Integrated Securities Morning Report 06 January 2019 # Market Stats 1M 3M 1Y # UAE Trading Summary Indices Close Change Change Change Change AEDm Buy Sale Net ADX 4,898 0.6% 0.0% -2.2% 7.7% ADX 123 123 - DFM 2,526 0.2% -5.6% -9.5% -27.1% Local 18% 23% -5% TASI 7,830 0.5% -0.9% -2.1% 7.6% Foreign 82% 77% 5% BHSEASI 1,326-0.3% 0.0% 0.1% 1.0% Institution 85% 76% 10% EGX 13,265 0.5% 5.1% -6.0% -10.3% Retail 15% 24% -10% Dow Jones 23,433 3.3% -3.9% -11.4% -7.4% DFM 128 128 - S&P 500 2,532 3.4% -3.8% -12.3% -7.7% Local 47% 43% 4% Nasdaq 6,739 4.3% -3.3% -13.5% -5.6% Foreign 53% 57% -4% FTSE 100 6,837 2.2% 0.9% -6.6% -11.5% Institution 41% 39% 2% DAX 10,768 3.4% -0.2% -11.1% -19.2% Retail 59% 61% -2% CAC40 4,737 2.7% -1.6% -11.6% -13.4% Total 251 251 - Nikkei225 19,562-2.3% -9.8% -17.8% -17.5% Local 32% 33% -1% HIS 25,626 2.2% -1.7% -3.6% -16.8% Foreign 68% 67% 1% # Upcoming Corporate Actions & Events Date Company Event 06-Feb KHCB B. Meeting/ Results 10-Feb GFH B. Meeting/ Results 13-Feb ITHMR B. Meeting/ Results
# KEY STORIES Noor bank said to win right to swap Abraaj debt of USD100m for fund stakes Dubai Investments confirms AED 460 million Fujairah Business Centre project ahead of schedule 0.65m VAT returns submitted in first year of tax levy in UAE Empower plans big investment in infrastructure projects UAE's real GDP expected to grow 3.7pc in 2019 Oil price volatility underscores need for more Gulf reforms IMF New CEO of Saudi's biggest developer Dar Al Arkan expects market revival soon Oman's Galfar Awarded 2.9mln rials tender for HVAC Systems Bahrain Car Parks updates on MoU with Bahrain Real Estate Investment Egypt to auction $750 million in one-year dollar T-bills - C. Bank Turkish 2018 trade deficit shrinks 28.4 percent
# Key Global Trends/ Market Clues World stock markets rallied on Friday after China s central bank moved to support its slowing economy, Chinese services data pointed to positive growth, and Beijing announced a new round of trade talks with Washington. Markets were buoyed by the resumption of trade talks between China and the United States and by encouraging surveys of China s services sector. MSCI s world stock index up a third of percent and U.S. stock futures around 1.5 percent firmer. China s central bank said on Friday it was cutting the amount of cash that banks have to hold as reserves for the fifth time in a year, freeing up $116 billion for new lending as it tries to reduce the risk of a sharp economic slowdown. Oil rose nearly 2 percent on Friday after proposed trade talks between the United States and China eased some fears about a global economic slowdown, but gains were capped after the United States reported a sharp build in refined product inventories. Brent crude futures rose $1.11, a 1.98 percent gain, to settle at $57.06 a barrel. The 15-member Organization of the Petroleum Exporting Countries pumped 32.68 million barrels per day last month, the survey on Thursday found, down 460,000 bpd from November and the largest month-onmonth drop since January 2017. The survey suggests Saudi Arabia and some of its allies acted unilaterally to bolster the market as crude prices slid on the possibility of a new glut. A formal accord by OPEC and its allies to cut supply in 2019 took effect only on Tuesday. # UAE Stories Noor Bank, which provided a $100 million loan to the collapsed Abraaj Group, won the right to swap the debt for stakes in some of the Dubai-based buyout firm s funds, according to people with knowledge of the matter. Dubai Investments has announced that