IS Morning Report Wednesday, September 05, 2018

Transcription

1 # Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 4, % 3.7% 8.0% 13.3% 11.3% DFM 2, % -4.7% -6.8% -15.8% -21.7% ADX Local 58% 45% 13% TASI 7, % -3.3% -5.2% 10.3% 9.8% Foreign 42% 55% -13% BHSEASI 1, % -1.1% 5.6% 0.5% 2.8% Institutional 72% 57% 15% EGX 15, % 1.2% -0.6% 6.0% 18.7% Dow Jones 25, % 1.9% 4.6% 5.0% 19.3% S&P 500 2, % 2.0% 5.4% 8.3% 17.9% Nasdaq 8, % 3.6% 5.9% 17.2% 26.9% FTSE 100 7, % -2.6% -3.0% -3.0% 1.2% DAX 12, % -3.2% -4.5% -5.5% 0.7% CAC40 5, % -2.5% -2.2% 0.6% 5.0% Nikkei225 22, % 0.5% 0.4% -0.6% 16.7% HIS 27, % -0.6% -11.5% -8.0% -0.8% Retail 28% 43% -15% DFM Local 58% 58% 1% Foreign 42% 42% -1% Institutional 41% 39% 3% Retail 59% 61% -3% Total Local 58% 50% 8% Foreign 42% 50% -8% # Upcoming Corporate Actions & Events Date Company Event 5-Sep UPP Board Meeting 6-Sep ADCB Board Meeting 10-Sep CBI Board Meeting 12-Sep Emaar Dev Board Meeting 13-Sep SHUAA General Assembly 26-Sep MARKA Board Meeting

2 # KEY STORIES UAE leads in global halal tourism with $17.6b spending VAT refund for UAE tourists to start in November UAE mobile phone sales market slumps in Q2 Emaar unit launches six-screen cineplex in Dubai DU shareholders approve 13 fils cash dividend Emirates inks code-share deal with Jetstar Pacific Emirates cancels flights as typhoon batters Japan MSCI to launch tradeable index with Saudi exchange in Q4 Saudi Arabia private sector activity improves Aramco plans to ship first crude oil to Malaysia JV refinery in Oct Saudi s PIF to sign US$11bn loan next week Saudi Aramco says awards Baker Hughes services contract for Marjan field Bahrain Is Said to Raise $500 Million in Private Bond Placement Egypt cancels 3 and 7-year treasury bond auction Egypt signs oil-hedging deals with two banks Egypt targets narrower budget deficit of 8.4 pct in 2018/19 - minister # Key Global Trends/ Market Clues Stock markets in Asia tracked their global peers lower while the safe-haven dollar hovered near a two-week high on Wednesday as heightened worries over international trade conflicts curbed investor appetite for riskier assets. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.5 percent. Oil prices fell on Wednesday, partly reversing a strong jump from the previous day, as the impact of a tropical storm on U.S. Gulf coast production was not as strong as initially expected. U.S. West Texas Intermediate crude futures were at $69.47 per barrel at 0139 GMT, down 40 cents, or 0.6 percent, from their last settlement. Saudi Arabia wants oil to stay between $70 and $80 a barrel for now as the world's biggest crude exporter strikes a balance between maximizing revenue and keeping a lid on prices until U.S. congressional elections, OPEC and industry sources said. The prospect of higher Cushing inventories, a less-destructive storm and wider financial market turmoil is limiting gains in oil after prices rose last week on concern that U.S. sanctions would curb Iran s exports. While the OPEC member has pledged to keep shipping crude despite the American measures that go into effect in early November, its sales are shrinking. The Organization of Petroleum Exporting Countries, meanwhile, is pumping more.

