UAE: Daily Market Trading Report - 19 December

Transcription

1. Integrated Securities Morning Report # Market Stats Indices 1M 3M YTD 19 December 2018 1Y A EDm Buy Sale Net ADX 4,829 -0.8% -4.9% -1.1% 9.8% 10.6% ADX 150 150 - DFM 2,511 -2.1% -9.8% -8.4% -25.5% -25.2% Local 25% 25% TASI 7,943 -0.3% 5.1% 2.8% 9.9% 10.3% Foreign 75% 75% 0% BHSEASI 1,314 -0.4% 0.6% -1.9% -1.3% 3.6% Institutional 76% 79% -3% EGX 13,121 -0.7% -5.6% -6.9% -12.6% -10.6% Retail 24% 21% Dow Jones 23,676 0.4% -5.4% -10.3% -4.2% -4.4% DFM 181 181 - S&P 500 2,546 0.0% -5.4% -12.4% -4.8% -5.0% Local 63% 68% -5% Nasdaq 6,784 0.4% -3.5% -14.7% -1.7% -2.6% Foreign 37% 32% 5% FTSE 100 6,702 -1.1% -4.3% -8.6% -12.8% -11.2% Institutional 65% 49% 16% 10,741 -0.3% -4.5% -12.1% -16.9% -18.7% Retail 35% 51% -16% DAX CAC40 Close Change Change Change Change Change # UAE Trading Summary 0% 3% 4,754 -1.0% -4.6% -11.9% -10.5% -11.7% Total 331 331 - Nikkei225 20,971 -0.7% -3.9% -11.4% -7.9% -8.3% Local 46% 48% -3% HIS 25,855 0.2% -2.0% -5.7% -13.6% -11.6% Foreign 54% 52% 3% # Upcoming Corporate Actions & Events Date Company Event 18-Dec Amlak B. Meeting/Operations 19-Dec Marka B. Meeting/Operations 23-Dec Salama G. Assembly 23-Dec Amanat B. Meeting/Operations 23-Dec ADNH B. Meeting/Operations 29-Dec Invest Bank GM/Capital Changes 30-Dec Gulfa S. Meeting/ S. Resolution
2. # KEY STORIES SUMMERY Utico plans stock market listing, hires ENBD Capital Equitativa acquires three new fully leased floors in Index Tower for its Emirates REIT portfolio Aramex in deal to sell 60pc stake in Australian JV for USD20m, Aramex will incur one-off loss of USD13m Dana Gas receives $20m in payment from Egypt in EGP Mubadala, EGA & Dubal Holding to develop water & power plant in Dubai ADNOC, Cepsa award engineering contract to Spain's Tecnicas Reunidas Borouge begins construction of 5th polypropylene unit in Ruwais to boost polypropylene production capacity 25% Investment Corporation of Dubai reports 9.56% drop in H1 profits Saudi Arabia reveals largest budget to date, to raise spending by over 7% next year, while cutting outlays on military and extending handouts worth billions of dollars to citizens for another year. Budget deficit in 2019 is projected at 4.2 percent of GDP compared with 4.6 percent in 2018. Saudi Aramco, Saudi Information Technology Company to form venture to invest in tech sector Saudi Finance Ministry says expects to reach agreement with private sector over delayed dues over next few weeks Saudi Jabal Omar Development intends to issue domestic sukuk worth USD2bn for Mecca Project Saudi Company for Hardware shareholders approve capital increase to 360mn riyals from 240mn riyals through bonus share Oman's bonds tumble as Fitch cuts credit rating to junk Kuwait’s Burgan bank obtains Central Bank of Kuwait approval for issuance of local unsecured bonds up to 150mln dinars in local market Fitch says Egypt tax law may weaken banks' profits, capital ratios Orascom Investment Buys 30% Stake in Sarwa Capital for EGP1.6B Orascom Development Signs Hotel Deal With Thomas Cook
3. # Key Global Trends/ Market Clues Asian share markets played second string to bonds on Wednesday as a spectacular fall in the price of oil spurred speculation the U.S. Federal Reserve might be done with tightening after its policy meeting later in the session. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4 percent, while Shanghai blue chips were flat. U.S. oil prices rose on Wednesday to claw back part of their more than 5 percent losses from the previous session, with worries about oversupply and a slowing global economy keeping markets under pressure. U.S. crude oil had climbed 37 cents, or 0.8 percent, to $46.24 per barrel by 0122 GMT, after plunging 7.3 percent the day before in a session when it touched its lowest since August last year at $45.79. Prime Minister Theresa May, who has just 28 days to convince rebellious lawmakers to back her Brexit deal, put the U.K. on high alert over the dangers of crashing out of the European Union without an agreement. Her Cabinet ministers agreed Tuesday to implement “in full” plans for a no-deal break from the European Union, including 3,500 troops put on standby and 2 billion pounds ($2.5 billion) of funds made available for contingencies. Further warnings to voters and businesses will follow in coming weeks. # UAE Stories Utico Middle East has hired Emirates NBD Capital ENBD for a potential share sale and public listing, the company said on Tuesday. Utico, the only privately owned utility in the UAE, also said a trans-emirate water pipeline built at a cost of $100 million was now operational. Equitativa, the largest REIT (real estate investment trust) manager in the Gulf, has announced that it has acquired three additional fully leased floors in Index Tower, an 80-storey building located in Dubai, for its Emirates REIT portfolio, at a purchase price of Dh106.5 million ($29 million). Purchase price AED 106.5 million (USD 29 million). Net initial yield: 10%. Internal Rate of Return: 12%. Occupancy of Index Tower offices post-transaction: 50%. Portfolio Value increased to AED 3.5 billion (USD 953 million). Portfolio Net Leaseable Area increased to 2.4 million square feet. The transaction, which includes a rental guarantee from the seller, is expected to generate an estimated Internal Rate of Return (IRR) of 12%, with a net initial yield of 10%. Following the acquisition, Emirates REIT's total portfolio will reach AED 3.5 billion, comprising of 11 properties across Dubai with a Net Leaseable Area of 2.4 million square feet. Post acquisition, the occupancy of the Index Tower Offices increase to 50%. The newly acquired floors are fully leased with a Weighted Average Unexpired Lease Term of 3 years and will enhance Emirates REIT’s tenant diversification. Aramex, a leading global provider of comprehensive logistics and transportation solutions, has announces that it has won approval from the board of directors to sell its entire stake in Aramex Global Solutions (AGS), its joint venture with Australia Post, for $20 million. it will incur a one-off write-off of USD $13 million for Aramex, which will be reflected in the company’s Q4 2018 financial results. The decision for divesting the stake came at a mutually agreed transaction that will allow both organizations to independently execute their strategic growth in the booming global e-commerce industry, said a statement from Aramex. Dana Gas received $20 million (Dh73.46m) in payment from the Egyptian government in EGP, bringing the total receivables from Egypt country to $152m for 2018. The Sharjah company, one the biggest private gas players in the region, has struggled with its Egypt receivables in the past and had previously said it would balance new capital expenditure programme against payments. Company understands that further payment is planned to be made in USD before year-end. Emirates Global Aluminium (EGA), Mubadala Investment Co and Dubal Holding on Tuesday announced plans to develop a power and water desalination plant at EGA's smelter in Jebel Ali in Dubai. The 25-year agreement is worth more than 1 billion dirhams ($272.5 million), the companies said in a joint statement. Abu Dhabi National Oil Company (ADNOC) and oil firm Cepsa have awarded a contract to design a linear alkylbenzene plant in Abu Dhabi to Spanish engineering company Tecnicas Reunidas. Borouge, a joint venture between Abu Dhabi National Oil Company and Austria's Borealis, has started construction of a fifth polypropylene unit in the United Arab Emirates, the company said on Tuesday. The
