9 January Daily Market Report

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9 January Daily Market Report

  1. 1. QE Intra-Day Movement Market Indicators 10,900 10,880 10,860 10,840 Market Indices 10,820 10,800 9:30 09 Jan 14 520.3 574,369.8 8.5 5,425 40 18:19 Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QE index rose 0.4% to close at 10,873.1. Gains were led by the Telecoms and Transportation indices, gaining 1.7% and 0.4% respectively. Top gainers were Al Meera Consumer Goods Co. and Qatar General Ins. & Rein. Co. rose 4.7% each. Among the top losers, Al Ahli Bank fell 3.2%, while Islamic Holding Group declined 1.9%. 08 Jan 14 400.7 572,011.1 8.2 4,524 39 25:8 %Chg. 29.8 0.4 3.5 19.9 2.6 – Close Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index 1D% WTD% YTD% TTM P/E 15,535.13 2,689.32 2,553.28 3,613.44 1,951.17 2,009.56 2,432.27 1,521.09 6,078.15 3,181.33 0.4 0.3 0.1 0.3 0.4 (0.1) 0.4 1.7 0.2 0.5 3.1 2.5 3.3 1.3 3.6 0.4 3.3 4.9 0.8 2.4 4.8 3.9 4.5 3.2 5.0 2.9 4.1 4.6 2.2 4.8 N/A 13.6 13.4 13.1 13.2 13.8 10.0 20.7 23.1 16.5 GCC Commentary GCC Top Gainers## Exchange Close# Saudi Arabia: The TASI index rose 0.3% to close at 8,677.9. Gains were led by the Telecomm. & Info. Tech. and Hot. & Tour. indices, rising 0.9% and 0.8% respectively. Petro Rabigh rose 4.0%, while United Int. Trans. was up 3.5%. Drake & Scull Int. 1D% Vol. ‘000 YTD% Dubai 1.63 8.7 217,002.4 13.2 Abu Dhabi Nat. Ins. Co. Abu Dhabi 6.40 8.5 3.0 8.5 Dubai: The DFM index gained 1.8% to close at 3,504.7. The Banking index rose 3.2%, while the Real Estate & Construction index was up 1.9%. Al Salam Sudan surged 14.7%, while Al Salam Bank – Bahrain gained 9.1%. Sharjah Islamic Bank Abu Dhabi 2.02 5.8 19,151.4 31.2 Nat. Marine Dredging Abu Dhabi 8.60 4.8 6.2 0.0 Abu Dhabi: The ADX benchmark index rose 0.5% to close at 4,417.8. The Insurance index gained 2.5%, while the Inv. & Fin. Ser. index was up 2.4%. Gulf Medical Projects Co. surged 14.8%, while Nat. Takaful Co. gained 14.4%. Al Meera Consumer Qatar 142.20 4.7 616.7 6.7 GCC Top Losers Exchange Kuwait: The KSE index gained 0.1% to close at 7,668.8. The Technology index rose 3.5%, while the Consumer Services index was up 1.2%. Kipco Asset Management Co. and Zima Holding Co. gained 8.6% each. Investbank Abu Dhabi 2.66 (8.0) 75.4 (1.1) Ithmaar Bank Bahrain 0.23 (4.2) 272.5 0.0 Oman: The MSM index rose 1.0% to close at 7,156.2. Gains were led by the Financial and Industrial indices, gaining 1.0% and 0.9% respectively. Oman United Insurance rose 5.8%, while Galfar Engineering & Con. was up 5.4%. Al Ahli Bank Qatar 57.40 (3.2) 32.4 4.4 Saudi Hollandi Bank Saudi Arabia 41.70 (2.8) 287.6 (0.2) Arab National Bank Saudi Arabia 31.00 (2.5) 651.6 0.6 Bahrain: The BHB index gained 0.1% to close at 1,263.4. The Services index rose 0.2%, while the Commercial Banking index was up 0.1%. Al Salam Bank gained 6.5%, while Seef Properties was up 2.5%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Al Meera Consumer Goods Co. 142.20 4.7 616.7 6.7 Qatar General Ins. & Rein. Co. 44.50 4.7 11.7 (7.1) Doha Insurance Co. 27.95 3.5 35.7 Qatar International Islamic Bank 68.00 3.2 655.7 Qatar & Oman Investment Co. 13.01 2.9 266.9 3.9 ## # Close 1D% Vol. ‘000 YTD% 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 Vol. ‘000 Close* 1D% YTD% Al Ahli Bank 57.40 (3.2) 32.4 4.4 Islamic Holding Group 51.00 (1.9) 163.7 10.9 11.8 Dlala Brok. & Inv. Holding Co. 23.70 (1.8) 116.9 7.2 10.2 Doha Bank 63.00 (1.3) 337.5 8.2 Qatar German Co. for Med. Devi. 13.70 (1.1) 5.5 (1.1) Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Al Meera Consumer Goods Co. 142.20 4.7 86,369.8 6.7 174.50 0.6 80,790.6 1.5 3.2 44,036.3 10.2 Close* 1D% Vol. ‘000 YTD% Masraf Al Rayan 33.40 (0.9) 1,049.4 6.7 Qatari Investors Group 50.50 0.6 846.5 15.6 QNB Group Qatar International Islamic Bank 68.00 3.2 655.7 10.2 Qatar International Islamic Bank 68.00 