IS Morning Report Thursday, December 06, 2018

Transcription

1 # Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 4, % -3.5% -1.8% 9.8% 12.0% ADX DFM 2, % -6.5% -6.9% -21.9% -22.5% Local 15% 23% -8% TASI 7, % 0.9% 2.5% 9.1% 12.2% Foreign 85% 77% 8% BHSEASI 1, % 0.6% -1.3% -0.7% 4.5% Institutional 90% 87% 3% EGX 12, % -6.3% -20.4% -16.2% -12.3% Retail 10% 13% -3% Dow Jones 25, % -1.7% -3.6% 1.2% 3.5% DFM S&P 500 2, % -1.4% -6.5% 1.0% 2.7% Local 46% 50% -3% Nasdaq 7, % -2.3% -10.5% 3.7% 5.9% Foreign 54% 50% 3% FTSE 100 6, % -1.7% -5.4% -10.0% -5.8% Institutional 73% 66% 7% DAX 11, % -2.5% -6.3% -13.3% -13.8% Retail 27% 34% -7% CAC40 4, % -2.6% -5.7% -6.9% -8.0% Total Nikkei225 21, % -3.4% -4.9% -6.1% -3.6% Local 32% 38% -6% HIS 26, % 0.0% -3.2% -12.7% -7.5% Foreign 68% 62% 6% # Upcoming Corporate Actions & Events Date Company Event 6-Dec Gulf Nav B. Meeting/Refinancing 9-Dec CBI B. Meeting/Operations 10-Dec UAB B. Meeting/Operations 16-Dec Salama G. Assembly # KEY STORIES Drake & Scull picks up $163mln Reem Mall contract ADNOC's unit and Inpex sign agreement to explore LNG bunkering partnership

2 UAE private sector growth picks up slightly in November PMI at 55.8 vs 55.0 in Oct Abu Dhabi unveils $1.1bln infrastructure development projects UAE economy to grow more than 3% in 2019: minister Moody's says Gulf banks' 2019 outlook stable as oil prices boost state spending Middle East cargo demand grows in October on robust Europe and Asia trade Saudi Arabia Nov. Whole Economy PMI 55.2 vs 53.8 in Oct. Saudi crude supply rose to 11.3mln barrels per day in Nov - source Saudi's FIPCO unit signs 35.3mln riyals financing with SIDF Kuwait's Jazeera to decide between Airbus, Boeing order next year Egypt s Palm Hills Developments Company board approves issued capital increase to EGP 6.16bln from EGP 4.62bln Egypt's Heliopolis signs EGP 1.2bln loan with Banque Du Caire Egypt s Golden Pyramids Plaza posted nine-month standalone net profit $21.2mln vs $41.9mln year ago Egypt s Marsa Marsa Alam receives leasing offer from Carinio Travel Egypt s Dice Sport and Casual Wear shareholders approve share capital split by amending share nominal value to 20 qirsh from EGP 1 # Key Global Trends/ Market Clues U.S. stock futures and Asian shares tumbled on Thursday after Canadian authorities arrested a top executive of Chinese tech giant Huawei for extradition to the United States, fanning fears of a fresh flare up in tensions between the two superpowers. MSCI's ex-japan Asia-Pacific index fell 1.2 percent, Hong Kong's Hang Seng dropped 2.1 percent while Shanghai shares dropped 0.9 percent. Oil prices fell along with weak stock markets on Thursday, but trading was tepid ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30 percent since October. U.S. West Texas Intermediate (WTI) crude futures were at $52.66 per barrel at 0140 GMT, down 23 cents, or 0.4 percent, from their last close. OPEC and non-opec leaders meet in Vienna today. U.S. President Donald Trump on Wednesday called on the Organization of the Petroleum Exporting Countries and its allies not to cut oil production next year, saying it would trigger higher oil prices worldwide. # UAE Stories Drake & Scull International (DSI) has announced that it has secured a 600 million United Arab Emirates dirham ($163.4 million) contract to deliver mechanical, electrical and plumbing (MEP) work for Reem Mall in Abu Dhabi. The company, whose shares were suspended from trading by the Dubai Financial Market on November 15.

3 ADNOC Logistics & Services, a unit of Abu Dhabi National Oil Co (ADNOC), and Inpex Corp have signed an agreement for an LNG bunkering partnership in the United Arab Emirates, the Abu Dhabi oil firm said on Wednesday. UAE private sector growth picks up slightly in November PMI at 55.8 vs 55.0 in Oct. Output growth accelerated to 60.1 from 58.6 and growth in new orders was 61.0 against Employment, which had dropped outright in August and September, continued to rebound with its reading climbing to Abu Dhabi government has approved a series of development projects valued at over Dh3.86 billion ($1.05 billion) in the Al Dhafra Region of the emirate in bid to improve local housing, education and health services and provide work opportunities for the residents of Al Dhafra. The United Arab Emirates economy will grow between 2.5 and 3 percent in 2018, before rising to more than 3 percent in 2019, its economy minister, Sultan bin Saeed al-mansouri said. # GCC/ MENA Moody's Investors Service assigned Arabian Gulf banks a stable outlook on the back of improving operating conditions, strong capital and weakening but still solid lending. Banks in UAE, Kuwait, and Saudi Arabia will remain resilient but fiscal pressures will weigh on banks in Oman and Bahrain, where oil prices will remain below the levels needed to balance state budgets, Moody's said in a report on Wednesday. Middle East airfreight demand, measured in freight ton kilometers, grew in October as the region's trade with Europe and Asia increased, the International Air Transport Association said. The region's cargo volumes grew five per cent in October compared to the same month a year ago, the industry body said on Wednesday. Global airfreight demand rose 3.1 per cent year-on-year in October, up from a 29-month low of 2.5 per cent in September, and spurred by investments and growing e-commerce business. Saudi Arabia Nov. Whole Economy PMI 55.2 vs 53.8 in Oct. Saudi Arabian crude supply in November rose to 11.3 million barrels per day, a source familiar with the matter said on Wednesday. Saudi Arabia, after opening the taps in June and then scaling back its plans to pump more, supplied million bpd in October. Saudi's Mobily announces the signing of financing agreement with Export Credit Agency. Financing agreement with export credit agency is for the modernization project to upgrade Mobily network and the facility is for value 1.09bln riyals for duration of 10 years. Reason for credit facility is to partially finance purchase of network equipment. Saudi's FIPCO unit signs 35.3mln riyals financing with SIDF. Kuwait's Jazeera Airways will by the end of February ask Airbus and Boeing to pitch to supply up to 25 narrow-body jets, its chief executive told Reuters on Wednesday. The discount airline previously said it was likely to place an order by the end of 2018 but had not said how many aircraft it would take. Egypt s Palm Hills Developments Company board approves issued capital increase to EGP 6.16bln from EGP 4.62bln. Egypt's Heliopolis signs EGP 1.2bln loan with Banque Du Caire. Egypt s Golden Pyramids Plaza posted nine-month standalone net profit $21.2mln vs $41.9mln year ago. Egypt s Marsa Marsa Alam for Development Tourism says Carinio Travel makes leasing offer for Badawia Resort - Marsa Alam. The offer is for duration of contract 7 years against a yearly rent of 0.4mln euros.

4 Egypt s Dice Sport and Casual Wear shareholders approve share capital split by amending share nominal value to 20 qirsh from EGP 1. MM Group for Industry and International Trade acquires 25.2 pct stake in Qanawat for Trade and Distribution for total deal value of EGP 73.9mln. MM Group raises stake in Qanawat to 62.7 pct from 37.5 pct. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

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