GCC Markets Performance July 2013content.argaam.com.s3-external-3.amazonaws.com/1dc... · results, along with UAE’s status upgrade to “Emerging Market” by the MSCI. Strong economic

Global Research

GCC Markets Performance

Markets - GCC

August 2013

GCC Markets Performance – July 2013

GCC markets rebound on strong 2Q13 earnings

UAE continues to be the top performer

Market capitalization rises while trading activity weakens

Global markets trend upward in July Most global equity markets remained up in July, driven largely by the US as a result of upbeat economic data. Markets started trading in the green with positive corporate earnings, factory and jobs data. European markets were also on an uptrend on cues from the US market. The rise was further supported by upbeat manufacturing data from the Eurozone. However, gains were restricted by continued concerns related to the US quantitative easing program and deteriorating economic performance in China. Despite the US Federal Reserve indicating no signs of cutting down its bond buying program, investors continued to speculate during the second half of the month. Meanwhile, China reported poor manufacturing data that renewed fears of a liquidity crunch. With the earnings season gradually nearing completion, we expect the market to majorly focus on the US bond buying program in the coming month.

Market Performance in July 2013

Indices % Chg (MoM) % Chg (YTD)

KSE Price Index 3.8% 36.0%

Tadawul All Share Index 5.6% 16.4%

DFM Index 16.5% 59.5%

ADX Index 8.3% 46.2%

Bahrain All Share 0.6% 12.1%

QE Index 4.6% 16.1%

MSM30 Index 4.8% 15.3%

Source: Zawya, Bloomberg, Reuters & Global Research

GCC markets recover in July GCC indices bounced back after witnessing a correction in June. All of the markets advanced, with DFM (16.5%MoM) being the leading gainer, followed by ADX (8.3%MoM) and TASI (5.6%MoM). However, BSE ended slightly flattish, increasing 0.6%MoM. The rise in UAE and Saudi Arabia was primarily ascribed to a robust set of 2Q13 corporate earnings results, along with UAE’s status upgrade to “Emerging Market” by the MSCI. Strong economic activity across GCC markets also boosted market sentiment, negating the impact of global equity markets.

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Global Investment House www.globalinv.net

Global Research – GCC GCC Markets

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Combined market capitalization rises 5.6%MoM The combined market capitalization of all GCC bourses rose 5.6%MoM to USD864.5bn in July. All GCC markets witnessed a rise in market capitalization during the month of July. TASI remained the highest contributor with its market capitalization standing at USD417.1bn. UAE markets (Abu Dhabi and Dubai) accounted for 17.8% of GCC market capitalization, standing at a combined total of USD153.3bn in July. Qatar contributed USD146.5bn (16.9%) to GCC market capitalization. Kuwait, Oman and Bahrain together amounted to USD147.7bn to market capitalization in July.

GCC Aggregate Market Capitalization

Country Market Cap (USDbn)

July 2013 Market Cap (USDbn)

June 2013 % Chg (MoM)

% of total July 2013

Kuwait 106.8 103.2 3.5% 12.4%

Saudi Arabia 417.1 396.8 5.1% 48.2%

Abu Dhabi 99.9 92.0 8.6% 11.6%

Dubai 53.4 46.8 14.2% 6.2%

Qatar 146.5 140.2 4.4% 16.9%

Oman 22.9 21.8 4.9% 2.6%

Bahrain 18.0 17.9 0.7% 2.1%

Total GCC 864.5 818.6 5.6% 100.0%

Source: Respective stock exchanges, Zawya & Global Research

GCC trading activity continues to decline Overall trading activity in GCC countries declined for the second consecutive month in July, with fall witnessed in both value and volume of shares traded. Volumes decreased 28.9%MoM with all of the markets registering month-on-month decline. Similarly, value traded decreased 21.3%MoM with all markets witnessing a fall in July. Bahrain saw the biggest fall in value traded (-59.5%MoM), followed by Kuwait (-40.4%MoM) and Qatar (39.1%MoM). Meanwhile, Saudi Arabia witnessed a decline of USD6.8bn in value traded, the largest decline on absolute basis.

GCC Aggregate Trading Activity

Country July 2013 June 2013

Value traded

(USDbn) Volumes (mn)

As a % of total value traded

Value traded (USDbn)

Volumes (mn) As a % of total value traded

Bahrain 0.03 35.5 0.1% 0.08 86.4 0.2%

Kuwait 2.48 7,547.6 6.5% 4.17 13,536.4 8.6%

Oman 0.42 549.6 1.1% 0.45 657.5 0.9%

Qatar 1.47 122.1 3.9% 2.41 234.4 5.0%

Saudi Arabia 28.38 4,084.1 74.5% 35.13 5,894.6 72.6%

UAE 5.29 11,648.9 13.9% 6.16 13,327.4 12.7%

GCC Total 38.08 23,987.7 100.0% 48.40 33,736.7 100.0%

Source: Respective stock exchanges, Reuters, Zawya & Global Research


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GCC market valuation remains fairly attractive GCC equity markets had a good start to 2013 largely due to an uptick in earnings across key cyclical sectors such as Banking and Real Estate. Despite the recent surge, GCC markets continue to remain fairly attractive. In terms of one-year forward PE, the six GCC markets trade in the range of 9.4x–11.3x. This is fairly below the three- and five-year historic average of 13.5x and 13.4x, respectively, for the region as a whole. Valuation is also lower compared to similar frontier markets and key emerging markets. Within GCC, we are in favor of Saudi Arabia given its current compelling valuations coupled with a robust earnings outlook for 2013.

GCC Market Valuation – EPS Growth versus Price to Earnings

Source: Bloomberg & Global Research

GCC markets led by strong fundamentals; however global concerns could impact in the near term The GCC markets continued their strong performance in 2013, with all markets posting double-digit gains so far this year. The markets were driven by strong fundamentals of the local economies. UAE continued its strong performance owing to a recovery in its real estate sector coupled with a status upgrade to “Emerging Market” by the MSCI. On the other hand, Saudi Arabia and Qatar continue to witness a surge in construction activity. At the same time, Qatar’s market was also boosted by a status upgrade to “Emerging Market” by the MSCI. The consequent impact has been clearly reflected in an all round positive 2Q13 earnings performance in most markets. Moreover, government support in the form of favorable policies and robust expenditure is expected to aid economic expansion further. However, concerns continue to hover around tapering of the US bond buying program and a slowing down of the Chinese economy. This could lead to volatility and impact the GCC markets in the near future.

Saudi Arabia Dubai

Abu Dhabi

Qatar Oman

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Bahrain

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Bahrain

BSE remains volatile in July, robust earnings lift market sentiment Bahrain’s BSE was volatile amid focus on 2Q13 earnings; however, the index rose 0.6%MoM in July, mainly due to strong earnings performance by blue-chip companies. On YTD basis, BSE yielded a return of 12.1%. The index recovered sharply from the monthly low of 1,184.0 to end at 1,194.9 as heavyweights Aluminium Bahrain Co and Ahli United Bank reported earnings growth of 7.5%YoY and 133.1%YoY (excluding exceptional gains), respectively, for 1H13.

