IS Morning Report Monday, November 05, 2018

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1 # Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 4, % -1.7% 2.4% 11.9% 10.5% ADX DFM 2, % 0.1% -6.1% -17.1% -22.0% Local 57% 72% -15% TASI 7, % -1.9% -4.8% 8.6% 12.4% Foreign 43% 28% 15% BHSEASI 1, % -0.7% -2.8% -1.2% 2.9% Institutional 46% 46% 0% EGX 13, % -6.6% -16.3% -12.3% -7.1% Retail 54% 54% 0% Dow Jones 25, % -4.4% -0.8% 2.2% 7.4% DFM S&P 500 2, % -5.6% -4.1% 1.8% 5.2% Local 54% 51% 3% Nasdaq 7, % -5.5% -5.8% 6.6% 8.8% Foreign 46% 49% -3% FTSE 100 7, % -3.1% -7.4% -7.7% -6.2% Institutional 36% 32% 5% DAX 11, % -4.9% -8.7% -10.8% -14.5% Retail 64% 68% -5% CAC40 5, % -4.8% -6.9% -4.0% -7.5% Total Nikkei225 21, % -7.7% -2.5% -3.5% -2.6% Local 55% 57% -2% HIS 25, % -3.0% -6.8% -13.8% -9.9% Foreign 45% 43% 2% # Upcoming Corporate Actions & Events Date Company Event 5-Nov DXBE Board Meeting 5-Nov SHUAA Capital Board Meeting 6-Nov AMLAK Board Meeting 6-Nov ARTC Board Meeting 6-Nov AMANAT Board Meeting 07-Nov KHCB Board Meeting 07-Nov WAHA Board Meeting 11-Nov GFH Board Meeting

2 13-Nov Air Arabia Board Meeting 13-Nov ITHMR Board Meeting # KEY STORIES Abu Dhabi approves ADNOC's $132bn five-year growth plan U.A.E. Oct. Whole Economy PMI 55 vs 55.3 in Sept. Adnoc announces new discoveries in oil and gas Emirates seeks Rolls-Royce A380 engine deal, nothing finalised KAPP approves German, Kuwaiti consortium for wastewater project Emaar Malls posts 10 per cent increase in third quarter net profit to Dh537 million Eshraq reported net income for the third quarter of AED13.5m vs. AED685,000 dirhams a year ago Depa says nine-month net profit plunged 72% to Dh36.2 million RAK Ceramics net profit declined by 14% quarter on quarter to AED 47.4 million, due to increases in costs Emirates Investment Bank posted nine-month net profit 32.8 mln dirhams vs 44.4 mln dirhams year ago Insurance House posted nine-month net profit 8.4 mln dirhams vs 3.9 mln dirhams year ago Al Khaleej Investment posted nine-month consolidated net profit 4.5 mln dirhams vs 26 mln dirhams year ago National General Insurance posted Q3 profit 22 mln dirhams vs 8.6 mln dirhams year ago Emirates Investment Bank posted nine-month net profit 32.8 mln dirhams vs 44.4 mln dirhams year ago Emirates Driving posted nine-month consolidated net profit 80.8 mln dirhams vs 73.4 mln dirhams year ago Saudi private sector growth edges up in October -PMI Foreign selling of Saudi stocks slows in week to November 1 Saudi developer eyes three new Riyadh projects Saudi's Sabic signs non-binding MoU with SAFCO Saudi's Almarai announces full compliance in importing 100 Pct of Alfalfa, Green Forage. Saudi's Jarir marketing posted Q3 net profit after tax and zakat 288 mln riyals vs mln riyals year ago Kuwait Petroleum Is Said to Be in Talks for $3.3 Billion Loan Egypt's Sarwa Capital exposed to IPO "irregularities" regulator Medinet Nasr for Housing and Development Q3 consolidated net profit after tax EGP mln vs EGP mln year ago. Abu Gir Fertilizers and Chemical Industries posted Q1 net profit after tax EGP mln vs EGP mln year ago.

