20 February Daily market report
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  • 1. QE Intra-Day Movement Market Indicators 11,920 11,900 11,880 11,860 19 Feb 14 %Chg. 764.3 623,914.0 19.0 6,415 40 23:14 955.6 620,136.9 20.5 6,570 39 25:10 (20.0) 0.6 (7.5) (2.4) 2.6 – Market Indices 11,840 11,820 9:30 20 Feb 14 Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QE index rose 0.4% to close at 11,872.4. Gains were led by the Consumer Goods & Services and Insurance indices, gaining 2.1% and 1.4% respectively. Top gainers were Gulf Warehousing Co. and Qatar General Ins. &Reins. Co., rising 5.3% and 5.2% respectively. Among the top losers, Al Khaleej Takaful Group fell 1.3%, while Ezdan Holding Group declined 1.1%. Close Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index 1D% WTD% YTD% TTM P/E 17,079.30 2,962.05 2,862.98 3,918.81 2,104.31 2,076.09 2,872.65 1,627.79 6,784.99 3,385.85 0.4 0.7 0.8 0.4 (0.2) 0.4 1.4 0.7 2.1 0.3 3.2 3.4 1.7 5.3 5.5 4.5 5.1 2.5 4.4 2.9 15.2 14.5 17.2 12.0 13.2 6.3 23.0 12.0 14.1 11.5 N/A 14.4 14.6 14.8 14.2 14.2 7.0 21.9 25.9 17.4 Vol. ‘000 GCC Commentary GCC Top Gainers## Exchange Close# 1D% Saudi Arabia: The TASI index rose 0.2% to close at 8,988.9. Gains were led by the Real Estate Dev. and Hotel & Tourism indices, rising 3.8% and 1.1% respectively. Saudi Marketing Co. rose 10.0%, while Jabal Omar was up 6.6%. Abu Dhabi Nat. Ins. Co. Abu Dhabi 6.50 12.1 100.0 10.2 Arab Banking Corp. Bahrain 0.48 9.1 19.0 28.0 Dubai: The DFM index gained 0.7% to close at 4,182.9. The Real Estate & Construction. index rose 1.2%, while the Fin. & Invest. Services index was up 0.9%. Nat. Gen. Ins. Co. gained 11.1%, while Arab Ins. Group was up 4.3%. Jabal Omar Dev. Co. Saudi Arabia 37.00 6.6 17,861.7 26.7 Combined Group Cont. Kuwait 1.20 5.3 3.0 (6.3) Abu Dhabi: The ADX benchmark index rose 0.6% to close at 4,914.7. The Industrial index gained 3.2%, while the Insurance index was up 3.0%. Arkan Building Mat. Co. surged 12.9%, while Abu Dhabi Nat. Ins. Co. was up 12.1%. Gulf Warehousing Co. Qatar 42.10 5.3 29.8 1.4 GCC Top Losers Exchange Kuwait: The KSE index fell 0.8% to close at 7,737.5. The Consumer Services index declined 1.3%, while Telecommunication index was down 1.0%.Flex Resorts & Real Estate fell 10.5%, while Zima Holding Co. was down 10.3%. NBQ Abu Dhabi 3.40 (6.1) 111.4 3.0 IFA Hotels & Resorts Kuwait 0.25 (3.8) 32.7 (12.3) Oman: The MSM index declined 0.3% to close at 7,166.7. Losses were led by the Financial and Industrial indices, falling 0.3% each. National Gas declined 8.8%, while National Securities was down 4.1%. Ajman Bank Dubai 3.21 (2.7) 2,059.1 29.4 Ahli United Bank Kuwait 0.73 (2.7) 985.4 1.4 National Investments Kuwait 0.15 (2.6) 143.7 (5.0) Bahrain: The BHB index gained 0.6% to close at 1,365.9. The Investment index rose 2.7%, while other indices remained unchanged or ended in red. Khaleeji Com. Bank gained 9.3%, while Arab Banking Corp. was up 9.1%. ## # Close 1D% Vol. ‘000 YTD% YTD% 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) Gulf Warehousing Co. Close* 1D% Vol. ‘000 YTD% Close* 1D% Vol. ‘000 42.10 Qatar Exchange Top Gainers 5.3 29.8 1.4 Al Khaleej Takaful Group 38.70 (1.3) 142.2 6.0 Ezdan Holding Group 16.80 (1.1) 16.1 (1.2) 9.2 Qatar Exchange Top Losers YTD% Qatar General Ins. &Reins. Co. 49.55 5.2 1.0 3.4 Al Ahli Bank 67.10 3.9 7.2 22.0 Qatar Gas Transport Co. 22.11 (1.1) 1,458.1 329.00 3.1 75.0 15.8 Qatar Industrial Manufacturing Co. 52.00 (1.0) 74.8 2.8 15.11 2.4 202.0 0.7 Qatar & Oman Investment Co. 12.40 (0.7) 66.5 (1.0) Close* 1D% Val. ‘000 YTD% 32.60 0.9 140,396.2 9.4 Qatar Fuel Co. Aamal Co. Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 12.46 0.6 5,556.3 16.3 Barwa Real Estate Co. 32.60 0.9 4,299.0 9.4 QNB Group 195.00 1.3 89,141.3 13.4 Qatar Gas Transport Co. 22.11 (1.1) 1,458.1 9.2 Industries Qatar 194.00 0.2 86,916.1 14.9 Masraf Al Rayan 39.05 0.0 914.1 24.8 Vodafone Qatar 12.46 0.6 69,379.5 16.3 Salam International Investment Co. 14.12 0.1 681.6 8.5 Masraf Al Rayan 39.05 0.0 35,884.5 24.8 Qatar Exchange Top Vol. Trades Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain Barwa Real Estate Co. Source: Bloomberg (* in QR) Source: Bloomberg (* in QR) Regional Indices Qatar Exchange Top Val. Trades Close 1D% WTD% MTD% YTD% 11,872.40 4,182.87 4,914.69 8,988.87 7,737.49 7,166.67 1,365.85 0.4 0.7 0.6 0.2 (0.8) (0.3) 0.6 3.1 2.1 0.5 0.7 (1.3) (0.1) 3.6 6.4 10.9 5.2 2.6 (0.2) 1.1 5.5 14.4 24.1 14.6 5.3 2.5 4.9 9.4 Exch. Val. Traded ($ mn) 209.89 412.55 164.95 963.33 83.77 19.70 6.72 Exchange Mkt. Cap. ($ mn) 171,326.8 84,069.7 136,193.1 492,000.0 112,387.9 25,628.6 51,595.7 P/E** P/B** 15.2 17.9 13.3 18.0 16.1 11.1 9.6 2.0 1.6 1.7 2.2 1.2 1.6 0.9 Dividend Yield 3.9 2.0 3.7 3.3 3.7 3.6 3.5 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 6
  • 2. Qatar Market Commentary  The QE index rose 0.4% to close at 11,872.4. The Consumer Goods & Services and Insurance indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders. Overall Activity Sell %* Net (QR) Qatari 66.24% 71.46% (39,908,417.70) Non-Qatari  Gulf Warehousing Co. and Qatar General Ins. &Reins. Co. were the top gainers, rising 5.3% and 5.2% respectively. Among the top losers, Al Khaleej Takaful Group fell 1.3%, while Ezdan Holding Group declined 1.1% Buy %* 33.76% 28.54% 39,908,417.70 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Thursday fell by 7.5% to 19.0mn from 20.5mn on Wednesday. However, as compared to the 30day moving average of 12.7mn, volume for the day was 49.7% higher. Vodafone Qatar and Barwa Real Estate Co. were the most active stocks, contributing 29.3% and 22.6% to the total volume respectively. Earnings and Global Economic Data Earnings Releases Company Revenue (mn) 4Q2013 % Change YoY Operating Profit (mn) 4Q2013 % Change YoY Net Profit (mn) 4Q2013 % Change YoY SR – – 26.6 -57.4% 13.1 -75.1% Saudi SR 3,097.8 41.3% – – 20.0 98.5% Dubai AED 0.2 -47.6% – – 0.4 NA Abu Dhabi AED – – 16.0 19.5% -4.7 NA Oman OMR 109.0 211.6% – – 1.7 239.1% Bahrain BHD 12.9 23.5% – – 13.1 6.1% Market Al Sorayai Trading and Industrial Group Co. (ATIG)* Bupa Arabia For Cooperative Insurance* Dubai Development Co. (DDC)* Green Crescent Insurance Co. (GCIC)* National Gas Co. (NGC)* Bahrain Commercial Facilities Co. (BCFC)* Currency Saudi Source: Company data, DFM, ADX, MSM Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 02/20 US BLS CPI MoM January 0.10% 0.10% 0.20% 02/20 US BLS CPI Ex Food and Energy MoM January 0.10% 0.10% 0.10% 02/20 US BLS CPI YoY January 1.60% 1.60% 1.50% 02/20 US BLS CPI Ex Food and Energy YoY January 1.60% 1.60% 1.70% 02/20 US BLS CPI Core Index SA January 02/20 US BLS CPI Index NSA January 235.8 233.916 235.9 233.77 233.05 02/20 US Bloomberg Indices Markit US PMI Preliminary February 56.7 53.6 53.7 02/20 US Bloomberg Bloomberg Economic Expectations February -3 – -5 02/20 US Bloomberg Bloomberg Consumer Comfort 16-February -30.6 – -30.7 02/20 US MBA MBA Mortgage Foreclosures 4Q2013 2.86% – 3.08% 02/21 US NAR Existing Home Sales January 4.62M 4.67M 4.87M 02/21 US NAR Existing Home Sales MoM January -5.10% -4.10% 0.80% 02/20 EU Markit PMI Manufacturing February 53 54 54 02/20 EU Markit PMI Services February 51.7 51.9 51.6 02/20 EU Markit PMI Composite February 52.7 53.1 52.9 02/20 EU European Commission Consumer Confidence February -12.7 -11 -11.7 02/20 France INSEE CPI EU Harmonized MoM January -0.60% -0.50% 0.40% 02/20 France INSEE CPI EU Harmonized YoY January 0.80% 0.90% 0.80% 02/20 France INSEE CPI MoM January -0.60% -0.40% 0.30% 02/20 France INSEE CPI YoY January 0.70% 0.80% 0.70% 02/20 France Markit PMI Manufacturing February 48.5 49.5 49.3 02/20 France Markit PMI Services February 46.9 49.4 48.9 02/20 Germany Destatis PPI MoM January -0.10% 0.20% 0.10% 02/20 Germany Destatis PPI YoY January -1.10% -0.80% -0.50% 02/20 Germany Markit PMI Manufacturing February 54.7 56.3 56.5 02/20 Germany Markit PMI Services February 55.4 53.4 53.1 02/21 UK ONS Retail Sales Incl. Auto MoM January -1.50% -1.00% 2.50% 02/21 UK ONS Retail Sales Incl. Auto YoY January 4.30% 5.00% 235.5 5.30% Page 2 of 6
