MENA Market Report - 24 July

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1. MENA Morning Report Monday , July 24, 2017 Overview Regional Markets: MENA region ended the session on a mixed note for the second consecutive session as sentiments were dampened by a decline in oil prices. For the regional markets, three indexes ended in green, while two in red, one unchanged and two were closed for the day. UAE markets ended on a mixed note as Dubai was up by 0.6%, while Abu Dhabi was down by 0.4% for the day. Dubai witnessed strong buying interest in Amlak, reaching a four month high as it accounted for onefourth of total traded value during the session. The stock has been surging during the past two trading sessions on the back of news that it was partnering with Damac to sell second homes to its customers. The market breadth in Abu Dhabi was skewed towards decliners as a total of 14 stocks declined compared to 9 advancers, while 5 remained unchanged for the day. Saudi Arabia closed flat with a positive bias for the day as the index was mostly supported by energy and banking sector stocks. The market breadth was also skewed towards gainers as there were 94 advancers compared to 75 decliners. Qatar closed on a negative note as it was down by 0.4% for the day as investors are concerned about the uncertainty over the crisis and no possible resolution in sight. Kuwait ended on a positive note as it was up by 0.3% for the day. Bahrain closed higher by 0.2%, while Egypt and Oman were closed for the day. International Markets: At the time of writing this report, Asian markets have opened on a mixed note as Hang Seng and Shanghai are up by 0.4% and 0.2%, while Nikkei is down by 0.9%. Headlines (WW) Current US Economic Factors Affecting Business Strategy (ME) Mena plans USD 200bn investment in renewable sector (WW) No-show inflation poses conundrum for US Fed (ME) Middle East growth to bounce back in 2018 (WW) China aims for pricing power in launching crude oil futures (GCC) A proactive approach to GCC VAT implementation (WW) UK public finances suffer inflation hit, adding to Hammond's headache (SA) Saudi Arabia's bold reforms see non-oil sector pick up (WW) UK government borrowing jumps as inflation boosts debt costs (SA) Saudi Arabia to end reliance on oil revenue (WW) Labour blasts 'failing' government after UK deficit jumps in June (SA) IMF lowers Saudi growth forecast to close to zero (WW) Greek current account deficit widens in May, tourism revenues rise (AE) Abu Dhabi's growth set to pick up on fiscal reserves (WW) Expo to boost trade ties between China, Japan, South Korea (AE) Dubai apartment prices increase in the second quarter (WW) Japan's household spending seen rising for first time since February 2016 (AE) Demand for business credit, personal loans up slightly in UAE (CMD) After false dawn, Big Oil to double down on cost cuts (AE) UAE central bank posts sharp rise in foreign currency supply (CMD) Gold hits 3-wk high as dollar dives; heads for 2nd weekly gain (EG) Abu Dhabi funds projects worth AED 4bn in Egypt (FX) Dollar falls on perceived ECB path, US political roadblocks (QA) Qatar's rise as a global LNG player (FX) Sterling to fall 15% on slowing UK growth, BoE inaction (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,596.41 0.6% 0.6% 6.0% 1.9% ˄ ˄ ˅ Abu Dhabi (ADSMI) 4,534.79 -0.4% -0.4% 2.5% -0.3% ˄ ˅ ˄ Saudi (SASEIDX) 7,263.60 0.0% 0.0% -2.2% 0.7% ˄ ˄ ˄ Kuwait (KWSE) 6,799.67 0.3% 0.3% 0.5% 18.3% ˄ ˅ ˄ Egypt (EGX30) Closed Closed -0.8% 2.4% 11.1% ˄ ˄ ˄ Qatar (DSM) 9,499.75 -0.4% -0.4% 5.2% -9.0% ˄ ˅ ˅ Bahrain (BHSEIDX) 1,323.06 0.2% 0.2% 1.0% 8.4% ˄ ˅ ˄ Closed Closed -2.4% -2.3% -13.5% ˅ ˅ ˅ 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) 340 295 333 110 97 127 83,105 Abu Dhabi (ADSMI) 71 108 113 31 48 55 135,034 Saudi (SASEIDX) 102 173 179 599 810 875 459,404 Index Kuwait (KWSE) 119 86 271 396 47 88 75,578 Egypt (EGX30) Closed 305 289 Closed 75 82 20,785 Qatar (DSM) 7 11 11 53 87 93 113,011 Bahrain (BHSEIDX) 2 3 4 2 2 2 20,325 Closed 14 17 Closed 6 9 13,754 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 Monday , July 24, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 PB 14.1 12.1 11.2 12 11.3 386.2 8.5 300 8 239.3 188.3 4 1.2 Current 489.3 12.6 9.5 1.5 2.1 1.7 1.4 0.9 0.9 Qatar Bahrain Oman - - - 178.1 106.9 87.2 1.4 0 0 Dubai Abu Dhabi Saudi Kuwait Egypt Average Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain Oman Average Year to Date Perfomance DividendYield 8% 27% 18.3% 6.2% 6% Previous 600 4.8% 18% 5.3% 9% 4.4% 4.3% 4% 3.5% 3.0% 11.1% 1.9% 8.4% 0.7% 0% -0.3% -9% 2% -9.0% -13.5% -18% 0.0% 0.0% -27% 0% Dubai Abu Dhabi Saudi Kuwait 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 Monday , July 24, 2017 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) DEYAAR DEVELOPMENT PJSC 0.54 -2.03% 37,866 20,774 DXB ENTERTAINMENTS PJSC 0.77 -1.18% 4,497 3,461 41,200 ARABTEC HOLDING PJSC 3.55 -1.13% 7,304 26,076 58,007 63,847 ARAMEX PJSC 5.31 -0.75% 6 30 30 78 ISLAMIC ARAB INSURANCE CO PSC 0.45 -0.44% 8,077 3,643 DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) 4.58 2.40% 12 54 AL KHAZNA INSURANCE COMPANY 0.41 -9.76% 133 58 NATIONAL BANK OF RAS AL KHAIMAH 4.35 2.30% 5 22 ABU DHABI AVIATION 2.99 -9.70% 21 67 RAK PROPERTIES PJSC 0.67 1.49% 10,425 6,933 ALDAR PROPERTIES PJSC 2.39 -2.51% 18,717 45,310 ABU DHABI ISLAMIC BANK PJSC 3.57 1.40% 638 2,263 AGTHIA GROUP PJSC 5.30 -2.26% 19 102 METHAQ TAKAFUL INSURANCE CO 0.85 1.18% 2,941 2,485 ABU DHABI NATIONAL ENERGY CO 0.51 -1.96% 1,290 664 Close * DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) UNITED ELECTRONICS COMPANY JSC 36.95 10.15% 1,103 38,876 WALAA COOPERATIVE INSURANCE 30.50 -3.44% 454 14,095 MALATH COOPERATIVE INSURANCE 23.68 9.80% 1,533 34,681 RAYDAN COMPANY CJSC 23.20 -3.28% 13 300 ALLIED COOPERATIVE INSURANCE 13.80 5.80% 1,130 15,165 UNITED WIRE FACTORIES CO JSC 19.06 -3.04% 2,122 41,070 ASH SHARQIYAH DEVELOPMENT CO 39.80 4.40% 638 24,864 BUPA ARABIA FOR COOPERATIVE 126.80 -2.84% 89 11,436 ALINMA BANK SJSC 15.68 3.06% 24,992 386,057 YAMAMA CEMENT COMPANY SJSC 17.16 -2.21% 445 7,721 Close (fils) * DoD % Volume ('000) Value (KWD 000) Close (fils) * DoD % Volume ('000) Value (KWD 000) 140.00 12.86% 17 2 KUWAIT FOOD CO KSCP 2418.0 -13.15% 0 1 BOUBYAN INTERNATIONAL INDUS 45.70 11.60% 1,708 74 WETHAQ TAKAFUL INSURANCE CO 51.00 -11.76% 17 1 YIACO MEDICAL COMPANY KPSC 164.00 9.15% 7 1 AJWAN GULF REAL ESTATE CO KSCP 69.90 -10.73% 585 43 AAYAN LEASING AND INVESTMENT CO 42.80 5.37% 7,655 319 UNITED PROJECTS FOR AVIATION 851.00 -8.46% 4 4 NATIONAL PETROLEUM SERVICES CO 1455.0 4.81% 0 0 ARZAN FINANCIAL GROUP 37.60 -6.91% 151 6 Close * DoD % Volume ('000) Value (EGP ‘000) Close DoD % Volume Value Close * DoD % Volume ('000) Value (QAR ‘000) Close DoD % Volume Value AJMAN BANK PJSC 1.16 7.76% 0 12,974 TAKAFUL EMARAT INSURANCE PJSC 2.28 4.39% 0 185 DUBAI INVESTMENTS PJSC 2.31 4.33% 18,213 AMLAK FINANCE PJSC 1.12 3.57% DUBAI NATIONAL INSURANCE 2.61 3.45% Close * UNION NATIONAL BANK PJSC Dubai Top Gainers Abu Dhabi Top Gainers Saudi Arabia Top Gainers Kuwait