MENA Market Report - 9 August

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1. MENA Morning Report Wednesday , August 09, 2017 Overview Regional Markets: MENA markets closed the session lower as five out of the eight indexes ended in red, while two in green and one remained unchanged for the day. The performance of regional markets during the week has been mostly mixed on the back of lack of domestic development and subdued quarterly earnings. Further the geopolitical scene is also having an effect on investor sentiments as they are refraining from making any new bets. 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. Both indexes have remained under pressure during the week after reporting strong gains during the month of July. Saudi Arabia closed higher by 0.5% for the day, extending the weekly gains to 0.8%. The market breadth in Saudi Arabia was skewed towards gainers with 109 compared to 59 losers for the day. Qatar closed on a positive note as it was up by 0.3% for the day, while the performance during the week remains negative. Egypt closed marginally lower by 0.2% for the day after rising sharply in the previous two sessions. Kuwait closed marginally lower by 0.1% for the day, remaining range bound during the week. Oman was down by 0.7%, while Bahrain was flat for the day. Oman has remained under pressure throughout 2017 as it is undergoing a challenging period with economic growth slowing down due to depressed oil prices. International Markets: US markets closed in red as DJIA, Nasdaq and S&P were all down by 0.2% each for the day. European markets closed on a positive note as FTSE, DAX and CAC were all up by 0.1%, 0.3% and 0.2% respectively. At the time of writing this report, Asian markets have opened on a negative note as Nikkei, Hang Seng and Shanghai are down by 1.3%, 0.7% and 0.4% respectively. Headlines (WW US consumer credit rose at slower pace in June (SA) Saudi sees USD 5.8bn invested in 816 factories under construction (WW) US goes solo, Europe grows stronger with new alliances (SA) Not much project spending expected this year in Saudi Arabia (WW) China July exports, imports weaker than expected (SA) Saudi Arabia to allow full foreign ownership of engineering firms (WW) China July car sales rise on fading tax impact, strong economy (SA) New Saudi firm to develop 24 parks to generate USD 34.7bn revenue (WW) UK economy takes a hit as expenditure slumps further (SA) Saudi business conditions improve greatly in quarter (WW) Growth prospects downgraded for UK construction industry (AE) Real estate transactions in Dubai exceeded USD 106bn in 18 months (WW) Drop in German trade activity feeds into global stimulus debate (AE) Dubai hotels outshine Mena peers in occupancy, revenue (WW) BOJ should dial back stimulus even if inflation