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30 June Daily market report
30 June Daily market report
30 June Daily market report
30 June Daily market report
30 June Daily market report
30 June Daily market report
30 June Daily market report
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30 June Daily market report

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  • 1. Page 1 of 7 QE Intra-Day Movement Qatar Commentary The QE index declined 1.5% to close at 11,488.9. Losses were led by the Telecoms and Transportation indices, declining 4.1% and 3.3%, respectively. Top losers were Widam Food Co. and Gulf Warehousing Co., falling 5.7% and 5.4%, respectively. Among the top gainers, Qatar National Cement Co. rose 6.6%, while Ezdan Holding Group was up 3.2%. GCC Commentary Saudi Arabia: The TASI index fell marginally to close at 9,513.0. Losses were led by the Insurance and Real Estate Dev. indices, declining 1.2% and 0.7% respectively. Gulf Union Coop. fell 4.7%, while Sanad Ins. was down 4.0%. Dubai: The DFM index declined 4.4% to close at 3,942.8. The Financial Services & Investment index fell 8.4%, while the Services index was down 6.5%. Arabtec Holding and Drake & Scull International declined 10.0% each. Abu Dhabi: The ADX benchmark index fell 2.1% to close at 4,551.0. The Investment & Fin. Ser. index fell 9.8%, while the Real Estate index was down 9.4%. Commercial Bank Int. and Fujairah Building Ind. declined 10.0% each. Kuwait: The KSE index fell 0.1% to close at 6,971.4. The Banking index declined 1.0%, while the Oil & Gas index was down 0.9%. Kuwait Syrian Holding Co. fell 8.3%, while Ekttitab Holding Co. was down 7.6%. Oman: The MSM index rose 0.8% to close at 7,008.3. Gains were led by the Financial and Services indices, rising 0.6% and 0.2%, respectively. Dhofar University gained 7.7%, while Al Batinah Power was up 3.0%. Bahrain: The BHB index gained marginally to close at 1,427.6. The Industrial index rose 0.4%, while the Commercial Banking index was up 0.2%. Bahrain Islamic Bank gained 2.5%, while National Bank of Bahrain was up 2.0%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar National Cement Co. 135.00 6.6 22.3 13.4 Ezdan Holding Group 19.45 3.2 1,245.7 14.4 Mesaieed Petrochemical Holding 31.00 2.5 865.2 210.0 Medicare Group 76.00 1.7 18.9 44.8 Mannai Corp. 111.80 1.2 17.6 24.4 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 15.70 (2.8) 1,949.1 46.6 Masraf Al Rayan 45.50 (2.2) 1,511.0 45.4 Ezdan Holding Group 19.45 3.2 1,245.7 14.4 Barwa Real Estate Co. 35.50 (0.3) 952.4 19.1 Qatar Gas Transport Co. 20.20 (3.8) 914.5 (0.2) Market Indicators 30 Jun 14 29 Jun 14 %Chg. Value Traded (QR mn) 560.7 414.4 35.3 Exch. Market Cap. (QR mn) 632,232.6 636,954.4 (0.7) Volume (mn) 12.6 10.6 19.5 Number of Transactions 6,756 5,569 21.3 Companies Traded 43 43 0.0 Market Breadth 8:28 7:36 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 17,135.55 (1.5) (2.8) 15.5 N/A All Share Index 2,937.98 (1.4) (2.5) 13.5 14.1 Banks 2,772.81 (1.7) (2.0) 13.5 13.8 Industrials 4,016.51 (0.5) (1.5) 14.8 15.7 Transportation 2,007.72 (3.3) (5.3) 8.0 12.9 Real Estate 2,357.88 (0.1) (4.2) 20.7 11.8 Insurance 3,390.10 (0.4) (0.6) 45.1 8.9 Telecoms 1,423.92 (4.1) (6.9) (2.1) 19.6 Consumer 6,448.76 (0.4) (2.3) 8.4 25.4 Al Rayan Islamic Index 3,798.84 (0.8) (3.6) 25.1 16.4 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% United Arab Bank Abu Dhabi 7.19 10.6 0.3 28.2 Qatar Nat. Cement Qatar 135.00 6.6 22.3 13.4 DP World Ltd Dubai 19.70 4.7 199.0 11.2 Al Tayyar Saudi Arabia 119.88 4.2 562.8 40.1 A. Othaim Market Saudi Arabia 106.50 3.6 743.5 70.7 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Arabtec Holding Co Dubai 2.61 (10.0) 78,875.4 27.3 Drake & Scull Int. Dubai 1.35 (10.0) 37,093.8 (6.3) Ajman Bank Dubai 2.49 (9.8) 142.3 0.4 Dubai Fin. Market Dubai 2.61 (9.7) 13,848.9 5.7 Aldar Properties Abu Dhabi 3.10 (9.6) 51,120.1 12.3 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% Widam Food Co. 49.50 (5.7) 23.2 (4.3) Gulf Warehousing Co. 44.95 (5.4) 36.4 8.3 Salam International Investment Co 15.38 (5.1) 373.8 18.2 Ooredoo 118.90 (4.4) 339.7 (13.3) Qatar Oman Investment Co. 13.35 (4.0) 93.8 6.6 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Masraf Al Rayan 45.50 (2.2) 69,248.5 45.4 QNB Group 163.30 (1.0) 59,831.4 (5.1) Ooredoo 118.90 (4.4) 40,365.3 (13.3) Qatar Insurance Co. 80.00 0.0 37,706.2 50.4 Industries