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14 May Daily market report

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  • 1. Page 1 of 7 SQE Intra-Day Movement Qatar Commentary The QE index declined 0.1% to close at 13,160.6. Losses were led by the Insurance and Banking and Financial Services indices, declining 2.5% and 0.3% respectively. Top losers were Qatar Insurance Co. and Qatar International Islamic Bank, falling 3.3% and 3.2% respectively. Among the top gainers, Ezdan Holding Group and Aamal Co. rose 6.2% and 3.3% respectively. GCC Commentary Saudi Arabia: The TASI index rose marginally to close at 9,819.9. Gains were led by Hotel & Tou. and Ind. Inv. indices, rising 4.0% and 2.4% respectively. Nat. Agr. Dev. Co. gained 9.9% and Gulf Union Co. Ins. was up 9.8% each. Dubai: The DFM index declined 0.2% to close at 5,318.7. The Services index fell 3.5%, while the Investment & Fin. Serv. Index was down 2.9%. Air Arabia Co. declined 7.4%, while Int. Financial Advisers Co. was down 7.2%. Abu Dhabi: The ADX benchmark index fell 0.4% to close at 5,015.8. The Inv. & Fin. Ser. index declined 4.3%, while Real Est. index was down 1.2%. Green Crescent Ins. Co. fell 5.9%, while Abu Dhabi Shipbuild. Co. was down 5.4%. Kuwait: The KSE index declined 0.1% to close at 7,395.3. The Oil & Gas and Real Estate indices fell 1.0% each. National Ranges Co. declined 13.2%, while Investors Holding Group Co. was down 12.8%. Oman: The MSM index declined 0.1% to close at 6,754.5. Losses were led by the Industrial Index, which declined 0.3%, while the Services index was down 0.2%. Galfar Eng. & Con. declined 5.0%, while Onic. Holding was down 4.3%. Bahrain: The BHB index fell marginally to close at 1,468.1. The Industrial and Commercial Banking indices declined 0.4% each. Bahrain Islamic Bank fell 3.0%, while National Bank of Bahrain was down 2.0%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Ezdan Holding Group 29.20 6.2 6,021.1 71.8 Aamal Co. 18.30 3.3 2,483.5 22.0 Al Khalij Commercial Bank 23.89 2.2 613.7 19.5 Qatar Islamic Bank 93.50 1.9 471.3 35.5 Qatari Investors Group 65.50 1.6 390.0 49.9 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Ezdan Holding Group 29.20 6.2 6,021.1 71.8 Qatar Gas Transport Co. 25.35 1.0 2,968.8 25.2 Vodafone Qatar 18.50 0.5 2,691.2 72.7 Aamal Co. 18.30 3.3 2,483.5 22.0 Masraf Al Rayan 50.00 (0.6) 1,768.5 59.7 Market Indicators 14 May 14 13 May 14 %Chg. Value Traded (QR mn) 1,140.0 1,015.0 12.3 Exch. Market Cap. (QR mn) 742,112.0 738,468.5 0.5 Volume (mn) 26.9 23.5 14.7 Number of Transactions 11,684 11,410 2.4 Companies Traded 43 42 2.4 Market Breadth 17:22 29:11 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 19,625.30 (0.1) 1.5 32.3 N/A All Share Index 3,351.54 (0.0) 1.5 29.5 16.1 Banks 3,193.58 (0.3) 1.0 30.7 15.9 Industrials 4,547.33 0.3 2.7 29.9 17.7 Transportation 2,423.31 0.4 2.5 30.4 15.6 Real Estate 2,633.27 0.2 1.1 34.8 13.2 Insurance 3,342.39 (2.5) 2.9 43.1 8.8 Telecoms 1,742.02 0.9 (0.0) 19.8 24.3 Consumer 7,106.04 0.2 (0.4) 19.5 28.4 Al Rayan Islamic Index 4,310.43 (0.2) 0.7 42.0 18.5 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Ezdan Holding Group Qatar 29.20 6.2 6,021.1 71.8 Emaar Properties Dubai 10.90 5.8 86,933.7 56.9 Saudi Arabian Mining Saudi Arabia 39.12 5.3 27,511.5 20.7 Al Tayyar Saudi Arabia 136.05 5.0 1,021.0 58.9 Salhia Real Estate Co. Kuwait 0.38 4.1 20.9 (5.0) GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Air Arabia Dubai 1.38 (7.4) 99,872.7 (11.0) Dubai Investments Dubai 3.77 (3.6) 21,791.0 62.0 Tihama Saudi Arabia 278.02 (3.5) 303.4 153.3 Qatar Insurance