IS Morning Report Wednesday, August 01, 2018

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1 # Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX DFM TASI BHSEASI EGX Dow Jones S&P 500 Nasdaq FTSE 100 DAX CAC40 Nikkei225 HIS 4, % 5.2% 4.0% 10.5% 6.5% ADX , % 3.2% -2.5% -12.3% -19.0% Local 27% 44% -17% 8, % -0.5% 1.7% 14.8% 16.7% Foreign 73% 56% 17% 1, % 3.4% 8.0% 2.0% 2.3% Institutional 83% 70% 13% 15, % -4.7% -14.8% 3.7% 16.3% Retail 17% 30% -13% 25, % 4.7% 5.5% 2.8% 15.7% DFM , % 3.6% 6.1% 5.3% 13.7% Local 34% 49% -15% 7, % 2.2% 7.6% 11.1% 20.6% Foreign 66% 51% 15% 7, % 1.5% 3.0% 0.8% 4.4% Institutional 54% 55% -1% 12, % 4.1% 1.5% -0.9% 4.5% Retail 46% 45% 1% 5, % 3.5% -0.2% 3.7% 7.5% Total , % 2.0% 1.0% -0.1% 13.8% Local 30% 46% -16% 28, % -1.3% -7.2% -4.5% 3.8% Foreign 70% 54% 16% # Upcoming Corporate Actions & Events Date Company Event 1-August TABREED Board Meeting 1-August ARMX Board Meeting 6-August SHUAA Board Meeting 6-August MARKA Board Meeting 6-August AGLTY Board Meeting 7-Aug KHCB Board Meeting 12-Aug ITHMR Board Meeting 13-Aug GFH Board Meeting

2 # Key Stories UAE increases petrol prices for August Dubai crude July average price falls to $73.120/bbl Nasdaq Dubai names 12 firms with $229bn market capitalisation for Saudi futures Abraaj liquidators seek more buyers for fund unit Abraaj lays off more workers as it battles for survival Abraaj founder Arif Naqvi faces new bounced cheque case Amlak first half net profit rises 2% Al Habtoor signs deal to rebrand three Dubai properties as Hilton hotels ADNIC posted profit of AED million, up 17%YoY Finance House posts 1H18 profit of AED 20.4 million Abu Dhabi National Insurance 1H18 profit rises Saudi's PIF aims to raise between $6-8 billion in first loan CEO confirms Credit Suisse seeking Saudi banking license Kuwait's Kufpec signs $1.1 billion finance deal Egypt's M2 money supply up pct year-on year in June Talaat Moustafa Shares Rise as Land Return Spurs Speculation Lebanon economy fragile, needs reform - World Bank official Turkey's Botas hikes natural gas price for power generation by 50 pct # Key Global Trends // Market Clues Asian shares were higher on Wednesday, tracking the firmer Wall Street finish though reports that Washington plans to raise tariffs on $200 billion of Chinese goods have put the focus back on volatile Sino-U.S. trade relations. Global markets inched higher on Tuesday, helped by a Bloomberg report that the U.S. and China were seeking to resume trade talks to defuse the battle over import tariffs. However, later reports that the U.S. plans tariffs of 25 percent on $200 billion in Chinese imports have injected some uncertainty. In Asia, MSCI s broadest index of Asia- Pacific shares outside Japan was up 0.2 percent, while Japan s Nikkei stock index gained 0.6 percent. The Trump administration plans to propose slapping a 25-percent tariff on $200 billion of imported Chinese goods after initially setting them at 10 percent, in a bid to pressure Beijing into making trade concessions, a source familiar with the plan said on Tuesday. Oil prices fell on Wednesday after industry data showed U.S. stockpiles of crude unexpectedly rose, starting the new month in negative territory after the largest monthly decline in two years in July. October Brent crude futures

