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UAE: Daily Market Trading Report - 13 August

IM Insights
By IM Insights
3 years ago
UAE: Daily Market Trading Report - 13 August

Takaful, Zakat, Sales


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  1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 3M 13 August 2020 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 4,360 -0.2% 1.0% 5.5% -14.5% ADX 189 189 - DFM 2,115 0.9% 1.4% 11.8% -25.5% Local 52% 36% 16% TASI 7,646 0.3% 2.9% 14.4% -10.6% Foreign 48% 64% -16% BHSEASI 1,315 0.5% 0.1% 6.1% -14.8% Institutional 56% 68% -12% EGX 10,922 0.0% -1.4% 3.2% -23.0% Retail 44% 32% 12% Dow Jones 27,977 1.1% 7.3% 17.7% 8.0% DFM 174 174 - S&P 500 3,380 1.4% 6.1% 17.8% 17.2% Local 55% 59% -4% Nasdaq 11,012 2.1% 3.7% 22.3% 40.0% Foreign 45% 41% 4% 6,280 2.0% 3.0% 4.8% -13.1% Institutional 35% 55% -20% 13,059 0.9% 3.4% 20.7% 11.8% Retail 65% 45% 20% - FTSE 100 DAX CAC40 5,073 0.9% 2.1% 13.4% -4.5% Total 363 363 Nikkei225 22,844 0.4% 2.5% 12.2% 10.4% Local 53% 47% 6% HIS 25,244 1.4% -1.9% 4.1% -2.2% Foreign 47% 53% -6% US Futures 3,370 0.0% 5.9% 18.4% 18.6% Europe Futures 3,356 -0.2% 1.8% 22.9% 2.5% # Upcoming Corporate Actions & Events Date Company Event 13-Aug DXBE BoD/Results 13-Aug DANA GAS BoD/Results 13-Aug ESHRAQ BoD/Results 13-Aug AMLAK BoD/Results 13-Aug ITHMAAR BoD/Results 13-Aug GFH BoD/Results 13-Aug UPP BoD/Results 13-Aug AMLAK BoD/Results 13-Aug ARTC BoD/General 02-Sep SALAMA AGM
  2. # KEY STORIES Emaar Properties reported 1H20 net income of AED 2.0bn, down 35% YoY. Revenues declined by 22% YoY to AED 9.0bn. The weak performance was attributed to Covid-19 and lockdown, impacting the tourism and hospitality segment severely in Dubai. The 1H20 profit also included a one-time gain of AED 2.3bn, generated from the sale of district cooling assets to Tabreed. Off-plan sales in 1H20 were down 66% YoY to AED 3.236bn, while sales backlog remained at AED 49.188bn. Emaar Development reported IH20 revenues of AED 4.8bn, down 22.8%. IH20 profit of AED 1.0bn, down 25.0% YoY Aldar reported net income for 2Q of AED 484mln, up 1.7%YoY. 2Q revenue AED 2.01bln, up 21%YoY Abu Dhabi Islamic Bank posted Q2 group net profit AED 317.9mln vs AED 630.1mln year ago. Q2 group net revenue AED 1.26bln vs AED 1.45bln year ago NMC Health secures USD 275mln but some creditors oppose deal – sources Shuaa Capital records AED 267mln net profit for 2Q20. 1H20 net profit of AED 5mln and EBITDA of AED 125mln. 1H20 net profit of AED 164mln and EBITDA of AED 284mln excluding unrealized mark-to-market losses on portfolio investments Julphar posted Q2 loss attributable AED 20.7mln vs loss of AED 94.8mn year ago. Q2 revenue from contracts with customers AED 169.7mln vs AED 89.2mln year ago Gulf Navigation posted H1 attributable loss of AED 51.1mln vs loss of AED 27.7mln year ago. H1 operating income AED 67.6mln vs AED 85.7mln year ago Union Insurance posted H1 net loss AED 9.4mln vs profit of AED 19.6mln year ago. H1 gross insurance premium AED 472.7mln vs AED 482.2mln year ago Al Dhafra Insurance posted Q2 net profit AED 19.1mln vs AED 18.7mln year ago. Q2 gross premiums written AED 75.9mln vs AED 76.4mln year ago Gulf Medical Projects posted H1 net profit attributable AED 18.4mln vs AED 20.2mln year ago. H1 revenue AED 228.7mln vs AED 268.5mln year ago Ras Al Khaimah for White Cement and Construction posted H1 net loss AED 0.8mln vs profit of AED 12.7mln year ago. H1 revenue AED 96.7mln vs AED 128.2mln year ago Al Fujairah National Insurance posted Q2 net profit AED 19.2mln vs AED 8.4mln year ago. Q2 insurance premium revenue AED 65.4mln vs AED 67.9mln year ago National Takaful Company posted Q2 net profit AED 14.3mln vs AED 3.1mln year ago. Q2 gross contribution written AED 75mln vs AED 76.8mln year ago Gulf Cement posted H1 net loss AED 48.4mln vs profit of AED 1.0mln year ago. H1 revenue AED 173.9mln vs AED 238.9mln year ago Saudi’s Maharah Human Resources posted quarterly sales SAR 352.5mln vs SAR 367.2mln year ago. Quarterly net profit after zakat and tax AED 49.4mln vs AED 72mln year ago Saudi’s National Medical Care Company posted quarterly net profit after zakat and tax SAR 25.8mln vs SAR 13.8mln year ago. Quarterly sales SAR 186mln vs SAR 169.9mln year ago