Qatar 169.00 0.0 36,349.4 0.1 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* 11,488.87 (1.5) (2.8) (16.1) 10.7 154.00 173,674.3 14.3 1.9 4.4 Dubai 3,942.82 (4.4) (6.6) (22.5) 17.0 268.51 79,707.2 15.8 1.5 2.6 Abu Dhabi 4,551.02 (2.1) (2.4) (13.4) 6.1 120.92 128,590.5 13.5 1.7 3.7 Saudi Arabia 9,513.02 (0.0) (0.6) (3.2) 11.5 1,399.87 518,576.8 18.9 2.3 3.0 Kuwait 6,971.44 (0.1) (0.1) (4.4) (7.7) 51.69 109,337.5 16.5 1.1 4.0 Oman 7,008.27 0.8 0.9 2.2 2.5 40.90 25,903.7 12.2 1.7 3.9 Bahrain 1,427.61 0.0 (0.3) (2.2) 14.3 0.79 53,428.0 11.2 1.0 4.8 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 11,400 11,500 11,600 11,700 11,800 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  • 2. Page 2 of 7 Qatar Market Commentary  The QE index declined 1.5% to close at 11,488.9. The Telecoms and Transportation indices led the losses. The index fell on the back of selling pressure from non-Qatari shareholders despite buying support from Qatari shareholders.  Widam Food Co. and Gulf Warehousing Co. were the top losers, falling 5.7% and 5.4%, respectively. Among the top gainers, Qatar National Cement Co. rose 6.6%, while Ezdan Holding Group was up 3.2%.  Volume of shares traded on Monday rose by 19.5% to 12.6mn from 10.6mn on Sunday. However, as compared to the 30-day moving average of 22.2mn, volume for the day was 43.1% lower. Vodafone Qatar and Masraf Al Rayan were the most active stocks, contributing 15.4% and 12.0% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Ratings, Earnings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Sharjah Islamic Bank (SIB) Moody’s UAE LT IR/ST IR/BFSR – A3/Prime-2/D+ – Stable – Union National Bank (UNB) CI Abu Dhabi FSR/LT FCR/ST FCR/SR A/A/A1/1 A/A/A1/1 – Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Currency Rating, LCR – Local Currency Rating, IR – Issuer Rating, SR – Support Rating, LC – Local Currency, BFSR – Bank Financial Strength Rating) Earnings Releases Company Market Currency Revenue (mn)1Q2014 % Change YoY Operating Profit (mn) 1Q2014 % Change YoY Net Profit (mn) 1Q2014 % Change YoY Sudatel Telecom Group (Sudatel)* Abu Dhabi USD 453.2 -11.7% 150.9 1.7% -16.9 NA Source: Company data, DFM, ADX, MSM (* FY2013 results) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 06/30 EU European Central Bank M3 Money Supply YoY May 1.00% 0.80% 0.70% 06/30 EU European Central Bank M3 3-month average May 0.90% 0.80% 1.00% 06/30 EU Eurostat CPI Estimate YoY June 0.50% 0.50% 0.50% 06/30 EU Eurostat CPI Core YoY June 0.80% 0.70% 0.70% 06/30 UK Bank of England Mortgage Approvals May 61.7K 61.8K 62.8K 06/30 UK Bank of England Money Supply M4 MoM May -0.10% -0.10% -0.20% 06/30 UK Bank of England M4 Money Supply YoY May -0.90% -0.30% -0.60% 06/30 UK Bank of England M4 Ex IOFCs 3M Annualised May 2.70% 3.10% 4.50% 06/30 Spain Bank of Spain Current Account Balance April -1.6B – -1.8B 06/30 Italy ISTAT PPI MoM May -0.10% – -0.20% 06/30 Italy ISTAT PPI YoY May -1.70% – -1.70% 06/30 Japan METI Industrial Production MoM May 0.50% 0.90% -2.80% 06/30 Japan METI Industrial Production YoY May 0.80% 1.50% 3.80% 06/30 Japan Shoko Chukin Bank Small Business Confidence June 47.3 – 46.6 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 57.97% 37.60% 114,225,263.63 Non-Qatari 42.03% 62.40% (114,225,263.63)
  • 3. Page 3 of 7 News Qatar  MDPS: Qatari economy grows by 6.2% YoY in 1Q2014, PPI rises 0.6% YoY in April – According to the Ministry of Development Planning & Statistics (MDPS), Qatar’s inflation- adjusted (real) economy is estimated to have grown by 6.2% YoY in 1Q2014 with construction, trade and finance sectors witnessing double-digit growth. However, the country’s hydrocarbon sector witnessed a 1.2% YoY fall in the review period due to receding crude oil production and flat full capacity gas production, but was more than made up by a 11.5% growth in the non-hydrocarbon segment. The country had seen its real economy (at constant prices) expand 2.3% in 1Q2014 as compared to 4Q2013 with both hydrocarbon & non-hydrocarbon sectors reporting 1.8% and 2.5% growth, respectively. The construction sector surged YoY 19.6%; trade, hotels & restaurant (19%); finance, insurance, real estate & business services (14.6%); transport & communication (9%); utilities (5.9%); agriculture & fishing (7.9%) and manufacturing (0.6%). In nominal terms (at current prices), Qatar’s economy is estimated to have grown 2.6% YoY in 