MENA Market Report - 28 May

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1. MENA Morning Report Sunday , May 28, 2017 Overview Regional Markets: MENA markets ended the session on a negative note as sentiments continue to remain subdued ahead of the holy month of Ramad an. Regional markets are expected to trade for shorter hours coupled with a significant drop in trading activity as markets start Ramadan trading hours. For the last trading session of the week, five out of the eight indexes ended in red, while two managed to close in green and one remained unchanged. UAE markets continued to remain under pressure as both Dubai and Abu Dhabi were down by 0.7% and 0.3% respectively for the day. Both the indexes have witnessed similar trends throughout the week, which has extended the losses for the week and the month. Saudi Arabia closed on a negative note as it was down by 0.4% for the day, which was dragged lower by energy and banking sector stocks. Qatar also closed lower by 0.3% for the day, which was in line with regional sentiments. Egypt closed on a strong note as it was up by 1.6% for the day, which helped in recovering the losses to close the week in positive territory. Kuwait closed down, falling by 0.2%, while Oman was up by 0.2% and Bahrain was unchanged for the day. For the week, the regional markets remained under pressure as sentiments continued to remain negative across the region. Dubai and Abu Dhabi were the worst performers as they recorded losses of 1.5% and 1.4% respectively, followed by 1.0% in Saudi Arabia, while Egypt was the best performer with gains of 1.1%, followed by 0.4% in Bahrain. International Markets: US markets closed on a marginally positive note as Nasdaq and S&P were up by 0.1% each, while Dow was marginally lower by 0.0 1%. European markets closed on a negative note as FTSE was up by 0.4%, while DAX and CAC were down by 0.2% and 0.01% respectively. Asian markets closed on a mixed note as Nikkei was down by 0.6%, while Hang Seng and Shanghai were up by 0.03% and 0.07% each. Headlines (WW) US economy grows at tepid 1.2%; business spending softens (GCC) Gulf retail market could be 25% bigger by 2021 (WW) US jobless claims edge up; goods trade deficit widens (GCC) VAT declarations set to be submitted on quarterly basis (WW) US inflation path since 2012 is worrisome (SA) Banking on Saudi Arabia's 'very realistic' privatization plan (WW) US consumer sentiment softens in late May (SA) Saudi Aramco to spend $18bln on growth in the Americas (WW) UK consumers downbeat on finances as inflation bites (AE) UAE Gains Edge In $165 Billion Caspian Oil & Gas Market (WW) British face squeeze but firms remain upbeat (AE) Moody’s changes Abu Dhabi’s outlook to stable from negative (WW) China April industrial profits up 14% but slowing pace stokes economy worries (AE) UAE