UAE: Daily Market Trading Report - 28 February

Transcription

1. IS Morning Report Wednesday , February 28, 2018 Global & Regional Benchmarks Indices Close UAE Trading Summary 1Day 1Mnth 3Mnth YTD 1Y Change Change Change Change Change BUY (AEDm) SELL NET ADX 4,599 0.1% -1.1% 7.4% 4.4% 1.0% ADX 157 157 - DFM 3,286 -0.6% -4.7% -3.9% -1.9% -9.5% Local 38% 42% -4% TASI 7,465 -0.1% -0.7% 6.6% 3.4% 7.1% Foreign 62% 58% 4% KWSEI 6,770 0.2% 1.2% 9.3% 5.7% -0.2% Institutional 81% 61% 20% 15,523 0.4% 3.2% 6.5% 3.4% 30.0% Retail 19% 39% -20% Dow Jones 25,410 -1.2% -2.8% 4.7% 2.8% 22.1% DFM 292 292 - S&P 500 2,744 -1.3% -2.8% 3.7% 2.6% 16.1% Local 51% 40% 11% Nasdaq 7,330 -1.2% -1.1% 6.6% 6.2% 25.8% Foreign 49% 60% -11% FTSE 100 7,282 -0.1% -3.3% -0.6% -5.3% 0.3% Institutional 44% 61% -16% 12,491 -0.3% -5.3% -4.1% -3.3% 5.5% Retail 56% 39% 16% 5,344 0.0% -2.5% -0.5% 0.6% 10.0% Total 450 450 - Nikkei225 22,178 -0.9% -4.0% -2.4% -2.6% 16.0% Local 47% 41% 6% HIS 30,743 -1.7% -6.5% 5.4% 2.8% 29.5% Foreign 53% 59% -6% 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 3-March RAKCC BOD 4-March TAKAFUL EMARAT BOD 10-March RAK Properties AGM 11-March UNB AGM 14-March RAK Bank AGM 20-March GFH 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 Wednesday , February 28, 2018 21-March Ajman Bank AGM 21-March DU AGM Key Stories Emirates Global Alumunium Profit Surged Before Possible IPO ADNOC expected to announce downstream strategy "soon", CEO says. ADNOC likely to engage more with banks that have Abu Dhabi presence: DP World Signs Pact to Develop Industrial Zone in Egypt's Sokhna Mubadala May Sell Shares in Three Companies This Year, CEO Says Dubai airport passenger traffic falls 1 pct in January Abu Dhabi eyes privatizations to boost growth Abu Dhabi to issue regulations for digital currencies Chinese firm wins $163mln contract for DAMAC’s Dubai skyscraper. DP World eyes bigger presence in Latin America FAB concludes $650 mln five-year sukuk UAE central bank chief: fintech very beneficial to banking sector. Also says final decision on EIBOR system this year. Deutsche Bank Plans Saudi, Dubai Hires as Sovereigns Drive Deals Austria's OMV Is Said to Be Set to Win Abu Dhabi Oil Concession National Industrialisation Co annual net profit soared to 716.2 million riyals ($195.1 million) from 101.4 million riyals. Saudi Arabia reshuffles military, promotes woman at labour ministry Goldman Sachs Gets Approval for Saudi Stock Exchange Operations Saudi's SABIC in Talks to Join Shell in Iraq's Nebras Petchem Project. Egypt's First Competitive Solar Auction Attracts 18 Applicants Iraq PM agrees with Kurdish authorities to resume Kirkuk oil exports Global Markets Wrap: Asian shares extended losses on Wednesday and bonds were sold off as weak factory data from China revived worries about global economic growth amid fears of faster rate rises in the United States. Fears of faster U.S. rate hikes have caused anxiety that other central banks will start to tighten policy and raise 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 Wednesday , February 28, 2018 borrowing costs. That would in turn hurt corporate earnings, clouding the outlook for what had been expected to be another solid year of global economic growth. Treasury prices slipped with yields on the 10-year U.S. note rising past 2.9 percent. OPEC, Russia and other oil producers participating in output cuts have beaten market expectations in meeting their commitments, according to United Arab Emirates Energy Minister Suhail Al Mazrouei. The 24 countries that agreed to cut 1.8 million barrels of output a day beginning last year are committed to balancing the market, Al Mazrouei, who is also president of the Organization of Petroleum Exporting Countries, said Tuesday in Abu Dhabi. “I am optimistic that this year we will achieve market balance,” he said. UAE: Emirates Global Aluminium, which may sell shares to the public for the first time this year, said 2017 profit surged as it took advantage of higher prices and boosted output to a record. Net income rose to 3.3 billion dirhams ($900 million) from 2.1 billion dirhams in 2016, United Arab Emirates-based EGA said Tuesday in an emailed statement. Revenue