Al Maha Market EYE. Yen down from recent peaks. GCC Market Returns (YTD) 12.0% 10.0% 8.0% 5.97% 6.0% 4.0% 2.0% 0.0% Muscat Stock Market -2.0% -4.

Transcription

1 Global markets & Commodities Watch GLOBAL NEWS WATCH International Indices Index Value % Change USA Dow Jones 17, % S&P 500 2, % NASDAQ 4, % EUROPE FTSE 100 6, % CAC 40 4, % DAX 30 9, % ASIA NIKKEI 16, % Hang Seng 20, % Strait Times 2, % Regional Indices Index Value % Change Muscat Stock 5, % Saudi Arabia 6, % Dubai 3, % Abu Dhabi 4, % Kuwait (Price Index) 5, % Bahrain 1, % Qatar 10, % Commodities Crude Oil ($/bbl) Value % Change Crude Oil (WTI) % Crude Oil (Brent) % Metals Value % Change Gold Future $/OZ 1, % Silver Future $/OZ % Aluminum $/T 1, % Copper $/T 4, % Nickel $/T 8, % Forex Cross Currency Rates for Major currencies Currency $ Rs US $ Indian Rupees (Rs) Sterling ( ) Euro ( ) Japanese Yen ( ) Al Maha EYE U.S. stocks rise, led by gains in the energy sector 13-Apr-16 U.S. stocks climbed on Tuesday as oil futures rose to settle at their highest levels of 2016 yesterday. The Dow Jones Industrial Average rose 0.94 percent to 17, The S&P 500 index was up 0.97%, to 2, Gains in the broad-market index were led by a 3.3% rise in energy stocks. The tech-heavy Nasdaq Composite Index climbed 43 points, or 0.8%, to 4, Asian shares extend rally on China trade relief Asian share markets extended early gains after upbeat Chinese trade data indicated that the economy was stabilizing, underpinning both risk sentiment and commodity prices. China reported exports rose 18.7 percent in yuan terms in March, compared to a year earlier, while imports dipped by only 1.7 percent. Shanghai stocks gained 1.9 percent while Japan's Nikkei rose 2.45 percent to its highest in eight sessions. MSCI's broadest index of Asia-Pacific shares outside Japan added 1.4 percent and Australia gained 1.1 percent. Oil prices fall on profit-taking, oversupply worries Oil futures fell as profit-taking and concern over a larger-than-expected build in U.S. crude stocks outweighed a report that Russia and Saudi Arabia had reached consensus on an oil output cap. U.S. crude stocks rose by 6.2 million barrels to million last week, data from industry group the American Petroleum Institute showed. A firmer U.S. dollar also pressured prices. Brent crude had dropped 27 cents to $44.45 a barrel, after hitting a four-month high in the previous session, when it settled up $1.86, or 4.3 percent. U.S. crude dropped 36 cents to $41.79 a barrel after settling up $1.81, or 4.48 percent, the day before. Yen down from recent peaks The safe-haven Japanese yen slid fromrecent peaks against the U.S. dollar as solid gains in oil prices helped underpin risk appetite. With hopes of a production cap agreed by top producers Russia and Saudi Arabia back in play, global oil prices climbed to four-month highs overnight. U.S. dollar rose as high as yen, having climbed from a near 18-month trough around set on Monday. The euro rose to yen, putting further distance from a three-year lowof setlast month. GCC Returns (YTD) 12.0% 10.0% 10.25% Currency Rates against OMR Currency Value % Change OMR/ $ % OMR/ % OMR/ % OMR/ % OMR/ Rs % 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 5.97% Muscat Stock 2.34% Saudi Arabia Dubai Abu Dhabi Kuwait (Price Index) Bahrain Qatar Debt market Interest Rates LIBOR EURIBOR 1M 3M 6M 1Y 0.436% 0.630% 0.896% 1.208% % % % % -4.0% -6.0% -8.0% -10.0% -7.35% -6.06% -7.24% -1.76% Sources: Bloomberg, Reuters, Zawya, MSM Data as on 8:30 AM, 13-Apr-16

