Integrated Securities Morning Report 13 December 2018

Transcription

1 Integrated Securities Morning Report 13 December 2018 # Market Stats 1M 3M YTD 1Y # UAE Trading Summary Indices Close Change Change Change Change Change AEDm Buy Sale Net ADX 4, % -2.8% -2.4% 9.5% 9.9% ADX DFM 2, % -9.5% -9.8% -24.8% -26.6% Local 47% 37% 10% TASI 7, % 0.8% 2.7% 8.5% 10.1% Foreign 53% 63% -10% BHSEASI 1, % 0.7% -1.7% -1.0% 4.3% Institution 74% 85% -12% EGX 12, % -7.4% -18.2% -15.7% -13.2% Retail 26% 15% 12% Dow Jones 24, % -4.0% -6.3% -1.4% -0.5% DFM S&P 500 2, % -3.3% -8.7% -1.4% -1.0% Local 44% 45% -1% Nasdaq 7, % -2.3% -11.6% 1.9% 2.5% Foreign 56% 55% 1% FTSE 100 6, % -3.5% -6.9% -11.5% -9.2% Institution 44% 52% -8% DAX 10, % -4.8% -10.4% -16.5% -18.2% Retail 56% 48% 8% CAC40 4, % -5.0% -9.9% -9.5% -11.4% Total Nikkei225 21, % -3.2% -4.6% -5.3% -5.7% Local 45% 40% 5% HIS 26, % 2.1% -0.7% -12.5% -9.1% Foreign 55% 60% -5% # Upcoming Corporate Actions & Events Date Company Event 16-Dec Salama G. Assembly 16-Dec Aldar B. Meeting/Operations 17-Dec Dubai Investments B. Meeting/Operations 17-Dec UNB B. Meeting/Operations

2 # KEY STORIES SUMMERY Dana Gas says group production reached 70,000 barrels of oil per day (boepd) on the 19 Nov and has sustained above that level Agthia looking at acquisitions in bid to hit 2020 revenue target, CEO says National International Investors to buy Al-Khair stake of 29.6% in Coast Investment and Development Kuwait Finance House updates on Abraaj Water divestment Dubai Aerospace signs $535mln revolving credit facility UAE interbank rates have dropped on good liquidity -central bank EGA's $1.4bn Guinea project in final phase of construction Dubai non-oil private sector posts strong growth UAE says oil producers to review cuts impact in April Emirate of Ajman plans debut international bond Saudi Arabia fines four Tadawul-listed firms for incorrect filings Malaysia's MIDF said to mull merger with Saudi's Al Rajhi Saudi Steel Pipes wins Aramco contract to supply pipes Saudi's Al Kathiri signs non-binding MOU with Spain's Constructora D Aro Fitch says killing of Khashoggi unlikely to affect Saudi rating Kuwait MPs overwhelmingly approve amended early retirement law Egypt to build $3bn hydroelectric plant in Tanzania Egyptian Tourah Cement updates on sale of land in Nile Corniche Egypt CB deputy governor wants World Bank and IMF to include the country s informal sector in GDP and overall macro indicators Egypt Suez Canal Revenues $5.6B in Fiscal : Mameesh

