MENA Market Report - 24 April

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1. MENA Morning Report Tuesday , April 24, 2018 Overview Regional Markets: MENA region ended on a subdued note as four out of the eight indexes closed in red, while three in green and one remained unchanged for the day. The first quarter earnings will be a catalyst for the regional markets as investors will take cue from it to accordingly position within the region. For the day, Saudi Arabia and Egypt were the two best performers as both recorded gains of 1.0% during the session, continuing to be the most preferred markets for foreign investors. The index was supported by a strong buying interest in energy and banking sector stocks, which boosted the broader sentiments during the session. The day's performance in Saudi Arabia was able to recover the losses recorded in the previous session to turn positive and extend the annual gains to 15.3%. UAE markets ended on a mixed note as Dubai was down by 0.6%, while Abu Dhabi was up by 0.2% for the day. Dubai was dragged lower by the market heavyweights, which continued to remain under pressure, especially Emaar. Kuwait continued to close lower as it was down by 0.3% for the day, extending the losses to 0.9% in the previous two sessions. Bahrain and Oman were both down by 0.2% and 0.1% respectively, while Qatar was flat for the day. International Markets: US markets ended on a negative note as DJIA and Nasdaq were down by 0.1% and 0.3% respectively, while S&P was up by 0.01% for the day. European markets closed on a positive note as FTSE, CAC and DAX were all up by 0.4%, 0.5% and 0.3% respectively for the day. At the time of writing this report, Asian markets have opened on a positive note as Nikkei, Hang Seng and Shanghai were all up by 0.8%, 1.1% and 2.1% respectively. Headlines (WW) US economy still has plenty of fuel for growth, leading indicators show (AE) Tourism contributes USD 1.9bn to Sharjah’s GDP (WW) China may backslide on deleveraging if trade war looms (AE) Dubai rents stabilize for the first time in two years (WW) China to strive to reach targets this year (AE) Real estate scams unlikely to shake investor trust in UAE (WW) China's March waste imports plunge from a year ago as refuse rules start (AE) Abu Dhabi, Shanghai plan exchange focusing on China trade (WW) Euro zone business growth stabilizes but euro a rising concern (AE) UAE inflation continues easing in March after tax boost (WW) Japan manufacturing picks up in April but export orders fall (EG) IFC to invest almost USD 1bn to support Egypt’s private sector (WW) Bank of Japan's Kuroda says easy policy still needed for some time (EG) Egypt is ready to be an energy hub for Europe (WW) India likely to file dispute at WTO if US rejects exemption on tariffs (QA) Opportunities worth QAR 