Integrated Securities Morning Report 17 December 2018

Transcription

1 Integrated Securities Morning Report 17 December 2018 # Market Stats 1M 3M YTD 1Y # UAE Trading Summary Indices Close Change Change Change Change Change AEDm Buy Sale Net ADX 4, % -4.4% -1.1% 9.8% 11.1% ADX DFM 2, % -8.0% -7.1% -24.1% -24.0% Local 66% 71% -5% TASI 7, % 3.2% 3.9% 9.4% 11.5% Foreign 34% 29% 5% BHSEASI 1, % 0.7% -1.9% -0.9% 4.2% Institution 67% 74% -8% EGX 12, % -5.0% -11.3% -13.5% -11.7% Retail 33% 26% 8% Dow Jones 24, % -5.2% -7.5% -2.5% -2.2% DFM S&P 500 2, % -5.0% -10.0% -2.8% -2.8% Local 78% 72% 5% Nasdaq 6, % -4.7% -12.5% 0.1% -0.4% Foreign 22% 28% -5% FTSE 100 6, % -2.4% -6.3% -11.0% -8.6% Institution 54% 61% -7% DAX 10, % -4.2% -10.2% -15.9% -17.1% Retail 46% 39% 7% CAC40 4, % -3.4% -9.3% -8.6% -9.3% Total Nikkei225 21, % -0.7% -6.8% -5.4% -4.5% Local 74% 72% 2% HIS 26, % -0.3% -3.1% -12.8% -9.5% Foreign 26% 28% -2% # Upcoming Corporate Actions & Events Date Company Event 17-Dec Dubai Investments B. Meeting/Operations 17-Dec UNB B. Meeting/Operations 18-Dec Amlak B. Meeting/Operations 19-Dec Marka B. Meeting/Operations 29-Dec Invest Bank GM/Capital Changes 30-Dec Gulfa S. Meeting/ S. Resolution

2 # KEY STORIES SUMMERY Dana Gas buys back sukuk of about $12 million Etisalat updates on impact of Saudi's Mobily agreement with Ministry of Finance, Ministry of Communications and Information Technology, CITC Invest Bank seeks shareholders approval to increase capital UAE Central Bank to support Invest Bank in capital infusion Dubai Investments Park Is Said to Hire HSBC, Citigroup for Sukuk Shuaa Capital commences post-acquisition integration with Kuwait's Amwal Manazel Real Estate signs deal with Orbital Education, Orbital will lease and manage 2 schools for period of 25 years U.A.E. Appoints Hareb Al Darmaki as Central Bank Chairman Dubai's DED issues 1,748 new licenses in November Saudi Arabia slams US Senate vote as 'interference' Saudi exchange reports 12.1mln riyals in foreigners net sales last week Saudi's Mobily agrees to settle disputes in connection with Govt. Royalties Saudi Telecom signs settlement on commercial service provisioning fee Zain Saudi updates on annual royalty consolidation Oman Oil Ministry signs exploration pact with Occidental for concession Areas 51, 65: ONA Qatar Petroleum to invest $20bln in U.S. in major expansion Egypt to provide 20bn Egyptian pounds to support microfinance, official says China's $20 billion new Egypt capital project talks fall through Egypt's Sodic posted nine-month consolidated net profit EGP 612.9mln vs EGP 507.7mln year ago Egypt's Arabiyya Istithmaraat s shareholders approve capital decrease Export Development Bank of Egypt posted Q1 consolidated net profit after tax EGP 302.9mln vs EGP 199.6mln year ago Orascom Investment to provide services to visitors of Pyramids of Giza Egypt s Sodic nine-month consolidated net profit EGP 612.9mln vs EGP507.7mln year ago