1Q2014 with construction, trade, finance, utilities and transport & communication expanding in double-digits. While the hydrocarbon sector growth fell 4.5%, the country’s non-hydrocarbon segment accelerated 12.3%. Qatar’s construction saw a 22.4% growth, followed by trade, hotels & restaurants (21.8%); finance, insurance, real estate & business services (18.1%); electricity & water (15.7%); transport & communication (10.2%); agriculture & fishing (9.5%) and manufacturing (1%). The economy had grown 2.1% as compared to 4Q2013 with both the hydrocarbon and non- hydrocarbon sectors growing 2.9% and 2.1%, respectively. Meanwhile, driven by higher prices for basic chemicals & metals, crude petroleum & natural gas and water, Qatar’s producer price index (PPI) rose 0.6% YoY in April 2014, according to MDPS. However, the PPI, which measures average changes in prices received by domestic producers for their output, plunged 3.1% as compared to March 2014 mainly on a steep fall in mining and manufacturing indices. (Gulf- Times.com)  Advisory Council approves draft law on tax exemption for foreign investors – The Advisory Council has approved the draft law sent by the Cabinet to exempt foreigners trading in Qatari stocks from paying tax on capital gains and on income from dividends & interest on bonds, including Sukuk. The draft law applies to foreign investment, mutual and portfolio funds. Foreign companies and individuals with subscriptions to the funds could also avail tax exemption on earnings once the law is enforced. The Financial and Economic Affairs Committee of the council prepared a report on the draft law after the council asked it to have a fresh look at it. The committee had originally asked the council to approve the draft law, but the council raised some objections and referred the draft back to it. The committee in its fresh report recommended the approval of the draft. (Peninsula Qatar)  Ashghal: C-Ring Road project sees considerable progress – The Public Works Authority (Ashghal) has made considerable progress on the construction of the first phase of the C-Ring Road development project. Ashghal said that the Umm Ghuwailina roundabout, also known as the VIP roundabout has been removed and converted into an intersection. Ashghal is currently laying the pre-final layer of asphalt on the newly-added lanes on this intersection and will soon start installing traffic lights & connecting them to the Intelligent Transportation System (ITS). As part of the project, Ashghal has diverted & protected the existing infrastructure utilities in the area and upgraded them, in addition to laying asphalt on both sides of the road stretching from Umm Ghuwailina roundabout to Najma intersection. The construction work on the first phase of the project is expected to be completed as per schedule in the third quarter of 2014. The C-Ring Road development project is part of a series of projects implemented by Ashghal to improve the network of local roads and expressways across the country. (Gulf-Times.com)  QEWS to build new plant – Qatar Electricity & Water Company (QEWS) will expand its production capacity by building a plant with an installed capacity of 2,400MW of power and 130mn gallons of desalinated water per day. The plant will be located in Umm Al Haul. QEWS’ General Manager Fahad Al Muhannadi said that the company expects to award the contract within the next three months. Al Muhannadi said that four companies have evinced interest to participate in the bidding process. According to reports, Qatar’s current power generation capacity is 8,700MW, while the expected peak load during summer 2014 is about 6,800MW, which means there is a surplus capacity of about 2,000MW. All power stations are fully equipped and prepared to operate at full capacity to meet the peak demand during the summer which coincides with Ramadan when demand for electricity and water is expected to increase. QEWS is the first private sector company in the region, engaged in the generation of electricity and desalinated water supplied to Qatar General Electricity & Water Corporation (Kahramaa) – the sole distributor of utilities in the country. (Peninsula Qatar)  MERS teams up with ORDS as Nojoom partner – Ooredoo (ORDS) has announced that Al Meera Consumer Goods Company (MERS) will be its newest Nojoom partner this Ramadan. The telecom giant said that the move was an effort to