AMMAN STOCK EXCHANGE WEEKLY MARKET WRAP-UP

Transcription

1 2017 AMMAN STOCK EXCHANGE WEEKLY MARKET WRAP-UP Research Contacts: Mohammad Al-Zou bi, CFA Financial Analyst Tel: Ext Mohammad.Alzoubi@Capitalinv.com May 1 st, 2017

2 Index Performance P/E P/B Div Yld , Bloomberg 0 Market Breadth ASE General Index JOD VALUE TRADED (LHS) Source: Bloomberg Gainers Losers Unchanged Last Week Sector Value Volume % Change JD # of share Last week YTD YTD -1.5% 0.7% Index (RHS) Financial 18,384,476 19,461, % 1.45% Services 10,214,540 10,196, % -0.21% Industrial 6,538,268 5,684, % -1.73% 2,300 2,250 2,200 2,150 2,100 2,050 2,000 1,950 1,900 1, x 1.24x 3.91% Avg Daily Trading Activity Last week YTD Value (JOD Million) Volume (Million Shares) Top Gainers Price % Chg SURA % SHIRA % ALENTKAEYA COMPANY % Top Losers Price % Chg AL SHARQ INV % SPCZ.INVST.COMD % AL-SANABEL INT % Most Active Price % Chg SURA % JOR STEEL % AL-AMAL INV % Top Value Traded Price % Chg JOR PETROLM REF % SURA % ARAB BANK % JOD Interest Rate Summary 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% May-13 Nov-13 Jun-14 Dec-14 Jul-15 Jan-16 Aug-16 Mar-17 Sep-17 Government 2-Year Issues Government 3-Year Issues Government 5-Year Issues Government 7-Year Issues Government 10-Year Issues Source: SDC, CBJ Maturity Issuance Date Interest Rate Two years 11/12/ % Three years 26/01/ % Five years 11/04/ % Seven years 16/01/ % Ten years 23/01/ % Source: CBJ Jordan EuroBonds Yields Source: Bloomberg 2

3 Amman Stock Exchange News Phosphate Company "at Unacceptable Level", Says Chairman Major Agreements Signed for Petroleum Refinery Expansion Phosphate Company "at Unacceptable Level", Says Chairman Chairman of the Jordan Phosphate Mines Company (JOPH), Muhammad Thniebat, on Saturday, said the company has arrived at an unacceptable level after posting unprecedented losses of JOD90 million. While acknowledging that lower prices in international markets were primarily to blame for the losses, Thniebat made it clear that it was not the only reason. He said higher fuel, water and electric power costs amounted to JOD45 million while labour costs and employee benefits ate up a whopping JOD97 million of the firm's revenues. Thniebat, a former minister, promised that a comprehensive roadmap will be devised and put in place soon to address the effects of "this crisis" by rationalizing spending, optimizing human and material resources and increasing production to about 11.5 million tons per year. He pointed out that the company is negotiating with the allied mining companies to reduce production costs and review agreements sealed with them to reach a better position for the JOPH. (Alghad Newspaper) Major Agreements Signed for Petroleum Refinery Expansion Prime Minister, Hani Mulqi, on Sunday, patronized the signing of two agreements between the Jordan Petroleum Refinery Company (JOPT) and two US oil companies, specializing in oil and refineries' design, to kick-start the JOPT's fourth expansion project, estimated at a total cost of about USD1.6 billion. The two agreements were signed by JOPT's CEO, Abdel Karim Alawin, US Honeywell-UOP President and CEO, Rebecca Liebert, and Refining Technology, KBR, Vice President, Doug Kelly. The two agreements pertain to granting the necessary licenses for implementing the JOPT's fourth expansion project from relevant authorities concerned with technological matters and basic engineering designs required for the project. Alawin said the signing is related to licensing activities, designs, equipment, assisting factors and services with costs exceeding USD115 million. He explained that the activities will take about 8 months to complete. The project will improve the quality of products, increase the profitability of refining activity and significantly contribute to preserving the environment. (Alghad Newspaper) 3

