UAE: Daily Market Trading Report - 14 January

Transcription

1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 3M 14 January 2020 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 5,114 0.6% 1.5% 0.5% 2.9% ADX 147 147 DFM 2,776 0.8% 2.0% -1.7% 9.4% Local 51% 63% -13% TASI 8,441 0.8% 5.4% 10.6% 1.8% Foreign 49% 37% 13% BHSEASI 1,602 0.1% 2.2% 5.4% 19.1% Institutional 65% 53% 12% EGX 13,699 -0.8% 2.5% -3.7% 1.3% Retail 35% 47% -12% Dow Jones 28,824 0.3% 2.7% 7.8% 20.5% DFM 245 245 S&P 500 3,265 0.7% 3.8% 10.7% 26.6% Local 33% 44% -11% Nasdaq 9,179 1.0% 6.2% 15.1% 33.0% Foreign 67% 56% 11% FTSE 100 7,618 0.4% 3.6% 5.1% 10.1% Institutional 65% 67% -2% 13,452 -0.2% 1.3% 7.5% 23.6% Retail 35% 33% 2% DAX CAC40 - - 6,036 0.0% 2.0% 6.5% 26.2% Total 392 392 Nikkei225 23,851 0.5% 1.9% 10.7% 18.3% Local 39% 51% -11% HIS 28,955 1.1% 4.6% 10.1% 8.6% Foreign 61% 49% 11% # Upcoming Corporate Actions & Events Date Company Event 13-Jan ADNIC BoD/General 15-Jan SHUAA BoD/General 16-Jan JULPHAR BoD/Restructuring 06-Feb KHCB BoD/Results 12-Feb MSCI Index 1Q20 Review Announcement 12-Feb GFH BoD/Results 13-Feb ITHMAAR BoD/Results 02-Mar MSCI Index 1Q20 Review Effective -
2. # KEY STORIES Gulf Navigation Holding board to meet on Jan 16 to discuss and consider potential sukuk issuance of AED 125mln GFH Financial Group has hired Societe Generale and Standard Chartered to act as global coordinators and joint lead managers for the issuance of five-year dollar sukuk, or Islamic bonds Amanat Holdings announced appointing Al Ramz Capital as a liquidity provider for its shares following the approval of the Dubai Financial Market Dubai issued 38,377 new business licences in 2019, a record growth of 90pct compared to 2018 Adnoc announced plans to reduce its greenhouse gas emissions by 25 per cent over the next 10 years as part of a comprehensive sustainability agenda Masdar is planning to develop a waste-to-energy plant in Australia for total cost of AUD 500mln (AED 1.2bln) DIFC announced that His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, in his capacity as the Ruler of Dubai, has enacted the Employment Law Amendment Law No. 04 of 2020. The Amendment Law introduces the new Qualifying Scheme workplace savings scheme within DIFC, replacing the current endof-service gratuity payment regime that has been in place since the inception of DIFC China Gezhouba says it plans to set up overseas branches in Umm Al-Quwain and Ivory Coast Moody’s said that GCC sovereigns’ 2020 outlook is negative due to slow fiscal reform progress, weak growth, and higher geopolitical risk. The pace of fiscal consolidation in 2020 is expected to be slow and most GCC countries have no significant new measures lined up as the focus on social stability and diversification increases Saudi’s Dr. Sulaiman Al Habib Medical Group plans an initial public offering next month, according to people familiar with the matter Bahrain’s Arcapita has acquired a controlling stake in Waste Harmonics, a waste management firm that caters to clients across the America Egypt’s Beltone Financial Holding plans to sell its 60% stake in New York-based brokerage Auerbach Grayson & Company to help stem losses Egypt’s Pioneers Holding board approves share swap ratio of one share against 4.099 shares of Giza General Contracting and Real Estate Investment, one