IS Morning Report Sunday, August 19, 2018

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Transcription:

# Global & Regional Benchmarks # UAE Trading Summary Indices Close 1Day 1Mnth 3Mnth YTD 1Y (AEDm) BUY SELL NET ADX 4,907 0.4% 3.6% 10.7% 11.6% 9.2% DFM 2,803-0.5% -3.8% -3.8% -16.8% -22.2% TASI 7,867 0.0% -7.0% -1.9% 8.9% 9.6% BHSEASI 1,347 0.3% -0.8% 5.9% 1.2% 3.7% EGX 15,296-0.4% -0.8% -9.4% 1.8% 16.6% Dow Jones 25,669 0.4% 2.4% 3.9% 3.8% 18.4% S&P 500 2,850 0.3% 1.7% 5.1% 6.6% 17.5% Nasdaq 7,816 0.1% 0.0% 6.3% 13.2% 25.7% FTSE 100 7,559 0.0% -1.6% -2.8% -1.7% 3.2% DAX 12,211-0.2% -2.8% -6.6% -5.5% 0.4% CAC40 5,345-0.1% -1.0% -4.8% 0.6% 4.5% Nikkei225 22,270 0.4% -1.9% -2.9% -2.2% 14.4% HIS 27,213 0.4% -3.6% -12.4% -9.0% 0.6% ADX 164 164 - Local 28% 15% 13% Foreign 72% 85% -13% Institutional 84% 87% -4% Retail 16% 13% 4% DFM 151 151 - Local 43% 29% 14% Foreign 57% 71% -14% Institutional 64% 72% -7% Retail 36% 28% 7% Total 314 314 - Local 35% 22% 13% Foreign 65% 78% -13% # Key Stories Abu Dhabi consumer prices rise 3.8% in July Dubai s inflation rises 2.2% in July Amanat Holdings acquires 69.3 pct stake in Royal Maternity Hospital Abu Dhabi bank's UK arm closes financing deal for Travelodge hotel Consultants hired to separate $1bn healthcare fund from Dubai's Abraaj Brazilian fund Previ rejects Mubadala bid for infrastructure co China's Fidu seeks clarity on Dubai real estate cold calling rules Saudi Aramco pledges continued investment to meet rising oil demand

Britain's 'Aramco' listing category attracts interest from a single firm Saudi Arabia bankruptcy law comes into effect Acwa Power eyes $4bn worth of projects for the second half National Bank of Bahrain in talks to increase its stake in BIB The Ministers of Finance of the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Kuwait and the Kingdom of Bahrain today met in Manama to review a technical report to Bahrain Egypt Central Bank holds rate as sell-off spooks emerging markets Moody s and S&P downgrade Turkey on weak response to fiscal distress # Key Global Trends // Market Clues Another steep decline in the Turkish lira on Friday pushed emerging market equities lower and kept other world markets cautious, overshadowing hopes that an upcoming U.S.-China meeting would resolve concerns over trade tariffs. MSCI's All-Country World index, which follows shares in 47 countries, rose 0.3 percent, notching its first weekly gain in two weeks. MSCI s broadest index of Asia-Pacific shares outside Japan was up 0.46 percent, a day after it hit its lowest level in a year. Crude prices rose on Friday, but declined on the week on worries that oversupply would weigh on the U.S. market while trade disputes and slowing global economic growth would dampen demand for oil. U.S. crude declined for the seventh consecutive week, and global benchmark Brent dropped for a third week. Brent crude oil futures settled up 40 cents, or 0.6 percent, at $71.83 a barrel, after touching a high of $72.49 earlier in the session. Venezuela's president Nicolas Maduro announced on Friday a single exchange rate pegged to his socialist government s petro cryptocurrency, effectively devaluing by 96 percent in a move economists said would fan hyperinflation in the chaotic country. # UAE Stories Consumer prices in Abu Dhabi rose 3.8 per cent in July from a year earlier amid expectation that the inflation will top 3 per cent in the third quarter of this year, according to the Statistics Centre Abu Dhabi. Consumer prices for the first seven months of 2018 increased 3.6 per cent from a year earlier. The consumer price index (CPI) in Dubai rose to 2.2% in July, compared to 1.32% in June. The prices of tobacco products surged by 78.5% last month, whereas the prices in the transport segment increased by 17%, according to data released by the Dubai Statistics Centre (DSC). Amanat Holdings completes acquisition of 69.3 pct ownership interest in Royal Maternity Hospital Holding in Bahrain for AED 141.7 million. The UK arm of Abu Dhabi Islamic Bank has closed a commercial financing transaction for the acquisition of a Travelodge hotel, located at London s Heathrow Airport. Abu Dhabi Islamic Bank (ADIB) UK said the property was acquired by a Saudi-based client for AED194.6 million, with ADIB providing AED125.7 million of Sharia compliant financing.