work on the AED 460 million Fujairah Business Centre project, developed by its joint venture entity Al Taif Investment, is 20.5% complete and on track to finish in June 2020, well ahead of its scheduled completion date of Q4 2020. The joint venture between Al Taif Investment and Fujairah Investment Establishment will have a total built-up area of 96,400 square meters, offering a 19-level
office tower and 19-level hotel and apartment tower as well as a shopping mall and retail area with parking for over 670 vehicles. The Federal Tax Authority (FTA) on Saturday announced that the number of businesses registered for valueadded tax (VAT) exceeded 0.30m while 0.65m VAT returns were submitted in 2018. The Emirates Central Cooling Systems Corporation (Empower) said it is set to invest heavily in infrastructure this year in a bid to further develop the emirate's efficiency as one of the world's leading business and entrepreneurial destinations. The outlook for the UAE economy is highly positive despite global headwinds with the country s real gross domestic product (GDP) is expected to grow 3.7 per cent this year, reported state news agency WAM. It is higher than the 2.9 per cent forecast for last year and the 0.8 per cent growth achieved in 2017 # GCC/ MENA Recent volatility in oil prices is underscoring the need for Gulf counties to continue reforms to diversify economies and encourage strong, and inclusive growth, according to the International Monetary Fund (IMF). Two IMF papers say greater openness to trade and foreign investment and more developed and inclusive financial sectors can help attain these goals. As the Saudi property market adjusts to conflicting dynamics of substantial government stimulus and regulatory reform at the same time that demand is dampened due to departing expatriates, the chief executive of the kingdom s largest listed real estate developer has said that he expects the market to return to growth. Yet Kelvin Kwok, the new CEO of Dar Al Arkan Real Estate Development Co, also said that providing financing for the average citizen is crucial to reviving the Saudi real estate market and remains cautious of international investments. Oman s Galfar Engineering and Contracting awarded tender for replacement & upgrading of HVAC systems and allied electro-mechanical and civil works. The tender is for exchanges at Muscat, Wattayah, Azaiba & TCC Salaiah-phase by Oman Telecommunications Company. Total value of contract is 2.9mln rials. Completion time of works is 18 months from date of engineers' instructions for commencement of work. Bahrain Car Parks updates relating to MOU signed with Bahrain Real Estate Investment (Edamah). The company appoints KPMG Fakhro as independent professional advisor in line with requirements of takeover, mergers and acquisitions module. Consultations are still underway on terms and pricing of the proposed transaction. Egypt will auction $750 million worth of one-year dollar-denominated treasury bills on Sunday, the central bank said on Thursday. The auction will be settled on Tuesday, when T-bills worth $944.5 million are due to mature. Dollar T-bills sold at the last auction on Dec. 10 carried a yield of 3.747 percent. Turkey's trade deficit tumbled 28.4 percent in 2018 to $55.0 billion, data released on Friday showed, with exports rising and imports declining as a currency crisis drove up the cost of imports and weakened domestic demand. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
