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1 August Technical Market Report


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1 August Technical Market Report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index gained marginally to close at 9,706.6. Gains were led by the Transportation and Telecoms indices, gaining 1.9% and 0.3% respectively. Top gainers were Doha Bank and Qatar Navigation, rising 3.6% and 2.6% respectively. Among the top losers, Qatar General Ins. & Rein. Co. fell 6.6%, while Qatar German Co. for Med. Dev. declined 5.3%. GCC Commentary Saudi Arabia: The TASI index fell 0.1% to close at 7,910.7. Losses were led by the Real Est. Dev. and Retail indices, falling 1.3% and 1.0% respectively. Alkhaleej Tra. & Edu. fell 5.6%, while North. Region Cement was down 5.2%. Dubai: The DFM index gained 0.2% to close at 2,594.6. The Transportation index rose 2.1%, while the Real Estate & Construction index was up 0.5%. Takaful House gained 4.2%, while Aramex was up 3.9%. Abu Dhabi: The ADX benchmark index rose 2.0% to close at 3,922.5. The Banking index gained 2.8%, while the Industrial index was up 2.7%. Invest Bank rose 5.7%, while Ras Al Khaimah Ceramic Co. was up 4.2%. Kuwait: The KSE index gained 0.2% to close at 8,087.8. The Real Estate index rose 1.4%, while the Telecommunication index was up 1.0%. Sokouk Holding Co. gained 7.9%, while Gulf Glass Manufacturing Co. was up 7.8%. Oman: The MSM index rose 0.2% to close at 6,657.5. Gains were led by the Banking & Inv. and Services & Ins. indices, rising 0.3% and 0.2% respectively. Transgulf Ind. Inv. Holding rose 5.5%, while Port Ser. Corp was up 2.3%. Bahrain: The BHB index gained 0.3% to close at 1,198.7. The Industrial index rose 3.6%, while the Commercial Banking index was down 0.2% and all other sub-indices remained unchanged. Aluminum Bahrain gained 3.6%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Doha Bank 52.50 3.6 752.5 13.2 Qatar Navigation 78.00 2.6 541.3 23.6 Gulf International Services 48.85 2.1 230.9 62.8 United Development Co. 22.88 1.8 1,815.6 28.5 Qatar Gas Transport Co. 18.49 1.6 729.0 21.2 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Barwa Real Estate Co. 25.50 (2.9) 2,012.9 (7.1) United Development Co. 22.88 1.8 1,815.6 28.5 Doha Bank 52.50 3.6 752.5 13.2 Qatar Gas Transport Co. 18.49 1.6 729.0 21.2 Qatar Navigation 78.00 2.6 541.3 23.6 Market Indicators 01 Aug 13 31 July 13 %Chg. Value Traded (QR mn) 433.7 518.4 (16.3) Exch. Market Cap. (QR mn) 531,795.9 533,702.7 (0.4) Volume (mn) 9.8 13.1 (25.0) Number of Transactions 5,130 5,551 (7.6) Companies Traded 40 39 2.6 Market Breadth 18:20 17:17 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 13,868.47 0.0 0.1 22.6 N/A All Share Index 2,443.69 (0.3) (0.1) 21.3 12.9 Banks 2,360.22 (0.5) 1.6 21.1 12.5 Industrials 3,142.42 (0.4) (2.4) 19.6 11.6 Transportation 1,732.06 1.9 1.5 29.2 11.9 Real Estate 1,803.39 (0.8) (4.8) 11.9 14.0 Insurance 2,268.00 (1.9) 1.7 15.5 9.4 Telecoms 1,448.35 0.3 1.3 36.0 15.3 Consumer 5,657.02 (0.8) (1.2) 21.1 23.3 Al Rayan Islamic Index 2,803.54 (0.1) (2.2) 12.7 14.4 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Investbank Abu Dhabi 2.60 5.7 513.7 60.5 First Gulf Bank Abu Dhabi 17.30 4.8 1,234.8 49.1 Aramex Dubai 2.65 3.9 487.1 32.5 Aluminium Bahrain Bahrain 0.57 3.6 130.0 31.9 Doha Bank Qatar 52.50 3.6 752.5 13.2 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% IFA Hotels & Resorts Kuwait 0.69 (6.8) 3.1 56.8 Qatar Gen. Ins. & Rein. Qatar 52.10 (6.6) 19.6 13.3 North. Region Cement Saudi Arabia 23.55 (5.2) 3,948.2 N/A Emaar Economic City Saudi Arabia 11.15 (4.3) 34,116.9 34.3 Knowledge Eco.City Saudi Arabia 15.35 (3.5) 5,293.6 21.8 Source: Bloomberg ( # in Local Currency) ( ## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity) Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD% Qatar General Ins. & Rein. Co. 