Prime Morning Notes - Zawya

Indices Close Ch (%)
PEMI 1,214.26 ▲ 0.43% ▲ 38.00%
DFMGI 1,759.21 ▲ 1.35% ▲ 7.51%
ADI 2,699.07 ▲ 0.20% ▲ 12.93%
ESM 2,722.25 ▲ 0.51% ▲ 7.59%
Market Statistics ADX
Traded Value (AED mn) 136.87
Total Volume (mn) 53.62
No. of Transactions 1,721
Issues Advanced 17
Issues Declined 10
Issues Unchanged 6
Market Statistics DFM
Traded Value (AED mn) 457.43
Total Volume (mn) 221.16
No. of Transactions 5,322
Issues Advanced 16
Issues Declined 8
Issues Unchanged 4
Top Gainers Price
Prime Morning Notes
YTD (%)
Abu Dhabi National Insurance 8.21 ▲ 9.47
RAK Ceramics 1.48 ▲ 7.25
National Marine Dredging Co 8.20 ▲ 6.49
Methaq 3.34 ▲ 6.37
Top Losers Price
Hits Telecom Holding 1.34 ▼ -7.59
Al Madina For Finance 1.01 ▼ -4.72
Al Salam Bank - Sudan 2.37 ▼ -3.27
Gulf Pharmaceutical - JULPHAR 1.60 ▼ -3.03
%
%
Top by Value Price AED
Emaar Properties 3.67 253,730,000
Dubai Financial Market 1.83 76,145,700
AL Dar Properties 5.03 49,754,670
Arabtec Holding Company 2.23 43,369,300
AED Billions Market Cap. Market Cap./
GDP
DFM 160.59 17.10%
ADX 306.73 32.67%
Today’s Headlines
UAE
December 27, 2009
Drake & Scull International PJSC (DSI.DU) BoD approved on Thursday 24th December
2009, the acquisition of “Drake & Scull International for Electrical Contracting”, a prominent
player in Mechanical Electrical and Plumbing (MEP) contracting in Kuwait owned by Drake &
Scull Group and Kuwait Holding Company. With this acquisition DSI will own 75% of Drake &
Scull International for Electrical Contracting.
1,230
1,225
1,220
1,215
1,210
PEMI Index Intraday
1,205
10.00 10.30 11.00 11.30 12.00 12.30 13.00 13.30 14.00
DFM Commentary
The DFM General Index gained 1.35% (23.51 points) to close at 1,759.21 points after
trading AED457 million worth of shares, which left 16 stocks up, 8 down and 4 unchanged.
Emaar Properties was the most traded stock capturing AED254 million of the
total gaining 2.23% to AED3.67. DFM followed trading AED76 million rising 2.24% to
AED1.83, then Arabtec trading AED43 million advancing 2.29% to AED2.23 and Air Arabia
trading AED10 million closing unchanged at AED0.91. Ekttitab Holding Co. traded
AED10 million rising 2.94% to AED0.7, Al-Madina for Finance & Investment traded AED9
million losing 4.72% to AED1.01 and Drake & Scull Intl. traded AED7 million to close
2.33% higher at AED0.88. Deyaar was next trading AED6 million advancing 1.75% to
AED0.58, then Dubai Islamic Bank trading AED6 million up 1.35% to AED2.26 and Union
Properties trading AED5 million to end the day 1.52% higher at AED0.67. Other gainers
included Aramex rising 1.28% to AED1.58, Emirates NBD gaining 2.08% to AED2.95,
Dubai Investments Co. advancing 2.11% to AED0.97 and Gulf Navigation climbing
3.51% to AED0.59. Hits Telecom Holding was also among the losers dropping 7.59% to
AED1.34 as was Gulf General Investment Co., sliding 0.91% to AED1.09.
ADX Commentary
The AD General Index gained 0.2% (5.26 points) to close at 2,699.07 points after trading
AED137 million worth of shares, which left 19 stocks up, 10 down and 6 unchanged.
