Page 1 of 7
QE Intra-Day Movement
Qatar Commentary
The QE index declined 0.3% to close at 12,881.7. Losses were led by the...
Page 2 of 7
Qatar Market Commentary
 The QE index declined 0.3% to close at 12,881.7. The Real
Estate and Telecoms indice...
Page 3 of 7
Dukhan and Al Shamal areas. The Dukhan Highway Central
provides a modern highway that improves traffic flow be...
Page 4 of 7
 Fire breaks out at Chemanol’s Paraformaldehyde Unit –
Methanol Chemicals Company (Chemanol) announced that f...
Page 5 of 7
 DEWA awards AED65mn contract to improve water
networks reliability – Dubai Electricity and Water Authority
(...
Page 6 of 7
across Oman stood at 6,801, the number of integrated services
digital networks (ISDN) stood at 45,534 while th...
Contacts
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian
Head of Research Senior Research Analyst Senior Research Ana...
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13 July Daily market report

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13 July Daily market report

  1. 1. Page 1 of 7 QE Intra-Day Movement Qatar Commentary The QE index declined 0.3% to close at 12,881.7. Losses were led by the Real Estate and Telecoms indices, declining 1.1% each. Top losers were Barwa Real Estate Co. and Industries Qatar, falling 1.8% and 1.6%, respectively. Among the top gainers, Gulf Warehousing Co. and Qatar Insurance Co. rose 3.0% each. GCC Commentary Saudi Arabia: The TASI index rose 0.1% to close at 9,812.5. Gains were led by the Insurance and Retail indices, rising 1.6% and 1.5%, respectively. Saudi Marketing Co. gained 9.9%, while Bupa Arabia for Coop. Ins. was up 9.8%. Dubai: The DFM index gained 0.1% to close at 4,579.8. The Insurance index gained 2.5%, while the Services index rose 2.2%. Gulf Finance House surged 15.0%, while Gulf Navigation was up 11.2%. Abu Dhabi: The ADX benchmark index fell 0.1% to close at 4,841.1. The Industrial index fell 1.4%, while the Consumer index was down 1.2%. Abu Dhabi Ship Building Co. fell 9.0%, while Al Khazna Ins. Co. declined 8.8%. Kuwait: The KSE index gained 1.5% to close at 7,178.8. The Telecom. Index rose 2.6%, while the Financial Services index was up 2.3%. Al-Safat Tec Holding Co. and Al-Nawadi Holding Co. gained 9.3% each. Oman: The MSM index rose marginally to close at 7,190.2. Gains were led by the Services index, rising 0.3%, while Industrial index rose marginally. Port Services Corp. gained 5.1%, while Oman United Insurance was up 4.1%. Bahrain: The BHB index gained 1.6% to close at 1,463.8. The Industrial index rose 5.4%, while the Commercial Banking index was up 2.3%. National Bank of Bahrain gained 7.7%, while Ithmaar Bank was up 6.7%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Gulf Warehousing Co. 52.00 3.0 18.5 25.3 Qatar Insurance Co. 87.00 3.0 121.7 63.5 Mesaieed Petrochemical Holding 32.80 2.3 1,383.7 228.0 Qatar Cinema & Film Distri. Co. 51.00 2.0 0.6 27.2 Qatar Islamic Insurance Co. 79.00 1.9 12.9 36.4 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 19.11 (1.0) 2,068.4 78.4 Masraf Al Rayan 54.60 (0.9) 2,059.9 74.4 Ezdan Holding Group 23.70 0.4 1,687.0 39.4 Mesaieed Petrochem. Holding Co. 32.80 2.3 1,383.7 228.0 Mazaya Qatar Real Estate Dev. 18.99 (0.8) 1,290.6 69.9 Market Indicators 13 Jul 14 10 Jul 14 %Chg. Value Traded (QR mn) 554.8 725.8 (23.6) Exch. Market Cap. (QR mn) 700,230.8 701,389.8 (0.2) Volume (mn) 14.2 16.8 (15.5) Number of Transactions 7,237 7,911 (8.5) Companies Traded 42 42 0.0 Market Breadth 15:22 28:12 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 19,212.94 (0.3) (0.3) 29.6 N/A All Share Index 3,257.60 (0.3) (0.3) 25.9 15.6 Banks 3,131.24 (0.4) (0.4) 28.1 15.5 Industrials 4,305.90 (0.3) (0.3) 23.0 16.8 Transportation 2,249.23 0.6 0.6 21.0 14.5 Real Estate 2,704.53 (1.1) (1.1) 38.5 13.5 Insurance 3,632.41 2.1 2.1 55.5 9.5 Telecoms 1,633.47 (1.1) (1.1) 12.4 22.5 Consumer 6,878.71 0.3 0.3 15.6 27.0 Al Rayan Islamic Index 4,304.65 (0.5) (0.5) 41.8 18.6 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Nat. Bank of Bahrain Bahrain 0.84 7.7 3.2 20.9 Nat. Real Estate Co. Kuwait 0.15 7.0 1,853.5 3.6 Ithmaar Bank Bahrain 0.16 6.7 1,242.9 (30.4) Aluminium Bahrain Bahrain 0.50 5.5 63.2 (4.8) Dallah Healthcare Saudi Arabia 106.24 4.9 475.6 52.3 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% United Real Estate Co. Kuwait 