GCC Market Watch

6.3. 0.0. -0.2. 6.20. 4.79. 9.6. 22.4 10.8 3.0 13.3. 13.5. ZAIN (Kuw). 0.46 1,811. 6.2. -1.5. 5.1. 0.57. 0.41. 4.5. 10.2. NA 1.2 11.3. 11.0. Etihad Etisalat (KSA). 15.60 1,267. 3.2. -1.0. 5.2. 23.60. 12.94 -0.5. (1.3). NA 0.8. NA. NA. Omantel (Oman). 1.12. 45. 2.2. 0.0. -7.1. 1.44. 1.05 14.4. 20.8. 9.8 1.4. 7.2. 9.3. NMTC (Ooredoo). 1.13.
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GCC Market Watch

February 11, 2018

GCC Market Watch

Regional Markets Today Country

Current

%Chg 1D

%Chg YTD

Bahrain (BAX)

1,333.6

0.0

0.1

Kuwait (KWSE)

6,640.0

(0.2)

3.6

Oman (MSI)

4,994.0

(0.3)

(2.1)

Qatar (DSMI)

9,044.8

1.7

6.1

S.Arabia (TASI)

7,327.2

(1.0)

1.4

UAE (DFM)

3,320.6

(0.2)

(1.5)

UAE (ADSM)

4,584.4

(0.3)

4.2

-

-

2.6

S&P GCC Source: Bloomberg

Note: S&P GCC index as of previous day

Regional market wrap-up GCC Markets traded mostly in red except for DSM (+1.7%). Tadawul closed in red (-1%) as NCB fell 3.5% and SABIC decreased 0.4%. DFM was 0.2% lower driven by Emaar (-1.2%) and Emaar Development (-1.6%). ADX ended 0.3% lower as FAB and ADNOC declined 0.4% each. DSM ended in green (+1.7%) as QNB advanced 3.2% and IQ gained 1.6%. KWSE was down 0.2% with NBK (0.8%) and ZAIN (-1.5%). MSM declined 0.3% led by Bank Muscat down 1% and Ooredoo Oman 1.1% lower. BHB closed flat with Alba up 1.6% and Batelco down 0.9%. For 4Q17 Results Monitor. Please refer to Page 10.

CDS-5years

In the news… Dubai

Bahrain

AbuDhabi Qatar KSA

Current

105

260

57

94

84

Previous day

106

262

54

90

80

Week ago

111

227

51

88

77

Month ago

113

282

52

91

82

Year ago

131

245

55

75 106



Al Rajhi reported net earnings of SAR 2.4bn up 20% YoY, while above SICO estimates by 10%. The beat to our estimates were on the back of lower provisioning charges and higher investment income. We estimate the bank’s cost of risk (provisions-to-loans) declined to 62bps in 4Q17 from 90bps in 4Q16. The bank’s asset quality has improved, with NPL ratio at mere 0.7%, which we believe may be difficult to sustain and the bank may witness provisioning pressure going forward. A Rajhi’s balance sheet performance was modest, with its lending book growth flat QoQ (3.8% YoY), while its deposits increased by 1.1% QoQ (Flat YoY). The bank’s LDR increased to 86%, lower than the regulated level of 90%. The increased leverage along with rising interest rate environment helped the bank boost its NIM by 29bps YoY. Source: Company Announcement



SACO reports flattish earnings YoY at SAR 41mn in 4Q17, bringing the total earnings for FY2017 to SAR 135mn (+5% YoY). The company’s 4Q17 sales improved 12% YoY at SAR 430mn, due to the increase in the number of stores to 29 store by end of 2017 and the higher sales seen across most departments. SACO's BoD announced the distribution of 2H17 cash dividend at SAR 1.5/share, lower than the 1.75/share distributed in 1H17, bringing the total cash dividend for FY17 to SAR 3.25/share. This is translated into 2.9% dividend yield for FY17. Source: Company Announcement



Fawaz Alhokair reported SAR 48.7mn net income in 4Q17, marginally lower YoY (-2%), while higher than consensus median of SAR 36mn. The company attributed the good results to the better control on cost of sales, which declined 8% YoY at SAR 87.8mn. This was driven by the lower cost of goods sold by SAR 63.8mn, and the lower rent by SAR 52mn. Alhokair’s gross margins improved to 23.6% from the 21.8% in the same period last year on the better cost of sales control, while sales were 6%