UAE: Daily Market Trading Report - 2 June

Transcription

1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 3M 02 June 2020 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 4,171 0.7% -1.4% -11.7% -16.6% ADX 198 198 - DFM 1,974 1.5% -2.6% -20.2% -24.7% Local 47% 32% 15% TASI 7,289 1.1% 2.5% -0.8% -14.4% Foreign 53% 68% -15% BHSEASI 1,270 0.0% -3.1% -20.9% -11.4% Institutional 84% 77% 8% EGX 10,227 0.1% -3.1% -16.3% -25.7% Retail 16% 23% -8% Dow Jones 25,383 0.4% 7.4% 0.3% 2.7% DFM 189 189 - S&P 500 3,044 0.4% 7.9% 3.4% 11.0% Local 34% 48% -14% Nasdaq 9,490 0.7% 11.0% 11.5% 28.2% Foreign 66% 52% 14% FTSE 100 6,166 1.5% 7.0% -6.3% -13.9% Institutional 64% 62% 3% 11,587 0.0% 6.7% -2.6% -1.2% Retail 36% 38% -3% - DAX CAC40 4,763 1.4% 4.2% -10.3% -8.5% Total 388 388 Nikkei225 22,062 0.8% 12.5% 4.3% 7.1% Local 41% 40% 1% HIS 23,733 3.4% -3.7% -9.2% -11.8% Foreign 59% 60% -1% # Upcoming Corporate Actions & Events Date Company Event 02-Jun RAK BANK BoD/General 02-Jun RAK CERAMICS BoD/Results 02-Jun AMANAT BoD/Investments 03-Jun ADNH BoD/Results 03-Jun DEPA AGM 03-Jun DIC AGM 03-Jun DIC BoD/General 04-Jun TAK-EM BoD/Results 11-Jun DAMAC AGM
2. # KEY STORIES UAE reported 635 new cases of COVID-19 on June 01, 2020, pushing the total cases in the country up to 35,192. 2 more deaths also been confirmed, bringing the total death toll to 266. The ministry has also revealed recovery of 406 patients, taking to 18,338 the total number of patients recovered in the country Julphar announced the launch of its AED 500mln rights issue as the company progresses on its ambitious turnaround plan. The right is part of capital restructuring, which included a capital reduction of AED 503mln as an initial step, Julphar offers 500 million new shares with a nominal value of AED 1. The subscription period of the shares begins on 29th June 2020, and ends on 12th July 2020 Abu Dhabi said to near pipeline stake sale to GIP-backed group Moody’s puts aircraft lessors’ ratings on review for downgrade, the lessors include Aercap, Aircastle, Aviation Capital, Avolon Holdings and DAE Emirates President Tim Clark said on Monday it could take the airline four years to rebuild its network that has been decimated by the coronavirus pandemic Abu Dhabi eases COVID-19 restrictions on malls, restaurants and sport activities. The capacity of malls and restaurants have been raised to 40pct as the emirate eases a number of restrictions. Hotel beaches, restaurants and museums outside malls will also be reopening Gulf currency pegs to remain despite oil price slump, S&P says Saudi Stock Exchange disclosed that foreigners bought SAR 2.82bln of stocks on a net basis in May. Foreigners bought SAR 13.87bln of stocks while sold SAR 11.05bln stocks in May Saudi Central Bank prepared to support banking sector again if needed - SAMA The Saudi central bank said it provided SAR 50bln (USD 13.32bln) to support the banking sector liquidity Saudi’s National Commercial Bank announces its intention to issue SAR denominated additional tier 1 sukuk to strengthen bank’s capital base. Number and value of any sukuk to be offered will be determined based on market conditions Kuwaiti banks will reopen some branches on Tuesday after the country replaced a 24-hour curfew with a 12-hour one, the Kuwait Banking Association said on Monday Bahrain’s Investcorp has done the closing of its Mount Row (Levered) Credit Fund with capital commitments of EUR 318mln euros, exceeding its target of EUR 300mln euros Telecom Egypt and Etisalat Misr sign transmission and mobile-to-fixed interconnection agreements. Agreement extends for three and a half years with a total value of EGP 2bln Egypt’s Arabian Food Industries Company posted Q1 consolidated net profit EGP 32.1mln vs EGP 28.8mln year ago. Q1 consolidated net sales EGP 744.8mln vs EGP 654.8mln year ago
