UAE: Daily Market Trading Report - 3 May

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1. IS Morning Report Thursday , May 03, 2018 Global & Regional Benchmarks Indices Close UAE Trading Summary 1Day 1Mnth 3Mnth YTD 1Y (AEDm) Change Change Change Change Change 95 -3.1% -12.0% -10.9% -12.2% Local 49% 49% -1% 51% 51% 1% 60% 71% -11% 40% 29% 11% -3.2% 14.2% DFM 137 137 - -1.4% 10.4% Local 55% 45% 10% 45% 55% -10% 4.3% Institutional 44% 39% 5% -0.9% 2.2% Retail 56% 61% -5% 4.1% 4.3% Total 232 232 - -1.3% 15.6% Local 52% 47% 5% 48% 53% -5% -0.8% DFM 3,003 -0.9% TASI 8,099 -0.7% 3.8% KWSEI 1,261 0.3% -2.3% 18,173 -0.7% Dow Jones 23,925 -0.7% -0.5% -6.3% S&P 500 2,636 -0.7% 0.8% -4.6% Nasdaq 7,101 -0.4% 2.3% -1.9% FTSE 100 7,543 0.3% 7.3% 1.3% -1.9% 12,802 1.5% 6.7% 0.1% 5,529 0.2% 7.3% 3.1% Nikkei225 22,473 -0.2% 5.5% -3.4% HIS 30,214 -1.7% 0.1% -7.3% CAC40 NET 95 4,635 DAX SELL 1.2% ADX ADX EGX BUY 1.1% 0.5% 5.4% 5.8% 12.1% 16.2% Foreign -7.1% -5.3% -5.2% Institutional 3.9% 20.4% 21.0% 44.2% Retail 2.9% 16.9% Foreign 1.0% 22.3% Foreign - Upcoming Corporate Actions & Events Date Company Event 6-May DIC Board Meeting 6-May SHUAA Board Meeting 9-May KHCB Board Meeting 13-May GFH Board Meeting Key Stories UAE private sector growth edges up in April as tax shock starts to fade –PMI Dubai airport passenger traffic rebounds in March U.A.E. Banks Seek Change in Real-Estate Loan Rules: Al Ghurair 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 Thursday , May 03, 2018 Dubai's Aramex Q1 Profit Rises GFH on acquisition of majority shareholding in Entertainer, clarified that GFH along with its clients will invest throughout holding period up to $150 million. GFH will hold approximately 5‐10 pct of the transaction Drake & Scull Says Tabarak to Keep Stake Until Turnaround National Takaful Q1 Profit Rises Nakheel Q1 profit rises 5 percent, hands over fewer units Saudi Arabia moves to tempt more foreign insurers with draft rules change HSBC mandated on several privatisations in Saudi Arabia Riyad REIT Raises $302 Million for Acquisition of Properties Almarai aims to refinance 1.7 bln riyals sukuk by Q3 –CFO NCB's first-quarter profit up 10.5 pct, beats forecasts Saudi debt office head says able to issue up to 100-year bonds, but not keen at moment Saudi finance minister says on track to cut budget deficit to 7 pct of GDP Saudi's CMA says 140 qualified foreign investors now in stock market Bahrain needs to accelerate budget reforms to sustain economy IMF delegation to arrive in Egypt next week Global Markets Wrap: Asian shares slipped on Thursday as hopes waned for real progress in Sino-U.S. trade talks, while the U.S. dollar consolidated recent bumper gains after the Federal Reserve reaffirmed the outlook for more rate hikes. The Fed policy meeting ended with no change, as expected, while the central bank expressed confidence a recent rise in inflation to near target would be sustained, leaving it on track to raise borrowing costs in June. The Fed statement was not quite as hawkish as some had wagered on and caused a dip in the dollar, though sentiment remained bullish given U.S. rates were still clearly heading higher while those in Europe and Japan lagged far behind. In the Treasury market, yields dipped slightly US10YT=RR as a quarterly refunding programme of $73 billion came in short of expectations, reducing the pressure on prices from the torrent of supply. Dubai and Abu Dhabi stock exchanges both closed lower on Wednesday, as markets across the Gulf struggled for direction after recent gains, notably in Saudi Arabia. The move was in line with Asian equities, which also eased as investors awaited the U.S. Federal Reserve's upcoming policy statement for clues on the future pace of monetary tightening. Saudi Arabia's index continued to ease after surging past the 8,300-point level last week to its highest level since August 2015. On Wednesday, it closed at 8,098 points. Oil prices dipped on Thursday, weighed down by swelling U.S. crude inventories and record weekly U.S. production that is countering efforts by producer group OPEC to cut supplies and prop up prices. Brent crude oil futures were at $73.19 per barrel at 0404 GMT, down 17 cents, or 0.2 percent, from their last close. Prices were pulled down by a report from the U.S. Energy Information Administration (EIA) on Wednesday showing U.S. crude inventories jumped by 6.2 million barrels to 435.96 million barrels C-STK-T-EIA in the week to April 27, the highest level in 2018. 