UAE: Daily Market Trading Report - 11 August

Transcription

1. Morning Report 11 August 2022 UAE Trading Summary Market Stats Close Chg . 1M Chg. ADX 10,198 0.8% 11% 3% 20% 35% DFM TASI QSI BKM MSX BHSEASI EGX DJI S&P 500 Nasdaq FTSE DAX CAC40 Nikkei225 HSI MSCI EM MSCI Asia US Fut. EU Fut. 3,394 12,431 13,569 5,853 4,652 1,881 9,965 33,310 4,210 12,855 7,507 13,701 6,523 27,819 19,611 997 160 4,222 3,759 0.3% 0.8% 0.4% -0.7% 0.0% -1.0% 0.0% -0.2% -0.4% 2.9% 0.3% 1.2% 0.5% 0.4% 0.8% 0.0% 0.2% 0.3% 0.2% 9% 9% 12% 3% 13% 0% 14% 5% 6% 10% 4% 5% 8% 5% -10% 0% 1% 10% 8% -6% -8% 1% -8% 12% -5% -8% 2% 3% 10% 4% 1% 7% 6% 0% -1% 0% 8% 4% 6% 10% 17% -1% 13% 5% -17% -10% -14% -18% 2% -14% -9% -3% -16% -19% -17% -11% -12% 21% 10% 24% 8% 16% 16% -8% -7% -7% -13% 5% -13% -4% 0% -26% -23% -20% -5% -11% Indices 3M Chg. YTD Chg. 1Y Chg. AEDm Buy Sell Net ADX 1,418 1,418 - Local Foreign Institutional Retail DFM Local Foreign Institutional Retail Total Local Foreign 71% 29% 78% 22% 352 49% 51% 64% 36% 1,771 67% 33% 83% 17% 74% 26% 352 55% 45% 48% 52% 1,771 77% 23% -11% 11% 5% -5% -6% 6% 16% -16% -10% 10% Notes: TASI (KSA), QSI (Qatar), BKM (Kuwait), MSX(Oman), BHSEASI (Bahrain), EGX (Egypt), HIS (Hong Kong). Last Trading Day's Top Short Positions Company AD Ports Eshraq RAK Ceramics Short Interest (Short shares/Out. shares) 0.039% 0.027% 0.024% Close (AED) 4.95 0.54 2.99 Upcoming Corporates Actions & Events Date 11-Aug 11-Aug 11-Aug 11-Aug 11-Aug 12-Aug 14-Aug 15-Aug 29-Aug Company Event EMAAR BoD/Result Julphar BoD/Result Emirates Insurance BoD/Result Dartakaful BoD/Result MSCI EM Index Review Announcement Date AD Ports BoD/Result Bildco BoD/Result WAHA Capital BoD/Result ADCB GAM Change (%) 2.5 (1.5) 1.4 52WH 5.85 0.88 3.38 High - Low 52WL 3.22 0.47 2.66
2. # KEY STORIES IHC expects to increase its takeover activity, including in India and Turkey, as global market turbulence has created "a buyers' market" DEWA reported consolidated turnover of AED 12.1bln and net profit of 3.3bln in 1H22 Air Arabia reported Q2 net profit of AED 160mln compared to AED 10mln for 2Q21 GFH Group reported net profit attributable to shareholders of USD 23.06mln for 2Q22, up 10.2% YoY, compared to USD 20.9mln for 2Q21 Dubai Investments reported 2Q22 net profit of AED 161.5mln vs. 178.3mln a year ago on total income of AED 786.3mln vs 1.1bln Aramex reported 2Q22 profit of AED 44.6mln on revenue of AED 1.5bln Shuaa Capital reported 2Q22 net loss of AED 169.9mln on net operating revenues of AED 63.5mln Invest Bank reported 2Q22 loss of AED 27.1mln vs loss of AED 45.3mln a year ago on net interest income of AED 11.5mln vs AED 28.4mln a year ago Al Ain Ahlia Insurance reported 1H21 net profit of AED 32.4mln vs AED 36.0mln a year ago on gross premium income of AED 590.1mln vs AED 709.7mln a year ago Dubai Refreshment reported 2Q22 net profit of AED 20.7mln vs AED 26.8mln a year ago on revenues of AED 185.2mln vs AED 163mln a year ago New UAE visas to come into force from next month UAE on Aug 09 announced 889 new Covid-19 cases and 816 recoveries. The tally takes total cases in UAE to 1,001,445 with 980,178 recoveries and 2,338 deaths Saudi Aramco and South Korean steel conglomerate SeAH Group to set up steel project at SPARK Saudi