0.10 (5.5) 537.0 (11.9) Abu Dhabi Nat. Energy Abu Dhabi 1.13 (3.4) 113.6 (23.1) Nat. Bank Of Abu Dhabi Abu Dhabi 14.50 (3.0) 277.2 14.8 Kuwait Foods Kuwait 2.94 (2.0) 10.0 16.7 Al Rajhi Bank Saudi Arabia 67.95 (1.9) 3,600.0 0.8 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% Barwa Real Estate Co. 40.75 (1.8) 771.2 36.7 Industries Qatar 177.00 (1.6) 55.1 4.8 Mannai Corp. 108.70 (1.5) 37.6 20.9 Ahli Bank 51.70 (1.3) 16.7 22.2 Qatar Navigation 96.50 (1.2) 61.6 16.3 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Masraf Al Rayan 54.60 (0.9) 114,874.5 74.4 Mesaieed Petrochem. Holding Co. 32.80 2.3 45,567.9 228.0 Vodafone Qatar 19.11 (1.0) 41,029.0 78.4 Ezdan Holding Group 23.70 0.4 40,632.0 39.4 Barwa Real Estate Co. 40.75 (1.8) 31,988.3 36.7 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* 12,881.70 (0.3) (0.3) 12.1 24.1 152.39 192,353.4 16.0 2.2 3.9 Dubai 4,579.76 0.1 0.1 16.2 35.9 216.21 89,084.4 24.6 1.8 2.3 Abu Dhabi 4,841.07 (0.1) (0.1) 6.4 12.8 53.65 134,803.0 14.3 1.8 3.4 Saudi Arabia 9,812.50 0.1 0.1 3.1 15.0 1,758.17 536,191.3 19.4 2.4 2.9 Kuwait 7,178.75 1.5 1.5 3.0 (4.9) 78.99 112,382.5 17.1 1.1 3.8 Oman 7,190.24 0.0 0.0 2.6 5.2 15.40 26,463.8 12.5 1.7 3.9 Bahrain 1,463.78 1.6 1.6 2.5 17.2 0.64 54,054.0 11.5 1.0 4.7 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 12,850 12,900 12,950 13,000 13,050 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 7 Qatar Market Commentary  The QE index declined 0.3% to close at 12,881.7. The Real Estate and Telecoms indices led the losses. The index fell on the back of selling pressure from Qatari shareholders despite buying support from non-Qatari shareholders.  Barwa Real Estate Co. and Industries Qatar were the top losers, falling 1.8% and 1.6%, respectively. Among the top gainers, Gulf Warehousing Co. and Qatar Insurance Co. rose 3.0% each.  Volume of shares traded on Sunday fell by 15.5% to 14.2mn from 16.8mn on Thursday. Further, as compared to the 30-day moving average of 17.7mn, volume for the day was 19.6% lower. Vodafone Qatar and Masraf Al Rayan were the most active stocks, contributing 14.6% and 14.5% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Earnings Earnings Releases Company Market Currency Revenue (mn)2Q2014 % Change YoY Operating Profit (mn) 2Q2014 % Change YoY Net Profit (mn) 2Q2014 % Change YoY Saudi International Petrochemical Co. (Sipchem) Saudi SR – – 459.8 35.5% 244.60 40.6% Yanbu National Petrochemical Co. (YANSAB) Saudi SR – – 700.6 -7.4% 613.00 -8.6% Southern Province Cement Co. Saudi SR – – 296.0 1.0% 294.00 -1.0% Saudi Transport & Investment Co. Saudi SR – – 13.1 NA 12.97 176.9% Saudi Arabia Fertilizers Co. Saudi SR – – 579.0 -8.5% 639.00 -7.8% Qassim Cement Co. Saudi SR – – 163.6 -5.7% 161.11 -1.5% Saudi Industrial Export Co. Saudi SR – – 0.5 -77.9% 0.52 -76.4% Fitaihi Holding Group Saudi SR – – 20.6 52.7% 18.02 52.0% Samba Financial Group Saudi SR – – – – 1,257.00 7.0% Dubai Refreshment * Dubai AED 478.0 11.7% 60.6 17.0% 68.70 14.1% Kuwait Business Town Real Estate* Kuwait KD – – – – 0.62 NA National Slaughter House* Kuwait KD – – – – 0.20 29.6% Oman United Insurance* Oman OMR 24.3 -0.4% 2.9 50.2% 2.71 1.1% National Securities Oman OMR 0.2 283.7% – – -0.11 NA Gulf Investment Services* Oman OMR 3.3 3.8% – – 2.52 14.4% Source: Company data, DFM, ADX, MSM ( *1H2014 results ) News Qatar  MARK to sell 50% stake in Seef Lusail Real Estate Development Company – Masraf Al Rayan (MARK) has agreed to sell its 50% stake in Seef Lusail Real Estate Development Company to the real estate arm of the Gulf state's sovereign wealth fund. Mark had previously owned the company equally with Qatari Diar Infrastructure Company. Under the terms of the agreement, MARK will divest 49% stake to its joint venture partner, with the remaining 1% sold to Qatari Diar Real Estate Investment Company (QDRIC). Both are units of Qatari Diar, owned by the Qatar Investment Authority. (Reuters, QNBFS Research)  CBQK launches mid-term European debt securities issuance program on Abank – Alternatifbank (Abank), 74.25% owned by the Commercial Bank of Qatar (CBQK), has mandated BofA Merrill Lynch and Commerzbank to arrange on its behalf a series of investor meetings targeting fixed income investors commencing on July 14, 2014. An inaugural USD RegS Only offering guaranteed by CBQK and expected to be rated A by