870 240 qnbfs_daily_marketreportjan022013
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870 240 qnbfs_daily_marketreportjan022013 Document Transcript

  • 1. QE Intra-Day Movement Market Indicators 31 Dec 12 30 Dec 12 %Chg. 8,380 Value Traded (QR mn) 230.4 132.9 73.4 Exch. Market Cap. (QR mn) 459,883.6 456,786.0 0.7 8,360 Volume (mn) 4.9 2.4 98.8 8,340 Number of Transactions 2,165 1,864 16.1 8,320 Companies Traded 41 40 2.5 Market Breadth 24:10 14:23 – 8,300 Market Indices Close 1D% WTD% YTD% TTM P/E 8,280 Total Return 11,312.66 0.7 0.6 1.4 N/A 8,260 All Share Index 2,014.60 0.8 0.6 4.6 10.1 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Banks 1,949.30 0.7 0.3 (1.3) 10.9 Qatar Commentary Industrials 2,627.09 0.6 0.6 15.2 10.6 The QE index rose 0.7% to close at 8,358.9. Gains were led by the Insurance Transportation 1,340.32 0.1 (0.2) (9.1) 10.7 and Real Estate indices, gaining 2.1% and 1.4% respectively. Top gainers were Real Estate 1,611.70 1.4 1.3 (3.9) 4.0 Qatar General Insurance & Reins. and Qatar Cinema & Film Dist. Co., rising Insurance 1,963.58 2.1 3.4 12.0 11.7 9.1% and 7.8% respectively. Among the top losers, Al Ahli Bank fell 2.6%, while Telecoms 1,064.99 1.0 1.0 11.9 11.9 Al Meera Consumer Goods Co. declined 1.7%. Consumer 4,670.55 0.8 0.5 37.9 12.8 GCC Commentary GCC Top Gainers## Exchange Close# 1D% Vol.  ‘000 YTD% Saudi Arabia: The TASI index rose 0.9% to close at 6,860.0. Gains were led National Ind. Co. Saudi Arabia 29.90 7.9 6,243.7 7.9 by the Petrochemical Industries and Industrial Investment indices, rising 1.8% and 1.4% respectively. National Industrialization Co. gained 7.9%, while Saudi Al-Khodari Saudi Arabia 26.90 4.3 696.0 4.3 Advanced Industries Co. was up 4.6%. Aseer Saudi Arabia 17.10 3.3 1,940.5 3.3 Dubai: The DFM index fell 0.4% to close at 1,622.5. Losses were led by the Real Estate & Construction and Investment & Financial Services indices, Saudi Public Tran. Co. Saudi Arabia 17.00 3.0 3,613.3 3.0 falling 1.1% and 0.8% respectively. Shuaa Capital fell 7.0%, while Al Salam Bank Albilad Saudi Arabia 29.10 2.8 451.5 2.8 Bank - Bahrain was down 6.1%. Abu Dhabi: The ADX benchmark index rose 0.1% to close at 2,630.9. The GCC Top Losers## Exchange Close# 1D% Vol.  ‘000 YTD% Industrial index gained 1.6%, while the Energy index was up 0.6%. Sudan Amana Coop. Ins. Co Saudi Arabia 123.50 (9.9) 2,318.1 (9.9) Telecommunication Co. gained 8.8%, while Gulf Cement Co. rose 6.3%. Arriyadh Dev. Co. Saudi Arabia 22.35 (2.2) 3,946.9 (2.2) Kuwait: The KSE index declined 0.2% to close at 5,934.3. Losses were led by the Basic Material and Technology indices, falling 1.2% and 0.7% respectively. MEDGULF Saudi Arabia 27.60 (2.1) 357.6 (2.1) Pearl of Kuwait Real Est. Co. fell 7.8%, while Housing Fin. Co. declined 7.3%. SADAFCO Saudi Arabia 63.75 (1.5) 36.1 (1.5) Oman: The MSM index gained 0.1% to close at 5,763.8. The Banking & Investment index rose 0.5%, while the Services & Insurance index gained Arab National Bank Saudi Arabia 26.00 (1.5) 413.2 (1.5) 0.2%. Transgulf Ind. Inv. Holding rose 6.0%, while Global Financial Investment was up 4.4%. 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 Gainers Close* 1D% Vol.  ‘000 YTD% Qatar Exchange Top Losers Close* 1D% Vol.  ‘000 YTD% Qatar General Insurance & Reins. 52.90 9.1 7.8 7.3 Al Ahli Bank 49.00 (2.6) 1.4 (6.7) Qatar Cinema & Film Dist. Co. 56.90 7.8 4.4 (23.5) Al Meera Consumer Goods Co. 157.70 (1.7) 6.7 4.4 Qatar Islamic Insurance 62.00 7.3 10.0 7.8 Qatar & Oman Investment Co. 12.39 (1.7) 92.6 23.9 Qatar National Cement Co. 107.00 5.9 57.4 (4.5) Qatar Insurance Co. 67.10 (1.2) 59.8 3.8 United Development Co. 17.80 3.5 72.8 1.8 Dlala Brok. & Inv. Holding Co. 34.50 (1.1) 16.0 137.1 Qatar Exchange Top Vol. Trades Close* 1D% Vol.  ‘000 YTD% Qatar Exchange Top Val. Trades Close* 1D% Val.  ‘000 YTD% Masraf Al Rayan 24.79 0.9 1,385.0 (11.0) Qatar National Bank 130.90 1.3 65,417.2 (5.3) Qatar National Bank 130.90 1.3 518.9 (5.3) Commercial Bank of Qatar 70.90 0.9 36,151.1 (15.6) Commercial Bank of Qatar 70.90 0.9 517.0 (15.6) Masraf Al Rayan 24.79 0.9 33,229.7 (11.0) Al Khaliji 16.99 1.9 514.0 (1.0) Industries Qatar 155.10 0.0 17,041.7 16.6 Vodafone Qatar 8.35 1.2 173.3 10.6 Qatar Navigation 63.10 0.2 9,059.3 (17.5) Source: Bloomberg (* in QR) Regional Exch. Val. Exchange Mkt. Dividend Close 1D% WTD% MTD% YTD% 2012 % P/E** P/B** Indices Traded ($ mn) Cap. ($ mn) Yield Qatar* 8,358.94 0.7 0.6 (0.5) (4.8) (4.8) 37.45 126,330.0 9.5 1.6 4.3 Dubai 1,622.53 (0.4) 0.7 0.9 19.9 19.9 57.26 49,531.2 11.7 0.7 3.9 Abu Dhabi 2,630.86 0.1 0.2 (1.6) 9.5 9.5 20.66 79,190.7 8.9 1.0 5.0 Saudi Arabia# 6,860.01 0.9 (0.1) 0.9 0.9 6.0 1,174.63 375,751.8 14.2 1.8 3.6 Kuwait 5,934.28 (0.2) (0.1) (0.2) 2.1 2.1 93.22 104,069.6 26.8 1.1 3.3 Oman# 5,763.77 0.1 1.4 0.1 0.1 1.2 16.00 20,244.4 10.9 1.5 4.4 Bahrain 1,065.61 (0.8) 0.2 1.6 (6.8) (6.8) 0.56 19,198.4 11.9 0.8 4.6 # ##Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) ( Data as of Jan. 1, 2013 Page 1 of 7
  • 2. Qatar Market Commentary The QE index rose 0.7% to close at 8,358.9. The Insurance and Overall Activity Buy %* Sell %* Net (QR) Real Estate indices were the major contributors to the gains. The index increased on the back of buying support from Qatari Qatari 86.79% 81.60% 11,945,477.79 shareholders despite selling pressure from non-Qatari Non-Qatari 13.21% 18.40% (11,945,477.79) shareholders. Source: Qatar Exchange (* as a % of traded value) Qatar General Insurance & Reins. and Qatar Cinema & Film Dist. Co. were the top gainers, rising 9.1% and 7.8% respectively. Among the top losers, Al Ahli Bank fell 2.6%, while Al Meera Consumer Goods Co. declined 1.7%. Volume of shares traded on Monday surged by 98.8% to 4.9mn from 2.4mn on Sunday. Further, as compared to the 30-day moving average of 2.8mn, volume for the day was 72.5% higher. Masraf Al Rayan and Qatar National Bank were the most active stocks, contributing 28.5% and 10.7% to the total volume respectively. Ratings, Earnings and Global Economic DataRatings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Al Ahli Bank of LT IDR/ ST IDR/ VR/ SR/ A-/ F2/ bb+/ A-/ F2/ bb+/ Fitch Kuwait – Stable – Kuwait (ABK) SR Floor 1/ A- 1/ A-Source: News reports (* LT – Long Term, ST – Short Term, IDR- Issuer Default Rating, VR – Viability Rating, SR- Support Rating)Earnings Releases Revenue % Change Operating Profit % Change Net Profit (mn) % Change Company Market Currency (mn) 4Q2012 YoY (mn) 4Q2012 YoY 4Q2012 YoY Southern Province Cement Saudi Arabia SR – – 264.0 3.9% 253.0 0.8% Co. (SPCC) Source: Company data, TadawulGlobal Economic Data Date Market Source Indicator Period Actual Consensus Previous 12/31 UK Lloyds Bank Lloyds Business Barometer December 20 -- 17 12/31 China HSBC HSBC Manufacturing PMI December 51.5 50.9 50.5 01/01 China Markit Manufacturing PMI December 50.6 51 50.6Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) NewsQatar 30.9% and QoQ increase of 10.7%. However, the balance of merchandise trade dropped to QR91.88bn from QR94.87bn in Qatar 92-day, 274-day T-bill yields narrow, 183-day yields 2Q2012. (GulfBase.com) widen – According to Qatar Central Bank (QCB) data, Qatar  Qatar’s population rises by 18% in 4 years – According to Treasury bill yields on 3M and 9M issuances narrowed, while Qatar Statistics Authority (QSA), Qatar’s population grew more yields for the 6M bills widened. Qatari T-bills maturing April 2 than 18% at the end of December 2012 compared to the same yielded 0.87%, down from 0.9% for 92-day bills in the last period in 2008. The current population rests at 1,836,676. (Gulf- issuance on December 4. T-bills maturing October 1 yielded Times.com) 1.14%, down from 1.15%, while T-bills maturing July 2 yielded 1.06%, up from 1.03%. Qatar issued QR4bn worth of treasury  Qatar’s   foreign   investment   reaches   QR163.8bn   in   2012   – bills on Monday. (Bloomberg) Qatar’s  sovereign  wealth  fund’s (SWF) investments abroad has reached QR163.8bn in 2012, $32bn higher than the previous Qatar to introduce law to regulate public-private year. Apart from the Arab region, Qatar made major investments partnerships soon – Qatar may soon put a law in place to in Singapore, France, UK, Italy, Switzerland, the US, Vietnam, regulate public-private partnerships (PPP), which allow private Iraq, Netherlands, Turkey, Bulgaria, Germany, China and sector enterprises to readily participate in key infrastructure Malaysia in 2012. The country invested in a wide range of projects.   