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6 May Daily market report

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  • 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index declined 0.4% to close at 12,933.8. Losses were led by the Industrials and Telecoms indices, falling 0.9% and 0.5% respectively. Top losers were Qatar Islamic Bank and Qatar National Cement Co., falling 1.9% and 1.7% respectively. Among the top gainers, Mazaya Qatar Real Estate Dev. rose 3.5%, while Zad Holding Co. gained 2.2%. GCC Commentary Saudi Arabia: The TASI index rose marginally to close at 9,744.1. Gains were led by Energy & Uti. and Cement indices, rising 1.4% and 0.9% respectively. Wafrah for Ind. & Dev. rose 9.7%, while Basic Chem. Ind. was up 5.3%. Dubai: The DFM index gained 0.8% to close at 5,374.1. The Transportation index gained 3.9%, while the Insurance index rose 1.6%. Air Arabia Co. rose 8.9%, while Dubai National Insurance & Reinsurance Co. was up 6.5%. Abu Dhabi: The ADX benchmark index fell 0.8% to close at 5,052.5. The Real Estate index declined 2.7%, while Industrial index was down 2.0%. Umm Al Qaiwain Cement Ind. fell 8.3%, while Al Khazna Ins. Co. was down 8.1%. Kuwait: The KSE index gained 0.3% to close at 7,399.8. The Oil & Gas index rose 0.9%, while Consumer Services index was up 0.8%. Zima Holding Co. gained 9.6%, while Gulf Glass Manufacturing Co. was up 8.3%. Oman: The MSM index rose marginally to close at 6,762.4. Gains were led by the Services index rising 0.1%, while other indices ended in red. United Finance gained 4.9%, while Oman National Engine. Invt. was up 3.4%. Bahrain: The BHB index gained 0.8% to close at 1,466.7. The Commercial Banking Index rose 1.7%, while Services Index was up 0.1%. Ahli United Bank rose 3.8%, while Arab Banking Corporation was up 2.0%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 20.69 3.5 3,610.2 85.1 Zad Holding Co. 77.90 2.2 2.6 12.1 Qatar German Co. for Med. Dev. 14.70 2.1 451.8 6.1 Dlala Brokerage & Inv. Holding Co. 37.10 1.9 642.0 67.9 Mesaieed Petrochem. Holding 35.20 1.9 1,423.0 252.0 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% United Development Co. 26.05 1.2 4,604.7 21.0 Mazaya Qatar Real Estate Dev. 20.69 3.5 3,610.2 85.1 Vodafone Qatar 18.71 (0.7) 3,087.9 74.7 Qatari Investors Group 69.00 (0.6) 3,004.2 57.9 Qatar Gas Transport Co. 25.40 0.8 2,098.3 25.4 Market Indicators 06 May 14 05 May 14 %Chg. Value Traded (QR mn) 987.8 1,253.7 (21.2) Exch. Market Cap. (QR mn) 732,605.3 733,492.3 (0.1) Volume (mn) 25.6 32.9 (22.1) Number of Transactions 10,129 12,532 (19.2) Companies Traded 41 42 (2.4) Market Breadth 17:23 27:9 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 19,287.13 (0.4) 1.6 30.1 N/A All Share Index 3,305.48 (0.4) 1.6 27.7 15.9 Banks 3,153.59 (0.3) 1.8 29.0 15.7 Industrials 4,377.02 (0.9) 1.5 25.1 17.0 Transportation 2,403.82 0.7 1.5 29.3 15.5 Real Estate 2,668.16 0.4 1.7 36.6 13.3 Insurance 3,304.87 (0.1) 2.3 41.5 8.7 Telecoms 1,741.63 (0.5) 2.2 19.8 24.3 Consumer 7,344.30 (0.3) (0.4) 23.5 30.0 Al Rayan Islamic Index 4,291.46 (0.2) 2.3 41.3 18.5 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Air Arabia Dubai 1.47 8.9 125,783.0 (5.2) NBQ Abu Dhabi 3.50 6.1 440.0 6.1 Nat. Mar. Dred. Co. Abu Dhabi 8.97 5.9 25.2 4.3 Arabtec Holding Co. Dubai 9.73 4.5 67,955.0 239.0 Ahli United Bank Bahrain 0.83 3.7 1,666.8 20.2 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Albaraka Banking Gr. Bahrain 0.81 (5.3) 79.2 13.5 Gulf Pharmaceutical Abu Dhabi 3.13 (5.2) 2.4 5.3 Mabanee Co. Kuwait 1.12 (5.1) 781.9 0.0 IFA Hotels & Resorts Kuwait 0.22 (4.3) 309.0 (22.8) Aldar Properties Abu Dhabi 4.07 (2.9) 61,007.7 47.5 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 Islamic Bank 88.30 (1.9) 121.0 28.0 Qatar National Cement Co. 142.30 (1.7) 4.4 19.6 Medicare Group 88.40 (1.4) 94.6 68.4 Qatar Electricity & Water Co. 182.00 (1.4) 69.3 10.1 Commercial Bank of Qatar 69.00 (1.0) 