UAE: Daily Market Trading Report - 21 January

Transcription

1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 21 January 2020 3M 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 5,213 0.8% 2.4% 2.4% 4.8% ADX 112 112 DFM 2,851 -0.4% 3.0% 3.1% 13.5% Local 37% 78% -41% TASI 8,470 0.2% 2.2% 8.8% 1.0% Foreign 63% 22% 41% BHSEASI 1,643 0.1% 3.7% 7.6% 21.9% Institutional 70% 64% 6% EGX 13,774 -1.0% -0.5% -3.3% 2.5% Retail 30% 36% -6% Dow Jones 29,348 0.0% 3.1% 9.6% 18.8% DFM 179 179 - S&P 500 3,330 0.0% 3.4% 11.5% 24.7% Local 45% 61% -15% Nasdaq 9,389 0.0% 5.2% 16.1% 31.2% Foreign 55% 39% 15% FTSE 100 7,651 -0.3% 0.9% 7.0% 9.8% Institutional 49% 36% 13% 13,549 0.2% 1.7% 7.2% 20.9% Retail 51% 64% -13% DAX CAC40 - 6,079 -0.4% 0.9% 7.8% 24.7% Total 291 291 Nikkei225 24,084 0.2% 1.1% 7.1% 16.5% Local 42% 67% -25% HIS 28,796 -0.9% 3.3% 7.8% 6.3% Foreign 58% 33% 25% # Upcoming Corporate Actions & Events Date Company Event 22-Jan NBF BoD/General 23-Jan SIB BoD/Results 03-Feb MASQ BoD/Results 06-Feb KHCB BoD/Results 12-Feb MSCI Index 1Q20 Review Announcement 12-Feb GFH BoD/Results 13-Feb ITHMAAR BoD/Results 02-Mar MSCI Index 1Q20 Review Effective -
2. # KEY STORIES Hotel property in Dubai operated by Hong Kong’s Shangri-La Group of Hotels has sold for AED 700.2mln. The 42-storey tower on Sheikh Zayed Road, owned Al Jaber Group, was listed for sale earlier this month on UAE-based Emirates Auction, a company that manages public and online auctions in the Middle East for asset liquidation, real estate, automobiles, vehicle license plates, jewelry and various other items Shuaa Capital offshore unit finalized agreement to manage an investment portfolio of assets valued at approximately USD 400mln. The deal is set to increase assets under management of Shuaa and its subsidiaries to USD 13.4bln Design Studio Group, Depa’s Asian business unit has announced it’s the company together with five of its Singapore-incorporated subsidiaries made an application to the High Court of Singapore to commence a court-supervised process to reorganise their liabilities and to seek a moratorium against enforcement actions and legal proceedings by creditors against the Singapore applicants. Three of the company’s wholly-owned Malaysia‑incorporated subsidiaries have made applications to the High Court of Malaya to be placed under judicial management of a judicial manager. The company requested for a voluntary trading suspension of its shares listed on the SGX-ST. The Company intends to request for a lifting of the trading suspension as soon as it is appropriate to do so without compromising the interests of any stakeholder group Dubai Aerospace Enterprise signs new USD 300mln 4-year unsecured term loan and principal amount of loan can be increased to USD 500mln. Loan will support future financing needs of business Adnoc signed a strategic framework agreement with Italy's energy company, Eni, to explore new opportunities for collaboration in carbon capture utilization and storage No developer or owners association in Dubai can bar licensed holiday home operators from their buildings or communities. The directive also applies to facility management firms that operate on behalf of developers or owners associations in the upkeep of the buildings – DTCM Cafu, the on-demand fuel delivery service based in Dubai, announced it will be expanding its services to Oman after signing a deal with Muscat-based Al Maha Petroleum Growth in the Middle East and Central Asia region is expected at 2.8pct in 2020 - 0.1pct lower than in the October, but the growth will firm up to 3.2pct in 2021 - IMF IMF lowered its forecast for Saudi Arabia's economic growth to 1.9% this year due to oil output cuts agreed with oil exporters, having previously forecast the kingdom's gross domestic product would grow 2.2% Saudi Arabia's crude oil exports in November 2019 rose to 7.37mln barrels per day, from 7.06mln bpd in October Saudi's Bahri receives approval letter to extend shipping services contract for ministry of interior for 1 year Saudi's Bahri board proposes H2 cash dividend of SAR 1 per share
