30 April Daily market report
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30 April Daily market report Document Transcript

  • 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index rose 0.4% to close at 12,677.6. Gains were led by the Transportation and Telecoms indices, gaining 0.7% and 0.6% respectively. Top gainers were Mazaya Qatar Real Estate Dev. and Zad Holding Co., rising 6.5% and 3.2% respectively. Among the top losers, Ezdan Holding Group fell 9.9%, while Qatar General Ins. & Reins. Co. declined 4.4%. GCC Commentary Saudi Arabia: The TASI index rose 0.2% to close at 9,585.2. Gains were led by Hotel & Tour. and Multi-Inv. indices, rising 3.0% and 2.3% respectively. Al Sorayai Trad. & Ind. gained 8.9%, while Red Sea Hou. Serv. Co. was up 7.4%. Dubai: The DFM index declined 0.5% to close at 5,059.0. The Transportation index fell 1.4%, while the Insurance Index was down 1.0%. Ajman Bank declined 5.1%, while Gulf Navigation Holding Co. was down 4.5%. Abu Dhabi: The ADX benchmark index fell 0.5% to close at 5,044.6. The Industrial index declined 2.6%, while Real Estate index was down 1.8%. Int. Fish Farming Co. fell 10.0%, while Gulf Medical Projects Co. was down 9.9%. Kuwait: The KSE index fell marginally to close at 7,407.7. The Technology index declined 0.6%, while Parallel Market index was down 0.5%. Kuwait Build. Mat. Manu. fell 12.7%, while Flex Resorts & Real Est. was down 8.5%. Oman: The MSM index declined 0.2% to close at 6,727.2. Losses were led by the Financial and Industrial indices, falling 0.7% and 0.3% respectively. Gulf Int. Chem. declined 4.8%, while Oman Invest. & Finance was down 4.6%. Bahrain: The BHB index rose 0.1% to close at 1,427.3. The Services and Investment indices gained 0.6% each. Bahrain Cinema Co. rose 3.9%, while Seef Properties Co. was up 3.6%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 21.08 6.5 4,292.2 88.6 Zad Holding Co. 77.40 3.2 14.1 11.4 Doha Bank 64.90 2.7 135.7 11.5 Medicare Group 87.80 2.3 566.8 67.2 United Development Co. 25.55 2.2 5,196.0 18.7 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% United Development Co. 25.55 2.2 5,196.0 18.7 Barwa Real Estate Co. 37.50 (3.8) 4,485.8 25.8 Mazaya Qatar Real Estate Dev. 21.08 6.5 4,292.2 88.6 Masraf Al Rayan 48.30 1.9 1,839.6 54.3 Vodafone Qatar 16.92 (1.3) 1,789.8 58.0 Market Indicators 30 Apr 14 29 Apr 14 %Chg. Value Traded (QR mn) 1,107.9 780.8 41.9 Exch. Market Cap. (QR mn) 731,971.5 740,387.7 (1.1) Volume (mn) 27.6 18.8 46.9 Number of Transactions 10,808 9,029 19.7 Companies Traded 43 43 0.0 Market Breadth 20:21 12:28 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 18,905.03 0.4 (2.1) 27.5 N/A All Share Index 3,245.03 0.3 (2.7) 25.4 15.6 Banks 3,090.27 0.4 (2.9) 26.5 15.4 Industrials 4,282.31 0.4 (3.9) 22.3 16.7 Transportation 2,349.31 0.7 (0.7) 26.4 15.2 Real Estate 2,603.03 (1.0) (0.5) 33.3 13.1 Insurance 3,306.25 (0.1) (2.0) 41.5 8.7 Telecoms 1,706.35 0.6 (1.7) 17.4 24.2 Consumer 7,406.76 (0.3) (1.6) 24.5 30.3 Al Rayan Islamic Index 4,192.71 0.5 (1.9) 38.1 18.3 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Aseer Saudi Arabia 29.63 5.4 9045.2 27.4 Yamamah Saudi Cem. Saudi Arabia 61.05 5.1 2148.8 6.6 IFA Hotels & Resorts Kuwait 0.23 4.5 0.5 (19.3) Mabanee Co. Kuwait 1.18 3.5 493.2 5.4 Al Tayyar Saudi Arabia 126.07 3.1 548.8 47.3 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Ezdan Holding Group Qatar 33.10 (9.9) 109.6 94.7 Etihad Atheeb Saudi Arabia 16.00 (9.8) 29851.9 11.1 Gulf Pharmaceutical Abu Dhabi 3.20 (8.6) 101.1 7.6 Tihama Saudi Arabia 276.08 (8.1) 283.1 151.6 Ajman Bank Dubai 3.16 (5.1) 250.2 