IS Morning Report Sunday, January 28, 2018

Transcription

1 Global & Regional Benchmarks 1M 3M YTD 1Y Indices Close UAE Trading Summary (AEDm) BUY SELL ADX 4, % 7.5% 3.9% 5.6% 0.4% ADX DFM 3, % 4.1% -5.0% 2.9% -6.3% Local 51% 49% TASI 7, % 4.8% 8.8% 4.1% 5.4% Foreign 49% 51% KWSEI 6, % 4.4% 0.4% 3.8% -2.9% Institutional 61% 61% EGX 15, % 2.2% 9.1% 1.0% 17.8% Retail 39% 39% Dow Jones 26, % 7.7% 13.6% 7.7% 32.5% DFM S&P 500 2, % 7.5% 11.3% 7.5% 25.2% Local 61% 61% Nasdaq 7, % 8.7% 12.0% 8.7% 32.6% Foreign 39% 39% FTSE 100 7, % -0.3% 2.1% -0.3% 6.7% Institutional 55% 42% DAX 13, % 3.3% 0.9% 3.3% 12.9% Retail 45% 58% CAC40 5, % 4.1% 0.6% 4.1% 14.2% Total Nikkei225 23, % 3.8% 7.4% 3.8% 21.4% Local 57% 57% HIS 33, % 10.8% 16.6% 10.8% 41.9% Foreign 43% 43% Upcoming Corporate Actions & Events Date Company Event 28-Jan UNB Board Meeting 28-Jan ADCB Board Meeting (2017 results) 28-Jan Aldar Board Meeting (2017 results) 29-Jan FAB Board Meeting (2017 results) 29-Jan RAK Bank Board Meeting (2017 results) 30-Jan Dana Gas English High Court hearing 4-Feb Gulf Nav First Day of the Rights Trading on DFM 11-Feb Gulf Nav Rights subscription opening date Key Stories

2 Global Markets Wrap: Strong earnings from Intel and other companies drove Wall Street indexes to record closing highs on Friday, while the U.S. dollar remained weak after recent comments by the U.S. Treasury secretary. The S&P 500 jumped 1.2 percent, its biggest daily percentage gain since March 1. The S&P and the two other main indexes all notched their best four-week runs since Oil prices settled higher on Friday after hitting three-year highs, with crude also posting a weekly gain as a weaker U.S. dollar underpinned prices. Brent crude futures LCOc1 settled up 10 cents, or 0.1 percent, at $70.52 per barrel after hitting a session high of $ On Thursday, the contract climbed to as high as $71.28, its highest since U.S. West Texas Intermediate (WTI) crude futures CLc1 closed at $66.14 a barrel, up 63 cents, or nearly 1 percent. On Thursday, they also reached their highest since December 2014, at $ Oil production from the West Karoun oilfields in southwest Iran nearly doubled in the past year, oil minister Bijan Zanganeh said in an interview broadcast live on state TV Saturday. UAE: Dubai off-plan property sales hit 9-year high. JLL says a total of 25,600 off plan properties were purchased in Dubai in 2017, the highest since 2008 UAE-based real estate investment trust completes $210m deals. The Residential REIT (IC) Limited closes transactions with Abu Dhabi Islamic Bank, Arcapita and an unnamed Saudi institution. The Residential REIT

3 (IC) Limited, the first Sharia compliant real estate investment trust incorporated in Abu Dhabi Global Market (ADGM), has completed new property transactions worth AED772 million ($210.1 million). The REIT, managed by Equitativa (AD) Limited, said it has closed deals with Abu Dhabi Islamic Bank, Arcapita and an unnamed large Saudi institution. Arab Bank Group closed 2017 with solid results, reporting a growth in net operating income of 8 per cent as compared to the prior year. Excluding the effect of foreign currency devaluations, net operating income achieved growth of 12 per cent, said the lender, based in Amman, Jordan. Net income after tax was $533 million as compared to $532.7m in 2016, while loans and advances grew by 6 per cent to reach $25.1 billion. Arab Bank said in view of the results, the board of directors has recommended to the shareholders the distribution of 30 per cent cash dividends for the financial year Damac Properties may sign contract this year on investing in tourist site on Adriatic coast, office of Montenegro s Prime MinisterDusko Markovic says in after meeting with Damac Chairman Hussain Sajwani in Davos, Switzerland. Abu Dhabi's TAQA extends late life of North Sea Eider platform. Abu Dhabi's TAQA extends late life of its Eider platform and ensures continued production from North Sea's Otter field. Company says TAQAoperated Eider Alpha platform to be converted into utility platform as part of wider programme designed to extend life of TAQA s wider NNS (Northern North Sea) infrastructure. Both the Otter field and North Cormorant platform wells are to have their lives extended. Air Berlin administrator says continues to assess possible claims against Etihad Two contracts have been awarded to start construction of key roads connecting the Expo 2020 Dubai site in a project worth AED1.36 billion ($370 million). Ajman's $136m Mirkaaz mall to feature traditional souk. Ajman Holding project is expected to attract more than 10 million visitors a year after it opens in late 2019 Dubai on track to attract 500,000 health tourists by Dubai Health Authority chief hails 'significant progress' in upgrading city's medical facilities. New Abu Dhabi beachfront project set to open by end-march. Developer Miral says 80% of A'L BAHAR entertainment and food and beverage outlets have now been leased GCC: Several prominent businessmen have reached financial settlements with Saudi Arabian authorities in the kingdom's sweeping crackdown on corruption, an official source told Reuters on Friday. They include Waleed al-ibrahim, owner of regional television network MBC; Fawaz Alhokair, a major shareholder in fashion retailer Fawaz Abdulaziz Alhokair Co 4240.SE; Khalid al-tuwaijri, a former chief of the Royal Court; and Turki bin Nasser, a former head of the country's meteorology and environmental protection agency, the source said. Saudi Arabian authorities freed Prince Alwaleed bin Talal and several of the kingdom s most prominent men from detention this weekend as they cleared out the Ritz- Carlton hotel that served as a jail for the country s elite during a controversial crackdown on corruption. Alwaleed, the billionaire chairman of