Al Meera Consumer Goods Co. 142.20 4.7 616.7 6.7 Qatari Investors Group 50.50 0.6 43,981.0 15.6 20.75 0.0 518.3 2.5 Masraf Al Rayan 33.40 (0.9) 35,236.5 6.7 Qatar Exchange Top Vol. Trades Qatar Gas Transport Co. Source: Bloomberg (* in QR) Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain Source: Bloomberg (* in QR) Close 1D% WTD% MTD% YTD% 10,873.08 3,504.66 4,417.79 8,677.87 7,668.82 7,156.17 1,263.41 0.4 1.8 0.5 0.3 0.1 1.0 0.1 3.1 0.9 1.3 0.7 1.6 3.9 1.2 4.8 4.0 3.0 1.7 1.6 4.7 1.2 4.8 4.0 3.0 1.7 1.6 4.7 1.2 Exch. Val. Traded ($ mn) 163.78 456.51 301.96 1,804.13 109.73 46.17 6.20 Exchange Mkt. Cap. ($ mn) 157,722.0 73,002.2 125,582.6 476,962.3 109,877.3 25,502.1 50,536.5 P/E** P/B** 13.9 20.7 12.3 17.6 17.0 11.3 8.2 1.9 1.4 1.5 2.2 1.2 1.7 0.9 Dividend Yield 4.2 2.5 4.1 3.4 3.7 3.6 3.8 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 6
  2. 2. Qatar Market Commentary  The QE index rose 0.4% to close at 10,873.1. The Telecoms and Transportation indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders. Overall Activity Sell %* Net (QR) Qatari 53.53% 76.92% (121,742,559.87) Non-Qatari  Al Meera Consumer Goods Co. and Qatar General Ins. & Rein. Co. were the top gainers, rising 4.2% each. Among the top losers, Al Ahli Bank fell 3.2%, while Islamic Holding Group declined 1.9%. Buy %* 46.47% 23.08% 121,742,559.87 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Thursday rose by 3.5% to 8.5mn from 8.2mn on Wednesday. However, as compared to the 30day moving average of 11.4mn, volume for the day was 24.4% lower. Masraf Al Rayan and Qatari Investors Group were the most active stocks, contributing 12.3% and 9.9% to the total volume respectively. Earnings and Global Economic Data Earnings Releases Company Market United Wire Factories Co. (ASLAK) Currency Saudi Arabia Revenue (mn) 4Q2013 % Change YoY Operating Profit (mn) 4Q2013 % Change YoY Net Profit (mn) 4Q2013 % Change YoY – – 24.6 -20.4% 25.0 -19.6% SR Source: Company data, DFM, ADX, MSM Global Economic Data Date Market Source Indicator Period 01/09 US IPSOS Public Affairs RBC Consumer Outlook Index January 01/09 US Department of Labor Initial Jobless Claims 4-January 01/09 US Department of Labor Continuing Claims 28-December 01/09 US Bloomberg Bloomberg Consumer Comfort 5-January 01/10 US Bureau of Labor Stat. Unemployment Rate 01/10 US Bureau of Labor Stat. 01/10 US Bureau of Labor Stat. 01/10 US 01/10 01/10 Actual Consensus Previous 51.5 – 49.7 330K 335K 345K 2,865K 2,850K 2,815K -28.4 – -28.7 December 6.70% 7.00% 7.00% Average Hourly Earnings MoM December 0.10% 0.20% 0.20% Average Hourly Earnings YoY December 1.80% 1.90% 2.00% Bureau of Labor Stat. Underemployment Rate December 13.10% – 13.10% US US Census Bureau Wholesale Inventories MoM November 0.50% 0.40% 1.30% US US Census Bureau Wholesale Trade Sales MoM November 1.00% 0.70% 1.10% 01/10 US Bloomberg IBD/TIPP Economic Optimism January 45.2 46 43.1 01/09 EU European Commission Services Confidence December 0.2 -0.5 -0.9 01/09 EU European Commission Business Climate Indicator December 0.27 0.22 0.31 01/09 EU European Commission Economic Confidence December 100 99.1 98.4 01/09 EU European Commission Industrial Confidence December -3.4 -3 -3.9 01/09 EU European Commission Consumer Confidence December -13.6 -13.6 -15.4 01/09 EU ECB ECB Announces Interest Rates 9-January 0.25% 0.25% 0.25% 01/09 France Ministry of the Economy Trade Balance November -5680M -4600M -4826M 01/10 France INSEE Industrial Production MoM November 1.30% 0.40% -0.50% 01/10 France INSEE Industrial Production YoY November 1.50% 0.90% -0.30% 01/10 France INSEE Manufacturing Production MoM November 0.20% 0.20% 0.30% 01/10 France INSEE Manufacturing Production YoY November 1.60% 1.50% 0.50% 01/09 Germany Bundesbank Industrial Production SA MoM November 1.90% 1.50% -1.20% 01/09 Germany BAFA Industrial Production WDA YoY November 3.50% 3.00% 