27.4 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 Losers Close* 1D% Vol. ‘000 YTD% Ezdan Holding Group 33.10 (9.9) 109.6 94.7 Qatar General Ins. & Reins. Co. 43.00 (4.4) 4.4 7.7 Barwa Real Estate Co. 37.50 (3.8) 4,485.8 25.8 Qatar Cinema & Film Distri. Co. 41.00 (2.4) 3.2 2.2 National Leasing 29.90 (2.0) 1,069.3 (0.8) Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Barwa Real Estate Co. 37.50 (3.8) 167,552.5 25.8 United Development Co. 25.55 2.2 132,347.1 18.7 Mazaya Qatar Real Estate Dev. 21.08 6.5 89,261.1 88.6 Masraf Al Rayan 48.30 1.9 88,165.7 54.3 QNB Group 190.00 (0.5) 72,730.5 10.5 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* 12,677.59 0.4 (2.1) 8.9 22.1 304.29 201,072.6 16.1 2.1 3.9 Dubai 5,058.95 (0.5) (0.6) 13.7 50.1 279.02 97,826.4 21.0 1.9 2.0 Abu Dhabi 5,044.62 (0.5) (2.4) 3.1 17.6 233.58 137,783.4 15.1 1.9 3.5 Saudi Arabia 9,585.22 0.2 0.3 1.2 12.3 2,699.69 520,531.1 19.0 2.3 3.0 Kuwait 7,407.68 (0.0) (0.5) (2.2) (1.9) 78.29 115,511.4 16.6 1.2 4.1 Oman 6,727.19 (0.2) (0.7) (1.9) (1.6) 33.48 24,360.4 11.7 1.6 3.9 Bahrain 1,427.33 0.1 0.6 5.2 14.3 2.44 53,431.7 9.9 1.0 4.8 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 12,500 12,550 12,600 12,650 12,700 12,750 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 rose 0.4% to close at 12,677.6. The Transportation and Telecoms indices led the gains. The index rose on the back of buying support from Qatari shareholders despite selling pressure from non-Qatari shareholders.  Mazaya Qatar Real Estate Dev. and Zad Holding Co. were the top gainers, rising 6.5% and 3.2% respectively. Among the top losers, Ezdan Holding Group fell 9.9%, while Qatar General Ins. & Reins. Co. declined 4.4%.  Volume of shares traded on Wednesday rose by 46.9% to 27.6mn from 18.8mn on Tuesday. However, as compared to the 30-day moving average of 28.0mn, volume for the day was 1.5% lower. United Development Co. and Barwa Real Estate Co. were the most active stocks, contributing 18.8% and 16.3% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Ratings, Earnings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Orient Insurance Co. (ORIENT) AM Best Dubai FSR/ICR A/a A/a – Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC – Local Currency, ICR - Issuer Credit Rating) Earnings Releases Company Market Currency Revenue (mn)1Q2014 % Change YoY Operating Profit (mn) 1Q2014 % Change YoY Net Profit (mn) 1Q2014 % Change YoY Deyaar Development Dubai AED – – – – 52.1 168.6% United Industries Co. (UIC) Kuwait KD – – – – 5.2 42.7% Omani Qatari Telecommunications Co. (Nawras) Oman OMR 52.7 9.3% – – 8.8 14.3% Bahrain Commercial Facilities (BCFC) Bahrain BHD 3.5 14.3% – – 3.1 -6.1% United Gulf Investment Corporation (UGIC) Bahrain BHD 9.6 -2.9% – – 0.3 -93.3% Bahrain Telecommunications Co. (BATELCO) Bahrain BHD 97.6 37.5% – – 14.5 8.2% Source: Company data, DFM, ADX, MSM Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 04/30 US MBA MBA Mortgage Applications 25 April -5.90% – -3.30% 04/30 US ADP ADP Employment Change April 220K 210K 209K 04/30 US BLS Employment Cost Index 1Q2014 0.30% 0.50% 0.50% 04/30 US BEA GDP Annualized QoQ 1Q2014 0.10% 1.20% 2.60% 04/30 US BEA GDP Price Index 1Q2014 1.30% 1.60% 1.60% 04/30 EU Eurostat CPI Estimate YoY April 0.70% 0.80% 0.50% 04/30 EU Eurostat CPI Core YoY April 1.00% 1.00% 0.70% 04/30 France INSEE Consumer Spending YoY March -1.20% -0.40% -0.60% 04/30 France INSEE Consumer Spending MoM March 0.40% 0.30% -0.10% 04/30 France INSEE PPI YoY March -2.00% -1.70% -1.60% 04/30 France INSEE PPI MoM March -0.40% -0.10% -0.10% 04/30 Germany Destatis Retail Sales MoM