Integrated Securities Morning Report 03 February 2019 # Market Stats 1M 3M 1Y # UAE Trading Summary Indices Close Change Change Change Change AEDm Buy Sale Net ADX 5,045 0.8% 2.6% 2.5% 9.4% ADX 222 222 - DFM 2,568 1.1% 1.5% -8.5% -24.8% Local 32% 50% -18% TASI 8,560-0.3% 9.8% 8.6% 11.8% Foreign 68% 50% 18% BHSEASI 1,391-0.1% 4.0% 6.0% 2.5% Institution 88% 75% 13% EGX 14,127 0.2% 8.4% 7.0% -6.4% Retail 12% 25% -13% Dow Jones 25,064 0.3% 7.0% -0.8% -1.8% DFM 192 192 - S&P 500 2,707 0.1% 6.9% -0.6% -2.0% Local 33% 47% -14% Nasdaq 7,264-0.2% 7.8% -1.3% 0.3% Foreign 67% 53% 14% FTSE 100 7,020 0.7% 2.7% -1.0% -5.7% Institution 51% 40% 11% DAX 11,181 0.1% 3.8% -2.9% -12.5% Retail 49% 60% -11% CAC40 5,019 0.5% 6.0% -1.6% -6.4% Total 414 414 - Nikkei225 20,788 0.1% 6.3% -6.5% -10.7% Local 32% 49% -16% HIS 27,931 0.0% 9.0% 5.5% -14.3% Foreign 68% 51% 16% # Upcoming Corporate Actions & Events Date Company Event 03-Feb CBD B. Meeting/ Results 04-Feb ADIB B. Meeting/ Results 05-Feb ADNH B. Meeting/ Results 06-Feb TAQA B. Meeting/ Results 06-Feb KHCB B. Meeting/ Results 10-Feb GFH B. Meeting/ Results 11-Feb Eshraq General Assembly 13-Feb ADNIC B. Meeting/ Results 13-Feb ITHMR B. Meeting/ Results
# KEY STORIES FAB board proposes to increase foreign ownership limit to 40pct from 25pct FAB Full year 2018 group net profit at AED12.0bn, up 10% from AED10.9 bn in 2017. FY dividend per share 74 fils ADNOC, US firm sign $244m Abu Dhabi oil exploration deal Dubai Investments signs USD 300mln bilateral term loan facility with Emirates NBD Bank Fitch affirms Abu Dhabi Commercial Bank at 'A+' on merger announcement Azizi unveils giant park, new homes in Riviera mega project Actis pushes for investor vote on Abraaj fund takeover UAE and Saudi bourses partner for dual listings Emirates Global Aluminium secures $6.5b for debt refinance Sharjah Islamic Bank calls shareholders meeting to discuss issue of non-convertible sharia compliant tier 1 instruments of upto AED 2.8bln Agthia Group posted FY net profit 210.5mln dirhams vs 206.1mln dirhams year ago Abu Dhabi National Takaful FY net profit attributable to shareholders 70.4mln dirhams vs 59.1mln dirhams year ago Noor Capital says it bought 3 tonnes of gold from Venezuela IMF says UAE economy starting to recover from low oil price Saudi economy grows 2.21% in 2018, modest growth seen in 2019 Saudi Aramco, Total announce dealt with Daelim to build new PIB facility Saudi Leejam Sports opens two new branches in Tabuk with investment of SAR 34 mln Olayan Saudi Investment raises stake to 5.17pct from 3.71pct in Qalaa Holdings Egyptian Exchange says Banque Misr buys 73.4mln shares representing 7.51pct stake of Egyptian Iron and Steel from Metallurgical Industries Holding Orascom Development says its largest subsidiary in Egypt, Orascom Development Egypt has entered main Egyptian Stock Exchange index 'EGX 30' Egypt Aluminum posted H1 net profit after tax EGP 758.3mln vs EGP 1.15bln year ago Egyptian Iron and Steel posted H1 net loss EGP 348.3mln vs loss of EGP 231.3mln year ago Egypt s Nozha International Hospital posted FY net profit after tax EGP 43.1mln vs EGP 36.3mln year ago Egypt s General Company for Silos and Storage posted H1 net profit after tax EGP 49.2mln vs EGP 43.5mln year ago
Egypt s Juhayna Food posted consolidated net profit EGP 408.2mln vs EGP 197.7mln year ago Egypt's Marseilia to develop integrated urban project in new administrative capital Egypt's Heliopolis posted H1 net profit after tax EGP 48.6mln vs EGP 59.2mln year ago Egyptian M2 money supply growth slows to 13.3 pct in December Central Bank # Key Global Trends/ Market Clues Asian shares crept back from four-month highs on Friday as a dismal survey