UAE: Daily Market Trading Report - 20 October

Transcription

1. Morning Report 20 October 2021 UAE Trading Summary Market Stats Indices Close Chg . 1M Chg. 3M Chg. YTD Chg. 1Y Chg. ADX DFM TASI BHSEASI EGX DJI S&P 500 Nasdaq FTSE DAX CAC40 Nikkei225 HIS 7,888 2,818 11,793 1,718 11,195 35,457 4,520 15,129 7,218 15,516 6,670 29,216 26,097 -0.1% 0.6% 0.3% 0.5% -0.7% 0.6% 0.7% 0.7% 0.2% 0.3% 0.0% 0.7% 1.5% 1% -3% 3% 2% 3% 3% 2% 1% 4% 0% 2% -4% 3% 12% 3% 9% 9% 5% 4% 6% 6% 5% 3% 6% 6% -6% 56% 13% 36% 15% 3% 16% 20% 17% 12% 13% 20% 6% -5% 73% 28% 38% 18% 0% 26% 32% 32% 23% 21% 35% 23% 5% MSCI EM MSCI Asia 1,295 200 0.9% 0.9% 1% -2% -2% -1% 0% 0% 15% 14% US Fut. EU Fut. 4,508 4,154 -0.1% -0.1% 4% 4% 4% 3% 20% 17% 31% 29% AEDm ADX Local Foreign Institutional Retail DFM Local Foreign Institutional Retail Total Local Foreign Buy 1,509 79% 21% 79% 21% 195 46% 54% 50% 50% 1,704 75% 25% Sell 1,509 80% 20% 80% 20% 195 57% 43% 62% 38% 1,704 77% 23% Last Trading Day's Top Short Sell Positions Company Yahsat Eshraq ASM Short Volume (Shrs.) Short Volume (% of total volume) Total Stock Volume (mShrs.) Total Stock Turnover (AEDm) (464,365) (123,350) (15,000) 7.8% 0.6% 0.8% 6.0 21.7 1.9 15.9 6.9 29.1 Upcoming Corporates Actions & Events Date Company Event 20-Oct 24-Oct 24-Oct 24-Oct 25-Oct 27-Oct 04-Nov 11-Nov DAMAC Alpha Dhabi ASM Zee Store Easy Lease FAB IHC GFH AGM/Delisting BoD/Results BoD/Results BoD/Results BoD/Results BoD/Results BoD/Results BoD/Results Net -1% 1% -2% 2% -10% 10% -11% 11% -2% 2%
2. # KEY STORIES Etisalat Group and G42 signed an agreement to create the largest data centre provider in the UAE Emirates NBD posted Q3 net profit of AED 2.5bln vs AED 1.6bln year ago. Q3 total income AED 5.8bln vs AED 5.6bln year ago Dubai Investments inks deal with Marjan to open mixed use beachfront resort and residential development worth of AED 1bln on al Marjan Island Aramex resumes deliveries to and from UAE and Doha Sharjah Islamic Bank board approves to raise percentage of foreign ownership in bank's shares to 40% DAMAC Group And Dataplex enter partnership to develop data centre facilities in Europe Orascom Construction to evaluate acquisition of an equipment distribution and services business in Egypt Dubai Aerospace Enterprise announces USD 780mln of new senior unsecured term financings with a weighted average maturity of 7.7 years in two transaction Mubadala’s GlobalFoundries is aiming for a valuation of about USD 25bln in its IPO in US. GlobalFoundries set a price range between USD 42 and USD 47 a share for the IPO S&P says Dubai is set for a "modest" recovery this year on the back of a high vaccination rate in the UAE and limited COVID-19 restrictions, but weak international tourism will drag on the economy until late 2022 UAE on Oct 19 announced 122 new Covid-19 cases and 157 recoveries. The tally takes total cases in UAE to 738,812 with 732,595 recoveries and 2,122 deaths Saudi Arabia issued SAR 8.5bln in domestic sukuk for the month of October Saudi’s ACWA Power is among bidders of 1,200 MW Saudi renewable energy projects, consisting of four independent generation projects Saudi’s Etihad Etisalat posted quarterly net profit after zakat and tax SAR 281mln versus SAR 222mln year ago. Quarterly sales SAR 3,606mln versus SAR 3,355mln year ago Saudi’s Yamama Cement