Fitch, may follow, subject to market conditions. (QE)  QFCA appoints new CFTO – The Qatar Financial Centre Authority (QFCA) has appointed Sheikh Salman Bin Hassan Al Thani as its Chief Financial and Tax Officer (CFTO). Prior to joining the QFCA, Sheikh Salman Al Thani was Director of Risk Management at the Qatar Central Bank (QCB). He also worked for Qatar Petroleum (QP) in a variety of roles in the Project Finance Department. Sheikh Salman holds a BA degree in Banking and Financial Studies from Qatar University. (Peninsula Qatar)  Ashghal: 9 kilometer stretch of Dukhan Highway Central opens – The Public Works Authority (Ashghal) has opened a 9 kilometer stretch of the Dukhan Highway Central, paving the way for easy traffic flow between Dukhan and Central Doha. Motorists are expected to experience major improvement while driving on the arterial highway following the opening of the dual- carriageway with four lanes in each direction from Shehaniya Interchange to Al Rayyan Stadium Roundabout. Dukhan Highway is considered one of the most important sections of the road network in Qatar. The highway serves the local community as well as the adjacent areas, especially those who work in Overall Activity Buy %* Sell %* Net (QR) Qatari 68.29% 72.83% (446,281.00) Non-Qatari 31.71% 27.17% 446,281.00
  3. 3. Page 3 of 7 Dukhan and Al Shamal areas. The Dukhan Highway Central provides a modern highway that improves traffic flow between Doha and the west of Qatar through the 9km dual-carriageway with four lanes in each direction. (Gulf-Times.com) International  Draghi seen delivering $1tn free lunch to banks – Economists say Mario Draghi’s newest stimulus tool will hand banks more than €700bn of cheap funding. According to the Bloomberg Monthly Survey of 45 economists, the European Central Bank (ECB) president’s targeted lending program for banks will boost credit for the real economy as planned, and at the same time help keep the financial system flush with cash. Draghi may address the topic shortly when he testifies at the European Parliament in Strasbourg for the first time since elections in May. The ECB has identified lending to companies and households as a key weakness in the Euro area’s fragile recovery. The so-called TLTRO program, part of a wider package of measures announced in June, offers as much as four years of low-cost funding tied to bank lending that Draghi said this month could ultimately provide as much as €1tn. (Bloomberg)  BES urged by central bank to bring forward new CEO appointment – Portugal’s central bank told Banco Espirito Santo SA, the country’s second biggest lender by market value, to hold a board meeting to appoint the new chief executive officer and chief financial officer earlier than previously planned. The Bank of Portugal said in a statement that it ordered an “urgent extraordinary meeting” of the Banco Espirito Santo board to decide on the proposed appointments of Vitor Bento as CEO, Joao Moreira Rato as CFO and Jose Honorio as vice president of the executive committee. Espirito Santo Financial Group SA, or ESFG, which is controlled by Banco Espirito Santo’s founding family and is the biggest shareholder in the bank, with a 25% stake, said on July 5 that it would propose Bento and Moreira Rato at a July 28 board meeting. Credit Agricole SA, which owns 14.6% of Banco Espirito Santo, backed the proposal. Shareholders are due to ratify the new board members on July 31. Banco Espirito Santo roiled markets on July 10 after a parent company called Espirito Santo International SA missed some payments on commercial paper. The bank’s stock dropped 36% last week and its credit rating was lowered by both Standard & Poor’s and Moody’s Investors Service on July 11. (Bloomberg)  Japan investors bulk up on French bonds, bet on Eurozone 'Japanisation' – Japanese investors have been buying most of France's government debt recently in a record surge spurred by expectations that Europe faces the kind of deflation and growth that Japan suffered for decades. Since the European Central Bank (ECB) signaled in May it would take radical steps to ease monetary conditions, banks and other big investors in Japan have piled into French bonds, convinced from their own experience that the debt of a country where the central bank is battling deflation represents a winning bet, market