IS Morning Report Monday, July 23, 2018

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Transcription:

# Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 4,771 0.0% 5.2% 1.7% 8.5% 5.2% DFM 2,921-0.2% -0.2% -4.6% -13.3% -18.8% TASI 8,467 0.2% 3.2% 1.6% 17.2% 16.6% BHSEASI 1,352-0.2% 3.3% 4.1% 1.5% 2.2% EGX 15,304-0.7% -6.4% -15.4% 1.9% 11.6% Dow Jones 25,058 0.0% 1.9% 2.5% 1.4% 16.1% S&P 500 2,802-0.1% 1.7% 4.9% 4.8% 13.3% Nasdaq 7,820-0.1% 1.7% 9.7% 13.3% 22.4% FTSE 100 7,679-0.1% 0.0% 3.8% -0.1% 3.0% DAX 12,561-1.0% -0.1% -0.1% -2.8% 2.6% CAC40 5,398-0.3% 0.2% -0.7% 1.6% 5.5% Nikkei225 22,402-1.3% -0.5% 1.4% -1.6% 11.5% HIS 28,214 0.0% -3.8% -6.7% -5.7% 5.6% ADX 26 26 - Local 73% 69% 4% Foreign 27% 31% -4% Institutional 47% 41% 6% Retail 53% 59% -6% DFM 74 74 - Local 55% 69% -14% Foreign 45% 31% 14% Institutional 31% 34% -3% Retail 69% 66% 3% Total 100 100 - Local 60% 69% -9% Foreign 40% 31% 9% # Upcoming Corporate Actions & Events Date Company Event 23-July DXBE Board Meeting 23-July DFM Board Meeting 29-July ORDS Board Meeting 7-Aug KHCB Board Meeting 12-Aug ITHMR Board Meeting 13-Aug GFH Board Meeting

# Key Stories Abu Dhabi DED is implementing Dh50bn stimulus linked initiatives Abu Dhabi inflation expected to top 3 per cent in third quarter of 2018 UAE business loan demand rising gradually: Central Bank survey Abu Dhabi City Municipality inks deals with Aldar Properties to build 1,500 homes on Saadiyat Island Emirates, Etihad Airways said be in talks with South African Airways China's Silk Road Fund to invest in Dubai solar project UAE telecom subscribers number hits 24mln Abu Dhabi Commercial Bank markets $400m term loan RAK sees 14% increase in international visitors ADGM, South Africa s CIPC sign MoU Ooredoo signs a new USD 200m Term Loan Agreement with KFW IPEX-Bank United Arab Bank posts $22m H1 net profit National Bank Of Umm Al Qaiwain Q2 profit rises Al Mazaya Holding Q2 Profit Falls New World, Abu Dhabi Fund Seek To Amend, Extend Hotel M&A Loan Saudi Maaden unit seals new loan amendment deal Saudi bank Samba lifts profit by 10 pct for 2Q Oman tourism sector growth intact, reveals new data for H1 2018 AUB s net profit surges 14.8pc to $357.4 million for 1H HSBC, Credit Suisse to advise on Kuwait's KFH, Bahrain's AUB merger talks # Key Global Trends // Market Clues Asian shares dipped on Monday on fears of more protectionist measures from the United States while the dollar declined against major currencies after U.S. President Donald Trump criticized the Federal Reserve s tightening policy. Asian stocks took Wall Street's cue on Monday with MSCI's broadest index of Asia-Pacific shares outside Japan falling 0.2 percent. Japan's Nikkei stumbled 1.4 percent, Australian shares and South Korea's KOSPI index fell 0.9 percent each. Oil prices were mixed on Monday as finance ministers and central bank governors from the G20 warned that risks to global growth have increased with rising trade and geopolitical tensions among other vulnerabilities. Brent crude was up 2 cents at $73.09 a barrel by 0037 GMT. U.S. West Texas Intermediate was down 8 cents at $68.18 a barrel.