3. Kuwait Finance House 's shareholders have approved the acquisition of Bahrain's Ahli United Bank, KFH's chairman said on Monday, stepping closer to completing the Gulf's first major cross-border bank merger in recent years. KFH's Chairman said the merged entity would have assets of USD 101bln and shareholder equity of USD 10.5bln, with an annual forecast profit of USD 1.5bln, based on past performance Kuwait's NBK posted Q4 attributable net profit KWD 99.1mln vs KWD 98.3mln year ago. Board proposes FY cash dividend of 35 fils per share and FY stock dividend 5% Kuwait's Boubyan Bank posted Q4 net profit attributable KWD 17.4mln vs KWD 15.8mln year ago. Board proposes 9 fils/share FY cash dividend and 5 shares for every 100 shares FY stock dividend Egypt registered a primary budget surplus of 0.5% of GDP, amounting to EGP 30bln, during first half of the 2019/2020 fiscal year. The overall budget deficit for the period increased to 3.8% from 3.6% from the same period last year and the GDP will increase to 5.8% - 5.9% by end of fiscal year 2019/2020 instead of previously targeted 5.6%, Finance Minister said # Key Global Trends/ Market Clues Asian shares took a sudden lurch lower on Tuesday as mounting concerns about a new strain of pneumonia in China sent a ripple of risk aversion through markets. Safe-haven bonds and the yen edged higher as investors were reminded of the economic damage done by the SARS virus in 2003, particularly given the threat of contagion as hundreds of millions travel for the Lunar New Year holidays. “It’s an essential enough development that markets will monitor it on the risk radar, as if things turn critical it could provide a massive blow to the airline industry and a knockout punch to local tourism,” said Stephen Innes, Asia Pacific market strategist at AxiCorp. The mood change saw MSCI’s broadest index of Asia-Pacific shares outside Japan slip 1% after a steady start. Hong Kong, which suffered badly during the SARS outbreak, saw its index fall 2%. Japan’s Nikkei lost 0.8% and Shanghai blue chips 1.5%, with airlines under pressure. Oil prices eased on Tuesday as investors appeared to shrug off earlier supply concerns following a force majeure declared by Libya on two major oilfields amid a military blockade. Brent crude was trading down 30 cents, or 0.5%, at USD64.90 per barrel by 0318 GMT, after rising to their highest in more than a week on Monday. The International Monetary Fund predicted the world economy will strengthen in 2020, albeit at a slightly slower pace than previously anticipated amid threats related to trade and tensions in the Middle East. Global growth will accelerate to 3.3% from 2.9% in 2019, marking the first pickup in three years, the fund said Monday. Both figures are down compared with forecasts in October, and it marks the IMF's sixth straight reduction for 2019. The report, however, contained some modest hope, noting that risks are "less skewed" toward negative outcomes. For the IMF, which sees growth accelerating to 3.4% in 2021, the positives include signs that the slump in manufacturing and global trade is bottoming out, "intermittent" good news on U.S.-China trade talks and accommodative monetary policy. # UAE Stories A landmark hotel property in Dubai operated by Hong Kong’s Shangri-La Group of Hotels has sold for AED 700.2mln according to results posted on an auction website. The 42-storey tower on Sheikh Zayed Road, owned by Abu Dhabi-based family-owned conglomerate Al Jaber Group, was listed for sale earlier this month on UAE-based Emirates Auction, a company that manages public and online auctions in the Middle East for asset liquidation, real estate, automobiles, vehicle license plates, jewellery and various other items.
