Integrated Securities Morning Report 15 January 2019

Transcription

1 Integrated Securities Morning Report 15 January 2019 # Market Stats 1M 3M 1Y # UAE Trading Summary Indices Close Change Change Change Change AEDm Buy Sale Net ADX 4, % 2.8% 1.3% 8.6% ADX DFM 2, % -2.8% -6.8% -27.7% Local 22% 48% -26% TASI 8, % 4.5% 9.3% 10.5% Foreign 78% 52% 26% BHSEASI 1, % 1.9% 2.1% 1.5% Institution 85% 60% 25% EGX 13, % 2.6% -1.4% -11.8% Retail 15% 40% -25% Dow Jones 23, % -0.8% -5.3% -7.3% DFM S&P 500 2, % -0.7% -6.1% -7.3% Local 40% 47% -7% Nasdaq 6, % -0.1% -7.1% -4.9% Foreign 60% 53% 7% FTSE 100 6, % 0.1% -2.5% -11.8% Institution 55% 55% 1% DAX 10, % -0.1% -6.5% -17.8% Retail 45% 45% -1% CAC40 4, % -1.9% -6.5% -13.6% Total Nikkei225 20, % -4.0% -9.6% -13.2% Local 31% 48% -17% HIS 26, % 2.5% 5.1% -14.7% Foreign 69% 52% 17% # Upcoming Corporate Actions & Events Date Company Event 16-Jan ENBD B. Meeting/ Results 16-Jan Dana Gas B. Meeting 16-Jan Eshraq Properties B. Meeting 16-Jan DXBE B. Meeting 16-Jan Ajman Bank B. Meeting 16-Jan Air Arabia B. Meeting 17-Jan Amlak B. Meeting 21-Jan Mashreq B. Meeting/ Results 06-Feb KHCB B. Meeting/ Results 10-Feb GFH B. Meeting/ Results 13-Feb ITHMR B. Meeting/ Results

2 # KEY STORIES FAB mandates banks for five-year dollar Sukuk, gives initial price guidance for dollar Sukuk in 150 bps over mid swaps area OPEC+ Plans Review in Baku in March, Ministers' Meeting in April The UAE economy is forecast to grow at an average 3.8 per cent annually in the next five years, supported by an increase in investment flows and a rise in private consumption- Dubai Chamber of Commerce Turkey Billionaire Said in Talks to Sell Hotels to Dubai Holding Etihad 'agrees' to raise stake in Jet Airways to 49% Abu Dhabi National Hotels secures 1.6 bln dirham loan for hotel purchase from FAB Eshraq Properties calls board meeting on Jan 16 to discuss, approve to change company's name to Eshraq Investments National International Holding acquired 29.6% stake in Coast Investment & Development for kwd 6.29mln Deyaar Development signs property management contract with Awqaf and Minors Affairs Foundation Mubadala acquires Amana Healthcare Omantel, Ooredoo extend Omani operating licences for 15 years Riyad Bank picks Goldman to advise on talks with NCB Saudi's ACWA committed to IPO, but difficult to forecast timing CEO Saudi Marketing Company signs agreement to renew Islamic credit facility of 200mln riyals with Al Rajhi bank for period from Jan 14, 2019 to Sept 30, 2019 Bahrain's Investcorp, Coller form $1bln European private equity fund Oman's Bank Sohar posted FY18 net profit after tax 29.4mln rials versus 25.3mln rials year ago Egypt has not set a date for issuing bonds on the Asian market or decided in what currency they would be issued - finance ministry Egypt picks banks to manage sale of stakes in state-owned companies Egypt s Misr National Steel shareholders approve to split share nominal value to EGP 0.50 from EGP 5 Samcrete Egypt shareholders approve to buy shares in Strata Foundations owned by Samcrete for Engineering Investments at EGP 100 per share Lebanon "absolutely not" proposing debt restructuring -finance minister