Qatar’s   Minister   of   Business   &   Trade,   HE   Sheikh   sectors in 2012, including in hotels, resorts, petrochemicals, Jassim bin Abdulaziz Al Thani hinted the move is part of the power plants, oil companies, banks and financial institutions, government’s   long-term plans aimed at accelerating the fashion, mining, media and communications, roads, transition from a public sector-driven economy to a market- transportation and sports in these countries. (GulfBase.com) driven economy. (Peninsula Qatar)  QE brokerages lose market share to bank arms – According Qatar’s  imports  rise,  balance  of  merchandise  trade  drops  – to Qatar Exchange data, conventional brokers by and large According to data issued by Qatar Statistics Authority (QSA), witnessed erosion in their share in stock broking, while the Qatar’s   total   exports   in   3Q2012   increased   by   7.3%   YoY;;   brokerage arms of commercial banks improved their kitty year- however, declined 0.3% QoQ to QR118.5bn. Total imports of to-date in December. The Group Securities accounted for 29.1% 3Q2012 stood at QR26.63bn, reflecting a YoY increase of of the stocks trading value (QR41.58bn) YTD in December Page 2 of 7
  • 3. compared to 34.6% in the year-ago period. The Gulf  Qatar Airways responds to Lindner claims – Qatar Airways Investments Group, which stood second, however improved its replied to statements by the German Emirati joint venture market share to 27.17% of stocks trading value in December company Lindner Depa Interiors (LDI) on the delay of the against 14.05% in the year-ago period. Dlala Brokerage opening of the New Doha International Airport (NDIA). LDI cornered 11.0% of the stocks trading value against 17.55% in claimed it had no relationship nor a contract with Qatar Airways the comparable period of 2011. Qatar Securities saw its market and   that   the   airline’s   claims   were   misleading.   Qatar   Airways share plunge to 7.40% of the stocks trading value compared to CEO Akbar Al Baker said LDI is adding insult to injury by 14.6% in the previous-year period. International Securities denying that its delay caused huge damages, and that LDI accounted for 5.62% of the stocks trading value against 7.9% in should pay compensation for such damages. (Peninsula Qatar) the year-ago period. In the case of Islamic Securities, the market  Qatar Industrial Manufacturing Co BoD holds meeting on share improved to 6.12% of the stocks trading value compared December 31 – Qatar Industrial   Manufacturing   Company’s   to 4.9% in the previous-year period. Dlala-Islamic Brokerage Board of Directors held its sixth periodic meeting for 2012 on accounted for 2.7% of the stocks trading value compared to December 31, 2012. (QE) 3.17% in the year-ago period. QNB Financial Services cornered 6.9% of stocks trading value in December against 2.62% in the  Qatar Oman Investment to hold Ordinary General Assembly comparable period of 2011. Commercialbank Investment meeting on March 25, 2013 – Qatar Oman Investment Service accounted for 2.9% of trading value compared to mere Company will hold its Ordinary General Assembly meeting on 0.54% in the previous-year period. Al-Ahli Brokerage saw its March 25, 2013. In case the required quorum is not maintained, market share rise to 0.89% of stocks trading value against a an alternate meeting is to be scheduled on April 1, 2013. (QE) meager 0.11% in the year-ago period. Al Rayan Financial  Al khaliji BoD to hold meetings on January 16 to discuss Brokerage accounted for 0.16% of stocks trading value. (Gulf- and approve new strategy – The Board of Directors of Al Khalij Times.com) Commercial Bank (al khaliji) will meet on January 16, 2013 to Qatar’s   construction industry to top in Gulf region amid discuss   and   approve   the   bank’s   new   strategy   and   governance   $150bn spending plans – According to a report from BMI, items. (QE) Qatar’s  construction  industry  will  continue  to  be  the  region’s  top    Real estate transactions worth QR748.1mn during performer in the long-term on the back of big projects being December16 to 20 – The volume of real estate trading in sales taken up in the country. The report mentioned that construction contracts