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UAE: Daily Market Trading Report - 18 November

IM Insights
By IM Insights
2 months ago
UAE: Daily Market Trading Report - 18 November


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  1. Morning Report 18 November 2022 Market Stats UAE Trading Summary Indices Close Chg . 1M Chg. ADX 10,389 -0.6% 7% 2% 23% 25% DFM TASI QSI BKM MSX BHSEASI EGX DJI S&P 500 Nasdaq FTSE DAX CAC40 Nikkei225 HIS MSCI EM MSCI Asia US Fut. 3,334 11,142 12,213 5,694 4,486 1,865 12,516 33,546 3,947 11,145 7,347 14,266 6,576 27,931 18,323 942 152 3,960 3,900 -0.3% -0.1% -0.6% 0.2% 1.0% 0.1% 1.4% 0.0% -0.3% -0.4% -0.1% 0.2% -0.5% -0.3% 1.5% -1.3% -0.7% 0.1% 0.7% -1% -4% -3% 9% -1% 0% 23% 11% 7% 4% 6% 13% 9% 4% 9% 9% 11% 7% 11% -4% -12% -13% -2% -3% -2% 24% -1% -8% -14% -2% 5% 1% -4% -9% -7% -6% -6% 4% 4% -1% 5% -3% 9% 4% 5% -8% -17% -29% -1% -10% -8% -3% -23% -24% -21% -17% -10% 2% -6% 2% -7% 11% 4% 9% -7% -16% -30% 1% -12% -8% -6% -30% -27% -24% -16% -11% EU Fut. 3M Chg. YTD Chg. 1Y Chg. AEDm Buy Sell Net ADX 1,979 1,979 - Local Foreign Institutional Retail DFM Local Foreign Institutional Retail Total Local Foreign 78% 22% 67% 33% 471 57% 43% 47% 53% 2,450 74% 26% 77% 23% 57% 43% 471 52% 48% 70% 30% 2,450 72% 28% 1% -1% 11% 11%- Notes: TASI (KSA), QSI (Qatar), BKM (Kuwait), MSX(Oman), BHSEASI (Bahrain), EGX (Egypt), HSI (Hong Kong). Last Trading Day's Top Short Positions Company Short Interest (Short shares/Out. shares) Close (AED) Change (%) 52WH High – Low 52WL 0.130% 0.075% 0.059% 0.50 2.79 1.37 2.2 (2.1) 0.7 0.88 3.38 1.81 0.43 2.68 1.24 Eshraq RAKCEC Waha Upcoming Corporates Actions & Events Date Company Event 18-Nov 18-Nov 21-Nov 21-Nov 21-Nov 21-Nov 23-Nov 23-Nov 24-Nov 06-Dec EIBANK Ajman Bank Yahsat NBQ DEYAAR RPM DANA ASNIC DEWA Fidelity United BoD/General BoD/General BoD/General BoD/General General Assembly General Assembly/Dividend BoD/General BoD/General BoD/General General Assembly 5% -5% 23% 23% 2% -2%
  2. # KEY STORIES AD Ports announced acquisition of Noatum, a global integrated logistics platform for total purchase consideration of AED 2.5bln Mashreq bank sold USD 500mln in Tier 2 bonds at 7.95% Dubai Islamic Bank and Al Ramz Corporation announced a strategic partnership to leverage capital markets services SHUAA Capital, Ellington Properties and Sol Properties partner to develop prime waterfront property on Palm Jumeirah ADNOC Logistics & Services closes Zakher Marine International acquisition Fitch affirmed BBB+ rating for RAKBANK with stable outlook. This indicates that the expectations of default risk are currently low UAE and Jordan have signed a MoU meant to enhance cooperation in the field of renewable energy UAE on Nov 16 announced 237 new Covid-19 cases and 214 recoveries. The tally takes total cases in UAE to 1,041,874 with 1,020,976 recoveries and 2,348 deaths Saudi Aramco affiliate S-Oil to build one of world’s largest petrochemical crackers in South Korea worth USD 7bln Saudia Group and Avilease sign leasing agreement for 20 new aircrafts Saudi Alkhorayef Water and Power Technologies announces sign off contracts worth SAR 228mln for operation and maintenance of water networks Saudi’s Molan Steel Company IPO price range set at SAR 18 – SAR 24 per share -Reuters Saudi Al-Baha Investment & Development subsidiary has purchased a land. The transaction value SAR 24mln Kuwait’s Commercial bank of Kuwait reported 3Q22 net loss attributable of KWD 2.5mln versus profit of KWD 21.7mln in the same period last year Kuwait’s Educational Holding Group reported 4Q22 net profit attributable of KWD 1.2mln versus KWD 815,457 in the same period last year Egypt's remittances from Egyptian workers abroad were USD 2.2bln in August, down from USD 2.4 billion in July – Central Bank Egypt’s Elsewedy Electric generated consolidated net profits of EGP 3.33bln in the 9M22, up by 32.66% YoY from EGP 2. 51bln Egypt’s Arabian Cement reported 9M22 standalone profit after tax of EGP 244.7mln versus loss of EGP 24.5mln in the same period last year # Key Global Trends/ Market Clues The dollar rose and equity markets slid after hawkish remarks from Federal Reserve officials reminded investors a less aggressive monetary policy is unlikely with U.S. employment data still showing a tight labor market. Nagging recession and higher interest rate worries also rattled European markets, and the pound tumbled as Britain hoped to put its disastrous recent fiscal experiment behind it with a more austere-looking budget. Market expectations for the Fed's peak terminal rate in May and June edged above 5%. But by the end of 2023 the market is pricing in a terminal rate that declines to 4.555% on expectations growth will slow with inflation. MSCI's gauge of stocks across the globe shed 0.65% while the pan-European STOXX 600 index lost 0.42% but was up 3.9% for the month due to better-than-feared earnings despite worries of a recession in
