UAE: Daily Market Trading Report - 10 October

Transcription

1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 3M 10 October 2019 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 5,053 -0.3% -0.4% 0.6% 0.7% ADX 101 101 DFM 2,810 0.5% -2.4% 5.8% 1.2% Local 25% 63% -38% TASI 7,716 -1.5% -4.2% -12.9% -2.4% Foreign 75% 37% 38% BHSEASI 1,518 0.0% -2.0% -1.3% 14.6% Institutional 87% 49% 38% EGX 14,183 -1.2% -4.7% 0.6% 4.4% Retail 13% 51% -38% Dow Jones 26,346 0.7% -1.8% -1.6% -0.3% DFM 198 198 - S&P 500 2,919 0.9% -2.0% -2.0% 1.4% Local 52% 61% -9% Nasdaq 7,904 1.0% -2.3% -2.9% 2.1% Foreign 48% 39% 9% FTSE 100 7,167 0.3% -1.0% -4.9% -1.0% Institutional 37% 39% -2% 12,094 1.0% -1.1% -2.8% 1.0% Retail 63% 61% 2% DAX CAC40 - 5,499 0.8% -1.6% -1.3% 3.4% Total 299 299 Nikkei225 21,456 -0.6% 0.6% -0.5% -8.6% Local 43% 62% -19% HIS 25,683 -0.8% -3.7% -8.7% -1.9% Foreign 57% 38% 19% # Upcoming Corporate Actions & Events Date Company Event 10-Oct SALAMA BoD/Buisness Matters 13-Oct AIR ARABIA BoD/Buisness Matters 14-Oct MASHREQ BoD/Results 17-Oct KHCB BoD/Buisness Matters 29-Oct OOREDO BoD/Results 06-Nov KHCB BoD/Results 07-Nov ITHMAAR BoD/Results 13-Nov GFH BoD/Results -
2. # KEY STORIES Deyaar announces work completion on Deyaar’s ‘Millenium’ Executive Apartments Mont Rose Project Adnoc is pursuing a balanced growth strategy including "responsible production" to meet the world’s long-term energy demand – Adnoc Group CEO Etihad Rail awards USD 436mln contract to Hitachi Rail Dewa tenders 900MW fifth phase of AED 50bln Mohammed bin Rashid solar park CBUAE directed local banks to reduce the early settlement fee on mortgages to a maximum of 1pct or AED10,000, whichever is less, to those borrowers who want to exit their mortgages early. The early settlement fee was set at 3pct in June 2018. GCC banks to maintain stable financial profiles - S&P Attacks on Saudi Aramco have no impact on IPO plans – CEO Saudi Aramco 'to publish IPO prospectus this month' A prospectus for Saudi Aramco's public offering is expected to be published by the end of the month, in Arabic on October 25 and in English two days later - WSJ The Russian Direct Investment Fund (RDIF), Russia's sovereign wealth fund, has opened its first foreign office in Saudi Arabia Saudi’s Dar Al Arkan sells USD 600mln in Islamic bonds Saudi’s Al Rajhi Capital invites Al Rajhi Reit Fund unit holders to vote to increase total asset value of fund to maximum SAR 2.41bln from SAR 1.72bln Saudi’s Arab Sea Information Systems board approves to complete requirements and conditions to move to main market Saudi Paper Manufacturing posted Q3 net loss after zakat and tax SAR 24.2mln vs loss of SAR 37.3mln year ago Kuwait Finance House has received the approval of central bank of Kuwait to acquire 100% of the capital shares of Ahli United Bank Kuwait's Boubyan Bank posted Q3 net profit attributable to shareholders KWD 16.4mln vs KWD 14.6mln year ago Kuwait’s Al Mazaya Holding signed agreement with banks to restructure its debts and obtained KWD 7mln to be employed in various projects National Bank of Oman shareholders approve capital raising plans which may take form of new issue of tier 2 capital in region of USD 130mln and new issue of additional tier 1 capital for bench mark size in region of USD 300mln Bahrain M2 money supply up 11.5% YoY, while private sector credit up 5.6% YoY in August World Bank forecast that Egypt's economy would grow by 5.8% this fiscal year, marginally lower than the government's target of 5.9%
