UAE: Daily Market Trading Report - 27 February

Transcription

1. IS Morning Report Tuesday , February 27, 2018 Global & Regional Benchmarks Indices Close UAE Trading Summary 1Day 1Mnth 3Mnth YTD 1Y Change Change Change Change Change BUY (AEDm) SELL NET ADX 4,593 0.2% -1.1% 7.5% 4.4% -0.8% ADX 107 107 - DFM 3,307 0.0% -4.7% -4.0% -1.9% -9.0% Local 62% 58% 4% TASI 7,472 -0.3% -0.7% 7.7% 3.4% 7.2% Foreign 38% 42% -4% KWSEI 6,757 0.8% 1.9% 8.3% 5.4% -0.8% Institutional 52% 62% -10% 15,454 -0.1% 1.9% 8.7% 2.9% 28.5% Retail 48% 38% 10% Dow Jones 25,709 1.6% -3.4% 9.0% 4.0% 23.4% DFM 399 399 - S&P 500 2,780 1.2% -3.2% 6.8% 4.0% 17.3% Local 53% 42% 11% Nasdaq 7,421 1.1% -1.1% 7.9% 7.5% 26.6% Foreign 47% 58% -11% FTSE 100 7,290 0.6% -4.9% -1.3% -5.2% 0.5% Institutional 42% 45% -3% 12,527 0.3% -6.1% -3.6% -3.0% 6.0% Retail 58% 55% 3% 5,344 0.5% -3.3% -0.3% 0.6% 10.3% Total 506 506 - Nikkei225 22,421 1.2% -5.1% -0.3% -1.5% 17.3% Local 55% 45% 10% HIS 31,544 0.1% -4.9% 6.3% 5.4% 31.8% Foreign 45% 55% -10% EGX DAX CAC40 Upcoming Corporate Actions & Events Date Company Event 28-Feb AGTHIA BOD 28-Feb Manazel BOD 1-March ARAMEX BOD 3-March Sharjah Cement AGM 07-March Gulf Medical Projects AGM 10-March RAK Properties AGM 11-March UNB AGM 14-March RAK Bank AGM 20-March GFH AGM 21-March Ajman Bank AGM 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 Facsimile: +971 26 354 669 Website: www.integratedsecurities.ae
2. IS Morning Report 21-March DU Tuesday , February 27, 2018 AGM Key Stories GFH hopes to develop Saudi business, new chairman says ITHMAAR reported a net loss of US$72.40 million for the year ended 31 December 2017, compared to a net profit of US$13.80 million reported for 2016 ADNOC Distribution fourth-quarter profit rises 6.8% on higher oil prices ADNOC awards Japan's INPEX 10 pct stake in new oil offshore concession ENBD Reit reports 88% occupancy across Dubai portfolio ALDAR appoints industry veteran David Dudley to lead investments and partnerships division FAB Sees Interest-Rate Jump Boosting Its Profit Moody's latest report highlights UAE insurers surge in profitability as regulatory changes bolster prices Apollo's Dubai Partnership for Middle East Deals Is Said to End Saudi Aramco considers buying stake in Indian refineries Jump in Islamic tax liabilities worries Saudi banks S&P Sees Mideast, North African Sovereign Borrowing -6% This Yr. Bank Muscat selects banks for dollar bond –sources. Saudi Regulator Imposes $83 Mln in Penalties Over Mobily Insider Trading Scandal SaudiGulf considers 787 model in Boeing talks Palm Hills Sees Record Sales in 2018 on Egypt Oasis Debut Average yields on Egypt's 10-year bonds jump almost 100 bp. Russia, Egypt may restart talks on Red Sea airport checks in spring. Global Markets Wrap: Asian shares extended their recovery on Tuesday, hitting a three-week high as U.S. borrowing costs eased ahead of Federal Reserve Chairman Jerome Powell's highly-anticipated first congressional testimony later in the day. The 10-year U.S. Treasuries yield US10YT=RR eased to 2.864 percent, dropping further from its fouryear peak of 2.957 percent touched on Feb 21, driven by month-end buying as well as position adjustments ahead of Powell's testimony. 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 Facsimile: +971 26 354 669 Website: www.integratedsecurities.ae
3. IS Morning Report Tuesday , February 27, 2018 Powell's debut appearance is seen as critical for financial markets at a time when many investors are nervous about the Fed's policy normalisation following years of stimulus after the financial crisis almost a decade ago. Many investors expect the Fed to raise interest rates three times this year, with some pundits predicting four, if U.S. inflation starts to take off, especially as growth is set to get another boost from the Trump administration's tax cuts and spending plans. Yet, there are worries higher dollar bond yields could prompt investors to shift funds to bonds from riskier assets, especially when the valuation of the world's stocks are quite expensive even after their sell-off earlier this month. Crude closed at a three-week high as booming stock markets stoked optimism about economic growth that drives energy demand. Crude futures rose 0.6 percent in New York on Monday. Blue-chip stocksreached a level not seen since the start of this month and the dollar retreated from earlier gains, boosting oil’s appeal as a store of value. Prices flirted with the $64-a-barrel mark against the backdrop of Saudi Arabian Energy Minister Khalid Al-Falih’s weekend remarks about phasing out production caps that have been in effect since late 2016. Prices were also supported by U.S. Energy Information Administration data on Thursday that showed domestic oil production dipped to 10.27 million barrels per day from 10.271 million bpd the week before. 