continue bringing a larger variety of reward options for customers during the holy month. Ooredoo customers can now redeem Nojoom points and complete their shopping at selected Al Meera outlets in Qatar until July 27. (Gulf-Times.com)  QD-CPC Industries commences operations in Qatar – QD- CPC for Industries has announced the inception of its business in Qatar in the areas of construction & real estate development in the Qatari market, as well as to provide contractors and real estate developers in Qatar with all their needs under its recent vast urban renaissance. QD-CPC for Industries was founded in 2011 as a Saudi-Qatari partnership which includes the Qatari Diar, Barwa Real Estate Company (BRES), Saudi Binladen and CPC International, an affiliate of Construction Products Holding Company (CPC), which is specialized in providing all construction products under one roof. (GulfBase.com)  QIBK to disclose results on July 14, 2014 – Qatar Islamic Bank (QIBK) will disclose the financial reports for the period ending June 30, 2014, on July 14, 2014. (QE)  QGTS to disclose results on July 15, 2014 – Qatar Gas & Transport Co. (QGTS) will disclose its financial results for the period ending June 30, 2014, on July 15, 2014. (QE)  QNNS to disclose results on July 20, 2014 – Qatar Navigation (QNNS) will disclose its financial results for the period ending June 30, 2014, on July 20, 2014. (QE)  ORDS to disclose results on July 23, 2014 – Ooredoo (ORDS) will disclose its financial results for the period ending June 30, 2014, on July 23, 2014. (QE)
  • 4. Page 4 of 7 International  Fed awards record amount of reverse repos – According to the New York Federal Reserve the Federal Reserve awarded a record amount of reverse repurchase agreements to banks, money market funds and mortgage finance agencies on Monday. The US central bank has ramped up testing of its fixed- rate reverse repo program which it created to help achieve its interest rate target when it decides to move away from its current near-zero rate policy. The New York Fed said, the central bank on Monday issued $339.5bn of these overnight loans to 97 bidders to whom it will pay an overnight rate of 0.05%. This was more than double the $140.9bn the Fed awarded on Friday. (Reuters)  BNP to pay almost $9bn to end US sanctions probe – BNP Paribas SA (BNP) agreed to plead guilty to US sanctions violations and pay $8.97bn after prosecutors resisted French opposition to the record punishment, saying it serves as a warning to financial firms. BNP Paribas, France’s largest bank, admitted in court documents yesterday that it processed almost $9bn in banned transactions from 2004 to 2012 involving Sudan, Iran and Cuba. The company will be barred from US dollar- clearing operations for one year for its oil and gas commodity finance business, and it promised not to employ 13 key executives. Overtures this year by numerous French officials, including President Francois Hollande, weren’t enough to persuade US authorities to take a more lenient approach with the Paris-based lender amid concerns that a large penalty could undermine Europe’s financial system. The bank said it will take a second-quarter charge of $7.9bn. (Bloomberg)  ECB to wait for June measures to bite as inflation stays low – Euro zone inflation remained stuck at levels last seen during the 2009 recession and lending to companies and households contracted again, data showed on Monday, further highlighting the bloc's feeble economic state. The reports - for June and May, respectively - underlined the reason for the European Central Bank's(ECB) unprecedented policy steps earlier in June when it cut interest rates to record lows and promised to hand out more long-term loans to encourage banks to lend more freely. It will take a while for the measures to take effect and they would not have influenced Monday's releases. Details have not yet been announced for the long-term loans and most economists do not expect any fresh policy steps when the ECB meets on Thursday. But there is no sign that the pressure on the ECB is easing. The European Union's statistics office Eurostat said annual euro zone inflation stayed at 0.5% in June compared with last month. Core annual inflation - excluding energy, food, alcohol and tobacco - inched up to 0.8%. (Reuters)  Japan’s companies lift investment plans even as mood weakens – Japanese companies increased their