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UAE: Daily Market Trading Report - 8 December

IM Insights
By IM Insights
4 years ago
UAE: Daily Market Trading Report - 8 December


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  1. SHUAA Securities Morning Report # Market Stats Indices Close 1M 08 December 2019 3M 1Y Change Change Change Change # UAE Trading Summary A EDm BUY SELL Net ADX 5,047 0.0% -2.1% -1.3% 4.5% ADX 113 113 - DFM 2,695 0.0% 0.3% -6.8% 2.4% Local 45% 12% 33% TASI 7,906 0.4% 1.6% -1.9% 0.3% Foreign 55% 88% -33% BHSEASI 1,547 0.2% 1.9% -0.2% 17.0% Institutional 84% 89% -4% EGX 13,622 -0.1% -7.9% -8.8% 8.2% Retail 16% 11% 4% Dow Jones 28,015 1.2% 1.9% 4.5% 12.3% DFM 135 135 - S&P 500 3,146 0.9% 2.2% 5.6% 16.7% Local 49% 52% -3% Nasdaq 8,657 1.0% 2.9% 6.8% 20.4% Foreign 51% 48% 3% FTSE 100 7,240 1.4% -2.1% -0.6% 8.0% Institutional 63% 53% 10% 13,167 0.9% -0.1% 8.0% 21.8% Retail 37% 47% -10% DAX CAC40 5,872 1.2% 0.1% 4.8% 22.8% Total 248 248 - Nikkei225 23,354 0.2% 0.2% 10.2% 8.6% Local 47% 34% 13% HIS 26,498 1.1% -4.3% -0.7% 1.3% Foreign 53% 66% -13% # Upcoming Corporate Actions & Events Date Company Event 08-Dec CBI BoD/General 08-Dec SHUAA BoD/General 08-Dec WAHA BoD/General 09-Dec KHCB BoD/General 09-Dec NBF BoD/General 10-Dec ETISALAT BoD/General 12-Dec AGTHIA BoD/General 17-Dec DIB G Assembly/Noor Acquisition 22-Dec GFH G Assembly 23-Dec FTSE Index 4Q19 Review Effective Date
  2. # KEY STORIES Depa unit DSG entered into loan agreement with Depa United Group for unsecured loan of up to an aggregate amount of AED 20mln for working capital requirement to support its ongoing operations BLME Holding agreed to an all-cash takeover from Kuwait-based Boubyan Bank, which already holds a 27.01pct share in the Islamic lender. BLME Holdings had agreed to its USD1.05 per share offer for bank, which values it at USD 212.1mln UAE Central Bank said that Banks operating in the UAE remain well capitalised, with the Capital Adequacy Ratio at 17.7pct, Tier 1 Capital at 16.5pct, and Common Equity Tier 1 at 14.7pct, which are well above the regulatory requirements. The Loans to Deposits ratio for the whole banking system increased only slightly from 95.4pct in June 2019 to 95.5pct at the end of September 2019, mainly due to the slower growth pace of deposits (1.6pct QoQ) compared to the registered growth in gross credit (1.7pct QoQ) Fitch says Mergers and acquisitions (M&A) in Islamic banks in the GCC are expected to continue in 2020 Saudi Aramco priced its IPO at SAR 32 (USD 8.53) per share, the top of its indicative range, the company said in a statement, raising USD 25.6bln and beating Alibaba Group Holding record USD 25bln listing in 2014. At that level, Aramco has a market valuation of USD 1.7tlon, comfortably overtaking Apple Inc. as the world’s most valuable listed firm. Demand from institutional investors, including Saudi funds and companies, reached USD 106bln, while retail investment’s demand hit USD 12.6bln. Around 4.9mln Saudi retail investors have bought shares in the oil giant, including 2.3mln aged between 31-45. Aramco’s advisors said they may partly or fully exercise a 15% “greenshoe” option, allowing it to increase the size of the deal to a maximum of USD 29.4bln Saudi Aramco shares will start trading on Dec. 11 Tadawul Saudi Arabia has announced that it will grant citizenship to 'innovators' from all around the world Saudi’s Ma'aden eyes USD 5bln Waad al-Shamal debt refinancing Saudi’s Al Sagr Cooperative Insurance announces contract award from Maharah Human Resources, contract value 5% of company's total annual sales Kuwait’ Combined Group units secures contract for internal roads and infrastructure in Ras ghurab Island for value of KWD 240.5mln Egypt to sell USD 1bln in one-year, dollar denominated T-bills in December - Central Bank Egypt's Commercial International Bank is looking to buy a controlling stake in Mayfair Bank, one of Kenya's smallest banks, Kenya's competition authority said Acadian Asset Management discloses 3.54% interest in Centamin as of Dec. 4 Endeavour says now reaching out to Centamin shareholders with the merger proposal and expecting strong support from Centamin shareholders in next 28 days for company's proposal as many are cross-overs Egypt's Sidi Kerir says estimated investment budget for 2020 EGP 6.88bln
