17 June Technical Market Report


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17 June Technical Market Report

  1. 1. Page 1 of 5QE Intra-Day MovementQatar CommentaryThe QE index gained 0.1% to close at 9,429.7. The Real Estate index rose1.4%, while the Banking & Financial Services index gained marginally. Topgainers were United Development Co. and National Leasing, rising 1.9% and1.7% respectively. Among the top losers, Al Ahli Bank fell 1.4%, while QatarInsurance Co. declined 0.9%.GCC CommentarySaudi Arabia: The TASI index gained 1.8% to close at 7,463.4. Gains wereled by the Insurance and Real Estate Development indices, rising 3.6% and3.2% respectively. Saudi United Cooperative Insurance Co. and TabukAgriculture Development Co. rose 9.8% each.Dubai: The DFM index rose 1.6% to close at 2,382.8. The Real Estate &Construction index gained 2.3%, while the Services index was up 2.1%.Ekttitab Holding Co. rose 9.4%, while Al Salam Bank-Bahrain was up 6.8%.Abu Dhabi: The ADX benchmark index gained 0.4% to close at 3,643.2. TheReal Estate index rose 2.2%, while the Consumer index was up 0.8%. MethaqTakaful Insurance Co. gained 13.6%, while National Marine Dredging Co. wasup 10.9%.Kuwait: The KSE index rose 1.6% to close at 8,080.6. Gains were led by theFinancial Services and Oil & Gas indices, gaining 2.6% and 2.3% respectively.Al Qurain Holding Co. rose 9.6%, while Pearl of Kuwait Real Estate Co. wasup 9.4%.Oman: The MSM index gained 0.4% to close at 6,509.9. The Banking &Investment index rose 0.8%, while the Industrial index was up 0.7%. AlHassan Engineering gained 4.0%, while Oman Refreshment was up 2.9%.Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%United Development Co. 24.55 1.9 4,363.1 37.9National Leasing 39.05 1.7 612.9 (13.6)Al Khaleej Takaful Group 45.40 1.6 3.6 23.8Barwa Real Estate Co. 27.65 1.1 1,014.1 0.7Islamic Holding Group 38.90 0.8 22.0 2.4Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%United Development Co. 24.55 1.9 4,363.1 37.9Barwa Real Estate Co. 27.65 1.1 1,014.1 0.7Qatar Gas Transport Co. 18.36 (0.8) 1,005.8 20.3Masraf Al Rayan 27.30 (0.2) 903.0 10.1Dlala Brok. & Inv. Holding Co. 29.00 0.3 716.9 (6.7)Market Indicators 17 June 13 16 June 13 %Chg.Value Traded (QR mn) 402.2 440.9 (8.8)Exch. Market Cap. (QR mn) 517,508.2 517,552.9 (0.0)Volume (mn) 11.2 12.2 (7.9)Number of Transactions 4,108 5,317 (22.7)Companies Traded 39 37 5.4Market Breadth 23:14 8:28 –Market Indices Close 1D% WTD% YTD% TTM P/ETotal Return 13,472.88 0.1 (0.5) 19.1 N/AAll Share Index 2,384.50 (0.0) (0.5) 18.4 13.0Banks 2,230.68 0.0 (0.5) 14.4 12.0Industrials 3,182.74 (0.1) (0.8) 21.2 11.8Transportation 1,699.81 (0.2) (0.8) 26.8 12.0Real Estate 1,939.64 1.4 0.5 20.3 12.4Insurance 2,304.45 (0.6) (1.1) 17.4 15.1Telecoms 1,306.82 (0.5) (0.7) 22.7 14.9Consumer 5,593.05 (0.1) 0.3 19.8 22.8Al Rayan Islamic Index 2,872.85 0.4 (0.5) 15.5 14.3GCC Top Gainers##Exchange Close#1D% Vol. ‘000 YTD%Makkah Cons. & Dev. Saudi Arabia 70.25 8.1 1,101.1 73.0Arabian Cement Saudi Arabia 67.00 4.3 210.8 34.0ZAIN KSA Saudi Arabia 10.00 4.2 37,352.0 26.6Arabtec Holding Co. Dubai 2.12 3.9 46,196.9 14.0Solidarity Saudi Takaful Saudi Arabia 26.00 3.6 892.8 (29.5)GCC Top Losers##Exchange Close#1D% Vol. ‘000 YTD%Gulf Pharma. Industry Abu Dhabi 3.01 (5.0) 153.0 9.5Kuwait Foods Co. Kuwait 2.14 (4.5) 10.0 23.0Mobile Telecomm. Co. Kuwait 0.67 (2.9) 2,784.4 (14.1)DP World Ltd. Dubai 15.86 (2.1) 164.0 35.6Gulf Cable & Electrical Kuwait 1.00 (2.0) 119.3 (20.6)Source: Bloomberg (#in Local Currency) (##GCC Top gainers/losers derived from the Bloomberg GCC200 Index comprising of the top 200 regional equities based on market capitalization and liquidity)Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD%Al