2 Al Maha EYE 17-JAN-16 Round up REGIONAL & OMAN NEWS WATCH MSM Indices Movement as on 12-Apr-16 Index Last Close Prev. Close Change % Change MSM 30 MSM30 5, , % Financial 7, , % Industry INDSI 6, , % Services SINSI 3, , % Shariah % MSM Sectorial Snapshot Index MSM 30 Financial Industry Services Mcap Dividend P/E (Ann.) P/BV (RO'000) Yield 6,358, % 3,116, % 638, % 2,603, % Net Position Nationality Buy Sell Net Buy / Vol (%) Val (%) Vol (%) Val (%) Sell OMANIS % % % % 0.07 % GCC 1.48 % 1.10 % 2.60 % 2.88 % % ARABS 6.19 % 4.69 % 3.93 % 3.56 % 1.13 % OTHERS 4.69 % 4.54 % 2.48 % 3.97 % 0.57 % Stock Close % Change Volume BANK NIZWA GALFAR ENGINEERING AND C OMAN FISHERIES Stock GALFAR ENGINEERING AND C BANK NIZWA AL ANWAR HOLDING % 15,816, % % 12,715, % % 4,873, % Close % Change Turnover % 1,277, % % 1,253, % % 929, % REGIONAL Fitch cuts Saudi Arabia's IDR ratings to 'AA-' from 'AA' Fitch Ratings said on Tuesday it had cut Saudi Arabia's long-term foreign and local currency issuer default ratings to 'AA-' from 'AA' with a negative outlook as oil prices remain weak. The downward revision of our oil price assumptions for 2016 and 2017 to $35/b and $45/b, respectively, has major negative implications for Saudi Arabia's fiscal and external balances, the ratings agency said in a statement. Fitch also said it also considered Saudi Arabia's geopolitical risks to be high relative to 'AA'-rated peers. The agency said it expected Saudi Arabia's deficit-to-gdp ratio to narrow only marginally in 2016 and more substantially in 2017 on the back of a moderate recovery in oil prices. OMAN Relaxed eligibility criteria of banks required reserves a credit negative, says Moody s International ratings agency Moody s has termed the recent measure by the Central Bank of Oman (CBO), effectively relaxing the eligibility criteria of banks required reserves, as a 'credit negative'. Last week, a CBO circular announced a relaxation in the eligibility criteria of banks required reserves to include unencumbered Oman treasury bills; government development bonds (GDBs) and government Sukuk up to a maximum two per cent of deposits. The authorities left the total reserve requirement unchanged at five per cent of deposits. According to Moody s the measure is credit negative as it is designed to incentivize banks to replace cash reserves with government securities and to redeploy the freed up cash by purchasing more government securities and/or increasing private lending. The change is also an attempt to moderate the gradual liquidity tightening in the Omani banking system as economic growth slows in a low oil price environment, it added. MSM Movers Stock Close % Change Volume OMAN TEXTILE HOLDING % 2, % GALFAR ENGINEERING AND C % 12,715, % OMAN FISHERIES % 4,873, % Power firms in Oman to invest OMR400m in transmission, distribution networks MSM Shakers Power firms in Oman plan to invest around OMR400 million for expanding and upgrading Stock Close % Change Volume transmission and distribution networks this year, according to a top-level official of Electricity AL ANWAR CERAMIC TILES % 39, % Holding Company (or Nama Group). The group firms have invested approximately OMR400 BANK MUSCAT C C B % 20, % million in transmission and distribution networks to expand and improve services by delivering GLOBAL FINANCIAL INVESTM % 38, % more than 90 per cent of its annual project budget for the first time in the group s history, according to the Chief Executive Officr of Nama Group. The group firms have already MSM Volume Leaders raised funds from the market and not using government funding now, he added. MSM Value Leaders Oman Cement declares initial unaudited results for the financial year ended March 2016 Oman Cement Company SAOG has posted a net profit of 3.84 million rials for the quarter ended March 31, almost flat compared to that of RO 3.83 million reported for the corresponding quarter last year. Total revenues of the Company however registered a 6.6% year-on-year increase from RO15.66million of Q12015 to RO16.7million for Q Major holders' Trades Ticker NAPI Al Batinah Dev. & Inv. Holding Company 125,000 Buy 5.816% 1,880,000 Buy OEIO Global Financial (Trust) 5.496% 190,630 Sell CMII Ahmed bin Alawi bin Abdullah Al Ibrahim (OAB) 75,000 Sell 6.798% Breadth Advances 29 Declines 5 Total Securities Traded 53 Activity Statistics Traded volume Turnover (R.O.) 62,709,056 8,210,508 Sources:Bloomberg, Reuters, Zawya, MSM, MCDC holder Quantity Transaction Holding MSM Returns (YTD) 16.00% 14.65% 14.00% 12.00% 10.00% 8.00% 5.97% 6.00% 3.30% 4.00% 2.84% 2.00% 0.00% MSM Financial Industry Services

3 Technical Analysis MSM General Index Close Resistance Support EMA 10 EMA 25 RSI(14) ADX(14) 5, ,750 5,600 5,605 5, Source:Tickerchart EMA-Exponential Moving Average; RSI-Relative Strength Index: ADX-Average Directional index MSM General Index ended Tuesday's trading session at , advancing 0.84% with 62.7 million shares changed hands. Index extended gains on the ninth consecutive session supported by increase in volumes, while foreign investors were net buyers with their net buy position of 0.57%. continues to remain in the overbought territory and looks to be due for a correction after the smart advancement of 4.8%onmonth todatebasis.on thedown side,immediate support isseen for the indexat5600 levels. ` Al Maha Financial Services LLC

