IS Morning Report Wednesday, July 04, 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, % -0.2% -0.8% 3.9% 4.1% ADX DFM 2, % -6.5% -8.2% -15.8% -16.9% Local 53% 51% 2% TASI 8, % -1.2% 4.6% 14.0% 12.8% Foreign 47% 49% -2% KWSEI 1, % 3.6% 2.2% -1.6% -0.5% EGX 16, % 0.1% -6.2% 9.3% 23.1% Dow Jones 24, % -2.6% -0.4% -2.2% 12.5% S&P 500 2, % -1.2% 2.6% 1.5% 11.7% Nasdaq 7, % -1.4% 6.5% 8.7% 22.8% FTSE 100 7, % -1.9% 8.0% -1.2% 3.2% DAX 12, % -3.3% 3.3% -4.4% -0.7% CAC40 5, % -2.9% 3.4% 0.1% 2.7% Nikkei225 21, % -3.4% 1.9% -4.6% 8.4% HIS 28, % -8.9% -4.3% -5.6% 11.2% Institutional 57% 67% -10% Retail 43% 33% 10% DFM Local 73% 68% 4% Foreign 27% 32% -4% Institutional 43% 56% -13% Retail 57% 44% 13% Total Local 69% 65% 4% Foreign 31% 35% -4% # Upcoming Corporate Actions & Events Date Company Event 4-July DIN Board Meeting 29-July ORDS Board Meeting 7-Aug KHCB Board Meeting 8-Aug AJMANBANK Board Meeting 12-Aug ITHMR Board Meeting 13-Aug GFH Board Meeting # Key Stories UAE May inflation stays flat at 3.5 pct as housing continues drop

2 UAE s non-oil private sector growth spikes Etihad Aviation Group announces sweeping reorganization Etihad CEO Douglas Tightens Grip on Carrier to End Losses. UAE's ADNOC says has ability to raise oil output several hundred thousand bpd Union Properties Names Khouri as MD, Approves AED500m Sukuk Issuance Air Arabia takes delivery of two Airbus A320 aircraft Fitch Affirms National Bank of Ras Al-Khaimah at 'BBB+' Fitch Affirms Bank of Sharjah at 'BBB+'; Downgrades VR to 'bb-' Al Ramz Capital Obtains Securities Lending and Borrowing License in Abu Dhabi Securities Exchange International financial advisors disclosed that that the company have signed agreement with a foreign bank for settlement of a portion kind ISKAN Oman Investment Co (OEIHC holds 10% stake) has decided to return 50% of capital and also approved 20% cash dividend for Saudi cabinet says kingdom ready to use spare oil capacity as needed Saudi dairy becomes boycott target as rising prices fuel anger Bahrain has been working with advisory firm Lazard Egypt's economy grew 5.4 pct in 12 months to June 30 Egypt's non-oil business activity rises slightly in June -PMI IMF urges Egypt to watch inflation after new subsidy cuts GTH Receives Offer From Veon To Acquire Its Assets In Pakistan, Bangladesh Turkish inflation hits 14-year high, lira slides # Key Global Trends // Market Clues Asian stocks were on shaky ground on Wednesday while the Chinese yuan stood near 11-month lows as the spectre of a Sino-U.S. ahead of an end-of-week deadline for U.S. tariffs on billions of dollars worth of Chinese imports. MSCI's broadest index of Asia-Pacifi up 0.1 percent in early trade, a day after it hit a nine-month low. Japan's Nikkei lost 0.5 percent. Oil prices edged up on Wednesday, lifted by a report of declining U.S. fuel inventories amid the ongoing crude supply outage at Syncru usually supplies the United States. U.S. West Texas Intermediate crude futures were at $74.60 a barrel at 0044 GMT, up 46 cents, o settlement. WTI the previous day hit its highest since November 2014 at $75.27 a barrel. # UAE Stories UAE May inflation stays flat at 3.5 pct as housing continues drop. Housing and utility costs fell 2.5 percent from a year earlier in May rose 2.6 percent after the UAE imposed a 5 percent value-added tax on many goods at the start of the year, while transport costs surge prices rose.