share against 1.248 shares of United Company for Housing and Development, one share against 7.478 shares of El Saeed Contracting and Real Estate Investment, one share against 0.314 shares of Cairo for Housing and Development and one share against 2.872 shares of Electro Cable Egypt Egypt Free Shops posted H1 standalone net profit EGP 72.6mln vs EGP 72.9mln year ago Lebanon’s Bank Audi SAL is looking to sell its fully-owned Egyptian subsidiary Bank Audi SAE (Egypt), the potential sale is part of the Lebanese bank’s restructuring process, as per
3. source . However, Egypt's central bank denies receiving any request from Bank Audi to sell its Egyptian Unit # Key Global Trends/ Market Clues Asian shares hit a 7-month high, China’s yuan jumped and safe-harbour assets slipped on Tuesday, amid signs of goodwill between China and the United States, as the world’s two biggest economies prepared to sign a truce in their trade war. MSCI’s broadest index of Asia-Pacific shares outside Japan hit its highest since June in morning trade, driving world stocks to a record high. Japan’s Nikkei added 0.7% and hit its highest point in a month. Hong Kong’s Hang Seng rose to its highest since May and Shanghai blue chips scaled heights not touched since January 2018, though both later pared gains. Oil prices edged lower on Tuesday as receding Middle East tensions took some heat out of the market, with both Tehran and Washington desisting from any further escalation after this month’s clashes. Brent crude was down 8 cents, or 0.1%, at USD 64.12 per barrel by 0124 GMT. The US Treasury Department on Monday abruptly dropped its designation of China as a "currency manipulator" as the two countries tried to calm trade tensions. The move comes days before top officials of the world's two largest economies were due to sign a preliminary trade agreement to ease the 18-month tariff war. The trade war has slowed US manufacturing and caused a global economic slowdown. Sukuk market performance is expected to continue strongly in 2020 helped by robust global liquidity, a new fintech proposition, and initiatives by governments and standard setters, said S&P Global Ratings. Total sukuk issuance of USD 160bln- USD170bln this year, including USD 40bln-USD 45bln of foreign currency issuance. # UAE Stories Gulf Navigation Holding board to meet on Jan 16 to discuss and consider potential sukuk issuance of AED 125mln. GFH Financial Group has hired Societe Generale and Standard Chartered to act as global coordinators and joint lead managers for the issuance of five-year dollar sukuk, or Islamic bonds. The banks will market the bonds through a series of meetings starting on Jan. 15 in Asia, the United Arab Emirates and London. Emirates NBD Capital, KAMCO Investment, Mashreqbank, SHUAA Capital and Warba Bank will also serve as joint lead managers.
