Report
Jaap Meijer
EUR 57.00 For Business Accounts Only

MENA Core Portfolio Update - Churning our portfolio – selective opportunities


  1. We increase RAKBANK (RoE expansion to 13%+) and include DIB (best growth story in the UAE) but make room by removing FAB (FY 17e to be a transitional year).
  • Remain OW on the Saudi banking sector and double Al Rajhi’s weight to 5.0% (best play on NIMs and credit growth) while also adding Riyad Bank at 2.5% (deep value).
  • Include the laggards within the Egyptian banking space, namely ADIB-E, NBKE, and SAUD while halving our position in HDBK to 2.5% and removing CIEB (fully valued) and EFG.
  • Core Buys have returned 23.7% YtD (303% since inception) vs. 5.1% for the market, while our Core Sells have delivered 8.7% alpha YtD.


Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Jaap Meijer

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