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 March 26 th, 2017

2 Index Performance P/E P/B Div Yld Source: Bloomberg , Bloomberg 0 Market Breadth ASE General Index JOD VALUE TRADED (LHS) Gainers Losers Unchanged Last Week YTD 0.0% 3.1% Index (RHS) Sector Value Volume % Change 2,300 2,250 2,200 2,150 2,100 2,050 2,000 1,950 1,900 1,850 JD # of share Last week YTD Financial 21,420,059 17,986, % 5.00% Services 8,222,509 8,718, % 0.15% Industrial 13,294,348 6,397, % -0.82% 20.37x 1.28x 3.60% Avg Daily Trading Activity Last week YTD Value (JOD Million) Volume (Million Shares) Top Gainers Price % Chg UNION TOBACCO % NOOR CAPITAL % ALENTKAEYA COMPANY % Top Losers Price % Chg JOR CLOTHING CO % J D PROPERTIES % RESOURCES INVEST % Most Active Price % Chg SURA % UNION INV % JOR STEEL % Top Value Traded Price % Chg EQBAL INV. CO % UNION INV % ARAB BANK % 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% Source: SDC, CBJ JOD Interest Rate Summary 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 5-Year Issues Government 10-Year Issues Maturity Issuance Date Interest Rate Two years 11/12/ % Three years 26/01/ % Five years 08/03/ % Seven years 16/01/ % Ten years 23/01/ % Source: CBJ Jordan EuroBonds Yields Government 3-Year Issues Government 7-Year Issues Source: Bloomberg 2

3 Economic News IMF First Review Report Expected in 2 Months Euromoney Jordan Conference Forecasts Difficult Economic Year Remittances Pick Up in First Two Months of 2017 Jordan Hosts 657,000 Registered Syrian Refugees GAM Signs MoU on Amman Metro Project with Chinese Company Final 2016 Budget Outcomes Indicate Slowdown; Lower Income, Deficit, Growth Libya Owes JOD300m to Jordanian Hospitals IMF First Review Report Expected in 2 Months The report of the first review of the Jordanian economy under a $700-million loan Extended Fund Facility (EFF) programme with the International Monetary Fund (IMF) is expected to be issued late May or early June, according to a government official. The visit for the first review was done late The report was not issued because Jordan was two months late in approving the fiscal measures, Minister of Finance Omar Malhas told The Jordan Times recently. The IMF mission came back two weeks ago to check what was done and to update the macroeconomic framework. So yes; we are still working on the first report, Malhas said. Jordan is expected to receive $70 million after the first review report is completed and endorsed by the IMF. (The Jordan Times) Euromoney Jordan Conference Forecasts Difficult Economic Year The government on Wednesday announced that 2017 would be a difficult year for Jordan s economy, and that economic growth is forecast between 2.2% and 2.3%. The ongoing border closure with Syria and Iraq, the regional crisis and the lack of progress in addressing these issues continue to hinder the economy, Minister of Finance Omar Malhas said during the 2017 Euromoney Jordan Conference titled Meeting the Financial Challenge was not an easy year for Jordan, and data estimate economic growth at around 2% at the end of 2016, he said. The minister stated that Jordan needs a growth rate that is double the forecast of this year, in order to address the unemployment rate, which exceeds 15%. Highlighting the inflation of the public sector, the minister stressed the key role of the private sector in stimulating the economy. He said the government is working on several measures and projects to support the private sector and boost economic growth engine, but he noted that this role should be led by the private sector itself. (The Jordan Times) Remittances Pick Up in First Two Months of 2017 Expatriates remittances during the first two months of 2017 increased by 3.9% to USD560.1 million, compared to USD539 million in the same period of the previous year, Central Bank of Jordan (CBJ) data showed on Wednesday. Remittances in February this year alone stood at USD263.8 million, marking a 3.5% raise, when compared to last year, which registered USD254.7 million, CBJ said as reported by the Jordan News Agency, Petra. Tourism revenues and expatriates remittances stood at $7.8 billion in 2016, witnessing an increase in the last quarter, according to CBJ. The figures showed that the remittances stood at USD3.7 billion, recording a 2.4% drop compared to (The Jordan Times) 3

