29 May Daily market report

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29 May Daily market report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index rose 2.1% to close at 13,694.2. Gains were led by the Real Estate and Insurance indices, up 5.4% and 3.2% respectively. Top gainers were Vodafone Qatar and Masraf Al Rayan, rising 9.9% each. Among the top losers, Qatar Navigation fell 8.1%, while Qatar Gas Transport Co. declined 4.8%. GCC Commentary Saudi Arabia: The TASI index rose 0.3% to close at 9,823.4. Gains were led by the Banking & Financial Services and Hotel & Tourism indices, rising 1.6% and 1.1% respectively. Banque Saudi Fransi gained 7.3%, while Saudi Kayan Petrochemical Co. was up 3.7%. Dubai: The DFM index gained 5.0% to close at 5,087.5. The Investment & Financial Services index gained 9.1%, while the Real Estate & Const. index rose 5.3%. Dubai Financial Market Co. surged 14.9%, while Shuaa Capital was up 9.6%. Abu Dhabi: The ADX benchmark index rose 5.5% to close at 5,253.4. The Consumer index gained 11.8%, while the Banking index was up 7.1%. National Bank of Abu Dhabi and Abu Dhabi Comm. Bank surged 15.0% each. Kuwait: The KSE index was closed on May 29, 2014. Oman: The MSM index rose 1.7% to close at 6,857.4. Gains were led by the Financial and Services indices, rising 2.0% and 0.9% respectively. Bank Dhofar gained 4.8%, while Al Sharqia Investment Holding was up 4.6%. Bahrain: The BHB index gained 0.2% to close at 1,459.3. The Industrial index rose 0.9%, while the Commercial Banking index was up 0.2%. Al Salam Bank gained 2.7%, while National Bank of Bahrain was up 1.3%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 20.78 9.9 19,319.5 94.0 Masraf Al Rayan 65.60 9.9 16,760.4 109.6 Qatar Islamic Bank 109.90 8.1 2,344.4 59.3 Barwa Real Estate Co. 43.20 7.6 9,352.0 45.0 Qatar National Cement Co. 150.00 6.4 63.6 26.1 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 20.78 9.9 19,319.5 94.0 Masraf Al Rayan 65.60 9.9 16,760.4 109.6 Barwa Real Estate Co. 43.20 7.6 9,352.0 45.0 United Development Co. 26.45 2.9 3,386.3 22.9 Ooredoo 155.00 0.6 2,979.5 13.0 Market Indicators 29 May 14 28 May 14 %Chg. Value Traded (QR mn) 4,583.7 1,321.3 246.9 Exch. Market Cap. (QR mn) 736,878.6 732,779.0 0.6 Volume (mn) 76.1 27.5 177.1 Number of Transactions 22,170 13,002 70.5 Companies Traded 43 43 0.0 Market Breadth 22:19 8:30 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 20,420.99 2.1 5.3 37.7 N/A All Share Index 3,423.79 1.5 3.7 32.3 16.4 Banks 3,375.17 2.6 5.7 38.1 16.8 Industrials 4,487.71 0.1 2.5 28.2 17.5 Transportation 2,198.53 (5.6) (3.5) 18.3 14.1 Real Estate 2,841.68 5.4 6.2 45.5 14.2 Insurance 3,357.29 3.2 3.0 43.7 8.8 Telecoms 1,858.67 2.6 6.3 27.8 25.6 Consumer 6,698.15 (0.1) (3.3) 12.6 26.3 Al Rayan Islamic Index 4,638.81 4.1 7.5 52.8 20.1 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Nat. Bank of Abu Dhabi Abu Dhabi 17.25 15.0 21,470.8 36.5 Abu Dhabi Comm. Bank Abu Dhabi 9.38 15.0 35,713.8 44.3 Dubai Financial Market Dubai 4.25 14.9 140,379.5 72.1 DP World Ltd Dubai 21.67 10.0 4,295.2 22.4 Vodafone Qatar Qatar 20.78 9.9 19,319.5 94.0 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Qatar Navigation Qatar 89.00 (8.1) 151.6 7.2 Ithmaar Bank Bahrain 0.15 (6.5) 1,018.6 (37.0) Qatar Gas Transport Qatar 22.80 (4.8) 1,594.8 12.6 Etihad Atheeb Tele. Saudi Arabia 13.80 (3.7) 11,366.0 (4.0) Gulf Pharma. Ind. Abu Dhabi 3.01 (2.9) 24.7 1.3 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 Navigation 89.00 (8.1) 151.6 7.2 Qatar Gas Transport Co. 22.80 (4.8) 1,594.8 12.6 QNB Group 182.00 (2.7) 2,588.8 5.8 Mesaieed Petrochemical Holding 34.85 (2.4) 1,432.6 248.5 Ahli Bank 50.10 (1.8) 61.7 18.4 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Masraf Al Rayan 65.60 9.9 1,074,160 109.6 QNB Group 182.00 (2.7) 