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UAE: Daily Market Trading Report - 23 March

IM Insights
By IM Insights
7 months ago
UAE: Daily Market Trading Report - 23 March

Zakat, Sales


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  1. 23 March 2021 Morning Report Market Stats UAE Trading Summary Indices Close ADX 5 ,733 2,552 9,547 1,471 10,537 32,731 3,941 13,378 6,726 14,657 5,968 29,174 28,546 1,336 208 3,923 3,764 DFM TASI BHSEASI EGX Dow Jones S&P 500 Nasdaq FTSE 100 DAX CAC40 Nikkei225 HIS MSCI EM MSCI Asia US Futures Eur. Futures 1M 3M 1Y Change Change Change Change 0.2% -1.2% 0.5% 0.3% -2.5% 0.3% 0.7% 1.2% 0.3% 0.2% -0.5% -2.1% -0.4% -0.8% -0.2% -0.2% -0.2% 1.3% 0.4% 5.2% -1.2% -8.8% 3.8% 1.7% -1.1% 1.7% 5.1% 3.5% -3.3% -4.7% -6.5% -3.9% 0.5% 1.6% 12.2% 2.9% 10.0% -1.5% -1.1% 9.0% 6.9% 4.4% 4.2% 9.2% 9.2% 10.4% 10.6% 5.4% 7.6% 6.7% 8.4% 61.4% 43.2% 54.7% 5.4% 8.1% 70.7% 71.0% 94.5% 29.6% 64.2% 47.4% 76.2% 26.7% 74.4% 65.1% 76.7% 57.3% AEDm ADX Buy 897 Sell 897 Net Local 62% 38% 94% 6% 146 44% 56% 91% 9% 146 18% -18% 2% -2% - 47% 53% 45% 55% 1,042 48% 52% 51% 49% 1,042 -1% 1% -6% 6% - 60% 40% 45% 55% 16% -16% Foreign Institutional Retail DFM Local Foreign Institutional Retail Total Local Foreign # Last Trading Day's Top Short Sell Positions Company FAB Palms Short Volume (shrs.) (48,243) (1,000) Short Volume (%) 0.3% 0.1% Volume (m) 15.2 1.2 Upcoming Corporates Actions & Events Date Company Event 23-Mar GFH AGM 23-Mar AD Aviation BoD/ Investment 24-Mar ADCB AGM 24-Mar Aldar AGM 25-Mar DU AGM 27-Mar RAK Properties AGM Turnover (AEDm) 221.6 20.2 -
  2. # KEY STORIES Commercial Bank International shareholders reject to increase capital by way of issuing 430mln new shares for price of AED 1 per share Logistics company Tristar is to float on the Dubai Financial Market with a view to raising up to USD 160mln for a 24pct stake Air Arabia CEO says expects good demand over 2021 summer travel period. CEO says unclear if airline will have full year profit this year and dialogue ongoing with UAE government for support DAE announced it had substantially completed the agreement with American Airlines signed in the third quarter of 2020 to deliver 18 new Boeing 737 MAX 8 aircraft Mubadala and Snam has signed an agreement to work on projects to develop hydrogen initiatives in the UAE and elsewhere UAE plans to increase annual industrial revenue to AED 300bln over 10 years, from AED 133bln UAE on March 22 announced 1,871 new Covid-19 cases and 2,144 recoveries. The tally takes total cases in UAE to 442,226 with 424,840 recoveries and 1,445 deaths Saudi Aramco CEO says we are optimistic about oil market and currently doing detailed engineering to raise production capacity to 13mln bpd Saudi’s Abdullah Al Othaim Markets posted FY net profit after zakat and tax SAR 450.97mln, up 30.8% YoY. FY sales SAR 8,811.5mln, up 7.91% YoY Saudi Airlines Catering Company posted FY net loss after zakat and tax SAR 334.7mln versus profit of SAR 463.9mln year ago. FY sales SAR 926.6mln, down 57% YoY Kuwait's Boubyan Bank has hired a group of banks to arrange a planned issuance of U.S. dollar-denominated perpetual sukuk, or Islamic bonds Telecom Egypt raises proposed dividend to EGP 0.75 for FY 2020 in light of Vodafone Egypt's dividend distribution Egypt’s Centamin made a net profit of USD 156.0mln last year, up from USD 87.5mln in 2019, despite producing less gold and booking higher costs per ounce Egyptair expects to ask the Egyptian government for EGP 5 to 7bln in assistance this year, needed to pay for outstanding loans and aircraft leasing fees, its chief executive said # Key Global Trends/ Market Clues Asian stocks reversed earlier gains on Tuesday, weighed by Chinese markets as investors took profit on a recent rally in some mainland firms, although ebbing inflation fears helped shore up broader sentiment in the region. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.57%, hurt by a 1.5% fall in Chinese blue chips. Persistent worries of policy tightening at home also continued to weigh on highflying sectors and stocks with lofty valuations as investors turned cautious. Beyond China, Asian shares were mixed after Wall Street's gains on Monday as investors cheered a break in the recent run-up of bond yields. The Dow Jones Industrial Average rose 0.32%, the S&P 500 gained 0.70% and the Nasdaq Composite added 1.23%. Oil prices fell 1% on Tuesday on concerns that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in fuel demand and as producers cut prices, indicating ample oil supply. U.S. West Texas Intermediate (WTI) crude futures for May delivery fell 62 cents, or 1%, to USD 60.94 a barrel at