4 Economic News (Cont d) Jordan Hosts 657,000 Registered Syrian Refugees Out of some 4.9 million Syrians registered with the UNHCR in the region by mid March, around 657,000 are Syrian refugees hosted in Jordan, according to the Syria Regional Refugee Response's Inter-Agency Information Sharing Portal posted on UNHCR s website. The total number of Syrian refugees registered with UNHCR until mid March included 2 million in Egypt, Iraq, Jordan and Lebanon, 2.9 million in Turkey and more than 29,000 in North Africa, according to UNHCR data. Of the total, only 490,658, or 10 per cent, live in camps, while the rest live in urban, peri-urban and rural areas. In Jordan, the data showed that 657,000 Syrian refugees are registered with the agency. Around 177,070 are in Amman, 158,585 in Mafraq, 108,826 in Zarqa and 135,535 in Irbid. In remarks to The Jordan Times, Minister of State for Media Affairs Mohammad Momani said there are around 1.3 million Syrian refugees in Jordan, representing almost 20 per cent of the country's population. (The Jordan Times) GAM Signs MoU on Amman Metro Project with Chinese Company According to insider sources, the Greater Amman Municipality (GAM) Board on Wednesday, presided by Dr Yousef Shawarbeh, signed a memo of understanding with a Chinese company on the Amman Metro Project to conduct all preliminary research, prospecting, and topographic research. (Al Ghad Newspaper) Final 2016 Budget Outcomes Indicate Slowdown; Lower Income, Deficit, Growth The final 2016 Budget Outcome report shows real growth in GDP has fallen short from the 3 per cent forecast at the beginning of the year, due to a negative variance in public income, caused by economic slowdown. On the flipside, the official numbers show less spending, as well as a smaller deficit. According to the Ministry of Finance s report, actual deficit by end of 2016 stood at JOD878.9 million, JOD27 million lower than the JOD906 million forecast. Additionally, another positive variance was cited under the expenditure section, from JOD7.948 billion estimated to JOD7.495 billion; approximately 6.4 per cent less than predicted. Likewise, inbound foreign aid and grants grew by JOD21.9, from an estimate of JOD814 million to JOD835.9 million, as opposed to an 8.6 per cent drop in public domestic income, from JOD6.775 billion to JOD6.234 billion, approximately JOD541.5 million less. On the other hand, capital expenditure has also fallen short from the estimated forecast of JOD1.31 billion to JOD1.03 billion, approximately JOD281 million less. (Al Ghad Newspaper) Libya Owes JOD300m to Jordanian Hospitals The Private Hospitals Association met with Jordanian and Libyan officials in Amman on Thursday, to negotiate the growing 6-year debt owed by the Libyan government to private Jordanian hospitals, estimated at around JOD300, and the means by which it will be paid. The Association, according to their press release, called for hospitals to prepare and submit all accrued bills payable by the Libyan government over the last 6 years, to consolidate a clear financial record of the claims. (Al Ghad Newspaper) 4

