IS Morning Report Wednesday, March 28, 2018

Transcription

1 Global & Regional Benchmarks UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 4, % 0.3% 4.8% 4.8% 3.2% ADX DFM 3, % -5.9% -8.2% -8.2% -10.3% Local 61% 52% 8% TASI 7, % 6.4% 9.8% 9.9% 15.6% Foreign 39% 48% -8% KWSEI 6, % -2.3% 3.3% 3.3% -6.1% Institutional 60% 50% 10% EGX 17, % 11.6% 15.0% 15.0% 33.0% Retail 40% 50% -10% Dow Jones 23, % -4.7% -3.9% -3.5% 15.2% DFM S&P 500 2, % -3.7% -2.8% -2.3% 10.8% Local 55% 52% 3% Nasdaq 7, % -3.6% 0.8% 1.5% 19.3% Foreign 45% 48% -3% FTSE 100 7, % -3.2% -8.2% -8.9% -4.7% Institutional 56% 51% 5% DAX 11, % -3.7% -7.8% -7.3% -1.5% Retail 44% 49% -5% CAC40 5, % -3.8% -4.2% -3.7% 1.4% Total Nikkei225 20, % -5.2% -8.2% -8.1% 8.9% Local 57% 52% 4% HIS 30, % -1.6% 1.6% 1.4% 24.6% Foreign 43% 48% -4% Upcoming Corporate Actions & Events Date Company Event 11-Apr Dana Gas Annual General Assembly Meeting 22-Apr Eshraq Properties Annual General Assembly Key Stories Emirates NBD Lifts Foreign Ownership Limit to 20% GFH plans to sell entire 70% share in Philadelphia School Drake and Scull to issue a convertible Sukuk in Q in succession of the recapitalization program DP World Reduces Conversion Price on 2024 Bonds After Dividend UAE healthcare provider NMC raises $2 billion loan Dana Gas Bondholders to Rely on U.K. Court Ruling U.A.E's Capital Group Properties Plans Egypt Expansions

2 Emaar Hospitality to Develop Vida Za abeel Twin Towers in Dubai Talks to finalise the sale of Qatar's Commercial Bank's 40 percent stake in UAB to UAE -based Tabarak Investment have been extended to April 2 Al Wathba National Insurance co - board recommends FY cash dividend of 15 pct Abraaj Is Said to Consider Sale of Fund Unit Stake to Raise Cash FTSE To Announce Decision on Saudi Arabia EM Addition March 28 Saudis to repay contractors on state projects for increased expat fees Yanbu Cement signed an agreement to export 1 million tonnes of clinker and half a million tonnes of cement for one year starting in April. Saudi Arabia public investment managing director Yasir Al-Rumayyan says he is focused on investments in big data, life sciences, robotics OPEC, Russia consider year oil alliance - Saudi Crown Prince Saudi's 3-Month Saibor Edges Above Central Bank's Repo Rate Albaraka Turk says aims to double assets in the next five years EFG-Hermes Eyes Growth in Non-Bank Financial Business Iraq Will Start Kirkuk Oil Exports to Iran in Week or Two Global Markets Wrap: Asian shares fell on Wednesday after Wall Street was knocked hard by concerns about tighter controls on the tech industry, denting a brief global equities recovery driven by hopes that the risk of a U.S.-China trade war was easing. Investors rotated out of the tech sector, which had long outperformed the market on hopes of new technologies such as artificial intelligence (AI) and internet of things (IoT). The 10-year U.S. Treasuries yield dropped to percent, its lowest level in seven weeks. The two-year yield stood at percent. Oil prices fell on Wednesday, with Brent dropping back below $70 per barrel and U.S. WTI crude dipping below $65, pulled down by a report of increasing U.S. crude inventories that surprised many traders. Traders said the dips came after the American Petroleum Institute (API) late on Tuesday reported a surprise 5.3 million barrels rise in crude sticks in the week to March 23, to million barrels. Official U.S. inventory data will be published by the Energy Information Administration (EIA) late on Wednesday. Price declined despite top exporter Saudi Arabia saying it was working with top producer Russia on a historic long-term pact that could extend controls over world crude Towers to house hotel, serviced apartments, Emaar Properties unit says in ed statemensupplies by major exporters for many years.

3 UAE: Emirates NBD shareholders approved lifting its foreign ownership limit to 20% from 5% at its general assembly meeting. Also got approval to increase the bank s share capital by up to AED7.35 billion through the issuance of new shares for a subscription price per share at no less than 10% discount to the market price. GFH Financial Group (GFH) added its Dubai-based wholly-owned subsidiary, GFH Capital and its strategic investors have declared plans for sale of their whole 70 per cent share in the Philadelphia Private School. The share, that was purchased in October 2014, has been sold back to a leading businessman Nashat Sahawaneh, who is the school s existing 30 per cent shareholder. PPS is a K-12 American curriculum school that was established in 2006 and is worth more than Dh130 million. Drake and Scull to issue a convertible Sukuk in Q in succession of the recapitalization program. Convertible sukuk with indicative value of minimum AED450 mln or equivalent in other currencies. Sukuks as private placement or public issuance to be converted to shares over a maximum period of 5 years, at a price of aed 3 per share or at a discount of 25 pct of market price. DP World reduces conversion price on $1b, 1.75% bonds to $ per share due to a $0.41 per share dividend payable on May 2, Dubai-based port operator says in statement. Price to be adjusted from $ /shr, effective March 26. Threshold amount to be adjusted to $0.2359/shr from $0.24/shr NMC Health has raised a $2 billion loan which will be used for general corporate purposes and partly to refinance existing debt, sources familiar with the matter said. The fundraising, completed earlier this month, was provided by a consortium of banks including Citi, JPMorgan and Standard Chartered, the sources said. Dana Gas PJSC s bondholders will rely on English court rulings in their debt standoff with the company, even after a court in the United Arab Emirates issued a new injunction against one of the investors, according to Hogan Lovells U.S. LLP. Capital Group Properties, owned by Abu Dhabi Capital Group and Al Ain Properties, is planning to double its land bank and raise investments in an Egyptian market it says offers plenty of room for growth. Cairo-based CGP is in talks with the government to acquire two plots west of Cairo and on the Mediterranean coast this year, Deputy Chief Executive Officer Amgad Hassanein told reporters. The company also plans to invest 3 billion Egyptian pounds