4 MSM Corporate Score Sheet Company Price 52-Weeks (Closing) Revenue Cap Capital (Values in RO '000) 12-Apr-16 High Low FY2015 FY2014 Financial National Bank of Oman , , , ,230 19% 60,106 50,268 20% % Bank Muscat , , , ,110 6% 175, ,747 14% % Ahli Bank , ,507 55,973 51,632 8% 27,727 25,127 10% % Bank Sohar , ,135 70,910 70,319 1% 27,746 29,878-7% % Bank Dhofar , , ,226 98,851 17% 46,765 40,453 16% % HSBC Bank Oman , ,031 69,218 69,639-1% 9,131 11,057-17% % Bank Nizwa , ,500 11,913 7,518 58% (4,760) (7,709) 38% NM Ominvest , , ,888 89,254 60% 22,949 14,505 58% % Al Anwar Holding* ,008 34,067 4,550 6,153-26% 2,964 4,959-40% Gulf Inv. Services ,023 19, ,218-78% (801) 1,482 NM NM Global Fin.Inv ,000 26,200 2,699 3,494-23% 1,415 (156) NM % Oman United Insurance ,000 26,800 7,554 7,486 1% 3,311 3,570-7% % Oman and Emirates Hldg ,188 16, ,791-94% (2,816) 504 NM NM Al Sharqia Investment Hldg ,000 11,160 1,305 1,848-29% % NM 0.8 Al Batinah Dev. Inv. Holding ,000 2, % % NM 0.8 Aggregate , , % Industry Oman Cement , ,832 52,182 51,344 2% 11,703 13,149-11% % Raysut Cement , ,000 94,676 94,293 0% 20,954 27,426-24% % Al Anwar Ceramic ,621 83,532 27,443 28,778-5% 6,537 9,766-33% % Oman Cables , , , ,146-6% 18,507 17,718 4% % Galfar Engineering ,522 41, , ,510-7% 2, NM NM Gulf Int. Chemicals ,100 5,796 3,957 3,892 2% % % Aggregate ,880 68, % Services Shell Oman ing , , , ,511-7% 14,175 12,278 15% % Renaissance Services ,065 54, , ,406-3% ,397-94% NM 0.4 Omantel ,000 1,192, , ,225 7% 118, ,392-3% % Ooredoo , , , ,700 11% 45,700 37,886 21% % Oman Inv. & Finance** ,000 43,400 11,729 10,434 12% 4,118 4,394-6% % Al Maha Petroleum , , , ,939-5% 9,213 10,707-14% % Sembcorp Salalah , ,962 73,621 62,771 17% 13,644 12,813 6% % Al Batinah Power , ,702 67,928 51,872 31% 7,084 5,008 41% % Al Suwadi Power , ,454 66,714 51,063 31% 7,246 4,818 50% % Aggregate 2,603, , , % MSM-30-6,358, , , % Others Phoenix Power , , ,866 2,274 NM 5,263 (10,986) NM NM % ACWA Power Barka , ,800 65,411 45,274 44% 10,513 11,433-8% % Al Maha Ceramics ,250 21,735 9,843 10,842-9% 2,401 2,703-11% % United Finance ,630 42,419 12,274 12,262 0% 5,241 4,961 6% % Voltamp Energy ,050 26,499 35,833 26,118 37% 3,254 2,003 62% % Jazeera Steel Product ,490 21,233 68,862 95,331-28% 1,715 5,207-67% % National Aluminium ,357 8,292 24,661 19,399 27% % % Al Jazeira Services ,172 30,164 13,138 13,524-3% 3,718 4,883-24% % Al Hassan Engineering ,521 6, ,278 76,295 34% (8,224) (1,441) NM NM * Revenue & Net Profit for nine months ended 31 December Note : PBV is based on the latest available Financial Statements. Valuations are based on adjusted earnings. NM - Not Meaningful. OIFC has changed its accounting year to 1 January to 31 December. PE is based on TTM earnings. Source:MSM Y-o-Y % Change FY2015 Net Profit FY2014 Y-o-Y % Change EPS BVPS PE PBV Cash DPS FY 2015 Cash Dividend Yield

5 Al Maha EYE PO Box 1065 PC 117, Al Wadi Al Kabir, Sultanate of Oman Contacts Telephone Customer service & Operations: Zakia Al Ghammari Muna Al Hashmi Pravin Sivan Research: Suresh Kumar Radhika Gadhia Khushboo Badlani Asset Management: Syed Zahiruddin Shailendra Kumar Singh Brokerage: Mahmoud Al Hamsaidi Halima Al Mahrooqi Nasser Al Banna Disclaimer The information contained in this report has been obtained from the sources believed to be reliable and in good faith, but which may not be verified independently. While utmost care has been taken in preparing the above report, Al Maha Financial Services LLC makes no guarantee, representation or warranty, whether expressed or implied, and accepts no responsibility or liability to its accuracy and completeness ofthedata,beingprovided. Opinionexpressed is our currentopinionas ofthedateappearing onthis materialonly. Wedo notundertake toadvise you as toanychangeof our views expressed in this document. The investments discussed in this report may not be suitable for all the investors. Investors must take their own decision based on their specific investment objectives and financial position, and using such independent advisors, as they believe necessary. Income from investments may fluctuate. The price or value of the investments, to which this report relates, either directly or indirectly, may fall against the interest of investors. This document is strictly for the use of recipients only. None of the material provided herein may be reproduced, rewritten, rehashed, published, resold or distributed in any manner whatsoever without the prior and explicit written permission of