AMMAN STOCK EXCHANGE WEEKLY MARKET WRAP-UP

Transcription

1 2017 AMMAN STOCK EXCHANGE WEEKLY MARKET WRAP-UP Research Contacts: Mohammad Al-Zou bi, CFA Financial Analyst Tel: Ext Mohammad.Alzoubi@Capitalinv.com March 09 th, 2017

2 Index Performance P/E P/B Div Yld Source: Bloomberg , Bloomberg Market Breadth ASE General Index JOD VALUE TRADED (LHS) Gainers Losers Unchanged Last Week Sector Value Volume % Change JD # of share Last week YTD YTD -0.5% 1.5% Index (RHS) Financial 16,515,132 14,830, % 3.90% Services 8,481,921 7,882, % 0.77% 2,300 2,250 2,200 2,150 2,100 2,050 2,000 1,950 1,900 1,850 Industrial 5,657,747 5,882, % -5.39% 20.10x 1.26x 3.63% Avg Daily Trading Activity Last week YTD Value (JOD Million) Volume (Million Shares) Top Gainers Price % Chg SPCZ.INVST.COMD % CONTEMPRO % JORDAN PHARMA % Top Losers Price % Chg JOR STEEL % EQBAL INV. CO % SURA % Most Active Price % Chg SURA % RUM GROUP % JOR STEEL % Top Value Traded Price % Chg ARAB BANK % JOR PETROLM REF % SURA % JOD Interest Rate Summary 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% May-13 Nov-13 Jun-14 Dec-14 Jul-15 Jan-16 Aug-16 Mar-17 Sep-17 Government 2-Year Issues Government 3-Year Issues Government 5-Year Issues Government 7-Year Issues Government 10-Year Issues Source: SDC, CBJ Maturity Issuance Date Interest Rate Two years 11/12/ % Three years 26/01/ % Five years 08/03/ % Seven years 16/01/ % Ten years 23/01/ % Source: CBJ Jordan EuroBonds Yields Source: Bloomberg 2

3 Amman Stock Exchange News Joint Financial Conference on Depositary Receipts to Convene March 13 th Non-Jordanian Investment at the ASE During February 2017 Joint Financial Conference on Depositary Receipts to Convene March 13th London Stock Exchange and Deutsche Bank in partnership with Al-Mawared Brokerage, a subsidiary of INVESTBANK, are to hold a conference on Depositary Receipts on Monday March 13, 2017 at the Jordan Capital Markets premises, in cooperation with The Amman Stock Exchange (ASE). Capital markets regulator, the Jordan Securities Commission (JSC), recently issued new regulations regarding the issuance, listing and trading of Depositary Receipts. Experts and senior managers from London Stock Exchange and Deutsche Bank will discuss opportunities for Jordanian public shareholding companies to issue Depositary Receipts and list them on London Stock Exchange. London Stock Exchange has become the venue of choice for the listing and trading of Middle East and North Africa companies seeking to raise capital, attract international investors and increase international awareness of their brands and businesses. (Al Ghad Newspaper) Non-Jordanian Investment at The ASE During February 2017 The total value of shares that were bought by non-jordanian investors at the Amman Stock exchange (ASE) during February 2017 was JD521.0 million, representing 50.3% of the overall trading value, while the value of shares sold by them amounted to JD905.4 million. As a result, the net of non- Jordanian investments during February 2017 showed a decrease by JD384.4 million, compared with an increase by JD44.5 million during the same month of The reason for this decline in the net investments is due to selling of a Lebanese company; Oger Middle East Holding its stake in the Arab Bank to a group of Arab and Jordanian investors, the volume of the block trade amounted JD794.4 million. The total value of shares that were bought by non-jordanian investors since the beginning of the year until the end of February 2017 was JD704.1 million, representing 47.6% of the overall trading value, while the value of shares sold by them amounted to JD million. As a result, the net of non-jordanian investments showed a decrease of JD396.0 million, compared to an increase by JD40.2 million for the same period of Arab investors purchases since the beginning of the year until the end of February 2017 were million, or 63.5% of the overall purchases by non-jordanians, while the value of non-arab purchases amounted to JD257.3 million, constituting 36.5% of the total purchases. Arab investors sales amounted to JD million, 93.0% of non-jordanians total sales, while the value of non-arab sales amounted to JD77.4 million, representing 7.0% of the total sales by non-jordanians. Non-Jordanian investors' ownership in companies listed at the ASE by end of February 2017 represented 47.7% of the total market value, 36.1% for Arab investors and 11.6% for non-arab investors. At the sector level, the non-jordanian ownership in the financial sector was 53.1%, in the services sector was 22.0%, and in the industrial sector was 50.0%. (Amman Stock Exchange) 3

