IS Morning Report Tuesday, November 13, 2018

Transcription

1 # Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 4, % -0.3% 3.2% 12.6% 13.4% ADX DFM 2, % 1.7% -1.6% -16.8% -19.4% Local 69% 73% -4% TASI 7, % 3.2% -1.2% 7.6% 11.7% Foreign 31% 27% 4% BHSEASI 1, % -0.6% -2.8% -1.8% 3.6% Institutional 61% 44% 17% EGX 13, % 3.0% -11.9% -8.9% -3.2% Retail 39% 56% -17% Dow Jones 25, % 0.2% 0.8% 2.7% 8.3% DFM S&P 500 2, % -1.5% -3.4% 2.0% 5.5% Local 65% 64% 1% Nasdaq 7, % -3.9% -7.9% 4.3% 6.6% Foreign 35% 36% -1% FTSE 100 7, % 0.8% -7.7% -8.3% -4.9% Institutional 34% 32% 2% DAX 11, % -1.7% -8.4% -12.3% -13.4% Retail 66% 68% -2% CAC40 5, % -0.7% -6.5% -4.8% -5.3% Total Nikkei225 21, % -4.1% -0.4% -4.4% -2.7% Local 68% 70% -2% HIS 25, % -0.8% -8.3% -14.4% -12.3% Foreign 32% 30% 2% # Upcoming Corporate Actions & Events Date Company Event 13-Nov CBI Board Meeting 13-Nov GFH Board Meeting / Results 13-Nov DSI Board Meeting / Results 13-Nov Tabreed Board Meeting / Results 13-Nov DAMAC Board Meeting / Results 13-Nov Air Arabia Board Meeting / Results 13-Nov ITHMR Board Meeting / Results

2 13-Nov GULFNAV Board Meeting / Results 14-Nov Dana Gas Board Meeting / Results 14-Nov ADNOC Board Meeting / Results 14-Nov ALDAR Board Meeting / Results 14-Nov MARKA Board Meeting / Results 18-Nov Dana Gas Board Meeting/ Operations Update # KEY STORIES Aldar awards $91m contract to build phase of Alghadeer mega project DP World says no need for more after listing $3.3b bonds Union Properties posted Q3 loss attributable to shareholders 61.8 mln dirhams vs loss of 45 mln dirhams year ago UAE, Saudi energy giants ink deal aimed at growing gas revenues UAE to list sectors for full foreign investment in 1Q19 Mubadala to buy 20% interest in Egypt's Nour offshore concession from Eni Mubadala to take investment decision on $6bn Pakistan refinery Foreign investments in UAE to grow pct next year - economy minister Ras Al Khaimah Cement posted nine-month net profit 6.7 mln dirhams vs 0.2 mln dirhams year ago Al Firdous Holdings posted Q2 net loss 1.7 mln dirhams vs loss of 2.4 mln dirhams year ago Dubai National Insurance and Reinsurance posted Q3 net profit 11.4 mln dirhams vs 11 mln dirhams year ago AXA Green Crescent posted Q3 profit mln dirhams vs 1.6 mln dirhams year ago BP to spend $2.8bn in Abu Dhabi and Egypt to boost Middle East presence Saudi Aramco CEO says IPO will 'certainly' happen SoftBank seeks Deutsche's advice on Saudi power investments Oman Education and Training Investment proposes FY cash dividend of 15 baisa per share to shareholders Burgan Bank says CMA grants bank approval to issue up to 150 mln dinars senior unsecured bonds in local market Egypt's central bank sells Euros mln in one-year euro-denominated t-bills at 1.75 pct average yield Egypt's Porto Group posted nine-month consolidated net profit after tax EGP mln vs EGP mln year ago Al Tawfeek Company for financial leasing posted nine-month consolidated net profit of EGP 50.6 mln vs EGP 44.1 mln year ago Arab Moltaqa Investments posted nine-month standalone net profit EGP 42.7 mln vs EGP 39 mln year ago

