25 August Daily Market Report


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25 August Daily Market Report

  1. 1. Page 1 of 4 QE Intra-Day Movement Qatar Commentary The QE index declined 0.3% to close at 10,078.8. Losses were led by the Transportation and Banking & Financial Services indices, declining 1.1% and 0.5% respectively. Top losers were Zad Holding Co. and Gulf International Services, falling 2.4% and 2.0% respectively. Among the top gainers, Qatar Cinema & Film Dist. rose 9.6%, while Qatar National Cement Co. gained 3.8%. GCC Commentary Saudi Arabia: The TASI index fell 0.8% to close at 8,129.9. Losses were led by the Media & Pub. and Agri. & Food Ind. indices, declining 3.0% and 1.6% respectively. WAFA Ins. fell 9.9%, while Aljazira Takaful was down 7.2%. Dubai: The DFM index gained 1.8% to close at 2,748.3. The Industrial index rose 14.8%, while the Services index was up 4.5%. Union Properties and Deyaar Development surged 14.9% each. Abu Dhabi: The ADX benchmark index rose 0.3% to close at 3,959.3. The Energy index gained 2.2%, while the Consumer index was up 1.2%. RAK Properties rose 13.6%, while Union Cement Co. was up 9.1%. Kuwait: The KSE index declined 0.4% to close at 8,074.3. The Consumer Services index fell 1.8%, while the Basic Material index was down 0.9%. IFA Hotels & Resorts declined 15.2%, while Kuwait Cable Vision was down 8.9%. Oman: The MSM index rose 0.2% to close at 6,915.2. Gains were led by the Bank. & Inv. and Ser. & Ins. indices, rising 0.3% and 0.1% respectively. Global Financial Investment rose 5.4%, while National Mineral Water was up 5.3%. Bahrain: The BHB index declined 0.2% to close at 1,200.8. The Commercial Banking index fell 0.4%, while the Services index was down marginally. Nass Corporation declined 3.1%, while Al Salam Bank was down 2.0%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar Cinema & Film Dist. Co. 54.90 9.6 1.0 (3.5) Qatar National Cement Co. 104.40 3.8 16.0 (2.4) Mannai Corp 88.00 3.5 0.1 8.6 Doha Insurance Co. 26.20 2.8 389.6 6.7 Ezdan Holding Group 18.25 2.5 388.5 0.3 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 11.91 (1.6) 440.4 8.3 Doha Insurance Co. 26.20 2.8 389.6 6.7 Ezdan Holding Group 18.25 2.5 388.5 0.3 Qatar Insurance Co. 61.30 0.5 285.3 13.6 Vodafone Qatar 9.38 0.1 205.7 12.3 Market Indicators 25 Aug 13 22 Aug 13 %Chg. Value Traded (QR mn) 185.4 444.4 (58.3) Exch. Market Cap. (QR mn) 550,548.2 550,484.7 0.0 Volume (mn) 4.2 10.0 (57.5) Number of Transactions 2,512 5,156 (51.3) Companies Traded 41 41 0.0 Market Breadth 24:16 20:16 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 14,400.26 (0.3) (0.3) 27.3 N/A All Share Index 2,534.75 (0.2) (0.2) 25.8 13.4 Banks 2,452.37 (0.5) (0.5) 25.8 13.0 Industrials 3,230.06 0.1 0.1 23.0 11.9 Transportation 1,858.55 (1.1) (1.1) 38.7 12.7 Real Estate 1,826.22 (0.0) (0.0) 13.3 13.8 Insurance 2,290.21 0.5 0.5 16.6 9.5 Telecoms 1,504.50 (0.1) (0.1) 41.3 15.8 Consumer 6,036.66 0.4 0.4 29.2 25.3 Al Rayan Islamic Index 2,894.77 (0.3) (0.3) 16.3 15.0 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Deyaar Development Dubai 0.57 14.9 266,617.6 62.5 Air Arabia Dubai 1.45 4.3 69,960.3 73.7 Qatar Nat. Cement Co. Qatar 104.40 3.8 16.0 (2.4) Saudi Hotels & Resort Saudi Arabia 34.40 3.6 1,471.9 28.8 Mannai Corp Qatar 88.00 3.5 0.1 8.6 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% IFA Hotels & Resorts Kuwait 0.56 (15.2) 3.5 27.3 Tihama Saudi Arabia 100.75 (5.6) 866.0 18.9 Al Mouwasat Med. Ser. Saudi Arabia 78.25 (3.4) 166.5 45.6 Al Abdullatif Ind. Inv. Saudi Arabia 44.70 (3.2) 122.5 41.0 Savola Group Saudi Arabia 55.50 (3.1) 351.2 38.8 Source: Bloomberg ( # in Local