  3. Egypt 's Heliopolis Housing approved in principal the offer from Zahraa Maadi to buy 34 feddans in New Heliopolis # Key Global Trends/ Market Clues Asian stocks gained on Friday as investors took heart from U.S. President Donald Trump saying trade talks with China were “moving right along”, and U.S. oil prices sat near 2-1/2-month highs after OPEC and other producers agreed to cut output. European shares were expected to follow suit, with major European stock futures trading up around 0.2%. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.4% and Japan’s Nikkei added 0.2%. Australian shares rose 0.4% and South Korea’s Kospi climbed 0.9%, while Hong Kong’s Hang Seng gaining 0.7%. Oil prices rose more than 1% on Friday and posted sharp weekly gains after OPEC and its allies agreed to deepen output cuts by 500,000 barrels per day in early 2020. Brent futures settled 1.6% higher at USD 64.38 per barrel and rose about 3% on the week. Saudi Arabia spearheaded a deal on Friday that will see the OPEC+ group of oil producers commit to some of the sector’s deepest output cuts in a decade aiming to avert oversupply and support prices. Saudi with OPEC peers and allies led by Russia backed a plan that could see cuts of as much as 2.1mln barrels per day (bpd), Saudi Energy Minister Prince Abdulaziz bin Salman said. The figures include an extra 0.5mln barrels per day in cuts to take the OPEC+ target 1.7mln bpd, or 1.7% of global demand, plus Saudi continuing to cut 0.4mln bpd more than its quota. # UAE Stories Depa unit DSG entered into loan agreement with Depa United Group for unsecured loan of up to an aggregate amount of AED 20mln for working capital requirement to support its ongoing operations. DSG announces resignation of Edgar Ramani as executive director & CEO of DSG and appointment of Steven James Salo as interim CEO. BLME Holding agreed to an all-cash takeover from Kuwait-based Boubyan Bank, which already holds a 27.01pct share in the Islamic lender. In a statement issued on Nasdaq Dubai after Thursday’s market close, the Boubyan Bank said the independent directors of BLME Holdings had agreed to its USD1.05 per share offer for bank, which values it at USD 212.1mln. The offer represents a 75pct premium to the USD 0.60 that BLME shares were trading at on December 4, before the announcement was made. UAE Central Bank said that Banks operating in the UAE remain well capitalised, with the Capital Adequacy Ratio at 17.7pct, Tier 1 Capital at 16.5pct, and Common Equity Tier 1 at 14.7pct, which are well above the regulatory requirements. The Loans to Deposits ratio for the whole banking system increased only slightly from 95.4pct in June 2019 to 95.5pct at the end of September 2019, mainly due to the slower growth pace of deposits (1.6pct QoQ) compared to the registered growth in gross credit (1.7pct QoQ). Mergers and acquisitions (M&A) in Islamic banks in the GCC are expected to continue in 2020 as Shariacompliant lenders look to carve out market share in an increasingly competitive environment, a senior executive of Fitch Ratings said. # GCC/ MENA Saudi Aramco priced its IPO at SAR 32 (USD 8.53) per share, the top of its indicative range, the company said in a statement, raising USD 25.6bln and beating Alibaba Group Holding record USD 25bln listing in 2014. At that level, Aramco has a market valuation of USD 1.7tlon, comfortably overtaking Apple Inc. as the world’s most valuable listed firm. Demand from institutional investors, including Saudi funds and companies, reached USD 106bln, while retail investment’s demand hit USD 12.6bln. Around 4.9mln Saudi retail investors have bought shares in the oil giant, including 2.3mln aged between 31-45. Aramco’s advisors said they may partly or fully exercise a 15% “greenshoe” option, allowing it to increase the size of the deal to a maximum of USD 29.4bln.
