Global Research GCC Market Performance Markets - GCC September 2015 Performance August 2015 Slump in oil prices and volatility in China s stock market pull down GCC markets Trading activity recovers following Ramadan and Eid holidays in July Market capitalization declines 13.2% in August GCC markets closed in red in August The GCC markets ended in red in August, weighed down by a decline in the price of crude oil and other global cues. The TASI registered the maximum fall (-17.3%) due to a decline in heavyweight petrochemical and Banks & Financial services, followed by the DFM (-11.6%), MSM30 (-10.5%), ADX (-7.0%), KSE (-6.9%), BSE (- 2.4%), and QE Index (-1.9%). Combined market capitalization fell 13.2% The combined market capitalization of the GCC bourses declined 13.2% to USD950.9bn in August. The market capitalization of GCC members declined, with the KSA accounting for the largest share (USD450.4bn or 47.4%) and recording the steepest fall. Qatar contributed USD167.3bn (17.6%), Abu Dhabi and Dubai contributed USD204.0bn (21.5%), and Kuwait, Oman, and Bahrain contributed USD129.2bn to the value. GCC trades recovered in August Trading across GCC markets recovered in August. The volume traded rose 46.1%, as trading volumes across markets increased. The value traded increased 57.9% amid surging trading values in all countries, except Bahrain. Market activities were subdued in July due to Ramadan, with the GCC markets closed for Eid. The KSA was the biggest contributor (USD23.6bn) to the trading value (USD29.8bn). Market Performance in August 2015 105 95 85 75 3-Aug-15 8-Aug-15 13-Aug-15 18-Aug-15 23-Aug-15 28-Aug-15 Saudi Qatar Kuwait (Price) KWSE (Weighted) Abu Dhabi Dubai Oman Bahrain MSCI EM Index MSCI World Index Global Investment House www.globalinv.net Indices () (YTD) KSE Price Index -6.9% -10.9% Tadawul All Share Index -17.3% -9.7% DFM Index -11.6% -3.0% ADX Index -7.0% -0.8% Bahrain All Share -2.4% -8.9% QE Index -1.9% -5.9% MSM30 Index -10.5% -7.4% Source: Zawya, Bloomberg, Reuters & Global Research
GCC Aggregate Market Capitalization Country Market Cap August 2015 Market Cap July 2015 () % of total August 2015 Kuwait 85.4 92.1-7.3% 9.0% Saudi Arabia 450.4 561.8-19.8% 47.4% Abu Dhabi 114.4 123.0-7.0% 12.0% Dubai 89.6 99.9-10.3% 9.4% Qatar 167.3 172.4-2.9% 17.6% Oman 23.4 25.5-8.3% 2.5% Bahrain 20.4 21.0-3.0% 2.1% Total GCC 950.9 1,095.7-13.2% 100.0% Source: Respective stock exchanges, Zawya and Global Research GCC Aggregate Trading Activity Country August 2015 July 2015 traded Volumes (mn) As a % of total value traded traded Volumes (mn) As a % of total value traded Bahrain 0.01 20.3 0.0% 0.01 15.0 0.1% Kuwait 0.79 2,421.2 2.6% 0.54 2,031.6 2.9% Oman 0.19 286.80 0.6% 0.12 186.54 0.6% Qatar 1.50 124.8 5.0% 0.83 67.4 4.4% Saudi Arabia 23.62 4,227.4 79.4% 14.02 1,773.7 74.4% UAE 3.66 7,164.9 12.3% 3.33 5,678.7 17.7% GCC Total 29.76 14,245.2 100.0% 18.85 9,752.9 100.0% Source: Respective stock exchanges, Reuters, Zawya & Global Research GCC markets dive deep into negative territory; long-term fundamentals intact The GCC markets closed in the red in August due to a slump in oil prices, China s devaluation of yuan, and concerns over global economic growth. Fitch s decision to lower the outlook for KSA s foreign and local currency issuer default ratings to negative from stable amplified the concerns. However, trading activities and volumes witnessed seasonal improvements across the GCC markets, as the markets were closed in the previous month owing to Ramadan and Eid holidays. Crude oil had declined to almost about a six-and-a-half year low. This fall can be ascribed to an expected decline in demand for energy from the second-largest economy amid continued crude oil supply glut. However, toward the end of the month, Brent rose 21.7%in three sessions, the highest three-day gain in the last 25 years, led by OPEC s readiness to discuss production levels with other oil producers. Furthermore, weaker crude oil production data from the US toward the end contributed to higher prices. We expect the outlook for GCC economies to remain positive in the long term, supported by stable growth in infrastructure expenditure and diversification into the non-oil sector. Moreover, the local governments are committed to essential developmental activities in their pursuit to diversify the economies away from oil. Furthermore, indications of OPEC talks regarding crude oil production by the peers may ease some pressure on the crude oil prices. In terms of valuation, the one-year forward PE ratio of GCC markets stands at 10.3 13.2x, broadly lower than that of its key emerging market peers. As large GCC markets, such as the UAE and Qatar, are part of the MSCI Emerging Markets Index, with KSA to be included in 2017, growth outlook for the stock market appears positive. 2
