Address: Dubai World Trade Center, Suite 600, P.O. Box 9436, Dubai, UAE, T: (+971 4) 332 4140, F: (+971 4) 332 4240, E: info@daman.ae 1

Daman Morning Call

6 March 2017

GCC MarketWatch UAE Indices

UAE Market Commentary

UAE equity markets closed lower yesterday, weighed down by losses in banking sector stocks.

Lenders, National Bank of Abu Dhabi, Dubai Islamic Bank and Ajman Bank eased 2.3%, 2.2% and 2.1%, respectively. Peers, National Bank of Ras Al-

Khaimah, Sharjah Islamic Bank and Union National Bank dropped 2.0%, 1.9% and 1.2%, respectively.

Emirates Telecommunications Group Co. lost 0.9%. Meanwhile, the firm announced its plans to invest more than AED3.0 billion in 2017 to develop

infrastructure and expand mobile and fibre optic networks across UAE.

Emaar Properties fell 0.9%. The company stated that John Carfi has been appointed as a new Chief Executive Officer to head development.

Meanwhile, Bank of Sharjah mentioned the issuance of a total $500.0 million senior unsecured fixed rate notes for a five-year maturity at mid

swaps plus 225 basis points, to yield 4.23%.

The Abu Dhabi Securities Exchange (ADX) general index ended 0.7% lower at 4,565.15, while the Dubai Financial Market index closed 1.1% lower at

3,543.33.

Company Events This Week

Dubai Date Company Event

3/5/2017 - -

3/6/2017 - -

3/7/2017 - -

3/8/2017 - -

3/9/2017 - -

Abu Dhabi

Upcoming UAE Economic Events This Week

Release Date Event Month Survey Actual Prior Revised Relevance

5-Mar-17 Emirates NBD UAE PMI Feb - 56.00 55.30 - Low

9-Mar-17 Dubai Economy Tracker SA Feb - - 57.10 - Low

Last

Close

1D

Chg

1D %

Chg

YTD%

Chg

1M %

Chg

1Y %

Chg

P/E

Multiple (x) Abu Dhabi

Securities

Market General

4565.15 -31.24 -0.68% 0.41% 0.96% 0.19% 12.81

UAE DFM Index 3543.33 -40.33 -1.13% 0.35% -4.01% 5.96% 15.12

Bloomberg GCC

200 Index 65.45 -0.19 -0.29% 0.35% 0.08% 7.51% 15.51

Bahrain BSE

index 1342.57 1.03 0.08% 10.01% 3.20% 14.25% 8.65

Kuwait KSE Index 6804.56 37.52 0.55% 18.38% 1.53% 28.86% 22.77

Saudi Arabia

TASI 6967.97 -48.69 -0.69% -3.36% -1.34% 8.94% 17.22

Oman MSM30

Index 5807.81 -7.25 -0.12% 0.43% -0.12% 7.42% 10.96

Qatar DSM Index 10721.15 - 0.00 0.00% 2.72% 1.05% 5.77% 15.70

4,424

4,488

4,552

4,616

4,680

3,526

3,580

3,635

3,690

3,745

1-Fe

b

5-Fe

b

7-Fe

b

9-Fe

b

13-F

eb

15-F

eb

19-F

eb

21-F

eb

23-F

eb

27-F

eb

1-M

ar

5-M

ar

UAE DFM Index (LHS) ADSMI (RHS)

Date Company Event

3/5/2017 - -

3/6/2017 - -

3/7/2017 - -

3/8/2017 - -

3/9/2017 - -

www.damansecurities.com 2

The stock traded in the red in the last session and finished at

AED1.73, after touching a low at AED1.72.

As of now, the weekly MACD and stochastic are trading with

a positive bias while the RSI indicator is directing south,

reflecting at a neutral technical outlook. However, a signal

line crossover by the daily MACD from above along with the

RSI and stochastic indicators pointing downwards indicates

negativity in the coming session.