investment plans more than forecast even as a sales-tax hike dented sentiment, potentially aiding Prime Minister Shinzo Abe’s effort to stoke an economic recovery. A Bank of Japan report showed large companies across all industries plan to lift capital spending 7.4% this fiscal year through March, more than a 0.1% increase they signaled three months earlier. That was above a median 6% gain forecast in a survey of 22 economists by Bloomberg News. A gauge of sentiment among large manufacturers fell to 12 from 17 in March. Abe is counting on companies to use record cash holdings to boost investment and wages as consumers feel a crunch from inflation five-times faster than income growth as the Bank of Japan pumps record stimulus. Capital expenditure remains well below a 2007 peak, and about the same level as in the late 1980s, underscoring Abe’s intention to create fresh business opportunities and incentives for corporate spending at home. (Bloomberg)  China manufacturing gauge rises to six-month high – China’s manufacturing expanded in June at the fastest pace this year, adding to signs that the government’s efforts to arrest a slowdown are helping to stabilize the world’s second-biggest economy. The National Bureau of Statistics and China Federation of Logistics and Purchasing said the Purchasing Managers’ Index (CPMINDX) was at 51.0, matching the median estimate of analysts surveyed by Bloomberg News. May’s reading was 50.8, with numbers above 50 signaling expansion. The pickup will help protect the government’s growth target of about 7.5% this year, after authorities unveiled steps including faster infrastructure investment, tax breaks and lower reserve requirements for some banks. A slumping property market and rising bad debts threaten to sap any gains in the second half. (Bloomberg) Regional  OPEC June output rises as members fill in for Iraq loss – A Bloomberg survey showed that OPEC crude production climbed for the second month in June as gains in Saudi Arabia and Nigeria made up for the loss of Iraqi barrels. According to the survey of oil companies, producers and analysts, production by the 12-member OPEC rose by 278,000 bpd to 30.223mn. Last month’s total was revised 43,000 barrels a day lower to 29.945mn because of changes to the Kuwaiti, Libyan and Ecuadorian estimates. Violence flared up in Iraq, OPEC’s second-biggest producer this month as a militant group seized Mosul, the country’s biggest northern city, and advanced south toward Baghdad. Fears that the upsurge may ignite a civil war sent prices higher. (Bloomberg)  Abraaj mandates Citi to evaluate options for K-Electric stake – Abraaj Group has hired Citigroup to evaluate strategic options for its stake in K-Electic, an integrated power utility based in Pakistan. Earlier, Abraaj acquired a controlling share in K-Electric in 2009 through its investment in KES Power, the majority shareholder of K-Electric. (Bloomberg)  Falcom, Sedco sign strategic partnership agreement – Falcom Financial Services and Sedco Capital have signed a strategic partnership agreement in Riyadh. Under the terms of the agreement, Sedco Capital will manage the investment portfolio of Falcom Arab Markets registered at the Capital Market Authority (CMA). (GulfBase.com)  Qalaa, CPC ink sale-purchase agreement for sale of Sphinx Glass – Egypt-based Qalaa Holdings (formerly known as Citadel Capital) and Saudi-based Construction Products Holding Company’s (CPC) subsidiary – CPC Emirates have signed a sale and purchase agreement for the sale of 100% of Sphinx Glass. The size of the transaction implies an enterprise value of around $180mn, which translates into a cash consideration of $114.2mn for 100% of the shares after deducting debt and liabilities to be assumed by CPC. The transfer of cash and shares is expected to conclude in July 2014. Qalaa Holdings’ 73.3% stake in Sphinx Glass will result in cash proceeds of around $73mn to Qalaa Holdings after the estimated capital gains tax. (GulfBase.com)  Saudi Post, Alinma Bank sign global remittance deal with Western Union – Saudi Postal Corporation and Alinma Bank have entered into an agreement with Western Union to offer Western Union money transfer services in the Kingdom. Under the terms of the agreement, remittance services will be offered through the Ersal money transfer service, which is the money transfer JV launched by Saudi Post and Alinma Bank in 2013.