PIF's investment firm takes stakes worth USD 1.3bln in four Egyptian firms Saudi Airlines Catering reported 1H22 net profits after Zakat and tax of SAR 78.8mln vs. net losses of SAR 47.5mln in 1H21 Saudi GASCO reported 2Q22 net profit after zakat and tax of SAR 31.8mln and sales of SAR 472.5mln Saudi ACWA Power announced start of operation for Umm Al Guwain IWP Kuwait Combined Group Contracting signs a tender contract to design and implement remaining works of main water line in Zayed city Egypt inflation spikes to 13.6%, up from 13.2% in June, as food, fuel prices rises Egypt EGAL reported FY21-22 net profit after tax of EGP 2.4bln vs. EGP 28.3mln in FY 2021, revenues grew to EGP 14.5bln compared to EGP 11.4bln, respectively Egypt MNHD reported 1H22 net profit of EGP 231.1mln compared to EGP 228.6mln in 1H21 ADIB Egypt reported 1H22 consolidated net profit after tax of EGP 1.0bln vs EGP 680.2mln in 1H21, on net interest income of EGP 2.2bln vs EGP 1.7bln a year ago # Key Global Trends/ Market Clues Asian shares tracked Wall Street higher on Thursday after a softer-than-expected U.S. inflation report encouraged bets of less aggressive rate hikes from the Federal Reserve, while the dollar remained bruised after its biggest plunge in five months. U.S. consumer prices were unchanged in July compared with June, when they rose a monthly 1.3%. The July result was lower than expectations due to a sharp drop in the cost of petrol, causing markets to reposition on hopes that inflation was peaking. MSCI's broadest index of Asia-Pacific shares
3. outside Japan rose 1 .0% in early Asia trade, driven by a 1.2% jump in resources-heavy Australia, a 1.4% gain in South Korea and a 1.2% advance in Hong Kong. Gains in Chinese shares were more subdued. Blue chips rose 0.5% as new COVID-19 lockdowns in more Chinese cities, including the eastern export hub of Yiwu, dented sentiment. Oil prices fell in early Asian trade on Thursday as traders anticipated more supply of crude entering the market coupled with weaker demand. Brent crude futures fell by 53 cents, or 0.5%, to USD 96.87 a barrel by 0005 GMT, while U.S. TWI futures fell 61 cents, or 0.7%, to USD 91.32. U.S. crude oil stocks rose by 5.5mln barrels in the most recent week, the U.S. Energy Information Administration said, more than the expected increase of 73,000 barrels. Gasoline product supplied rose in the most recent week to 9.1mln barrels per day, though that figure still shows demand down 6% over the past four weeks compared with the year-ago period. # UAE Stories IHC expects to increase its takeover activity, including in India and Turkey, as global market turbulence has created "a buyers' market". IHC is aiming for publicly listed companies in growth markets, Syed Basar Shueb said, adding that it was also looking in South America and Indonesia. DEWA reported consolidated turnover of AED 12.1bln and net profit of 3.3bln in 1H22. Net profits were up 33% YoY majorly due to 6.3% growth in electricity demand and 6.4% growth in water demand in 1H22. Total power generation during the first half of 2022 was 23,274,283 mwh, up 6.3% YoY. Air Arabia reported Q2 net profit of AED 160mln compared to AED 10mln for 2Q21. It fell well short of the mean estimate