4. Amanat Holdings announced appointing Al Ramz Capital as a liquidity provider for its shares following the approval of the Dubai Financial Market . Dubai issued 38,377 new business licences in 2019, a record growth of 90pct compared to 2018. The past year also saw a decrease in the number of licences cancelled, compared to 2018, from 5,037 to 4,949, said the report, quoted by Wam news agency. The Abu Dhabi National Oil Company on Monday announced plans to reduce its greenhouse gas emissions by 25 per cent over the next 10 years as part of a comprehensive sustainability agenda. Adnoc currently captures most of its emissions through its Al Reyadah facility, which can capture 800,000 tonnes of carbon dioxide (CO2) and other greenhouse gas emissions annually. Masdar is planning to develop a waste-to-energy plant in Australia for total cost of AUD 500mln (AED 1.2bln). The Dubai International Financial Centre (DIFC) on Monday announced that His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, in his capacity as the Ruler of Dubai, has enacted the Employment Law Amendment Law No. 04 of 2020. The Amendment Law introduces the new Qualifying Scheme workplace savings scheme within DIFC, replacing the current end-of-service gratuity payment regime that has been in place since the inception of DIFC in 2004. The new regime commences on February 1 2020, from which employers will make mandatory monthly contributions to a professionally managed and regulated savings plan. China Gezhouba says it plans to set up overseas branches in Umm Al-Quwain and Ivory Coast. Moody’s said that GCC sovereigns’ 2020 outlook is negative due to slow fiscal reform progress, weak growth, and higher geopolitical risk. The pace of fiscal consolidation in 2020 is expected to be slow and most GCC countries have no significant new measures lined up as the focus on social stability and diversification increases. # GCC/ MENA Saudi’s Dr. Sulaiman Al Habib Medical Group plans an initial public offering next month, according to people familiar with the matter. The group appointed Jadwa Investment and Riyad Capital as advisers. Bahrain’s Arcapita has acquired a controlling stake in Waste Harmonics, a waste management firm that caters to to blue-chip clients across the United States, Canada and other North American countries. Egypt’s Beltone Financial Holding plans to sell its 60% stake in New York-based brokerage Auerbach Grayson & Company to help stem losses. Beltone, controlled by Egyptian billionaire Naguib Sawiris, believes a sale will help it return to profitability this year after losses since it bought the Auerbach stake in 2016. Egypt’s Pioneers Holding board approves share swap ratio of one share against 4.099 shares of Giza General Contracting and Real Estate Investment, one share against 1.248 shares of United Company for Housing and Development, one share against 7.478 shares of El Saeed Contracting and Real Estate Investment, one share against 0.314 shares of Cairo for Housing and Development and one share against 2.872 shares of Electro Cable Egypt. Egypt Free Shops posted H1 standalone net profit EGP 72.6mln vs EGP 72.9mln year ago. H1 standalone total revenue EGP 403.6mln vs EGP 366.9mln year ago. Lebanon’s Bank Audi SAL is looking to sell its fully-owned Egyptian subsidiary Bank Audi SAE (Egypt). The potential sale is part of the Lebanese bank’s restructuring process amid the severe economic crisis that Lebanon currently faces. However, Egypt's central bank denies receiving any request from Bank Audi to sell its Egyptian Unit. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