1.10% 01/09 UK ONS Trade Balance November -£3238 -£2300 -£3496 01/09 UK Bank of England Bank of England Bank Rate 9-January 0.50% 0.50% 0.50% 01/10 UK ONS Industrial Production MoM November 0.00% 0.40% 0.30% 01/10 UK ONS Industrial Production YoY November 2.50% 3.00% 3.20% 01/10 UK ONS Manufacturing Production MoM November 0.00% 0.40% 0.20% 01/10 UK ONS Manufacturing Production YoY November 2.80% 3.30% 2.60% 01/10 UK ONS Construction Output SA MoM November -4.00% 0.80% 2.00% 01/10 UK ONS Construction Output SA YoY November 2.20% 7.50% 5.10% 01/10 UK NIESR NIESR GDP Estimate December 0.7% – 0.8% 01/10 Spain INE Industrial Output WDA YoY November 2.70% 2.20% -1.40% 01/09 China Nati. Bureau of Statistics CPI YoY December 2.50% 2.70% 3.00% Page 2 of 6
  3. 3. 01/09 China Nati. Bureau of Statistics PPI YoY December -1.40% -1.30% -1.40% 01/10 China Nati. Bureau of Statistics Trade Balance December $25.64B $32.15B $33.80B 01/10 China Nati. Bureau of Statistics Exports YoY December 4.30% 5.00% 12.70% 01/10 China Nati. Bureau of Statistics Imports YoY December 8.30% 5.00% 5.30% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  QNB Group: $30bn Qatar spend, mega GCC region projects to drive Gulf growth in 2014 – According to a report by QNB Group, Qatar’s project spending estimated at $30bn this year and large-scale projects across the GCC will drive the region’s growth in 2014. In the short term, the GCC region will drive the MENA region’s growth, mainly through heavy spending on infrastructure. In the GCC region, many countries including Saudi Arabia and Kuwait have huge project spending outlay this year. Dubai’s successful bid for the World Expo 2020 and a number of new real estate developments will boost project spending in the UAE. The Saudi government alone is spending in excess of $50bn on infrastructure projects through its budget, which excludes significant project spending by the private sector and state-owned companies. The report also said greater integration into the global economy of the MENA region (exGCC region) through increased trade openness and enhanced competitiveness could raise long-term growth prospects. QNB Group estimates that real GDP growth in the GCC region stood at 3.7% in 2013, compared with 1.2% in the rest of MENA. This is relatively sluggish compared with the historical average MENA growth of around 5% or higher. (Gulf-Times.com)  Kahramaa studying N-power plant feasibility – Qatar’s Minister of Energy & Industry HE Dr. Mohammed bin Saleh al Sada said Qatar General Electricity & Water Corporation (Kahramaa) is finalizing the preliminary studies to study the feasibility of establishing a nuclear power plant. He said Qatar is considering using nuclear energy in electricity production in collaboration with other GCC countries. Al Sada also hoped that Qatar’s goal of reducing the rate of electricity consumption per capita by 20% and water by 35% over the next five years will be met. (Qatar Tribune)  RasGas plans to convert more vessels to LNG – With the International Maritime Organization (IMO) deciding to regulate maritime transport’s emissions from January 2015, RasGas is planning to convert over a dozen of its diesel-powered energy carriers into LNG-powered vessels. The IMO’s regulations to cut the emission rate of ships will force thousands of ship owners to convert their vessels into cleaner LNG-powered engines. RasGas has a fleet of 27 LNG carriers, which include 14 conventional carriers, 12 Q-Flex and one Q-Max carrier. The conventional carriers are already powered by steam plants. However, using new technology, RasGas is planning to convert its Q-Flex and Q-Max vessels. Currently, these 13 vessels are being powered by slow-speed diesel engines, which can use only heavy fuel or marine gas oil. The idea is to convert them to be able to use gas, directly vaporized from LNG, as fuel. (Peninsula Qatar)  