10 July Technical Market Report


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10 July Technical Market Report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index rose 0.2% to close at 9,332.9. Gains were led by the Telecoms and Industrials indices, gaining 1.2% and 0.5% respectively. Top gainers were Qatar German Co. for Med. Dev. and Islamic Holding Group, rising 1.8% and 1.5% respectively. Among the top losers, Al Ahli Bank fell 4.4%, while Dlala Brok. & Inv. Holding Co. declined 1.3%. GCC Commentary Saudi Arabia: The TASI index declined marginally to close at 7,706.0. Losses were led by the Media & Publishing and Multi-Investment indices, declining 0.9% and 0.7% respectively. Astra Industrial Group fell 4.1%, while Gulf Union Cooperative Insurance Co. was down 3.8%. Dubai: The DFM index rose 1.0% to close at 2,367.8. The Telecommunication and Investment & Financial Services indices gained 1.6% each. Arab Insurance Group rose 6.2%, while Dubai Investment was up 2.0%. Abu Dhabi: The ADX benchmark index gained 0.6% to close at 3,702.2. The Consumer and Energy indices rose 1.7% each. Abu Dhabi Ship Building Co. gained 5.7%, while Methaq Takaful Insurance Co. was up 3.5%. Kuwait: The KSE index fell 0.7% to close at 7,870.3. Losses were led by the Real Estate and Banking indices, declining 1.4% and 1.3% respectively. Manafae Investment Co. fell 7.9%, while Al-Aman Investment Co. was down 7.3%. Oman: The MSM index declined marginally to close at 6,485.8. The Industrial index fell 0.3%, while the Services & Insurance index was down 0.1%. The Financial Corporation declined 5.3%, while ACWA Power Barka was down 1.9%. Qatar Exchange Top Gainers Close* 1D% Vol. „000 YTD% Qatar German Co. for Med. Dev. 16.08 1.8 0.0 8.8 Islamic Holding Group 43.25 1.5 42.1 13.8 Ooredoo 124.50 1.3 36.1 19.7 Industries Qatar 158.80 1.0 139.6 12.6 Gulf Warehousing Co. 41.90 0.8 0.2 25.1 Qatar Exchange Top Vol. Trades Close* 1D% Vol. „000 YTD% Qatar Gas Transport Co. 18.39 (0.6) 396.9 20.5 Vodafone Qatar 8.97 0.2 266.5 7.4 Masraf Al Rayan 27.60 0.0 265.5 11.3 Dlala Brok. & Inv. Holding Co. 27.10 (1.3) 243.0 (12.8) QNB Group 159.50 0.3 189.4 21.8 Market Indicators 10 July 13 09 July 13 %Chg. Value Traded (QR mn) 111.7 156.6 (28.7) Exch. Market Cap. (QR mn) 512,531.4 510,811.9 0.3 Volume (mn) 2.2 3.7 (40.3) Number of Transactions 1,672 2,587 (35.4) Companies Traded 34 38 (10.5) Market Breadth 20:11 19:12 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 13,334.56 0.2 (0.4) 17.9 N/A All Share Index 2,361.04 0.3 (0.4) 17.2 12.7 Banks 2,254.83 0.1 (1.0) 15.7 11.9 Industrials 3,098.93 0.5 (0.5) 18.0 11.5 Transportation 1,672.88 (0.2) (1.6) 24.8 11.8 Real Estate 1,833.98 0.1 0.6 13.8 11.7 Insurance 2,226.28 0.0 0.6 13.4 15.6 Telecoms 1,304.44 1.2 2.4 22.5 14.9 Consumer 5,526.95 0.2 0.3 18.3 22.6 Al Rayan Islamic Index 2,798.80 0.2 (0.0) 12.5 13.9 GCC Top Gainers## Exchange Close# 1D% Vol. „000 YTD% IFA Hotels & Resorts Kuwait 0.52 6.1 2.0 18.2 Dana Gas Abu Dhabi 0.59 3.5 12,023.6 31.1 Sharjah Islamic Bank Abu Dhabi 1.49 3.5 100.0 62.0 Al Tayyar Travel Group Saudi Arabia 72.00 3.2 1,204.9 70.7 Agility Kuwait 0.69 3.0 1,056.2 42.1 GCC Top Losers## Exchange Close# 1D% Vol. „000 YTD% Comm. Bank of Kuwait Kuwait 0.69 (6.8) 1.3 (2.8) Al Ahli Bank Qatar 52.60 (4.4) 36.6 7.3 Astra Industrial Group Saudi Arabia 46.30 (4.1) 839.9 18.7 Comm. Facilities Co. Kuwait 0.30 (3.2) 0.5 (13.0) SADAFCO Saudi Arabia 86.50 (2.5) 112.2 33.6 Source: Bloomberg ( # in Local