1 year forward EPS growth Global Research GCC GCC Market Valuation EPS Growth versus Price to Earnings 20% 15% Dubai Japan 10% 5% Kuwait India China 0% 5.0x 7.0x 9.0x 11.0x Abu Dhabi 13.0x 15.0x US 17.0x 19.0x Qatar -5% -10% Oman Hong Kong Saudi Arabia -15% Egypt UK -20% 1 year forward PE Source: Bloomberg & Global Research Concerns over China s economic growth drag down global equity markets Global equities began the month of August on a stable note. However, this was followed by a major global-selloff during the third week, with markets entering into a free-fall due to crash in oil prices (fell 12.8% in four trading sessions) and volatility in the currency market, which began following the artificial devaluation of yuan by the Chinese government. Markets managed to recover some losses in the last week, led by recovery in oil prices and rate cut by China s central bank. However, the losses could not be completely erased as the decline was steep. Consequently, all the leading global indices ended lower for the month. The US markets remained range bound in the first two weeks. Although news of a major planned acquisition (~USD37bn) by Berkshire Hathaway boosted investor confidence, the ongoing uncertainty over interest rate hike by the US Federal Reserve kept investors at bay. The stable period was replaced by a spell of significant correction during the third week. Weak economic data from China, along with the move by China s central bank to devalue yuan, triggering currency war, created turmoil in the global equity markets. Moreover, due to a slowdown in the expected demand for energy in China, the crude prices declined to multi-year lows, which further weighed on the markets. However, the significant fall was followed by value-buying toward the end of the month. Although European markets have been relieved from the concerns of Greek debt crisis for some time, these were also a victim of the global sell-off, with three major indices posting declines of 6 10%. Asian markets too remained weak, with the SSE Composite Index Shanghai posting a significant fall of 12.5%. Weak economic data from China, including the manufacturing data, dented the overall investor confidence in the region, dragging down the global equity markets. However, toward the end of the month, trimming of the benchmark interest rate by China s central bank provided some support to the market. 3
2-Aug 5-Aug 10-Aug 13-Aug 18-Aug 23-Aug 26-Aug 31-Aug in mn Global Research GCC Bahrain BSE falls 2.4% in August The BSE declined 2.4% in August. Investor sentiment remained submissive over the month due to poor global and GCC cues. Moreover, concerns over weak oil prices continued to weigh on the markets. The market witnessed a significant decline at the end of the month due to a downturn in crude price. On YTD basis, the market declined 8.9%. During the month, Bahrain Bourse listed BHD100mn government development bond. The securities were issued at a par value of BHD1 each for 2 years ending July 2017. The returns on these securities would be paid every six months throughout the period. The annual fixed interest rate on these securities is 2.75%. Following the listing of this issue, the number of conventional bonds and sukuk issues listed on BHB reached 12 issues, with an approximate total value of USD5.1bn. BSE Index and Volume Performance and Sectoral Performance 1,340 4.5 1,330 1,320 1,310 1,300 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 BSE Hotel & Tourism Investment Services Insurance -2.4% -0.5% -1.1% -2.1% 0.9% 1,290 0.0 Commercial Banks -3.4% Industrial -6.3% Volume (RHS) Index (LHS) -8% -6% -4% -2% 0% 2% Source: Zawya, Gulfbase & Global Research Sectoral performance Five sectors ended in the red in August, while one ended in the green. Hotel & Tourism (0.9%) was the sole gainer. Among the weak performers, Industrial (-6.3%) topped the list, followed by Commercial Banks (- 3.4%), Insurance (-2.1%), Services (-1.1%), and Investment (-0.5%). The Industrial sector declined due to weakness in heavyweight Aluminium Bahrain Co. (-6.4%). Heavyweight sector Commercial Banks also ended the month in the red, primarily led by Al Ahli United Bank (-2.8%), followed by Al Salam Bank (-17.5%). The Insurance sector fell during the month due to a decline in Arab Insurance Group (-8.5%). Gain in the Hotel & Tourism sector was mainly ascribed to Gulf Hotels Group (1.2%) and also Banader Hotel Co. (10.0%). Furthermore, this gain was partially offset by a decline in stock price for Bahrain Tourism (-5.3%). Trading was mixed in August Trading on the BSE was mixed in August. Volume traded increased 35.3% to 20.3mn shares from 15.0mn shares, while the trading value declined 0.9% to USD0.01bn. 4
BSE Trading Statistics Top 5 Top 5 Gainers Trafco Group BSC 0.250 17.8% 0.252 0.204 11.2 0.86 0.1 0.05 Banader Hotels Co BSC 0.080 10.0% 0.077 0.056 NA 0.56 0.0 0.03 Gulf Hotel Group BSC 0.830 1.2% 0.940 0.767 14.8 2.14 0.2 0.38 Seef Properties BSC 0.200 1.0% 0.212 0.188 7.9 0.74 1.7 0.25 Arab Banking Corporation* 0.630 0.8% 0.770 0.620 9.0 0.50 0.1 1.94 Top 5 Losers Al Salam Bank Bahrain BSC 0.110-17.5% 0.212 0.103 14.9 0.77 0.6 0.64 Arab Insurance Group BSC* 0.430-8.5% 0.615 0.430 5.0 0.33 0.1 0.11 Inovest BSC* 0.170-7.9% 0.255 0.175 NA 0.30 0.3 0.05 Aluminium Bahrain BSC 0.470-6.4% 0.555 0.466 5.0 0.72 1.5 1.75 Khaleeji Commercial Bank BSC 0.060-6.2% 0.071 0.047 9.7 0.57 0.7 0.16 Top 5 Volume Volume (mn) Khaleeji Commercial Bank BSC 0.060-6.2% 0.071 0.047 9.7 0.57 4.5 0.16 Ithmaar Bank BSC* 0.130-3.7% 0.195 0.125 NA 0.72 4.5 0.39 Seef Properties BSC 0.200 1.0% 0.212 0.188 7.9 0.74 3.2 0.25 United Gulf Bank BSC 0.390 0.0% 0.390 0.226 111.4 0.72 3.0 0.86 Ahli United Bank BSC* 0.690-2.8% 0.800 0.690 8.9 1.30 2.2 4.46 Top 5 United Gulf Bank BSC 0.390 0.0% 0.390 0.226 111.4 0.72 3.1 0.86 Seef Properties BSC 0.200 1.0% 0.212 0.188 7.9 0.74 1.7 0.25 Ahli United Bank BSC* 0.690-2.8% 0.800 0.690 8.9 1.30 1.5 4.46 Aluminium Bahrain BSC 0.470-6.4% 0.555 0.466 5.0 0.72 1.5 1.75 Bahrain Telecommunications 0.330-2.4% 0.366 0.314 10.5 1.02 0.9 1.46 Source: Reuters & Global Research, *Price data in USD 5