posted quarterly net profit after zakat and tax SAR 40mln versus SAR 95.3mln year ago. Quarterly sales SAR 170.7mln versus SAR 249.6mln year ago Bahrain’s Investcorp has sold its long leasehold interest in an office campus in the commercial area of Stuttgart, Germany Egypt has started work on the third phase of its plan to enhance the efficiency of internet services in the country with up to USD 2bln investment – Minister Egypt’s Centamin Q3 gold production at 103,546 ounces, up 3% QoQ. Q3 revenue USD 182.9mln from gold sales of 103,514 oz at average realised gold price of USD 1,764/oz sold Egypt’s Societe Arabe International De Banque to exit Cairo National Company For Brokerage And Securities
3. # Key Global Trends/ Market Clues Asian shares advanced and U.S. long-dated bond yields edged up to a five-month high on Wednesday on rising optimism about the global economy and corporate earnings while the yen slipped to a four-year low on the dollar. Japan's Nikkei rose 0.8% while MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3%, led by 0.9% gains in Australia. In New York, the benchmark S&P 500 index gained 0.74% to finish just 0.4% below its early September record close while the CBOE market volatility index fell 0.6 point after earlier hitting 15.57, its lowest level since mid-August. Oil futures rose on Tuesday and were near multi-year highs as an energy supply crunch continued across the globe, while falling temperatures in China revived concerns over whether the world's biggest energy consumer can meet domestic heating needs. The Brent crude benchmark rose 75 cents to settle at USD 85.08 a barrel. U.S. West Texas Intermediate futures rose 52 cents to settle at USD 82.96 a barrel. Prices have been climbing the last two months. Since the start of September, Brent has risen by about 19%, while WTI has gained around 21%. The International Monetary Fund has predicted a 5.3pct rise in the oil activity of crude exporters of the Middle East and Central Asia in 2021. In its latest regional economic outlook for the two regions, the Fund said oil output is likely to grow by 4.4pct in 2022. The growth will be driven by Libya’s soaring oil output and OPEC+ recovering production after August 2021, the report said. The IMF said strong vaccination campaigns and rising oil prices will boost confidence in the non-oil sector of these countries. Non-oil output is expected to rise by 3.9pct in 2021. Outlook for 2022 is also favourable as the sector is projected to grow by 3.4pct. # UAE Stories Etisalat signed an agreement to create largest data centre provider in UAE. Signed a binding agreement with Group42 (G42) to combine their data centres in the United Arab Emirates. A joint venture (JV) would be created with 40% ownership by Etisalat Group and 60% ownership by G42. Total of twelve data centres will be combined in a new joint venture business operating under Khazna Data Centers. With plans underway to provide over 300MW of capacity to turbocharge UAE’s digital economy. Deconsolidation of the data centers will have immaterial impact on Etisalat group’s consolidated revenues. Accounting treatment for the JV will be based on the equity method by consolidating Etisalat group’s share of new JV’s net profit. Emirates NBD posted Q3 net profit of AED 2.5bln vs AED 1.6bln year