March -0.70% -0.70% 0.40% 04/30 Germany Destatis Retail Sales YoY March -1.90% 1.70% 1.90% 04/30 Germany Deutsche Bundesbank Unemployment Change (000's) April -25K -10K -14K 04/30 Germany Deutsche Bundesbank Unemployment Rate April 6.70% 6.70% 6.70% 04/30 UK GfK NOP (UK) GfK Consumer Confidence April -3.0 -4.0 -5.0 04/30 Spain INE GDP QoQ 1Q2014 0.40% 0.40% 0.20% 04/30 Spain INE GDP YoY 1Q2014 0.60% 0.50% -0.20% 04/30 Spain INE Retail Sales YoY March 0.60% – -0.30% 04/30 Spain INE Retail Sales SA YoY March -0.50% – -0.40% 04/30 Spain INE CPI EU Harmonised YoY April 0.30% 0.30% -0.20% Overall Activity Buy %* Sell %* Net (QR) Qatari 68.50% 66.43% 22,822,225.94 Non-Qatari 31.51% 33.56% (22,822,225.94)
  • 3. Page 3 of 6 04/30 Spain INE CPI YoY April 0.40% 0.40% -0.10% 04/30 Italy ISTAT Unemployment Rate March 12.70% 13.00% 12.70% 04/30 Italy ISTAT CPI NIC incl. tobacco MoM April 0.20% 0.10% 0.10% 04/30 Italy ISTAT CPI NIC incl. tobacco YoY April 0.60% 0.50% 0.40% 04/30 Italy ISTAT PPI MoM March -0.20% – 0.00% 04/30 Italy ISTAT PPI YoY Mar -1.90% – -1.70% 04/30 Japan METI Industrial Production MoM March 0.30% 0.50% -2.30% 04/30 Japan METI Industrial Production YoY March 7.00% 7.20% 7.00% 04/30 Japan MLIT Housing Starts YoY March -2.90% -2.70% 1.00% 04/30 Japan MLIT Annualized Housing Starts March 0.895M 0.894M 0.919M 04/30 Japan MLIT Construction Orders YoY March -8.80% – 12.30% 04/30 Japan Shoko Chukin Bank Small Business Confidence April 45.4 – 53.5 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  ORDS reports QR887mn net profit in 1Q2014, up 73.9% QoQ – Ooredoo (ORDS) reported a net profit of QR886.6mn in 1Q2014, up 73.9% on a QoQ basis (+9.7% YoY), supported by an “other income” of QR395.8mn during the quarter. Other income was mainly driven by positive FX trends in Indonesia and sale of 5% stake in TBIG tower business leading to a gain of QR131.8mn. The revenue decreased by 1.2% QoQ to QR8,102.6mn in 1Q2014. On a YoY basis revenue fell by 3.4% due to the challenging operating environment and depreciation of the Indonesian Rupiah compared to 1Q2013, which was partially offset by strong growth in data revenue. EPS amounted to QR2.77 in 1Q2014 versus QR2.52 in 1Q2013. ORDS’ customer base increase by 6.3% YoY to 96.7mn in the 1Q2014. Robust results were seen in Ooredoo operations in Qatar, Oman and Algeria during the quarter. (ORDS Press release, Gulf- Base.com)  MRDS reports QR22.3mn net profit in 1Q2014 – Mazaya Qatar Real Estate Development Company (MRDS) posted a net profit of QR22.3mn in 1Q2014 vs. QR2mn for the corresponding period in 2013. EPS amounted to QR0.22 vs. QR0.02 in 1Q2013. (QE)  NLCS reports QR21.4mn net profit in 1Q2014 – Alijarah Holding Company (NLCS) posted a net profit of QR21.4mn vs. QR46mn for the corresponding period in 2013. EPS amounted to QR0.43 vs. QR 0.93 of the same period in 2013. (QE)  HIA welcomes first passengers – Qatar’s $15bn iconic Hamad International Airport (HIA) welcomed passengers in a soft opening, marking a new era in the country’s aviation history. A Qatar Airways (QA) A320 aircraft was the first to land on the east runway, carrying HE the Minister of Transport Jassim Seif Ahmed al-Sulaiti, Qatar Civil Aviation Authority Chairman Abdul Aziz Mohamed al-Noaimi, QA CEO Akbar al-Baker and other dignitaries. Following the soft launch, around 10 airlines have moved their operations to Hamad International Airport. (Gulf- Times.com)  QE industrials see earnings slowdown due to IQCD maintenance – The industrials sector witnessed considerable slowdown in its earnings in 1Q2014, even as stock market investors