  • 3. 02/21 UK ONS Public Finances (PSNCR) January -25.4B -31.0B 02/21 UK ONS Public Sector Net Borrowing January -6.4B -9.1B 9.1B 9.0B 02/20 Italy ISTAT Industrial Sales MoM December -0.30% – 0.90% 02/20 Italy ISTAT Industrial Sales WDA YoY December -0.60% – 0.40% 02/20 Italy ISTAT Industrial Orders MoM December -4.90% – 2.10% 02/20 Italy ISTAT Industrial Orders NSA YoY December 1.90% – 3.00% 02/21 Italy ISTAT CPI FOI Index Ex Tobacco January 107.3 – 107.1 02/21 Italy ISTAT CPI EU Harmonized YoY January 0.60% 0.60% 0.70% 02/20 China Markit HSBC/Markit Flash Mfg PMI February 48.3 49.5 49.5 02/20 Japan Ministry of Finance Exports YoY January 9.5 12.7 15.3 02/20 Japan Ministry of Finance Imports YoY January 25 22.7 24.7 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) *(FY2013) News Qatar  AHCS reports QR266.5mn net profit in 4Q2013 - Aamal Company (AHCS) reported a net profit of QR266.5mn in 4Q2013, up by 149.9% vs. QR106.7mn for 3Q2013. The primary reason for this growth was net fair value gains on investment properties which jumped to QR245.1mn at the end of 2013 vs. QR50.8mn in first nine-months of 2013. For FY2013 revenue reached QR2,122.6mn, reflecting an increase of 2.6% as compared to QR2,069.3mn in 2012. Overall, the company's FY2013 net profit decreased by 14.8% YoY to QR506.9mn. Meanwhile, AHCS' board recommended to transfer the profits of the year to the retained earnings. Additionally, the company's AGM will be held on April 6, 2014. (QE)  WDAM posts net profit of QR54.9mn in 2013 – Widam Food Company (previously Mawashi) has posted a net profit of QR54.9mn in 2013 versus QR75mn in 2012. Earnings per Share (EPS) amounted to QR3.05 in 2013 compared to QR4.17 in 2012. The Board has recommended cash dividends of QR 2.10 per share (QE).  MRDS postpones results for FY2013 – Mazaya Qatar Real Estate Development Company (MRDS) announced that the date for approving MRDS‟ annual financial statements for FY2013 has been postponed. (QE)  Trading suspension in KCBK’s shares on February 23 – The Qatar Exchange (QE) announced a trading suspension in Al Khalij Commercial Bank‟s (KCBK) shares on February 23, 2014 due to the company‟s AGM and EGM being held today. (QE)  QNB bags 6 trophies in London Euromoney awards – QNB Group took home six trophies during the recent Annual Euromoney Private Banking Awards in London. QNB dominated other finance institutions in the following categories: „best overall private banking service‟, „best range of advisory service‟, „best net-worth specific services for super-affluent clients‟, „best fixed income portfolio management‟, „best real estate investment‟ and best private equity investment‟. Euromoney based its performance review on a comprehensive set of qualitative and quantitative criteria across a range of measures where QNB consistently posted high scores. The six awards, along with QNB‟s impressive performance in private banking, showcase the lender‟s proficiency in catering to the diverse needs of its growing client base. (Gulf-Times.com)  Qatari real estate market to double in 2014 – The real estate sector in Qatar is witnessing unprecedented growth due to the award of contracts for mega infrastructure projects like Qatar Rail. The