Market capitalization The total market capitalization of companies listed on the BSE decreased 3.0% to USD20.4bn in August from USD21.0bn in July. The market capitalization of the top 10 listed companies fell 2.2%. Largest 10 Listed Companies by Market Capitalization (in BHDbn) Aug-15 Jul-15 Aug-14 % YoY% Ahli United Bank BSC 1.68 1.73 1.86-2.8% -9.3% National Bank of Bahrain BSC 0.76 0.77 0.80-0.7% -4.4% Arab Banking Corporation BSC 0.73 0.73 0.85 0.8% -13.7% Aluminium Bahrain BSC 0.66 0.71 0.71-6.4% -6.8% Bahrain Telecommunications Co BSC 0.55 0.56 0.62-2.4% -11.4% BBK BSC 0.47 0.47 0.49-0.5% -5.5% Al Baraka Banking Group BSC 0.28 0.29 0.34-1.4% -18.1% Investcorp Bank BSC 0.17 0.17 0.20 0.0% -14.8% GFH Financial Group BSC 0.17 0.17 0.29-4.8% -42.1% Ithmaar Bank BSC 0.15 0.15 0.19-3.7% -23.5% Total Market Capitalization (Top 10 stocks) 5.62 5.75 6.35-2.2% -11.5% Source: Reuters and Global Research 6
2-Aug 5-Aug 10-Aug 13-Aug 18-Aug 23-Aug 26-Aug 31-Aug in mn Global Research - GCC Kuwait KSE falls 6.9% in August The Kuwait Stock Exchange (KSE) declined 6.9% in August, after rising 0.8% in July. The index started on a relatively stable note. Decent corporate earnings kept the market firm after that. By the middle of the month, the market inched up from its position at the start of the month. However, the index came under pressure toward the end of the month. Weak global cues and a decline in oil prices weighed on the market. Nevertheless, the impact of the global cues was slightly less on Kuwait compared with other regional peers that reported substantial losses. However, on a YTD basis, the KSE declined 10.9%. Following a slowdown at the end of the previous year, the roll out of Kuwait s five-year development plan helped the country s capital goods segment gain traction despite the plunge in oil prices. As part of this program, some projects have been announced recently including a new refinery project and an extension to Kuwait City s airport. KSE Index and Volume Performance and Sectoral Performance 6,400 6,300 6,200 6,100 6,000 5,900 5,800 5,700 Volume (RHS) Index (LHS) 300 250 200 150 100 50 0 KSE Consumer Services Health Care Insurance Industrial Banks Technology Oil & Gas Consumer Goods Real Estate Basic Material Telecommunication Financial Services -9.2% -10.1% -10.4% -11.2% -7.2% -8.2% -8.2% -6.9% -5.0% -5.9% -0.8% -1.2% 2.1% -15% -10% -5% 0% 5% Source: Kuwait Stock Exchange & Global Research Sectoral performance In August, 11 sectors ended in the red, while only one was in green. The Financial Services sector declined the most (-11.2%), followed by Telecommunication (-10.4%), Basic Material (-10.1%), Real Estate (- 9.2%), Consumer Goods (-8.2%), Oil & Gas (-8.2%), Technology (-7.2%), Banks (-5.9%), Insurance (-1.2%), and Healthcare (-0.8%). The fall was partly offset by gains in Consumer Services (2.1%). The index heavyweight, banking sector, declined 5.9%. The downside was due to weak performance of the National Bank of Kuwait (-8.2%), Kuwait Finance House (-7.9%), the Commercial Bank of Kuwait (- 8.3%), Burgan Bank (-4.8%), and Boubyan Bank (-5.9%). The decline in the financial services sector could be ascribed to weak performance of Al-Mal Investment Co (- 16.3%) and Gulf Investment House Co. (-30.9%), among others. The oil & gas sector declined 8.2% due to sluggish performances by The Energy House Co. (-11.7%), Ikarus Petroleum Industries Co. (- 20.0%), and Gulf Petroleum Investment Co. (31.3%). These were partly offset by gains registered by the National Petroleum Services Co. (3.6%). Gains in consumer services were led by Zima Holding (89.9%), 7
followed by Kout Food Group (8.5%). This was partly offset by weak performance by Kuwait Resorts Co. (- 8.3%). Trading activity increased in August In August 2015, trading activity increased, with the value of shares traded rising 44.8% to USD0.8bn from USD0.5bn and volumes rising 19.2% to 2.4bn shares. KSE Index Trading Statistics Top 5 Top 5 Gainers Zima Holding Co KSC Holding 150.0 89.9% 178.0 67.0 0.0 1.45 11.8 0.05 Heavy Engineering Industries and Shipbuilding Co KSC 138.0 13.1% 158.0 112.0 8.7 0.66 0.5 0.08 Arabi Group Holdings KSCP 100.0 11.1% 174.5 88.2 7.4 0.67 0.6 0.05 Educational Holding Group KSC 242.0 11.0% 270.0 140.0 11.1 1.64 0.0 0.20 Human Soft Holding Co KSC 1040.0 9.5% 1,280.0 345.0 11.4 4.93 4.2 0.40 Top 5 Losers Kuwait Building Materials Manufacturing Co KSC Gulf Petroleum Investment Co KSCC 275.0-32.9% 455.0 270.0 13.5 1.51 0.0 0.03 44.0-31.3% 101.0 41.5 0.0 0.38 16.6 0.05 Gulf Investment House KSC 32.5-30.9% 91.0 30.5 0.0 0.32 3.8 0.02 Al Qurain Holding Co KSCP 8.5-26.1% 50.0 7.5 5.6 0.27 0.1 0.01 Bayan Investment Co KSC 36.5-25.5% 96.0 36.0 0.0 0.36 6.2 0.05 Top 5 Volume Al Dar National Real Estate Co KSCP Investors Holding Group Co KSC Volume (mn) 42.0 6.3% 44.5 17.0 10.1 1.63 567.3 0.05 26.0-17.5% 63.0 16.0 10.4 0.31 139.0 0.05 Al Mal Investment Co KSCC 36.0-16.3% 57.0 25.0 1.8 0.95 138.7 0.08 Manazel Holding Co KPSC 37.0-11.9% 66.0 34.5 3.9 0.83 138.0 0.09 National Ranges Co KPSC 24.5-15.5% 66.0 21.5 0.0 0.23 109.0 0.02 Top 5 Kuwait Finance House KSCP 580.0-7.9% 790.9 560.0 20.6 1.58 92.0 9.31 National Bank of Kuwait SAK 780.0-8.2% 952.4 761.9 13.9 1.43 86.0 13.18 Al Dar National Real Estate Co KSCP 42.0 6.3% 44.5 17.0 10.1 1.63 76.5 0.05 Kuwait Telecommunications Co KSCC 840.0-9.7% 970.0 475.0 9.9 8.38 66.8 1.41 Mobile Telecommunications Co KSC 370.0-10.8% 680.0 360.0 8.9 0.93 54.5 5.23 Source: Gulfbase, Reuters & Global Research 8
