IS Morning Report Sunday, November 11, 2018

Transcription

1 # Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 5, % 0.2% 3.2% 14.3% 14.9% ADX DFM 2, % 1.7% -3.2% -16.1% -18.1% Local 36% 52% -15% TASI 7, % -2.0% -5.3% 7.2% 11.3% Foreign 64% 48% 15% BHSEASI 1, % -0.8% -2.7% -1.4% 3.6% Institutional 69% 60% 9% EGX 13, % 1.1% -13.8% -8.6% -4.3% Retail 31% 40% -9% Dow Jones 25, % 2.6% 2.7% 5.1% 11.0% DFM S&P 500 2, % 0.5% -1.8% 4.0% 7.7% Local 53% 63% -10% Nasdaq 7, % -1.2% -5.5% 7.3% 9.7% Foreign 47% 37% 10% FTSE 100 7, % 1.6% -7.3% -7.6% -4.4% Institutional 35% 32% 3% DAX 11, % 0.0% -7.2% -10.7% -12.2% Retail 65% 68% -3% CAC40 5, % 0.2% -5.7% -3.9% -5.1% Total Nikkei225 22, % -2.0% -0.2% -2.3% -1.9% Local 46% 58% -12% HIS 25, % -0.8% -9.7% -14.4% -12.1% Foreign 54% 42% 12% # Upcoming Corporate Actions & Events Date Company Event 11-Nov UNIKAI Board Meeting / Results 12-Nov SALAMA Board Meeting / Results 12-Nov UPP Board Meeting / Results 13-Nov CBI Board Meeting 13-Nov GFH Board Meeting / Results 13-Nov DSI Board Meeting / Results 13-Nov Tabreed Board Meeting / Results 13-Nov DAMAC Board Meeting / Results

2 13-Nov Air Arabia Board Meeting / Results 13-Nov ITHMR Board Meeting / Results 13-Nov GULFNAV Board Meeting / Results 14-Nov Dana Gas Board Meeting / Results # KEY STORIES Dubai Oct. Whole Economy PMI 52.5 vs 54.4 in Sept. Emirates NBD applies for Denizbank takeover: Turkey's competition authority Prince Khaled says IPO for KBW Investments a possibility' Adnoc signs long-term LPG sales deal AjmanBank extends capital increase subscription period Khaleeji Commercial Bank posted Q3 net profit attributable to shareholders 0.34 mln dinars vs 1.1 mln dinars year ago Amlak Finance posted Q3 net loss attributable to shareholders 64 mln dirhams vs profit of 11.8 mln dirhams year ago Marka has scheduled general assembly on 22 Nov, with agenda of capital structure changes Agility posted Q3 net profit attributable to shareholders 20 mln dinars vs 17.8 mln dinars year ago Premature to Talk of 2019 Oil Output Cut: Saudi Arabia's Falih Saudi Arabia, Iraq Agree to Coordinate Ahead of OPEC+ Talks Softbank's Saudi-backed Vision Fund to raise $4bln in debt Saudi Aramco, China's Hengli Petchem agree 130,000 bpd crude supply deal for 2019 Emaar Economic Third Quarter Loss 150 Mln Riyals Saudi's Bupa Arabia posted Q3 net profit of shareholders capital investment 19.6 mln riyals vs 13 mln riyals year ago Saudi Marketing Company posted Q3 net profit after zakat and tax 3.2 mln riyals vs 7.2 mln riyals year ago Saudi Paper Manufacturing posted Q3 net loss after zakat and tax 37.3 mln riyals vs loss of 3.1 mln riyals year ago Saudi's Fawaz Abdulaziz Alhokair posted Q2 net profit after tax and zakat 10 mln riyals vs 6.8 mln riyals year ago Saudi Cable posted Q3 net loss after zakat and tax 15.7 mln riyals vs loss of 34.5 mln riyals year ago Kuwait Real Estate posted Q3 net profit attributable to shareholders 1.1 mln dinars vs 1.4 mln dinars year ago S&P says Oman 'bb/b' ratings affirmed, outlook stable Egypt's annual urban consumer price inflation accelerates to 17.7% in Oct Egypt to auction one-year euro-denominated T-bill worth 675 mln - central bank

