MENA Market Report - 25 July

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1. MENA Morning Report Tuesday , July 25, 2017 Overview Regional Markets: MENA region ended the session on a positive note after remaining subdued for the two previous sessions. Second quarter earnings have been the main catalyst for the markets to end on a positive note as it provides optimism about the economic growth prospects going forward despite the geopolitical uncertainties. Further, oil prices gradually rising higher might have also supported the regional markets during the day. Qatar was the best performing index as it was up by 0.8% for the day, which was mostly supported by buying interest in banks. The index has rebounded strongly as it surged by 6.1% during the month of July to come closer to the pre-crisis levels. UAE markets ended on a positive note as both Dubai and Abu Dhabi were up by 0.1% each for the day. Saudi Arabia closed lower during the session despite the positive sentiments seen across the region. The index was mostly dragged lower by disappointing earnings from Mobily, which was worse than market expectation as the quarterly losses widens during the first quarter. Egypt closed up by 0.3% for the day, in line with the sentiments seen in the regional markets. Kuwait closed higher by 0.3% for the day, extending the weekly gains. Bahrain closed higher by 0.3%, while Oman closed marginally lower by 0.1% for the day. International Markets: US markets closed on a mixed note as DJIA and S&P were down by 0.3% and 0.1% respectively, while Nasdaq was up by 0.4%. European markets closed in red as FTSE and DAX were down by 1.0% and 0.3% respectively, while CAC was up by 0.2%. At the time of writing this report, Asian markets have opened on a mixed note as Nikkei and Shanghai are down by 0.1% each, while Hang Seng is down by 0.03%. Headlines (WW) Federal Reserve now faces prospect of global monetary policy tightening (ME) Mideast deal activity picks up in Q2 2017 (WW) No-show inflation poses conundrum for US Fed (ME) IMF sees Middle East economic growth dip in 2017 (WW) IMF maintains global growth forecasts; China, Eurozone revised higher (GCC) GCC's USD 6bn leather industry has great growth potential (WW) China's debt spectre could haunt Fed's policy meetings (SA) Mideast growth to dive as Saudi economy stagnates (WW) China's economy could eclipse US within 10 years (SA) Saudi economic pain seen testing resolve of prince's reform push (WW) IMF cuts UK growth forecast, Treasury calls for smooth Brexit (AE) Abu Dhabi Fund for Development finances USD 1.08bln projects in Egypt (WW) UK households face sharpest squeeze in three years (AE) Large investment projects to boost Dubai's growth (WW) European banks