IS Morning Report Tuesday, February 13, 2018

Transcription

1 Global & Regional Benchmarks UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 4, % 0.4% 5.5% 4.8% 1.0% ADX DFM 3, % -5.1% -4.7% -1.6% -8.9% Local 44% 42% 2% TASI 7, % 1.2% 6.7% 2.8% 5.2% Foreign 56% 58% -2% KWSEI 6, % 2.2% 7.3% 4.7% 0.8% Institutional 36% 25% 11% EGX 14, % -2.3% 5.4% -0.9% 16.9% Retail 64% 75% -11% Dow Jones 24, % -4.7% 5.0% -0.5% 20.5% DFM S&P 500 2, % -4.7% 2.8% -0.7% 14.1% Local 44% 42% 2% Nasdaq 6, % -3.8% 3.3% 1.1% 21.1% Foreign 56% 58% -2% FTSE 100 7, % -7.7% -3.2% -6.6% -1.4% Institutional 56% 56% 0% DAX 12, % -7.3% -6.1% -4.9% 4.3% Retail 44% 44% 0% CAC40 5, % -6.8% -3.8% -3.2% 5.2% Total Nikkei225 21, % -8.9% -5.0% -5.4% 11.2% Local 44% 42% 2% HIS 30, % -4.2% 3.2% 0.6% 27.0% Foreign 56% 58% -2% Upcoming Corporate Actions & Events Date Company Event 13-Feb Amlak BOD Meeting 13-Feb ADNIC BOD Meeting 13-Feb RAK Cement Board Meeting 14-Feb AD Nat. Takaful Board Meeting 15-Feb Abu Dhabi Shipbuilding Board Meeting Key Stories Aramex s Q Revenues registered double-digit growth of 14% to AED 1,324 million, Q4 Net Profits reached AED 165 million, which represents an increase of 25%, compared to AED million in Q Air Arabia Expects Egypt, Morocco to Boost Growth This Year

2 Emaar Malls records 11% increase in net profit DXB Entertainments Is Said Seeking to Restructure $1.15 Billion Buffett s Berkshire Hathaway Insurer Enters Dubai With New Hires Dubai to Award 1st Phase of $4 Billion Drainage Project by June United Arab Bank returns to profit UAE's Finance House FY Profit Falls Dubai Refreshments FY Profit Falls Salman Abdullah Bin Saedan Real Estate Group is planning a debut issuance of Islamic bonds in the coming months Kuwait Said to Seek $3.2 Billion in Loans for Solar, LNG Plants Kuwait Hires Adviser to Sell Exchange Stake to Foreign Operator Shale Oil Output to Be Absorbed by Rising Demand in 18: Kuwait Eastern Tobacco may advance in Cairo after being added to the MSCI Emerging Markets index, according to a statement by the index compiler Average yields on Egypt's five- and 10-year treasury bonds fell at an auction on Monday, Eni says to produce 2.9 bcf per day from Zohr field by second half 2019 Saudi orders inventory of delayed payments to private sector - Saudi Arabia hopes to raise $13 bln by year end from graft purge - FT Global Markets Wrap: Asian stocks pulled further away from two-month lows on Tuesday, lifted by Wall Street's extended rebound from last week's steep fall, but investors remained cautious ahead of U.S. inflation data later in the week. Oil prices rose on Tuesday, lifted by a rebound in global stock markets that followed sharp falls last week. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $59.44 a barrel at 0103 GMT. That was up 15 cents, or 0.25 percent, from their last settlement. Brent crude futures LCOc1 were at $62.78 per barrel, up 19 cents, or 0.3 percent, from the previous close. OPEC President Says Shale Surge Won t Thwart Plan to Clear Glut. Surging output of U.S. shale oil won t be a huge distorter of efforts by global crude producers to clear a glut, according to OPEC s president. The market should re-balance this year, given robust demand and producers compliance with their pledges to curtail supply, United Arab Emirates Energy Minister Suhail Al Mazrouei, currently the president of OPEC, said Monday in an interview in Dubai. The U.S. 10-year yield jumped to a four-year high of 2.89 percent Monday on signs inflation is quickening and amid uncertainty about the path of Fed tightening under new Chairman Jerome Powell. The surge in yields contributed to a selloff in global equities last week as investors reassessed the value of stocks.