Ashghal to align 7 expressways under QR45bn road projects – The Public Works Authority (Ashghal) is set to sign various contracts to launch seven major expressways, carry out road development and repair work and undertake sewage projects worth QR45bn expected to be completed over the next five to seven years. The expressway projects involve 900 kilometers of roads, subways, flyovers and interchanges, which is part of the road infrastructure scheme connecting places in Doha and other parts of the country. These projects involve development and repair of some major roads, along with building 240 major interchanges, which would convert conventional traffic lights into multi-level interchanges with tunnels and flyovers. As for the sewage plan, 221 projects are to be executed over the next 5-7 years at a cost of QR50bn. (Peninsula Qatar)  QIGD postpones its EGM to January 12 – Qatari Investors Group (QIGD) announced that the necessary quorum for the EGM on January 8, 2014, was not met and therefore, it will hold another EGM on January 12, 2014. (QE) International  Fischer nominated for Federal Reserve’s vice chairman – The Obama administration said that the former head of the Bank of Israel, Stanley Fischer, will be nominated to serve as the Vice Chairman of the US Federal Reserve. According to a statement by the White House, Fischer would replace Janet Yellen, who was promoted to the chairmanship of the US central bank. Lael Brainard – formerly the US Treasury Department’s international official – will be on the board, while Jerome Powell is nominated for a second term. (Bloomberg)  Fed soothes US debt burden to $77.7bn in 2013 – According to the data published by the Federal Reserve, Fed pumped $77.7bn into the US Treasury last year, in part by returning interest payments made by the government on bonds held by the central bank. The Fed's balance sheet has ballooned over the last four years to nearly $4tn as it bought debt securities to lower interest rates and spark a faster economic recovery. (Bloomberg)  Regulators to ease bank rule to help economic recovery – According to sources, global regulators will make it easier for lenders to feed credit to the economy by relaxing a new rule designed to limit risk on banks balance sheets. The rule is among the final elements of a global accord on bank capital, known as Basel III, which forms the world's core regulatory response to the 2007-09 financial crisis that saw undercapitalized lenders being rescued by taxpayers. The Central bankers from the Group of 20 leading economies and other countries will meet in Basel, Switzerland to endorse the final version of the so-called leverage ratio that banks will have to comply with from January 2018. (Bloomberg)  ECB toughens talk on inflation, money market rates – The European Central Bank (ECB) forcefully underlined its determination to take further action should the Eurozone’s inflation risk turns into deflation or rising money market rates threaten the bloc's fragile recovery. After leaving its interest rates at a record low on January 9th, the ECB toughened its pledge to keep its policy loose, while firmly reiterating its expectation for rates to remain at current levels for an extended period. ECB’s President Mario Draghi said that the Governing Council strongly emphasized that it will maintain an accommodative stance of the monetary policy for as long as necessary. (Reuters)  China’s 2013 trade crosses $4tn – China’s annual trade passed the $4tn mark for the first time in 2013. The General Administration of Customs (GAC) announced that exports from the country rose 7.9% to $2.21tn, while imports increased 7.3% Page 3 of 6