3. Egyptian Iron and Steel says will save about EGP 225mln in annual cost after gas price reduction Egypt ’s Al Ezz Dekheila Steel posted H1 consolidated net loss EGP 1.26bln vs profit of EGP 903mln year ago # Key Global Trends/ Market Clues Global stocks recouped early losses as news reports raised hopes that the United States and China would settle some economic disputes, but investors were kept on edge by an earlier report that trade talks due to begin on Thursday could be cut short. U.S. S&P500 mini futures traded down 0.2%, with a big part of early losses cut after the New York Times reported Washington will soon issue licenses allowing some U.S. firms to supply non-sensitive goods to China's Huawei Technologies. Another report, from Bloomberg, that the White House is looking at rolling out a previously agreed currency pact with China, also raised hopes of a partial deal and helped to lift risk assets. MSCI's broadest index of Asia-Pacific shares outside Japan were flat while Japan's Nikkei gained 0.3%. Shanghai shares also rose 0.35%. Oil prices fell on Thursday on concerns of lower fuel demand as talks this week between the United States and China, the world's two largest oil users, are not expected to help end the trade war between them, adding to anxieties about the global economy. The trade dispute between the world's two largest economies has disrupted global supply chains and slowed the growth of both countries, limiting the growth of their fuel consumption. Global benchmark Brent crude futures fell 0.2%, to USD58.21 a barrel by 0354 GMT. Asia Pacific growth is expected to slow to 5.8% in 2019, down from 6.3% in 2018, due to uncertainty around the ongoing U.S.-China trade tensions, a World Bank report said on Thursday. The report highlights the weakening global demand and heightened uncertainty that led to a decline in exports and investment growth, and points out that increasing trade tensions pose a long-term threat to regional growth. # UAE Stories Deyaar Development and Millennium Hotels & Resorts announced that the project work of Millennium Executive Apartments Mont Rose is now completed and expected to be operational this October. Part of the three-tower Mont Rose development located in Dubai Science Park in Al Barsha South, the Millennium Executive Apartments Mont Rose features 126 one bed and 72 studio apartments across 20 floors along with a grab-and-go dining service. The Abu Dhabi National Oil Company is pursuing a balanced growth strategy including "responsible production" to meet the world’s long-term energy demand, according to Dr Sultan Al Jaber, Minister of State and Adnoc Group chief executive. "Over the medium and long-term, the outlook remains positive, solid, and robust. By 2040, three times the amount of energy consumed by all of Europe will be added to global energy demand. In the face of current economic headwinds, we need to control costs, while staying focused on capital efficiency and targeted long-term investment," he said. The United Arab Emirates' Etihad Rail on Wednesday said it awarded AED 1.6bln (USD 436mln) systems and integration contract to Hitachi Rail for stage two of the national railway network. Hitachi Rail will be responsible for the design and build of railway systems related to its subsystems, in coordination with other Stage Two works and contracts, as well as managing uptime and operation tests, a statement from Etihad Rail said. Stage Two links the United Arab Emirates and Saudi Arabia from Fujairah to Al Ghuweifat through Mussafah, Khalifa Port and Jebel Ali Port. The Dubai Electricity and Water Authority issued a tender for the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park on Wednesday as it looks to increase renewable energy capacity. The Mohammed bin Rashid Solar Park, which will generate 5,000 megawatts of electricity by 2030, aims to attract AED 50bln in investment. The project is currently in its fourth phase, for which consortium partners Acwa Power and China's Silk Road Fund closed AED 16.2bn financing deal this March. The Central Bank of the UAE directed local banks to reduce the early settlement fee on mortgages to a maximum of 1pct or AED10,000, whichever is less, to those borrowers who want to exit their mortgages