Market capitalization In August 2015, the market capitalization of the companies listed on the KSE fell 7.3% to USD85.4bn from USD92.1bn. The market capitalization of the top-10 listed companies fell 8.5%. Top 10 Listed Companies by Market Capitalization (in KWDbn) Aug-15 Jul-15 Aug-14 % YoY% National Bank of Kuwait SAK 3.9 4.3 4.8-8.2% -18.0% Kuwait Finance House KSCP 2.8 3.0 3.5-7.9% -21.2% Mobile Telecommunications Co KSC 1.6 1.8 2.8-10.8% -43.0% Ahli United Bank BSC 1.3 1.4 1.4-3.0% -3.8% Kuwait Food Co KSCP 0.9 1.1 1.3-24.1% -33.1% Kuwait Projects Holding KSCP 0.9 1.0 1.1-11.7% -17.8% Burgan Bank SAKP 0.8 0.8 0.9 1.3% -11.9% Boubyan Bank KSCP 0.8 0.9 1.0-5.8% -17.6% Commercial Bank of Kuwait KSC 0.8 0.8 1.0-8.2% -25.6% Gulf Bank KSCP 0.8 0.9 1.0-3.5% -16.6% Total Market Capitalization (Top 10 stocks) 14.6 16.0 18.8-8.5% -22.3% Source: Reuters, Zawya & Global Research 9
2-Aug 5-Aug 10-Aug 13-Aug 18-Aug 23-Aug 26-Aug 31-Aug in mn Global Research GCC Oman MSM30 fell 10.5% in August The MSM30 index declined 10.5% in August after rising 2.1% in July. The index traded downward for most of the month. Much of the decline was ascribed to the weak oil market. However, toward the end of the month, the index recovered due to a sharp rebound in crude oil prices. Nevertheless, the index could not recover from the huge decline and ended in red. On a YTD basis, the market declined 7.4%. According to the annual report by the Capital Market Authority, the share of foreign portfolio investment in stock among the GCC countries was the highest in Oman at 29.5%. The enhanced confidence among foreign investors could be ascribed to a strong regulatory infrastructure. Moreover, attractive valuations of the stocks attracted several institutional investors. MSM30 Index & Volume and Sectoral Performance 6,700 35 6,500 6,300 6,100 5,900 5,700 30 25 20 15 10 5 MSM 30 Services & Insurance Industrial -10.5% -7.5% -8.3% 5,500 0 Banking & Investment -11.9% Volume (RHS) Source: Zawya, Gulfbase, and Global Research Index (LHS) -15% -10% -5% 0% Sectoral performance In August 2015, the Banking & Investment declined the most (-11.9%), followed by Industrial (-8.3%) and Services & Insurance (-7.5%) sectors. Heavyweight Banking & Investment declined due to weak performance by Sohar Bank (-16.0%), Bank Muscat (-9.4%), National Bank of Oman (-12.1%), Bank Dhofar (-11.1%), and Sharqiya Investment Holding Co (-25.7%). The Industrial sector fell largely due to a decline in Al Anwar Holding Co. (-18.2%), Al Anwar Ceramic Tiles Co. (-8.4%), Oman and Emirates Investment Holding (-4.5%), and Oman Investment & Finance Co. (-17.8%). The fall was partly offset by gains in OMINVEST (4.6%) and Dhofar Cattle Feed Co. (5.3%). Services & Insurance was down due to an 11.4% fall in Oman Qatari Telecommunications, Phoenix Power (-5.1%), Oman Telecommunications Co. (3.4%), and Al Maha Petroleum Products Marketing Co. (- 9.0%). Trading activity grew in August 2015 Trading on the MSM30 index grew in August, with the volume traded rising 53.8% to 286.8mn shares from 186.5mn shares. The turnover increased 56.5% to USD0.19bn. 10
MSM30 Trading Statistics Top 5 Top 5 Gainers United Power Co SAOG 3.130 100.3% 5.158 1.600 8.6 0.12 0.5 0.01 Oman Textile Holding Co SAOG Sharqiyah Desalination Co SAOG 0.270 16.0% 0.295 0.220 0.0 0.27 0.0 0.00 4.200 6.9% 4.400 2.933 0.0 NA 0.2 0.11 Dhofar Cattle Feed Co SAOG 0.200 5.3% 0.203 0.145 42.6 0.37 1.3 0.04 Oman International Development and Investment Co SAOG 0.460 4.6% 0.496 0.340 11.0 1.31 7.1 0.66 Top 5 Losers Renaissance Services SAOG 0.170-38.1% 0.720 0.165 8.6 0.27 2.4 0.13 A Sharqiya Investment Holding Co SAOG 0.110-25.7% 0.216 0.095 19.5 0.49 3.2 0.03 Port Services Corp SAOG 0.150-20.5% 0.494 0.150 0.0 0.38 0.3 0.04 Oman United Insurance Co SAOG 0.260-19.8% 0.460 0.237 6.3 0.98 2.7 0.07 Al Anwar Holdings SAOG 0.180-18.2% 0.296 0.122 4.6 1.13 25.8 0.07 Top 5 Volume Volume (mn) Phoenix Power Co SAOG 0.150-5.1% 0.160 0.144 0.6 NA 69.5 0.57 Al Anwar Holdings SAOG 0.180-18.2% 0.296 0.122 4.6 1.13 52.1 0.07 Bank Muscat SAOG 0.500-9.4% 0.747 0.467 6.9 0.90 22.9 2.99 Bank Nizwa SAOG 0.070-12.2% 0.096 0.061 0.0 0.74 16.4 0.25 Oman Investment and Finance Co SAOG Top 5 0.180-17.8% 0.260 0.130 5.6 1.14 14.6 0.09 Bank Muscat SAOG 0.500-9.4% 0.747 0.467 6.9 0.90 30.4 2.99 Phoenix Power Co SAOG 0.150-5.1% 0.160 0.144 0.6 NA 26.8 0.57 Al Anwar Holdings SAOG 0.180-18.2% 0.296 0.122 4.6 1.13 25.8 0.07 Oman Telecommunications Co SAOG 1.700-3.4% 1.810 1.470 10.5 2.28 19.8 3.21 SMN Power Holding SAOG 0.750 2.2% 0.748 0.566 16.4 10.75 12.5 0.39 Source: Reuters & Global Research 11
Market Capitalization The market capitalization of the companies listed on the MSM30 index declined 8.3% to USD23.4mn in August. The market capitalization of the top-10 listed companies declined 8.7%. 10 Largest Listed Companies by Market Capitalization (in OMRbn) Aug-15 Jul-15 Aug-14 % YoY% Oman Telecommunications Co SAOG 1.28 1.32 1.32-2.8% -2.8% Bank Muscat SAOG 1.16 1.27 1.60-9.0% -27.7% National Bank of Oman SAOG 0.41 0.48 0.48-14.5% -13.7% Bank Dhofar SAOG 0.37 0.43 0.52-14.2% -28.2% Ahli Bank SAOG 0.28 0.31 0.30-8.7% -4.8% Bank Sohar SAOG 0.26 0.30 0.29-14.1% -12.2% Raysut Cement Co SAOG 0.24 0.30 0.42-20.6% -43.9% Sembcorp Salalah Power and Water Co SAOG 0.24 0.23 0.23 3.3% 6.3% HSBC Bank Oman SAOG 0.24 0.27 0.33-11.9% -29.3% Phoenix Power Co SAOG 0.22 0.23 0.00-5.1% NA Total Market Capitalization (Top 10 stocks) 4.69 5.14 5.49-8.7% -14.4% Source: Reuters and Global Research 12