3 Egypt's Suez Canal revenues at $4.8 bln for nine months 2018, 10.3 pct up from same period in 2017 Development And Engineering Consultants posted Q3 standalone net profit EGP 4.9 mln vs EGP 25.1 mln year ago MB For Engineering and Contracting posted nine-month consolidated net profit after tax EGP 5.2 mln vs EGP 7.9 mln year ago Abu Dhabi Islamic Bank Egypt posted nine-month consolidated net profit after tax of EGP mln vs EGP mln year ago Egypt's Global Telecom posted Q3 consolidated net loss attributable to shareholders $379 mln vs loss of $9.1 mln year ago # Key Global Trends/ Market Clues The Federal Reserve opted not to change interest rates Thursday but hinted that rates are likely to rise in December. The U.S. interest rate is currently in a range of 2 to 2.25 percent, but the Fed has signaled it wants to gradually raise rates in the coming months to 3 percent or slightly higher. A rate hike is widely expected at the Fed s next meeting on December 19, and the Fed has indicated it is likely to do three more increases next year. Stocks around the globe suffered their biggest drop in two weeks on Friday as weak Chinese economic data sapped demand for equities while oil prices weakened again on Friday. U.S. stocks were broadly lower, with energy shares.spny falling more than 1.0 percent as benchmark Brent crude oil saw a six-month low and U.S. crude fell below $60 for the first time since March. Data from China added to the downward pressure, showing factory-gate inflation slowed for the fourth month in October on cooling domestic demand and manufacturing activity. MSCI's gauge of stocks across the globe shed 1.08 percent. Oil prices fell nearly 1 percent on Friday as global supply increased and investors worried demand growth could slow, pressuring U.S. crude to its longest stretch of daily declines since Crude futures benchmarks have slid about 20 percent or more since peaking in early October. Benchmark Brent crude futures fell 47 cents, or 0.7 percent, to settle at $70.18 a barrel. Opec, which meets on today for its Joint Monitoring Ministerial Committee meeting in Abu Dhabi, will look to reinvent itself as it finds itself outpaced by surging US oil supply and a tighter spare capacity environment. Data from the US Energy Information Administration showed US supply had swung up to 11.6 million barrels per day last week, eclipsing Saudi Arabia s 10.7 million bpd and Russia s own 11.4 million bpd. Moody s Investors Service affirmed the Government of Jordan s long-term issuer and senior unsecured ratings at B1, and maintained a stable outlook on expectations that public debt will decline. # UAE Stories Dubai Oct. Whole Economy PMI 52.5 vs 54.4 in Sept. Year ago Lowest reading since March Output falls to 56.5 vs 59.9 in Sept. Lowest reading since Dec New work falls vs prior month. Lowest reading since April Emirates NBD has applied to Turkey's competition authority to take over Turkish lender Denizbank, a posting on the competition authority's website showed on Thursday. In May, Emirates NBD agreed to buy Denizbank from Russia's state-owned Sberbank SBER.MM for $3.2 billion to help establish itself as a leading bank in the Middle East, North Africa and Turkey.

