IS Morning Report Wednesday, March 21, 2018

Transcription

1 Global & Regional Benchmarks UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 4, % -1.3% 4.1% 2.9% 0.3% ADX DFM 3, % -3.1% -5.4% -5.6% -8.9% Local 48% 50% -2% TASI 7, % 2.9% 7.1% 6.9% 11.7% Foreign 52% 50% 2% KWSEI 6, % 0.1% 4.6% 4.6% -2.6% Institutional 68% 82% -14% EGX 17, % 12.3% 16.7% 13.9% 32.6% Retail 32% 18% 14% Dow Jones 24, % -0.3% -0.2% 0.0% 19.6% DFM S&P 500 2, % 0.6% 1.2% 1.6% 15.9% Local 58% 43% 15% Nasdaq 7, % 2.0% 5.7% 6.7% 27.1% Foreign 42% 57% -15% FTSE 100 7, % -3.0% -7.1% -8.1% -4.3% Institutional 50% 48% 2% DAX 12, % -1.3% -6.1% -4.7% 2.9% Retail 50% 52% -2% CAC40 5, % -0.9% -2.5% -1.1% 5.0% Total Nikkei225 21, % -2.7% -6.5% -6.1% 9.9% Local 53% 47% 7% HIS 31, % 1.6% 8.7% 6.7% 29.8% Foreign 47% 53% -7% Upcoming Corporate Actions & Events Date Company Event 21-March Dar Al Takaful Board Meeting 21-March Ajman Bank AGM 21-March DU AGM 22-March DSI Board Meeting 22-March Emaar Malls Board Meeting 25-march DP World Board Meeting 27-March Emirates NBD General Meeting Key Stories

2 Emaar and Aldar to launch joint projects worth up to $8.2 bln First Abu Dhabi Bank gains Saudi commercial license Mubadala fund in talks to buy renewable energy arm of Brazil's QGEP UAE seeks exemption from U.S. tariffs on steel, aluminium Masharie Sells 50% Stake in Dubai International Driving Center FDI inflows in UAE rose in EIU Noble Group hit by lawsuit amid crucial debt restructuring OPEC, Non-OPEC Committee Said to See Market Re-Balancing by 3Q. Saudi finance ministry sells 4.9 bln riyals of domestic sukuk Trump praises U.S. military sales to Saudi as he welcomes crown prince Egypt court orders suspension of Uber, Careem services in victory for taxis Al-Futtaim investment in Cairo Festival City to reach $1.7 bln by 2023 Global Markets Wrap: The market seems to be convinced that the Fed will announce a quarter point hike at 1800 GMT, but are less sure if it will signal three or four for the year as a whole. U.S. President is expected to unveil up to $60 billion in import duties on Chinese goods by Friday. The move comes after Trump imposed tariffs on imported steel and aluminium earlier this month. To add to these concerns, a meeting of finance ministers and central banks of the world's 20 biggest economies this week failed to diffuse the threat. Oil prices rose on Wednesday, lifted by tensions in the Middle East and healthy demand, although rising U.S. output continued to weigh on markets. WTI crude futures were at $63.80 a barrel at 0230 GMT, up 26 cents, or 0.4 percent, from their previous close. Saudi Arabia's Crown Prince Mohammed bin Salman on Tuesday arrived in Washington for a state visit, raising speculation the United States could reimpose sanctions on Iran, following rewnewed criticism of the 2015 nuclear deal. Should the United States reimpose sanctions against Iran, energy consultancy FGE said that would likely result in a 250,000 to 500,000 barrels per day (bpd) drop in its exports by year-end. UAE: Emaar Properties and Aldar Properties signed a joint venture agreement on Tuesday to develop local and international projects worth as much as 30 billion dirhams ($8.2 billion). The state-linked developers will work together to develop the "world s next era of iconic destinations that will shape" the UAE's skyline, the Dubai Media Office said in a statement. Dubai-listed Emaar and Abu Dhabi-listed Aldar will initially work as partners on a mixedused development on Abu Dhabi's Saadiyat Island and on a private, artificial island in Dubai. Saadiyat Grove, near Abu Dhabi's recently opened Louvre museum, will open in 2021 with nearly 2,000 residential units, two hotels, and 400 service apartments, the statement said. First Abu Dhabi Bank (FAB)FAB.AD, the largest bank in the United Arab Emirates by assets, has been granted a commercial banking licence in Saudi Arabia, it said on Tuesday. The licence from the kingdom's central bank, which

