1 July Daily market report

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1 July Daily market report

  1. 1. Page 1 of 7 QE Intra-Day Movement Qatar Commentary The QE index rose 5.6% to close at 12,134.1. Gains were led by the Real Estate and Banking & Financial Services indices, gaining 7.3% and 6.8%, respectively. Top gainers were Vodafone Qatar and Mazaya Qatar Real Estate Dev., rising 10.0% each. Among the top losers, Qatar National Cement Co. fell 0.2%. GCC Commentary Saudi Arabia: The TASI index rose 0.7% to close at 9,584.3. Gains were led by the Hotel & Tourism and Tele. & Info. Tech. indices, rising 2.2% each. Umm Al-Qura Cement gained 10.0%, while The Co. for Coop. Ins. was up 5.0%. Dubai: The DFM index gained 3.2% to close at 4,067.7. The Investment & Financial Services index gained 5.6%, while the Real Estate & Const. index rose 4.9%. Dubai Investments gained 11.1%, while Arabtec was up 10.3%. Abu Dhabi: The ADX benchmark index rose 0.6% to close at 4,579.4. The Inv. & Fin. Services index gained 6.3%, while the Real Estate index was up 5.6%. Nat. Marine Dredging surged 14.6%, while Eshraq Prop. gained 13.1%. Kuwait: The KSE index fell 0.3% to close at 6,948.5. The Technology index declined 1.1%, while the Oil & Gas index was down 0.9%. Pearl Of Kuwait Real Estate Co. fell 13.2%, while Kuwait Syrian Holding Co. was down 9.1%. Oman: The MSM index rose 0.2% to close at 7,020.5. Gains were led by the Financial and Services indices, rising 0.2% and 0.1%, respectively. Ahli Bank gained 5.5%, while Sohar Power was up 2.8%. Bahrain: The BHB index declined 0.1% to close at 1,425.6. The Commercial Banking index fell 0.3%, while other indices remained unchanged. Ahli United Bank was down 0.6%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 17.27 10.0 3,281.2 61.3 Mazaya Qatar Real Estate Dev. 16.94 10.0 1,828.7 51.5 Ezdan Holding Group 21.39 10.0 2,126.5 25.8 Masraf Al Rayan 50.00 9.9 3,394.4 59.7 Widam Food Co. 54.00 9.1 28.2 4.4 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Masraf Al Rayan 50.00 9.9 3,394.4 59.7 Vodafone Qatar 17.27 10.0 3,281.2 61.3 Ezdan Holding Group 21.39 10.0 2,126.5 25.8 Mazaya Qatar Real Estate Dev. 16.94 10.0 1,828.7 51.5 Barwa Real Estate Co. 38.00 7.0 1,760.6 27.5 Market Indicators 01 Jul 14 30 Jun 14 %Chg. Value Traded (QR mn) 848.9 560.7 51.4 Exch. Market Cap. (QR mn) 666,761.2 632,232.6 5.5 Volume (mn) 20.9 12.6 65.3 Number of Transactions 9,953 6,756 47.3 Companies Traded 41 43 (4.7) Market Breadth 40:1 8:28 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 18,097.95 5.6 2.7 22.0 N/A All Share Index 3,093.86 5.3 2.7 19.6 14.8 Banks 2,960.65 6.8 4.6 21.2 14.7 Industrials 4,172.59 3.9 2.3 19.2 16.3 Transportation 2,098.69 4.5 (1.0) 12.9 13.5 Real Estate 2,529.08 7.3 2.8 29.5 12.7 Insurance 3,403.99 0.4 (0.2) 45.7 8.9 Telecoms 1,512.47 6.2 (1.1) 4.0 20.9 Consumer 6,648.47 3.1 0.7 11.8 26.1 Al Rayan Islamic Index 4,024.81 5.9 2.2 32.6 17.4 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% National Mar. Dred. Co. Abu Dhabi 8.48 14.6 27,864.7 (1.4) Dubai Investments Dubai 3.00 11.1 34,906.4 28.9 Arabtec Holding Co. Dubai 2.88 10.3 225,772.6 40.5 Vodafone Qatar Qatar 17.27 10.0 3,281.2 61.3 Ezdan Holding Group Qatar 21.39 10.0 2,126.5 25.8 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Investbank Abu Dhabi 2.70 (10.0) 86.0 10.4 Ajman Bank Dubai 2.30 (7.6) 131.3 (7.3) Drake & Scull Int. Dubai 1.29 (4.4) 115,334.6 (10.4) Dubai Financial Market Dubai 2.50 (4.2) 84,014.5 1.2 DP World Ltd. Dubai 19.00 (3.6) 98.7 7.3 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 National Cement Co. 134.70 (0.2) 16.0 13.2 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Masraf Al Rayan 50.00 9.9 160,932.1 59.7 QNB Group 174.20 6.7 100,162.3 1.3 Barwa Real Estate Co. 38.00 7.0 65,426.5 27.5 Ooredoo 125.00 5.1 54,849.8 (8.9) Vodafone Qatar 17.27 10.0 54,495.0 61.3 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* 12,134.14 5.6 2.7 5.6 16.9 233.19 183,159.3 15.1 2.1 4.1 Dubai 4,067.67 3.2 (3.7) 3.2 20.7 554.85 81,210.8 16.3 1.6 2.6 Abu Dhabi 4,579.40 0.6 (1.8) 0.6 6.7 211.13 128,974.6 13.5 1.7 3.6 Saudi Arabia 9,584.31 0.7 0.2 0.7 12.3 1,392.37 522,345.1 19.1 2.3 2.9 Kuwait 6,948.47 (0.3) (0.5) (0.3) (8.0) 29.67 109,489.6 16.5 1.1 4.0 Oman 7,020.45 0.2 1.1 0.2 2.7 13.53 26,002.6 12.2 1.7 3.9 Bahrain 1,425.62 (0.1) (0.4) (0.1) 14.2 0.43 53,401.4 11.2 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) 11,400 11,600 11,800 12,000 12,200 12,400 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 7 Qatar Market Commentary  The QE index rose 5.6% to close at 12,134.1. The Real Estate and Banking & Financial Ser. indices led the gains. The index rose on the back of buying support from Qatari shareholders despite selling pressure from non-Qatari shareholders.  