of AED 237mln from analysts. Turnover more than doubled to AED 1.1bln, compared to AED 496mln in the corresponding period last year. More than 2.7mln passengers flew with Air Arabia between March and June 2022 across the carrier’s five hubs, nearly 200% higher YoY. The airline’s average seat load factor increased by 13% to 79%. GFH Group reported net profit attributable to shareholders of USD 23.06mln for 2Q22, up 10.2% YoY, compared to USD 20.9mln for 2Q21. Major contributions included income generated from the placement of the Group’s global investments, commercial banking business and sustainable infrastructure platform. Earnings per share for the second quarter was US cents 0.67 compared to US cents 0.68 for the comparative quarter of 2021. Dubai Investments reported 2Q22 net profit of AED 161.5mln vs. 178.3mln a year ago on total income of AED 786.3mln vs 1.1bln. Aramex reported 2Q22 profit of AED 44.6mln on revenues of AED 1.5bln. On group level, the gross profit margins have remained stable for 1H22 periods. Shuaa Capital reported 2Q22 net loss of AED 169.9mln on net operating revenues of AED 63.5mln. The Group continues to focus on deleveraging with repayments of AED 188mln in 1H22. The cost-income ratio was 90% in 2Q22 higher than the 73% in 1Q22. Invest Bank reported 2Q22 loss of AED 27.1mln vs loss of AED 45.3mln a year ago on net interest income of AED 11.5mln vs AED 28.4mln a year ago. Al Ain Ahlia Insurance reported 1H21 net profit of AED 32.4mln vs AED 36.0mln a year ago on gross premium income of AED 590.1mln vs AED 709.7mln a year ago. Dubai Refreshment reported 2Q22 net profit of AED 20.7mln vs AED 26.8mln a year ago on revenues of AED 185.2mln vs AED 163mln a year ago. New UAE visas to come into force from next month. A significantly expanded Golden Visa scheme, the new fiveyear Green residency, a multiple-entry tourist visa and job hunting entry permits are among the several residency reforms that will take effect next month. These new visas and entry permits are part of the largest entry and residency reforms adopted in the UAE. UAE on Aug 10 announced 889 new Covid-19 cases, bringing the total confirmed cases in the country to 1,001,445. At the same time, 816 more patients have recovered from the virus, taking the tally of recoveries in the UAE to 980,178, UAE's Ministry of Health and Prevention said. It has reported no deaths from Covid-19 during the past 24 hours. The nationwide death toll stands at 2,338. # GCC/MENA Saudi Aramco and South Korean steel conglomerate SeAH Group to set up steel project at SPARK. SeAH Group said the joint venture, SeAH Gulf Special Steel Industries (SGSI), will accelerate the expansion of the group in the Middle East. The project will be established in King Salman Energy Park (SPARK), a new megaproject under construction and located between Damman and Al-Ahsa in Saudi Arabia’s Eastern Province. In September of last year, SeAH Changwon agreed on an investment of USD 230mln to jointly set up a seamless stainless steel