3 UAE: Aramex s Q Revenues registered double-digit growth of 14% to AED 1,324 million, compared to AED 1,158 million in the corresponding period of Q4 Net Profits reached AED 165 million, which represents an increase of 25%, compared to AED million in Q Full Year Revenues reached AED 4,721 million; up by 9% compared to AED 4,343 million in Revenues were impacted by currency fluctuations, mainly in Egyptian Pound. Excluding this impact, Year on-year, Revenues would have grown by 11%. Aramex's Net Profits in 2017 increased by 2%, to AED million, compared to AED million in Net Profit growth in 2017 was impacted by the one-time fair value adjustment related to Aramex s investment in AMC Logistics joint venture in Egypt in Q Excluding this adjustment, Net Profits would have grown by 13% in Air Arabia PJSC expects Egypt and Morocco to drive growth this year after the low-cost carrier posted its biggest profit on record. The shares rose as much as 2.3 percent in Dubai and were headed for their highest close in a year. The airline s full-year profit attributable to owners of the company rose 29 percent to 631 million dirhams ($172 million), helping it raise dividend to 10 fils a share from 7 fils a year ago. Emaar Malls records 11% increase in net profit, The Dubai Mall, the flagship retail and leisure destination of Emaar Malls, welcomed 80 million visitors in Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties PJSC, recorded a net profit of AED billion (US$ 566 million) in 2017, 11 per cent higher than the net profit of AED billion (US$ 510 million) during Revenue for full-year 2017 was AED billion (US$ 988 million), a growth of 12 per cent over 2016 revenue of AED billion (US$ 879 million). In the fourth quarter of 2017 (October to December), Emaar Malls recorded a net profit of AED 574 million (US$ 156 million), 18 per cent higher than the Q (July to September) net profit of AED 485 million (US$ 132 million), and 27 per cent higher than Q net profit of AED 452 million (US$ 123 million).revenue for Q was AED billion (US$ 307 million), 29 per cent higher than the Q revenue of AED 876 million (US$ 238 million), and 35 per cent higher than the Q revenue of AED 835 million (US$ 227 million).

4 DXB Entertainments Is Said Seeking to Restructure $1.15 Billion, Dubai s DXB Entertainments PJSC is talking to banks to restructure $1.15 billion in loans used to build a theme park in the emirate after visitor numbers missed expectations, according to people familiar with the matter. The theme park operator is seeking to reschedule the loan it signed in2014 and is asking lenders to freeze payments for three years and make higher repayments after that, the people said, asking not to be identified because the talks are private. The facility matures in 2026, according to data compiled by Bloomberg. Warren Buffett s commercial insurance unit is expanding into the Middle East as it seeks to win over new clients in the region. Berkshire Hathaway Specialty Insurance Co. said it hired Alessandro Cerase as senior executive officer and Neeraj Yadvendu as his deputy, according to a statement. The insurer set up an office in Dubai International Financial Centre. Dubai will award the first phase of its 15 billion-dirham drainage project by June, Dubai Municipality s director general Hussain Lootah says in an interview on Monday. * Several contractors have bid for the first phase, which has a value of 3b dirhams * The deep tunnel drainage system will be one of the city s biggest infrastructure projects and will be built over 5 years * Says it s designed to serve the city for 100 years and can be expanded as it grows United Arab Bank Full Year Net Income 17 Mln Dirhams, United Arab Bank reported net income for the full year of 17 million dirhams. FY operating income 677 million dirhams, Returns to profit after loss of 523 million in 2016, Provisions for credit losses drop 71% to 289 million. UAE's Finance House FY Profit Falls. FY17 net profit attributable to shareholders 34.3 mln dirhams vs 40.3 mln dirhams year ago. FY17 net interest income, income from islamic financing and investing assets mln dirhams vs mln dirhams year ago Dubai Refreshments FY17 net profit 92 mln dirhams vs 118 mln dirhams year ago. FY17 revenue 871 mln dirhams vs 921 mln dirhams year ago Dubai Trader Gets First Middle East License in Cryptocurrencies, Dubai gold trader Regal RA DMCC is the first company in the Middle East to get a license to trade cryptocurrencies, the Dubai Multi Commodities Centre said.the company will offer storage of Bitcoin, Ethereum and other cryptocurrencies in a vault located in DMCC headquarters in Almas Tower in Dubai, the DMCC said in a statement. Regal RA started trading gold in Dubai in GCC: Salman Abdullah Bin Saedan Real Estate Group is planning a debut issuance of Islamic bonds in the coming months, Reuters reports, citing the bank arranging the sale. Bahrain-based Ibdar Bank will set up $1 billion sukuk program that would be listed on the Irish Stock Exchange with a possible listing on Nasdaq Dubai, says Ikbal Daredia, the bank s senior executive director capital markets and treasury. Proceeds to be used for Saedan s social housing projects Kuwait is seeking as much as 950 million dinars ($3.2 billion) in loans to build new projects in natural gas and solar energy, according to a person familiar with the situation. State energy producer Kuwait Petroleum Corp. is seeking as much as 650 million dinars for the 1-billion dinar onshore importing facility for liquefied natural gas and 300 million dinars for the Dibdibah solar power project. Kuwait is seeking to sell a stake in its stock exchange to an international bourse operator as part of its initial public offering plan. The Capital Markets Authority hired a consortium led by Tri International