3 # Key Global Trends/ Market Clues Asian share markets began the week on a cautious note after soft economic data from China and Europe added to evidence of cooling global growth and reinforced anxiety over the broadening impact of international trade frictions. MSCI s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent in early Monday trade, led by losses in China and Hong Kong. Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months. International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close. Britain's government is not preparing for a second referendum on Brexit, ministers said on Sunday, sticking to the script that Prime Minister Theresa May's deal could still pass through parliament with a few changes. May delayed a vote last week on her agreement to leave the European Union because she was set to lose in parliament and has tried to secure "assurances" from the bloc to try to better sell it to skeptical lawmakers. Brussels said last week it was ready to help but warned her that she could not renegotiate the deal. # UAE Stories Etisalat updates on impact of Saudi's Mobily agreement with Ministry of Finance, Ministry of Communications and Information Technology, CITC. Etisalat has 27.99% stake in Saudi Mobily. Etisalat says that the financial impact of old disputes settlement till 31 Dec 2017 and new mechanism for the calculation of services royalties and licience royalties for fiscal year 2018 will be insignificant on Etisalat Group s financials since Mobily s existing provisions offset significant portion of impact in Etisalat group s net profit for the coming few years is expected to be negatively impacted - by an estimated amount between AED m per year - from the new mechanism of calculation of service royalties and license royalties in Saudi Arabia. The financial implications on Etisalat Group s financial statements are still subject to the review and validation of the external auditors and the final impact will be disclosed to the market as part of the year-end financial disclosures. Dana Gas buys back sukuk of about $12 million. The company says buyback of approx. USD12 million of 4% Nile Delta Sukuk ltd certificates. The bought back sukuk will be delivered to Bank of New York Mellon in due course for effecting cancellation. Post cancellation of sukuk, total outstanding of 4pct Nile Delta Sukuk ltd certificates would be about $404mln. Invest Bank calls shareholders meeting on Dec 29 to approve increase in issued share capital in two phases. Capital increase in first phase to be by entry of Government Of Sharjah as strategic investor with majority shareholding and in 2nd phase, capital will be increased for all shareholders after effecting entry of strategic investor. The Central Bank of the UAE said on Sunday that it would support Invest Bank with all the available liquidity facilities while the bank is attempting to get fresh capital infusion. The CBUAE said in statement on Sunday that it is closely monitoring Invest bank s financial developments for some time and has been working with the bank and the Government of Sharjah to develop a plan to strengthen its capital base. Dubai Investments PJSC s property unit hired HSBC Holdings Plc and Citigroup Inc. to sell Islamic bonds early next year as it seeks to refinance an existing sukuk, according to people with knowledge of the plans. Dubai Investments Park Development Co., which develops and manages property for the holding company, is also working with First Abu Dhabi Bank PJSC, Emirates NBD PJSC and Dubai Islamic Bank PJSC to place the fiveyear notes, said the people, asking not to be identified because the information is private. The sale could raise about $500 million, one of the people said. The DIP sukuk 2014 is maturing in February 2019 and DIPDC is considering refinancing the sukuk through various means including a potential sukuk issuance, Khalid Bin Kalban, chief executive officer and managing director of Dubai Investments, said in an ed statement without giving further details.