  3. the euro zone . On Wall Street, the Dow Jones Industrial Average fell 0.02%, the S&P 500 lost 0.31% and the Nasdaq Composite dropped 0.35%, spurred by fears the Fed would over tighten. U.S. data showed unemployment benefits claims fell last week, indicating the labor market is still tight. Expectations of higher rates strengthened the dollar, which plunged 3.7% last week. Oil prices fell more than 3%, with demand squeezed by mounting COVID-19 cases in China and fears of more aggressive hikes in U.S. interest rates. Brent crude fell USD 3.08 to settle at USD 89.78 a barrel, down 3.3%. U.S. West Texas Intermediate WTI crude slid USD 3.95, or 4.6%, to settle at USD 81.64 per barrel. The dollar also rose as investors digested U.S. economic data. A stronger dollar makes dollar-denominated oil more expensive for holders of other currencies. China reported rising daily COVID-19 infections and Chinese refiners have asked to reduce Saudi crude volume in December, Reuters has reported, while also slowing Russian crude purchases. While China's COVID case load is smaller than that of other countries, the world's largest crude importer maintains stringent policies to quash early outbreaks, dampening fuel demand. Further, Poland and NATO on Wednesday said a missile that crashed inside the country was probably a stray fired by Ukraine's air defences and not a Russian strike, easing fears the Russia-Ukraine war could widen. Oil gained support from official figures showing U.S. crude stocks fell by a bigger than expected 5mln barrels in the latest week. Supply is also tightening in November as OPEC+, implement their latest output controls to support the market. # UAE Stories AD Ports announced that it has acquired Noatum, a global integrated logistics platform with a presence in 26 countries and LTM revenue and EBITDA of AED 6.91bln (EUR 1.80bln) and AED 555mln (EUR 145mln), respectively. The total purchase consideration (Enterprise Value) for 100% ownership amounts to AED 2.5bln (EUR 660mln), implying an LTM EV/EBITDA of 4.6x. This value and earnings accretive acquisition, which significantly broadens AD Ports Group’s global footprint and positions it among the leading logistics and freight forwarding companies in the world, will be fully funded through a new acquisition loan. Mashreq bank sold USD 500mln in Tier 2 bonds, a bank document showed, after a Saudi lender brought the region back to the international debt markets the previous day. The bonds, which have a maturity of 10 years and are non-callable for 5 years, were sold at 7.95%, tightened from initial guidance of about 8.25% after drawing more than USD 1.4bln of demand. Dubai Islamic Bank and Al Ramz Corporation announced today a strategic partnership to leverage capital markets services and expand financial offerings to customers. Considering this partnership, Dubai Islamic Bank will now provide brokerage and related services to its clients through Al Ramz Capital, a subsidiary of the Al Ramz Corporation, where the bank will also offer its banking services to their customers as part of this arrangement. The brokerage service was earlier provided through its subsidiary Dubai Islamic Financial Services (DIFS). SHUAA Capital psc through its real estate development arm, Northacre, and Sol Properties, the real estate development arm of Bhatia Group, have signed an agreement with Ellington Properties, to develop a new residential project on the iconic Palm Jumeirah. The partnership is a strategic alliance that brings together leading players in the investment and real estate industries to work on an iconic project that will feature exquisitely designed spaces for luxury living. ADNOC Logistics & Services closes Zakher Marine International acquisition. Zmi will continue operating as a standalone entity under ADNOC L&S.