Ahli Bank 56.00 (1.4) 1.0 14.3Qatar Insurance Co. 63.00 (0.9) 16.1 16.8Qatar Gas Transport Co. 18.36 (0.8) 1,005.8 20.3Qatar Telecom 124.00 (0.6) 81.0 19.2Gulf International Services 45.55 (0.5) 96.3 51.8Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%United Development Co. 24.55 1.9 106,461.6 37.9Industries Qatar 164.00 (0.3) 48,850.7 16.3Barwa Real Estate Co. 27.65 1.1 28,076.5 0.7Masraf Al Rayan 27.30 (0.2) 24,743.3 10.1QNB Group 153.90 (0.1) 24,111.7 17.6Source: Bloomberg (* in QR)Regional Indices Close 1D% WTD% MTD% YTD%Exch. Val. Traded($ mn)Exchange Mkt.Cap. ($ mn)P/E** P/B**DividendYieldQatar* 9,429.70 0.1 (0.5) 2.1 12.8 110.44 142,107.7 12.0 1.7 4.9Dubai 2,382.81 1.6 (0.7) 0.7 46.9 129.05 61,275.8 15.3 1.0 3.5Abu Dhabi 3,643.24 0.4 (0.5) 2.3 38.5 92.30 104,793.0 11.1 1.3 4.8Saudi Arabia 7,463.37 1.8 (2.1) 0.8 9.7 1,741.25 398,592.2 15.9 1.9 3.7Kuwait 8,080.55 1.6 1.9 (2.6) 36.2 332.90 108,806.9 25.4 1.4 3.3Oman 6,509.94 0.4 (0.7) 1.4 13.0 30.87 22,773.5 11.1 1.7 4.3Bahrain 1,205.59 0.6 0.6 0.8 13.1 2.92 21,394.3 8.8 0.9 4.0Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)9,4009,4109,4209,4309,4409:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 5Qatar Market Commentary The QE index gained 0.1% to close at 9,429.7. The Real Estateand Banking & Financial Services indices led the gains. Theindex rose on the back of buying support from Qatarishareholders despite selling pressure from non-Qatarishareholders. United Development Co. and National Leasing were the topgainers, rising 1.9% and 1.7% respectively. Among the toplosers, Al Ahli Bank fell 1.4%, while Qatar Insurance Co.declined 0.9%. Volume of shares traded on Monday declined by 7.9% to 11.2mnfrom 12.2mn on Sunday. Further, as compared to the 30-daymoving average of 12.3mn, volume for the day was 9.1% lower.United Development Co. and Barwa Real Estate Co. were themost active stocks, contributing 38.9% and 9.0% to the totalvolume respectively.Source: Qatar Exchange (* as a % of traded value)Ratings, Earnings and Global Economic DataRatings UpdatesCompany Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook ChangeSaudi InvestmentBank (SAIB)CISaudiArabiaFSR/ LT FCR/ ST FCR/Support levelA-/A/A2/2 A-/A/A2/2 – Positive Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, ICR – Issuer Credit Rating, SR – Support Rating)Global Economic DataDate Market Source Indicator Period Actual Consensus Previous06/17 US NAHB NAHB Housing Market Index June 52.0 45.0 44.006/17 EU Eurostat Euro-Zone Trade Balance (€) April 14.9bn – 22.5bn06/17 EU Eurostat Euro-Zone Labour Costs (YoY) 1Q2013 1.60% – 1.30%06/17 UK Rightmove Rightmove House Prices (MoM) June 1.20% – 2.10%06/17 UK Rightmove Rightmove House Prices (YoY) June 2.70% – 2.50%06/17 JapanMinistry of EconomyTrade & IndustryTertiary Industry Index (MoM) April 0.00% 0.20% -0.20%Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)NewsQatar Qatar Holding sells back 10% Porsche stake to foundingfamilies – Qatar Holding has sold its 10% stake in the luxurycarmaker, Porsche back to the family shareholders, four yearsafter it first invested in the firm. Qatar Holding said it has soldthe common shares in the automaker to the founding families ofPorsche and Piech. Legal advisor White & Case advised QatarHolding on the stake sale. (Reuters) Qatar Foundation completes 5% stake buy from BhartiAirtel – Qatar Foundation Endowment has completed thepurchase of 199.9mn new equity shares in Bharti Airtel,representing 5% equity stake in the India-based telecomoperator. (Bloomberg) Qatar plans to establish industrial area for SMEs –According to sources, Qatar is planning to establish a newindustrial area for small & medium enterprises‎‎(SMEs) and‎export activities. The move is part of