481,813.3 5.8 Ooredoo 155.00 0.6 481,121.5 13.0 Vodafone Qatar 20.78 9.9 391,998.2 94.0 Barwa Real Estate Co. 43.20 7.6 391,296.2 45.0 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* 13,694.19 2.1 5.3 8.0 31.9 79.32 202,420.5 17.1 2.3 3.6 Dubai 5,087.47 5.0 4.6 0.6 51.0 1,015.55 95,013.4 20.4 2.0 2.0 Abu Dhabi 5,253.41 5.5 6.7 4.1 22.4 666.23 146,438.3 15.5 1.9 3.2 Saudi Arabia 9,823.40 0.3 0.7 2.5 15.1 3,372.60 530,438.8 20.1 2.5 2.9 Kuwait# 7,291.09 0.4 (0.8) (1.6) (3.4) 118.93 114,925.4 15.1 1.2 3.8 Oman 6,857.43 1.7 1.7 1.9 0.3 49.70 24,835.3 12.6 1.7 3.9 Bahrain 1,459.34 0.2 (0.0) 2.2 16.9 11.69 53,909.1 10.5 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; # Values as of May 28, 2014) 13,400 13,600 13,800 14,000 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 6 Qatar Market Commentary  The QE index rose 2.1% to close at 13,694.2. The Real Estate 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.  Vodafone Qatar and Masraf Al Rayan were the top gainers, rising 9.9% each. Among the top losers, Qatar Navigation fell 8.1%, while Qatar Gas Transport Co. declined 4.8%.  Volume of shares traded on Thursday rose by 177.1% to 76.1mn from 27.5mn on Wednesday. Further, as compared to the 30-day moving average of 29.6mn, volume for the day was 157.4% higher. Vodafone Qatar and Masraf Al Rayan were the most active stocks, contributing 25.4% and 22.0% 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 National Bank of Kuwait (NBK) S&P Kuwait LT CR A+ A+ – Stable – Ras Al Khaimah (RAK) Fitch UAE LT FC LC IDR/ ST FC IDR A/F1 A/F1 – 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, LIC – Local Issuer Credit, FIC – Foreign Issuer Credit, FC - Foreign Currency, CR – Credit Rating) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 05/29 US BEA GDP Annualized QoQ 1Q2014 -1.00% -0.50% 0.10% 05/29 US BEA Personal Consumption 1Q2014 3.10% 3.10% 3.00% 05/29 US BEA GDP Price Index 1Q2014 1.30% 1.30% 1.30% 05/29 US BEA Core PCE QoQ 1Q2014 1.20% 1.30% 1.20% 05/30 US BEA Personal Income April 0.30% 0.30% 0.50% 05/30 US BEA Personal Spending April -0.10% 0.20% 1.00% 05/30 US BEA PCE Deflator MoM April 0.20% 0.20% 0.20% 05/30 US BEA PCE Deflator YoY April 1.60% 1.60% 1.10% 05/30 US BEA PCE Core MoM April 0.20% 0.20% 0.20% 05/30 US BEA PCE Core YoY April 1.40% 1.40% 1.20% 05/30 Germany Destatis Retail Sales MoM April -0.90% 0.20% 0.10% 05/30 Germany Destatis Retail Sales YoY April 3.40% 1.50% -1.10% 05/29 UK Lloyds Bank Lloyds Business Barometer May 41.0 – 66.0 05/29 Spain INE GDP QoQ 1Q2014 0.40% 0.40% 0.40% 05/29 Spain INE GDP YoY 1Q2014 0.50% 0.60% 0.60% 05/30 Spain INE CPI EU Harmonised YoY May 0.20% 0.20% 0.30% 05/30 Spain INE CPI YoY May 0.20% 0.30% 0.40% 05/30 Spain Bank of Spain Current Account Balance March -1.8b – -2.8b 05/30 Italy ISTAT PPI YoY April -1.80% – -1.90% 05/30 Italy ISTAT PPI MoM April -0.30% – -0.20% 05/30 Italy ISTAT CPI EU Harmonized MoM May -0.10% 0.00% 0.50% 05/30 Italy ISTAT CPI EU Harmonized YoY May 0.40% 0.50% 0.50% 05/29 Japan METI Retail Trade YoY April -4.40% -3.30% 11.00% 05/29 Japan METI Retail Sales MoM April -13.70% -11.70% 6.40% 05/30 Japan MIC Natl CPI YoY April 3.40% 3.40% 1.60% 05/30 Japan MIC Natl CPI Ex Fresh Food YoY April 3.20% 3.10% 1.30% 05/30 Japan MIC Natl CPI Ex Food, Energy YoY April 2.30% 2.30% 0.70% 05/30 Japan METI Industrial Production MoM April -2.50% -2.00% 0.70% 05/30 Japan METI Industrial Production YoY April 4.10% 4.50% 7.40% 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 26.30% 53.48% (1,245,515,115.11) Non-Qatari 73.70% 46.52% 1,245,515,115.11