  4. Fitch affirmed BBB + rating for RAKBANK with stable outlook. This indicates that the expectations of default risk are currently low. The capacity for payment of financial commitments considered adequate, but adverse business or economic conditions are more likely to impair this capacity. UAE and Jordan have signed a MoU meant to enhance cooperation in the field of renewable energy. The memo stipulates that both sides shall cooperate in the research of possible investment and development in wind energy projects with a production capacity of two gigawatts, enhance expertise exchange and technology transfer in the field of green energy, and boost cooperation to develop training programmes for young Jordanian experts and engineers on green energy projects. UAE on Nov 16 announced 237 new Covid-19 cases, bringing the total confirmed cases in the country to 1,041,874. At the same time, 214 more patients have recovered from the virus, taking the tally of recoveries in the UAE to 1,020,976, UAE's Ministry of Health and Prevention said. It has reported 0 death from Covid-19 during the past 24 hours. The nationwide death toll stands at 2,348. # GCC/MENA Saudi Aramco affiliate S-Oil to build one of world’s largest petrochemical crackers in South Korea. The USD 7bln Shaheen project aims to convert crude oil into petrochemical feedstock. The project will be first commercialization of Aramco and Lummus technology’s TC2C thermal crude to chemicals technology. Located at S-Oil’s existing site in Ulsan, new plant planned to have capacity to produce up to 3.2mln tons of petrochemicals annually. New plant includes a facility to produce high-value polymers. Saudi aramco- project is expected to start in 2023 and be completed by 2026. Steam cracker is expected to process by-products from crude processing, including naphtha and off-gas, to produce ethylene, plant is also expected to produce propylene, butadiene and other basic chemicals. Saudia Group and Avilease sign leasing agreement for 20 new aircrafts. Agreement will see Avilease deliver 20 airbus A320NEO aircraft to be operated on long-term leases by Flydeal, Saudia group's low-cost carrier. The agreement will take Avilease's portfolio to 32 aircraft. Saudi Alkhorayef Water and Power Technologies announces sign off contracts of operation and maintenance of water networks in Jeddah with National Water. The contract is valued at SAR 228mln. The contract is for operation and maintenance of a water sector for 60 months and the financial impact will start in 3Q22. Saudi’s Molan Steel Company IPO price range set at SAR 18 – SAR 24 per share -Reuters Saudi Al-Baha Investment & Development subsidiary has purchased a land. The transaction value SAR 24mln. Subsidiary buys Industrial land in Riyadh, on which a building consisting of three administrative floors and a warehouse built expected impact of transaction on company and its operations rise in investment real estate with non-current assets. Kuwait’s Commercial bank of Kuwait reported 3Q22 net loss attributable of KWD 2.5mln versus profit of KWD 21.7mln