4 ($170 million) in construction at its flagship Alburouj project, which is spread out over an area of about 5 million square meters east of Cairo. Emaar Hospitality to Develop Vida Za abeel Twin Towers in Dubai. Towers to house hotel, serviced apartments, Emaar Properties unit says in ed statement. To have 70 and 68 floors. Vida Hotels & Resorts to operate facility Talks to finalise the sale of Qatar's Commercial Bank's 40 percent stake in UAB to UAE -based Tabarak Investment have been extended to April 2 Al Wathba National Insurance co - board recommends FY cash dividend of 15 pct Abraaj Group, the Middle East buyout firm roiled by allegations of misused funds, is considering the sale of a stake in its fund management business to raise cash amid heightened regulatory scrutiny and the departure of key executives, according to people with knowledge of the matter. GCC/ MENA: FTSE to Announce Decision on Saudi Arabia EM Addition March 28 The Saudi cabinet announced on Tuesday it plans to reimburse contractors on government projects agreed before December 2016 for increased expat fees, according to a statement by Saudi Press Agency. The cabinet said the finance ministry plans to reimburse contractors who entered into agreements with the government before December 2016, when the kingdom announced plans to increase fees paid by the companies for expatriate employees. The labour-intensive construction sector has been hit hard by low oil prices, delays in government payments and a rise in expatriate workers fees. Yanbu Cement signed an agreement to export 1 million tonnes of clinker and half a million tonnes of cement for one year starting in April. Saudi Arabia public investment managing director Yasir Al-Rumayyan says he is focused on investments in big data, life sciences, robotics; market volatility has not shaken Saudi's investment strategy; likes investment opportunities he sees in Africa. Al-Rumayyan says fund expects to recieve proceeds of $100 bln from Saudi Aramco IPO depending on valuation, size of offering. OPEC and Russia are working on a long-term deal to cooperate on oil supply curbs that could extend controls over world oil supplies by major exporters for many years to come. Saudi Crown Prince Mohammed bin Salman told Reuters that Riyadh and Moscow were considering extending an alliance on oil curbs that began in January 2017 after oil prices crashed. Saudi's 3-Month Saibor Edges Above Central Bank's Repo Rate. 3-month Saibor rises to % vs %. Saudi s repo rate at 2.25% Turkish Islamic lender Albaraka Turk, subsidiary of Bahrain-based Al Baraka Banking Group, aims to increase both its loans and assets by around 15 percent a year for the next five years, it said in a statement on Tuesday. EFG-Hermes Eyes Growth in Non-Bank Financial Business. Non-bank financial business grew 149% Y-o-Y and contributed 16% of the group s revenue and the firm is targeting it will contribute 50% to group s revenues within 4 years, Hamzada Nessim, head of investor relations, says in a call with reporters. Iraq Will Start Kirkuk Oil Exports to Iran in Week or Two. Exports will start at 30k b/d, acting director-general of state-run Oil Marketing Co. Alaa Al-Yasiri tells reporters in Baghdad. Iraq received 96 offers from cos. to build Kirkuk oil export pipeline to Ceyhan, Turkey. Will take 5-6 months to build, oil ministry will award to cos. that can finish the job fastest. Iraq keen to build oil pipeline to Jordan. Iraq s oil production including Kurd region is 4.36m b/d.

5 (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) Daily Foreign Ownership Increase Company Name Foreign Ownershp (%) (%) Shares Mcap (AED) Dana Gas 60.23% ,999,481 26,999,533 Union Properties 24.53% ,863,264 5,902,407 Dubai Isl. Ins 12.77% , ,069 DXBE 31.21% ,799,904 4,135,955 Air Arabia 23.31% ,733,360 4,405,365 Amanat 21.80% ,250,000 1,625,000 Dar Al Takaful 22.37% ,000 51,975 Deyaar Dev 11.16% ,311,200 1,086,264 GFH 72.79% ,037 1,054,656 Gulf Cement 17.51% ,060 87,857 Daily Foreign Ownership Decrease Company Name Foreign Ownershp (%) (%) Shares Mcap (AED) Eshraq 35.76% (5,115,000) (3,631,650) Al Salam Group KW 16.47% (458,388) (212,862) RAK Properties 28.94% (3,000,000) (2,070,000) Manazel 20.25% (1,820,000) (1,001,000) DFM 7.55% (4,797,458) (5,040,000) Al Waha Capital 8.14% (1,103,105) (2,508,424) Islamic Arab Ins % (714,181) (312,180) Marka 14.95% (250,000) (122,500) International Holdings 5.10% (255,000) (369,750) Emaar Properties 37.20% (2,863,896) (16,352,844) (Source: ADX, DFM, Bloomberg, Reuters)

6 Institutional Sales and Trading Team Harshjit Oza Direct Line: 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.