  3. 3. Page 3 of 6 News Qatar  QE breaks all records on day of MSCI emerging markets upgrade – Qatar Exchange had an exceptional trading session on May 29, 2014 to mark the introduction of the MSCI Qatar Index into the MSCI Emerging Markets index. Total volume traded reached QR4.584bn shattering the previous record volume of QR 2.351bn on June 9, 2008, while the QE Index finished at an all-time closing high of 13,694.19. Other significant milestones included daily trades (22,170) and orders (44,951). (QE)  QDVC completes 90% of Sheraton Park Project – Qatari Diar Vinci Construction’s (QDVC) CEO Yanick Garillon announced that the Sheraton Park Project (SPP) is already 90% complete and set to be finished in December 2014. SPP will feature a landscaped park, underground four-level parking for 2,800 cars, a 66 KV/11KV substation and a tunnel below the Corniche road, linking its car parks and the Doha Convention Centre. It will also comprise seven hectares of public garden with landscaping elements, children’s playground areas, cafes, restaurants and water features. Another unique feature of the park is the electronic guiding system that will direct users to available parking spots. (Gulf-Times.com)  GOIC: Qatar ranks second in GCC industry investments – The manufacturing industries in the GCC region, led by the chemical & petrochemical sector, have witnessed a major expansion over the last five years. With an annual average growth of 4%, the total value of the industries touched $369bn in 2013. According to data released by the Gulf Organisation for Industrial Consulting (GOIC), Qatar ranked second in the region with 22.2% share of the total industrial investments, behind Saudi Arabia (54.2%). The UAE stood at third position (8.8%) in the six-member council, followed by Oman (6.5%) and Kuwait (5.5%). Bahrain stood at the bottom with just 2.8% of industrial investments. (Peninsula Qatar)  UDCD announces change in management – The United Development Company’s (UDCD) board of directors has approved Badr Al Meer‘s request to end his mandate as UDCD’s Acting CEO effective from June 1, 2014. UDCD’s Chairman, Turki Al Khater, will temporarily undertake the duties of Managing Director, until a permanent CEO is appointed. (GulfBase.com)  Nakilat takes over 1st LNG vessel as ‘owner operator’ – Nakilat has taken over the operations of the first of the four liquefied natural gas (LNG) vessels as part of its strategic move to be the owner and operator of the fleet. Its fully-owned subsidiary, Nakilat Shipping (Qatar) took over the operations of a Q-Flex vessel ‘Al Hamla’ from OSG Ship Management, UK. Al Hamla, owned 50.1% by Nakilat and 49.9% by OSG, has a cargo capacity of 216,000 cubic meters. Built in South Korea by Samsung Heavy Industries, Al Hamla is in active service for charterer Qatargas II and has delivered 45 cargoes across the world. (Gulf-Times.com)  MMUP nod for three free trade zones – The Ministry of Municipality & Urban Planning (MMUP) has approved plans to establish three of the much awaited free trade zones (FTZs). Details suggest that the first FTZ will have an area of 5.1 square kilometers (sq km) and will be located near Hamad International Airport (HIA). Being close to the airport, this FTZ would house support industries and supply services for aviation, cargo services and food processing units, among others. The second FTZ, which was originally planned to be set up south of Doha’s Industrial Area, is now proposed to be built near Al Karana Industrial Area and will have an area of 11.9 sq km. The third and the last FTZ is proposed to be of 37 sq km and is to be located near the upcoming New Doha Port in south of Al Wakra. This FTZ will support automobile assembly units in addition to boasting petrochemical and several downstream industries. (Peninsula Qatar)  QA delays taking first A380 by several weeks – Qatar Airways (QA) has delayed taking delivery of its first Airbus A380 by several weeks, while Airbus tackles last-minute problems with the cabin. QA’s CEO, Akbar Al Baker has asked