4. new unit at the Borouge 3 plant will have a capacity of 480 ,000 tonnes a year and boost Borouge's production capacity by more than 255 percent, it said.It is expected to go online in the third quarter of 2021, the company said. Investment Corporation of Dubai (ICD), the sovereign wealth fund that owns the Emirates airline group and stakes in several Dubai banks, has reported a 9.56 percent decline in net profit attributable to its shareholders for the first six months of 2018, falling to 7.47 billion United Arab Emirates dirhams ($2.03bilion), despite revenue increasing by 23.4 percent year-on-year to 115.1billion dirhams. # GCC/ MENA Saudi Arabia wants to keep the fiscal taps open without blowing a bigger hole in the budget as the world’s biggest oil exporter reshapes its priorities and looks to jump-start economic growth. The document, unveiled late on Tuesday, outlines plans to raise expenditure by over 7 percent next year from 2018 while scaling back outlays on the military and extending handout payments worth billions of dollars to citizens for another year. The deficit in 2019 is projected at 131 billion riyals ($34.9 billion), or 4.2 percent of gross domestic product, according to the Finance Ministry. That compares with a shortfall of 4.6 percent in 2018. The key figures were largely in line with pre-budget data released for the first time this year as the government seeks to make its public accounts more transparent. 2019 revenue estimated at 975 billion riyals versus 895 billion riyals in 2018 Revenue from oil is projected at 662 billion riyals in 2019, compared with 607 billion riyals in 2018. Taxes are projected to add 183 billion riyals to the budget in 2019, up from 166 billion riyals in 2018. The 2018 revenue figure includes 50 billion riyals collected from settlements as part of the government’s declared anti-corruption probe, Finance Minister Mohammed Al-Jadaan said. Saudi Aramco and the Saudi Information Technology Company signed an agreement to set up a joint venture firm that will develop a platform to invest in high potential growth companies in the information, communication, and technology sector, Aramco said on Tuesday. Saudi Finance Ministry says expects to reach agreement with private sector over delayed dues over next few weeks. Saudi’s Jabal Omar Development intends to issue domestic sukuk. The company intentds to issue domestic sukuks in riyals and offer through private offering in KSA with offering amount is up to 2bln riyals. Purpose of offering is to finance company's business and complete development phases of Jabal Omar Project. Saudi Company for Hardware shareholders approve capital increase to 360mn riyals from 240mn riyals through bonus share. Oman's dollar-denominated government bonds fell on Tuesday after Fitch became the second major rating agency to cut the country to 'junk'. Fitch's move leaves Moody's as the only firm to rate Oman as investment grade, a level key for keeping a country's debt in the major indexes tracked by fund managers. Oman's 2023maturing dollar bond fell 1.5 cents in the dollar, while its slightly shorter-term 2021 bonds dropped almost 1 cent. Kuwait’s Burgan bank obtains Central Bank of Kuwait approval for issuance of local unsecured bonds up to 150mln dinars in local market. Fitch says Egypt tax law may weaken banks' profits, capital ratios. The agency says Egyptian banks with a high proportion of sovereign debt holdings would be most affected by proposed tax law; however, it does not expect tax law to affect banks materially until at least 2020, even if it is passed in 2019. Ftch says new egypt tax law could encourage banks to allocate their excess liquidity away from sovereign debt and into growing their loan books. Orascom Investment Buys 30% Stake in Sarwa Capital for EGP1.6B. Orascom Investment Holding bought 216m shares of Sarwa Capital at 7.36 Egyptian pounds/share, Sarwa says in a statement.