4. pipe production plant with Aramco-owned Saudi Arabian Industrial Investments Company (Dussur), the Saudi Arabian Public Investment Fund and Saudi Basic Industries Corp. Saudi PIF's investment firm takes stakes worth USD 1.3bln in four Egyptian firms. The four companies are Abu Qir Fertizilers and Chemical Industries, Misr Fertilizers Production Co., Alexandria Container and Cargo Handling and E-Finance for Financial and Digital Investments, according to a statement on Egypt's planning ministry's website on Wednesday. Saudi Airlines Catering reported 1H22 net profits after Zakat and tax of SAR 78.8mln vs. net losses of SAR 47.5mln in 1H21. The company generated sales worth SAR 808.1mln during 1H22, an annual leap of 57.4% from SAR 513.4mln in 1H21. EPS of the company stood at SAR 0.96 in 1H22, vs. SAR 0.58 in 1H21. During 2Q22 the firm reported net profits worth SAR 43.5mln, compared to losses of SAR 17.4mln in 2Q21. The sales jumped by 60.8% to SAR 413.4mln in 2Q22 from SAR 257.1mln in 2Q21. Saudi GASCO reported 2Q22 net profit after zakat and tax of SAR 31.8mln and sales of SAR 472.5mln. The company saw lower investment income by SAR 13.0 million and higher operating expenses by SAR 1.0mln. The gross profit increased by SAR 3.0mln due to increase in revenues. Saudi ACWA Power announced start of operation for Umm Al Guwain IWP. The company owns a net stake of 40% in Umm Al Guwain IWP which has a capacity of 681.9 thousand cubic meter/day desalinated potable wate. The financial impact pertaining to final operating phase of project is expected from 3Q22 financial results onwards. Kuwait Combined Group Contracting signs a tender contract to design and implement remaining works of main water line in Zayed city, for a contract value of AED 159.9mln and contract period of 592 days. Egypt inflation spikes to 13.6%, up from 13.2% in June, as food, fuel prices rise. On a month-on-month basis, the inflation rate increased by 1.3%. The jump to the highest level in three years was due to higher food and transport fuel prices. Food and beverages saw a 22.7% rise on an annual basis, while transport was 17% higher. Egypt, the world's biggest wheat buyer, imports nearly 80% of its wheat from the Black Sea region. The RussiaUkraine conflict has hit shipments of the grain and caused supply bottlenecks and surging prices. The Egypt's fuel pricing committee raised gaoline prices by 2.3% on average in July during a quarterly review. The devaluation of the pound by 14% in March also had an effect on local prices. Egypt EGAL reported FY21-22 net profit after tax of EGP 2.4bln vs. EGP 28.3mln in FY 20-21, revenues grew to EGP 14.5bln compared to EGP 11.4bln, respectively. Egypt MNHD reported 1H22 net profit of EGP 231.1mln compared to EGP 228.6mln in 1Q21. The EPS recorded was EGP 0.106 for 1H22 compared to EGP 0.117 for 1H21. The company’s revenues soared to EGP 1.8bln in 1H22, a jump of 93.2% compared to EGP 954.6mln a year ago. ADIB Egypt reported 1H22 consolidated net profit after tax of EGP 1.0bln vs EGP 680.2mln in 1H21, on net interest income of EGP 2.2bln vs EGP 1.7bln a year ago. *Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian business