Airbus to address the requests it had made after the usual pre-delivery customer inspection. Meanwhile, QA is hosting the annual meeting of the International Air Transport Association during June 1-3, which is expected to include lavish celebrations marking 100 years of commercial aviation. The A380 aircraft was widely expected to arrive in time for the meeting in Doha. (Gulf-Times.com) International  Harsh weather shrinks US economy in 1Q2014 – According to revised figures released by the US Commerce Department, the country’s GDP fell at a 1% annualized rate in 1Q2014, its first contraction since 2011. However, much of the decline was due to reduced inventory building, which economists feel may not last. As a result, some economists are boosting 2Q2014 growth forecasts, with Morgan Stanley projecting a 4.2% gain. Stockpiles grew at less than half the pace than in 4Q2013, shaving 1.6% points off GDP, while businesses cut back on investment. The northern and eastern US regions experienced above-average snowfall from December through February, hampering production as factories had difficulty obtaining materials on time. Meanwhile, data released by the Labor Department showed jobless claims fell by 27,000 to 300,000 in the week ended May 24, 2014, which was below the Bloomberg forecast for 318,000 claims. Another data released by the National Association of Realtors showed pending home sales in the US rose for a second month in April at 0.4%, after a 3.4% increase in March, a sign that the residential real estate market is stabilizing after a weak start. Other report showed US consumer spending dipped 0.1% in April, but the decline is most likely temporary given the strengthening jobs market. Meanwhile, inflation rose 0.2% in April, pushing the YoY reading up to 1.6%. (Bloomberg)(Reuters)  China to cut reserve requirement ratio for some banks – China said it will cut the reserve requirement ratio for some of the nation’s banks, the government’s latest step to support growth in the world’s second-biggest economy. The cabinet, after a meeting led by Chinese Premier Li Keqiang said that policy makers will appropriately lower the reserve requirement for banks that have extended a certain amount of loans to rural borrowers and smaller companies without giving more details about the reduction. The People’s Bank of China will set up a re- lending facility for smaller companies and has set this year’s quota at CNY50bn. The central bank will also boost bond issues and expand bank credit securitization trials to support small businesses. (Bloomberg)  Japanese inflation quickens to fastest since 1991 – Japan’s industrial production and household spending fell more than forecast, while inflation surged to a 23-year high on a tax rise that is pinching consumers who have seen limited wage gains. According to trade ministry data, production fell 2.5% in April from March 2014, more than a 2% drop forecast by economists surveyed by Bloomberg News. Household spending declined 4.6% from a year earlier, steeper than a projected 3.4% drop, while core consumer prices rose 3.2%. Other data showed that
  4. 4. Page 4 of 6 the unemployment rate stayed at 3.6% in April, while the ratio of jobs per applicant rose to 1.08 from 1.07 in March 2014, pointing to a tightening in the labor market. These data show the challenge faced by Japanese Prime Minister Shinzo Abe as he tries to cap the world’s biggest debt burden, while the Bank of Japan carries out record easing to drive inflation. (Bloomberg)  UBS probed in Belgium over money laundering, organized crime – Switzerland’s biggest bank, UBS AG, is being probed by Belgian authorities over allegations of money laundering and organized crime. UBS employees are reported to have approached wealthy Belgian taxpayers including CEOs and