ALDAR Properties was the most traded stock capturing AED50 million of the total losing
0.4% to AED4.95. Sorouh Real Estate followed trading AED27 million falling 0.39% to
AED2.54, then AD National Hotels trading AED14 million advancing 0.57% to AED3.54
and Etisalat trading AED14 million closing unchanged at AED10.65. Dana Gas traded
AED8 million falling 1.08% to AED0.91, Aabar Investments traded AED5 million losing
0.45% to AED2.19 and RAK Properties traded AED5 million to close 1.75% higher at
AED0.58. Waha Capital PJSC was next trading AED3 million unchanged at AED0.8, then
First Gulf Bank trading AED3 million unchanged at AED16 and AD Islamic Bank trading
AED2 million to end the day 0.35% higher at AED2.84. Other gainers included Methaq
Takaful Insurance rising 6.37% to AED3.39, RAK Cement gaining 1.03% to AED0.97, AD
Commercial Bank advancing 3.87% to AED1.62 and Sharjah Cement climbing 2.36% to
AED1.3. AD National Energy was also among the losers dropping 2.42% to AED1.21 as
was Bank of Sharjah, sliding 0.99% to AED2.
Tables Sources: DFM, ADX, ESM, Reuters, Prime Estimates
Prime Research 1

Prime Morning Notes
Corporate News
Drake & Scull International PJSC (DSI.DU) BoD approved on
Thursday 24th December 2009, the acquisition of “Drake & Scull International
for Electrical Contracting”, a prominent player in Mechanical
Electrical and Plumbing (MEP) contracting in Kuwait owned by Drake &
Scull Group and Kuwait Holding Company. With this acquisition DSI will
own 75% of Drake & Scull International for Electrical Contracting. It is
also in step with DSI declaration since its IPO that the company would
actively pursue acquisition negotiations in Kuwait, Qatar and Saudi
Arabia. Last month, DSI acquired 82% of Passavant-Roediger – a
global specialist in wastewater and sludge treatment with operations
across 13 countries.
Source: DFM
International Latest Previous
1 GBP 5.86 5.87 ▼ 0.01
1 Euro 5.29 5.27 ▲ 0.02
1 USD 3.67 3.67 0.00
1 CHF 3.55 3.53 ▲ 0.02
Currency Boards
Change
Money Market Indicators
Company Event Date
Union National Bank 29/12/09 BOD
Regional Latest Previous
Change
1 KWD 12.80 12.8 0.00
1BD 9.74 9.74 0.00
1SR 0.98 0.98 0.00
1OR 9.54 9.54 0.00
UAE IBOR 1 Week ∆ BPS 3 Months ∆ BPS 6 Months
UAE
December 27, 2009
AED 0.57 ▲ 2.00 1.91 ▲ 2.00 2.14 ▲ 1.00
USD 0.35 ▲ 15.00 0.60 ▲ 30.00 0.45 ▼ 10.00
GBP 0.57 ▼ 11.00 0.71 ▼ 17.00 0.98 ▼ 13.00
EURO 0.32 ▼ 3.00 0.63 ▲ 14.00 0.89 ▲ 7.00
SR 0.45 ▲ 14.00 0.80 ▲ 49.00 0.74 ▼ 26.00
Corporate Calendar
Macro News
Central banks of 4 Gulf countries will halt their lending operations next
week in line with their landmark agreement to launch the world's second
major monetary union, a Saudi newspaper reported. Saudi Arabia,
Kuwait, Qatar and Bahrain, members of the GCC, will ask their central
bank to completely stop lending from the beginning of 2010, when
their monetary union is commissioned. The move is in line with an
agreement by the heads of state of the four signatories at the GCC
summit in Kuwait in mid-December. "The 4 members will begin at the
start of 2010 implementing their summit decision, which bans their
central bank from lending," the paper said.