52.10 (6.6) 19.6 13.3 Qatar German Co. for Med. Dev. 14.91 (5.3) 13.2 0.9 Mannai Corp 84.00 (3.2) 2.3 3.7 Barwa Real Estate Co. 25.50 (2.9) 2,012.9 (7.1) Dlala Brok. & Inv. Holding Co. 20.70 (2.4) 284.5 (33.4) Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% QNB Group 173.50 (2.0) 62,647.6 32.5 Industries Qatar 157.90 (0.6) 51,618.3 12.0 Barwa Real Estate Co. 25.50 (2.9) 50,015.9 (7.1) Qatar Navigation 78.00 2.6 42,228.5 23.6 United Development Co. 22.88 1.8 41,320.8 28.5 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* 9,706.57 0.0 0.1 0.0 16.1 119.09 146,031.2 12.2 1.7 4.8 Dubai 2,594.61 0.2 3.0 0.2 59.9 149.25 64,680.2 15.5 1.0 3.1 Abu Dhabi 3,922.51 2.0 0.4 2.0 49.1 94.95 112,375.9 11.7 1.4 4.6 Saudi Arabia 7,910.66 (0.1) 1.8 (0.1) 16.3 1,435.89 416,945.3 16.5 2.1 3.7 Kuwait 8,087.82 0.2 (0.1) 0.2 36.3 89.49 110,738.4 20.6 1.3 3.5 Oman 6,657.51 0.2 (0.7) 0.2 15.6 20.79 23,108.9 11.0 1.7 4.1 Bahrain 1,198.74 0.3 0.9 0.3 12.5 1.06 21,399.0 8.5 0.9 4.1 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 9,660 9,680 9,700 9,720 9,740 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 6 Qatar Market Commentary  The QE index gained marginally to close at 9,706.6. The Transportation and Telecoms indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.  Doha Bank and Qatar Navigation were the top gainers, rising 3.6% and 2.6% respectively. Among the top losers, Qatar General Ins. & Rein. Co. fell 6.6%, while Qatar German Co. for Med. Dev. declined 5.3%.  Volume of shares traded on Thursday declined by 25.0% to 9.8mn from 13.1mn on Wednesday. However, as compared to the 30-day moving average of 5.8mn, volume for the day was 69.1% higher. Barwa Real Estate Co. and United Development Co. were the most active stocks, contributing 20.5% and 18.5% 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 Arabia Insurance Cooperative Co. (AICC) A.M. Best Saudi Arabia FSR/ ICR B++/bbb B-/bb-  Negative – 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, LC – Local Currency) Earnings Releases Company Market Currency Revenue (mn) 2Q2013 % Change YoY Operating Profit (mn) 2Q2013 % Change YoY Net Profit (mn) 2Q2013 % Change YoY Deyaar Development Co. (DEYAAR) Dubai AED – – – – 27.3 46.8% National Central Cooling Co. (Tabreed) Dubai AED 278.6 -6.1% 95.7 14.7% 79.4 37.1% Dubai Investments Co. (DIC) Dubai AED 645.2 16.3% – – 158.5 150.1% United Kaipara Dairies Co. (UNIKAI) Dubai AED 80.9 -0.9% – – (5.1) N/A Abu Dhabi Ship Building Co. (ADSB) Abu Dhabi AED 232.4 -34.3% – – (1.7) N/A National Takaful Co. (Watania) Abu Dhabi AED 8.6 320.4% – – (6.0) 67.0% Al Waha Capital Abu Dhabi AED – – 36.2 N/A 38.4 N/A Green Crescent Insurance Co. (GCIC) Abu Dhabi AED 12.1 -40.2% – – 1.3 N/A Arkan Building Materials Co. (Arkan) Abu Dhabi AED 100.2 1.7% – – 7.8 -57.8% Gulf Cement Co. (GCC) Oman OMR 177.6 18.8% – – 23.1 N/A Oman Hotels & Tourism Co. (OHTC) Oman OMR 4.1 14.3% – – 1.4 47.0% Inovest Bahrain USD – – – – 0.1 N/A Banader Hotels Co. (BANADER) Bahrain BHD – – – – 0.03 -59.4% Takaful International Co. (TAKAFUL) Bahrain BHD 2.7 10.8% – – 0.1 -27.0% Bahrain Kuwait Insurance Co. (BKIC) Bahrain BHD 2.9 9.7% – – 1.1 87.1% Source: Company data, DFM, ADX, MSM, Bahrain Bourse Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/01 US Department of Labor Initial Jobless Claims 27-July 326K 345K 345K 08/01 US Department of Labor Continuing Claims 20-July 2951K 3000K 3003K 08/01 US Bloomberg Markit US PMI Final July 53.7 53.2 53.2 08/01 US Bloomberg Bloomberg Consumer Comfort 28-July -27.0 – -27.3 08/01 US US Census Bureau Construction Spending MoM June -0.60% 0.40% 1.30% 08/01 US ISM ISM Manufacturing July 55.4 52.0 50.9 08/01 US Bloomberg Total Vehicle Sales July 15.60M 15.80M 15.89M 08/02 US Bureau of Labor Stat. Unemployment Rate July 7.40% 7.50% 7.60% 08/02 US Bureau of Labor Stat. Underemployment Rate July 14.00% – 14.30% Overall Activity Buy %* Sell %* Net (QR) Qatari 55.17% 64.39% (39,981,799.51) Non-Qatari 44.83% 35.61% 39,981,799.51