sportsmen over a 10-year period, encouraging them to open undeclared accounts in Switzerland. UBS Belgium, the bank’s local arm, helped to organize the transfer of large amounts of money to Switzerland. However, the bank stated that it does not tolerate any activities intended to help its clients circumvent their tax obligations and that it was unaware of any preliminary investigation of its Belgian operation. European banks are reeling from a series of probes into allegations that they rigged benchmark interest rates, manipulated benchmarks in the currency market, helped clients avoid taxes, laundered money and violated US sanctions. (Bloomberg)  IMF board approves $4.6bn in aid for Greece – Greece is set to receive $4.6bn from the International Monetary Fund (IMF) after the institution's board signed off on the latest review of Greece's rescue package on May 30. The disbursement comes after the IMF and Greece's European lenders completed analyzing Greece's progress under its $236bn bailout, ending six months of protracted negotiations. Greece last got an IMF aid disbursement worth $2.3bn in July 2013. The IMF has so far lent Greece about $15.8bn under a four-year program, to help the country recover from the sovereign debt crisis, rebuild its economy and return to markets. The IMF praised Greece's progress in cutting its debt and bringing its primary budget into surplus ahead of schedule. (Reuters) Regional  QNB Group: Oman on its way to a new growth model – QNB Group (QNBK) said in a weekly report that Oman is on its way to a new growth model with the country’s non-hydrocarbon sector driving economic growth in the Sultanate. Latest figures showed a nominal GDP growth of 2.8%, while real GDP will be available only later this year. Underlying the headline figure, the non- hydrocarbon sector saw a nominal growth rate of 7.6%, while the hydrocarbon sector declined by about 1%. The report said these numbers summarize the economic dynamics in Oman in recent years, where the non-hydrocarbon sector has been driving economic growth, even as oil production has stagnated. The key growth sectors — construction, transport, public administration and defense — have benefited from a large expansion in government spending. As a result, government expenditure has jumped from 33% of GDP in 2010 to 43% of GDP in 2012. As non-oil revenues continue to account for less than 20% of government revenue in Oman, the government financed the spending spree through higher hydrocarbon revenue, taking advantage of high international oil prices. (Peninsula Qatar)  IATA: Mideast carriers show highest growth in 2014 – According to the data released by the International Air Transport Association (IATA), Middle Eastern carriers continue to witness the highest growth rate in both passenger and air freight markets in 2014, with the region rising 18.6% and 8.7%, respectively in April 2014. The region’s carriers outperformed all other regions in both the segments in April as compared to the same month in 2013. (GulfBase.com)  OPEC’s crude output rises in May 2014 – According to Bloomberg, the OPEC’s oil output has risen to a three-month high in May 2014, led by gains in Angola and Saudi Arabia. Output from the 12-member group rose by 75,000 barrels per day (bpd) to an average 29.988mn barrels. In April 2014, production was revised 50,000 bpd higher to 29.913mn barrels because of changes to the Saudi and UAE estimates. Saudi Arabia, the group's biggest producer, bolstered its output by 70,000 bpd to 9.67mn barrels, the first gain in 2014. (GulfBase.com)  AJMC completes third stage of Rabigh facility – Arabian Japanese Membrane Company (AJMC) has completed the second and third stages of its manufacturing facility to produce reverse osmosis membrane elements for seawater desalination in the Kingdom. The