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17 June Daily market report
17 June Daily market report
17 June Daily market report
17 June Daily market report
17 June Daily market report
17 June Daily market report
17 June Daily market report
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17 June Daily market report

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  • 1. Page 1 of 7 QE Intra-Day Movement Qatar Commentary The QE index declined 0.3% to close at 12,520.4. Losses were led by the Telecoms and Transportation indices, declining 3.8% and 0.3% respectively. Top losers were Ooredoo and Mazaya Qatar Real Estate Dev., falling 4.9% and 3.2% respectively. Among the top gainers, Qatar Cinema & Film Distribution Co. rose 9.9%, while Al Khaleej Takaful Group was up 2.2%. GCC Commentary Saudi Arabia: The TASI index rose 0.5% to close at 9,574.5. Gains were led by the Transport and Real Estate Dev. indices, rising 2.2% and 2.1% respectively. Al Alamiya and Umm Al-Qura Cement gained 9.8% each. Dubai: The DFM index gained 0.6% to close at 4,495.2. The Real Estate & Construction index rose 1.6%, while the Telecom. index gained 0.9%. Al- Madina for Fin. & Inv. gained 8.3%, while Drake & Scull Int. was up 7.3%. Abu Dhabi: The ADX benchmark index fell 0.7% to close at 4,749.0. The Banking index declined 1.6%, while the Consumer index was down 1.5%. Union Cement Co. fell 7.1%, while Nat. Bank of Abu Dhabi was down 6.4%. Kuwait: The KSE index fell 0.4% to close at 7,078.8. The Health Care index declined 1.7%, while the Real Estate index was down 1.1%. Mashaer Holding Company fell 7.3%, while National Slaughterhouse Co. was down 7.0%. Oman: The MSM index declined 0.4% to close at 6,887.9. Losses were led by the Services and Industrial indices, declining 0.4% and 0.3% respectively. Oman Cement fell 3.6%, while Shell Oman Marketing was down 2.8%. Bahrain: The BHB index fell 0.4% to close at 1,444.6. The Commercial Banking index declined 0.8%, while the Investment index was down 0.4%. Khaleeji Commercial Bank fell 2.0%, while Ahli United Bank was down 1.8%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar Cinema & Film Distri. Co. 63.00 9.9 77.1 57.1 Al Khaleej Takaful Group 46.00 2.2 604.7 63.8 Widam Food Co. 58.70 2.1 57.8 13.5 Dlala Brokerage & Inv. Holding Co. 52.00 1.8 109.5 135.3 Qatar Fuel Co. 215.10 1.5 104.0 (1.6) Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Masraf Al Rayan 52.30 1.2 3,399.5 67.1 Barwa Real Estate Co. 39.00 (0.5) 2,700.2 30.9 Vodafone Qatar 19.60 (0.1) 2,622.5 83.0 Mazaya Qatar Real Estate Dev. 17.52 (3.2) 2,221.5 56.7 Ezdan Holding Group 21.70 (0.5) 1,035.9 27.6 Market Indicators 17 Jun 14 16 Jun 14 %Chg. Value Traded (QR mn) 914.0 662.8 37.9 Exch. Market Cap. (QR mn) 685,342.4 687,151.6 (0.3) Volume (mn) 19.7 15.0 31.6 Number of Transactions 14,193 8,250 72.0 Companies Traded 43 43 0.0 Market Breadth 20:20 7:36 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 18,670.56 (0.3) (3.5) 25.9 N/A All Share Index 3,178.39 (0.2) (3.1) 22.8 15.2 Banks 3,046.75 0.1 (3.6) 24.7 15.1 Industrials 4,225.47 0.2 (1.8) 20.7 16.5 Transportation 2,210.69 (0.3) (2.6) 19.0 14.2 Real Estate 2,595.05 (0.3) (5.2) 32.9 13.0 Insurance 3,341.89 (0.3) (1.3) 43.0 8.8 Telecoms 1,658.50 (3.8) (6.5) 14.1 22.9 Consumer 6,756.50 0.9 (1.1) 13.6 26.6 Al Rayan Islamic Index 4,191.46 (0.1) (3.4) 38.1 18.2 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Drake & Scull Int. Dubai 1.77 7.3 61,804.9 22.9 Dar Al Arkan Real Est. Saudi Arabia 12.93 6.9 51,518.1 31.3 Arabtec Holding Co. Dubai 4.22 4.2 227,508.1 105.9 A. Othaim Market Saudi Arabia 106.95 4.2 1,975.7 71.5 Dana Gas Abu Dhabi 0.75 4.2 13,789.1 (17.6) GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Tihama Saudi Arabia 113.00 (10.0) 667.8 3.0 Dp World Ltd. Dubai 17.22 (9.9) 202.2 (2.8) NBAD Abu Dhabi 14.00 (6.4) 1,064.8 10.8 Astra