Co. Qatar 78.70 (3.3) 290.1 47.9 Qatar Int. Islamic Bank Qatar 87.00 (3.2) 1,259.2 41.0 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% Qatar Insurance Co. 78.70 (3.3) 290.1 47.9 Qatar International Islamic Bank 87.00 (3.2) 1,259.2 41.0 Qatar & Oman Investment Co. 14.52 (1.9) 419.8 16.0 Gulf Warehousing Co. 56.00 (1.8) 41.4 34.9 Al Khaleej Takaful Group 38.05 (1.7) 73.4 35.5 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Ezdan Holding Group 29.20 6.2 177,298.0 71.8 Qatar International Islamic Bank 87.00 (3.2) 110,203.4 41.0 Masraf Al Rayan 50.00 (0.6) 88,170.1 59.7 Qatar Gas Transport Co. 25.35 1.0 74,538.9 25.2 Industries Qatar 190.40 (0.3) 52,108.8 12.7 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* 13,160.60 (0.1) 1.5 3.8 26.8 313.13 203,858.2 16.4 2.2 3.8 Dubai 5,318.74 (0.2) 0.3 5.1 57.8 931.40 97,219.7# 21.2 2.1 2.0 Abu Dhabi 5,015.81 (0.4) (0.5) (0.6) 16.9 209.16 137,571.0 14.8 1.8 3.4 Saudi Arabia 9,819.89 0.0 0.3 2.4 15.0 3,214.86 533,943.5 19.5 2.4 2.9 Kuwait 7,395.29 (0.1) (0.2) (0.2) (2.0) 68.02 115,895.2 15.4 1.2 3.8 Oman 6,754.50 (0.1) (1.0) 0.4 (1.2) 23.77 24,505.5 12.0 1.7 3.9 Bahrain 1,468.12 (0.0) (0.2) 2.9 17.6 33.37 54,042.4 10.7 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; # Value as of May 13, 2014) 13,080 13,100 13,120 13,140 13,160 13,180 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  • 2. Page 2 of 7 Qatar Market Commentary  The QE index declined 0.1% to close at 13,160.6. The Insurance and Banking and Financial Services indices led the losses. The index fell on the back of selling pressure from Qatari shareholders despite buying support from non-Qatari shareholders.  Qatar Insurance Co. and Qatar International Islamic Bank were the top losers, falling 3.3% and 3.2% respectively. Among the top gainers, Ezdan Holding Group and Aamal Co. rose 6.2% and 3.3% respectively.  Volume of shares traded on Wednesday rose by 14.7% to 26.9mn from 23.5mn on Tuesday. Further, as compared to the 30-day moving average of 30.7mn, volume for the day was 12.2% lower. Ezdan Holding Group and Qatar Gas Transport Co. were the most active stocks, contributing 22.4% and 11.0% 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 The National Commercial Bank (NCB) Capital Intelligence (CI) Saudi Arabia FSR/LT FCR/ST FCR AA-/AA-/A1+ AA-/AA-/A1+ – Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Currency Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC – Local Currency) Earnings Releases Company Market Currency Revenue (mn)1Q2014 % Change YoY Operating Profit (mn) 1Q2014 % Change YoY Net Profit (mn) 1Q2014 % Change YoY Dubai Insurance Co. (DIC) Dubai AED 34.8 3.2% 9.0 -25.2% 16.2 -21.0% Gulf General Investments Co. (GGICO) Dubai AED 345.1 -35.0% – – 22.9 -30.2% Takaful Emarat – Insurance Dubai AED 17.3 90.8% – – 2.0 NA Dubai Refreshments (DRC) Dubai AED 203.7 10.2% 21.9 0.5% 29.1 1.6% National Cement Co. (NCC) Dubai AED 40.8 -23.2% – – 33.9 -20.0% Sharjah Insurance Co. (SICO) Abu Dhabi AED 10.1 19.1% -2.1 NA 6.5 5.7% Al Khazna Insurance Co. (AKIC) Abu Dhabi AED 21.2 31.3% -1.5 NA -4.0 NA Union Insurance Co. (UIC) Abu Dhabi AED 139.1 44.5% 18.9 51.2% 60.1 2260.9% Abu Dhabi National Insurance Co. (ADNIC) Abu Dhabi AED 993.0 32.9% – – 55.0 48.6% Arkan Building Materials Co. Abu Dhabi AED 129.3 38.0% – – 13.3 38.2% National Corporation for Tourism & Hotels (NCTH) Abu Dhabi AED 185.0 6.0% – – 40.0 15.3% Abu Dhabi National Company for Building Materials (BILDCO) Abu Dhabi AED 7.3 -70.9% – – 5.0 NA Abu Dhabi National Energy Co. (TAQA) Abu Dhabi AED 7264.0 34.0% – – 274.0 158.5% Al Arabiya Real Estate Co. (AREC) Kuwait