3. # Key Global Trends/ Market Clues Asian stocks eked out gains on Tuesday as investors' focus on the prospects of a global coronavirus recovery won out over familiar worries about Sino-U.S. relations and the depth of economic damage. Hampering broader global risk appetite, however, was U.S. President Donald Trump's vow to use force to end violent protests in American cities, which kept Wall Street stock futures negative in Asia. MSCI's broadest index of Asia-Pacific shares outside Japan, which had its best day in two months on Monday, extended its rally without panache - rising 0.3%. The week had begun with a surge in riskier currencies and global equities after Trump's response to China's tightening grip on Hong Kong - with threats, not tariffs - was seen lowering the temperature of Sino-U.S. tension. World stock markets have rallied nearly 36% from March lows on hopes for a swift recovery from a pandemic that has killed nearly 375,000 people and crushed global growth as countries have shut down to try and slow the virus' spread. Japan's Nikkei rose 1% to its highest since late February and markets in Seoul, Taipei and Hong Kong also gained. Oil prices crawled higher on Tuesday, with traders waiting to see whether major producers agree to extend their huge output cuts to shore up prices at a meeting expected later this week. Brent crude futures rose 0.4%, or 17 cents, to USD 38.49 a barrel as of 0220 GMT. Russia's oil and gas condensate production fell to 9.39mln barrels per day (bpd) in May as a global deal on reducing output took effect, sources familiar with the data told Reuters. That was down from 11.35mln bpd in April and 9.42mln bpd on May 1-19. OPEC+ will discuss a short extension of their production cuts at a meeting that looks set to be held sooner than planned. The virtual gathering will focus on a proposal, favored by Saudi Arabia and its Gulf allies, to maintain record output curbs for an extra one to three months, one delegate said. But two days after the idea of bringing forward the meeting by a few days to June 4 was first floated, delegates still hadn’t settled on the new date. Wrangling continued behind the scenes, delegates said. Oil holds above USD 35 With OPEC+ decision on output cuts in focus.
4. # UAE Stories UAE reported 635 new cases of COVID-19 on June 01, 2020, pushing the total cases in the country up to 35,192. 2 more deaths also been confirmed, bringing the total death toll to 266. The ministry has also revealed recovery of 406 patients, taking to 18,338 the total number of patients recovered in the country. Julphar announced the launch of its AED 500mln rights issue as the company progresses on its ambitious turnaround plan. The rights issue is set to improve the company’s capital position and debt profile and will provide the financial foundation for the successful implementation of the company’s medium-term growth strategy, Julphar said in a statement. As part of its capital restructuring, which included a capital reduction of AED 503mln as an initial step, Julphar offers 500 million new shares with a nominal value of AED 1. The subscription period of the shares begins on 29th June 2020, and ends on 12th July 2020. Abu Dhabi’s state-owned energy producer is close to selling a multibillion-dollar stake in its natural gas pipelines to an investor group backed by Global Infrastructure Partners and Brookfield Asset Management Inc., in what is set to be one of the year’s biggest infrastructure deals. The buyers could sign an agreement with Abu Dhabi National Oil Company for a 49% stake in the pipelines this month, according to people with knowledge of the matter, who asked not to be identified as discussions are private. A deal could value the pipelines at more than USD 15bln, including debt, they said. Moody’s has put aircraft leasing companies Aercap, Aircastle, Aviation Capital, Avolon Holdings and DAE Funding on review for downgrade, the ratings agency says in a