UAE Morning Daily. Market UAE 11 October Equity Research Team. Regional News

Transcription

1 EQUITY RESEARCH UAE Morning Daily Market UAE Regional News Dubai ruler breaks ground at US$1bn Creek Harbour Tower project Drake & Scull International has appointed Wael Allan as CEO Etihad Airways said to mandate banks for benchmark Islamic bond Aramco informed Egypt about suspending oil product supply Saudi Arabia's Falih says OPEC should not crimp supply too tightly Qatar National Bank 3Q16 net profit up 10.2% Global News Eurozone Sentix investor confidence at 4-month high Japan has JPY2,000.8bn current account surplus German exports rebound in August UK Like-For-Like sales add 0.4% in September Please refer to page 3 for detailed news Equity Research Team Nikhil Poddar, CFA ( ) nikhil.poddar@adcb.com Table of Contents S.No. Particulars Page 1 Market brief 2 2 News 3 3 Valuation 6 4 Corporate calendar 8 Market Snapshot GCC Markets Close 1 day % 1 Wk % 1 M % 3 M % 1 Yr % YTD % Dubai (DFM) 3, Abu Dhabi (ADI) 4, Saudi (TASI) 5, Kuwait (KSE) 5, Qatar (QSE) 10, Oman (MSM 30) 5, Bahrain (BHB) 1, Global Markets Close 1 day % 1 Wk % 1 M % 3 M % 1 Yr % YTD % US Dow Jones Ind. Avg. 18, S&P 500 2, Europe Deutsche Boerse AG German 10, CAC 40 4, FTSE 100 7, Asia Nikkei , Hong Kong HSI 23, Shanghai SE Comp. 3, Global Commodities Commodity Close 1 day % 1 Wk % 1 M % 3 M % 1 Yr % YTD % Brent (US$/bbl) Gold (US$/oz) 1, Cu (US$/MT) 4, Al (US$/MT) 1, Note: Nikkei 225, Hong Kong HIS and Shanghai SE closing value as of 07:50 AM UAE time, while other global markets closing as of Oct 10 Sources: Bloomberg, LME, CME Group, Exchange websites 1 adcbsecurities.com

2 10:00 AM 10:30 AM 11:00 AM 11:30 AM 12:00 PM 12:30 PM 1:00 PM 1:30 PM 2:00 PM 10:00 AM 10:30 AM 11:00 AM 11:30 AM 12:00 PM 12:30 PM 1:00 PM 1:30 PM 2:00 PM MARKET UPDATE United Arab Emirates DFM increases 0.3% ADX gains 0.6% After a negative start, the DFM edged down, owing to heavy Following a flat start, the ADX traded between 4,350 and selling pressure, and hit an intra day low of 3,324 within the 4,370 until late morning. In the afternoon, the index gained first half-an-hour of trade. Afterwards, positive momentum traction and traded at around 4,365 until late afternoon. drove the market all day and the index traded between Before closing, the ADX surged and ended the day at its 3,330 and 3,355 until late afternoon. In the last few minutes intra-day high of 4,387, up 0.6%. The index was boosted by of trade, the DFM moved further and closed the day at its gains in the banking and telecommunication sectors. The intra-day high of 3,359, up 0.3%. The index ended in the Banking sector increased 0.9%, as First Gulf Bank (FGB) green zone, led by a rise in the banking sector, which added added 2.2%. The Telecommunication sector gained 0.5% as 1.0%, as Dubai Islamic Bank (DIB) gained 2.5%. Total market Emirates Telecommunication (ETISALAT) rose 0.5%. Total turnover stood at 204 million shares worth AED 292mn. market turnover stood at 45 million shares worth AED 83mn. Emirates NBD and DIB were the most traded by value, ETISALAT and FGB were the most traded by value, accounting for AED 62mn (21%) and AED 56mn (19%), accounting for AED 27mn (33%) and AED 16mn (19%), respectively. Of the 35 stocks traded, 16 rose, 10 fell, and 9 respectively. Of the 27 stocks traded, 12 declined, 5 remained unchanged. advanced, and 10 remained unchanged. 3,370 3,355 3,340 3,325 3,310 4,390 4,380 4,370 4,360 4,350 Transactions by investor type (DFM) Type Market Share% Buy% Sell% Net% Net Value* Arab GCC Others UAE Nationals Transactions by investor type (ADX) Type * in AED million * in AED million Market Share% Buy% Sell% Net% Net Value* Arab GCC Others UAE Nationals Top gainers (DFM) Company Latest 1D Chg Drake and Scull International % International Financial Advisors % Al Salam Group % Dubai Islamic Ins. and Reins % HITS Telecom % Top losers (DFM) Company Latest 1D Chg Marka 1.05 (9.5%) Ekttitab Holding 0.44 (2.0%) SHUAA Capital 0.87 (1.4%) Amanat Holdings 0.83 (1.2%) Dubai Investment 2.00 (1.0%) Sources: Exchange websites (DFM and ADX) and Reuters Top gainers (ADX) Company Latest 1D Chg Al Khazna Insurance Co % First Gulf Bank % National Bank of Abu Dhabi % Emirates Telecommunications % Agthia Group % Top losers (ADX) Company Latest 1D Chg Manazel Real Estate 0.47 (6.0%) AD National Co Building Mat 0.54 (3.6%) Abu Dhabi National Energy 0.54 (3.6%) Union Cement 1.13 (2.6%) Ras Al Khaimah Ceramic Co (1.4%) Sources: Exchange websites (DFM and ADX) and Reuters adcbsecurities.com 2