BSE Index and Volume Performance and Sectoral Performance

Source: Zawya, Gulfbase & Global Research

Sectoral Performance Sectoral returns were mixed in July. The Industrial sector (4.7%MoM) was the highest gainer during the month, followed by Commercial Banks (0.6%MoM). Hotel & Tourism and Insurance remained at the same level as in the previous month.

Growth in the Industrial sector was driven by heavyweight Aluminium Bahrain Co. (4.8%MoM), while Commercial Banks was supported by Ithmaar Bank (10.4%MoM) and Al Salam Bank (9.8%MoM).

The Investment sector (-0.7%MoM) continued to be the worst performer in July, led by heavyweight Arab Banking Corporation (-8.6%MoM), partially offset by INOVEST (10.0%MoM) and Albaraka Banking Group (7.9%MoM). Services sector was dragged down by heavyweights Bahrain Telecommunications Co. (-2.2%MoM) and Seef Properties Co. (-3.1%MoM). Bahrain Maritime & Mercantile International Co. (8.8%MoM) was the best performer.

Decline in trading activity Total volume traded on the BSE fell 58.9%MoM to 35.5mn shares in July from 86.4mn in June. Value traded decreased 59.5%MoM to BHD12.1mn (USD32.2mn) from BHD30.0mn (USD79.5mn) during the same period. Al Ahli United Bank continued to be the largest stock in terms of volume traded (9.9mn), followed by Ithmaar Bank (6.7mn) and Al Salam Bank (5.8mn). Al Ahli United Bank maintained its position as the largest stock by trading value (BHD2.5mn) followed by Aluminium Bahrain Co. (BHD0.8mn) in July.

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BSE Trading Statistics – Top 5

Top 5 Gainers

Company Close % Chg MTD

52-wk High

52-wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Ithmaar Bank BSC** 0.26 10.4% 0.29 0.12 0.0 3.2 1.70 0.8

Inovest BSC** 0.33 10.0% 0.34 0.17 0.0 0.5 0.01 0.1

Al Salam Bank Bahrain BSC 101.0 9.8% 109.0 39.0 8.7 0.8 1.55 0.4

BMMI BSC 800.0 8.8% 800.0 600.0 11.4 2.1 0.48 0.3

Al Baraka Banking Group BSC** 0.75 7.9% 0.87 0.67 5.9 0.6 0.03 0.8

Top Losers


52-wk High

52-wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Arab Banking Corporation BSC** 0.32 -8.6% 0.46 0.32 4.7 0.3 0.03 1.0

National Bank of Bahrain BSC 600.0 -4.0% 650.0 454.5 0.0 1.9 0.96 1.5

Seef Properties BSC 125.0 -3.1% 139.0 116.0 6.9 0.5 0.21 0.2

Bahrain Telecommunications Co 358.0 -2.2% 392.0 358.0 10.8 1.1 1.84 1.5

Esterad Investment Co BSC 190.0 -0.5% 191.0 150.0 0.0 0.7 0.07 0.1

Top 5 Volume Traded


52 wk High

52 wk Low

P/E P/B Volume Traded

(mn)

MCAP (USDbn)

Ahli United Bank BSC** 0.68 0.0% 0.68 0.50 6.5 1.4 9.94 3.7

Ithmaar Bank BSC** 0.26 10.4% 0.29 0.12 0.0 3.2 6.67 0.8


Khaleeji Commercial Bank BSC 49.0 0.0% 57.0 31.0 70.0 0.5 4.43 0.2


Top 5 Value Traded


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Ahli United Bank BSC** 0.68 0.0% 0.68 0.50 6.5 1.4 6.65 3.7

Aluminium Bahrain BSC 550.0 4.8% 575.0 402.0 0.0 0.9 2.15 2.0


Ithmaar Bank BSC** 0.26 10.4% 0.29 0.12 0.0 3.2 1.70 0.8


Source: Reuters, Gulfbase & Global Research, *Price data in USD


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Market capitalization At the end of July, market capitalization of listed companies on the BSE aggregated BHD6.8bn. This was mainly driven by Al Ahli United Bank and Aluminium Bahrain, which added BHD1.41bn and BHD0.78bn, respectively. Total market cap of the top 10 listed companies rose 0.3%MoM to BHD5.05bn during the same period.

Top 10 Listed Companies by Market Capitalization (in BHDbn)

Company July-13 June-13 July-12 MoM% YoY%

Ahli United Bank BSC 1.41 1.41 1.12 0.0% 25.3%

Aluminium Bahrain BSC 0.78 0.75 0.75 4.8% 3.8%

Bahrain Telecommunications Co BSC 0.57 0.58 0.62 -2.2% -9.3%

National Bank of Bahrain BSC 0.56 0.59 0.44 -4.0% 28.2%

Arab Banking Corporation BSC 0.38 0.41 0.54 -8.6% -30.4%

BBK BSC 0.38 0.38 0.34 0.0% 10.0%

Ithmaar Bank BSC 0.30 0.27 0.34 7.9% -13.3%

Al Baraka Banking Group BSC 0.30 0.28 0.13 10.4% 138.7%

Investcorp Bank BSC 0.20 0.20 0.24 0.0% -16.1%

United Gulf Bank BSC 0.18 0.18 0.20 0.0% -9.4%

Total Market Capitalization (Top 10 stocks) 5.05 5.04 4.73 0.3% 6.8%

Source: Reuters & Global Research


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Kuwait

KSE bounces back in July; breaches the 8,000 mark rising 3.8%MoM Kuwait Price Index rebounded in July, gaining 3.8%MoM after posting a 6.4%MoM loss in June. The index also breached the critical mark of 8,000 during the month. It started the month on a positive note, providing an attractive entry point for investors after the decline in June. In the second half of the month, the market was driven by the announcement of Kuwait’s budget for 2013–14. The budget was welcomed by the markets, which projected a much smaller deficit during 2013–14 compared to that in the previous fiscal year. Moreover, healthy global oil prices during the month further raised hopes of ending up with a budget surplus for the year. Overall, the index remains up by 36.0%YTD.

KSE Index and Volume Performance and Sectoral Performance

Source: Kuwait Stock Exchange, Gulfbase & Global Research

Sectoral Performance All sectors picked up in June. The Consumer Services sector gained the most (10.0%MoM), followed by Healthcare (8.6%MoM) and Consumer Goods (6.2%MoM) sectors. The Consumer Services sector was led by IFA Hotels (72.1%MoM), followed by Jazeera Airways (8.2%MoM) and Kuwait National Cinema (15.6%MoM). The Healthcare sector was driven by Advanced Technology Co (6.3%MoM) and Al Mowasat Healthcare (15.7%MoM). The Consumer Goods sector was boosted by Kout Food that gained 4.7%MoM, followed by Livestock Trading & Trading (18.1%MoM) and Danah Al Safat Foodstuff (12.8%MoM).