  3. 3. Page 3 of 6 08/02 US Bureau of Eco. Analysis Personal Income June 0.30% 0.40% 0.40% 08/02 US Bureau of Eco. Analysis Personal Spending June 0.50% 0.50% 0.20% 08/02 US Bureau of Eco. Analysis PCE Core MoM June 0.20% 0.10% 0.10% 08/02 US Bureau of Eco. Analysis PCE Core YoY June 1.20% 1.10% 1.20% 08/02 US US Census Bureau Factory Orders June 1.50% 2.30% 3.00% 08/01 EU Markit PMI Manufacturing July 50.3 50.1 48.8 08/01 EU ECB ECB Announces Interest Rates 1-August 0.50% 0.50% 0.50% 08/01 EU ECB ECB Deposit Facility Rate 1-August 0.00% 0.00% 0.00% 08/02 EU Eurostat PPI MoM June 0.00% 0.00% -0.30% 08/02 EU Eurostat PPI YoY June 0.30% 0.30% -0.20% 08/01 France Markit PMI Manufacturing July 49.7 49.8 48.4 08/01 Germany Markit PMI Manufacturing July 50.7 50.3 48.6 08/01 UK Markit PMI Manufacturing July 54.6 52.8 52.9 08/01 UK Bank of England Bank of England Bank Rate 1-August 0.50% 0.50% 0.50% 08/02 UK Markit PMI Construction July 57.0 51.5 51.0 08/01 China HSBC HSBC/Markit Manufacturing PMI July 47.7 47.7 48.2 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  QCB to issue QR4bn T-bills on August 6 – The Qatar Central Bank (QCB) will issue treasury bills for a maturity period of 91 days, 184 days, 273 days on August 6, 2013. The total amount of issuance is QR4bn. (QCB)  Qatar sends LNG aid to Egypt – Qatar has dispatched a liquefied natural gas (LNG) tanker as a donation to Egypt, which is the first of five shipments Qatar had promised. Al Mafyar, a LNG carrier belonging to the Qatar Gas Transport Company (Nakilat), sailed from Ras Laffan port with the LNG shipment to Egypt. (  BRES’ net profit declines 74.4% QoQ in 2Q2013 – Barwa Real Estate Company (BRES) has reported a net profit of QR40.6mn in 2Q2013, indicating a QoQ decrease of 74.4% (- 86.5% YoY). Net profit was down 66.4% YoY to QR199.2mn in 1H2013. Earnings per share stood at QR0.51 in 1H2013 as compared to QR1.53 in 1H2012. Rental income rose by 18.1% QoQ (+ 37.6% YoY) to QR241.6mn in 2Q2013, while it was up 26.4% YoY to QR446.1mn in 1H2013. (QE)  SIIS reports QR14.5mn net profit in 1H2013 – Salam International Company (SIIS) has reported a net profit of QR14.5mn in 1H2013 as compared to QR38.2mn for 1H2012. EPS amounted to QR0.13 as of June 30, 2013 versus QR0.33 for the corresponding period in 2012. (QE)  Qatar sets energy efficiency standards for air-conditioners – Qatar General Electricity & Water Corporation (Kahramaa) has set the new standard specifications for energy efficiency of air- conditioners through its Conservation & Energy Efficiency Department. Kahramaa said air-conditioners that do not meet the minimum energy-efficiency standards will not be allowed into the Qatari market. The new standards, which are approved by the World Trade Organization under QS SASO 2663/2013, will be effective soon. The minimum star rating for air-conditioners in Qatar is three, which is equal to an energy efficiency ratio of 8.5. Once the energy-efficiency labeling is activated, non-compliant appliances will be barred from entering the market. (Gulf-  QIMD signs feasibility deal with Engel & Volkers to build new tower – Qatar Industrial Manufacturing Company (QIMD) has signed an agreement with Engel & Volkers, an international real estate services company, to conduct a marketing survey & feasibility study for the construction of a new tower for QIMD at West Bay. The new building will cost around QR500mn. (Gulf-  ORDS’ backs Algeria’s 3G license process – Ooredoo (ORDS), which operates Nedjma Telecom Company in Algeria, has welcomed the decision by the Algerian authorities to begin the process of granting 3G licenses to telecom operators. ORDS’ Chairman HE Sheikh Abdullah bin Mohamed bin Saud al-Thani said Ooredoo will participate fully in this process. (Gulf-  