5. # UAE FOCUS LIST - COMPANY DATA MCAP Company PRICE HIGH - LOW TTM P/E TTM P/B YLD (%)^ HISTORICAL RETURN 3M% 6M% 8.00 10.26 7.37 9.66 1.03 5.8% 5.1 4.4 (6.5) (2.9) ADIB 20,012 5.51 5.54 4.11 9.02 1.09 4.9% 6.4 4.2 18.2 34.1 (23.1) ADNIC 52WL DIV 55,659 (A ED) 52WH VALUATION ADCB (A EDm) 1M% 12M% 1,125 3.00 3.90 2.60 8.02 0.77 10.0% 5.3 (3.2) (6.3) 37,500 3.00 3.15 2.00 17.31 11.60 7.0% 7.1 14.1 14.3 29.9 Agthia 2,022 3.37 4.15 3.17 11.96 1.04 4.5% (3.7) (6.4) 2.1 (16.6) Air Arabia 7,373 1.58 1.61 0.90 NA 1.43 NA 7.5 19.7 46.3 53.4 Ajman Bank 1,886 0.90 0.98 0.82 11.54 0.74 3.9% (1.3) (2.4) (0.7) 3.9 Al Waha Capital 1,808 0.93 1.88 0.89 NA 0.59 NA (1.8) (8.8) (1.1) (48.0) Aldar Properties 16,983 2.16 2.37 1.43 9.84 0.70 6.5% (0.9) 1.4 5.4 39.4 Amanat Holdings 1,960 0.78 1.12 0.75 37.64 0.77 1.9% (11.4) (13.8) (21.1) (25.3) ADNOC Dist Amlak Finance 728 0.49 0.64 0.25 NA 0.63 0.0% 14.7 (16.4) 71.4 25.3 Arabtec 1,815 1.21 2.28 1.15 NA 1.53 4.1% (9.0) (38.3) (27.1) (41.8) Aramex 5,095 3.48 5.01 3.38 10.21 2.07 4.7% (3.1) (14.5) (16.7) (13.0) Bank of Sharjah 1,722 0.82 1.00 0.78 NA 0.45 0.0% 3.9 0.2 (6.8) (17.9) DAMAC Properties 4,302 0.71 1.49 0.65 22.44 0.30 NA (10.9) (23.5) (22.1) (52.3) Dana Gas 6,436 0.92 1.10 0.80 NA 0.67 6.0% (1.0) (2.3) (3.2) (3.2) Deyaar Development 2,086 0.36 0.43 0.29 22.59 0.46 0.0% 0.3 2.3 15.3 (2.4) Dubai Financial Market 7,408 0.93 1.00 0.65 63.08 0.94 0.0% (4.2) 4.6 30.1 11.6 Dubai Investment 5,443 1.28 1.63 1.04 14.11 0.46 NA 0.8 (1.5) 1.6 (3.0) Dubai Islamic Bank 36,770 5.58 5.58 4.66 7.65 1.16 6.3% 4.3 5.3 9.0 9.8 DXB Entertainments 1,408 0.18 0.27 0.16 NA 0.46 0.0% (17.8) (13.3) (10.2) (32.8) Emaar Dev 15,400 3.85 4.91 3.26 4.43 1.72 13.5% 6.9 (5.9) (6.3) (6.1) Emaar Malls 24,597 1.89 2.17 1.43 10.59 1.38 5.3% 1.6 (0.5) (4.1) 9.9 Emaar Properties 29,283 4.09 5.53 3.85 4.70 0.56 3.7% 2.5 (11.9) (13.9) 0.7 Emirates Integrated Tele 25,067 5.53 5.80 5.00 15.27 3.05 6.3% 0.5 (0.4) 7.4 9.1 Emirates NBD 83,379 13.20 13.93 8.68 5.35 1.02 3.0% 4.8 4.1 22.8 50.4 Eshraq Investments 739 0.32 0.55 0.30 NA 0.51 NA (8.6) (19.3) (23.0) (35.1) Etisalat 142,975 16.44 17.80 15.20 15.82 3.21 4.9% (0.0) (0.2) 0.2 (3.1) First Abu Dhabi Bank 167,513 15.34 16.96 13.50 14.17 1.61 4.8% 1.5 0.7 2.3 5.6 3,015 0.83 1.11 0.78 9.77 0.72 3.8% (5.6) (3.9) (7.2) (10.8) 461 0.45 1.00 0.44 NA 0.53 0.0% (27.6) (35.4) (43.5) (45.5) 12,222 6.71 6.77 0.80 NM 11.93 NA 11.8 23.3 341.4 599.7 (53.0) GFH Gulf Navigation Holding IHC Julphar 1,132 0.98 2.07 0.77 NA 1.38 0.0% 14.9 (18.6) (38.2) 14,202 80.00 86.80 66.00 6.86 0.67 5.0% (1.7) 6.7 6.7 2.6 National Bank of Fujairah 9,232 4.99 4.99 3.88 NA NA 1.3% NA NA 4.4 17.0 Tabreed 5,187 1.91 1.95 1.44 11.85 1.08 5.0% 3.8 5.5 11.0 11.0 RAK Bank 8,046 4.80 5.00 4.00 7.43 1.07 6.3% 2.1 5.5 4.3 14.3 890 0.45 0.50 0.39 5.02 0.23 0.0% 3.5 (0.2) 4.2 (6.5) 1,505 1.59 1.99 1.42 8.72 0.63 9.0% 0.0 0.6 4.6 (7.3) 673 0.56 0.71 0.43 30.02 0.88 NA (4.3) (7.9) (16.4) 10.1 Sharjah Islamic Bank 3,727 1.27 1.28 1.05 7.06 0.50 6.3% 3.3 4.1 13.4 5.0 SHUAA Capital 2,130 0.84 1.05 0.60 NA 1.59 NA (15.9) (9.2) (12.6) 3.7 165 1.10 1.67 0.97 NA 1.19 6.4% 1.9 (8.3) (26.2) (32.9) TAQA 2,912 0.48 1.00 0.40 17.65 0.73 0.0% (15.8) (27.3) (33.2) (49.5) Union Properties 1,025 0.24 0.44 0.24 NA 0.35 0.0% (19.3) (22.9) (28.0) (42.3) United Arab Bank 2,331 1.13 1.30 0.89 NA 0.92 0.0% 14.1 13.0 (8.9) (5.8) Mashreqbank RAK Properties RAK Ceramics SALAMA Takaful Emarat Insurance (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
6. 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.