UAE: Daily Market Trading Report - 19 March

Transcription

1. IS Morning Report Sunday , March 18, 2018 Global & Regional Benchmarks Indices Close UAE Trading Summary 1Day 1Mnth 3Mnth YTD 1Y Change Change Change Change Change BUY (AEDm) SELL NET ADX 4,543 0.5% -0.8% 4.7% 3.3% 2.7% ADX 229 229 - DFM 3,197 0.9% -4.0% -4.7% -5.1% -9.2% Local 29% 25% 4% TASI 7,745 -0.4% 3.1% 9.5% 7.2% 11.9% Foreign 71% 75% -4% KWSEI 6,760 0.2% -0.1% 6.8% 5.5% -0.7% Institutional 81% 76% 5% 16,999 0.7% 13.6% 15.8% 13.2% 30.9% Retail 19% 24% -5% Dow Jones 24,947 0.3% -1.1% 0.8% 0.9% 19.3% DFM 241 241 - S&P 500 2,752 0.2% 0.7% 2.6% 2.9% 15.7% Local 53% 49% 3% Nasdaq 7,482 0.0% 3.4% 7.4% 8.4% 26.8% Foreign 47% 51% -3% FTSE 100 7,164 0.3% -1.2% -5.0% -6.8% -3.5% Institutional 50% 55% -5% 12,390 0.4% 0.0% -6.3% -4.1% 2.4% Retail 50% 45% 5% 5,283 0.3% 0.5% -1.9% -0.6% 5.0% Total 470 470 - Nikkei225 21,677 -0.6% -2.1% -5.2% -4.8% 11.0% Local 41% 37% 3% HIS 31,502 -0.1% 1.2% 7.7% 5.3% 29.6% Foreign 59% 63% -3% EGX DAX CAC40 Upcoming Corporate Actions & Events Date Company Event 20-March GFH AGM 21-March Dar Al Takaful Board Meeting 21-March Ajman Bank AGM 21-March DU AGM 25-march DP World Board Meeting 27-March Emirates NBD General Meeting Key Stories Dubai's Emirates set to close $600 mln sukuk –statement Dana Gas plans $47 mln capex in Egypt this year Dubai Awards $348 Million of Contracts for New Power Plants Integrated Securities (Regulated by the Securities & Commodity Authority) Al Bateen Towers, C2 P.O.Box 107077, Abu Dhabi, UAE Customer service: 8003437 / +971 24 942 777 Sales & Trading : +971 24 942 666 Facsim ile: +971 26 354 669 Website: www.integratedsecurities.ae
2. IS Morning Report Sunday , March 18, 2018 Adnoc Distribution to Open 10 Geant Stores at Stations Some holders of Etihad-linked $1.2 billion bonds brace for default DP World says Djibouti incident could hurt Africa investment UAE to train Somaliland forces under military base deal Saudi central bank raises key interest rates ahead of U.S. Saudi Arabia picks Citi, Goldman, HSBC, Morgan Stanley for new bond Saudi Arabia to deposit $2 bln in Yemen central bank Saudi crown prince says will develop nuclear bomb if Iran does Yanbu Cement Full Year Profit Beats Highest Estimate Bupa in $107m Pact to Raise Stake in Bupa Arabia Kuwait to divide its stock market into three segments Oman central bank raises rate on capital deposits to 1.5 pct from 1.0 pct Bahrain counts on fintech, Saudi ties to revive indebted economy. Average yields rise on Egypt's six-month, one-year T-bills Morocco plans to spend $15.8 bln if it gets 2026 World Cup Global Markets Wrap: Oil prices finished the week at a gain after a big Friday rally, and U.S. stock indices ended flat-to-higher, to close a bumpy week on a high note. Crude prices had been on track for a weekly loss, but spiked on Friday as energy investors looked to cover short bets ahead of a televised interview Sunday by the U.S. news program "60 Minutes" with Saudi Arabia's Crown Prince Mohammed bin Salman. U.S. crude rose 1.72 percent to $62.24 per barrel and Brent was last at $66.12, up 1.54 percent on the day. During the session, Brent hit $66.42, its highest since Feb. 28. U.S. Treasury yields rose on the industrial data, and in anticipation of next week's Federal Open Market Committee meeting, at which the U.S. central bank is expected to raise interest rates for the first time this year. Powell is widely expected to continue with predecessor Janet Yellen's plan for monetary normalization. Futures traders are pricing in a 94.4 percent likelihood of a rate increase. The Fed is expected to raise rates three times this year, but a significant jump in inflation in January increased chances of a fourth hike. Prices were receiving support from healthy demand. The Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday that oil consumption was expected to grow by 1.62 million barrels per day (bpd) in 2018. But looming over markets has been a relentless climb in