MENA Morning Report - 29 March

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1. MENA Morning Report Thursday , March 29, 2018 Overview Regional Markets: MENA region ended on a losing note, in line with the sentiments seen in the global markets on the back of tighter regulation concern as data privacy related issues have been surfacing from a leading company in the US. The last trading session of the week and month is likely to depict subdued trading activity but the first quarter of the year is mostly positive for the regional markets despite the pressure seen in the last two months. Further, oil prices around US$70 per barrel should act as a support coupled with Saudi Arabia being included into the secondary FTSE emerging market index. For the day, six indexes out of the eight indexes closed in red, while two in green during the session. UAE markets ended on a negative note as both Dubai and Abu Dhabi were down by 0.1% and 1.3% respectively for the day. Dubai has continued to remain under pressure as the index has lost around 2.0% in the past four trading sessions, while the day's performance in Abu Dhabi has pushed the index into negative territory. Saudi Arabia closed in red as the index was down by 0.5% for the day, some pull back or lack of conviction ahead of the FTSE's decision to include the market into secondary emerging market index. Egypt closed marginally higher despite the negative sentiments seen across the regional markets. The index was up by 0.2% for the day, extending the weekly gains to 1.4% and monthly gains to 11.8%. Kuwait closed lower by 0.2% for the day, continuing the downward trend throughout the week. Bahrain was down by 0.9%, while Oman was up by 0.3% for the day. International Markets: US markets ended on a negative note as DJIA, S&P and NASDAQ were all down by 0.04%, 0.3% and 0.9% respectively for the day. European markets closed on a positive note as FTSE and CAC closed higher by 0.6% and 0.3% respectively, while DAX was down by 0.3% for the day. At the time of writing this report, Asian markets have opened on a positive note as Nikkei and Shanghai are up by 0.4% and 0.1% respectively, while Hang Seng is down by 0.2%. Headlines (WW) US consumer confidence ebbs, house prices surge (ME) Government-led initiatives to drive MENA hospitality market in 2018 (WW) US goods trade deficit widens unexpectedly in February (ME) Middle East oil producers benefit from Venezuela's economic woes (WW) China preparing list of retaliatory tariffs on US imports (SA) Saudi Arabia’s Farabi Petrochemicals shortlists banks for USD 1bn project (WW) China's economic growth stayed strong in Q1, but outlook cloudy (SA) Community engagement will be key to foreign investment in Saudi Arabia (WW) UK employers become slightly more confident about hiring (SA) Saudi Arabia and Russia consider 10 to 20 year oil alliance (WW) UK retail sales fall in March, hit by snow (SA) USD 200bn solar power park to be built in Saudi Arabia (WW) Spain hikes growth forecast despite lack of a budget (AE) DEWA strengthens ties with World Bank (WW) Vegetable