  4. 4. to $1.95tn. The trade surplus stood at $259.75bn, up 12.8% from 2012. Total trade came to $4.16tn, showing an increase of 7.6%. GAC’s spokesman Zheng Yuesheng said that it is likely that China has already overtaken the US to become the world’s largest trading country in 2013 for the first time. The traditional leading markets of the EU, US and Japan accounted for 33.5% of China’s trade, down 1.7 percentage points, suggesting that emerging markets’ share of business was rising. (Peninsula Qatar) Regional  Oil Movements: OPEC to cut exports to lowest in four months – According to Oil Movements, the Organization of Petroleum Exporting Countries (OPEC) will reduce its crude shipments to the lowest level since September 2013 as refineries trim imports before conducting maintenance during spring. OPEC will reduce shipments by 390,000 barrels a day, or 1.6%, to 23.71mn barrels in the four weeks to January 25. That compares poorly with 24.1mn barrels in the period up to December 28. These figures exclude two of OPEC’s 12 members: Angola and Ecuador.  IATA: Middle East carriers post record air freight growth – According to the International Air Transport Association (IATA), better demand in Europe and solid trade growth with the Gulf region helped the Middle Eastern carriers to report the strongest annual freight demand growth of 16.5% in November 2013. In comparison to the Middle Eastern carriers, the European carriers witnessed 8% growth in freight demand, followed by Asia-Pacific (4.9%) and North America (2.5%), as against the global average of 6.1%. Meanwhile, African and Latin American airlines saw a contraction of 1.2% and 0.1% respectively. IATA said that carriers in the Middle East have benefited from improvements in advanced economies, including better demand in Europe, as well as solid economic and trade growth in the Gulf area. (Gulf-Times.com)  ANB reports SR536.6mn net profit in 4Q2013 – The Arab National Bank (ANB) has reported a net profit of SR536.6mn in 4Q2013, reflecting a decline of 8.9% QoQ (+26.3% YoY). EPS stood at SR2.97 for the period ended on December 31, 2013 as compared to SR2.79 in December 31, 2012. Total assets at the end of December 2013 stood at SR137.9bn as compared to SR136.6bn in December 2012. Loans & advances rose by 2.5% YTD to SR 88.5bn, while customer deposits were down by 1.1% YTD to SR106.4bn. (Tadawul)  Bank Albilad reports SR213.7mn net profit in 4Q2013 – Bank Albilad has reported a net profit of SR213.7mn in 4Q2013, reflecting a growth of 8.4% QoQ (+36.4% YoY). EPS stood at SR1.82 for the period ended on December 2013 as compared to SR2.35 in December 31, 2012. Total assets at the end of December 2013 stood at SR36.3bn as compared to SR29.8bn in December 2012. Loans & advances rose by 28.3% YTD to SR23.4bn, while customer deposits were up by 22.6% YTD to SR29.1bn. (Tadawul)  Saudi Aramco to buy $2bn stake in S-Oil – According to sources, Saudi Aramco will buy a $2bn stake in South Korea’s S-Oil Corporation. Saudi Aramco will buy almost all of Hanjin Energy Co’s stake in S-Oil. According to data compiled by Bloomberg Saudi Aramco currently owns 35% of S-Oil, followed by Hanjin’s 28.4%. Meanwhile, Saudi Aramco will provide 100% of its crude cargoes sold under long-term contracts. (GulfTimes.com)  Kingdom plans to sell shares of Satorp, Sadara in IPO – Saudi Petroleum & Mineral Resources Minister Ali Al Naimi said that the government plans to sell shares of Saudi Aramco Total Refining & Petrochemical Company (Satorp) and Sadara Chemical Company to citizens at cost rate in an IPO. Satrop – a JV between Saudi Aramco and France’s Total – involves a total capital investment of SR52.87bn. (GulfBase.com)  Saudi oil output up in December – According to industry sources, Saudi Arabia produced 9.819mn bpd of crude oil in December 2013, up from 9.745mn bpd in November 2013. The Kingdom also raised its supply to the market to 9.897mn bpd in December from 9.448mn bpd in November. (GulfBase.com)  DSFH plans hospital, university project in Dubai – Dr. Soliman Fakeeh Hospital (DSFH) is planning to build a hospital