pin hope on the sector’s prospects in view of Qatar’s increasing reliance on non-hydrocarbon segments. The listed companies in the Qatar Exchange (QE) under the industrials segment saw their cumulative net profit plunge 22% to QR2.54bn in 1Q2014 against a 24% YoY growth experienced in 1Q2013. The industrials group (excluding the newly listed Mesaieed Petrochemical Holding Company) has reported a cumulative net profit of QR2.54bn compared to QR3.24bn in the previous year period. (Gulf-Times.com)  Al Mirqab offers £924mn to acquire Heritage Oil – British oil company Heritage Oil agreed for a £924mn takeover offer from Al Mirqab Capital, a Qatari private investment fund. Heritage, whose main oil production is in Nigeria, said that it was recommending a cash offer of 320 pence per share, which represented a 25% premium to its closing price the day before the approach was announced. (Gulf-Times.com)  QCB to issue T-bills worth QR4bn – The Qatar Central Bank (QCB) will issue three-month duration treasury bills worth QR2bn, and six-month and nine-month bills worth QR1bn each. All the bills will be issued on May 6, 2014. (QCB)  QDREIC starts work on luxury resort in Malaysia – Qatari Diar Real Estate Investment Company (QDREIC) has started work on the brand new development of a luxury beachside resort in Malaysia. Located in Chendering village in the Sultanate of Terengganu, the resort is being developed on a land stretching 180,420 square meters. Construction on the resort has commenced and it is expected to open in early 2016. (GulfBase.com)  Ashghal opens Al Wajbah underpass – The Public Works Authority (Ashghal) has announced the completion of the new Al Wajbah underpass, which is a part of the newly constructed Al Wajbah interchange of the Dukhan Highway Central expressway project. Two lanes in each direction will be opened through the Al Wajbah underpass to allow traffic coming from Dukhan to travel toward Doha in one direction and from Bani Hajer roundabout toward Dukhan on the other. (Gulf-Times.com) International  Fed to keep trimming stimulus as economy shakes off stall – The Federal Reserve said it will keep trimming the pace of its asset purchases as the US economy shakes off the winter doldrums, putting the central bank on a course to end the unprecedented stimulus program by the end of 2014. The Federal Open Market Committee stated that growth has picked up recently and household spending appears to be rising more quickly, following a government report that showed GDP barely grew in the first quarter. The committee pared its monthly asset buying to $45bn, the fourth straight $10bn cut, and said further reductions in measured steps are likely. At that pace, the quantitative easing program intended to push down borrowing costs for companies and consumers would end in December 2014. (Bloomberg)  Eurozone inflation edges up, swift ECB action seen less likely – Inflation in the Eurozone rose in April 2014, reducing
  • 4. Page 4 of 6 chances for the European Central Bank (ECB) to act soon to ward off deflation, but the pace of price rise was still within the ECB's danger zone of under 1%. The EU statistics office Eurostat said annual consumer inflation in the 18 countries sharing the Euro nudged higher to 0.7% in April from March's 0.5%, which was the lowest since late 2009. The reading was lower than the 0.8% predicted in a Reuters poll despite higher spending over the Easter period, reflecting the poor state of the Eurozone economy after a long recession and with unemployment at near-record levels. Faced with inflation running far below