Three new hospitals for single workers – Qatar’s Supreme Council of Health (SCH) said three full-fledged hospitals built exclusively for single workers will become operational in the Industrial Area, Ras Laffan and Mesaieed Industrial City by 1Q2016. SCH said that work on the Industrial Area’s hospital project has already begun, while the building of the other two projects located at Mesaieed Industrial City and Ras Laffan are scheduled to begin by the end of August. (  Ashghal: 10 kindergarten buildings ready – The Public Works Authority (Ashghal) announced that 10 new kindergarten schools in Doha and other areas will be ready by the end of August. Built at a total cost of QR21mn, these kindergartens will provide a comprehensive educational environment for children between the ages of 3 and 6. (  Qatar Airways, Emirates to launch flights to CIA, Philippines – Qatar Airways and Emirates Airlines have decided to launch daily flights to Clark International Airport (CIA) in the Pampanga province in the Philippines, from October 1 and October 27, respectively. (  QIBK opens model branch in Muaither – The Qatar Islamic Bank (QIBK) has inaugurated its “model” branch in Muaither as part of its strategy to expand its domestic network. (Gulf-  Qatar government announces Eid holidays – The Emiri Diwan has announced holidays on the advent of Eid Al Fitr. For the ministries, government departments and general authorities & institutions, the holiday will begin on August 6 and ends on August 15, while employees are to resume work on August 18. The Qatar Central Bank (QCB), other banks and financial institutions under the control of QCB and Qatar Financial Markets Authority will have a three-day holiday, and the QCB governor will soon announce the starting date of the holiday. (Peninsula Qatar)
  4. 4. Page 4 of 6 International  ECB holds interest rates as economy stabilizes – The European Central Bank (ECB) left its main interest rate unchanged at a record low of 0.5%, as recent economic data kindled hopes of a recovery taking hold this quarter. The ECB also left the rate on its deposit facility at 0.0% and held its marginal lending facility (emergency borrowing rate) at 1.0%. (Reuters)  Bank of England leave interest rates unchanged – The Bank of England's Monetary Policy Committee (MPC) has left interest rates unchanged at 0.5%. MPC has kept the key borrowing rate at that level since March 2009. The MPC also said it would make no change to the £375bn of monetary stimulus it is providing through its quantitative easing program. (BBC)  IMF urges Spain to act fast to create jobs, growth – The IMF said Spain's reform progress and a correction in its fiscal and external imbalances are helping it to stabilize its economy, but an urgent action is needed to create jobs and stimulate growth. The IMF has projected a slow and difficult turnaround from eight straight quarters of contraction and said unemployment in Spain, which stood at 26.3% in the second quarter, was too high. The IMF said the outlook is grim and risks are high, pointing to risk factors such as continued fiscal consolidation, tight financing conditions for small firms and external risks of a delayed European banking union and a slowdown in emerging markets. (Reuters)  Japan’s GDP growth could slow to 1% after sales tax hike – Japan’s Cabinet Office has forecasted that the country’s economic growth will slow to 1.0% in FY2014-15, less than half the pace expected this year, as a planned sales tax hike weighs temporarily on consumption. The Cabinet Office said during FY2013-14, Japan's economy is forecast to expand 2.8% as an improving labor market bolsters consumer spending and as policies to end 15 years of deflation start to take hold. This is an upgrade from the government's previous forecast of 2.5% growth. (Reuters)  China services PMI improves, inflation creeping