Integrated Securities Morning Report 23 December 2018

Transcription

1 Integrated Securities Morning Report 23 December 2018 # Market Stats 1M 3M YTD 1Y # UAE Trading Summary Indices Close Change Change Change Change Change AEDm Buy Sale Net ADX 4, % -2.3% -0.6% 10.4% 11.7% ADX DFM 2, % -9.0% -9.2% -25.5% -25.4% Local 15% 32% -17% TASI 7, % 3.2% -0.2% 7.3% 7.5% Foreign 85% 68% 17% BHSEASI 1, % 0.0% -1.9% -1.3% 2.6% Institution 86% 78% 8% EGX 13, % -4.3% -6.7% -12.5% -10.4% Retail 14% 22% -8% Dow Jones 22, % -7.6% -15.5% -9.2% -9.3% DFM S&P 500 2, % -8.2% -17.2% -9.6% -9.9% Local 38% 36% 2% Nasdaq 6, % -8.7% -20.8% -8.3% -9.0% Foreign 62% 64% -2% FTSE 100 6, % -3.3% -9.9% -12.6% -11.5% Institution 57% 62% -6% DAX 10, % -5.0% -13.9% -17.7% -18.7% Retail 43% 38% 6% CAC40 4, % -5.1% -14.3% -11.6% -12.5% Total Nikkei225 20, % -6.8% -15.5% -11.4% -11.9% Local 26% 34% -8% HIS 25, % -0.7% -6.3% -13.9% -12.9% Foreign 74% 66% 8% # Upcoming Corporate Actions & Events Date Company Event 23-Dec Salama G. Assembly 23-Dec Amanat B. Meeting/Operations 23-Dec ADNH B. Meeting/Operations 25-Dec DSI B. Meeting/Operations 29-Dec Invest Bank GM/Capital Changes 30-Dec Gulfa S. Meeting/ S. Resolution 06-Feb Khcb B. Meeting/ Results

2 # KEY STORIES SUMMERY Emaar says a deal to sell hotels to ADNH would be worth nearly AED2.2 billion ($600 million) Nasdaq Dubai welcomes listing of $200 million sukuk by Sharjah Shuaa Capital bought back 2.0mln shares at AED0.79/sh on Dec 20 Dubai s GDP grew 2.8 per cent to Dh389.4 billion in 2017 UAE bank lending +3.7 pct y/y while deposits +1.0 pct m/m in November Saudi Aramco, Mitsui, Russia's RDIF in talks to buy Arctic LNG 2 stakes Saudi banks agree $4.5bn settlement over Islamic taxes Saudi's SPIMACO signs 287.1mln riyals loan agreement with SIDF Saudi Kayan Petrochemical announces signing a memorandum of understanding with Clariant international for JV Bahrain November CPI +0.7 pct y/y, while flat m/m Kuwait s Danah Al Safat foodstuff board approves sale of united Danah Fisheries Boursa Kuwait says CMA approves listing of Al Manar Financing & Leasing Kuwait November CPI +0.1 pct y/y, -0.1 pct m/m Commercial Bank of Kuwait shareholders approve not to issue any final budget which includes any impaired loan Egyptian Exchange executes mandatory purchase offer by Polyserve for Fertilizers & Chemicals implemented on 15.98mln shares of Ferchem Masr for EGP 100.9mln Orascom Investment updates on cancellation of sound and light contract to unit Qalaa Holdings Third Quarter Net Income Mln Pounds