The 20day SMA (currently trading at AED1.69) is acting as an

immediate support, followed by the AED1.66 and AED1.64

levels. A breach below the latter might lead to further

bearish momentum in the stock.

On the flipside, intraday resistance is placed at the AED1.76

level, followed by the AED1.78 and AED1.80 levels. A break

above the latter might trigger bullishness in the stock.

Following two straight bullish sessions, the stock posted

marginal losses in the prior session and closed at AED10.45.

Although the weekly MACD is trading flat above its

centreline, the RSI and stochastic oscillators are showing loss

of upward potential, hinting at weakness in the coming

week. On the daily chart, the MACD is attempting a signal

line crossover from above coupled with the RSI and

stochastic oscillators moving lower, further endorsing the

above stance.

Important support is situated at the 20day SMA (currently

placed at AED10.34), followed by the AED10.30 and

AED10.20 levels. A move back below the latter might trigger

further negative momentum in the stock.

On the bright side, crucial resistance is placed at the

AED10.50 level, followed by the AED10.55 and the AED10.65

levels. A surge above the latter might lead to positivity in the

stock.

After forming a bearish harami candlestick pattern on the

daily chart on 02 March, the stock declined for the second

straight session yesterday and ended at AED1.38.

A possible signal line crossover by the daily MACD from

above coupled with the RSI and stochastic indicators heading

south, reflects at a bearish technical picture. Moreover, the

weekly momentum oscillators are tranquil at a lower level

below their midlines, further supporting the above view.

Key support is positioned at the AED1.35 level, followed by

the AED1.33 and the daily lower Bollinger band (currently

placed at AED1.32) levels. A breach below the latter might

lead to further acceleration to the downside.

On the contrary, key resistance is placed at the 20day SMA

(currently placed at AED1.41), followed by the 100day SMA

(currently placed at AED1.42) and 50day SMA (currently

placed at AED1.45).

Technical Picks

Ajman Bank

National Bank of Abu Dhabi

SHUAA Capital

0

50

100

42.1

Relative Strength Index (RSI)(14)

0

50

100

Aug-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17

%K(9) %D(5)

0

50

100

51.9

Relative Strength Index (RSI)(14)

0

50

100

Aug-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17

%K(9) %D(5)

0

50

100

55.8

Relative Strength Index (RSI)(14)

0

50

100

Aug-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17

%K(9) %D(5)

1.264

1.368

1.473

1.577

1.681

1.785SMAVG (20) on Close SMAVG (100) on Close 1.400O: 1.430H: 1.380L: 1.380C:

1.380

8.134

8.731

9.328

9.924

10.521

11.118SMAVG (20) on Close SMAVG (100) on Close 10.500O: 10.500H: 10.450L: 10.450C:

10.450

0.622

0.887

1.153

1.418

1.683

1.948SMAVG (20) on Close SMAVG (100) on Close 1.750O: 1.760H: 1.720L: 1.730C:

1.730

www.damansecurities.com 3

Following the formation of a bearish engulfing candlestick

pattern on the daily chart for the week ended 09 February,

the stock continued to fall and ended the prior session at

AED0.477, after making a low at AED0.475.

On the weekly chart, the MACD is pointing south along with

the RSI and stochastic trading flat below their 50lines,

reflects a weak technical outlook. On the daily chart, the

momentum oscillators are trading with a bearish tone,

further affirming the above stance.

Crucial support resides at the AED0.469 level, followed by

the AED0.465 and AED0.460 levels. A breach below the latter

might lead to further downside momentum in the stock.

Meanwhile, key near-term resistance is placed at the

AED0.483 level, followed by the AED0.488 and AED0.494

levels. A sustained break above the latter might trigger

strength in the stock.

The stock traded with a bearish tone for the second

successive session yesterday to close at AED1.12, following a

low at AED1.11.

As clearly visible on the daily chart, the momentum

oscillators are trading with a downside bias, hinting at the

presence of weak momentum in the coming session. On the

weekly chart as well, the RSI and stochastic oscillators are

heading south, further confirming the above stance.