up – Growth in China's non-manufacturing sector picked up in July as Beijing's recent support measures for small firms helped improve sentiment, though companies noted that inflation is picking up and pushing up costs. The government's non- manufacturing purchasing managers' index (PMI) rose to 54.1 last month over June's 53.9. (Reuters)  QNB Group: US tapering of QE could put brake on global growth – QNB Group said the tapering of quantitative easing (QE) by the US Federal Reserve could act as a brake on global growth. QNB said QE has already had a drastic impact on exchange and interest rates in recent months, which would reduce global growth as well. The statement has linked the weakening of the currencies among emerging markets as a result of the US Federal Reserve’s decision. QNB Group said that concerns about QE tapering led investors to withdraw capital from emerging markets to take advantage of higher US bond yields. ( Regional  Moody’s: GCC countries’ sizeable SWFs support rating resilience – Moody’s said the considerable assets held by the sovereign wealth funds (SWFs) of GCC region countries support the strength of their ratings. However, the limited transparency of the funds’ assets constrains the government bond ratings of the GCC countries at their current levels. The assets of SWFs in GCC countries have grown in line with the rapid recovery in oil prices since the 2009 trough. Moody’s has estimated that GCC region SWFs reached an aggregate $1.6tn in assets at the end of 2012 (equivalent to 107% of their aggregate GDP), up from $1.0tn in 2007 (105% of GDP). Moreover, SWF assets now exceed central government liabilities in all the GCC countries except Bahrain. (Bloomberg)  IATA: Robust air passenger growth in June – According to the data released by the International Air Transport Association (IATA), there has been a 6.0% YoY growth in passenger demand in June 2013. The data showed that this robust growth, measured in revenue passenger kilometers, is ahead of the 4.8% YoY growth reported during 1H2013. June’s growth is also ahead of the 5.6% expansion in capacity for June over the previous year, which pushed the passenger load factor to 81.7%. The data also showed that Middle East carriers expanded 12.1% compared to a year ago. This was slightly below the 13.4% capacity expansion, resulting in a load factor of 78.4%. The demand for new routes to emerging markets in Africa and Asia has fuelled the growth in the Gulf hubs. (AME Info)  Tadawul to introduce new tradable rights framework, appoints new CEO – The Saudi Stock Exchange (Tadawul) is introducing a new tradable rights framework, which enables right entitlements of listed companies undergoing rights issues to be listed and traded. This framework aims to add further protection and flexibility to those investors who do not have the intention to subscribe to their entitlements. Meanwhile, Tadawul has appointed Adel Saleh Al-Ghamdi as its new CEO who has taken charge of his work from July 1, 2013 (Tadawul)  Kingdom initiates SABIC’s projects worth SR81.44bn – The Saudi Arabian government has launched huge developmental projects, including SR81.44bn projects for Saudi Basic Industries Corp (SABIC). The projects launched for the Jubail Industrial City include a complex of the Saudi Kayan Petrochemicals, expansion of the National Natural Gas Company, expansion of Hadeed, and tri-ethyl aluminum project. SABIC’s projects include the project for industrial rubber in the Saudi Jubail Petrochemical Company, pavement work at the port for petrochemical projects, polyoxymethylene project of the National Methanol Company and a project in Arabian Petrochemical Company, a fifth plant at the Saudi Arabian Fertilizer Company in addition to a residential project for SABIC at the Jalmouda district. (  Alkawther, MODON sign desalination contract worth SR35mn – Alkawther