statement. Affirmed Voyager Aviation’s B1 corporate family and B2 long-term senior unsecured ratings; says its outlook remains negative. Expects recovery in the industry to be slower than originally anticipated Emirates President Tim Clark said on Monday it could take the airline four years to rebuild its network that has been decimated by the coronavirus pandemic. "I think probably by the year 2022/23, 2023/24 we will see things coming back to some degree of normality and Emirates will be operating its network as it was and hopefully as successfully as it was," he said in a webcast interview. The Dubai-based airline was flying to 157 destinations in 83 countries before it grounded passenger flights in March and has since operated limited services. Abu Dhabi eases COVID-19 restrictions on malls, restaurants and sport activities. The capacity of malls and restaurants have been raised to 40pct as the emirate eases a number of restrictions. Hotel beaches, restaurants and museums outside malls will also be reopening. Additionally, people between the ages of 12 and 60 will be able to practice sports including horse riding, track cycling, cricket, cycling, athletics, golf. sailing and tennis. # GCC/ MENA The six nations of the Gulf Cooperation Council will maintain their pegged currencies despite a fall in oil prices, S&P Global Ratings said on Monday. The ability of Gulf countries to defend their currencies' pegs, to the dollar in most cases, has come under scrutiny as historically low oil prices and the fallout from the coronavirus pandemic have pressured their economies. Kuwait, Qatar, the United Arab Emirates and Saudi Arabia have strong levels of reserves to weather shocks, while Bahrain and Oman have a lower level of external liquid assets, S&P said. Saudi Stock Exchange disclosed that foreigners bought SAR 2.82bln of stocks on a net basis in May. Foreigners bought SAR 13.87bln of stocks while sold SAR 11.05bln stocks in May. Lenders can resort to central bank to get liquidity through open market transactions starting this month, Saudi Arabian Monetary Authority Governor Ahmed Alkholifey tells Al Arabiya news channel. SAMA closely watching liquidity, asset quality. There’s no intention to change FX rate policy. No major change in reserves from end-April to end-May. SAMA reserves cover more than 40 months of imports. The Saudi central bank said it provided SAR 50bln (USD 13.32bln) to support the banking sector liquidity, according to a statement on twitter on Monday. Saudi’s National Commercial Bank announces its intention to issue SAR denominated additional tier 1 sukuk. Bank mandated NCB Capital as sole bookrunner, lead arranger and lead manager for potential private
5. placement offer . Number and value of any sukuk to be offered will be determined based on market conditions. Purpose of potential offer is to strengthen bank’s capital base. Kuwaiti banks will reopen some branches on Tuesday after the country replaced a 24-hour curfew with a 12hour one, the Kuwait Banking Association said on Monday. The branches will operate from 0900 to 1300 local time, the association said in a statement. Bahrain’s Investcorp has done the closing of its Mount Row (Levered) Credit Fund with capital commitments of EUR 318mln euros, exceeding its target of EUR 300mln euros. Mount Row attracted a broad and diverse group of existing and new investors, including institutional, family offices and private clients from Europe, Asia and the Gulf. Through this Fund, Investcorp’s credit management business will continue executing its investment strategy to actively manage - and construct - a portfolio of large-cap European secured loans. Telecom Egypt and Etisalat Misr sign transmission and mobile-to-fixed interconnection agreements, agreement will enable Etisalat Misr to continue delivering premium offers and mobile telecommunications services to customers in