in the same period last year. 3Q22 total operating revenue recorded KWD 36.8mln versus KWD 31.3mln in the same period last year. Kuwait’s Educational Holding Group reported 4Q22 net profit attributable of KWD 1.2mln versus KWD 815,457 in the same period last year. 4Q22 total operating revenue recorded KWD 2.2mln versus KWD 1.5mln in the same period last year. Egypt's remittances from Egyptian workers abroad were USD 2.2bln in August, down from USD 2.4 billion in July – Central Bank
  5. Egypt ’s Elsewedy Electric generated consolidated net profits of EGP 3.33bln in the 9M22, up by 32.66% YoY from EGP 2. 51bln.The net profits attributable to the parent company's shareholders grew to EGP 3.09bln from EGP 2.29bln, while the net profits attributable to minority interests leaped to EGP 244.79mln from EGP 224.49mln. Likewise, the revenues went up to EGP 62.57bln in the 9M22 period, compared to EGP 40.88bln in the prior-year period. Egypt’s Arabian Cement reported 9M22 standalone profit after tax of EGP 244.7mln versus loss of EGP 24.5mln in the same period last year. 9M22 standalone sales revenue recorded EGP 3.33bln versus EGP 1.57bln in the same period last year. *Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian business
  6. # UAE Focus List MCAP PRICE (AEDm) (AED) 52WH 52WL PE PB (%)^ 1M% 3M% YTD% 12M% ADCB 65,956 9.48 11.30 8.10 12.58 1.24 3.9% 5.1 (4.1) 15.1 20.0 ADIB 33,487 9.22 10.46 5.92 11.44 1.58 3.4% 3.0 (0.8) 38.8 49.0 3,363 5.90 7.63 5.70 10.02 1.30 6.8% (1.7) (3.9) (7.0) 7.5 ADNOC Dist. 54,500 4.36 4.88 3.80 18.79 18.02 4.7% 4.1 (4.4) 7.1 8.1 ADNOC Drill* 54,240 3.39 3.92 2.97 20.75 5.48 4.4% (1.7) (5.6) 4.0 - AD Ports Company ADNIC HIGH-LOW VALUATION Div. TOTAL RETURN ** 29,064 5.71 6.87 3.22 34.39 1.52 - 4.2 12.0 - - Agthia 3,538 4.47 5.71 4.20 NM 1.28 3.7% (2.8) (10.3) (9.2) (18.0) Air Arabia 9,800 2.10 2.36 1.36 7.35 1.44 4.0% 4.0 (7.9) 52.6 43.7 Ajman Bank Aldar Alpha Dhabi 1,594 0.76 0.91 0.66 11.50 0.64 - 5.9 5.3 (6.7) (3.9) 34,989 4.45 5.79 3.92 12.46 1.19 3.4% 3.0 (9.9) 14.8 9.0 275,000 27.50 30.50 23.78 NA NA - 10.6 14.6 0.7 5.8 Amanat 2,113 0.85 1.22 0.82 18.82 0.78 7.1% (7.3) (11.2) (22.6) (23.3) Aramex 5,344 3.65 4.45 3.52 30.55 2.10 3.6% (2.1) (4.4) (8.6) (8.6) ASM 10,040 10.04 15.20 8.89 NM 1.48 - 1.4 3.1 (27.8) (33.2) Borouge* 81,156 2.70 3.27 2.63 14.5 4.45 - (1.1) (10.5) - - BOS 1,100 0.50 0.64 0.45 - - - - - (19.4) (16.7) Dana Gas 6,429 0.92 1.26 0.91 8.80 0.74 8.7% (2.0) (1.4) (5.7) (6.1) 117,500 2.35 3.05 2.34 19.19 1.29 5.3% (4.0) (6.3) - - DEWA* Deyaar 2,267 0.52 0.73 0.44 17.48 0.51 - 7.5 (7.4) (19.6) (25.0) DFM 12,560 1.57 2.95 1.36 NM 1.59 1.9% 9.0 (15.2) (44.7) (43.1) DIC 9,610 2.26 2.64 1.80 5.81 0.76 5.3% (0.0) (5.7) 26.4 23.2 DIB 41,852 5.78 6.63 5.02 8.44 1.03 4.3% (3.2) (3.8) 12.2 9.0 DU 25,611 5.65 7.28 5.63 20.43 3.03 3.7% (3.7) (9.3) (12.2) (6.8) Easy Lease 1,110 37.00 61.90 24.00 25.09 9.73 - (0.3) (4.6) 27.6 4.9 Emaar Dev. 17,760 4.44 5.32 4.02 4.80 1.02 - (2.0) (2.6) 1.6 (3.9) Emaar Pro. 50,305 6.15 6.60 4.45 7.08 0.77 2.4% 0.5 3.0 30.2 24.3 ENBD 83,063 13.15 15.50 11.80 7.85 