UAE: Daily Market Trading Report - 12 December

Transcription

1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 12 December 2019 3M 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 5,040 0.4% -0.9% -1.3% 4.7% ADX 294 294 - DFM 2,714 1.0% 1.5% -5.9% 7.0% Local 70% 74% -4% TASI 8,134 0.8% 2.7% 3.5% 3.8% Foreign 30% 26% 4% BHSEASI 1,555 0.3% 2.6% 0.9% 18.0% Institutional 67% 91% -24% EGX 13,427 -0.6% -9.1% -10.6% 6.0% Retail 33% 9% 24% Dow Jones 27,911 0.1% 0.8% 2.9% 14.5% DFM 230 230 S&P 500 3,142 0.3% 1.8% 4.7% 19.1% Local 45% 56% -10% Nasdaq 8,654 0.4% 2.2% 5.9% 23.1% Foreign 55% 44% 10% FTSE 100 7,216 0.0% -1.5% -1.7% 6.0% Institutional 63% 48% 15% 13,147 0.6% -0.4% 6.4% 21.9% Retail 37% 52% -15% DAX CAC40 - 5,861 0.2% -0.6% 4.3% 21.9% Total 524 524 - Nikkei225 23,392 -0.1% 0.3% 8.3% 10.6% Local 59% 66% -7% HIS 26,645 0.8% -1.0% -1.9% 3.4% Foreign 41% 34% 7% # Upcoming Corporate Actions & Events Date Company Event 12-Dec ADCB BoD/General 12-Dec ETISALAT BoD/General 12-Dec AGTHIA BoD/General 12-Dec BOS BoD/General 15-Dec UAB BoD/General 15-Dec DFM BoD/General 17-Dec DIB G Assembly/Noor Acquisition 18-Dec CBD BoD/General 22-Dec GFH G Assembly 23-Dec FTSE Index 4Q19 Review Effective Date 29-Dec ESHRAQ G Assembly/Cross listing
2. # KEY STORIES Damac Chairman reiterates call for a halt in new property construction projects National Investor board approves to carry out company's restructure in order to right size cost of financials and functioning operations. Board recommends capital decrease by AED 200mln to be returned to shareholders and also recommends to distribute AED 50mln as special dividend after obtaining authorities and shareholders’ approval Invest Bank, acting as a nominee on behalf of A&K International Investment sold 150.9mln shares or nearly 29.9% stake of Ras Al Khaimah Cement UAE October CPI -1.9% YoY and -0.2 % MoM UAE Ministry of Economy expects GDP to reach 2% in 2019 Swiss cruise line MSC Cruises signed a long-term agreement with Dubai ports operator DP World for preferential berthing rights at the emirate's Mina Rashid Port Catalyst Partners - the USD 1bln (AED 3.67bn) fund backed by Mubadala Investment Company has made its first investments totalling USD 225mln in three global firms Mubadala says it remains optimistic about Softbank's Vision Fund, and is in process of evaluating Softbank Vision Fund 2 Abu Dhabi Ports Company said it was investing AED 3.8bln (USD 1.03bln) in an expansion of Khalifa Port which will help increase capacity Saudi Finance Minister said that Aramco's listing will boost the kingdom's efforts to diversify from oil as the bulk of proceeds will be injected in domestic projects, while the global buzz surrounding the deal will help lure foreign capital. Aramco's shares surged the maximum permitted 10% on their Riyadh stock market debut on Wednesday, following the statecontrolled oil giant's record USD 25.6bln initial public offering (IPO). Tax revenue, including VAT, amounted to 5.5pct at AED 25bln of the UAE's total public revenue for 2018 - Ministry of Finance figures The Saudi government will not introduce new tax or additional duties during 2020 - Saudi Minister of Finance Saudi Arabia might issue new international bonds as soon as January, as part of plans to raise USD 32bln worth of debt next year – Senior Finance Ministry official Saudi’s Al Alamiya obtains SAMA final approval on group credit life insurance product Egypt’s Medinet Nasr board approves contract to develop land on partnership adjacent to Taj City and board approves credit facility from the United Bank for a value of EGP 150mln Egyptian Exchange disclosed that Arab Investment buys 122.6mln shares in Arabia Investments Holding for gross value EGP 37mln