3 The UAE s non-oil private sector output and new orders in June rose at their fastest pace this year, indicating a strong improvemen economy, according to the Emirates NBD Purchasing Managers Index (PMI). The PMI for June rose to a 2018 high of 57.1, up from 56. orders increased for the third month in a row but at a slightly slower rate than in May. Etihad Aviation Group has announced a new organisational structure and operating model that will see it reorganised into seven dist CEO Tony Douglas, with current Etihad Airways CEO Peter Baumgartner moving into a strategic advisor role, the company announc Etihad CEO Douglas Tightens Grip on Carrier to End Losses. Etihad Airways Chief Executive Officer Tony Douglas laid out plans to s ambitions following almost $3.5 billion in losses, saying more jobs may be cut and that jet orders are in doubt after a whirlwind sixcharge. Douglas will take personal responsibility for the main airline business, moving incumbent Peter Baumgartner to the new po confirmed that Etihad will focus more on serving Abu Dhabi, where it s based, than carrying globe-trotting passengers between contin Abu Dhabi National Oil Co (ADNOC) said on Tuesday it has the ability to increase oil production by several hundred thousand barr to alleviate any supply shortage in the global market. State-run ADNOC remains on track to increase its production capacity to 3.5 m from around 3.3 million bpd now, it said in a statement. The United Arab Emirates pumped 2.87 million bpd in June, two industry s Gulf OPEC member has the potential to boost supplies by some 400,000 bpd if it produces at maximum capacity now, with the possibi bpd more by the end of the year. Union Properties Names Khouri as MD, Approves Sukuk Issuance. The board approves the election of Ahmed Yousef Khouri as mana resignation as CEO, the Dubai-based property developer says in a statement. Board approves issuance of 500 million-dirham sukuk. Air Arabia, the Middle East and North Africa s largest low-cost carrier, on Tuesday said it received delivery of two new Airbus A320 total of 53.The new jets from Airbus, marks the completion of all deliveries scheduled for this year, Air Arabia said in a statement. Fitch Affirms National Bank of Ras Al-Khaimah at 'BBB+'. Fitch Ratings has affirmed UAE-based National Bank of Ras al-khaimah's Default Rating (IDR) at 'BBB+' with a Stable Outlook and downgraded the bank's Viability Rating (VR) to 'bb' from 'bb+'. A full list of r this rating action commentary. The VR downgrade reflects the weakening of the bank's performance and capital ratios. Fitch Affirms Bank of Sharjah at 'BBB+'; Downgrades VR to 'bb-'. Fitch Ratings has affirmed UAE-based Bank of Sharjah's (BOS) Long (IDR) at 'BBB+' with a Stable Outlook and downgraded the bank's Viability Rating (VR) to 'bb-' from 'bb'. A full list of rating actions is a commentary. The VR downgrade reflects the fall in the bank's capital ratios since end-2016 combined with an increasing part of ca traditional banking activities. Al Ramz Capital LLC, a subsidiary of Al Ramz Corporation Investments and Developments PJSC, has obtained a license for securities the Abu Dhabi Securities Exchange (ADX). International financial advisors disclosed that that the company have signed agreement with a foreign bank for settlement of a portion o Resultantly, goodwill impairment loss of KD3.1mln will appear in third quarter of ISKAN Oman Investment Co (OEIHC holds 10% stake) has decided to return 50% of capital and approved 20% cash dividend for the # GCC/ MENA Saudi Arabia's cabinet on Tuesday affirmed the kingdom's readiness to deploy its spare oil production capacity to maintain market bala carried by state news agency SPA said. The kingdom would use its spare capacity to address any future variations in supply and deman oil-producing countries, it said, after calls by U.S. President Donald Trump for Saudi Arabia to raise production. Saudi Arabia s biggest dairy has become a boycott target of citizens smarting over the cost of remaking the kingdom s economy. circulating photos of a popular yogurt drink plastered with a red X and the phrase let it go sour after Almarai raised the price of a 7 cents. In a statement, the dairy said it raised prices because its own costs went up after the government cut energy subsidies and int workers.

4 Bahrain has been working with asset manager and advisory firm Lazard for several months, a source close to the matter said. The c strained by a slump in oil prices in 2014 and its currency and international bonds reached multi-year lows last week, as investors in ability to stave off a potential financial crisis. Egypt's gross domestic product grew by 5.4 percent in the fiscal year that ended on June 30, new Prime Minister Mostafa the fastest growth rate of growth in a decade. Egypt's non-oil private-sector business activity grew slightly in June compared to May, but remained in contraction with reductions survey showed on Tuesday. The Emirates NBD Egypt Purchasing Managers' Index (PMI) for the private sector excluding the oil indus 49.2 in May, below the 50 mark that separates growth from contraction. The International Monetary Fund urged Egypt to maintain a tight monetary policy as a new round of subsidy cuts rekindled inflatio based lender praised Egypt s implementation of economic reforms as instrumental in achieving macroeconomic stabilisation, wit narrowing, inflation and unemployment declining, and growth accelerating. Egypt's Qalaa Holdings Sells 100% of Bonyan to Compass. Company sells real estate development unit Bonyan to Compass for 162m and settling liabilities to banks and third parties of 340m pounds ($19m), Qalaa says in an ed statement. Global Telecom Holding receives offer from Veon to acquire its assets in Pakistan and Bangladesh for total gross consideration of US a "fraction" of proceeds from the sale of its 50% stake in Wind Tre to CK Hutchison Holdings Ltd. to acquire the assets of Global Telec and Bangladesh, co. says in statement. VEON has submitted offer to Global Telecom Holding S.A.E. to buy Jazz and its associated Banglalink in Bangladesh for $2.55b gross Turkish consumer price inflation jumped to a 14-year high in June, official data showed on Tuesday, driving the lira down and putting to raise interest rates further this month. Inflation rose to percent year-on-year, the highest annual rate since 2004 after a new rises was introduced, and month-on-month CPI inflation leapt to 2.61 percent - nearly double the forecast in a Reuters poll. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) Volume Triggers Company Close Chg.(%) 52WH 52WL Turnover 30 DA Turnover Abu Dhabi Aviation 2.80 (5.72) ,527,921 29,673 Marka 0.34 (8.58) ,640,321 1,168,646 Invest Bank 2.35 (3.29) ,864, ,250 Aramex 4.06 (3.33) ,519,548 2,414,399 International Holding 1.44 (1.37) ,551, ,931

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