Industrial Group Saudi Arabia 54.54 (5.7) 2,217.0 2.9 Ooredoo Qatar 136.00 (4.9) 252.8 (0.9) 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% Ooredoo 136.00 (4.9) 252.8 (0.9) Mazaya Qatar Real Estate Dev. 17.52 (3.2) 2,221.5 56.7 Gulf Warehousing Co. 51.90 (1.9) 11.4 25.1 Al Meera Consumer Goods Co. 168.00 (1.8) 172.8 26.0 Zad Holding Co. 80.50 (1.7) 11.8 15.8 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Masraf Al Rayan 52.30 1.2 175,062.2 67.1 Barwa Real Estate Co. 39.00 (0.5) 103,767.0 30.9 QNB Group 177.20 0.0 84,649.4 3.0 Vodafone Qatar 19.60 (0.1) 51,416.8 83.0 Mazaya Qatar Real Estate Dev. 17.52 (3.2) 38,965.2 56.7 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* 12,520.36 (0.3) (3.5) (8.6) 20.6 251.03 188,263.6 15.6 2.1 4.0 Dubai 4,495.24 0.6 (7.1) (11.6) 33.4 509.41 89,251.1 18.1 1.8 2.3 Abu Dhabi 4,749.04 (0.7) (3.7) (9.6) 10.7 133.77 132,304.1 14.0 1.8 3.5 Saudi Arabia 9,574.51 0.5 (2.6) (2.5) 12.2 2,373.89 519,493.4 19.1 2.3 2.9 Kuwait 7,078.81 (0.4) (2.3) (2.9) (6.2) 62.31 111,177.2 16.2 1.1 3.9 Oman 6,887.87 (0.4) (0.3) 0.4 0.8 15.28 25,036.4 11.9 1.6 4.0 Bahrain 1,444.55 (0.4) (1.1) (1.0) 15.7 1.31 53,685.2 11.3 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) 12,300 12,400 12,500 12,600 12,700 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 0.3% to close at 12,520.4. The Telecoms and Transportation indices led the losses. The index fell on the back of selling pressure from non-Qatari shareholders despite buying support from Qatari shareholders.  Ooredoo and Mazaya Qatar Real Estate Dev. were the top losers, falling 4.9% and 3.2% respectively. Among the top gainers, Qatar Cinema & Film Distribution Co. rose 9.9%, while Al Khaleej Takaful Group was up 2.2%.  Volume of shares traded on Tuesday rose by 31.6% to 19.7mn from 15.0mn on Monday. However, as compared to the 30-day moving average of 25.5mn, volume for the day was 22.9% lower. Masraf Al Rayan and Barwa Real Estate Co. were the most active stocks, contributing 17.3% and 13.7% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Ratings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Boubyan Bank Fitch Kuwait LT IDR/ST IDR/VR/SR – A+ /F1/ bb+/1 – Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC – Local Currency, VR – Viability Rating) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 06/17 US BLS CPI MoM May 0.40% 0.20% 0.30% 06/17 US BLS CPI Ex Food and Energy MoM May 0.30% 0.20% 0.20% 06/17 US BLS CPI YoY May 2.10% 2.00% 2.00% 06/17 US BLS CPI Ex Food and Energy YoY May 2.00% 1.90% 1.80% 06/17 US BLS CPI Core Index SA May 237.8 237.6 237.2 06/17 US BLS CPI Index NSA May 237.9 237.6 237.1 06/17 UK ONS CPI MoM May -0.10% 0.20% 0.40% 06/17 UK ONS CPI YoY May 1.50% 1.70% 1.80% 06/17 UK ONS CPI Core YoY May 1.60% 1.70% 2.00% 06/17 UK ONS Retail Price Index May 255.9 256.2 255.7 06/17 UK ONS RPI MoM May 0.10% 0.20% 0.40% 06/17 UK ONS RPI YoY May 2.40% 2.50% 2.50% 06/17 UK ONS PPI Input NSA MoM May -0.90% -0.10% -0.90% 06/17 UK ONS PPI Input NSA YoY May -5.00% -4.30% -5.30% 06/17 UK ONS PPI Output NSA MoM May -0.10% 0.10% 0.10% 06/17 UK ONS PPI Output NSA YoY May 0.50% 0.70% 0.60% 06/17 UK ONS PPI Output Core NSA MoM May 0.00% 0.10% 0.00% 06/17 UK ONS PPI Output Core NSA YoY May 1.00% 1.10% 1.00% 06/17 UK ONS ONS House Price YoY April 9.90% 7.50% 8.00% 06/17 China NBS Foreign Direct Investment YoY May -6.70% 3.20% 3.40% 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 62.17% 54.77% 67,573,044.05 Non-Qatari 37.84% 45.23% (67,573,044.05)