121.1 16.9 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Qatari Investors Group 69.00 (0.6) 210,148.0 57.9 United Development Co. 26.05 1.2 120,185.5 21.0 Mazaya Qatar Real Estate Dev. 20.69 3.5 74,425.4 85.1 Industries Qatar 186.50 (1.0) 59,455.1 10.4 Vodafone Qatar 18.71 (0.7) 57,509.7 74.7 Source: Bloomberg (* in QR) Regional Indices Close 1D% WTD% MTD% YTD% Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 12,933.83 (0.4) 1.6 2.0 24.6 222.89 201,246.7 16.1 2.2 3.9 Dubai 5,374.11 0.8 5.8 6.2 59.5 705.70 100,618.0 21.8 2.1 1.9 Abu Dhabi 5,052.53 (0.8) (0.1) 0.2 17.8 243.80 138,242.6 15.3 1.9 3.4 Saudi Arabia 9,744.12 0.0 0.9 1.7 14.2 2,712.74 530,220.6 19.4 2.4 2.9 Kuwait 7,399.76 0.3 (0.4) (0.1) (2.0) 66.72 115,111.8 16.6 1.2 4.1 Oman 6,762.37 0.0 0.3 0.5 (1.1) 19.18 24,440.8 12.1 1.7 3.9 Bahrain 1,466.67 0.8 2.8 2.8 17.4 4.16 54,019.2 11.2 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) 12,850 12,900 12,950 13,000 13,050 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 declined 0.4% to close at 12,933.8. The Industrials and Telecoms indices led the losses. The index fell on the back of selling pressure from non-Qatari shareholders despite buying support from Qatari shareholders.  Qatar Islamic Bank and Qatar National Cement Co. were the top losers, falling 1.9% and 1.7% respectively. Among the top gainers, Mazaya Qatar Real Estate Dev. rose 3.5%, while Zad Holding Co. gained 2.2%.  Volume of shares traded on Tuesday fell by 22.1% to 25.6mn from 32.9mn on Monday. Further, as compared to the 30-day moving average of 30.0mn, volume for the day was 14.5% lower. United Development Co. and Mazaya Qatar Real Estate Dev. were the most active stocks, contributing 18.0% and 14.1% 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 Dubai Development Co. (DDC) Dubai AED 0.1 -28.5% – – -0.1 NA National Takaful Company (Watania) Abu Dhabi AED 57.5 53.3% – – 3.3 NA Inovest Bahrain USD 4.6 -1.6% 1.4 -24.5% 1.5 6447.8% Bahrain Cinema Co. Bahrain BHD 4.7 30.3% 1.7 27.0% 2.6 57.4% Source: Company data, DFM, ADX, MSM Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 05/06 US US Census Bureau Trade Balance March -$40.4B -$40.0B -$41.9B 05/06 US Bloomberg IBD/TIPP Economic Optimism March 45.8 47.9 48.0 05/06 EU Markit Markit Eurozone Services PMI April 53.1 53.1 53.1 05/06 EU Markit Markit Eurozone Composite PMI April 54 54.0 54 05/06 EU Markit Markit EU Composite PMI April 55.1 – 54.2 05/06 EU Markit Markit EU Services PMI April 54.5 – 53.5 05/06 EU Eurostat Retail Sales MoM March 0.30% -0.20% 0.10% 05/06 EU Eurostat Retail Sales YoY March 0.90% 1.00% 1.00% 05/06 France Markit Markit France Composite PMI April 50.6 50.5 50.6 05/06 France Markit Markit France Services PMI April 50.4 50.3 50.4 05/06 Germany Markit Markit/BME Germany Composite PMI April 56.1 56.3 56.1 05/06 Germany Markit Markit Germany Services PMI April 54.7 55.0 54.7 05/06 UK HM Treasury Official Reserves Changes April $139M – -$660M 05/06 UK Markit Markit/CIPS UK Composite PMI April 59.2 – 57.8 05/06 UK Markit Markit/CIPS UK Services PMI April 58.7 57.8 57.6 05/06 Spain Spanish Labour Ministry Unemployment MoM Net ('000s) April -111.6 -51 -16.6 05/06 Spain Markit Markit Spain Services PMI April 56.5 54.2 54.0 05/06 Spain Markit Markit Spain Composite PMI April 56.3 – 54.2 05/06 Italy Markit Markit/ADACI Italy Composite PMI April 52.6 – 51.1 05/06 Italy Markit Markit/ADACI Italy Services PMI April 51.1 50.5 49.5 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  IMF: Qatar inflation seen benign at 3-4%, growth rate to stay at 6-7% – The International Monetary Fund (IMF) has projected Qatar’s inflation to stay benign at 3-4% going forward. IMF’s Mission Chief for Qatar, Martin Sommer said however, sequencing and prioritization of investment projects will be important and if signs of overheating emerge, policymakers should hold back capital expenditures. The Qatar Central Bank (QCB) could also deploy liquidity withdrawal operations and further macro-prudential measures in case of excessive credit growth or risk-taking. Sommer said that these measures can be supplemented with efforts to remove bottlenecks. Depending on the source of inflationary pressures, these steps could include increasing housing supply, boosting port capacity, and so forth. Inflation increased somewhat in late 2012 and early 2013, but Overall Activity Buy %* Sell %* Net (QR) Qatari 73.12% 68.90% 41,640,616.09 Non-Qatari 26.88% 31.09% (41,640,616.09)
