Integrated Securities Morning Report 18 December 2018

Transcription

1 Integrated Securities Morning Report 18 December 2018 # Market Stats 1M 3M YTD 1Y # UAE Trading Summary Indices Close Change Change Change Change Change AEDm Buy Sale Net ADX 4, % -3.8% -0.2% 10.6% 10.7% ADX DFM 2, % -7.7% -6.5% -23.9% -24.0% Local 18% 40% -22% TASI 7, % 6.3% 4.3% 10.3% 10.8% Foreign 82% 60% 22% BHSEASI 1, % 0.7% -1.9% -0.9% 4.2% Institution 87% 78% 9% EGX 13, % -5.4% -9.8% -12.0% -10.2% Retail 13% 22% -9% Dow Jones 23, % -7.2% -10.1% -4.6% -4.8% DFM S&P 500 2, % -7.0% -12.3% -4.8% -5.4% Local 54% 61% -7% Nasdaq 6, % -6.8% -15.1% -2.2% -3.4% Foreign 46% 39% 7% FTSE 100 6, % -3.4% -7.2% -11.9% -10.1% Institution 41% 52% -11% DAX 10, % -5.0% -11.4% -16.6% -19.1% Retail 59% 48% 11% CAC40 4, % -4.5% -10.5% -9.7% -11.5% Total Nikkei225 21, % -2.5% -9.7% -7.1% -7.7% Local 36% 50% -14% HIS 25, % -1.3% -4.5% -13.6% -11.0% Foreign 64% 50% 14% # Upcoming Corporate Actions & Events Date Company Event 18-Dec Amlak B. Meeting/Operations 19-Dec Marka B. Meeting/Operations 23-Dec Salama G. Assembly 23-Dec ADNH B. Meeting/Operations 29-Dec Invest Bank GM/Capital Changes 30-Dec Gulfa S. Meeting/ S. Resolution

2 # KEY STORIES SUMMERY Emirate of Sharjah Reopens 10-Year Sukuk to Raise $200 Million Sudatel Telecom Group says NTC grants frequencies within 700 spectrum Adnoc Distribution eyes expansion in fuel stations in 2019 Top US official backs DP World in Djibouti port dispute DP World seeks to quash India antitrust probe over Mumbai port-court filing Overseas investors in Dubai s main stock exchange were net sellers of 853 million dirhams ($232 million) of shares as of the end of last week DAE announces portfolio sale of 18 aircraft Ajman gov't sets $1.13bn budget for Dubai CPI +0.5pct y/y; housing and utility costs down 4.7pct, biggest drop this year UAE M3 money supply +6.6pct in November Saudi Arabia is set to announce its 2019 budget today. Saudi Arabia Fertilizers board proposes H2 cash dividend of 1.5 riyals per share Saudi s Sahara petrochemical buys 24mln shares in Khair Inorganic Chemical Industries Oman Conventional Banks lending +5.3pct y/y in October Moody's changes outlook on Bahrain's rating to stable, affirms B2 rating Qatar denies reported plans to raise stake in Deutsche Bank Egypt's El Sewedy to form new company or open branch in Tanzania Al Baraka Bank Egypt updates on impact of proposed tax amendment Lebanese pound overnight interbank rate falls to 15%

3 # Key Global Trends/ Market Clues Asian share markets slumped on Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.3 percent in mid-morning trade while Japan's Nikkei tumbled 1.2 percent by the midday break. Oil prices dropped over 1 percent on Tuesday, falling for a third straight session, as reports of inventory builds and forecasts of record shale output in the United States, currently the world's biggest producer, stoked worries about oversupply. Concerns around future oil demand amid weakening global economic growth and doubts over the impact of planned production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) were also pressuring prices, traders said. International benchmark Brent crude oil futures were at $58.90 per barrel at 0340 GMT, down 71 cents, or 1.2 percent, from their last close. Prime Minister Theresa May said on Monday she would bring her Brexit deal back to parliament for a mid- January vote, pledging to get assurances from the European Union before then to break a deadlock over Britain's fraught efforts to quit the bloc. # UAE Stories The government of Sharjah has raised $200 million by issuing more of the 10-year Islamic bonds it sold in March. The third-largest sheikdom in the United Arab Emirates tapped its $1 billion, percent sukuk due in 2028, a government official said. The funds were raised in a private placement arranged by Sharjah Islamic Bank, Arab Banking Corp. BSC and Noor Bank PJSC, and the proceeds will be used for general budgetary purposes. Sudatel Telecom Group disclosed that NTC grants company frequencies within the 700 spectrum, which will be used to enhance and develop current 4g network and operate 5g in near future. Adnoc Distribution is eyeing further network growth in fuel service stations in 2019 as it focuses on expansion to grow its business. In a statement on Monday, the fuel and retail arm of Abu Dhabi National Oil Company announced the opening of a fuel service station with retail offerings at Dubai Investment Park for the first time.