registered with the Real Estate Registration and energy projects worth $150bn in the pipeline will have a Department  at  Qatar’s  Ministry  of  Justice  from  December  16  to   positive impact on the sector. However, BMI warned there is a 20 amounted to QR748.1mn. These real estate sales included potential risk of decreasing margins due to continuously rising land plots, two-storey villas, houses, residential multi-storey construction costs as a result of a surge in infrastructure buildings and commercial stores. (Gulf-Times.com) investment. (GulfBase.com)  14 five-star hotels opened in Qatar in 2012 – The hospitality MEED: Qatar needs extra power capacity of 8,216MW by industry in Qatar witnessed an impressive growth in 2012, 2019 – According to a report by MEED Insight, Qatar will require supported by the opening of 18 new hotels with a total 2,863 an additional power capacity of 8,216MW worth about $10bn by rooms. The total number of hotel rooms in the country increased 2019  to  meet  the  country’s  growing demand for electricity. In its to 14,363 in 2012 from 11,500 in 2011. Fourteen 5-star, three 4- “Qatar   Power   Fact   File”   MEED   Insight   said   the   country’s   star and one 3-star hotels opened in 2012. Hotel St Regis with installed power generating capacity stood at 5,314MW based on 336 rooms was the biggest hotel opened in 2012. (Peninsula 2009   data.   MEED   also   indicated   that   Qatar’s   nominal   GDP   Qatar) would exceed $190bn in 2013 with a GDP per capita of $103,748.   Qatar’s   real   GDP   growth   is   expected   to   be   4.6%   in    Qatar   National   Bank’s   shares   traded   on   Special   Market   – 2013 compared with 6.6% this year. Inflation will rise marginally Qatar   National   Bank’s   0.47mn   shares   were   traded   on   the   to 3% this year compared to 2% in 2011 and 2012 (estimated). Special Market on December31, 2012. (QE) (Gulf-Times.com)  Commercial   Bank   of   Qatar’s   shares   traded   on   Special   Real estate bounces back after long lull – The real estate Market – Commercial   Bank   of   Qatar’s   0.145mn   shares   were   sector is witnessing a boom after a prolonged lull, with traded on the Special Market on December 31, 2012. (QE) transactions almost doubling in 2012, and the prices of land  Masraf  Al  Rayan’s  shares  traded  on  Special  Market  – Masraf near existing and planned development projects across the Al  Rayan’s  1.05mn shares were traded on the Special Market on country galloping to incredible highs. The value of real estate December 31, 2012. (QE) deals struck last year totaled QR42bn, up 59.1% YoY. The Qatar Statistics Office (QSA) recently said while releasing International consumer price indices the chances of a repeat of the peaks home rentals witnessed during 2006-08 are remote. Market  US Senate approves "fiscal cliff" deal – The US Senate has reports suggest there has been a steady increase in the prices passed a bipartisan budget deal to prevent the potential of land, particularly in Doha and its sprawling suburbs. economic harm from tax increases and spending cuts. However, (Peninsula Qatar) the bipartisan deal could still face stiff challenges in the House of Representatives. The senators voted 89-8 to raise some QTEL raises Tunisiana stake – Qatar Telecom (QTEL) has taxes on the wealthy while making permanent low tax rates on increased its stake in the Tunisia venture Tunisiana as the the middle class that have been in place for a decade. However, company seeks to expand in the MENA region. QTEL reached the measure did little to rein in huge annual budget deficits that an  agreement  with  Tunisia’s  government  to acquire a 15% stake have helped push the US debt to $16.4tn. (FT) in Tunisiana for $360mn, boosting its stake to 90%. Tunisia will hold 10% and may sell the stake in a public offering.  CBO: US Senates "fiscal cliff" bill adds $4tn to deficit – The (GulfBase.com) US Congressional Budget Office said the Senate-passed legislation to avert the "fiscal cliff" would add nearly $4tn to federal deficits over a decade, largely because it would extend Page 3 of 7