3. # Key Global Trends/ Market Clues The Federal Reserve left interest rates unchanged and signaled it would keep them on hold through 2020 amid a solid economy, sticking to the sidelines during an election year. Asian stocks rose on Thursday to the highest in a month after the Federal Reserve signalled rate settings were likely to remain accommodative, but the imminent UK election and a deadline for Sino-U.S. trade talks kept investors cautious. That helped MSCI's broadest index of Asia-Pacific shares outside Japan climb 0.8% to the highest since Nov. 11. Japan's Nikkei stock index rose 0.18% and U.S. stock futures edged up 0.1%. Oil prices edged higher on Thursday with the market mood switching to relief as OPEC forecast a supply deficit next year, from doom and gloom over data showing a surprise increase in U.S. crude inventories. Brent futures rose 24 cents, or 0.4% to USD63.96 a barrel by 0242 GMT, after skidding 1% on Wednesday on the U.S. stocks build-up. OPEC on Wednesday pointed to a small deficit in the oil market next year due to restraint by Saudi Arabia even before the latest supply pact with other producers takes effect, suggesting a tighter market than previously thought. In a monthly report, OPEC said demand for its crude will average 29.58mln barrels per day (bpd) next year. That points to a 30,000bpd deficit if OPEC keeps pumping at November's rate. The Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, have since Jan. 1 implemented a deal to cut output by 1.2 million bpd to support the market. At meetings last week, OPEC+ agreed to a further cut of 500,000 bpd as of Jan. 1 2020. The Asian Development Bank (ADB) said on Wednesday it has lowered its growth forecasts for developing Asia this year and the next, as a weaker outlook for China and India indicated softer economic activity elsewhere in the region. The bank trimmed its growth forecast for developing Asia to 5.2pct in 2019 and 2020, from 5.4pct and 5.5pct previously.
4. # UAE Stories Damac Properties Chairman Hussain Sajwani repeated his calls for a halt to all new property development projects to help alleviate oversupply in the property market and to stabilise prices. Sajwani said that a halt in new projects for a maximum 14 months would have an immediate and positive effect on the real estate market, bringing prices back up and restoring confidence within the market. National Investor board approves to carry out company's restructure in order to right size cost of financials and functioning operations. Board recommends capital decrease by AED 200mln to be returned to shareholders and also recommends to distribute AED 50mln as special dividend after obtaining authorities and shareholders’ approval. Invest Bank, acting as a nominee on behalf of A&K International Investment sold 150.9mln shares or nearly 29.9% stake of Ras Al Khaimah Cement. UAE October CPI -1.9% YoY and -0.2 % MoM. Economic growth in the UAE is expected to reach 2pct this year, according to a new report released by the UAE Ministry of Economy. GDP growth in the country was recorded at 1.7pct in 2018 and is