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Amr Hussein Elalfy, Global Head of Research at Mubasher Financial Services

MubasherTrade Research: MENA Favorite List (FL) – update

: Sunday, May 04 - 2014 @ 12:37

Mubasher’s MENA Favorite List (MENA FL) continues to beat main Arab indices: Since its inception on 25 November 2013, Mubasher’s MENA FL has generated a total return of +33.28% in 5 months, outperforming our benchmark (Dow Jones MENA Total Return) by +14.08%.

In April 2014, Mubasher’s MENA FL included 25 stocks, with its outstanding performance driven by four UAE stocks – most notably Arabtec (ARTC.DFM) which doubled in almost three months – and two Egypt stocks (TMG Holding (TMGH.EGX) and EFG Hermes Holding (HRHO.EGX)). Mubasher’s Financials and Real Estate picks were the top performers, reflecting the positive sentiment on both sectors.

The Saudi stock National Industrialization Company (Tasnee) (2060.TDWL) has been added to the list due its diversified business model operating a range of sectors from steel to chemicals and petrochemicals. In partnership with other industry players, Tasnee has a significant pipeline of new projects coming on line between 2014 and 2017.
Key Drivers

Marka’s IPO, MSCI inclusion new driving forces for UAE markets, alongside Expo 2020: April’s UAE equities rally [DFM: +14.02%, ADX: +4.15%] was prolonged by a positive outlook for the real estate and construction sectors on Dubai’s securing of Expo 2020. Meanwhile, Mubasher believes that Marka’s IPO (recently covered 36x), the first since the financial crisis, marks the start of a stream of IPOs and underlines the very positive investor appetite for UAE equities in general.

MSCI upgrade also a driving factor for Qatar equities: In Qatar [DSM: +9.20%], this month’s MSCI entrance stimulated equities in April, including our picks in MENA FL, namely: Ooredoo (ORDS.QE) [+6.77%], Commercial Bank of Qatar (CBQK.QE) [+6.73%], Qatar Electricity & Water (QEWS.QE) [+6.00%], and Doha Bank (DHBK.QE) [+5.03%].

Amr Hussein Elalfy, Global Head of Research at Mubasher Financial Services, commented: “Our rigorous bottom-up research model is generating significant returns for our MENA Favorite List and aligned investors. Going forward, as we increase our allocation to Saudi Arabia, we are rebalancing our MENA FL by readjusting all stocks on the list to equal weights. We start May 2014 with a total of 26 MENA stocks, eight (31%) in the UAE, seven (27%) in Saudi Arabia, six (23%) in Egypt, four (15%) in Qatar, and one (4%) in Jordan. We look forward to providing further MENA FL updates in due course.”

Shane Dolan/Vadia Rai @ FTI Consulting
T: +971 (0)4 4372110

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Sunday, May 4- 2014 @ 12:37 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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