participants say. Japanese Finance Ministry data shows Japanese investors bought a net 1.9tn yen of French bonds in May, equal to more than 60% of the government’s new issuance that month. Data is not available for June, but market participants say Japanese buying of French bonds has picked up from May amid a broader increase in buying of Eurozone debt. One suggested Japanese investors may have bought the equivalent of three-fourths of the French new issuance. (Reuters)  BRICS fight waning clout with $150bn deal in Brazil summit – The leaders of five of the world’s largest emerging markets will showcase a new currency reserve fund and development bank this week. Critics say neither is enough to revive the group’s waning clout. Brazil, Russia, India, China and South Africa, known as the BRICS, will approve the creation for the $100bn reserve fund and $50bn bank at a July 15-16 summit in Brazil’s coastal city of Fortaleza and the capital Brasilia. Arvind Subramanian, senior fellow at the Peterson Institute for International Economics said, the initiatives are born out of frustration with a lack of participation in global governance, particularly in the World Bank and International Monetary Fund. The measures aren’t big enough to boost growth or cohesion in the group as foreign investor sentiment sours and member states focus on issues close to home, such as Brazil’s elections, the conflict in Ukraine and new economic policy plans in India. According to the median estimate of economists surveyed by Bloomberg, economic growth in the five countries is projected to average 5.37% this year, half the pace seen seven years ago. Brazil and Russia will grow 1.3% and 0.5%, respectively. (Bloomberg) Regional  EY: Private sector to boost opportunities for large-scale MENA power transactions – According to an Ernst & Young (EY) a report – Power Transactions and Trends – the increasing role of the private sector in both power generation and water could boost opportunities for future large-scale transactions in the MENA region. According to EY’s report, with market reforms in the region gaining momentum as well as utility unbundling, renewables looks to be a fertile growth area. At present, utilities in the Gulf are focusing chiefly on domestic investments. There is a massive need for new power and water capacity, driven by population growth and the increased industrialization of the region’s economies. The new capacity projections over the next few years encompass not just generation but basic infrastructure. EY’s Mena Power & Utilities Transactions leader David Lloyd said this demand will open up substantial opportunities for private sector involvement and transactions. Transaction activities in the GCC are largely based on participation of the private sector in capital projects and commercial undertakings. As markets and competition in power generation becomes more established, growth rather than consolidation is expected to be a dominant driver of activity, with more deals to be done between state-owned businesses and the private sector. (Gulf-Times.com)  Italy earmarks €4.9mn for MENA projects – The Italian government has announced the earmarking of funds to finance projects by the United Nations Industrial Development Organisation (UNIDO) worth a total of €4.9mn that will be implemented in the MENA region, as well as in Ethiopia and Mozambique. An agreement on this was signed in Vienna between Italy and UNIDO. Italy will contribute €600,000 to a European Union project in the MENA region, which focuses on fostering entrepreneurial cooperation in the cultural and creative industry demonstrating the potential for national and regional development in this field in the Southern Mediterranean. (GulfBase.com)  GCC construction deals to hit $195bn – According to a report by Arabian Business, the GCC construction projects are forecasted to reach $195.67bn in 2014, up nearly $35bn as compared to 2013. The contract awards for the building and infrastructure sectors will make up $134bn by December 2014, an increase from $119.05bn in 2013. The UAE, Qatar and Saudi Arabia are likely to lead growth in the construction market over the next few years. All GCC economies except Bahrain and Oman, are projected to continue expansion for the next six years, with heavy investments planned irrespective of budgetary balances. (Bloomberg)