KD – – – – 0.3 -52.3% Manazel Holding Co. Kuwait KD – – – – -0.5 NA Kuwait Investment Co. (KIC) Kuwait KD – – – – 4.2 84.6% Investors Group Holding Co. Kuwait KD – – – – -0.04 NA Manafae Investment Co. (MIC) Kuwait KD – – – – 0.01 NA Strategia Investment Co. (SIC) Kuwait KD – – – – 0.3 22.3% Hayat Communications Co. (HCC) Kuwait KD – – – – -0.02 NA Gulf North Africa Holding Co. (GNAHC) Kuwait KD – – – – 0.04 NA First Investment Co. (FIC) Kuwait KD – – – – -0.2 NA Al-Ahleia Insurance Co. Kuwait KD – – – – 3.4 38.0% Nafais Holding Co. Kuwait KD – – – – 4.0 161.4% Al-Mowasat Healthcare Co. (MHC) Kuwait KD – – – – 0.6 -61.3% National Real Estate Co. (NREC) Kuwait KD – – – – 4.2 54.2% Overall Activity Buy %* Sell %* Net (QR) Qatari 61.36% 63.24% (21,421,783.54) Non-Qatari 38.64% 36.76% 21,421,783.54
  • 3. Page 3 of 7 Noor Financial Investment Co. Kuwait KD – – – – 3.3 126.4% Kuwait National Cinema Co. Kuwait KD – – – – 2.5 34.4% Warba Insurance Co. (WIC) Kuwait KD – – – – 2.3 64.5% Soor Fuel Marketing Co. Kuwait KD – – – – 1.1 -10.1% Renaissance Services Oman OMR 56.4 -3.6% 12.7 8.5% 5.4 12.5% Nass Corporation Bahrain BHD 19.1 -11.4% – – 1.7 -5.4% Arab Insurance Group (ARIG) Bahrain USD 207.4 15.2% 0.5 -27.0% 2.8 28.9% Al-Ahlia Insurance Co. Bahrain BHD 1.3 4.9% 0.1 -13.9% 0.3 -66.3% Gulf Finance House (GFH) Bahrain USD 29.7 167.6% – – 1.1 -26.7% Source: Company data, DFM, ADX, MSM Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 05/14 US MBA MBA Mortgage Applications 9 May 3.60% – 5.30% 05/14 US BLS PPI Final Demand MoM April 0.60% 0.20% 0.50% 05/14 US BLS PPI Ex Food and Energy MoM April 0.50% 0.20% 0.60% 05/14 US BLS PPI Final Demand YoY April 2.10% 1.70% 1.40% 05/14 US BLS PPI Ex Food and Energy YoY April 1.90% 1.40% 1.40% 05/14 EU Eurostat Industrial Production SA MoM March -0.30% -0.30% 0.20% 05/14 EU Eurostat Industrial Production WDA YoY March -0.10% 0.90% 1.70% 05/14 France INSEE CPI MoM April 0.00% 0.10% 0.40% 05/14 France INSEE CPI YoY April 0.70% 0.90% 0.60% 05/14 Germany Destatis CPI MoM April -0.20% -0.20% -0.20% 05/14 Germany Destatis CPI YoY April 1.30% 1.30% 1.30% 05/14 UK ONS Jobless Claims Change April -25.1K -30.0K -30.6K 05/14 UK ONS Average Weekly Earnings 3M/YoY March 1.70% 2.10% 1.70% 05/14 UK ONS Weekly Earnings ex Bonus 3M/YoY March 1.30% 1.50% 1.40% 05/14 UK ONS Employment Change 3M/3M March 283K 248K 239K 05/14 Spain INE CPI Core MoM April 1.00% – 0.50% 05/14 Spain INE CPI Core YoY April 0.30% 0.30% 0.00% 05/14 Spain INE CPI MoM April 0.90% 0.90% 0.20% 05/14 Spain INE CPI YoY April 0.40% 0.40% 0.40% 05/14 Italy Banca D'Italia General Government Debt March 2119.9B – 2107.2B 05/14 Japan Bank of Japan Domestic CGPI MoM April 2.80% 2.80% 0.00% 05/14 Japan Bank of Japan Domestic CGPI YoY April 4.10% 4.00% 1.70% 05/14 Japan Bank of Japan Loans & Discounts Corp YoY March 1.88% – 2.23% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  MSCI adds 10 Qatari and 9 UAE companies to MSCI EM Index – As part of its semi-annual review, Equity index provider MSCI reclassified Qatar and the United Arab Emirates to emerging markets from the frontier-market status, in line with expectations. Qatar will have a ~0.48% weighting in the MSCI Emerging Market Index, while the UAE will have ~0.58% weighting. MSCI added 10 Qatar companies and 9 UAE companies to the emerging markets index. The Qatari equities that will be included in the index are QNB Group (QNBK), Industries Qatar (IQCD), Masraf Al Rayan (MARK), Ooredoo (ORDS), Vodafone Qatar (VFQS), Qatar Electricity & Water (QEWS), Qatar Islamic Bank (QIBK), Barwa Real Estate (BRES), Commercial Bank of Qatar (CBQK) and Doha Bank (DHBK). The UAE securities that will be included in the index are Emaar Properties (EMAAR), Al Dar Properties (ALDAR), DP World (DPW), Abu Dhabi Commercial Bank (ADCB), National Bank of Abu Dhabi (NBAD), Arabtec Holding (ARTC), Dubai Financial Market (DFM), First Gulf Bank (FGB) and Dubai Islamic Bank (DIB). All changes will be implemented as of the close on May 30, 2014. (Reuters, Zawya)  Qatar to reform sponsorship system – Qatar has announced its intention to reform the prevailing Kafala (sponsorship) system with a set of new amendments to the existing labor law. The amendments will impact all migrant workers only after it is approved by the government after going through its legislative cycle. The major changes proposed in the new labor law are: modifications to the exit permit system whereby employers’ consent would no longer be required and; the no-objection certificate (NOC), presently required by a worker when he switches jobs, would now be governed strictly by an employment contract system. (Gulf-Times.com)  Cabinet approves draft law on investment funds – HE the Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani, has approved a draft law concerning investment funds. The draft law aims to cope with capital market development, in conformity with the supervisory role of the Qatar Financial Markets Authority (QFMA) on financial markets, as well as to maintain confidence in the trading system and protect the owners of securities and their dealers in a fair and transparent manner. The draft law included determination of the authorized party to issue a license to the investment fund, set up a registration of investment funds and
  • 4. Page 4 of 7 determines the fund’s capital upon incorporation to at least QR10mn or its equivalent. The founder has to offer the investment units of the fund for public or private subscription within a period not exceeding two months from the date of the QFMA’s approval. (Gulf-Times.com)  QA starts Business One to London Heathrow – Qatar Airways has inaugurated its new all-premium daily service ‘Business One’ between Doha and London Heathrow Airport, becoming the first carrier to operate an all-business class service from London Heathrow. The new daily service flies from Doha to London Heathrow Terminal 4 using an Airbus A319 aircraft, offering 40 premium business class seats. QA currently operates five daily flights to London Heathrow and the all- business class daily service will be the sixth. (Gulf-Times.com)  Q-Post, QRC sign one-year MoU – The General Postal Corporation of Qatar (Q-Post) and Qatar Red Crescent (QRC) have signed a MoU for bilateral support and sponsorship on logistics. As a logistic partner, Q-Post will sponsor the distribution of QRC's publications and newsletters, particularly on humanitarian campaigns. In return, QRC will provide the corporation's staff with hands-on first aid training, informative workshops on the international humanitarian laws and the Geneva Convention, as well as the opportunity to participate in QRC's annual Disaster Management Camp. (Qatar Tribune) International  BoE in no rush to raise rates as recovery builds – The Bank of England (BoE) pushed back against market expectations that it might raise interest rates in less than a year's time, stating that Britain's economic recovery is still in its early stages. The central bank acknowledged a strong bounce-back in the labor market since last year, and lowered its forecast for unemployment for the next couple of years. However, it left largely unchanged its assumptions