5 Economic News (Cont d) Gov t Ready with Measures to Facilitate Doing Business The Council of Ministers on Sunday endorsed the first set of measures as part of an action plan aimed at easing doing business in Jordan and thus stimulating the national economy, the Jordan News Agency, Petra, reported. Planning and International cooperation Minister Imad Fakhoury said his ministry and the ministerial economic development committee would oversee the execution of the decisions during the upcoming months with the aim of stimulating the national economy's growth in accordance with Jordan Vision 2025 and the government's action plan. The Cabinet instructed ministries and concerned authorities to implement the measures immediately, warning of consequences in case they fail to do their part of the job. The first set includes decisions aimed at improving the business environment, through amending regulations governing the issuance of construction licences, starting trade activity, registering property, borrowing, insolvency and bankruptcy-related procedures, investor protection, tax collection and execution of contracts, Fakhoury said. He said there would be more decisions connected to the Royal Committee for Reforming the Judiciary and Enhancing the Rule of Law related to the execution of contracts and litigation proceedings pertaining to business and investment activities. (The Jordan Times) Central Bank Launches Initiative to Stimulate Economic Growth The Central Bank of Jordan (CBJ) on Sunday launched a set of economic initiatives to stimulate growth and job generation. The initiatives included establishing investment companies for banks with a capital of JD125 million to invest in medium-sized enterprises, the Jordan News Agency, Petra, reported. During a ceremony attended by Prime Minister Hani Mulki, the CBJ also launched a program to support the national exports credit, to which JD100 million has been allocated. CBJ Governor Ziad Fariz said the initiatives came as part of the banking system s response to the recommendations of the Economic Policies Council (EPC), launched by His Majesty King Abdullah and later endorsed and adopted by the Cabinet. One of the initiatives aims at supporting exports through a JD100 million loan from the CBJ to the Jordan Loan Guarantee Corporation to establish a fund, the returns from which would enable the company to guarantee Jordanian exports credit and, subsequently, boost the sector in destinations abroad, especially newly-opened markets, according to Fariz. (The Jordan Times) Jordan-Saudi Economic Talks by End of March Exclusive sources informed AlGhad that preparations are underway for the Saudi King s visit to Jordan, entailing the launch of the permanent Joint Collaboration Bureau s office in Amman and the convention of the Jordan-Saudi Economic Forum, which will include talks on accelerating and advancing economic ventures and the reinforcement of bilateral ties. (Al Ghad Newspaper) Renewable Energy Cuts Industrial Power Bills by 37% The overall industrial power bill dropped 37.4 per cent in January, 2017, according to data by the National Electric Power Company (NEPCO), and 18 per cent over the year before, through 2016, due to the incremental spread of renewable and green energy technologies. Chairman of the East Amman Investors Associations and Amman Industry Chamber member, Eyad Abu Haltam, explained to AlGhad that there is an encompassing shift in power sourcing throughout the industrial sectors in Jordan, particularly towards solar energy, which is the main reason behind the drop in the sector s total energy bill. (Al Ghad Newspaper) 5

6 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 NM ARAB BANK PLC % NM HOUSING BANK FOR TRADE AND F % NM JORDAN ISLAMIC BANK % NM BANK OF JORDAN % NM JORDAN KUWAIT BANK % NM CAIRO AMMAN BANK % NM ARAB JORDAN INVESTMENT BANK % NM BANK AL ETIHAD % NM JORDAN AHLI BANK % NM CAPITAL BANK OF JORDAN % NM JORDAN COMMERCIAL BANK % NM INVEST BANK CO % NM ARAB BANKING CORP/JORDAN % NM JORDAN DUBAI ISLAMIC BANK % NM FINANCIALS-INSURANCE Median NM AL-NISR AL-ARABI INSURANCE % MIDDLE EAST INSURANCE % ISLAMIC INSURANCE CO % JORDAN INTL INSURANCE % FINANCIALS-DIVERSIFIED FINANCIALS Median UNION INVESTMENT CORP % FIRST FINANCE CORP % AL SANABEL INTERNATIONAL CO % ARAB EAST FOR REAL ESTATE IN % FUTURE ARAB INVESTMENT CO % AL AMAL FINANCIAL INVESTMENT % JORDANIAN EXPATRIATES INV HL % ISRAA ISLAMIC FINANCIAL % AL-AMIN FOR INVESTMENT % NATL PORTFOLIO SECURITIES % JORDAN EMIRATES DIMENSIONS % FINANCIALS-REAL ESTATE Median UNION LAND DEVELOPMENT CORP % JORDAN MASAKEN FOR LAND & IN % AL-TAJAMOUAT FOR TOURISTIC P % DEERA INVESTMENT & REAL ESTA % ARAB EAST INVESTMENT % JORDAN DECAPOLIS PROPERTIES % PROFESSIONAL FOR REAL ESTAT %

