIRST DUBAI FOR REAL ESTATE DEV 41.00 -8.89% 323 14 WETHAQ TAKAFUL INSURANCE CO 31.50 9.76% 1 0 AL MASSALEH REAL ESTATE CO KSCP 34.00 -7.61% 5 0 47.00 -6.00% 562 27 Close * DoD % Volume ('000) Value (AED ‘000) AL SALAM BANK SUDAN PLC 1.64 3.14% 0 242 AMANAT HOLDINGS PJSC 1.40 2.94% 0 DEYAAR DEVELOPMENT PJSC 0.47 1.51% AJMAN BANK PJSC 1.01 EMAAR MALLS PJSC 2.14 Dubai Top Gainers Abu Dhabi Top Gainers Saudi Arabia Top Gainers Kuwait Top Gainers Egypt Top Losers Top Losers Top Losers FUTURE KID ENTERTAINMENT AND RE 119.00 9.17% 1 0 DANAH AL SAFAT FOODSTUFF CO TAAMEER REAL ESTATE INVESTMENT 29.50 8.86% 200 6 BOUBYAN INTERNATIONAL INDUSTRY 27.00 -5.26% 12 0 METAL AND RECYCLING CO KSCP 64.00 6.67% 0 0 UNITED REAL ESTATE COMPANY SAKP 57.00 -5.00% 5 0 Close * DoD % Volume ('000) Value (EGP ‘000) Top Losers Close * DoD % Volume ('000) Value (EGP ‘000) TRANS OCEANS TOURS SAE 0.08 14.29% 0 7 ARAB ENGINEERING INDUSTRIES SAE 4.21 -9.07% 10 44 QALAA HOLDINGS SAE 2.68 8.50% 26,957 69,415 GOLDEN TEXTILES & CLOTHES WOOL 6.22 -9.06% 0 1 ORASCOM TELECOM MEDIA & TECH 0.85 7.59% 1,53,157 1,25,588 MISR NATIONAL STEEL SAE 51.60 -8.04% 2 111 ELECTRO CABLE EGYPT CO SAE 0.92 6.98% 7,876 7,010 SUEZ CEMENT COMPANY SAE 24.00 -7.55% 2 59 EL SAEED CONTRACTING AND REAL ES 0.76 5.56% 17,940 13,276 DICE SPORT AND CASUAL WEAR SAE 25.64 -4.83% 15 404 Top Gainers Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) QATAR FUEL CO QSC 127.50 3.07% 199 24,940 EZDAN HOLDING GROUP QSC 11.61 -3.81% 614 7,275 MESAIEED PETROCHEMICAL HOLDING 17.00 2.91% 3,110 52,120 AAMAL CO QPSC 11.05 -1.78% 282 3,146 GULF INTERNATIONAL SERVICES QSC 21.24 2.76% 425 8,916 QATARI GERMAN COMPANY FOR MED 5.71 -1.55% 18 103 QATAR OMAN INVESTMENT CO QSC 7.38 2.50% 8 57 ZAD HOLDING CO SAQ 71.98 -1.40% 25 1,804 SALAM INTERNATIONAL INVESTMENT 5.73 1.96% 128 724 INDUSTRIES QATAR QSC 111.00 -1.33% 92 10,252 Top Gainers Qatar Top Losers Data & Charts Source: Thomson Reuters Top Losers 3
4. MENA Morning Report Monday , April 23, 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 97,597 122.00 -0.7% 19.8% 3,746 1,21,872 123.80 94.25 20 2.2 3.4% 2 Saudi Telecom Company SJSC SA 44,372 83.20 -1.8% 21.3% 202 4,474 86.00 65.10 16 2.7 4.8% 3 Emirates Telecommunications Group Co AE 40,845 17.25 -0.9% -1.4% 156 735 18.85 15.75 17 3.4 4.6% 4 Qatar National Bank QPSC QA 38,823 153.00 -0.3% 21.4% 40 1,676 159.00 115.01 11 2.0 3.9% 5 First Abu Dhabi Bank PJSC AE 37,088 12.50 -0.4% 