JPM | FTM | Today’s Research | CEEMEA

Research evidence excerpt

JPM | FTM | Today’s Research | CEEMEA

CEEMEA Equity Research

CEEMEA First to Market 09 July 2026

Today’s Morning Meeting | Also Published Today | Key Changes | JPM Events | Upcoming Earnings

Today’s Morning Meeting

The flare up in the Strait and what it means (David Aserkoff, CFA/Inga Q Galeni)

More cautious on MSCI UAE with zero UAE stocks in the Top 10

The flare up in Hormuz – Iran firing on ships in the Gulf as well as military bases in Qatar and Bahrain; US firing on

Iran; US revoking its waiver of the sanctions on oil sales by Iran; and Trump declaring the ceasefire is over – has

added $7 to Brent crude in <24 hours and moved MENA equities on Wednesday with Yansab +3% and Aramco +2.6%

versus DFM -1.5% and Aldar -1.2%. We left Aramco in our CEEMEA Strategy Top 10 as a hedge when we moved into

reopening winners in our 15 June upgrade here. We did not add any stocks in UAE and wrote, “we worry in the UAE context

that the US-Iran agreement leaves longer-term security risks in the region and does not change the narrative around Feb ‘26

being the peak of Dubai’s real estate cycle.” This flare up in the last 36 hours justifies some of our caution. Investors

looking for further hedges to this flare up can look at Yansab, a petchem with Red Sea production, and South Africa’s Sasol, a

high-beta oil/petchem stock, both of which were in our top 10 during the conflict.

| | MENA Industrials (Anna Antonova, CFA)

Q2’26 Previews & Thoughts on the sector - u/g AD Ports to OW, d/g Asyad Shipping to UW

Against the backdrop of the “hostile ceasefire” and with US-Iran conflict escalation risks rising again this week, the feedback

from our recent conversations suggests continued risk sentiment overhang and generally limited investor appetite for the

MENA Industrials space.