struggle to solve toxic shipping debt problem (AE) Oil revenues make up less than 1% of Dubai’s GDP now (WW) Abe's weakness puts Japan reform momentum at risk (AE) Oversupply fears continue to depress Abu Dhabi apartment prices (CMD) Oil market rebalancing to speed up in second half (EG) Ongoing fiscal consolidation to help curb inflation (CMD) Gold hits one-month high, eyes on Fed and dollar (KW) KFH eyes expansion in China and Egypt (FX) Sterling inches up after worst week against euro in 9 months (KW) Kuwait’s real estate gridlock highlights future fears (FX) Dollar wallows at 13-month lows as short bets grow (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,599.38 Abu Dhabi (ADSMI) 4,540.24 0.1% 0.7% 0.1% -0.3% 6.1% 1.9% ˄ ˄ ˅ 2.6% -0.1% ˄ ˅ ˄ Saudi (SASEIDX) 7,252.51 -0.2% -0.1% -2.3% 0.6% ˄ ˄ ˄ Kuwait (KWSE) 6,822.18 Egypt (EGX30) 13,752.98 0.3% 0.6% 0.9% 18.7% ˄ ˅ ˄ 0.3% 0.3% 2.7% 11.4% ˄ ˄ ˄ Qatar (DSM) Bahrain (BHSEIDX) 9,579.16 0.8% 0.4% 6.1% -8.2% ˄ ˅ ˅ 1,327.49 0.3% 0.5% 1.3% 8.8% ˄ ˅ ˄ Oman (MSM30) 4,995.17 -0.1% -0.1% -2.4% -13.6% ˅ ˅ ˅ 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) 177 296 330 59 97 126 83,495 Abu Dhabi (ADSMI) 58 107 110 42 48 54 135,016 Saudi (SASEIDX) 111 173 177 696 812 869 459,192 Kuwait (KWSE) 139 87 265 83 48 87 75,578 Egypt (EGX30) 193 305 288 33 74 81 20,785 Qatar (DSM) 10 11 11 64 88 93 113,117 Bahrain (BHSEIDX) 5 3 4 1 2 2 20,498 Oman (MSM30) 11 14 17 8 6 9 13,741 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 Tuesday , July 25, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 PB 14.1 12.1 11.2 12 11.4 386.2 8.5 300 8 239.3 188.3 4 1.2 Current 489.3 12.6 9.6 1.5 2.1 1.7 1.4 - - 0.9 0.9 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 DividendYield 27% 8% 18.7% 6.2% 6% Previous 600 4.8% 18% 11.4% 5.4% 9% 4.4% 4.2% 4% 3.5% 3.0% 1.9% 8.8% 0.6% 0% -0.1% -9% 2% -8.2% -13.6% -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 Tuesday , July 25, 2017 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) AJMAN BANK PJSC 1.25 -3.20% 3,032 3,853 25,067 DUBAI FINANCIAL MARKET PJSC 1.21 -2.48% 4,289 5,256 1,206 SHUAA CAPITAL PSC 1.39 -2.16% 1,221 1,715 1,168 1,053 DAR AL TAKAFUL PJSC 1.15 -1.74% 1,492 1,731 2,844 22,922 AMLAK FINANCE PJSC 1.16 -1.72% 18,569 21,729 DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) 0.94 12.77% 25 22 SHARJAH CEMENT AND INDUSTRIAL 1.09 -9.17% 15 17 AL KHAZNA INSURANCE COMPANY 0.37 2.70% 111 40 SHARJAH ISLAMIC BANK PJSC 1.42 -4.23% 73 107 MANAZEL REAL ESTATE PJSC 0.53 1.89% 1,098 577 ABU DHABI AVIATION 2.70 -3.70% 43 118 AGTHIA GROUP PJSC 5.18 1.74% 215 1,104 BANK OF SHARJAH PJSC 1.23 -2.44% 207 258 DANA GAS PJSC 0.66 1.52% 8,275 5,421 INTERNATIONAL FISH FARMING HOLD 1.71 -2.34% 1,626 2,813 Close * DoD % Volume ('000) Value (SAR ‘000) Top Losers Close * DoD % Volume ('000) Value (SAR ‘000) TIHAMA ADVERTISING AND PUBLIC 36.65 5.87% 1,626 57,942 ETIHAD ETISALAT CO SJSC 20.20 -7.23% 4,810 100,953 ABDULLAH SAAD MOHAMMED ABO 11.40 5.09% 34 379 DEVELOPMENT WORKS FOOD CO 68.00 -5.15% 2 135 UNITED ELECTRONICS COMPANY JSC 40.70 5.04% 1,191 47,306 MALATH COOPERATIVE INSURANCE 26.00 -3.08% 1,962 51,822 ARAB SEA INFORMATION SYSTEMS CO 12.30 4.07% 26 317 RED SEA INTERNATIONAL CO 19.70 -2.54% 193 3,844 ALLIED COOPERATIVE INSURANCE 14.60 3.42% 2,035 29,218 METLIFE AIG ANB COOPERATIVE 21.00 -2.10% 49 1,036 Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) KUWAIT PROJECTS COMPANY HOLD 350.00 8.57% 2,109 709 SANAM REAL ESTATE COMPANY KSCP 46.00 -20.00% 316 16 ARZAN FINANCIAL GROUP FOR FINAN 35.00 7.14% 381 13 AJWAN GULF REAL ESTATE CO KSCP 62.40 -11.86% 4,193 279 GULF FRANCHISING HOLDING CO KSCP 70.00 7.14% 71 5 NAFAIS HOLDING COMPANY KSCP 196.79 -11.58% 9 2 AL ARGAN INTERNATIONAL REAL 160.00 6.25% 4 1 AL AMAN INVESTMENT COMPANY 47.60 -10.71% 65 3 ENERGY HOUSE HOLDING COMPANY 37.50 5.87% 12 0 METAL AND RECYCLING CO KSCP 120.00 -10.00% 5 1 Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) EGYPT GAS CO SAE 184.36 19.13% 47 7,951 MOHANDES INSURANCE CO SAE 9.55 -5.86% 11 111 VODAFONE EGYPT TELECOMM 68.50 14.60% 0 13 MARIDIVE AND OIL SERVICES SAE 0.22 -4.55% 92 21 MIDDLE AND WEST DELTA FLOUR 91.52 10.00% 1 65 ORANGE EGYPT FOR TELECOMM 131.03 -4.50% 31 4,096 SUEZ BAGS CO SAE 28.07 9.98% 7 177 INTERNATIONAL CO FOR AGRI 1.70 -4.12% 67 117 SOUTH CAIRO AND GIZA MILLS 46.97 9.43% 5 212 MISR CHEMICAL INDUSTRIES CO SAE 11.61 -3.53% 6 70 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (AED ‘000) COMMERCIAL BANK OF DUBAI PSC 4.35 3.22% 0 281 DRAKE AND SCULL INTERNATIONAL 0.41 1.98% 0 DXB ENTERTAINMENTS PJSC 0.76 1.32% 1,605 DUBAI ISLAMIC INSURANCE 0.91 0.99% EMAAR PROPERTIES PJSC 8.10 0.99% Top Gainers Close * RAS AL KHAIMAH FOR WHITE CEMENT Abu Dhabi Dubai Top Gainers Saudi Arabia Top Gainers Kuwait Top Gainers Egypt Top Gainers Top Gainers Qatar VODAFONE QATAR QSC Top Losers Top Losers Top Losers Top Losers 8.60 4.19% 4,802 40,465 QATAR NATIONAL CEMENT CO QSC 76.50 -1.57% 14 1,049 AL MEERA CONSUMER GOODS CO 140.00 4.00% 114 15,673 ALIJARAH HOLDING CO QPSC 14.28 -1.19% 118 1,695 AL KHALEEJ TAKAFUL GROUP QSC 17.03 2.76% 57 960 GULF INTERNATIONAL SERVICES QSC 23.24 -0.17% 170 3,950 QATAR ISLAMIC BANK QPSC 96.50 2.59% 44 4,148 DLALA BROKERAGE AND INVESTMENT 19.20 -0.16% 23 436 QATAR OMAN INVESTMENT CO QSC 8.79 2.28% 27 237 MEDICARE GROUP QSC 83.50 -0.12% 18 1,498 Data & Charts Source: Thomson Reuters 3
