UAE, Saudi Arabia & Oman - Rasmala Investment Bank

Morning Note
UAE, Saudi Arabia & Oman
Tuesday October 27, 2009
Indices Summary
Index
Points
Daily
Change (%)
Month
to Date (%)
Year
to Date (%)
Value Traded
USD mn
DFM (Dubai) 2338.1 3.31 6.71 42.89 331
ADX (Abu Dhabi) 3167.8 0.65 1.40 32.54 106
Tadawul (Saudi Arabia) 6563.5 0.55 3.82 36.65 1,487
MSM (Oman) 6525.0 0.25 -0.72 19.92 38
DSM (Qatar) 7337.9 0.78 -1.03 6.56 66
KSE (Kuwait) 7454.7 -0.44 -4.64 -4.21 243
BAX (Bahrain) 1543.0 -0.24 -0.74 -14.47 1
EGX 30 (Egypt) 7249.6 0.85 7.21 57.72 224
Source: Reuters
UAE
Market Commentary
The DFM rose by 3.3%, its biggest one-day gain in more than 4 weeks, and was
backed by most stocks. Index heavy weight Emaar Properties gained 4.5% leading
the market up and continuing its positive momentum since it reported strong third
quarter results. Emirates NBD increased by 4.47% after announcing a 24% rise in
its Q3 09 net income. Deyaar Properties gained 2.4% and announced plans to
reduce its work force by 20%. The ADX closed up 0.65% at 3,167 points. RAK
Bank and Aldar Properties pulled the market up increasing by 8.70% and 2.09%
respectively.
Macro News
• The Minister of Finance approved a draft federal budget for 2010 with AED 43.6
billion allocated to spending, up 3.4% compared to 2009. The Minister added
that the budget is expected to balance with no deficit. (Reuters)
• The Central Bank has informed the UAE banks that it is considering reducing the
time period used to classify a non-performing loan from 180 days to 90 days and
to introduce new guidelines for provisions. (Reuters)
Companies’ News
• Emirates NBD (ENBD.DU) reported a Q3 09 net income of AED 1.05 billion
representing an increase of 3% compared to the same period last year and up
24% compared to Q2 09. (Reuters, Company press release)
• Deyaar (DEYR.DU) announced plans to reduce its workforce by 20%. (Reuters)
• Moody's maintained a stable outlook for Etisalat (ETEL.AD). (Zawya)
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Highest Traded Value
Value Traded in
Company
Close (AED) AED mn
EMAAR PROPERTIES 4.88 491
DFM 2.65 283
ALDAR PROPERTIES 6.44 110
ARABTEC 3.57 106
SOROUH REAL EST 3.99 61
Source: Reuters
Top Gainers
Company Close (AED) % Change
RAK POULTRY FEED 2.48 9.73
NATL BK OF RAK 4.5 8.7
TAKAFUL-EM 1.79 7.19
DFM 2.65 6.43
SHARJAH CEMENT 1.9 5.56
Source: Reuters
Top Losers
Company Close (AED) % Change
EM DRIVING CO 4.12 -9.85
INT FISH FARMING 18.45 -9.61
GULF CEMENT CO 2.11 -3.62
RAK CMT & CONST 1.03 -2.83
AD NATL HOTELS 4.35 -2.05
Source: Reuters
Agenda
• October 27: Abu Dhabi Commercial Bank Board of Directors (BOD) meeting
• October 27: Dar Al Arkan BOD meeting
• October 28: Sorouh BOD meeting
• October 28: DFM Company BOD meeting
• October 28: Gulf Cement BPD meeting
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Morning Note: UAE, Saudi Arabia & Oman
Tuesday October 27, 2009
• October 29: Commercial Bank International BOD meeting
• October 29: Fujairah Cement BOD meeting
• October 29: Mashreq Bank BOD meeting
• November 2: Ajman Bank BOD meeting
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Morning Note: UAE, Saudi Arabia & Oman
Tuesday October 27, 2009
Saudi Arabia
Market Commentary
The market closed up for the second time this week rising by 0.55% to 6,653.5
points. SABIC led the market as it gained 0.89%. The banking sector, for the
second day, followed the market trend with Riyad Bank, SABB and Al Rajhi Bank
increasing by 1.37%, 1.94% and 0.32% respectively.
