Integrated Securities Morning Report 26 December 2018 # Market Stats 1M 3M YTD 1Y # UAE Trading Summary Indices Close Change Change Change Change Change AEDm Buy Sale Net ADX 4,801-0.3% -3.4% -2.6% 9.1% 11.1% ADX 48 48 - DFM 2,467 0.3% -9.5% -11.1% -26.8% -26.0% Local 69% 66% 3% TASI 7,718-0.6% 2.5% -2.2% 6.8% 7.5% Foreign 31% 34% -3% BHSEASI 1,313 0.0% -1.0% -2.8% -1.4% 2.2% Institution 38% 42% -4% EGX 12,671-0.9% -2.9% -13.3% -15.6% -15.1% Retail 62% 58% 4% Dow Jones 21,792-2.9% -10.3% -17.7% -11.8% -12.0% DFM 118 118 - S&P 500 2,351-2.7% -10.7% -19.4% -12.1% -12.4% Local 58% 59% -1% Nasdaq 6,193-2.2% -10.8% -22.7% -10.3% -11.0% Foreign 42% 41% 1% FTSE 100 6,686-0.5% -3.8% -10.9% -13.0% -11.9% Institution 22% 24% -1% DAX 10,634 0.0% -5.0% -13.9% -17.7% -18.7% Retail 78% 76% 1% CAC40 4,626-1.4% -6.5% -15.6% -12.9% -13.8% Total 166 166 - Nikkei225 19,146-0.1% -12.2% -20.3% -15.9% -16.4% Local 61% 61% 0% HIS 25,651-0.4% -1.1% -6.7% -14.3% -13.3% Foreign 39% 39% 0% # Upcoming Corporate Actions & Events Date Company Event 27-Dec UPP B. Meeting/T. Shares 29-Dec Invest Bank GM/Capital Changes 30-Dec Gulfa S. Meeting/ S. Resolution 06-Feb KHCB B. Meeting/ Results 13-Feb ITHMR B. Meeting/ Results
# KEY STORIES Drake and Scull international board accepts resignation of Abdulla Atatreh from his position as chairman Invest Bank seeks general assembly approval on issued capital increase of AED1.12bn at AED0.70/ share. UAE central bank asked Invest Bank to book a provision of 2.2 billion dirhams ($599 million) Empower settles $728mln loan in full Goldilocks Investment Company reiterated its support and confidence in its investments made over the past three years GFH updates on its stock performance, associates the correction to international & regional markets pressures and margins calls that have impacted investors National International Holding updates on acquisition of 50 pct debt sukuk owned by Lagoon City Sukuk Insurance firm Marsh launches China desk in Dubai to tap growing commerce Saudi's SAFCO seeks banks for role in acquisition of SABIC stakes in agri-nutrients businesses Saudi Electricity obtains SAR 2.4 billion bilateral facility for 5 years from Samba Financial Group Head of Russia's RDIF says considering investing in Arctic LNG 2 project with Saudi Aramco Saudi s Acwa Power won a contract to develop the Rabigh 3 independent waterdesalination plant (IWP) located on the kingdom's Red Sea coast. Saudi November CPI +2.8 pct y/y and -0.2 pct m/m Saudi s Knowledge Economic City signs agreement with Saudi Railways Organization for land of al Haramain express railway station in Madinah Bahrain oil products to be excluded from VAT implementation Bahrain's annual GDP growth slows to 1.6 per cent in Q3 2018 Egyptian Transport and Commercial Services considering to enter into investment in goods transport by rail Egypt Poverty Rate Rose to Over 30% in 2017: Al-Borsa
# Key Global Trends/ Market Clues Asian equities were shaky on Wednesday following a Christmas eve Wall Street plunge, as investors were unnerved by U.S. political developments. U.S. Treasury Secretary Steven Mnuchin had also raised market concerns by convening a crisis group amid the pullback in stocks. MSCI s broadest index of Asia-Pacific shares outside Japan dipped 0.15 percent. The Shanghai Composite Index inched down 0.1 percent; however, Japan s Nikkei bounced 0.75 percent after diving 5 percent the previous day to a 20-month low and slipping into bear market territory. U.S. West Texas Intermediate crude futures were up 35 cents, or 0.82 percent, at $42.88 per barrel, at 0152 GMT, having at one point risen as high as 2 percent from the last close. They had slumped 6.7 percent in the previous session to $42.53 a barrel - the lowest since June 2017. Russian President Vladimir Putin has no immediate plans for contact with Saudi Arabia over falling oil prices, a Kremlin spokesperson