on the timing of interest rate rises and its growth and inflation forecasts. The sterling pound fell to a one-month low against the US dollar after the bank's report, since the markets was betting that the recovery in the economy meant a possible rate hike. Britain's economy is due to grow about 3% this year, probably making it the star performer among big, industrialized nations. Financial markets had mostly priced in a rate move for around nine months' time before latest report by the BoE. (Reuters)  ECB readies package of rate cuts and targeted measures – The European Central Bank (ECB) is preparing a package of policy options for its meeting in June, which includes cuts in all its interest rates and targeted measures aimed at boosting lending to small and mid-sized firms (SMEs). These plans involve a potential rate cut, including the ECB's deposit rate going negative for the first time, along with the targeted measures for SMEs. The package offers some stimulus for the Eurozone economy, but falls short of the large-scale effect that the ECB could unleash with a major program of quantitative easing (QE). Such a QE plan is still some way off. Sources said a rate cut in June is more or less a done deal. Meanwhile, ECB President Mario Draghi said last week the Governing Council was comfortable with acting in its June 5 policy meeting, but wanted to see updated economic projections first. (Reuters)  Japanese economy accelerated in first quarter – Japan’s economy grew at the fastest pace since 2011 in 1Q2014 as companies stepped up investment and consumers splurged before the first sales-tax rise in 17 years last month. The Cabinet Office said the country’s GDP grew an annualized 5.9% from the previous quarter, more than a 4.2% median forecast in a Bloomberg News survey. Consumer spending had risen at the fastest pace since the quarter before the 1997 tax increase, while capital spending jumped the most since the aftermath of the 2011 earthquake. Today’s data add to signs the Japanese economy will have sufficient momentum to bounce back from the 3% point levy rise that is projected to trigger a contraction this quarter. However, companies and consumers need to keep spending as the focus shifts to whether the nation can withstand a planned further increase in the tax. (Bloomberg)  Chinese growth target vulnerable as economy's momentum fades – China might miss its economic growth target for the first time in 15 years as data points to a sharper-than-expected loss of momentum, while senior leaders are talking about a new normal of slower growth. The government has already given itself some room on its growth target, refining it to about 7.5% and saying a couple of percentage points either side of that was acceptable. However, after the annual economic growth slowed to an 18-month low of 7.4% in the first quarter, data for April has raised the possibility of a further slowdown. Financial markets hardly seem concerned, expecting that despite the rhetoric of accepting slower growth, authorities will step in to safeguard the target with some sort of stimulus measures, as they did in 2013. A cut in the official target, which would require a parliamentary approval, would be unprecedented. (Reuters) Regional  Gulf Union to raise capital through rights issue – Gulf Union Cooperative Insurance Company’s (Gulf Union) board of directors has recommended a capital increase by offering a rights issue worth SR165mn. (Tadawul)  SABIC, Lockheed partner for carbon nano materials – Saudi Basic Industries Corporation (SABIC) and Lockheed Martin have partnered to