Vodafone Qatar and Mazaya Qatar Real Estate Dev. were the top gainers, rising 10.0% each. Among the top losers, Qatar National Cement Co. fell 0.2%.  Volume of shares traded on Tuesday rose by 65.3% to 20.9mn from 12.6mn on Monday. However, as compared to the 30-day moving average of 21.9mn, volume for the day was 4.6% lower. Masraf Al Rayan and Vodafone Qatar were the most active stocks, contributing 16.3% and 15.7% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Global Economic Data Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 07/01 US Markit Markit US Manufacturing PMI June 57.3 57.5 57.3 07/01 US ISM ISM Manufacturing June 55.3 55.9 55.4 07/01 US ISM ISM Prices Paid June 58.0 60.0 60.0 07/01 US Bloomberg IBD/TIPP Economic Optimism July 45.6 48.0 47.7 07/01 EU Markit Markit Eurozone Manufacturing PMI June 51.8 51.9 51.8 07/01 EU Eurostat Unemployment Rate May 11.60% 11.70% 11.60% 07/01 France Markit Markit France Manufacturing PMI June 48.2 47.8 48.2 07/01 Germany Deutsche Bundesbank Unemployment Change (000's) June 9K -10K 26K 07/01 Germany Deutsche Bundesbank Unemployment Rate June 6.70% 6.70% 6.70% 07/01 Germany Markit Markit/BME Germany Manufacturing PMI June 52.0 52.4 52.0 07/01 UK Markit Markit UK PMI Manufacturing SA June 57.5 56.8 57.0 07/01 Spain Markit Markit Spain Manufacturing PMI June 54.6 53.0 52.9 07/01 Italy Markit Markit/ADACI Italy Manufacturing PMI June 52.6 53.2 53.2 07/01 Italy ISTAT Unemployment Rate May 12.60% 12.60% 12.50% 07/01 Italy Italian Treasury Budget Balance June 7.7B – -6.4B 07/01 China CFLP Manufacturing PMI June 51.0 51.0 50.8 07/01 China Markit HSBC China Manufacturing PMI June 50.7 50.8 50.7 07/01 Japan Markit Markit/JMMA Japan Manufacturing PMI June 51.5 – 51.5 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  QCB auctions T-bills worth QR4bn – The Qatar Central Bank (QCB) has auctioned treasury bills worth QR4bn on July 1, 2014, for which it received bids totaling QR10.66bn. T-bills worth QR2bn with a three-month maturity period were auctioned at a yield of 0.66%. T-bills with six-month maturity worth QR1bn were sold at 0.82% yield, while T-bills with nine-month maturity worth QR1bn were auctioned at 0.90% yield. (QCB)  MDPS: Qatar trade surplus rises 7.8% in May – Qatar’s foreign trade surplus rose to QR33.3bn in May 2014 from QR30.9bn in May 2013, up by 7.8%. A Ministry of Development Planning & Statistics (MDPS) statement said that exports of petroleum gases and other gaseous hydrocarbons increased 10.7% YoY to QR27.2bn in May. In May 2014, the major destination countries for Qatar’s exports were Japan with QR9.3bn, a share of 22.1% of the total exports, South Korea with QR7.3bn (17.3%), and India with QR5.7bn (13.5%). Motor cars and other passenger vehicles were at the top of the imported group of commodities in May 2014, with QR0.5bn, reflecting a decrease of 22.4% as compared to May 2013. In second and third place were imports of iron ores and concentrates, including roasted iron pyrites reaching QR0.5bn, increasing by 96%, and aircraft spare parts with QR0.4bn, decreasing by 10.7%. In May 2014, China was the leading country of origin of Qatar’s imports with QR0.9bn, a share of 10.3% of the imports. (Peninsula Qatar)  Qatari banks geared up to boost capital base in line with Basel III norms – Qatar’s banking industry is all geared up to strengthen its capital base in line with the new Basel III norms. Given the expected increase in the capital adequacy ratio (CAR), many lenders are now contemplating moves to enhance their capital either through rights issue or hybrid routes. The Qatar Central Bank (QCB), which has already stipulated a higher 12.5% Basel III CAR from the previous level of 10%, is expected to increase it further to 14% by 2015 and to 16% by 2019 so as to ensure adequate “cushioning”, while the lenders go in for funding the major infrastructure projects, which are being announced in the run-up to Qatar hosting the 2022 FIFA World Cup. The final Basel III circular for capital, liquidity, and leverage ratios was issued in January 2014. The credit pick-up has already started showing signs of strengthening and is expected to gain traction since the country has outlined $150bn to $200bn commitments toward infrastructure spending, ahead Overall Activity Buy %* Sell %* Net (QR) Qatari 65.85% 54.49% 96,440,902.13 Non-Qatari 34.15% 45.51% (96,440,902.13)
