MENA Daily Market Report 21 March 2013

Transcription

1 GCC MARKET INDICES GCC Markets Indices Close % DTD % YTD KSE Weighted Index % 4.2% KSE Price Index 6, % 15.0% Tadawul All Share Index 7, % 4.3% DFM Index 1, % 17.0% ADX Index 3, % 14.7% Bahrain All Share 1, % 5.0% QE Index 8, % 2.6% MSM30 Index 6, % 6.5% LEVANT & NORTH AFRICA MARKETS INDICES Close % DTD % YTD Egypt - EGX30 5, % -5.5% Egypt - EGX % -5.7% Jordan - Amman Fr Flt Index 2, % 6.2% Palestine - AlQuds Index % 0.0% Lebanon - BLOM Stk Index* 1, % 3.1% Morocco - CASA All Share index* 8, % -5.4% Tunisia - Tunisia Main Index* 4, % 3.2% *Traded from Monday till Friday ECONOMIC CALENDAR Date Nature of Release Country/ Region Period Actual Est. 20 Mar FOMC Rate US Mar % 0.25% 20 Mar Producer Prices (MoM) Germany Feb -0.1% 0.2% 21 Mar HSBC Manufacturing PMI China Mar Mar Initial Jobless Claims ( 000) US Mar Mar House Price Index (MoM) US Jan - 0.7% 21 Mar Existing Home Sales (MoM) US Feb - 1.6% 21 Mar PMI Manufacturing Eurozone Mar Mar PMI Manufacturing Germany Mar Mar PMI Manufacturing France Mar Source: Bloomberg EARNINGS CALENDAR Date Company Country Period Est. EPS* 21 Mar Kuwait Slaughter House Kuwait Mar Kuwait Remal Real Estate Kuwait Mar Kuwait Reinsurnace Co. Kuwait Mar Advanced Technology Co. Kuwait Mar Manazel Holding Kuwait Mar Yiaco Medical Co. Kuwait Mar Taiba Kuwaiti Holding Co. Kuwait Mar Livestock Transport & Trdg. Kuwait * Consensus estimates in local currency Source: Bloomberg MARKET COMMENTARY/NEWS COMMENTARY US markets advanced mid-week after the Federal Reserve reaffirmed its bond buying policy and record-low interest rates amid concerns over the Cyprus bailout. European stocks ended mixed Wednesday ahead of Russia s decision about extending the loan agreement with Cyprus. Asian markets are trading higher with Nikkei 225 advancing to a four-and-a-half-year high Thursday; this is fueled by upbeat Chinese manufacturing data and encouraging comments from the US central bank. Insurance penetration in the GCC region remains very low, close to 2%. This is ascribed to the lack of awareness and large number of expatriates in the region. Most people are unaware about the benefits of being insured, while some consider insurance as non-islamic. The large number of expatriates does not spend on insurance as they stay in the region for a short time. Insurance premiums in the MENA region account for just 1.3% of the GDP, while the global average stands at 10%. This is also due to the huge risks borne by governments of most GCC countries, which reduces the need for people to opt for insurance. NEWS Saudi Research & Marketing Group approves distribution of cash dividend Saudi Research & Marketing Group approved the Board of Directors proposal to distribute a cash dividend of 10% at its Annual Ordinary General Assembly Meeting. National Bank of Fujairah approves distribution of cash dividend UAE-based National Bank of Fujairah approved the Board of Directors proposal to distribute a cash dividend of 10% at its Annual Ordinary General Meeting. Dubai Economic Council signs MoU with Latham & Watkins LLP Dubai Economic Council inked a Memorandum of Understanding (MoU) with Latham & Watkins LLP to work together in joint research, strategic market analysis and knowledge sharing in mutual areas of interest. Arabtec Holding to raise capital through USD1.3bn rights issue Dubai-based Arabtec Holding is planning to increase its share capital by USD1.3bn through a two-phase rights issue. The company aims to raise USD650mn in 2013 and USD650mn in 2014, if required. In addition, Arabtec may issue non-convertible bonds of around USD450mn by the end of Emirates Steel Industries signs iron ore supply contract Emirates Steel Industries entered into a sales contract with Sweden-based Luossavaara-Kiirunavaara Aktiebolag (LKAB) under which the latter would supply quality iron ore pellets early-2013 onward. Nakilat Damen Shipyards Qatar signs contract to build 69-meter vessel Nakilat Damen Shipyards Qatar entered into a contract to construct a 60-meter fast luxury vessel at Erhama Bin Jaber Al Jalahma Shipyard. Qatar loan growth slows in February Loan growth in Qatar decelerated to 1.1% MoM in February, according to data from the Qatar Central Bank. This can be ascribed to a drop in loans to public sector. Al Baraka Banking Group approves distribution of cash dividend and bonus shares Bahrain-based Al Baraka Banking Group approved the Board of Directors proposal to distribute a cash dividend of USD35.3mn and issue one bonus share for every 30 fully paid-up shares held at its Ordinary and Extraordinary General Meetings. 1

