IS Morning Report Sunday, July 01, 2018

Transcription

1 Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day Change 1Mnth 3Mnth YTD 1Y Change Change Change Change (AEDm) BUY SELL NET ADX 4, % -0.3% -0.6% 3.7% 3.0% ADX DFM 2, % -3.6% -9.2% -16.3% -16.8% Local 40% 35% 5% TASI 8, % 3.9% 5.6% 15.1% 12.0% Foreign 60% 65% -5% KWSEI 1, % 3.8% -0.6% -1.6% 0.1% EGX 16, % -3.9% -6.3% 8.9% 22.0% Dow Jones 24, % -1.5% 2.7% -1.8% 13.7% S&P 500 2, % -0.6% 5.3% 1.7% 12.2% Nasdaq 7, % -0.6% 9.3% 8.8% 22.3% FTSE 100 7, % -0.8% 8.2% -0.7% 4.4% DAX 12, % -3.3% 1.7% -4.7% -0.2% CAC40 5, % -2.6% 3.0% 0.2% 4.0% Nikkei225 22, % 0.6% 4.3% -2.0% 11.3% HIS 28, % -5.0% -3.8% -3.2% 12.4% Institutional 74% 61% 14% Retail 26% 39% -14% DFM Local 53% 58% -4% Foreign 47% 42% 4% Institutional 43% 58% -15% Retail 57% 42% 15% Total Local 51% 53% -2% Foreign 49% 47% 2% # Upcoming Corporate Actions & Events Date Company Event 3-July CBI Board Meeting 4-July DIN Board Meeting 7-Aug KHCB Board Meeting 12-Aug ITHMR Board Meeting # Key Stories UAE court to rule on Abraaj founder cheque case next week Abraaj chairman resigns as buyout group restructures UAE's Amanat says eyeing new deals amid Abraaj crisis

2 Adnoc secures base oil licensing from General Motors Eshraq confirms that they have no exposure to Abraaj DP World plans to set up a logistics facility in Ethiopia Union Properties unit ServeU to launch IPO in September Amlak Finance CFO Muhammad Azam Razzak Resigns Global defence giant inks Mubadala deal for Abu Dhabi HQ UAE implements IMF s Enhanced General Data Dissemination System Expo 2020, reforms key to 1% GDP boost to UAE economy Saudi Arabia raises 3.1 billion riyals in domestic sukuk tap Bupa Arabia Renews Health Insurance Contract With Sabic Saudi says to accept applications for mill privatisation Aug. 26 Fawaz Alhokair FY Profit 103.5m Riyals vs 425m Yr Ago Kuwait Refiner Is Said to Sign $1.3b Financing with Korean Banks Kuwait to raise oil output by 85,000 bpd: minister Bahrain pledges to repair finances as it awaits Gulf aid Bahrain's credit rating depends on GCC financial package, Moody's says Egypt holds rates as subsidy cuts rekindle inflation worries New Egypt finance chief looks to a sukuk for funds IMF approves $2b loan instalment for Egypt Egypt's Carbon Holdings and Suez Canal Authority deal to build $11bn petchems plant # Key Global Trends // Market Clues U.S. President Donald Trump s administration backed off an assertion he made hours earlier indicating he persuaded Saudi Arabia to effectively boost oil production to its maximum capacity, which would have threatened to blow up a fragile truce agreed by OPEC last week and inflamed the Saudi-Iran rivalry.

3 # UAE Stories A United Arab Emirates court is expected to rule next week on a criminal case against Abraaj founder Arif Naqvi for issuing a cheque without sufficient funds, a lawyer involved in the case said on Thursday. The Sharjah court case relates to a cheque for million dirhams ($48 million), signed by Naqvi and fellow executive Muhammad Rafique Lakhani, and written to Hamid Jafar, another founding shareholder in private equity firm Abraaj. Abraaj Holdings chairman Sean Cleary has resigned as the private equity group undergoes a court-supervised restructuring after allegations of misused funds. Amanat Holdings is scouting for deals as the investment firm seeks to capitalize on the collapse of Dubai-based Abraaj Group. We want to be number one and now is the real opportunity to gain that position, managing director Shamsheer Vayalil said in an interview on Wednesday. Amanat is well poised to lead the healthcare and education space in the region and abroad in the incumbent era. The company is looking at a couple more healthcare and education deals in the Gulf region, India and Egypt after some of its biggest transactions in recent weeks, Vayalil said. US car manufacturer General Motors has granted approval for the use of a high-performance base oil manufactured by Adnoc to be used in the US market, the Abu Dhabi firm said in a statement on Thursday. "We have initiated a broad licensing programme for our high-quality base oil, ADbase, and have already secured a number of important formulation approvals," said Abdulla Salem Al Dhaheri, marketing, sales and trading director at Adnoc. Eshraq Properties confirmed on Thursday that it does not have any exposure to Abraaj DP World is planning to set up a logistics facility in Ethiopia to facilitate transport of goods to landlocked countries in Africa, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation Sultan Bin Sulayem has revealed. Facilities management company ServeU, a subsidiary of Union Properties, will launch its IPO in September and aims to double the number of its workforce to 10,000 in the next couple of years through organic and inorganic measures, its general manager said. Amlak Finance (AMLAK UH) CFO Muhammad Azam Razzak Resigns.