5. # UAE Focus List Company MCAP PRICE HIGH-LOW VALUATION Div. TOTAL RETURN ** (AEDm) (AED) 52WH 52WL PE PB (%)^ 1M% 3M% YTD% ADCB 62,408 8.97 11.30 7.29 11.91 1.17 4.1% 9.3 (13.1) 8.9 26.7 ADIB 32,688 9.00 10.46 5.40 13.56 1.60 3.5% 12.5 5.3 35.5 69.9 3,494 6.13 7.63 5.20 9.90 1.28 6.5% (1.9) (8.5) (3.3) 17.7 ADNOC Dist. 58,500 4.68 4.74 3.80 21.97 16.56 4.4% 10.1 13.3 12.3 12.2 ADNOC Drill.* 57,920 3.62 3.92 2.77 22.48 5.53 4.1% 7.7 0.8 8.7 - AD Ports 25,196 4.95 5.85 3.22 29.81 1.42 - (2.4) (4.8) - (16.2) ADNIC Agthia Air Arabia Ajman Bank Aldar 12M% 3,910 4.94 7.07 4.20 NM 1.40 3.3% (5.2) 8.1 (2.3) 10,593 2.27 2.36 1.31 10.84 1.69 3.7% 14.1 3.2 64.9 70.8 1,550 0.74 0.91 0.64 12.00 0.61 - 5.6 (7.1) (10.4) (4.0) 38,606 4.91 5.79 3.92 14.17 1.33 3.1% 12.6 (12.6) 26.6 19.5 239,800 23.98 30.00 23.78 NA NA - (3.1) (11.8) (12.2) (19.2) Amanat 2,353 0.94 1.27 0.89 20.96 0.87 6.4% 3.1 (9.5) (13.7) (9.8) Aramex 5,769 3.94 4.80 3.50 31.16 2.15 3.3% 8.8 3.7 (0.8) 8.4 ASM 9,840 9.84 16.94 9.56 NM 1.45 - (4.5) (24.9) (29.2) (34.4) Alpha Dhabi Borouge* 92,578 3.08 3.27 2.78 16.5 5.08 5.2% 6.6 2.7 - - BOS 1,166 0.53 0.76 0.49 - - - - - (14.5) (3.6) Dana Gas 6,995 1.00 1.27 0.88 5.52 0.81 8.0% - (11.5) (2.1) 21.3 DEWA* 127,500 2.55 3.05 2.48 20.82 1.37 4.9% 0.8 (7.3) - - Deyaar 2,232 0.51 0.73 0.37 21.43 0.50 - 12.6 (18.5) (20.4) 32.7 DFM 13,920 1.74 3.05 0.98 NM 1.77 1.7% 13.7 (31.8) (38.0) 66.2 DIC 10,502 2.47 2.64 1.63 15.04 0.86 4.9% 13.8 0.8 34.1 46.2 DIB 43,227 5.97 6.63 4.90 9.03 1.10 4.2% 9.9 (6.0) 15.5 23.8 DU 27,696 6.11 7.28 5.67 22.74 3.20 3.4% 7.6 (4.0) (4.5) (3.6) Easy Lease 1,113 37.10 66.85 24.00 25.73 10.66 - (7.2) (28.0) 27.9 6.9 Emaar Dev. 17,680 4.42 5.32 3.70 5.03 1.14 - 7.8 (11.6) 1.1 18.2 Emaar Pro. 46,543 5.69 6.47 3.91 7.67 0.73 2.6% 10.7 (6.6) 19.1 44.2 ENBD 86,853 13.75 15.50 11.80 9.33 1.02 3.6% 16.0 (3.5) 4.8 6.0 1,500 6.00 11.80 3.65 NM 2.51 - (7.7) (24.1) (25.0) 60.0 Etisalat 244,206 28.08 39.06 22.34 26.08 5.18 2.8% 10.7 (11.0) (9.2) 19.5 FAB 220,952 20.00 24.06 16.39 14.87 1.98 2.5% 9.1 (6.4) 9.8 23.9 44,661 5.38 5.95 2.92 9.42 5.28 7.4% 18.5 0.6 58.7 NA ESG Fertiglobe* GFH 4,364 1.12 1.34 0.69 11.84 1.05 4.0% 10.9 (5.9) (0.9) 52.2 20,222 83.70 123.00 10.40 NA 10.46 - 0.1 (17.9) 204.4 609.3 633,708 348.00 349.70 141.10 69.43 26.01 - 20.8 46.2 128.9 140.0 1,560 1.35 2.32 1.20 24.44 1.64 - 3.8 2.3 (26.6) (26.2) Mashreq 17,052 85.00 85.00 53.98 7.36 0.84 1.2% 6.3 11.1 6.9 60.1 Multiply 23,744 2.12 2.35 1.51 NA 2.25 - 19.1 6.5 15.2 NA NMDC 24,585 29.80 34.96 10.40 20.94 4.27 - 2.8 4.9 128.5 179.0 Palms 1,539 10.26 21.48 9.24 14.71 4.10 - 4.5 (19.1) (16.0) (12.3) RAK Bank 8,045 4.80 5.40 3.85 8.18 0.97 4.7% 6.7 (4.0) 6.7 21.5 RAK Pro. 1,352 0.68 0.97 0.56 12.61 0.33 - 4.0 (11.1) (12.3) (2.3) RAK Cer. 2,971 2.99 3.38 2.66 NM 1.38 6.7% 10.3 7.9 8.6 8.7 RPM 1,548 7.74 20.00 7.05 21.17 5.86 - (2.6) (27.8) (19.8) NA (33.0) Ghitha IHC Julphar Salama 640 0.53 0.87 0.50 22.65 0.82 - (6.9) (22.0) (28.4) SIB 5,763 1.87 2.12 1.65 9.83 0.76 4.3% 10.0 (2.6) (0.2) 17.9 Shuaa 1,311 0.52 0.83 0.47 - 0.91 - 5.1 (16.5) (24.5) (32.9) (0.0) Tabreed 7,995 2.81 2.92 2.27 14.92 1.32 2.1% (1.1) 15.6 16.6 TAQA 145,040 1.29 1.53 1.13 22.33 2.23 3.7% 6.6 (5.4) 0.7 5.6 Waha 2,590 1.30 1.91 1.24 11.40 0.75 5.8% (6.5) (13.9) (18.3) (23.2) Yahsat * 6,490 2.66 2.91 2.46 20.78 2.02 5.9% 3.9 0.8 (0.1) 2.5 (Source Bloomberg) ^ Current dividend yield based on latest dividend declaration. * Expected dividend. ** Including dividend
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