3 # Key Global Trends/ Market Clues Asian shares and the pound moved higher on Thursday as investors breathed a sigh of relief after British Prime Minister Theresa May survived a no-confidence vote and as China appeared to be taking more steps to meet U.S. demands to open its markets. In equity markets, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent in early Asian trade after U.S. stocks finished the previous session higher, amid cautious optimism for progress in Chinese-U.S. trade talks. Oil prices rose on Thursday, buoyed by a drawdown in U.S. crude inventories and signs that China is taking more concrete steps to put a trade war truce with Washington into action. Crude oil prices have also been supported by OPEC-led supply curbs announced last week, although gains were capped after the producer group lowered its 2019 demand forecast. International Brent crude oil futures were at $60.46 per barrel at 0213 GMT, up 31 cents, or 0.52 percent, from their last close. OPEC said on Wednesday it had offset a drop in sanctions-hit Iranian oil exports and lowered the 2019 forecast of demand for its crude, underlining the challenge the producer group faces to prevent a glut even after last week's decision to trim output. In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would fall to million barrels per day, 100,000 bpd less than predicted last month and 1.53 million less than it currently produces. # UAE Stories Dana Gas says group production reached 70,000 barrels of oil per day (boepd) on the 19 Nov and has since been sustained above that level. Production landmark of 70,000 boepd because of ramp up of production from its debottlenecking project in Kurdistan region of Iraq. Current group production, in excess of 70,000 boepd, represents significant increase compared to company s 9m 2018 average of 62,250 boepd. The company says "further investment is underway to double current production to 900 mmscf/d over the coming three years together with an increase in condensate to 36,000 bpd and LPG to 1200 mtpd ". Dana Gas Egypt completed drilling of balsam-8 well ahead of schedule and under budget, adding over 5,000 boepd to the company s output. "The increase in production will help offset the lower realized hydrocarbon prices that have impacted the oil industry in the last quarter and support growth in our revenue and net profit figures for the full year 2018 and beyond," Chief Executive Officer Patrick Allman-Ward said. Agthia is studying potential acquisition targets in order to help it meet a target set by its chairman of reaching $1 billion in revenue by the end of 2020, its CEO has said. The target, which was reiterated in the company s 2017 annual report by chairman Dhafer Ayed Al Ahbabi, is some way off being met as things stand, with revenue for the first nine months of 2018 declining by 5.2 percent to almost 1.49 billion dirhams ($405.7 million). National International Investors has signed a sale and purchase agreement with Al Khair National for Stock and Real Estate Company to buy its stake in Coastal Investment and Development which represents 29.6% of paid up capital - 185million shares of company for 34 fils per share Finance House, subsidiary of KFH group has divested investment in Abraaj Water by 92 pct. Total value of transaction amount is 20.1mln dinars, which resulted in profit of 3.4mln dinars for KFH group. Dubai Aerospace Enterprise (DAE) said on Wednesday it signed a $535 million four-year unsecured revolving credit facility, including the option to increase to $600 million. The deal was arranged by Dubai-based bank Emirates NBD as sole mandated lead arranger and book runner. Interbank rates in the United Arab Emirates have edged down in the last three months because of good liquidity in the money market, central bank chief Mubarak Rashed al-mansoori said on Wednesday. The overnight Emirates interbank offered rate has slipped about 5 basis points since mid-october, although longerterm rates have continued to trend up because of the outlook for further increases in U.S. rates. Emirates Global Aluminium (EGA), the largest industrial company in the UAE outside oil and gas, has announced that 75 per cent of the construction work on its giant bauxite mining project in the Republic of

4 Guinea in West Africa has been completed. The project has a total budgeted project cost of $1.4 billion and is being developed by EGA s subsidiary Guinea Alumina Corporation. Dubai s non-oil private sector showed a stronger improvement in November with data reflecting faster expansions in business activity and new work and a stable trend in employment, said a report. The three main sectors monitored all registered stronger performances, with construction seeing the fastest growth, said the Emirates NBD Dubai Economy Tracker. Oil producers who agreed last week to trim production to boost prices will meet in April to review the impact and sign a long-term pact, the UAE minister said Wednesday. Ajman, the smallest emirate in the seven-member UAE federation, plans to sell its first U.S. dollardenominated bond next year. # GCC/ MENA The Saudi Capital Market Authority (CMA) announced its decision to impose fines of SAR 20,000 on four companies listed on the Saudi Stock Exchange (Tadawul). The fines, which total SAR 80,000 are due to the violation of rules after disclosing incorrect information in its market announcements. Malaysian Industrial Development Finance, the state-backed lender, is exploring a combination with the local unit of Saudi Arabia s Al Rajhi Bank as it seeks to become a universal Islamic bank, people familiar with the matter said. Saudi Steel Pipes wins two contracts to supply pipes to Aramco for over 75 million riyals. Financial impact of the contract will appear in first half of Al Kathiri Holding announces signing of non-binding memorandum of understanding with Constructora D Aro. The company says MOU is for granting exclusive concession for production of construction of tridimensional with establishment of a factory for the production of construction of tridimensional in Saudi Arabia. Rating agency Fitch said the killing of Saudi journalist Jamal Khashoggi at the Saudi Arabian consulate in Istanbul is unlikely to affect its assessment of the kingdom s credit risk. The Kuwait s National Assembly yesterday overwhelmingly passed an amended early retirement law in the first reading despite opposition by several MPs to the legislation that allows Kuwaiti civil servants to retire early against a small reduction in pension. Tanzania has signed a deal with Egypt's El Sewedy Electric and Arab Contractors to build a $3 billion hydroelectric plant on a World Heritage site in the country, that will more than double Tanzania's power generation capacity. Energy Minister Medard Kalemani, said in comments broadcast on state television on Wednesday. Egyptian Tourah Portland Cement updates on sale of land owned by company located in Nile Corniche, Tourah. Highest price reached during auction was EGP 2,700 per square meter for total offered area of 392,800 square meter. Board will meet to approve the sale of land. Egypt CB deputy governor wants World Bank and IMF to include the country s informal sector in GDP and overall macro indicators. Egypt Suez Canal Revenues $5.6B in Fiscal : Mameesh. Canal revenues up 12% from year earlier, the state-run Middle East News Agency reports citing Mohab Mameesh, the Suez Canal Authority s head. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) # UAE FOCUS LIST - COMPANY DATA