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 Facsimile: +971 26 354 669 Website: www.integratedsecurities.ae
4. IS Morning Report Tuesday , February 27, 2018 UAE: GFH hopes to develop Saudi business, new chairman says, GFH Financial hopes in future to develop business in Saudi Arabia, the company’s new chairman told Al Arabiya television on Monday. Jassim Alseddiqi, who is also chief executive of Abu Dhabi Financial Group, was speaking after he was elected chairman of GFH’s board. ITHMAAR reported a net loss of US$72.40 million for the year ended 31 December 2017, compared to a net profit of US$13.80 million reported for 2016, Net loss attributable to equity holders for the year ended 31 December 2017 was US$84.71 million, compared to a net profit US$3.28 million reported for 2016. The 2017 financial results included a net loss of US$56.15 million for the three-month period ended 31 December 2017, compared to a net loss of US$2.93 million for the same period in 2016. Net loss attributable to equity holders for the three-month period ended 31 December 2017 was US$57.67 million, compared to the US$3.23 million net loss reported for the same period in 2016. ADNOC Distribution fourth-quarter profit rises 6.8% on higher oil prices, Profit for the three months ending December 31 rose to Dh492.4 million, or Dh0.039 per share, from the end of same period in 2016, the company said in a regulatory filing to Abu Dhabi Securities Exchange, where its shares are traded. A 16.2 per cent rise in the price of Brent crude in the fourth quarter of last year helped boost income. Full-year 2017 net income climbed 1.3 per cent to Dh1.80 billion from 2016. ADNOC awards Japan's INPEX 10 pct stake in new oil offshore concession, DUBAI/TOKYO, Feb 26 (Reuters) - Abu Dhabi National Oil Co’s (ADNOC) signed on Monday a new 40-year agreement with INPEX awarding the Japanese oil company a 10-percent stake in its Lower Zakum concession, a deal set to help the UAE expand its foothold in Asia. Separately, INPEX’s stakes in Abu Dhabi’s Satah and Umm Al Dalkh concession have been extended for 25 years, ADNOC and INPEX said in statements. The Japanese oil company will maintain its 40 percent stake in Satah concession and increase its Umm Al Dalkh share to 40 percent from 12 percent. INPEX has paid a fee of 2.2 billion dirhams ($600 million) for the 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 Facsimile: +971 26 354 669 Website: www.integratedsecurities.ae
5. IS Morning Report Tuesday , February 27, 2018 Lower Zakum concession, ADNOC said. INPEX has also paid 920 million dirhams to extend its share in the Satah and Umm Al Dalkh concession. ENBD Reit reports 88% occupancy across Dubai portfolio, ENBD Reit, the Sharia-compliant real estate investment trust managed by Emirates NBD Asset Management, said its portfolio occupancy rate increased to 88 per cent, driven by leasing in flagship assets such as the Burj Daman in Dubai International Financial Centre. “ENBD Reit’s office portfolio occupancy growth remains positive, driven by leasing at our flagship DIFC asset,” Anthony Taylor, head of real estate at Emirates NBD Asset Management, said in a statement on Monday. “We have experienced strong tenant demand in Burj Daman, due to its prime location, making it a building of choice for international financial, legal and corporate advisory firms.” Aldar appoints industry veteran David Dudley to lead investments and partnerships division, Aldar, is pleased to announce the appointment of David Dudley as Executive Director, Investments & Partnerships. Dudley has over 20 years’ global real estate