Meanwhile, the sector heavyweight, Real Estate sector, rose 3.4%MoM. The sector was pushed up by Commercial Real Estate (9.7%MoM) and Untied Real Estate (9.1%MoM). Another heavyweight, the Banking sector, surged 3.1%MoM. The sector was led by Kuwait Finance House (12.3%MoM) and Ahli United Bank (4.3%MoM). On the other hand, the Industrial sector advanced 2.3%MoM, primarily driven by The Public Warehousing (14.5%MoM) and Educational Holding Group (39.2%MoM).

Trading activity deteriorates in July Overall trading activity on the KSE deteriorated in July, with the total value of shares traded falling 40.4%MoM to USD2.5bn in July from USD4.2bn in June. Similarly, total volume of shares traded declined 44.2%MoM to 7.5bn in July from 13.5bn in June. At the same time, the number of transactions decreased 40.6%MoM.

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KSE Index Trading Statistics – Top 5

Top 5 Gainers


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

IFA Hotels and Resorts Co 740.0 72.1% 740.0 250.0 99.6 6.4 0.1 1.1

Educational Holding Group 142.0 39.2% 152.0 84.0 13.9 1.2 0.3 0.1

Kuwait Gypsum Manufacturing 180.0 38.5% 186.0 128.0 43.3 1.2 0.0 0.0

The Securities House KSCC 134.0 34.0% 144.0 43.5 118.3 1.6 50.1 0.3

Ras Al Khaimah for White Cement and Construction

136.0 23.6% 144.0 95.0 17.1 0.1 0.4 0.2

Top 5 Losers


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

National Ranges Co KSCC 30.0 -22.1% 47.0 15.5 0.0 0.9 62.90 0.11

City Group Co KSC 345.0 -14.8% 580.0 345.0 6.8 1.5 0.03 0.15

Al Argan Intl Real Estate Co 136.0 -12.8% 176.0 136.0 9.3 0.5 0.01 0.13

Amwal International Investment 55.0 -11.3% 102.0 35.5 0.0 0.6 0.27 0.04

Palms Agro Production Co 140.0 -6.7% 170.0 94.0 14.7 0.8 0.03 0.03

Top 5 Volume Traded


52 wk High

52 wk Low


(mn)

MCAP (USDbn)

Gulf Finance House BSC 39.5 1.3% 60.0 30.5 19.8 0.2 1039.8 1.5

Al Dar National Real Estate Co 72.0 20.0% 86.0 21.5 0.0 2.1 683.2 0.1

Manazel Holding KSCC 75.0 17.2% 85.0 22.5 0.0 1.7 638.9 0.2

Investors Holding Group Co 30.5 5.2% 42.5 14.0 NA 1.0 588.3 0.1

National Ranges Co KSCC 30.0 -22.1% 47.0 15.5 0.0 0.9 536.5 0.1

Top 5 Value Traded


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Kuwait Finance House KSC 730.0 12.3% 761.5 572.6 26.3 1.9 190.3 9.7

Manazel Holding KSCC 75.0 17.2% 85.0 22.5 0.0 1.7 159.8 0.2

Al Dar National Real Estate Co 72.0 20.0% 86.0 21.5 0.0 2.1 149.5 0.1

Gulf Finance House BSC 39.5 1.3% 60.0 30.5 19.8 0.2 144.3 1.5

Agility Public Warehousing Co 710.0 14.5% 742.9 366.7 19.8 0.8 96.4 2.8

Source: Gulfbase, Reuters & Global Research

Market capitalization At the end of July, total market capitalization of listed companies on the KSE rose 3.5%MoM to USD106.8bn (KWD30.4bn) from USD103.2bn (KWD29.4bn) in June. Heavyweight National Bank of Kuwait experienced a 3.2%MoM decline in its market cap. Total market cap of the top 10 listed companies increased 2.0%MoM to KWD16.8bn during the same period.


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Top 10 Listed Companies by Market Capitalization (in KWDbn)


National Bank of Kuwait SAK 4.2 4.3 4.3 -3.2% -2.8%

Mobile Telecommunications Co KSC 2.9 2.8 3.0 4.4% -1.3%

Kuwait Finance House KSC 2.8 2.5 2.0 12.1% 39.7%

Boubyan Bank KSC 1.1 1.1 1.0 0.0% 8.5%

Gulf Bank KSC 1.1 1.1 1.0 1.3% 5.0%

Al Ahli Bank of Kuwait KSC 0.8 0.8 1.0 1.9% -18.5%

National Mobile Telecommunications Co KSC 1.0 1.1 1.1 -4.8% -6.4%

Burgan Bank SAK 1.0 1.0 0.7 1.5% 34.8%

Commercial Bank of Kuwait KSC 0.9 0.9 1.0 1.4% -8.9%

Kuwait Food Co SAK 0.9 0.9 0.5 4.5% 79.0%


Source: Reuters, Zawya & Global Research


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Oman

MSM30 clocked 6,700 in July, the highest since March 2011 The MSM30 index gained 4.8%MoM to touch a two-year high of 6,726.6 before closing down at 6,643.3 in July. On a YTD basis, the index gained 15.3%. The market breadth was positive with all of the sectors witnessing positive returns in July. Investor sentiment remained buoyant, as most of the companies posted upbeat first half results. However, net foreign investment declined by OMR2.6mn (-1.6%MoM) in July.

MSM30 - Index and Volume Performance and Sectoral Performance

Source: Muscat Securities Market, Gulfbase & Global Research

Sectoral Performance All of the sectors ended higher in June, with Banking & Investment leading the pack. Banking & Investment gained 6.4%MoM, led by Dhofar International Dev. & Inv. Holding Co. (up 18.1%MoM), Financial Services Co. (17.7%MoM), Oman National Inv. Corp. Holding (13.0%MoM), and the National Bank of Oman (11.1%MoM). Heavyweights Bank Muscat (up 1.0%MoM) and Bank Dhofar (2.5%MoM) recorded moderate returns during the month.

Industrial bounced back in July (3.7%MoM), led by Al Anwar Holding Co. (up 44.0%MoM), Al Hassan Engineering Co. (15.1%MoM), and Oman Filters Industry Co. (14.3%MoM).

The recovery in Services (3.4%MoM) was driven by Dhofar Insurance Co. (up 25.0%MoM), Sharqiyah Desalination Co. (15.2%MoM), Oman United Insurance Co. (13.8%MoM), and Dhofar University (12.9%MoM). Heavyweight Oman Telecommunications Co. gained 5.3%MoM.

Trading activity declined Trading activity fell in July, with volumes declining 16.4%MoM to 549.6mn shares and value traded dropping 6.0%MoM to OMR164.1mn. The daily average turnover slid 14.7%MoM to OMR7.5mn in July from OMR8.8mn in June. Sohar Bank was the most traded stock, with a total volume of 79.5mn shares. Bank Muscat continued to be top traded company in terms of value, with turnover increasing to OMR17.5mn in July from OMR15.9mn in June.