climbed 20 percent to 20.5 billion dirhams amid “favorable conditions” in the global aluminum market, it said. Aluminum gained 34 percent in 2017 on the London Metal Exchange, the biggest increase since 2009. EGA’s possible share sale is “subject to market conditions,” Chief Executive Officer Abdulla Kalbansaid in a phone interview. “The way we see the market today is quite positive,” and the company is “still in the early stage until we announce the IPO,” Chief Financial Officer Danny Dweik said in the same interview. Kalban and Dweik declined to comment on possible listing locations. ADNOC expected to announce downstream strategy "soon", CEO says, Adnoc will announce its downstream strategy "soon" as it plans to double refining capacity, triple petrochemical output , and look at new capital structures, its chief executive said on Tuesday. "While we appreciate the impact of our operations on the upstream, we have clearly indicated that Adnoc has to go downstream in order for us to be able to unlock value," Dr Sultan Al Jaber, UAE minister of state and Adnoc group chief executive said on a panel in Abu Dhabi. "There are some new creative capital structures ideas also that we are going to be introducing very soon." ADNOC likely to engage more with banks that have Abu Dhabi presence, (ADNOC) is likely to engage more with financial institutions that have a presence in Abu Dhabi Global Market (ADGM), the emirate’s international financial centre, ADNOC’s chief executive said on Tuesday. “We will, as we did in the past couple of years, engage more with the financial sector and one of the criteria we will be evaluating is ... have they decided to engage physically in Abu Dhabi Global Market,” ADNOC chief Sultan al-Jaber said at a financial industry conference. ADNOC has in recent months tapped the equity and bond markets to raise funds. It listed its distribution unit in December and has raised billions of dollars in debt including a $3 billion loan with a Japanese export credit agency last month. ADGM, which opened in October 2015, and the older and larger Dubai International Financial Centre (DIFC) are the United Arab Emirates’ two international hubs for banking and fund management. DP World Signs Pact to Develop Industrial Zone in Egypt's Sokhna. Pact on development of first phase of integrated industrial and residential zone in Sokhna signed with Suez Canal Authority and the Suez Canal Economic Zone, Dubai-based DP World says in emailed statement. Will also increase capacity of Sokhna port and link it to the industrial zone to fuel foreign investment and trade growth. Business sectors in 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
4. IS Morning Report Wednesday , February 28, 2018 new zone will include light and medium-sized industries, logistics, and service utilities. Targeted industries include medical, electronics and communications, construction materials, logistics, textiles, automotive parts, food processing, energy production components and petrochemicals Abu Dhabi’s Mubadala Investment Co. may sell shares in as many as three companies, including the largest aluminum producer in the Middle East, this year as IPO activity picks up in the United Arab Emirates. "In 2018 Emirates Global Aluminium will be IPOed and potentially another one or two," Khaldoon Al Mubarak told Bloomberg TV in an interview in Abu Dhabi on Tuesday. He declined to disclose the identity of the two companies. Dubai International Airport recorded a 1 percent decline in passenger traffic in January as the world's busiest airport for international travellers handled fewer flights. There were 7.96 million passengers travelling on 35,306 flights last month, down from 8.04 million people and 36,592 flights a year earlier, operator Dubai Airports said on Tuesday. Abu Dhabi eyes privatizations to boost growth, Abu Dhabi plans to accelerate the privatization of several state companies and overhaul its national energy company as the oil-rich emirate attempts to kick-start sluggish growth. Abu Dhabi to issue regulations for digital currencies, The Financial Services Regulatory Authority (FSRA), which regulates Abu Dhabi's financial center free zone,(ADGM), is