Currency) ( ## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity) Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD% Zad Holding Co. 66.00 (2.4) 1.5 12.2 Gulf International Services 49.80 (2.0) 81.9 66.0 Qatar Islamic Insurance 58.50 (1.7) 19.7 (5.6) Al Khaliji 18.93 (1.6) 140.3 11.4 Mazaya Qatar Real Estate Dev. 11.91 (1.6) 440.4 8.3 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Qatar Insurance Co. 61.30 0.5 17,487.8 13.6 Qatar Navigation 82.40 0.6 16,321.7 30.6 Commercial Bank of Qatar 70.30 0.7 13,712.3 (0.8) Qatar Electricity & Water Co. 164.40 0.4 11,963.1 24.2 Doha Insurance Co. 26.20 2.8 10,254.1 6.7 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* 10,078.78 (0.3) (0.3) 3.9 20.6 50.90 151,180.5 12.7 1.8 4.6 Dubai 2,748.27 1.8 1.8 6.2 69.4 327.62 67,219.7 16.0 1.1 2.9 Abu Dhabi 3,959.31 0.3 0.3 2.9 50.5 105.21 113,794.5 11.2 1.4 4.6 Saudi Arabia 8,129.87 (0.8) (0.8) 2.7 19.5 1,710.10 429,250.5 17.0 2.1 3.6 Kuwait 8,074.34 (0.4) (0.4) 0.1 36.1 69.98 110,460.6 19.9 1.3 3.5 Oman 6,915.15 0.2 0.2 4.1 20.0 24.01 23,954.4 11.4 1.7 4.0 Bahrain 1,200.75 (0.2) (0.2) 0.5 12.7 2.13 21,951.3 8.4 0.9 4.0 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 10,070 10,080 10,090 10,100 10,110 10,120 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 4 Qatar Market Commentary  The QE index declined 0.3% to close at 10,078.8. The Transportation and Banking & Financial Services indices led the losses. The index declined on the back of selling pressure from non-Qatari shareholders despite buying support from Qatari shareholders.  Zad Holding Co. and Gulf International Services were the top losers, falling 2.4% and 2.0% respectively. Among the top gainers, Qatar Cinema & Film Dist. rose 9.6%, while Qatar National Cement Co. gained 3.8%.  Volume of shares traded on Sunday declined by 57.5% to 4.2mn from 10.0mn on Thursday. Further, as compared to the 30-day moving average of 6.6mn, volume for the day was 35.5% lower. Mazaya Qatar Real Estate Dev. and Doha Insurance Co. were the most active stocks, contributing 10.4% and 9.2% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Earnings Earnings Releases Company Market Currency Revenue (mn) 2Q2013 % Change YoY Operating Profit (mn) 2Q2013 % Change YoY Net Profit (mn) 2Q2013 % Change YoY United Paper Industries (UPI) Bahrain BHD 2.9 6.1% 0.23 11.7% 0.18 25.9% Source: Bahrain Bourse News Qatar  QPMC signs EPC contract for Gabbro terminal expansion – Qatar Primary Materials Company (QPMC) has signed an EPC contract with FLSmidth and Six Construct, for the design & engineering of the Gabbro Terminal Expansion Project in Mesaieed. QPMC said the Gabbro project will enable aggregate importers to import large volumes directly as a result of which the truck traffic into the Gabbro berths will significantly reduce. The success of the Gabbro project will also necessitate new storage usage regulations and tariff structures that the importers will need to follow to ensure its smooth operations. The project includes an integrated set of conveyors, dust suppression systems, sub-stations and stackers to streamline the imports of aggregate and its storage into Qatar. (Gulf-Times.com)  Building material demand to rise in Qatar – According to a survey conducted by the Ministry of Development Planning & Statistics, Qatar's construction sector is set to see a record demand of primary building materials over the next few years. In the run up to the 2022 FIFA World Cup, the highest projected demand would be for limestone, gabbro and spoil removal & disposal. The demand for these materials would reach a record peak during 2014-2016. The survey showed that for the 2012-22 period, at 515mn tons, limestone