experience, including nine years in the MENA region as Director of Operations. During this time, he was responsible for JLL’s regional offices in Abu Dhabi, KSA and Egypt, executing multi-disciplinary assignments including development advisory and transactions, investment transactions, leasing, valuations and strategy. FAB Sees Interest-Rate Jump Boosting Its Profit, First Abu Dhabi Bank PJSC expects a rise in U.S. interest rates to boost its profits because the United Arab Emirates is likely to follow suit. The UAE’s biggest bank sees profit climbing by between 200 million dirhams ($54 million) and 250 million dirhams for every percentage-point hike in U.S. interest rates, Mahmood Al Aradi, head of the firm’s global-markets business, said in a Bloomberg Television interview to be aired Tuesday. FAB, as the bank is known, holds 28 percent of its liabilities in current-account and savings-account deposits which are interest-free, and therefore “higher interest rates mean higher income to the bottom line,” he said. Moody's latest report highlights UAE insurers surge in profitability as regulatory changes bolster prices, the aggregate profit of the UAE's 29 listed insurers rose 46% to AED1.31 billion ($0.36 billion) in 2017, from AED0.9 billion ($0.25 billion) in 2016. A sustained improvement in profitability would also help the market regenerate capital over the medium to long term, a credit positive. Apollo's Dubai Partnership for Middle East Deals Is Said to End, Apollo, which oversees about $250 billion in private equity, credit and real estate assets globally, had planned to use Frontier to expand in the Middle East but wasn’t successful in finding any regional investments. It bid for a controlling stake in Saudi Arabian supermarket chain Al-Raya For Foodstuff Co. in 2015 after Frontier sourced the deal, people familiar with the matter said at the time. The talks didn’t result in an agreement. GCC: Saudi state-run oil giant Aramco is looking to buy stake in existing Indian refineries and in their capacity expansion, as well as in the proposed petrochemicals refinery on India's west coast, Saudi Arabian Energy Minister Khalid Bin Abdulaziz Al Falih said on Saturday. Speaking to reporters here during his ongoing official visit to India, Al Falih said Aramco had already signed an agreement to initiate talks for acquiring stake in the proposed Rs1.8-trillion refinery in Maharashtra. Jump in Islamic tax liabilities worries Saudi banks. A jump in retroactive Islamic tax liabilities faced by Saudi Arabian banks is creating concern about damage to their earnings and the government's motives in demanding the money. While Saudi banks and other firms generally do not pay corporate tax, they are 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 Facsimile: +971 26 354 669 Website: www.integratedsecurities.ae
6. IS Morning Report Tuesday , February 27, 2018 subject to an annual Islamic tax called zakat, a 2.5 percent levy on each bank's net worth. Analysts say the way in which this is assessed can be complex and opaque. In the last couple of weeks, several major banks have disclosed that the government's General Authority of Zakat and Tax (GAZT) is seeking additional zakat payments from them for years going back as far as 2002. In some cases, the demands exceed half of a bank's annual net profit. S&P Sees Mideast, North African Sovereign Borrowing -6% This Yr, S&P says it sees fiscal consolidation measures in GCC and higher oil prices reducing GCC sovereigns’ funding needs, citing report. S&P sees 13 Mideast, North African sovereigns that it rates borrowing about $181b this year from domestic and international commercial sources, down $11b from 2017, Egypt is still the largest borrower with $46.4b, or 26% of the region’s gross commercial long-term borrowing, followed by Iraq at 19% or $35b, and Saudi Arabia at 17% or $31b. Bank Muscat selects banks for dollar bond –sources. Saudi Regulator Imposes $83 Mln in Penalties Over Mobily Insider Trading Scandal, Saudi Arabian authorities imposed about $83 million (59.05 million pounds) in penalties for insider trading in the shares of Etihad Etisalat (Mobily), the country's second-largest telecommunications operator, the securities regulator