  3. 3. Page 3 of 7 of the FIFA World Cup. The International Monetary Fund (IMF) said that broad money indicators and private sector credit have continued to grow robustly after its Article IV consultation with Qatar. (Gulf-Times.com)  SCH: 48 healthcare projects are in the pipeline – The Supreme Council of Health (SCH) has announced that as many as 48 healthcare infrastructure projects will be completed by 2020 as part of the Qatar Health Facilities Master Plan (QHFMP). The projects include 31 health centers, eight diagnostic & treatment units, a general & specialized hospital each, two long-term facilities and five hospital expansion plans. Out of these facilities, 14 health centers and eight diagnostic units will be completed within 2016. The general & special hospitals, two long-term facilities and four hospital expansion plans will be completed over 2015-2019. Another hospital expansion will be completed over 2016-2020, while 17 more health centers are to be completed within 2018-2020. This will be part of the first action plan adopted for 2013-2018. SCH clarified that the exact configuration of these facilities may change in order to deliver the necessary services to the public. QHFMP is a 20-year roadmap created toward improving the country’s healthcare sector and is expected to be completed by 2033. The comprehensive blueprint, produced as part of the National Health Strategy 2011-2016, outlines how Qatar can support its vision for a world-class health system in new buildings and facilities through the wise use of its resources. (Gulf-Times.com)  Demand for small plots for housing soaring – Demand for small plots of land across the country for housing purposes has been soaring, especially in Doha and its near & far-off suburbs. The Ministry of Justice has released the transaction details which showed that 157 deals were concluded between June 22 and June 26. The deals worth QR914.45mn were dominated by the sale of small plots in Doha, Umm Salal, Al Khor, Al Wukair, Al Rayan, Muathier among other places. A house admeasuring only 93 square meters in Fereej bin Omran was sold for QR1.22m. The most expensive deal was that of a house admeasuring 1,123 square meters in Fereej bin Mahmoud that was sold for QR90m at the rate of QR80,000 per square meters. (Peninsula Qatar)  Turkey's Kiler Holding signs MoU with Al Rayyan to operate supermarkets in Doha – Turkey's Kiler Holding has signed a MoU with Qatar-based Al Rayyan to open and operate Kiler supermarkets in Doha. Under the terms of the agreement, Kiler and Al Rayyan will open and operate Kiler stores & introduce Turkish products to the market. Kiler is expecting the final agreement to be signed by September 2014 and the first store is expected to be opened in early 2015, with at least 5 stores expected to be rolled out in Doha. (Reuters)  AKHI to disclose results on July 16, 2014 – Al Khaleej Takaful Group (AKHI) will disclose its financial reports for the period ending June 30, 2014, on July 16, 2014. (QE)  MCGS to disclose results on July 16, 2014 – Medicare Group (MCGS) will disclose its financial reports for the period ending June 30, 2014, on July 16, 2014. (QE)  MARK to disclose results on July 21, 2014 – Masraf Al Rayan (MARK) will disclose its financial reports for the period ending June 30, 2014, on July 21, 2014. (QE)  VFQS to disclose 1Q2014 results on July 22, 2014 – Vodafone Qatar (VFQS) will disclose its 1Q2014 financial results on July 22, 2014. VFQS’s financial year runs from April 1 to March 31 every year. (QE)  QE suspends trading of QIGDs shares on July 2 – The Qatar Exchange (QE) has announced trading suspension of Qatari Investors Group (QIGD) shares on July 2, 2014 due to the company’s scheduled EGM on that day. (QE) International  PMI: Global manufacturing activities accelerated in June – A business survey showed global manufacturing activities accelerated in June, and with new orders coming in faster output is likely to pick up in the coming months. JPMorgan's Global Manufacturing Purchasing Managers' Index (PMI) rose to a four- month high of 52.7 in June from May's 52.1, holding above the 50 mark indicating growth for the 19th month in a row. A director at JPMorgan David