2-Aug 5-Aug 10-Aug 13-Aug 18-Aug 23-Aug 26-Aug 31-Aug in mn Global Research GCC Qatar QSE declines 1.9% in August The Qatar Stock Exchange (QSE) fell 1.9% in August. The index remained volatile for most of the month; however, at the end, the market declined sharply due to a substantial fall in oil prices. QSE rebounded after recovery in oil prices. Furthermore, an expected increase in Ezdan Holding s weight in the MSCI index boosted investor sentiment, which helped the market s recovery. All sectors ended in the red in August, except Real Estate, which recorded a marginal gain. On YTD basis, QSE has declined 5.9%. On August 31, Qatar Exchange and Borsa Istanbul signed a Memorandum of Understanding (MoU) to formalize cooperation between the two key markets. This MoU includes exchange of information regarding legal and technical content, proper dissemination of information, and promotion of integrity of both markets. Qatar: Index, Volume, and Sectoral Performance 12,000 11,600 11,200 10,800 10,400 10,000 30 25 20 15 10 5 0 QE Real Estate Insurance Banks & FS Transportation Industrial Consumer Goods -1.9% -1.2% -1.2% -3.2% -5.0% -6.3% 0.3% Telecommunication -12.7% Volume (RHS) Source: Zawya, Gulfbase, & Global Research Index (LHS) -15% -10% -5% 0% 5% Sectoral performance In August, six sectors ended in the red, with just one sector witnessing a marginal gain. Telecommunications (- 12.7%) declined the most, followed by Consumer Goods (-6.3%), Industrial (-5.0%), Transportation (-3.2%), Banks & Financial Services (-1.2%), and Insurance (-1.2%). Real Estate (0.3%) was the sole gainer in August. The Telecommunications sector was dragged down by decline in Ooredoo (-13.8%) and Vodafone Qatar (- 10.0%). The drop in the heavyweight Consumer Goods sector was ascribed to losses in Qatar Fuel Co. (- 3.3%), Al Meera Consumer Goods (-5.0%), and Salam International Investment Co. Ltd. (-9.2%). The fall in the Banks & Financial Services sector was primarily ascribed to decline in Masraf Al Rayan (-3.1%) and Qatar National Bank (-1.9%), partly offset by gains in Commercial Bank of Qatar (5.9%) and Qatar Islamic Bank (3.2%). The Real Estate sector was boosted by gains in Ezdan Real Estate (8.2%) due to an expected increase in its weight in the MSCI index from September, 2015. This increase was partly offset by a fall in Barwa Real Estate Co. (-12.0%). Trading rises in August Trading on QSE increased in August. The value traded rose 80.8% to USD1.5bn from USD0.8bn in July. The volume of shares traded improved 85.0% to 124.8mn. 13
QSE Index Trading Statistics Top 5 Top Gainers Ezdan Holding Group QSC 19.0 8.2% 21.8 13.1 32.7 1.69 130.9 13.47 Commercial Bank QSC 57.4 5.9% 69.8 53.5 10.0 1.13 250.2 5.01 Qatar Islamic Bank SAQ 113.0 3.2% 120.4 84.5 14.8 2.05 75.0 7.19 Qatar Gen Insurance & Reinsur 57.0 2.7% 67.7 36.5 4.3 0.88 1.5 1.23 Top 5 Losers Dlala Brokerage &Investment 20.0-23.4% 51.6 18.5 NA 2.02 3.8 0.16 Al Khaleej Takaful Group QSC 34.0-19.0% 51.3 31.5 15.2 1.32 5.3 0.24 Ooredoo QSC 69.5-13.8% 139.6 60.0 14.8 0.95 73.4 5.82 Widam Food Co QSC 53.4-13.3% 72.0 49.1 15.9 3.99 7.6 0.27 Gulf International Services QSC 60.0-13.0% 131.0 53.6 7.1 3.06 158.7 3.01 Top 5 Volume Volume (mn) Ezdan Holding Group QSC 19.0 8.2% 21.8 13.1 32.7 1.69 26.4 13.47 Commercial Bank QSC 57.4 5.9% 69.8 53.5 10.0 1.13 16.1 5.01 Vodafone Qatar QSC 14.2-10.0% 22.5 12.0 NA 2.17 15.7 3.25 Masraf Al Rayan QSC 43.6-3.1% 57.4 37.2 15.5 3.07 14.9 8.90 Barwa Real Estate Co QSC 44.0-12.0% 54.4 35.3 2.8 1.09 12.7 4.67 Top 5 Commercial Bank QSC 57.4 5.9% 69.8 53.5 10.0 1.13 250.2 5.01 Masraf Al Rayan QSC 43.6-3.1% 57.4 37.2 15.5 3.07 175.2 8.90 Gulf International Services QSC 60.0-13.0% 131.0 53.6 7.1 3.06 158.7 3.01 Qatar National Bank SAQ 179.0-1.9% 237.0 159.9 11.6 2.29 157.8 34.98 Barwa Real Estate Co QSC 44.0-12.0% 54.4 35.3 2.8 1.09 157.3 4.67 Source: Gulfbase, Reuters, & Global Research 14
Market capitalization The total market capitalization of companies listed on QSE declined 2.9% to USD167.3bn in August from USD172.4bn in July. The market capitalization of the top 10 listed companies fell 1.3%. Top 10 Listed Companies by Market Capitalization (QARbn) Aug-15 Jul-15 Aug-14 % YoY% Qatar National Bank SAQ 125.2 127.7 135.4-1.9% -7.5% Industries Qatar QSC 80.4 81.9 114.9-1.7% -30.0% Ezdan Holding Group QSC 50.4 46.6 49.7 8.2% 1.4% Masraf Al Rayan QSC 32.7 33.7 41.5-3.0% NA Mesaieed Petrochemical Holding Co QSC 27.1 29.5 42.1-8.4% -35.7% Qatar Islamic Bank SAQ 26.7 25.9 27.5 3.2% -2.8% Qatar Electricity and Water Co QSC 24.1 24.3 20.5-0.9% 17.7% Ooredoo QSC 22.3 25.8 39.2-13.8% -43.3% Commercial Bank QSC 18.7 17.7 20.5 5.9% -8.4% Qatar Insurance Co SAQ 18.1 18.1 16.1-0.3% 12.7% Total Market Capitalization (Top 10 stocks) 425.7 431.2 507.2-1.3% -16.1% Source: Reuters, Zawya, & Global Research 15