2 Gulf Investment Corporation to invest USD50mn in Virgin Mobile Bahrain-based Gulf Investment Corporation announced plans to invest USD50mn in Virgin Mobile Middle East & Africa. Bahrain Commercial Facilities Company announces 2012 results Bahrain Commercial Facilities Company s net profit increased 41% YoY to BHD12.3mn in Central Bank of Bahrain s Sukuk Al-Ijara oversubscribed by 205% The Central Bank of Bahrain s monthly issue of Sukuk Al-Ijara, worth BHD20mn, was oversubscribed by 205%. The sukuk carries a maturity of 182 days and an expected return of 0.95%. GCC Islamic banking assets grow 14% to USD445bn Islamic banking assets in the GCC region increased 14% YoY to USD445bn in Meanwhile, the conventional banking assets rose 8.1% YoY. 2

3 INTERNATIONAL INDICES US Indices Close % DTD % YTD P/E(x) DJ Average 14, % 10.7% 14.8 NASDAQ Composite 3, % 7.8% 12.8 S&P500 Comp. 1, % 9.3% 16.4 European Indices FTSE UK 6, % 9.1% 12.7 Extra DAX - Germany 8, % 5.1% 12.7 CAC 40 - France 3, % 5.2% 14.6 Asian Indices Bombay SE SENSEX -India 18, % -2.8% 15.7 SSE Composite China 2, % 2.1% 11.7 NIKKEI 225 INDEX- Japan 12, % 19.9% 20.6 Hang Seng - Hong Kong 22, % -1.8% 11.2 COMMODITY PRICE MOVEMENTS Commodities Market Close % DTD % QTD % YTD Gold ($/Oz) 1, % -4.1% -4.1% Silver ($/Oz) % -5.1% -5.1% WTI Crude ($/bbl) % 1.2% 1.2% Nat Gas 1M Fut. ($/MMBTU) % 17.7% 17.7% CRB Spot Index % -0.5% -0.5% OPEC Grade Crude Oil ($/bl) % -1.4% -1.4% Copper ($/MT) 7, % -4.1% -4.1% Zinc ($/MT) 1, % -7.4% -7.4% Aluminium ($/MT) 1, % -6.9% -6.9%, Bloomberg INTEREST RATE WATCH Interest Rates (%) 1M 3M 6M 12M LIBOR (USD) Europe (EURIBOR) KSA (SAIBOR) UAE (EIBOR) KUWAIT (KIBOR) EGYPT (CAIBOR) INTERNATIONAL NEWS US Federal Reserve to maintain monetary policy In its recent vote, the US Federal Reserve decided to maintain its current monetary policy, under which it would continue to buy assets worth USD85bn a month and keep the benchmark interest rate unchanged unless the unemployment rate declines to 6.5%. Eurozone current account surplus narrows in January The current account surplus in the Eurozone decreased to EUR14.8bn in January (on a seasonally adjusted basis) from EUR16bn in December. The surplus on trade in goods fell to EUR12.3bn from EUR15.8bn, while that in services narrowed to EUR7.8bn from EUR8.1bn in December. BoE retains asset purchase size; keeps key interest rate unchanged The Bank of England decided against increasing the size of its asset purchase program to GBP400bn from GBP375bn currently due to inflation fears. Meanwhile, the key interest rate was kept unchanged at 0.5%. UK jobless claims decrease less than predicted The jobless claimant count in the UK decreased by 1,500 MoM to 1.54mn in February. The market predicted a decline of 5,000. The claimant count rate remained unchanged at 4.7% for the second straight month. UK mortgage lending falls Gross mortgage lending in the UK fell 8% MoM to GBP10.5bn in February. However, on an annual basis, the mortgage lending was up 1%. Germany s output price inflation eases more than expected Germany s producer price index edged up 1.2% YoY in February, considerably slower than the 1.7% YoY gain in January. The market expected a 1.5% YoY rise. Leading index in France rises in January A leading economic index in France rose 0.5% MoM to in January, after declining 0.3% MoM in December. Cyprus to propose alternative plan to secure bailout funds Cyprus' President is expected to present an alternative plan before the country's political leaders on Thursday to secure the EUR10bn bailout fund. China s manufacturing sector continues to improve China s manufacturing sector continued to improve with the Markit/HSBC PMI rising to 51.7 in March from 50.4 in February. COMMODITIES NEWS Crude oil ends higher on inventory data US crude oil edged higher after the latest EIA report showed a decline in crude stockpiles last week. Light Sweet Crude Oil futures for April delivery edged up USD0.98, or 1.1%, to end at USD93.5 a barrel on the NYMEX. Gold ends lower ahead of Federal Reserve meeting Gold futures settled lower with investors remaining hopeful of a positive outcome of the latest Federal Reserve meeting. Gold futures for delivery in April fell USD3.80, or 0.2%, to end at USD1, an ounce on the Comex division of the NYMEX. Natural gas ends lower on profit booking Natural gas futures ended lower for the first time in six days with investors booking profits from the previous session s rally ahead of US supply data. Natural gas futures for delivery in April declined 1.1% to close at USD3.924 per mbtu on the NYMEX. 3