7 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 (%) REAL ESTATE DEVELOPMENT % JORDANIAN REAL ESTATE FOR DE % METHAQ REAL ESTATE INVESTMEN % BINDAR TRADING & INVESTMENT % ARAB FINANCIAL INVEST CO % AMAD INVESTMENT & REAL ESTAT % SPECIALIZED INVESTMENT COMPO % AD-DULAYL INDUSTRIAL PARK CO % UNITED FINANCIAL INVESTMENTS % CONTEMPORARY FOR HOUSING PRO % AMMOUN INTERNATIONAL FOR INV % EMMAR INVESTMENTS & REAL EST % COMPREHENSIVE LAND DEVELOPME % HIGH PERFORMANCE REAL ESTAT % AL-RAKAEZ INVESTMENT CO % INJAZ FOR DEVELOPMENT AND PR % FINANCIALS MEDIAN NM INDUSTRIALS AFAQ FOR ENERGY CO PLC % ALIA THE ROYAL JORDANIAN AIR % JORDAN NATL SHIPPING LINES % UNITED CABLE INDUSTRIES CO % ARABIAN AVIATION INVESTMENT % RUM TOURIST TRANSPORTATION C % MASAFAT FOR SPECIALIZED TRAN % BARTER CO FOR INVESTMENT & T % SALAM INTL TRANSPORT & TRAD % NATIONAL CABLE & WIRE MANUF % INDUSTRIALS MEDIAN MATERIALS ARAB POTASH/THE % JORDAN PHOSPHATE MINES % LAFARGE JORDAN CEMENT % UNITED IRON & STEEL MANUFACT % READY MIX CONCRETE & CONSTR % ARAB PESTICIDE AND VETERINAR % JORDAN STEEL % ARAB ALUMINIUM INDUSTRY % ARABIAN STEEL PIPES % NATIONAL CHLORINE % MATERIALS MEDIAN

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 (%) CONSUMER DISCRETIONARY JORDAN DUTY FREE SHOP % ARAB INTERNATIONAL CO FOR IN % ZARA INVESTMENTS % AL-ISRA FOR EDUCATION & INV % JORDAN WORSTED MILLS/THE % AL-DAWLIYA HOTELS & MALLS % ARAB INTERNATIONAL HOTELS % ZARKA EDUCATION & INVESTMENT % ITTIHAD SCHOOLS COMPANY % JORDAN PRESS FOUNDATI/AL-RAI % AL-TAJAMOUAT FOR CATERING HS % EL-ZAY READY WEAR MANUF CO % WINTER VALLEY TOURISM INVEST % CONSUMER DISCRETIONARY MEDIAN CONSUMER STAPLES AL EQBAL CO FOR INVESTMENT P % SINIORA FOOD INDUSTRIES CO % UNION TOBACCO & CIGARETTE % INDUSTRIAL COMMERCIAL & AGRI % UNIVERSAL MODERN INDUSTRIES % CONSUMER STAPLES MEDIAN HEALTH CARE DAR AL DAWA DEVELOPMENT &INV % AL-BILAD MEDICAL SERVICES % HAYAT PHARMACEUTICAL INDUSTR % JORDANIAN PHARMACEUTICAL MAN % INTL CO FOR MEDICAL INVEST % HEALTH CARE MEDIAN UTILITIES JORDANIAN ELECTRIC POWER % IRBID DISTRICT ELECTRICITY % INFORMATION TECHNOLOGY OFFTEC HOLDING GROUP PLC % TELECOM SERVICES JORDAN TELECOM % ENERGY JORDAN PETROLEUM REFINERY CO % Market Source: Bloomberg, Capital Investments 8

9 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. 9