said on Monday. The penalties comprised one of the largest punishments ever handed down for a securities scandal in the kingdom. Over the past decade, Saudi authorities have been among the region's most aggressive in cracking down on illicit equities trading. SaudiGulf considers 787 model in Boeing talks, Talks between SaudiGulf Airlines and Boeing could include deals for the 787 Dreamliner, the Saudi carrier’s chief commercial officer said on Monday. The privately owned airline signed a preliminary agreement for 16 Boeing jets last May during a visit to Saudi Arabia by US President Donald Trump. Saudi Gulf’s Chief Commercial Officer Karim Makhlouf said at the weekend that the agreement covers talks for the 787-9 and 787-10 or the 777-200 and 777-300 jets. The airline previously said the deal could include Boeing 777s. Saudi Gulf operates a fleet of four 136-seat Airbus A320s on six domestic routes and will launch its first international flight to Dubai on March 1. Egypt: Egyptian luxury-home builder Palm Hills Development SAE is targeting record sales this year, boosted by the Oasis project west of Cairo that it will begin offering in April. The Cairo-based company expects 12 billion Egyptian pounds ($680 million) of contracted sales in 2018, up from 10.5 billion pounds last year, as it starts selling both Oasis and its first project in Alexandria, the company said in an emailed statement on Monday. Average yields on Egypt's 10-year bonds jump almost 100 bp, Average yields on Egypt’s 10-year treasury bonds jumped by nearly 100 basis points on Monday at the first auction of its kind since the central bank began loosening monetary policy. The 10-year bond rose to 14.800 percent from 13.871 percent at the last auction on Feb. 12, central bank data showed on Monday. It had dropped from 14.732 percent on Jan. 30 to 13.871 as investors anticipated a rate cut. “An upward correction ... had to happen, but the rate is still far below Aug. levels,” said Noaman Khalid, CI Capital Asset Management economist. The 10-year bond was at 17.798 percent in August after the central bank hiked rates by 200 basis points. Russia, Egypt may restart talks on Red Sea airport checks in spring, Russia and Egypt could restart talks on checking Red Sea airports near resorts of Sharm el-Sheikh and Hurghada in the spring, after the 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 Facsimile: +971 26 354 669 Website: www.integratedsecurities.ae
7. IS Morning Report Tuesday , February 27, 2018 resumption of Russian flights to Cairo, RIA news agency cited Transport Minister Maxim Sokolov on Monday. Russia halted civilian air traffic to Egypt in October 2015 after Islamist militants detonated a bomb on a Russian Metrojet flight departing the tourist resort of Sharm el-Sheikh, killing all 224 people on board. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) Daily Foreign Ownership Increase Company Name Foreign Change Ownershp (%) (%) Shares Mcap Change Change (AED) Dar Al Takaful 21.23% 0.06 90,000 62,900 Manazel 20.54% 0.06 1,560,000 904,652 Dubai Isl. Ins 12.31% 0.05 112,875 86,900 GFH 72.28% 0.04 1,430,073 2,109,197 Air Arabia 23.78% 0.04 1,866,680 2,426,288 GGICO 19.46% 0.04 716,533 250,746 ADCB 15.06% 0.01 519,823 3,799,286 KHCB 0.08 0.01 95,936 96,147 IFA 0.02 0.01 67,289 25,159 Eshraq 0.36 0.01 232,500 172,022 Daily Foreign Ownership Decrease Company Name Foreign Change Ownershp (%) (%) Shares Mcap Change Change (AED) Al Khazna Ins. 4.73% -0.54 (2,268,000) (612,260) Shuaa Capital 18.03% -0.15 (1,597,500) (1,772,935) Marka 14.50% -0.15 (750,000) (428,180) Arabtec 18.31% -0.08 (1,200,000) (2,999,510) DIB 17.30% -0.06 (2,959,203) (18,233,698) Methaq Takaful Ins. 23.73% -0.06 (90,000) (73,788) Union Properties 18.91% -0.03 (1,286,862) (1,159,273) RAK Bank 18.05% -0.03 (502,800) (2,413,399) Sudatel 79.88% -0.02 (242,135) (135,574) 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 Facsimile: +971 26 354 669 Website: www.integratedsecurities.ae
8. IS Morning Report Gulf Nav Tuesday , February 27, 2018 30.10% -0.02 (200,000) (215,965) (Source: ADX, DFM, Bloomberg, Reuters) 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 Facsimile: +971 26 354 669 Website: www.integratedsecurities.ae