  4. Saudi Aramco shares will start trading on Dec . 11, the Saudi securities exchange Tadawul said on Friday. In a statement, Tadawul announced that the listing and trading of Saudi Aramco will start on Wednesday Dec.11, 2019, with the symbol 2222, and a ±10% daily price fluctuation limit. Saudi Arabia has announced that it will grant citizenship to 'innovators' from all around the world. Saudi Arabia King and Custodian of the two Holy Mosques, Salman Bin Abdul Aziz, issued the decree to grant Saudi nationality to distinguished professionals of varying backgrounds, including those from medicine, technology, cultural and sports fields. Saudi’s Ma'aden is considering full or partial refinancing of debt it raised for the Waad al-Shamal project, which is about USD 5bln in total, its chief executive said. Saudi’s Al Sagr Cooperative Insurance announces contract award from Maharah Human Resources, contract value 5% of company's total annual sales. Kuwait’ Combined Group units secures contract for internal roads and infrastructure in Ras ghurab Island for value of KWD 240.5mln Egypt will auction USD 1bln in one-year dollar-denominated T-bills on Dec. 9, the central bank said on Thursday. The T-bills will be settled on Dec. 10 and will mature on Dec. 8, 2020, the central bank said. Egypt's Commercial International Bank is looking to buy a controlling stake in Mayfair Bank, one of Kenya's smallest banks, Kenya's competition authority said. Acadian Asset Management discloses 3.54% interest in Centamin as of Dec. 4. Endeavour says now reaching out to Centamin shareholders with the merger proposal and expecting strong support from Centamin shareholders in next 28 days for company's proposal as many are cross-overs. Egypt's Sidi Kerir says estimated investment budget for 2020 EGP 6.88bln. Egypt's Heliopolis Housing approved in principal the offer from Zahraa Maadi to buy 34 feddans in New Heliopolis. (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% ADCB 52,041 7.48 10.26 7.37 9.03 0.96 6.1% (4.7) (13.1) (16.7) (6.6) ADIB 18,523 5.10 5.49 3.78 8.35 1.01 5.3% (4.0) (1.0) 14.1 28.8 (26.0) ADNIC (A EDm) (A ED) 12M% 1,069 2.85 3.90 2.60 7.62 0.74 10.5% NA 3.6 (16.2) 34,250 2.74 2.86 2.00 15.81 10.59 7.7% 4.2 5.2 5.6 21.8 Agthia 2,100 3.50 5.00 3.17 12.42 1.08 4.3% (0.0) (0.0) (2.8) (11.4) Air Arabia 6,953 1.49 1.51 0.90 NA 1.35 NA 8.0 23.1 44.7 50.2 Ajman Bank 1,907 0.91 0.98 0.82 11.67 0.75 3.9% (0.2) (3.0) 0.2 2.9 Al Waha Capital 1,925 0.99 2.00 0.89 NA 0.63 NA (2.0) (6.6) 3.2 (43.4) Aldar Properties 17,219 2.19 2.37 1.43 9.77 0.72 6.4% (6.4) 0.9 20.3 40.4 Amanat Holdings 2,163 0.87 1.20 0.80 41.53 0.85 1.7% (2.8) (1.6) (11.7) (20.6) ADNOC Dist Amlak Finance 684 0.46 0.64 0.25 NA 0.60 0.0% (10.8) 40.3 68.3 31.0 Arabtec 1,875 1.25 2.28 1.20 NA 1.58 4.0% (31.3) (22.4) (18.8) (37.2) Aramex 5,388 3.68 5.01 3.38 10.80 2.18 4.5% (2.9) (13.2) (14.0) (12.4) Bank