6.5bn await Qatar SMEs (CMD) Oil dips as rising US yields steer bulls (KW) Tourism projects in Kuwait to create 200,000 jobs (CMD) Gold slips to two-week low as rising bond yields support dollar (KW) Kuwait, Oman to see fastest growth in 2019 (FX) Dollar puts euro under pressure after US bond yields rise (BH) Bahrain plans bankruptcy law (FX) Sterling stuck at two-week low as investors cautious over May rate hike (OM) Oman seeking investors for USD 5bn tourism project by year-end (FI) US/Germany bond yield spread hits widest level in 29 years (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,061.97 -0.6% -0.7% -1.5% -9.1% ˅ ˅ ˅ Abu Dhabi (ADSMI) 4,693.47 0.2% -0.3% 2.4% 6.7% ˄ ˄ ˄ Saudi (SASEIDX) 8,335.35 1.0% 0.7% 5.9% 15.3% ˄ ˄ ˄ Kuwait (KWSE) 4,794.57 -0.3% -0.9% -4.1% -0.4% ˅ ˄ ˄ Egypt (EGX30) 18,080.70 1.0% 1.7% 3.6% 20.4% ˄ ˄ ˄ Qatar (DSM) 9,157.57 0.0% -0.4% 6.8% 7.4% ˄ ˄ ˄ Bahrain (BHSEIDX) 1,298.60 -0.2% -0.2% -1.5% -2.5% ˅ ˅ ˄ Oman (MSM30) 4,756.03 -0.1% -0.1% -0.4% -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) 70 170 210 44 72 93 81,878 Abu Dhabi (ADSMI) 95 67 72 53 36 37 1,36,465 Saudi (SASEIDX) 256 181 188 1,514 1,086 1,023 5,20,871 Kuwait (KWSE) 52 64 73 13 198 128 75,578 Egypt (EGX30) 378 359 344 111 112 98 31,090 Qatar (DSM) 15 11 11 163 81 82 1,08,903 Bahrain (BHSEIDX) 2 6 5 3 3 3 21,576 Oman (MSM30) 8 21 18 3 13 12 13,319 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 Tuesday , April 24, 2018 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios 12.6 11.2 12 8 PE (+ve.eps) 15.4 16 12.3 PB 8.2 1.3 2.6 1.8 148.9 110.8 1.2 - - 0.8 0.8 Bahrain Oman - 87.8 62.3 1.4 0 87.7 0 Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Dubai Average Abu Dhabi Saudi 5.6% 5.9% 5.3% 6.0% 4.8% 4.2% 3.8% 4% 2.6% 2% 0.0% 0% Dubai Abu Dhabi Saudi Kuwait Egypt Kuwait Egypt Qatar Bahrain Oman Average Year to Date Perfomance DividendYield 8% 6% 289.7 255.0 300 1.0 Current 11.2 7.5 4 Previous 600 Qatar Bahrain Oman Average 21% 18% 15% 12% 9% 6% 3% 0% -3% -6% -9% -12% 20.4% 15.3% 7.4% 6.7% -0.4% -2.5% -6.7% -9.1% 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 Tuesday , April 24, 2018 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) TAKAFUL EMARAT INSURANCE PJSC 1.88 -9.57% 0 0 5,529 DAMAC PROPERTIES DUBAI CO PSC 2.98 -7.05% 0 11,267 1,303 526 DUBAI ISLAMIC INSURANCE & REINS 0.70 -3.60% 184 130 0.55% 5,873 31,805 DUBAI REFRESHMENTS PJSC 12.00 -2.50% 302 3,670 0.47% 1,855 3,960 AL SALAM BANK SUDAN PLC 1.64 -2.44% 26 43 Close * DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) ABU DHABI NATIONAL ENERGY CO 1.23 14.63% 48,701 56,078 NATIONAL BANK OF FUJAIRAH PJSC 2.97 -9.09% 20 62 UNION INSURANCE CO PSC 1.26 14.29% 6 8 EMIRATES DRIVING CO PJSC 8.60 -6.98% 10 89 AL KHAZNA INSURANCE COMPANY 0.24 4.17% 227 53 NATIONAL MARINE DREDGING PSC 3.40 -5.88% 