said on Tuesday. Dmitry Peskov also said that this month's agreement between the Organization of Petroleum Exporting Countries and other leading oil producers to cut oil output in order to support oil prices may have "a lagging impact" on the market. # UAE Stories Drake and Scull International board accepts resignation of Abdulla Atatreh from his position as chair and agreed to replace Abdulla Atatreh by current independent board member Obaid Bin Touq as chairman. Abdulla Atatreh will remain member of the board and the company approved resignation of Yousef Al Mulla as group CEO. Invest Bank seeks general assembly approval on issued capital increase of AED1.12bn at AED0.70/ share. UAE central bank asked Invest Bank to book a provision of 2.2 billion dirhams ($599 million). Sharjah government has agreed to inject 1.9 billion dirhams in two stages. Initially, the government will provide 1.115 billion dirhams in return for 1.59 billion new Invest Bank shares, taking Sharjah s stake in the lender to 50.07 percent. The government will also subscribe in full to the shares offered to it as part of a rights issue in 2019. Emirates Central Cooling Systems Corporation (Empower) has settled a $728 million loan and the company will have zero debt in its books at the end of the year," the statement by the company said. Goldilocks Investment Company reiterated its support and confidence in its investments made over the past three years. The company has maintained/increased its stake in various companies including GFH Financial Group, Dana Gas, Islamic Arab Insurance (Salama), Gulf Navigation Holding and Takaful Emarat. GFH updates on its stock performance, associates the correction to international & regional markets pressures and margins calls that have affected investors. National International Holding updates on acquisition of 50pct debt sukuk owned by Lagoon City Sukuk. The company says value of acquired debt sukuk is 21.4mln dinars and accrued interest on acquired debt sukuk is 2.8mln dinars additionally. Marsh, one of the world's largest insurance brokers and risk advisers, has launched a China desk in Dubai to benefit from growing commercial links between China, the Middle East and Africa. # GCC/ MENA Saudi Arabia Fertilizers Co (SAFCO) has invited banks to pitch for an advisory role in its potential acquisition of stakes in five agri-nutrients businesses now held by Saudi Basic Industries Corp (SABIC). Saudi Electricity obtains SAR 2.4 billion bilateral facility for 5 years from Samba Financial Group. The purpose of credit facility for general corporate purposes and capital expenditures.
Russian sovereign wealth fund RDIF is considering investing in the Arctic LNG 2 project with Saudi Aramco, RIA news agency quoted the head of RDIF, Kirill Dmitriev. Saudi s Acwa Power won a contract to develop the Rabigh 3 independent water-desalination plant (IWP) located on the kingdom's Red Sea coast. Saudi November CPI +2.8pct y/y and -0.2pct m/m. Saudi s Knowledge Economic City signs agreement with Saudi Railways Organization for land of al Haramain express railway station in Madinah. Under the agreement, company with unit will relinquish land on which station located east of KEC project to SRO. Bahrain will exclude oil products from a value-added tax (VAT) due to be implemented next year, part of an essential goods exclusion from the tax, Oil Minister Sheikh Mohammed bin Khalifa al-khalifa said. Bahrain's annual growth in gross domestic product (GDP), adjusted for inflation, slowed in Q3 2018 as both the oil and non-oil sectors lost momentum. GDP grew 1.6 per cent from a year earlier in Q3 slowing from 2.5 per cent in Q2. Egyptian Transport and Commercial Services considering entering into investment in goods transport by rail. The company hires integrated marketing solutions to implement studies; expects study to be completed in Q1 next year. Egypt Poverty Rate Rose to Over 30% in 2017: Al-Borsa. Initial indicators on income and spending show that the poverty rate in Egypt climbed to 30.2% in 2017 compared to 27.8% in 2015, the Cairo-based daily reports citing unidentified government officials. * Poverty line for 2017 at between 700-800 Egyptian pounds per month, up from around 482 pounds in 2015 * Official figures expected to be released by the state s statistical agency, CAPMAS, in February. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
