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26 May Daily market report


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  • 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index rose 0.3% to close at 13,393.3. Gains were led by the Telecoms and Banking & Financial Services indices, gaining 2.0% and 0.5% respectively. Top gainers were Ooredoo and Masraf Al Rayan, rising 2.4% and 2.3% respectively. Among the top losers, Qatar Fuel Co. fell 4.3%, while Gulf Warehousing Co. declined 2.9%. GCC Commentary Saudi Arabia: The TASI index rose 0.5% to close at 9,821.5. Gains were led by Energy & Utilities and Real Est. Dev. indices, rising 1.7% and 1.0% respectively. Saudi Fish. gained 5.5%, while Nat. Agri. Dev. was up by 3.5%. Dubai: The DFM index gained 1.9% to close at 4,954.6. The Banking index gained 3.2%, while the Investment & Financial Services index was up 2.1%. National Industries Group rose 10.6%, while Dubai Islamic Bank was up 7.5%. Abu Dhabi: The ADX benchmark index rose 2.5% to close at 5,048.6. The Real Est. index gained 3.4%, while Banking index was up 3.3%. Gulf Medical Projects Co. rose 8.4%, while Abu Dhabi Commercial Bank was up 7.6%. Kuwait: The KSE index fell 0.9% to close at 7,242.8. The Healthcare index declined 1.6%, while Consumer Services index was down 1.4%. Investors Holding Group Co. fell 7.9%, while Aayan Leasing & Inv. Co. was down 6.7%. Oman: The MSM index declined 0.1% to close at 6,717.8. Losses were led by the Industrial and Financial indices, declining 0.2% and 0.1% respectively. ONIC Holding declined 5.7%, while Al Sharqia Investment was down 4.4%. Bahrain: The BHB index fell 0.5% to close at 1,457.9. The Commercial Banking index declined 1.1%, while Services index was down 0.3%. Ahli United Bank fell 2.3%, while Bahrain Telecommunication Co. fell 0.6%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Ooredoo 152.00 2.4 818.9 10.8 Masraf Al Rayan 58.60 2.3 7,831.0 87.2 Ahli Bank 51.50 1.4 5.0 21.7 Qatar Islamic Bank 101.10 1.0 557.4 46.5 Qatar Industrial Manufacturing Co. 45.95 1.0 39.3 9.0 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Masraf Al Rayan 58.60 2.3 7,831.0 87.2 Vodafone Qatar 18.70 0.6 4,276.6 74.6 Barwa Real Estate Co. 40.50 (1.2) 3,611.9 35.9 Ezdan Holding Group 26.45 (2.6) 1,353.7 55.6 National Leasing 33.00 (0.3) 1,224.9 9.5 Market Indicators 26 May 14 25 May 14 %Chg. Value Traded (QR mn) 1,538.6 1,326.5 16.0 Exch. Market Cap. (QR mn) 733,549.6 735,325.1 (0.2) Volume (mn) 27.7 26.8 3.2 Number of Transactions 13,231 11,611 14.0 Companies Traded 43 43 0.0 Market Breadth 11:30 26:10 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 19,972.36 0.3 3.0 34.7 N/A All Share Index 3,368.27 0.0 2.0 30.2 16.2 Banks 3,301.85 0.5 3.4 35.1 16.4 Industrials 4,474.11 (0.1) 2.2 27.8 17.4 Transportation 2,277.28 (0.9) (0.0) 22.5 14.6 Real Estate 2,728.73 (0.9) 2.0 39.7 13.7 Insurance 3,239.98 (1.2) (0.6) 38.7 8.5 Telecoms 1,788.75 2.0 2.3 23.0 25.0 Consumer 6,589.16 (2.7) (4.9) 10.8 25.9 Al Rayan Islamic Index 4,448.03 0.1 3.0 46.5 19.4 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Abu Dhabi Comm. Bank Abu Dhabi 8.55 7.5 13,762.9 31.5 Dubai Islamic Bank Dubai 7.63 7.5 27,304.3 42.4 Saudi Fisheries Saudi Arabia 48.2 5.3 17,044.3 55.7 Nat. Bank Of Abu Dhabi Abu Dhabi 15.00 4.9 4,845.7 18.7 Union National Bank Abu Dhabi 6.64 4.6 2,492.1 18.8 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Tihama Saudi Arabia 293.00 (10.0) 1.9 167.0 NBQ Abu Dhabi 3.25 (7.1) 13.7 (1.5) IFA Hotels & Resorts Kuwait 0.21 (4.6) 2.0 (27.7) Qatar Fuel Co. Qatar 207.00 (4.3) 784.4 (5.3) Agility Kuwait 0.76 (3.8) 1,114.0 10.1 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 Fuel Co. 207.00 (4.3) 784.4 (5.3) Gulf Warehousing Co. 52.70 (2.9) 4.9 27.0 Dlala Brok. & Inv. Holding Co. 39.30 (2.7) 50.0 77.8 Ezdan Holding Group 26.45 (2.6) 1,353.7 55.6 Aamal Co. 16.71 (2.5) 189.8 11.4 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Masraf Al Rayan 58.60 2.3 460,364.7 87.2 Qatar Fuel Co. 207.00 (4.3) 161,181.2 (5.3) Barwa Real Estate Co. 40.50 (1.2) 147,601.7 35.9 Ooredoo 152.00 2.4 123,619.6 10.8 Vodafone Qatar 18.70 0.6 79,363.5 74.6 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* 13,393.34 0.3 3.0 5.6 29.0 422.57 201,432.7 16.7 2.3 3.7 Dubai 4,954.62 1.9 1.9 (2.1) 47.0 