3 Regional News Dubai ruler breaks ground at US$1bn Creek Harbour Tower project Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum launched construction work on Emaar's The Tower at Dubai Creek Harbour which, once completed, will be 100 metres taller than Burj Khalifa. Source: October 10, 2016 Damac properties to release new luxury hotel apartment units in Dubai Damac Properties has announced the new release of units in Damac Maison Privé, waterfront hotel apartments in the Burj area. Source: October 10, 2016 Drake & Scull International has appointed Wael Allan as CEO Drake & Scull International (DSI), hit by tough conditions in the regional building industry, said it had appointed Wael Allan as its new chief executive, replacing Khaldoun Tabari. Source: Scull_replaces_CEO_as_shares_slump-TR nL8N1CG0GVX2/ October10, 2016 Etihad Airways said to mandate banks for benchmark Islamic bond Etihad Airways has hired banks for a potential Islamic bond sale, according to people familiar with the matter. The thirdbiggest airline in the Gulf Cooperation Council (GCC) mandated banks including HSBC Holdings Plc, National Bank of Abu Dhabi PJSC and Dubai Islamic Bank PJSC for the offering. Source: October 10, 2016 PetroGulf subsidiary, ADCO ink US$34mn contract Superior Abu Dhabi Company, a subsidiary of PetroGulf, announced signing a US$34mn contract with Abu Dhabi Company for Onshore Petroleum Operations (ADCO). Source: October 10, 2016 IFA unit exits AED39mn investment in UAE International Financial Advisors (IFA) received a notification from IFA Hotels and Resorts that a subsidiary in Dubai has sold a project worth AED39mn (US$10.62mn). Source: October 10, 2016 Dubai's RTA officially signs US$2.9bn deal for metro extension Dubai's transport authority said that it has officially signed the contract to build the Route 2020 metro expansion project to Expolink, a consortium of French, Spanish and Turkish companies. Source: October 10, 2016 Sovereign sukuk issue stable, Moody s Malaysia (A3 stable) and Indonesia (Baa3 stable) continue to regularly issue long-term sovereign Sukuk, according to a report by Moody's Investor Services. Gulf countries have favoured conventional debt structure to finance their deficit, the report said, adding that issuance levels may approach US$28bn in Source: October 10, 2016 UAE August inflation rises 0.6% The UAE inflation increased in August by 0.55% y-o-y, according to a report published by National Bureau of Statistics. Source: October 10, 2016 Nasdaq Dubai, IdealRatings launch indices to track Sukuk Nasdaq Dubai and IdealRatings announced the launch of benchmark indices that track the performance of global Sukuk, in order to provide investors with new data to make informed trading decisions. Source: October 10, 2016 UAE insurance premiums reach US$10bn in 2015 Insurance premiums rose 10.2% in 2015, compared to 2014, reaching AED37bn, according to industry figures. Source: October 10, 2016 adcbsecurities.com 3

