UAE: Daily Market Trading Report - 8 April

Transcription

1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 3M 08 April 2020 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 3,928 5.5% -15.4% -22.3% -22.3% ADX 176 176 DFM 1,785 5.5% -27.4% -35.0% -35.8% Local 51% 46% 5% TASI 6,986 1.8% -6.4% -14.8% -22.5% Foreign 49% 54% -5% BHSEASI 1,313 0.2% -18.8% -17.5% -8.8% Institutional 67% 58% 9% EGX 9,841 4.2% -20.3% -25.5% -35.0% Retail 33% 42% -9% 22,654 -0.1% -12.4% -20.7% -14.3% DFM 337 337 - S&P 500 2,659 -0.2% -10.5% -17.8% -8.1% Local 56% 53% 2% Nasdaq 7,887 -0.3% -8.0% -13.0% -0.6% Foreign 44% 47% -2% FTSE 100 5,704 2.2% -11.7% -24.7% -23.4% Institutional 28% 30% -2% 10,357 2.8% -10.3% -21.7% -13.8% Retail 72% 70% 2% Dow Jones DAX CAC40 - 4,438 2.1% -13.6% -26.2% -19.0% Total 513 513 Nikkei225 18,950 2.0% -8.7% -19.6% -13.1% Local 54% 51% 3% HIS 24,253 2.1% -7.2% -14.4% -19.0% Foreign 46% 49% -3% # Upcoming Corporate Actions & Events Date Company Event 08-Apr DXBE BoD 09-Apr JULPHAR AGM 09-Apr ETISALAT BoD 12-Apr IHC AGM 13-Apr UAB AGM 13-Apr AMANAT AGM 14-Apr DU AGM 14-Apr DANA AGM 15-Apr SHUAA AGM 16-Apr AGTHIA AGM 20-Apr AJMAN BANK AGM 23-Apr DP World AGM 12-May GFH BoD/Results 14-May ITHMAAR BoD/Results 21-Jun Emaar Properties AGM 21-Jun Emaar Malls AGM 21-Jun Emaar Dev AGM -
2. # KEY STORIES UAE reported 283 new cases of the Covid-19 virus, taking total cases to 2,359. One death was also reported, thereby raising the total death toll in the UAE to 12. 19 new recoveries were recorded, taking the total recoveries to 186 TAQA’s board has approved the sale and purchase of an asset swap deal with the Abu Dhabi Power Corporation (ADPower). Board has also approved the issuance of a mandatory convertible bond to ADPower for the planned deal NMC Health getting placed in administration by a UK court order would be the “worstcase scenario” for the company’s future - NMC’s Executive Chairman Moody's said that a USD 70bln UAE stimulus package will support bank liquidity and limit likely asset deterioration due to the coronavirus outbreak but will increase the potential for problem loans Aldar Properties says Aldar education is making an investment of AED 10mln toward technology and infrastructure to facilitate distance learning programmes Dubai extended the closure of commercial activities until April 18 as part of efforts to contain coronavirus, the Dubai Economic Department said in a statement Flydubai has announced that it is planning to start running outbound services to certain destinations in India and Pakistan from April 16. One can currently only travel on one-way outbound trips, as the UAE’s restrictions on inbound passengers are still in place The Dubai Financial Services Authority proposed relief measures to support new and existing entities at the business hub amid the coronavirus pandemic KSA reported 272 new cases of the coronavirus and three new deaths. This brings the total number of cases in the country to 2,795. KSA said that it would take 4-12 months to contain the coronavirus disease while announcing that it expects the total number of cases to reach 200,000 if measures to counter the disease are not followed Saudi’s Almarai approves an investment of SAR 275mln to expand existing processing facilities within poultry segment and will undertake a comprehensive study to assess any potential further expansion into basic food categories Saudi's Sipchem seeks shareholders’ approval on purchase of upto 73.1mln shares and to allocate them as treasury shares Saudi’s Abo Moati temporary closes all wholesale showrooms effective April 7 until further notice Fitch affirms Kuwait at 'AA'; outlook stable. Fitch says Kuwait's key credit strengths are its exceptionally strong fiscal and external balance sheets Bahrain February M2 money supply +10.51% YoY and private sector credit +1.66% YoY Bahrain’s Arab Banking Corporation has total exposure of USD 116mln to NMC Healthcare and related companies Muscat Securities Market trading session has been extended to 3 hours instead of 2 hours for continuous trading session effective Sunday 12/04/2020