3 # Key Global Trends/ Market Clues Asian stocks pulled ahead on Tuesday, led by a bounce in Chinese shares as Beijing signalled more supportive measures to stabilise a slowing economy, while the British pound braced for a showdown in parliament over the government's Brexit plan. Tokyo's Nikkei rose 0.55 percent to 20,474 after a market holiday on Monday while MSCI's broadest index of Asia-Pacific shares outside Japan recovered from early losses and advanced 0.56 percent. Oil prices rose 1 percent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook capped gains. International Brent crude oil futures were at $59.64 per barrel at 0257 GMT, up 65 cents, or 1.1 percent, from their last close. Saudi Arabia's Energy Minister Khalid al-falih said that oil demand remains strong and that he sees no impact from U.S.-China trade tensions. "The global economy is strong enough, I'm not too concerned. If a slowdown happens, it will be mild, shallow and short," he said. # UAE Stories FAB mandates banks for five-year dollar Sukuk, gives initial price guidance for dollar Sukuk in 150 bps over mid swaps area. OPEC and its allies plan to hold a meeting in March to assess their oil-production accord in Azerbaijan, and then ministers will gather to set policy in April, according to the organization s top official. Turkish billionaire Ferit Sahenk is in talks to sell some of Europe s most famous luxury hotels to the investment firm owned by Dubai s ruler as part of a debt restructuring, people with knowledge of the matter said. The discussions involve properties including the historic Capri Palace in Italy, the Aldrovandi Villa Borghese in Rome and Istanbul s Grand Hyatt, the people said, asking not to be identified because the talks are private. Etihad Airways has agreed to raise its stake in Jet Airways India Ltd. to 49 per cent as founder and chair Naresh Goyal gives up majority control of the carrier, potentially paving the way for the rescue of the cashstarved company.

4 First Abu Dhabi Bank said on Monday it had agreed to provide a 1.6 billion dirham ($436 million) loan to Abu Dhabi National Hotels (ADNH) for the acquisition of a number of Dubai-based hotels. The statement did not specify the hotels, but ADNH said on Nov. 29 it had agreed to buy five hotels from Emaar Properties unit Emaar Hospitality for 2.2 billion dirhams. Eshraq Properties calls board meeting on Jan 16 to discuss, approve to change company's name to Eshraq Investments. National International Holding acquired 29.6% stake in Coast Investment & Development for kwd 6.29mln. Deyaar Development signs property management contract with Awqaf and Minors Affairs Foundation. The contract mandates Deyaar to manage Amaf s endowment properties and assets in line with prevailing UAE regulations. Mubadala Investment Company, announced on Monday the acquisition of Amana Healthcare a provider of long-term care, specialised rehabilitation, and home healthcare services for an undisclosed amount. Omantel and Ooredoo have renewed their operating licences for a further 15 years, starting from February this year. The Telecommunications Regulatory Authority (TRA) approved the renewal of both operating licences, at a cost of $195 million (OMR75m) each. # GCC/ MENA Riyad Bank has chosen Goldman Sachs to advise on its merger talks with National Commercial Bank (NCB), two sources familiar with the matter said. NCB, the kingdom s biggest lender by assets, and Riyad Bank said in December they had begun preliminary talks to potentially create a combination with $183 billion (Dh672 billion) in assets. Saudi Arabia's ACWA Power open to supporting solar panel manufacturing in Saudi. The company intends to expand to 25 countries from 12 by 2025 and committed to IPO, but difficult to forecast timing of IPO CEO. Saudi Marketing Company signs agreement to renew Islamic credit facility of 200mln riyals with Al Rajhi bank. The credit facility is for period from Jan 14, 2019 to Sept 30, Bahrain-based alternative investment manager Investcorp said on Monday it was forming a $1 billion European private equity portfolio with Coller Capital. Oman's Bank Sohar posted FY18 net profit after tax 29.4 mln rials versus 25.3mln rials year ago. FY operating income 94.4mln rials versus 76.4mln rials year ago. Egypt has not set a date for issuing bonds on the Asian market or decided in what currency they would be issued - finance ministry Egypt s CI Capital and Renaissance Capital will manage the sale of a stake in state-owned Abu Qir Fertilizers, a government official said on Monday. EFG Hermes and Citi will manage the sale of a stake in Alexandria Container and Cargo Handling, the official who spoke on condition of anonymity said. Egypt is working on selling shares in dozens of state-owned companies over the next three to five years across several sectors to help boost public finances. Egypt s Misr National Steel shareholders approve to split share nominal value to EGP 0.50 from EGP 5. Samcrete Egypt shareholders approve to buy shares in Strata Foundations owned by Samcrete for Engineering Investments at EGP 100 per share. The Lebanese government is not proposing a restructuring of public debt and is committed to paying all maturing debt and interest payments, Finance Minister Ali Hassan Khalil said on Sunday. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