# UAE FOCUS LIST - COMPANY DATA MCAP PRICE HIGH - LOW VALUATION DIV HISTORICAL RETURN Company (AEDm) (AED) 52WH 52WL TTM P/E TTM P/B YLD (%)^ 1M% 3M% 6M% 12M% ADCB 42,366 8.15 8.35 6.50 9.62 1.52 5.2% 0.6% 0.6% 15.8% 11.6% ADIB 14,346 3.95 4.27 3.46 6.40 1.10 6.9% 2.3% 8.2% 8.3% 10.9% ADNIC 1,463 3.90 4.00 3.40 8.19 0.69 NA 1.3% 4.0% 0.0% 14.7% Agthia 2,568 4.28 5.00 3.42 12.82 1.38 3.5% 9.7% 5.9% -12.3% -10.5% Air Arabia 4,900 1.05 1.33 0.94 10.10 0.73 9.5% 5.0% 9.7% 5.0% -15.3% Ajman Bank 1,888 0.90 1.18 0.82 9.70 0.76 0.0% 1.0% -7.3% -6.4% -21.8% Al Waha Capital 3,597 1.85 2.21 1.60 7.55 1.06 8.1% 5.7% -2.1% 2.8% -6.1% Aldar Properties 12,659 1.61 2.34 1.46 7.52 0.53 7.5% 1.9% -6.4% -21.1% -28.4% Amanat Holdings 2,800 1.12 1.60 0.98 103.90 1.11 1.3% 1.8% -5.1% -13.2% -21.7% Amlak Finance 555 0.37 1.09 0.32 NA 0.40 0.0% 6.6% -37.6% -49.5% -65.1% Arabtec 2,925 1.95 2.79 1.58 12.97 1.81 1.1% 1.6% 3.7% -4.4% -20.4% Aramex 6,003 4.10 4.75 3.72 11.92 2.32 8.0% -1.9% 2.5% -1.4% -4.7% Bank of Sharjah 2,100 1.00 1.24 0.99 6.80 0.51 0.0% -4.8% -8.3% -5.7% -18.7% DAMAC Properties 9,257 1.53 3.57 1.38 5.99 0.66 9.8% -11.6% -25.4% -29.8% -53.8% Dana Gas 6,628 0.95 1.21 0.71 21.55 0.63 1.4% 2.2% -18.8% -6.9% 21.8% Deyaar Development 2,028 0.35 0.60 0.32 15.45 0.46 0.0% -7.4% -20.9% -16.4% -33.1% Dubai Financial Market 6,472 0.81 1.17 0.70 39.55 0.83 6.2% 3.7% -11.2% -19.0% -29.7% Dubai Investment 5,485 1.29 2.55 1.16 6.13 0.46 9.3% 4.9% -30.3% -33.5% -48.2% Dubai Islamic Bank 32,948 5.00 5.90 4.66 6.82 1.41 8.0% -3.5% -6.0% 0.4% -11.3% DXB Entertainments 1,960 0.25 0.72 0.23 NA 0.35 0.0% -9.3% -33.8% -27.3% -64.5% Emaar Dev 17,600 4.40 5.49 4.21 5.65 2.32 0.0% -7.2% -9.6% -10.6% -16.0% Emaar Malls 23,686 1.82 2.38 1.65 11.06 1.42 5.5% 7.1% 1.1% -13.3% -16.5% Emaar Properties 28,997 4.05 7.02 3.85 5.33 0.62 3.5% -4.7% -17.0% -20.6% -42.0% Emirates Integrated Tele 22,949 5.02 5.24 4.73 12.44 2.80 4.4% 1.2% 1.4% 1.0% -4.2% Emirates NBD 49,186 8.85 11.00 8.10 5.32 0.94 4.5% -1.7% -5.7% -11.5% 9.0% Eshraq Properties 1,090 0.47 0.81 0.41 18.08 0.73 NA -8.0% -17.9% -26.7% -38.3% Etisalat 147,845 17.00 18.00 15.70 17.13 3.39 4.7% 0.6% 1.7% 2.4% -4.5% First Abu Dhabi Bank 152,566 14.00 15.20 10.75 13.30 1.70 5.0% -0.8% -4.5% 14.3% 28.4% GFH 3,288 0.89 1.61 0.73 7.93 0.82 9.8% -20.3% -33.9% -37.6% -42.8% Gulf Navigation Holding 780 0.85 1.24 0.72 NA 0.93 0.0% -15.9% -6.7% -13.4% -29.7% Gulf Pharmaceutical 2,410 2.08 2.38 1.90 NA 1.34 4.7% -1.0% 4.0% -3.3% -10.7% Marka 138 0.28 0.62 0.26 NA NA NA 0.0% 0.0% 0.0% -53.8% Mashreqbank 13,847 78.00 80.00 68.05 6.48 0.70 5.1% 5.4% 14.6% 4.7% 11.4% National Bank of Fujairah 7,893 4.80 4.80 2.50 15.58 1.76 1.5% 22.8% 41.2% 41.6% 3.2% National Central Cooling Co 4,725 1.74 2.00 1.45 10.65 1.03 4.6% 10.1% 13.7% 1.2% -7.4% RAK Bank 7,040 4.20 4.85 4.01 8.27 1.02 7.1% 0.2% 2.7% -4.5% -9.7% RAK Properties 1,000 0.50 0.84 0.45 8.12 0.26 10.0% -2.0% -17.6% -23.1% -35.1% Ras Al Khaimah 1,640 1.82 3.10 1.75 9.36 0.67 13.1% -5.2% -19.1% -24.2% -31.8% SALAMA 589 0.49 0.76 0.38 7.50 0.78 0.0% -0.8% -19.2% 23.3% -8.1% Sharjah Islamic Bank 3,404 1.16 1.52 1.11 6.76 0.64 6.9% 1.8% -3.3% -3.3% -15.3% Takaful Emarat Insurance 255 1.70 2.70 1.50 9.67 1.77 0.0% 1.8% -4.5% -13.7% -15.4% TAQA 6,673 1.10 1.45 0.50 9.92 1.49 0.0% 8.9% -3.5% -3.5% 96.4% Union National Bank 13,069 4.75 5.14 3.36 8.89 0.77 4.2% 2.2% -3.8% 30.1% 23.4% Union Properties 1,750 0.41 1.05 0.38 28.23 0.61 0.0% -12.1% -39.4% -42.8% -59.2% United Arab Bank 2,475 1.20 1.87 1.01 39.89 0.95 0.0% -4.0% 0.0% 18.8% -33.9% (Source: Bloomberg)
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