  • 4. low tax rates for almost all Americans. The Senate-passed plan  Saudi to develop Midyan natural gas field in 2013 – extends the decade-old Bush-era tax rates for individuals According to Saudi Oil Minister Ali Naimi, Saudi Arabia will earning up to $400,000 and couples earning up to $450,000, develop its Midyan natural gas field in the Red Sea in 2013. It which comprises nearly 99% of the US taxpayers. (Reuters) would boost electric power plants run by gas instead of diesel, and both electricity and gas would reach industrial zones. ECB sees more stable Eurozone, inflation under control – (GulfBase.com) European Central Bank (ECB) Executive Board Member Joerg Asmussen said the Eurozone is more stable than it was this time  PetroRabigh halts refinery for 20 days maintenance – Saudi- last year and price pressures are well contained. Asmussen based PetroRabigh refining & petrochemicals complex will carry appeared optimistic about the state of the Eurozone which out maintenance work for 20 days after a power cut on Saturday seemed close to collapse at certain points of 2012. He said forced it to halt its operations. The company said in order to Ireland and Portugal have progressed the most and both the ensure   the   facility’s   reliability   it   is   currently   performing   the   nations have managed to return gradually to the capital markets. necessary maintenance on all the facilities, which is expected to He also said Greece is back on course, while Spain has to clean take around 20 days. PetroRabigh said the maintenance will not up its banking sector. Nevertheless, he cautioned that the have   a   significant   impact   on   the   company’s   earnings.   process of recovering competitiveness in the embattled euro PetroRabigh has annual output capacity of 18mn tons of refined area would still take years. (Economic Times) products and 2.4mn tons of petrochemicals. (Peninsula Qatar) Spains   bad   bank   receives   €37bn   of   toxic   assets   – Spains  SPCC signs contract for expansion of power generation so-called   “bad   bank”   has   received   €37bn   of   toxic   assets   from   plant in Tahama factory – Southern Province Cement four nationalized banks, starting a key part of the countrys drive Company (SPCC) has signed a contract with Wartsilla Power to clean up its financial sector. The largest share of the toxic Contracting Company for the expansion of the power generation assets transferred to the asset management company, known plant in Tahama factory. Under the contract, the company has by its Spanish acronym Sareb, comes from Bankia, which was added four diesel units with a total capacity of 32MW. The rescued by the state in May in Spains biggest ever bank bailout. contract value is SR96mn and it will be self- financed. (Tadawul) Bankia   has   transferred   €22.32bn   in   assets,   while   Catalunya    SPCC’s   BoD   recommends   to   pay   dividend   of   SR560mn   for   Banc has transferred  €6.71bn,   NCG   Banco-Banco Gallego has 2H2012 – SPCC’s   BoD   has   recommended   the   dividend   transferred   €5.71bn   and   Banco   de   Valencia   has   transferred   distribution of SR560mn for 2H2012 at SR4 per share, €1.96bn.  (Economic  Times) representing  40%  of  the  company’s  capital.  (Tadawul) China’s  Central  Bank:  China  to  stick  to  a    prudent  monetary    Al-Ahsa   Development   Co’s   textile   factory’s   business   plan   policy in 2013 – China’s   Central   Bank   Governor,   Zhou   completes – Al-Ahsa Development Co announced that the Xiaochuan said, China will stick to a prudent monetary policy Indonesian company has completed the draft of business plan next year and keep consumer prices stable. Reiterating Chinas and operating contracts for Al-Ahsa   Development   Company’s   long-stated vow to reduce the level of central planning in its Textile factory at Al-Ahsa. (Tadawul) economy and make room for more market forces, Zhou also said China will deepen reforms in its financial sector in 2013.  Saudi Aramco to drill 7 gas exploration wells in Tabuk (Reuters) province - According to Saudi Arabian Oil Co (Saudi Aramco) CEO Khalid al-Falih, Saudi Aramco is planning to drill seven gas OPEC’s   December   output   falls   to   nine-month low – exploration wells in deep and shallow water in the Red Sea, off According to a Bloomberg survey, crude oil production in the coast of the north-western city of Tabuk. (Gulf-Times.com) Organization of Petroleum Exporting Countries (OPEC) declined to a nine-month low in December as Saudi Arabian output  BAHRI postpones delivery of general cargo vessel – dropped  to  the  least  in  more  than  a  year.  