considering a legal framework for virtual currency exchanges. In mid-February the FSRA said that it was considering the development of a robust, risk-appropriate regulatory framework to supervise the activities of virtual currency exchanges and intermediaries. This follows earlier guidance issued in October 2017 by the FSRA that it would consider regulating Initial Coin or Token Offerings under the umbrella of the Financial Services and Markets Regulations 2015 on a case-by-case basis. Chinese firm wins $163mln contract for DAMAC’s Dubai skyscraper, Damac Properties has announced the award of a 600 million UAE dirham ($163.4 million) contract to build a tower at its Aykon City project on Sheikh Zayed Road in Dubai. The company has chosen China State Construction Engineering Corporation's Middle East (CSCEC) arm to build the tower overlooking Dubai Canal, which will contain two basement, one ground floor and ten podium levels, as well as a “lifestyle and entertainment" floor, 53 residential floors and a rooftop level. DP World eyes bigger presence in Latin America, Global ports operator DP World is looking to further strengthen its presence in Latin American countries and aiming for end-to-end services, its chairman said on Tuesday. Speaking at the Global Business Forum Latin America 2018, Sultan Ahmed bin Sulayem said the economic fundamentals of the LatAm region are good. "Latin America is huge. We are negotiating more projects and also expanding existing facilities. There are new opportunities coming up and we are looking at them so that customers have comprehensive service. Even if the cargo leaves the port quickly, but someone else delays it, it doesn't look good on us. So, we want to offer end-to-end service," bin Sulayem said during a panel discussion on the first day of the forum. FAB concludes $650 mln five-year sukuk, concluded the issuance of a $650 mln five-year sukuk on Tuesday, registering a final price of 95 basis points above midswaps, it said in a statement. The bonds from the United Arab Emirates’ largest bank were listed in London with a coupon of 3.625 percent. Total demand from investors exceeded $1.3 billion, according to the statement. 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 Wednesday , February 28, 2018 UAE central bank chief: fintech very beneficial to banking sector, The technology underlying cryptocurrencies and other new financial technologies are really beneficial to the banking sector, United Arab Emirates central bank governor Mubarak Rashid al-Mansouri said on Tuesday. Asked at a financial industry conference whether U.S. interest rate rises this year might pressure the UAE dirham’s peg to the U.S. dollar, Mansouri reiterated that the fixed exchange rate regime had benefited his country. UAE c.bank says final decision on EIBOR system this year. Deutsche Bank Plans Saudi, Dubai Hires as Sovereigns Drive Deals. Deutsche Bank AG is expanding in Saudi Arabia and the United Arab Emirates as the lender expects sovereign bond sales and initial public offerings to drive deals this year. The Frankfurt-based bank plans to hire in Dubai and Abu Dhabi to cover sovereigns and large corporates, Jamal Al Kishi, chief executive officer for the Middle East and Africa, said in an interview in Dubai. It’s also built its team in Saudi Arabia to about 90 people on expectations that the nation’s stock exchange may be upgraded to emerging market status by two major index providers this year. Austrian oil producer OMV AG is poised to win a deal to produce oil from offshore fields in Abu Dhabi, according to people with knowledge of the situation. While the agreement with OMV has yet to be completed, an announcement is expected in the coming weeks, the people said, asking not to be identified because the negotiations are confidential. GCC/ MENA: National Industrialisation Co annual net profit soared to 716.2 million riyals ($195.1 million) from 101.4 million riyals. A jump in retroactive Islamic tax liabilities faced It also said one of its units had signed a memorandum of understanding to explore the potential of establishing an aircraft precision machining facility in Saudi Arabia - a strategic project that is