MENA Morning Report - 20 April

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1. MENA Morning Report Wednesday , April 20, 2016 Overview Regional Markets: MENA markets closed the day on a positive note on the back of rebound in oil prices and upward trend in the global markets. Additionally, the better than expected earnings for the first quarter by the corporates in the region have also lifted the markets to new highs of the year. For the day, all the indexes under coverage closed in green with Egypt being the standout performer with gains of 2.6%. The index was led by real estate and banking stocks as Commercial International Bank Egypt, Qatar National Bank Alahly and Talaat Mostafa Group Holding Co rose by 4.4%, 3.4% and 3.1% respectively. The index has gained 5.4% in the past three days and 4.5% for the month so far, adding to the gains of around 23% seen in the previous month. Saudi market climbed up by 1.7%, which was led by 2.3% rise in SABIC, 1.6% in Khodari and 0.5% in Samba Financial after announcing better than expected first quarter results. UAE market continued its upward trajectory as Dubai and Abu Dhabi were both up by 1.1% and 1.0% respectively. In Dubai, Emirates NBD hogged the limelight as it was up by 2.4% after reporting an increase of 8% in Q1 n et profit, mainly on the back of lower provisioning. Qatar rose by 0.6% as Qatar Insurance surged by 4.9% after reporting better than expected Q1 net profit growth of 8.4%. Kuwait and Oman were also up by 0.7% and 0.9% respectively, while Bahrain closed flat for the day. International Markets: US markets closed on a mixed note as Dow Jones and S&P 500 were up by 0.3% each respectively, while NASDAQ was down by 0.4%. European markets closed in green as Stoxx 50, FTSE 100, DAX and CAC 40 were all up by 1.6%, 0.8%, 2.3% and 1.3% respectively. At the time of writing this report, Asian markets have opened on a mixed note as Nikkei was up by 0.3%, while Hang Seng and Shanghai were down 1.1% and 2.6% respectively. Headlines (WW) Negative Rates Force Central Banks To Take More Risk (SA) Saudi’s Sipchem Says Q1 Net Profit Down 37.1% (WW) US Probes Tax Avoidance Schemes Mentioned In Panama Papers - The Guardian (SA) Saudi Telecom Extends Profit Slump As Q1 Misses Estimates (WW) U.S. Housing Data Adds To Signs Of Weak First-Quarter GDP Growth (SA) Saudi Telco Mobily Swings To Q1 Net Profit On Cost-Cutting (WW) China Will Prevent Rapid Rise In Housing Prices (SA) Saudi Contractor Khodari Q1 Net Profit Drops 70.6% (WW) China Stills Sees Large Potential Domestic Growth For Steel Demand (SA) Saudi Bank Samba Q1 Profit Dips 1.4%, Meets Estimates (WW) Japan’s Exports Fall As Yen Rises, Quake Disruption Looms (AE) UAE Non-Oil Total Foreign Trade Volume Recorded AED 1.56 Trillion In 2015 (WW) Japan Manufacturers' Mood Up; Yen Rise Weighs On Outlook (AE) Finance House AGM Approves 10% Cash Dividend (WW) German Investor Morale Rises In April On Positive Signs From China (AE) Emirates Islamic Net Profit For Q1 2016 At AED 45 Million. (WW) Spain Targets Slower Deficit Cut To Preserve Growth (AE) Dubai’s Emirates NBD Q1 Net Profit Gains 8% On Lower Provisions (CMD) Oil Rises As Kuwaiti Strike Cuts Output For Third Day (QA) Qatar Insurance Q1 Net Profit Up 8.4% (CMD) Gold Gains On Dollar Weakness, Silver Hits 10-Month High (QA) Qatar Gas Transport Q1 Net Profit Rises 7.9% (FX) Egypt Pound Stable At Central Bank Sale But Falls On Black Market (EG) Egypt To Launch New Oil Exploration Round Next Week (FI) Lebanon Launches US$1Bn Dual Tranche Bond (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,562.94 1.1% 0.5% 6.2% 13.1% ˄ ˄ ˅ Abu Dhabi (ADSMI) 4,602.38 1.0% 1.5% 4.8% 6.9% ˄ ˄ ˅ Saudi (SASEIDX) 6,531.90 1.7% 0.4% 5.0% -5.5% ˄ ˄ ˅ Kuwait (KWSE) 5,328.19 0.7% 0.5% 1.9% -5.1% ˄ ˅ ˅ Egypt (EGX30) 7,864.03 2.6% 5.4% 4.5% 12.2% ˄ ˄ ˅ Qatar (DSM) 10,297.39 0.6% 0.6% -0.8% -1.3% ˅ ˄ ˅ Bahrain (BHSEIDX) 1,126.90 0.0% 0.3% -0.4% -7.3% ˅ ˅ ˅ Oman (MSM30) 5,709.03 0.9% -0.9% 4.4% 5.6% ˄ ˄ ˅ 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) 966 585 431 245 192 142 82,773 Abu Dhabi (ADSMI) 142 187 136 91 73 70 121,441 Saudi (SASEIDX) 352 318 285 1,732 1,489 1,441 389,666 Kuwait (KWSE) 222 170 145 44 44 47 78,230 Egypt (EGX30) 451 291 284 129 123 109 49,481 Qatar (DSM) 15 11 9 131 98 94 126,279 Bahrain (BHSEIDX) 3 1 2 1 1 1 17,232 Oman (MSM30) 26 24 20 10 12 13 16,174 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 Wednesday , April 20, 2016 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 15 10 13.1 9.1 13.4 PB Previous Current 600 494.1 12.3 10.6 10.1 9.2 8.9 353.3 8.6 300 233.1 223.6 5 147.0 1.2 1.5 1.1 1.3 1.5 Abu Dhabi Saudi Kuwait Egypt Qatar 1.4 0.8 1.1 Bahrain Oman 0 90.6 90.1 1.2 0 Dubai Average Dubai Abu Dhabi Saudi 16% 6.9% 13.1% 4.0% 4% Bahrain Oman Average 4.4% 12.2% 6.9% 8% 4.8% 4.0% Qatar 12% 5.4% 4.6% Egypt Year to Date Perfomance Dividend Yield 8% 6% Kuwait 4.5% 5.6% 4% 0% 2.2% -1.3% -4% 2% -8% -5.5% -5.1% Saudi Kuwait -7.3% -12% 0% Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Bahrain Oman Average Dubai Abu Dhabi 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 , April 20, 2016 Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) EMAAR MALLS GROUP PJSC 2.93 -1.68% 2,995 8,850 240 MASHREQBANK PSC 82.00 -1.20% 180 14,874 361 754 DUBAI PARKS AND RESORTS PJSC 1.38 -0.72% 27,987 38,762 4,144 2,507 AL SALAM BANK SUDAN PLC 1.61 -0.62% 68 109 Close * DoD % Volume ('000) Value (AED ‘000) ABU DHABI SHIP BUILDING PJSC 2.84 -4.05% 3 7 NATIONAL MARINE DREDGING PSC 5.22 -1.51% 1 4 EMIRATES TELECOM GROUP CO PJSC 18.95 -0.26% 3,757 71,294 Close DoD % Volume Value ALUJAIN CORP SJSC 15.05 -5.35% 5,113 79,122 13,107 SAUDI AIRLINES CATERING CO SJSC 108.25 -2.70% 582 63,855 1,732 17,883 AL KHALEEJ TRAINING & EDUCATION 27.60 -2.47% 552 15,432 