MENA Market Report - 30 October

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1. MENA Morning Report Monday , October 30, 2017 Overview Regional Markets: MENA markets closed on a mixed tone as four out of the eight indexes ended in green, while the remaining four in red during the session. The third quarter earnings and oil prices reaching its highest closing since November 2015 is building up optimism across the region, however investors are still playing it safe by gradually accumulating stocks with strong performance. Further, there is growing consensus that the regional economies are expected to perform better in 2018, which should support the regional markets going forward. Saudi Arabia was the best performing index as it was up by 0.7% for the day, which was supported by broad based buying activity, particularly in the petchem sector stocks. The index is expected to close the month of October as the worst performer in the region. UAE markets closed on a negative note as Dubai and Abu Dhabi were both down by 0.3% and 0.1% respectively for the day. Despite witnessing downward pressure during the past sessions, both the indexes are expected to close October on a positive note. Egypt closed higher by 0.5% for the day, continuing the upward momentum from the previous week. Qatar closed marginally higher by 0.1%, while Kuwait was down by 0.2% for the day. Oman closed up by 0.2%, while Bahrain was flat during the day's session. International Markets: At the time of writing this report, Asian markets have opened on a slightly negative note as Nikkei and Shanghai are down by 0.1% and 0.7% respectively, while Hang Seng is up by 0.3%. Headlines (WW) US 2-year note touches fresh 9-year high after GDP data (GCC) Grave infrastructure challenges as aviation industry set to grow (WW) China's industrial profits up 27% in Sept; surge most since 2011 (SA) Saudi Arabia mulls more fiscal expansion in 2018 to spur economy (WW) Sparkling employment figures mask real picture of UK economy (SA) Saudi Arabia ready to extend oil output cut deal (WW) Bankruptcy in UK at 5-year high (SA) Saudi mega city to boost diversification and create jobs (WW) Bank of England poised to push interest rates back up to 0.5% (AE) Dubai’s first e-commerce free zone to accelerate growth (WW) Japan's factory output seen down in September, rising trend intact (AE) Dubai property deals cross USD 55.58bn in nine months (WW) Bank of Korea seen hiking rates November 30 for first time in over six years (EG) Real-estate is fastest growing sector in Egyptian economy (WW) Mexico inflation hitting consumption in fourth quarter (EG) Egypt signs USD 823bn Aswan solar-power deal with IFC (CMD) Brent crude oil approaches USD 60 as markets tighten (QA) Under mounting pressure Qatar relaxes banking rules for expatriates (CMD) Gold rises on safe-haven appeal after