Hensley said the global PMI suggests the growth of manufacturing output strengthened further into midyear. He further added that with new order inflows strengthening and inventories of finished goods indicated to be declining, the stage is set for robust output gains in the coming months. The survey revealed that new orders came in at their fastest rate since February, while firms ran down stocks for the third month. The US, Britain and much of Asia recorded solid increases in manufacturing activities last month, but factories in the Eurozone lost momentum. (Reuters)  Factories sustain gains as US growth picks up – American factories, propelled by the strongest orders of the year, sustained gains in June and are poised to be part of the rebound in economic growth. The Tempe, Arizona-based group’s report showed the Institute for Supply Management’s manufacturing index was 55.3 last month, which changed little from a five- month high of 55.4 in May. Readings greater than 50 indicate expansion. Producers of wood products, furniture, metals and machinery were among those seeing a pick-up in demand as gains in auto & home sales rippled through the world’s largest economy. Growing consumer spending, lean inventories and improving overseas markets will probably keep assembly lines busy in the second half of 2014. The figures showed that factories globally were also mostly on an upswing. According to a gauge from the National Bureau of Statistics and China Federation of Logistics and Purchasing, manufacturing activities in China grew at the fastest pace of the year in June. According to Markit Economics in the UK, manufacturing expanded in June at the strongest pace in seven months. Other Markit data showed that factories in the 18-nation Eurozone cooled last month, as a deepening downturn in France offset a pick-up in Spain. (Bloomberg)  UK manufacturing unexpectedly quickens on demand surge – The UK manufacturing growth unexpectedly accelerated to the fastest pace in seven months as demand surged, adding to signs of a broadening recovery. Markit Economics said the industry index rose to 57.5 in June from 57 in May. Economists forecast a decline to 56.8, based on the median estimate in a Bloomberg News survey. A gauge of new orders increased to 61.1 from 59.5, also a seven-month high. The pound strengthened after the report. The survey follows a report from the Confederation of British Industry that showed demand at factories strengthened in June and order books were the fullest since December. Business investment is also recovering, and Britain’s strengthening economy has prompted speculation about when the Bank of England will raise its benchmark interest rate from a record low. According to the report, the growth in new orders in June was one of the fastest since the survey began in 1992, while export orders increased for the 15th month. Markit estimates that manufacturing expansion in the second quarter may have exceeded the 1.5% pace recorded in the three months through March. (Bloomberg)
  4. 4. Page 4 of 7  Euro area jobless rate unchanged as crisis legacy lingers – The Euro area unemployment rate was unchanged in May as the currency bloc struggled to shake off the legacy of the debt crisis. The European Union’s statistics office in Luxembourg said the jobless rate remained at 11.6% after the April number was revised down from 11.7%. The median forecast in a Bloomberg News survey of 26 economists was for the rate to hold at the previous level. The European Central Bank last month unveiled a package of measures including a negative deposit rate and conditional long-term loans to banks to stoke lending and drive growth. ECB President Mario Draghi said in April that his “biggest fear” is a stagnation that leads to high unemployment becoming structural. London-based Markit Economics said manufacturing activities in the Euro area slowed more than initially estimated in June. Manufacturing grew at the fastest pace since 2007 in Spain, while contracting for a second month in France. (Bloomberg) Regional  Moody’s: High-risk assets continue to dominate GCC insurers’ investment mix – According to a report by Moody's Investors Service, the Gulf Cooperation Council (GCC) insurers continue to face investment risks given the dominance of high- risk assets in their investment mix. The report stated that equity and real estate account for a material portion of GCC insurers' total invested assets. Equities