  3. Kuwait 's Jazeera Airways posted a net loss of KWD 3.9mln in 2Q20 compared to a net profit of KWD 4.8mln in the same quarter last year Oman has signed a one-year USD 2bln bridge loan with a group of international and regional banks Egypt will auction 600mln euros in euro-denominated T-bills on August 17 Egypt's Sodic posted Q2 consolidated net profit attributable EGP 40.1mln vs EGP 175mln year ago. Q2 consolidated total revenue EGP 644.9mln vs EGP 1.08bln year ago # Key Global Trends/ Market Clues Asia's stock markets followed Wall Street higher on Thursday, as investors returned to tech stocks, gold and selling dollars after steady virus figures and a surprising jump in U.S. inflation boosted sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2%, and gains in semiconductor makers drove Japan's Nikkei 1.9% higher to a six-month peak. The rises come after a tech rally left the S&P 500 within a whisker of a record closing high overnight, in a climate where even bad news is regarded as good news if it increases the chances of more stimulus to aid recovery. Rising fuel costs lifted U.S. consumer prices 0.6% last month, compared with expectations for 0.3%, leaving core inflation at 1.6% for the year to July. At the same time, the number of daily new COVID-19 infections in the United States seems to be stabilising around 55,000. S&P 500 futures traded flat. Crude oil prices eased slightly on Thursday but held most of their gains from the previous session after U.S. government data showed a fall in inventories, supporting the view that fuel demand is returning despite the coronavirus pandemic. Brent crude was down 8 cents at USD 45.35 a barrel by 0150 GMT, after a gain of around 2% in the previous session. West Texas Intermediate oil was down by 6 cents at USD 42.61 a barrel after gaining 2.6% on Wednesday. OPEC says its July output rose by 980,000 bpd to 23.17mbpd. OPEC said world oil demand will fall more steeply in 2020 due to the coronavirus pandemic and said next year's recovery faces large uncertainties, pointing to growing headwinds for the group and its allies in supporting the market. World oil demand will fall by 9.06mln barrels per day (bpd) this year, the Organization of the Petroleum Exporting Countries said in a monthly report, more than the 8.95mln bpd decline expected a month ago. "Crude and product price developments in the second half of 2020 will continue to be impacted by concerns over a second wave of infections and higher global stocks," OPEC said in the report. OPEC stuck to its forecast that in 2021 oil demand would rebound by 7mln bpd but said the view was subject to large uncertainties that may result in "a negative impact on petroleum consumption". # UAE Stories Emaar Properties reported 1H20 net income of AED 2.0bn, down 35% YoY. Revenues declined by 22% YoY to AED 9.0bn. The weak performance was attributed to Covid-19 and lockdown, impacting the tourism and hospitality segment severely in Dubai. The 1H20 profit also included a one-time gain of AED 2.3bn, generated from the sale of district cooling assets to Tabreed. Off-plan sales in 1H20 were down 66% YoY to AED 3.236bn, while sales backlog remained at AED 49.188bn. Emaar Development reported IH20 revenues of AED 4.8bn, down 22.8%. IH20 profit of AED 1.0bn, down 25.0% YoY. Aldar reported net income for 2Q of AED 484mln, up 1.7%YoY. 2Q revenue AED 2.01bln, up 21%YoY. Revenue growth was driven by robust demand for its prime developments and infrastructure-enabled land, while Aldar continued to earn steady fee income from its third-party development management business. The Asset Management business reported a 21% YoY decline in net operating income (NOI), with hospitality and retail properties temporarily closed for much of the period. Aldar 1H20 profit at AED 783mln vs AED 1,023mln a year ago.