price declines give India's C.bank room to hold rates (AE) UAE, South Korea seek to grow Islamic economy synergies (CMD) Oil prices fall on surprise US inventory rise; China crude volatile (EG) Egypt manufacturing index falls 5.9% in January (CMD) Gold slips from previous day's peak as dollar recovers (KW) Kuwait is spending USD 26bn on road projects (FX) Dollar gains on improved sentiment, month-end flows (KW) Kuwait's economy expands 8.7% in year (FX) Sterling edges higher on Irish border report, end-of-quarter flows (OM) Oman plans to launch first REIT fund in April (FI) German's 10-year benchmark bond yield falls below 0.5% (Source: Thomson Reuters, Bloomberg) MENA Markets Index Last DoD (%) WTD (%) MTD (%) YTD (%) ST Trend * MT Trend * LT Trend * Dubai (DFMGI) 3,090.54 -0.1% -1.9% -4.7% -8.3% ˅ ˅ ˅ Abu Dhabi (ADSMI) 4,550.59 -1.3% -0.6% -1.0% 3.5% ˄ ˄ ˄ Saudi (SASEIDX) 7,900.28 -0.5% 0.8% 6.5% 9.3% ˄ ˄ ˄ Kuwait (KWSE) 6,603.51 -0.2% -0.9% -2.5% 3.1% ˅ ˄ ˄ Egypt (EGX30) 17,305.51 0.2% 1.4% 11.8% 15.2% ˄ ˄ ˄ Qatar (DSM) 8,553.14 -1.6% -3.1% -1.2% 0.3% ˅ ˄ ˄ Bahrain (BHSEIDX) 1,315.13 -0.9% -1.4% -4.0% -1.2% ˅ ˄ ˄ Oman (MSM30) 4,774.04 0.3% -0.6% -4.6% -6.4% ˅ ˅ ˅ 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) 149 215 241 58 88 103 82,406 Abu Dhabi (ADSMI) 63 70 79 37 39 41 132,742 Saudi (SASEIDX) 176 172 175 1,153 987 948 502,685 Kuwait (KWSE) 42 83 84 38 48 52 75,578 Egypt (EGX30) 720 314 340 173 104 93 30,139 Qatar (DSM) 8 11 10 55 87 77 101,668 Bahrain (BHSEIDX) 2 7 6 1 3 3 21,860 Oman (MSM30) 29 16 17 13 11 12 13,109 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 Thursday , March 29, 2018 Valuation and Performance Comparisons 5-Year CDS(DoD change) Price Ratios PE (+ve.eps) 16 12.3 Current 11.6 10.7 10.7 7.5 7.5 4 1.0 1.2 2.5 1.8 - - 146.1 108.5 1.2 0.8 0.8 Bahrain Oman - 284.8 255.1 300 85.9 83.4 58.9 1.3 0 0 Dubai Abu Dhabi Saudi Kuwait Egypt Qatar Dubai Average Abu Dhabi Saudi 6.1% 5.5% 5.0% 6.0% 5.0% 4.3% 4.0% 4% 2.8% 2% 0.0% 0% Dubai Abu Dhabi Saudi Kuwait Egypt Kuwait Egypt Qatar Bahrain Oman Average Year to Date Perfomance DividendYield 8% 6% Previous 600 14.4 12 8 PB Qatar Bahrain Oman Average 18% 15% 12% 9% 6% 3% 0% -3% -6% -9% -12% 15.2% 9.3% 3.5% 3.1% 0.3% -1.2% -6.4% -8.3% 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 Thursday , March 29, 2018 Dubai Top Performers by Country (* indicates native currency; Latest data) Close * DoD % Volume ('000) Value (AED ‘000) ISLAMIC ARAB INSURANCE CO PSC 0.41 -3.72% 0 752 809 DUBAI FINANCIAL MARKET PJSC 1.02 -2.86% 0 6,621 633 649 DXB ENTERTAINMENTS PJSC 0.46 -2.55% 27,576 12,795 1,810 9,550 AIR ARABIA PJSC 1.15 -2.54% 7,260 8,458 1,615 4,838 MARKA PJSC 0.48 -2.04% 3,711 1,800 DoD % Volume ('000) Value (AED ‘000) Close * DoD % Volume ('000) Value (AED ‘000) 1.25 1.63% 763 946 AL QUDRA HOLDING PJSC 1.18 -9.23% 100 124 INTERNATIONAL HOLDING COMPANY 1.47 1.38% 175 256 ABU DHABI COMMERCIAL BANK PJSC 6.52 -3.41% 1,276 8,464 BANK OF SHARJAH PJSC 1.10 0.92% 1,146 1,255 FIRST ABU DHABI BANK PJSC 11.40 -2.98% 2,145 24,828 UNION NATIONAL BANK PJSC 3.55 0.85% 494 