4 Economic News SSIF Assets Grow Despite Slow Economy Jordan, Kenya to Sign FTA Before Year-End Gov t Seeks WB Support to Address Public Sector Reform Foreign Reserves Up to Around USD13 Billion in 2016 Revenues from Remittances, Tourism on the Rise Credit Facilities by Banks Up 0.6% in Jan-2017 at JOD139 Million New Customs Bill Approved by Cabinet Housing, Real Estate Market Activity Drops 5% in 2 Months Treasury Bonds Up 52.3%, at JOD800m in 2 Months NEPCo Power Delivered in in January Up 3.1% SSIF Assets Grow Despite Slow Economy With the Social Security Investment Fund's (SSIF) assets totaling JD8.3 billion at the end of 2016, the fund has become an anchor investor, constantly exploring for new investment opportunities and feasible projects for the benefit of the Jordanian economy, its Executive Chairperson Suhair Al-Ali has said. The fund's assets have been edging up over the past year, registering a 9% or JD682 million increase towards the end of 2016, reaching JD8.3 billion, compared with JD7.6 billion at the end of 2015, Al-Ali said in an exclusive interview last week with The Jordan Times and Al Rai daily. In the first two months of 2017, the total assets reached JD8.5 billion, Al-Ali said. At the end of 2014, the assets had reached JD6.8 billion and JD6.1 billion in In 2012, they stood at JD5.6 billion compared with JD5.1 billion in The fund s assets totaled JD1.9 billion in 2003 when it started its activities. The fund s investment portfolio was distributed in shares, bonds, real estate, tourism and money market instruments. Stressing that the fund s operations are managed based on good governance principles and in line with the best internationally-adopted practices, Al-Ali said: The fund invests 50 to 55% of its assets in Jordanian Treasury bonds with varying maturities, she said, adding that investment in Treasury bonds for some of the public pension funds across the world, which are usually conservative, reaches up to 100% of their assets. It is our duty to properly manage and invest the money of the Social Security Corporation s [SSC] subscribers and pensioners and that is conducted in accordance with the principles of good governance, Al-Ali added. She also said that all investment decisions are made based on adequate due diligence and based on economic feasibility and returns. The income generated by the SSIF in 2016 amounted to JD315 million. However, the comprehensive income dropped to JD138 million in 2016 due to a JD121- million decline in the reevaluation of the portfolio of shares after the market cap index in the Amman Stock Exchange declined by 3.8%. The fund also incurred JD56 million in losses after the Jordan Telecommunications Company reduced its capital by JD62.5 million to JD187.5 million from JD250 million. The fund has a 28.9% stake in the telecom company. In the first two months of 2017, the fund registered an increase in the comprehensive income, which takes into account the valuation of the portfolio of shares. The January-February income reached JD103 million in the first two months compared with a loss of JD88 million in the same period of last year, Al-Ali pointed out. The increase in comprehensive income is due to the improvement in the Amman bourse as the market cap index inched up by 2.8% since the beginning of 2017, she added, stressing that the fund s performance reflects that of the Jordanian economy and its various indicators, be it growth rate, interest rates, inflation, etc, as the fund invests all its assets in Jordan. (The Jordan Times) 4