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MSM30 Trading Statistics – Top Five

Top 5 Gainers


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Al Anwar Holdings SAOG 0.29 44.0% 0.30 0.11 22.1 1.82 40.9 0.09

Dhofar Insurance Co SAOG 0.25 25.0% 0.26 0.17 8.4 1.52 0.3 0.13

Dhofar International Development and Investment

0.60 18.1% 0.62 0.32 6.3 1.45 7.5 0.32

Financial Services Co SAOG 0.12 17.7% 0.13 0.06 0.0 1.74 0.5 0.02

Sharqiyah Desalination Co. 3.74 15.2% 3.78 3.13 0.0 NA 14.2 0.06

Top 5 Losers


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

ACWA Power Barka SAOG 0.60 -7.6% 0.70 0.38 12.1 2.62 1.3 0.25

Majan Glass Co SAOG 0.29 -6.6% 0.45 0.28 17.2 0.95 1.2 0.03

Sohar Power Co SAOG 2.29 -5.1% 2.96 1.55 11.9 15.14 1.0 0.13

Transgulf Investment Holding 0.15 -3.9% 0.18 0.07 0.0 1.18 10.9 0.03

Omani Packaging Co SAOG 0.29 -2.7% 0.33 0.20 6.8 1.95 0.0 0.02

Top 5 Volume Traded


52 wk High

52 wk Low


(mn)

MCAP (USDbn)

Bank Sohar SAOG 0.21 10.3% 0.22 0.13 9.2 1.62 79.5 0.61


Oman Investment and Finance 0.28 6.5% 0.29 0.11 2.7 2.35 50.2 0.14

Oman and Emirates Holding Co 0.19 6.0% 0.21 0.10 6.4 1.42 39.5 0.08

Gulf Investment Services 0.17 1.9% 0.19 0.07 9.4 1.44 36.3 0.03

Top 5 Value Traded


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Bank Muscat SAOG 0.59 1.0% 0.66 0.52 8.8 1.19 45.4 3.29

Bank Sohar SAOG 0.21 10.3% 0.22 0.13 9.2 1.62 40.9 0.61


Oman Investment and Finance 0.28 6.5% 0.29 0.11 2.7 2.35 35.9 0.14

Oman and Emirates Holding Co 0.19 6.0% 0.21 0.10 6.4 1.42 19.2 0.08

Source: Muscat Securities Market, Gulfbase, Reuters


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Market capitalization The market capitalisation of companies listed on the MSM30 increased 4.9%MoM to USD22.9bn (OMR8.8bn) at the end of July. Banking & Investment contributed OMR3.9bn to market capitalisation during the month, followed by Services & Insurance (OMR3.3bn). Among heavyweights, market capitalisations of Oman Telecommunications Co. and Oman Cement rose 5.7%MoM each.

Largest 10 Listed Companies by Market Capitalization (in OMRbn)


Bank Muscat SAOG 1.27 1.26 1.06 0.7% 20.1%

Oman Telecommunications Co SAOG 1.19 1.12 1.00 5.7% 19.1%

Bank Dhofar SAOG 0.45 0.44 0.45 2.2% 0.2%

Raysut Cement Co SAOG 0.40 0.39 0.25 2.8% 57.2%

HSBC Bank Oman SAOG 0.37 0.38 0.45 -2.1% -18.1%

National Bank of Oman SAOG 0.33 0.30 0.29 11.1% 14.5%

Omani Qatari Telecommunications Co SAOG 0.32 0.32 0.31 0.2% 4.5%

Ahli Bank SAOG 0.26 0.25 0.17 4.1% 50.8%

Oman Cement Co SAOG 0.25 0.24 0.21 5.7% 23.1%

Shell Oman Marketing Co SAOG 0.21 0.20 0.24 4.6% -12.5%



Global Research - GCC GCC Markets

13

Qatar

Qatar Exchange crossed 9,700 mark, first time in almost five years After ending flat in June, Qatar Stock Exchange jumped to near five-year high to end July at 9,704.98, an increase of 4.6%MoM. On YTD basis, the index was up by 16.1%. Continued momentum in industrial activity and strong GDP numbers for Q1 2013 led to sustained uptrend in the market. According to the Qatar Statistics Authority, real GDP grew at 6.2%YoY and current account surplus came at 38% of GDP in Q1 2013. Moreover, robust 2Q13 results gave a boost to blue-chip stocks, providing further support to the index. Investors seemed to ignore other significant events including Moody’s downgrade of three banks in Qatar and S&P report on expected 0.5% GDP contraction over 2013–16 amid strong Q2 earnings. The market may witness a small correction in the coming month on low volumes due to Ramadan holidays.

Qatar Index and Volume Performance and Sectoral Performance


Sectoral Performance In July, all sectors ended in the green, except for Real Estate. The Telecommunication sector posted the largest gain of 13.4%MoM, followed by the Banking (6.0%MoM) and Consumer Goods (3.8%MoM) sectors.

The Telecommunication sector was led by Qatar Telecom that rose 15.7%MoM. Sector heavyweight, Banking, was driven by Qatar National Bank (12.5%MoM), followed by Doha Bank (8.1%MoM) and Masraf Al Rayan (1.8%MoM). This helped offset the decline in Al Ahli Bank (6.8%MoM) and Commercial Bank of Qatar (1.7%MoM). The Consumer Goods sector was boosted by Qatar Fuel (5.9%MoM) and Medicare Group (9.7%MoM), which helped offset the losses made by Widam Food Company (5.5%MoM) and Salam International Investment Co. (3.5%MoM).

The sole loser, Real Estate, was dragged down mainly by Ezdan Real Estate (2.5%MoM), followed by United Development Co. (2.3%MoM) and Barwa Real Estate (1.1%MoM). This offset the gain made by Mazaya Qatar Real Estate that surged 1.2%MoM.

Trading activity declined in July Overall trading activity on the Qatar Exchange declined in July. Total value traded on the exchange aggregated to USD1.5bn, down 39.1%MoM from USD2.4bn in June. The total volume of shares traded fell 47.9%MoM to 122.1mn in July from 234.4mn in June. Similarly, the number of transactions also dipped 32.2%MoM to 66,237 in July from 97,644 in June.