3 Sarwa Capital Holding for Financial Investments posted Q3 consolidated net profit attributable to shareholders EGP mln vs EGP 47.3 mln year ago Beltone Financial Holding posted nine-month standalone net loss EGP 23.1 mln vs loss of EGP 8.3 mln year ago Suez Canal Bank posted Q3 net profit EGP mln vs EGP 94.6 mln year ago # Key Global Trends/ Market Clues Asian shares skidded on Tuesday, pressured by a tech rout on Wall Street and a slump in oil prices, while political risks in Europe buoyed the dollar as investors dumped riskier assets. Fears of a likely peak in corporate earnings growth, softening global demand and faster rate hikes in the United States have put global investors on edge over the past month, prompting them to take money off the table before year end. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.4 percent to a 1-1/2 week low. Oil prices fell by around 1 percent on Tuesday, with Brent crude sliding below $70 and WTI below $60 per barrel, after U.S. President Donald Trump put pressure on OPEC not to cut supply to prop up the market. U.S. West Texas Intermediate crude oil futures were at $59.15 per barrel at 0214 GMT, down 78 cents, or 1.3 percent from their last settlement. Saudi Energy Minister Khalid al-falih said on Monday OPEC and its allies agree that technical analysis shows a need to cut oil supply next year by around 1 million barrels per day (bpd) from October levels to balance the market. Speaking at an industry event in Abu Dhabi, he said demand from Saudi Arabia's customers in December would fall by more than half a million bpd compared with November and there was a consensus not to allow oil inventory to build up. Turkey's current account registered a surplus of $1.83 billion in September, the second consecutive monthly surplus, central bank data showed on Monday, as the high cost of foreign goods and a slowing economy continued to put pressure on imports. Along with persistent double-digit inflation, Turkey's current account balance has for a long time been one of the main sources of concern for investors. It means the economy relies on speculative foreign inflows to finance the shortfall. # UAE Stories Aldar Properties has announced the appointment of Al Rakha Contracting and General Transport as the main contractor for infrastructure buildings and early works package for the first neighbourhood in the second phase of Alghadeer. The AED335 million ($91.2 million) contract comprises construction of 707 maisonettes, townhouses and villas following site preparation work. DP World listed its four multi-currency, tenor bonds, the first in the region, on Nasdaq Dubai, and its chairman ruled out the possibility of another bond issue in the near-term. DP World listed 3 conventional bonds and a sukuk, whose total worth was $3.3 billion (Dh12.12 billion). They comprised of 10 year $1 billion sukuk and 3 conventional bonds of $1 billion for 30 years, and 750 million euros (Dh3.1 billion) of 8 years, and 350 million pounds maturing in 12 years. Union Properties posted Q3 loss attributable to shareholders 61.8 mln dirhams vs loss of 45 mln dirhams year ago. Q3 total income clocked in at mln dirhams vs mln dirhams year ago. Abu Dhabi National Oil Company (ADNOC) signed on Monday a framework agreement with Saudi Aramco to explore potential opportunities for collaboration in the natural gas and liquefied natural gas (LNG) sectors.

4 The United Arab Emirates (UAE) government early next year aims to publish a list of the sectors in which it will permit foreign ownership of up to 100 percent, the economy minister said on Monday. Mubadala Investment Company's oil business has agreed to buy a 20 percent participating interest in Egypt's Nour North Sinai Offshore Area concession from Italy's Eni, it said on Monday. Eni, which operates the concession through a subsidiary, holds an 85 percent interest in partnership with Tharwa Petroleum Company, which holds a 15 percent interest. Mubadala's Petroleum and Petrochemicals division is finalising an investment decision on the planned Pak Arab Refinery in Pakistan by the end of 2019, a project that could cost up to $6 billion (Dh22.04bn), its chief executive said on Monday. Foreign investments in UAE to grow pct next year - economy minister. Ras Al Khaimah Cement posted nine-month net profit 6.7 mln dirhams vs 0.2 mln dirhams year ago. Al Firdous Holdings posted Q2 net loss 1.7 mln dirhams vs loss of 2.4 mln dirhams year ago. Dubai National Insurance and Reinsurance posted Q3 net profit 11.4 mln dirhams vs 11 mln dirhams year ago. AXA Green Crescent posted Q3 profit mln dirhams vs 1.6 mln dirhams year ago. Oil major BP aims to spend $1.8 billion in Egypt next year and $1bn annually in Abu Dhabi as it looks to expand its operations in the Middle East on the back of new discoveries and licensing rounds, according to its chief executive. # GCC/ MENA Saudi Aramco Chief Executive Officer Amin Nasser said the initial public offering of the state-oil producer will certainly happen when the conditions are right. Saudi Aramco said it is still in discussions to buy a stake in petrochemicals company Saudi Basic Industries Corp. (Sabic) from the kingdom s sovereigh wealth fund, the Public Investment Fund, he said at a conference in Abu Dhabi. SoftBank has hired Deutsche Bank to advise on its power investment plans in Saudi Arabia, two sources familiar with the matter said. The Japanese firm, which is planning to invest in a giant solar power plant in the kingdom, has also shown interest in electricity distribution in the world's top oil exporter. Oman Education and Training Investment proposes FY cash dividend of 15 baisa per share to shareholders. Burgan Bank says CMA grants bank approval to issue up to 150 mln dinars senior unsecured bonds in local market. Egypt's central bank sells Euros mln in one-year euro-denominated t-bills at 1.75 pct average yield. Egypt's Porto Group posted nine-month consolidated net profit after tax EGP mln vs EGP mln year ago. Al Tawfeek Company for financial leasing posted nine-month consolidated net profit of EGP 50.6 mln vs EGP 44.1 mln year ago. Arab Moltaqa Investments posted nine-month standalone net profit EGP 42.7 mln vs EGP 39 mln year ago. Sarwa Capital Holding for Financial Investments posted Q3 consolidated net profit attributable to shareholders EGP mln vs EGP 47.3 mln year ago. Beltone Financial Holding posted nine-month standalone net loss EGP 23.1 mln vs loss of EGP 8.3 mln year ago.

5 Suez Canal Bank posted Q3 net profit EGP mln vs EGP 94.6 mln year ago. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) 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.