GCC Market Watch - SICO Research

Jul 18, 2016 - GCC Markets traded on a mixed note with DSM being the top gainer ... 2016E. SABIC (KSA). 83.940 6,492. 67.1. 0.8. 9.7. 102.750. 59.500. 5.6.
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GCC Market Watch

July 18, 2016

GCC Market Watch

Regional Markets Today Country

Current

%Chg 1D

%Chg YTD

Bahrain (BAX)

1,164.0

(0.1)

(4.3)

Kuwait (KWSE)

5,380.5

(0.2)

(4.2)

Oman (MSI)

5,843.8

(0.5)

8.1

Qatar (DSMI)

10,585.1

1.6

1.5

S.Arabia (TASI)

6,682.0

0.0

(3.3)

UAE (DFM)

3,535.2

1.3

12.2

UAE (ADSM)

4,586.1

(0.2)

6.5

94.0

0.2

(1.6)

S&P GCC Source: Bloomberg

Note: S&P GCC index as of previous day

CDS-5years Dubai

Bahrain

AbuDhabi Qatar KSA

Current

170

390

80

103 165

Previous day

170

375

77

97 165

Week ago

178

390

81

102 173

Month ago

215

405

102

112 185

Year ago

179

267

53

56

Regional market wrap-up GCC Markets traded on a mixed note with DSM being the top gainer (+1.6%). Tadawul was flat as SABIC gained 0.8% and Almarai declined 1.1%. DFM closed in the green (+1.3%); DIB gained 1.9% and Emaar was up 2.2%. ADX decreased 0.2% due to 1.6% drop in FGB and 1.8% decline in UNB. DSM was 1.6% higher with all sectors in green; Ezdan Real Estate (+1.8%) and IQ (+3.9%). KWSE ended 0.2% lower with Boubyan Bank (-1.3%) and Americana (+1.6%). MSM declined 0.5% led by Bank Sohar down 0.5% and Bank Dhofar 2.5% lower. BHB was marginally down (-0.1%) with banks in red; Al Salam Bank (-3.2%) and BISB (-1.8%). For 2Q16 Results Monitor. Refer to Page 10.

In the news… 

ENBD reported net earnings of AED 1.9bn up 16.1% YoY, higher than SICO estimates by 10% and consensus by 6%. Stronger than expected earnings were on the back of 31% decline in provisioning charges of AED 626mn, supported by a loan-loss recovery of AED 497mn. The bank’s balance sheet performance continues to strong with lending book growing by 2.5% QoQ, supported by 2.3% QoQ deposits growth. The lending growth was primarily driven by Sovereign sector, which we believe led to lower NIM. The bank’s fee income was strong up 7% YoY, likely driven by balance sheet growth. Source: Company Announcement



NBK reported a net profit of KWD 71.68mn in 2Q16, +7.2% YoY on the back of a 2.4% YoY increase in total operating revenue which was driven mainly by a 4.8% YoY in NII and a 10.6% YoY increase in net income from Islamic financing. The bank’s net fees and commission income however declined by 3.4% YoY and net investment income also declined by 16% YoY. The decline in net investment income is due to the one off gain reported last year from the sale of IBQ. The bank’s total assets reached KWD 24.07bn, +4.9% YoY while dropping 2.5% QoQ. The bank has not released its balance sheet details. Source: Company Announcement



Riyad Bank reports net earnings of SAR 1.15bn in 2Q16 up 1.6% YoY, in line with SICO estimates and beating consensus by 5%. On the positive side the bank reported 5% YoY increase in net interest income led by balance sheet optimisation and lower provisioning charges down 33%, while on the flip side the bank’s non-interest income declined sharply by 24% YoY. The bank’s lending book increased by 1.4% QoQ, while deposits declined by 0.7% QoQ. We estimate that the bank’s NIM expanded by 16bps QoQ and 3bps YoY. Source: Company Announcement

56

Source: Bloomberg as of LTD

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