4. Shuaa Capital offshore unit finalized agreement to manage an investment portfolio of assets valued at approximately USD 400mln . The deal is set to increase assets under management of Shuaa and its subsidiaries to USD 13.4bln. Design Studio Group, Depa’s Asian business unit has announced it’s the company together with five of its Singapore-incorporated subsidiaries have on 20 January 2020, made an application to the High Court of the Republic of Singapore to commence a court-supervised process to reorganise their liabilities and to seek a moratorium against enforcement actions and legal proceedings by creditors against the Singapore Applicants. Three of the Company’s wholly-owned Malaysia‑incorporated subsidiaries have on 20 January 2020 made applications to the High Court of Malaya at Johor Bahru and the High Court of Malaya at Shah Alam to be placed under judicial management of a judicial manager. The company requested for a voluntary trading suspension of its shares listed on the SGX-ST in order to protect the interests of each stakeholder group, and to avoid a situation where trading in such shares may occur in the absence of complete information during the ongoing restructuring process. The Company intends to request for a lifting of the trading suspension as soon as it is appropriate to do so without compromising the interests of any stakeholder group. Dubai Aerospace Enterprise signs new USD 300mln 4-year unsecured term loan and principal amount of loan can be increased to USD 500mln. Loan will support future financing needs of business. Adnoc signed a strategic framework agreement with Italy's energy company, Eni, to explore new opportunities for collaboration in carbon capture utilization and storage (CCUS), where ADNOC is an industry leader, and additional strategic opportunities in research and development (R&D) across the oil and gas value chain. No developer or owners association in Dubai can bar licensed holiday home operators from their buildings or communities. This has been made explicitly clear by a new directive issued by Dubai Tourism and Commerce Marketing (DTCM) in its role as the sole licensing authority for holiday homes. The directive also applies to facility management firms that operate on behalf of developers or owners associations in the upkeep of the buildings. Cafu, the on-demand fuel delivery service based in Dubai, announced it will be expanding its services to Oman after signing a deal with Muscat-based Al Maha Petroleum. # GCC/ MENA The Middle East region will see slower growth in 2020, mainly due to geopolitical tensions and a cut in oil production under the Opec+ agreement, while the foreign direct investment (FDI) to the region also fell by 16pct in 2019, according to latest figures released by IMF and UNCTAD on Monday. "Growth in the Middle East and Central Asia region is expected at 2.8pct in 2020 - 0.1 percentage point lower than in the October, but the growth will firm up to 3.2pct in 2021. The downgrade for 2020 mostly reflects a downward revision to Saudi Arabia's projection on expected weaker oil output growth following the Opec+ decision in December to extend supply cuts,". She said prospects for several economies in the region remain subdued owing to rising geopolitical tensions of Iran, social unrest in Iraq and Lebanon and civil strife in Libya, Syria and Yemen. The International Monetary Fund (IMF) lowered its forecast for Saudi Arabia's economic growth to 1.9% this year due to oil output cuts agreed with oil exporters, having previously forecast the kingdom's gross domestic product would grow 2.2%. Saudi Arabia's crude oil exports in November 2019 rose to 7.37mln barrels per day, from 7.06mln bpd in October, official data showed on Monday. Saudi's Bahri receives approval letter to extend shipping services contract for ministry of interior for 1 year. Saudi's Bahri board proposes H2 cash dividend of SAR 1 per share. Kuwait Finance House's shareholders have approved the acquisition of Bahrain's Ahli United Bank, KFH's chairman said on Monday, stepping closer to completing the Gulf's first major cross-border bank merger in recent years. KFH's Chairman said the merged entity would have assets of USD 101bln and shareholder equity of USD 10.5bln, with an annual forecast profit of USD 1.5bln, based on past performance.