on Chinese factory activity dulled optimism about the prospects for a Sino-U.S. deal on tariffs. MSCI s broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent, though that followed a stellar 7.2 percent gain in January. Oil prices rose about 3 percent on Friday on upbeat U.S. jobs data and signs that U.S. sanctions on Venezuelan exports have helped tighten supply, then extending gains after weekly data showed U.S. drillers cut the number of oil rigs. Brent crude oil futures rose $1.91 a barrel, or 3.14 percent, to settle at $62.75 a barrel. The international benchmark notched a weekly gain of about 1.9 percent. OPEC oil supply has fallen in January by the largest amount in two years, as top exporter Saudi Arabia overdelivered on the group's supply pact while Iran, Libya and Venezuela registered involuntary declines. The 14- member Organization of the Petroleum Exporting Countries has pumped 30.98 million barrels per day (bpd) this month, the survey showed on Thursday, down 890,000 bpd from December and the largest month-onmonth drop since January 2017. # UAE Stories First Abu Dhabi Bank board proposed to increase foreign ownership limit from to 40pct from 25pct. The board proposed to increase number of shares under the existing staff stock option scheme by 22.5mln shares.
FAB Full year 2018 group net profit at AED12.0 billion, up 10% from AED10.9 billion in 2017. FY dividend per share 74 fils. FY operating income of AED19.4 billion. As of end-dec 2018, customer deposits at AED 465 billion, up 18 percent year-on-year. Q4 group net profit 2.93 billion dirhams versus 2.82 billion dirhams year ago. As of end- Dec 2018, loans and advances at AED 353 billion, up 7 percent year-on-year. Q4 group net interest income 3.27 billion dirhams versus 3.36 billion dirhams year ago. FAB Sees 2019 net profit growth mid-single digit vs 10% in 2018. Abu Dhabi National Oil Company (ADNOC) announced on Saturday, the signing of an agreement to award an onshore block known as Onshore Block 3 to US-based oil and gas exploration and production company Occidental Petroleum. Under the terms of the agreement, Occidental will hold a 100 percent stake in the exploration phase, investing AED893 million ($244 million), including a participation fee, to explore for oil and gas in Onshore Block 3.Upon successful exploration, Occidental will be granted the opportunity to develop and produce any discoveries. ADNOC has the option to hold a 60 percent stake in the production phase of the concession. Dubai Investments signs USD 300mln bilateral term loan facility with Emirates NBD Bank. Financing extends for a tenor of 5.5 years and will be utilized to repay existing sukuk of USD 300mln maturing in Feb 2019. Fitch Ratings has affirmed UAE-based Abu Dhabi Commercial Bank's (ADCB) Long-Term Issuer Default Rating (IDR) at 'A+' with a Stable Outlook and Viability Rating (VR) at 'bb+' following the recent announcement of ADCB's merger with Union National Bank (UNB, A+/bbb-) and acquisition of Al Hilal Bank (AHB, A+/b+). Azizi Developments has unveiled Les Jardins, a giant park in Azizi Riviera, the company s flagship waterfront development in Meydan One. The developer also released Le Pavillon, a nine-storey residential building that overlooks the new garden. Actis plans to instigate an investor vote from next week on its proposed takeover of one of Abraaj's biggest funds, seeking indemnity from potential legal claims against the Dubai buyout group, said a source close to Actis. Abu Dhabi Securities Exchange (ADX) and Saudi Stock Exchange (Tadawul) have signed an agreement to strengthen bilateral cooperation in the dual listing of securities in Saudi and UAE financial markets.