2-Aug 4-Aug 6-Aug 10-Aug 12-Aug 16-Aug 18-Aug 20-Aug 24-Aug 26-Aug 30-Aug in mn Global Research GCC Saudi Arabia TASI plunges 17.3% in August on falling oil prices In August, Saudi Arabia s Tadawul All-Share Index (TASI) declined sharply by 17.3%, its largest monthly decrease since October 2008, due to falling oil prices. All sectoral indices suffered heavy losses due to the ongoing selling pressure. On YTD basis, the TASI fell 9.7%. During the start of the month, the index was volatile and range bound. However, the bourse dropped nearly 7% on August 24 on heavy selling due to falling oil prices and Fitch Ratings decision to cut its outlook for Saudi Arabia s debt. Fitch Ratings downgraded its outlook for Saudi Arabia to negative from stable due to declining oil prices and increased spending on infrastructure projects. Although the ratings agency affirmed its AA rating for the Kingdom, it expects KSA s general government deficit to widen to 14.4% of GDP in 2015. According to PwC s Capital Markets and Accounting Advisory Services report, Saudi Arabia accounted for 75% of the total number of IPOs in GCC and 87% (USD1.0bn) of total capital raised in 2Q15. TASI: Index, Volume, and Sectoral Performance 9,300 8,800 8,300 7,800 7,300 6,800 700 TASI -17.3% 600 Energy & Utilities -10.0% 500 Banks & FS -14.1% Agriculture & Food -14.4% 400 Cement -15.9% Retail -16.6% 300 Telecommunication & IT -18.6% 200 Petrochemical -18.8% Real Estate Dev -19.6% 100 Multi-Investment -20.4% Insurance -23.9% 0 Industrial Investment -24.0% Hotel & Tourism -24.4% Transport -25.5% Building & Construction -26.3% Volume (RHS) Index (LHS) Media and Publishing -34.0% -40% -30% -20% -10% 0% Source: TASI, Gulfbase, & Global Research Sectoral performance In August, all sectors ended in the red. Media & Publishing (-34.0%) was the worst performer, followed by Building & Construction (-26.3%), Transport (-25.5%), Hotel & Tourism (-24.4%), Industrial Investment (-24.0%), Insurance (-23.9%), Multi-investment (-20.4%), Real Estate Development (- 19.6%), Petrochemical Industries (-18.8%), Telecommunication & IT (-18.6%), Retail (-16.6%), Cement (-15.9%), Agriculture & Food (-14.4%), Banks & Financial Services (-14.1%), and Energy & Utilities (-10.0%). The fall in the Petrochemicals sector was largely ascribed to decline in Saudi Basic Industries (-16.5%), Saudi Kayan Petrochemical (-20.8%), Advanced Petrochemicals Co. (-13.9%), and Rabigh Refining & Petrochemical Co. (-28.7%). All stocks in this sector incurred heavy losses in August. The heavyweight Banking sector was primarily dragged down by losses in Alinma Bank (-16.4%), Al Rajhi Bank (-17.8%), National Commercial Bank (-15.1%), and Bank Al Jazira (-19.5%). The decline in the Real Estate Development sector was due to fall in Dar Alarkan Real Estate Development Co. (- 26.7%), Emaar The Economic City (-19.3%), and Jabal Omar Development Co. (-18.4%). Trading grows in August Trading on the TASI rose in August. The volume of shares traded gained 138.3% to 4.2bn in August from 1.8bn in July. The value traded on the TASI improved 68.5% to USD23.6bn. 16
TASI Index Trading Statistics Top 5* Top 5 Losers Takween Advanced Industries 35.3-54.2% 88.3 32.1 39.7 2.57 593.0 0.33 National Agriculture Marketing 38.7-49.8% 108.5 34.9 7.0 4.70 234.6 0.09 Tihama Advertising Public Relations and Marketing 47.5-48.2% 131.3 42.8 NA 4.76 169.8 0.17 Trade Union Cooperative Ins 19.6-47.2% 47.0 18.4 27.1 2.05 185.4 0.13 Mediterranean and Gulf Cooperative Insurance and Reinsurance Co 24.7-42.8% 79.0 22.5 NA 2.36 446.3 0.64 Top 5 Volume Volume (mn) Dar Al Arkan Real Estate Dev 6.4-26.7% 15.8 6.2 16.2 0.39 1,561.3 1.83 Alinma Bank SJSC 18.8-16.4% 25.5 15.5 20.1 1.58 793.8 7.46 Saudi Kayan Petrochemical Co 8.6-20.8% 19.1 7.4 NA 0.94 624.8 3.40 Saudi Basic Industries Corp 80.8-16.5% 136.5 70.3 11.7 1.51 537.7 64.00 Etihad Etisalat Co SJSC 25.2-25.4% 94.5 21.7 NA 1.09 230.1 5.13 Top 5 Alinma Bank SJSC 18.8-16.4% 25.5 15.5 20.1 1.58 3,660.4 7.46 Saudi Basic Industries Corp 80.8-16.5% 136.5 70.3 11.7 1.51 3,344.2 64.00 Dar Al Arkan Real Estate Dev 6.4-26.7% 15.8 6.2 16.2 0.39 1,297.4 1.83 Saudi Arabian Mining Co SJSC 30.5-25.5% 48.4 23.2 22.4 1.40 1,064.4 9.32 Etihad Etisalat Co SJSC 25.2-25.4% 94.5 21.7 NA 1.09 1,061.8 5.13 Source: Gulfbase, Reuters, & Global Research *There were no gainers in August 17
Market capitalization In August, the market capitalization of companies listed on the TASI declined 19.8% to USD450.4bn from USD561.8bn in July. The market capitalization of the top 10 listed companies fell 14.4%. Top 10 Listed Companies by Market Capitalization (SARbn) Aug-15 Jul-15 Aug-14 % YoY% Saudi Basic Industries Corp SJSC 242.2 290.3 399.0-16.6% -39.3% Saudi Telecom Co SJSC 120.0 137.5 151.5-12.7% -20.8% National Commercial Bank SJSC 109.5 129.0 0.0-15.1% NA Al Rajhi Banking and Investment Corp SJSC 87.3 106.0 126.3-17.6% -30.9% Saudi Electricity Co SJSC 68.7 76.0 73.7-9.6% -6.8% Kingdom Holding Co 66.3 74.1 88.4-10.5% -25.0% Jabal Omar Development Co SJSC 56.2 69.2 48.8-18.8% 15.2% Almarai Co SJSC 50.1 56.3 46.9-11.0% 6.7% Samba Financial Group SJSC 46.7 53.4 61.2-12.6% -23.7% Saudi British Bank SJSC 44.7 50.0 63.8-10.6% -29.9% Total Market Capitalization (Top 10 stocks) 891.7 1,041.8 1,059.7-14.4% -15.8% Source: Reuters, Zawya, & Global Research 18