remain the key asset class for GCC insurers, accounting for over 40% of the total investments in 2013. Middle Eastern equities have historically provided volatile returns given the market's relatively small size and the recent turbulence in the global financial markets. Furthermore, the Middle East lacks extensive use of risk mitigation strategies such as hedging, and a significant rise in the use of such techniques is unlikely over the medium-term. Real estate is also a key investment class, accounting for over 20% of the total invested assets in 2013. The main risks of real estate assets stem from their valuation and liquidity. Specifically, real estate assets are often recorded in insurers' financial statements at market value, exposing the balance sheet to volatility. In addition, the liquidity of real estate is frequently low, with a surplus of completed properties further limiting the ability to liquidate real estate assets quickly at balance-sheet values. Moody's expects GCC insurers' investment strategies to shift toward higher allocations to lower-risk assets over a period of time. (GulfBase.com)  MEBAA: Saudi Arabia owns 35% of private jets in Middle East – According to a report released by the Middle East Business Aviation Association (MEBAA), Saudi Arabia has a total of 164 business jets, or 35% of all the registered planes in the Middle East. Bombardier, Airbus and Embraer had sold the most jet engine aircrafts since 2000. However, Boeing still maintains the strongest presence with 38 jets registered across 10 countries in the Middle East. (GulfBase.com)  Tabuk Pharmaceuticals, Pfizer sign commercial agreement – Tabuk Pharmaceuticals has entered into a commercial agreement with US-based global pharmaceutical company, Pfizer. Under the terms of the agreement, Pfizer will grant Tabuk exclusive rights to carry out manufacturing processes under license as well as commercialize and distribute second brand versions of four Pfizer products in Saudi Arabia. In addition, Tabuk will give Pfizer rights to twelve high-value generic products in Saudi Arabia. Both companies will seek the relevant authorities’ approvals for registration, production and commercialization. This agreement enables Tabuk to strengthen its position in its domestic pharmaceutical market, as well as expand its offering of innovative medicines in Saudi Arabia. (GulfBase.com)  Tadawul listed power firm sales up by 6% to SR37.46bn – The energy & utilities sector comprising the two listed companies – Saudi Electricity Company (SEC) and National Gas & Industrial Company (GASCO) – registered a 6% increase in sales to reach SR37.46bn in 2013 as compared to SR35.4bn in 2012. However, the sales of the energy & utilities sector in 1Q2014 fell by 12.4% to SR7.53bn as compared to SR8.6bn in 1Q2013. In the mean time, the net losses of the sector rose by 42% to SR879.5mn in 1Q2014 as compared to SR620.7mn in 1Q2013. The capitals of SEC and GASCO stood at SR41.66bn and SR750mn, respectively, while the market capitalization of both firms is worth SR68bn, or 3.5% of the market value of the capital market. (GulfBase.com)  Korean consortium secures MIS deal for Saudi hospitals – A Korean consortium comprising the Seoul National University Bundang Hospital and SK Telecom Company has secured a deal to provide medical information system (MIS) to Saudi Arabian hospitals. The deal worth 70bn South Korean won was struck with Saudi Arabia's Ministry of National Guard to provide MIS to six hospitals over the next two years. The South Korean partners will also establish a joint venture with the ministry to expand sales to other countries in the Middle East. The deal is expected to bring some 300bn South Korean won in sales over the next five years. (GulfBase.com)  BAE Systems restructures Saudi businesses; Riyadh Wings to acquire 49% stake – Defense group BAE Systems said it is bringing together its stakes and those of partner Riyadh Wings Aviation Academy in companies specializing in training, electronics and IT systems engineering under a single holding company. Riyadh Wings will progressively acquire a 49% stake in the holding company with BAE continuing to hold a majority stake. BAE said the restructuring would improve the growth prospects of the Saudi Arabian businesses and would not significantly affect the underlying earnings over the near-term. (GulfBase.com)  Maaden’s subsidiary signs SR18.9bn financing agreements – Saudi Arabian Mining