OPEC’s  output  slipped   National Shipping Company of Saudi Arabia (BAHRI) has by 0.3% to 110,000 barrels (an average 31.4mn bpd) last month agreed with Hyundai MIPO in South Korea to postpone the from a revised 31.5mn in November. Saudi Arabia pumped delivery of the first vessel to January 23, which was originally 9.57mn bpd last month, down 130,000 bpd from November. The scheduled to be delivered in December 2012. The UAE raised its output by 50,000 bpd to 2.65mn bpd in postponement is due to the delivery coinciding with the December, giving the country the second-biggest production completion of the last voyage of the replaced ship l (Saudi increase in OPEC. (Gulf-Times.com) Abha). (Tadawul)  NWC begins work on SR500mn water storage plant inRegional Jeddah –The National Water Company (NWC) has begun GCC exports to Japan up 13.7% in 10 months of 2012 – implementing the first phase of a strategic water storage facility According to data released by Gulf Cooperation Council (GCC), in Jeddah with a project cost of SR500mn. (GulfBase.com) exports by Gulf hydrocarbon producers to Japan rose by 13.7%  NWC inks five contracts with SEC to provide electric plants YoY to $131.3bn in the first 10 months of 2012 as crude prices with treated water – The National Water Company (NWC) and remained at historically high levels and Japan kept its heavy Saudi Electricity Company (SEC) have signed five contracts reliance   on   crude   from   the   region.   The   GCC’s   imports   from   worth SR416mn to provide electric plants with treated water. As Japan shot up by around 31% YoY to nearly $20.7bn. per the contracts, the NWC will provide 55mn cubic meters of (GulfBase.com) treated   water   to   SEC’s   five   electricity-generating stations in Kingdom to create sovereign fund for future generations – Qassim, Hail, Rafha, Qurrayyat and Wadi Al-Duwasir for 25 According   to   Saudi   Arabia’s   Finance   Minister   Ibrahim   Al-Assaf, years beginning from 2016. (GulfBase.com) Saudi government is planning to set up a sovereign fund to  SEC inks SR1.6bn power transmission line contracts – support future generations. The new fund aims at channeling Saudi Electricity Company has signed five different contracts part  of  the  Kingdom’s  budget  surpluses  to  long-term investment worth SR1.6bn for the procurement and construction of 755 projects. (GulfBase.com) kilometers long 380 kV power transmission lines across the Kingdom. (GulfBase.com) Page 4 of 7
  • 5.  Al Madinah Hotels to reduce its share capital – Shareholders Constructions Company is related to the construction of road in of   the   Saudi   Hotel   Company’s   subsidiary   Al   Madinah   Hotels   the Wilayat of Madha in Musandam. (GulfBase.com) have   decided   to   reduce   the   company’s   share   capital   from    Oman boosts spending plans in 2013 budget – Oman’s  2013   SR25mn to SR1mn, as the share capital exceeded the budget has raised the government spending by nearly 30% over company’s  current  needs.  (Tadawul) its 2012 plan to OMR12.9bn as the country boosts outlay on Accor, Al Hokair Group in deal to build 8 hotels by 2015 – social   benefits.   Oman’s   Finance   Minister Darwish al-Balushi Accor Middle East has signed a franchise agreement with Al said the spending on education, health, housing and social Hokair Group to open eight new hotels in the Kingdom by 2015. welfare   projects   has   been  boosted   by   22%   for   this   year’s  plan.   