4 Shuaa Capital commences post-acquisition integration with Kuwait's Amwal. Manazel Real Estate signs deal with Orbital Education; Orbital will lease and manage 2 schools for period of 25 years. The United Arab Emirates named Hareb Masood Al Darmaki as chairman of the central bank and Abdul Rahman Al Saleh as vice chairman. They have four-year terms, state-run WAM news agency reported. Governor Mubarak Al Mansoori kept his position. Al Darmaki succeeds Khalifa Al Kindi. Other members of the board include: Younis Haji Al Khoori, Khaled Mohammed Salem Belama, Khaled Al Tayer, Mohammed Al Rumaithy. The Business Registration and Licensing, BRL, sector in the Department of Economic Development, DED, Dubai, has issued 1,748 new licenses during November 2018, as Dubai remained a destination of choice for investment in diverse business sectors. # GCC/ MENA Saudi Arabia slams US Senate vote as 'interference' Saudi exchange reports 12.1mln riyals in foreigner s net sales last week. Saudi's Mobily reaches agreement with MOF, MCIT and CITC to settle all old disputes with Government royalties up to end of The agreement to define a new mechanism for the calculation of service royalties and license royalties, starting from 2018 onwards. New Royalty mechanism will consist of annual service royalty equal to 10% of the annual net telecommunication revenues and will consist an annual license royalty equal to 1% of the annual net telecommunication revenues. Saudi's Mobily says new royalty mechanism is not expected to have material impact on 2018 financials as its impact will be compensated by reversal of existing provisions. Starting from 2019, impact represents an additional cost estimated to be in range of mln riyals per year over next few years. Saudi Telecom disclosed that comprehensive settlement agreement have been signed with government agencies related to the commercial service provisioning fees. Saudi telecom to settle outstanding dispute on commercial services provisioning fees provided by company, licenses fees granted to company from Jan 1, 2008 till 31 Dec Saudi Telecom in return shall develop infrastructure of network through injection of capital investments during period of 3 years starting this year. Agreement also includes amendment of mechanism for calculating commercial services provisioning fees starting Jan 01, 2018 and fees will be 10pct of net revenues from telecommunications services provide by co instead of the current calculation mechanism. Mobile Telecommunications Company Saudi Arabia signs agreement with Government Agencies, which includes consolidation of annual royalty for commercial service and settlement of disputed amounts. The company says consolidation of the annual royalty for commercial service and the settlement of disputed amounts for the period from 2009 to To consolidate annual royalty fee and reducing it to 10 percent from 15 percent of net revenues starting from Jan 01, Under settlement condition, Zain further invests in expanding its infrastructure in addition to other conditions over the next 3 years. Expects financial impact of applying unified annual royalty fees from Jan 01, 2018 to Sep 30, 2018 resulting in decrease of 220 million riyals. Amendment will be reflected in next financial results, also anticipates positive future financial impact from reduction in annual royalty fees. Financial impact from settlement of disputed annual royalty fees for 2009 to 2017 is expected to reach SAR1.7 billion over next 3 years. Oman Oil Ministry Signs Exploration Pact With Occidental for Concession Areas 51, 65: ONA Qatar Petroleum (QP) is looking to invest at least $20 billion in the United States over the coming few years, its chief executive told Reuters, after the Gulf Arab state unexpectedly quit OPEC this month. The Central Bank of Egypt plans to spend 20 billion Egyptian pounds (Dh4bn) on microfinance projects as part of efforts to create jobs and boost the largest economy in North Africa, its central bank governor said on Sunday.

5 Talks between Egypt and Chinese builder CFLD for a $20 billion development in the new administrative capital have fallen through over disagreements on how to share revenue from the project, Egyptian officials said. Two years of tough negotiations ended after Egyptian authorities sent a response to the final proposal by the Shanghai-listed China Fortune Land Development Co. on developing 15,000 acres (6,070 hectares) over 25 years in the new capital east of Cairo. Egypt's Sodic posted nine-month consolidated net profit EGP 612.9mln vs EGP 507.7mln year ago. Egypt's Arabiyya Istithmaraat s shareholders approve authorized capital decrease to EGP 1.4bln from EGP6bln. Shareholders approve issued capital decrease to EGP 144.2mln from EGP 480.6mln. The company says capital reduction is to eliminate accumulated losses and allow future dividends. Export Development Bank of Egypt posted Q1 consolidated net profit after tax EGP 302.9mln vs EGP 199.6mln year ago. Orascom Investment Holding signs agreement with Supreme Council of Antiquities to provide services to visitors of Pyramids of Giza. The company will set up a new company to provide services and Supreme Council of Antiquities will get a fixed amount of over 10pct annually or 50 pct of new company's net profit, whichever higher. Egypt s Sodic nine-month consolidated net profit EGP 612.9mln vs EGP507.7mln year ago. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

6 # UAE FOCUS LIST - COMPANY DATA (Source: Bloomberg)

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