  4. 4. Page 4 of 7  Fire breaks out at Chemanol’s Paraformaldehyde Unit – Methanol Chemicals Company (Chemanol) announced that fire had broken out at its Paraformaldehyde Unit located in Jubail Industrial City on July 11, 2014. The fire has been contained successfully by the company’s firefighters with the help of nearby companies and civil defense teams. Work will stop temporarily at the Paraformaldehyde Unit until the investigation into the causes of the incident is complete and the financial impact is assessed under the insurance coverage of the plant. Meanwhile, work will continue normally in the rest of the company’s plants which were not affected by the fire. Hence, the company is expected to complete the investigations and determine the financial impact within one month. (Tadawul)  NCB’s net income reaches SR4,961mn in 1H2014 – The National Commercial Bank (NCB) recorded SR4,961mn net income attributable to equity holders for 1H2014 as compared to SR4,324mn for 1H2013, reflecting an increase of 14.7%. Net income for 2Q2014 amounted to SR2,425mn as compared to SR1,992mn for 2Q2013, indicating an increase of 21.7%. The bank’s total assets grew to reach SR436bn as compared to SR363bn at the end of the same period of 2013, reflecting an increase of 20%. Total shareholders’ equity reached SR46.4bn as compared to SR41.6bn at end of the same period of 2013, indicating an increase of 11.4%. Earnings per share reached SR2.5 as compared to SR2.2 at the end of the same period in 2013. The loans & advances portfolio grew to SR206bn as compared to SR178bn at the end of the same period in 2013, indicating an increase of 15.7%, while customer deposits grew to SR346bn as compared to SR288bn at the end of 1H2013, indicating an increase of 20%. (GulfBase.com)  Al Rajhi Bank reports 8.2% decline in 2Q2014 net profit – Al Rajhi Bank reported a net profit of SR1.95bn in 2Q2014 as compared to SR2.12bn during the same period last year, reflecting a decrease of 8.2% YoY. The net profit for 1H2014 declined 12.4% to SR3.66bn from SR4.17bn in 1H2013. The total assets stood at SR295bn as compared to SR273bn a year earlier. EPS amounted to SR2.25 at the end of June 2014. Loans & advances stood at SR201bn, while customer deposits reached SR245bn. (Tadawul)  Tadawul deposits Al Hammadi’s IPO shares – The Saudi Stock Exchange (Tadawul) announced that the IPO shares of Al Hammadi Company for Development & Investment have been deposited into applicable investor’s portfolios on July 13, 2014. (Tadawul)  MAADEN enters into 50% JV for Jabal Sayid copper project – Saudi Arabian Mining Company (MAADEN) has entered into an agreement with Barrick Gold Corporation (Barrick) to establish a 50:50 joint venture entity that will acquire, develop and operate the Jabal Sayid copper project located 120 kilometer southeast of Medina, Saudi Arabia (the Project). MAADEN will invest approximately $210mn to acquire its stake in the project assets, rights and existing infrastructures free of any debt or obligations, and will fund the consideration through available cash & facilities. The acquisition is targeted to be completed in 4Q2014 and is subject to customary closing conditions and the approval of related authorities. The project has been constructed and mechanically completed. The production is expected to commence in late 2015 and the project once fully operational will produce approximately 45,000- 60,000 tons of copper in concentrate per year. The project’s estimated copper reserves are approximately 650,000 tons and the expected mine life is approximately 15 years, but future exploration work will be carried out within the mining license area and the exploration license area surrounding the mine with the aim of extending the mine life. (Tadawul)  HSBC Saudi Arabia announces rebalancing of HSBC Saudi 20 ETF – HSBC Saudi Arabia announces the rebalancing of the HSBC Saudi 20 ETF in line with the index. The rebalancing of the HSBC Saudi 20 ETF has been carried out on July 13, 2014 in line with the index. (Tadawul)  OFC acquires 51% stake in Gulf Union Foods – Saudi-based Olayan Financing Company (OFC) has acquired a 51% stake in Gulf Union Foods Company from a group of investors including private equity firm Jadwa Investment (Jadwa). Jadwa is divesting its entire 30% stake, which it