misses target (EG) Egypt economy could expand at 6pc per year (WW) Asia markets rally as US jobs data boosts optimism (EG) Egyptian banks benefit from strong net interest margin expansion (CMD) Oil prices fall further as Libyan field resumes production (KW) Kuwait gives nod to GCC value added tax (CMD) Gold rises as dollar eases, focus on US inflation data (BH) New equity market to foster growth among Bahraini SMEs (FX) Sterling treads water after drop, outlook bearish (BH) Bahrain mandates five banks for international bond issue (FX) Dollar slips back toward lows on Fed rate hike doubts (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,647.87 -0.3% -0.7% 0.4% 3.3% ˄ ˄ ˅ Abu Dhabi (ADSMI) 4,588.06 -0.1% -0.2% 0.5% 0.9% ˄ ˄ ˄ Saudi (SASEIDX) 7,145.54 0.5% 0.8% 0.7% -0.9% ˅ ˄ ˄ Kuwait (KWSE) 6,829.92 -0.1% 0.1% -0.3% 18.8% ˄ ˅ ˄ Egypt (EGX30) 13,637.69 -0.2% 1.7% 1.6% 10.5% ˅ ˄ ˄ Qatar (DSM) 9,373.49 0.3% -0.3% -0.3% -10.2% ˄ ˅ ˅ Bahrain (BHSEIDX) 1,323.74 -0.0% 0.1% -0.3% 8.5% ˄ ˅ ˄ Oman (MSM30) 5,005.73 -0.7% -1.0% -0.4% -13.4% ˅ ˅ ˅ 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) 160 280 296 60 93 108 84,731 Abu Dhabi (ADSMI) 195 110 104 64 46 50 135,799 Saudi (SASEIDX) 151 157 168 897 783 835 450,304 Kuwait (KWSE) 110 76 218 65 53 78 75,578 Egypt (EGX30) 300 304 285 42 61 80 19,567 Qatar (DSM) 0 11 11 0 89 93 110,348 Bahrain (BHSEIDX) 3 3 4 1 2 2 20,458 Oman (MSM30) 9 13 16 5 6 9 13,947 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 Wednesday , August 09, 2017 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 12 PB 14.0 11.9 11.5 Previous 489.3 12.5 11.4 9.7 386.2 8.6 300 8 239.3 188.3 4 1.2 Current 600 1.6 2.1 1.6 1.3 0.9 0.9 Qatar Bahrain Oman - - - 178.1 0 106.9 87.2 1.4 0 Dubai Abu Dhabi Saudi Kuwait Egypt Average Dubai Abu Dhabi Saudi Kuwait 27% 6.2% 9% 4.5% 4.4% 4% Bahrain Oman Average 18.8% 18% 5.3% 4.7% Qatar Year to Date Perfomance DividendYield 8% 6% Egypt 3.5% 3.1% 0.9% 0% -0.9% -9% 2% -10.2% -18% 0.0% 8.5% 10.5% 3.3% -13.4% 0.0% 0% -27% 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 Wednesday , August 09, 2017 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) DAMAC PROPERTIES DUBAI CO PSC 4.05 -2.22% 6,178 25,306 AMANAT HOLDINGS PJSC 1.12 -1.79% 1,790 2,023 DRAKE AND SCULL INTERNATIONAL 0.39 -1.78% 11,019 4,370 225 AMLAK FINANCE PJSC 1.14 -1.75% 11,634 13,381 881 ISLAMIC ARAB INSURANCE CO PSC 0.46 -1.52% 3,621 1,678 Close * DoD % Volume ('000) Value (AED ‘000) NATIONAL MARINE DREDGING PSC 4.60 -10.00% 1 4 31 SHARJAH CEMENT AND INDUSTRIAL 1.08 -2.78% 10 11 140 331 INTERNATIONAL HOLDING COMPANY 1.54 -2.60% 297 464 20 112 SUDATEL TELECOM GROUP LTD 0.54 -1.85% 330 180 1.12% 3,449 3,053 RAS AL KHAIMAH CEMENT CO PSC 0.77 -1.30% 136 106 Close * DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) SAUDI PRINTING AND