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 Thursday , May 03, 2018 UAE: Growth in the United Arab Emirates' non-oil private sector edged up in April from a 10-month low in March, beginning to recover from the introduction of a 5 percent value-added tax at the start of the year, a survey showed on Thursday. The seasonally adjusted Emirates NBD UAE Purchasing Managers' Index, which covers manufacturing and services, rose to 55.1 last month from 54.8 in March. Above 50 indicates expansion and below shows contraction. Output growth rose to 58.4 in April from a 23-month low of 57.1 in March, while growth in new orders climbed to 60.8 from 60.2. Employment growth rebounded slightly from a 17-month low. Passenger traffic at Dubai International Airport rose 4.5 percent in March, rebounding after consecutive monthly declines at the world's busiest airport for international travellers. Passenger numbers rose to 7.85 million from 7.51 million a year earlier, operator Dubai Airports said in a statement, despite the number of flights falling to 34,126 from 34,634. Banks in the United Arab Emirates are lobbying for a change in regulations governing real-estate loans as many have hit a regulatory limit on lending to the industry, said Abdul Aziz Al Ghurair, the chairman of the U.A.E. Banks Federation and CEO of Mashreqbank. Everybody is either “touching the ceiling or busting” the 20% limit on realestate lending. Federation asked central bank to change classification rules for some real-estate loans. Need to be flexible with interpretation of real-estate loans and to redefine what is real estate. Banks proposing that loans to schools should not be classified real-estate lending, along with home loans to individuals if the repayment is being made from the person’s salary. “It is work in progress with the central bank; we have been promised that they will start looking at it; I think before the end of the summer we will have it” Dubai's Aramex Q1 Profit Rises. 1Q17 net profit attributable to shareholders 103 million dirhams versus 91.8 million dirhams year ago. 1Q17 revenue 1.19 billion dirhams versus 1.11 billion dirhams year ago. Management expects stronger contribution from e-commerce activities to our domestic express services in future as major e - tailers are establishing fulfillment centers in our core markets. GFH on acquisition of majority shareholding in Entertainer, clarified that GFH along with its clients will invest throughout holding period up to $150 million. GFH will hold approximately 5‐10 pct of the transaction Tabarak Investments intends to hold its shareholding in the Dubai-based general contracting and engineering company "over the short and medium terms" until successfully turning it around, according to a statement. 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
4. IS Morning Report Thursday , May 03, 2018 in reaction to Tabarak CEO’s comments to the media. Says in negotiations on contracts amounting to 1.25 billion to 1.5 billion dirhams National Takaful Q1 Profit Rises. 1Q17 net profit 3.6 million dirhams versus 33,000 dirhams year ago. Gross written contributions 103.1 million dirhams versus 57.9 million dirhams year ago. Dubai developer Nakheel reported a 5 percent increase in first quarter net profit on Wednesday while handing over fewer than half the number of units it did a year earlier. Dubai's residential property market is showing few signs of rebounding from a three-year downturn caused by modest demand and increasing supply from new developments. Net profit for the January-March quarter rose to 1.55 billion dirhams ($422 million) from 1.48 billion, the stateowned developer said in a statement. Nakheel handed over almost 200 land and built form units to customers, down from 412 a year earlier, it said. GCC/ MENA: Saudi Arabia has published draft rules for foreign insurers and reinsurers wanting to establish branches in the kingdom, in the latest attempt by the government to woo international investment. Currently, there