Rabigh manufacturing facility has been developed in three stages over the last three years, starting in March 2011. AJMC will be looking to supply membrane elements to the Saudi desalination market initially, and to the wider Middle East and North Africa region at a later stage. (GulfBase.com)  Saudi bank loan growth falls to 11.8% in April 2014 – According to Saudi Arabia’s central bank data, M3 money supply growth decelerated to 13.3% YoY at the end of April 2014 from 13.6% in March 2014. Bank lending growth to the private sector eased to 11.8% in April 2014, the slowest clip since January 2012, from 12.8% in March 2014. The central bank’s net foreign assets climbed to a record high of SR2.732tn in April 2014, up 9% from April 2012, the lowest rate since February 2011. (GulfBase.com)  Al Tayyar to acquire CMT for £13.5mn – Al Tayyar Travel Group has signed an agreement to acquire UK-based Co- operative Travel Management (CMT) for a purchase consideration of £13.5mn. CMT is a joint venture between Thomas Cook, Co-operative Group and Midlands Co-operative. BDO LLP has advised Thomas Cook on the disposal of its UK corporate travel business, which is expected to be completed by June 30, 2014. (GulfBase.com)  Jafza signs MoU with BTMU – Jebel Ali Free Zone Authority (Jafza) has signed a MoU with Bank of Tokyo-Mitsubishi UFJ (BTMU) to support further collaborative efforts in relation to Japanese companies’ business development in the Jebel Ali Free Zone. BTMU aims to further support clients in expanding their business in the free zone by providing comprehensive information on the investment climate and investment trends. (Bloomberg)  Moody’s: Strong fiscal position supports Sharjah’s credit strength – According to a report by Moody’s Investors Services, Sharjah’s credit strength and A3 rating is primarily supported by its strong fiscal and government debt position. The emirate’s strong fiscal position is characterized by small fiscal deficits, low levels of government debt and manageable wider public-sector debt. Sharjah’s credit strength is also supported by the relatively higher degree of economic diversification — as compared to the rest of the UAE and other GCC countries. (GulfBase.com)  UAE Central Bank: Outflows cut surplus in UAE current account balance – According to the report by the UAE Central Bank higher remittances by workers, rising expenses on travel, shipping and other services have had a negative impact on the UAE’s surplus current account balance, which fell 6% in 2013 to AED237bn. The outflow of funds due to services, which include freight & insurance, transport, travel and government services, increased to AED260.7bn in 2013, while the inflow rose to AED63.3bn. During this period, employee remittances increased from AED52.9bn in 2012 to AED65.9bn in 2013. As a result the
  5. 5. Page 5 of 6 surplus in the current account balance shrunk from AED253.3bn in 2012 to AED237.5bn in 2013. However, higher oil proceeds boosted the UAE’s trade balance to AED503.7bn in 2013. Meanwhile, total imports increased by AED88.2bn. (GulfBase.com)  PARC: UAE leads 1Q2014 Arab advertisement spending – According to Pan Arab Research Centre (PARC), the UAE led the Arab world in advertisement spending in 1Q2014, recording AED1.46bn as compared to AED1.39bn in 1Q2013, up by 5%. Saudi Arabia came second with AED737.4mn, while Kuwait came third with AED737mn. The total advertisement spending in the GCC countries fell by 2.6% to around AED4.45bn during 1Q2014, when compared with AED4.57bn in 1Q2013. Bahrain recorded 10% growth during 1Q2014, while Jordan recorded the lowest drop in the Arab world in 1Q2014, dropping by 12%. Arab advertisement spending recorded a growth of 18%, rising to AED17bn compared with AED14.3bn over 1Q2013. (GulfBase.com)  RTA awards