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1.7%

1.9%

3.5%

3.8%

6.0%

13.4%

4.6%

-5.0% 5.0% 15.0%

Real Estate

Industrial

Transportation

Insurance

Consumer Goods &Services

Banks & Financial Services

Telecommunication

QE


14

QE Index Trading Statistics – Top 5

Top 5 Gainers


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Qatar General Ins. & Reins. 55.8 19.7% 58.0 34.9 19.7 1.44 0.7 0.8

Gulf International Services QSC 47.9 16.4% 49.0 25.8 14.3 2.95 37.1 2.0

Ooredoo QSC 139.8 15.7% 140.0 98.1 14.4 1.76 60.1 12.3

Qatar National Bank SAQ 177.0 12.5% 179.0 128.2 13.6 2.73 169.1 33.5

Medicare Group QSC 46.4 9.7% 49.1 34.1 29.2 1.72 63.9 0.4

Top 5 Losers


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Dlala Brokerage & Investment 21.2 -20.7% 41.3 20.3 16.8 1.84 22.8 0.1

Al Khaleej Takaful Group QSC 40.2 -9.8% 48.0 35.4 8.7 1.20 4.9 0.2

Ahli Bank QSC 53.1 -6.8% 63.9 48.1 13.4 2.17 2.7 1.9

Islamic Holding Group QSC 40.5 -6.0% 45.5 26.3 26.4 3.93 4.4 0.0

Widam Food Co QSC 59.9 -5.5% 78.5 55.3 14.2 4.10 17.7 0.3

Top 5 Volume Traded


52 wk High

52 wk Low


(mn)

MCAP (USDbn)

United Development Co PSC 22.5 -2.3% 24.6 16.6 10.2 0.74 25.8 2.1

Qatar Gas Transport Co Ltd 18.2 -0.5% 19.0 15.1 13.4 4.63 10.7 2.8

Masraf Al Rayan QSC 28.1 1.8% 28.5 24.0 13.2 2.28 8.6 5.9

Barwa Real Estate Co QSC 26.3 -1.1% 31.0 22.8 9.6 0.81 7.9 2.7

Vodafone Qatar QSC 9.1 -0.5% 9.7 8.1 0.0 1.22 6.1 2.1

Top 5 Value Traded


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Industries Qatar QSC 158.9 0.8% 175.2 121.8 10.5 3.68 822.3 26.5

Qatar National Bank SAQ 177.0 12.5% 179.0 128.2 13.6 2.73 616.2 33.5

United Development Co PSC 22.5 -2.3% 24.6 16.6 10.2 0.74 591.7 2.1

Commercial Bank of Qatar 68.5 -1.7% 78.5 63.7 8.6 1.21 270.0 4.7

Doha Bank QSC 50.7 8.1% 52.8 42.0 9.3 1.67 259.4 3.8

Source: Gulfbase, Reuters & Global Research

Market capitalization At the end of July, total market capitalization of listed companies on the QE index advanced 4.4% to USD146.5bn (QAR533.7bn) from USD140.2bn (QAR510.0bn) in June. The rise in market capitalization is mainly attributed to Industries Qatar and Qatar Telecom QSC. Total market cap of the top 10 listed companies increased 5.6%MoM to QAR411.2bn during the same period.


15

Top 10 Listed Companies by Market Capitalization (in QARbn)


Industries Qatar QSC 123.9 110.2 93.1 12.4% 33.1%

Qatar National Bank SAQ 96.1 95.4 72.6 0.8% 32.4%

Ezdan Holding Group 45.2 46.4 53.0 -2.5% -14.8%

Qatar Telecom QSC 44.8 38.7 33.6 15.7% 33.3%

Masraf Al Rayan QSC 21.1 20.7 20.2 1.8% 4.3%

Qatar Islamic Bank SAQ 17.4 16.4 12.3 5.9% 41.4%

Commercial Bank of Qatar QSC 17.0 17.3 17.2 -2.0% -1.7%

Qatar Fuel QSC 16.4 15.9 13.5 3.2% 21.1%

Qatar Electricity and Water Co QSC 16.3 16.1 18.4 1.2% -11.4%

Doha Bank QSC 13.1 12.1 11.6 8.1% 12.6%


Source: Reuters, Zawya & Global Research


16

Saudi Arabia

TASI continues the uptrend, rises 5.6%MoM in July Saudi Arabia’s Tadawul All Share Index (TASI) continued its momentum in July, advancing 5.6%MoM to end at 7,915.10 after gaining 1.3%MoM in June. Growth was primarily driven by strong 2Q13 corporate earnings. Investors displayed significant interest in sector heavyweights Banking and Petrochemicals stocks. At the same time, Retail and Hotel & Tourism stocks remained among the other top picks. Investors expect the momentum in corporate earnings witnessed in 1H13 to continue in the second half of 2013. This led to investors building up that was clearly reflected in the sharper rally during the second half of July.

We expect the market to remain slightly tepid in August due to Eid holidays. The market could also see some more volatility with concerns surrounding the US bond buying program and a slowdown in the Chinese economy. However, we expect the market to continue the uptrend on a longer term, led by solid fundamentals of the local market.

TASI – Index and Volume Performance and Sectoral Performance

Source: Zawya & Global Research

Sectoral Performance Most sectors ended higher in July, with Hotel & Tourism, up 20.0%MoM, leading the pack. It was followed by Retail (13.1%MoM) and Real Estate development (11.5%MoM).

The Hotel & Tourism sector was primarily led by Al-Tayyar group (29.7%MoM), followed by Tourism Enterprises Co. (4.3%MoM). In the Retail segment, Fawaz Abdulaziz Al Hokair & Partners and Jariri Marketing Co. advanced 27.5%MoM and 8.9%MoM, respectively. The Real Estate sector was driven by Jabal Omar (20.0%MoM) and Emaar The Economic City (17.1%MoM).

Sector heavyweights Banking (7.1%MoM) and Petrochemicals (2.3%MoM) also advanced during July. The Banking sector was led by Al Rajhi Bank (6.3%MoM), followed by Saudi British Bank (8.9%MoM) and Samba Financial Group (6.0%MoM). Overall, the Banking sector remained buoyant due to robust 2Q13 earnings. In the Petrochemical sector, Saudi Basic Industries added 2.5%MoM, while Yanbu National Petrochemicals and Sahara Petrochemical Co. gained 4.5%MoM and 10.8%MoM, respectively.

Among the losers were the Insurance and Media sectors, which fell 1.3%MoM and 10.0%MoM, respectively. The Insurance sector was dragged down by Saudi Indian Co. for Cooperative Insurance (11.5%MoM) and Gulf Union Cooperative Insurance (17.8%MoM). The Media sector was driven down by Saudi Printing & Packaging that fell 30.5%MoM.

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Media and Publishing

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Industrial Investment

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Energy & Utilities

Petrochemical Industries

Telecommunication &…

Cement

Building & Construction

Transport

Banks & Financial Services

Agriculture & Food Industries

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Retail

Hotel & Tourism

TASI


17

Trading activity declines in July Trading activity on the TASI slowed down in July. The total volume traded plunged 30.7%MoM to 4.1bn shares from 5.9bn shares in June. Similarly, total turnover decreased 19.2%MoM to USD28.4bn from USD35.1bn in June. At the same time, the number of trades tumbled 22.3%MoM to 2.1mn in July from 2.7mn in June.