Egypt. Agreement extends for three and a half years with a total value of EGP 2bln. Egypt’s Arabian Food Industries Company posted Q1 consolidated net profit EGP 32.1mln vs EGP 28.8mln year ago. Q1 consolidated net sales EGP 744.8mln vs EGP 654.8mln year ago. (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% 9.09 3.82 8.56 0.65 8.4% 2.5 (27.6) (35.5) (49.3) ADIB 12,204 3.36 5.85 3.19 6.21 0.67 8.1% (6.4) (30.1) (28.8) (24.8) 1,710 3.00 3.70 2.60 4.82 0.84 10.0% (6.5) (18.9) 5.3 (11.8) 36,500 2.92 3.20 2.40 17.90 12.75 6.5% 4.3 2.4 11.4 8.6 Agthia 1,560 2.60 3.84 2.50 12.61 0.79 5.8% (13.3) (6.3) (21.8) (27.8) Air Arabia 4,993 1.07 1.61 0.87 5.30 1.19 NA (6.1) (10.4) (19.6) 3.9 Ajman Bank 1,197 0.57 0.98 0.50 14.62 0.48 0.0% (5.8) (18.6) (35.7) (37.1) Al Waha Capital 1,264 0.65 1.08 0.63 NA 0.42 NA (13.2) (19.3) (33.7) (32.2) Aldar Properties 13,524 1.72 2.37 1.35 7.81 0.56 8.4% (5.5) (6.8) (13.6) (5.5) Amanat Holdings 1,950 0.78 1.03 0.56 32.49 0.76 2.8% 10.1 8.3 (8.8) (20.4) Amlak Finance 482 0.32 0.64 0.20 NA 0.67 0.0% (10.8) (17.7) (30.4) 18.5 Arabtec 845 0.56 2.05 0.44 NA 0.71 0.0% (20.8) (19.6) (54.2) (63.4) Aramex 4,612 3.15 4.47 2.00 10.09 1.72 5.2% 4.3 1.9 (15.5) (26.4) Bank of Sharjah 1,239 0.59 1.00 0.56 NA 0.32 0.0% (7.1) (22.2) (26.0) NA DAMAC Properties 3,842 0.64 1.05 0.36 NA 0.28 NA 1.9 5.5 (18.6) (26.2) Dana Gas 4,337 0.62 1.10 0.53 7.50 0.45 8.9% (15.9) (16.8) (28.4) (37.4) Deyaar Development 1,502 0.26 0.43 0.18 21.36 0.33 0.0% (10.7) (12.5) (26.8) (16.1) Dubai Financial Market 5,944 0.74 1.00 0.50 46.70 0.78 3.4% 0.5 (4.3) (16.0) 4.5 Dubai Investment 4,975 1.17 1.43 0.98 7.57 0.42 NA (2.5) (6.4) (7.1) (8.6) Dubai Islamic Bank 25,560 3.53 5.86 3.04 5.43 0.72 9.9% (3.8) (26.7) (27.3) (30.0) DXB Entertainments 1,056 0.13 0.24 0.09 NA 0.36 0.0% (15.9) (23.7) (35.6) (34.0) Emaar Dev 7,880 1.97 4.91 1.79 2.92 0.82 0.0% (14.3) (45.3) (45.3) (49.7) Emaar Malls 17,699 1.36 2.17 0.98 7.74 0.96 0.0% 5.4 (11.1) (28.8) (29.9) Emaar Properties 18,257 2.55 5.53 1.90 2.94 0.34 0.0% (6.6) (23.2) (38.3) (43.0) Emirates Integrated Tele 23,118 5.10 6.35 4.33 14.13 2.57 6.7% (3.6) (10.2) (3.7) 1.6 Emirates NBD 55,586 8.80 13.93 6.33 3.84 0.70 4.5% 2.3 (20.7) (20.7) (17.8) (41.5) ADNOC Dist Eshraq Investments TTM P/E TTM P/B YLD (%)^ HISTORICAL RETURN 4.55 ADNIC 52WL DIV 31,656 (A ED) 52WH VALUATION ADCB (A EDm) 1M% 537 0.23 0.45 0.16 NA 0.38 NA (20.6) (22.7) (32.8) Etisalat 138,279 15.90 17.80 11.02 15.97 3.07 5.0% 2.6 8.6 1.9 (2.5) First Abu Dhabi Bank 122,086 11.18 16.24 7.78 10.85 1.30 6.6% (3.6) (14.2) (22.4) (24.8) 1,920 0.53 0.97 0.45 6.10 0.48 6.4% (11.8) (33.0) (36.8) (42.1) 362 0.36 0.84 0.28 NA 0.61 0.0% 0.3 (21.1) (43.7) 52,821 29.00 32.10 0.95 NM 13.53 NA 7.3 113.2 412.4 GFH Gulf Navigation Holding IHC Julphar (54.8) 2,889.7 773 1.18 1.58 0.60 NA 2.15 0.0% 71.0 26.2 18.0 NA 12,063 67.95 86.80 62.00 6.39 0.57 5.9% (0.7) (5.6) (5.6) (8.9) National Bank of Fujairah 9,536 4.98 4.98 3.75 21.77 1.55 1.9% NA 3.3 3.3 NA Tabreed 5,431 2.00 2.22 1.50 11.43 1.15 5.3% (4.8) 2.6 8.7 27.4 RAK Bank 5,698 3.40 5.00 3.35 5.82 0.80 8.8% (8.1) (20.3) (23.1) (28.4) 662 0.33 0.48 0.33 6.57 0.17 12.1% (10.5) (12.8) (13.2) (23.0) 1,371 1.38 1.81 1.24 7.95 0.54 10.4% (4.2) (10.5) 2.2 (6.5) 569 0.47 0.71 0.30 9.22 0.71 NA (10.6) (2.0) (8.0) (10.8) Sharjah Islamic Bank 3,174 1.03 1.29 0.95 5.80 0.43 4.6% (1.9) (11.4) (7.8) (1.7) SHUAA Capital 1,494 0.59 1.05 0.40 981.67 1.02 NA (4.2) (26.8) (41.1) (34.6) Mashreqbank RAK Properties RAK Ceramics SALAMA Takaful Emarat Insurance 204 1.36 1.62 0.97 NA 1.72 6.1% (4.9) 10.6 20.4 (11.7) TAQA 4,034 0.67 0.92 0.40 17.24 0.97 0.0% (3.6) 0.8 14.9 (16.9) Union Properties 1,132 0.26 0.38 0.15 NA 0.42 0.0% (13.7) 38.9 (12.0) (19.5) United Arab Bank 1,844 0.89 1.25 0.81 NA 0.85 0.0% (0.2) (0.2) (9.7) (27.9) (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
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