AED802mn Dubai Water Canal Project Phase III contract – Dubai’s Roads & Transport Authority (RTA) has awarded contract for the Phase III of its Dubai Water Canal Project to Belhasa Six Construct Company. The Phase III contract covers drilling, constructing sides, building three footbridges linking the two banks of the water canal, and constructing four marine transit stations to boost the role of marine transport. The contract is valued at AED802mn and is expected to be completed in 4Q2016. (Bloomberg)  Green Crescent to ally with AXA, Kanoo Group – Shareholders of Green Crescent Insurance Company have approved the strategic alliance with AXA Group and Kanoo Group that was proposed by the company’s board of directors at the company’s EGM. Green Crescent’s shareholders have agreed to authorize the board to finalize the negotiations with AXA Group and Kanoo Group, who will be the primary investors of a capital increase of AED100mn via a convertible bond instrument, pushing Green Crescent’s paid-up capital to a total of AED200mn upon conversion. (ADX)  Abu Dhabi TDIC invites bids for big hotel project – Abu Dhabi's Tourism Development & Investment Company (TDIC) has invited pre-qualification bids for a major hotel development project in Abu Dhabi. The new 3-4 star hotel project will be coming up on a sprawling 110,000 sqm area at Sir Bani Yas island, which boasts of private airport access, marina facilities and an Arabian wildlife park. Under this contract, TDIC will give the project land on lease to the winning bidder for a period of 30 years for developing the hotel. TDIC has set the minimum bid bond at AED1mn and the offer will be open only to UAE- registered companies. (GulfBase.com)  Ducab sets up AED220mn facility in Kizad – Khalifa Industrial Zone Abu Dhabi (Kizad) and Ducab Aluminium have signed a Musataha agreement, which secured Ducab Aluminium a 546,070 square foot plot of land in Kizad’s aluminium cluster. The plot of land will be used to set up a manufacturing plant with an investment of AED220mn for buildings, machinery and infrastructure. The plant will be Ducab’s sixth unit in the UAE, which is planned to be operational by 2015. (GulfBase.com)  Mobily denies acquiring controlling stake in Atheeb – Etihad Etisalat Company (Mobily) has denied talks about acquiring a controlling stake in fixed-line operator, Etihad Atheeb Telecommunications Company (Atheeb). Earlier, Mobily through its wholly-owned subsidiary Bayanat Al-Oula signed a MoU with four of Atheeb’s founding shareholders in August 2013 for a controlling stake. (GulfBase.com)  Etisalat, PCCW signs deal for voice interconnection – Emirates Telecommunications Corporation (Etisalat) and PCCW Global, the operating division of HKT, a Hong Kong-based telecommunication company have signed a group framework agreement for voice interconnection. This agreement will give Etisalat access to PCCW Global’s international IPX network, ensuring seamless delivery of end-to-end voice and mobile data services to 50 destinations via private and managed IP network. (GulfBase.com)  ADIA buys Aurobindo Pharma shares – Abu Dhabi Investment Authority (ADIA) has bought 1,475,687 shares in India-based Aurobindo Pharma (0.5%) through a block deal on the National Stock Exchange. The shares bought at INR670.5 per share are worth about INR990mn. (Bloomberg)  OEIHC to invest OMR1.999mn in IPOs – Oman & Emirates Investment Holding Company’s (OEIHC) BoD has approved to subscribe in IPOs with an investment of OMR1.999mn. The investment will be distributed in the IPOs of Al Batinah Power Company, 7.8mn shares at a value of OMR998,400, and Al Sawadi Power Company, 7.7mn shares at a value of OMR1.001mn. (MSM)  Duqm Port bunkering unit design to be ready by June; Tenders for terminals to be floated soon – Work on the Oman Oil