Emirates Global Aluminium has secured a $6.5 billion corporate debt taking advantage of market conditions. The refinancing programme is expected to optimise its capital structure by reducing the cost of debt, create more flexibility on the repayment, and on the overall debt. Sharjah Islamic Bank calls shareholders meeting to discuss issue of non-convertible sharia compliant tier 1 instruments of upto AED 2.8bln. Agthia Group posted FY net profit 210.5mln dirhams vs 206.1mln dirhams year ago. FY revenue 2bln dirhams vs 2.05bln dirhams year ago. Abu Dhabi National Takaful FY net profit attributable to shareholders 70.4mln dirhams vs 59.1mln dirhams year ago. FY18 gross written premium 384.5mln dirhams vs 373.8mln dirhams year ago. Abu Dhabi Investment Firm Noor Capital says it bought 3 tonnes of gold in January from Venezuela's central bank. Noor Capital says it will not carry out any further transactions until Venezuela situation stabilizes. Noor Capital says it does not engage in any illegal or prohibited transactions. Venezuela s plan was to sell 29 tonnes of gold held in Caracas to the UAE by February in order to provide liquidity for imports of basic goods, a senior official said. Growth in the United Arab Emirates economy will accelerate to 3.7 percent in the coming year, from 2.9 percent in 2018, as it starts to recover from the slowdown caused by the oil-price slump, according to the International Monetary Fund. Higher oil prices and OPEC s decision to raise output had been a boost for the oil sector, while non-oil growth is estimated to rise to 3.9 percent this year and 4.2 percent in 2020, the IMF said at the end of a country consultation. # GCC/ MENA Saudi Arabia's economy grew at a pace of 2.21 percent in 2018, buoyed by strong oil sector growth and recovering from a contraction in 2017 when the economy was hurt by weak oil prices and austerity measures, government data showed on Thursday. In 2017, it shrank 0.74 percent, the first annual decline since the global financial crisis nearly a decade earlier. Saudi Aramco with its partner Total Thursday announced the signing of a Memorandum of Understanding (MoU) with Daelim, a South Korean petrochemical company. Under the MoU, Daelim is planning to build a new 80,000 tons state-of-the-art Polyisobutylene (PIB) plant, which is expected to come on-stream in 2024. Leejam Sports Company announces the opening of two new branches in Tabuk with total investment in these two new centers amounted to 34 million saudi riyals. Financial impact of the opening of these branches will be shown as of the first quarter of the current year 2019. Egyptian Exchange says Olayan Saudi Investment company buys 5mln shares of Qalaa Holdings for EGP 3.82 per share, raises stake to 5.17pct from 3.71pct. Egyptian Exchange says Banque Misr buys 73.4mln shares representing 7.51pct stake of Egyptian Iron and Steel from Metallurgical Industries Holding. The exchange says total deal value EGP 375mln. Orascom Development says its largest subsidiary in Egypt, Orascom Development Egypt has entered main Egyptian Stock Exchange index 'EGX 30'. Egypt Aluminum posted H1 net profit after tax EGP 758.3mln vs EGP 1.15bln year ago. H1 revenue EGP 7.02bln vs EGP 6.30bln year ago. Egyptian Iron and Steel posted H1 net loss EGP 348.3mln vs loss of EGP 231.3mln year ago. Nozha International Hospital posted FY net profit after tax EGP 43.1mln vs EGP 36.3mln year ago. General Company for Silos and Storage posted H1 net profit after tax EGP 49.2mln vs EGP 43.5mln year ago. Juhayna Food Industries posted consolidated net profit EGP 408.2mln vs EGP 197.7mln year ago. FY consolidated sales EGP 7.12bln vs EGP 6.06bln year ago.
Marseilia Egyptian Gulf Real Estate Investment signs agreement to develop integrated urban project with revenue of upto EGP 5bln on 42 Feddan Land. The agreement is in partnership with Misr for Investment and Urban Development (36% stake). They aims to implement and hand over the project in 3 year on two phases. Egypt's Heliopolis posted H1 net profit after tax EGP 48.6mln vs EGP 59.2mln year ago. H1 revenue EGP 383.4mln vs EGP 309.7mln year ago. Egypt's M2 money supply growth decelerated in December to an annual 13.3 percent from 14.0 percent in November, data from the central bank showed on Friday. The money supply stood at 3.63 trillion Egyptian pounds ($205.90 billion) at end-december. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)
# UAE FOCUS LIST - COMPANY DATA (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration
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