  • 3. Page 3 of 7 News Qatar  Shura Council for taxing foreign stock investors – The Advisory Council is recommending taxing foreign stock investors on capital gains and income earned from cash dividends and interest on bonds, treasury bills and debentures. The Council rejected a proposal by the government to exempt foreign investors in the local equity market from paying the above tax. The State Cabinet had, on February 19, 2014, approved a draft law that sought to allow foreign stock investors, including individuals, corporates and institutions, the above exemption. The Cabinet had argued that the exemption would help increase the inflow of foreign funds into the Qatari equity market from individuals and institutions such as hedge, pension, investment and mutual funds. After it received the draft law from the State Cabinet, the Council referred it to its internal Financial and Economic Affairs Committee for review. The Committee approved the draft and sent it back to the Council, which took it up for a debate at its session recently. The Council objected to the Committee’s approval of the draft and asked it to take a fresh look at it and amend three articles. (Peninsula Qatar)  GDI bags QR1.28bn QP deal for Dukhan rig – Gulf Drilling International (GDI) – a subsidiary of Gulf International Services – has bagged a QR1.28bn five-year contract from Qatar Petroleum (QP) to provide offshore drilling rig services. The new rig ‘Dukhan’ will be delivered from Keppel Fels Shipyard in Singapore and would start work for QP during 4Q2014. The Dukhan rig was custom built for GDI with features that enable it to work anywhere in Qatar. It is a high specification hi-tech rig, which can accommodate 150 people. Meanwhile, GDI, with an issued share capital of QR739.6mn, is aiming to enhance its share of the offshore market to 50% by 2015. (Gulf-Times.com)  CBQK launches $750mn bond; pricing at tight end – The Commercial Bank of Qatar (CBQK) has launched a $750mn, five-year bond offer that will be priced later, expected to be priced at the tight end of guidance due to strong investor demand. The transaction is set to be priced at a spread of 117 basis points over mid-swaps, which is at the tight end of a revised range of 117-120 bps over the same benchmark given earlier. Pricing was revised twice, with the initial guidance given in the area of 135 basis points, before it was changed to 120- 125 basis points over the benchmark. Investor orders worth more than $3bn have been placed for the transaction. Bank of America-Merrill Lynch, HSBC and Morgan Stanley are arranging the bond sale. (Reuters)  Key project to provide logistics facility to private sector – The government has announced a key project that will provide the much-needed storage facility to small & medium-sized companies in the country’s private sector. Under this project, three vast stretches of land outside the city ranging between 498,000-517,000 square meters have been chosen to establish warehouses and other logistic facilities in Qatar. These land plots have been chosen in cooperation with the Ministry of Municipality & Urban Planning. Besides the open storage places, provision to keep chilled items will be made in this facility. We believe Gulf Warehousing (GWCS) could benefit from these plans. (Gulf-Times.com)  QAPCO makes reduction in flaring, water use, greenhouse emissions – Qatar Petrochemical Company’s (QAPCO) Vice Chairman & CEO Dr. Mohamed Yousef al-Mulla said that investment in environmental management projects has allowed the company to reduce its flaring by 80%, reduce greenhouse gas emissions by 20% and water consumption by 17%. His remarks were in the context of QAPCO’s 2013 Sustainability Report. This report is part of the company’s participation in the Qatar Energy & Industry Sustainable Development Industry Reporting Program under the patronage of HE the Minister of Energy & Industry, Dr. Mohamed bin Saleh al-Sada. QAPCO’s report aligns with the most widely used standard for sustainability reporting, the Global Reporting Initiative (GRI). QAPCO has adopted the newest GRI G4 guidelines and achieved a materiality matters certification from the GRI. (Gulf- Tiemes.com)  Demand for Qatar