4 DP World has welcomed comments from US National Security Adviser John Bolton in support of the port operator's continuing dispute with the Government of Djibouti. Bolton backed DP World's plight at the Heritage Foundation when he presented the US Administration s new strategic policy on Africa. Bolton highlighted and criticized in particular the Government of Djibouti s autocratic actions earlier this year in expropriating illegally, the Doraleh Container Terminal. DP World has approached an Indian court to quash an antitrust investigation recently ordered to probe its alleged anti-competitive behavior at the country's largest container port in Mumbai. The Competition Commission of India last month said it suspected alleged antitrust violations by DP World and Denmark's A.P. Moller-Maersk at the terminals they operate at state-owned Jawaharlal Nehru Port Trust. Overseas investors in Dubai s main stock exchange were net sellers of 853 million dirhams ($232 million) of shares as of the end of last week, the most for a single year since the data started being provided. The category excludes investors from the six-nation Gulf Cooperation Council and other Arab countries. Dubai Aerospace Enterprise (DAE), one of the largest aircraft leasing companies in the world, has entered into a definitive sale agreement to sell a portfolio of 18 mid-life aircraft to institutional investors. Sheikh Humaid bin Rashid Al Nuaimi, Ruler of Ajman, has approved the general budget of the Ajman Government for The budget amounts to AED4.14 billion ($1.13 billion), a growth of 17 percent, with the budget for the 2019 fiscal year set at AED1.38 billion ($380 million) and without a deficit. UAE M3 money supply +6.6pct in November. Dubai CPI +0.5pct y/y; housing and utility costs down 4.7pct, biggest drop this year. # GCC/ MENA audi Arabia is set to announce its 2019 budget today. The government is likely to opt for another dose of stimulus, sustaining non-oil growth at above 2%. Higher oil prices mean the 2018 deficit will be smaller than budgeted, despite a spending overrun. Here are four things to watch for in the budget announcement:

5 Saudi Budget Numbers Saudi Arabia Fertilizers board proposes H2 cash dividend of 1.5 riyals per share. Saudi s Sahara petrochemical buys 24mln shares in Khair Inorganic Chemical Industries. Oman Central Bank foreign assets 6.09 billion rials in October. Oman Oct M2 money supply +3.8 percent y/y and conventional banks lending +5.3pct y/y. Moody's changes outlook on Bahrain's rating to stable, affirms b2 rating. Moody's says Bahrain's Govt & external liquidity risks have materially reduced however, it expects that external vulnerability will remain very high. Moody's says Bahrain's Govt debt metrics will continue to deteriorate, albeit more slowly than previously envisaged. Qatar Financial Centre released a statement on Monday distancing itself from a newspaper report, which said it planned to raise its stake in Deutsche Bank. El Sewedy Electric board approves to form a new company independently or in partnership with others or to enter as partner or open new branch in Tanzania. Decision to form company is related to EPC contract for Rufiji Dam and Hydropower Plant Project. Al Baraka Bank Egypt says proposed tax amendment will not have an effect on 2018 financial results. The bank expects 5 to 7pct decline in 2019 projected profits. The overnight interbank rate for Lebanese pounds fell to 15 per cent on Monday thanks to increased liquidity, two banking sources said, after last week spiking to 75 per cent, its highest rate since a political crisis last year. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

6 # UAE FOCUS LIST - COMPANY DATA MCAP PRICE HIGH - LOW VALUATION HISTORICAL RETURN Company (AEDm) (AED) 52WH 52WL TTM P/E TTM P/B 1M% 3M% 6M% 12M% ADCB 42, % 2.9% 12.2% 18.4% ADIB 14, % 9.8% 7.2% 9.8% ADNIC 1, % 4.0% 1.3% 14.7% Agthia 2, % -16.2% -17.9% -17.9% Air Arabia 4, % 2.9% -5.3% -19.8% Ajman Bank 1, % -6.2% -12.8% -22.8% Al Waha Capital 3, % -4.4% 2.9% 0.0% Aldar Properties 12, % -13.4% -24.0% -29.5% Amanat Holdings 2, % -6.6% -13.6% -15.6% Amlak Finance NA % -40.9% -54.3% -64.1% Arabtec 3, % 20.0% -5.4% -12.9% Aramex 6, % 2.5% 6.9% -5.4% Bank of Sharjah 2, % -4.7% -5.6% -16.4% DAMAC Properties 10, % -12.9% -25.4% -47.0% Dana Gas 6, % -18.6% -14.8% 27.8% Dar AL Takaful % -24.1% -30.1% -45.0% Deyaar Development 2, % -17.9% -21.8% -25.8% Dubai Financial Market 6, % -10.2% -21.3% -26.3% Dubai Investment 5, % -31.4% -35.1% -45.9% Dubai Islamic Bank 33, % -1.9% 1.2% -7.6% DXB Entertainments 2, NA % -20.6% -28.6% -57.3% Emaar Dev 17, % -11.0% -11.0% -13.0% Emaar Malls 22, % -3.3% -18.9% -17.8% Emaar Properties 30, % -8.7% -20.8% -35.1% Emirates Integrated Tele 22, % -2.0% 0.2% -2.2% Emirates NBD 48, % -1.1% -13.0% 7.4% Eshraq Properties 1, % -9.5% -24.3% -27.5% Etisalat 148, % 6.4% 5.7% -2.7% First Abu Dhabi Bank 152, % -1.5% 14.6% 35.1% Gulf Navigation Holding NA % 18.5% 5.2% -20.7% Gulf Pharmaceutical 2, NA % -2.3% -0.5% -4.3% Marka NA NA 0.0% 0.0% 0.0% -51.8% Mashreqbank 12, % 5.8% -2.7% -0.7% National Bank of Fujairah 6, % 32.1% 15.3% -15.9% National Central Cooling Co 4, % 0.0% -7.6% -15.1% RAK Bank 7, % -2.1% -4.1% -10.6% RAK Properties % -20.0% -25.5% -32.8% Ras Al Khaimah 1, % -16.4% -19.7% -24.1% SALAMA % -18.9% 15.6% -0.6% Sharjah Islamic Bank 3, % -5.0% -5.0% -14.9% SHUAA Capital % -20.8% -21.5% -30.6% Takaful Emarat Insurance % -1.7% -8.5% -13.6% TAQA 6, % -12.4% -18.9% 70.7% Union National Bank 13, % -2.2% 34.6% 28.6% Union Properties 1, % -39.6% -47.6% -51.9% United Arab Bank 2, % 0.0% 0.8% -24.1% (Source: Bloomberg)

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