Catalonia declares independence (KW) Kuwaitis spurn jobs offered to them by cooperative societies (FX) Euro posts worst week in 2017 on dovish ECB (OM) Oman’s remittance inflows projected to touch USD 40mn for first time after 1986 (FX) China's yuan weakens on dollar strength, set for 2nd weekly loss (OM) Good tidings await a resurgent Oman economy (FI) Euro falls to worst 2017 mark on ECB bonds (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,639.67 -0.3% -0.3% 2.1% 3.1% ˄ ˄ ˄ Abu Dhabi (ADSMI) 4,462.76 -0.1% -0.1% 1.5% -1.8% ˄ ˅ ˅ Saudi (SASEIDX) 6,956.47 0.7% 0.7% -4.5% -3.5% ˅ ˅ ˄ Kuwait (KWSE) 6,607.75 -0.2% -0.2% -1.1% 15.0% ˅ ˅ ˄ Egypt (EGX30) 14,024.41 0.5% 0.5% 1.0% 13.6% ˄ ˄ ˄ Qatar (DSM) 8,134.46 0.1% 0.1% -2.1% -22.1% ˅ ˅ ˅ Bahrain (BHSEIDX) 1,276.77 -0.0% -0.0% -0.5% 4.6% ˅ ˅ ˅ Oman (MSM30) 4,966.65 0.2% 0.2% -3.3% -14.1% ˅ ˄ ˅ 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) 176 514 396 69 178 140 85,078 Abu Dhabi (ADSMI) 48 132 102 23 51 46 132,803 Saudi (SASEIDX) 146 275 237 764 1,133 1,013 435,357 Kuwait (KWSE) 78 113 92 44 46 38 75,578 Egypt (EGX30) 289 360 283 61 84 64 20,916 Qatar (DSM) 9 7 7 45 66 69 91,341 Bahrain (BHSEIDX) 1 2 2 1 1 1 20,334 Oman (MSM30) 14 17 16 5 9 8 13,818 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 , October 30, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 PB 10.3 11.1 11.4 11.5 11.2 386.2 9.3 300 8 239.3 188.3 4 1.3 Current 489.3 13.5 12 Previous 600 1.6 2.1 1.6 - - 1.1 0.8 0.9 Bahrain Oman - 178.1 0 106.9 87.2 1.3 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% 4.7% 5.1% 4.5% 9% 3.7% 3.5% 4% 15.0% 18% 6.0% 5.4% 6% 4.6% 3.1% 0% -1.8% -9% 2% 13.6% -3.5% -18% 0.0% 0.0% Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain -14.1% -22.1% -27% 0% 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 , October 30, 2017 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) SHUAA CAPITAL PSC 1.10 -2.73% 2,239 2,498 0 DRAKE AND SCULL INTERNATIONAL 2.08 -2.40% 37,112 78,143 0 GULF GENERAL INVESTMENT CO PSC 0.42 -1.67% 3,381 1,429 9 0 DAR AL TAKAFUL PJSC 1.00 -1.60% 638 642 4,224 3,151 ISLAMIC ARAB INSURANCE CO PSC 0.57 -1.58% 8,368 4,792 Close * DoD % Volume ('000) Value (AED ‘000) INVEST BANK PSC 2.20 -10.00% 6 15 0 RAS AL KHAIMAH FOR WHITE CEMENT 1.10 -9.09% 9 10 10 17 GULF PHARMACEUTICAL INDUSTRIES 2.45 -5.71% 9 22 114 72 AL KHAZNA INSURANCE COMPANY 0.30 -3.33% 173 53 10 69 BANK OF SHARJAH PJSC 1.23 -2.44% 336 418 DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) 31.45 9.86% 790 23,722 ABDULLAH SAAD MOHAMMED ABO 11.96 -5.69% 25 310 AL SAGR COOPERATIVE INSURANCE 24.06 9.52% 1,030 23,716 EASTERN PROVINCE CEMENT CO SJSC 23.70 -4.64% 118 2,869 NAMA CHEMICALS COMPANY SJSC 18.50 9.51% 943 16,686 FAWAZ ABDULAZIZ ALHOKAIR CO SJSC 37.30 -4.42% 520 19,855 ARABIAN SHIELD COOPERATIVE 37.35 9.50% 515 18,413 BAAZEEM TRADING COMPANY CJSC 23.88 -3.69% 