was the material with the highest demand, followed by Gabbro at 264mn tons. The spoil removal & disposal demand is expected to reach 166mn tons during the period. (Peninsula Qatar)  Mashreq Qatar appoints Ross Officer as country head – Mashreq Qatar has appointed Ross Officer as its country head. Ross Officer will lead Mashreq Qatar as it moves into the full implementation phase of its ambitious growth strategy in Qatar. (Peninsula Qatar)  Al Futtaim Engineering to distribute VTS Clima products – Hamad & Mohamad Al Futtaim, Al Futtaim Engineering’s unit in Qatar has been appointed as the exclusive distributor of VTS Clima products in the Gulf emirate. (AME Info) International  EC's Rehn: France should stop raising taxes – The European Commission's Economic Chief Olli Rehn said France has reached a point where it can no longer increase taxes without harming economic growth and jobs creation. He said raising new taxes would break growth and weigh down on employment. He mentioned that budgetary discipline must reduce public spending and not new taxes. Rehn reiterated that the French government’s proposed reforms were going in the right direction, but were not far-reaching enough or being implemented sufficiently quickly. (Reuters)  ECB's Asmussen: Greece must press on with reforms – The European Central Bank’s (ECB) Executive Board Member Joerg Asmussen said Greece can achieve a primary budget surplus this year and resume growth in 2014 if it sticks to economic reforms, but a return to bond markets will be challenging. He said having a low but positive rate of growth next year is achievable, but there must be persistence with reforms. Meanwhile, Asmussen said paper complacency and reform fatigue were the biggest risks to an improving European economy. (Reuters)  Chinese economy showing clear signs of stabilization – According to the China’s National Bureau of Statistics, the country’s economy is showing clearer signs of stabilization helped by some external improvement, and is on track for reaching its 2013 growth target of 7.5%. China's annual economic growth slowed to 7.5% in 2Q2013, down from 7.7% in 1Q2013, the ninth such deceleration in the past ten quarters. (Reuters) Regional  CBRE: Saudi real estate growth indicates development overdrive – According to a report by C B Richard Ellis South Asia Pvt. Ltd. (CBRE), the rental rates in Riyadh have started to edge downwards as a significant volume of new prime office space enters the Riyadh market, particularly at King Abdullah Financial District (KAFD). Similarly, the report said the supply of prime office space in Jeddah is set to jump with the completion Overall Activity Buy %* Sell %* Net (QR) Qatari 76.99% 62.74% 26,408,409.20 Non-Qatari 23.01% 37.26% (26,408,409.20)
  3. 3. Page 3 of 4 of The Headquarters Business Park in 2H2013, but growth in demand will largely be driven by the government’s expenditure on infrastructure and is likely to moderate the threat of oversupply. Rental rates in Jeddah have remained static in 1H2013 despite a slight drop in vacancy rates. The CBRE Middle East’s Head of Research & Consultancy Mike Williams said that the rental rates for the space considered as local Class A now lies in a broad range from around SR800 per square meter per annum to SR1,300 per square meter per annum, with the most recently completed buildings commanding the highest rents. (AME Info)  Saudi CMA strengthens disclosure requirements – Saudi Arabia’s Capital Market Authority (Saudi CMA) has strengthened the requirements for disclosures made by companies listed on the Kingdom’s stock market in order to ensure transparency. The move is the latest in a series of