Currency) ( ## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity) Qatar Exchange Top Losers Close* 1D% Vol. „000 YTD% Al Ahli Bank 52.60 (4.4) 36.6 7.3 Dlala Brok. & Inv. Holding Co. 27.10 (1.3) 243.0 (12.8) Gulf International Services 41.55 (0.6) 16.0 38.5 Qatar Gas Transport Co. 18.39 (0.6) 396.9 20.5 Qatar National Cement Co. 100.00 (0.5) 2.2 (6.5) Qatar Exchange Top Val. Trades Close* 1D% Val. „000 YTD% QNB Group 159.50 0.3 30,289.6 21.8 Industries Qatar 158.80 1.0 22,162.3 12.6 Masraf Al Rayan 27.60 0.0 7,309.2 11.3 Qatar Gas Transport Co. 18.39 (0.6) 7,306.5 20.5 Dlala Brok. & Inv. Holding Co. 27.10 (1.3) 6,711.2 (12.8) Source: Bloomberg (* in QR) Regional Indices Close 1D% WTD% MTD% YTD% Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 9,332.89 0.2 (0.4) 0.6 11.7 30.68 140,741.1 11.7 1.7 4.9 Dubai 2,367.77 1.0 4.6 6.5 45.9 60.83 60,631.7 15.2 1.0 3.4 Abu Dhabi 3,702.18 0.6 3.9 4.3 40.7 147.70 105,783.6 11.1 1.3 4.7 Saudi Arabia 7,706.01 (0.0) 0.5 2.8 13.3 802.19 409,973.1 16.3 2.0 3.6 Kuwait 7,870.32 (0.7) (1.2) 1.3 32.6 76.92 107,183.6 22.1 1.2 3.6 Oman 6,485.83 (0.0) 0.7 2.3 12.6 16.65 22,601.7 10.7 1.6 4.2 Bahrain 1,190.30 0.0 (0.1) 0.2 11.7 0.22 21,233.9 8.7 0.8 4.1 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 9,300 9,310 9,320 9,330 9,340 9,350 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 6 Qatar Market Commentary  The QE index rose 0.2% to close at 9,332.9. The Telecoms and Industrials indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.  Qatar German Co. for Med. Dev. and Islamic Holding Group were the top gainers, rising 1.8% and 1.5% respectively. Among the top losers, Al Ahli Bank fell 4.4%, while Dlala Brok. & Inv. Holding Co. declined 1.3%.  Volume of shares traded on Wednesday declined by 40.3% to 2.2mn from 3.7mn on Tuesday. Further, as compared to the 30- day moving average of 10.0mn, volume for the day was 77.9% lower. Qatar Gas Transport Co. and Vodafone Qatar were the most active stocks, contributing 17.9% and 12.0% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Ratings, Earnings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Arab National Bank (ANB) CI Saudi Arabia FSR/ LT FCR/ ST FCR/ Support Level A+/A+/A1/2 A+/A+/A1/2 – Stable – Commercial Bank of Dubai (CBD) CI Dubai LT FCR/ ST FCR/ FSR/ SR A-/A2/BBB+/2 A-/A2/BBB+/2 – Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, ICR – Issuer Credit Rating) (*Preliminary Rating Assigned) Earnings Releases Company Market Currency Revenue (mn) 2Q2013 % Change YoY Operating Profit (mn) 2Q2013 % Change YoY Net Profit (mn) 2Q2013 % Change YoY Saudi Arabian Mining Co. (MA'ADEN) Saudi Arabia SR – – 50.1 -79.0% 41.0 -68.1% National Medical Care Co. (Care) Saudi Arabia SR – – 21.6 -28.9% 22.2 -25.0% Yanbu Cement Co. Saudi Arabia SR – – 286.0 26.5% 274.0 26.9% Source: Company data, Tadawul Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 07/10 US MBA MBA Mortgage Applications 5-July -4.00% – -11.70% 07/10 US US Census Bureau Wholesale Inventories May -0.50% 0.30% -0.10% 07/10 US US Census Bureau Wholesale Sales MoM May 1.60% 0.30% 0.70% 07/10 France INSEE Industrial Production (MoM) May -0.40% -0.80% 2.20% 07/10 France INSEE Industrial Production (YoY) May 0.40% -0.20% -0.50% 07/10 France INSEE Manufacturing Production (MoM) May -1.10% -0.90% 2.60% 07/10 France INSEE Manufacturing Production (YoY) May -0.80% -0.50% -0.30% 07/10 Germany Destasis CPI MoM June 0.10% 0.10% 0.40% 07/10 Germany Destasis CPI YoY June 1.80% 1.80% 1.50% 07/10 Italy ISTAT Industrial Production sa (MoM) May 0.10% 0.30% -0.30% 07/10 Italy ISTAT Industrial Production nsa(YoY) May -4.20% – -0.20% 07/10 China National Bureau of Stat. Exports YoY% June -3.10% 3.70% 1.00% 07/10 China National Bureau of Stat. Imports YoY% June -0.70% 6.00% -0.30% 07/10 Japan ESRI Consumer Confidence Index June 44.3 45.6 45.7 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Overall Activity Buy %* Sell %* Net (QR) Qatari 43.94% 58.46% (16,219,088.07) Non-Qatari 56.06% 41.53% 16,219,088.07