3 # UAE Stories The UAE ranks highest worldwide in halal-based tourism spending, with an estimated $17.6 billion (Dh64.6 billion) spent by residents outside the country during Saudi Arabia and Kuwait ranked second and third, respectively, according to data released by Dubai Chamber of Commerce and Industry. The UAE's Federal Tax Authority has appointed Planet as its exclusive tax refund operator for the Tourist Refund Scheme which will be rolled out in November The GCC mobile phone market experienced a decline in shipments in the second quarter of 2018, according to the latest figures announced by International Data Corporation (IDC). The global technology research and consulting firm said overall shipments to the region fell 9.9 percent year on year and 2.1 percent compared to the previous quarter to total 5.8 million units. Reel Cinemas, a cine brand under Emaar Entertainment, the leisure and entertainment arm of UAE developer Emaar Properties, has now opened its brand-new six-screen cineplex at The Springs Souk, a vibrant community centre within Emirates Living in Dubai. Emirates Integrated Telecommunications Company (DU) said on Tuesday its shareholders have approved the distribution of interim cash dividend of 13 fils per share in the first half of 2018 at the recently held general meeting. Emirates has entered a new code-share with Ho Chi Minh-based Jetstar Pacific and is expanding an existing partnership with the Jetstar Group. This allows Emirates passengers to enjoy connectivity on domestic flights within Vietnam, in addition to flights connecting Vietnam to Singapore, Thailand as well as Australia. Emirates said on Tuesday that all flights in and out of Osaka Kansai International Airport have been cancelled until Thursday at the earliest after the strongest typhoon to hit Japan in 25 years made landfall.

4 # GCC/ MENA MSCI said on Tuesday it had signed an agreement with the Saudi Stock Exchange Co (Tadawul) to launch a tradeable index later this year in a move that could spur the growth of derivatives and exchange-traded funds. Tadawul said in a separate statement that it would introduce exchange-traded derivatives in the first half of Saudi Arabia s non-oil private sector activity improved last month as the headline PMI rose to 55.1 in August from 54.9 in July, on stronger output and new orders growth. However, employment growth was modest, and the slowest in three months, while average selling prices declined for the second month in a row, as firms offered promotions to stimulate demand. Saudi Aramco plans to deliver the first crude oil cargo to its joint-refinery project with Petronas in Malaysia in October as the companies prepare for trial runs at the new plant, several sources with knowledge of the matter said on Tuesday. The project, Refinery and Petrochemical Integrated Development (RAPID), is a $27 billion complex located between the Malacca Strait and the South China Sea, conduits for Middle East oil and gas bound for China, Japan and South Korea. Saudi Arabia s sovereign wealth fund, Public Investment Fund (PIF), is set to sign a US$11bn syndicated loan next week, according to bankers close to the deal, which will help to fund the kingdom's economic transformation plans. The deal will be the first commercial loan for PIF, which is tasked with helping to deliver Saudi Arabia's Vision 2030 reform plan, as the country reduces its reliance on oil exports. Saudi Aramco has awarded Baker Hughes an integrated services contract for its Marjan oilfield, the Saudi state oil giant said in statement on Tuesday. The oilfield is one of the three major offshore expansion projects in Saudi Arabia, Aramco said, adding that Baker Hughes will provide drilling services, voiled tubing services and drilling fluids engineering services in Marjan. Bahrain, which is talks with its Gulf allies for an aid program, raised $500 million from a private placement of bonds, according to people familiar with the matter. The notes were priced at 330 basis points above three-year midswaps, the people said, asking not to be identified because the details are private. Government officials didn t return calls outside of business hours on Tuesday. Bahrain s economy is the smallest among the six members of the oil-rich Gulf Cooperation Council. But investors fear that without aid to help bolster low foreign-exchange reserves and cut ballooning debt, the tiny kingdom will be forced to abandon the dinar peg to the dollar, triggering speculation that its neighbors would follow suit. Bahrain officials have repeatedly said they have enough reserves to maintain the peg. Egypt s finance ministry said on Tuesday it cancelled three and seven-year treasury bond sales, an auction that had had a total value of 3.5 billion Egyptian pounds (Dh716 million). The tender was cancelled on Monday because the interest rates required were not within the logical limits, although it was covered 1.6 times, the ministry said in a statement. Egypt has signed contracts with two global banks to hedge against fluctuating global oil prices, as per senior government official told Reuters on Tuesday. Egypt has estimated an average oil price of $67 per barrel in its fullyear budget while the current price of Brent crude is $79. Egypt is targeting a budget deficit of 8.4 percent of GDP for the fiscal year that ends in June, compared with 9.8 percent in the previous year, Finance Minister Mohamed Maait told a news conference on Tuesday. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

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