  4. Adnoc Distribution reported profit for 2Q of AED 510 .8mln, down 14% YoY. 2Q revenue AED 3.02bln, down 45%YoY. 2Q EBITDA at AED 699mln, down 6.8% YoY. 1H profit AED 910mln, down 22% YoY and 1H EBITDA AED 1.42bln. Abu Dhabi Islamic Bank posted Q2 group net profit AED 317.9mln vs AED 630.1mln year ago. Q2 group net revenue AED 1.26bln vs AED 1.45bln year ago. As of end-June, customer deposits stand at AED 98.6bln, down 1.2%. Credit provisions and impairments for H1 2020 increased to AED 708.6mln from AED 345mln in H1 2019. NMC Health has secured loan commitments worth USD 275mln in a deal which would allow the lenders to improve their prospects of recovering money already owed by the United Arab Emirates troubled hospital operator, two sources said. But the financing, which offers beneficial terms to the debt providers, has created heated discussions among NMC lenders in recent days, with some creditors asking to be more involved in the process, said the sources, who are familiar with the matter. SHUAA Capital records AED 267mln net profit for 2Q20. 1H20 net profit of AED 5mln and EBITDA of AED 125mln. 1H20 net profit of AED 164mln and EBITDA of AED 284mln excluding unrealized mark-to-market losses on portfolio investments. The company continued progress on merger integration with 48% of AED 55 mi target synergies achieved. Legacy assets reduced by 38% since July 2019, releasing significant cash inflows. AuM at USD 13.0bln in 1Q20 vs USD 12.8bln in 1Q20. Julphar posted Q2 loss attributable AED 20.7mln vs loss of AED 94.8mn year ago. Q2 revenue from contracts with customers AED 169.7mln vs AED 89.2mln year ago. As of Q2, accumulated losses stand at AED 83.2mln, with accumulated losses to capital ratio 12.7%. The company said that it is focused on strategic areas of business as company divests from non-core subsidiaries. The company re-entered markets in KSA, Kuwait & Oman. Gulf Navigation posted H1 attributable loss AED 51.1mln vs loss of AED 27.7mln year ago. H1 operating income AED 67.6mln vs AED 85.7mln year ago. As of Q2, accumulated losses stand at AED 496.3mln, with accumulated losses to capital ratio 48.7%. Union Insurance posted H1 net loss AED 9.4mln vs profit of AED 19.6mln year ago. H1 gross insurance premium AED 472.7mln vs AED 482.2mln year ago. Al Dhafra Insurance posted Q2 net profit AED 19.1mln vs AED 18.7mln year ago. Q2 gross premiums written AED 75.9mln vs AED 76.4mln year ago. Gulf Medical Projects posted H1 net profit attributable AED 18.4mln vs AED 20.2mln year ago. H1 revenue AED 228.7mln vs AED 268.5mln year ago. Ras Al Khaimah for White Cement and Construction Materials posted H1 net loss AED 0.8mln vs profit of AED 12.7mln year ago. H1 revenue AED 96.7mln vs AED 128.2mln year ago Al Fujairah National Insurance posted Q2 net profit AED 19.2mln vs AED 8.4mln year ago. Q2 insurance premium revenue AED 65.4mln vs AED 67.9mln year ago. National Takaful Company posted Q2 net profit AED 14.3mln vs AED 3.1mln year ago. Q2 gross contribution written AED 75mln vs AED 76.8mln year ago. Gulf Cement posted H1 net loss AED 48.4mln vs profit of AED 1.0mln year ago. H1 revenue AED 173.9mln vs AED 238.9mln year ago. # GCC/ MENA Saudi’s Maharah Human Resources posted quarterly sales SAR 352.5mln vs SAR 367.2mln year ago. Quarterly net profit after zakat and tax AED 49.4mln vs AED 72mln year ago. Saudi’s National Medical Care Company posted quarterly net profit after zakat and tax SAR 25.8mln vs SAR 13.8mln year ago. Quarterly sales SAR 186mln vs SAR 169.9mln year ago. Kuwait's Jazeera Airways swung to a second-quarter loss as passenger traffic declined because of the Covid19 pandemic. The budget carrier posted a net loss of KWD 3.9mln in 2Q20 compared to a net profit of KWD