3. Egypt 's net foreign reserves dropped to USD 40.1bln at the end of March, from USD 45.5bln in February, the central bank said, blaming the fallout of the coronavirus on the economy # Key Global Trends/ Market Clues Asian stocks stepped back on Wednesday after two sessions of sharp gains as investors tempered their optimism about the coronavirus while death tolls were still mounting across the globe. While the number of COVID-19 hospitalizations seemed to be levelling off in New York state, deaths across the United States jumped by a record 1,800. Mainland China's new coronavirus cases also doubled in 24 hours due to infected overseas travellers. The erratic action in oil markets spilled over into equities with MSCI's broadest index of Asia-Pacific shares outside Japan losing 0.7%. Japan's Nikkei went the other way and added 0.4%, while Shanghai blue chips lost 0.6%. E-Mini futures for the S&P 500 wobbled either side of flat, while EUROSTOXX 50 futures dropped 1.1%. The S&P 500 had ended Tuesday down 0.16%, having been up as much as 3.5% at one stage. The Nasdaq dropped 0.33% and the Dow 0.12%. Oil bounced back on Wednesday, with U.S. crude jumping over USD 1, lifted by hopes that a meeting between OPEC members and allied producers on Thursday will trigger output cuts to shore up prices that have crumbled amid the coronavirus pandemic. Brent crude was up by 75 cents, or 2.4%, at USD 32.62 per barrel by 0246 GMT after falling 3.6% on Tuesday. OPEC+ oil cuts volumes on Thursday would depend on how much U.S., Canada, Brazil and others will propose to reduce, as per OPEC sources. OPEC source says baseline level for oil cuts yet to be agreed after production of some members jumped in April vs Q1 2020. Saudi Arabia, Russia and allied oil producers will agree to deep cuts to their crude output at talks this week only if the United States and several others join in with curbs to help prop up prices that have been hammered by the coronavirus crisis. However, the U.S. Department of Energy noted in a statement on Tuesday that U.S. output is already falling without government action, in line with the White House's insistence that it would not intervene in the private markets. That decline, however, would take place slowly, over the course of the next two years. # UAE Stories UAE reported 283 new cases of the Covid-19 virus, taking total cases to 2,359. One death was also reported, thereby raising the total death toll in the UAE to 12. 19 new recoveries were recorded, taking the total recoveries to 186. TAQA’s board has approved the sale and purchase of an asset swap deal with the Abu Dhabi Power Corporation (ADPower). Board has also approved the issuance of a mandatory convertible bond to ADPower for the planned deal. It has also recommended its shareholders to approve the deal at the annual general assembly due to be held on April 29. As part of the deal, TAQA will issue 106.3bln shares to ADPower. Once the deal is executed, AD Power will own 98.6pct of Taqa's entire share capital. NMC Health getting placed in administration by a UK court order would be the “worst-case scenario” for the company’s future, according to the hospital operator’s Executive Chairman. “Especially in the current circumstances,” added Faisal Belhoul, who took on the position just over a week ago, after picking up 9 per cent in the beleaguered Abu Dhabi headquartered company. Coming under administration will lead to “value destruction and will have a significant influence on NMC’s business, stakeholders, and on the company’s ability to efficiently provide its services,” Belhoul said. “No one will disagree that putting a company through administration is destructive. It is proven by all previous cases. “To that extent, the logic really implies that all parties will have to sit down together to find a solution - especially in view of the pandemic. We cannot lose focus on that… and NMC’s role in providing its services.” Moody's said on Tuesday that a USD 70bln UAE stimulus package will support bank liquidity and limit likely asset deterioration due to the coronavirus outbreak but will increase the potential for problem loans. The