4. early . The apex bank said in a circular that borrowers who had already paid 3pct settlement fee can get the refund from their banks within 30 days. The early settlement fee was set at 3pct in June 2018. Rated banks in the Gulf Cooperation Council (GCC) are set to maintain stable financial profiles in 2020, barring any major increase in geopolitical risk or a sharp fall in oil prices, Standard & Poor’s Global Ratings said in a report Wednesday. “In our view, GCC banks will successfully navigate a less-than-favourable macroeconomic environment in 2020 supported by their solid financial profiles,” the report said. # GCC/ MENA Saudi Aramco's chief executive said on Wednesday there would be no impact on the stock market listing plans of the state oil giant after attacks on its installations last month, which he blamed on Iran. Attacks such as those on Sept. 14, which sent oil prices up as much as 20%, may continue if there is no concerted international response, Amin Nasser told the Oil & Money conference in London. A prospectus for Saudi Aramco's eagerly anticipated initial public offering is expected to be published by the end of the month, according to The Wall Street Journal. The prospectus is set to be published in Arabic on October 25 and in English two days later, the Journal reported. This will kick-start a book building process throughout November with potential investors which, if successful, could lead to a domestic listing of between 1-2 per cent of the company's shares on Tadawul exchange either in late November or early December. The Russian Direct Investment Fund (RDIF), Russia's sovereign wealth fund, has opened its first foreign office in Saudi Arabia, the fund said on its website, as it seeks to do more deals in the kingdom. Saudi’s Dar Al Arkan is set to raise USD600mln through an issuance of sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed on Wednesday. The paper, which is due in 2025 and has attracted orders of more than USD 1.6bln, offers investors a profit rate of 7%, according to the document, down from initial price guidance of 7.25% to 7.375% issued earlier on Wednesday. Saudi’s Al Rajhi Capital invites Al Rajhi Reit Fund unit holders to vote to increase total asset value of fund to maximum SAR 2.41bln from SAR 1.72bln by acquiring a new real estate assets. Saudi’s Arab Sea Information Systems board approves to complete requirements and conditions to move to main market. Saudi Paper Manufacturing posted Q3 net loss after zakat and tax SAR 24.2mln vs loss of SAR 37.3mln year ago. Q3 sales SAR 121.8mln vs SAR 114.3mln year ago. Kuwait Finance House has received the approval of central bank of Kuwait to acquire 100% of the capital shares of Ahli United Bank. Kuwait's Boubyan Bank posted Q3 net profit attributable to shareholders KWD 16.4mln vs KWD 14.6mln year ago. Q3 total operating revenue KWD 35.5mln vs KWD 34.3mln dinars year ago. Kuwait’s Al Mazaya Holding signed agreement with banks to restructure its debts and obtained KWD 7mln to be employed in various projects. National Bank of Oman shareholders approve capital raising plans which may take form of new issue of tier 2 capital in region of USD 130mln and new issue of additional tier 1 capital for bench mark size in region of USD 300mln. Bahrain M2 money supply up 11.5% YoY, while private sector credit up 5.6% YoY in August. The World Bank forecast on Thursday that Egypt's economy would grow by 5.8% this fiscal year, marginally lower than the government's target of 5.9% but in line with the bank's expectation six months ago. Egyptian Iron and Steel says will save about EGP 225mln in annual cost after gas price reduction. Egypt’s Al Ezz Dekheila Steel posted H1 consolidated net loss EGP 1.26bln vs profit of EGP 903mln year ago. Q2 consolidated net loss attributable EGP 249.7mln vs profit of EGP 703mln year ago. Q2 consolidated net sales EGP 11.13bln vs EGP 10.77bln year ago. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