5 Economic News (Cont d) Jordan, Kenya to Sign FTA Before Year-End Jordan and Kenya are expected to sign a free trade agreement (FTA) before the end of the year, Minister of Industry, Trade and Supply Yarub Qudah said on Saturday. At a ceremony marking the launch of the Jordanian-African Business Association, Qudah said that both countries are scheduled to start negotiations over the FTA next month. The agreement would facilitate the penetration of Jordanian products into the Kenyan market, the Jordan News Agency, Petra, reported. The deal would also provide incentives to help Jordanian items compete in Kenya's market, the minister added. The difficult regional circumstances, such as the Syrian and Iraqi crises, affected the national products' traditional markets, making it necessary to search for new export markets, Qudah said, adding that the "promising" African market was one of the choices. (The Jordan Times) Gov t Seeks WB Support to Address Public Sector Reform Jordan on Thursday called on the World Bank (WB) to support its plans to reform the public sector. The request was raised during a meeting between Prime Minister Hani Mulki and World Bank Vice President for the Middle East and North Africa Hafez Ghanem. Mulki said that the government is concerned with reforming the public sector, enhancing good governance and automating and restructuring government procedures, so as to eliminate bureaucracy that hinders achievements, the Jordan News Agency, Petra, reported. The government activated the Public-Private Sectors Partnership Law in implementing strategic public projects, such as the Tafileh Public Hospital, the planned Amman customs center project in Madouneh and a project for developing King Hussein Bridge, the premier noted. He added that the educational system in the Kingdom needs development, especially as it suffers crowded classrooms in all branches, with focus on the vocational stream due to its importance in plans to address unemployment among the youth. For his part, Ghanem highlighted the partnership between the WB and Jordan in implementing development programs. He also noted that the WB launched a regional initiative two years ago to enhance competitiveness and reform educational systems in the Middle East and North Africa region. The WB official praised the level of cooperation between the Kingdom s public and private sectors in implementing mega projects, citing as a success story the new terminal of the Queen Alia International Airport that boosted the competitiveness of the facility and upgraded the quality of services provided to passengers. (The Jordan Times) Foreign Reserves Up to Around USD13 Billion in 2016 The Central Bank of Jordan's (CBJ) foreign reserves stood at $ billion at the end of 2016, sufficient to cover the Kingdom's imports of commodities and services for seven months, the Jordan News Agency, Petra, reported. Local liquidity increased by 4% in 2016 compared to 2015, reaching JD billion, according to CBJ's monthly report. The report also indicated that the accumulative credit facilities extended by licensed banks in the Kingdom increased by 8.5%, up to a total of JD billion, JD19.9 billion of which was borrowed by the resident private sector. Deposits increased last year by 1% from 2015, up to JD32.9 billion, JD26 billion of which was in Jordanian dinars while the rest in foreign currency, the report said, adding that "interest rates in 2016 regressed on deposits and facilitation, compared to 2015, except for bills and deducted bonds". (The Jordan Times) 5

6 Economic News (Cont d) Revenues from Remittances, Tourism on the Rise Total income from tourism and remittances by Jordanian expatriates increased by 8.5% in January, reaching USD664 million compared to USD612 million during January last year, the Jordan News Agency, Petra, reported. The Central Bank of Jordan (CBJ) said in a statement on Monday that initial data indicated a 4.2% overall increase in Jordanian expatriates' remittances during January, reaching around USD296 million compared with USD284 million in the same period last year. Revenues from tourism in January 2017 recorded a 12.2%, standing at USD368 million, compared with USD328 million in January 2016, Petra reported. The CBJ said the increase in tourism income is mainly attributed to an 8.7% increase in overnight tourists, reaching 339,200 tourists in January this year compared to 312,200 in January Total income from tourism and remittances amounted to USD8 billion in 2016, Petra added. (The Jordan Times) Credit Facilities by Banks Up 0.6% in Jan-2017 at JOD139 Million The total value of loans and credit facilitated by the local banking sector in Jordan by end of January, 2017, has increased by 0.6%, to JOD billion, from JOD billion by December end, 2016, up approximately JOD139 million, according to the Central Bank periodical. (Al Ghad Newspaper) New Customs Bill Approved by Cabinet The Cabinet on Monday approved a 2017 draft law amending the Customs Law. The draft law aims to facilitate customs procedures in line with international agreements, recently signed by the Kingdom, that depend on electronic tools for presenting customs statements, the Jordan News Agency, Petra, reported. The new regulations will also allow pre-clearance on imported goods, facilitate procedures for examining merchandise and create rules for customs examinations before export. The draft law also aims to activate a mechanism for risk management, as well as execute international obligations on monitoring goods of dual usage, including items that enter the Kingdom for transit or re-export. The draft law grants the customs court the power to examine cases related to customs smuggling and grants the customs prosecutor the authority to investigate cases of money laundering related to smuggling. The regulations will also provide for the legal disposal of hazardous items and grant authority to the prosecutor to order the detention of smuggling suspects, instead of than the Jordan Customs Department director. (The Jordan Times) Housing, Real Estate Market Activity Drops 5% in 2 Months Trading in real estate throughout the Kingdom over the first two months of the year, 2017, has dropped to JOD994 million, compared to the same duration of 2016, approximately 5%, according to the stats by the Department of Lands and Surveys, with nearly 74% of all trading Kingdom-wide in Amman. (Al Ghad Newspaper) Treasury Bonds Up 52.3%, at JOD800m in 2 Months The total worth of treasury bonds issued by the Central Bank of Jordan (CBJ) since the beginning of 2017 increased by JOD275 million, compared to the same duration in 2016, up approximately 52.3%, to roughly JOD800 million, from JOD525 million in the end of The last offering bid was on March 2nd, 2017, at a value of JOD100 million, for 2 years, and an interest rate of 3.55%. Notably, the closing debt figures of 2016 have gone up 7% to JOD24.4 billion, compared to JOD22.8 billion in (Al Ghad Newspaper) 6