2-Aug 6-Aug 12-Aug 18-Aug 24-Aug 30-Aug in mn Global Research GCC UAE Abu Dhabi ADX falls 7.0% in August Abu Dhabi s ADX declined sharply 7.0% in August, with most sectors recording losses. The market remained bearish in the initial weeks due to weak global cues amid the Fed s impending interest rate hike and weak economic growth in China. During the end of the month, the bourse witnessed a sharp decline due to a steep fall in oil prices, erasing gains of most sectoral indices. On YTD basis, ADX dropped 0.8%. In August, the Securities and Commodities Authority (SCA) and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) signed a Memorandum of Understanding to exchange information and enhance mutual cooperation. Both SCA and ADGM would work on market supervision; investor protection; oversight of financial markets; and management of entities such as listed companies and brokerages; and others areas. ADX: Index, Volume, and Sectoral Performance 4,900 4,800 4,700 4,600 4,500 4,400 4,300 4,200 160 140 120 100 80 60 40 20 0 ADX Consumer Health Care Construction Services Industrial Banks Energy Investment & FS Telecommunication -7.0% -1.2% -4.8% -5.8% -6.4% -7.9% -9.2% 0.8% 0.0% 0.0% Insurance -10.2% Real Estate -14.2% Volume (RHS) Index (LHS) -20% -15% -10% -5% 0% 5% Source: Zawya, Gulfbase, & Global Research Sectoral performance In August, eight sectors ended in the red, two remained flat, and one closed marginally higher. Real Estate (- 14.2%) declined the most, followed by Insurance (-10.2%), Telecommunication (-9.2%), Investment & Financial Services (-7.9%), Energy (-6.4%), Banks (-5.8%), Industrial (-4.8%), and Services (- 1.2%). Healthcare and Construction were flat, while Consumer Staples gained 0.8%. The increase in the Consumer Staples sector was ascribed to a 1.4% rise in Emirates FoodStuff & Mineral Water Co., partially offset by 8.3% drop in International Fish Farming Co. The Real Estate sector was mainly dragged down by losses in Aldar Properties (-13.4%), Eshraq Real Estate (-20.3%), and RAK Properties (-15.2%). The fall in the Insurance sector was largely ascribed to decline in Methaq Takaful Insurance Co. (-25.4%), Abu Dhabi National Takaful Co. (-10.1%), and Abu Dhabi National Insurance Co. (-33.8%). The drop in the Telecommunication sector was due to losses in Emirates Telecommunication Corp. (-9.2%), Sudan Telecommunication (-14.3%), and Qatar Telecom (-7.9%). The Banking sector incurred losses primarily due to decline in First Gulf Bank (-7.4%), Abu Dhabi Commercial Bank (-3.4%), Union National Bank (-15.6%), and National Bank of Abu Dhabi (-2.8%). Trading reduces in August Trading on ADX fell in August. The volume of shares traded plunged 7.1% to 1.6bn from 1.7bn in July. The value traded dropped 34.4% to USD1.0bn. 19
ADX Trading Statistics Top 5 Top 5 Gainers Abu Dhabi Ship Building PJSC 3.5 35.7% 4.0 1.3 NA 1.88 1.2 0.19 Invest Bank PSC 3.0 15.0% 3.1 2.2 13.2 1.73 8.2 1.29 National Takaful Co PJSC 1.2 13.3% 1.2 0.6 NA 1.50 0.0 0.05 Union Insurance Co PSC 1.1 10.9% 1.2 1.0 28.4 1.06 0.1 0.10 National Corp for Tourism & Hotels 4.9 6.7% 6.2 4.4 16.4 4.00 0.0 0.65 Top 5 Losers Abu Dhabi National Insurance Co 3.5-33.8% 7.0 3.2 NA 0.77 0.2 0.32 Methaq Takaful Insurance Co PSC 0.9-25.4% 1.4 0.6 2.1 1.51 72.9 0.04 Abu Dhabi National for Building Materials Co PJSC 0.5-21.7% 1.2 0.5 NA 0.40 0.8 0.04 Abu Dhabi National Energy Co 0.5-20.6% 1.2 0.5 NA 0.64 3.1 0.89 Eshraq Properties Co PJSC 0.6-20.3% 1.4 0.6 NA 0.64 74.1 0.38 Top 5 Volume Volume (mn) Dana Gas PJSC 0.5-1.8% 0.7 0.4 18.9 1.39 798.0 1.00 Aldar Properties PJSC 2.3-13.4% 4.2 1.9 7.0 1.04 478.0 4.75 Eshraq Properties Co PJSC 0.6-20.3% 1.4 0.6 NA 0.64 385.5 0.38 Methaq Takaful Insurance Co PSC 0.9-25.4% 1.4 0.6 2.1 1.51 258.7 0.04 RAK Properties PJSC 0.6-15.2% 1.1 0.5 8.7 0.31 117.6 0.30 Top 5 Aldar Properties PJSC 2.3-13.4% 4.2 1.9 7.0 1.04 304.9 4.75 First Gulf Bank PJSC 14.4-7.4% 16.8 12.4 10.7 2.02 233.0 16.97 Abu Dhabi Commercial Bank PJSC 8.0-3.4% 9.0 5.1 8.9 1.62 183.0 11.82 Emirates Telecommunication Corp 12.9-9.2% 15.9 9.4 13.7 2.63 124.0 30.07 Dana Gas PJSC 0.5-1.8% 0.7 0.4 18.9 1.39 118.3 1.00 Source: Reuters, Gulfbase, & Global Research 20
Market capitalization In August, the market capitalization of companies listed on ADX fell 7.0% to USD114.4bn from USD123.0bn in July. The market capitalization of the top 10 listed companies declined 7.4%. Top 10 Listed Companies by Market Capitalization (AEDbn) Aug-15 Jul-15 Aug-14 % YoY% Emirates Telecommunication Corp Ltd 111.7 123.1 91.3-9.2% -0.9% First Gulf Bank PJSC 64.6 69.7 72.0-7.4% -10.3% National Bank of Abu Dhabi PJSC 54.2 55.7 66.8-2.8% -18.9% Abu Dhabi Commercial Bank PJSC 44.8 46.3 44.8-3.4% 0.0% Aldar Properties PJSC 18.3 21.2 31.5-13.4% -41.9% Union National Bank PJSC 16.4 19.4 18.6-15.6% -11.9% Abu Dhabi Islamic Bank PJSC 14.4 15.7 20.4-8.1% -29.2% National Bank of Ras Al Khaimah PSC 11.7 12.8 16.6-8.5% -29.3% United Arab Bank PJSC 7.7 7.6 7.3 1.8% 4.8% National Bank of Umm Al Qaiwain PSC 5.5 5.6 5.8-0.3% -4.4% Total Market Capitalization (Top 10 stocks) 349.4 377.1 375.1-7.4% -6.8% Source: Reuters & Global Research 21
2-Aug 6-Aug 12-Aug 18-Aug 24-Aug 30-Aug in mn Global Research GCC UAE Dubai DFM fell 11.6% in August The Dubai Financial Market (DFM) fell 11.6% in August 2015. On YTD basis, the DFM declined 3.0%. The index started the month on a weak note due to poor global cues. The DFM recorded huge losses toward the end of the month owing to a decline in crude prices. Weaker investor sentiments led to a huge selling pressure in the market, thereby leading to a fall in sectoral indices. According to Dubai Statistics Center (DSC), inflation in Dubai rose 0.45% in July 2015 owing to an increase in the prices of food and nonalcoholic consumer products. Prices of beverages rose 2.62%, while those of housing, water, electricity, gas, and other fuels increased 0.42%, and alcoholic beverages and tobacco rose 0.24%. Meanwhile, prices of miscellaneous goods and services declined 0.56%, while those of furnishings, household equipment, and routine maintenance fell 0.21%, followed