target, the ECB has opened the door to money printing with quantitative easing to boost the Eurozone economy, which is growing at a slower rate than much of the rest of the world. (Reuters)  Ukraine gets IMF approval for $17bn loan amid unrest – The IMF approved a $17bn loan to Ukraine with an immediate disbursement of $3.2bn to help the country pay its debts as separatist unrest threatens to split the nation’s east. IMF Managing Director Christine Lagarde said this program does have risks, citing geopolitical tension and potential difficulty in following through on loan conditions. After twice freezing loans to Ukraine since 2008, the fund is banking on the interim government’s resolve to tackle unpopular measures such as the phasing out of natural-gas subsidies. IMF’s approval clears the way for additional aid from the European Union and the US just as they widen sanctions against Russia for its actions in Ukraine. (Bloomberg)  BoJ inflation confidence cuts chances of stimulus – The confidence displayed by the Bank of Japan (BoJ) officials in achieving their inflation target is lowering the chances of additional monetary easing this year even as the economy weakens. According to the median estimates of BoJ’s board members, consumer prices, excluding fresh food, will increase 1.9% in the fiscal year starting April 1, 2015, and 2.1% the next year. BoJ Governor Haruhiko Kuroda said the timing on reaching BoJ’s 2% goal has not been pushed back at all. The central bank’s predictions raise the stakes for Kuroda if the economy fails to pick up in the second half of the year. (Bloomberg)  China set to overtake US as biggest economy in PPP measure – China is poised to overtake the US as the world’s biggest economy earlier than expected, using calculations that take purchasing power into account. The International Comparison Program said China’s economy was 87% of the size of the US in 2011, based on purchasing power parity (PPP). The program had earlier put the figure at 43% in 2005. The latest tally adds to the debate on how the world’s top two economic powers are progressing. According to Arvind Subramanian of the Peterson Institute for International Economics, projecting growth rates from 2011 onward suggests China’s size when measured in PPP may surpass the US in 2014, which would be years earlier than many economists had previously estimated. Subramanian said the latest data plays to the idea that China is very big and getting bigger and it is not to be underestimated. (Bloomberg) Regional  Reuters: OPEC output rises in April – The OPEC’s oil output has risen in April 2014 from the three-month low seen in March 2014, though African outages and sabotage in Iraq are still keeping supply far below the group’s target. According to a Reuters survey based on shipping data and information from sources at oil companies, supply from the OPEC averaged 29.68mn bpd in April, up from a revised 29.52mn bpd in March. The largest rise in April came from Saudi Arabia, which boosted supply because of a higher need for crude oil in domestic power plants. According to sources, the rise was limited by seasonally low demand outside the Kingdom. (Bloomberg)  IOB, BIBF to boost ties – The Saudi Institute of Banking (IOB) and the Bahrain Institute of Banking & Finance (BIBF) have signed a MoU to bolster ties. The aim is to develop quality joint initiatives to serve and further advance the banking & financial services sector in the region. The planned joint initiatives include sharing expertise, training programs, conducting research and events, as well as launching globally