expected to continue on an upward trajectory on the back of an increase in oil output, with production and export capacity expected to reach about 3.1mln barrels per day in 2019. Swiss cruise line MSC Cruises signed a long-term agreement with Dubai ports operator DP World for preferential berthing rights at the emirate's Mina Rashid Port. Around 180,000 cruise passengers are likely to be carried by MSC Cruises to Dubai this season, with the Swiss firm expecting a further increase following the agreement. Catalyst Partners - the USD 1bln (AED 3.67bn) fund backed by Mubadala Investment Company has made its first investments totalling USD 225mln in three global firms. The investments include USD 100mn in Avenue Capital Group for a new global private credit strategy, USD 100mn in a new aircraft leasing company with Sirius Aviation Capital and USD 25mn in Freedom Asset Management to support the expansion of its wealth management product range. Mubadala says it remains optimistic about Softbank's Vision Fund, a senior executive said on Wednesday. "The SoftBank Vision Fund is doing well, we are three years into it. We continue to be optimistic about them," Ibrahim Ajami, head of Mubadala Venture Capital said at a conference. Mubadala has invested USD 15bln in Softbank's Vision Fund I and has been in talks with Softbank about investment in a second technology fund. Abu Dhabi Ports Company said it was investing AED 3.8bln (USD 1.03bln) in an expansion of Khalifa Port which will help increase capacity. It will invest AED 2.2bln in the development of South Quay and Khalifa Port Logistics and AED 1.6bln in expanding Abu Dhabi Terminals, the statement said. Tax revenue, including VAT, amounted to 5.5pct of the UAE's total public revenue last year while oil revenues and the profits of public joint-stock companies accounted for 36.1pct and 32.9pct respectively, according to official Ministry of Finance figures. Total revenues in the government budget amounted to AED 456bln (USD 124bln) in 2018, including tax revenues worth AED 25bln (USD 6.8bln). # GCC/ MENA Saudi Aramco's listing will boost the kingdom's efforts to diversify from oil as the bulk of proceeds will be injected in domestic projects, while the global buzz surrounding the deal will help lure foreign capital, the finance minister said. Aramco's shares surged the maximum permitted 10% on their Riyadh stock market debut on Wednesday, following the state-controlled oil giant's record USD 25.6bln initial public offering (IPO). The Saudi government will not introduce new tax or additional duties during 2020, according to the Saudi Minister of Finance, Mohammed Al Jadaan. Saudi Arabia might issue new international bonds as soon as January, as part of plans to raise USD 32bln worth of debt next year – Senior Finance Ministry official. Saudi’s Al Alamiya obtains SAMA final approval on group credit life insurance product.
5. Egypt ’s Medinet Nasr board approves contract to develop land on partnership adjacent to Taj City and board approves credit facility from the United Bank for a value of EGP 150mln. Egyptian Exchange disclosed that Arab Investment buys 122.6mln shares in Arabia Investments Holding for gross value EGP 37mln. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