5. Orascom Development Signs Hotel Deal With Thomas Cook . Deal is to develop a new 100-room luxury property under the Casa Cook El Gouna brand and to re-brand Arena Inn as Cook’s Club Hotel, Orascom Development Egypt says in a statement. Total investment is roughly 200m Egyptian pounds. Casa Cook scheduled to open in October 2019 while Casa Club set to open in summer 2019. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
6. # UAE FOCUS LIST - COMPANY DATA Company MCAP PRICE (A EDm) (A ED) HIGH - LOW 3M% 6M% 12M% 8.24 8.35 6.50 9.73 1.54 0.5% 4.4% 14.1% 18.2% ADIB 14,201 3.91 4.27 3.46 6.34 1.08 -8.0% 8.9% 7.8% 8.4% ADNIC 1,463 3.90 4.00 3.40 8.19 0.69 1.0% 4.0% 1.3% 14.7% Agthia 2,196 3.66 5.11 3.55 10.96 1.18 -7.8% -23.4% -23.8% -23.8% Air Arabia 4,657 1.00 1.33 0.94 9.60 0.69 -5.0% 3.0% -5.0% -18.9% Ajman Bank 1,861 0.89 1.18 0.83 9.56 0.75 -4.7% -4.4% -11.0% -20.2% Al Waha Capital 3,325 1.71 2.21 1.62 6.98 0.98 -11.9% -8.6% -5.0% -2.3% Aldar Properties 12,108 1.54 2.34 1.48 7.20 0.51 -10.5% -13.5% -24.5% -29.4% Amanat Holdings 2,775 1.11 1.60 1.00 102.97 1.10 -2.6% -9.0% -15.3% -18.4% 537 0.36 1.09 0.32 NA 0.39 -32.5% -42.8% -54.3% -64.6% Arabtec 3,045 2.03 2.79 1.58 13.50 1.88 -7.7% 15.3% -5.6% -15.4% Aramex 6,105 4.17 4.75 3.72 12.13 2.36 -3.0% 2.5% 4.3% -5.4% Bank of Sharjah 2,142 1.02 1.24 1.02 6.94 0.53 -5.6% -4.7% -5.6% -16.4% DAMAC Properties 9,983 1.65 3.57 1.62 6.46 0.71 -22.2% -16.7% -30.4% -50.0% Dana Gas 6,537 0.94 1.21 0.68 21.26 0.62 -14.8% -17.1% -12.4% 35.8% 73 0.49 0.99 0.41 6.53 0.59 -19.8% -23.3% -27.3% -45.5% Deyaar Development 2,080 0.36 0.60 0.32 15.85 0.47 -14.3% -19.8% -23.1% -26.7% Dubai Financial Market 6,320 0.79 1.17 0.70 38.63 0.81 -10.2% -14.1% -24.0% -29.5% Dubai Investment 5,315 1.25 2.55 1.16 5.94 0.44 -13.8% -34.2% -38.7% -48.8% 33,475 5.08 5.90 4.66 6.93 1.43 -5.0% -2.1% 1.6% -8.3% 2,144 0.27 0.72 0.24 NA 0.38 -19.0% -24.7% -29.7% -59.2% Emaar Dev 17,320 4.33 5.49 4.21 5.56 2.28 -12.5% -12.1% -12.4% -12.7% Emaar Malls 22,254 1.71 2.38 1.65 10.40 1.33 -11.9% -6.0% -20.5% -18.6% Emaar Properties 30,071 4.20 7.06 3.93 5.53 0.64 -13.8% -11.4% -18.4% -36.1% Emirates Integrated Tele 22,857 5.00 5.24 4.73 12.39 2.79 -1.0% -0.4% 2.0% 0.0% Emirates NBD 46,130 8.30 11.00 8.00 4.99 0.88 -10.7% -5.7% -16.2% 2.5% 1,188 0.51 0.81 0.45 19.70 0.79 -14.1% -8.8% -25.9% -27.0% Etisalat 147,671 16.98 18.00 15.70 17.11 3.38 -1.8% 6.1% 6.1% -1.3% First Abu Dhabi Bank 150,386 13.80 15.20 10.15 13.11 1.68 -6.8% -3.0% 14.0% 34.0% -25.3% Dubai Islamic Bank DXB Entertainments Eshraq Properties Gulf Navigation Holding Gulf Pharmaceutical Marka Mashreqbank TTM P/E TTM P/B HISTORICAL RETURN 42,833 Dar AL Takaful 52WL VALUATION ADCB Amlak Finance 52WH 1M% 896 0.98 1.36 0.77 NA 1.07 -12.2% 10.8% 1.6% 2,433 2.10 2.38 2.00 NA 1.36 0.0% -4.5% -0.5% -4.3% 138 0.28 0.62 0.26 NA NA 0.0% 0.0% 0.0% -51.9% 12,782 72.00 80.00 68.05 5.98 0.64 -2.7% 5.8% -2.7% 5.0% National Bank of Fujairah 6,430 3.91 4.65 2.50 12.69 1.43 15.0% 32.1% 15.3% -15.9% National Central Cooling Co 4,426 1.63 2.00 1.45 9.98 0.97 0.0% 3.8% -4.7% -10.9% RAK Bank 7,158 4.27 4.85 4.02 8.41 1.04 2.6% -0.5% -2.5% -8.2% RAK Properties 960 0.48 0.84 0.45 7.80 0.25 -15.8% -20.7% -26.2% -33.3% Ras Al Khaimah 1,685 1.87 3.10 1.84 9.61 0.68 -9.7% -21.8% -19.4% -24.5% 593 0.49 0.76 0.38 7.55 0.79 -22.5% -17.8% 14.8% -4.9% 3,404 1.16 1.52 1.12 6.76 0.64 -0.9% -3.3% -4.9% -13.4% SHUAA Capital 868 0.82 1.30 0.80 12.35 0.97 -22.4% -20.1% -24.5% -31.5% Takaful Emarat Insurance 258 1.72 2.70 1.50 9.78 1.79 -2.3% -5.0% -7.5% -14.0% 5,460 0.90 1.45 0.50 8.12 1.22 -13.5% -20.4% -23.1% 52.5% 13,344 4.85 5.14 3.36 9.07 0.78 1.3% -1.4% 34.7% 27.3% Union Properties 1,754 0.41 1.05 0.40 28.30 0.61 -31.8% -40.0% -46.8% -52.4% United Arab Bank 2,578 1.25 1.87 1.01 41.55 0.99 0.0% 0.0% 0.8% -24.1% SALAMA Sharjah Islamic Bank TAQA Union National Bank (Source: Bloomberg)
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