422.15 92,672.5 19.9 1.9 2.1 Abu Dhabi 5,048.58 2.5 2.5 0.1 17.7 194.46 138,840.5 14.9 1.9 3.4 Saudi Arabia 9,821.53 0.5 0.7 2.5 15.1 3,025.46 530,685.4 19.6 2.4 2.9 Kuwait 7,242.76 (0.9) (1.4) (2.2) (4.1) 80.75 113,339.9 15.1 1.1 3.8 Oman 6,717.78 (0.1) (0.4) (0.1) (1.7) 10.20 24,441.8 12.3 1.7 3.9 Bahrain 1,457.89 (0.5) (0.1) 2.1 16.7 5.53 53,888.3 10.6 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) 13,100 13,200 13,300 13,400 13,500 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  • 2. Page 2 of 6 Qatar Market Commentary  The QE index rose 0.3% to close at 13,393.3. The Telecoms and Banking & Financial Services indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.  Ooredoo and Masraf Al Rayan were the top gainers, rising 2.4% and 2.3% respectively. Among the top losers, Qatar Fuel Co. fell 4.3%, while Gulf Warehousing Co. declined 2.9%.  Volume of shares traded on Monday rose by 3.2% to 27.7mn from 26.8mn on Sunday.However, as compared to the 30-day moving average of 28.6mn, volume for the day was 3.1% lower. Masraf Al Rayan and Vodafone Qatar were the most active stocks, contributing 28.3% and 15.4% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Earnings and Global Economic Data Earnings Releases Company Market Currency Revenue (mn)1Q2014 % Change YoY Operating Profit (mn) 1Q2014 % Change YoY Net Profit (mn) 1Q2014 % Change YoY Etihad Atheeb Telecommunication Co.* Saudi SR – – -250.5 – -249.3 NA Tihama Advertising & Public Relations Co.* Saudi SR – – -44.8 – -52.5 NA Saudia Dairy & Foodstuff Co. (SADAFCO)* Saudi SR – – 184.0 4.8% 171.5 4.1% Al Dar National Real Estate Co. (ADNEC) Kuwait KD – – – – -0.9 NA Source: Company data, DFM, ADX, MSM. (* FY2013-14) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 05/26 Germany GfK AG GfK Consumer Confidence June 8.5 8.5 8.5 05/26 Spain INE PPI MoM April 0.20% – 0.20% 05/26 Spain INE PPI YoY April 0.10% – -1.30% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  Qatar allows raising foreign ownership in listed companies to maximum of 49%, subject to amendment in company statues – HH the Emir Sheikh Tamim bin Hamad al-Thani, who is also President of the Supreme Council For Economic Affairs and Investment (SCEAI), has given instructions to raise the percentage of non-Qatari ownership in companies listed in the Qatar Stock Exchange (QSE). HE Minister of Finance Ali Sherif al-Emadi, who is also the SCEAI’s Secretary General, said that the increase in the proportion of non-Qatari ownership in companies listed on the QSE will be in accordance with the effective legal procedures as follows: 1) The equality of the GCC citizens with their Qatari counterparts as regards their possession of shares of companies listed in QSE, 2) The Non- Qatari citizens who are not members of the GCC may possess shares of the companies listed on QSE and by a percentage not exceeding 49%, and this will be up to the desire of each company through amending its statute, 3) The proportion of non- Qatari ownership, which was referred to in the previous item, in shares of companies traded in the Qatar Exchange, shall be calculated based on the total capital of each company and not on its non-tradable shares and 4) The Ministry of Economy and Commerce and Qatar Financial Markets Authority (QFMA) will immediately take the measures to put this directive into effect. (  QE hosts international investment sell-side companies in London – The Qatar Exchange (QE) hosted a dinner event in London for senior representatives of sell-side brokers and institutions, ahead of the MSCI Emerging Markets inclusion for Qatari companies. The purpose of the event was to meet with key traders and sales executives who are responsible for the international order flow into the Qatari market. This event complimented the previous roadshow event where QE met with key decision makers from a number of leading international buy- side institutions. (QE)  Growth in Qatar’s telecom sector set to continue – HE the Minister of Information & Communications Technology (ICT) Dr. Hessa al-Jaber said Qatar’s telecommunications sector surged 11% in 2013 and is expected to continue growing at 9-12% over the next five years. The minister reiterated the ICT’s important role in realizing the Qatar National Vision 2030. Meanwhile, HE