establish a new joint venture company in Saudi Arabia to develop carbon nanostructure materials for a variety of end-user markets and applications. Under the MoU terms, SABIC and Lockheed Martin will coordinate on the development, industrial validation, testing, scale-up, production and sale of carbon nanostructure materials. (GulfBase.com)  ABZ Agro Foods looks for Saudi investors – ABZ Agro Foods has invited Saudi investors for its new project – Halal Slaughtering & Buffalo Meat Production. Investors in the project will be entitled to a share from the net return in proportion to their investment. Net cash flow from the project operation would be distributed among the promoters at 40% and incoming investors at 60%. (GulfBase.com)  Saudi Aramco, SABIC approve FME’s new facility – Flexitallic Middle East (FME), a part Flexitallic Group, has received approvals from the Saudi Arabian Oil Company (Saudi Aramco) and Saudi Basic Industries Corporation (SABIC) for the production of its established range of innovative gasket technologies in its facility in Saudi Arabia. The new facility is engaged in the manufacturing of semi-metallic and metallic gaskets. (GulfBase.com)  ACWA confirms BSF as IPO adviser – Saudi water and power project developer ACWA Power has picked Banque Saudi Fransi (BSF) as the adviser for its planned IPO listing on the kingdom's stock exchange. (Reuters)  IDB plans benchmark sukuk issue in May 2015 – Saudi- based Islamic Development Bank’s (IDB) President, Ahmad Mohamed Ali said that the bank is planning to issue a benchmark-sized Islamic bond or sukuk by around May 2015. (Reuters)  Yokogawa Electric bags supply order for Jeddah power plant – Yokogawa Electric and its subsidiary Yokogawa Middle East & Africa (YMA) have won an order from Hyundai Heavy
  • 5. Page 5 of 7 Industries to supply various systems and products for Stage-1 of the Jeddah South supercritical oil-fired thermal power plant. Under the agreement, YMA will be responsible for the engineering and commissioning of the DCSs, safety instrumented systems, and plant information management systems. Jeddah South will be Saudi Arabia’s first supercritical thermal power plant, which is being built by the Saudi Electricity Company. Stage-1 of this project involves the construction of four 723 MW units by 2017, producing a total of 2,892 MW. (GulfBase.com)  Mulkia Investment signs deal with SRB – Mulkia Investment has signed an agreement with Shariyah Review Bureau (SRB) to handle and supervise its Shari’ah-compliant investments and to support its broader Islamic funds transformation strategy. SRB will support Mulkia’s Shari’ah compliance requirements within regulated industries under the Capital Market Authority. (GulfBase.com)  Shoaibi Group to exit JV with GMS – According to sources, Gulf Marine Services’ (GMS) joint venture partner in Saudi Arabia, Shoaibi Group, is planning to exit its 40% stake in the business. GMS may acquire the stake from its partner or seek a replacement partner for GMS Saudi Arabia Ltd. (Bloomberg)  AED2bn Dubai Creek project gets approval – The UAE’s Vice President and Prime Minister, HH Sheikh Mohammed bin Rashid Al Maktoum, has approved a project to develop the Dubai Creek Front in Bur Dubai's Al Seef area. The project to be built at an estimated cost of AED2bn covers a 1.8 km area, extending from Al Fahidi to Al Seef area. The development, to be completed by the end of 2016, will consist of a floating market, hotels restaurants, art galleries and shops for Emirati handicrafts. (GulfBase.com)  UD, IBM to establish Smarter Cities Institute – The