4 Amman Stock Exchange Financial Results, 1Q 2017 Company Name Ticker Net Income (JD million) 1Q Q 2017 % Chg. The Housing Bank for Trade and Finance THBK % Jordan Islamic Bank JOIB % Bank of Jordan BOJX % Cairo Amman Bank CABK % Jordan Ahli Bank AHLI % Bank Al Etihad UBSI % Capital Bank of Jordan EXFB % ABC Bank ABCO % Invest Bank INVB % Jordan Dubai Islamic Bank JDIB % Al-Eqbal Investment Company EICO % Jordan Telecom JTEL % Jordan Phosphate Mines JOPH % Arab Potash Company APOT % Al-Tajamouat for Touristic Projects TAJM % Mobedco MBED % Ready Mix Concrete & Construction RMCC % Northern Cement NCCO % Zara Investment Holding ZARA % 4

5 Economic News Jordan Issues USD500 Million Worth Eurobonds Umniah Doubles 4G Internet Network Capacities UAE Says Vegetable Ban Precautionary World Bank Announces New Funds for Refugees, Host Communities Domestic Expenditures on Outbound Travel Up 8% Jordan Issues USD500 Million Worth Eurobonds Jordan has successfully issued USD500-million worth of Eurobonds on international markets, the Ministry of Finance said Wednesday. The bond was sold with a yield rate of 5.875%, the ministry said. The bond, whose maturity date is in 2026, was more than three times oversubscribed with demand exceeding USD1.7 million, according to the ministry. Citigroup and J.P. Morgan managed the issuance. More than 150 major global investment funds in the US, the UK and Asia as well as some funds from the Arab Gulf were part of the oversubscription. (The Jordan Times) Umniah Doubles 4G Internet Network Capacities Umniah on Wednesday announced the implementation of its plan to double the capacity of its 4G mobile and fixed Internet networks, through an investment estimated at $100 million in 2017, according to a statement from the telecom company. In cooperation with Huawei International, the telecom s expansion aims to achieve higher holding capacities and wider coverage for its customers across Jordan, the statement added. (The Jordan Times) UAE Says Vegetable Ban Precautionary The United Arab Emirates ban on imports of some Jordanian vegetables is precautionary and will be implemented if exporters sent produce that does not meet mutual agreements, the UAE Ambassador to Jordan Bilal Al Budoor said on Tuesday. The UAE is taking precautionary measures in the import of vegetables. It demands commitment to the standards and the signed agreements governing the matter to elevate the quality of imports and eliminate pathogens such as bacteria and pesticides residues, Budoor said in a statement to The Jordan Times. The ministry of climate change and environment in the UAE had announced a decision to ban the import of seven of Jordan s main vegetable exports as of mid-may. The ban was put in place due to increasing levels of chemical pesticide residues in Jordan s agricultural products. The vegetables reportedly banned include all types of zucchini, sweet pepper, eggplant, cabbage, green beans, cauliflower and lettuce. The UAE s decision also stipulated that imports of any fruit and vegetables, besides the aforementioned, be coupled with certificates from the Jordanian Ministry of Agriculture indicating that the produce was free from pesticide remnants. The decision will go into force mid-may if exporters failed to heed to the agreements, Budoor noted. (The Jordan Times) 5

6 Economic News (Cont d) World Bank Announces New Funds for Refugees, Host Communities The World Bank's Concessional Financing Facility (CFF) on Saturday announced USD350-million concessional funding for three new projects to support Syrian refugees and host communities in Jordan and Lebanon. The new projects aim to improve the lives of Syrian refugees and host communities by expanding vital public health services in both Jordan and Lebanon, as well as strengthening critical wastewater infrastructure in Jordan. In addition to the new financing, the CFF program supports a USD300-million project in Jordan to enhance investment and job creation for both Jordanians and Syrian refugees. As a result, more than 40,000 Syrian refugees have obtained work permits. Two other projects in Jordan have received CFF funding, including a USD48-million project to strengthen wastewater infrastructure and USD250 million to improve the management and delivery of water and electricity. (The Jordan Times) Domestic Expenditures on Outbound Travel Up 8% Figures published by the Central Bank of Jordan (CBJ) show that domestic expenditures on outbound travel and tourism have grown by 8.2%, approximately JOD11.7 million, over the first two months of the year, 2017, compared to the same duration last year. Total national expenditure on outbound travels by the end of February, this year, stood at JOD155.1 million, compared to JOD143.4 million by end of February, According to the Central Bank s publication, these include expenditures on overseas education, tourism, and medical treatment, among other purposes. More Jordanians have travelled overseas in these two months, comparatively, up 6.5%, from 463 thousand outbound Jordanian nationals, by Feb-2016, to 493 thousand. Over the entirety of 2016, Jordanian expenditure on outbound travel and tourism increased by JOD69.9 million, or 8.4%, totaling JOD892.9 million, compared JOD823 million in Notably, this is in spite of added costs, including the newly imposed 16 per cent tax for Jordanian travelers and a special JOD40 tax on air travel, among other expenses. (Alghad Newspaper) 6