the Minister of Finance Ali Sharif al-Emadi noted that 40% of Qatar’s total budget for FY2014-15 was allocated for the ongoing major projects in various parts of the country. He also noted that the government had invested QR2.5bn for Qatar’s satellite company Es’hailSat, a move that will further boost the country’s ICT capability. He said that the GDP contribution from this sector has increased to QR7.5bn in 2013 from QR5.5bn in 2010. (  Qatar, GCC trade balance worth QR43.3bn in 2013 – HE the Minister of Economy & Commerce Sheikh Ahmed bin Jassim bin Mohammed al-Thani said that trade balance between Qatar and fellow GCC members was worth QR43.3bn in 2013. Sheikh Ahmed said Qatar’s total exports stood at QR30bn, while Overall Activity Buy %* Sell %* Net (QR) Qatari 53.46% 65.76% (189,191,058.60) Non-Qatari 46.54% 34.25% 189,191,058.60
  • 3. Page 3 of 6 imports were at QR13.3bn. Speaking on the sidelines of the 15th GCC Joint Exhibition at the Sharjah Expo Centre, the minister said that the exhibition was an opportunity to advance economic integration and the convening of representatives of the GCC private sector will boost joint investments and trade. He added that the exhibition comes at the special occasion of 33 years of establishing the GCC and noted that such events will have a positive impact on trade between GCC countries. (Gulf-  GWCS completes implementation of new warehouse management system – Gulf Warehousing Company (GWCS) has completed the implementation of INFOR WMS, an enterprise warehouse management system geared at automating its inventory base of over 450 customers under third party and fourth party logistics services. (  QTA: Continued growth in tourism sector in 1Q2014 – The Qatar Tourism Authority (QTA) 1Q2014 report has released data capturing business and tourist visas that revealed continued growth in Qatar’s expanding tourism industry. All key indicators of the tourism sector demonstrated improvement over the previous year’s comparable period. Regional and international visitor arrivals totaled 387,022, representing a 9% YoY increase. (  QBIC lists 15 projects for incubation and support – The Qatar Business Incubation Center (QBIC) announced that 15 projects have been chosen to be incubated and receive its support. QBIC will provide the winning entrepreneurs with a range of support services such as office space and industrial workshops, as well as administrative, technical and financial assistance. (Peninsula Qatar)  Q-Coat becomes leading producer of ECR steel – Qatar Metals Coating Company (Q-Coat), the sole supplier of anti- corrosion epoxy coated rebar (ECR) in Qatar, has emerged as one of the largest producers of the fusion bonded ECR steel in the GCC region with an installed capacity of producing up to 100,000 tons per annum. Q-Coat, located in Mesaieed Industrial City is a JV between Qatar Steel Company and Qatar Industrial Manufacturing Company. (Peninsula Qatar)  QA to move all flights to HIA – Qatar Airways (QA) has announced to move all its flights to the new Hamad International Airport (HIA) on May 27, 2014 (today). The new airport will have the capacity to handle 8,700 customers per hour, and will feature 138 check-in counters, including 108 counters for QA’s Economy class passengers and all other airlines. Around 16 counters will be dedicated to QA’s business class travelers and 14 check-in counters for QA’s first class passengers. (Bloomberg) International  Draghi says timing key as ECB watches for negative spiral – The European Central Bank’s (ECB) President Mario Draghi signaled that ECB policy makers are ready to take action in June 2014, if they see low inflation becoming entrenched. Draghi indicated that the ECB is focusing on liquidity measures that can be deployed to help free up lending to companies and households. These measures include interest-rate cuts and liquidity injections, while there is the prospect of asset purchases. The Frankfurt-based central bank is reviewing lenders’ balance sheets to purge the system of unrecognized losses before it takes over as supervisor in November. That threatens to curb credit supply to the economy, slowing growth and prices. The ECB president also said that a prolonged period of low inflation can lead to higher debt burdens and prompt