22.0% 127 433 12.65 10.05 14 1.3 5.6% 6 Al Rajhi Banking & Investment Corp Ltd SA 36,616 84.50 0.1% 30.8% 2,365 53,295 85.60 61.00 15 2.5 4.7% 7 National Commercial Bank SJSC SA 35,786 67.10 0.3% 21.8% 363 6,494 67.20 38.00 14 2.1 2.5% 8 Saudi Electricity Company SJSC SA 24,177 21.76 1.2% 3.3% 1,939 11,252 26.05 19.76 13 1.3 3.2% 9 Industries Qatar QSC QA 18,449 111.00 -1.3% 14.4% 92 2,797 115.00 85.00 20 2.0 4.5% 10 DP World Ltd AE 18,260 22.00 -0.7% -12.0% 171 1,022 27.06 20.30 16 1.7 1.9% 11 Saudi Arabian Mining Co SJSC SA 17,792 57.10 -0.5% 9.6% 317 4,827 57.70 39.50 93 2.6 0.0% 12 Almarai Co SJSC SA 15,813 59.30 0.7% 10.2% 893 14,116 78.64 50.00 28 4.0 1.3% 13 Emirates NBD Bank PJSC AE 15,737 10.40 0.5% 26.8% 357 1,010 11.00 7.95 7 1.0 3.8% 14 Samba Financial Group SJSC SA 15,360 28.80 -0.7% 22.4% 1,248 9,586 29.20 20.50 11 1.3 5.2% 15 National Bank of Kuwait SAKP KW 15,069 727.00 0.6% 4.9% 1,286 3,118 761.90 619.05 14 1.4 3.7% 16 Emirates Islamic Bank PJSC AE 14,046 9.50 0.0% -3.1% 1 1 10.00 4.90 75 7.9 0.0% 17 Saudi British Bank SJSC SA 13,280 33.20 2.2% 23.0% 242 2,146 33.50 21.55 13 1.5 4.3% 18 Riyad Bank SJSC SA 11,888 14.86 -0.5% 18.1% 762 3,021 15.00 10.10 11 1.2 4.9% 19 Jabal Omar Development Co SJSC SA 11,648 47.00 -0.5% -20.5% 943 11,821 75.60 46.65 - 4.6 0.0% 20 Kuwait Finance House KSCP KW 10,917 516.00 -0.2% -1.5% 1,338 2,302 590.91 424.55 17 1.7 2.7% 21 Emaar Properties PJSC AE 10,916 5.60 -0.7% -14.3% 3,186 4,857 8.43 5.52 7 0.8 0.0% 22 Yanbu National Petrochemicals Co SJSC SA 10,845 72.30 -2.3% 22.5% 288 5,543 74.50 52.00 17 2.4 4.5% 23 Banque Saudi Fransi SJSC SA 10,543 32.80 -0.3% 15.1% 445 3,895 33.40 25.30 11 1.2 4.3% 24 Abu Dhabi Commercial Bank PJSC AE 9,935 7.02 -0.4% 3.2% 1,092 2,086 7.50 6.50 9 1.1 6.0% 25 Kingdom Holding Co SA 8,933 9.04 0.4% 0.0% 179 431 11.30 7.90 50 1.1 0.0% 26 Abu Dhabi National Oil Co for Dist AE 8,508 2.50 1.6% -5.7% 645 439 2.90 2.44 17 11.0 2.4% 27 Ezdan Holding Group QSC QA 8,460 11.61 -3.8% -3.9% 614 1,959 16.30 6.19 18 1.0 0.0% 28 Alinma Bank SJSC SA 8,376 20.94 -0.7% 9.3% 19,786 1,10,479 21.58 14.00 16 1.5 3.8% 29 Arab National Bank SA 8,360 31.35 -2.3% 26.6% 292 2,437 33.65 19.15 10 1.3 3.8% 30 Saudi Arabia Fertilizers Co SJSC SA 7,755 69.80 -2.0% 7.1% 349 6,496 73.10 57.00 33 4.2 2.5% Company Name Total M-Cap; W. Avg Yield 6,26,194 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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