PACKAGING CO 18.56 9.81% 2,862 50,739 AL BAHA INVESTMENT AND DEVELOP 28.35 -5.82% 5,287 154,524 TIHAMA ADVERTISING AND PUBLIC 49.00 9.59% 2,369 111,021 BAAZEEM TRADING COMPANY CJSC 26.00 -3.85% 9 245 SAUDI PAPER MANUFACTURING CO 7.42 7.55% 4,455 31,899 AL ANDALUS PROPERTY CO SJSC 22.40 -3.57% 955 21,782 AL KHALEEJ TRAINING AND EDUCA 17.60 6.25% 1,075 18,369 ZAMIL INDUSTRIAL INVESTMENT CO 28.15 -3.55% 256 7,344 AL JOUF AGRICULTURAL DEVELOP 28.60 4.55% 1,001 28,017 JAZAN DEVELOPMENT COMPANY SJSC 16.06 -2.62% 490 7,980 Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) UNICAP INVESTMENT AND FINANCE 44.00 6.82% 120 5 AJWAN GULF REAL ESTATE CO KSCP 68.00 -8.82% 28 2 AUTOMATED SYSTEMS CO KPSC 170.00 5.88% 1 0 NATIONAL INTERNATIONAL HOLDING 69.00 -8.70% 424 31 ARABI GROUP HOLDINGS KSCP 90.00 4.44% 100 9 AL MADINA FOR FINANCE AND INVEST 48.50 -8.25% 2,337 118 GULF CABLE AND ELECTRICAL INDUS 439.00 4.33% 436 187 AL SALAM GROUP HOLDING CO KSCP 56.00 -8.21% 7,698 450 JIYAD HOLDING CO KSCP 52.00 3.65% 34 2 KUWAIT INSURANCE COMPANY SAKP 249.00 -7.63% 50 13 Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) 11.97 19.63% 88 962 SUEZ BAGS CO SAE 44.66 -8.46% 14 638 ARAB ENGINEERING INDUSTRIES SAE 6.82 7.33% 10 67 NORTH AFRICA CO FOR REAL ESTATE 1.12 -6.25% 348 403 BELTONE FINANCIAL HOLDING SAE 14.15 6.43% 943 12,934 NAEEM HOLDING FOR INVESTMENTS 0.51 -5.88% 521 274 RAYA CONTACT CENTER CO 13.05 5.90% 20 247 INTERNATIONAL COMPANY 10.92 -3.57% 3 31 ISMAILIA MISR POULTRY CO SAE 2.02 5.45% 1,585 3,118 DELTA SUGAR CO SAE 32.29 -3.44% 47 1,529 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) QATAR GENERAL INSURANCE 29.70 9.93% 1 14 AL MEERA CONSUMER GOODS CO 154.00 -2.21% 124 19,276 QATAR INSURANCE CO SAQ 70.00 1.86% 17 1,206 ISLAMIC HOLDING GROUP QSC 51.90 -1.73% 16 831 AHLI BANK QSC 32.40 1.85% 0 3 OOREDOO QSC 95.20 -1.58% 48 4,598 SALAM INTERNATIONAL INVESTMENT 9.00 1.56% 47 421 AAMAL CO QSC 11.20 -1.52% 19 216 DLALA BROKERAGE AND INVESTMENT 18.10 1.49% 10 181 QATAR OMAN INVESTMENT CO QSC 8.65 -1.50% 14 126 Close * DoD % Volume ('000) Value (AED ‘000) AIR ARABIA PJSC 1.08 5.56% 0 61,384 GULF NAVIGATION HOLDING PJSC 1.30 3.85% 0 5 NATIONAL CENTRAL COOLING CO PJSC 2.11 1.90% 5,927 12,390 MARKA PJSC 0.73 1.10% 310 DUBAI ISLAMIC INSURANCE 1.00 1.00% 886 Close * DoD % Volume ('000) Value (AED ‘000) GULF CEMENT CO PSC 0.97 12.37% 50 46 ABU DHABI AVIATION 2.80 6.79% 12 RAS AL KHAIMAH CERAMICS PSC 2.40 3.33% AGTHIA GROUP PJSC 5.50 1.27% METHAQ TAKAFUL INSURANCE CO 0.89 Top Gainers Dubai Top Gainers Saudi Arabia Abu Dhabi Top Gainers Kuwait Top Gainers Top Gainers Egypt UNIVERSAL CO FOR PACKAGING Qatar Top Gainers Data & Charts Source: Thomson Reuters Top Losers Top Losers Top Losers Top Losers Top Losers 3