4 KBW Investments, the holding company that counts Raimondi Cranes and other construction-related entities in its portfolio, is considering an initial public offering, according to its founder and chairman Prince Khaled bin Alwaleed bin Talal. Abu Dhabi National Oil Company (Adnoc) said on Saturday it had signed a 10-year agreement with Wanhua Chemical Group under which the Chinese company would purchase 1 million metric tonnes of liquefied petroleum gas (LPG) annually. Adnoc produces up to 10,500,000 metric tonnes per year of LPG which is sold both locally and internationally, it said in a statement. Ajman Bank with approval of SCA has extended capital increase subscription period by four working days to end on close of business working day of 13 November 2018.Accordingly, the allotment date will be on 18th November and refund is no later than 21st Novemeber. Khaleeji Commercial Bank posted Q3 net profit attributable to shareholders 0.34 mln dinars vs 1.1 mln dinars year ago. Amlak Finance posted Q3 net loss attributable to shareholders 64 mln dirhams vs profit of 11.8 mln dirhams year ago. Marka has scheduled a general assembly on 22 Nov, with agenda of capital restructuring. Marka initially plans to reduce its capital by AED450m to AED50m (down from AED500m) to adjust for the losses of AED450m. Subsequently, it aims to increase the capital by AED250m through issuance of new shares. The company will also consider and discuss independent experts report on acquisitions and divestments prior to May 17. Agility posted Q3 net profit attributable to shareholders 20 mln dinars vs 17.8 mln dinars year ago. # GCC/ MENA Premature to Talk of 2019 Oil Output Cut: Saudi Arabia's Falih. t s too premature to discuss possible OPEC+ oil output cuts, says Saudi Arabia s Energy Minister Khalid Al-Falih. Al-Falih spoke in Abu Dhabi on eve of meeting between OPEC and allies. NOTE: Al-Falih agreed in a meeting in Baghdad earlier Saturday on joint coordination with Iraq to achieve more stability in the oil market, Iraqi Oil Ministry spokesman Asim Jihad. audi Arabia s Energy Minister Khalid Al-Falih agreed in a meeting in Baghdad on joint coordination with Iraq to achieve more stability in the oil market, Iraqi Oil Ministry spokesman Asim Jihad said by phone. Al-Falih flew into Baghdad for a meeting with Iraqi Prime Minister Adel Abdul Mahdi ahead of talks between OPEC and its allies in Abu Dhabi Sunday to discuss whether to cut production amid a drop in crude prices. SoftBank's Vision Fund is raising $4 billion in debt to help finance acquisitions and has hired Goldman Sachs and Mizuho to work on the deal. China's private chemical group Hengli Petrochemical said it has entered an annual crude purchase deal with Saudi Aramco for 2019 supplies of 130,000 barrels per day, which marks the top OPEC producer's second major marketing alliance with a private Chinese refiner. Emaar Economic reported loss for the third quarter of 150 million riyals. 3Q revenue 112 million riyals. 3Q loss compares with profit of 27 million riyals year ago; revenue compares with 269 million. Cites decrease in other income and share of income from a joint venture; increase in depreciation, marketing and administrative expenses. Says year-ago quarter recorded higher industrial land sales and progress on industrial land projects. Saudi's Bupa Arabia posted Q3 net profit of shareholders capital investment 19.6 mln riyals vs 13 mln riyals year ago. Saudi Marketing Company posted Q3 net profit after zakat and tax 3.2 mln riyals vs 7.2 mln riyals year ago.

5 Saudi Paper Manufacturing posted Q3 net loss after zakat and tax 37.3 mln riyals vs loss of 3.1 mln riyals year ago. Saudi's Fawaz Abdulaziz Alhokair posted Q2 net profit after tax and zakat 10 mln riyals vs 6.8 mln riyals year ago. Saudi Cable posted Q3 net loss after zakat and tax 15.7 mln riyals vs loss of 34.5 mln riyals year ago. Kuwait Real Estate posted Q3 net profit attributable to shareholders 1.1 mln dinars vs 1.4 mln dinars year ago. S&P says Oman 'bb/b' ratings affirmed, outlook stable. Egypt's annual urban consumer price inflation accelerated to 17.7 percent in October from 16.0 percent in September, the official statistics agency CAPMAS said on Saturday. Egypt has hiked fuel, electricity and transportation prices over the past few months to help meet the terms of a $12 billion IMF loan programme it signed in late 2016 that includes deep cuts to energy subsidies and tax hikes. Egypt will auction a one-year Euro-denominated treasury bill worth 675 million euros on November 12, the central bank said on Thursday. The auction settlement date will be Nov. 13 with a minimum bid of 100,000 face value. Egypt's Suez Canal revenues at $4.8 bln for nine months 2018, 10.3 pct up from same period in Development And Engineering Consultants posted Q3 standalone net profit EGP 4.9 mln vs EGP 25.1 mln year ago. MB For Engineering and Contracting posted nine-month consolidated net profit after tax EGP 5.2 mln vs EGP 7.9 mln year ago. Abu Dhabi Islamic Bank Egypt posted nine-month consolidated net profit after tax of EGP mln vs EGP mln year ago. Egypt's Global Telecom posted Q3 consolidated net loss attributable to shareholders $379 mln vs loss of $9.1 mln year ago. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) Disclaimer This report was prepared by Integrated Securities ( IS ) in and for the United Arab Emirates ( U.A.E. ). IS 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. IS 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 IS 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 IS 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 IS 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

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