4. central bank on Sunday boosted its stimulus to a total of USD 70bln from a previously announced USD 27bln to guarantee liquidity in the banking system . Aldar Properties says Aldar education is making an investment of AED 10mln toward technology and infrastructure to facilitate distance learning programmes. Dubai extended the closure of commercial activities until April 18 as part of efforts to contain coronavirus, the Dubai Economic Department said in a statement. Flydubai has announced that it is planning to start running outbound services to certain destinations in India and Pakistan from April 16. One can currently only travel on one-way outbound trips, as the UAE’s restrictions on inbound passengers are still in place. The Dubai Financial Services Authority proposed relief measures to support new and existing entities at the business hub amid the coronavirus pandemic. For new firms, additional time for completing application and authorization processes and 50% reduction in application fees for the remainder of 2020. For existing firms, time extension for filing a number of returns and reports, additional time for submitting annual accounts and financial statement auditors report, waiver of DFSA fees for applications for waivers and modifications for the remainder of 2020 and a waiver of all automated late return fees for the remainder of 2020. # GCC/ MENA KSA reported 272 new cases of the coronavirus and three new deaths. This brings the total number of cases in the country to 2,795. KSA said that it would take 4-12 months to contain the coronavirus disease while announcing that it expects the total number of cases to reach 200,000 if measures to counter the disease are not followed. Saudi’s Almarai approves an investment of SAR 275mln to expand existing processing facilities within poultry segment and will undertake a comprehensive study to assess any potential further expansion into basic food categories Saudi's Sipchem seeks shareholders’ approval on purchase of upto 73.1mln shares and to allocate them as treasury shares. Saudi’s Abo Moati temporary closes all wholesale showrooms effective April 7 until further notice. Fitch affirms Kuwait at 'AA'; outlook stable. Fitch says Kuwait's key credit strengths are its exceptionally strong fiscal and external balance sheets. Kuwait Government is unlikely to be able to mount significant fiscal policy response to oil shock given ongoing pandemic & Oct 2020 parliamentary elections. Kuwait's overall real GDP growth is likely to be positive amid expansion of oil production and commissioning of refinery upgrades. Fitch says disruptions related to coronavirus will likely push Kuwait's non-oil economy into recession for 2020. Bahrain February M2 money supply +10.51% YoY and private sector credit +1.66% YoY. Bahrain’s Arab Banking Corporation has total exposure of USD 116mln to NMC Healthcare and related companies. Muscat Securities Market trading session has been extended to 3 hours instead of 2 hours for continuous trading session effective Sunday 12/04/2020. Egypt's net foreign reserves dropped to USD 40.1bln at the end of March, from USD 45.5bln in February, the central bank said on Tuesday, blaming the fallout of the coronavirus on the economy. The fall in reserves follows a steady upward trend in previous months and comes as Egypt tries to cope with the economic impact of the new coronavirus outbreak. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