# UAE FOCUS LIST - COMPANY DATA MCAP PRICE HIGH - LOW VALUATION HISTORICAL RETURN Company (AEDm) (AED) 52WH 52WL TTM P/E TTM P/B 1M% 3M% 6M% 12M% ADCB 42,158 8.11 8.35 6.50 9.58 1.52 1.2% 3.7% 12.6% 20.7% ADIB 14,165 3.90 4.27 3.46 6.32 1.08-2.5% 8.0% 7.8% 8.6% ADNIC 1,463 3.90 4.00 3.40 8.19 0.69 8.3% 4.0% 1.3% 14.7% Agthia 2,364 3.94 5.00 3.51 11.80 1.27 2.3% -10.9% -18.4% -17.1% Air Arabia 4,569 0.98 1.33 0.94 9.42 0.68-5.0% 0.1% -0.6% -20.4% Ajman Bank 1,768 0.84 1.18 0.83 9.08 0.71-12.7% -11.4% -14.1% -24.8% Al Waha Capital 3,208 1.65 2.21 1.60 6.73 0.95-7.8% -10.8% -8.3% -8.3% Aldar Properties 11,873 1.51 2.34 1.48 7.06 0.50-9.6% -15.2% -24.1% -31.1% Amanat Holdings 2,500 1.00 1.60 1.00 92.76 0.99-9.1% -12.3% -21.9% -28.1% Amlak Finance 522 0.35 1.09 0.32 NA 0.38-30.7% -42.7% -54.8% -66.2% Arabtec 2,835 1.89 2.79 1.58 12.57 1.75-15.2% -0.5% -6.4% -20.9% Aramex 6,003 4.10 4.75 3.72 11.92 2.32-5.3% 2.0% 3.8% -2.4% Bank of Sharjah 2,142 1.02 1.24 1.00 6.94 0.53-5.6% -6.4% -3.8% -13.6% DAMAC Properties 8,833 1.46 3.57 1.42 5.72 0.63-26.6% -27.0% -34.8% -55.5% Dana Gas 5,665 0.81 1.21 0.69 18.42 0.54-21.2% -28.8% -21.9% 5.5% Deyaar Development 1,936 0.34 0.60 0.32 14.75 0.44-18.3% -26.5% -26.5% -31.8% Dubai Financial Market 6,168 0.77 1.17 0.70 37.70 0.79-11.7% -14.6% -21.5% -30.5% Dubai Investment 5,230 1.23 2.55 1.16 5.85 0.44-15.2% -34.9% -36.3% -49.0% Dubai Islamic Bank 32,882 4.99 5.90 4.66 6.81 1.41-5.8% -5.5% 1.4% -9.5% DXB Entertainments 1,904 0.24 0.72 0.24 NA 0.34-25.6% -32.0% -32.2% -62.2% Emaar Dev 18,440 4.61 5.49 4.21 5.92 2.43-6.9% -5.8% -4.7% -4.9% Emaar Malls 22,775 1.75 2.38 1.65 10.64 1.36-7.9% -1.7% -18.2% -14.6% Emaar Properties 28,925 4.04 7.06 3.93 5.32 0.62-15.8% -16.0% -20.2% -38.6% Emirates Integrated Tele 22,720 4.97 5.24 4.73 12.31 2.77-0.8% -1.2% 1.4% -0.2% Emirates NBD 45,852 8.25 11.00 8.10 4.96 0.87-8.3% -6.3% -15.8% -1.7% Eshraq Properties 1,081 0.47 0.81 0.45 17.93 0.72-18.4% -15.1% -31.6% -35.4% Etisalat 147,671 16.98 18.00 15.70 17.11 3.38 0.5% 6.1% 5.5% -0.1% First Abu Dhabi Bank 151,694 13.92 15.20 10.15 13.22 1.69-3.3% -2.8% 16.0% 36.5% Gulf Navigation Holding 791 0.86 1.36 0.77 NA 0.94-22.5% -4.4% -10.3% -35.6% Gulf Pharmaceutical 2,421 2.09 2.38 2.00 NA 1.35-0.5% -5.0% -7.1% -4.7% Marka 138 0.28 0.62 0.26 NA NA 0.0% 0.0% 0.0% -50.7% Mashreqbank 12,782 72.00 80.00 68.05 5.98 0.64-2.7% 5.8% -3.4% 2.9% National Bank of Fujairah 7,384 4.49 4.65 2.50 14.58 1.64 32.1% 51.7% 32.4% -3.5% National Central Cooling Co 4,535 1.67 2.00 1.45 10.22 0.99 7.1% 5.0% -2.3% -7.7% RAK Bank 7,158 4.27 4.85 4.02 8.41 1.04 2.4% 0.5% -1.8% -8.2% RAK Properties 986 0.49 0.84 0.45 8.01 0.26-7.2% -18.5% -23.0% -31.5% Ras Al Khaimah 1,586 1.76 3.10 1.75 9.05 0.64-12.0% -23.1% -24.1% -32.6% SALAMA 549 0.45 0.76 0.38 7.00 0.73-21.7% -27.6% 8.4% -11.8% Sharjah Islamic Bank 3,258 1.11 1.52 1.11 6.47 0.61-5.9% -5.9% -7.5% -14.6% SHUAA Capital 851 0.80 1.30 0.74 12.11 0.95-22.4% -20.1% -23.9% -34.0% Takaful Emarat Insurance 246 1.64 2.70 1.50 9.33 1.70-6.8% -6.3% -4.1% -18.0% TAQA 5,569 0.92 1.45 0.50 8.28 1.25-10.0% -18.8% -19.5% 66.9% Union National Bank 12,959 4.71 5.14 3.36 8.81 0.76-1.1% -5.0% 30.8% 24.6% Union Properties 1,703 0.40 1.05 0.38 27.47 0.59-34.6% -41.7% -44.9% -57.3% United Arab Bank 2,578 1.25 1.87 1.01 41.55 0.99 0.0% 10.6% 0.8% -24.1% (Source: Bloomberg)
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