The two companies are seeking to expand their partnership, He  said  last  year’s  actual  spending  was  around  OMR13bn,  30%   which includes cooperating for additional Suite Novotel projects higher than planned, due to new projects. Although the 2013 in the Kingdom. (GulfBase.com) plan envisages revenues of OMR11.2bn, actual revenue is likely to be higher because the budget is based on a conservative oil ATC renews its contracts with NCB for group life coverage price of $85 a barrel, with average output of 930,000 bpd. (Gulf- and credit card protection – Al Ahli Takaful Company (ATC) Times.com) has renewed its contract with the National Commercial Bank (NCB)   for   providing   group   life   insurance   coverage   to   NCB’s    Oman awards $108.5mn airport contract to US firm Hill employees   and   has   also   renewed   its   contract   for   NCB’s   Credit   International – Oman has awarded a two-year contract worth Card Protection program. This contract is expected to have a OMR41.8mn to the US-based firm Hill International for positive  impact  on  ATC’s  performance  during 2013. (Tadawul) supervising   the   expansion   of   Muscat’s   international   airport.   Hill   International will replace the Danish consulting group COWI Gulf Union inks agreement with GEMS to administer after the Ministry of Transport did not to renew a contract signed medical insurance claims – Gulf Union Cooperative Insurance in   2008   to   supervise   the   project.   Oman’s   plans   worth   $7bn   to   Company has signed an agreement with Gulf Electronic expand  the  airport’s  terminal  building  and  the  airfield  have  been   Management System (GEMS) to administer medical insurance dogged by delays. Initially, Oman had planned to complete the claims. (Tadawul) expansion by the end of 2012, but was forced to revise its Dubai unveils 2013 budget with marginal rise in spending – completion date to late 2014. (Gulf-Times.com) The Dubai government unveiled its budget for 2013, setting  Omani CMA completes drafting regulatory bylaws for expenditure at AED34.1bn and a deficit at 0.5% of GDP. Islamic banking – Oman’s  Capital  Market  Authority  (CMA)  has   Expenditure was forecast to be slightly up from AED33.7bn completed the initial draft of the regulatory bylaws of the Islamic spent in this years budget, while revenues were expected to sukuk. The CMA also prepared the initial draft of the regulations reach AED32.6bn, up from AED29.9bn in 2012. Meanwhile, the and   legislations   needed   to   regularize   the   country’s   capital   budget deficit was forecast to drop to AED1.5bn, compared with market and insurance sector. This move is in line with the AED3.8bn this year. Net oil income will amount to 12% of the CMA’s   policy   to   benefit   from   the   visions   of   the respective total revenues, with government fees representing 62%, while agencies and ensure flexible legislations that promote efficiency customs and taxes on foreign banks will account for 23% of in the Omani capital market. (Bloomberg) revenues. (GulfBase.com)  PEIE to invest OMR117mn in three industrial estates – Emirates boosts flights to New York, Paris – Emirates has According   to   the   Public   Establishment   for   Industrial   Estates’   doubled   its   A380   capacity   to   New   York’s   John   F   Kennedy   and   (PEIE) CEO Hilal bin Hamed al Hasani, PEIE is investing Paris’  Charles  De  Gaulle  airports with a twice daily A380 service OMR117mn in the next three years to expand three industrial from Dubai. The Emirates A380 fleet currently serves 21 estates in Rusayl, Sohar and Nizwa. The growing demand for destinations with new cities to be announced in the coming industrial plots from entrepreneurs in Oman has necessitated months. (Gulf-Times.com) this move. In addition, plans are afoot to set up industrial estates Abu Dhabis foreign trade grows to AED533bn in 2011 – in Samayil, Ibri, Musandam and in the Sharqia region. According to data released by the Abu Dhabi Department of (GulfBase.com) Economic Development (DED), Abu Dhabis foreign trade value  Galfar E&C wins OMR4.8mn contract for periodic increased by 37.6% in 2011 to reach AED532.9bn, accounting maintenance of Sohar refinery project – Galfar Engineering & for 66% of its GDP for the year. Exports grew by 38.5% and Contracting (Galfar E&C) has won the tender for periodic imports rose 34.4%. Saudi Arabia was Abu Dhabis largest non- maintenance of the Sohar refinery project from the Oman Oil oil trading partner, accounting for 11% of the total non-oil trade Refineries & Petroleum Industries. The contract worth a total valued at AED15.9bn. (GulfBase.com) sum of OMR4.8mn is to be