steps taken to tighten regulation of the $400bn Saudi stock exchange, ahead of a possible broader opening up to foreign investors. (Bloomberg)  GSFMO issues international tenders to purchase wheat – The Grain Silos & Flour Mills Organization (GSFMO) has issued an international tender to purchase 660,000 tons of hard wheat. GSFMO has asked for the shipment of 330,000 tons to the port of Jeddah and another 330,000 tons to the port of Dammam. GSFMO estimates that around 2.5mn tons of wheat will be imported in 2013, while 600,000 tons of locally-produced wheat will be delivered to GSFMO for meeting local needs and boosting its strategic reserves. (GulfBase.com)  Bank AlJazira opens new Sahafa branch – Bank AlJazira has opened its new Sahafa branch in Riyadh, a step taken under the bank’s ambitious expansion plans to meet the growing demand for its Shari’ah-compliant financial services. (Bloomberg)  ITC signs deal with Hong Kong-based PCCW Global – Saudi-based Integrated Telecom Company (ITC) has entered into an inter-carrier interconnection agreement with Hong Kong- based PCCW Global to offer international private leased circuits and global MPLS connectivity services. This agreement is expected to expand ITC's international network. (AME Info)  TLA represents AYTB’s shareholders in 38% stake sale – Saudi-based law firm Tribonian Law Advisors (TLA) announced that it has represented the shareholders of Al Yusr Industrial Contracting Company (AYTB) in the sale of its 38% stake to Investcorp's Gulf Opportunity Fund. (AME Info)  UAE Central Bank finds surge in consumer loans in June – According to the data released by the UAE Central Bank, the consumer lending has drastically increased in June 2013, as shopping malls buzz with activity and card spending accelerated. Personal loans to residents increased by AED3.8bn in June, which is sixth consecutive month of increase. According to the central bank’s records, this is the biggest monthly increase in three years. The data showed the total personal lending has increased by AED15.3bn in 2013. In addition, data showed that AED276.2bn was outstanding in consumer loans at the end of June. (GulfBase.com)  Empower records 5.2% increase in July peak AC consumption – Emirates Central Cooling Systems Corporation (Empower) has seen an increase of 5.2% in the peak consumption for air conditioning (AC) during July 2013 at 83,447,361 Refrigeration Tons (RT) per hour as compared to 79,310,340 RT per hour in July 2012. Empower’s CEO Ahmad bin Shafar said that the increased occupancy in residential areas such as Jumeirah Beach Residence, Al Khail Gate, Ghuroob Mirdif and Tecom C have led to a rise of 4.5% in district cooling consumption. Similarly, he said that an increase in the number of new buildings receiving Empower's service in Business Bay and higher occupancy in commercial buildings have led to 7.4% increase in district cooling consumption. The company is currently developing its second district cooling plant in Business Bay, which will have an ultimate capacity of 45,000 RT and will be completed in June 2014. (AME Info)  Al Bariz Trading to set up an agro-park in India – UAE-based Al Bariz Trading has entered into a joint venture agreement with India-based Aiman Agro Flora to set up an agro-park in Karnataka, India for growing food crops and horticulture products to be exported to the Gulf region. This agreement will also include setting up greenhouse nurseries for growing saplings of vegetables and fruits that can be shipped to Arab states for replanting under controlled climatic conditions. (GulfBase.com)  DFSA sign 26 cross-border agreements with EU, EEA – The Dubai Financial Services