3,841 73,657 SAUDI PHARMACEUTICAL INDUSTRIES 33.80 -1.46% 105 3,577 8.86% 2,264 28,019 HERFY FOOD SERVICES CO SJSC 67.00 -0.37% 413 27,742 Close (fils) * DoD % Volume ('000) Value (KWD 000) Close (fils) * DoD % Volume ('000) Value (KWD 000) 130.00 30.00% 2 0 KUWAIT REAL ESTATE HOLDING CO 20.50 -8.89% 505 11 MUNSHAAT REAL ESTATE PROJECTS 54.00 9.09% 4,252 220 IKARUS PETROLEUM INDUSTRIES CO 49.00 -7.55% 6,442 329 HUMAN SOFT HOLDING CO KSC 660.00 8.20% 55 35 MASHAER HOLDING CO KSCP 79.00 -5.95% 1 0 HITS TELECOM HOLDING CO KSCP 33.50 8.06% 9,572 309 KUWAIT AND MIDDLE EAST FINANCIAL 26.00 -5.45% 388 10 AL-ARABIYA REAL ESTATE CO KSCP 33.50 8.06% 6,962 225 INJAZZAT REAL ESTATE DEVELOPMENT 71.00 -5.33% 0 0 Close * DoD % Volume ('000) Value (EGP ‘000) Top Losers Close * DoD % Volume ('000) Value (EGP ‘000) SAUDI EGYPTIAN INVESTMENT & FIN 93.18 10.00% 2 201 GRAND CAPITAL FOR FINANCIAL 4.39 -9.30% 92 424 EGYPTIAN FINANCIAL & INDUSTRIAL 7.82 8.61% 467 3,508 HOUSING AND DEVELOPMENT BANK 17.65 -8.22% 13 237 SABAA INTL CO FOR PHARMA 4.30 8.04% 183 756 MEMPHIS PHARMA & CHEMICAL 12.31 -6.81% 2 25 ADVANCED PHARMA PACKAGING CO 4.42 7.28% 1,190 5,079 EGYPTIAN ARABIAN CO THEMAR 0.83 -4.60% 1,741 1,480 MARSA MARSA ALAM FOR DEVELOP 1.42 6.77% 1,251 1,720 NATIONAL CO FOR HOUSING 8.77 -3.94% 1 10 Close * DoD % Volume ('000) Value (QAR ‘000) Close * DoD % Volume ('000) Value (QAR ‘000) WIDAM FOOD CO QSC 66.60 9.90% 1,115 70,912 QATAR GENERAL INSU & REINSU CO 48.20 -5.68% 13 626 QATAR CINEMA & FILM DISTRIBUTION 38.70 8.71% 0 4 COMMERCIAL BANK QSC 38.20 -3.05% 240 9,296 ALIJARAH HOLDING CO QSC 20.01 5.93% 2,168 42,164 QATAR INDUSTRIAL MANUFACTURING 39.10 -2.13% 2 67 EZDAN HOLDING GROUP QSC 19.21 5.55% 1,802 33,698 QATAR ISLAMIC BANK SAQ 100.00 -0.89% 47 4,671 QATARI INVESTORS GROUP QSC 51.00 3.45% 308 15,435 DOHA BANK QSC 36.60 -0.81% 96 3,521 Close * DoD % Volume ('000) Value (AED ‘000) ISLAMIC ARAB INSURANCE CO PSC 0.56 14.40% 149,968 78,133 DAR AL TAKAFUL PJSC 0.57 9.92% 444 AJMAN BANK PJSC 2.15 5.91% DUBAI ISLAMIC INSU & REINSU CO PSC 0.62 5.08% DEYAAR DEVELOPMENT PJSC 0.67 4.17% 69,493 45,900 Close * DoD % Volume ('000) Value (AED ‘000) NATIONAL CORP FOR TOURISM 4.38 14.97% 2 8 ABU DHABI ISLAMIC BANK PJSC 4.73 9.49% 19,161 86,704 AL KHAZNA INSURANCE CO PSC 0.37 8.82% 50 18 ABU DHABI NATIONAL ENERGY CO 0.65 8.33% 31,050 19,406 ABU DHABI AVIATION 2.90 7.41% 36 101 Close DoD % Volume Value ARABIAN CEMENT CO SJSC 53.00 9.96% 2,327 117,765 SAUDI UNITED COOP INSU CO SJSC 12.20 9.91% 1,125 UNITED COOPERATIVE ASSURANCE CO 10.80 9.64% BAWAN CO SJSC 20.05 9.56% SALAMA COOPERATIVE INSU CO SJSC 12.90 Top Gainers UNITED FOODSTUFF INDUSTRIES GRP Dubai Top Gainers Abu Dhabi Top Gainers Kuwait Saudi Arabia Top Gainers Egypt Top Gainers Qatar Top Gainers Data & Charts Source: Thomson Reuters Top Losers Top Losers Top Losers Top Losers Top Losers 3