are no foreign branches of foreign insurers in the kingdom, with such companies instead having to establish fully capitalised subsidiaries or own a limited share of local insurance businesses. HSBC has been mandated for several privatisations in Saudi Arabia and will announce them very soon, a senior bank executive said on Wednesday. The Saudi government is working on a pipeline of privatisations as part of economic reforms aimed at diversifying the economy away from oil. Riyad Capital closes the secondary public offering to increase the capital of Riyad REIT Fund to 1.633 billion riyals from 500 million, according to a statement to Saudi stock market. Says Riyad REIT is the first fund to carry out a secondary offering by raising its capital through a new mechanism based on a right of allocation method. The capital increase of 1.133 billion riyals will mainly be used for acquisition of three properties that will increase the number of properties in the fund to 11 from 8. The newly acquired properties include Kempinski Hotel complex and Saudi Electronic University building in Riyadh, and a mixed-use property in Jeddah Almarai aims to refinance its 1.7 billion riyals ($453.3 million) sukuk by the third quarter and has hired an international adviser to complete the process, its chief financial officer told Reuters. An International Monetary Fund delegation will arrive in Cairo next week to review Egypt's progress on economic reforms before it disperses the fourth instalment of a $12 billion loan programme, Deputy Finance Minister Mohamed Moait said. Egypt agreed the threeyear IMF loan programme in November 2016 that is tied to sweeping reforms such as spending cuts and tax hikes. National Commercial Bank, Saudi Arabia's largest lender, on Wednesday reported a 10.5 percent rise in first-quarter net profit, above analysts' forecasts as bad debt charges fell and fees rose. The bank's net profit of 2.99 billion riyals ($797 million) in the three months to March 31, was up from 2.70 billion riyals in the same period of 2017, it said in a statement. Saudi Arabia is able to issue 50- or 100-year bonds, but is not keen at the moment to sell debt of such long maturities, the head of its debt management office said on Wednesday. "Are we able to issue 50, 100 years, yes. Are we able to issue in different currencies other than dollars, yes. Are we keen to take that step at the moment, I don't think so," Fahad al-Saif told a business conference in Riyadh. Saudi Arabia is on track on to cut its budget deficit to 7 percent of gross domestic product this year, Finance Minister Mohammed al-Jadaan said on Wednesday. Speaking at a conference in Riyadh, he also said first quarter fiscal results show significant progress in growing non-oil revenues and raising spending efficiency in the kingdom, whose economy contracted last year. 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 Thursday , May 03, 2018 Saudi Arabia's Capital Market Authority (CMA) said on Wednesday there are now 140 qualified foreign investors in the stock market, with 40 registered in the last quarter. Qualified foreign institutions were allowed to start investing directly in Saudi Arabia's stocks market in 2015, and qualification requirements were eased in 2016. Bahrain needs to accelerate reforms to its state budget to reach a deficit level that would make its finances sustainable over the medium term, an International Monetary Fund official said. Jihad Azour, director of the IMF’s Middle East and Central Asia department, was speaking after yields on Bahrain's international bonds jumped during a debt sale at the end of March because of investor concern about the country's finances. An International Monetary Fund delegation will arrive in Cairo next week to review Egypt's progress on economic reforms before it disperses the fourth instalment of a $12 billion loan programme, Deputy Finance Minister Mohamed Moait said. Egypt agreed the three-year IMF loan programme in November 2016 that is tied to sweeping reforms such as spending cuts and tax hikes. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) 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 Thursday , May 03, 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