Industries Company has signed a SR35mn contract with the Saudi Industrial Property Authority (MODON) for the design & implementation of a water desalination plant. Located at the second industrial zone in Dammam, the plant will have a capacity of 15,000 cubic meters per day. (  Almarai plans to raise its share capital by 50% – Almarai Company is planning to boost its share capital from SR4bn to SR6bn, by issuing 200mn additional shares, which will increase the number of shares from 400mn to 600mn. This will be done through the distribution of one bonus share for every two outstanding shares for all existing shareholders by the end of trading day on the company’s EGM scheduled in September. Almarai aims to adjust its share capital with its assets and support the company’s five-year investment plan of SR15.7bn through this capital increase. This program will be funded from retained earnings as of March 31, 2013 and it will cover the expansion needs in all areas of farming, manufacturing, distribution and logistics. (  Saudia inks deal to privatize aircraft maintenance firm – Saudi Arabian Airlines (Saudia) has signed a deal to privatize its
  5. 5. Page 5 of 6 aircraft maintenance company, Saudi Aerospace Engineering Industries. Under the deal, Saudia will be selling 30% of its stake to Tarabut Aircraft Maintenance Company, owned by Integrated Transport Company. (  Saudi Airlines Cargo expands network from its Nairobi hub – Saudi Airlines Cargo has re-launched its Nairobi hub and has expanded its network coverage in sub-Saharan Africa. This enables it to provide wider access to 23 new destinations in Eastern, Central and Southern Africa as well as the Horn of Africa and Indian Ocean Islands. (AME Info)  Better financing conditions lift UAE business sentiment – According to the Global Economic Conditions Survey, businesses in the UAE are reinvesting their earnings and are showing increased dynamism in 2Q2013 despite tighter demand and cash flow conditions. The survey showed that the current conditions in the UAE have boosted the business confidence in the region, with 40% of businesses reporting an increase confidence in their prospects, up from 33% in the previous quarter. The survey also showed that only 18% of the respondents reported a loss of confidence. (Bloomberg)  DIB reports AED436.97mn net profit in 2Q2013 – The Dubai Islamic Bank (DIB) has reported a net profit of AED436.97mn for 2Q2013, indicating an increase of 31% YoY. In 1H2013, net profit stood at AED739mn, up 25% YoY. Net revenue increased to AED2.1bn in 1H2013, an increase of 10% YoY. Total assets as of June 30, 2013 stood at AED111.1bn, reflecting an increase of 13% YTD. Customer deposits grew to AED82.4bn, up 23% YTD. (DFM)  Luxury house prices in Dubai rise 6% in 2Q2013 – According to the Knight Frank Prime Global Cities Index, the price of luxury homes in Dubai rose by 6% in 2Q2013. The index also showed that prime real estate prices in the Emirate have increased by 21.6% YoY in 2Q2013, making it the second best performing market in the world. (Bloomberg)  Dubai Group sells Bank Islam stake to Malaysia-based BIMB – Dubai Group has sold its 30.5% stake in Malaysia- based Bank Islam to Malaysia-based BIMB Holdings for $550mn. The investment company, which has been restructuring its $6bn debt, can reduce its borrowings after selling its stake in Bank Islam. (, Bloomberg)  Etihad to acquire 49% stake in Serbia’s JAT Airways, deal deadline with Jet extended until August end – Abu Dhabi- based Etihad Airways will acquire a 49% stake in Serbia’s loss- making JAT Airways. JAT Airways said Etihad would provide a $40mn loan facility to JAT, which would be converted into equity on January 1, 2014. The amount would be matched by an equal amount of capital injection by the Serbian government. After the deal, JAT would be renamed Air Serbia. Meanwhile, Etihad