4. MENA Morning Report Wednesday , April 20, 2016 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) SA 62,020 77.50 2.3% 1.0% 10,021 207,154 110.50 59.50 12 1.4 7.1% 2 Emirates Telecommunications Group Co AE 44,874 18.95 -0.3% 17.7% 3,757 19,387 19.05 11.25 19 3.8 4.2% 3 Qatar National Bank SAQ QA 32,423 140.60 -0.4% -3.6% 56 2,168 169.00 122.50 10 2.0 1.7% 4 Saudi Telecom Co SJSC SA 32,410 60.75 0.0% -11.0% 1,448 23,458 73.25 52.75 13 2.0 6.6% 5 Al Rajhi Banking and Investment Corp SA 25,466 58.75 1.7% 13.0% 3,546 55,567 69.00 44.70 13 2.0 2.6% 6 National Commercial Bank SJSC SA 22,781 42.70 1.2% -16.3% 544 6,197 72.75 36.60 9 1.6 3.6% 7 Saudi Electricity Co SJSC SA 18,728 16.85 0.0% 7.0% 2,000 8,991 21.00 12.40 45 1.2 4.2% 8 Industries Qatar QSC QA 17,496 105.30 -0.5% -5.2% 228 6,607 152.00 88.00 14 1.9 4.7% 9 First Gulf Bank PJSC AE 15,868 12.95 0.8% 2.4% 2,488 8,772 15.75 9.90 10 1.6 7.7% 10 DP World Ltd AE 15,770 19.00 -0.4% -6.4% 58 300 23.90 16.40 19 1.8 1.6% 11 Jabal Omar Development Co SJSC SA 14,441 58.25 0.9% 5.0% 382 5,934 83.75 40.80 - 5.7 0.0% 12 Ezdan Holding Group QSC QA 13,994 19.21 5.5% 20.8% 1,802 9,504 21.78 12.10 31 1.7 2.6% 13 Emaar Properties PJSC AE 12,964 6.65 1.4% 16.9% 12,037 21,795 8.39 4.22 12 1.2 2.3% 14 National Bank of Abu Dhabi PJSC AE 12,768 9.00 0.2% 13.1% 704 1,725 12.00 6.86 9 1.1 5.0% 15 Emirates NBD Bank PJSC AE 12,712 8.40 2.4% 13.5% 698 1,596 10.95 6.25 7 0.9 4.8% 16 Almarai Co SJSC SA 12,164 57.00 0.9% -2.9% 367 5,573 73.50 40.88 24 3.7 1.5% 17 Kingdom Holding Co SA 12,060 12.20 1.2% -22.3% 655 2,131 23.50 9.80 64 1.6 4.1% 18 National Bank of Kuwait SAK KW 11,767 670.00 1.5% -12.1% 288 640 828.57 619.05 13 1.2 4.3% 19 Samba Financial Group SJSC SA 11,204 21.00 0.5% -10.1% 752 4,214 31.00 17.55 8 1.0 4.3% 20 Abu Dhabi Commercial Bank PJSC AE 10,650 6.99 2.8% 6.1% 3,547 6,751 8.91 5.20 8 1.3 6.4% 21 Emaar Malls Group PJSC AE 10,383 2.93 -1.7% 6.2% 2,995 2,389 3.50 2.02 23 2.5 3.4% 22 Saudi Arabian Mining Co SJSC SA 9,725 31.20 2.6% -6.0% 3,444 28,662 48.40 25.70 71 1.3 0.0% 23 Saudi British Bank SJSC SA 9,263 23.15 0.7% -6.5% 253 1,562 37.80 19.00 8 1.2 3.2% 24 Riyad Bank SJSC SA 8,883 11.10 0.9% -10.5% 714 2,113 18.15 10.80 8 0.9 6.3% 25 Kuwait Finance House KSCP KW 8,524 490.00 1.0% -0.2% 1,026 1,668 627.27 395.45 17 1.4 3.2% 26 Banque Saudi Fransi SJSC SA 8,325 25.90 1.6% -7.5% 267 1,841 40.90 20.70 8 1.1 4.1% 27 Ooredoo QSC QA 8,005 91.00 0.6% 21.3% 154 3,843 102.00 60.00 14 1.3 3.3% 28 Emirates Integrated Telecom Co PJSC AE 7,792 6.26 1.0% 22.7% 1,394 2,376 6.47 4.65 15 3.7 6.9% 29 Masraf Al Rayan QSC QA 7,158 34.75 -0.3% -7.6% 181 1,730 49.90 28.60 13 2.2 5.0% 30 Saudi Arabia Fertilizers Co SJSC SA 7,141 64.25 2.4% -22.4% 175 3,005 127.50 61.00 12 3.5 9.3% Company Name 1 Saudi Basic Industries Corp SJSC Total M-Cap; W. Avg Yield 497,758 4.3% 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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