  • 3. Page 3 of 6 has since then fallen back below 3% despite very rapid population growth, which Sommer said was positive. Meanwhile, IMF added that Qatar’s gas-to-liquids Barzan plant could help push the country’s growth above 7% by 2015. Public investments are expected to keep growth at 6-7% over the medium term, with the non-hydrocarbon growth remaining around 10%. IMF said Qatar’s GDP growth could stay around 6% in 2014 as the pickup in public investments is offset by a modest decline in hydrocarbon output. The public debt ratio is expected to fall, but the headline budget balance could turn into deficit by 2019, while the current account surplus could drop to 6.5% of GDP. (Gulf-Times.com, Peninsula Qatar)  Qatar awards Doha Metro contract to five-partner consortium – Qatar has awarded the underground design & construction contract worth $4.4 billion to build the Gold Line section of the Doha Metro to a five-partner consortium. Under the agreement, Turkish contractors STFA and Yap Merkezi will hold a 40% stake in the project, while the remaining stake will be held by India’s Larsen & Toubro, Greece’s Aktor Group and Qatar’s Al-Jaber Engineering. The project, which connects the eastern and western sides of the city, forms part of the Qatar Integrated Rail project and the Gold Line is by far the largest single construction package of the Doha Metro. (Bloomberg)  Qatar realty sales top QR647mn between April 27 and May 1 – According to the Real Estate Registration Department at the Ministry of Justice, real estate transactions registered in Qatar between April 27 and May 1, 2014 were worth QR647mn. The list of properties that were traded included open plots of land, two-floor villas, annexes, houses and residential compounds that are located in the municipalities of Umm Salal, Al Khor, Doha, Al Rayyan, Al Shamal, Al Daayen and Al Wakrah. (Gulf- Times.com)  Al Furjan project for remote areas unveiled – The Al Furjan project that is aimed at promoting small shopping centers in remote areas of Qatar to help residents get local access for their daily basic needs, has been inaugurated. These centers will basically have service shops like laundries, barber shops, bakeries, restaurants, pharmacies, meat and tailoring outlets, among others. Shops in these centers will be rented out to licensed Qatari companies at QR6,000 per shop per month. (Peninsula Qatar)  VFQS’ BoD to meet on May 27 – Vodafone Qatar’s (VFQS) board of directors will meet on May 27, 2014 to discuss the financial statements for the fiscal year ending March 31, 2014. (QE) International  Trade gap shrinks as US exports indicate global demand pickup – The biggest gain in US exports in the last nine months has helped narrow the country’s trade deficit in March 2014, pointing to a revival in global demand that will help the world’s largest economy strengthen. The US Commerce Department’s figures showed that trade gap shrank by 3.6% to $40.4bn from the prior month’s $41.9bn. Sales to foreign customers climbed 2.1% to the second-highest level on record as demand grew for aircraft, vehicles and fuels. Sales overseas improved from a five-month low in February, proving that the US economic expansion has begun to perk up as it heads into the second quarter, after stalling at the start of the year. At the same time, American households and businesses are gaining confidence as employment