Marketing Company’s bunkering facility at Duqm Port is likely to start after June 2014 following the completion of the design phase. Design for the $50mn project is in the final stages and is likely to be completed by June. The bunkering facility will meet the fuel oil and marine diesel oil demands of the ships that call at Duqm Port. The project’s engineering, procurement and construction (EPC) contract is expected to be tendered in 3Q2014. Meanwhile, the Special Economic Zone Authority at Duqm (SEZAD) is expected to shortly float tenders for the development of infrastructure linked to the establishment of a number of commercial cargo terminals at Port of Duqm. According to Port of Duqm’s CEO, Rien Van de Ven, this development will be fully implemented over the next 2-3 years and will effectively pave the way for the rollout of full-fledged commercial services at the Sultanate’s largest maritime gateway. (GulfBase.com)  BIC signs partnership deal with AJM Kooheji – Bahrain International Circuit (BIC) has signed up AJM Kooheji Group as a new support partner under a strategic initiative involving closer association with home-grown enterprises. AJM Kooheji Group is best known as the sole distributor of LG consumer electronics in Bahrain. Under the agreement, AJM Kooheji and LG will get co- branding and promotional opportunities at BIC events, activities and roadshows. (GulfBase.com)  BMI Bank reports loss of BHD4.3mn for 1Q2014 – BMI Bank has reported a loss after provisions of BHD4.3mn for 1Q2014 as compared to a net profit of BHD340,000 in 1Q2013. Total assets at the end of 1Q2014 stood at BHD800mn as against BHD730mn a year earlier. Total loans and advances at the end of 1Q2014 stood at the same level of BHD800mn as compared to the figure recorded a year earlier. Customer deposits grew from BHD530m as at the end of December 2013 to BHD580mn at the end of 1Q2014. (GulfBase.com)  VIVA, Silah Gulf signs strategic deal – VIVA Bahrain has entered into an agreement with customer service solutions provider, Silah Gulf. The agreement comes under the ambit of VIVA's Business division, which provides a spectrum of mobility and connectivity products and services for businesses. This agreement will expand Silah’s service portfolio, especially within its existing cloud platform. (GulfBase.com)
  6. 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 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 6 of 6 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg, * Markets closed on May 29, 2014 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 Jun-10 Jan-11 Aug-11 Mar-12 Oct-12 May-13 Dec-13 QE Index S&P Pan Arab S&P GCC 0.3% 2.1% 0.0% 0.2% 1.7% 5.5% 5.0% 0.0% 1.2% 2.4% 3.6% 4.8% 6.0% SaudiArabia Qatar Kuwait* Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,249.73 (0.5) (3.3) 3.7 DJ Industrial 16,717.17 0.1 0.7 0.8 Silver/Ounce 18.82 (1.1) (3.3) (3.3) S&P 500 1,923.57 0.2 1.2 4.1 Crude Oil (Brent)/Barrel (FM Future) 109.41 (0.5) (1.0) (1.3) NASDAQ 100 4,242.62 (0.1) 1.4 1.6 Natural Gas (Henry Hub)/MMBtu 4.49 (2.7) 2.4 3.3 STOXX 600 344.24 (0.1) 0.7 4.9 LPG Propane (Arab Gulf)/Ton 104.37 (0.8) (1.2) (17.3) DAX 9,943.27 0.0 1.8 4.1 LPG Butane (Arab Gulf)/Ton 120.00 0.0 1.7 (12.1) FTSE 100 6,844.51 (0.4) 0.4 1.4 Euro 1.36 0.2 0.0 (0.8) CAC 40 4,519.57 (0.2) 0.6 5.2 Yen 101.77 (0.0) (0.2) (3.4) Nikkei 14,632.38 (0.3) 1.2 (10.2) GBP 1.68 0.2 (0.5) 1.2 MSCI EM 1,027.69 (1.1) (1.5) 2.5 CHF 1.12 0.3 0.1 (0.3) SHANGHAI SE Composite 2,039.21 (0.1) 0.2 (3.6) AUD 0.93 0.0 0.9 4.4 HANG SENG 23,081.65 0.3 0.5 (1.0) USD Index 80.37 (0.2) (0.0) 0.4 BSE SENSEX 24,217.34 (0.1) (1.9) 14.4 RUB 34.90 0.7 2.2 6.2 Bovespa 51,239.34 (1.9) (2.6) (0.5) BRL 0.45 (0.8) (0.8) 5.5 RTS 1,295.75 (1.4) (2.3) (10.2) 196.8 157.3 142.4

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