and medical university project worth AED1bn in Dubai Silicon Oasis. Based in Jeddah, DSFH is a leading private hospital in the Middle East with a total capacity of 600 beds. The new hospital is to be completed by 2017, while the medical university will be ready by 2019, which are expected to offer 4,000 new jobs. An agreement regarding this was signed by DSFH’s President & Chairman Mazen Fakeeh and Dubai Silicon Oasis Authority’s Vice Chairman & CEO Mohammed Al Zarooni. (GulfBase.com)  Sahara Petchem’s unit to restart operations – Al Waha Petrochemicals Company, an affiliate of Sahara Petrochemical Company has announced that the scheduled maintenance of Al Waha’s plant has been completed and it has started the necessary steps to restart the operation and plant units. (Tadawul)  SAFCO announces correction to cash dividend distribution for 2H2013 – The Saudi Arabia Fertilizers Company (SAFCO) has announced a correction related to the distribution of cash dividends to its shareholders for 2H2013. The eligibility of dividends shall be for the shareholders registered in the registers of the Securities Depository Center (Tadawul) as on March 24, 2014. (Tadawul)  Almarai acquires IPNC – Almarai Company has acquired the entire share capital of the International Pediatric Nutrition Company (IPNC) from its JV partner Mead Johnson Nutrition. (Tadawul)  Arabian Pipes signs revised contract with Hanwha E&C – Arabian Pipes Company has signed a revision of a contract it had earlier made with Hanwha Engineering & Construction Company (Hanwha E&C). This revised contract increases the total amount from SR49mn to SR61mn due to a rise in contract quantity supplied from Jubail factory. It also extends the contract delivery period to be during 3Q2014 and 4Q2014 and the financial impact is expected to be visible after that. (Tadawul)  Bahri receives new 26,000 DWT general cargo vessel – The National Shipping Company of Saudi Arabia (Bahri) has received the delivery of a new 26,000 DWT general cargo vessel. The ship, named Bahri Jeddah was built by Hyundai MIPO in South Korea. This is the fifth vessel delivered from a batch of six vessels that were contracted with this shipyard in 2011 for a total value of SR1,543mn. The last general cargo vessel remaining under construction at Hyundai MIPO is expected to be delivered during 1H2014. The financial impact of the delivered vessel will materialize during 1Q2014. (Tadawul)  Saudi CMA approves SAIB’s capital increase through bonus shares issue – The Saudi Capital Market Authority (Saudi CMA) has approved the Saudi Investment Bank’s (SAIB) request to increase its capital from SR5.5bn to SR6bn through issuance of one bonus share for every 11 existing shares. This capital increase will be paid by transferring an amount of SR500mn from its retained earnings account to the bank’s capital. Consequently, SAIB is increasing its outstanding shares Page 4 of 6
  5. 5. from 550mn shares to 600mn shares. The bonus shares eligibility is limited to those shareholders who are registered in the shareholders registry at the close of trading on the day of the extraordinary general assembly, which will be determined later by the bank's board, and should be held within six months from the approval date. (Tadawul)  Aggregate money supply in UAE up 3.8% to AED62.8bn in October 2013 – The UAE Central Bank announced that the money supply aggregate M0 increased by 3.8% from AED60.5bn at the end of September 2013 to AED62.8bn at the end of October 2013. The money supply aggregate M1 increased by 2% from AED354.4bn in September to AED361.5bn in October. Similarly, the money supply aggregate M2, increased by 5.1% from AED955.0bn in September to AED1,003.5bn in October. Meanwhile, the money supply aggregate M3 increased by 2% from AED1,199.6bn in September to AED1,223.1bn in October. Total bank deposits increased by 1.2% during October 