accredited professional certifications to develop professionals within the industry. (GulfBase.com)  Maaden selects Schneider Electric to supply low-voltage gears – The Saudi Arabian Mining Company (Maaden) has signed a contract with Schneider Electric to supply low-voltage switchgear. Under the contract, Schneider Electric will also manage & maintain electrical distribution system for Maaden’s Umm Wu'al phosphate project in northern region of Saudi Arabia. The alliance will strengthen relationship between France and Saudi Arabia and may open new areas of potential cooperation in mining industries between two countries. (GulfBase.com)  Saudi Qudurat, Spanish Como forms JV to supply materials – Saudi Qudurat Holding for Development and Spanish Como Company have entered into an agreement to form a new JV company called ‘Como Arabia’, specialized in supplying logistics and operational services for mega projects. The projects include railway, water, energy, power generation, mining and offshore platform projects in remote areas and other infrastructure projects in GCC countries. Qudurat Holding owns 51% of the new JV, while Spanish Como holds 49% ownership. The new company has won the logistics and operation contract for Al- Haramain Rail project in Makkah and Madinah. The SR6bn project was initiated in 2009 and is expected to partly go into operation by 2015. (GulfBase.com)  EECT signs LoI with SABIC for study of Ener-Core Powerstation – EECT-Turbomachinery (EECT) has signed a Letter of Intent (LoI) with Saudi Basic Industries Corporation (SABIC) for the prospected purchase of an Ener-Core Powerstation. It is the Netherlands-based polymers production subsidiary plant of SABIC. (GulfBase.com)  SASCO declares SR33.75mn dividend – Saudi Automotive Services Company’s (SASCO) AGM has approved the board’s recommendation for the distribution of 7.5% cash dividend (SR0.75 per share), amounting to SR33.75mn for FY2013. (Tadawul)  Saudi CMA approves Herfy’s capital increase – The Saudi CMA has approved Herfy Food Services Company’s (Herfy) request to increase its capital from SR330mn to SR462mn by issuing 2 bonus shares for every 5 existing shares. This increase will be paid by transferring SR132mn from the retained earnings account to the company’s capital. Consequently, the company's outstanding shares will increase from 33mn to 46.2mn shares. The bonus shares’ eligibility is limited to those shareholders who are registered at the close of trading on the day of the extraordinary general assembly, which will be determined later. (Tadawul)  Mobily seeks 20% stake in landline firm Atheeb – The Kingdom's No.2 mobile operator Etihad Etisalat (Mobily) is in talks to acquire 20% stake in Etihad Atheeb Telecommunications through a rights issue in the loss-making telecom operator. Mobily, through its wholly-owned subsidiary Bayanat al-Oula, signed a MoU in August 2013 with four of
  • 5. Page 5 of 6 Atheeb's founding shareholders to buy a controlling interest in the firm. A recent statement indicates Bayanat is now seeking only a minority holding with management rights of Atheeb, whose shares fell 9.8% to a seven-week low after the statement was released. Terms are still under discussion, but the parties have proposed that Atheeb reduce its capital by cancelling some shares. This would allow it to write off up to 100% of accumulated losses, which totaled QR851.6mn at the end of 2013. (Peninsula Qatar)  Etihad still open to Alitalia talks – According to sources, Abu Dhabi-based Etihad Airways has signaled that it is ready to continue talks on a potential investment in