Integrated Securities Morning Report 16 December 2018 # Market Stats 1M 3M YTD 1Y # UAE Trading Summary Indices Close Change Change Change Change Change AEDm Buy Sale Net ADX 4,862 0.5% -3.2% -1.5% 10.5% 12.0% ADX 1,966 1,966 - DFM 2,599 1.0% -6.4% -7.5% -22.9% -22.5% Local 95% 96% -1% TASI 7,914 0.3% 3.3% 4.3% 9.5% 11.9% Foreign 5% 4% 1% BHSEASI 1,319-0.1% 0.7% -1.9% -0.9% 4.2% Institution 98% 98% 0% EGX 12,997 1.1% -3.6% -15.1% -13.5% -11.5% Retail 2% 2% 0% Dow Jones 24,101-2.0% -5.2% -7.5% -2.5% -2.2% DFM 275 275 - S&P 500 2,600-1.9% -5.0% -10.0% -2.8% -2.8% Local 69% 65% 4% Nasdaq 6,911-2.3% -4.7% -12.5% 0.1% -0.4% Foreign 31% 35% -4% FTSE 100 6,845-0.5% -2.4% -6.3% -11.0% -8.6% Institution 61% 58% 3% DAX 10,866-0.5% -4.2% -10.2% -15.9% -17.1% Retail 39% 42% -3% CAC40 4,854-0.9% -3.4% -9.3% -8.6% -9.3% Total 2240 2240 - Nikkei225 21,375-2.0% -1.4% -7.4% -6.1% -5.2% Local 91% 92% 0% HIS 26,095-1.6% -0.3% -3.1% -12.8% -9.5% Foreign 9% 8% 0% # 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 18-Dec Amlak B. Meeting/Operations 30-Dec Gulfa S. Meeting/S. Resolutin
# KEY STORIES SUMMERY Air Berlin's administrator sues Etihad for up to $2.26bln Government of Sharjah to acquire stake in struggling Invest Bank Agility mulls $1bn bond in 2019 and is confident in Abraaj bid Gulfa shareholders to decide whether to dissolve firm Marseilia updates on MOU with UAE's Amlak to develop urban project Dubai's Damac awards new contract for Akoya Oxygen project Marka CEO Benoit Lamonerie Resigns Moody's confirms Commercial Bank of Dubai's long-term deposit ratings at Baa1, changes the outlook to negative Abraaj credit fund said to be taken over by Kuwait's NBK Capital Saudi Aramco, Raytheon to set up cyber security company Baker Hughes wins oil wells contract from Saudi Aramco Saudi s Audi Enaya Cooperative Insurance shareholders approve capital increase by 200 million riyals through rights issue Saudi Arabia said to target US. with sharp oil export cut Kuwait to allow foreign ownership in bank shares without caps-kuna Kuwait's Noor receives letter of intent for part of its stake in Meezan Bank Egypt 5-yr CDS rise to highest since August 2017 Egypt's Hassan Allam Holding aims to float 30-35 pct of its shares on the Egyptian Stock Exchange in H1 2019 Egyptian Exchange says Moon Capital Partners Master Fund raises stake in Global Telecom Egypt's Pharos Holding says set to launch microfinance services Moody's revises Lebanon's rating to negative on higher geopolitical risks
# Key Global Trends/ Market Clues Oil prices slipped on Friday after China reported slower economic growth, pointing to lower fuel demand in the world s biggest oil importer, although market sentiment was supported by supply cuts agreed last week by major crude producers. Benchmark Brent crude was down 40 cents at $61.05 per barrel by 0820 GMT, on course for a decline this week of around 1 percent. U.S. light crude was 25 cents lower at $52.33. Asian shares tumbled on Friday after China reported a set of weak data, fanning fresh worries of a slowdown in the world s second-biggest economy and leaving investors fretting over the wider impact of a yet unresolved Sino-U.S. trade dispute. MSCI s broadest index of Asia-Pacific shares outside Japan fell 1.3 percent. Japan s Nikkei, also dragged down by the country s weak tankan sentiment index, dropped 2.0 percent. The US Trade Representative s office on Friday officially changed the scheduled date of a tariff rate increase on $200 billion worth of Chinese goods to 12:01am. EST (0501 GMT) on March 2, 2019 as the United States and China pursue talks on trade and intellectual property. The change was made in a Federal Register filing from a previously scheduled effective date of Jan. 1, 2019 for the increase to 25 per cent from 10 per cent. The global oil market could move into deficit sooner than expected thanks to OPEC's output agreement with Russia and to Canada's decision to cut supply, the International Energy Agency said on Thursday. The Parisbased IEA kept its 2019 forecast for global oil demand growth at 1.4 million barrels per day, unchanged from its projection last month, and said it expected growth of 1.3 million bpd this year. # UAE Stories German airline Air Berlin's insolvency administrator is suing Abu Dhabi's Etihad, its former owner, for damages of up 2 billion euros ($2.26 billion), a Berlin court said on Friday. Etihad owned a 29 percent stake in Air Berlin and had been providing funding since becoming a shareholder in early 2012. In April 2017, Etihad sent a letter of support to Air Berlin, saying it would continue to provide funding for the next 18 months. But just months later, Etihad said it would no longer provide funding, saying Air Berlin's business had deteriorated at an unprecedented pace. The Sharjah government will take a majority stake in struggling Invest Bank, the lender said on Friday, in a move it said would help ensure its future growth. Invest, one of the smaller banks in the UAE has been hit by recent high levels