lenders to tighten their credit standards. Inflation in the 18-nation euro area has been below 1% since October, less than half the ECB’s goal. (Bloomberg)  CBI: UK services companies’ confidence rose – According to the Confederation of British Industry (CBI), confidence among UK services companies rose to a record this quarter, indicating continued expansion in the largest part of the economy. An index of optimism among consumer businesses such as restaurants and hotels jumped to 53 from 43, the highest since the survey began in 1998. Sentiment among professional services firms – such as accountants and legal companies – rose to 54, also a record. The survey shows strength in an industry that accounts for about 75% of the economy after households were the driving force behind economic growth in 2013 and in the first quarter. GDP increased 0.8% in the three months through March, with consumer spending adding 0.5% point. (Bloomberg)  NDRC: China cuts bureaucracy for investment – The National Development & Reform Commission (NDRC) has said that China has simplified procedures for its government to approve investment projects in order to increase transparency and efficiency, marking its latest effort to streamline administration and devolve more power to firms. According to new rules, the government will only vet certain aspects of projects that are considered strategic, such as those pertaining to environmental protection, economic security and monopolies. Companies will be given more autonomy in deciding matters such as investment returns and financing, without providing more details. Cutting government red tape is part of China's wide-ranging plans to reform its economy into one that is more driven by market forces. (Reuters)  BoR: Russia to grow by 0.5% in 2014 – The Russian central bank’s governor Elvira Nabiullina has said that the country’s economy is likely to grow by around 0.5% this year, but the overall threat to stability from the crisis in Ukraine would not be large scale. Nabiullina said in an interview that the Bank of Russia (BoR) will probably revise its 2014 GDP growth forecast to around 0.5%, as compared to its earlier forecast of 0.9%. Earlier in February, the BoR had predicted the economy would grow by 1.5-1.8% in 2014. The central bank's earlier GDP growth forecast of 0.9% had not been made public, which indicates that two downward revisions have been made since Russia engaged in Ukraine and annexed Crimea. The Russian economy is on the brink of recession after its GDP fell by 0.5% in the first quarter, impacted by sanctions and instability resulting from the stand-off with Ukraine. (Reuters)  Japan risks low growth even as easing spurs inflation – Japan’s risk of spurring inflation without boosting the nation’s growth potential is raising the stakes for the Prime Minister Shinzo Abe’s next round of economic restructuring measures, due in June. The Bank of Japan (BoJ) Deputy Governor Kikuo Iwata stated that an economy with low real growth rates under mild inflation is possible, if the government fails to deliver. The BoJ’s stimulus helped lift core inflation (excluding fresh food), to 1.3% in March from -0.4% in April 2013 when the central bank started easing a campaign of monetary easing. Investors are seeking lower corporate taxes, labor-market flexibility and progress on a US-led trade pact as Shinzo Abe prepares for the next phase of the so-called ‘Third Arrow of Abenomics’ – economic restructuring to boost long-term growth prospects. (Bloomberg) Regional  New Saudi-Bahrain oil pipeline to be ready by 3Q2016 – Saudi Aramco said that the tenders for the engineering, procurement & construction (EPC) contract for a new crude oil