  3. 3. Page 3 of 6 News Qatar  QNB Group‟s 1H2013 net profit rises by 15.1% YoY – The QNB Group has reported a net profit of QR4.7bn in 1H2013, representing an increase of 15.1% YoY. Earnings per share stood at QR6.8 in 1H2013 as compared to QR5.9 in 1H2012. Total assets rose 30.4% YoY to QR431bn in 1H2013, while loans & advances rose 26.3% YoY to QR296bn. Customer deposits increased by 32.7% to QR326bn. This led to the group‟s loan-to-deposit ratio to stand at 91%. The ratio of non- performing loans to gross loans has been maintained at 1.5%. Meanwhile, the group‟s conservative policy on provisioning continued with the coverage ratio reaching 118% in June 2013. The total equity rose by 10.3% from June 2012 to reach QR49bn as on June 30, 2013. The 1H2013 results include that of NSGB in Egypt as well, in which the group had acquired a controlling stake of 97.12% during the first quarter of 2013. (QNB Press Release)  QNB Group‟s Indian subsidiary to commence in 3Q2013 – The QNB Group said its fully-owned subsidiary in India will commence operations in 3Q2013, as it seeks to expand its presence and take on competition in leading markets. Further, the group said that it has received all regulatory approvals to open a representative office in China as well. (Gulf-Times.com)  MSCI Qatar Index assigns provisional weight on Qatari firms – Morgan Stanley Capital International (MSCI) said the QNB Group‟s (QNBK) provisional closing weight is set at 21.68% on MSCI Qatar Index. Further, the provisional closing weight for Industries Qatar (IQCD) has been set at 18.59%, Masraf Al Rayan‟s (MARK) at 16.48%, Ooredoo‟s (QTEL) at 15.78%, Qatar Electricity & Water Company‟s (QEWS) at 6.44%, Commercial Bank of Qatar‟s (CBQK) at 5.68%, Qatar Islamic Bank‟s (QIBK) at 5.53%, Doha Bank‟s (DHBK) at 4.94% and Vodafone Qatar‟s (VFQS) at 4.87%. Qatar‟s provisional weight in the MSCI EM Index works out to be around 0.49%. The list of Qatari stocks expected to be included in the index falls right in line with our expectations. (Bloomberg, QNBFS Research)  QE CEO: MSCI upgrade will attract QR3bn to QE – The Qatar Exchange‟s (QE) CEO Rashid Bin Ali Al Mansoori said the recent MSCI upgrade of the Qatar market to an emerging- market status will attract QR3bn to QE. (Bloomberg)  Qatar trade balance at QR31.3bn in May 2013 – According to the data released by the Statistics Authority, Qatar posted a trade balance of QR31.3bn in May, up 0.5% YoY backed by higher revenues from exports. Total exports in May stood at QR39.6bn and imports QR8.3bn. Total exports rose in May despite a drop in exports of some hydrocarbon commodities. The data also showed that Japan topped among the export destinations in May and accounted for 29% of Qatar‟s exports, followed by South Korea (16%) and India (10%). The data also revealed that among Qatar‟s major import items in May were motor cars, other vehicles and aircraft spares. The US was the biggest exporter to Qatar in May (15%), followed by China (10%) and the UAE (7%). (Gulf-Times.com)  