  • 5. Page 5 of 7 Starting in Ramadan, the service will be available at 15 post office locations across the Kingdom, taking the number of Western Union locations in the country to over 200. (GulfBase.com)  Saudi unveils SR55bn Madinah residential development – Saudi Arabia is set to develop a mammoth housing project in Madinah at a cost of SR55bn on a 1.6mn square meters area. The project will be executed in two phases and is expected to be completed within two years. The first phase will involve infrastructure preparations for the project at a cost of SR12bn, while the second phase will witness the construction of the towers which will begin before the upcoming Hajj season. The project will boast of 20 administrative towers and 80 residential towers (each over 30-storey high) besides a monorail station, restaurants and shops. The project will also house a 400-bed hospital and catering facilities. (GulfBase.com)  Saudi CMA approves change in Nomura’s business profile – The Saudi CMA’s board of commissioners has approved the amendment of the business profile of Nomura Saudi Arabia Company by cancelling its dealing as principal and agent, managing investment fund, discretionary portfolio management and custody. The company is now authorized to conduct arranging and advising activities. (Tadawul)  Saudi CMA approves change in Anfaal Capital’s business profile – The Saudi CMA’s board of commissioners has approved the amendment of the business profile of Anfaal Capital Company by adding its dealing as principal activity. The company is now authorized to conduct dealing as principal, managing investment funds, discretionary portfolio management, arranging, advising and custody activities. (Tadawul)  Saudi CMA approves SEDCO’s capital increase – The Saudi CMA’s board of commissioners has approved SEDCO Capital Company’s request to increase its capital from SR50mn to SR200mn. (Tadawul)  SAMAPCO begins commercial operations – The joint venture of Saudi Arabia Mining Company (MAADEN) and Sahara Petrochemical Company, Sahara & Maaden Petrochemical Company (SAMAPCO), has begun commercial operations. The plant is designed to produce 250,000 tons per year of concentrated caustic soda and 300,000 tons of ethylene dichloride (EDC). (Tadawul)  KHC, PBME sign JV agreement to invest in Africa – Kingdom Holding Company (KHC) and PineBridge Investments Middle East (PBME) have signed a MoU to establish a joint venture (JV) platform to invest in direct private equity opportunities in Africa. The JV will invest in African companies, in response to rising investor demand for exposure to the continent's fast- growing economies. The key focus sectors include manufacturing, consumer-driven sectors, infrastructure, financial services and other sectors. (Bloomberg)  Atheeb sells Riyadh real estate for SR160mn – Etihad Atheeb Telecommunications Company (Atheeb) has sold a building and two plots of land in Riyadh for SR160mn. These assets had a book value of SR60mn, giving Atheeb a gain of SR100mn. (Reuters)  SMC ties up with Bavarian-Arab Society – The Sharjah Media Centre (SMC) has signed a MoU with the Munich-based Bavarian-Arab Society to promote Sharjah’s presence in the German media and business sector. The two sides will use the MoU to boost media cooperation and exchange knowledge & skills. Both parties will coordinate efforts in organizing conferences, forums and other events at the International Press Club of Munich. (GulfBase.com)  Nakheel unveils plan for Deira Islands shopping mall – Dubai developer Nakheel will construct a 620,000 square meters retail, dining and entertainment hub at Deira Islands, its new 15.3 square kilometers waterfront destination development in Dubai as part of its retail expansion strategy. Nakheel has awarded a contract for nearly AED40mn to RSP Architects, Planners and Engineers to work as the design and supervision consultant for Deira Islands Mall, which will have over 200,000 sq m of leasable space, hundreds of shops, cinemas and a wide variety of cafes & restaurants. RSP has also been appointed the design consultant for Nakheel Mall on Palm Jumeirah. (GulfBase.com)  Etisalat & Huawei announce successful trial of optical transport network technology – Emirates Telecommunication Corporation (Etisalat) and Huawei have announced the successful trial of a new OSN9800 U16 & 400G optical transport network technology in the UAE, which can be used to expand Etisalat’s network capacity in the future in order to meet the increasing bandwidth requirements from local customers. The latest trial is the first time that the Huawei’s flagship OptiX OSN 9800 U16 solution has been