expected to receive government backing. Saudi Arabia has replaced some of its top military officers in a shake-up that elevates a younger generation, brings a woman into a senior government job and tightens Crown Prince Mohammed bin Salman's grip on power. In a reshuffle announced late on Monday, the military chief of staff, air defence and land forces heads and senior defence and interior ministry officials were removed. Tamadur bint Youssef al-Ramah became deputy labour minister, a rare high-level job for a woman in the deeply conservative kingdom. Goldman Sachs Saudi Arabia completes all regulatory and technical requirements to become a duly licensed, approved and authorized member of Saudi Stock Exchange, according to a statement. The New York-based bank now has the right to conduct brokerage services and deal as a principal and as an agent in the stock stock exchange, also known as Tadawul Saudi's SABIC in Talks to Join Shell in Iraq's Nebras Petchem Project, Saudi Basic Industries Corp (SABIC), the world's fourth-biggest petrochemicals company, is in talks to become a partner in Iraq's Nebras petrochemical project, an advisor to Iraqi Prime Minister Haider al-Abadi said on Tuesday. Kadhim Mohammed Jawad Hassan told Reuters on the sidelines of CWC's Iraq Petroleum Conference in Berlin that talks between Saudi Arabia and Iraq on the project are advanced and at the ministerial level. He said SABIC would enter as a fourth partner with Royal Dutch Shell, and the Iraqi oil and agriculture ministries. SABIC was planning to open an office in Iraq late last year. Egypt’s first auction for contracts to generate solar electricity yielded applicants from France to Norway, as the Middle East’s most populous country tries auctions to drive down the cost of clean energy. StateIntegrated 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 Wednesday , February 28, 2018 owned Egyptian Electricity Transmission Co. received 18 pre-qualification applications for its auction to build a 600-megawatt solar plant, according to a copy of a list obtained by Bloomberg News. Iraq's government has agreed with Kurdish regional authorities to resume Kirkuk oil exports through Turkey's Ceyhan port soon, Prime Minister Haider al-Abadi said on Tuesday without giving a precise timeline for restarting the flow."It was agreed with the Kurdish side to start exporting oil from Kirkuk," Abadi told a weekly news conference, adding that the two sides had agreed to tackle other differences later. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) Volume Triggers Company Close Chg.(%) 52WH 52WL Turnover 30 DA Turnover Union Cement 1.36 (0.73) 1.78 1.15 923,853 61,554 Takaful Emarat Insurance 1.99 2.05 2.50 1.68 104,688 9,034 Agthia Group 4.30 (1.15) 6.47 3.85 8,710,278 973,696 Al Salam Group 0.55 - 0.87 0.55 193,943 22,593 ADCB 7.31 - 7.50 6.55 30,121,956 11,117,324 Daily Foreign Ownership Increase Company Name Foreign Change Ownershp (%) (%) Shares Mcap Change Change (AED) Gulf Nav 30.55% 0.45 4,500,000 4,905,000 Dar Al Takaful 21.53% 0.30 450,000 319,950 Marka 14.60% 0.10 500,000 265,500 Shuaa Capital 18.11% 0.08 852,000 911,640 GFH 72.35% 0.07 2,502,628 3,643,773 DXBE 31.33% 0.05 3,999,956 2,215,976 DSI 16.87% 0.05 535,494 979,954 Dubai Investments 0.16 0.03 1,275,606 2,895,625 Arabtec 0.18 0.03 450,000 1,102,500 Methaq Takaful Ins. 0.24 0.02 30,000 25,200 Daily Foreign Ownership Decrease 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 Company Name Wednesday , February 28, 2018 Foreign Change Ownershp (%) (%) Shares Mcap Change Change (AED) DIB 17.22% -0.08 (3,945,604) (24,157,419) Union Properties 18.85% -0.06 (2,573,724) (2,339,515) Eshraq 36.19% -0.05 (1,162,500) (860,250) Amlak Finance 20.85% -0.03 (450,000) (406,800) Dubai Isl. Ins 12.28% -0.03 (67,725) (52,013) Islamic Arab Ins. 22.93% -0.02 (238,060) (117,612) GGICO 19.44% -0.02 (358,267) (122,169) Emaar Properties 37.45% -0.01 (715,974) (4,524,955) Al Salam Group KW 16.91% -0.01 (26,964) (14,586) 7.51% -0.01 (95,936) (94,104) KHCB (Source: ADX, DFM, Bloomberg, Reuters) 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 Wednesday , February 28, 2018 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