3 Egypt's Delta Sugar posted nine-month net profit after tax of EGP mln vs EGP mln year ago # Key Global Trends/ Market Clues Asian stocks were hammered on Monday as fears of faster rate hikes in the United States and uncertainty around the Sino-U.S. trade war dented risk sentiment, while sterling jumped to two-week highs on hopes of an orderly Brexit. MSCI's broadest index of Asia-Pacific shares outside Japan stumbled more than 1 percent but was still well off a 1-1/2 year trough touched last week. Oil prices fell on Monday as the start to U.S. sanctions against Iran's fuel exports was softened by waivers that will allow major buyers to still import Iranian crude, at least temporarily. Front-month Brent crude futures were at $72.40 per barrel at 0332 GMT on Monday, down 43 cents, or 0.6 percent from their last close. # UAE Stories Abu Dhabi s Supreme Petroleum Council approved a $132 billion (AED486bn) capital investment plan to support Abu Dhabi National Oil Company s (ADNOC) five-year growth plan.adnoc will increase its oil production capacity to 4 million barrels per day (mmbpd) at the end of 2020 and 5mmbpd by Emirates NBD and IHS Markit release purchasing managers index for U.A.E. s whole economy in October. Index falls to 55 from 55.3 in Sept.; Year ago New Orders fall to 60.2 vs 60.6 in Sept. Employment rises vs prior month. Abu Dhabi on Sunday announced the new discovery of gas totalling 15 trillion standard cubic feet that is expected to enable the UAE achieve self-sufficiency in gas and potentially become a net gas exporter. Emirates is edging towards a deal with Rolls-Royce RR.L to power its latest Airbus A380 superjumbos but has not yet reached a final agreement, the Dubai-based airline said on Sunday. The fate of a lifeline order for up to 36 of the double-decker aircraft, of which Emirates already has over 100 in operation, has been widely questioned due to inconclusive talks over a separate deal between Emirates and engine makers. Kuwait Authority for Partnership Projects announced Tuesday approval of a consortium of Germany's WTE Wassertechnik GmbH Group and Kuwait's International Financial Advisors to implement and expand the Umm Al- Hayman Wastewater Treatment Project and its related works. Emaar Malls posted a 10 per cent increase in third-quarter net profit thanks to rise in footfall at its outlets. Net profit rose to Dh537 million from the year earlier period. Revenue climbed 29 per cent to Dh1.13 billion from a year earlier. The positive performance of the business reflects the success of our strategy to evolve in line with the aspirations of the new generation of customers, said Mohamed Alabbar, chairman of Emaar Properties. Eshraq reported posted 3Q18 net income of AED13.5m vs. AED685,000 a year ago. 3Q18 revenues clocked in at AED5.85m vs. AED5.35m a year ago. Operating profit 11m dirhams vs 6.13m loss year ago. Depa reported a 72 per cent decline in net profit in the first nine months of 2018, held back by weaker performance of its Design Studio Group division. Net profit after non-controlling interests stood at Dh36.2 million for the nine months to September 30. The first nine months of 2017 included the positive impact of the resolution of two major long-outstanding receivables, the company added. Revenue was up 5 per cent to Dh1.3 billion over the period, and Depa had a backlog of work valued at Dh2bn up 15 per cent annually in the year to date.

4 Rak Ceramics reported net profit declined by 14% quarter on quarter to AED 47.4 million due to an increase in costs driven by expenses associated with the consolidation of Saudi Arabian entities, higher freight costs, and foreign exchange losses. Emirates Investment Bank posted nine-month net profit 32.8 mln dirhams vs 44.4 mln dirhams year ago. Insurance House posted nine-month net profit 8.4 mln dirhams vs 3.9 mln dirhams year ago. Al Khaleej Investment posted nine-month consolidated net profit 4.5 mln dirhams vs 26 mln dirhams year ago. National General Insurance posted Q3 profit 22 mln dirhams vs 8.6 mln dirhams year ago. Emirates Investment Bank posted nine-month net profit 32.8 mln dirhams vs 44.4 mln dirhams year ago. Emirates Driving posted nine-month consolidated net profit 80.8 mln dirhams vs 73.4 mln dirhams year ago. # GCC/ MENA Saudi Arabia's non-oil private sector expanded a little faster in October as growth in employment and new orders picked up, a monthly survey of companies showed on Monday. The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers' Index rose to 53.8 last month from 53.4 in September. Foreigners sold a net 89.2 million riyals ($23.8 million) in the Saudi stock market in the week ended Nov. 1, a sharp drop from the previous two weeks when investor worries prompted heavy selling. The foreign selling slowed from 2.34 billion riyals in the previous week and a record 4.01 billion riyals the week before. Dar Al Arkan, the largest listed real estate developer in Saudi Arabia, has announced that it has submitted a request for the accreditation of three major new projects in Riyadh. The company said it has applied to ETMAM, the developer s services centre at the Saudi Ministry of Housing, for approval for the developments totaling over million square metres in Shams Ar Riyadh. The company also applied for the issuance of an off-plan sales licence for projects under construction in Shams Ar Riyadh. Saudi's Sabic signs non-binding memorandum of understanding with SAFCO. MoU defines principles of cooperation on SAFCO acquisition of Sabic's investments in affiliates that produce agri-nutrients, relevant products and MoU duration is 18 months from date of signing. Saudi's Almarai announces full compliance in importing 100 pct of Alfalfa and Green Forage requirements. Company has stopped production of Alfalfa and Green forage in Saudi. Full annual cost impact of importation of forage versus local production is estimated at SAR 350 mln and adverse effect is anticipated to take place over a period of 2 years due to large forage stock. Saudi's Jarir marketing posted Q3 net profit after tax and zakat 288 mln riyals vs mln riyals year ago. Kuwait Petroleum Corp. is in talks with local banks to raise a 1 billion dinar ($3.3 billion) revolving loan to help fund its expansion plans, according to two people with knowledge of the matter. KPC is expected to finalize the financing by the end of the year, the people said, asking not to be named because talks are private. The company has a $105 billion investment strategy for the next five years and plans to finance half with debt and the rest with equity, one of the people said. The company will also tap international markets for loans, bonds and sukuk to finance its expansion, the person said. A spokesman for Kuwait Petroleum wasn t immediately available to comment. Egypt's Sarwa Capital was exposed to some irregularities in IPO procedures - deputy financial regulator. Decision to suspend IPO unit of Egypt's Beltone Financial Holdings came after investigations.

5 Medinet Nasr for Housing and Development Q3 consolidated net profit after tax EGP mln vs EGP mln year ago. Abu Gir Fertilizers and Chemical Industries posted Q1 net profit after tax EGP mln vs EGP mln year ago. Egypt's Delta Sugar posted nine-month net profit after tax of EGP mln vs EGP 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 the use by the intended recipients and the content of it may not be reproduced, redistributed or copied in whole or in part for any purpose without IS s prior express consent.