an initiative to supportSMEs with the objective of developing domestic industries andprovide facilities for commercial activities and businessinitiatives. (Gulf-Times.com) Qatar Solar Technologies to acquire 30% stake inSolarworld – Qatar Solar Technologies will reportedly helpGermany-based Solarworld in its restructuring process byacquiring a 30% stake in the company. (Bloomberg) Ooredoo to spend QR1bn on nationwide fiber connectionby 2014 – Ooredoo’s (formerly QTEL) COO Waleed al Sayedsaid the company is planning to spend QR1bn to ensure that allhouseholds in Qatar are connected to a nationwide fiber opticnetwork by the end of 2014. He also said that Ooredoo is set tolaunch its “Business Fibre” by 3Q2013, which is an ultra-fastfiber optic network targeting businesses in Qatar and SMEs inparticular. (Qatar Tribune, Gulf-Times.com) QA buys 9 Boeing 777-300ER, awards MRO contract to UTCAerospace – Qatar Airways (QA) has signed an agreement tobuy up to nine Boeing 777-300ER aircraft valued at $2.8bn. QACEO Akbar Al-Baker said two of the aircraft placed on firm orderwill be delivered in early 2014. He added that options for theother seven are likely to be confirmed shortly after, and thedelivery schedule will be decided then. Meanwhile, QA hasappointed UTC Aerospace Systems to provide a comprehensivesuite of maintenance, repair & overhaul (MRO) services forselect Airbus aircraft operated by QA. (Reuters) (AME Info)International IMF approves $1.27bn disbursement to Ireland – The IMFsboard approved the 10thdisbursal of about $1.27bn in loan forIreland, bringing the total funds that Ireland has received to$27.79bn so far. The IMF said Ireland is well on track with theconditions of its bailout program. The fund said Irelandseconomy grew modestly in 2012 for the second year in a rowand employment during 1Q2013 was up 1% YoY. The country isOverall Activity Buy %* Sell %* Net (QR)Qatari 72.17% 68.37% 15,297,993.57Non-Qatari 27.83% 31.63% (15,297,993.57)
  3. 3. Page 3 of 5stipulated to meet conditions attached to the loan to get eachsubsequent disbursement. (Reuters) Moodys: Portugal fiscal goals in reach, economystabilizing – Rating agency Moodys said Portugal should beable to reach its recently eased fiscal targets for 2013-14 underan EU/IMF bailout as its recession-ravaged economy is likely tostabilize in the coming months. Moodys also said last weeksapproval by the IMF of a new tranche of Portugal’s bailout wascredit-positive as it put the program back on track after a delay.(Bloomberg) RBI leaves rates unchanged, warns of inflation risks asrupee sags – The Reserve Bank of India kept its interest ratesunchanged as expected by markets, after reducing them in eachof its previous three policy reviews. The RBI warned of upwardrisks to inflation since the Indian rupee is among the hardest hitamid a sell-off among global emerging markets. The RBI saidraising food prices and a falling currency pose inflationary risks,and has called for vigilance over global economic uncertainty,citing the risks of a reversal of capital flows such as the one inrecent weeks. (Reuters)Regional Sadara signs financing for $19.3bn Saudi petchem project –Sadara Chemical Company a JV between Saudi Aramco andDow Chemical, has signed loan facilities to support theconstruction of a $19.3bn petrochemical complex. Loanagreements worth $10.5bn were signed with local and foreignbanks, Export Development Bank Canada, Islamic DevelopmentBank, the Saudi Public Investment Fund and export creditagencies. The loans will run until June 30, 2025, with the firstdrawdown of funds expected in 3Q2013. Added to a SR7.5bnsukuk sold at the beginning of April, the total financing packagefor the plant totaled SR46.88bn. A $4 billion-equivalent