improves, indicating imports will also rise. (Bloomberg)  BoJ: Japanese consumer spending resilient after sales tax hike – Minutes of the Bank of Japan’s (BoJ) recent board meeting showed that consumer spending remains buoyant despite an increase in the sales tax rate in April on the back of a tight labor market and improving wages. A BoJ board member stated that inflation could quicken from April as companies use the tax hike as an opportunity to pass on higher input costs. Another member noted that the front-loading of demand before the sales tax increase in April was larger than what preceded the last sales tax hike in 1997, reflecting the resilience of consumer spending. At the April meeting, the BoJ’s board voted unanimously to maintain its pledge of increasing base money – cash and deposits at the central bank – at an annual pace of 60- 70tn yen by purchasing government debt and risk assets. (Reuters)  PBoC to boost property, LGFV credit supervision – The People’s Bank of China (PBoC) stated that the country will strengthen the monitoring of credit extended to local government financing vehicles, real estate developers and industries facing overcapacity. According to its quarterly monetary policy report, China’s central bank is taking steps to minimize potential contagion spreading to the entire financial system from risks in those areas. The PBoC said China will also strictly control lending to high carbon emission industries and those with overcapacity. China’s economy will probably remain stable, even though potential growth may slow. The central bank further added that the country must pay more attention to potential risks such as a weaker property market and soft external demand. GDP is projected to increase 7.3% this year as the government reins in credit, according to a Bloomberg survey, as compared to an official target of about 7.5%. (Bloomberg) Regional  Reuters: Gulf states to see shrinking fiscal surpluses to 2016 – According to a Reuters survey, Gulf Arab states are likely to see shrinking fiscal surpluses over the next two years as government spending stays high, while oil output and crude prices are expected to ease. Saudi Arabia's budget surplus, which the IMF estimates at 8.3% in 2013, is expected to shrink to 4.9% of GDP in 2014 and 3.7% in 2015. Further, Reuters found that oil prices are set to weaken to $106 per barrel in 2014 and $101 next year from around $108 now as production picks up. That could probably dent vital export receipts for the six oil- reliant GCC states and falling revenues are particularly bad news for small non-OPEC oil exporters such as Oman, and Bahrain, which could slide deeper into the red. The poll showed that Oman's budget surplus could shrink this year, to 1.7% of GDP, with the economy set to break even next year. Bahrain may see a gap of 3.7% compared with the previous prediction for a 4.7% shortfall. (Gulf-Times.com)  PwC: IPOs show improvement in GCC, proceeds up 183% – According to PwC, IPOs in the GCC countries showed improvement in terms of offered value as total proceeds raised stood 183% higher in 1Q2014 as compared to 1Q2013. IPO volumes remained stable at two offerings. PwC's Head of Capital Markets in the Middle East region said although PwC has seen an increase in values in 1Q2014 and are still not seeing significant IPO activity in the regional markets. In Saudi Arabia, there is a strong pipeline but companies are held back by the delay in the CMA review process. (Peninsula Qatar)  NBK: Sovereign GCC yields witness steady decline – According to a report by the National Bank of Kuwait (NBK), the debt markets in the GCC region experienced modest growth in 1Q2014 due to weaker issuance by the private sector and a large maturing sovereign debt. Sovereign GCC yields have declined over the last quarter on the back of lower US rates, and healthier credit and financial conditions, particularly in Dubai.