  3. 0149 GMT . The April contract expired on Monday at USD 61.55, up 13 cents from Friday, after plunging more than 6% last week. Brent crude futures for May dropped by 68 cents, or 1.1% to USD 63.94, erasing a 9 cent gain in the previous session. OPEC+ compliance with oil production cuts in February rose to 113%, two OPEC+ sources from the producer group told Reuters on Monday. The figure compares with a January compliance figure of 103%. Compliance from members of the Organization of the Petroleum Exporting Countries reached 124%, a figure which includes the additional voluntary cut from Saudi Arabia, said one of the sources. Compliance from non-OPEC members in the alliance reached 94%, the source added. # UAE Stories Commercial Bank International shareholders reject to increase capital by way of issuing 430mln new shares for price of AED 1 per share. Logistics company Tristar is to float on the Dubai Financial Market with a view to raising up to USD 160mln for a 24pct stake. The company, based in the Jebel Ali Industrial Area, was founded in 1998 as a road transport business but has evolved to become a partner to major national and international oil firms. It is expected to list its shares next month. The shares are being sold by the company's three significant shareholders, Kuwait-based logistics group Agility, Gulf Investment Corporation and a vehicle owned by Mr Mayne, which own 65.12pct, 19.61pct and 15.27pct of the shares, respectively. The placement will include an issuance of 199mln new shares, in addition to a secondary offering of up to 88.8mln shares by existing shareholders. Sovereign wealth fund Emirates Investment Authority has the right to subscribe to buy 5% of the offer. Tristar has a fleet of more than 2,000 lorries and 35 maritime vessels. It operates 69 fuel farms and more than 100 remote sites in 21 countries across three continents. The company, which was founded by Mr Mayne, has grown revenue by an average 12.4pct over the past three years to USD 453.4mln by 2020, on which it made earnings before interest, tax, depreciation and amortisation of USD 103.6mln. It plans to use some of the proceeds of the float to repay AED 197mln of debts to related parties as it looks to reduce current net debt-to-EBITDA levels of 3.5x as at the end of last year to 2.2x2.5x. It paid a dividend of USD 29.6mln to shareholders last year, including a special USD 19.6mln preIPO dividend. For its 2021 financial year, the company said it is targeting a pay-out ratio of 60-70pct of net income. In the following years, it expects to pay about 60pct of net income as a dividend. Air Arabia CEO says expects good demand over 2021 summer travel period. Business travel will take longer to return to pre-pandemic levels compared to other segments. CEO says unclear if airline will have full year profit this year. Airline is comfortable it can get through pandemic and is doing well. Dialogue ongoing with UAE government for support. No plans to amend fleet orders or delivery schedules. Dubai Aerospace Enterprise announced it had substantially completed the agreement with American Airlines signed in the third quarter of 2020 to deliver 18 new Boeing 737 MAX 8 aircraft. Mubadala and Italian gas infrastructure group Snam has signed an agreement to work on projects to develop hydrogen initiatives in the United Arab Emirates and elsewhere, the two companies said on Monday. UAE plans to increase annual industrial revenue to AED 300bln over 10 years, from AED 133bln. UAE Prime Minister Mohammed Bin Rashid and Abu Dhabi Crown Prince Mohamed Bin Zayed Al Nahyan announce ''operation 300bln'' national industrial strategy on twitter. The United Arab Emirates on March 22 announced 1,871 new Covid-19 cases, bringing the total confirmed cases in the country to 442,226. At the same time, 2,144 more patients have recovered from the virus, taking the tally of recoveries in the UAE to 424,840. UAE's ministry of health and prevention said. It has reported 7 deaths from Covid-19 during the past 24 hours. The nationwide death toll stands at 1,445.