7 Price Perfomance Multiplies Fundamentals Company Market Cap. Last Price 52 Week 52 Week Low % Weekly % Change Dividend Net Debt To P/E (X) P/B (X) ROA (%) ROE (%) (JOD MILLION) (JOD) High (JOD) (JOD) Change YTD Yield (%) Equity (%) FINANCIALS % FINANCIALS-BANKS Median % 1.12% 8.31% NM ARAB BANK PLC % -0.49% % 1.08% 6.56% NM HOUSING BANK FOR TRADE AND FINANCE % 11.40% % 1.56% 11.74% NM JORDAN ISLAMIC BANK % 8.81% % 1.35% 15.81% NM BANK OF JORDAN % -9.38% % 1.90% 10.96% NM JORDAN KUWAIT BANK % -3.55% % 1.07% 6.65% NM CAIRO AMMAN BANK % 1.08% % 1.40% 11.06% NM ARAB JORDAN INVESTMENT BANK % 5.29% % 1.17% 10.52% NM JORDAN AHLI BANK % 9.57% % 0.24% 2.15% NM BANK AL ETIHAD % -5.77% % 1.01% - NM CAPITAL BANK OF JORDAN % -2.41% % 4.55% NM JORDAN COMMERCIAL BANK % -3.57% % 6.72% NM ABC BANK-JORDAN % -6.82% % 1.23% 8.31% NM INVEST BANK CO % -9.40% % 1.77% 9.86% NM JORDAN DUBAI ISLAMIC BANK % -1.56% % 4.78% NM FINANCIALS-INSURANCE Median % 4.28% 11.18% NM AL-NISR AL-ARABI INSURANCE % -1.48% % 3.62% 12.03% NM MIDDLE EAST INSURANCE % 1.80% % 5.38% 11.52% NM ISLAMIC INSURANCE CO % 5.59% % 4.94% 10.85% NM JORDAN INTL INSURANCE % -9.86% % 1.55% 2.56% NM FINANCIALS-DIVERSIFIED FINANCIALS Median % 0.18% 0.21% NM UNION INVESTMENT CORP % 34.78% % FIRST FINANCE CORP % 8.54% % 6.27% 8.01% -7.08% AL SANABEL INTERNATIONAL CO % 20.25% % -3.38% -0.10% ARAB EAST FOR REAL ESTATE INV % 12.86% % -1.22% 6.76% AL AMAL FINANCIAL INVESTMENT % -1.47% % 3.46% 3.79% 0.23% FUTURE ARAB INVESTMENT CO % 5.41% % 0.14% 4.25% ISRAA ISLAMIC FINANCIAL % -6.52% % 0.29% -0.96% JORDANIAN EXPATRIATES INV HLD % 10.42% % -3.66% % AL-AMIN FOR INVESTMENT % 4.62% % 3.86% % NATL PORTFOLIO SECURITIES % 20.41% % 5.02% 12.92% JORDAN EMIRATES DIMENSIONS % -4.55% % -0.29% -1.64% FINANCIALS-REAL ESTATE Median % 1.63% 1.94% 3.27% UNION LAND DEVELOPMENT CORP % 48.51% % -0.21% 13.73% INJAZ FOR DEVELOPMENT AND PROJECTS % 44.36% % 2.85% 7.98% 84.37% AL-TAJAMOUAT FOR TOURISTIC PROJECTS % -6.25% % 3.24% 39.81% DEERA INVESTMENT & REAL ESTATE % -1.06% % -0.10% -0.11% 0.84% JORDAN MASAKEN FOR LAND & INV % % % -0.62% 12.90% ARAB EAST INVESTMENT % 40.82% % 2.15% 3.25% REAL ESTATE DEVELOPMENT % 33.33% % 6.55% 24.54% 7