  • 4. Page 4 of 6 pipeline between Saudi Arabia and Bahrain are expected to be issued by the end of 2014. The pipeline is expected to be commissioned by 3Q2016 at an estimated cost of $350mn. The 115km-long pipeline would run overland for 74km, with the remaining 31km being sub-sea. It will transport crude from Aramco’s Abqaiq plant to Bahrain. With a capacity of 350,000 bpd, the new link will replace an ageing 230,000 bpd pipeline. Its completion is a key pre-requisite for Bahrain Petroleum Company’s planned Sitra refinery expansion to up to 500,000 bpd total capacity, which is estimated to cost around $6bn. (  QA, Burgan Bank launch co-branded credit card – Qatar Airways (QA) and Kuwait-based Burgan Bank (BB) have launched new co-branded MasterCard credit card. The new MasterCard with its platinum and gold variants will be offered on the MasterCard network platform, allowing customers access to combined benefits offered by BB, QA and MasterCard. This initiative will allow customers to convert their everyday banking transactions, into flight rewards, while enjoying an array of exclusive privileges and world class services. (  STC hires managers for debut Sukuk issuance – The Saudi Telecom Company (STC) has hired Standard Chartered, JPMorgan Chase and NCB Capital to market its debut Sukuk issuance program. The banks will manage the potential sale under a SR5bn Sukuk program. The size of the private local placement will depend on market conditions. (  PDC, BSF sign SR528mn murabaha bridge funding – Ports Development Company (PDC) and Banque Saudi Fransi (BSF) have signed an agreement governing an SR528mn Murabaha bridge financing for the expansion of King Abdullah Port. It is the first privately developed and operated port in the Kingdom. (  RCJY signs 2 deals worth SR467.9mn for Jubail, Ras Al- Khair projects – The Royal Commission for Jubail and Yanbu (RCJY) has signed two contracts worth SR467.9mn. Under the first contract, the Saudi Services for Electro-Mechanic Works Company (SSEM) will establish a pumping station for drinking water and four water tanks in the industrial city of Ras Al-Khair. The project will take two years and two months to complete. The second contract has been signed with SSEM to develop the King Fahd Industrial Port’s power plant in Jubail industrial city and undertake design & supply for lifting power lines. The work on this project will take three and a half years. (  Shaker Co. completes 2% stake sale in LG Shaker – Al Hassan Ghazi Ibrahim Shaker Company (Shaker Co.) announced that the company has sold 2% of its shares in LG Shaker to LG Electronics for a value of SR3.8mn. The official formalities regarding the transaction have been completed to reflect the company’s new ownership structure. With this, LG’s shareholding in LG Shaker Company has reached 51%, while Shaker Co. holds 49%. (Tadawul)  Saudi CMA approves Shuaa’s capital decrease – Saudi CMA’s board has approved the Shuaa Capital’s (Shuaa) request to decrease its capital from SR150mn to SR75mn. (Tadawul)  SABIC signs $595mn JV deal with SK – Saudi Basic Industries Corporation’s (SABIC) fully owned company, SABIC Industrial Investment Company, and the Korean petrochemical company, SK Global Chemical (SK), have signed a 50-50 joint venture (JV) agreement for a total investment of $595mn. The JV involves SABIC owning SK’s cutting edge Nexlene technology and a plant that has been recently completed at SK’s complex in Ulsan, South Korea, with an expected annual capacity of 230,000 tons. Located in Singapore, the JV will manufacture a range of high-performance polyethylene products. (Tadawul)  Maaden appoints advisor for rights issue – The Saudi Arabian Mining Company (Maaden) has assigned HSBC Saudi Arabia as the financial advisor to manage its proposed rights issue. (Tadawul)  Tamlik, Green Falcon sign affordable housing deal – Tamlik and Green Falcon have concluded a memorandum of participation in collating efforts to embark on affordable housing development in the Kingdom. The agreement aims to contribute to the Ministry of Housing’s efforts to achieve the delivery of 500,000 affordable housing units. Green Falcon is an exclusive licensed company to build affordable houses outside France by Geoxia. (  SBG’s CPC acquires Sphinx Glass for $190mn – Construction Products Holding Company (CPC) – a part of Saudi Binladin Group (SBG) – has acquired Egypt-based glass manufacturer Sphinx Glass for $190mn. CPC acquired 73.3% stake from Citadel Capital for $112mn, while remaining stake has been bought from other investors. (Reuters)  F&S: UAE logistics market to expand by 15.4% in 2015 – According to Frost & Sullivan (F&S), the UAE logistics market is estimated to have reached $23.4bn in 2013, representing around 6% of the country’s GDP. It is expected to grow 15.4% in 2015 to reach $27bn. A surge in import and export trade