3 dropped 29 cents, or 0.4 percent, to $73.92 a barrel by 0044 GMT, adding to a 1.8 percent loss in the previous session. # UAE Stories Petrol prices in UAE have been marginally increased for the month of August. Super 98, which earlier cost Dh2.56 per liter, will now cost Dh2.57 a liter, while Special 95 will cost Dh2.46 a liter in August, up from Dh2.45 in July. Unleaded 91 petrol will cost Dh2.38 a liter, up from Dh2.37 in the previous month. Diesel has been priced at Dh2.63, a reduction from Dh2.66 a liter in July. Dubai crude July average price falls to $73.120/bbl Nasdaq Dubai named on Tuesday 12 Saudi listed companies, with a combined market value of 859 billion riyals ($229bn), for which it plans to launch futures as the bourse expands its offerings beyond UAE stocks. The companies, some of them among the largest businesses in the Middle East, are active in sectors from real estate and petrochemicals to banking and transport, Nasdaq Dubai said in a statement. These companies account for 43 per cent of the Saudi stock exchange. The provisional liquidators of Abraaj Group are seeking more bids for the embattled buyout firm s fund-management unit after investors rejected some earlier offers, according to people with knowledge of the matter. Interested buyers have until August 24 to bid for all of the asset-management platform or some of its private equity funds. Abraaj Group has laid off more workers, people familiar with the matter said, as it fights to save itself from becoming one of the buyout industry s largest failures. More than 20 employees were told Tuesday they were being made redundant. Arif Naqvi, founder of the beleaguered private equity firm Abraaj, is facing a fresh charge of bounced cheque, according to lawyers close to the case. Sharjah-based Crescent Group founder Hamid Jafar has filed a $217 million (Dh798m) bounced cheque case against Naqvi. The new case comes after a similar case relating to a cheque bounce of $300 million was settled out of court on July 15. Amlak Finance said on Tuesday its net profit attributable to equity holders during the first half to June rose 2 per cent to Dh10.4 million. Total revenues rose by 10 per cent year on year to Dh203 million. This increase is mainly related to the infrastructure development completion and sales of plots in Nad Al Hamar joint venture. The company recorded an impairment charge of Dh25 million in the first half compared to an impairment reversal of Dh7 million in the same period in Al Habtoor Group, the Dubai conglomerate whose interests span from hospitality and automotive to real estate and publishing sectors, on Tuesday said it will rebrand three of its Dubai properties as Hilton hotels. Habtoor, whose franchise agreement with Hilton will become effective on August 1, will manage the properties in Habtoor City in the emirate. ADNIC posted profit of AED million, up 17%YoY. ADNIC announced results For the six-month period ended June 30th 2018, Net profit increased by 17.1% to AED million, compared to a net profit of AED million for the same period in Abu Dhabi National Insurance 1H18 profit rises. Abu Dhabi National Insurance H1 Profit Rises where the company posted 1H18 net profit of AED million vs AED million a year ago. Finance House posts 1H18 profit of AED 20.4 million. Finance House posts 1H18 profit of AED 20.4 million. The company 1H18 net operating income clocked in at AED million vs AED million a year ago.

4 # GCC/ MENA Saudi Arabia's top sovereign wealth fund is seeking to raise between $6 and $8 billion from banks as it seeks to boost its firepower to help finance the kingdom's economic transformation plans, according to sources familiar with the matter. CEO confirms Credit Suisse seeking Saudi banking license. Credit Suisse Chief Executive Tidjane Thiam personally travelled to Saudi Arabia to apply for a banking license, he said on Tuesday. Kuwait Foreign Petroleum Exploration Company (Kufpec) has signed a $1.1 billion finance deal with a number of banks to help it expand its oil and gas operations, the company's chief executive said on Tuesday. Japan's Sumitomo Mitsui Banking Corporation, First Abu Dhabi Bank, Societe Generale, Japan's Mizuho and Scotiabank are the banks involved in the transaction, according to a company statement. Egypt's M2 money supply grew by percent year-on year in June, data from the central bank showed on Tuesday. M2 grew by percent in May. The money supply at the end of June stood at 3.45 trillion Egyptian pounds ($ billion). Talaat Moustafa Group surges 5.1% to Egyptian pounds in Cairo, its biggest increase since April 4, amid speculation the company will be able to acquire more land in a building project. Lebanon's economy is fragile, unsustainable and needs the state to enact reforms, a senior World Bank official said on Tuesday as the country neared three months without a government since parliamentary elections in May. "Lebanon has been defying gravity for quite some time," World Bank Group Vice President for the Middle East and North Africa Ferid Belhaj said, and a day would come when "gravity materialises". Turkey's state pipeline operator Botas will hike the price of natural gas used for electricity production by 50 percent as of Wednesday, sources said. The price hike was "inevitable" due to a weaker lira pushing oil and natural gas prices higher, as Turkey is mostly dependent on energy imports, energy sources told Reuters. Earlier on Tuesday, the central bank hiked its crude oil price assumption to $73 from $68. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

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