tested worldwide and it is the first time in the MENA region that a commercially available OTN- based 400G line board has been tested. (GulfBase.com)  SCAD: Total value of non-oil foreign merchandise trade reaches AED34.9bn in 1Q2014 – According to a report released by the Statistics Centre Abu Dhabi (SCAD), the total value of non-oil foreign merchandise trade reached AED34.9bn in 1Q2014, reflecting an increase of AED1.9bn (5.9%) as compared to 1Q2013. Imports increased by AED763mn (3.1%), non-oil exports rose by AED1,602mn (44.2%), while the value of re-exports decreased by AED431mn (9.9%) over the same period. Imports contributed 73.8% of the total foreign trade in 1Q2014, while non-oil exports and re-exports contributed 15% and 11.2% respectively. Machinery & transport equipment was the largest contributor to imports in 1Q2014, representing 47.8% of the total imports. Its value increased by AED1,101mn (9.8%) as compared to 1Q2013. The second largest section in 1Q2014 was manufactured goods classified by material at AED5,655mn, indicating a decrease of AED434mn (7.1%) as compared to 1Q2013. The third largest was chemicals and related products representing 10.2% of the total. Its value increased by AED319mn (13.8%) over the same period. The Asia continent represented the leading source (43.9%) of imports in 1Q2014. Imports from Europe and North America represented 31.5% and 12.6% of the total imports during the quarter. The US emerged as the leading destination of imports with AED3,025mn. There were increases in imports from France (up AED501mn), Japan (up AED366mn), China (up AED323mn), and Germany (up AED300mn). These were partially offset by decreases from Italy (down AED498mn), and Saudi Arabia (down AED438mn). (GulfBase.com)  ADFD provides AED33mn backing for Sierra Leone solar park – Abu Dhabi Fund for Development (ADFD) is backing a solar power project in Sierra Leone. As part of a long-term, low- interest loan agreement, ADFD will provide AED33mn to build a 6 megawatt solar park in Sierra Leone’s capital Freetown. The project will be directly monitored by ADFD. The total cost of the project is $18mn, funded equally by ADFD and the Sierra Leone government. The solar park will be constructed along the 21- kilometre Toke-Lumley highway. (GulfBase.com)  ADNOC, GE sign MoU with PI – Abu Dhabi National Oil Company (ADNOC) and GE Oil & Gas (GE) have signed a MoU
  • 6. Page 6 of 7 with the Petroleum Institute University & Research Center (PI) to provide specialized training programs, summer internship opportunities and educational tools for PI students as part of its commitment to promote human capital development and promote knowledge-sharing. As part of the three-year agreement, GE will support at least one senior graduation project per academic year and two training sessions per semester on subjects related to turbo-machinery, rotating equipment vibration analysis and inspection technologies. GE will also host at least one field visit every academic semester and initially provide about three to four summer internship opportunities with the goal of expanding it to 10 internships over the next three years. (GulfBase.com)  TCA: Abu Dhabi hotel sector revenue rises 14% to AED2.6bn – According to the Abu Dhabi Tourism & Culture Authority (TCA), Abu Dhabi's hotel sector witnessed a 78% increase in occupancy rates from January 2014 to May 2014. More than 1.4mn guests stayed in the Emirate’s 155 hotels and hotel apartments, reflecting a 30% increase over the same in 2013. Hotel revenues rose 14% to AED2.6bn with food & beverage income climbing 12% to just over AED1bn. Abu Dhabi saw a 30% growth in domestic guests for the first five months in 2014, while internationally India is now the top performing market for the Emirate. (Bloomberg)  Etihad, ANZ sign agreement to provide line maintenance services – Etihad Airways and Air New Zealand (ANZ) have signed an agreement to provide line maintenance services in Melbourne, Australia and Los Angeles, US. The agreement continues an existing service provided by ANZ to perform full- line maintenance services for Etihad in Los Angeles. However, Etihad will soon perform all scheduled and non-scheduled line maintenance services on Air New Zealand aircraft in Melbourne. ANZ operates an average of five daily flights from Melbourne to destinations in New Zealand. (Bloomberg)  Al Hamra secures AED850mn financing – Al Hamra Real Estate Development (Al Hamra) has obtained an AED850mn financing facility from international and local banks led by Goldman Sachs. Al Hamra intends to use the seven-year facility to refinance existing debt as well as to finance