by transport (0.08%), communications (0.04%), and health (0.01%). DFM: Index, Volume, and Sectoral Performance 4,300 700 4,200 4,100 4,000 3,900 3,800 3,700 3,600 3,500 3,400 3,300 600 500 400 300 200 100 0 DFM Telecommunication Banks Transportation Consumer Staples Insurance Real Estate & Const. Investment & FS Industrial -11.6% -8.7% -9.8% -11.0% -11.7% -13.5% -15.4% -15.8% -5.2% Volume (RHS) Index (LHS) Services -16.6% -20% -15% -10% -5% 0% Source: Zawya, Gulfbase, & Global Research Sectoral performance In August 2015, all sectors ended in the red. Services was the top loser (-16.6%), followed by Industrial (- 15.8%), Investment & Financial Services (-15.4%), Real Estate & Construction (-13.5%), Insurance (- 11.7%), Consumer Staples (-11.0%), Transportation (-9.8%), Banks (-8.7%), and Telecommunication (-5.2%). The decline in the heavyweight Real Estate & Construction sector was primarily due to a fall in Emaar Properties Co. (-14.6%), Arabtec (-17.2%), Union Properties (-16.8%), Drake & Scull International (- 25.1%), and Emaar Malls Group (-12.3%). The Banking sector, an index heavyweight, was due to the poor performance of Amlak Finance (-9.8%), followed by Dubai Islamic Bank (-6.7%), Gulf Finance House (-20.6%), and Emirates NBD (-15.8%). The Investment & Financial Services sector declined owing to losses in Dubai Investment Co. (-15.8%), Dubai Financial Market Co. (-10.9%), Islamic Arab Insurance Co. (-26.7%), and Gulf General Investment Co. (- 25.0%). Trading activity up in August In August 2015, trading on the DFM increased, with the volume traded rising 40.9% to 5.5bn. The value of shares traded increased 45.6% to USD2.7bn. 22
DFM Trading Statistics Top 5 Top Gainers Arabian Scandinavian Insurance Co 2.4 14.6% 2.4 2.4 7.6 1.21 0.0 0.10 Damac Properties Dubai Co PSC 3.4 10.7% 3.9 1.6 5.3 0.87 475.0 5.00 Top 5 Losers Shuaa Capital PSC 0.5-29.0% 1.3 0.4 42.0 0.42 3.9 0.13 Drake and Scull International PJSC 0.6-25.1% 1.4 0.5 18.7 0.46 102.6 0.36 Gulf General Investment Co PSC 0.8-25.0% 1.3 0.4 15.6 1.29 33.3 0.34 Deyaar Development PJSC 0.7-19.1% 1.4 0.6 12.2 0.88 68.3 1.02 Amanat Holdings PJSC 0.7-18.0% 1.0 0.6 NA NA 53.0 0.46 Top 5 Volume Volume (mn) Amlak Finance PJSC 2.1-9.8% 2.9 0.8 NA 1.94 708.9 0.81 Arabtec Holding PJSC 2.0-17.2% 4.7 1.6 NA 1.74 642.9 2.36 Union Properties PJSC 1.0-16.8% 2.2 0.8 17.0 0.75 624.4 0.97 Drake and Scull International PJSC 0.6-25.1% 1.4 0.5 18.7 0.46 543.0 0.36 Damac Properties Dubai Co PSC 3.4 10.7% 3.9 1.6 5.3 0.87 514.5 5.00 Top 5 Emaar Properties PJSC 6.8-14.6% 10.5 5.7 12.4 1.31 566.4 12.71 Damac Properties Dubai Co PSC 3.4 10.7% 3.9 1.6 5.3 0.87 475.0 5.00 Amlak Finance PJSC 2.1-9.8% 2.9 0.8 NA 1.94 404.0 0.81 Arabtec Holding PJSC 2.0-17.2% 4.7 1.6 NA 1.74 359.7 2.36 Dubai Islamic Bank PJSC 7.0-6.7% 8.5 4.9 6.6 1.64 256.8 7.38 Source: Reuters, Gulfbase, & Global Research 23
Market capitalization In August 2015, the market capitalization of companies listed on the DFM fell 10.3% to USD89.6bn. The market capitalization of the top 10 listed companies fell 10.0%. Top 10 Listed Companies by Market Capitalization (AEDbn) Aug-15 Jul-15 Aug-14 % YoY% Emirates NBD Bank PJSC 48.9 58.1 53.8-15.8% -9.1% Emaar Properties PJSC 48.3 56.6 79.8-14.6% -39.5% Emaar Malls Group PJSC 37.1 42.3 0.0-12.3% NA Dubai Islamic Bank PJSC 27.7 29.7 31.2-6.7% -11.4% Emirates Integrated Telecommunications Co PJSC 23.3 24.6 26.8-5.2% -13.1% Mashreqbank PSC 19.9 21.3 22.8-6.7% -12.9% Damac Properties Dubai Co PSC 18.9 17.1 0.0 10.6% NA Commercial Bank of Dubai PSC 17.9 18.5 13.9-3.5% 28.6% Dubai Financial Market PJSC 13.8 15.4 27.7-10.9% -50.3% Dubai Investments PJSC 9.9 11.8 14.5-15.8% -31.7% Total Market Capitalization (Top 10 stocks) 265.6 295.3 270.6-10.0% -1.9% Source: Reuters & Global Research 24
Appendix 1: MENA and Global market performance in August 2015 Indices Up/Down () (YTD) (x) (x) Div Yield (%) KSE Weighted Index 385-8.0% -12.2% 14.4 1.0 4.1 KSE Price Index 5,821-6.9% -10.9% 15.0 1.0 4.5 Tadawul All Share Index 7,522-17.3% -9.7% 15.6 1.7 3.7 DFM Index 3,663-11.6% -3.0% 11.6 1.1 7.3 ADX Index 4,494-7.0% -0.8% 11.7 1.3 5.2 Bahrain All Share 1,299-2.4% -8.9% 8.2 0.8 5.3 QE Index 11,564-1.9% -5.9% 11.6 1.7 4.5 MSM30 Index 5,872-10.5% -7.4% 10.5 1.4 4.5 Levant & North Africa Markets Up/Down () (YTD) (x) (x) Div Yield (%) Egypt - EGX30 7,252-11.5% -18.8% 17.0 1.2 1.9 Egypt-- EGX70 392-14.5% -30.6% 8.4 0.8 4.4 Jordan-- Amman Fr Flt Index 2,098-1.3% -3.1% 17.1 1.2 3.3 Palestine - AlQuds Index 482-0.1% -4.2% NA NA NA Lebanon - BLOM Stk Index 1,150-2.4% -1.8% 7.2 0.8 5.6 Morocco - CASA All Share index 9,346-4.0% -2.9% 19.9 1.9 4.7 Tunisia - Tunisia Main Index 5,488-2.6% 7.8% 29.3 2.6 2.0 International Indices Up/Down () (YTD) (x) (x) Div Yield (%) DJ Average 16,528-6.6% -7.3% 14.0 2.8 2.7 NASDAQ Composite 4,777-6.9% 0.9% 26.4 3.3 1.3 S&P500 Comp. 1,972-6.3% -4.2% 16.9 2.6 2.2 FTSE 100 - UK 6,248-6.7% -4.8% 22.0 1.7 4.3 Extra DAX 10,259-9.3% 4.6% 15.9 1.6 3.0 CAC 40 - France 4,653-8.5% 8.9% 20.2 1.4 3.4 International Indices Up/Down () (YTD) (x) (x) Div Yield (%) Bovespa Index 46,626-8.3% -6.8% 28.2 1.1 4.3 RTS Index 834-2.9% 5.4% 7.2 0.6 4.8 Bombay BSE Sensex -India 26,283-6.5% -4.4% 20.2 2.7 1.5 SSE Composite Index - Shanghai 3,206-12.5% -0.9% 15.7 1.9 2.0 Nikkei 225 Index- Japan 18,890-8.2% 8.3% 18.9 1.6 1.6 Hang Seng - Hong Kong 21,671-12.0% -8.2% 9.1 1.1 4.0 Source: Bloomberg and Global Research 25
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