  4. # GCC/MENA Saudi Aramco CEO says we are optimistic about oil market and currently doing detailed engineering to raise production capacity to 13mln bpd. Saudi’s Abdullah Al Othaim Markets posted FY net profit after zakat and tax SAR 450.97mln, up 30.8% YoY. FY sales SAR 8,811.5mln, up 7.91% YoY. Saudi Airlines Catering Company posted FY net loss after zakat and tax SAR 334.7mln versus profit of SAR 463.9mln year ago. FY sales SAR 926.6mln, down 57% YoY. Temporary suspension of flights led to a direct impact on the company's operations with a decrease in revenue. Kuwait's Boubyan Bank has hired a group of banks to arrange a planned issuance of U.S. dollardenominated perpetual sukuk, or Islamic bonds, a document showed on Monday. Telecom Egypt raises proposed dividend for FY 2020 in light of Vodafone Egypt's dividend distribution. Proposed raising dividend for FY 2020 to EGP 0.75 per share, a 50% increase on previously proposed dividend. Egypt’s Centamin made a net profit of USD 156.0mln last year, up from USD 87.5mln in 2019, despite producing less gold and booking higher costs per ounce. Earnings before interest, taxes, depreciation, and amortization rose 54% to USD 438.5mln. The company declared a final dividend of 3 cents a share, bringing the full-year distribution to 9 cents or 15 cents if including the 2019 final dividend which was replaced by an interim payment in the first quarter of 2020. For 2021, Centamin reaffirmed gold production guidance of 400,000-430,000 ounces, with all-in sustaining costs, which include cash costs, sustaining capital expenditure, exploration and general and administrative costs of between USD 1,150 and USD 1,250 per ounce. In addition, the company reiterated its intention to pay a minimum aggregate dividend of USD 105mln, up from USD 104.0mln in respect to 2020. Egyptair expects to ask the Egyptian government for EGP 5 to 7bln in assistance this year, needed to pay for outstanding loans and aircraft leasing fees, its chief executive said. Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian business
  5. # UAE Focus list MCAP PRICE VALUATION Div. (AEDm) (AED) 52WH 52WL PE PB (%)^ 1M% 3M% 6M% 12M% ADCB 42,997 6.18 6.75 3.82 11.30 0.76 4.4% (5.2) (0.3) 11.0 43.5 ADIB 17,579 4.84 5.16 3.19 13.31 0.92 4.2% 1.0 2.3 19.2 44.3 2,953 5.18 5.24 2.95 7.96 1.18 6.8% 0.2 1.6 34.5 40.0 54,375 4.35 4.43 2.40 22.36 15.64 4.7% 9.6 14.5 32.6 93.1 Agthia 4,680 6.50 7.00 2.50 113.14 2.05 2.5% 6.6 51.5 97.0 153.4 Air Arabia 5,833 1.25 1.42 0.87 NA 1.29 0.0% (0.8) 2.5 10.6 37.1 Ajman Bank 1,512 0.72 0.83 0.51 28.99 0.60 0.0% (4.0) (5.0) 2.9 39.8 Al Waha 2,333 1.20 1.30 0.62 9.55 0.73 NA (2.4) 10.1 25.0 50.0 29,249 3.72 3.88 1.38 15.14 1.14 3.9% 2.5 17.4 81.5 168.4 2,125 0.85 0.92 0.56 209.36 0.85 2.6% 6.9 3.9 3.7 48.5 330 0.22 0.38 0.21 NA 0.67 0.0% - (13.0) (32.3) 4.8 Aramex 5,593 3.82 4.49 2.00 22.84 2.08 3.4% (2.6) (11.2) (4.5) 99.6 BOS 1,279 0.61 0.77 0.50 NA 0.39 0.0% (6.0) (4.1) 14.9 (9.1) DAMAC 6,534 1.08 1.75 0.40 NA 0.50 NA (5.3) (25.5) 15.6 163.4 Dana Gas 5,247 0.75 0.80 0.53 44.39 0.66 7.3% 6.4 7.6 4.6 48.7 Deyaar 1,514 0.26 0.33 0.20 NA 0.35 0.0% (3.7) (5.4) (9.7) 31.7 DFM 8,480 1.06 1.29 0.50 61.48 1.09 0.0% 5.0 16.2 24.0 121.2 Dubai Inv. 6,888 1.62 1.72 0.99 19.82 0.58 NA 10.2 12.5 36.1 77.0 Company ADNIC ADNOC Dist Aldar