real estate drops in June second week – Demand for real estate was down in the second week of June 2014, having peaked at a record high a little earlier. Real estate transactions during June 8-12 involved small plots of land meant for housing, with deals totaling QR888.19mn. Among 145 transactions, 102 involved small plots. A house built over an area of 124 square meters was sold in Bin Omran locality of Doha for QR2.5mn. Similarly, a 237sqm house in the same locality was sold for QR2.2mn. In Najma, a house of 258 square meters was sold for QR3.2mn. (Peninsula Qatar)  Alfardan Automobiles, QIBK ink pact – Alfardan Automobiles, the official importer for BMW cars in Qatar, has signed an exclusive partnership with the Qatar Islamic Bank (QIBK) to provide Islamic finance solutions to their customers. Under this agreement, customers will benefit from Islamic financing solutions available across the entire BMW vehicle range. (Gulf- Times.com)  QE suspends trading of VFQS’ shares on June 18 – The Qatar Exchange (QE) has announced trading suspension of Vodafone Qatar’s (VFQS) shares on June 18, 2014 due to the company’s scheduled AGM on that day. (QE)  QA begins direct flights to Tokyo Haneda – Qatar Airways (QA) announced that it will launch direct flights to Tokyo Haneda International Airport from today, which will double its service to Tokyo to two flights a day. The route will be operated through a Boeing 787 Dreamliner, making it QA’s third destination in Japan, apart from Osaka and Tokyo Narita International Airport. Tokyo Haneda is one of two major airports that serve the Greater Tokyo area, which in 2012 handled more than 66 million passengers. With the commencement of flights to Tokyo Haneda, the number of flights to Japan rises from 14 to 21 each week. (Peninsula Qatar) International  US consumer prices show inflation ticking up – The US Labor Department said that the consumer price index rose 0.4% in May, recording the largest increase in more than a year as costs for a range of goods and services rose, which is likely to ease the Federal Reserve's concerns that inflation was running too low. Economists, who had expected consumer prices to rise only 0.2%, said the increase suggested a separate inflation gauge watched by the Fed also pushed higher in May, although it would still fall short of the central bank's 2% target. May's rise in consumer prices built on a 0.3% advance in April. With tensions escalating in Iraq, a major world oil producer, inflation is likely to push higher in the coming months. (Reuters)  China, UK pledge cooperation for growth after London talks – The UK Prime Minister David Cameron and his Chinese counterpart, Li Keqiang, agreed to work together to spur growth in their two countries after talks in London. Setting a target for $100bn trade by the end of next year, Li Keqiang said British technology could be deployed in China and harnessed with Chinese markets and labor to benefit both nations. Li Keqiang said the UK has advanced technology that can be married with
  • 4. Page 4 of 7 China’s vast markets, and by doing so we can create huge energy. Trade deals valued at £14bn were signed, as Li Keqiang’s visit confirmed the end of a three-year diplomatic freeze caused by arguments over human rights and Tibet. Among the 12 agreements, BP Plc signed a $20bn 20-year deal to supply liquefied natural gas to China National Offshore Oil Corp (CNOOC). Royal Dutch Shell Plc also signed an agreement with CNOOC on a global strategic alliance, as well as a short-term LNG supply contract. Other accords covered nuclear cooperation and infrastructure financing. (Bloomberg)  UK inflation falls in May, but house prices soar – British inflation slumped to a 4 1/2-year low last month but house prices surged in April, according to data from the Office for National Statistics (ONS). This data