QTEL changed to ORDS – According to Qatar Exchange, effective Wednesday 10 July 2013, Qatar Telecom (QTEL) will be renamed Ooredoo (ORDS). (QE)  Qatar plans to spin off petroleum firm QP – According to Reuters, Qatar plans to spin-off Qatar Petroleum (QP) from the Energy Ministry to allow it to grow more quickly abroad at a time of rising rivalry from new producers. Industry sources say Qatar believes that the spinoff will speed up decision making. (Reuters)  Qatar‟s SWF-backed Louis Vuitton acquires 80% stake in Loro Piana – The French luxury goods company, LVMH Louis Vuitton Moet Hennessy, which is partly owned by Qatar‟s sovereign wealth fund (SWF), has acquired 80% of Italian luxury cashmere clothing brand Loro Piana for €2bn. (Bloomberg)  RasGas widens global reach with the first Mexico LNG cargo delivery – RasGas has made its first delivery of liquefied natural gas at the Manzanillo LNG terminal in Mexico. The LNG cargo was sent to Mexico through RasGas customer, RWE. The cargo was delivered by RWE-chartered conventional sized vessel, „Cadiz Knutsen‟. (Gulf-Times.com)  RDIF appoints QIA CEO as its advisor – The Russian Direct Investment Fund (RDIF) has appointed three new members to the fund‟s International Advisory Board, which includes the Qatar Investment Authority‟s (QIA) CEO Ahmad Al Sayed. The other two new members are the China Investment Corporation‟s President Gao Xiqing, and Mubadala Development Company‟s CEO Khaldoon Khalifa Al Mubarak. (Peninsula Qatar) International  Bernanke backs stimulus for foreseeable future amid QE debate – The US Federal Reserve Chairman Ben Bernanke has backed sustained stimulus for the foreseeable future even as the minutes of the Fed policy makers‟ meeting in June showed them debating whether to halt bond buying this year. Bernanke said a highly accommodative monetary policy is needed in the US economy for the foreseeable future. He also said low inflation and high unemployment mean the Fed still needs to press on with its stimulus, but he expects inflation to soon return closer to the central bank‟s 2% goal. (Bloomberg)  Greece says it does not foresee fiscal gap – The Greek Finance Minister Yannis Stournaras denied that Greece would witness a primary budget deficit this year or the next, stating that its EU-IMF bailout program was on track to meet all the targets agreed with its international lenders. (Reuters)  BoJ keeps monetary policy steady, offers rosy picture on economy – The Bank of Japan has maintained its monetary policy steady and offered a more optimistic view of the Japanese economy based on signs that the positive effects of a weak yen and the government's reflationary policies are widening. In a quarterly review of its long-term growth estimates, the central bank made no major changes to its forecast on the core consumer inflation which is expected to accelerate to near 2% by March 2016. As widely expected, the BoJ voted unanimously to maintain its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 60- 70tn yen. (Reuters)  BoK holds rate after cut in May to boost economy – The Bank of Korea (BoK) held its interest rate unchanged for the second straight month, as it gauges the effect of a cut in May to boost economic growth that is clouded by a surge in bond yields and a slowdown in China. The central bank has maintained the benchmark seven-day repurchase rate at 2.5%. All of the 18 economists surveyed by Bloomberg News predicted this decision. (Bloomberg)  OPEC: Shale boom eroding demand for its crude in 2014 – The Organization of Petroleum Exporting Countries (OPEC) has forecasted that the world will need less of its crude in 2014, even as the global oil demand growth rebounds to its strongest pace since 2010, amid shale boom. OPEC said demand for its