4 Global defence giant Raytheon has announced a long-term lease with Mubadala Investment Company, establishing its new UAE headquarters at Abu Dhabi Global Market Square. Raytheon Emirates, a wholly owned subsidiary of the US parent, said the new HQ will be spread over nearly 1,837 square metres once it is completed and ready for occupancy later this year. The UAE has launched a National Summary Data Page, NSDP, becoming the first Gulf Cooperation Council, GCC, country to implement the recommendations of the enhanced General Data Dissemination System, e-gdds. Expo 2020, economic reforms, Abu Dhabi's $13.6 billion stimulus, and ADNOC's expansion could add about 1 percent to the UAE's non-oil real GDP growth in 2019, according to new research. Bank of America Merrill Lynch said structural reforms support potential growth through higher human capital, population, real estate demand and competitiveness. # GCC/ MENA Saudi Arabia's finance ministry sold 3.10 billion riyals ($827 million) of local currency Islamic bonds in its monthly debt sale by re-opening an issue originally made in April, the ministry said on Thursday. Bupa Arabia Renews Health Insurance Contract With Sabic. The contract revenue expected to be greater than 5% of the 2017 annual gross written premium of Bupa Arabia for Cooperative Insurance, according to a statement to Saudi stock market. Expects to have an impact on 2018 financial results. Saudi Arabia's state grain buyer SAGO said on Thursday it would start accepting applications for qualification of potential investors interested in the sale of its four mills on Aug. 26. The agency will also make an announcement regarding the timeline for the qualification process on the same day, it said in a statement. Fawaz Alhokair FY Profit 103.5m Riyals vs 425m Yr Ago. Rev. for year ending March 31, b riyals vs 6.62b riyals, retailer says in statement to Saudi stock exchange. EPS: 0.49 riyals. Attributes 76% decline in profit to drop in sales, increase in cost of sales, decline in demand, loss from associate. Amounts of previous year s earnings have been adjusted in accordance with IFRS. Kuwait Integrated Petroleum Industries Co. is waiting for final approval from govt cabinet to borrow 390m dinars ($1.29b) from 2 South Korean banks to build liquefied natural gas terminal at country s Al Zour complex, according to a person with direct knowledge of the deal. State-run refiner, known as KIPIC, plans to raise total of 780m dinars ($2.58b) for project, half from intl banks and half from local lenders: person, who asked not to be identified because not authorized to speak to news media. Kuwait to raise oil output by 85,000 bpd: minister. Kuwait will raise oil output by 85,000 barrels per day (bpd)starting on Sunday, part of an agreement between OPEC and non-opec producers to increase production by one million bpd, Energy Minister Bakhit al-rashidi told a local newspaper on Saturday. Bahrain has pledged to implement steps to repair its strained finances widely seen as crucial to help the kingdom receive support from Gulf Arab allies. Prime Minister Khalifa Bin Salman Al Khalifa set up a committee to devise plans to balance the budget, the Bahrain News Agency reported on Thursday. Bahrain s credit rating will depend on the size, timing and the form of the financial support pledged by its Arabian Gulf allies last week to ensure fiscal stability of the kingdom's financial institutions. The Gulf s smallest economy will need around $2.3 billion to $2.8bn in the second half of 2018 and more than $4bn next year to finance its budget deficit and service its debts, according to a Moody s Investors Service report.

5 Egypt s central bank kept its benchmark interest rate unchanged Thursday as increases in fuel and electricity prices rekindled concerns over inflation. The Monetary Policy Committee held the deposit rate at per cent and the lending rate at per cent. Ten of 11 economists surveyed by Bloomberg had expected no change. Egypt is considering tapping the international sukuk market in the coming fiscal year, as it looks to diversify funding sources to drive forward its economic revival efforts. The Sharia-compliant issuance, either in dollar or eurodenominated sukuk, which Finance Minister Mohamed Maait hopes will happen in fiscal The International Monetary Fund on Friday approved the fourth instalment of a $12 billion (Dh44.04 billion), threeyear loan for Egypt, bringing the total released to date to just over $8 billion. The IMF board approved the latest $2 billion disbursement under the aid deal signed in November 2016 to support Cairo s economic reform programme, which the Washington-based lender has repeatedly praised. Egypt s Carbon Holdings signed a contract with the Suez Canal Authority on Saturday to build the $10.9 billion Tahrir petrochemicals project, producing raw materials needed by the country s industrial sector. The five millionsquare metre project, to be located at Suez Canal Economic Zone in Ain Sokhna, is set to become the biggest petrochemicals complex in the Middle East, according to the Egyptian Cabinet. It is expected to create 48,000 jobs. (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.