55 193 MANAZEL REAL ESTATE PJSC 0.54 1.85% 1,128 604 GULF CEMENT CO PSC 1.05 -2.86% 100 107 ABU DHABI COMMERCIAL BANK PJSC 7.02 1.14% 4,177 29,154 DANA GAS PJSC 0.94 -2.13% 17,096 16,245 Close * DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) SAUDI RESEARCH AND MARKETING 93.10 9.99% 499 44,319 SAUDI CEMENT CO SJSC 52.20 -3.45% 245 13,008 HSBC AMANAH SAUDI 20 ETF 30.35 9.56% 2 64 MIDDLE EAST PAPER CO SJSC 26.65 -2.63% 399 10,773 AL BABTAIN POWER AND TELECOM 28.50 7.72% 1,815 49,883 ASTRA INDUSTRIAL GROUP SJSC 20.66 -2.32% 1,642 34,336 RABIGH REFINING AND PETROCHEM 29.40 7.31% 6,564 1,86,407 AL SAGR COOPERATIVE INSURANCE 25.40 -1.97% 434 11,145 METLIFE AMERICAN INTERNATIONAL 24.73 5.12% 721 17,406 YANBU NATIONAL PETROCHEMICALS 72.30 -1.80% 393 28,641 Close (fils) * DoD % Volume ('000) Value (KWD 000) Close (fils) * DoD % Volume ('000) Value (KWD 000) MENA REAL ESTATE CO KSCP 30.00 80.00% 0 0 REAL ESTATE TRADE CENTERS CO 25.40 -13.39% 38 1 WARBA INSURANCE COMPANY KSCP 64.00 25.16% 364 21 AAYAN REAL ESTATE COMPANY KSCP 57.00 -10.00% 41 2 31.50 -9.84% 49 2 Close * DoD % Volume ('000) Value (AED ‘000) GULF GENERAL INVESTMENT CO PSC 0.25 3.59% 0 410 EMIRATES NBD BANK PJSC 10.40 1.44% 0 ISLAMIC ARAB INSURANCE CO PSC 0.41 0.99% DUBAI ISLAMIC BANK PJSC 5.43 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 INTERNATIONAL RESORTS COMPANY 24.20 20.66% 585 13 WETHAQ TAKAFUL INSURANCE CO BOUBYAN INTERNATIONAL INDUSTRY 27.00 10.00% 18 0 AUTOMATED SYSTEMS CO KPSC 165.00 -8.48% 10 2 NATIONAL RANGES CO KPSC 16.50 9.09% 0 0 KUWAIT FINANCIAL CENTRE KPSC 110.00 -7.27% 5 1 Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) INDUSTRIAL AND ENGINEERING ENT 10.07 13.01% 0 1,211 CREDIT AGRICOLE EGYPT SAE 48.92 -7.20% 450 22,846 EL NASR FOR MANUFACTURING AGRI 17.29 8.33% 52 867 RAYA CONTACT CENTER CO 14.00 -6.29% 107 1,553 OCTOBER PHARMA FOR PHARMA 64.08 8.32% 1 47 EL EBOUR COMPANY FOR REAL EST 8.91 -6.06% 43 399 SUEZ BAGS CO SAE 24.24 7.51% 8 178 SOUTH CAIRO AND GIZA MILLS & BAK 33.91 -5.49% 3 93 EGYPTIAN SATELLITE CO SAE 9.20 5.98% 1 8 ISMAILIA MISR POULTRY CO SAE 3.51 -3.70% 224 803 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) Top Gainers Top Gainers QATAR FUEL CO QSC Qatar Top Losers Top Losers Top Losers 127.50 3.53% 180 22,575 AAMAL CO QPSC 11.05 -4.16% 264 2,984 VODAFONE QATAR QSC 9.30 2.80% 5,949 54,576 QATAR OMAN INVESTMENT CO QSC 7.38 -3.66% 2 13 QATARI INVESTORS GROUP QSC 33.00 1.82% 25 806 ZAD HOLDING CO SAQ 71.98 -2.75% 30 2,207 GULF WAREHOUSING CO QPSC 40.50 1.73% 33 1,311 MASRAF AL RAYAN QPSC 36.32 -1.73% 780 28,573 QATAR ELECTRICITY AND WATER CO 201.00 1.49% 85 17,023 QATARI GERMAN CO FOR MEDICAL DE 5.71 -1.40% 20 116 Data & Charts Source: Thomson Reuters 3