  4. 4. Page 4 of 6 crude will slip by 300,000bpd to 29.6mn bpd in 2014, reflecting a decline of 2.6%, less than the 12-member group is pumping now. OPEC also said that the need for its crude will diminish even as the global oil demand growth recovers to 1mn bpd in 2014, from 800,000bpd in 2013, amid rising output from the US and Canada. (Bloomberg) Regional  PwC: GCC markets‟ average offering value fall with 86% QoQ drop in 2Q2013 – According to a report by the PricewaterhouseCoopers (PwC), the depressed IPO activity in the GCC region continued in 2Q2013 with three new listings raising a total of just $48mn. This compares poorly with the two IPOs in 1Q2013 that raised an aggregate of $337mn, representing 86% decrease. The report added that the average offering value has dropped 94% YoY in 2Q2013. (AME Info)  ANB reports SR717.9mn net profit in 2Q2013 – The Arab National Bank (ANB) has reported a net profit of SR717.9mn in 2Q2013, remaining unchanged over previous year. The bank‟s net profit increased by 1.7% YoY in 1H2013 to reach SR1.4bn. EPS stood at SR1.64 in 1H2013 as compared to SR1.62 in 1H2012. Total assets at the end of June 2013 stood at SR136.1bn over SR120.4bn in June 2012. Loans & advances rose by 5.9% YoY to SR85.5bn, while customer deposits were up by 8.7% YoY to SR103.0bn. (Tadawul)  SABB‟s net profit rises 9.8% YoY in 2Q2013 – Saudi British Bank (SABB) has reported a net profit of SR1.0bn in 2Q2013, indicating 9.8% YoY increase. SABB‟s net profit rose by 10.4% YoY in 1H2013 to reach SR2.0bn. EPS stood at SR1.95 in 1H2013 as compared to SR1.77 in 1H2012. Total assets at the end of June 2013 stood at SR161.9bn over SR151.9bn in June 2012. Loans & advances rose by 11.9% YoY to SR106.0bn, while customer deposits were up by 7.1% YoY to SR125.9bn. (Tadawul)  Samba Financial reports SR1.2bn net profit in 2Q2013 – Samba Financial Group has reported a net profit of SR1.2bn in 2Q2013, reflecting an increase of 1.5% YoY. The group‟s net profit was up by 1.4% YoY in 1H2013 to reach SR2.3bn. EPS stood at SR2.59 in 1H2013 as compared to SR2.56 in 1H2012. Total assets at the end of June 2013 stood at SR205.4bn over SR199.5bn in June 2012. Loans & advances rose by 16.4% YoY to SR111.4bn, while customer deposits were up by 9.6% YoY to SR156.1bn. (Tadawul)  Al Rajhi Bank‟s net profit up 1.4% YoY in 2Q2013 – Al Rajhi Bank has reported a net profit of SR2.1bn in 2Q2013, indicating 1.4% YoY rise. The bank‟s net profit rose by 1.7% YoY in 1H2013 to reach SR4.2bn. EPS stood at SR2.78 in 1H2013 as compared to SR2.74 in 1H2012. Total assets at the end of June 2013 stood at SR273.3bn from SR238.2bn in June 2012. Loans & advances rose by 16.9% YoY to SR184.9bn, while customer deposits were up by 16.9% YoY to SR223.7bn. (Tadawul)  Saudi Customs got SR22.3bn revenues in 2012 – The Saudi Customs Department‟s revenue for FY2012 stood at SR22.3bn, indicating an increase of 13.5% YoY. The Saudi Customs said that the value of goods imported to Saudi Arabia amounted to SR587.8bn, an increase of 19% YoY, while the value of non-oil goods exported by Saudi Arabia rose by 8% with a total of SR170.4bn. (Bloomberg)  Saudi Binladin sells SR1bn sukuk for airport project – Saudi Binladin Group has raised SR1bn