2013 to reach AED1,285.1bn, as a result of an increase in resident deposits by 2%. Meanwhile, total bank loans and advances decreased by 1.7% to reach AED1,157.8bn, while total bank assets increased by 4.1% to reach AED1,986.6bn, at the end of October 2013. (GulfBase.com)  GCAA signs ASA deal with India – The UAE’s General Civil Aviation Authority (GCAA), signed the Air Services Agreement (ASA) with the Government of India, which allows scheduled flights of any type of service (passenger or cargo) between the two countries. The agreement was signed by the GCAA’s Director-General Saif Mohammed Al Suwaidi and the Ministry of Civil Aviation of India’s Joint Secretary Dr. Prabhat Kumar. Al Suwaidi said that GCAA continues to explore new horizons for mutual air transport agreements to promote the UAE’s local carriers and boost the local economy. Such ASA deals are in line with the directions of the UAE Government to enhance international cooperation through air transport. (GulfBase.com)  DFM to be closed on January 12 – The Dubai Financial Market (DFM) will be closed on January 12, 2014 on the occasion of the Prophet’s birthday. The trading will resume on January 13, 2014. (DFM)  Dubai rentals surge, downtown rent up over 100% – Rentals in Dubai increased significantly during 2013 as downtown rent jumped by more than 100%, while other locations also witnessed 30% rise. With the iconic Burj Khalifa and the world’s largest shopping mall as its centerpiece, the residences in the downtown area ranked among Dubai’s most sought after locations during 2013. Evidently, the Dubai Land Department (DLD) is planning to limit rent hikes when tenants change and also update its rental price index. According to DLD’s General Director Sultan Bin Mejren, while there are caps on increases for existing occupiers, Dubai currently has no controls on increases for new tenants. (GulfBase.com)  Dubai plans new rules to control properties speculation – The Dubai Land Department (DLD) General Director Sultan Bin Mejren said that Dubai is planning new rules to control speculation on properties sold before they are built after home prices climbed by more than 30% last year. He said that the real estate authority plans to complete a review of off-plan transactions in 1Q2014 and may introduce new regulations in 2Q2014. Mejren said that the home prices this year may rise 3540%. (GulfBase.com) travelers wishing to visit destinations such as Mauritius, Bangkok, Shanghai and Sydney, the chance to experience a seamless Emirates A380 experience connecting through Emirates’ Dubai hub. (GulfBase.com)  Dubai Group appoints new CEO – Dubai Group has appointed Ahmed Al-Qassim as its chief executive, who previously worked at its biggest creditor. Qassim was a director of investment banking at Emirates NBD since February 2013, and has also held various roles at General Electric and Mubadala Development Company. (GulfBase.com)  Kuwait’s inflation drops to 2.6% in November – According to the report released by the National Bank of Kuwait, the consumer price index (CPI) edged down to 2.6% YoY in November, from 2.7% in October. This small move masked some notable changes within the sub-components: another sharp fall in food price inflation was almost offset by a rise in core price pressures. It is expected that core pressures to continue to edge higher. However, the overall inflation rate is still forecast to average at a modest 3.0% throughout 2014, up from 2.6% in 2013. The report noted that food price inflation fell to 2.4% YoY from 3.5% in October, its sixth consecutive monthly decline. Given the component's large weight in the CPI (18%), this move subtracted some 0.2% points from the overall inflation rate in November. (Bloomberg)  Bank Dhofar appoints HR Head – Bank Dhofar has appointed Nasser bin Said Al Bahantah as Deputy General Manager – Head of Human Resources. Nasser