Source: Zawya
Oil traded little changed after a government report on Thursday
showed a larger-than-expected decline in U.S. stockpiles, signaling a
recovery in fuel demand in the world’s largest energy consumer. U.S.
crude inventories fell for a third straight week, dropping to the lowest
level since January, according to yesterday’s report. Crude oil for February
delivery fell 17 cents, or 0.2 percent, to $76.50 a barrel in electronic
trading on the New York Mercantile Exchange. Pumping has
restarted through Iraq’s 450,000 barrel-a-day oil export pipeline to
Turkey after an explosion forced its closure on Dec. 20, Turkey’s Energy
Ministry said. Volume through the link should return to normal in
a few days, a ministry official in Ankara said today, speaking on condition
of anonymity.
Source: Bloomberg
Prime Research 2
Note
∆ BPS

Prime Morning Notes Market Scan December 27, 2009
Indices Last Open High Low Volume Value D/D Change* YTD Change
Abu Dhabi (ADX)
Abu Dhabi Commercial Bank 1.62 1.55 1.63 1.55 418,400 673,635 ▲4.5% ▼9.0%
Abu Dhabi Islamic Bank 2.84 2.86 2.87 2.80 568,227 1,606,918 ▲0.7% ▲9.2%
First Gulf Bank 16.00 16.10 16.10 16.00 192,100 3,076,980 ▲0.0% ▲74.9%
Arkan Building Materials 2.19 2.35 2.35 2.19 86,202 197,170 ▼3.5% ▼63.6%
Waha Capital 0.80 0.82 0.84 0.80 4,041,466 3,273,987 ▼1.2% ▲45.5%
Abu Dhabi National Energy Co. 1.21 1.20 1.22 1.20 968,543 1,168,112 ▼2.4% ▲18.6%
Dana Gas 0.91 0.93 0.93 0.90 8,607,947 7,920,229 ▼2.2% ▲54.2%
Ras Al Khaimah Cement Co. 0.97 0.97 1.00 0.95 718,277 706,235 ▲0.0% ▲19.8%
Emirates Telecom Etisalat 10.65 10.70 10.85 10.65 1,298,406 13,985,933 ▼0.9% ▲7.3%
Aldar 4.95 5.02 5.13 4.94 9,886,218 49,754,669 ▼2.0% ▲24.7%
Aabar 2.19 2.18 2.25 2.18 2,213,358 4,898,477 ▼1.4% ▲23.0%
RAK Properties 0.58 0.57 0.59 0.56 8,231,851 4,796,948 ▲1.8% ▲11.5%
Sorouh Real Estate Co. 2.54 2.51 2.60 2.47 10,397,836 26,573,800 ▼1.2% ▼19.6%
Dubai (DFM)
Emirates National Bank of Dubai 2.95 2.90 2.97 2.90 1,291,400 3,825,543 ▲2.1% ▼3.3%
Dubai Investment Co. 0.97 0.95 0.98 0.95 3,492,018 3,370,536 ▲2.1% ▼4.0%
Dubai Islamic Bank 2.26 2.22 2.29 2.19 2,500,268 5,639,197 ▲1.3% ▲36.1%
DU 2.77 2.77 2.81 2.71 312,414 872,826 ▼0.4% ▲27.6%
Gulf Navigation 0.59 0.57 0.59 0.57 2,885,049 1,666,073 ▲3.5% ▼7.8%
Dubai Financial Market 1.83 1.80 1.87 1.76 41,524,673 76,145,736 ▲2.2% ▲46.4%
Islamic Arabic Insurance Company 0.86 0.86 0.88 0.84 5,144,960 4,435,416 ▲0.0% ▲10.3%
Aramex 1.58 1.56 1.62 1.53 2,692,939 4,294,889 ▲1.3% ▲81.6%
Arab Technical Construction Co. 2.23 2.15 2.24 2.13 19,688,084 43,369,308 ▲2.3% ▼1.3%
National Central Cooling Tabreed 0.79 0.79 0.81 0.78 4,359,577 3,467,094 ▲0.0% ▲51.9%
Emaar Properties 3.67 3.60 3.76 3.53 69,216,472 253,729,668 ▲2.2% ▲62.4%
Union Properties 0.67 0.66 0.68 0.65 7,682,296 5,144,046 ▲1.5% ▼6.9%
Deyaar Properties 0.58 0.57 0.59 0.56 10,807,280 6,240,605 ▲1.8% ▲16.0%
Air Arabia 0.91 0.90 0.92 0.90 10,843,956 9,888,937 ▲0.0% ▲2.2%
Source: Reuters
*D/D change calculated on today's last price vs. previous day closing price
Prime Research 3
3

Prime Morning Notes