  5. 4 .8mln in the same quarter last year, it said in a statement on Wednesday. Second quarter operating revenue plummeted 70pct to KWD 7.7mln. Oman has signed a one-year USD 2bln bridge loan with a group of international and regional banks. The loan, which will be repaid with money raised from an international bond issuance, will bolster state coffers hit by low oil prices and the economic downturn caused by the coronavirus crisis. Egypt will auction 600mln euros in euro-denominated T-bills on Aug. 17 Egypt's Sodic posted Q2 consolidated net profit attributable EGP 40.1mln vs EGP 175mln year ago. Q2 consolidated total revenue EGP 644.9mln vs EGP 1.08bln year ago. Cancellations of EGP 320mln were recorded during H1, representing 17% of period’s gross contracted sales. Gross contracted sales for the quarter were EGP 1.02bln. Gross sales were negatively affected by the Covid-19 lockdown measures. Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian business
  6. # UAE FOCUS LIST - COMPANY DATA MCAP Company PRICE HIGH - LOW 3M% 6M% 12M% 9.00 3.82 9.64 0.67 7.5% (0.2) 25.9 (29.4) (35.4) ADIB 13,583 3.74 5.85 3.19 6.91 0.75 7.3% (0.8) 13.0 (28.6) (18.7) 1,927 3.38 3.70 2.60 5.42 0.88 8.9% 7.3 9.0 2.4 22.9 39,749 3.18 3.20 2.40 19.49 13.88 6.0% 6.7 14.8 10.7 25.3 Agthia 1,662 2.77 3.70 2.50 17.45 0.87 5.4% (3.8) (2.8) (10.3) (16.7) Air Arabia 5,273 1.13 1.61 0.87 10.51 1.29 8.0% (2.6) 10.8 (21.1) 1.7 Ajman Bank 1,323 0.63 0.97 0.50 35.80 0.53 0.0% 6.8 10.5 (27.5) (34.2) Al Waha Capital 1,859 0.96 1.08 0.62 NA 0.63 NA 33.5 31.1 1.7 1.7 Aldar Properties 13,916 1.77 2.37 1.35 8.04 0.58 8.2% (1.7) 1.7 (13.5) (14.3) Amanat Holdings 2,217 0.89 0.97 0.56 86.88 0.88 2.5% (0.2) 14.3 15.2 (4.7) 498 0.33 0.64 0.20 NA 0.69 0.0% (0.6) 0.9 (21.9) (1.8) Arabtec 1,441 0.96 2.05 0.44 NA 1.83 0.0% 32.4 51.8 29.9 (43.1) Aramex 5,153 3.52 4.25 2.00 12.04 2.05 4.7% 5.1 20.0 5.0 (11.6) Bank of Sharjah 1,113 0.53 0.90 0.53 NA 0.36 0.0% (9.6) (10.2) (34.2) (40.8) DAMAC Properties 5,142 0.85 0.98 0.36 NA 0.37 NA 0.2 46.6 33.4 (11.3) Dana Gas 4,841 0.69 1.04 0.53 8.37 0.50 7.9% 5.0 10.4 (18.3) (26.4) Deyaar Development 1,670 0.29 0.43 0.18 23.75 0.37 0.0% 2.8 15.6 (12.4) (13.5) Dubai FiNAcial Market 6,552 0.82 1.00 0.50 48.72 0.86 3.1% 1.9 23.5 (4.7) (7.1) Dubai Investment 4,847 1.14 1.39 0.98 9.52 0.41 NA (0.9) 9.9 (7.5) (8.9) Dubai Islamic Bank 27,876 3.85 5.86 3.04 6.74 0.76 9.1% (1.3) 15.6 (25.6) (18.7) ADNOC Dist Amlak FiNAce DXB Entertainments TTM P/E TTM P/B YLD (%)^ HISTORICAL RETURN 5.10 ADNIC 52WL DIV 35,482 (A ED) 52WH VALUATION ADCB (A EDm) 1M% 968 0.12 0.24 0.09 NA 0.33 0.0% (0.0) (13.6) (34.2) (46.9) Emaar Dev 8,480 2.12 4.43 1.79 3.14 0.88 0.0% (0.5) 7.6 (44.8) (50.1) Emaar Malls 17,699 1.36 2.00 0.98 7.74 0.96 0.0% (6.8) 18.3 (20.9) (29.9) Emaar Properties 19,331 2.70 5.43 1.90 3.12 0.36 0.0% (0.7) 11.1 (30.4) (48.8) Emirates Integrated Tele 23,163 5.11 6.35 4.33 16.69 2.80 6.7% 1.8 2.2 (11.3) (3.7) Emirates NBD 60,006 9.50 13.93 6.33 5.28 0.74 4.2% 7.0 12.4 (23.8) (11.2) 2.2 Eshraq Investments 953 0.41 0.43 0.16 NA 0.67 NA 75.2 66.0 30.6 Etisalat 143,666 16.52 17.14 11.02 16.30 3.17 4.8% (0.2) 11.1 9.1 8.2 First Abu Dhabi Bank 119,898 10.98 15.92 7.78 11.42 1.23 6.7% (1.3) (5.5) (22.4) (22.5) 2,096 0.58 0.93 0.45 6.66 0.52 5.9% 1.6 10.3 (32.4) (30.9) 494 0.49 0.84 0.28 NA 0.84 0.0% 2.5 33.2 10.2 66,043 36.26 38.00 2.06 NM 14.08 NA 21.6 36.0 178.9 GFH Gulf Navigation Holding IHC Julphar (38.9) 1,526.0 1,328 1.15 1.54 0.54 NA 2.35 0.0% (3.4) 74.1 37.8 (9.9) 12,072 68.00 86.80 62.00 8.76 0.57 5.9% 1.6 0.1 (3.4) (15.0) National Bank of Fujairah 9,535 4.98 