value of real estate transactions jumped 71.4% to QR4.8bn in January 2014 as compared to QR2.8bn in January 2013. According to industry experts, the size of Qatar‟s real estate market is expected to double by the end of 2014. Further, industry analysts suggest that the growth trend will continue over the next several years as a result of massive government investments in the country‟s infrastructure development due to the 2022 World Cup-related projects. (Peninsula Qatar) International  G20 aspires for faster global growth – The world's top economies are on the verge of adopting a soft target of adding an extra 2% points to global growth over five years at their meeting in Sydney, signaling optimism that the worst of crisisera austerity was behind them. The deal is set to come as the Group 20 finance ministers and central bankers struggle with the impact of the Federal Reserve's tapering of its monetary stimulus on emerging markets, while giving developing nations a greater say in the International Monetary Fund. A G20 official said the group is likely to agree on reforms and polices that could increase growth by 2% on top of the current trajectory in five years. (Reuters)  ECB: weak inflation extending into mid-term – The European Central Bank‟s (ECB) policymaker Peter Praet said the weakness in the Eurozone price pressure is extending into the medium-term, the time horizon that ECB looks at when deciding on policy. Praet said, if ECB‟s mandate is at risk, it will act without hesitation. The ECB's mandate is to deliver price stability, which it defines as having inflation at around 2% over the medium-term, but the Eurozone inflation is currently at just 0.7%. Praet added that ECB does not see a risk of deflation, but admits that the pressures on prices are weak, and that this weakness in price development is extending to the mediumterm. (Reuters)  Oil Movements: OPEC exports to slide from 7 year high – Oil Movements stated that the OPEC is poised to cut its crude shipments from the highest levels in more than 7 years as refinery maintenance programs curb demand. The group‟s shipments in the four weeks to March 8 are set to decrease to 24.06mn bpd, from 24.74mn bpd in the same period to March 1. Cargoes are still higher as compared to the four weeks to Feb. 8, when they averaged 23.84mn bpd. (Bloomberg) Regional  QNB: Qatar banks lead assets, loan growth in GCC – The GCC banking sector grew robustly in 2013, driven by large government-led infrastructure and investment projects, with Qatar leading the pack. Most banks in the GCC have healthy funding profiles, with sound, high-quality assets in recent years. QNB Group expects this to enable them to continue to exhibit healthy credit growth funded by high domestic liquidity. Looking forward, QNB Group expects the GCC banking system to grow Page 3 of 6
  • 4. robustly as major projects are rolled out across the region, driving real GDP growth of 4.6% this year. The GCC‟s traditional strengths of strong fiscal positions and persistent currentaccount surpluses are likely to support the banking sector. GCC banks have adequate liquidity buffers based on the highly liquid local deposit base (customer deposits grew by around 11% in 2013). In Qatar, higher lending associated with large infrastructure projects, a low cost of funding and foreign acquisitions have all supported banks‟ growth. Loan growth in Qatar was 23% in 2013. With the acceleration of investment projects ahead of the 2022 FIFA World Cup, these trends are likely to continue going forward. Meanwhile, deposit growth continued at a rapid pace, rising by around 24% in 2013, with the public sector being the key driver for overall gains, reflecting the large fiscal surplus. Higher lending, a low cost base