Company (Maaden) has announced that its subsidiary Maaden Waad Al Shamal Phosphate Company has entered into financing agreements with the Public Investment Fund, commercial banks and other financial institutions, for a total amount of SR18.9bn without any corporate financial guarantees. The loans will be for a period of 16.5 years and will be repaid in semi-annual installments starting from December 31, 2018. The project is estimated to be about SR28bn and is expected to commence production in the new facilities in late 2016. Maaden, The Mosaic Company and Saudi Basic Industries Corporation (SABIC) will own 60%, 25% and 15% of the joint venture (JV), developing the Waad Al Shamal Phosphate project respectively. The company will use the financing for the development and construction of the Maaden Waad Al Shamal Phosphate Project. (Tadawul)  TASI reports 1H2014 report – The TADAWUL All Share Index (TASI) closed at a level of 9,513.02 points at the end of 1H2014, gaining 2,016.45 points (26.90%) over 1H2013. The TASI registered a increase of 11.45% on a YTD basis. Highest close level for the index during the period was 9,905.68 points as of June 10, 2014. Total equity market capitalization at the end of the 1H2014 reached SR1,945.15bn, increased by 29.93% as compared to 1H2013. The total value of shares traded increased 47.64% to SR1,123.24bn in 1H2014 as compared to 1H2013, while the total number of shares traded reached 38.51bn shares during 1H2014 as compared to 29.35bn shares traded in 1H2013, increasing by 31.23%. The TASI recorded 18.51mn total number of transactions in 1H2014 as compared to 17.65mn trades during 1H2013, up by 4.82%. (Tadawul)
  5. 5. Page 5 of 7  AAP Complex begins commercial operations on July 1 – The commercial operations of Saudi Acrylic Acid’s (SAAC) Acrylic Acid Plants complex (AAP complex) commenced on July 1, 2014. Sahara Petrochemicals Company owns 43.16%, while TASNEE owns 52.3% of SAAC. The AAP complex includes a production utilities unit (100% owned By Saudi Acrylic Acid Company (SAAC)), Acrylic Monomers factory of Saudi Acrylic Monomers Company (75% owned by SAAC, 25% Dow Chemicals Company) and Super Absorbent Polymers factory of Saudi Acrylic polymers company (75% owned by SAAC, 25% by Evonik of German) where the necessary tests for commercial operations were completed. (Tadawul)  NGIC BoD recommends SR30mn dividend for 2Q2014 – National Gas and Industrialization Company’s (NGIC) board of directors (BoD) has recommended the distribution of 4% dividend (SR0.4 per share) amounting to SR30mn for 2Q2014. The dividend will be distributed on July 15, 2014. (Tadawul)  Dubai-based Lulu Group to invest 3.5bn Indian Rupee in Kochi Infopark – The Dubai-based Lulu Group, owned by NRI businessman M A Yusuf Ali, will invest 3.5bn Indian Rupee to further develop the L&T Tech Park, located at the Infopark campus in Kochi, which it recently acquired for 1.5bn Indian Rupee. Currently, the L&T Tech Park has a 400,000 square feet IT building in its 7.44 acre campus and is going to build another 900,000 square feet space. Subject to the approval of the Registrar of Companies, the L&T Tech Park will be known as Lulu Tech Park Limited. The construction work is expected to start by October 2015. (Gulf-Times.com)  Al Thuriah launches two towers – Al Thuriah announced that the Sahara 3 Tower will be completed ahead of schedule and will be ready for occupancy by residents, before the end of 2014. The company also announced the construction of two more high-rise residential towers – Sahara 4 and Sahara 5. The new towers will be located in the Sahara Complex. The towers will have three hospitals, more than 10 schools and Sahara Mall in the vicinity. The apartments in both Sahara Tower 4 and Sahara Tower 5 are available for freehold (ownership as per the Sharjah Government Rules and Regulations) to GCC nationals and Arabs with a UAE Resident Visa. (GulfBase.com)  Gama Aviation opens private aviation terminal at SIA – Switzerland-based air charter company, Gama Aviation FZE has opened its exclusive executive terminal (FBO) at the Sharjah International Airport (SIA), creating a full-service private aviation hub serving Sharjah, Dubai and the Northern Emirates. The SIA facility is performing above its target for weekly movements as operators and owners seek to cut the transit time of principals & crew to the Northern Emirates. (Bloomberg)  Noor Takaful service recognized by Emirates Post – Noor