indexes record lackluster trade ahead of Ramadan (WW) Japan consumer prices rise in April, driven by energy costs (AE) Dubai tourism sees growing diversification of source markets (CMD) Oil prices rebound; dollar firms as sterling drops (AE) Ethical benefits of new taxes in UAE surpass fiscal gains (CMD) Gold dips as dollar steadies after oil price slump (EG) Food inflation, debased currency cause for concern for Egyptians this Ramadan (FX) Dollar steady as commodity currencies slip on oil price drop (QA) Moody's downgrades Qatar's credit rating by one notch (FX) Sterling slips as first-quarter growth numbers trail Europe (BH) Bahrain gets a piece of good news on economy (FI) US bond yields slip before 7-year note sale (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,327.13 -0.7% -1.5% -2.6% -5.8% ˅ ˅ ˅ Abu Dhabi (ADSMI) 4,516.84 -0.3% -1.4% -0.1% -0.6% ˅ ˄ ˄ Saudi (SASEIDX) 6,871.72 -0.4% -1.0% -2.0% -4.7% ˄ ˅ ˄ Kuwait (KWSE) 6,687.53 -0.2% -0.6% -2.3% 16.3% ˅ ˄ ˄ Egypt (EGX30) 13,094.42 1.6% 1.1% 5.3% 6.1% ˄ ˅ ˄ Qatar (DSM) 10,060.52 -0.3% -0.4% -0.0% -3.6% ˄ ˅ ˅ Bahrain (BHSEIDX) 1,314.22 0.0% 0.4% -1.6% 7.7% ˅ ˄ ˄ Oman (MSM30) 5,403.14 0.2% -0.2% -2.0% -6.6% ˅ ˅ ˅ 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) 215 271 475 59 101 172 78,992 Abu Dhabi (ADSMI) 101 80 127 39 49 60 133,887 Saudi (SASEIDX) 143 177 223 691 846 1,045 434,066 Kuwait (KWSE) 103 293 351 34 81 101 75,578 Egypt (EGX30) 343 273 342 57 82 91 19,833 Qatar (DSM) 14 11 10 105 90 81 129,044 Bahrain (BHSEIDX) 2 5 5 1 3 3 20,302 Oman (MSM30) 14 17 17 6 11 10 16,146 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 Sunday , May 28, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 13.8 386.2 8.7 300 8 239.3 188.3 4 1.1 Current 489.3 11.3 8.9 1.5 2.0 1.7 1.4 - - 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% 6% Previous 600 13.5 11.8 11.2 12 PB 5.2% 4.3% 7.7% 9% 4.1% 4% 16.3% 18% 5.8% 5.4% 6.1% 3.5% 3.0% 0% -0.6% 2% -9% 0.0% 0.0% Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain -6.6% -18% 0% Dubai -3.6% -4.7% -5.8% 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 Sunday , May 28, 2017 Top Performers by Country (* indicates native currency; Latest data) Close DoD % Volume Value GULF GENERAL INVESTMENT CO PSC 0.36 -5.07% 4,756 1,738 288 DUBAI NATIONAL INSURANCE 2.60 -4.06% 1,110 2,947 15,980 17,019 DEYAAR DEVELOPMENT PJSC 0.47 -3.50% 8,641 4,126 0.21% 6,764 6,568 ARABTEC HOLDING PJSC 0.73 -3.33% 27,395 20,204 0.00% 0 0 AL SALAM BANK SUDAN PLC 1.80 -3.23% 191 349 Close * DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) NATIONAL BANK OF UMM AL 3.09 14.44% 5 14 NATIONAL BANK OF FUJAIRAH PJSC 2.99 -9.94% 500 1,578 GULF CEMENT CO PSC 0.96 4.35% 244 229 COMMERCIAL BANK INTERNATIONAL 1.52 -9.52% 40 64 UNION NATIONAL BANK PJSC 4.99 1.63% 980 4,849 MANAZEL REAL ESTATE PJSC 0.52 -7.14% 