Top Gainers AJIAL REAL ESTATE ENTERTAINMENT Top Gainers Top Losers Top Losers Top Losers Top Losers Market Remained Closed Egypt Market Remained Closed Top Losers Close * DoD % Volume ('000) Value (QAR ‘000) ISLAMIC HOLDING GROUP QSC 51.40 3.31% 51 2,559 VODAFONE QATAR QSC 8.80 -2.27% 1,401 12,473 QATARI GERMAN COMPANY 8.08 2.72% 25 199 AAMAL CO QSC 11.48 -1.83% 67 778 AHLI BANK QSC 32.50 1.54% 0 10 GULF WAREHOUSING CO QSC 50.50 -1.78% 88 4,504 ZAD HOLDING CO SAQ 76.50 1.18% 5 374 WIDAM FOOD CO QSC 63.00 -1.43% 31 1,979 GULF INTERNATIONAL SERVICES QSC 22.97 1.18% 2,317 52,905 QATAR NATIONAL BANK SAQ 142.00 -1.27% 90 12,852 Qatar Top Gainers Data & Charts Source: Thomson Reuters Top Losers 3
4. MENA Morning Report Monday , July 24, 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 79,840 99.80 -0.1% 9.1% 1,999 53,189 105.40 76.00 15 1.8 6.0% 2 Emirates Telecommunications Group Co AE 43,451 18.35 0.5% -2.4% 407 2,031 20.20 17.10 18 3.5 4.4% 3 Saudi Telecom Company SJSC SA 39,787 74.60 -1.1% 0.0% 71 1,415 78.90 51.00 0 0.0 0.0% 4 Qatar National Bank SAQ QA 35,561 140.20 -1.3% -5.3% 90 3,462 157.27 121.70 10 1.8 2.3% 5 First Abu Dhabi Bank PJSC AE 31,451 10.60 -0.9% 6.1% 592 1,708 11.55 8.30 10 1.2 4.2% 6 Al Rajhi Banking & Investment Corp SA 27,603 63.70 -0.5% 1.1% 2,765 46,965 71.70 48.60 12 2.0 3.5% 7 National Commercial Bank SJSC SA 26,880 50.40 0.4% 18.3% 347 4,665 58.00 32.00 11 1.7 3.2% 8 Saudi Electricity Company SJSC SA 26,777 24.10 0.2% 7.6% 800 5,139 26.05 14.30 12 1.4 2.9% 9 DP World Ltd AE 18,841 22.70 0.4% 29.6% 13 77 23.85 15.53 19 2.1 1.7% 10 Almarai Co SJSC SA 17,835 83.60 -0.5% 22.0% 44 983 98.30 51.50 33 5.2 1.1% 11 Jabal Omar Development Co SJSC SA 17,101 69.00 -1.7% -7.7% 133 2,455 76.00 46.00 74 6.3 0.0% 12 Industries Qatar QSC QA 16,680 100.40 0.4% -14.6% 16 440 122.00 91.10 19 1.9 0.0% 13 Emaar Properties PJSC AE 15,790 8.10 0.0% 13.6% 2,374 5,235 8.20 6.37 11 1.4 1.9% 14 Saudi Arabian Mining Co SJSC SA 15,346 49.25 0.5% 26.3% 273 3,584 53.80 27.80 816 2.2 0.0% 15 Samba Financial Group SJSC SA 13,733 25.75 -0.2% 5.7% 155 1,062 27.10 15.90 10 1.2 3.7% 16 National Bank of Kuwait SAKP KW 13,621 694.00 1.2% 12.1% 5,294 12,187 723.81 533.33 14 1.3 4.1% 17 Emirates NBD Bank PJSC AE 12,242 8.09 0.5% -4.7% 168 370 9.00 7.60 7 0.8 4.9% 18 Saudi British Bank SJSC SA 10,820 27.05 0.2% 8.2% 60 433 28.40 16.40 11 1.3 2.6% 19 Kingdom Holding Co SA 10,159 10.28 -0.2% 0.0% 123 337 12.95 9.80 71 1.3 4.9% 20 Abu Dhabi Commercial Bank PJSC AE 10,134 7.16 -1.2% 3.8% 2,235 4,357 7.68 5.66 9 1.2 5.6% 21 Kuwait Finance House KSCP KW 10,097 528.00 2.1% 7.6% 8,065 14,123 572.73 400.00 16 1.7 2.9% 22 Banque Saudi Fransi SJSC SA 9,736 30.30 -0.7% 16.1% 90 724 33.20 18.00 10 1.2 0.0% 23 Ezdan Holding Group QSC QA 9,324 12.80 -0.8% -15.3% 678 2,382 20.24 10.72 16 1.1 3.9% 24 Emirates Islamic Bank PJSC AE 8,871 6.00 0.0% 0.0% 1 1 11.95 1.57 94 4.6 0.0% 25 Emaar Malls Group PJSC AE 8,788 2.48 0.0% 0.0% 415 280 3.00 2.38 17 1.9 0.0% 26 Riyad Bank SJSC SA 8,624 10.78 0.4% 0.0% 308 887 11.80 8.55 11 0.9 0.0% 27 Masraf Al Rayan QSC QA 8,568 41.60 -1.0% 10.6% 162 1,847 45.40 33.05 15 2.6 4.8% 28 Ooredoo QSC QA 8,532 97.00 1.0% -4.7% 74 1,972 116.10 88.20 16 1.4 3.6% 29 Yanbu National Petrochemicals Co SJSC SA 8,250 55.00 1.1% 1.9% 249 3,650 61.75 39.90 14 2.0 5.5% 30 Dubai Islamic Bank PJSC AE 7,885 5.86 0.5% 5.2% 1,073 1,712 6.29 5.01 9 1.2 7.7% Company Name Total M-Cap; W. Avg Yield 572,329 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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