The International Monetary Fund (IMF) warned world economic leaders on Saturday that a recent wave of trade tariffs would significantly harm global growth. IMF Managing Director Christine Lagarde said she would present the G20 finance ministers and central bank governors meeting in Buenos Aires with a report detailing the impacts of the restrictions already announced on global trade. "It certainly indicates the impact that it could have on GDP (gross domestic product), which in the worst case scenario under current measure is in the range of 0.5 per cent of GDP on a global basis," Lagarde said at a joint news conference. # UAE Stories The Abu Dhabi Department of Economic Development is implementing seven of the 10 strategic initiatives linked to a three-year Dh50 billion stimulus package for the emirate unveiled in June, its head told The National on Sunday. The package, announced by Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, is aimed at supporting entrepreneurs, small to medium sized businesses and the private sector by bolstering growth, attracting more foreign direct investment and creating jobs. Inflation in Abu Dhabi is forecast to top 3 per cent in the third quarter of this year, according to the Statistics Centre-Abu Dhabi. Consumer prices in June rose 3.3 per cent, compared with 1.8 per cent for the same month a year earlier, the authority said on Sunday. In the first six months, the inflation rate reached 3.6 per cent. Demand for business loans in the United Arab Emirates rose moderately in the April-June quarter while demand for personal loans rebounded slightly after dropping in the previous quarter, a central bank survey showed on Sunday. The net balance measure for business lending - the weighted percentage of respondents reporting an increase in demand for loans minus those reporting a fall - rose to plus 11.8 in April-June from plus 4.6 in the previous quarter. Abu Dhabi City Municipality has signed five Real Estate Escrow Account agreements with Aldar Properties to build about 1,500 residential properties on Saadiyat Island. The agreements cover areas including Al Saadiyat Walk, Jawher Al Saadiyat, Leilak, Azur, and Turquoise for the construction of residential villas or property units. Two UAE airlines have held talks with South African Airways about a partnership that it says is needed to revive its business, City Press reported, citing the UAE ambassador to South Africa. An investment in the unprofitable carrier would come after the UAE pledged to invest as much as $10 billion in South Africa s economy, a commitment made during a visit by the nation s President Cyril Ramaphosa this month. Ramaphosa has started an aggressive push to attract foreign investment since taking over from Jacob Zuma in February. China s Silk Road Fund has acquire a 24.01% equity interest in the 700MW DEWA concentrated solar power (CSP) project in Dubai. The DEWA CSP project, which was awarded to an ACWA Power led consortium in 2017, is the 4th phase of the Mohamed bin Rashid Solar Park, the largest single-site concentrated solar power plant in the world. The agreement will see the project jointly invested and developed by DEWA, Silk Road Fund, and ACWA Power. The number of subscribers to telecommunications services in the UAE rose to around 24 million during the first five months of 2018, a growth of around 2 per cent compared to the end of 2017, a media report said. All relevant sectors registered growth since the start of the current year, highlighting the availability of telecommunications services offered to clients by the operators Etisalat and Du. Abu Dhabi Commercial Bank markets $400m term loan. The facility which is equally split into a 3Y tranche A and 5Y tranche B where only tranche (B) is syndicated Ras Al Khaimah Tourism Development Authority (RAKTDA), has announced a 14 per cent increase in international visitors during the first six months of the year. This is ahead of the industry forecast of 4 per cent tourism growth in the Middle East in the first half of 2018.