acquired in December 2009 through its Food & Beverage Opportunity Fund. (Reuters)  Mobily signs $200mn export deal with EDC – Etihad Etisalat Company (Mobily) has signed a $200mn export finance agreement with Export Development Canada (EDC) for the purchase of telecoms equipment from Alcatel Lucent. The Islamic finance deal was announced on June 29, 2014 and is led by Credit Agricole and Bank of Tokyo Mitsubishi. The tenure is 10.5 years repayable in 17 half yearly installments and the drawdown is over two years. The Shari’ah-compliant loan was priced at a fixed rate of 2.52% per annum with a 3% upfront premium. (Bloomberg)  UAE becomes Vietnam’s fifth largest export market – The UAE has surpassed Germany and Hong Kong to become Vietnam’s fifth largest export market. Total Vietnamese exports to the UAE had jumped 27% YoY, tallying $2.03bn in the first five months of 2014. It is now forecasted that the total export turnover to the UAE will hit a record $2.4bn in 1H2014, reflecting a significant YoY increase of 25%. The country’s key export items to the UAE include mobile handsets, computers, electronic products, pepper, textiles, and footwear. (GulfBase.com)  CBD appoints GM for Corporate, Commercial & Investment Banking – Commercial Bank of Dubai (CBD) has appointed Alain Renaud as its General Manager (GM) for Corporate, Commercial & Investment Banking. Prior to joining CBD, Renaud had held several key positions with a number of international financial institutions in New York, London, Paris and Dubai, in particular HSBC, Paribas and Credit Suisse First Boston. (Bloomberg)  DI’s EBS targets 10% YoY growth – Dubai Investments’ (DI) subsidiary and a manufacturer of steel structures, Emirates Building Systems (EBS) is targeting a 10% YOY growth over the next five years amid strong demand in the region fueled by the ongoing construction boom. EBS, which achieved a growth of 10% in 2013 as compared to 2012, also announced major expansion plans in Saudi Arabia, given the escalating demand for steel structures for infrastructure projects, commercial and residential buildings as well as the oil & gas sector in the country. The expansion plans comes close on the heels of EBS winning strategic projects in the Saudi Arabia, which includes a project for Riyadh Public Transport, as well as structures for three petrochemical projects undertaken by Samsung Engineering for Saudi Aramco. The company also announced a strong pipeline of projects in Saudi Arabia, which are expected to be announced soon. (DFM)  Abraaj Investment makes bid for BiscoMisr’s 51% stake – Abraaj Investment Management, an affiliate of Abraaj Capital, has made a bid to buy a minimum 51% stake in BiscoMisr, an Egypt-based provider of baked goods and confectionary. The transaction is subjected to certain conditions, including conducting due diligence on the company that is satisfactory to Abraaj, finalizing negotiations and obtaining the necessary regulatory approvals. (Reuters)
  5. 5. Page 5 of 7  DEWA awards AED65mn contract to improve water networks reliability – Dubai Electricity and Water Authority (DEWA) has awarded an AED65mn contract for a project that will increase the reliability of its water networks in different parts of Dubai. The project, slated to be completed by June 2016, involves the supply, installation and commissioning of surge protection devices for DEWA’s pumping station in areas such as Jebel Ali, Mushrif, and Hatta. (Bloomberg)  Dana Gas wins right to some payments from Iraqi Kurdistan – Dana Gas announced that an arbitration tribunal had awarded it the right to receive some outstanding payments from the Kurdish government. Dana Gas which leads a consortium of investors had filed an arbitration case in London last October against the Kurdistan Regional Government (KRG), seeking to confirm its contract rights and to obtain payments for products which it had delivered. Earlier, in February 2014, the company had said that it had not received any significant payments from the KRG since July 2013, and was pushing for payments to resume as soon as possible. A tribunal at the London Court of International Arbitration was set up to hear the case. Dana Gas and its Consortium partners are proud to be the largest oil & gas sector investors and cumulative producers in the Kurdistan Region of Iraq. Dana Gas and