1,745 DANA GAS PJSC 0.88 -2.22% 9,164 8,156 EMIRATES TELECOMMUNICATIONS 17.70 0.57% 1,007 17,774 ESHRAQ PROPERTIES COMPANY PJSC 0.70 -1.41% 11,575 8,161 Close * DoD % Volume ('000) Value (SAR ‘000) Close * DoD % Volume ('000) Value (SAR ‘000) RAYDAN COMPANY CJSC 15.00 7.14% 42 608 AL ANDALUS PROPERTY CO SJSC 22.56 -7.84% 4,177 98,254 AL ALAMIYA FOR COOPERATIVE INS 25.20 3.11% 655 16,259 AL HASSAN GHAZI IBRAHIM SHAKER 10.58 -5.20% 1,118 12,157 UNITED INTERNATIONAL TRANSPORT 36.30 2.83% 458 16,396 AL KHALEEJ TRAINING AND EDU 19.28 -4.08% 471 9,274 TRADE UNION COOPERATIVE INS 21.92 2.81% 331 7,165 WAFRAH FOR INDUSTRY AND DEV 16.72 -3.69% 379 6,461 SAVOLA GROUP COMPANY SJSC 43.15 2.62% 648 27,616 UNITED ELECTRONICS COMPANY JSC 67.20 -3.59% 384 26,308 Top Gainers Close (fils) * DoD % Volume ('000) Value (KWD 000) Top Losers Close (fils) * DoD % Volume ('000) Value (KWD 000) GULF FRANCHISING HOLDING CO KSCP 49.20 20.00% 0 0 BOUBYAN INTERNATIONAL INDUSTRY 26.20 -12.67% 604 17 KUWAIT CABLE VISION COMPANY 11.40 20.00% 10 0 TIJARA AND REALESTATE INVESTMENT 53.00 -9.71% 26 1 40.00 -9.09% 215 9 Top Gainers Close DoD % Volume Value AMANAT HOLDINGS PJSC 1.32 1.54% 0 1,560 GULF NAVIGATION HOLDING PJSC 1.02 0.99% 0 SHUAA CAPITAL PSC 1.03 0.98% DUBAI ISLAMIC BANK PJSC 5.30 0.95% DAMAC PROPERTIES DUBAI CO PSC 3.00 0.33% Close * SHARJAH ISLAMIC BANK PJSC Abu Dhabi Top Gainers Egypt Kuwait Saudi Arabia Top Gainers Top Losers Top Losers AL MASSALEH REAL ESTATE CO KSCP 34.90 19.93% 0 0 FIRST DUBAI FOR REAL ESTATE DEV AL AHLEIA INSURANCE CO SAKP 540.00 17.39% 0 0 KUWAIT REMAL REAL ESTATE CO KPSC 32.00 -8.57% 337 11 AL MAL INVESTMENT COMPANY KPSC 24.60 13.36% 38 1 NATIONAL RANGES CO KPSC 17.00 -8.11% 80 1 Top Gainers Close * DoD % Volume ('000) Value (EGP ‘000) Close * DoD % Volume ('000) Value (EGP ‘000) BPE HOLDING FOR FINANCIAL INVEST 10.75 115.00% 0 0 NATIONAL COMPANY FOR HOUSING 28.13 -7.89% 3 90 GENERAL COMPANY FOR PAPER IND 8.22 9.02% 466 3,676 EDITA FOOD INDUSTRIES SAE 19.99 -7.71% 95 1,972 ORASCOM TELECOM MEDIA AND TEC 0.86 8.86% 197,162 162,659 INDUSTRIAL AND ENGINEERING ENT 11.83 -6.56% 90 1,107 PALM HILLS DEVELOPMENTS CO 4.79 8.13% 32,980 152,037 ISMAILIA DEVELOPMENT AND REAL ES 6.31 -5.82% 52 341 PRIME HOLDING FOR FINANCIAL INV 4.47 7.97% 24 102 SHARM DREAMS COMPANY FOR TOUR 6.62 -4.61% 191 1,292 Close DoD % Volume Value Top Losers Close DoD % Volume Value QATAR CINEMA AND FILM DIST 25.18 9.96% 0 3 AL KHALEEJ TAKAFUL GROUP QPSC 10.32 -5.58% 59 624 QATAR ISLAMIC INSURANCE CO QPSC 51.50 2.57% 1 42 AL MEERA CONSUMER GOODS CO 141.43 -4.44% 23 3,338 QATAR ELECTRICITY AND WATER CO 188.00 1.62% 15 2,778 5.78 -3.67% 104 615 7.60 1.33% 34 256 GULF INTERNATIONAL SERVICES QSC 18.40 -3.16% 286 5,352 107.73 0.68% 116 12,457 INDUSTRIES QATAR QSC 105.85 -3.11% 136 14,678 Top Gainers Qatar Top Losers QATAR OMAN INVESTMENT CO QSC QATAR FUEL CO QSC Data & Charts Source: Thomson Reuters Top Losers QATARI GERMAN COMPANY FOR MED 3