4. MENA Morning Report Tuesday , April 24, 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 98,235 122.80 0.7% 20.6% 4,734 1,55,038 123.80 94.25 20 2.2 3.4% 2 Saudi Telecom Company SJSC SA 45,064 84.50 1.6% 23.2% 190 4,276 86.00 65.10 17 2.7 4.7% 3 Emirates Telecommunications Group Co AE 41,199 17.40 0.9% -0.6% 880 4,169 18.85 15.75 18 3.4 4.6% 4 Qatar National Bank QPSC QA 38,809 152.99 -0.0% 21.4% 195 8,179 159.00 115.01 11 2.0 3.9% 5 First Abu Dhabi Bank PJSC AE 37,087 12.50 0.0% 22.0% 2,538 8,637 12.65 10.05 14 1.3 5.6% 6 Al Rajhi Banking & Investment Corp Ltd SA 36,831 85.00 0.6% 31.6% 2,712 61,472 85.60 61.00 15 2.5 4.7% 7 National Commercial Bank SJSC SA 36,318 68.10 1.5% 23.6% 574 10,431 68.20 38.00 14 2.2 2.5% 8 Saudi Electricity Company SJSC SA 24,776 22.30 2.5% 5.9% 4,315 25,661 26.05 19.76 13 1.3 3.1% 9 Industries Qatar QSC QA 18,444 111.00 0.0% 14.4% 244 7,451 115.00 85.00 20 2.0 4.5% 10 DP World Ltd AE 18,260 22.00 0.0% -12.0% 92 550 27.06 20.30 16 1.7 1.9% 11 Saudi Arabian Mining Co SJSC SA 18,009 57.80 1.2% 10.9% 441 6,805 58.70 39.50 94 2.6 0.0% 12 Almarai Co SJSC SA 16,052 60.20 1.5% 11.9% 820 13,172 78.64 50.00 28 4.0 1.2% 13 Emirates NBD Bank PJSC AE 15,964 10.55 1.4% 28.7% 535 1,538 11.00 7.95 7 1.0 3.8% 14 Samba Financial Group SJSC SA 15,732 29.50 2.4% 25.4% 1,840 14,473 29.55 20.50 12 1.3 5.1% 15 National Bank of Kuwait SAKP KW 15,145 731.00 0.6% 5.4% 1,975 4,813 761.90 619.05 14 1.4 3.7% 16 Emirates Islamic Bank PJSC AE 14,045 9.50 0.0% -3.1% 1 1 10.00 4.90 75 7.9 0.0% 17 Saudi British Bank SJSC SA 13,279 33.20 0.0% 23.0% 293 2,595 33.50 21.55 13 1.5 4.3% 18 Riyad Bank SJSC SA 12,015 15.02 1.1% 19.4% 1,759 7,047 15.08 10.10 11 1.2 4.9% 19 Jabal Omar Development Co SJSC SA 11,512 46.45 -1.2% -21.4% 962 11,915 75.60 46.35 - 4.5 0.0% 20 Kuwait Finance House KSCP KW 10,912 516.00 0.0% -1.5% 3,120 5,368 590.91 424.55 17 1.7 2.7% 21 Emaar Properties PJSC AE 10,877 5.58 -0.4% -14.7% 8,463 12,859 8.43 5.52 7 0.8 0.0% 22 Banque Saudi Fransi SJSC SA 10,655 33.15 1.1% 16.3% 937 8,287 33.40 25.30 11 1.3 4.2% 23 Yanbu National Petrochemicals Co SJSC SA 10,649 71.00 -1.8% 20.3% 393 7,432 74.50 52.00 17 2.4 4.6% 24 Abu Dhabi Commercial Bank PJSC AE 10,048 7.10 1.1% 4.4% 4,177 8,074 7.50 6.50 9 1.1 5.9% 25 Kingdom Holding Co SA 8,913 9.02 -0.2% 0.0% 203 487 11.30 7.90 50 1.1 0.0% 26 Ezdan Holding Group QSC QA 8,465 11.62 0.1% -3.8% 411 1,312 16.30 6.19 18 1.0 0.0% 27 Alinma Bank SJSC SA 8,424 21.06 0.6% 9.9% 20,300 1,14,005 21.58 14.00 16 1.5 3.8% 28 Arab National Bank SA 8,346 31.30 -0.2% 26.4% 775 6,467 33.65 19.15 10 1.3 3.8% 29 Abu Dhabi National Oil Co for Dist AE 8,338 2.45 -2.0% -7.5% 769 513 2.90 2.44 17 10.8 2.4% 30 Saudi Arabia Fertilizers Co SJSC SA 7,811 70.30 0.7% 7.8% 365 6,845 73.10 57.00 33 4.3 2.5% Company Name Total M-Cap; W. Avg Yield 6,30,216 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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