and its consortium partners have invested over $1.1bn in the Kurdistan Region and produced approximately 120mn barrels of oil equivalent (boe) of natural gas and petroleum liquids till date, thereby facilitating affordable electricity generation as well as economic and social transformation for the Kurdistan Region under the progressive policies of the KRG. (ADX,Reuters)  Etihad Cargo launches freighter flights to Vietnam – Etihad Cargo, the freight division of Etihad Airways has launched freighter flights between Abu Dhabi and Hanoi’s Noi Bai International Airport (HAN). The dedicated cargo service will operate every Thursday and Sunday using an Airbus A330-200F freighter, with a capacity of 60 tons. Etihad Cargo expects the new service to carry raw materials, consumer goods and perishables to Hanoi, with large quantities of electronics and textiles destined for the Gulf region, Europe and Africa loaded for the return flight. (Bloomberg)  ADIB opens 80th UAE branch in Shahama – Abu Dhabi Islamic Bank (ADIB) has expanded its branch network with the opening of its 80th branch in the UAE, in the Shahama area in west Abu Dhabi. This takes the number of ADIB branches in this area of Abu Dhabi to 17. (GulfBase.com)  Gulf Capital invests $30mn in EKI – Gulf Capital has completed an investment of $30mn in Evolvence Knowledge Investments (EKI) through Gulf Credit Partners. EKI engages in the establishment and operation of private schools and nurseries in the GCC region. The total number of students in the UAE, estimated to be around 900,000, has been growing at a fast rate of 5.8% during the past years, reflecting the strong enrolment in the country’s educational system. This investment will help EKI to achieve its ambitious growth plans at an exciting time for the GCC’s emerging education sector. (GulfBase.com)  Bank Dhofar signs agreement with PASMED & ODB to promote banking facilities to SMEs – Bank Dhofar has signed an agreement with the Public Authority for SME Development (PASMED) and Oman Development Bank (ODB) to promote banking facilities to small and medium enterprises (SMEs). Under the terms of the agreement, SMEs will be considered for financial assistance by the bank which will be guaranteed up to 50% by ODB. This joint program will enable new entrepreneurs who do not have enough resources on their own or adequate guarantees to immediately begin implementing their projects and find their way toward success. (GulfBase.com)  OAB to provide banking facilities for OCC unit – Oman Arab Bank (OAB) has signed new banking facilities for the new Cement Mill No. 5 of Oman Cement Company (OCC). The facilities will include a term loan in addition to the letters of credit. The company made this announcement through the Muscat Securities Market (MSM). (GulfBase.com)  Bank Dhofar records net profit of OMR20.5mn in 1H2014 – Bank Dhofar recorded a net profit of OMR20.5mn in 1H2014 as compared to OMR40.8mn in 1H2013, down by 49.8%. The bank’s total assets at the end of June 2014 stood at OMR2.85bn as compared to OMR2.35bn a year earlier. Net loans & advances reached OMR2.18bn, while customer deposits stood at OMR2.19bn. (MSM)  CBO issues CDs worth OMR284mn – The Central Bank of Oman (CBO) has issued certificates of deposit (CDs) worth OMR284mn for issue no. 875. The average interest rate of these certificates was 0.13% whilst the maximum accepted interest rate was 0.13%. The tenure of these certificates is 28 days. The maturity date is August 6, 2014. The certificates of deposit issued to licensed banks by the CBO as a monetary policy instrument is aimed at absorbing excess liquidity at the banking sector in particular, and maintaining stability of the interest rate and the money market in general. (GulfBase.com)  CBO: Omani banking activities show robust growth – According to the statistics released by the Central Bank of Oman (CBO), banking credit rose to OMR15.6bn, with a growth of OMR418mn as of March 31, 2014,, as compared to the December 2013 level and OMR1.3bn as compared to the March 2013 level. Personal loans constitute more than 40% of the total banking credit. The loans for the industrial sector rose by OMR1.3bn in 1Q2014, reflecting a growth of OMR60mn, as compared to December 2013 and OMR164.7mn growth as compared to its level a year ago. The loans sanctioned to the construction