volumes is expected in 2015. Further, a steady upward trend of local manufacturing is expected. (  S&P: UAE real estate to remain healthy – According to Standard & Poor’s (S&P), real estate prices in the UAE are predicted to be steady after strong growth over the past two years, particularly in Dubai. Low interest rates are attracting strong external demand for Dubai real estate from regional and international investors. S&P has used land sales as a proxy for total demand and has forecast the UAE’s GDP to grow at 3.8% in 2014 and 2015. Total value of land and housing real estate transactions in 2013 reached AED236bn compared with AED154bn in 2012. This demand was almost evenly split between local (AED122bn) and external demand (AED114bn). (  Emaar to sell 25% of Malls Group in IPO – Emaar Properties announced its intention to sell up to 25% of its equity in Emaar Malls Group and list the unit on the Dubai Financial Market (DFM). Emaar has received the required approval from the Securities & Commodities Authority. The funds raised from the proposed IPO will be primarily distributed as dividend to the company’s shareholders. The timing of the public offering and listing will be announced at a later date. (  Agility declares 40% cash dividend, 5% bonus shares – Agility Public Warehousing Company’s AGM has approved the distribution of 40% cash dividend (40 fils per share) and 5% bonus shares for the year ended December 31, 2013. (DFM)  DI, Sanofi to promote new generics portfolio – Dubai Investments (DI) has entered into an agreement with French pharmaceutical company, Sanofi for promoting a new generic drugs portfolio in the Middle East through DI’s subsidiary, Globalpharma. Products will be commercialized under a joint entity to meet the needs of patients within the UAE and the wider region. (DFM)  Imdaad signs waste management deal with EZW – Imdaad has signed a long-term agreement with Economic Zones World (EZW) for waste management. Under the agreement, an AED100mn technologically advanced material recovery facility
  • 5. Page 5 of 6 will be set up at TechnoPark in Jebel Ali to recover the recyclables from solid waste collected by Imdaad. The facility will have an initial operating capacity of 1,000 tons/day, with a possibility to double the operation in the future. It will also cater to waste collected by other companies. Imdaad is a provider of integrated facilities management solutions in GCC, while EZW is a developer of economic zones, technology, logistics and industrial parks under the Dubai Property Group. (Bloomberg)  Brndstr raises $1.6mn in funding – Dubai-based startup, Brndstr has raised $1.6mn in new funding to help launch its software that better connects social media users and the brands they follow. The company is currently in a pilot phase with private-chauffeur company Uber and is also in talks with other brands and media buying companies in Dubai. (Bloomberg)  Dubai Customs, Tanmia signs cooperation deal – Dubai Customs and the National HR Development & Employment Authority (Tanmia) have entered into a joint cooperation agreement on forging strategic partnerships at various levels especially in providing work opportunities for Emirati nationals. The agreement includes exchange of information and expertise, and the utilization of each entity's resources towards increasing the capacity and efficiency of the human capital at both sides. (Bloomberg)  Etisalat gets $500mn grant from Abu Dhabi for Maroc Telecom deal – Abu Dhabi has given a $500mn grant for Etisalat’s €4.14bn purchase of 53% of Maroc Telecom. The grant provides further evidence of the Emirate’s support for the foreign expansion of its companies and could attract complaints from rival operators. Another Abu Dhabi-based Company Etihad Airways benefited from a $3bn interest-free loan from the emirate’s ruling family, leading to complaints from rival airlines about state subsidies distorting competition. The grant was mentioned in Etisalat’s prospectus for a bond issue to help repay some of the debt taken on to complete the Maroc Telecom transaction. According to sources, Etisalat could start marketing the bond as early as next week, having chosen four banks to arrange the issue. (  NCSI, MoH, ORA to launch real estate price index – The National