4 Saudi Arabia Aramco informed Egypt about suspending oil product supply Saudi Arabia Aramco informed the Egyptian General Petroleum Corporation, Egypt's state oil company, that it would halt the supply of refined oil products to Egypt, a government official told. Source: TR nL8N1CG2RGX4/ October 10, 2016 Saudi Arabia's Falih says OPEC should not crimp supply too tightly Saudi Arabia's Energy Minister Khalid al-falih said that OPEC should not crimp oil supply too tightly and said he was optimistic a global production deal to limit supplies could be reached by November. Source: TR nL8N1CG1BWX2/ October 10, 2016 Saudi Arabia to meet investors ahead of debut sovereign bond Saudi Arabia will meet fixed income investors as it prepares to sell its first sovereign bond, arranging banks said. Source: TR nD5N1A502IX7/ October 10, 2016 SEDCO Capital's REIF II buys seven properties in Saudi Arabia for SAR473mn SEDCO Capital, announced the acquisition of seven quality real estate assets over the past 19 months on behalf of SEDCO Capital Real Estate Income Fund II (SCREIF II), bolstering the firm s realty portfolio in Saudi Arabia. Source: October 10, 2016 Saudi Arabia public debt reaches US$73bn The Saudi Arabia Finance Ministry said that the direct public debt reached SAR273.8bn (US$73bn) Source: October 10, 2016 ADX sees foreign buying at AED1.47bn in September Foreign buying and selling activities in Abu Dhabi Securities Exchange (ADX) stood at AED1.47bn and AED 1.33bn in September 2016, according to a report issued by ADX. Source: October 10, 2016 UAE's ADX second growing index in GCC in September after Bahrain Abu Dhabi Securities Exchange, ADX, has climbed 0.12% in September to reach 4476 and become the second growing index in the GCC after Bahrain. Source: WAM / October 10, 2016 Qatar National Bank 3Q16 net profit up 10.2% Qatar National Bank (QNB), the Gulf's largest lender, reported a 10.2% increase in 3Q16 net profit, according to Reuters, broadly in line with analysts' forecasts. Source: October 10, 2016 Oman establishing 216 new industrial projects As many as 216 industrial projects are under different stages of construction, while plots are allotted for another 421 new units in different industrial estates and a free zone located across the Sultanate of Oman, the Public Establishment for Industrial Estates (PEIE) said. Source: October 10, 2016 Egyptian inflation eases, still 14.1% in September Egypt's annual urban consumer price inflation eased to 14.1% in September, from an eight-year high of 15.5% in August, the official statistics agency CAPMAS said. Source: October 10, 2016 adcbsecurities.com 4

5 Norway opens US$1bn credit line to facilitate exports to Iran The Norwegian Foreign Minister Borge Brende has announced that his country has opened a one-billion-dollar credit line for the Norwegian companies' exports to Iran. Source: ZAWYA / October 10, 2016 Global News Eurozone Sentix investor confidence at 4-month high The Sentix investor confidence index for Eurozone climbed to 8.5 in October from 5.6 in September, survey by sentix showed. That was well above the score of 6.0 expected by economists. Source: October 10, 2016 Japan has JPY2,000.8bn current account surplus Japan posted a current account surplus of JPY2,000.8bn in August, an increase of 23.1% on year, the Ministry of Finance said. Source: October 10, 2016 German exports rebound in August Exports climbed a seasonally adjusted 5.4% m-o-m in August, reversing a 2.6% decrease in July, from Destatis showed. Source: October 10, 2016 UK Like-For-Like sales add 0.4% in September Like-for-like sales in the UK were up 0.4% in September, the British Retail Consortium said. Source: October 10, 2016 adcbsecurities.com 5

6 Valuation table Dubai Financial Market - Valuation table Name Banks Day close Chg YTD 3M ADVT M. Cap. Trailing P/E Trailing P/B Dividend yield Earnings growth (AED) (%) (%) U$mn U$mn (x) (x) (%) (%) Ajman Bnk NA 70.1 Comm Bnk of Dubai , Dubai Islamic Bnk , Emirates NBD , Mashreq Bnk , Consumer Discretionary DXB Entertaintment ,223 NA 1.5 NA Marka NA 1.3 NA NA Energy Gulf Navigation NA Insurance Arabian Scandina NA NA Islamic Arab NA 0.7 NA Dubai Ins Dubai Islamic Ins NA 0.9 NA 0.0 Dubai Natl Ins Islamic Arab Ins NA 0.7 NA National General Ins Oman Ins NA Takaful House Takaful Emarat NA 2.0 NA NA Industrials Air Arabia , Aramex , Drake & Scull NA 0.5 NA NA Tabreed Materials National Cement Non-Bank Financial Insitutions Amanat Hldg NA Amlak Finance NA Dubai Investment , Dubai Financial , Gulf General Inv NA 0.9 NA NA Shuaa Capital NA 1.1 NA NA Real Estate & Constructions Arabtec Holding ,784 NA 2.1 NA NA Damac Prop , Deyaar Development NA 3.3 Emaar Prop , Emaar Malls , Union Prop NA Telecommunication Emirates Integrated (Du) , Source: Bloomberg, ADCB Securities Equity Research adcbsecurities.com 6