and low provisioning requirements have all supported the banks‟ overall profitability, with a return on equity of 16.0% in 2013. Looking ahead, the GCC‟s positive economic growth outlook, supported by high hydrocarbon prices and strong government spending, is expected to support the continued expansion of the regional banking sector, with Qatar leading the way. (QNB Group)  NCB successfully places SR5bn Tier II Sukuk issuance – The National Commercial Bank (NCB) has successfully placed its SR5bn 10 non-call five-year subordinated Tier II capital Sukuk offering. This is the largest issuance by a financial institution in the Kingdom and the largest ever subordinated debt instrument issued by a financial institution in the MENA region. The order book was oversubscribed 2.1 times to SAR8.4bn from 26 investors, exceeding the initial issuance target of SR4bn. This allowed the transaction to be upsized to SR5bn without impacting the final pricing of the Sukuk. HSBC Saudi Arabia acted as a lead coordinator, while GIB Capital, HSBC Saudi Arabia, JP Morgan Saudi Arabia and NCB Capital acted as joint lead managers and joint bookrunners. (GulfBase.com)  Saudia secures SR7bn loan to buy aircraft – Saudi Arabian Airlines‟ (Saudia) Director General, Khalid bin Abdullah Al Molhem said that the company has secured a loan worth SR7bn ($1.9bn) from a consortium of banks led by Samba Financial Group. The loan will finance the company‟s growth plans including the delivery of the next 17 aircraft. (GulfBase.com)  Kingdom awards SR362mn contracts for water, sewage projects – The Saudi Minister of Water & Electricity, Abdullah Al-Hussayen, has signed 24 contracts worth more than SR362mn for the implementation of a number of water and sewage projects in Kingdom. The first few contracts are for the implementation of water & sewage network projects in Riyadh, Qasim and Hail regions, with implementation periods of 36, 30, and 24 months, respectively. (GulfBase.com)  PwC: Kingdom shows largest rise in ESCAPE index – According to a report by PwC, Saudi Arabia has got the highest rise in PwC's new ESCAPE index, rising 14 places between 2000 and 2012 to reach the 12th rank. John Hawksworth, Chief Economist at PwC said that Saudi Arabia, Malaysia, China and Chile led the way among emerging markets in PwC's 2012 ESCAPE index rankings. These countries are escaping from the middle income trap and graduating to become full members of the advanced economy club. The new PwC ESCAPE index provides a holistic measure of a country‟s progress over time. The index covers five dimensions such as: economic growth, social progress, communications technology, political and regulatory institutions and environmental sustainability. (GulfBase.com)  IDAC, Merieux form food safety JV – Merieux NutriSciences Corporation has acquired an equity position in Saudi-based Inspection, Diagnosis & Analysis Lab Company (IDAC). The joint venture will operate under the new name „IDAC Silliker‟ and expand its service portfolio to meet rising demand from clients that face increased challenges in food safety and quality. Silliker is the food safety division of Merieux NutriSciences. Together, IDAC and Merieux NutriSciences will develop, around the analytical capabilities of IDAC, and offer a comprehensive range of solutions for clients in the food industry. (GulfBase.com)  Saudi CMA approves Riyad Bank’s capital increase – The Saudi CMA‟s board has approved the Riyad Bank‟s request to increase its capital from SR15bn to SR30bn by issuing one bonus share for every existing share. This increase will be paid by transferring SR14,328,375,781 from the statutory reserve account and SR671,624,219 from the retained earnings account to the bank‟s capital. Consequently, the bank‟s outstanding