Companies’ News
• Mobily (7020.SE) granted Ericsson a contract worth SAR 600 million in order to
enhance Mobily's 3.5G network. (Tadawul)
• Jarir Marketing Company (4190.SE) plans to increase its number of retail outlets.
It currently has 26 outlets and aims to expand to 40-45 by the end of 2013. The
company is targeting sales of SAR 4 billion in 2012, up from SAR 2.52 billion in
2008. (Reuters)
• Moody's maintained its positive outlook for Saudi Telecom Company (7010.SE).
(Zawya)
• Saudi Arabia Mining Company's (Ma'aden) (1211.SE) phosphate and fertilizers
plant, which is a joint venture with SABIC (2010.SE), will commence operations in
October 2010. (Zawya)
• Saudi Electricity Company (5110.SE) plans to spend USD 20 billion to add more
than 10,000 megawatts (MW) of generation capacity through six independent
power producer projects. (Reuters)
Highest Traded Value
Value Traded in
Company
Close (SAR) SAR mn
ALINMA 14.05 721
SAUDI KAYAN 19.60 260
SAUDI FISHERIES 58.75 237
SA BASIC IND 84.75 221
NATL AGR MKTING 41.00 190
Source: Reuters
Top Gainers
Company Close (SAR) % Change
WEQAYA 44.00 10.0
FOOD PRODUCTS 22.70 9.9
AL BAHA 20.75 9.8
SABB TAKAFUL 41.80 6.9
ZAMIL IND INV 60.50 5.7
Source: Reuters
Top Losers
Company Close (SAR) % Change
WALAA INS 33 -3.8
TRADE UNION 33.7 -2.9
NATL AGR MKTING 41 -2.4
UCA 35.2 -2.2
AICC 31.5 -2.2
Source: Reuters
Agenda
• October 28: Saudi Industrial Development AGM.
• October 31: Mobily AGM
• November 1: Filling and Packing Materials Manufacturing Company AGM
• November 9: Saudi Cement Company AGM
• November 10: Jarir Marketing Company cash dividend of SAR 1.7 per share. Exdividend
date on 04/11/09.
• November 11: Saudi Telecom Company cash dividends of SAR 0.75 per share.
Ex-dividend date 29/10/09
• November 16: Qassim Cement Company EAGM
• November 17: Qassim Cement Company, bonus shares ex-dividend date
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Morning Note: UAE, Saudi Arabia & Oman
Tuesday October 27, 2009
Oman
Market Commentary
The market gained 0.25%, closing at 6,525 points. Oman International Bank fell by
5.23% after announcing that its nine month net profit fell by 27%. On the other
hand, Raysut Cement gained 1.27% reversing its losses from previous sessions.
Renaissance Services grew by 1.40% after announcing that its subsidiary Topaz
Energy and Marine Ltd won a contract in Turkmenistan.
Companies’ News
• Oman International Bank (OIB.OM) reported a nine month 2009 net profit of OMR
15.5 million representing a decrease of 27% compared to the same period last
year. The results imply a Q3 09 net income of OMR 3.72 million down 37%
compared to the same period last year and down 32% from Q2 09. (Reuters)
Corporate Actions
• Dhofar Power (DHP.OM) announced the distribution of interim cash dividends of
OMR 0.80 per share. The record date is 10/11/09. (MSM)
• Dhofar Insurance Company (DIPP.OM) sold its shares in Bank Dhofar (BDOF.OM)
amounting to 7.34 million shares, at a share price of OMR 0.62. (MSM)
Highest Traded Value
Value Traded in
Company
Close (OMR) OMR mn
BANK DHOFAR 0.60 4.6
AL JAZEIRA SVC 0.37 1.2
AL ANWAR HOLDING 0.32 1.1
OMINVEST 0.51 0.7
OMANTEL 1.35 0.7
Source: Reuters
Top Gainers
Company Close (OMR) % Change
DHOFAR INSURANCE 0.33 7.3
FINANCIAL SERV 0.19 7.0
OMAN CHLORINE 0.38 6.2
NAT ALUMINIUM PR 0.60 5.5
NATL FINANCE 0.16 4.6
Source: Reuters
Top Losers
Company Close (OMR) % Change
OMAN INTERNL BK 0.292 -5.2
OMAN CHEM IND CO 0.08 -1.2
GALFAR ENG 0.69 -1.1
BANK DHOFAR 0.6 -0.5
Source: Reuters
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