4. MENA Morning Report Thursday , March 29, 2018 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 93,765 117.20 -0.3% 15.1% 5,322 166,322 118.20 94.25 19 2.1 3.6% 2 Saudi Telecom Company SJSC SA 44,269 83.00 -2.2% 21.0% 683 15,125 85.00 65.10 16 2.7 4.8% 3 Emirates Telecommunications Group Co AE 41,914 17.70 0.6% 1.1% 1,007 4,853 18.85 15.75 18 3.5 4.5% 4 National Commercial Bank SJSC SA 34,402 64.50 -0.3% 17.1% 769 13,227 65.00 37.00 13 2.0 2.6% 5 First Abu Dhabi Bank PJSC AE 33,827 11.40 -3.0% 11.2% 2,145 6,658 12.00 10.05 13 1.2 6.1% 6 Qatar National Bank QPSC QA 32,990 130.01 -2.2% 3.2% 238 8,502 151.00 115.01 9 1.5 4.6% 7 Al Rajhi Banking & Investment Corp Ltd SA 32,458 74.90 -2.5% 15.9% 6,337 126,568 78.20 61.00 13 2.2 5.3% 8 Saudi Electricity Company SJSC SA 23,623 21.26 1.2% 0.9% 2,716 15,399 26.05 19.76 13 1.2 3.3% 9 DP World Ltd AE 18,758 22.60 -0.7% -9.6% 127 784 27.06 20.30 16 1.7 1.8% 10 Industries Qatar QSC QA 17,593 105.85 -3.1% 9.1% 136 3,969 115.00 85.00 19 1.9 4.7% 11 Saudi Arabian Mining Co SJSC SA 17,170 55.10 0.2% 5.8% 597 8,768 57.10 39.50 90 2.5 0.0% 12 Emirates NBD Bank PJSC AE 16,344 10.80 0.0% 31.7% 1,556 4,576 11.00 7.95 8 1.0 3.7% 13 National Bank of Kuwait SAKP KW 15,255 734.00 2.2% 5.9% 2,830 6,943 761.90 609.52 15 1.4 3.7% 14 Almarai Co SJSC SA 14,934 56.00 0.2% 4.1% 480 7,162 78.64 50.00 27 3.8 1.3% 15 Samba Financial Group SJSC SA 14,267 26.75 -1.8% 13.7% 1,850 13,199 27.55 20.50 11 1.2 5.6% 16 Emirates Islamic Bank PJSC AE 14,047 9.50 0.0% -3.1% 1 1 10.20 4.90 73 7.1 0.0% 17 Saudi British Bank SJSC SA 12,801 32.00 -0.6% 18.5% 210 1,793 32.50 21.15 12 1.4 4.4% 18 Jabal Omar Development Co SJSC SA 12,566 50.70 2.1% -14.2% 815 11,017 75.60 48.05 350 4.6 0.0% 19 Kuwait Finance House KSCP KW 11,418 592.00 0.7% 2.8% 2,798 5,535 650.00 467.00 18 1.8 2.9% 20 Emaar Properties PJSC AE 11,151 5.72 0.2% -12.5% 8,193 12,760 8.43 5.68 7 0.8 0.0% 21 Riyad Bank SJSC SA 11,105 13.88 -0.9% 10.3% 836 3,093 14.20 10.10 11 1.1 5.3% 22 Yanbu National Petrochemicals Co SJSC SA 10,981 73.20 2.1% 24.1% 489 9,553 73.30 52.00 17 2.5 4.4% 23 Banque Saudi Fransi SJSC SA 9,451 29.40 -0.3% 3.2% 482 3,778 33.40 23.95 10 1.1 4.8% 24 Abu Dhabi Commercial Bank PJSC AE 9,228 6.52 -3.4% -4.1% 1,276 2,265 7.50 6.50 8 1.0 6.4% 25 Abu Dhabi National Oil Co for Dist AE 9,088 2.67 -0.4% 0.0% 3,627 2,637 2.90 2.50 18 11.7 0.0% 26 Kingdom Holding Co SA 8,994 9.10 0.4% 2.2% 392 951 11.30 7.90 53 1.1 5.5% 27 Alinma Bank SJSC SA 8,312 20.78 0.5% 8.5% 26,453 146,586 20.86 14.00 15 1.5 3.8% 28 Saudi Arabia Fertilizers Co SJSC SA 7,945 71.50 -1.5% 9.7% 224 4,269 73.10 57.00 34 4.3 2.4% 29 Arab National Bank SA 7,854 29.45 0.5% 18.9% 71 556 29.90 19.15 10 1.2 4.1% 30 Ezdan Holding Group QSC QA 7,724 10.60 -2.8% -12.3% 478 1,392 16.30 6.19 17 0.9 0.0% Company Name Total M-Cap; W. Avg Yield 604,233 3.7% Data Source: Thomson Reuters Disclaimer: This report is prepared by Al Masah Capital Limited (“AMCL”). AMCL is a company incorporated in the Cayman Islands as an Exempt Company established under the laws of the Cayman Monetary 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 AMCL 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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