14,185 7,660 AL KHALEEJ INVESTMENT CO PJSC 1.27 1.60% 11 13 ABU DHABI AVIATION 2.50 -7.06% 201 522 INSURANCE HOUSE PSC 0.80 0.00% 96 77 RAS AL KHAIMAH CEMENT CO PSC 0.80 -5.88% 1,486 1,226 Close * DoD % Volume ('000) Value (SAR ‘000) Top Losers Close * DoD % Volume ('000) Value (SAR ‘000) SAUDI CEMENT CO SJSC 53.75 2.38% 150 7,964 SAUDI RE FOR COOPERATIVE REINSUR 6.95 -6.08% 3,565 25,579 BATIC INVESTMENTS AND LOGISTICS 54.00 2.37% 238 12,705 SALAMA COOPERATIVE INSURANCE 15.70 -4.56% 522 8,395 MOUWASAT MEDICAL SERVICES CO 145.00 2.11% 30 4,371 NAMA CHEMICALS CO SJSC 17.25 -4.17% 291 5,127 NATIONAL MEDICAL CARE COMPANY 47.00 1.95% 494 23,005 RAYDAN COMPANY CJSC 22.30 -3.88% 53 1,195 DALLAH HEALTHCARE CO 101.00 1.76% 57 5,722 AL SAGR COOPERATIVE INSURANCE 27.90 -3.46% 643 18,269 Top Gainers Close (fils) * DoD % Volume ('000) Value (KWD 000) Close (fils) * DoD % Volume ('000) Value (KWD 000) AUTOMATED SYSTEMS CO KPSC 242.00 19.80% 39 9 AJWAN GULF REAL ESTATE CO KSCP 76.80 -19.58% 18 2 NATIONAL CONSUMER HOLDING 125.00 16.82% 0 0 GULF FRANCHISING HOLDING CO KSCP 45.60 -18.57% 1 0 KUWAIT FOUNDRY COMPANY KPSC 290.00 11.97% 0 0 KUWAIT REAL ESTATE HOLDING CO 33.00 -12.70% 122 4 SHUAIBA INDUSTRIAL COMPANY KPSC 310.00 10.71% 2 1 INTERNATIONAL RESORTS COMPANY 34.50 -8.97% 226 8 UNITED REAL ESTATE COMPANY SAKP 89.00 8.54% 0 0 METAL AND RECYCLING CO KSCP 80.00 -8.05% 3 0 Top Gainers Close DoD % Volume Value Close DoD % Volume Value 20.33 8.89% 64 1,255 SHOROUK FOR MODERN PRINTING 11.79 -8.32% 15 183 ROWAD TOURISM CO SAE 5.53 7.38% 5 25 MISR NATIONAL STEEL SAE 16.10 -6.83% 1 17 OBOUR LAND FOR FOOD INDUSTRIES 18.04 6.12% 2 30 UNIVERSAL CO FOR PACKAGING 10.11 -3.99% 3 33 NOZHA INTERNATIONAL HOSPITAL 84.88 6.10% 0 27 EGYPTIAN TOURAH PORTLAND 14.34 -3.69% 10 140 CANAL SHIPPING AGENCIES CO SAE 7.97 4.59% 1,772 13,816 MARSA MARSA ALAM FOR DEV 0.95 -3.06% 322 311 Close DoD % Volume Value Close * DoD % Volume ('000) Value (QAR ‘000) QATAR FIRST BANK LLC 8.62 3.11% 5,356 45,470 EZDAN HOLDING GROUP QSC 13.95 -10.00% 1,818 26,766 COMMERCIAL BANK QSC 31.10 2.64% 218 6,689 MEDICARE GROUP QSC 89.10 -4.19% 57 5,174 QATAR NATIONAL BANK SAQ 146.00 2.46% 384 55,335 DOHA INSURANCE CO QSC 16.00 -1.84% 2 34 QATAR ELECTRICITY AND WATER CO 215.60 2.13% 53 11,404 QATAR ISLAMIC INSURANCE CO QSC 62.20 -1.58% 6 374 DOHA BANK QSC 31.10 1.97% 162 4,999 AL KHALEEJ TAKAFUL GROUP QSC 19.25 -1.28% 1 22 Close DoD % Volume Value AJMAN BANK PJSC 1.19 1.71% 0 864 NATIONAL CENTRAL COOLING CO PJSC 1.90 1.60% 0 DUBAI FINANCIAL MARKET PJSC 1.07 0.94% AIR ARABIA PJSC 0.97 EMIRATES REFRESHMENTS PSC 4.05 Dubai Top Gainers Abu Dhabi Top Gainers Kuwait Saudi Arabia Top Gainers Egypt DELTA SUGAR CO SAE Qatar Top Gainers Data & Charts Source: Thomson Reuters Top Losers Top Losers Top Losers Top Losers Top Losers 3