from the sale of one-year sukuk for the expansion of the King Abdul Aziz International Airport in Jeddah. The sukuk was issued as a zero coupon bond and was sold below par to provide a 2.5% profit rate. The lead arrangers for this deal were GIB Capital and BNP Paribas Investment. (Bloomberg)  Saudi Aramco‟s new Jizan refinery faces 6-12 month delay – Saudi Aramco‟s oil refinery in Jizan will be reportedly delayed by 6-12 months due to work on associated infrastructure going behind schedule and also due to the delay in awarding the contract to build a plant to supply power. The complex was scheduled to be completed by late 2016, but delays in dredging port areas, needed to bring in equipment by sea, is holding up progress of other parts of the project. (Peninsula Qatar)  Saudi Aramco to supply full August crude volumes to Europe – The Saudi Arabian Oil Company (Saudi Aramco) is set to supply full volumes in August to customers in Europe, unchanged over July. Saudi Aramco will provide 100% of its crude cargoes sold under long-term contracts to Europe. (Bloomberg)  SABIC signs $387mn poly-acetal plant deal – Saudi Basic Industries Corp (SABIC) has awarded the Spanish firm Dragados with a $387mn contract to design and build a new 50,000 ton per year poly-acetal plant. Dragados will start the engineering work in August and the project for SABIC‟s National Methanol Company is due to be completed in 1Q2016. (Peninsula Qatar)  Bupa Arabia signs health insurance agreement with MFA – Bupa Arabia for Cooperative Insurance (Bupa Arabia) has signed a health insurance agreement with the Saudi Ministry of Foreign Affairs (MFA) to provide health insurance for its employees and their families abroad. The coverage period is for one year starting July 20, 2013, which is in accordance with government procurement procedures. Bupa Arabia expects that revenues from this contract to be more than 5% of its 2012 annual gross written premiums. (Tadawul)  MSCI UAE Index assigns provisional weight on UAE firms – Morgan Stanley Capital International said Emaar Properties has been assigned a provisional closing weight of 28.1% on the MSCI UAE Index. The provisional closing weight for DP World is set at 16.04%, Aldar Properties‟ at 12.87%, National Bank of Abu Dhabi‟s at 11.57%, Abu Dhabi Commercial Bank‟s at 9.95%, First Gulf Bank‟s at 9.39%, Dubai Financial Market‟s at 6.34% and Arabtec Holding‟s at 5.73%. (Bloomberg)  DMCC signs up more companies in 1H2013 than all of 2011 – According to the data released by the Dubai Multi Commodities Centre, companies are registering for trade at a much faster rate than anticipated, with around 1,270 signing up in 1H2013 alone, more than the total companies for the entire 2011. The data showed that there are 6,890 companies registered at the DMCC now, indicating an increase of 30% YoY. (GulfBase.com)  DUBAL, Mubadala complete acquisition of Guinea Alumina – Dubai Aluminum (DUBAL) and Mubadala Development Company have secured the full ownership of Guinea Alumina Corporation. DUBAL and Mubadala have completed the acquisition of the remaining project interests in their JV from Global Alumina Corporation and BHP Billiton. (Bloomberg)  ZTE wins contract to provide 3G Wi-Fi Router MF29 to du Telecom – Chinese multinational ZTE Corporation has won a contract to provide 3G Wi-Fi Router MF29 to the Emirates Integrated Telecommunications Company (du Telecom). Made available from the end of June 2013, the routers will be used by du Telecom for its “Office Connect” voice & broadband solutions that are offered in the UAE market. (WSJ)