8 Price Performance Multiplies Fundamentals Company Market Cap Last Price 52 Week 52 Week Low % Weekly % Change Dividend Net Debt To P/E (x) P/B (x) ROA (%) ROE (%) (JOD Millions) (JOD) High (JOD) (JOD) Change YTD Yield (%) Equity (%) PROFESSIONAL FOR REAL ESTATE % -8.00% % 2.55% 2.99% -5.17% JORDAN DECAPOLIS PROPERTIES % % % -0.92% 3.30% JORDANIAN REAL ESTATE FOR DEVELOPMENT % -5.36% % 1.72% % METHAQ REAL ESTATE INVESTMENT % 12.50% % 6.47% % BINDAR TRADING & INVESTMENT % 4.29% % 4.68% 8.04% 50.60% ARAB FINANCIAL INVEST CO % % % 2.45% 2.80% % AMAD INVESTMENT & REAL ESTATE % -9.93% % 2.76% 3.02% -5.81% AD-DULAYL INDUSTRIAL PARK CO % -2.22% % 2.17% 4.98% UNITED FINANCIAL INVESTMENTS % % % 4.22% 5.42% % SPECIALIZED INVESTMENT COMPOUNDS % % % % % COMPREHENSIVE LAND DEVELOPMENT % 2.67% % -5.08% 18.69% CONTEMPORARY FOR HOUSING PROJECTS % -8.08% % AMMOUN INTERNATIONAL FOR INV % % % -3.58% % EMMAR INVESTMENTS & REAL ESTATE % 4.35% % -6.32% 17.08% HIGH PERFORMANCE REAL ESTATE % % % -0.98% -0.03% AL-RAKAEZ INVESTMENT CO % 0.00% % 0.89% 1.18% FINANCIALS MEDIAN NM INDUSTRIALS % AFAQ FOR ENERGY CO PLC % 0.00% % 6.32% 14.66% 62.62% ALIA THE ROYAL JORDANIAN AIRLINES % 2.27% % % % JORDAN NATL SHIPPING LINES % 6.33% % 8.54% 14.35% 18.58% ARABIAN AVIATION INVESTMENT % % % 33.53% % UNITED CABLE INDUSTRIES CO % -2.78% % 0.35% 0.42% -8.00% RUM TOURIST TRANSPORTATION CO % % % 0.70% 0.91% 5.52% MASAFAT FOR SPECIALIZED TRANSPORTATION % % % 3.15% 4.59% 27.03% BARTER CO FOR INVESTMENT & TRADE % 34.88% % 0.86% 1.08% 9.29% SALAM INTL TRANSPORT & TRADE % -4.65% % 0.89% 46.85% NATIONAL CABLE & WIRE MANUFACTURING % 3.13% % -8.10% 36.79% INDUSTRIALS MEDIAN % 0.86% 1.08% 18.58% MATERIALS % ARAB POTASH/THE % -0.94% % 6.88% 7.61% % JORDAN PHOSPHATE MINES % 26.17% % % 28.25% LAFARGE JORDAN CEMENT % 19.23% % -5.49% 24.15% UNITED IRON & STEEL MANUFACTURING % 39.06% % 2.89% 41.72% READY MIX CONCRETE & CONSTRUCTION % -2.70% % 7.11% 12.05% 13.44% ARAB PESTICIDE AND VETERINARY % -6.06% % 7.79% 12.15% 11.51% JORDAN STEEL % 62.86% % 0.54% 35.84% ARAB ALUMINIUM INDUSTRY % -9.62% % 3.05% 3.99% 3.89% ARABIAN STEEL PIPES % 20.19% % 2.99% 3.77% 7.52% NATIONAL CHLORINE % -6.25% % -9.82% % MATERIALS MEDIAN % 1.97% 3.33% 18.79% 8