5 Consulting Group to advise on selling as much as 44 percent of Boursa Kuwait to an exchange operator, according to a statement. Another option would be a sale to a venture between Kuwait-listed companies and a foreign bourse operator. Kuwait expects world oil demand to increase by ~1.6m b/d this year, Oil Minister Bakheet Al-Rashidi tells reporters in Kuwait City. * Recent decline in crude prices caused by drop in stock markets, strong dollar and seasonal refinery maintenance; It s a correction only. It will come back * Kuwait expects cooperation on oil policy to continue beyond 2018 * We will look for criteria to make sure the market is stable at all times Saudi Arabia hopes to raise $13 bln by year end from graft purge FT Saudi Arabia has ordered an inventory of all delayed payments to the private sector, state news agency SPA said on Monday, citing a royal decree. The decree urged a quick resolution of outstanding payments. It will also establish a committee headed by the trade and investment minister in charge of gathering data on payment delays to private sector contractors. The committee will look into reasons for the delays and come up with solutions for speedy repayment. Egypt: Average yields on Egypt's five- and 10-year treasury bonds fell at an auction on Monday, central bank data showed. The average yield on the five-year bond fell to percent from percent at the last similar auction. The average yield on the 10-year bond fell to percent from percent. Production from Egypt's huge Zohr offshore gas field in the Mediterranean will reach 2.9 billion cubic feet per day by mid-2019, Italy's Eni ENI.MI said on Monday. Speaking at an industry event in Cairo, CEO Claudio Descalzi said the goal was to reach output of 1.8 bcf to 2 bcf per day by the end of 2018 and then ramp up to 2.9 bcf per day by mid Eastern Tobacco may advance in Cairo after being added to the MSCI Emerging Markets index, according to an statement by the index compiler. EFG-Hermes Holding was cut from the MSCI Global Standard Indexes and added to MSCI Global Small Cap Indexes. U.A.E. s Orascom Construction and Egypt s El Sewedy Electric were deleted from small cap indexes. Saudi Investment Bank was removed from MSCI Saudi Arabia Index. All changes will be implemented as of the close of Feb. 28 SHUAA Capital celebrates the launch of SHUAA Securities- Egypt, Held under the patronage of H.E. Dr. Sahar Nasr, Egypt s Minister of Investment and International Cooperation and attended by officials from Egypt s Central Bank and Financial Supervisory Authority, along with dignitaries and guests from the international banking and finance industry Official launch event coincides with SHUAA Capital s full-year 2017 turnaround results of AED 74 million in profits announced last week. Region: The World Bank's private sector arm urged international companies on Sunday to overcome concerns about funding reconstruction projects in Iraq and seize high-yield investment opportunities in the country. The International Finance Corporation's (IFC) country manager for Iraq, Ziad Badr, was speaking in Kuwait ahead of an international conference this week for donors and investors to rebuild and revive Iraq's economy as the country emerges from a devastating three-war against Islamic State. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

6 Daily Foreign Ownership Increase Company Name Foreign Ownership (%) (%) Shares Mcap (AED) DSI 16.97% ,713,580 3,169,778 RAK Properties 30.18% ,000, ,912 Dubai Nat Ins & Re-Ins 1.07% , ,451 RAK Cement 29.60% ,091 77,136 Amanat 22.10% , ,459 FAB 11.10% ,085,071 12,530,812 Emirates NBD 4.93% ,779 4,779,166 Sharjah Cement 1.06% ,296 65,076 Aldar 26.17% ,263 1,768,899 RAK Ceramics 54.78% , ,050 Daily Foreign Ownership Decrease Company Name Foreign Ownership (%) (%) Shares Mcap (AED) Dar Al Takaful 21.56% (780,000) (618,473) Methaq Takaful Ins % (360,000) (323,965) Marka 15.07% (1,050,000) (570,088) Aramex 62.06% (1,756,920) (7,202,588) Shuaa Capital 17.64% (745,500) (812,507) Arabtec 18.44% (1,050,000) (2,656,211) Air Arabia 24.11% (2,800,020) (3,667,627) DXBE 31.67% (3,999,956) (2,279,727) International Holdings 5.52% (255,000) (359,511) KHCB 7.47% (289,956) (319,145) (Source: ADX, DFM, Bloomberg, Reuters)