  5. 5. Page 5 of 6  Etihad, SAA sign code-share agreement – Etihad Airways has entered into a code-share services agreement with South African Airways (SAA). (GulfBase.com)  Etihad Rail signs MoU with Emirates Transport – Etihad Rail has signed a MoU with Emirates General Transport & Services Corporation (Emirates Transport), to receive the benefits of Emirates Transport‟s integrated vehicle & maintenance services. This deal also includes security services on the Etihad Rail sites. (GulfBase.com)  Mubadala Investment reduced after Batista‟s $10bn Rout – Eike Batista‟s EBX Group Company has restructured a $2bn investment by Mubadala Development Company after a stock- market selloff pushed down the value of the Brazilian billionaire‟s companies to half their combined debt. EBX, based in Rio de Janeiro, and Abu Dhabi‟s Mubadala also reached agreements to protect the wealth fund‟s remaining investments in Batista‟s group of interlinked energy, commodities and logistics startups. The partners will continue discussions on developing EBX‟s companies. Under the new agreement, EBX has redeemed a significant portion of Mubadala‟s initial investment. EBX and Mubadala have also entered into new agreements ensuring enhanced protection vis-a-vis the remaining portion of the investment from Mubadala. (Bloomberg)  RSA Logistics breaks ground on new facility in DWC – RSA Logistics has commenced the construction of a 9,500 square meter temperature-controlled facility in Dubai World Central‟s (DWC) Logistics District. The upcoming facility will be operational by March 2014, which will target the automotive and hi-tech industries. (AME Info)  Allen & Overy advises Aldar on merger with Sorouh – Allen & Overy has advised Abu Dhabi-based Aldar Properties on its merger with Sorouh Real Estate. (GulfBase.com)  Fitch affirms Kuwait‟s ratings, outlook “Stable” – Fitch Ratings has affirmed Kuwait's long-term foreign and local currency Issuer Default Ratings (IDR) at “AA” and short-term foreign currency IDR at “F1+” with “Stable” outlook. Fitch has also affirmed Kuwait's country ceiling at “AA+”. (Reuters)  Moody's: Kuwait banking outlook remains “Stable” – According to a report released by the Moody's, outlook for Kuwait's banking system remains stable, reflecting the expectation of a benign operating environment, supported by high oil revenues and government spending (mainly current account). The report said that over the 12-18 month outlook period, the operating environment for the banks will remain accommodative, underpinning the banking sector's robust capitalization and ample liquidity. Moody's expects that Kuwait's non-oil 2013 GDP growth will increase to 3.2%, the highest rate for the past five years, mainly driven by the government's current account spending. Moody's projects moderate credit growth of 5-8% in 2013 rising to 8-10% in 2014 as business opportunities related to the tendering of infrastructure projects pick up. Moody's also expects system-wide non-performing loans to stabilize within the 5-6% range, down from 10.4% in 2009, as banks have made considerable progress in rehabilitating their loan books following the 2008-09 crisis. (Bloomberg)  Kuwait pledges $4bn aid to Egypt – Kuwait has provided $4bn aid package to Egypt. Kuwait will deposit $2bn with the Egyptian central bank, will give $1bn as a grant and offer $1bn worth of oil and oil products. (Bloomberg)  IFA H&R‟s shareholders