U.S. crude output, which hit another record last week by rising to 10.38 million bpd, up by more than 23 percent since mid-2016. Commercial crude inventories were up by 5 million barrels, at 430.93 million barrels. UAE: Emirates, the Dubai-based airline, announced in a statement on Friday the execution of a $600 million U.S. dollardenominated Islamic bond with a 10-year tenor. The sukuk was priced at 4.5 percent, equivalent to 183.2 basis points over five-year U.S. dollar mid-swaps, the statement said. Integrated Securities (Regulated by the Securities & Commodity Authority) Al Bateen Towers, C2 P.O.Box 107077, Abu Dhabi, UAE Customer service: 8003437 / +971 24 942 777 Sales & Trading : +971 24 942 666 Facsim ile: +971 26 354 669 Website: www.integratedsecurities.ae
3. IS Morning Report Sunday , March 18, 2018 United Arab Emirates-based energy firm Dana Gas will spend $47 million in Egypt this year but any new investments will be made only if the country pays some of the money it owes, Dana's chief executive said on Thursday. Abu Dhabi-listed Dana has been struggling to recover payments from Egypt, with total "receivables" related to oil and gas production standing at $228 million. “Capex (capital expenditure) of similar amount will be spent this year,” CEO Patrick Allman-Ward told reporters on a media call. The capex in 2017 was $47 million. The money will go towards an ongoing drilling programme in Egypt where Dana has two to four wells and where work has already begun. But with Egypt's payments in the second half of 2017 being “sporadic and disappointing”, Dana is cautious about new investments. “Absent payment, absent investments,” Allman-Ward said. Dubai Electricity & Water Authority confirmed that it awarded contracts worth 1.28 billion dirhams ($348 million) to build four substations at the same time to increase the capacity and efficiency of its electricity and transmission networks, the utility said in an emailed statement. Adnoc Distribution agrees with Urban Foods to add Geant-branded convenience stores at service stations in U.A.E., co. says in statement. Convenience stores to be added in coming months at 7 sites in Abu Dhabi, 2 in emirate of Sharjah, 1 in Ajman Urban Foods to oversee category management, supply chain, logistics; re-branded stores will remain owned, operated by Adnoc Distribution Some holders of $1.2 billion in bonds linked to Etihad Airways are seeking to appoint legal advisers to evaluate their options with respect to a potential default of the notes, sources familiar with the matter said. Etihad issued the bonds in 2015 and 2016 through an Amsterdam-based special purpose vehicle, called Equity Alliance Partners (EAP). The proceeds were used to enter into separate debt obligations with Etihad and airlines partially owned by the Abu Dhabi carrier at the time, including Alitalia and Air Berlin, both of which are now insolvent. The bonds lost over 25 cents on the dollar after Alitalia entered special administration and Air Berlin filed for bankruptcy last year. With over $500 million of the paper held by United Arab Emirates investors, EAP bondholders have assumed that Etihad, which is owned by the government of Abu Dhabi, would step in to support the notes despite the insolvency of the two European airlines. Etihad, however, is not legally obliged to do so because the bonds have no cross-default provision. Port operator DP World said on Thursday that Djibouti's decision to seize control of a terminal project could hurt African efforts to attract investment. The Dubai state-owned port operator is facing twin political challenges in Africa. Djibouti abruptly ended its contract to run the Doraleh Container Terminal last month and Somalia's parliament voted this week to ban the company. The United Arab Emirates (UAE) will train Somaliland security forces as part of a deal to establish a military base in the semi-autonomous region, Somaliland's president said on Thursday. UAE government officials could not immediately