seniordebt package was provided by 33 international banks andvarious local banks, export credit agencies and Islamicinstitutions, according to one banking source on the deal. Of the$4bn, the $1.1bn international portion was backed by 17 banks:JP Morgan, HSBC, Mizuho, SMBC, Standard Chartered,Apicorp, BTMU, Barclays, BNP, Citigroup, Credit Agricole,Goldman Sachs, National Bank of Kuwait (NBK), National Bankof Abu Dhabi (NBAD), QNB Group, Abu Dhabi CommercialBank (ADCB) and Export Development Canada. (Reuters) SPA, KAAP plans to spend SR3.4bn on port development –The Saudi Ports Authority (SPA) and King Abdul Aziz Port(KAAP) are planning to spend SR3.4bn on port development inthe Kingdom. Among the developments are: a power plant thatwill be constructed at King Abdul Aziz Port in Dammam, a newcontainer terminal in Dheba Port and two other ports to beconstructed at King Fahd Industrial Port in Jubail.(GulfBase.com) NCC gets $98mn Musandam power transmission contract –The National Contracting Company (NCC), a Saudi Arabianpower contractor has been awarded a contract worth $98mn tobuild the first major power transmission line in Musandamgovernorate. (GulfBase.com) Zain Saudi, Ericsson sign field operations agreement – TheSaudi Mobile Telecommunications Company (Zain Saudi) hassigned a three-year managed field-services agreement withEricsson. Ericsson will be responsible for the field operationsand maintenance of all Zain Saudi’s 2, 3 and 4G radio networksites across the Kingdom. (GulfBase.com) Al Rabie gets milk, juices contract from MoE – Al RabieSaudi Foods Company has obtained two contracts to supplyjuices & milk to the school canteens of the Ministry of Education(MoE) in Riyadh, Jeddah and the Eastern Province.(GulfBase.com) UAE revives DFM and ADX merger proposal – According tosources, the UAE has revived a proposal to merge its two mainstock exchanges the Dubai Financial Market (DFM) and the AbuDhabi Securities Exchange (ADX) in a state-backed deal. Thismerger could boost trade in the local market and attract moreforeign investment to the Gulf state. (Reuters) DDF reports AED2.7bn sales for first five months – TheDubai Duty Free (DDF) has reported sales worth AED2.7bn forthe first five months of 2013. DDF has predicted annual salesvalued around AED11bn over the next few years with DubaiInternational Airport’s with capacity increasing to 95mnpassengers. (GulfBase.com) Aldar awards AED4bn contract to Arabtec-led JV inKazakhstan – Aldar Properties has awarded a contract worthAED4bn to an Arabtec-led JV for the development of Abu DhabiPlaza in Astana, Kazakhstan. The consortium of Arabtec andConsolidated Contractors Group will build the Abu Dhabi Plazain Astana, which is a 500,000 square meter mixed developmentcomprising five towers. This development contract is expectedto be completed in 2017. (DFM) DSI may consider dual listing in Kingdom – Dubai-basedcontractor Drake & Scull International’s (DSI) CEO KhaldounTabari said the company may consider an additional listing of itsshares on Saudi Arabias Tadawul bourse, although the firmdoes not have any imminent plans for it. Meanwhile, thecompany has also said it is moving hundreds of jobs from Dubai,where the company is listed, to Abu Dhabi to cope with theincrease in projects it has won. (Reuters) Etihad mulls equity stake in JAT Airways – Etihad Airwayshas signed a preliminary agreement with the Serbiangovernment over a possible equity investment in the countrysloss-making JAT Airways. (Reuters) SCAD: Changes seen in prices of building materials in AbuDhabi – According to the latest report of Statistics Centre–AbuDhabi (SCAD), the “building materials” group has seen a changein the average prices in May 2013 compared with April 