3 71 SALAMA COOPERATIVE INSURANCE 23.40 5.13% 1,115 25,466 AL JOUF CEMENT CO SJSC 8.12 -3.57% 3,714 30,714 Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) BOUBYAN INTERNATIONAL INDUST 40.70 8.11% 120 5 GULF FRANCHISING HOLDING CO KSCP 70.00 -8.57% 16 0 CREDIT RATING AND COLLECTION CO 27.00 7.41% 1 0 JIYAD HOLDING CO KSCP 55.00 -5.45% 728 41 EKTTITAB HOLDING CO KSCP 34.00 7.06% 197 6 NATIONAL INTERNATIONAL HOLDING 73.50 -4.76% 68 5 METAL AND RECYCLING CO KSCP 102.00 6.86% 0 0 EQUIPMENT HOLDING COMPANY 40.30 -4.22% 76 3 ALRAI MEDIA GROUP CO KSCP 112.00 6.25% 20 2 ENERGY HOUSE HOLDING COMPANY 36.40 -3.85% 3 0 Close * DoD % Volume ('000) Value (EGP ‘000) Top Losers Close * DoD % Volume ('000) Value (EGP ‘000) NATIONAL COMPANY FOR HOUSING 28.81 7.36% 5 142 EL SHAMS PYRAMIDS CO FOR HOTELS 32.06 -9.98% 0 6 INTERNATIONAL COMPANY 12.06 7.13% 23 266 ALEXANDRIA NATIONAL COMPANY 5.08 -9.45% 18 95 ROWAD TOURISM COMPANY SAE 8.60 6.86% 169 1,407 CAIRO NATIONAL CO FOR INVEST 4.73 -9.09% 3 17 SOUTH VALLEY CEMENT CO SAE 5.62 6.76% 10,139 55,175 WADI KOM OMBO FOR LAND RECLAM 9.88 -8.91% 4 41 ORASCOM HOTELS AND DEVELOP 18.97 5.48% 144 2,656 MINAPHARM PHARMACEUTICALS SAE 79.90 -6.26% 2 149 Close * DoD % Volume ('000) Value (QAR ‘000) Top Losers Close * DoD % Volume ('000) Value (QAR ‘000) EZDAN HOLDING GROUP QSC 9.20 4.24% 53 479 GULF INTERNATIONAL SERVICES QSC 18.20 -4.01% 376 6,987 QATAR GAS TRANSPORT CO LTD 14.78 3.18% 208 3,026 GULF WAREHOUSING CO QPSC 42.00 -3.55% 38 1,628 QATAR INSURANCE CO SAQ 44.01 2.25% 9 405 QATAR FIRST BANK LLC 6.37 -3.30% 3,285 21,282 DOHA INSURANCE CO QSC 14.21 2.04% 1 7 SALAM INTERNATIONAL INVESTMENT 7.70 -2.47% 31 238 DOHA BANK QPSC 29.00 1.72% 56 1,616 QATARI INVESTORS GROUP QSC 28.66 -2.23% 13 369 Close * DoD % Volume ('000) Value (AED ‘000) EMIRATES ISLAMIC BANK PJSC 6.75 3.70% 1 0 COMMERCIAL BANK OF DUBAI PSC 3.90 2.05% 96 ARABTEC HOLDING PJSC 2.95 1.02% 2,102 AL SALAM BANK SUDAN PLC 1.93 0.52% DXB ENTERTAINMENTS PJSC 0.75 0.00% Top Gainers Close * DoD % Volume ('000) Value (AED ‘000) AXA GREEN CRESCENT INSURANCE CO 0.69 13.04% 2 1 RAS AL KHAIMAH POULTRY AND FEED 3.06 7.84% 0 FINANCE HOUSE PJSC 1.70 5.29% SUDATEL TELECOM GROUP LTD 0.63 1.59% ABU DHABI COMMERCIAL BANK PJSC 7.15 0.98% Close * MEDITERRANEAN AND GULF COOP Abu Dhabi Dubai Top Gainers Saudi Arabia Top Gainers Kuwait Top Gainers Egypt Top Gainers Qatar Top Gainers Data & Charts Source: Thomson Reuters Top Losers Top Losers Top Losers 3