Investors in the $1 billion Abraaj healthcare fund at the center of the Dubai-based buyout firm's recent troubles have announced the appointment of global consulting firm, Alix Partners, to oversee its separation from Abraaj Group. Alix Partners has been tasked with ensuring the long-term success of the fund in delivering accessible, affordable and quality healthcare in developing countries. A statement said the fund is now in the process of separating from the Abraaj Group to "ensure continuity and build a stable platform for the future". Brazilian pension fund Previ has rejected a binding offer from sovereign wealth fund Mubadala Development Co PJSC to acquire infrastructure company Invepar, the company said in a securities filing on Friday. Previ did not agree to the terms of the bid, the filing said. Invepar is an infrastructure company with rights to operate toll roads, subway lines and owns Brazil's largest airport, Guarulhos international airport. Fidu Properties, which plans to invest AED2bn in the Dubai property market by the end of 2018, says clarity is needed to help clear the air on the approach to reach out to customers. # GCC/ MENA Saudi Aramco, the biggest oil exporting company in the world, remains committed to meeting future energy demand and making new investments, as the firm strives to maintain its dominance in the global energy market. Saudi Aramco is committed to playing its part in meeting the world s energy needs by continuing to invest wisely throughout the cycle and across the value chain, said Saudi Arabia s energy minister and Aramco chairman Khalid Al Falih. Britain's markets watchdog has so far been contacted by only one company interested in taking advantage of a rule it introduced to attract state-owned firms like Saudi Aramco IPO-ARMO.SE to London, the regulator told Reuters without naming the firm. The Financial Conduct Authority (FCA) drew criticism from major institutional investors and British lawmakers when it outlined plans in July last year for a premium stock market category, that would exempt businesses controlled by sovereigns from meeting certain requirements. Saudi Arabia bankruptcy law comes into effect. The landmark bankruptcy law that will help to attack foreign investment came into effect in Saudi Arabia on Saturday, the country's Ministry of Commerce announced. Acwa Power, which counts Saudi Arabia's sovereign wealth fund as a stakeholder, is looking to bid on around $4 billion worth of projects for the rest of 2018, its chief executive said. National Bank of Bahrain is in talks to buy Islamic Development Bank s entire stake in the Sharia-compliant Bahrain Islamic Bank as more Arabian Gulf lenders pursue mergers and acquisitions to gain scale. The Ministers of Finance of the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Kuwait and the Kingdom of Bahrain today met in Manama to review a technical report, which includes a comprehensive fiscal balance programme, prepared by the four countries joint working team in coordination with the Arab Monetary Fund. In light of their previous announcement to consider all options to support Bahrain and to finalise an integrated programme to enhance Bahrain s fiscal stability and economic growth, the Ministers reaffirmed their countries commitment to supporting the financing needs of a fiscal balance programme with targeted indicators. Egypt s central bank on Thursday kept its benchmark interest rate unchanged for the third consecutive meeting as inflation stabilised, a move that might shore up the attractiveness of local bonds amid a sell-off in emerging-market assets. Turkey had its sovereign credit rating downgraded by Moody s Investors Service and S&P Global Ratings, as it sinks further into an economic crisis with little clarity from its leadership on how it plans to steer the country out of a turmoil that could push it into recession next year. Moody s downgraded the government of Turkey s long-term

issuer ratings to Ba3 from Ba2 and changed its rating outlook to negative on Saturday. Its senior unsecured bond ratings and senior unsecured shelf ratings were also cut to Ba3 and (P)Ba3 respectively. S&P slashed Turkey s sovereign credit rating to B+ from BB- but assigned a stable outlook on Friday. (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.