be reached for comment - but the UAE has committed to invest hundreds of million dollars in recent years in the territory on a stragegically important stretch of coastline on the Gulf of Aden. GCC/ MENA: Saudi Arabia's central bank raised its two key interest rates by 0.25 percentage points on Thursday in an apparent effort to prevent Saudi money rates from falling far below U.S. rates, which could trigger capital outflows from the kingdom. The central bank lifted its repo rate, at which it lends to commercial banks, to 2.25 percentage points and its reverse repo rate, at which commercial banks deposit money with the central bank, to 1.75 percentage points. The timing of the move was unusual. Normally, Saudi Arabia waits until the United States alters interest rates before making its own changes; this time, the Saudis acted almost a week before next Wednesday's U.S. Federal Reserve meeting, which is widely expected to hike U.S. rates by 0.25 percentage point. In a brief statement, the Saudi central bank said only that its decision was "consistent with monetary stability in the evolving domestic and international monetary conditions". But Saudi commercial bankers believe the central bank is keen to prevent a large, negative interest rate spread from opening up with the United States. On Thursday, the three-month Saudi interbank offered Integrated Securities (Regulated by the Securities & Commodity Authority) Al Bateen Towers, C2 P.O.Box 107077, Abu Dhabi, UAE Customer service: 8003437 / +971 24 942 777 Sales & Trading : +971 24 942 666 Facsim ile: +971 26 354 669 Website: www.integratedsecurities.ae
4. IS Morning Report Sunday , March 18, 2018 rate SASAR3MD= was 13 basis points below its U.S. dollar equivalent the lowest spread since mid-2009, when rates were distorted by the global financial crisis. At the end of 2016, the Saudi rate was 104 bps above the U.S. rate. A negative spread could increase pressure for Saudi investors to seek higher returns overseas, which authorities are keen to avoid as they seek to fund domestic investment projects. Saudi Arabia has selected Citi, Goldman Sachs, HSBC and Morgan Stanley as the main banks that will arrange its next U.S. dollar bond issue, sources familiar with the matter said. The country is planning to borrow funds in the international debt capital markets soon, in what would be its fourth international public debt issue. Both Saudi Arabia’s Debt Management Office and the four banks declined to comment. Saudi Arabia signed an agreement in Riyadh to deposit $2 billion in Central Bank of Yemen account, Saudi Press Agency said late on Thursday. Saudi Arabia will develop nuclear weapons if its arch-rival Iran does so, the kingdom's crown prince said in remarks released on Thursday, raising the prospect of a nuclear arms race in a region already riven with conflict. Yanbu Cement reported profit for the full year that beat the highest analyst estimate. FY profit 319 million riyals, estimate 270.3 million (range 258.0 million to 292.0 million). FY revenue 917 million riyals, estimate 910.6 million (range 874.0 million to 955.0 million). FY operating profit 314 million riyals. Says lower profit due to decline in sales, lower sale price, lower demand and strong competition. Bupa in $107m Pact to Raise Stake in Bupa Arabia. Raises stake in Bupa Arabia to 39.25% from 34.25%, Bupa Arabia says in statement to Saudi stock exchange. To buy stake from Nazer Group for 400m riyals. Nazer Group to remain long-term shareholder. Kuwait Stock Exchange plans to divide its stock market into three market segments from April 1 in a bid to boost liquidity for investors, a regulatory official said on Thursday. The bourse will also introduce new rules for listings on the same day, Abdulrahman al-Failakawi, the representative of the Capital Markets Authority (CMA). told reporters. The three market segments will be known as the premier market, the main market and the auction market. It will replace the current