4 MENA MARKETS ACTIVE STOCKS Company Close* % DTD % YTD 52 wk High* 52 wk Low* P/E (x) P/B (x) Value Traded (USDmn) M.CAP (USDbn) Kuwait National Industries Group Holding % 8.4% NA Ithmaar Bank BSC % 51.1% NA Equipment Holding Co KSCC % 153.7% NA Gulf Investment House KSCC % 55.3% NA Sokouk Holding Co KSCC % 21.7% NA Saudi Arabia National Medical Care Co JSC % -32.2% NA NA Saudi Indian Co. for Coop. Ins % 84.5% NA Saudi Basic Industries Corporation % 5.3% Food Products Co % 34.9% Saudi Automotive Services Co % 34.9% UAE Emaar Properties PJSC % 43.2% Aldar Properties PJSC % 10.2% National Central Cooling Co PJSC % 29.8% Emirates Telecommunication Corp % 13.6% National Bank of Abu Dhabi PJSC % 17.5% Qatar Industries Qatar QSC % 10.6% Commercial Bank of Qatar QSC % -5.9% Qatar Gas Transport Co Ltd % 14.3% Qatar Fuel QSC % 9.1% Masraf Al Rayan QSC % 0.6% Oman Bank Muscat SAOG % 11.8% Bank Sohar SAOG % 5.6% A Sharqiya Investment Holding Co % 36.4% Oman and Emirates Investment % 14.7% Oman Telecommunications Co 1, % 0.9% Bahrain Ithmaar Bank BSC** % 41.2% NA Khaleeji Commercial Bank BSC % -26.2% Al Salam Bank Bahrain BSC % 47.2% Bahrain Telecommunications Co % 6.2% Ahli United Bank BSC** % 13.7% Egypt Commercial Intl Bank Egypt SAE % -8.9% Egyptian Financial Group Hermes % -5.9% Ezz Steel Co SAE % -8.0% Orascom TMT Holding SAE % 36.4% NA Palm Hills Developments Co % -13.1% Jordan Union Investment Corp PLC % 111.4% NA Specialized Inv. Compounds Co % 88.2% NA Union Land Development Corp % 49.4% NA Al Tajamouat for Catering & Hsg % 113.8% Ad Dulayl Ind. Park & Real Estate % 92.7% , Tickerchart.com, Bloomberg *in local currency unless specified, Price data for Kuwait and Bahrain stocks is in fils and for Oman stocks in Baizas, **Price data in USD 4

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