Airways’ CEO James Hogan said that a deadline to obtain regulatory approval for the airline’s planned purchase of $379mn stake in India-based Jet Airways has been extended until end of August. (Reuters) (Bloomberg)  Nakheel to construct new community retail center for International City – Dubai-based developer Nakheel is set to construct a new 11,000 square meter community center at the International City as part of its growing portfolio of retail projects. The new facility, located on the southern side of the International City, off Manama Road, will contain a supermarket, convenience store and a selection of restaurants and cafes. Nakheel has appointed Dubai-based Arif & Bintoak as consulting architects & engineers for the project’s supervision, which is expected to be delivered by mid-2015. (  NMC seeks to invest in Qatar, Kingdom – NMC, the leading private healthcare provider in the UAE, is planning to expand into Qatar and Saudi Arabia, and it is currently studying the feasibility. (Bloomberg)  EAS expands fleet with new aircraft – Emirates Aviation Services (EAS) has expanded its fleet’s strength by acquiring four new aircraft. (AME Info)  RAK FTZ reports 70% YoY increase in new company registrations in 1H2013 – Ras Al Khaimah Free Trade Zone (RAK FTZ) has reported a 70% YoY increase in new company registrations in 1H2013. RAK FTZ stated that 1,994 new companies joined in 1H2013, indicating a substantial increase over the 1,170 companies registered in 1H2012. Revenues from these new company registrations rose by 23% YoY in the period under review. The number of licenses renewed in 1H2013 has increased to 2,696 in 1H2013, registering a YoY growth of 17%. (AME Info)  KIB earns KD6mn net profit in 1H2013 – Kuwait International Bank (KIB) has reported a net profit of KD6mn in 1H2013. The bank's operational earnings rose 100% YoY to KD16.6mn in 1H2013. Total assets increased to about KD1.4bn, up by 17% YoY. (  Kuwait Petroleum to halt its Rotterdam refinery – Kuwait Petroleum Corp is scheduled to halt its entire Rotterdam oil refinery for maintenance in September. The work will last for about two months. (  BMMI acquires land worth BHD8.3mn – BMMI has acquired a land and its constituents which includes ADDAX Tower and Parking Building located in Sanabis. A total acquisition consideration is amounting to BHD8.3mn. (Bahrain Bourse)  Investcorp to acquire Tyrrells for £100mn – Investcorp, a provider and manager of alternative investment products, has agreed to acquire Tyrrells Potato Crisps, the manufacturer of crisps and snacks, from Langholm Capital for £100mn. (AME Info)
  6. 6. 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 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 Jan-10 Aug-10 Mar-11 Oct-11 May-12 Dec-12 Jul-13 QEIndex S&PPan Arab S&PGCC (0.1%) 0.0% 0.2% 0.3% 0.2% 2.0% 0.2% (0.6%) 0.0% 0.6% 1.2% 1.8% 2.4% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,311.75 0.1 (1.6) (21.7) DJ Industrial 15,658.36 0.2 0.6 19.5 Silver/Ounce 19.91 1.4 (0.5) (34.4) S&P 500 1,709.67 0.2 1.1 19.9 Crude Oil (Brent)/Barrel 109.36 0.0 0.0 (3.1) NASDAQ 100 3,689.59 0.4 2.1 22.2 Natural Gas (Henry Hub)/MMBtu 3.39 (0.0) (0.1) (0.3) STOXX 600 304.15 0.3 1.8 8.7 LPG Propane (Arab Gulf)/Ton 810.00 0.0 0.0 (16.4) DAX 8,406.94 (0.0) 2.0 10.4 LPG Butane (Arab Gulf)/Ton 807.00 0.0 0.0 (16.7) FTSE 100 6,647.87 (0.5) 1.4 12.7 Euro 1.33 0.5 (0.0) 0.6 CAC 40 4,045.65 0.1 1.9 11.1 Yen 98.94 (0.6) 0.7 14.1 Nikkei 14,466.16 3.3 2.4 39.2 GBP 1.53 1.2 (0.6) (5.9) MSCI EM 955.35 0.1 (0.6) (9.5) CHF 1.08 0.8 (0.1) (1.5) SHANGHAI SE Composite 2,029.42 0.0 0.9 (10.6) AUD 0.89 (0.2) (3.8) (14.3) HANG SENG 22,190.97 0.5 1.0 (2.1) USD Index 81.91 (0.5) 0.3 2.7 BSE SENSEX 19,164.02 (0.8) (3.0) (1.4) RUB 32.82 (0.8) (0.0) 7.5 Bovespa 48,474.04 (1.4) (1.9) (20.5) BRL 0.44 0.9 (1.2) (10.1) RTS 1,336.39 0.4 (0.9) (12.5) 139.5 124.3 112.9