7 Economic News (Cont d) NEPCo Power Delivered in in January Up 3.1% The sales of the National Electric Power Company (NEPCO) in January, 2017, has increased by nearly 3.1%, compared to January the year before, totaling 1,703 gigawatts sold, compared to 1,651.9 gigawatts. (Al Ghad Newspaper) 7

8 Price Perfomance Multiplies Fundamentals Company Market Cap. Last Price 52 Week 52 Week Low % Weekly % Change Dividend Net Debt To P/E (X) P/B (X) ROA (%) ROE (%) (JOD MILLION) (JOD) High (JOD) (JOD) Change YTD Yield (%) Equity (%) FINANCIALS FINANCIALS-BANKS Median NM ARAB BANK PLC % HOUSING BANK FOR TRADE AND FINANCE % JORDAN ISLAMIC BANK % BANK OF JORDAN % JORDAN KUWAIT BANK % CAIRO AMMAN BANK % ARAB JORDAN INVESTMENT BANK % BANK AL ETIHAD % JORDAN AHLI BANK % CAPITAL BANK OF JORDAN % INVEST BANK CO % JORDAN COMMERCIAL BANK % ABC BANK % JORDAN DUBAI ISLAMIC BANK % FINANCIALS-INSURANCE Median NM AL-NISR AL-ARABI INSURANCE % MIDDLE EAST INSURANCE % ISLAMIC INSURANCE CO % JORDAN INTL INSURANCE % FINANCIALS-DIVERSIFIED FINANCIALS Median UNION INVESTMENT CORP % FIRST FINANCE CORP % AL SANABEL INTERNATIONAL CO % ARAB EAST FOR REAL ESTATE INV % AL AMAL FINANCIAL INVESTMENT % FUTURE ARAB INVESTMENT CO % ISRAA ISLAMIC FINANCIAL % JORDANIAN EXPATRIATES INV HLD % AL-AMIN FOR INVESTMENT % NATL PORTFOLIO SECURITIES % JORDAN EMIRATES DIMENSIONS % FINANCIALS-REAL ESTATE Median UNION LAND DEVELOPMENT CORP % JORDAN MASAKEN FOR LAND & INV % AL-TAJAMOUAT FOR TOURISTIC PROJECTS % DEERA INVESTMENT & REAL ESTATE % ARAB EAST INVESTMENT % JORDAN DECAPOLIS PROPERTIES % REAL ESTATE DEVELOPMENT %

9 Company Market Cap. (JOD MILLION) Last Price (JOD) 52 Week High (JOD) Price Perfomance Multiplies Fundamentals 52 Week Low % Weekly % Change Dividend P/E (X) P/B (X) ROA (%) ROE (%) (JOD) Change YTD Yield (%) PROFESSIONAL FOR REAL ESTATE % JORDANIAN REAL ESTATE FOR DEV % METHAQ REAL ESTATE INVESTMENT % BINDAR TRADING & INVESTMENT % ARAB FINANCIAL INVEST CO % AMAD INVESTMENT & REAL ESTATE % AD-DULAYL INDUSTRIAL PARK CO % SPECIALIZED INVESTMENT COMPOUNDS % UNITED FINANCIAL INVESTMENTS % CONTEMPORARY FOR HOUSING PRO % AMMOUN INTERNATIONAL FOR INV % COMPREHENSIVE LAND DEVELOPMENT % HIGH PERFORMANCE REAL ESTATE % EMMAR INVESTMENTS & REAL EST % AL-RAKAEZ INVESTMENT CO % INJAZ FOR DEVELOPMENT AND PROJECTS % FINANCIALS MEDIAN NM INDUSTRIALS AFAQ FOR ENERGY CO PLC % ALIA THE ROYAL JORDANIAN AIRLINES % JORDAN NATL SHIPPING LINES % UNITED CABLE INDUSTRIES CO % ARABIAN AVIATION INVESTMENT % RUM TOURIST TRANSPORTATION CO % MASAFAT FOR SPECIALIZED TRANSPORTATION % BARTER CO FOR INVESTMENT & TRADE % SALAM INTL TRANSPORT & TRADE % NATIONAL CABLE & WIRE MANUFACTURING % INDUSTRIALS MEDIAN MATERIALS ARAB POTASH/THE % JORDAN PHOSPHATE MINES % LAFARGE JORDAN CEMENT % UNITED IRON & STEEL MANUFACTURING % READY MIX CONCRETE & CONSTRUCTION % ARAB PESTICIDE AND VETERINARY % JORDAN STEEL % ARABIAN STEEL PIPES % ARAB ALUMINIUM INDUSTRY % NATIONAL CHLORINE % MATERIALS MEDIAN Net Debt To Equity (%) 9