6. # UAE FOCUS LIST - COMPANY DATA MCAP Company PRICE HIGH - LOW TTM P/E TTM P/B YLD (%)^ HISTORICAL RETURN 3M% 6M% 7.58 10.26 7.37 9.16 0.98 6.1% (1.8) (10.8) (12.2) (5.8) ADIB 18,741 5.16 5.49 3.78 8.45 1.02 5.2% 3.0 1.2 13.9 31.3 (26.0) ADNIC 52WL DIV 52,737 (A ED) 52WH VALUATION ADCB (A EDm) 1M% 12M% 1,069 2.85 3.90 2.60 7.62 0.74 10.5% NA 9.6 (16.2) 34,500 2.76 2.86 2.00 15.92 10.67 7.6% 4.2 5.9 5.9 20.0 Agthia 2,076 3.46 5.00 3.17 12.28 1.07 4.3% 1.5 (0.9) (3.6) (10.1) Air Arabia 6,907 1.48 1.51 0.90 NA 1.34 NA 2.1 19.4 37.0 49.5 Ajman Bank 1,911 0.91 0.98 0.82 11.70 0.75 3.8% 0.1 (2.6) (3.2) 5.6 Al Waha Capital 1,836 0.94 2.00 0.89 NA 0.60 NA (5.3) (9.2) (5.4) (44.5) Aldar Properties 17,141 2.18 2.37 1.43 9.93 0.71 6.4% (5.2) (2.2) 16.6 43.4 Amanat Holdings 2,223 0.89 1.20 0.80 42.68 0.87 1.7% (0.0) (2.3) (11.1) (19.2) ADNOC Dist Amlak Finance 665 0.44 0.64 0.25 NA 0.58 0.0% (12.3) 39.7 57.1 25.5 Arabtec 1,980 1.32 2.28 1.20 NA 1.67 3.8% (26.3) (23.3) (17.5) (30.5) Aramex 5,256 3.59 5.01 3.38 10.53 2.13 4.6% 0.3 (13.3) (16.3) (14.1) Bank of Sharjah 1,657 0.79 1.12 0.79 NA 0.43 0.0% (2.6) (9.7) (14.8) (23.4) DAMAC Properties 4,864 0.80 1.77 0.73 25.38 0.34 NA (4.1) (14.7) (14.5) (51.9) Dana Gas 6,373 0.91 1.10 0.73 NA 0.66 6.0% 2.4 (5.8) (5.7) 6.1 Deyaar Development 2,069 0.36 0.43 0.29 22.40 0.46 0.0% 0.8 11.9 10.5 4.7 Dubai Financial Market 7,736 0.97 1.00 0.65 65.87 0.99 0.0% 12.4 7.1 34.3 27.2 Dubai Investment 5,400 1.27 1.63 1.04 14.00 0.46 NA 1.6 (3.1) (3.1) (2.3) Dubai Islamic Bank 35,452 5.38 5.40 4.66 7.38 1.12 6.5% 2.3 0.6 6.1 5.3 DXB Entertainments 1,648 0.21 0.30 0.17 NA 0.54 0.0% 0.5 (8.8) (0.0) (19.8) Emaar Dev 14,400 3.60 4.91 3.26 4.15 1.61 14.4% (3.7) (13.0) (8.4) (19.8) Emaar Malls 24,076 1.85 2.17 1.43 10.37 1.35 5.4% (4.6) (3.6) (5.6) 7.6 Emaar Properties 28,639 4.00 5.53 3.85 4.59 0.55 3.8% (4.1) (20.0) (12.7) (2.2) Emirates Integrated Tele 24,704 5.45 5.80 4.92 15.05 3.01 6.4% 0.9 (3.5) 7.1 10.3 Emirates NBD 78,957 12.50 13.93 7.95 5.07 0.97 3.2% 10.6 (3.6) 13.7 45.7 825 0.36 0.55 0.33 NA 0.57 NA (0.8) (13.2) (13.2) (28.9) Etisalat 143,323 16.48 17.80 15.20 15.86 3.21 4.9% (0.5) 0.4 5.1 (3.1) First Abu Dhabi Bank 165,766 15.18 16.96 13.50 14.02 1.60 4.9% (0.7) 0.7 2.7 9.8 3,205 0.89 1.15 0.73 10.39 0.77 3.6% 2.4 (2.2) (3.7) (20.6) 637 0.63 1.03 0.60 NA 0.73 0.0% (9.9) (21.3) (22.4) (36.9) 10,947 6.01 6.19 0.80 NM 10.68 NA 20.2 44.1 528.0 472.4 (59.5) Eshraq Investments GFH Gulf Navigation Holding IHC Julphar 985 0.85 2.09 0.85 NA 1.20 0.0% (29.8) (27.4) (46.2) 12,782 72.00 80.00 66.00 6.18 0.60 5.6% (10.0) (1.4) (3.4) - National Bank of Fujairah 9,232 4.99 4.99 3.60 14.69 1.67 1.3% NA NA 15.8 43.6 Tabreed 5,078 1.87 1.94 1.44 11.60 1.06 5.1% 4.5 10.0 13.3 23.8 RAK Bank 7,878 4.70 5.00 4.00 7.27 1.05 6.4% (1.1) 4.4 (1.1) 15.8 860 0.43 0.51 0.39 4.85 0.22 0.0% (2.5) (5.5) (1.6) (9.3) 1,505 1.59 1.99 1.42 8.75 0.64 9.0% 0.0 1.3 3.9 (12.1) 9.8 Mashreqbank RAK Properties RAK Ceramics SALAMA 691 0.57 0.71 0.39 30.83 0.91 NA (1.6) (15.5) (4.5) Sharjah Islamic Bank 3,610 1.23 1.28 1.05 6.84 0.48 6.5% (0.8) 0.8 10.8 9.8 SHUAA Capital 2,531 1.00 1.05 0.60 NA 1.89 NA 5.5 0.3 7.2 17.1 Takaful Emarat Insurance 171 1.14 1.76 0.97 NA 1.23 6.1% (11.6) (18.0) (28.8) (32.5) TAQA 3,452 0.57 1.10 0.52 20.92 0.87 0.0% (14.9) (22.7) (32.2) (42.5) Union Properties 1,300 0.30 0.45 0.28 NA 0.44 0.0% 1.0 (7.1) (12.4) (27.2) United Arab Bank 2,042 0.99 1.30 0.90 NA 0.81 0.0% (10.0) (1.0) (20.2) (20.8) (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
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