IS Morning Report Thursday, July 05, 2018

Transcription

1 # Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day Change 1Mnth 3Mnth YTD 1Y Change Change Change Change (AEDm) BUY SELL NET ADX 4, % -0.5% -2.0% 4.4% 4.1% ADX DFM 2, % -6.0% -7.2% -15.1% -16.3% Local 44% 35% 9% TASI 8, % -1.9% 3.7% 14.1% 13.5% Foreign 56% 65% -9% KWSEI 1, % 4.3% 3.1% -0.7% 0.8% EGX 16, % 1.8% -6.3% 8.6% 22.3% Dow Jones 24, % -2.6% -0.4% -2.2% 12.5% S&P 500 2, % -1.2% 2.6% 1.5% 11.7% Nasdaq 7, % -1.4% 6.5% 8.7% 22.8% FTSE 100 7, % -1.5% 5.2% -1.5% 2.8% DAX 12, % -3.7% 0.1% -4.6% -1.1% CAC40 5, % -2.6% 0.8% 0.1% 2.7% Nikkei225 21, % -4.5% -0.6% -5.5% 7.1% HIS 27, % -10.0% -5.2% -6.4% 9.7% Institutional 84% 72% 12% Retail 16% 28% -12% DFM Local 73% 70% 3% Foreign 27% 30% -3% Institutional 54% 39% 15% Retail 46% 61% -15% Total Local 68% 64% 4% Foreign 32% 36% -4% # Upcoming Corporate Actions & Events Date Company Event 8-July ESHRAQ Board Meeting 8-Aug AJMANBANK Board Meeting 29-July ORDS Board Meeting 7-Aug KHCB Board Meeting 12-Aug ITHMR Board Meeting 13-Aug GFH Board Meeting # Key Stories UAE central bank withdraws 7 bln dirhams of surplus liquidity from market in May

2 Dubai races up global rankings for real estate transparency Dubai court upholds GFH claim against 'fraudster' David Haigh UAE'S ADNOC sets June Murban crude OSP at $77.20/BBL Emirates Global Aluminium to Supply Guinean Bauxite to Vedanta Etihad Airways may join Airline Alliances: Aero Telegraph Waha Capital plans to hire for new fund targeting US, Europe Dubai regulator probes Abraaj over alleged mismanagement Agility will be pursuing legal actions against non-renewal of contract Saudi Arabia's PIF takes 15.2 pct direct stake in ACWA Power Saudi plans first change in Asia crude oil price formula in decades, to use DME Oman Jadwa Investment to sell Saudi waste management firm Saudi Ministry entity to buy over 30% of Binladin Group: Maaal Bahrain-origin exports hit $474mln in May Egypt Public sector IPO Program to launch in 4Q 2018: Al-Mal Egypt's cotton exports up nearly 37 pct as crop quality improves Palm Hills agrees with El-Badr to develop commercial areas Lebanon's banking outlook rated stable on modest economic pickup and deposit inflows, Moody's says # Key Global Trends // Market Clues Asian stocks were shaky while major currencies barely budged in early trade on Thursday, as financial markets remained in a state o eve of a U.S. deadline to slap tariffs on Chinese imports. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 perc of the red in early trade. The index has lost 1.6 percent this week, during which it plumbed a nine-month low. Oil prices fell on Thursday after U.S. President Donald Trump sent a strident tweet demanding that OPEC cut prices for crude. Brent per barrel at 0250 GMT, down 54 cents, or 0.7 percent, from their last close.