shares will increase from 1,500mn to 3,000mn shares. The bonus shares eligibility is limited to those shareholders who are registered at the close of trading on the day of the extraordinary general assembly, which will be determined later. (Tadawul)  Tadawul deposits SEC’s Sukuk IPO – The Saudi Stock Exchange (Tadawul) has announced that the IPO shares of the Sukuk issued by the Saudi Electricity Company (fourth issuance) have been deposited into applicable investors‟ portfolios on February 20, 2014. (Tadawul)  ASLAK to raise capital to SR438.75mn by bonus shares – The United Wire Factories Company‟s (ASLAK) board has recommended a capital increase of 12.5% by issuing bonus shares. The company‟s capital will be raised from SR390mn to SR438.75mn through the issue of one bonus share for every eight existing shares. The increase will be carried out through the capitalization of SR48.75mn from the retained earnings account. Consequently, the company‟s shares will increase from 39mn shares to 43.87mn shares. Eligibility of bonus shares is limited to those shareholders who are registered in the Securities Depository Center at the close of trading on the day of the EGM, which will be determined later. (Tadawul)  City Cement declares SR47.3mn dividend for 4Q2013 – The City Cement Company‟s board of directors has recommended the distribution of dividends worth SR47,300,000 to its shareholders for 4Q2013. The dividend per share will be SR0.25, representing 2.5% of the face value. Those shareholders who are registered with the Securities Depository Center on the day of the general assembly will be eligible for this dividend (to be announced later). (Tadawul)  RSH’s unit to build SR75mn houses in Papua New Guinea – The Red Sea Housing Services Company‟s (RSH) subsidiary has signed a Letter of Acceptance with the Government of Papua New Guinea to construct housing units for Bomana Police Housing Estate in Port Moresby. The housing project worth SR75mn includes the construction of 150 units on 70,000 square meters of land. The project will commence immediately after the signing the final agreement, which is expected to take place in two weeks. The financial impact of this project will be reflected on the company‟s financial statements during 1Q2014 and it will be financed through existing cash flows and banking facilities. (Tadawul)  UAE budget touches AED140bn in third session of 20142016 – The UAE Minister of Finance HH Sheikh Hamdan bin Rashid Al Maktoum announced that the estimated value of the third session of the UAE's 2014-2016 budget has touched AED140bn. This figure was 15% higher as compared to the estimated value of the second session of budget 2011-2013, which amounted to AED122bn. Sheikh Hamdan said the general budget for FY2014 – which is the first year budget in the third Page 4 of 6
  • 5. session plan of the 2014-2016 budget – stood at about AED46.2bn rising AED1.6bn as compared to the last year, when the total estimated revenues and expenses were of the same value and without deficit. (Bloomberg)  GGICO sells its shares in RAI, RAL – Gulf General Investments Company (GGICO) has sold and transferred its 50% shares in Retail Arabia International (RAI) and 50% shares in Retail Arabia Limited (RAL) at a value of AED135mn. (DFM)  Fitch: Abu Dhabi’s economy to grow at 4-5% till 2015 – According to Fitch Ratings, Abu Dhabi‟s economy is expected to grow at 4-5% a year through 2015 amid stable oil prices and heavy government spending on major projects. Fitch‟s GDP forecast compares with a prediction by the IMF that the UAE economy as a whole would grow 3.9% this year. Further, the ratings agency also affirmed the Emirate‟s AA rating with a stable outlook. The AA rating puts Abu Dhabi in the same basket as New