Takaful, the Islamic insurance arm of Noor Investment Group, has been recognized by Emirates Post as a key strategic partner for the delivery of high-standard services. Noor Takaful’s portfolio includes offerings such as the GCC’s first e-takaful service that provides instant quotes and online payment facilities. (GulfBase.com)  Amlak Finance proposes new deal to restructure $2.7bn debt – Dubai-based Amlak Finance has proposed a new deal to restructure about $2.7bn in debt. If the deal is agreed, Amlak will make an initial 20% downpayment to depositors worth about AED2bn. The remaining debt to commercial depositors will be paid over 12 years, with about AED1.4bn turned into a convertible instrument. PricewaterhouseCoopers is advising the creditor committee. Emirates NBD is chairing the committee, which also includes Standard Chartered, Dubai Islamic Bank, Abu Dhabi Islamic Bank, Dubai’s Department of Finance and the National Bonds Corp. KPMG is advising Amlak. (Bloomberg)  Nakheel plans to build 1,000 villas to boost leasing income – Dubai-developer Nakheel is planning to build 1,000 villas in the emirate to rent out as it seeks to boost recurring income. The construction work is expected to start before the end of 2014 and the villas would take about 18 months to complete. Nakheel has announced plans to develop income-producing assets, including 2,900 hotel rooms in the next three years as well as 7.9mn square feet of shops, restaurants and leasing space. (Bloomberg)  DFM net foreign investment inflow reaches AED2.1bn in June 2014 – According to statistics revealed by the Dubai Financial Market (DFM), foreign investors bought stock worth AED17.2bn comprising 48.3% of the total traded value in June 2014, while the value of stocks sold by foreign investors during the same period reached AED15.1bn, comprising 42.4% of the total value traded. Accordingly, DFM net foreign investment inflow reached AED2.1bn. Arabs, others and GCC nationals were net buyers on DFM in June 2014, while UAE national were net sellers of AED2.1bn. Net buying reached AED1.2bn for Arabs, AED780.5mn for others and AED138mn for GCC nationals. The DFM General Index was down 22.5% to 3942.8 points at the end of June 2014 as compared to 5087.5 points at the end of May 2014. The DFM General Index is up 17% year at the end of June 2014. As for the sectors’ contribution to trading volumes, the Real Estate and Construction sector was ranked first in terms of traded value, to reach AED26.5bn, or 74.3% of the total traded value in the market, followed by Financial & Investment services sector with AED4.4bn or 12.4%. Market activities during the month of June 2014 indicated that investment decisions of foreign investors are derived from the sound fundamentals of the national economy as well as the strong and sustainable performance of the DFM-listed companies. The statistics revealed constant interest from foreign investors, whether retail or institutions, during June 2014, despite the market volatility, which reflects their confidence and the diversification & attractiveness of DFM opportunities. (DFM)  EA plans to double flight frequency on India-UAE route – Etihad Airways (EA) is planning more flights to double its flight frequency on the India-UAE route. The airline will increase its frequency of flights to Kochi, Bangalore, Chennai, Kozhikode and Hyderabad from October 1, 2014 due to strong demand from business and leisure travelers. The airline will utilize new Airbus A320s, scheduled for delivery in 2014, to accommodate much of the increased frequencies. (Bloomberg)  UAB signs $100mn Murabaha syndication deal – United Arab Bank (UAB) has announced the completion of a three-year syndicated Murabaha facility worth $100mn with four banks based in the UAE, Bahrain, and Kuwait. The Murabaha deal is the first Islamic syndication completed by UAB. Al Hilal Bank served as the mandated lead arranger and bookrunner for the deal, while the Arab Banking Corporation, Sharjah Islamic Bank and The National Bank of Kuwait were the other mandated lead arrangers. The syndicated Murabaha facility, which has been taken out for general corporate purposes, was almost twice oversubscribed. This syndicated facility is the second for UAB in a matter of months. (ADX)  Zain Kuwait appoints new CCO – Zain Kuwait has appointed Duncan Howard as its Chief Commercial Officer (CCO). Howard joined Zain in September 2013 and had previously worked for Vodafone and Vodafone Egypt. He will replace Albert Fernandes, who resigned for personal reasons. (Reuters)