sector grew to OMR1.6bn, indicating an increase of OMR92.3mn during 1Q2014 and OMR230mn when compared to its level a year earlier. By the end of 1Q2014, the construction sector received 10.1% of the total banking credit as compared to 8.2% for the industry, 8.2% for services and 39.7% for personal loans, marginally less than the 40.1% recorded in December 2013. (GulfBase.com)  Carmeuse to launch $180mn Oman lime project in 2H2014 – Carmeuse is on course to bringing part of its world-scale lime calcining plant in Oman’s Dhofar Governorate into operation in 2H2014. Carmeuse Majan is a joint venture company led by Belgium-based Carmeuse Holding and is setting up the project in Salalah Free Zone with an investment of around $180mn. A total of eight kilns, each with a capacity to produce 125,000 tons of lime, are envisioned as part of the Carmeuse’s Oman project. The plant’s output is primarily targeted at India where demand for lime products, a key ingredient in the manufacture of a wide range of commodities, is rising sharply. The Gulf region, with its booming industries, is also seen as a promising market for Carmeuse’s products. (GulfBase.com)  NCSI: Fixed telephone lines in Oman increase 3% – According to the National Centre for Statistics and Information (NCSI), fixed-phone subscribers in Oman stood at 362,273 at the end of May 2014 as against 351,411 at the end of December 2013, constituting a rise of 3.1%. Statistics revealed that fixed- phone subscribers in Oman stood at 280,671 at the end of May 2014 as against 271,400 subscribers at the end of 2013, while subscribers of pre-paid fixed phone service stood at 27,421 against 25,829 at the end of 2013. The number of public phones
  6. 6. Page 6 of 7 across Oman stood at 6,801, the number of integrated services digital networks (ISDN) stood at 45,534 while the number of fixed wireless lines stood at 1,846. (GulfBase.com)  ABC appoints new Head of Group Compliance – The Arab Banking Corporation (ABC) has appointed Mrs. Sharon Craggs as Head of Group Compliance, at the bank’s headquarters in Bahrain. Mrs. Craggs will join ABC on August 1, 2014. (GulfBase.com)  Garmco plans $50mn investment to boost capacity – Gulf Aluminium Rolling Mill Company (Garmco) is planning to invest $50mn to boost its re-melt and casting facilities in line with Alba's potline 6 expansion. A new casting facility will add 120,000 metric tons of casting capacity and forms an integral part of Garmco's 3-5 years strategic plan. Alba is a fundamental part of Garmco's supply chain and supplies the bulk of its raw material needs. (GulfBase.com)  Batelco signs agreement with BisB – Bahrain Telecommunications Company (Batelco) and Bahrain Islamic Bank (BisB) have signed a one-year partnership agreement to support the young customers of both the organizations by providing them special offers each month. This agreement is in line with BisB’s continued efforts to offer the best products and services to customers. (GulfBase.com)
  7. 7. Contacts Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa 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 7 of 7 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 200.0 210.0 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 QE Index S&P Pan Arab S&P GCC 0.1% (0.3%) 1.5% 1.6% 0.0% (0.1%) 0.1% (0.6%) 0.0% 0.6% 1.2% 1.8% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,338.62 0.0 0.0 11.0 DJ Industrial 16,943.81 0.0 0.0 2.2 Silver/Ounce 21.45 0.0 0.0 10.2 S&P 500 1,967.57 0.0 0.0 6.4 Crude Oil (Brent)/Barrel (FM Future) 106.66 0.0 0.0 (3.7) NASDAQ 100 4,415.49 0.0 0.0 5.7 Natural Gas (Henry Hub)/MMBtu 4.08 0.0 0.0 (6.0) STOXX 600 336.91 0.0 0.0 2.6 LPG Propane (Arab Gulf)/Ton 103.13 0.0 0.0 (18.3) DAX 9,666.34 0.0 0.0 1.2 LPG Butane (Arab Gulf)/Ton 121.50 0.0 0.0 (11.0) FTSE 100 6,690.17 0.0 0.0 (0.9) Euro 1.36 0.0 0.0 (1.0) CAC 40 4,316.50 0.0 0.0 0.5 Yen 101.30 0.0 0.0 (3.8) Nikkei 15,164.04 0.0 0.0 (6.9) GBP 1.71 0.0 0.0 3.4 MSCI EM 1,058.67 0.0 0.0 5.6 CHF 1.12 0.0 0.0 0.1 SHANGHAI SE Composite 2,046.96 0.0 0.0 (3.3) AUD 0.94 0.0 0.0 5.3 HANG SENG 23,233.45 0.0 0.0 (0.3) USD Index 80.19 0.0 0.0 0.2 BSE SENSEX 25,024.35 0.0 0.0 18.2 RUB 34.22 0.0 0.0 4.1 Bovespa 54,785.93 0.0 0.0 6.4 BRL 0.45 0.0 0.0 6.4 RTS 1,383.18 0.0 0.0 (4.1) 185.1 153.3 138.7

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