4. MENA Morning Report Tuesday , July 25, 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 80,156 100.20 0.4% 9.5% 2,474 66,102 105.40 76.00 15 1.8 6.0% 2 Emirates Telecommunications Group Co AE 43,694 18.45 0.5% -1.9% 933 4,686 20.20 17.10 18 3.6 4.3% 3 Saudi Telecom Company SJSC SA 39,358 73.80 -1.1% 0.0% 179 3,532 78.90 51.00 0 0.0 0.0% 4 Qatar National Bank SAQ QA 35,647 140.50 0.2% -5.1% 229 8,837 157.27 121.70 10 1.8 2.3% 5 First Abu Dhabi Bank PJSC AE 31,455 10.60 0.0% 6.1% 4,537 13,096 11.55 8.30 10 1.2 4.2% 6 Al Rajhi Banking & Investment Corp SA 27,775 64.10 0.6% 1.7% 3,658 62,517 71.70 48.60 13 2.0 3.5% 7 Saudi Electricity Company SJSC SA 26,887 24.20 0.4% 8.0% 638 4,119 26.05 14.30 12 1.4 2.9% 8 National Commercial Bank SJSC SA 26,559 49.80 -1.2% 16.9% 270 3,592 58.00 32.00 11 1.6 3.2% 9 DP World Ltd AE 19,082 22.99 1.3% 31.3% 192 1,199 23.85 15.53 20 2.2 1.7% 10 Almarai Co SJSC SA 17,599 82.50 -1.3% 20.4% 96 2,122 98.30 51.50 33 5.2 1.1% 11 Jabal Omar Development Co SJSC SA 17,075 68.90 -0.1% -7.8% 103 1,891 76.00 46.00 74 6.2 0.0% 12 Industries Qatar QSC QA 16,668 100.30 -0.1% -14.6% 132 3,647 122.00 91.10 19 1.9 0.0% 13 Emaar Properties PJSC AE 15,948 8.18 1.0% 14.7% 2,844 6,334 8.20 6.37 11 1.4 1.8% 14 Saudi Arabian Mining Co SJSC SA 15,112 48.50 -1.5% 24.4% 618 7,997 53.80 27.80 803 2.2 0.0% 15 National Bank of Kuwait SAKP KW 13,749 699.00 0.7% 12.9% 4,333 10,066 723.81 533.33 14 1.3 4.1% 16 Samba Financial Group SJSC SA 13,706 25.70 -0.2% 5.5% 141 966 27.10 15.90 10 1.2 3.7% 17 Emirates NBD Bank PJSC AE 12,229 8.08 -0.1% -4.8% 317 698 9.00 7.60 7 0.8 5.0% 18 Saudi British Bank SJSC SA 10,759 26.90 -0.6% 7.6% 508 3,642 28.40 16.40 11 1.3 2.6% 19 Kuwait Finance House KSCP KW 10,368 541.00 2.5% 0.0% 6,909 12,424 572.73 400.00 16 1.7 2.9% 20 Abu Dhabi Commercial Bank PJSC AE 10,121 7.15 -0.1% 3.6% 3,946 7,683 7.68 5.66 9 1.2 5.6% 21 Kingdom Holding Co SA 10,119 10.24 -0.4% -14.3% 28 78 12.95 9.80 71 1.3 4.9% 22 Banque Saudi Fransi SJSC SA 10,057 31.30 3.3% 19.9% 228 1,904 33.20 18.00 11 1.2 0.0% 23 Ezdan Holding Group QSC QA 9,537 13.09 2.3% -13.4% 385 1,384 20.24 10.72 16 1.1 3.8% 24 Emirates Islamic Bank PJSC AE 8,873 6.00 0.0% 0.0% 1 1 11.95 1.57 94 4.6 0.0% 25 Emaar Malls Group PJSC AE 8,860 2.50 0.8% 0.0% 710 484 3.00 2.38 17 2.0 0.0% 26 Ooredoo QSC QA 8,720 99.10 2.2% 0.0% 87 2,372 116.10 88.20 17 1.4 0.0% 27 Riyad Bank SJSC SA 8,656 10.82 0.4% -6.3% 732 2,111 11.80 8.55 11 0.9 6.0% 28 Masraf Al Rayan QSC QA 8,653 42.00 1.0% 11.7% 257 2,960 45.40 33.05 15 2.6 4.8% 29 Yanbu National Petrochemicals Co SJSC SA 8,280 55.20 0.4% 2.2% 151 2,222 61.75 39.90 14 2.0 5.4% 30 Dubai Islamic Bank PJSC AE 7,900 5.87 0.2% 5.4% 2,262 3,616 6.29 5.01 9 1.2 7.7% Company Name Total M-Cap; W. Avg Yield 573,600 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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