5. # UAE FOCUS LIST - COMPANY DATA MCAP Company PRICE HIGH - LOW 52WH 52WL VALUATION TTM P/E DIV TTM P/B YLD (%)^ HISTORICAL RETURN 1M% 3M% 6M% ADCB 53,225 7.65 10.26 7.37 9.01 1.01 6.0% (7.9) (10.5) (15.5) (4.1) ADIB 19,177 5.28 5.31 3.46 8.23 1.08 5.1% 3.5 14.5 8.2 44.7 ADNIC 1,125 3.00 4.00 2.60 8.28 0.80 10.0% 9.1 (6.3) (14.3) (20.0) Agthia 2,214 3.69 5.00 3.17 11.94 1.16 4.1% 5.4 7.3 (5.4) (7.8) Air Arabia 6,160 1.32 1.32 0.90 NA 1.22 NA 8.2 24.5 30.7 37.6 Ajman Bank 1,974 0.94 0.99 0.82 10.27 0.78 3.7% 2.1 4.4 5.4 (1.1) Al Waha Capital 1,945 1.00 2.02 0.89 NA 0.60 7.5% (2.0) 6.4 (9.9) (46.8) Aldar Properties 16,512 2.10 2.37 1.43 9.36 0.69 6.7% (3.2) 6.6 21.4 21.4 Amanat Holdings 2,250 0.90 1.20 0.85 44.84 0.89 1.7% 0.3 (9.9) (10.9) (22.4) Amlak FiNAce (A EDm) (A ED) 12M% 704 0.47 0.60 0.25 NA 0.59 0.0% 46.6 66.9 35.5 (20.5) Arabtec 2,745 1.83 2.41 1.37 13.65 1.68 2.7% 15.1 15.8 (13.2) (0.5) Aramex 5,930 4.05 5.01 3.89 11.91 2.51 4.1% (3.6) (1.9) (12.2) 1.3 Bank of Sharjah 1,743 0.83 1.12 0.79 21.99 0.45 0.0% (3.8) (1.7) (10.4) (24.5) DAMAC Properties 5,494 0.91 2.13 0.84 14.79 0.39 NA (2.9) 0.9 (32.7) (53.7) Dana Gas 6,625 0.95 1.17 0.73 NA 0.69 5.8% (1.8) (1.3) 2.0 (18.4) Deyaar Development 2,063 0.36 0.48 0.29 18.48 0.46 0.0% 11.6 13.7 (0.8) (19.8) Dubai FiNAcial Market 7,120 0.89 0.96 0.65 65.97 0.91 0.0% (0.3) 24.5 13.7 (0.9) Dubai Investment 5,485 1.29 1.79 1.04 10.68 0.47 7.8% (3.0) 4.0 (8.1) (27.5) Dubai Islamic Bank 35,123 5.33 5.40 4.66 7.38 1.15 6.6% (0.2) 4.5 6.2 (0.2) DXB Entertainments 1,632 0.20 0.38 0.17 NA 0.49 0.0% (9.3) 4.1 (15.4) (43.6) Emaar Dev 16,280 4.07 5.02 3.26 4.70 1.97 12.8% (1.2) 1.2 11.9 (17.7) Emaar Malls 24,728 1.90 2.17 1.43 10.95 1.44 5.3% 0.5 (4.5) 15.0 5.6 Emirates Integrated Tele 25,158 5.55 5.80 4.88 14.79 2.99 6.3% (3.3) 7.1 8.0 11.4 Emirates NBD 73,365 13.20 14.45 8.25 6.18 1.05 3.0% (1.1) 19.5 10.0 42.7 907 0.39 0.64 0.36 NA 0.63 NA (3.5) (4.2) (19.6) (32.4) Etisalat 143,500 16.50 17.80 15.20 15.96 3.15 4.8% (0.0) 0.9 1.2 (1.0) First Abu Dhabi Bank 164,896 15.10 16.96 13.50 14.01 1.63 4.9% 0.7 1.6 0.0 1.8 3,164 0.88 1.35 0.73 8.90 0.78 3.7% (4.6) 0.8 (14.2) (35.2) Eshraq Investments GFH Gulf Navigation Holding 718 0.70 1.17 0.67 NA 0.81 0.0% (13.2) (13.0) (18.5) (24.6) 1,448 1.25 2.20 1.00 NA 1.42 0.0% 8.7 (20.9) (20.9) (37.5) 13,315 75.00 80.00 66.00 6.28 0.64 5.3% 2.7 0.0 (1.3) NA National Bank of Fujairah 9,232 4.99 4.99 2.72 14.84 1.72 1.3% NA 4.4 4.4 65.1 Tabreed 5,051 1.86 1.94 1.44 12.16 1.08 5.1% 7.5 11.4 24.0 20.0 RAK Bank 7,627 4.55 4.75 4.00 7.35 1.06 6.6% 1.1 1.1 8.3 12.3 892 0.45 0.62 0.39 6.49 0.23 0.0% (0.9) 1.4 0.9 (27.0) 1,486 1.57 2.24 1.42 8.64 0.63 9.1% (0.0) 1.9 (8.7) (26.7) 774 0.64 0.76 0.39 35.96 1.02 NA (5.9) (2.4) 29.8 3.1 Sharjah Islamic Bank 3,463 1.18 1.28 1.05 6.69 0.63 6.8% (1.7) 7.3 5.4 (0.8) SHUAA Capital 2,386 0.94 1.11 0.60 NA 1.28 NA (3.5) (3.0) 8.2 (12.1) 200 1.33 1.80 1.24 15.15 1.28 5.3% (5.7) (12.5) (13.1) (24.4) TAQA 4,247 0.70 1.16 0.64 12.71 0.96 0.0% (9.1) 1.4 (22.2) (38.1) Union Properties 1,326 0.31 0.69 0.28 NA 0.44 0.0% (6.1) (5.5) (19.7) (54.3) United Arab Bank 2,269 1.10 1.30 0.90 55.98 0.87 0.0% 10.1 (11.3) (7.6) (8.3) Julphar Mashreqbank RAK Properties RAK Ceramics SALAMA Takaful Emarat Insurance (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
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