Zealand, Belgium and Kuwait. Fitch said that factors that could propel Abu Dhabi into the top tier are reduction in the economy‟s dependence on oil and improvement in transparency on key data such as its external balance sheet. (Bloomberg)  ADIA records 14.5% rise in passenger traffic in January – Passenger traffic at the Abu Dhabi International Airport (ADIA) increased by 14.5% to 1,564,266 in January 2014 from 1,366,433 in January 2013. The top five routes from the airport during this month were: Bangkok, Jeddah, Doha, Manila and London. (Bloomberg)  Kuwaiti MoF undertakes tax projects - The Kuwaiti Ministry of Finance (MoF) has undertaken two projects - sales tax and corporate income tax - to apply the new tax system in Kuwait. The total cost of the two projects is estimated at KD35mn, with sales tax project estimated at KD15.68mn and corporate income tax project estimated at KD19.25mn. (GulfBase.com)  KIPCO’s BoD recommends 25% dividend – Kuwait Projects Company‟s (KIPCO) board of directors has recommended a 20% cash dividend (i.e. 20 fils per share) and a 5% stock dividend. (GulfBase.com)  Oman's oil production to rise in 2014 – According to the Undersecretary of the Omani Ministry of Oil & Gas (MOG), Eng. Salim bin Nasser al-Oufi, the crude oil production in Oman is expected to be in the range of 940,000-950,000 bpd at the end of 2014 due to the favorable results achieved by the end of 2013. The country‟s gas production currently stands at 80mn cubic meters and an additional 5-7 million cubic meters is imported from the Dolphin project to cover domestic needs. The ministry is expected to sign six drilling & exploration contracts in 2014 in open areas and offer some other areas for marketing. (Bloomberg)  SMC signs OMR1.1mn storage deal with Al Gharbia – Salalah Mills Company (SMC) has signed a contract worth OMR1.1mn with Al Gharbia Enterprises to set the silos within a period of 120 days and wheat cleaning & receiving tower foundation. With this, the company will expand its wheat storage capacity by 12 steel silos having a grain capacity of 120,000MT. The silo project has capacity to meet the company‟s production requirement of 1,500MT per day. With the completion of this project, SMC‟s total storage capacity will increase to 160,000 MT, which will meet its four months‟ production requirement. (GulfBase.com) agreement is part of OAMC's efforts to operate the new airports with the highest level of sophistication. (GulfBase.com)  DBCI’s BoD proposes 8.5% cash dividends – Dhofar Beverages & Foodstuff Company‟s (DBCI) board of directors has proposed the distribution of 8.5% cash dividends to the shareholders. (MSM)  SPC’s BoD proposes 11% cash dividends for 2013 – Sohar Power Company‟s (SPC) board of directors has proposed the distribution of 11% final cash dividends (110 baizas per share) for FY2013. Those shareholders who are registered with the Muscat Clearance & Depository Company on the date of the AGM will be eligible for these dividends. Further, the board plans to recommend the forthcoming AGM to authorize it to distribute interim dividends for 1H2014 subject to a ceiling of 15% (150 baizas per share), out of the company‟s available retained earnings. (MSM)  ABDIH to sell stake in subsidiary – Al Batinah Development & Investment Holding Company‟s (ABDIH) board has decided to accept an offer from some of its investors to buy a stake in the parent company in one of its subsidiaries. This is part of the company‟s strategy to restructure investments in its subsidiaries. The sales will bring profits for the parent company during the year ended December 31, 2014 and will provide liquid cash, which will have a positive effect on future performance. (MSM)  Bahrain to build $1.6mn infrastructure – Bahrain