Centre for Statistics & Information (NCSI), in coordination with the Ministry of Housing (MoH) and Oman Real Estate Association (ORA), is planning to introduce a comprehensive real estate price index. This plan is against an earlier proposal for a simple index. The index will be launched in few months. (  Oman plans to launch strategy for real estate sector – The Omani government is planning to introduce a national strategy for the real estate sector, which is aimed at bringing world standards in construction practices as well as better coordination between basic infrastructure planning and property development. Oman’s real estate sector has grown from OMR292mn in 1998 to OMR610mn in 2012, indicating an average annual growth of 4.5%. Meanwhile, FDI in the real estate sector has grown from OMR190mn in 2006 to OMR414mn in 2012, an average annual growth of 14%. (  AIB appoints CEO – Alizz Islamic Bank (AIB) has appointed Salaam Said Al Shaksy as the CEO. Salaam has five years of banking experience, and has held the position of General Manager and CEO in several reputed local and international banks. (MSM)  T-Linx Technology signs deal with LZ Group – Bahrain- based T-Linx Technology Solutions Architects has signed a cooperation agreement with a Dutch IT firm, LZ Group. A two- year collaboration between the two companies will see smart parking technology solutions being brought to Bahrain and the wider GCC region with the introduction of monPARK. Developed by LZ Group, monPARK is a wireless solution that combines mobile-based parking payment platforms and applications to reduce traffic congestion. (  SIO launches subsidiary to manage properties – The Social Insurance Organization (SIO) has launched a subsidiary named, Amlak, to manage the long-term sustainable growth of its real estate portfolio. Amlak will focus on maintaining optimal risks and deliver above-the market returns for all SIO’s properties. Other than building investment opportunities, Amlak will be evaluating current properties and devising a development plan to boost property values. (  MoT: Bahrain plans IPO for KSB port operator – According to Ministry of Transportation (MoT), Bahrain is planning an IPO of shares of the company operating its Khalifa Bin Salman port (KSB port). KSB port has a capacity to handle about one million 20-foot equivalent units (TEUs) of container cargo annually and is operated by APM Terminals Bahrain under a 25-year concession. The company is 80% owned by Netherlands-based APM Terminals and 20% by YBA Kanoo Holdings, a family- controlled Bahraini business group. MoT said that under the operating agreement for the port, the operator was to convert from a closed joint-stock company to an open joint-stock company within five years of the start of commercial operations. (Bloomberg)
  • 6. 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 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 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 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg, * Markets closed on May 25, 2014 Source: Bloomberg, (* Market closed on May 26, 2014) Source: Bloomberg, (* Market closed on May 26, 2014) 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 0.5% 0.3% (0.9%) (0.5%) (0.1%) 2.5% 1.9% (1.6%) (0.8%) 0.0% 0.8% 1.6% 2.4% 3.2% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,292.75 0.0 0.0 7.2 DJ Industrial* 16,606.27 0.0 0.0 0.2 Silver/Ounce 19.44 (0.1) (0.1) (0.2) S&P 500* 1,900.53 0.0 0.0 2.8 Crude Oil (Brent)/Barrel (FM Future) 110.32 (0.2) (0.2) (0.4) NASDAQ 100* 4,185.81 0.0 0.0 0.2 Natural Gas (Henry Hub)/MMBtu * 4.38 0.0 0.0 0.9 STOXX 600 343.69 0.6 0.6 4.7 LPG Propane (Arab Gulf)/Ton* 105.63 0.0 0.0 (16.3) DAX 9,892.82 1.3 1.3 3.6 LPG Butane (Arab Gulf)/Ton* 118.00 0.0 0.0 (13.6) FTSE 100* 6,815.75 0.0 0.0 1.0 Euro 1.36 0.1 0.1 (0.7) CAC 40 4,526.93 0.8 0.8 5.4 Yen 101.94 (0.0) (0.0) (3.2) Nikkei 14,602.52 1.0 1.0 (10.4) GBP 1.68 0.1 0.1 1.7 MSCI EM 1,041.84 (0.1) (0.1) 3.9 CHF 1.12 0.1 0.1 (0.2) SHANGHAI SE Composite 2,041.48 0.3 0.3 (3.5) AUD 0.92 0.1 0.1 3.6 HANG SENG 22,963.18 (0.0) (0.0) (1.5) USD Index* 80.39 0.0 0.0 0.4 BSE SENSEX 24,716.88 0.1 0.1 16.8 RUB 34.20 0.1 0.1 4.0 Bovespa 52,932.91 0.6 0.6 2.8 BRL 0.45 (0.1) (0.1) 6.2 RTS 1,335.73 0.7 0.7 (7.4) 192.5 154.8 140.9