Authority (DFSA) has entered into 26 supervisory cooperation agreements with European Union (EU) and European Economic Area (EEA) securities regulators in 2013. Under these agreements, DFSA, EU and EEA have agreed to help each other on supervising fund managers operating across borders between the Dubai International Financial Centre (DIFC) and Europe. Further, DFSA has negotiated these agreements with the European Securities & Markets Authority (ESMA). These agreements will allow the fund managers in the DIFC to offer Alternative Investment Funds to professional investors in the EEA region under the rules of the Alternative Investment Fund Managers Directive. (GulfBase.com)  Nakheel repays AED197mn to its lenders – Nakheel has repaid the interest and profit payments worth AED197mn to its lenders in compliance with its debt restructuring requirements. (Bloomberg)  Flydubai plans to launch flights to Moldova – Dubai-based low cost airline Flydubai is planning to launch flights to Chisinau, Moldova in Eastern Europe. Since the start of 2013, Flydubai has announced 15 new routes, but Chisinau in Moldova is a route that is currently being evaluated. (Bloomberg)  OIF in talks to buy 9.7% stake in India-based NCDEX – India- based stock broker Jaypee Capital Services is in advanced talks to sell part of its stake in the National Commodity & Derivatives Exchange Limited (NCDEX) to Omani sovereign wealth fund, the Oman Investment Fund (OIF). Jaypee Capital Services is said to be close to selling 14.7% to IDFC Private Equity Fund and Oman Investment Fund for 1.32bn Indian rupees. Out of this, 5% stake will go to IDFC PE for 440mn Indian Rupees, while 9.7% stake will be sold to OIF for 880mn Indian rupees. (GulfBase.com)  Oman Air begins extra flights to Salalah – Oman Air has launched extra flights between Salalah and Muscat to meet the increasing demand from passengers. The airline will operate up to 11 to 13 daily flights from August 20 to September 15, 2013. (AME Info)  CBB: bank lending growth decreases to 5.8% in June – According to the data released by the Central Bank of Bahrain (CBB), the M2 money supply growth accelerated to 6.5% YoY in June 2013 from 6.0% in May 2013. However, the bank’s lending growth to the private sector decreased 5.8% in June 2013 from a four month high of 6.1% in May. (GulfBase.com)
  4. 4. 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 4 of 4 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg (*July 09, 2013) Source: Bloomberg 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 Jan-10 Aug-10 Mar-11 Oct-11 May-12 Dec-12 Jul-13 QE Index S&PPan Arab S&P GCC (0.8%) (0.3%) (0.4%) (0.2%) 0.2% 0.3% 1.8% (1.4%) (0.7%) 0.0% 0.7% 1.4% 2.1% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,397.75 0.0 0.0 (16.6) DJ Industrial 15,010.51 0.0 0.0 14.5 Silver/Ounce 24.07 0.0 0.0 (20.7) S&P 500 1,663.50 0.0 0.0 16.6 Crude Oil (Brent)/Barrel (FM Future) 111.04 0.0 0.0 (0.1) NASDAQ 100 3,657.79 0.0 0.0 21.1 Natural Gas (Henry Hub)/MMBtu 3.50 0.0 0.0 2.2 STOXX 600 304.71 0.0 0.0 8.9 LPG Propane (Arab Gulf)/Ton* 810.00 0.0 0.0 (16.4) DAX 8,416.99 0.0 0.0 10.6 LPG Butane (Arab Gulf)/Ton* 807.00 0.0 0.0 (16.7) FTSE 100 6,492.10 0.0 0.0 10.1 Euro 1.34 0.0 0.0 1.4 CAC 40 4,069.47 0.0 0.0 11.8 Yen 98.72 0.0 0.0 13.8 Nikkei 13,660.55 0.0 0.0 31.4 GBP 1.56 0.0 0.0 (4.2) MSCI EM 932.76 0.0 0.0 (11.6) CHF 1.08 0.0 0.0 (0.7) SHANGHAI SE Composite 2,057.46 0.0 0.0 (9.3) AUD 0.90 0.0 0.0 (13.1) HANG SENG 21,863.51 0.0 0.0 (3.5) USD Index 81.36 0.0 0.0 2.0 BSE SENSEX 18,519.44 0.0 0.0 (4.7) RUB 33.00 0.0 0.0 8.1 Bovespa 52,197.06 0.0 0.0 (14.4) BRL 0.43 0.0 0.0 (12.7) RTS 1,330.99 0.0 0.0 (12.8) 144.8 127.6 115.5