3 # Key Global Trends/ Market Clues World stock markets continued a weeklong sell-off on Friday as the threat of a U.S. government shutdown and further hikes in U.S. borrowing costs compounded investor anxiety that global economic growth is slowing. MSCI s index of global equities fell 0.5 percent, dragged down by broad declines in Europe and Asia. The Nasdaq Composite Index confirmed on Friday it is in a bear market for the first time since 2008, underscoring fears that the longest bull run in history for U.S. stocks could soon be over. The index finished the day down 21.9 percent from its Aug. 29 record closing high, exceeding the 20 percent decline considered the threshold for a bear market. Oil prices fell on Friday to their lowest since the third quarter of 2017, heading for losses of more than 11 percent in a week, as global oversupply kept buyers away from the market ahead of holidays over the next two weeks. Brent crude fell 53 cents, or nearly 1 percent, to settle at $53.82 a barrel, after falling during the session to $52.79 a barrel, the weakest since September Oil producer group OPEC plans to release a table detailing voluntary output cut quotas for its members and allies such as Russia in an effort to shore up prices, OPEC's secretary-general said in a letter seen by Reuters on Thursday. Mohammad Barkindo said to reach the proposed cut of 1.2 million barrels per day, the effective reduction for member countries was 3.02 percent. That is higher than the initially discussed 2.5 percent as OPEC seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut. The US Federal Government shut down early Saturday after congressional and White House officials failed to find a compromise on a spending bill that hinged on President Trump s demands for $5.7 billion for a border wall. It is the third shutdown in two years of unified Republican rule in Washington, and it will stop work at nine federal departments and several other agencies. # UAE Stories Emaar Properties said on Thursday that a deal to sell hotels to Abu Dhabi National Hotels (ADNH) would be worth nearly AED2.2 billion ($600 million). The company said in a filing to Dubai Financial Market that the impact of the transaction is expected to be reflected in its first quarter results. The sales price is subject to certain adjustments relating to working capital of these hotels, Emaar said in the statement, adding: There is no separate value for each hotel. Nasdaq Dubai said on Thursday it has listed $200 million (Dh734.5 million) Sukuk issued by Sharjah Emirate. It is the emirate s second Sukuk listing on the exchange this year, following a $1 billion listing in March. The total value of Sukuk listings on Nasdaq Dubai by Sharjah has now reached $2.45 billion, including listings of $750 million and $500 million in 2014 and 2016 respectively. Shuaa Capital bought back 2.0mln shares at AED0.79/sh on Dec 20 The Department of Economic Development (DED) announced the release of the Dubai Economic Report 2018 on Saturday. The report states that Dubai had a gross domestic product (GDP) of Dh389.4 billion in 2017, a growth of 2.8 per cent in constant prices from Dh378.8 billion recorded in UAE bank lending +3.7 pct y/y while deposits +1.0 pct m/m in November. # GCC/ MENA Japan's Mitsui & Co Ltd, Russian sovereign wealth fund RDIF and Saudi Aramco are in talks to buy stakes in Novatek's Arctic LNG 2 project, with the size of the investments still to be decided, sources familiar with the talks told Reuters. Novatek plans to start producing LNG at Arctic LNG 2 in Major banks in Saudi Arabia reached settlements worth a combined 16.7 billion riyals ($4.5 billion) with the kingdom s tax authority over a religious levy the lenders had been kicking against. The tax authority had extended the 2.5 percent religious levy, known as the Zakat, by including items that were previously exempt, while eliminating some deductions. Al Rajhi Bank was hit with the highest payment, agreeing to pay

4 5.41 billion riyals, the lender said in a statement posted on the Saudi Stock Exchange. Alinma Bank didn t pay any settlement and said in a separate announcement that there will be a credit balance with the authority. Japan's Mitsui & Co Ltd, Russian sovereign wealth fund RDIF and Saudi Aramco are in talks to buy stakes in Novatek's Arctic LNG 2 project, with the size of the investments still to be decided, sources familiar with the talks told Reuters. Novatek plans to start producing LNG at Arctic LNG 2 in Major banks in Saudi Arabia reached settlements worth a combined 16.7 billion riyals ($4.5 billion) with the kingdom s tax authority over a religious levy the lenders had been kicking against. The tax authority had extended the 2.5 percent religious levy, known as the Zakat, by including items that were previously exempt, while eliminating some deductions. Al Rajhi Bank was hit with the highest payment, agreeing to pay 5.41 billion riyals, the lender said in a statement posted on the Saudi Stock Exchange. Alinma Bank didn t pay any settlement and said in a separate announcement that there will be a credit balance with the authority. Saudi's SPIMACO signs 287.1mln riyals loan agreement with SIDF. Saudi Kayan Petrochemical announces signing a memorandum of understanding with Clariant international. The MOU sets out main principles of cooperation between two parties in evaluating feasibility study for establishment of JV. JV owns plant within company's complex in jubail industrial city for manufacturing alkoxylates with a production capacity 120 kta. Bahrain November CPI +0.7 pct y/y, while flat m/m. Kuwait s Danah Al Safat foodstuff board approves sale of united Danah Fisheries. Boursa Kuwait says CMA approves listing of Al Manar Financing & Leasing.# Kuwait November CPI +0.1 pct y/y, -0.1 pct m/m. Commercial Bank of Kuwait shareholders approve not to issue any final budget which includes any impaired loan. Shareholders approve that if it is not possible to distribute at least 20 fils per share, entire profit of year to be transferred as reserves.

5 Egyptian Exchange executes mandatory purchase offer by Polyserve for Fertilizers & Chemicals implemented on 15.98mln shares of Ferchem Masr for EGP 100.9mln Orascom Investment Holding comments on new "government begins procedures to cancel sound and light contract with Orascom-Prism. The company says foreign partner violated terms of contract, not completed works and did not produce any show company has right to sue foreign partner. Company still has intention to apply, if government issues tender again Qalaa Holdings SAE reported net income for the third quarter million pounds. 3Q revenue 3.3 billion pounds. 3Q Net EGP126.4M; Rev EGP3.3B. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

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

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