has a bachelor’s degree in business administration and a Global Executive Graduate Certificate in human resources leadership. Nasser has 22 years of experience as a HR professional. (MSM)  Bahrain’s LT/LCR IDR credit rated BBB/BBB+ by Fitch; outlook stable – Fitch has affirmed Bahrain’s long-term (LT) foreign currency Issuer Default Rating (IDR) at “BBB” and local currency IDR at “BBB+” with a Stable outlook. The ratings on Bahrain's senior unsecured foreign and local currency bonds have also been affirmed at “BBB” and “BBB+”, respectively. Fitch has simultaneously affirmed Bahrain's Country Ceiling at “BBB+” and short-term foreign currency IDR at “F3”. Fitch’s affirmation and the stable outlook indicate that Bahrain's external position is stronger than its “BBB” rated peers. A current account surplus of around 10% of GDP is estimated for 2013, which will be the 10th consecutive year of surplus. (Reuters)  FEB inks $34mn facility with Dutch firm – Bahrain-based First Energy Bank (FEB) has signed a $34mn Murabaha facility with Kore Coal Finance, a Dutch-based subsidiary of Sapinda Holding. The financing will assist Sapinda in enhancing its investments in an internationally operating resource company, which owns coal mining assets in South Africa. This Islamic facility supplements the recently concluded conventional profit participation note of EUR55mn raised by Kore Coal Finance with a similar objective. The Murabaha facility has been structured on the basis of an attractive return and will be repaid by October 2016. FEB’s Head of Investment Management Tarun Puri said that the bank seeks to further diversify into asset classes that can generate similar sustained income streams. The bank has an authorized share capital of $2bn and a paid-up capital of $1bn. (GulfBase.com)  Emirates launches daily A380 service to Switzerland – Emirates Airline has launched A380 service to Zurich in Switzerland, bringing the number of destinations it serves with its popular A380 to 25. The new A380 service to Zurich provides Page 5 of 6
  6. 6. Rebased Performance Daily Index Performance 170.0 160.0 150.0 140.0 130.0 120.0 110.0 100.0 90.0 80.0 1.6% 1.2% 0.8% 0.4% 1.0% 0.3% QE Index Close 1D% WTD% YTD% 16,437.05 (0.0) (0.2) (0.8) S&P 500 1,842.37 0.2 0.6 (0.3) (3.2) NASDAQ 100 4,174.67 0.4 1.0 (0.0) (8.9) (9.0) STOXX 600 329.95 0.5 0.7 0.5 (0.2) 3.9 1.2 DAX 9,473.24 0.5 0.4 (0.8) 1.4 0.5 1.7 FTSE 100 6,739.94 0.7 0.1 (0.1) 4,250.60 0.6 0.1 (1.1) 15,912.06 0.2 (2.3) (2.3) Oct-12 S&P Pan Arab May-13 Dec-13 S&P GCC Source: Bloomberg Asset/Currency Performance Gold/Ounce Silver/Ounce Crude Oil (Brent)/Barrel (FM Future) Natural Gas (Henry Hub)/MMBtu North American Spot LPG Propane Price North American Spot LPG Normal Butane Price Euro Source: Bloomberg Close ($) 1D% WTD% YTD% Global Indices Performance 1,248.45 1.7 0.9 3.5 DJ Industrial 20.16 2.9 0.0 3.5 107.25 0.8 0.3 3.95 (4.5) 127.75 138.88 1.37 0.5 0.6 (0.5) CAC 40 104.18 (0.6) (0.6) (1.1) Nikkei GBP 1.65 0.0 0.4 (0.4) MSCI EM CHF 1.11 0.5 0.3 (1.1) SHANGHAI SE Composite AUD 0.90 1.1 0.6 0.9 USD Index 80.66 (0.4) (0.2) RUB 33.06 (0.5) (0.4) BRL 0.42 1.0 0.6 (0.2) Yen Dubai Mar-12 0.1% Abu Dhabi Aug-11 Qatar Jan-11 0.1% Oman 0.0% 0.5% 0.4% Bahrain 124.9 Kuwait 137.6 1.8% Saudi Arabia Jun-10 2.0% 156.2 970.15 0.7 (1.0) (3.2) 2,013.30 (0.7) (3.4) (4.9) HANG SENG 22,846.25 0.3 0.1 (2.0) 0.8 BSE SENSEX 20,758.49 0.2 (0.4) (1.9) 0.6 Bovespa 49,696.45 0.8 (2.5) (3.5) 1,395.91 0.5 (3.2) (3.2) Source: Bloomberg RTS Source: Bloomberg Contacts Saugata Sarkar Ahmed M. Shehada Keith Whitney Sahbi Kasraoui Head of Research Head of Trading Head of Sales Manager - HNWI Tel: (+974) 4476 6534 Tel: (+974) 4476 6535 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 saugata.sarkar@qnbfs.com.qa ahmed.shehada@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

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