Amanat Amlak DIB HIGH-LOW HISTORICAL RETURN 34,756 4.80 5.15 3.04 12.64 0.86 4.2% 0.4 4.8 14.3 31.4 Easy Lease 716 23.88 26.80 10.00 29.15 15.08 NA 1.1 49.4 - - Emaar Dev 10,400 2.60 3.20 1.79 6.28 0.92 0.0% 0.8 (4.4) 5.7 21.5 Emaar Malls 22,254 1.71 1.99 0.98 31.63 1.17 0.0% 3.6 (6.6) 17.1 74.7 Emaar Pro. 25,274 3.53 4.22 2.03 9.66 0.45 2.8% (2.2) 3.2 21.7 73.9 Emirates Tele 32,184 7.10 7.22 4.72 22.30 3.76 3.9% 10.2 25.4 34.2 57.6 Emirates NBD 70,746 11.20 12.05 6.33 11.20 0.84 3.6% 2.2 11.0 10.5 72.9 Eshraq 802 0.35 0.46 0.16 NA 0.57 NA 16.9 4.5 (2.8) 101.8 Etisalat 182,633 21.00 21.46 12.18 20.43 3.72 5.7% 6.3 21.0 26.8 78.6 FAB 159,869 14.64 15.10 8.55 15.15 1.47 5.1% 2.3 16.7 37.0 77.0 GFH 2,312 0.62 0.69 0.49 12.68 0.63 2.7% (3.1) 5.3 1.1 31.9 Gulf Nav. IHC Julphar Mashreqbank 341 0.34 0.55 0.28 NA 0.65 0.0% (7.7) (18.5) (27.2) (9.5) 91,050 50.00 50.05 13.50 30.15 11.64 NA 6.8 21.1 32.4 270.4 1,432 1.24 1.65 0.54 NA 1.59 0.0% (17.3) (10.1) (6.8) 73.6 (9.7) 11,540 65.00 71.95 62.00 NA 0.59 6.2% - (4.3) 3.6 NBF 9,536 4.98 4.98 4.98 NA NA 1.9% NA NA NA 3.3 Tabreed 7,441 2.74 2.95 1.82 13.76 1.44 2.1% (0.4) 5.8 24.5 48.1 RAK Bank 6,369 3.80 4.24 3.33 12.64 0.82 3.9% (2.6) (1.6) 8.6 6.5 RAK Pro. 1,064 0.53 0.64 0.33 9.37 0.27 7.5% (1.7) 13.7 38.2 55.5 RAK Cer. 1,769 1.78 1.85 1.24 NA 0.83 4.2% 2.3 19.5 28.1 36.9 SALAMA 1,032 0.85 0.92 0.33 6.66 1.21 9.7% 2.8 (0.6) 8.2 185.7 SIB 4,037 1.31 1.43 0.95 9.95 0.53 6.1% (2.2) 6.0 18.7 46.0 SHUAA 1,674 0.66 0.77 0.40 13.07 1.12 4.5% (4.2) (2.9) 1.1 58.7 Takaful E. Ins. 210 1.40 1.60 1.20 NA 1.68 5.9% (11.4) (10.8) (2.1) 0.0 156,284 1.39 1.78 0.55 41.04 2.52 1.8% (0.7) (3.5) 1.0 134.1 Union Pro. 1,141 0.27 0.39 0.20 3.96 0.38 0.0% (0.4) (5.3) (10.1) 27.9 UAB 1,825 0.89 0.90 0.59 NA 1.09 0.0% 9.7 4.2 (1.0) (1.2) TAQA (Source: Bloomberg) ^ current dividend yield based on latest dividend declaration
  6. Disclaimer This report has been issued by International Securities for informational purposes only . This report is not and should not be construed as an offer or the solicitation of an offer to purchase or subscribe or sell any investment or subscribe to any investment management or advisory service. Recipients should not base their investment decisions on this report and should make their own investigations, and obtain independent advice, as appropriate. International Securities has based this document on information obtained from publicly available information, and sources it believes to be reliable without being independently verified for their accuracy or completeness. It makes no guarantee, representation or warranty as to its accuracy or completeness and accepts no responsibility or liability in respect thereof or for any reliance placed by any person on such information. All opinions expressed herein are subject to change without notice. This report may not be reproduced or circulated without the prior written consent of International Securities. International Securities owns the intellectual property rights and any other material contained in this report. International Securities is regulated by the United Arab Emirates Securities and Commodities Authority under license number 20200000017. International Securities is a member of the Abu Dhabi Securities Exchange, Dubai Financial Market and NASDAQ Dubai.