University of Dubai (UD) and International Business Machines (IBM) have entered into an agreement for Smarter Cities Center of Excellence. The center will be located at UD’s campus and will be a venue for businesses, universities and city-administrators to develop and test solutions for future urban demands and smart city challenges. As part of the agreement, UD becomes an IBM academic partner within the framework of the IBM Academic Initiative. (Bloomberg)  Etisalat completes Maroc Telecom acquisition – Emirates Telecommunications Corporation (Etisalat), through its indirect subsidiary, Etisalat International North Africa has completed the acquisition of 53% stake in Itissalat Al Maghrib (Maroc Telecom) from Vivendi for a purchase consideration of €4.14bn. (ADX)  Borealis to start production at ethylene plant after expansion – Borealis, an Austrian petrochemical company controlled by Abu Dhabi, is planning to start the ethylene plant, Borouge, by the end of May 2014 after expanding in the Emirate at a cost of $4bn. After expansion, the annual capacity at Borouge will reach 4.5mn tons from 2mn tons of ethylene and the derivatives polyethylene and polypropylene plastics used in car parts and packaging. (Bloomberg)  Al Anwar Holding’s BoD recommends cash, stock dividends – Al Anwar Holding’s BoD has recommended the distribution of 10% cash dividend (0.01 baiza per share) and 8.75% stock dividend (8.75 shares per 100 existing shares). (MSM)  Bank Sohar to issue OMR70mn convertible bond – Bank Sohar’s board of directors has approved the issuance of OMR70mn of compulsorily convertible bonds on a private placement basis. This issue would help support the Tier I capital of the bank and is subject to regulatory approvals. (MSM)  ODC, DSEC to launch LNG ship repair partnership – Oman Drydock Company (ODC) and DSEC will formally launch their partnership targeting the LNG carrier repair market at next month's Posidonia Trade Fair in Greece. DSEC is a subsidiary of Daewoo Shipbuilding & Marine Engineering Company. ODC’s expansion into LNG carriers will be further strengthened by its new license to support the French engineering firm Gaztransport & Technigaz, which specializes in cargo containment systems for high-end LNG carriers. (GulfBase.com)  OAB appoints GM for Al Yusr Islamic Banking – Oman Arab Bank’s (OAB) management has appointed Abdul Qader Al Bulushi as the General Manager (GM) to head Al Yusr Islamic Banking. Al Bulushi has been a senior member at OAB since he joined the bank in September 1998. (GulfBase.com)  MBH to buy back shares of Flexible Industrial Packaging – The Omani Capital Market Authority (CMA) has approved MB Holding Company’s (MBH) request to buy back shares of Flexible Industrial Packaging Company (FIP) from its minority shareholders. Under the transaction, MBH will buy shares from those who have less than 50,000 shares at a price of 60 baisas per share between May 14, 2014 and May 28, 2014. Gulf Baader Capital Markets is acting as the authorized broker for the transaction. (GulfBase.com)  Truckoman plans IPO – According to sources, Muscat-based Truckoman is planning an initial public offering (IPO) on the Muscat stock exchange over the next two months. The company’s free-float may be about 40% after selling new and existing shares in the offering. Truckoman has hired Oman Arab Bank to advise on the offering. (Bloomberg)  OOC, PDC to establish Duqm Petroleum Terminal Company – The Oman Oil Company (OOC) has entered into an agreement with the Port of Duqm Company (PDC) to establish a new entity, ‘Duqm Petroleum Terminal Company’ (DPTC) to further strengthen Duqm’s status as the upcoming regional hub for hydrocarbons, refining and petrochemicals. DPTC’s will develop and operate a liquid bulk jetty that will accommodate vessels of up to 225 meters. In addition, DPTC will build a one million cubic meters tank storage terminal to support the jetty’s operations at the Port of Duqm, which is expected to be operational by mid-2018. OOC will hold a 90% stake in DPTC, while the remaining 10% stake will be held by PDC. (Bloomberg)  NBC signs deal with Al Majed United – The National Business Centre (NBC), a part of the Public Establishment for Industrial Estates (PEIE), has signed an agreement to assist Anwar Al Majed United Company to benefit from NBC’s support dedicated to the small and medium enterprises. (Bloomberg)  UGB reports $11.6mn net profit for 1Q2014 – The United Gulf Bank (UGB) has reported a net profit of $11.6mn for 1Q2014 as compared to $6.9mn in 1Q2013, reflecting an increase of 69%. Total income before interest and other expenses grew to $40.5mn in 1Q2014 from $21.9mn in 1Q2013. Total assets increased to $2.6bn from $1.26bn as of December 31, 2013. UGB’s EPS amounted to 1.25 cents at the end of 1Q2014 as against 0.79 cents a year earlier. (Bahrain Bourse)  Ithmaar Bank earns $2.11mn profit for 1Q2014 – Ithmaar Bank has reported a net profit of $2.11mn in 1Q2014 as compared to $1.43mn in 1Q2013, reflecting an increase of 48%. Total income for 1Q2014 reached $111mn as compared to $106mn in 1Q2013. EPS amounted to 0.02 cents as against 0.06 cents a year earlier. Total assets stood at $7.5bn at the end of March 2014 as compared to $7.4bn at the end of December 2013. (Bahrain Bourse)
  • 6. Page 6 of 7  RMK Projects to launch luxury residential tower – RMK Projects, a division of RM Kooheji & Sons has launched its freehold residential tower, Nasmah West in Juffair. Nasmah West is a 25-storey luxury freehold residential tower consist of 124 apartments, with two-bedroom apartments that are offered at BHD44,000. (GulfBase.com)
  • 7. Contacts Saugata Sarkar Keith Whitney Sahbi Kasraoui Head of Research Head of Sales Manager - HNWI Tel: (+974) 4476 6534 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 saugata.sarkar@qnbfs.com.qa keith.whitney@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 7 of 7 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg (*Market closed on May 14, 2014) 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 Jun-10 Jan-11 Aug-11 Mar-12 Oct-12 May-13 Dec-13 QE Index S&P Pan Arab S&P GCC 0.0% (0.1%) (0.1%) (0.0%) (0.1%) (0.4%) (0.2%) (0.8%) (0.4%) 0.0% 0.4% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,305.95 1.0 1.3 8.3 DJ Industrial 16,613.97 (0.6) 0.2 0.2 Silver/Ounce 19.79 1.3 3.3 1.7 S&P 500 1,888.53 (0.5) 0.5 2.2 Crude Oil (Brent)/Barrel (FM Future) 110.19 0.9 2.1 (0.6) NASDAQ 100 4,100.63 (0.7) 0.7 (1.8) Natural Gas (Henry Hub)/MMBtu 4.41 (1.1) (3.6) 1.5 STOXX 600 341.59 (0.1) 0.9 4.1 LPG Propane (Arab Gulf)/Ton 101.75 (1.6) (2.0) (19.6) DAX 9,754.39 (0.0) 1.8 2.1 LPG Butane (Arab Gulf)/Ton* 119.25 0.0 (0.3) (12.2) FTSE 100 6,878.49 0.1 0.9 1.9 Euro 1.37 0.1 (0.3) (0.2) CAC 40 4,501.04 (0.1) 0.5 4.8 Yen 101.90 (0.4) 0.0 (3.2) Nikkei 14,405.76 (0.1) 1.5 (11.6) GBP 1.68 (0.4) (0.5) 1.3 MSCI EM 1,032.24 1.0 2.5 2.9 CHF 1.12 0.0 (0.4) 0.3 SHANGHAI SE Composite 2,047.91 (0.1) 1.8 (3.2) AUD 0.94 0.2 0.2 5.2 HANG SENG 22,582.77 1.0 3.3 (3.1) USD Index 80.07 (0.1) 0.2 0.0 BSE SENSEX 23,815.12 (0.2) 3.6 12.5 RUB 34.62 (0.6) (1.7) 5.3 Bovespa 54,412.54 0.9 2.5 5.6 BRL 0.45 0.6 0.5 7.3 RTS 1,261.01 0.5 2.3 (12.6) 189.1 155.8 141.7