the planned new real estate projects. (Reuters)  OCC bags OMR58,000 export order from US – Oman Ceramics Company (OCC) has received an export order worth OMR58,000 from the US. The regular supply of the order has already begun from January 2014. The company expects more orders from the US and sales to this region are expected to go up to 30% (of the total export sales) by 2014-end. OCC also bagged another order worth OMR105,000 from Suhail Bahwan for a residential project in Al Hail. (GulfBase.com)  Muscat Fund to invest in IPOs, GDSs – Muscat Fund’s AGM has decided to invest in IPOs in Oman and Global Depository Receipts (GDRs) in global financial markets related to companies listed on the Muscat Securities Market (MSM).  National Gas wins contract extension – National Gas Company has received contract extension from upstream oil production company, Daleel Petroleum for an additional two- year period. The contract is extended considering the performance of National Gas in last six years, and will be effective till July 31, 2016. (MSM)  ACWA Power Barka’s BoD clarifies dividend announcement – Concurrent to ACWA Power Barka’s announcement on June 18, 2014, its board of directors has clarified that the 20% announced dividend amounting to OMR3.2mn is based on the retained earnings as per the audited financial statements as of December 31, 2013. (MSM)  Alba expansion work to start by 2014-end – Aluminium Bahrain’s (Alba) CEO, Tim Murray, said that the company’s proposed $2.5bn expansion program to add a sixth production line is likely to start by the end of 2014. The bankable feasibility study is almost complete and the project is now subject to approvals from the board and authorities. The construction of a fifth power station will also be a part of the expansion program. The next steps include finalizing the long-term contracts to secure gas supplies for powering the new line. The project would take 36 months for completion from the commencement date. Once the sixth potline goes on stream, Alba expects to produce an additional 400,000 tons of aluminum a year, boosting its current production capacity by 45% to around 1.3mn tons. (GulfBase.com)  Bahrain signs BHD13mn water project contracts – Bahrain has signed BHD13mn contracts with two local companies for the installation of ground storage tanks as part of the second phase of its water transmission development project, which is financed by the Kuwait Fund for Arab Economic Development. Electricity and Water Authority CEO, Shaikh Nawaf bin Ibrahim Al Khalifa, signed a BHD8.8mn contract with Panorama Contracting and Engineering Services for the construction of two tanks with a capacity of 20mn gallons at Hidd Pumping Station and a 10mn gallons tank at the Refinery Distribution Station. The country has also signed a BHD3.8mn contract with Ramsis Engineering for two tanks with a capacity of 5mn gallons and another 2mn gallons tank at the West Riffa Blending Station. (GulfBase.com)  BAB signs MoU with 21CC – The Bahrain Association of Banks (BAB) has signed a MoU with the newly-formed firm 21st Century Consulting (21CC). The main objective of this association is to help promote the highest standards of ethical banking standards through the proliferation of knowledge, education and research in this sector. (GulfBase.com)
  • 7. Contacts Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 7 of 7 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 200.0 210.0 Jul-10 Jul-11 Jul-12 Jul-13 QE Index S&P Pan Arab S&P GCC (0.0%) (1.5%) (0.1%) 0.0% 0.8% (2.1%) (4.4%) (5.6%) (4.2%) (2.8%) (1.4%) 0.0% 1.4% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,327.32 0.8 0.8 10.1 DJ Industrial 16,826.60 (0.1) (0.1) 1.5 Silver/Ounce 21.03 0.3 0.3 8.0 S&P 500 1,960.23 (0.0) (0.0) 6.1 Crude Oil (Brent)/Barrel (FM Future) 112.36 (0.8) (0.8) 1.4 NASDAQ 100 4,408.18 0.2 0.2 5.5 Natural Gas (Henry Hub)/MMBtu 4.42 0.9 0.9 1.7 STOXX 600 341.86 (0.0) (0.0) 4.1 LPG Propane (Arab Gulf)/Ton 105.63 (1.4) (1.4) (16.5) DAX 9,833.07 0.2 0.2 2.9 LPG Butane (Arab Gulf)/Ton 126.00 (0.6) (0.6) (7.2) FTSE 100 6,743.94 (0.2) (0.2) (0.1) Euro 1.37 0.3 0.3 (0.4) CAC 40 4,422.84 (0.3) (0.3) 3.0 Yen 101.33 (0.1) (0.1) (3.8) Nikkei 15,162.10 0.4 0.4 (6.9) GBP 1.71 0.4 0.4 3.3 MSCI EM 1,050.78 0.4 0.4 4.8 CHF 1.13 0.5 0.5 0.7 SHANGHAI SE Composite 2,048.33 0.6 0.6 (3.2) AUD 0.94 0.1 0.1 5.8 HANG SENG 23,190.72 (0.1) (0.1) (0.5) USD Index 79.78 (0.3) (0.3) (0.3) BSE SENSEX 25,413.78 1.3 1.3 20.0 RUB 33.98 0.8 0.8 3.4 Bovespa 53,168.22 0.0 0.0 3.2 BRL 0.45 (0.9) (0.9) 6.8 RTS 1,366.08 (1.0) (1.0) (5.3) 165.1 145.8 132.7

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