Italy's troubled Alitalia, but it refuses to budge on tough conditions on debt restructuring and job cuts. Loss-making Alitalia was kept afloat by a government-engineered $691mn rescue package last year, but it needs to find a cash-rich partner quickly to revamp its flight network or risk grounding its planes. Sources have said that Etihad could invest $691mn in return for a 49% stake, but talks reached a stalemate earlier this month when the Italian carrier raised concerns over the Gulf airline's terms. (Reuters)  Mashreq posts 35% rise in 1Q2014 profit – Mashreq Bank’s net profit has increased by 35% to AED575mn in 1Q2014. The bank’s total assets increased by 4.9% to reach AED94.1bn in March 2014 as compared to AED89.7bn at the end of December 2013. Loans & advances grew by 5.6% during 1Q2014 to reach AED53.3bn as compared to AED50.4bn at December 2013. (Bloomberg)  Arabtec to list building unit in Abu Dhabi bourse – Dubai- based contractor Arabtec Holding’s Group CEO, Hasan Ismaik said that the company is planning to list a portion of its construction unit in an IPO on the Abu Dhabi bourse in 2015. The plan is to float about 40% of the company's construction subsidiary, which is valued at AED10bn. (GulfBase.com)  Mubadala said to reject bids from GDF, Veolia for unit – According to sources, Mubadala Development has rejected bids from GDF Suez and Veolia Environnement for its cooling business in favor of National Central Cooling (Tabreed). Mubadala may complete a sale for about $300mn. The sale to Tabreed could be concluded within the next three weeks. (GulfBase.com)  NBAD appoints group CFO – The National Bank of Abu Dhabi (NBAD) has appointed James Burdett as its new Group Chief Financial Officer (CFO). Burdett joins NBAD from Australia & New Zealand Banking Group (ANZ), where he served as the CFO of International & Institutional Banking division. (GulfBase.com)  UNB declares 15% cash dividend, 5% bonus shares – Union National Bank’s (UNB) AGM has approved its board of directors’ recommendation for distributing 15% cash dividend and 5% bonus shares for FY2013. (GulfBase.com)  Bank of Sharjah's net profit rises 13% in 1Q2014 – The Bank of Sharjah’s net profit for 1Q2014 has increased by 13% to reach AED79mn compared with AED70mn for 1Q2013. However, net interest income declined by 12% as compared to 1Q2013. EPS amounted to 3.4fils as compared to 2.7fils in 2013. Total assets reached AED24.5bn, an increase of 5% over AED23.3bn as of March 31, 2013. Loans & advances reached AED13.4bn, 6% above AED12.7bn as of March 31, 2013. Customer deposits declined by 3% from AED18.4bn in December 2013 to AED17.8bn as of March 31, 2014. (Bloomberg)  Kuwaiti CMA extends corporate governance deadline – Kuwait's market watchdog has extended a year-end deadline for listed companies to comply with new corporate governance rules by 18 months after realizing that some firms would struggle to be ready on time. In June 2013, the Kuwaiti Capital Markets Authority (CMA) had issued the regulations and originally stipulated them to be implemented by the end of 2014. However, now it has given companies time until the end of June 2016 to implement them. The rules cover separation of the positions of the chairman and the chief executive, prompt disclosure of information to the market, and establishing internal controls and risk management. (Peninsula Qatar)  Orpic inks $2.8bn loan deal with financial consortium – Oman Oil Refineries & Petroleum Industries Company (Orpic) signed a $2.8bn loan agreement with a consortium of 21 international and national financial institutions