4. MENA Morning Report Monday , October 30, 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 79,516 99.40 0.9% 8.6% 5,487 145,446 105.40 83.25 16 1.9 6.0% 2 Emirates Telecommunications Group Co AE 42,630 18.00 0.3% -4.3% 1,128 5,529 19.30 17.10 18 3.7 4.4% 3 Saudi Telecom Company SJSC SA 36,051 67.60 3.7% 0.0% 450 8,119 78.90 57.00 0 0.0 0.0% 4 First Abu Dhabi Bank PJSC AE 30,567 10.30 0.0% 3.1% 2,269 6,364 11.55 8.50 12 1.1 4.4% 5 Qatar National Bank QPSC QA 29,925 121.98 0.1% -17.6% 322 10,446 157.27 118.50 9 1.5 2.6% 6 Al Rajhi Banking & Investment Corp SA 28,079 64.80 0.3% 2.9% 2,412 41,677 71.70 55.75 12 2.0 3.5% 7 Saudi Electricity Company SJSC SA 26,820 24.14 2.3% 7.8% 3,578 23,032 26.05 17.60 11 1.4 2.9% 8 National Commercial Bank SJSC SA 25,332 47.50 1.7% 11.5% 897 11,361 58.00 37.00 10 1.5 3.4% 9 DP World Ltd AE 19,588 23.60 0.3% 34.8% 18 116 24.60 15.53 19 2.0 1.6% 10 Emaar Properties PJSC AE 16,495 8.46 -0.1% 18.7% 2,089 4,813 8.95 6.37 11 1.4 1.8% 11 Saudi Arabian Mining Co SJSC SA 15,766 50.60 1.0% 29.7% 180 2,434 54.00 37.00 231 2.3 0.0% 12 National Bank of Kuwait SAKP KW 15,268 780.00 0.0% 26.0% 1,463 3,775 800.00 561.90 15 1.4 3.7% 13 Jabal Omar Development Co SJSC SA 15,241 61.50 -1.0% -17.7% 65 1,074 76.00 59.10 66 5.6 0.0% 14 Industries Qatar QSC QA 15,185 94.50 -0.5% -19.6% 39 988 122.00 85.00 22 1.7 4.2% 15 Almarai Co SJSC SA 14,933 56.00 -0.4% 2.2% 266 3,975 78.64 46.20 27 4.0 1.3% 16 Emirates NBD Bank PJSC AE 12,259 8.10 -0.6% -4.6% 3,240 7,147 9.00 7.60 7 0.8 4.9% 17 Samba Financial Group SJSC SA 11,893 22.30 -0.4% -8.4% 506 3,008 27.10 18.70 9 1.0 4.3% 18 Kuwait Finance House KSCP KW 11,406 598.00 -0.3% 21.8% 588 1,163 650.00 431.82 18 1.8 2.6% 19 Emirates Islamic Bank PJSC AE 10,352 7.00 3.7% 0.0% 1 1 11.95 1.57 109 5.4 0.0% 20 Abu Dhabi Commercial Bank PJSC AE 10,221 7.22 1.0% 4.6% 10 19 7.68 5.66 9 1.2 5.5% 21 Saudi British Bank SJSC SA 10,159 25.40 1.0% 1.6% 240 1,623 28.55 18.50 10 1.2 2.8% 22 Kingdom Holding Co SA 10,060 10.18 0.6% -14.8% 35 94 12.95 9.80 67 1.3 0.0% 23 Riyad Bank SJSC SA 9,583 11.98 1.0% 3.7% 1,121 3,582 12.06 9.75 11 1.0 5.4% 24 Banque Saudi Fransi SJSC SA 9,289 28.90 -0.3% 10.7% 179 1,379 33.40 22.00 10 1.1 3.6% 25 Yanbu National Petrochemicals Co SJSC SA 8,220 54.80 -0.7% 1.5% 241 3,525 61.75 44.00 14 2.0 5.5% 26 Emaar Malls PJSC AE 8,187 2.31 -0.9% -11.8% 1,006 633 2.80 2.25 16 1.8 4.3% 27 Dubai Islamic Bank PJSC AE 8,183 6.08 -0.2% 9.2% 634 1,050 6.29 5.01 8 1.2 7.4% 28 Ooredoo QSC QA 7,267 85.42 -0.2% -16.1% 39 890 116.10 80.00 15 1.2 4.1% 29 Mobile Telecommunications Company KW 7,143 499.00 -3.3% 21.7% 10,950 18,074 570.00 385.00 12 1.6 7.0% 30 Alinma Bank SJSC SA 7,080 17.70 0.8% 17.2% 29,742 1,40,377 18.46 13.30 14 1.3 2.8% Company Name Total M-Cap; W. Avg Yield 552,696 3.4% Data Source: Thomson Reuters Disclaimer: This report is prepared by Al Masah Capital Management Limited (“AMCML”). AMCML is a company incorporated in the DIFC (Dubai International Financial Centre) and regulated by the DFSA (Dubai Financial Services 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 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, and as such should not be relied upon by or distributed to “Retail Clients”. 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