0.94 3.8% 0.4 (5.8) (0.1) (4.7) 1,603 6.41 9.46 5.30 NM 2.55 - 10.5 1.9 (19.9) (28.7) Etisalat 220,202 25.32 39.06 22.66 23.59 5.38 3.2% 7.5 (9.2) (18.1) (7.2) FAB 191,124 17.30 24.06 17.02 13.75 1.70 2.8% - (14.7) (5.0) (9.2) 37,771 4.55 6.11 3.40 7.12 5.52 8.8% (14.8) (15.8) 42.3 - 3,730 0.99 1.34 0.88 10.06 0.97 4.4% 10.1 (10.9) (12.5) (15.3) ESG Fertiglobe* GFH Ghitha 17,093 70.75 123.00 24.00 NA 8.26 - (1.0) (18.7) 157.3 115.8 734,036 403.00 410.00 149.00 54.61 17.51 - 12.3 17.2 165.1 166.5 Invictus 4,637 4.14 6.50 3.50 - - - 15.6 - - - Julphar 1,340 1.16 1.91 1.15 - 1.39 - (7.2) (12.1) (37.0) (36.3) Mashreq 20,061 100.00 119.00 62.10 6.05 0.91 1.0% (3.4) 29.9 25.8 50.7 Multiply 54,320 4.85 4.94 1.51 NA 2.75 - 32.9 140.1 163.6 NA NMDC IHC 20,625 25.00 34.96 12.36 17.13 3.44 - 4.8 (20.1) 91.7 91.7 Palms Sports 1,569 10.46 14.94 8.64 12.79 3.84 - 3.6 (2.2) (14.4) (13.4) RAK Bank 7,795 4.65 5.40 4.19 7.03 0.90 4.8% (3.1) (3.1) 3.3 (1.5) RAK Pro. 1,462 0.73 0.97 0.56 47.01 0.35 - (1.1) 0.1 (5.2) (6.5) RAK Cer. 2,772 2.79 3.38 2.68 NM 1.31 7.2% (4.1) (7.0) 4.8 4.4 RPM 1,168 5.84 12.68 5.69 15.97 4.42 - (8.2) (26.7) (39.5) NA SIB 6,132 1.99 2.12 1.65 9.82 0.80 4.0% 0.5 5.3 6.2 13.7 Shuaa 1,040 0.41 0.83 0.35 - 0.85 - 3.3 (16.0) (40.1) (47.0) Tabreed 8,849 3.11 3.52 2.27 14.72 1.41 1.9% (2.8) 9.1 29.0 23.2 TAQA 427,250 3.80 4.17 1.13 54.24 6.19 1.3% 55.7 205.4 198.0 212.1 Waha 2,664 1.37 1.81 1.24 10.19 0.77 5.5% (0.7) 3.0 (13.9) (16.3) Yahsat * 6,441 2.64 2.92 2.51 28.46 2.14 6.1% 0.8 1.9 2.2 (1.4) (Source Bloomberg) ^ Current dividend yield based on latest dividend declaration. * Expected dividend. ** Including dividend
  7. Disclaimer This report has been issued by International Securities for informational purposes only . This report is not and should not be construed as an offer or the solicitation of an offer to purchase or subscribe or sell any investment or subscribe to any investment management or advisory service. Recipients should not base their investment decisions on this report and should make their own investigations, and obtain independent advice, as appropriate. International Securities has based this document on information obtained from publicly available information, and sources it believes to be reliable without being independently verified for their accuracy or completeness. It makes no guarantee, representation or warranty as to its accuracy or completeness and accepts no responsibility or liability in respect thereof or for any reliance placed by any person on such information. All opinions expressed herein are subject to change without notice. This report may not be reproduced or circulated without the prior written consent of International Securities. International Securities owns the intellectual property rights and any other material contained in this report. International Securities is regulated by the United Arab Emirates Securities and Commodities Authority under license number 20200000017. International Securities is a member of the Abu Dhabi Securities Exchange, Dubai Financial Market and NASDAQ Dubai.