for its projects including the Sohar Refinery Improvement Project, which will be 65% debt financed. These loan agreements were signed by Orpic’s Chairman Dr Mohammed bin Hamad Al Rumhy, and the CEO Musab Abdullah Al Mahruqi. (Bloomberg)  Renaissance divests UMS to Muscat Overseas – Renaissance Services has entered into a binding agreement to sell its wholly owned subsidiary, United Media Services (UMS) to Muscat Overseas Group, a diversified business company. This transaction enables Renaissance to focus on its two core businesses: the Topaz Offshore Support Vessel Fleet and the Renaissance Contract Services and Facilities Management Group. The divestment is effective from March 31, 2014. (GulfBase.com)  Nasdaq OMX, ACX sign MoU to establish network of exchanges – Nasdaq OMX and the Arab Common Exchange Holding (ACX) have signed a MoU for a long-term strategic partnership to establish a pan-Arab network of exchanges owned and run by the private sector. The MoU will create an initial taskforce to layout the framework of the partnership, which will lead to establishing a full-fledged exchange in Bahrain. (GulfBase.com)  Al Sawadi, Al Batinah to raise OMR62.5mn – The Omani Capital Market Authority (Omani CMA) has approved the prospectus of Al Sawadi Power Company and Al Batinah Power Company to raise a total capital of OMR62.5mn through public subscription during May 11 to June 9, 2014. The prospectus indicated that the amount of capital raised to subscribe to Al Sawadi Power Company is OMR32.5mn divided by 250mn shares, with an offering price of OMR0.13. The amount of capital raised from the Al Batinah Power Company is OMR30mn spread over 236mn shares, with an offering price of OMR0.128. (GulfBase.com)  AMIC’s EGM approves capital increase – Al Madina Takaful’s (AMIC) EGM has approved to increase its capital from OMR16.66mn to OMR17.5mn. This will be executed by transferring an amount of OMR0.833mn from the share premiums to the company’s capital. (MSM)  Durrat Marina, Maaster PMS sign sales deal – Durrat Marina Development has signed a sales & development agreement with Maaster Project Management Services (PMS). The agreement is for two seafront residential plots totaling an area of 3,653 square meters. Under the project’s phase one, two six-storey residential buildings are to be built on the land. Work on these buildings is expected to start within the next three months. (GulfBase.com)
  • 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 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 0.2% 0.4% (0.0%) 0.1% (0.2%) (0.5%) (0.5%) (0.8%) (0.4%) 0.0% 0.4% 0.8% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,291.55 (0.3) (0.9) 7.1 DJ Industrial 16,580.84 0.3 1.3 0.0 Silver/Ounce 19.20 (1.3) (2.5) (1.4) S&P 500 1,883.95 0.3 1.1 1.9 Crude Oil (Brent)/Barrel (FM Future) 108.07 (0.8) (1.4) (2.5) NASDAQ 100 4,114.56 0.3 1.0 (1.5) Natural Gas (Henry Hub)/MMBtu 4.78 (0.9) 1.7 10.1 STOXX 600 337.89 (0.1) 1.3 2.9 LPG Propane (Arab Gulf)/Ton 109.00 (0.8) (1.7) (13.8) DAX 9,603.23 0.2 2.1 0.5 LPG Butane (Arab Gulf)/Ton 124.13 (0.9) (0.8) (8.6) FTSE 100 6,780.03 0.1 1.4 0.5 Euro 1.39 0.4 0.2 0.9 CAC 40 4,487.39 (0.2) 1.0 4.5 Yen 102.24 (0.4) 0.1 (2.9) Nikkei 14,304.11 0.1 (0.9) (12.2) GBP 1.69 0.3 0.4 1.9 MSCI EM 995.28 (0.5) 0.2 (0.7) CHF 1.14 0.4 0.1 1.4 SHANGHAI SE Composite 2,026.36 0.3 (0.5) (4.2) AUD 0.93 0.2 0.1 4.1 HANG SENG 22,133.97 (1.4) (0.4) (5.0) USD Index 79.47 (0.4) (0.3) (0.7) BSE SENSEX 22,417.80 (0.2) (1.2) 5.9 RUB 35.66 0.0 (1.0) 8.5 Bovespa 51,626.69 (0.4) 0.4 0.2 BRL 0.45 0.2 0.6 6.1 RTS 1,155.70 0.2 3.2 (19.9) 182.2 151.7 138.6