ago. Q3 total income AED 5.8bln vs AED 5.6bln year ago. Nine-month net profit AED 7.3bln vs AED 5.6bln year ago. Nine-month total income AED 17.3bln vs AED 18.3bln year ago. Nine-month impairment allowances AED 3.7bln vs AED 6.4bln year ago. Emirates Islamic Bank posted Q3 net profit AED 235.5mln versus loss AED 323.1mln year ago. Q3 total operating income AED 618mln versus AED 433.5mln year ago. Dubai Investments inks deal with Marjan to open mixed use beachfront resort and residential development worth of AED 1bln on al Marjan Island. Signs an agreement with Marjan to acquire land to develop a dynamic mixed-use beachfront residential, beach resort and lifestyle destination on Al Marjan Island. Aramex resumes deliveries to and from UAE and Doha. Sharjah Islamic Bank board approves to raise percentage of foreign ownership in bank's shares to 40%. Damac Group enters a partnership with Dataplex Group Limited, a data centre colocation, engineering and construction solutions company headquartered in Dublin, Ireland. Partnership will focus on brownfield projects involving retrofitting existing structures and larger greenfield projects, with specific focus on hyperscale and wholesale colocation customers. Damac Group has also invested in Dataplex, which will result in a shareholding of up to 45% of company over time. Dataplex’s primary shareholders Damac Group and Chirisa have acquired a land parcel in Abbotstown for a greenfield 70 mw+ data centre and industrial campus development in Dublin, Ireland. Orascom Construction to evaluate acquisition of an equipment distribution and services business in Egypt. Management’s proposal to evaluate potential acquisition, through company’s subsidiaries, of a shareholding percentage of up to 100% of capital of Orascom Trading Company (S.A.E), national equipment company
4. (S.A.E) and Orascom Free Zone - Onsi Sawiris and Partners. Acquisition would allow Orascom Construction to expand its footprint in services sector. Dubai Aerospace Enterprise announces USD 780mln of new senior unsecured term financings with a weighted average maturity of 7.7 years in two transaction. Announces USD 800mln of 24-month revolving credit facility maturity extensions from 2023 to 2025. Mubadala’s GlobalFoundries is aiming for a valuation of about USD 25bln in its initial public offering in the United States. GlobalFoundries set a price range between USD 42 and USD 47 a share for the IPO. At the upper end of the range, the company is expected to raise about USD 2.6bln. Including the "greenshoe option", which allows companies to sell additional shares during an IPO, GlobalFoundries could be valued at about USD 26bln. Funds associated with BlackRock Inc, Fidelity Management & Research Company LLC, some affiliates of Koch Strategic Platforms LLC, Columbia Management Investment Advisers LLC and Qualcomm Inc have committed to invest about USD 1.05bln in the IPO. Funds associated with Silver Lake Technology Management LLC have also committed to separately invest USD 75mln as part of a so-called concurrent private placement. Mubadala, which is selling 22mln shares in the IPO, will hold an 89.4% stake in GlobalFoundries and control 89.4% of the voting power, following the listing and the private placement, according to the latest filing. S&P says Dubai