TASI Trading Statistics – Top 5

Top 5 Gainers


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Al Babtain Power and Telecom 31.1 31.2% 32.2 22.3 16.4 2.20 74.9 0.4

Al Tayyar Travel Group SJSC 85.3 29.7% 88.5 41.0 12.0 5.69 567.7 2.9

Fawaz Abdulaziz Alhokair Co 133.5 27.5% 135.0 59.5 20.9 8.01 160.0 3.8

United Intl Transportation Co 69.8 22.4% 72.3 38.6 16.0 3.14 77.8 0.6

Jabal Omar Development Co 34.2 20.0% 35.5 17.9 0.0 3.54 1,112.1 8.3

Top 5 Losers


52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Saudi Printing and Packaging 26.5 -30.5% 43.5 26.0 12.2 2.04 567.7 0.4

Gulf Union Cooperative Ins. 25.4 -17.8% 34.3 23.3 0.0 3.90 498.2 0.2

Saudi Indian for Coop. Ins. 90.8 -11.5% 179.8 39.5 0.0 20.99 500.6 0.2

Al Ahlia for Cooperative Ins. 45.6 -8.6% 75.3 43.6 32.2 11.93 94.3 0.1

Salama Cooperative Insurance 52.3 -8.3% 73.8 41.9 0.0 6.95 342.4 0.1

Top 5 Volume Traded


52 wk High

52 wk Low


(mn)

MCAP (USDbn)

Alinma Bank 14.8 8.1% 15.1 12.1 25.7 1.33 535.5 6.0

Emaar The Economic City 11.6 17.1% 11.7 7.5 110.2 1.30 322.2 2.7

Dar Al Arkan Real Estate 10.9 4.3% 10.9 7.5 16.2 0.72 273.0 3.1

Mobile Telecommunications Co. 10.2 2.5% 12.8 7.4 0.0 1.67 251.2 2.9

Jabal Omar Development Co. 34.2 20.0% 35.5 17.9 0.0 3.54 127.7 8.3

Top 5 Value Traded

Company Close

% Chg MTD

52 wk High

52 wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Saudi Basic Industries Corp 93.8 2.5% 99.0 86.3 11.3 1.95 2,215.5 75.4

Alinma Bank 14.8 8.1% 15.1 12.1 25.7 1.33 2,045.4 6.0

Jabal Omar Development Co 34.2 20.0% 35.5 17.9 0.0 3.54 1,112.1 8.3

Emaar The Economic City 11.6 17.1% 11.7 7.5 110.2 1.30 883.3 2.7

Dar Al Arkan Real Estate 10.9 4.3% 10.9 7.5 16.2 0.72 745.2 3.1

Source: TASI, Reuters & Global Research


18

Market capitalization Total market capitalization of listed companies on the TASI rose 5.1%MoM to USD417.1bn (SAR1,564.0bn) at the end of July from USD396.8bn (SAR1,488.2bn) in June. The increase was primarily ascribed to gains recorded by heavyweights Banking (7.1%MoM) and Petrochemicals (2.3%MoM). Total market cap of the top 10 listed companies increased 2.6%MoM to SAR834.7bn during the same period.

Largest 10 Listed Companies by Market Capitalization (in SARbn)


Saudi Basic Industries Corp SJSC 281.3 274.5 271.5 2.5% 3.6%

Al Rajhi Banking and Investment Corp SJSC 114.8 108.0 109.1 6.3% 5.2%

Saudi Telecom Co SJSC 80.2 79.8 79.8 0.5% 0.5%

Etihad Etisalat SJSC 64.9 62.4 45.2 4.0% 43.7%

Kingdom Holding Co 64.9 68.2 44.5 -4.9% 45.8%

Saudi Electricity Co SJSC 54.6 53.5 53.7 1.9% 1.6%

Saudi Arabian Fertilizers Co JSC 48.5 47.9 50.0 1.3% -3.0%

Samba Financial Group 47.7 45.0 41.9 6.0% 14.0%

Saudi British Bank 40.3 37.1 32.6 8.6% 23.6%

Riyad Bank SJSC 37.7 37.3 34.4 0.8% 9.6%


Source: TASI, Reuters and Global Research


19

UAE – Abu Dhabi

Market gains 8.3%MoM on positive earnings momentum After ending almost flat in June, Abu Dhabi’s ADX bounced back in July, advancing 8.3%MoM to close at 3,847.43. The key driver for the market was the expectation of strong corporate earnings in 2Q13. At the same time, sentiments were boosted as the MSCI upgraded UAE’s status to “Emerging Market”. The market was primarily driven by the Banking and Real Estate sectors as a result of improving business environment in the UAE. Construction activity remains on an uptrend, while liquidity has been increasing. However, the market witnessed a slight pullback at the tail end of July, mainly on concerns surrounding the US quantitative easing program. Overall, the ADX remains up by 46.2%YTD, the second best performer in the GCC region after its neighbor (Dubai). The market is expected to remain dull in August, primarily due to Ramadan. Among other important developments, July saw appointment of a new Assistant Chief Executive of ADX.

ADX Index and Volume Performance and Sectoral Performance

Source: ADX Stock Exchange & Global Research

Sectoral Performance Two of the 11 sectors ended flat, while the rest posted gains in July. The Real Estate sector gained the most (22.8%MoM), followed by the Investment & Financial Services (14.5%MoM) and Energy (9.4%MoM) sectors. Industry heavyweight Banking sector advanced 8.3%MoM.

The Real Estate sector was led by Aldar Properties and Eshraq Properties that gained 24.0%MoM and 14.0%MoM, respectively. The Energy sector was driven by Dana Gas that rose 16.7%MoM. In the heavyweight Banking sector, National Bank of Abu Dhabi led the table surging 15.5%MoM, followed by Union National Bank (12.8%MoM) and Abu Dhabi Commercial Bank (6.4%MoM). The Banking sector was boosted by an all round positive 2Q13 earnings.

In the other heavyweight Industrial sector that rose 4.0%MoM, growth was led by Ras Al Khaimah Ceramics (16.8%MoM) and Union Cement (12.6%MoM). In the Services sector, all stocks gained with National Marine Dredging rising 20.5%MoM, followed by Gulf Medical Projects (7.4%MoM) and Abu Dhabi National Hotels (2.9%MoM).

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Health Care

Insurance

Consumer

Industrial

Telecom.

Services

Banks

Energy

Investment & Fin.

Real Estate

ADX


20

Trading continues to weaken Although the ADX posted a solid gain during July, trading activity continued to weaken for the second consecutive month. Total trading volume decreased 25.7%MoM to 3.2bn shares in July from 4.3bn shares in June. Similarly, total value traded in July aggregated to AED7.0bn from AED9.0bn in June. Meanwhile, the number of trades declined 26.5%MoM to 42,994 in July from 58,457 in June.