4.98 3.75 NA NA 1.9% NA NA 3.3 7.8 Tabreed 5,377 1.98 2.22 1.58 10.80 1.11 5.3% 1.0 (1.0) (3.4) 13.1 RAK Bank 6,201 3.70 5.00 3.33 7.33 0.83 8.1% (1.3) 5.7 (17.7) (14.1) 770 0.39 0.48 0.33 6.90 0.20 10.4% 7.8 12.2 (2.5) (4.5) 1,232 1.24 1.81 1.24 13.95 0.55 11.5% (7.5) (14.5) (21.7) (14.8) 1.3 Mashreqbank RAK Properties RAK Ceramics SALAMA 770 0.64 0.70 0.30 12.47 0.97 NA 25.2 25.9 16.0 Sharjah Islamic Bank 3,513 1.14 1.29 0.95 6.94 0.47 4.2% 0.9 14.0 (3.5) 4.6 SHUAA Capital 1,648 0.65 1.04 0.40 1,083.33 1.13 NA 27.5 12.1 (22.0) (31.6) Takaful Emarat Insurance 219 1.46 1.46 0.97 NA 1.82 5.7% 9.0 2.1 10.6 2.8 157,404 1.40 1.52 0.40 NA 4.59 0.0% 37.3 113.7 95.3 90.5 Union Properties 1,424 0.33 0.39 0.15 NA 0.53 0.0% 14.5 23.9 72.0 (2.6) United Arab Bank 1,844 0.89 1.13 0.81 NA 1.04 0.0% - - (0.2) (12.4) TAQA (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
  7. Disclaimer This report was prepared by SHUAA Securities (“SS”) in and for the United Arab Emirates (“U.A.E.”). SS is a securities brokerage company regulated by the Emirates Securities and Commodities Authority (and neither an investment nor a financial advisory firm). The information contained in this report is given in summary and does not purport to be complete. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. Content of this report is provided solely for informational purposes and private circulation and should not be construed as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or any other financial product or instrument, or adopting any hedging or investment strategy and does not take into account your particular investment objectives, financial situation, tax implications or any other needs. Before acting on any information you should consider and confirm the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek professional financial advice. While based on information believed to be reliable, we do not guarantee and make no express or implied representation as to the accuracy of this report or complete description of the securities markets or developments referred to in this report. The information, contained in this report are as of the date indicated and are subject to change at any time without prior notice. This report may provide the addresses of, or contain hyperlinks to, websites. SS has not reviewed any such site and takes no responsibility for the content of the same. Such address or hyperlink is provided solely for your convenience and information and the content of any such website does not in any way form part of this document. Accessing such website or following such link through this report or SS’s website shall be at your own risk. The stated price of any securities mentioned in this report is as of the date indicated and is not a representation made by SS that any transaction can be effected at this price. This report is for UAE distribution and only under such circumstances as may be permitted by applicable law. The information contained in this report is not intended nor can it be construed as intended to be directed to any US persons (being any US Citizens, US Green Card Holders, or Resident Aliens subject to US income taxes for IRS purposes) unless stated otherwise. Neither SS nor its officers, directors or shareholders or other persons shall be liable for any direct, indirect, incidental or other damages including loss of profits arising in any way from the information contained in this report. This report is a mere update intended solely for the use by the intended recipients and the content of it may not be reproduced, redistributed or copied in whole or in part for any purpose without SS’s prior express consent.