4. MENA Morning Report Wednesday , August 09, 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 78,478 98.10 0.3% 7.2% 2,897 75,796 105.40 76.00 16 1.9 6.1% 2 Emirates Telecommunications Group Co AE 43,333 18.30 0.0% -2.7% 1,197 5,964 20.00 17.10 18 3.6 4.4% 3 Saudi Telecom Company SJSC SA 39,466 74.00 0.0% 0.0% 134 2,647 78.90 51.00 0 0.0 0.0% 4 Qatar National Bank SAQ QA 35,184 138.90 1.0% -6.2% 164 6,266 157.27 121.70 10 1.8 2.3% 5 First Abu Dhabi Bank PJSC AE 32,194 10.85 -0.5% 8.6% 856 2,528 11.55 8.30 13 1.2 4.1% 6 Al Rajhi Banking & Investment Corp SA 27,473 63.40 1.0% 0.6% 2,686 45,412 71.70 48.60 12 1.9 3.5% 7 National Commercial Bank SJSC SA 26,666 50.00 -0.2% 17.4% 282 3,754 58.00 32.00 11 1.7 3.2% 8 Saudi Electricity Company SJSC SA 26,643 23.98 -0.6% 7.1% 1,246 7,965 26.05 14.30 11 1.4 2.9% 9 DP World Ltd AE 19,090 23.00 -0.2% 31.4% 69 430 23.85 15.53 20 2.2 1.7% 10 Almarai Co SJSC SA 17,045 79.90 0.0% 16.6% 284 6,048 98.30 51.50 31 4.8 1.1% 11 Jabal Omar Development Co SJSC SA 16,605 67.00 1.4% -10.4% 213 3,812 76.00 46.00 72 6.1 0.0% 12 Emaar Properties PJSC AE 16,239 8.33 -0.2% 16.8% 1,575 3,573 8.53 6.37 11 1.4 0.0% 13 Industries Qatar QSC QA 15,746 94.90 0.7% -19.2% 161 4,201 122.00 91.10 18 1.8 4.2% 14 Saudi Arabian Mining Co SJSC SA 15,034 48.25 0.0% 23.7% 308 3,957 53.80 27.80 220 2.2 0.0% 15 National Bank of Kuwait SAKP KW 14,050 716.00 1.4% 15.7% 3,031 7,196 723.81 533.33 14 1.3 4.0% 16 Samba Financial Group SJSC SA 13,098 24.56 -0.2% 0.9% 807 5,285 27.10 15.90 10 1.1 3.9% 17 Emirates NBD Bank PJSC AE 12,318 8.14 0.5% -4.1% 79 175 9.00 7.60 7 0.8 4.9% 18 Kuwait Finance House KSCP KW 10,573 553.00 1.5% 12.6% 6,590 12,085 572.73 413.64 17 1.7 2.8% 19 Abu Dhabi Commercial Bank PJSC AE 10,502 7.42 0.3% 0.0% 1,703 3,441 7.68 5.66 10 1.3 5.4% 20 Kingdom Holding Co SA 10,357 10.48 0.0% -12.3% 677 1,891 12.95 9.80 73 1.4 4.8% 21 Saudi British Bank SJSC SA 10,000 25.00 0.0% 0.0% 185 1,235 28.40 16.40 10 1.1 2.8% 22 Banque Saudi Fransi SJSC SA 9,675 30.10 0.3% 15.3% 28 226 33.20 18.00 10 1.1 0.0% 23 Ezdan Holding Group QSC QA 9,457 13.00 -0.3% -14.0% 57 202 20.24 10.72 17 1.2 3.8% 24 Emirates Islamic Bank PJSC AE 8,945 6.05 0.0% 0.0% 1 1 11.95 1.57 95 4.7 0.0% 25 Emaar Malls Group PJSC AE 8,753 2.47 -0.8% 0.0% 4,236 2,849 2.97 2.38 17 1.9 0.0% 26 Riyad Bank SJSC SA 8,560 10.70 0.2% 0.0% 212 604 11.80 8.55 11 0.9 0.0% 27 Masraf Al Rayan QSC QA 8,526 41.45 0.1% 10.2% 154 1,756 45.40 33.05 15 2.5 4.8% 28 Yanbu National Petrochemicals Co SJSC SA 8,265 55.10 1.5% 2.0% 328 4,812 61.75 39.90 14 2.0 5.4% 29 Ooredoo QSC QA 8,231 93.70 -1.6% -8.0% 48 1,231 116.10 88.20 16 1.3 3.7% 30 Dubai Islamic Bank PJSC AE 8,208 6.10 -0.8% 9.5% 1,790 2,974 6.29 5.01 10 1.2 7.4% Company Name Total M-Cap; W. Avg Yield 568,711 3.2% 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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