10 Price Performance Multiplies Fundamentals Company Market Cap Last Price 52 Week 52 Week Low % Weekly % Change Dividend Net Debt To P/E (x) P/B (x) ROA (%) ROE (%) (JOD Millions) (JOD) High (JOD) (JOD) Change YTD Yield (%) Equity (%) CONSUMER DISCRETIONARY JORDAN DUTY FREE SHOP #VALUE! ARAB INTERNATIONAL CO FOR INV % ZARA INVESTMENTS % AL-ISRA FOR EDUCATION & INV % JORDAN WORSTED MILLS/THE % ARAB INTERNATIONAL HOTELS % AL-DAWLIYA HOTELS & MALLS % ZARKA EDUCATION & INVESTMENT % ITTIHAD SCHOOLS COMPANY % JORDAN PRESS FOUNDATI/AL-RAI % AL-TAJAMOUAT FOR CATERING HOUSING % WINTER VALLEY TOURISM INVESTMENT % EL-ZAY READY WEAR MANUF CO % CONSUMER DISCRETIONARY MEDIAN CONSUMER STAPLES AL EQBAL CO FOR INVESTMENT % SINIORA FOOD INDUSTRIES CO % UNION TOBACCO & CIGARETTE % INDUSTRIAL COMMERCIAL & AGRICULTURE % UNIVERSAL MODERN INDUSTRIES % CONSUMER STAPLES MEDIAN HEALTH CARE DAR AL DAWA DEVELOPMENT &INV % AL-BILAD MEDICAL SERVICES % HAYAT PHARMACEUTICAL INDUSTRIAL % JORDANIAN PHARMACEUTICAL MANUFACTURING % INTL CO FOR MEDICAL INVESTMENTS % HEALTH CARE MEDIAN UTILITIES JORDANIAN ELECTRIC POWER % IRBID DISTRICT ELECTRICITY % INFORMATION TECHNOLOGY OFFTEC HOLDING GROUP PLC % TELECOM SERVICES JORDAN TELECOM % ENERGY JORDAN PETROLEUM REFINERY CO % Market Source: Bloomberg, Capital Investments 10

11 Research Contacts: Mohammad Al-Zou bi Financial Analyst Tel: Ext. 364 Mohammad.Alzoubi@Capitalinv.com Trading Contacts: Khaldoun Al-Zou bi Head of Brokerage Tel: Ext. 351 Khaldon.Zoubi@Capitalinv.com Customer Service: Sawsan Saleh Head of Customer Service Tel: Ext. 349 Sawsan.Saleh@Capitalinv.com Disclaimer The information and opinions contained in this document have been compiled in good faith from sources believed to be reliable. Capital Investments makes no warranty as to the accuracy and completeness of the information contained herein. All opinions and estimates included in this report constitute and reflect our independent judgment as of the date published on the report and are subject to change without notice. Capital Investments accepts no liability whatsoever for any loss of any kind arising out of the use of all or any part of this report. Capital Investments and its related companies may have performed or seek to perform any financial or advisory services for the company mentioned in this report. Capital Investments, its funds, or its employees may from time to time take positions or effect transactions in the securities issued by the company mentioned in this report.this document may not be reproduced in any form without the expressed written permission of Capital Investments. 11