5. # 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% 12M% ADCB 28,177 4.05 10.26 3.82 5.61 0.51 9.4% (33.3) (44.4) (43.7) (54.2) ADIB 12,095 3.33 5.85 3.33 5.27 0.63 8.2% (33.3) (32.6) (30.7) (26.2) 2,006 3.52 3.70 2.60 7.03 0.87 8.5% (4.9) 17.3 17.3 0.6 36,250 2.90 3.20 2.40 16.35 9.67 6.6% (3.3) (2.7) 11.3 7.4 Agthia 1,812 3.02 4.10 2.50 13.22 0.92 5.0% (0.0) (12.2) (15.2) (26.3) Air Arabia 4,200 0.90 1.61 0.87 4.24 0.76 NA (21.0) (36.8) (22.8) (8.7) Ajman Bank 1,239 0.59 0.98 0.50 15.13 0.49 0.0% (17.1) (32.8) (35.9) (34.4) Al Waha Capital 1,546 0.80 1.19 0.72 NA 0.52 NA (5.4) (12.6) (21.3) (28.4) Aldar Properties 11,637 1.48 2.37 1.35 5.86 0.47 9.8% (19.8) (23.2) (22.8) (14.9) Amanat Holdings 1,583 0.63 1.06 0.56 26.36 0.62 3.5% (16.2) (16.7) (30.5) (34.1) Amlak Finance 372 0.25 0.64 0.20 NA 0.52 0.0% (34.2) (47.7) (40.2) (23.0) Arabtec 783 0.52 2.28 0.44 NA 0.66 0.0% (25.7) (57.2) (70.7) (75.6) Aramex 3,924 2.68 4.85 2.00 7.89 1.50 6.2% (10.7) (24.1) (34.3) (43.6) Bank of Sharjah 1,344 0.64 1.00 0.64 NA 0.35 0.0% (14.7) (21.0) (22.9) (30.9) DAMAC Properties 3,025 0.50 1.37 0.36 15.78 0.21 NA (16.0) (27.5) (45.1) (63.5) Dana Gas 4,232 0.61 1.10 0.53 7.32 0.44 9.1% (27.9) (32.7) (36.3) (37.9) Deyaar Development 1,323 0.23 0.43 0.18 18.50 0.29 0.0% (22.9) (34.9) (34.0) (36.4) Dubai Financial Market 4,960 0.62 1.00 0.50 41.09 0.63 4.0% (18.9) (28.8) (28.0) (18.4) Dubai Investment 4,805 1.13 1.63 0.98 7.31 0.40 NA (8.1) (11.7) (12.4) (21.0) Dubai Islamic Bank 22,736 3.14 5.86 3.04 4.54 0.65 11.1% (35.4) (37.7) (35.8) (36.7) DXB Entertainments 1,016 0.13 0.26 0.09 NA 0.35 0.0% (21.6) (27.0) (38.9) (50.0) Emaar Dev 8,680 2.17 4.91 1.79 3.21 0.90 0.0% (37.1) (42.6) (47.5) (44.6) Emaar Malls 14,576 1.12 2.17 0.98 6.38 0.79 0.0% (29.1) (39.5) (41.4) (37.8) Emaar Properties 16,825 2.35 5.53 1.90 2.71 0.31 0.0% (28.6) (42.0) (47.8) (52.8) Emirates Integrated Tele 24,206 5.34 6.35 4.33 13.98 2.80 6.4% (10.3) (4.6) (4.6) 4.5 Emirates NBD 47,564 7.53 13.93 6.33 3.09 0.58 5.3% (30.7) (38.7) (36.9) (34.9) ADNIC ADNOC Dist Eshraq Investments (A EDm) (A ED) 535 0.23 0.55 0.16 NA 0.38 NA (12.9) (27.7) (41.5) (50.3) Etisalat 124,190 14.28 17.80 11.02 14.29 2.66 5.6% (5.3) (10.6) (11.0) (13.8) First Abu Dhabi Bank 122,304 11.20 16.96 7.78 10.22 1.13 6.6% (14.6) (22.0) (22.4) (26.3) 1,907 0.54 1.11 0.45 6.06 0.48 6.3% (35.8) (34.4) (38.9) (46.8) 319 0.31 1.00 0.28 NA 0.54 0.0% (22.7) (32.1) (54.3) 26,629 14.62 15.00 0.87 NM 12.26 NA 8.1 129.5 192.4 GFH Gulf Navigation Holding IHC Julphar (65.0) 1,366.4 857 0.74 1.58 0.74 NA 1.23 0.0% (20.9) (24.3) (40.8) (53.2) 12,782 72.00 86.80 66.00 6.19 0.59 5.6% NA (10.0) (4.0) (5.3) National Bank of Fujairah 9,536 4.98 4.98 3.75 18.58 1.50 1.9% 3.3 3.3 3.3 NA Tabreed 5,458 2.01 2.18 1.44 11.54 1.10 5.2% 0.5 8.6 9.8 31.4 RAK Bank 6,688 3.99 5.00 3.75 6.11 0.86 7.5% (16.7) (16.0) (12.3) (2.9) 700 0.35 0.50 0.33 6.95 0.18 11.4% (10.1) (10.9) (14.3) (19.9) 1,302 1.31 1.81 1.24 7.54 0.51 10.9% (15.5) (4.8) (3.6) (18.6) 496 0.41 0.71 0.30 8.36 0.63 NA (15.1) (25.5) (35.0) (13.5) Sharjah Islamic Bank 3,072 1.00 1.29 0.95 5.63 0.41 4.8% (13.3) (11.5) (8.5) (6.5) SHUAA Capital 1,040 0.41 1.05 0.40 683.33 0.71 NA (49.3) (51.0) (57.9) (53.4) Mashreqbank RAK Properties RAK Ceramics SALAMA Takaful Emarat Insurance 204 1.36 1.62 0.97 NA 1.72 6.1% 0.7 15.3 (2.2) (13.4) TAQA 3,937 0.65 0.94 0.40 16.83 0.94 0.0% (4.4) 44.2 (7.0) (28.6) Union Properties 1,038 0.24 0.44 0.15 NA 0.38 0.0% 26.7 (5.1) (21.7) (36.8) United Arab Bank 1,848 0.90 1.25 0.81 NA 0.86 0.0% - (20.7) (18.5) (24.7) (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
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