is set for a "modest" recovery this year on the back of a high vaccination rate in the UAE and limited COVID-19 restrictions, but weak international tourism will drag on the economy until late 2022, S&P Global Ratings said. The economy of the Middle East trade, finance, and tourism hub shrank 10.9% last year, with the coronavirus-driven decline in tourism contributing to 56% of the overall decline, the ratings agency said in a report on Tuesday. S&P expects Dubai's real gross domestic product growth to average about 2% between 2022 and 2024. UAE on Oct 19 announced 122 new Covid-19 cases, bringing the total confirmed cases in the country to 738,812. At the same time, 157 more patients have recovered from the virus, taking the tally of recoveries in the UAE to 732,595, UAE's Ministry of Health and Prevention said. It has reported 2 deaths from Covid19 during the past 24 hours. The nationwide death toll stands at 2,122. # GCC/MENA Saudi Arabia issued SAR 8.5bln in domestic sukuk for the month of October, the kingdom's National Debt Management Center said on Tuesday. The Islamic bonds were split into two tranches: a SAR 3.905bln one due in 2029, and another of SAR 4.595bln due in 2033. Saudi’s ACWA Power is among bidders of 1,200 MW Saudi renewable energy projects, consisting of four independent generation projects (IPP), according to the Ministry of Energy. French Total Solar and ACWA Power are both candidates for the Wadi Al-Dawasir project with a capacity of 120 MW, while ACWA Power and AlFanar Energy Company are candidates for the Laila project with a capacity of 80 MW, under Category A. ACWA Power and China's JinkoSolar are the candidates for the Al Rass project, which as a capacity of 700 MW, while JinkoSolar and the Abu Dhabi Future Energy Company (Masdar) are candidates for the 300 MW Saad project, under Category B. Saudi’s Etihad Etisalat posted quarterly net profit after zakat and tax SAR 281mln versus SAR 222mln year ago. Quarterly sales SAR 3,606mln versus SAR 3,355mln year ago. Saudi’s Yamama Cement posted quarterly net profit after zakat and tax SAR 40mln versus SAR 95.3mln year ago. Quarterly sales SAR 170.7mln versus SAR 249.6mln year ago. Bahrain’s Investcorp has sold its long leasehold interest in an office campus in the commercial area of Stuttgart, Germany. The sale of Bürocampus Wangen (“the Campus”) to Art-Invest Real Estate marks the company’s first real estate exit since it entered the European market in 2017. Egypt has started work on the third phase of its plan to enhance the efficiency of internet services in the country with up to USD 2bln investment, Amr Talaat, minister of communications and IT, told Asharq. The project includes delivery of fiber optic cables to around 4,500 villages in the next three years, he said. Talaat said once completed the project will benefit 58mln Egyptians with high-speed internet services.
5. Egypt ’s Centamin Q3 gold production at 103,546 ounces, a 3% improvement QoQ. Q3 revenue USD 182.9mln from gold sales of 103,514 oz at average realised gold price of USD 1,764/oz sold. FY gold production guidance maintained at 400,000 to 430,000 oz, targeting midpoint of 415,000 ounces. Egypt’s Societe Arabe International De Banque to exit Cairo National Company For Brokerage And Securities. Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian business