clouded the view for the Bank of England’s policymakers who are gauging Britain's economic recovery. The ONS stated that consumer price inflation dropped to 1.5% in May from 1.8% in April, its lowest since October 2009, after the first YoY fall in food prices since 2006. That undershot all forecasts in a Reuters poll of economists, who had expected 1.7% decline. However, separate data from the ONS showed house prices soared 9.9% in April, their biggest annual rise since June 2010, heightening concern that a bubble may be developing in the property market. (Reuters)  Citigroup buys $700mn Asia HQ in record deal – US-based global bank Citigroup will pay $699.86mn for its new Hong Kong headquarters, in the largest ever purchase of a single-block office building in the Asian financial hub. A unit of developer Wheelock & Co is building the twin One Bay East towers in Hong Kong's Kowloon district, with Citigroup taking the East Tower and insurer Manulife (International) already holding the West Tower. The 21-storey building will become Citigroup’s new hub for all its businesses in Hong Kong, where the US bank employs almost 5,000 people, making it the biggest employer among foreign banks in the city. Citigroup becomes the fourth major global bank to move its Hong Kong headquarters out of the city's increasingly expensive Central district, to the Kowloon area across the harbor. (ET)  BNP plans US expansion with 100 more wealth advisers – French bank BNP Paribas, facing a potential $10bn US penalty over its dealings with sanctioned countries, said it is sticking with a plan to expand its BancWest division. Co-head of wealth management at BNP Paribas, Sofia Merlo said that BancWest, which opened a private-banking flagship office in San Francisco less than two years ago, will hire around 100 wealth- management advisers through 2016. BancWest has about 10 private-banking centers, including offices in Los Angeles, Denver and Pasadena, California. (Bloomberg)  Bank of Spain warns of global risk with asset values at record highs – The Bank of Spain Governor Luis Linde said the global accommodative monetary policy and investor push for higher returns have become risky as asset valuations have soared to record highs. Linde said some valuations are at record highs in the context of a search for returns by investors, which is playing a predominant role over other considerations based in the fundamental value of the assets. This international monetary and financial market situation has risks, in that it is susceptible to sharp changes due to expectations of the removal of monetary stimulus. Regarding Spain's tax reform, Linde said proposals must improve efficiency without putting at risk the government's measures to balance the state's budget in the midst of an economic recovery. (Reuters)  Japanese exports decline in May; BoJ minutes reveal supply constraints – Exports from Japan fell in May 2014 for the first time in 15 months due to weak demand from the US and Asia, adding to challenges for Prime Minister Shinzo Abe as he tries to steer the economy through a forecasted contraction this quarter. Outbound shipments decreased 2.7% YoY in May, while imports dropped 3.6%, with the trade deficit narrowing to 909bn yen. Slowing demand from the US and China threatens to weigh on shipments, which are losing impetus as the yen’s slide against the dollar stalls. The shuttering of nuclear power plants after the 2011 Fukushima disaster has pushed up energy import costs, contributing to a record run of deficits – now at 23 months. Meanwhile, minutes of the central bank's May meeting showed that the Bank of Japan (BoJ) policymakers shared the view that supply constraints such as labor shortages had surfaced as a massive monetary stimulus increased demand. (Bloomberg, Reuters)  China home prices rise in fewest cities in 2 years – According to the National Bureau of Statistics, prices climbed in 15 of the 70 cities tracked by the government in May over April, which is the fewest since May 2012, as buyers remained reluctant to purchase in a slowing economy. Prices advanced in 44 cities in April MoM. China’s property industry – which is considered the biggest downside risk to the nation’s economy – faces a surplus of empty units amid falling prices. While the central bank called on the nation’s biggest lenders to accelerate the granting of mortgages last month, the government has refrained from broad-based easing of property restrictions imposed over the last four years to rein in prices. (Bloomberg) Regional  UAE, KSA sign bilateral deal on renewable energy – The UAE and Saudi Arabia have signed a bilateral agreement to strengthen cooperation in the field of renewable energy in order to improve the performance of the energy sector in both countries. The King Abdullah City for Atomic & Renewable Energy (KACARE) and the Abu Dhabi Future Energy Company (Masdar) signed the agreement, which aims to study opportunities for collaboration in research & development, joint projects in renewable energy, clean electricity projects and green technology investment funds. (GulfBase.com)  BCG: Qatar tops the world in millionaire density – According to a report by the Boston Consulting Group (BCG), Qatar has been ranked first in the world with the highest density of millionaires, with 17.5% holding private wealth of at least $1mn. Kuwait stood fifth with 9%, while Bahrain (5.9%) secured the sixth place. Oman and Saudi Arabia are ranked 10th and 13th, respectively. Qatar also ranks sixth globally in terms of ultra- high-net-worth (UHNW) households, defined as households with more than $100mn in private wealth. Kuwait is in the 7th place, while Bahrain holds the 16th spot. Saudi Arabia is the GCC country with the highest share of assets in 2013, with 51% of households in the $5-100mn band, and 7% in the above $100mn band. Similarly, the UAE had 51% and 5% respectively in these categories; while Kuwait had 39% and 3%. On a regional level, the report reveals that private financial wealth grew by 11.6% to reach $5.2tn in 2013. Key drivers were generally high saving rates and continued strong nominal GDP growth in oil-rich countries, such as Saudi Arabia (13.4%), Kuwait (13.6%) and the UAE (12.8%). (GulfBase.com)  Saudi central bank to maintain foreign reserve strategy – Saudi central bank Governor Fahad Al-Mubarak said that the bank will maintain its current strategy for managing the country's foreign reserves, indicating a continued emphasis on US dollar assets. The country's net foreign assets, swelled by high oil prices, are currently worth about $730bn, and have been growing at 9% annually. The central bank is believed to have
  • 5. Page 5 of 7 placed over half of that amount in conservative US dollar assets such as US Treasury bonds and bank accounts. (GulfBase.com)  Mobily launches Cloud Partnership Program – Etihad Etisalat Company (Mobily) has launched its first Cloud Partnership Program in the Middle East & Africa. The Mobily Cloud Partnership Program is the framework for collaboration between Mobily and its partners, which offers a wide range of benefits, trainings, certifications and awards. The program’s objective is to collaborate with leading IT solution and consulting players to take part together in the growing cloud services market. (GulfBase.com)  Al-Khodari Sons wins SR271.4mn contracts from Riyadh Municipality – Abdullah A. M. Al-Khodari Sons Company (Al- Khodari Sons) has signed two contracts worth SR125.5mn and SR145.87mn with the Ministry of Municipal & Rural Affairs (Riyadh Municipality). The scope of work includes the construction of storm water drainage network in Murooj, Massif and Nakhil Districts in Riyadh over 30 months