The Registration Authority of Abu Dhabi Global Market (ADGM) has signed a Memorandum of Understanding (MoU) with the Companies and Intellectual Property Commission (CIPC) of South Africa. As part of the MoU, ADGM will work collaboratively with CIPC on issues of mutual interest in the registries sector by incorporating each organisation s appropriate resources and technical capacity. Ooredoo announced today that it has signed a new USD 200 million Term Loan Agreement for a 5 year period with KFW IPEX-BANK GMBH, Frankfurt, a state owned German Bank. The loan will be used to fund Ooredoo s capital investment program sourced from European supply chain partners. United Arab Bank (UAB) reported net profits for the first six months of 2018 at Dh81 million ($22 million), representing an uplift of 46 per cent compared with the same period last year, a media report said. The profit was primarily driven by growth in Core income and reduction in provision charges following a transition to a lower risk business model. National Bank of Umm al Qaiwain posted Q2 profit AED 106.8 mln versus AED 87.2 mln year ago. The banks Q2 total interest income and income from Islamic financing stood at AED137.4 mln versus AED 117.8 mln year ago. Al Mazaya Holding Co posted Q2 net profit attributable to shareholders 1.6 mln dinars vs 2.3 mln dinars year ago and operating revenue 7.9 mln dinars vs 16.2 mln dinars year ago. Hong Kong property developer New World Development Co. and sovereign wealth fund Abu Dhabi Investment Authority are seeking to cut the interest margin and to extend the maturity of a HK$9.25b loan signed in June 2015. # GCC/ MENA Saudi Arabian Mining Company said its subsidiary Maaden Bauxite and Alumina Company has signed an agreement with the Public Investment Fund to amend the terms of its existing loan of SR3.75 billion ($1 billion) which has been reduced to SR3.506 billion ($935 million) through previous repayments. A major player in the region, MBAC is 74.9 per cent owned by Maaden and 25.1 per cent by US aluminium giant Alcoa Corporation. Samba Financial Group, Saudi Arabia's third-largest bank by assets, reported a 10.2 percent rise in second-quarter net profit on Sunday, in line with analysts' forecasts. The bank made a profit of 1.4 billion riyals ($373 million) in the three months to June 30, up from 1.27 billion riyals in the same period a year earlier, it said in a bourse statement. Oman has seen an increase of 100,000 visitors in the first half of 2018, compared to the same time period last year. According to the latest figures released by the National Centre for Statistics and Information (NCSI), 1.4 million visitors entered the country through May 2018, while 1.3 million were recorded in May 2017 and 909,000 in May 2016. Ahli United Bank (AUB) reported a net profit of $357.4 million for the six months ended June 30, reflecting a robust growth of 14.8 per cent compared with the net profit of $311.3m achieved in the first half of 2017. The second quarter net profit of $182.7m represents a 20.3pc improvement over $151.9m reported in the same period last year. HSBC and Credit Suisse have been selected to advise on a possible merger between Ahli United Bank (AUB) and Kuwait Finance House (KFH), AUB said on Sunday. A merger between Bahrain's largest bank and Kuwait's biggest Islamic lender would be the first cross-border tie-up between Gulf banks in recent years at a time when several other banks are consolidating.

(Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business) Disclaimer This report was prepared by Integrated Securities ( IS ) in and for the United Arab Emirates ( U.A.E. ). IS is a securities brokerage company regulated by the Emirates Securities and Commodities Authority (and neither an investment nor a financial advisory firm). The information contained in this report is given in summary and does not purport to be complete. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. Content of this report is provided solely for informational purposes and private circulation and should not be construed as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or any other financial product or instrument, or adopting any hedging or investment strategy and does not take into account your particular investment objectives, financial situation, tax implications or any other needs. Before acting on any information you should consider and confirm the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek professional financial advice. While based on information believed to be reliable, we do not guarantee and make no express or implied representation as to the accuracy of this report or complete description of the securities markets or developments referred to in this report. The information, contained in this report are as of the date indicated and are subject to change at any time without prior notice. This report may provide the addresses of, or contain hyperlinks to, websites. IS has not reviewed any such site and takes no responsibility for the content of the same. Such address or hyperlink is provided solely for your convenience and information and the content of any such website does not in any way form part of this document. Accessing such website or following such link through this report or IS s website shall be at your own risk. The stated price of any securities mentioned in this report is as of the date indicated and is not a representation made by IS that any transaction can be effected at this price. This report is for UAE distribution and only under such circumstances as may be permitted by applicable law. The information contained in this report is not intended nor can it be construed as intended to be directed to any US persons (being any US Citizens, US Green Card Holders, or Resident Aliens subject to US income taxes for IRS purposes) unless stated otherwise. Neither IS nor its officers, directors or shareholders or other persons shall be liable for any direct, indirect, incidental or other damages including loss of profits arising in any way from the information contained in this report. This report is a mere update intended solely for the use by the intended recipients and the content of it may not be reproduced, redistributed or copied in whole or in part for any purpose without IS s prior express consent.