completed in 150 days. The Kuwait MoE announces new projects worth KD321mn – company expects reasonable income from this project. (MSM) Kuwait’s  Ministry  of  Education  has  unveiled  new  projects  valued    CBB Treasury Bills oversubscribed – The Central Bank of KD321mn under the ministry’s  developmental  plan  for  the  2014- Bahrain’s   (CBB)   this   weeks   BHD35mn   issue   of   government   2018 period. The projects worth KD249mn were allocated to treasury bills has been oversubscribed by 233%. The bills carry demolishing and rebuilding old and dilapidated schools, and a maturity of 91 days. The weighted average rate of interest for building new schools in cooperation with the education sector. the issue is 0.99% as compared with 1.04% for the previous (GulfBase.com) issue on December 19, 2012. (AME Info) Oman inks OMR57.5mn worth aviation and transport deals  GSS   bags   €7.4mn   contract   from   GNPOC   – Global Sourcing – The Omani Ministry of Transport & Communications has and Supply Services Company (GSS), a subsidiary of BMMI has signed two agreements worth OMR57.5mn in the field of been awarded an existing contract to provide catering and aviation and transport. The first agreement worth OMR41.8mn associated services for upstream Heg1ig base camp from the signed with the Hill International Company is for the completion Greater Nile Petroleum Operating Company (GNPOC) based in of consultancy services and supervision works for the Muscat Khartoum,   North   Sudan.   The   contract’s   term   will   be   for   two   International Airport and the Salalah Airport projects. The second agreement worth OMR15.7mn signed with Al Sarooj Page 5 of 7
  • 6. years   with   a   provisional   contract   price   of   €7.4mn.   (Bahrain   Bourse) Alba’s  production  gets  a  boost – Aluminum Bahrain (Alba) is on track to broaden its production capacity and enhance its output levels in the line current for Pot Line 5 to 360 kA. The increase in line current is part of an initiative to raise performance in line with the recent upgrade of Pot Line 5 from AP30 to AP 36 technology. The upgrade will enable Alba to boost output since each 1 kA increase is expected to yield 950 tons of extra aluminum production each year. (Bahrain Bourse) Page 6 of 7
  • 7. Rebased Performance Daily Index Performance 140.0 1.2% 0.9% 0.7% 130.0 0.6% 120.0 0.1% 0.1% 120.1 0.0% 110.0 108.3 100.0 (0.6%) (0.2%) 101.1 (0.4%) 106.0 90.0 (0.8%) 98.2 (1.2%) Saudi Arabia * Bahrain ** Oman * Abu Dhabi ** Kuwait ** Dubai ** Qatar ** 80.0 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 4 QE Index S&P Pan Arab S&P GCCSource: Bloomberg Source: Bloomberg (* Data as of Jan. 1, 2013, ** Data as of Dec. 31, 2012) Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold 1,665.16 (0.6) 0.6 (0.6) DJ Industrial 13,104.14 0.0 1.3 0.0 Silver 30.34 (0.0) 1.1 (0.0) S&P 500 1,426.19 0.0 1.7 0.0 Crude Oil (Brent) 112.84 0.0 0.8 0.0 NASDAQ 100 3,019.51 0.0 2.0 0.0 Euro 1.32 0.1 (0.1) 0.1 DAX 7,612.39 0.0 0.0 0.0 Yen 86.70 (0.1) 0.9 (0.1) FTSE 100 5,897.81 0.0 (0.5) 0.0 GBP 1.62 (0.0) 0.6 (0.0) CAC 40 3,641.07 0.0 0.6 0.0 CHF 1.10 0.3 0.1 0.3 Nikkei 10,395.18 0.0 0.0 0.0 AUD 1.04 0.0 0.2 0.0 Shanghai 2,269.13 0.0 1.6 0.0 USD Index 79.74 (0.0) 0.1 (0.0) BSE Sensex 19,580.81 0.8 0.7 0.8 RUB 30.56 0.1 0.7 0.1 Bovespa 60,952.08 0.0 0.0 0.0 BRL 0.49 0.0 (0.2) 0.0 RTS 1,530.41 0.0 0.2 0.0Source: Bloomberg Source: BloombergContacts Ahmed M. Shehada Keith Whitney Saugata Sarkar Sahbi Kasraoui Head of Trading Head of Sales Head of Research Manager - HNWI Tel: (+974) 4476 6535 Tel: (+974) 4476 6533 Tel: (+974) 4476 6534 Tel: (+974) 4476 6544 ahmed.shehada@qnbfs.com.qa keith.whitney@qnbfs.com.qa saugata.sarkar@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa QNB Financial Services SPC Contact Center: (+974) 4476 6666 PO Box 24025 Doha, QatarDISCLAIMER: 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 anoffer, 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 potentialinvestors 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 bereliable, 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 theright 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, theviews 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