market. Kuwait, which aims to list its stock exchange and will enter the FTSE secondary emerging market index in September, is trying to reform its stock market which has suffered from low liquidity and delistings in the past. Oman's central bank said on Thursday it has raised the interest rate it offers on capital deposits -- deposits which banks and other financial firms are required to keep at the central bank -- by 0.5 percentage point to 1.5 percent. The central bank cited recent rises in Omani market interest rates, which have been climbing in response to hikes in U.S. rates. The higher capital deposit rate is effective retroactively to Jan. 1 this year, the central bank said. It last adjusted the rate in February 2015, cutting it by 0.5 percentage point. Bahrain counts on fintech, Saudi ties to revive indebted economy. Average yields on Egypt's six-month and one-year treasury bills increased at an auction on Thursday, data from the central bank showed. The yield on the 182-day bill rose to 17.755 percent from 17.751 percent at the last similar auction, and the yield on the 364-day bill rose to 16.626 percent from 16.587 percent. Morocco has proposed using 14 stadiums and budgeting to spend 15.8 billion dollars on infrastructure if it wins the right to host the World Cup soccer finals in 2026, the country's bid committee announced at a news conference on Saturday. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) Daily Foreign Ownership Increase Integrated Securities (Regulated by the Securities & Commodity Authority) Al Bateen Towers, C2 P.O.Box 107077, Abu Dhabi, UAE Customer service: 8003437 / +971 24 942 777 Sales & Trading : +971 24 942 666 Facsim ile: +971 26 354 669 Website: www.integratedsecurities.ae
5. IS Morning Report Company Name Sunday , March 18, 2018 Foreign Change Ownershp (%) (%) Shares Mcap Change Change (AED) RAK Properties 29.36% 0.09 1,800,000 1,494,000 Deyaar Dev 11.26% 0.08 4,622,400 2,292,710 Islamic Arab Ins. 23.10% 0.05 595,151 269,225 DAMAC Properties 41.50% 0.04 2,420,000 7,647,200 DIB 16.94% 0.03 1,479,602 8,302,877 Emaar Properties 37.31% 0.02 1,431,948 8,534,409 Marka 14.79% 0.02 100,000 52,300 Al Khazna Ins. 4.92% 0.02 84,000 21,840 ADCB 14.99% 0.01 519,823 3,711,537 Agthia 13.40% 0.01 60,000 282,000 Daily Foreign Ownership Decrease Company Name Foreign Change Ownershp (%) (%) Shares Mcap Change Change (AED) Aramex 61.97% -0.08 (1,171,280) (4,931,089) DSI 16.84% -0.06 (642,593) (1,156,667) Union Properties 24.32% -0.06 (2,573,724) (2,239,140) Al Madina 24.49% -0.06 (233,759) (103,023) Al Salam Group KW 16.87% -0.05 (134,820) (68,843) Tabreed 47.00% -0.04 (1,085,405) (1,792,249) Air Arabia 23.24% -0.03 (1,400,010) (1,834,013) Dar Al Takaful 22.13% -0.03 (45,000) (31,185) Dubai Investments 16.03% -0.03 (1,275,606) (2,768,065) 7.49% -0.03 (2,398,729) (2,520,000) DFM (Source: ADX, DFM, Bloomberg, Reuters) Integrated Securities (Regulated by the Securities & Commodity Authority) Al Bateen Towers, C2 P.O.Box 107077, Abu Dhabi, UAE Customer service: 8003437 / +971 24 942 777 Sales & Trading : +971 24 942 666 Facsim ile: +971 26 354 669 Website: www.integratedsecurities.ae
6. IS Morning Report Sunday , March 18, 2018 Institutional Sales and Trading Team Harshjit Oza harshjit@integratedsecurities.ae Direct Line: +971 2 494 2608 Disclaimer This report was prepared by Integrated Securities (“IS”) in and for the United Arab Emirates (“U.A.E.”). IS 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. IS 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 IS’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 IS 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 IS 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 IS’s prior express consent. Integrated Securities (Regulated by the Securities & Commodity Authority) Al Bateen Towers, C2 P.O.Box 107077, Abu Dhabi, UAE Customer service: 8003437 / +971 24 942 777 Sales & Trading : +971 24 942 666 Facsim ile: +971 26 354 669 Website: www.integratedsecurities.ae