ADX Trading Statistics – Top 5

Top 5 Gainers


52-wk High

52-wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Commercial Bank International PSC 3.1 93.0% 3.1 0.8 18.9 2.48 0.2 1.3

United Arab Bank PJSC 5.5 31.3% 5.6 2.8 11.9 2.69 15.0 1.5

Aldar Properties PJSC 2.7 24.0% 2.8 1.2 11.6 1.43 1,023.5 6.3

National Marine Dredging PSC 9.7 20.5% 11.0 7.0 6.4 0.74 0.2 0.6

Ras Al Khaimah Ceramics PSC 2.2 16.8% 2.4 1.1 8.0 0.73 2.5 0.5

Top 5 Losers


52-wk High

52-wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Umm Al Qaiwain Cement Industries 1.2 -12.9% 1.4 0.7 33.6 0.80 0.01 0.1

Sharjah Cement and Industrial Dev 0.9 -10.0% 1.4 0.7 20.0 0.38 0.00 0.1

Al Dhafra Insurance Co PSC 6.3 -10.0% 7.0 5.8 11.3 2.04 6.14 0.2

Foodco Holding PJSC 1.9 -9.4% 2.1 1.2 14.7 0.69 0.08 0.1

Al Khazna Insurance Co PSC 0.9 -7.4% 1.0 0.7 0.0 0.57 0.04 0.1

Top 5 Volume Traded


52-wk High

52-wk Low


(mn)

MCAP (USDbn)

Aldar Properties PJSC 2.7 24.0% 2.8 1.2 11.6 1.43 1540.9 6.3

Dana Gas PJSC 0.6 16.7% 0.7 0.4 6.6 1.76 393.2 1.1

Eshraq Properties Co PJSC 0.6 14.0% 0.8 0.3 2.3 0.69 303.6 0.2

RAK Properties PJSC 0.6 9.3% 0.7 0.3 8.2 0.34 215.9 0.3

Methaq Takaful Insurance Co PSC 1.4 2.9% 1.7 1.0 0.0 2.17 176.9 0.1

Top 5 Value Traded


52-wk High

52-wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Aldar Properties PJSC 2.7 24.0% 2.8 1.2 11.6 1.43 1,023.5 6.3

Abu Dhabi Commercial Bank PJSC 5.3 6.4% 5.4 2.9 10.7 1.24 156.8 8.1

Emirates Telecommunication Corp 11.8 4.4% 12.1 8.6 13.5 2.30 117.6 25.5

First Gulf Bank PJSC 16.5 3.4% 17.5 9.0 11.8 1.77 97.3 13.9

National Bank of Abu Dhabi PJSC 13.1 15.5% 13.4 7.7 11.7 1.85 76.3 15.6

Source: Reuters, Gulfbase & Global Research


21

Market capitalization At the end of July 2013, market capitalization of companies listed on the ADX index aggregated USD99.9bn vis-à-vis USD92.0bn in the same period in June. The overall market capitalization was driven by index heavyweight National Bank of Abu Dhabi, followed by Emirates Telecommunication Corp. Total market cap of the top 10 listed companies increased 8.1%MoM to AED299.2bn during the same period.

Top 10 Listed Companies by Market Capitalization (in AEDbn)


Emirates Telecommunication Corp Ltd 92.9 89.0 74.0 4.4% 25.5%

National Bank of Abu Dhabi PJSC 56.2 48.7 32.5 15.5% 72.6%

First Gulf Bank PJSC 49.5 47.9 26.7 3.4% 85.4%

Abu Dhabi Commercial Bank PJSC 29.8 28.0 18.8 6.4% 58.3%

Aldar Properties PJSC 21.2 17.1 4.7 24.0% 346.3%

Union National Bank PJSC 13.9 12.3 7.4 12.8% 88.0%

Abu Dhabi Islamic Bank PJSC 11.3 10.4 7.4 9.1% 53.2%

National Bank of Ras Al Khaimah PSC 11.1 10.1 5.9 10.0% 86.2%

Abu Dhabi National Energy Co PJSC 8.0 8.0 7.5 0.0% 5.9%

National Bank of Umm Al Qaiwain PSC 5.5 5.5 2.9 -0.9% 89.0%




22

UAE – Dubai

DFM surged 16.5% in July on strong 2Q13 earnings expectations The Dubai Financial Market (DFM) index witnessed a strong rally in July, aided by expectations of robust corporate earnings in 2Q13. The index advanced 16.5%MoM to close at 2,588.53 in July after declining 6.1%MoM in the previous month. The decline in June provided investors with an attractive entry point. MSCI’s reclassification of the UAE to “Emerging Market” status kept investor sentiments upbeat. Furthermore, expectations for 2Q13 corporate earnings remained strong due to an overall recovery in Dubai’s markets. Market growth was driven by sector heavyweights Banking, Real Estate & Construction, and Services. As a result of this rally, the DFM is currently up by 59.5% YTD. The market could see some correction, especially with concerns about the continuation of the US bond-buying program. Moreover, in the absence of any near-term catalysts, the market could see some profit-booking activity.

DFM Index and Volume Performance and Sectoral Performance


Sectoral Performance All of the sectors, except for Insurance, gained during July. Investment & Financial Services gained the most (31.9%MoM), followed by Services (16.9%MoM) and Transportation (16.5%MoM). Sector heavyweights Banking and Real Estate & Construction rose 13.9%MoM and 14.5%MoM, respectively.

Banking was led by Emirates NBD (up 14.4%MoM), followed by Dubai Islamic Bank (15.5%MoM), and Mashreq Bank (18.6%MoM). On the other hand, the growth in Real Estate & Construction was driven by Emaar Properties (up 15.3%MoM on strong 2Q13 earnings), Drake & Scull International (28.6%MoM), and Arabtec (9.7%MoM).

Insurance, the only loser during the month, declined 0.6%MoM mainly due to an 18.0%MoM fall in Oman Insurance.

Trading activity continued to decline In contrast to the index’s performance, trading activity continued to decline for the second consecutive month in July. The total value of shares traded aggregated USD3.4bn in July, down 8.3%MoM from USD3.7bn in June. The total volume of shares traded fell 6.3%MoM to 8.4bn in July from 9.0bn in June. Similarly, the total number of trades declined 8.5%MoM to 100,879 from 110,232.