6. # UAE Focus list Company MCAP PRICE (AEDm) HIGH-LOW VALUATION Div. HISTORICAL RETURN (AED) 52WH 52WL PE PB (%)^ 1M% 3M% YTD% 12M% ADCB 57,051 8.20 8.36 5.56 11.66 1.00 3.3% 6.9 20.9 38.1 52.1 ADIB 20,666 5.69 5.82 4.17 11.13 1.06 3.6% (1.6) 6.2 26.1 40.8 ADNIC 3,015 5.29 5.93 3.75 7.01 1.15 6.6% 1.3 6.2 11.2 51.2 ADNOC Dist. 52,375 4.19 5.01 3.28 19.59 15.48 4.9% (2.0) (0.4) 17.2 31.2 ADNOC Drill.* 46,560 2.91 3.07 2.77 23.15 4.48 5.1% NA NA NA NA Agthia 4,385 5.54 7.32 3.99 NM 1.63 3.0% (6.6) (8.5) 35.6 32.5 Air Arabia 6,207 1.33 1.45 1.07 NM 1.18 0.0% (2.9) (0.7) 3.9 19.8 Ajman Bank 1,445 0.69 0.83 0.64 20.32 0.56 0.0% (2.3) (6.5) (11.8) 1.2 31,529 4.01 4.26 2.13 14.26 1.23 3.6% (5.0) 4.4 32.3 93.8 281,600 28.16 30.20 15.00 NA NA NA 4.3 14.4 NA NA Amanat 2,800 1.12 1.25 0.75 11.43 1.02 2.0% - 16.1 36.6 41.4 Aramex 5,593 3.82 4.49 3.50 30.38 2.13 3.4% 1.3 0.0 (9.9) (5.3) ASM 15,140 15.14 16.94 13.00 NM 4.10 NA (5.3) NA NA NA BOS 1,199 0.55 0.73 0.48 NA 0.35 0.0% (2.7) (0.0) (9.4) 7.7 Dana Gas 7,345 1.05 1.15 0.64 13.06 0.92 5.2% (0.9) 26.7 57.5 59.7 Deyaar 1,670 0.29 0.34 0.25 NA 0.39 0.0% (13.7) (1.4) 2.8 2.1 DFM 8,080 1.01 1.29 0.81 NM 1.03 0.0% (7.3) (7.3) 8.6 23.8 DIC 7,356 1.73 1.90 1.11 16.54 0.63 NA (3.9) 2.4 25.4 59.5 DIB 36,493 5.04 5.19 4.00 15.27 0.99 4.0% 0.2 5.9 14.1 28.3 DU 29,645 6.54 7.22 5.40 21.65 3.53 3.8% (1.2) (0.6) 17.9 23.2 Easy Lease 1,372 45.72 66.85 10.00 43.80 22.36 NA (0.4) 82.7 159.8 - Emaar Dev. 15,480 3.87 4.08 2.20 7.25 1.21 0.0% (1.5) 6.6 40.7 72.8 Emaar Malls 25,768 1.98 2.14 1.40 26.29 1.31 0.0% (5.3) 1.5 8.2 39.4 Emaar Pro. 28,353 3.96 4.29 2.55 13.06 0.51 2.5% (5.7) 0.5 15.1 53.4 ENBD 86,537 13.70 14.35 9.30 12.41 1.04 2.9% (4.5) 4.6 37.8 45.9 2,425 9.70 11.80 3.01 NM 6.98 NA 36.6 161.5 NA NA Aldar Alpha Dhabi ESG Eshraq 735 0.32 0.37 0.29 NA 0.54 NA (0.6) (8.4) (0.6) 1.9 Etisalat 220,898 25.40 25.80 16.64 23.98 4.69 4.7% 3.5 15.8 58.7 58.3 FAB 198,089 18.14 18.70 11.16 18.00 1.87 4.1% (0.5) 11.3 47.9 71.0 GFH IHC Julphar Mashreq 2,926 0.75 0.81 0.53 10.38 0.78 2.3% 2.5 (1.8) 29.4 39.0 266,594 146.40 152.80 38.00 56.64 16.72 NA 0.1 14.3 248.6 273.5 2,299 1.99 2.32 1.20 NA 2.42 NA 5.9 10.6 49.6 33.6 12,871 72.50 72.50 60.00 NA 0.67 0.0% 5.1 20.4 6.8 6.6 Palms Sports 2,157 14.38 21.48 4.30 26.74 7.99 NA 6.5 16.2 8.9 NA RAK Bank 6,537 3.90 4.24 3.50 13.00 0.83 3.8% (2.5) (1.3) 0.0 9.9 RAK Pro. 1,410 0.71 0.76 0.38 6.82 0.35 5.7% 0.4 12.3 46.9 85.0 RAK Cer. 2,723 2.74 3.08 1.33 NM 1.22 2.7% (0.8) 24.5 97.8 108.9 RPM 2,780 13.90 20.00 10.10 NA NA NA NA NA NA NA Salama 908 0.75 0.97 0.70 6.10 1.16 11.0% (5.3) (7.4) (2.4) 13.0 SIB 5,639 1.83 1.89 1.15 11.05 0.73 4.4% 5.2 21.2 46.9 67.2 Shuaa 1,674 0.66 0.80 0.59 8.30 1.09 4.5% (4.3) (6.9) 1.7 13.6 Tabreed 7,184 2.59 3.15 2.18 13.59 1.36 2.2% (5.8) (7.8) 1.9 20.0 140,543 1.25 1.78 1.22 28.86 1.98 2.0% (2.3) (7.7) (11.8) (10.9) Union Pro. 1,154 0.27 0.32 0.23 2.93 0.39 0.0% (10.6) 11.6 (3.9) (3.9) Waha 3,461 1.78 1.96 0.98 6.26 1.03 3.4% 1.7 25.4 56.0 80.0 Yahsat * 6,441 2.64 3.10 2.46 25.62 1.94 6.0% 2.7 NA NA NA Zee Store 3,802 38.02 53.00 7.95 NM 18.39 NA (2.5) 300.2 (Source Bloomberg) ^ Current dividend yield based on latest dividend declaration. * Expected dividend 262.1 NA TAQA
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