back 40% capital hike – Kuwait- based IFA Hotels & Resorts‟ (IFA H&R) shareholders have approved a capital increase by 40% to about KD63.5mn from the current KD45.4mn. IFA H&R said it will offer the capital hike shares at KD0.18 each, which will consist of a par value of KD0.1 and an issue premium of KD0.08. (Gulf-Times.com)  Oman‟s crude exports rose 3.2% in June from May – According to a report released by the Ministry of Oil & Gas, Oman‟s exports increased by 3.2% MoM to average 836,920 bpd and crude & condensate production increased by 4.5% MoM in June. The report added that China received 62% of Omani crude in June. (Bloomberg)  DNO International expands exploration portfolio in Oman, Yemen – The Norwegian oil & gas company, DNO International ASA announced that it has been selected by the Ministry of Oil and Minerals of Yemen as a successful bidder for the onshore Block 84. The company also announced that it has separately entered into a farm-in agreement for Block 36 onshore in Oman. The Block 36 farm-in agreement provides for the transfer of a 75% participating interest to DNO Oman AS from Allied Petroleum Exploration. (AME Info)  Bank Nizwa, Sohar Islamic sign Wakala agreement – Bank Nizwa and Sohar Islamic have entered into a Wakala agreement for interbank placement activities between them. (GulfBase.com)  Oman Air starts weekly services to Madinah – Oman Air has launched new weekly service between Muscat and Madinah. (GulfBase.com)  Fitch affirms Bahrain‟s ratings, “Stable” outlook – Fitch Ratings has affirmed Bahrain's Long-term foreign currency issuer default rating (IDR) at “BBB” and local currency IDR at “BBB+” with “Stable” outlook. Fitch has simultaneously affirmed Bahrain's country ceiling at “BBB+” and short-term foreign currency IDR at “F3”. (Reuters)
  6. 6. Contacts Ahmed M. Shehada Keith Whitney Saugata Sarkar Sahbi Kasraoui Head of Trading Head of Sales Head of Research Manager - HNWI Tel: (+974) 4476 6535 Tel: (+974) 4476 6533 Tel: (+974) 4476 6534 Tel: (+974) 4476 6544 ahmed.shehada@qnbfs.com.qa keith.whitney@qnbfs.com.qa saugata.sarkar@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa QNB Financial Services SPC Contact Center: (+974) 4476 6666 PO Box 24025 Doha, Qatar DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 6 of 6 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg 80.0 90.0 100.0 110.0 120.0 130.0 140.0 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 QE Index S&PPan Arab S&P GCC (0.0%) 0.2% (0.7%) 0.0% (0.0%) 0.6% 1.0% (1.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,259.78 0.7 3.0 (24.8) DJ Industrial 15,291.66 (0.1) 1.0 16.7 Silver/Ounce 19.39 0.4 2.5 (36.1) S&P 500 1,652.62 0.0 1.3 15.9 Crude Oil (Brent)/Barrel 108.64 0.1 0.5 (3.7) NASDAQ 100 3,520.76 0.5 1.2 16.6 Natural Gas (Henry Hub)/MMBtu 3.69 (0.0) 4.3 6.4 STOXX 600 294.84 0.1 2.3 5.4 LPG Propane (Arab Gulf)/Ton 810.00 0.0 2.0 (16.4) DAX 8,066.48 0.1 3.3 6.0 LPG Butane (Arab Gulf)/Ton 807.00 0.0 2.2 (16.7) FTSE 100 6,504.96 (0.1) 2.0 10.3 Euro 1.30 1.5 1.2 (1.6) CAC 40 3,840.53 (0.1) 2.3 5.5 Yen 99.68 (1.5) (1.5) 14.9 Nikkei 14,416.60 (0.4) 0.7 38.7 GBP 1.50 1.0 0.8 (7.6) MSCI EM 915.63 0.3 (0.2) (13.2) CHF 1.04 1.5 0.6 (4.5) SHANGHAI SE Composite 2,008.13 2.2 0.0 (11.5) AUD 0.92 (0.0) 1.2 (11.8) HANG SENG 20,904.56 1.1 0.2 (7.7) USD Index 84.04 (0.6) (0.5) 5.4 BSE SENSEX 19,294.12 (0.7) (1.0) (0.7) RUB 32.92 (0.3) (1.2) 7.8 Bovespa 45,483.43 0.9 0.6 (25.4) BRL 0.44 (0.3) (0.5) (9.4) RTS 1,275.29 (0.6) 0.5 (16.5) 134.1 120.8 109.9