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Insurance

Industrial

Consumer Staples

Banks

Real Estate & Construction

Telecommunication

Transportation

Services

Investment & Fin. Services

DFM


23

DFM Trading Statistics – Top 5

Top 5 Gainers


52-wk High

52-wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Dubai Investment PJSC 1.9 45.0% 1.9 0.7 15.7 0.79 476.5 1.8

Air Arabia PJSC 1.4 29.9% 1.4 0.6 15.3 1.23 302.4 1.8

Tamweel PJSC 1.5 29.5% 1.5 1.0 18.7 0.64 12.0 0.4

Drake and Scull International PJSC 1.2 28.6% 1.2 0.7 23.4 0.96 384.2 0.7

Mashreqbank PSC 51.1 18.6% 55.0 40.0 5.6 0.67 2.0 2.4

Top Losers


52-wk High

52-wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Oman Insurance Co PSC 3.7 -18.0% 6.8 3.7 8.5 1.07 0.26 0.5

Al Mazaya Holding Co KSC 1.5 -10.5% 1.7 0.6 0.0 10.83 0.03 0.3

Agility Public Warehousing Co KSC 7.4 -10.0% 17.1 7.4 16.1 8.73 0.00 2.8

Dar Al Takaful PJSC 0.5 -4.4% 0.7 0.5 0.0 0.91 0.77 0.0

Al Madina for Finance and Inv. 0.7 -2.6% 0.9 0.6 0.0 4.95 1.20 0.1

Top 5 Volume Traded


52-wk High

52-wk Low


(mn)

MCAP (USDbn)

Drake and Scull International PJSC 1.2 28.6% 1.2 0.7 23.4 0.96 1,273.4 0.7

Gulf Finance House BSC 0.5 4.5% 0.7 0.4 20.2 2.63 1,210.0 1.5

Dubai Investment PJSC 1.9 45.0% 1.9 0.7 15.7 0.79 1,020.5 1.8

Air Arabia PJSC 1.4 29.9% 1.4 0.6 15.3 1.23 881.0 1.8

Dubai Financial Market PJSC 2.0 17.0% 2.1 0.9 176.3 2.11 706.1 4.4

Top 5 Value Traded


52-wk High

52-wk Low

P/E P/B Value

Traded (USDmn)

MCAP (USDbn)

Dubai Investment PJSC 1.9 45.0% 1.9 0.7 15.7 0.79 476.5 1.8

Emaar Properties PJSC 6.0 15.3% 6.1 3.3 17.7 1.11 421.0 10.0

Drake and Scull International PJSC 1.2 28.6% 1.2 0.7 23.4 0.96 384.2 0.7

Dubai Financial Market PJSC 2.0 17.0% 2.1 0.9 176.3 2.11 368.5 4.4

Dubai Islamic Bank PJSC 3.6 15.5% 3.7 1.9 11.4 1.24 362.1 3.7

Source: Reuters, Gulfbase & Global Research


24

Market capitalization At the end of July 2013, the market capitalization of companies listed on the DFM index stood at USD53.4bn vis-à-vis USD46.8bn over the same period the previous month. The rise in market capitalization was mainly driven by Emaar Properties, followed by Emirates Integrated Telecommunications and Emirates NBD. The market capitalization of the top 10 listed companies rose 16.1%MoM to AED163.8bn during the same period.

Top 10 Listed Companies by Market Capitalization (in AEDbn)


Emaar Properties PJSC 36.4 31.6 20.7 15.3% 75.6%

Emirates Integrated Telecommunications Co 30.7 26.5 14.8 15.7% 107.7%

Emirates NBD Bank PJSC 30.0 26.2 15.1 14.4% 98.5%

Dubai Financial Market PJSC 16.0 13.7 7.8 17.0% 104.7%

Dubai Islamic Bank PJSC 13.6 11.8 7.3 15.5% 85.5%

Mashreqbank PSC 8.6 7.3 9.9 18.6% -12.7%

Commercial Bank of Dubai PSC 8.2 8.0 5.8 2.6% 39.9%

Arabtec Holding PJSC 7.1 6.5 4.6 9.7% 54.8%

Dubai Investment PJSC 6.8 4.7 2.6 45.0% 163.5%

Air Arabia PJSC 6.5 5.0 3.0 29.9% 117.9%




25

Appendix 1: MENA and Global market performance in July 2013

GCC Markets Indices Up/Down Close % Chg (MoM)

% Chg (YTD)

P/E (x) P/B (x) Div Yield

(%)

KSE Weighted Index ▲ 462 3.3% 10.6% 19.1 1.4 2.9

KSE Price Index ▲ 8,070 3.8% 36.0% 20.5 1.3 3.5

Tadawul All Share Index ▲ 7,915 5.6% 16.4% 16.6 2.1 3.7

DFM Index ▲ 2,589 16.5% 59.5% 15.7 1.1 3.1

ADX Index ▲ 3,847 8.3% 46.2% 11.2 1.4 4.6

Bahrain All Share ▲ 1,195 0.6% 12.1% 8.4 0.9 4.1

QE Index ▲ 9,705 4.6% 16.1% 12.3 1.7 4.7

MSM30 Index ▲ 6,643 4.8% 15.3% 11.0 1.7 4.1

Levant & North Africa Markets Up/Down Close % Chg (MoM)

% Chg (YTD)


(%)

Egypt - EGX30 ▲ 5,325 12.0% -2.5% 32.3 1.3 2.5

Egypt-- EGX70 ▲ 428 18.9% -10.3% 15.0 1.2 3.9

Jordan-- Amman Fr Flt Index ▼ 1,957 -1.2% -0.1% 15.1 1.0 3.1

Palestine - AlQuds Index ▲ 473 4.6% -0.9% NA NA NA

Lebanon - BLOM Stk Index ▲ 1,155 0.8% -1.2% 6.9 0.9 4.6

Morocco - CASA All Share index ▼ 8,578 -2.4% -8.4% 14.4 2.0 4.5

Tunisia - Tunisia Main Index ▼ 4,636 -2.6% 1.2% 25.1 1.7 2.1

International Indices Up/Down Close % Chg (MoM)

% Chg (YTD)


(%)

DJ Average ▲ 15,500 4.0% 18.3% 15.2 3.0 2.4

NASDAQ Composite ▲ 3,626 6.6% 20.1% 22.4 3.0 1.5

S&P500 Comp. ▲ 1,686 4.9% 18.2% 16.5 2.5 2.0

FTSE 100 - UK ▲ 6,621 6.5% 12.3% 17.5 1.9 3.7

Extra DAX ▲ 8,276 4.0% 8.7% 14.0 1.6 3.2

CAC 40 - France ▲ 3,993 6.8% 9.7% 17.5 1.4 3.5

International Indices Up/Down Close % Chg (MoM)

% Chg (YTD)


(%)

Bovespa Index ▲ 48,234 1.6% -20.9% 12.8 0.9 4.3

RTS Index ▲ 1,313 3.0% -14.0% 5.8 0.7 3.9

Bombay SE SENSEX -India ▼ 19,346 -0.3% -0.4% 16.4 2.5 1.6

SSE Composite Index - Shanghai ▲ 1,994 0.7% -12.1% 10.9 1.4 3.1

NIKKEI 225 INDEX- Japan ▼ 13,668 -0.1% 31.5% 24.7 1.6 1.4

Hang Seng - Hong Kong ▲ 21,884 5.2% -3.4% 10.2 1.4 3.4

Source: Reuters, Bloomberg & Global Research


26

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GCC Markets Performance July 2013content.argaam.com.s3-external-3.amazonaws.com/1dc... · results, along with UAE’s status upgrade to “Emerging Market” by the MSCI. Strong economic