from the date of site handing over, while the other contract is for cleaning of Hafr Al Batin for a period of 60 months. (Tadawul)  QTC wins $1.4mn order for traffic controllers – Australia- based Traffic Technologies’ subsidiary Quick Turn Circuits (QTC) has been awarded a $1.4mn order to supply traffic controllers to Saudi Arabia. QTC will supply traffic controllers, associated software and spare parts. The order will be delivered from late June 2014, with final deliveries to take place in early FY2015. (Bloomberg)  Saudi Aramco awards seismic contract to ARGAS – Saudi Aramco has awarded a three-year contract to Arabian Geophysical & Surveying Company (ARGAS) for an extensive, high-density land seismic program across Saudi Arabia. According to the contract, operations are expected to commence from 4Q2014 and will cover a variety of terrains across Saudi Arabia. CGG's equipment division, Sercel, will supply all the seismic equipment deployed on this survey program. ARGAS is a joint venture between Industrialization & Energy Services Company (TAQA) and Compagine Generale de Geophysiqu (CGG). (Bloomberg)  SIB expands its footprint in UAE – Sharjah Islamic Bank (SIB) has inaugurated its new branch in Jebel Ali, strengthening its presence on the local banking arena in the UAE. The opening of SIB’s fourth branch in Dubai brings the total number of SIB branches across the UAE to 32. The Jebel Ali branch will provide a wide range of banking services to both retail and corporate clients, including trade finance and corporate services. (GulfBase.com)  Seven & I to open 7-Eleven in Dubai in 2015 – Japan-based Seven & I Holdings Company will open a 7-Eleven in Dubai in the summer of 2015, expanding its vast convenience store franchise to the Middle East for the first time. The company is planning to open about 100 7-Eleven stores in the UAE by the end of 2017, adding to the 53,000 stores it currently has across 16 markets. (Reuters)  Nakheel seeks tenders for Deira project phase I – Nakheel is seeking construction tenders for the first phase of the Deira coast in Dubai, which involves plans for nine new beaches. Nakheel is seeking contractors to carry out coastal improvements at 21 kilometers of beaches including new breakwaters and quay walls on its Deira Islands project. Bids for the design and build contracts are due by August 14, 2014. (GulfBase.com)  DIP transfer, sub-leasing transactions surge 50% – Dubai Investments Park (DIP) said that the number of transactions for transfer and sub-leasing within the development have surged by more than 50% in 1Q2014. The number of transactions in March 2014 totaled to 367, while February recorded 376 and January recorded 260. The transaction value during the period totaled to AED280mn as compared to AED800mn during January to November 2013. The 2.8mn sq ft DIP Phase 8, which is being constructed in two stages, is expected to be a hub for logistics services as a significant portion of land has been allocated for this sector. (GulfBase.com)  Danube Group launches AED500mn residential project – Dubai-based Danube Group has entered into the real estate sector with the launch of its Danube Properties. The company unveiled its first residential project ‘Dreamz by Danube’ worth AED500mn, which will feature 175 three and four-bed townhouses at Al Furjan. The project construction will start soon, with the delivery scheduled for 2016. (Bloomberg)  ADDED: Abu Dhabi consumer confidence rises to 145 – According to the data by the Abu Dhabi Department of Economic Development (ADDED), consumer confidence in Abu Dhabi has risen to 145 points during 1Q2014 as compared to 128 points during 1Q2013. The index stood at 139 points during 4Q2013. The sub-index assessing people’s financial health increased to 127 points in 1Q2014, up from 106 points in 1Q2013. Economic confidence rose by