5. Kuwait 's NBK posted Q4 attributable net profit KWD 99.1mln vs KWD 98.3mln year ago. Q4 total operating revenue KWD 222.8mln vs KWD 221.4mln year ago. Board proposes FY cash dividend of 35 fils per share and FY stock dividend 5%. Kuwait's Boubyan Bank posted Q4 net profit attributable KWD 17.4mln vs KWD 15.8mln year ago. Q4 total operating revenue KWD 36.4mln vs KWD 34.8mln year ago. Board proposes 9 fils/share FY cash dividend and 5 shares for every 100 shares FY stock dividend. Egypt registered a primary budget surplus of 0.5% of GDP, amounting to EGP 30bln, during the first half of the 2019/2020 fiscal year. The overall budget deficit in the first half of 2019/2020 increased to 3.8% from 3.6% from the same period last year and the GDP will increase to 5.8% - 5.9% by end of fiscal year 2019/2020 instead of previously targeted 5.6%, Finance Minister said. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
6. # UAE FOCUS LIST - COMPANY DATA MCAP Company PRICE HIGH - LOW 52WH 52WL VALUATION TTM P/E DIV TTM P/B YLD (%)^ HISTORICAL RETURN 1M% 3M% 6M% ADCB 55,797 8.02 10.26 7.37 9.69 1.03 5.7% (0.7) 5.9 (8.3) (5.5) ADIB 20,883 5.75 5.78 4.13 9.41 1.14 4.7% 5.7 7.7 20.8 38.2 (16.7) ADNIC (A EDm) (A ED) 12M% 1,125 3.00 3.90 2.60 8.02 0.77 10.0% 7.1 5.3 9.1 38,999 3.12 3.15 2.00 18.00 12.06 6.7% 6.8 19.5 17.6 39.3 Agthia 2,028 3.38 4.15 3.17 11.99 1.04 4.4% (4.8) (5.1) (2.9) (14.9) Air Arabia 7,373 1.58 1.61 0.90 NA 1.43 NA 2.6 18.8 46.3 56.4 Ajman Bank 1,856 0.88 0.98 0.82 11.36 0.73 4.0% (1.7) (3.4) (6.0) 4.0 Al Waha Capital 1,789 0.92 1.85 0.89 NA 0.59 NA - (9.8) (8.9) (50.0) Aldar Properties 17,690 2.25 2.37 1.43 10.25 0.73 6.2% 4.7 1.8 5.6 47.1 Amanat Holdings 1,995 0.80 1.12 0.75 38.31 0.79 1.9% (7.7) (10.3) (20.0) (26.8) ADNOC Dist Amlak Finance 700 0.47 0.64 0.25 NA 0.61 0.0% (7.3) (15.1) 39.8 25.5 Arabtec 1,830 1.22 2.28 1.15 NA 1.54 4.1% (10.3) (37.8) (30.7) (42.2) Aramex 5,271 3.60 5.01 3.38 10.56 2.14 4.6% (0.0) (8.9) (14.5) (11.1) Bank of Sharjah 1,703 0.81 1.00 0.78 NA 0.44 0.0% 2.0 (1.7) (13.3) (18.8) DAMAC Properties 4,386 0.73 1.49 0.65 22.89 0.31 NA (2.8) (19.6) (22.8) (40.1) Dana Gas 6,436 0.92 1.10 0.80 NA 0.67 6.0% (1.5) (1.1) (7.7) (3.5) Deyaar Development 2,144 0.37 0.43 0.29 23.22 0.47 0.0% 1.1 (0.0) 11.7 0.3 Dubai Financial Market 7,520 0.94 1.00 0.65 64.03 0.96 0.0% (3.4) 5.6 23.5 14.5 Dubai Investment 5,825 1.37 1.63 1.04 15.10 0.49 NA 5.4 5.4 0.7 7.0 Dubai Islamic Bank 37,889 5.75 5.81 4.66 7.89 1.20 6.1% 6.5 8.9 11.0 13.4 DXB Entertainments 1,520 0.19 0.27 0.16 NA 0.50 0.0% (4.0) (6.9) (9.5) (23.7) Emaar Dev 15,600 3.90 4.91 3.26 4.49 1.74 13.3% (0.5) (3.2) (11.4) (2.3) Emaar Malls 23,946 1.84 2.17 1.43 10.31 1.34 5.4% - (4.2) (6.1) 9.5 Emaar Properties 30,213 4.22 5.53 3.85 4.85 0.58 3.6% 3.2 (4.7) (13.7) 5.0 Emirates Integrated Tele 26,517 5.85 5.86 5.00 16.16 3.23 6.0% 4.3 4.5 8.3 15.8 Emirates NBD 86,851 13.75 13.93 8.68 5.57 1.06 2.9% 6.6 14.1 22.9 54.3 742 0.32 0.55 0.30 NA 0.51 NA (6.2) (17.4) (23.1) (32.3) Etisalat 144,362 16.60 17.80 15.20 15.98 3.24 4.8% 1.2 1.0 (2.0) (1.5) First Abu Dhabi Bank 172,095 15.76 16.96 13.50 14.56 1.66 4.7% 3.0 3.0 1.0 8.1 2,975 0.81 1.11 0.78 9.64 0.71 3.9% (9.2) (8.2) (11.5) (8.8) 450 0.44 1.00 0.44 NA 0.52 0.0% (29.1) (37.7) (45.4) (47.0) 14,225 7.81 7.84 0.80 NM 13.88 NA 30.2 56.2 379.1 739.8 (53.0) Eshraq Investments GFH Gulf Navigation Holding IHC Julphar 1,132 0.98 2.07 0.77 NA 1.38 0.0% 14.9 (19.3) (38.2) 13,670 77.00 86.80 66.00 6.61 0.64 5.2% (5.4) 2.7 2.7 (1.3) National Bank of Fujairah 9,231 4.99 4.99 3.88 NA NA 1.3% NA NA 4.4 17.0 Tabreed 5,431 2.00 2.07 1.44 12.41 1.13 4.8% 2.6 10.5 13.6 17.6 RAK Bank 8,213 4.90 5.00 4.00 7.58 1.09 6.1% 6.8 6.5 7.7 16.7 932 0.47 0.50 0.39 5.26 0.24 0.0% 8.6 1.5 4.0 0.2 1,552 1.64 1.99 1.42 8.99 0.65 8.7% 3.1 6.5 5.1 (4.3) Mashreqbank RAK Properties RAK Ceramics SALAMA 701 0.58 0.71 0.43 31.26 0.92 NA (1.9) (0.9) (15.2) 20.6 Sharjah Islamic Bank 3,757 1.28 1.28 1.05 7.11 0.50 6.3% 4.1 4.1 13.3 4.1 SHUAA Capital 2,165 0.85 1.05 0.60 NA 1.62 NA (14.5) (8.2) (9.4) 4.1 195 1.30 1.67 0.97 NA 1.40 5.4% 20.4 8.3 (13.3) (18.8) 2,790 0.46 1.00 0.40 16.91 0.70 0.0% (27.0) (29.2) (41.6) (54.0) 961 0.22 0.44 0.22 NA 0.33 0.0% (23.5) (29.1) (36.4) (44.0) 1,897 0.92 1.30 0.89 NA 0.75 0.0% (7.1) (16.4) (25.8) (23.3) Takaful Emarat Insurance TAQA Union Properties United Arab Bank (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
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