5 MCAP PRICE HIGH - LOW VALUATION HISTORICAL RETURN Company (AEDm) (AED) 52WH 52WL TTM P/E TTM P/B 1M% 3M% 6M% 12M% ADCB 42, % 2.9% 8.0% 17.9% ADIB 14, % 3.9% 7.5% 11.8% ADNIC 1, % 2.7% 0.0% 1.3% Agthia 2, % -17.1% -20.6% -21.4% Air Arabia 4, % 1.3% -11.5% -18.7% Ajman Bank 1, % -4.1% -12.9% -21.4% Al Waha Capital 3, % -7.0% -4.4% -1.7% Aldar Properties 12, % -18.2% -27.8% -31.1% Amanat Holdings 2, % -9.9% -18.0% -16.8% Amlak Finance NA % -42.7% -54.0% -62.9% Arabtec 2, % 6.5% -12.0% -19.2% Aramex 6, % -1.6% 4.5% -11.3% Bank of Sharjah 2, % -3.7% -4.6% -16.3% DAMAC Properties 10, % -18.0% -31.3% -50.9% Dana Gas 5, % -31.0% -24.0% 12.5% Dar AL Takaful % -33.2% -36.1% -49.9% Deyaar Development 2, % -15.6% -25.4% -28.4% Dubai Financial Market 6, % -21.4% -29.0% -32.7% Dubai Investment 5, % -33.8% -39.2% -46.5% Dubai Islamic Bank 34, % 0.2% 1.6% -5.2% DXB Entertainments 2, NA % -30.7% -36.9% -62.7% Emaar Dev 17, % -9.5% -12.0% -12.2% Emaar Malls 22, % -9.0% -20.4% -20.7% Emaar Properties 31, % -12.1% -23.0% -36.0% Emirates Integrated Tele 22, % -2.6% 0.6% 0.2% Emirates NBD 49, % -3.3% -11.0% 9.9% Eshraq Properties 1, % -10.5% -27.7% -27.7% Etisalat 146, % 6.0% 3.0% -2.0% First Abu Dhabi Bank 152, % -3.2% 14.3% 35.3% Gulf Navigation Holding NA % 8.6% 2.8% -22.9% Gulf Pharmaceutical 2, NA % 4.5% -2.8% -6.8% Marka NA NA 0.0% 0.0% 0.0% -53.3% Mashreqbank 12, % 5.8% -2.7% -0.7% National Bank of Fujairah 6, % 32.1% 50.4% -15.9% National Central Cooling Co 4, % 1.3% -8.6% -13.5% RAK Bank 6, % -5.6% -5.6% -15.1% RAK Properties % -19.3% -25.8% -32.9% Ras Al Khaimah 1, % -13.6% -19.1% -23.9% SALAMA % -15.1% 20.5% 2.5% Sharjah Islamic Bank 3, % -5.0% -7.4% -15.7% SHUAA Capital % -17.8% -19.3% -28.4% Takaful Emarat Insurance % -3.3% -21.1% -12.0% TAQA 5, % -17.7% -20.5% 55.0% Union National Bank 12, % -8.1% 26.4% 20.2% Union Properties 1, % -42.1% -49.4% -53.7% United Arab Bank 2, % 4.2% 0.8% -24.1% (Source: Bloomberg)

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