2013,with increases ranging between 0.1% for the “wood” and 13.5%for “aggregates & sand”. However, declines were recorded forthe “steel” group at 0.2%, and for the “employment” group at12.3%. (AME Info) Masdar, ADFD launches wind farm in Republic ofSeychelles – Abu Dhabis renewable energy company, Masdarand the Abu Dhabi Fund for Development (ADFD) havecommissioned a 6-megawatt, eight-turbine wind farm in theRepublic of Seychelles. (AME Info) MPREI, TDIC sign accord on Phase 1 of Saadiyat BeachResidences – Mubadala Pramerica Real Estate Investors(MPREI) has signed an agreement with the TourismDevelopment & Investment Company (TDIC) for the acquisitionof Phase 1 of Saadiyat Beach Residences. (Bloomberg) JAG gets $90mn loan from NBK, DVB Bank – JazeeraAirways Group (JAG) has obtained a 12-year commercial facilityworth $90mn from the National Bank of Kuwait (NBK) and DVBBank to fund its aircraft purchases. (GulfBase.com) Investcorp buys 38% stake in Al Yusr Industrial Contracting– Bahrain-based Investcorp’s Managing Director Tristan deBoysson said the company has bought a 38% stake in a Saudioil & gas services company, Al Yusr Industrial Contracting
  4. 4. Page 4 of 5Company. In 2013, Investcorp expects to complete anotherthree deals through its $1bn Gulf fund. (Gulf-Times.com) BCCI mulls establishing a bank to fund real estate projects– The Bahrain Chamber of Commerce & Industry’s (BCCI) RealEstate Sector’s Committee Chairman Hassan Kamal said it isimportant to study the possibility of establishing a real estatefinance bank, which aims at helping the stalled real estateprojects and funding them. (Bloomberg) Fitch places BMB Investment Bank on Negative watch –Fitch Ratings has placed BMB Investment Banks long-termissuer default rating (IDR), short-term IDR and viability rating onrating watch Negative. Meanwhile, Fitch has affirmed BMBInvestment Banks support rating at “5” and support rating floorat “NF”. (Reuters) Bahrain’s BHD24mn flyover set for July opening – Bahrain’sWorks Minister Essam Khalaf said the first phase of a BHD24mnflyover project in Bahrain will be up and running in mid-July2013. (GulfBase.com)
  5. 5. ContactsAhmed M. Shehada Keith Whitney Saugata Sarkar Sahbi KasraouiHead of Trading Head of Sales Head of Research Manager - HNWITel: (+974) 4476 6535 Tel: (+974) 4476 6533 Tel: (+974) 4476 6534 Tel: (+974) 4476 6544ahmed.shehada@qnbfs.com.qa keith.whitney@qnbfs.com.qa saugata.sarkar@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qaQNB Financial Services SPCContact Center: (+974) 4476 6666PO Box 24025Doha, 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 QatarFinancial 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 5 of 5Rebased Performance Daily Index PerformanceSource: Bloomberg Source: BloombergSource: Bloomberg Source: Bloomberg80.090.0100.0110.0120.0130.0140.0Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13QE Index S&P Pan Arab S&P GCC1.8%0.1%1.6%0.6%0.4% 0.4%1.6%0.0%0.4%0.8%1.2%1.6%2.0%SaudiArabiaQatarKuwaitBahrainOmanAbuDhabiDubaiAsset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD%Gold 1,385.35 (0.4) (0.4) (17.3) DJ Industrial 15,179.85 0.7 0.7 15.8Silver 21.88 (1.0) (1.0) (27.9) S&P 500 1,639.04 0.8 0.8 14.9Crude Oil (Brent) 106.00 0.0 0.0 (6.1) NASDAQ 100 3,452.13 0.8 0.8 14.3Euro 1.34 0.1 0.1 1.3 DAX 8,215.73 1.1 1.1 7.9Yen 94.51 0.2 0.2 8.9 FTSE 100 6,330.49 0.4 0.4 7.3GBP 1.57 0.1 0.1 (3.3) CAC 40 3,863.66 1.5 1.5 6.1CHF 1.08 (0.2) (0.2) (0.8) Nikkei 13,033.12 2.7 2.7 25.4AUD 0.95 (0.3) (0.3) (8.2) Shanghai 2,156.22 (0.3) (0.3) (5.0)USD Index 80.79 0.1 0.1 1.3 BSE Sensex 19,325.87 0.8 0.8 (0.5)RUB 31.75 0.1 0.1 4.0 Bovespa 49,088.65 (0.5) (0.5) (19.5)BRL 0.46 (1.0) (1.0) (5.5) RTS 1,314.01 1.6 1.6 (13.9)135.5118.8108.0