GCC Market Watch - SICO Research

Jul 19, 2016 - International Indices. Country. Current ... The bank's non-interest income also increased 12%. YoY, led by higher fees ... versus our estimates was on account of lower sales. June volumes were ...... HSBC Oman. 0.10. -. -. 887.
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GCC Market Watch

July 19, 2016

GCC Market Watch

Regional Markets Today Country

Current

%Chg 1D

%Chg YTD

Bahrain (BAX)

1,162.6

(0.1)

(4.4)

Kuwait (KWSE)

5,370.8

(0.2)

(4.4)

Oman (MSI)

5,839.3

(0.1)

8.0

Qatar (DSMI)

10,648.6

0.6

2.1

S.Arabia (TASI)

6,646.9

(0.5)

(3.8)

UAE (DFM)

3,526.2

(0.3)

11.9

UAE (ADSM)

4,583.4

(0.1)

6.4

94.2

0.3

(1.3)

S&P GCC Source: Bloomberg

Note: S&P GCC index as of previous day

Regional market wrap-up GCC Markets traded mostly in the red today except for DSM (+0.6%). Tadawul closed 0.5% lower with SABIC (-0.9%) and NCB (-0.5%). DFM was 0.3% lower as Emaar Malls declined 1% and DIB decreased 0.9%. ADX ended 0.1% lower due to 0.8% decline in FGB and 0.5% decrease in NBAD. DSM gained 0.6% with QIB up 3.9% and IQ 1.3% higher. KWSE declined 0.2% with KFH falling 2.2% and ZAIN decreasing 1.5%. MSM was marginally in the red (-0.1%); Ominvest declined 1.8% and Renaissance fell 1.4%. BHB closed 0.1% lower dragged by AUB (-0.8%).

CDS-5years Dubai

Bahrain

AbuDhabi Qatar KSA

Current

175

396

86

107 169

Previous day

170

390

80

103 165

Week ago

177

380

80

102 172

Month ago

192

388

95

107 182

Year ago

178

268

52

55

For 2Q16 Results Monitor. Refer to Page 10.

In the news… 

Al Rajhi reported net income of SAR 2bn up 6% YoY, in line with SICO and consensus estimates. The bank reported strong balance sheet performance with lending book rising by 3.8% QoQ, supported by 2.3% QoQ deposits growth. This further helped the bank improve its NIM by 28bps YoY (estimated), leading to 10% YoY net interest income growth. The bank’s non-interest income also increased 12% YoY, led by higher fees from banking activities. On the other hand we estimate that the bank’s provisioning charges increased by 28% YoY in 2Q16. Source: Company Announcement



Arabian Cement reported 2Q16 net income of SAR 143mn (-12% YoY), -4% below our estimate and missing consensus estimate by 12%. Operating income of SAR 159mn missed our estimates by 6%. The miss versus our estimates was on account of lower sales. June volumes were low across the sector due to Ramadan and general slowdown in construction activity. The company announced 1H dividend of SAR 2/sh; flat YoY. Source: Company Announcement, SICO Research



BBK achieved a net profit of BHD 16.0mn in 2Q16, +10.2% YoY mainly attributable to strong growth in NII which increased by 33.3% YoY. The provision requirements for 2Q16 amounted to BHD 5.6mn compared to BHD 4.0mn, +40%. BBK’s balance sheet stood at BHD 3.7bn as of end of 2Q16, -1% QoQ due mainly to a 1% QoQ decline in loans and advances and a 1% QoQ decline in current account deposits. The decline in loans and advances according to management, is attributed to the bank’s strategy to restructure its balance sheet towards higher yielding assets. Source: Company Announcement

55

Source: Bloomberg as of LTD

International Indices

GCC- Equities

Country

Current

%Chg 1D

%Chg YTD

DJIA

18,533.1

0.1

6.4

S&P

2,166.9
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