about 19 points from 1Q2013 to reach 135 points in 1Q2014. The index measuring future expectations rose to 174 points, up by about 13 points from 1Q2013. (GulfBase.com)  RAK Bank prices debut $500mn bond – The National Bank of Ras Al Khaimah (RAK Bank) has launched its debut $500mn bond after tightening the bond pricing. The bank attracted orders worth over $1.5bn. The transaction, which has a lifespan of five years, carries a coupon of 3.25% and comes at a reoffer price of 99.275 and a spread of 160 basis points over mid-swaps against initial price thoughts of 170 bps. RAK Bank's bond is being issued through the special purpose vehicle Rakfunding Cayman Ltd, with the National Bank of Abu Dhabi and Standard Chartered arranging the sale. (Reuters)  URC inaugurates Abdali Boulevard in Amman – The United Real Estate Company (URC) has inaugurated Abdali Boulevard, a mixed-use project within the master development of the Abdali project, developed by the Abdali Boulevard Company (ABC). Abdali Boulevard is the largest integrated, mixed-use development in the booming new downtown of the city of Amman, Abdali. The $500mn project spans over 121,000 sq m and a gross land area of 25,540 sq m. Abdali Boulevard incorporates leisure and retail components including international restaurant chains, cafes and high street retail brands. The project also consists of office spaces and residential components such as serviced apartments. (GulfBase.com)  KCSB: Qatar makes largest FDI in Kuwait – According to Kuwait Central Statistical Bureau (KCSB), Qatar ranks first among the nations that have done foreign direct investment (FDI) in Kuwait, with total investments in 2012 topping KD1.9bn. FDI in Kuwait was divided among a number of sectors, with the telecom sector receiving KD1.8bn, followed by the investment sector getting KD597mn. (Bloomberg)  ACWA Power confirms 10-MIGD SWRO desalination expansion project – Oman-based ACWA Power Barka has confirmed that 10MIGD SWRO water expansion project has successfully completed the reliability test run and initial performance test recently. The expansion project is now producing and delivering the potable water to the national grid. (MSM)
  • 6. Page 6 of 7  Alba launches high-tech data center – Aluminium Bahrain (Alba) has launched a new state-of-the-art datacenter at calciner and marine plant. The new data center is a fifth generation containerized data center (CDC), and was designed in-house by Alba's information technology team. Built by HP, the data center was delivered and commissioned in December 2013. (GulfBase.com)
  • 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 sahbi.alkasraoui@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 QE Index S&P Pan Arab S&P GCC 0.5% (0.3%) (0.4%) (0.4%) (0.4%) (0.7%) 0.6% (1.2%) (0.6%) 0.0% 0.6% 1.2% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,270.65 (0.1) (0.5) 5.4 DJ Industrial 16,808.49 0.2 0.2 1.4 Silver/Ounce 19.75 0.4 0.3 1.4 S&P 500 1,941.99 0.2 0.3 5.1 Crude Oil (Brent)/Barrel (FM Future) 113.45 0.5 0.0 2.4 NASDAQ 100 4,337.23 0.4 0.6 3.8 Natural Gas (Henry Hub)/MMBtu 4.66 (0.7) (0.1) 7.4 STOXX 600 346.42 0.3 (0.2) 5.5 LPG Propane (Arab Gulf)/Ton 104.75 0.7 1.1 (17.2) DAX 9,920.32 0.4 0.1 3.9 LPG Butane (Arab Gulf)/Ton 125.00 1.8 1.7 (7.9) FTSE 100 6,766.77 0.2 (0.2) 0.3 Euro 1.35 (0.2) 0.1 (1.4) CAC 40 4,536.07 0.6 (0.2) 5.6 Yen 102.15 0.3 0.1 (3.0) Nikkei 14,975.97 0.3 (0.8) (8.1) GBP 1.70 (0.1) (0.0) 2.5 MSCI EM 1,043.53 (0.3) (0.5) 4.1 CHF 1.11 (0.2) 0.1 (0.7) SHANGHAI SE Composite 2,066.70 (0.9) (0.2) (2.3) AUD 0.93 (0.7) (0.7) 4.7 HANG SENG 23,203.59 (0.4) (0.5) (0.4) USD Index 80.63 0.2 0.1 0.7 BSE SENSEX 25,521.19 1.3 1.2 20.5 RUB 34.82 0.5 1.2 5.9 Bovespa 54,299.95 (0.6) (0.9) 5.4 BRL 0.44 (1.2) (1.7) 4.5 RTS 1,343.50 (1.1) (2.3) (6.9) 179.9 149.2 136.0

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