will help build $1.6mn worth of infrastructure in the form of 500 housing units and two vocational complexes for sports in Tacloban and Subic Bay Freeport in the Philippines. Sheikh Nasser bin Hamad Al Khalifa stated this during the signing between the two countries as part of their humanitarian program to help survivors of Typhoon Yolanda. According to the Philippine National Red Cross Chairman Richard Gordon, this is the first agreement between Bahrain Red Crescent Society and the Philippine National Red Cross. Prince Al Khalifa said that his participation in the Challenge Philippines Triathlon is a great chance for him to help the Filipino survivors in Tacloban. (Peninsula Qatar)  Batelco to take control of Qnet – The Bahrain Telecommunications Company (Batelco) announced that it has entered into a share purchase agreement with Ali AlGhanim & Sons to acquire 46% shareholding in Kuwait‟s Qualitynet (Qnet) for an undisclosed fee. This will increase Batelco‟s holding in Qnet from the current 44% to 90%. The deal is expected to be completed in March 2014. (Bahrain Bourse)  BHOTEL’s BoD recommends 40% cash dividends – Gulf Hotels Group‟s (BHOTEL) board of directors has recommended the distribution of 40% cash dividends, i.e. 40 fils per share, to its shareholders. (Bahrain Bourse)  BCFC’s BoD recommends 40% cash dividend – Bahrain Commercial Facilities Company‟s (BCFC) board has recommended the distribution of 40% cash dividends, i.e. 40 fils per share, to its shareholders. (Bahrain Bourse)  BTC’s BoD recommends 15% cash dividends – The Bahrain Tourism Company‟s (BTC) board of directors has recommended the distribution of 15% cash dividends, i.e. 15 fils per share, to its shareholders. (Bahrain Bourse)  OAMC, JCDecaux sign ad deal – Oman Airports Management Company (OAMC) has signed a concession contract with JCDecaux to manage advertising spaces in the Muscat International and Salalah airports for the next 10 years. The Page 5 of 6
  • 6. Rebased Performance Daily Index Performance 180.0 170.0 160.0 150.0 140.0 130.0 120.0 110.0 100.0 90.0 80.0 0.2% 0.7% Dubai 131.2 0.4% 0.6% 0.6% 0.4% Abu Dhabi 144.1 0.8% 0.0% (0.4%) (0.3%) (0.8%) QE Index Oct-12 May-13 S&P Pan Arab Dec-13 S&P GCC Source: Bloomberg Asset/Currency Performance Gold/Ounce Silver/Ounce Crude Oil (Brent)/Barrel (FM Future) Natural Gas (Henry Hub)/MMBtu North American Spot LPG Propane Price North American Spot LPG Normal Butane Price Euro Source: Bloomberg Close ($) 1D% WTD% YTD% 1,324.28 0.1 0.4 9.8 21.85 0.1 1.7 12.2 109.85 (0.4) 0.7 6.21 4.6 135.38 Global Indices Performance Close 1D% WTD% YTD% 16,103.30 (0.2) (0.3) (2.9) S&P 500 1,836.25 (0.2) (0.1) (0.7) (0.9) NASDAQ 100 4,263.41 (0.1) 0.5 2.1 12.3 43.1 STOXX 600 336.09 0.4 0.8 2.4 (3.3) (12.7) 7.2 DAX 9,656.95 0.4 (0.1) 1.1 134.63 (1.6) (2.8) (1.4) FTSE 100 6,838.06 0.4 2.6 1.3 4,381.06 0.6 0.9 2.0 14,865.67 2.9 3.9 (8.8) DJ Industrial 1.37 0.2 0.4 0.0 102.51 0.2 0.7 (2.7) GBP 1.66 (0.2) (0.8) 0.4 MSCI EM CHF 1.13 0.2 0.6 0.6 SHANGHAI SE Composite AUD 0.90 (0.3) (0.6) 0.7 USD Index 80.24 (0.1) 0.1 RUB 35.53 (0.7) 1.0 BRL 0.43 1.0 1.7 0.7 Yen Oman Mar-12 Bahrain Aug-11 Kuwait Jan-11 (0.8%) Qatar (1.2%) Saudi Arabia Jun-10 1.2% 170.6 CAC 40 Nikkei 959.26 0.9 0.2 (4.3) 2,113.69 (1.2) (0.1) (0.1) HANG SENG 22,568.24 0.8 1.2 (3.2) 0.3 BSE SENSEX 20,700.75 0.8 1.6 (2.2) 8.1 Bovespa 47,380.24 0.2 (1.7) (8.0) 1,315.54 1.0 (2.1) (8.8) Source: Bloomberg RTS Source: Bloomberg Contacts Saugata Sarkar Ahmed M. Shehada Keith Whitney Sahbi Kasraoui Head of Research Head of Trading Head of Sales Manager - HNWI Tel: (+974) 4476 6534 Tel: (+974) 4476 6535 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 saugata.sarkar@qnbfs.com.qa ahmed.shehada@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 6 of 6