7 Valuation table (cont d) Abu Dhabi Exchange - Valuation table Name Day close Chg YTD 3M ADVT M. Cap. Trailing P/E Trailing P/B Dividend yield Earnings growth (AED) (%) (%) U$mn U$mn (x) (x) (%) (%) Banks Abu Dhabi Comm. Bnk , Abu Dhabi Islamic Bnk , Bnk of Sharjah NA -6.9 Commercial Bnk NA 1.5 NA NA First Gulf Bnk , Invest Bnk Natl. Bnk. of Abu Dhabi , Natl. Bnk. of Umm Al-Qawain , Natl. Bnk. of Ras Al-Khaimah , Sharjah Islamic Bnk United Arab Bnk NA 1.2 NA NA Union Insurance Bnk NA 129 NA 1.5 NA Union National Bnk , Consumer Staples & Discretionary Abu Dhabi Natl. Hotels Emirates Driving Natl. Corp for Tourism & Hotels Agthia Group , Intl. Fish Farming Hldg NA 1.6 NA 31.0 Foodco Hldg NA Energy Dana Gas , NA 16.7 Health Care Gulf Medical Proj Gulf Pharmaceuticals Insurance Abu Dhabi Natl Al Buhaira Natl Al Khazana NA 0.5 NA 12.3 Al Ain Ahlia NA Al Wathba Natl NA Emirates Industrials Abu Dhabi Aviation Abu Dhabi Ship Bldg NA Natl Marine Dredging Ras Al Khaimah Ceramics Materials Abu Dhabi Natl. Co NA 0.4 NA NA Arkan Bldg NA 26.1 Fujairah Cement Gulf Cement Co Ras Al Khaimah Cement Ras Al Khaimah White Cement Sharjah Cement Union Cement Non-Bank Financial Insitutions Waha Capital Real Estate & Constructions Aldar Properties , Eshraq Propertie NA NA Rak Properties Telecommunication Etisalat , Ooredoo Qsc , Utilities Abu Dhabi Natl NA 2.9 NA 40.0 Source: Bloomberg, ADCB Securities Equity Research adcbsecurities.com 7

8 UAE Corporate Calendar DFM Date Company Name Event 11-Oct-2016 Gulf Navigation Holding BDM 17-Oct-2016 Emirates NBD BDM- 3Q16 17-Oct-2016 Dubai Refreshment BDM 18-Oct-2016 Al Sagar National Insurance Company BDM 31-Oct-2016 Al Salam Bank Bahrain BDM 13-Nov-2016 GFH Financial Group BDM ADX Date Company Name Event 16-Oct-2016 Abu Dhabi Ship Building BDM 16-Oct-2016 Union National Bank BDM 20-Oct-2016 Gulf Pharmaceutical Industries BDM 30-Oct-2016 Ooredoo BDM- 3Q16 30-Oct-2016 Abu Dhabi Aviation Company BDM Sources: Exchange websites adcbsecurities.com 8

9 DISCLAIMER Sources All information in this report has been obtained from the following sources except where indicated otherwise: 1. Bloomberg 2. RTT News 3. Reuters 4. CNBC 5. Zawya 6. Indian Express 7. The National 8. Gulf News 9. Arabian Business 10. Mubasher 11. Argaam Disclosures Regulated by Securities and Commodities Authority License no This document is for information and illustrative purposes only; it is in no way a recommendation for, or an offer or solicitation to buy or sell, any equity, and only factual information is provided. ADCB Securities will not be held liable for any information provided in this document that is stated to have been obtained from third-party sources; this information may be based on assumptions or market conditions and may change without notice. The information in this report was prepared by employees of ADCB Securities and is current as of the date of the report. The information contained herein has been obtained from sources that ADCB Securities believes to be reliable, but ADCB Securities does not guarantee its accuracy, adequacy, completeness, reliability, or timeliness, and will not be held liable for any investment decisions made based on this information. Moreover, ADCB Securities is not responsible for any errors or omissions or for the results obtained from the use of such information. All information and estimates included in this report are subject to change without notice. This report is intended for qualified customers of ADCB Securities. You may not redistribute this report without explicit permission from ADCB Securities. SALES CONTACTS Call Center (within UAE) (outside UAE) adcbsecurities@adcb.com Head of Institutional Desk Chahir Hosni Chahir.Hosni@adcb.com adcbsecurities.com 9