Key support is located at the AED1.11 level, followed by the

AED1.10 and the daily lower Bollinger band (currently

trading at AED1.08) levels. A breach below the latter might

lead to increased selling pressure on the stock.

Conversely, key intraday resistance resides at the AED1.13

level, followed by the AED1.14 and the 20day SMA (currently

trading at AED1.15) levels. A break above the latter might

turn the trend to bullish.

The stock recorded marginal losses in the previous session

and settled at AED0.555, after making a low at AED0.550.

With the weekly MACD attempting a signal line crossover

from above and the RSI & stochastic sharply grinding lower,

the near-term technical scenario appears to be bearish. On

the daily chart, the momentum oscillators are trading below

their centrelines, further validating the above view.

Intraday support is aligned at the AED0.550 level, followed

by the daily lower Bollinger band (currently trading at

AED0.540). A move back below the latter might trigger

further bearishness in the stock, targeting the next supports

at the 100day SMA (currently trading at AED0.530) and

AED0.525 levels.

On the contrary, important resistance is placed at the

AED0.559 level, followed by the AED0.569 and the 20day

SMA (currently placed at AED0.580) levels.

Technical Picks

Islamic Arab Insurance Company

Amanat Holdings

Drake & Scull International

0

50

100

42.3

Relative Strength Index (RSI)(14)

0

50

100

Aug-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17

%K(9) %D(5)

0

50

100

49.2

Relative Strength Index (RSI)(14)

0

50

100

Aug-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17

%K(9) %D(5)

0

50

100

41.2

Relative Strength Index (RSI)(14)

0

50

100

Aug-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17

%K(9) %D(5)

0.397

0.456

0.516

0.575

0.634

0.694SMAVG (20) on Close SMAVG (100) on Close 0.559O: 0.559H: 0.550L: 0.555C:

0.555

0.802

0.891

0.979

1.068

1.156

1.244SMAVG (20) on Close SMAVG (100) on Close 1.130O: 1.130H: 1.110L: 1.120C:

1.120

0.422

0.455

0.487

0.520

0.552

0.584SMAVG (20) on Close SMAVG (100) on Close 0.480O: 0.483H: 0.475L: 0.477C:

0.477

www.damansecurities.com 4

13 January 2016

Dubai Abu Dhabi

Top Gainers & Losers Top Gainers & Losers

Sector Performance Sector Performance

Market Overview Market Overview

5-Mar-17 2-Mar-17 Change % Change

Index (Last) 3543.3 3583.7 -40.3 -1.1%

Volume (000's) 207518.0 360050.0 -152532.0 -42.4%

Deals 3317.0 5256.0 -1939.0 -36.9%

Value (mill) 310.3 643.0 -332.7 -51.7%

Company Traded 35.0 35.0 0.0 0.0%

Gainers 5.0 18.0 -13.0 -72.2%

Laggards 26.0 13.0 13.0 100.0%

No Change 4.0 4.0 0.0 0.0%

5-Mar-17 2-Mar-17 Change % Change

Index (Last) 4565.2 4596.4 -31.2 -0.7%

Volume (000's) 80735.0 115870.0 -35135.0 -30.3%

Deals 1087.0 1955.0 -868.0 -44.4%

Value (mill) 157.1 239.1 -82.0 -34.3%

Company Traded 32.0 34.0 -2.0 -5.9%

Gainers 8.0 16.0 -8.0 -50.0%

Laggards 17.0 5.0 12.0 240.0%

No Change 7.0 13.0 -6.0 -46.2%

52 Week High

3738.7

52 Week Low

3195.5

52 Week High

4715.1

52 Week Low

4174.7

Top Volume

Company

Air Arabia PJSC 20,601,675

Arabtec Holding PJSC 17,832,237

Deyaar Development PJSC

14,558,773

Union Properties PJSC 10,998,769

Dubai Financial Market PJSC

10,477,670

Volume Gainers

Company

Takaful Emarat Insurance PSC

7592%

Aramex PJSC 574%

Dar Al Takaful PJSC 142%

Emirates Integrated Telecommunications Co PJSC

88%

Dubai Islamic Insurance & Reinsurance Co

71%

Top Volume

Company

Eshraq Properties Co PJSC 44,188,401

Invest bank PSC 9,637,002

Aldar Properties PJSC 7,345,474

RAK Properties PJSC 5,154,933

Dana Gas PJSC 2,279,393

Volume Gainers

Company

Invest bank PSC 672%

Bank of Sharjah 469%

Abu Dhabi National Co for Building Materials

434%

Agthia Group PJSC 331%

Ras Al Khaimah Ceramics 276%

Market Roundup

0.4%

1.3%

1.3%

-2.2%

-2.4%

-2.4%

-2.9%

-3.3%

-4% -2% 0% 2% 4%

Dubai Islamic Bank PJSC

Air Arabia PJSC

Arabtec Holding PJSC

Dubai Financial Market PJSC

Deyaar Development PJSC

Arabian Scandinavian Insurance Co PLC

Aramex PJSC

Takaful Emarat Insurance PSC

1.9%

2.3%

8.7%

10.2%

15.0%

-2.3%

-2.5%

-2.6%

-8.0%

-9.2%

-16% -8% 0% 8% 16%

National Bank of Abu Dhabi PJSC

Aldar Properties PJSC

RAK Properties PJSC

Abu Dhabi Ship Building Co PJSC

Abu Dhabi National Co for Building Materials

Sharjah Cement & Industrial Development Co

Al Khazna Insurance Co PSC

Invest bank PSC

Al Buhairah National Insurance Co

Ras Al Khaimah Poultry and Feeding Co

-1.3%

0.0%

-1.3%

-0.3%

-2.0%

-0.4%

0.0%

-1.2%

-1.2%

Banks

Industrials

Services

Insurance

Consumer Staples

Transportation

Telecommunication

Investment & Financial Services

Real Estate & Construction

-0.5%

-2.0%

0.5%

-1.1%

0.0%

-0.7%

-0.9%

-0.9%

0.0%

Banks

Real Estate

Insurance

Consumer Staples

Services

Industrial

Telecommunication

Investment & Financial Services

Energy

www.damansecurities.com 5

Foreign Activity

Value of Stocks Bought Value of Stocks Sold

Company Name Allow Foreign

Ownership

Allowed For

Foreigners

Current

Foreigner Share

NBAD OneShare MSCI UAE ETF Yes 100.00% 40.12%

Al Buhaira Insurance Yes 25.00% 10.82%

AD Aviation No 0.00% 0.00%

AD Commercial Bank Yes 49.00% 14.41%

Emirate of Abu Dhabi No 0.00% 0.00%

AD Islamic Bank No 0.00% 0.00%

ADIB Right Issue Shares 2015 No 0.00% 0.00%

AD National Hotels Yes 25.00% 1.16%

AD National Insurance Yes 25.00% 0.18%

AD Ship Building Yes 25.00% 0.68%

Fujairah National Insurance No 0.00% 0.00%

AGTHIA GROUP PJSC Yes 25.00% 13.59%

Al Khazna Insurance Yes 25.00% 3.15%

Al Ain Al Ahlia Insurance No 0.00% 0.00%

ALDAR Properties Yes 40.00% 23.78%

Arkan Building Materials No 0.00% 2.29%

International Fish Farming Yes 49.00% 9.86%