4. MENA Morning Report Sunday , May 28, 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 78,404 98.00 -0.5% 7.1% 2,769 72,373 102.50 76.00 15 1.8 4.1% 2 Emirates Telecommunications Group AE 41,324 17.45 -0.3% -7.2% 1,433 6,809 20.20 17.30 17 3.4 4.6% 3 Qatar National Bank SAQ QA 37,035 146.00 2.5% 0.0% 384 15,381 157.27 121.36 0 0.0 0.0% 4 Saudi Telecom Company SJSC SA 36,669 68.75 -0.4% -5.2% 149 2,740 74.00 51.00 16 2.3 5.8% 5 First Abu Dhabi Bank PJSC AE 32,790 11.05 0.0% 10.6% 1,734 5,218 11.55 7.60 11 1.3 4.1% 6 Al Rajhi Banking & Investment Corp SA 26,976 62.25 -0.4% -1.2% 3,418 56,737 67.50 48.60 12 2.0 3.6% 7 Saudi Electricity Company SJSC SA 25,668 23.10 -0.6% 3.1% 1,049 6,465 25.80 14.30 11 1.4 3.0% 8 National Commercial Bank SJSC SA 21,814 40.90 -1.0% -4.0% 669 7,292 45.00 32.00 9 1.3 3.9% 9 DP World Ltd AE 18,725 22.56 0.2% 28.8% 88 541 22.90 15.53 19 2.1 1.7% 10 Industries Qatar QSC QA 17,463 105.10 0.6% -10.6% 295 8,508 122.00 94.50 20 2.0 3.8% 11 Jabal Omar Development Co SJSC SA 16,730 67.50 0.0% -9.7% 140 2,514 76.00 46.00 72 6.1 0.0% 12 Almarai Co SJSC SA 16,588 77.75 -0.3% 13.5% 108 2,249 78.00 51.50 31 4.9 0.0% 13 Emaar Properties PJSC AE 14,115 7.24 -0.4% 1.5% 5,140 10,133 7.79 6.07 10 1.2 2.1% 14 National Bank of Kuwait SAKP KW 13,365 685.00 -0.3% 10.7% 401 906 723.81 523.81 14 1.3 4.2% 15 Saudi Arabian Mining Co SJSC SA 12,963 41.60 0.0% 6.7% 351 3,896 44.00 27.80 689 1.9 0.0% 16 Emirates NBD Bank PJSC AE 12,380 8.18 0.0% -3.7% 869 1,936 9.00 7.60 7 0.8 4.9% 17 Samba Financial Group SJSC SA 11,574 21.70 -0.2% -10.9% 29 168 25.20 15.90 9 1.0 4.4% 18 Emirates Islamic Bank PJSC AE 11,090 7.50 0.0% 0.0% 6 11 11.95 1.57 137 5.9 0.0% 19 Abu Dhabi Commercial Bank PJSC AE 10,333 7.30 -0.4% 0.0% 2,356 4,684 7.68 5.66 9 1.3 5.5% 20 Ezdan Holding Group QSC QA 10,162 13.95 -10.0% -7.7% 1,818 6,964 20.24 13.95 17 1.2 3.6% 21 Kingdom Holding Co SA 10,031 10.15 -1.0% -15.1% 59 160 12.95 9.90 70 1.3 4.9% 22 Kuwait Finance House KSCP KW 9,353 492.00 0.0% 0.2% 2,044 3,317 572.73 400.00 13 1.6 0.0% 23 Ooredoo QSC QA 9,237 105.00 -0.5% 3.1% 282 8,144 116.10 81.50 18 1.5 3.3% 24 Masraf Al Rayan QSC QA 9,156 44.45 1.9% 18.2% 924 11,284 44.45 32.50 16 2.8 4.5% 25 Saudi British Bank SJSC SA 9,120 22.80 0.0% 0.0% 476 2,894 25.90 16.40 9 1.1 0.0% 26 Emaar Malls Group PJSC AE 9,108 2.57 -0.4% -1.9% 3,188 2,231 3.00 2.47 18 2.0 3.9% 27 Banque Saudi Fransi SJSC SA 8,548 26.60 -0.7% 1.9% 283 2,010 27.50 18.00 9 1.0 3.9% 28 Yanbu National Petrochemicals Co SJSC SA 8,325 55.50 0.0% 2.8% 134 1,982 61.75 37.00 12 2.0 5.4% 29 Riyad Bank SJSC SA 8,240 10.30 0.0% -10.8% 611 1,678 11.80 8.55 10 0.8 6.3% 30 Dubai Islamic Bank PJSC AE 7,805 5.80 -0.3% 4.1% 2,635 4,161 6.29 4.90 9 1.2 7.8% Company Name Total M-Cap; W. Avg Yield 555,092 3.3% 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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