  • 4. Page 4 of 6 NBK pointed out that growth in the total stock of bonds slowed to 8% YoY during 1Q2014, almost half its two-year average of 15%. Outstanding bonds declined by $3bn to $254bn, partly due to the maturing of $15bn in Qatari sovereign debt. Qatar’s stock of total outstanding debt contracted by $9bn to reach $69bn. (GulfBase.com)  Al Tayyar signs up Sabre as technology partner – Saudi- based travel company Al Tayyar Group has signed a technology partnership agreement with Bahrain-based Sabre Travel Network. As part of the deal, Al Tayyar will be using Sabre’s Global Distribution System with direct access to its vast portfolio of technology products and solutions such as the Sabre Red Workspace, GetThere, as well as mobile tools like TripCase and Sabre Red Mobile Workspace, to meet the challenges and opportunities of the travel industry. (GulfBase.com)  Al Ahli SEDCO exceeds SR350m target – NCB Capital has announced the closure of subscriptions to the Al Ahli SEDCO Residential Development Fund (Al Ahli SEDCO) after exceeding the fund’s target of SR350mn. Al Ahli SEDCO is a public close- end Shari’ah-compliant fund that provides investors with capital growth by purchasing land plots in Jeddah for development and sale of residential apartments targeting the middle income segment. The fund has already acquired a 100% stake in a 25,934 square meters residential property in Jeddah. (GulfBase.com)  ICD, PMB to venture into Shari'ah leasing business – The Islamic Corporation for the Development of the Private Sector (ICD) and Pelaburan Mara Berhad (PMB) have signed shareholder’s agreement to venture into Shari’ah leasing business in Malaysia. This will be under a newly-rebranded company, ‘PMB Tijari Berhad’, which was formerly KFH Ijarah House (Malaysia) Sdn Bhd. (GulfBase.com)  Bank finance to Kafala-supported SMEs rises 28% – The volume of finance provided by Saudi banks to Kafala-supported SMEs grew by 28% to SR571.8mn in 1Q2014 as compared to SR448.3mn in 1Q2013. The Kafala Program issued 652 guarantees for various SME projects in 1Q2014 as compared to 488 guarantees in 1Q2013, reporting an increase of 34%. The value of those guarantees stood at SR311.6mn as compared to SR256.7mn in 1Q2013. The National Commercial Bank was the major supporter to the Kafala Program during 1Q2014 holding 36% of the total guarantees, followed by Riyad Bank (22%), Al Rajhi Bank (17%), Saudi Hollandi Bank and Samba Financial Group (5% each), while the remaining 15% was by other banks. (GulfBase.com)  SABB-HSBC: Saudi non-oil private sector expands sharply in April – According to a survey by Saudi British Bank (SABB), HSBC Bank and Markit Economics, the non-oil private sector growth in Saudi Arabia accelerated in April 2014, after easing to a five-month low in the previous month. The seasonally adjusted Purchasing Managers' Index rose to 58.5 in April 57.0 in March, but the latest score was below the survey's long-term average. In April, new orders increased at the quickest rate since the beginning of the year amid improving economic conditions. Export order growth eased slightly from March. The non-oil private sector companies increased their staff levels due to increased business requirements. Input prices increased further in April, but inflation was the weakest in 43 months. Output price inflation accelerated to the fastest in nearly one-and-a-half years. (GulfBase.com)  Sipchem’s Butaindiol plant resumes work – Saudi International Petrochemical Company (Sipchem) announced that the scheduled maintenance of all the facilities in its Butaindiol plant has been completed as per schedule, along with successful tie-ins of expansion with facilities in existing plant. Operations have been resumed on May 6, 2014. (Tadawul)  UAE announces €7bn project in Athens – The UAE Foreign Minister, Sheikh Abdullah Bin Zayed, said that one of its companies will develop the site of Athens’ old airport in a project costing more than €7bn. Developed by Abu Dhabi-based Al Maabar International Investment, the mixed-use development in the Greek capital will create around 50,000 jobs. Al Maabar will partner with Latsis Group and Fosun to form a venture called ‘Global Investment Group’ to develop the site along with Lamda Development. Further, Abu Dhabi Investment Council has been offered the Astir Palace Resort in