UAE Research Outputs
UAE
December 27, 2009
Sector Title Equity RIC Report Type Target Prices AED
Banking Sector
1H09 Update Emirates NBD ENBD.DU Results Update 5.23
1H09 Update National Bank of Abu Dhabi NBAD.AD Results Update 12.31
1H09 Update
Abu Dhabi Commercial
Bank
ADCB.AD Results Update 2.11
1H09 Update First Gulf Bank FGB.AD Results Update 20.31
1H09 Update Union National Bank UNB.AD Results Update 4.56
Initiation of Coverage Dubai Islamic Bank DISB.DU Initiation of Coverage 3.20
Initiation of Coverage Abu Dhabi Islamic Bank ADIB.AD Initiation of Coverage 4.40
Macro Report “Redefining Regional Rules, Roles & Rewards” *N/A *N/A Annual Update *N/A
Service Sector
UAE Real Estate
Sector
Abu Dhabi Real
Estate Sector
Dubai Real Estate
Sector
1H09 Update
National Central Cooling Co.
- Tabreed
TABR.DU Results Update 1.18
1H09 Update Air Arabia AIRA.DU Results Update 1.33
FY08 Update Aramex ARMX.DU Results Update 1.70
“Visions of a Grandeur” *N/A
"New Leadership, New Vision" *N/A
Initiation of Sector
Coverage
Initiation of Sector
Coverage
‘Perfectly Poised’ to offer Value? Sorouh Real Estate SOR.AD Initiation of Coverage **13.18
Initiation of Coverage Al Dar Real Estate ALDR.AD Initiation of Coverage 5.80
“Redefining Real Estate as a Strategic Priority” Union Properties UPRO.DU Results Update **5.95
“Replicating the Dubai Miracle Abroad” Emaar Properties EMAR.DU Initiation of Coverage **13.51
Construction FY08 Update Arabtec Holding Company ARTC.DU Results Update 6.19
Telecommunication
Cement Sector
Investment and
Financial Service
Sector
Insurance Sector 1H09 Update
FY08 Update Etisalat ETEL.AD Results Update 15.7
1H09 Update Du DU.DU Results Update 3.37
9M08 Update Gulf Cement GCEM.AD Results Update 4.79
9M08 Update Union Cement UCC.AD Results Update 3.97
FY08 Update RAK Cement RKCC.AD Results Update 1.98
1H09 Update Dubai Financial Market DFM.DU Results Update 1.76
Initiation of Coverage Dubai Investments DINV.DU Initiation of Coverage 1.65
Islamic Arab Insurance Co.
(Salama)
Prime Research 4
*N/A
*N/A
IAIC.DU Results Update 1.31
Consumer Sector Initiation of Coverage Agthia Group AGTH.AD Initiation of Coverage 1.75
Oil and Gas Sector 1Q09 Update Dana Gas DANA.AD Results Update 1.22
** Currently under review
1H09 Update Abu Dhabi National Energy TAQA.AD Results Update 2.11
Qatar Research Outputs
Sector Title Equity RIC Report Type Target Prices QAR
Banking Sector
Service Sector Initiation of Coverage
1H09 Update Qatar National Bank QNBK.QA Results Update 153.48
1H09 Update Commercial Bank of Qatar COMB.QA Results Update 82.01
Qatar Gas Transport Co.
(Nakilat)
QGTS.QA Initiation of Coverage 30.5
Telecom Sector 1H09 Update Qatar Telecom QTEL.QA Results Update 153.70
Industrial Sector Initiation of Coverage Industries Qatar IQCD.QA Initiation of Coverage 103.00
Utilities Sector Initiation of Coverage
Qatar Electricity & Water
Company
QEWC.QA Initiation of Coverage 136.90

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December 27, 2009
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Prime Research 5