5 # UAE FOCUS LIST - COMPANY DATA MCAP PRICE HIGH - LOW VALUATION DIV HISTORICAL RETURN Company (AEDm) (AED) 52WH 52WL TTM P/E TTM P/B YLD (%)^ 1M% 3M% 6M% 12M% ADCB 43, % 1.1% 8.7% 15.9% 13.6% ADIB 15, % 5.0% 16.1% 16.1% 13.5% ADNIC 1, NA 1.3% 11.4% 0.0% 1.3% Agthia 2, % 1.3% 0.3% -18.4% -13.0% Air Arabia 4, % 4.0% 9.5% -1.9% -20.0% Ajman Bank 1, % -5.3% -5.0% -11.7% -24.3% Al Waha Capital 3, % 1.1% -3.2% 3.4% -8.6% Aldar Properties 12, % -4.3% -8.9% -26.3% -32.2% Amanat Holdings 2, % -10.8% -5.3% -15.1% -23.0% Amlak Finance NA % -4.8% -32.0% -49.1% -64.4% Arabtec 3, % 2.0% 15.4% 0.5% -24.1% Aramex 5, % -6.5% 1.3% -7.0% -8.0% Bank of Sharjah 2, % -2.1% -7.5% -6.6% -18.8% DAMAC Properties 8, % -17.3% -23.9% -32.5% -57.9% Dana Gas 6, % 3.3% -19.4% -14.1% 17.8% Deyaar Development 2, % 0.5% -12.3% -11.9% -34.3% Dubai Financial Market 6, % 4.1% -4.6% -15.9% -27.8% Dubai Investment 5, % -2.3% -20.4% -35.2% -48.0% Dubai Islamic Bank 33, % -1.0% -0.4% 3.0% -11.9% DXB Entertainments 2, NA % -7.6% -29.8% -27.1% -62.9% Emaar Dev 15, % -18.2% -19.6% -18.7% -26.7% Emaar Malls 21, % -4.6% -7.7% -20.9% -25.1% Emaar Properties 28, % -8.1% -16.2% -21.3% -41.3% Emirates Integrated Tele 23, % 1.8% 3.5% -0.8% -0.8% Emirates NBD 51, % 3.3% 1.0% -9.0% 10.7% Eshraq Properties 1, NA -3.9% -19.9% -22.5% -36.6% Etisalat 146, % -0.5% 2.2% -1.2% -5.6% First Abu Dhabi Bank 160, % 5.7% 1.8% 17.1% 33.0% GFH 3, % -20.5% -30.3% -36.6% -39.2% Gulf Navigation Holding NA % -20.3% -21.0% -19.8% -24.9% Gulf Pharmaceutical 2, NA % -1.0% -5.5% -9.6% -8.8% Marka NA NA NA 0.0% 0.0% 0.0% -52.7% Mashreqbank 13, % 8.3% 14.6% 4.7% 4.1% National Bank of Fujairah 7, % 22.8% 41.2% 69.6% 3.2% National Central Cooling Co 4, % 6.2% 9.6% -1.7% -10.4% RAK Bank 7, % 4.5% 4.2% 1.9% -13.4% RAK Properties % -5.2% -23.6% -28.3% -42.3% Ras Al Khaimah 1, % -3.7% -21.4% -23.4% -32.5% SALAMA % -6.7% -34.0% 14.1% -11.5% Sharjah Islamic Bank 3, % 5.3% 2.6% 0.0% -17.2% Takaful Emarat Insurance % -7.4% -8.5% -21.4% -19.0% TAQA 5, % -6.2% -18.0% -26.0% 59.6% Union National Bank 13, % 2.1% 4.3% 36.5% 23.1% Union Properties 1, % -5.7% -38.4% -43.9% -58.9% United Arab Bank 2, % -4.0% 0.0% 18.8% -24.1% (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration

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