4 Riyadh s Kingdom Holding Co., was allowed to return home on Saturday, according to two people with knowledge of the matter The outlook for a proposed merger of Saudi British Bank (SABB) and Alawwal Bank will become clear by the end of the first quarter of 2018, Saudi central bank governor, Ahmed al-kholifey, told Al Arabiya television on Thursday. SABB, 40 percent owned by HSBC Holdings HSBA.L, and Alawwal, 40 percent owned by Royal Bank of Scotland RBS.L, said in April that they had agreed to start merger talks, but progress has been slow. Saudi Basic Industries Corp (SABIC) 2010.SE bought a 25 percent stake in Clariant CLN.S, ending the Swiss speciality chemical group's fight with activist investors but raising further questions about its future. U.S. activists David Winter, David Millstone and hedge fund investor Keith Meister on Thursday announced they had unloaded their stake to SABIC, a surprise given their previous insistence they were long-term Clariant investors. -Saudi Telecom Reports Q4 Profit of SAR2.65bn versus SAR2.08bn year ago. Revenue from services billion riyals versus billion riyals year ago. Board proposes cash dividend of SAR1.0 per share for q Saudi Arabia s ACWA Is Said to Seek More Than $1 Billion in IPO. ACWA Power International, a Saudi Arabian energy producer, is seeking to raise more than $1 billion through an initial public offering on the kingdom s local bourse, according to people familiar with the matter. The Riyadh-based power plant developer has shortlisted four banks for the IPO after receiving pitches, the people said, asking not to be identified as the information is private. Kuwait Cuts Target for Overseas Oil, Gas Output on Price Slump. Kuwait Foreign Petroleum Exploration Co. reduced its output target for oil and natural gas due to the drop in crude prices that started in 2014, Chief Executive Officer Sheikh Nawaf Saud Al-Sabah said. Kufpec, a unit of state-run Kuwait Petroleum Corp., revised its production goal for 2020 to 150,000 barrels a day of oil equivalent from 200,000 barrels a day, Al-Sabah said in an ed response to questions. Oman gov't eyes 25,000 new jobs in six months. Move is part of efforts to curb high unemployment in the small, oil-exporting Gulf Arab state Egypt: Egypt's trade deficit narrowed by 25 percent in 2017 from the year before due to a decline in imports and raise in exports, the trade ministry said on Friday. Non-oil exports rose to about $22.4 billion in 2017 from about $20.4 billion the previous year, a 10 percent increase, Trade Minister Tarek Kabil said in a statement. Imports declined to about $56.8 billion from about $66.3 billion, a 14 percent decrease, Kabil said. Egyptian exports have over the past year found new markets as the pound lost half its value in a currency flotation in Nov Egypt plans to stop importing liquefied natural gas (LNG) by the end of the 2017/18 fiscal year ending in June as it speeds up production at recently discovered gas fields, Petroleum Minister Tarek El Molla said on Saturday. Egypt said previously that it would halt imports by the start of Molla said the country will save $250 million per month by no longer importing LNG. Regional

5 MLP Care Turkey Seeks Up to $480m in IPO; Bookbuilding Feb MLP Saglik Hizmetleri, known as MLP Care, sets IPO price target at liras per share, according to ed statement. * MLP plans to raise 1.5b-1.8b liras ($480m) in IPO, in which 31.4% of company s shares will be offered; total offering may rise as high as 36.2% if there s enough demand * IPO funds will be used to repay some debt * Medical Park and Liv Hospital are part of MLP Care; shareholders include Turkven Private Equity (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) Daily Foreign Ownership Increase Company Name Foreign Ownershp (%) (%) Shares Mcap (AED) Methaq Takaful Ins % , ,550 Al Khazna Ins. 5.67% , ,920 Eshraq 35.95% ,092,500 1,611,225 Air Arabia 24.39% ,200,030 5,502,039 KHCB 4.71% ,867 1,123,800 RAK Properties 30.68% ,600,000 1,248,000 Dar Al Takaful 21.28% , ,200 Sudatel 80.05% , ,580 Aramex 62.13% ,460 3,821,301 DFM 7.49% ,198,305 3,616,000 Daily Foreign Ownership Decrease Company Name Foreign Ownershp (%) (%) Shares Mcap (AED) DXBE 31.84% (11,199,878) (7,302,320) Arabtec 18.39% (2,100,000) (5,586,000) Deyaar Dev 11.74% (7,511,400) (4,289,009) Manazel 20.93% (2,860,000) (1,687,400) Al Waha Capital 9.20% (1,470,807) (3,375,677) International Holdings 5.85% (204,000) (295,800)

6 Al Salam Group Hold KW 16.97% (80,892) (45,030) Marka 16.05% (100,000) (60,000) Dubai Isl. Ins 12.46% (45,150) (37,475) Arkan Building 0.90% (350,000) (273,000) (Source: ADX, DFM, Bloomberg, Reuters) Institutional Sales and Trading Team Harshjit Oza Direct Line : 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.