Al Wathba Insurance No 0.00% 1.17%

Green Crescent Insurance Yes 25.00% 24.05%

AD for Building & M Yes 25.00% 4.36%

Bank of Sharjah Yes 30.00% 21.21%

Commercial Bank International Yes 49.00% 48.90%

Dana Gas Yes 49.00% 59.12%

Al Dhafra Insurance No 0.00% 0.00%

Emirates Driving No 0.00% 0.00%

Emirates Insurance Yes 0.00% 0.24%

Eshraq properties Co. Yes 49.00% 26.73%

Yes 20.00% 6.03% Etisalat

Fujairah Building Industries No 0.00% 0.00%

Fujairah Cement Yes 0.00% 7.31%

First Gulf Bank Yes 25.00% 16.28%

Finance House Yes 20.00% 11.34%

Foodco Holding No - 0.78%

Gulf Cement Yes 49.00% 17.89%

Gulf Medical Projects Yes 49.00% 7.89%

Insurance House P.S.C Yes 25.00% 0.37%

Company Name Allow Foreign

Ownership

Allowed For

Foreigners

Current

Foreigner Share

Invest Bank Yes 20.00% 0.93%

Gulf Pharmaceutical Yes 49.00% 33.58%

Gulf Livestock Company Yes 49.00% 67.12%

MANZEL Real Estate Yes - 20.95%

Methaq Takaful Insurance Yes 25.00% 20.66%

National Bank of AD Yes 25.00% 5.51%

NBAD Convertible Notes Yes 100.00% 0.00%

National Bank of Fujairah No 0.00% 0.00%

National Bank of Um Al-Qaiwain No 0.00% 0.00%

National for Tourism & Hotels No 0.00% 0.00%

National Marine Dredging Yes 5.00% 1.27%

Oman & Emirates Holding Yes 0.00% 0.02%

Ooredoo Yes 100.00% 87.57%

Umm Al-Qaiwain Cement Yes 49.00% 7.46%

National Bank of RAK Yes 40.00% 17.78%

RAK Cement Yes 49.00% 28.46%

RAK Ceramic Yes 49.00% 52.26%

RAK National Insurance Yes 25.00% 0.00%

RAK Properties Yes 49.00% 32.92%

RAK White Cement Yes 49.00% 18.63%

RAK Poultry & Feeding Yes 14.00% 15.91%

Sharjah Cement Yes 15.00% 1.34%

Sharjah Group Company Yes 49.00% 20.91%

Sharjah Islamic Bank Yes 0.00% 20.21%

Sharjah Insurance Yes 0.00% 0.00%

Sudatel Yes 100.00% 79.64%

AD National Energy No 0.00% 0.00%

No 0.00% 0.00% AD National Takaful

The National Investor company No 0.00% 0.00%

United Arab Bank Yes 49.00% 47.20%

Union Cement Yes 49.00% 2.97%

United Insurance Yes 25.00% 0.00%

Union National Bank Yes 40.00% 13.04%

Union Insurance Yes 25.00% 0.31%

Waha Capital PJSC Yes 49.00% 9.87%

National Takaful Company Yes 25.00% 11.77%

Abu Dhabi Foreign Ownership Limit

Dubai Foreign/Domestic Market Activity

89

193

298

402

26-F

eb-1

7

27-F

eb-1

7

28-F

eb-1

7

01-M

ar-1

7

02-M

ar-1

7

05-M

ar-1

7

In A

ED m

illi

on

s

Foreigners UAE Nationals

61

214

366

518

26-F

eb-1

7

27-F

eb-1

7

28-F

eb-1

7

01-M

ar-1

7

02-M

ar-1

7

05-M

ar-1

7

In A

ED m

illi

on

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Foreigners UAE Nationals

www.damansecurities.com 6

All opinions, news, analysis, prices or other information contained in this report are provided as general market commentary and does not constitute investment advice,

nor a solicitation or recommendation for you to buy or sell any over-the-counter product or other instrument.

Daman Securities, its employees and its independent third party provider make no representation as to the accuracy or completeness of this report. This report should

therefore not be relied on as accurate or complete. The facts and opinions on this report are subject to change without notice. Daman Securities, its employees and its

independent third party provider have no obligation to modify or update this report in the event that any information on this report becomes inaccurate.

Shares Risk Warning

The value of stocks and shares, and the income from them, can fall as well as rise and you may not get back the full amount you originally invested. Past performance is

not necessarily a guide to future performance.

Disclaimer