3 China Says U.S. Tariffs to Backfire, Damaging World Economy. The U.S. imposition of tariffs on $34 billion of China s exports will not itself and the rest of the world, a government official said. That s because $20 billion of those goods are produced by foreign co companies, Gao Feng, China s Commerce Ministry spokesman, said at a regular press conference in Beijing Thursday. China won t bow will have to fight back if the U.S. goes ahead and imposes the tariffs, Gao said. Other nations understand China s situation, he said, a the legitimate rights of foreign companies doing business here. # UAE Stories The central bank of the United Arab Emirates withdrew 7 billion dirhams of surplus liquidity from the market during May, according to news agency WAM on Wednesday. The move comes after the central bank injected 16.1 billion dirhams into the money supply in Ap Dubai has retained its position as the MENA region s most transparent real estate market with a range of new government initiative the global rankings. The emirates moved up the rankings eight places to 40th out of 100 markets covered in 2018 and now sits on countries including China (33), Russia (38) and Mexico (39). A Dubai court ordered a former deputy chief executive of GFH Capital, the investment banking arm of Bahrain s GFH Financial Gro damages and other costs to GFH Financial on Wednesday, after he was convicted of fraud and embezzlement in DIFC Cou referred to the defendant David Haigh as a fraudster in his judgment issued on Wednesday afternoon, seen by The National. He gr full, plus legal costs and exchange rate fees as the monies to be paid are in different currencies. Abu Dhabi National Oil Company (ADNOC) set the June retroactive selling price for its benchmark Murban crude at $77.20 per bar Emirates Global Aluminium signed an agreement to supply bauxite from its mining project in Guinea to Vedanta Ltd. from E wholly-owned subsidiary, Guinea Alumina Corp., is building a bauxite mine and export facilities in Guinea at a cost of about $1.4 billio based company said in a statement. First bauxite exports from the project are expected during the second half of Etihad Chief Strategist Peter Baumgartner tells Aero Telegraph that joining a global alliance will be an interesting option for the airline already has 50 codes haring agreements but can do more with airlines and other companies along the value chain. Waha Capital plans to hire for new fund targeting US, Europe. Waha Capital plans to hire more people as it seeks to start new fun undervalued US and European equities. Dubai's financial regulator is investigating allegations of mismanagement at private equity firm Abraaj, which is on the verge of financial its use of investor money, two sources familiar with the matter said. The Dubai Financial Services Authority (DFSA) has interviewed th and other senior executives in the past few months as part of the probe, the sources said.

4 Agility Public Warehousing Company KSCP disclosed that it has received a notice from Public Authority of Industry expressing t contract number 157 related to South Amghara land. The land size is around 1 mln sqm and generates revenue around KD 6.5 mln ann legal action in this regard, as Agility believes has the right for this contract to be renewed. # GCC/ MENA Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), has taken a 15.2 percent direct stake in Riyadh-based ACW operator of power and water plants, the two announced in a joint statement on Wednesday. The PIF already owns a 9.8 percent subsidiary, Sanabil Direct Investments Company bringing its total shareholding in the company to 25 percent, the statement said. Saudi Aramco plans to change the formula used to price its long-term crude oil sales to Asia starting from October, marking the first official selling prices (OSP) since the mid-1980s. The new formula will be based on the average monthly prices of Oman crude f Mercantile Exchange (DME) and the average cash price for Dubai assessed by pricing agency S&P Global Platts, instead of the averag assessed by Platts, Aramco said. Saudi Arabia's Jadwa Investment, one of the country's largest privately owned investment banks, is working with Citigroup to sell its p waste management company. Jeddah-based Global Environmental Management Services (GEMS) collects, handles and disposes of pe and is also involved in wastewater treatment in the kingdom. Saudi Ministry Entity to Buy Over 30% of Binladin Group: Maaal. Company that belongs to Saudi Arabian Finance Ministry to acquire 3 Group in a reconstruction move, Maaal news website reported. About 15 members of the Bin Laden family will retain 63.8 percent majority shareholders, Maaal said, citing unidentified people familiar with the matter. The value of Bahrain-origin exports reached BD181 million ($474 million) during May versus BD189 million for the same month of th per cent decrease, said the Information & Government Authority (iga) in its foreign trade report. Egypt Public Sector IPO Program to Launch in 4Q 2018: Al-Mal. The government believes that the summer period isn t the best time stakes in public sector companies on the Egyptian exchange, the Cairo-based daily reports citing Planning Minister Hala El-Saeed. NO said the first offerings in July or August, with the first phase running through March Egyptian cotton production is on course to rebound with help from a devalued currency and bigger cultivation area, recovering fr world-famous crop since 2011 that was caused by a drop in quality. Cotton exports are expected to reach about 52,000 tonnes in the in August, up nearly 37 percent from the previous year, Palm Hills signed partnership agreement with El-Badr for Real Estate Investment to develop commercial areas on 420,000sqm in its pro the Cairo-based newspaper reports citing EL-Badr s chairman, Mamdouh Badr. Projects investments estimated at 7b Egyptian pounds. Moody's has rated Lebanon's banking system outlook as stable on expectations of modest economic growth and inflows of foreign depo the government. Domestic credit will grow slightly at two to three percent over the next 12 to 18 months as interest rates rise, the c on Tuesday. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

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