Athens, while Abu Dhabi National Energy Company (TAQA) and Terna Energy have signed a framework agreement to explore investment opportunities. (Bloomberg)  UPP raises foreign ownership to 25% – Union Properties (UPP) has decided to increase the percentage of shares which foreign investors are allowed to hold in the company to 25% from 15%. (GulfBase.com)  DEWA awards smart grid contract to CESI – The Dubai Electricity & Water Authority (DEWA) has signed an agreement with CESI Middle East to provide consultancy services related to connecting renewable energy generators to DEWA’s power grid. Under the agreement, CESI will assist DEWA with launching its distributed renewable connection program (smart grid) and further contributing to the energy stability and sustainability of the region. (GulfBase.com)  ICD to sell first dollar bonds amid rebound – According to sources, the Investment Corporation of Dubai (ICD) may sell its first dollar bonds in May 2014 as the city’s real-estate market and economy rebound. ICD will hold meetings with fixed-income investors starting from May 8, 2014 that will be arranged by Citigroup, Dubai Islamic Bank, Emirates NBD Capital, HSBC Holdings and Standard Chartered. A Regulation S dollar bond may follow subject to market conditions. (Bloomberg)  Dubai to repay 2015 debt on time – A top government official, Sheikh Ahmed bin Saeed al-Maktoum, said that Dubai will not have any issues in repaying all its debt maturing in 2015 and more state-linked firms are likely to repay obligations ahead of schedule. State-owned firms such as Nakheel and Dubai Holding Commercial Operations Group have already repaid portions of their debt in 2014, ahead of maturity. (Reuters)  FGB launches mobile banking services with Monitise – First Gulf Bank (FGB) has entered into a partnership with Monitise to launch new mobile banking services to consumers in the Middle East. This transaction enables FGB to expand its mobile money services, as well as strengthen its position in digital banking market. (GulfBase.com)  Kuwait renews crude oil contracts with BPCL – Kuwait has renewed crude supply contracts with Bharat Petroleum Corporation (BPCL) worth up to $3.7bn a year. State-owned Kuwait Petroleum Company (KPC) signed one contract with BPCL and another with its subsidiary Bharat Oman Refineries Ltd (BORL). OPEC member Kuwait produces about 3mn bpd of oil, about two thirds of which is exported. BPCL operates a 240,000 bpd Mumbai refinery in western India and a 190,000 bpd Kochi refinery in the south of the country. It also has majority stakes in the 60,000 bpd Numaligarh refinery in northeast India and the 120,000 bpd Bina refinery in central India. The Bina refinery is operated by Bharat Oman Refineries Ltd, in which state-owned Oman Oil Company has a minority stake. (Reuters)
  • 5. Page 5 of 6  CBK’s profit surges to KD5.4mn – The Commercial Bank of Kuwait’s (CBK) net profit in 1Q2014 has jumped seven-fold to reach KD5.4mn as compared to KD0.8mn in 1Q2013. The bank’s operating profit before provisions stood at KD24.6mn for 1Q2014 as compared to KD24.7mn for 1Q2013. (GulfBase.com)  OOC, TIC to develop ammonia plant in Salalah Free Zone – The Oman Oil Company (OOC) along with its downstream investment arm Takamul Investment Company (TIC) is planning to develop a major ammonia plant in Salalah Free Zone with a capacity of 1,000 metric tons per day. The plant will be constructed adjacent to the methanol facility of Salalah Methanol Company, in which Takamul has a 10% stake. Feedstock for the ammonia plant will be sourced entirely from the methanol facility. International engineering contractors are lining up to prequalify for a competitive tender for the engineering, procurement, construction & commissioning (EPCC) contract, that is estimated to cost millions of dollars. The company has set June 7, 2014 as the deadline for the submission of prequalification offers. (GulfBase.com)  OSC to utilize ODC’s Duqm yard facilities – The Oman Shipping Company (OSC) has pledged to utilize the services of Oman Drydock Company’s (ODC) ship repair yard at Duqm for the dry-docking and maintenance of its national shipping fleet. (GulfBase.com)  WTTC: Oman to lead Mideast tourism growth in 2014 – According to a report by the World Travel & Tourism Council (WTTC), Oman will lead the Middle East region in the travel & tourism sector in 2014 with a 10.2% growth amounting to OMR1.08bn. The surge in travel & tourism activities is expected to grow by 5.4% per annum to Oman’s GDP to reach OMR1.834bn, by 2024, which is 3.9% of GDP. The total contribution of the sector, including investments, supply chain and induced income impacts, amounts to twice its direct contribution to Oman’s GDP. The sector’s total contribution to the country’s GDP was OMR2.078bn, a 6.4% of the total GDP in 2013, which is expected to go up by 9.4% to reach OMR2.274bn in 2014. (GulfBase.com)  NCSI: Muscat ports show 13% growth in cargo volumes in 1Q2014 – According to a report by National Centre for Statistics & Information (NCSI), vessel movement at Sultan Qaboos Port and Salalah Port witnessed a significant growth in terms of cargo volumes during 1Q2014, when compared with 1Q2013. The total volume of unloaded cargo and loaded export cargo at Sultan Qaboos port grew by 12.7% from 1.257mn tons in March 2013 to 1.417mn tons in March 2014. Meanwhile, Salalah port recorded a growth of 58% in March 2014 reaching 2.675mn tons, from 1.693mn tons during March 2013. However, the number of mooring vessels at both ports declined by the end of March 2014 when compared with March 2013. (Bloomberg)  KHCB signs MoU with DDPM – Khaleeji Commercial Bank (KHCB) has signed a MoU with Dadabhai Development & Properties Company (DDPM) to provide finance for the purchase of properties at Juffair Heights Residential Project. Under the agreement, Bahraini and expatriate customers, who wish to avail property finance from KHCB, will receive up to 80% financing options for a period of up to 20 years, for purchasing property in the Juffair Heights Free hold development. The project consists of twin towers that will have a total of 376 one and two-bedroom apartments and is expected to be ready by 3Q2016. (Bahrain Bourse)  ASBB reports BHD4.09mn net profit in 1Q2014 – Al Salam Bank-Bahrain (ASBB) reported a net profit of BHD4.09mn in 1Q2014 as compared to BHD3.05mn in 1Q2013. The operating income stood at BHD12.6mn as compared to BHD10.6mn in 1Q2013. EPS amounted to 2.7fils in 1Q2014 as against 2.0fils in 1Q2013. The bank’s total assets grew to BHD1.89bn at the end of 1Q2014 as compared to BHD1.09bn at the end of December 2013. (Bahrain Bourse)  BMB records $1.5mn profit in 1Q2014 – Bahrain Middle East Bank (BMB) has reported a net profit of $1.5mn in 1Q2014 as compared to a loss of $6.0mn in 1Q2013. Net interest income stood at $2.05mn as compared to $0.596mn in 1Q2013. Total assets stood at $167.8mn at the end of 1Q2014 as against $169.5mn at the end of December 2013. EPS amounted to $0.63 as on March 31, 2014. (Bahrain Bourse)
  • 6. Contacts Saugata Sarkar Keith Whitney Sahbi Kasraoui Head of Research Head of Sales Manager - HNWI Tel: (+974) 4476 6534 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 saugata.sarkar@qnbfs.com.qa keith.whitney@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa QNB Financial Services SPC Contact Center: (+974) 4476 6666 PO Box 24025 Doha, Qatar DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 6 of 6 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg (* Market closed on May 06, 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 0.0% (0.4%) 0.3% 0.8% 0.0% (0.8%) 0.8% (1.2%) (0.8%) (0.4%) 0.0% 0.4% 0.8% 1.2% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,308.04 (0.2) 0.6 8.5 DJ Industrial 16,401.02 (0.8) (0.7) (1.1) Silver/Ounce 19.59 (0.1) 0.5 0.6 S&P 500 1,867.72 (0.9) (0.7) 1.0 Crude Oil (Brent)/Barrel (FM Future) 107.06 (0.6) (1.4) (3.4) NASDAQ 100 4,080.76 (1.4) (1.0) (2.3) Natural Gas (Henry Hub)/MMBtu 4.78 1.4 1.5 10.1 STOXX 600 336.04 (0.3) (0.5) 2.4 LPG Propane (Arab Gulf)/Ton 105.63 (0.1) (1.4) (16.5) DAX 9,467.53 (0.7) (0.9) (0.9) LPG Butane (Arab Gulf)/Ton 120.25 (0.9) (2.6) (11.4) FTSE 100 6,798.56 (0.3) (0.3) 0.7 Euro 1.39 0.4 0.4 1.3 CAC 40 4,428.07 (0.8) (0.7) 3.1 Yen 101.68 (0.5) (0.5) (3.4) Nikkei* 14,457.51 0.0 0.0 (11.3) GBP 1.70 0.6 0.6 2.5 MSCI EM 1,003.93 0.3 0.1 0.1 CHF 1.14 0.4 0.4 2.1 SHANGHAI SE Composite 2,028.04 0.0 0.1 (4.2) AUD 0.94 0.8 0.8 4.9 HANG SENG* 21,976.33 0.0 (1.3) (5.7) USD Index 79.09 (0.5) (0.5) (1.2) BSE SENSEX 22,508.42 0.3 0.5 6.3 RUB 35.39 (1.0) (1.3) 7.7 Bovespa 53,779.74 0.6 1.5 4.4 BRL 0.45 0.7 (0.3) 6.1 RTS 1,172.91 2.6 2.1 (18.7) 185.9 154.6 140.8