3 allows FAB to operate up to three branches, follows last month's granting of a licence to conduct arranging and advising activities in the securities business. United Arab Emirates's sovereign wealth fund Mubadala Development FundMUDEV.UL is close to a deal to buy Queiroz Galvao Energia SA, the renewable energy arm of Brazil's Queiroz Galvao Participacoes, Brazilian newspaper Valor Economico reported on Tuesday. Citing sources close to the deal, Valor said the purchase would be valued at around 4 billion reais ($1.2 billion). Mubadala has partnered with Castlerock Asset Management Inc., the report added. The United Arab Emirates is asking Washington to exempt it from new U.S. tariffs on aluminium and steel and believes it has a strong case, a senior government official said on Tuesday. U.S. President Donald Trump is pressing ahead with imposing import tariffs of 25 percent on steel and 10 percent on aluminium, but has already exempted neighbouring Canada and Mexico and offered to exclude allies. Masharie LLC has sold a 50% stake in Dubai International Driving Center, LLC, a training center operator for driving instructors, employees in the freight industry and public transport industry, for a consideration of AED35 million (USD9.53 million). Masharie is a private equity firm and operates as a subsidiary of Dubai Investments PJSC, a diversified investment company based in the UAE. According to figures released by the International Institute of Finance, a global association of financial institutions, the UAE received US$11bn of inward foreign direct investment (FDI) in 2017, up from US$8.9bn in Goldilocks Investment Co, a leading shareholder of Noble Group Ltd, has filed a lawsuit with the Singapore High Court against the commodities trader and some of its former and current senior executives, alleging they inflated Noble's assets. "We have filed it today," Daniel Chia, a Morgan Lewis Stamford lawyer who is representing Goldilocks, an Abu Dhabi Financial Group equity fund, said late on Tuesday. The move comes days after Singaporelisted Noble said it would not make the redemption payment for its $379 million bonds which matured on Tuesday. Noble is seeking a $3.4 billion debt restructuring that is crucial for its survival. GCC/ MENA: OPEC, Non-OPEC Committee Said to See Market Re-Balancing by 3Q. The latest discussions of the Joint Technical Committee of OPEC and non-opec nations in Vienna concluded that the oil market will re-balance between 2Q and 3Q as global inventories shrank further in February, people familiar with the matter say. NOTE: JTC had previously concluded that re-balancing would occur between 2Q or 3Q at the earliest Saudi Arabia's government sold 4.85 billion riyals ($1.29 billion) of domestic sukuk in a monthly sale by re-opening an issue originally made in January, the Ministry of Finance said on Tuesday. The ministry sold 2.60 billion riyals of five-year sukuk, 1.85 billion riyals of seven-year and 0.40 billion riyals of 10-year. Last month, the ministry sold 7.22 billion riyals of domestic sukuk. U.S. President Donald Trump gave a warm welcome to Saudi Arabia's powerful Crown Prince Mohammed bin Salman on Tuesday and credited U.S. defense sales to the Saudis with boosting American jobs, even as Riyadh's involvement in Yemen's civil war faced criticism. Egypt suspended the licences of ride-hailing companies Uber and Careem on Tuesday, in a court ruling after taxi drivers sought to shut down the two firms' operations in the country, judicial sources said. Forty two Egyptian taxi drivers filed a lawsuit a year ago against U.S.-based Uber and its Dubai-based competitor Careem, arguing they were illegally using private cars as taxis. They also claimed that the two firms were registered as a call centre and an internet company, respectively. Dubai-based Al-Futtaim real estate expects to invest 30 billion Egyptian pounds ($1.7 billion) by 2023 in Cairo Festival City, a mall in Egypt, almost double it had initially planned, its managing director said on Tuesday. A third of the

4 investments will come from loans while the rest will be funded by the company, Ashraf Ezzeldin said at a news conference. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) Daily Foreign Ownership Increase Company Name Foreign Ownershp (%) (%) Shares Mcap (AED) Dubai Isl. Ins 12.65% , ,102 Al Madina 25.43% , ,130 Islamic Arab Ins % , ,943 Aramex 62.06% ,230 1,910,494 Shuaa Capital 18.06% , ,762 GFH 72.74% ,037 1,068,177 Union Properties 24.34% , ,160 Emaar Malls 10.07% ,301,430 2,875,925 IFA 2.03% ,289 25,243 Marka 14.82% ,000 26,348 Daily Foreign Ownership Decrease Company Name Foreign Ownershp (%) (%) Shares Mcap (AED) Methaq Takaful Ins % (105,000) (87,143) Al Waha Capital 8.24% (919,254) (2,099,904) DXBE 31.16% (3,199,965) (1,708,642) Al Salam Group Hold 16.71% (107,856) (55,729) Manazel 20.33% (1,040,000) (582,352) Air Arabia 23.15% (1,400,010) (1,791,866) Deyaar Dev 11.21% (1,733,400) (852,763) Tabreed 46.94% (814,054) (1,295,202) Emaar Properties 37.26% (1,431,948) (8,505,075)

5 Amlak Finance 20.83% (295,000) (263,978) (Source: ADX, DFM, Bloomberg, Reuters) 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.