9 Price Performance Multiplies Fundamentals Company Market Cap Last Price 52 Week 52 Week Low % Weekly % Change Dividend Net Debt To P/E (x) P/B (x) ROA (%) ROE (%) (JOD Millions) (JOD) High (JOD) (JOD) Change YTD Yield (%) Equity (%) CONSUMER DISCRETIONARY % JORDAN DUTY FREE SHOP % 12.39% % 44.02% 48.38% % ARAB INTERNATIONAL CO FOR INV % -8.13% % 8.93% 11.41% -2.13% ZARA INVESTMENTS % 23.26% % 1.25% -4.59% AL-ISRA FOR EDUCATION & INV % 0.88% % 7.63% 9.97% % JORDAN WORSTED MILLS % -6.80% % 4.65% 5.46% % ARAB INTERNATIONAL HOTELS % % % 3.71% 4.87% 6.13% AL-DAWLIYA HOTELS & MALLS % -6.67% % 7.72% 8.74% 7.64% ZARKA EDUCATION & INVESTMENT % % % 3.21% 5.49% 32.21% ITTIHAD SCHOOLS COMPANY % 19.63% % 7.03% 9.90% -6.17% JORDAN PRESS FOUNDATI/AL-RAI % % % -8.67% 18.28% AL-TAJAMOUAT FOR CATERING HOUSING % 37.21% % -1.39% % EL-ZAY READY WEAR MANUF CO % % % CONSUMER DISCRETIONARY MEDIAN % 4.65% 5.49% -3.36% CONSUMER STAPLES % AL EQBAL CO FOR INVESTMENT % -7.01% % 34.43% 63.26% % UNION TOBACCO & CIGARETTE % % % 0.17% 66.70% SINIORA FOOD INDUSTRIES CO % -0.28% % 4.92% 9.47% 50.36% INDUSTRIAL COMMERCIAL & AGRICULTURE % % % 0.17% 8.94% UNIVERSAL MODERN INDUSTRIES % % % 11.35% 12.97% % CONSUMER STAPLES MEDIAN % 4.92% 9.47% 8.94% HEALTH CARE % DAR AL DAWA DEVELOPMENT &INV % 2.79% % 5.18% 9.03% 43.90% AL-BILAD MEDICAL SERVICES % 0.00% % -3.18% -4.46% -9.13% HAYAT PHARMACEUTICAL INDUSTRIES % -3.12% % JORDANIAN PHARMACEUTICAL MANUFACTURING % % % % % INTL CO FOR MEDICAL INVESTMENTS % 8.45% % % % HEALTH CARE MEDIAN % -7.56% % 17.39% UTILITIES % JORDANIAN ELECTRIC POWER % -5.76% % 1.39% 11.37% % IRBID DISTRICT ELECTRICITY % 2.06% % 2.72% 38.32% % INFORMATION TECHNOLOGY OFFTEC HOLDING GROUP PLC % 5.88% % 5.37% 6.70% 8.17% TELECOM SERVICES JORDAN TELECOM % -0.43% % 3.01% 6.06% % ENERGY JORDAN PETROLEUM REFINERY CO % 3.22% % 2.69% 18.96% % Market % 1.28% 6.27% Source: Bloomberg, Capital Investments 9

10 Research Contacts: Mohammad Al-Zou bi Financial Analyst Tel: Ext. 364 Mohammad.Alzoubi@Capitalinv.com Trading Contacts: Khaldoun Al-Zou bi Head of Brokerage Tel: Ext. 351 Khaldon.Zoubi@Capitalinv.com Customer Service: Sawsan Saleh Head of Customer Service Tel: Ext. 349 Sawsan.Saleh@Capitalinv.com Disclaimer The information and opinions contained in this document have been compiled in good faith from sources believed to be reliable. Capital Investments makes no warranty as to the accuracy and completeness of the information contained herein. All opinions and estimates included in this report constitute and reflect our independent judgment as of the date published on the report and are subject to change without notice. Capital Investments accepts no liability whatsoever for any loss of any kind arising out of the use of all or any part of this report. Capital Investments and its related companies may have performed or seek to perform any financial or advisory services for the company mentioned in this report. Capital Investments, its funds, or its employees may from time to time take positions or effect transactions in the securities issued by the company mentioned in this report.this document may not be reproduced in any form without the expressed written permission of Capital Investments. 10