of Sharjah 1,657 0.79 1.12 0.79 20.90 0.43 0.0% (1.0) (8.6) (14.8) (24.9) DAMAC Properties 4,780 0.79 1.77 0.73 24.94 0.34 NA (7.6) (16.3) (8.1) (55.6) Dana Gas 6,541 0.94 1.10 0.73 NA 0.68 5.9% 3.8 (5.1) (5.6) 1.6 Deyaar Development 2,034 0.35 0.43 0.29 22.03 0.45 0.0% (0.6) 10.3 13.5 (7.4) Dubai Financial Market 7,496 0.94 0.96 0.65 63.83 0.96 0.0% 8.1 4.0 31.8 16.3 Dubai Investment 5,443 1.28 1.63 1.04 14.11 0.46 NA 0.8 (3.8) 0.0 (3.0) Dubai Islamic Bank 35,188 5.34 5.40 4.66 7.32 1.11 6.6% 0.8 1.7 6.0 1.7 DXB Entertainments 1,624 0.20 0.30 0.17 NA 0.53 0.0% (0.0) (9.4) 1.5 (29.5) Emaar Dev 14,160 3.54 4.91 3.26 4.08 1.58 14.7% (10.4) (13.4) (9.7) (27.0) Emaar Malls 24,597 1.89 2.17 1.43 10.59 1.38 5.3% (3.1) (0.5) (2.6) 7.4 Emaar Properties 29,498 4.12 5.53 3.85 4.73 0.56 3.6% (1.0) (17.6) (7.8) (7.2) Emirates Integrated Tele 24,795 5.47 5.80 4.91 15.11 3.02 6.4% 1.3 (4.5) 9.0 9.4 Emirates NBD 75,483 11.95 13.93 7.95 4.84 0.92 3.3% 5.8 (10.2) 11.7 37.7 (34.9) Eshraq Investments 802 0.35 0.55 0.33 NA 0.55 NA (3.1) (15.9) (12.7) Etisalat 143,844 16.54 17.80 15.20 15.92 3.23 4.8% (1.1) (1.4) 3.9 (2.9) First Abu Dhabi Bank 165,984 15.20 16.96 13.50 14.04 1.60 4.9% (1.8) 1.3 2.3 10.3 3,218 0.89 1.15 0.73 10.43 0.77 3.6% 0.8 (2.6) (2.9) (20.6) 637 0.63 1.11 0.60 NA 0.73 0.0% (9.3) (23.8) (20.4) (40.5) 10,783 5.92 6.00 0.80 NM 10.52 NA 15.2 71.6 510.3 433.3 (52.4) GFH Gulf Navigation Holding IHC Julphar 1,159 1.00 2.09 1.00 NA 1.42 0.0% (17.4) (13.0) (36.7) 12,782 72.00 80.00 66.00 6.18 0.60 5.6% (10.0) (1.4) (3.4) (2.7) National Bank of Fujairah 9,232 4.99 4.99 3.60 14.69 1.67 1.3% NA NA 4.4 43.6 Tabreed 5,024 1.85 1.94 1.44 11.48 1.05 5.1% 1.6 8.2 17.8 22.5 RAK Bank 7,862 4.69 5.00 4.00 7.26 1.05 6.4% (0.2) 4.2 (1.3) 15.5 844 0.42 0.52 0.39 4.76 0.22 0.0% (5.8) (6.4) (1.9) (17.6) 1,505 1.59 1.99 1.42 8.75 0.64 9.0% (3.0) 1.3 2.6 (13.9) 636 0.53 0.71 0.39 28.40 0.84 NA (11.0) (20.9) (0.2) 5.0 Sharjah Islamic Bank 3,610 1.23 1.28 1.05 6.84 0.48 6.5% (0.0) (0.8) 11.8 5.1 SHUAA Capital 2,515 0.99 1.05 0.60 NA 1.88 NA 8.4 0.7 10.2 4.3 183 1.22 1.76 0.97 NA 1.32 5.7% 2.5 (13.5) (20.8) (28.2) TAQA 3,500 0.58 1.10 0.52 21.21 0.88 0.0% (13.9) (22.0) (27.9) (42.3) Union Properties 1,287 0.30 0.52 0.28 NA 0.44 0.0% (2.6) (9.1) (8.5) (41.7) United Arab Bank 2,042 0.99 1.30 0.90 NA 0.81 0.0% (10.0) (0.9) (20.2) (20.8) Mashreqbank RAK Properties RAK Ceramics SALAMA Takaful Emarat Insurance (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
  6. Disclaimer This report was prepared by SHUAA Securities (“SS”) in and for the United Arab Emirates (“U.A.E.”). SS 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. SS 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 SS’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 SS 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 SS 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 SS’s prior express consent.