of bad loans, partly due to its exposure to the troubled real estate and construction market. The lender, currently 15.5 per cent owned by Sharjah-based International Private Group, said its board of directors will recommend a capital injection by the Sharjah government which will make it a majority strategic investor in the lender. It did not give details of the size of the stake or the value of its investment. Agility is mulling a bond issuance of up to $1 billion in 2019 to fund expansion and remains confident in an investment deal in part of embattled private equity player Abraaj, its CEO said.the logistics and warehousing company, which plans to invest $1.6bn by 2020, is seeking to grow its industrial real estate and warehousing business across emerging markets to meet growing demand driven by e-commerce transactions. Gulfa board calls shareholders meeting on Dec 30 to discuss special resolution to continue carrying out activities of company or to dissolve expiry of its term as accumulated losses exceeds 50pct of paid up share capital. Marseilia Egyptian Gulf Real Estate Investment updates on MOU with Amlak to develop urban project. Project is expected to generate sales of EGP 10-12bln and the company is currently studying, reviewing partnership agreement between both companies. Damac Properties has awarded a contract worth AED40 million to Proscape at its 55 million-square-foot community, Akoya Oxygen in Dubai. The contract covers roads and infrastructure works at Aquilegia, a 207,000 square-metre cluster which comprises 629 luxury villas and townhouses, the developer said. Marka CEO Benoit Lamonerie Resigns
Moody's confirms Commercial Bank of Dubai's long-term deposit ratings at Baa1, changes the outlook to negative. Liquidators of the collapsed private equity fund Abraaj Group are close to completing the transfer of its credit fund to another investment manager as they seek to wind down the company, according to people familiar with the matter. NBK Capital Partners, the private equity arm of Kuwait s biggest bank, will make a nominal payment and could take over management of the Abraaj Global Credit Fund as soon as January.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 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. # GCC/ MENA Saudi Aramco signed a memorandum of understanding (MoU) with Raytheon through its local subsidiary Saudi Arabian Raytheon Company to establish a new company to develop and deliver the best cyber security services in the Kingdom as well as in the Middle East and North Africa region. Baker Hughes, a GE company, has been awarded a major stimulation and well-testing contract by Saudi Aramco to be a partner in optimizing production from new and existing wells across conventional fields in Saudi Arabia. Saudi s Audi Enaya Cooperative Insurance shareholders approve capital increase by 200 million riyals through rights issue. Audi Arabia said to target US with sharp oil export cut. Saudi crude shipments to US. in Jan could even test 30-year low set in late 2017 of 582,000 barrels a day. Saudi total exports set to drop to around 7mln barrels a day in Jan, down from about 8mln barrels a day in Nov-Dec. Bloomberg Kuwait's ministry of commerce and industry will allow foreign ownership and trading in shares of Kuwaiti banks without caps, state news agency KUNA said on Saturday. Investors would need approval from the central bank of Kuwait if ownership exceeded five percent of the bank's capital, it said. Noor Financial Investment receives letter of intent from a foreign financial institution to buy part of its stake in Pakistan's Meezan Bank. Noor Financial Investment stake to be purchased 5.96pct of Meezan Bank's Capital. The cost of insuring Egyptian government bonds using Credit Default Swaps hit its highest in 16 months on Friday. Data from Markit showed 5-year CDS climbed to 379 basis points which was the highest since August 2017. Egypt's Hassan Allam Holding aims to float 30-35pct of its shares on the Egyptian Stock Exchange in H1 2019. Egyptian Exchange said Moon Capital Partners Master Fund buys 34.4mln shares in Global Telecom for EGP109.9mln. Moon Capital Partners Master Fund stake in GT rises to 4.80pct from 4.07 pct. Egypt's Pharos Holding will start buying into private equity and will enter the non-banking financial services market in 2019. The company will launch microfinance portfolios in Q1 2019 worth EGP 400-500mln ($22-28mln) and the company expects to close its first private equity deal in renewable energy in h1 2019. Co- CEO Moody's has revised Lebanon's outlook to negative from stable, while maintaining credit ratings at B3, owing to the government's weak liquidity position and financial stability. The ratings agency said the revision was in large part "a consequence of domestic and geopolitical risks that have become more intractable." (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
# UAE FOCUS LIST - COMPANY DATA (Source: Bloomberg)
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