  6. 6. Page 6 of 7  KKR, TPG looking to buy stake in Kuwait's Americana – Private-equity firms KKR & Co and TPG Capital are among the groups looking to buy a majority stake in food retailer Kuwait Food Company (Americana). At least six groups are considering bidding for the stake held by the Kuwait-based billionaire al- Kharafi family. A deal could value the company at about $5bn, Bloomberg reported. The other potential bidders include CVC Capital Partners and Advent International Corp. The al-Kharafi family owns 66.8% of Americana through its private investment company MAK (Mohammed Abdulmohsin al-Kharafi & Sons). (Reuters)  OAB signs deal with OCC – Oman Arab Bank (OAB) has signed new banking facilities for the new Cement Mill No. 5 to the Oman Cement Company (OCC), including a term loan in addition to the letters of credit. (GulfBase.com)  SEZAD awards OMR36.27mn Duqm Airport Project contract to Larsen & Toubro – The tender committee of the Special Economic Authority at Duqm (SEZAD) has awarded the Duqm Airport Terminal (Duqm Airport Project) contract valued at OMR36.27mn to engineering contractor, Larsen & Toubro (Oman). The contract represents Package 3 the Duqm Airport project, which includes a modern passenger terminal with a capacity to handle 500,000 passengers per annum, a 37-metre high air traffic control tower, and an air cargo terminal equipped to handle 25,000 tons of cargo per annum. (GulfBase.com)  Majis unveils plans for new water projects at Sohar Port – Majis Industrial Services has unveiled plans for a major ramp-up of its infrastructure to help meet the rapidly escalating industrial water needs of the Sohar Port and adjoining free zone. Majis has invited expressions of interest (EoI) from qualified contractors for two major projects planned for implementation at the port. Estimated to cost tens of millions of dollars, the projects in question pertain to the establishment of a central aerobic treatment plant with membrane-based recycling and re-use plant of 12,000 cubic m/d capacity, as well as the design & construction of a seawater reverse osmosis (SWRO) desalination plant of 28mn liters per day (MLD) capacity. Majis will consider the engineering, procurement, construction (EPC) route or set up a joint venture with the selected bidder for the development and long-term operation of the facility. (GulfBase.com)  Inovest appoints new CEO – Bahrain-based investment company, Inovest has appointed Nabeel Al Tattan as its new Chief Executive Officer. Al Tattan has more than 25 years of experience in the investment industry and the Islamic banking sector. He will replace Ahmed Al Qattan. (GulfBase.com)  Arcapita sells CardioMEMS for $450mn – Arcapita through its Arcapita Ventures I fund has completed the sale of 81% stake in Georgia, US-based CardioMEMS to St. Jude Medical (SJM). Earlier, SJM acquired a 19% stake in CardioMEMS for $60mn, and has now exercised its exclusive option to purchase the remaining 81% of the company, in a transaction valued in excess of $450mn. CardioMEMS has recently received USFDA approval for its heart failure management system. (GulfBase.com)  Bahrain ICM launches key initiative for SMEs – Bahrain Industry and Commerce Ministry (ICM) has launched an initiative to develop a national policy for entrepreneurship in the country during the 18th meeting of the main committee to co- ordinate and integrate SME activities. This is part of the ministry's strategy regarding small & medium enterprises (SMEs) and entrepreneurship. (GulfBase.com)  ABG’s Turkish subsidiary issues $350mn Sukuk – Al Baraka Banking Group’s (ABG) Turkish subsidiary, Al Baraka Turk Participation Bank, has completed an issuance of Islamic Sukuk worth $350mn in the form of Sukuk Al Wakala-Murabaha. The value of the total subscriptions reached $750mn, more than double the required amount. The issue is rated BB by Standard & Poor’s and is listed on the Irish Stock Exchange, and carries a profit rate of 6.25% per annum for a five-year period and is payable on June 30, 2019. Many banks, financial institutions and investment funds from different main world financial centers participated in the issue with 61% from the Middle East, 31% from Europe and 8% from Asia. The joint lead managers of the issue were Emirates NBD Capital, Nomura, QInvest and Standard Chartered Bank. (Bahrain Bourse)
  7. 7. Contacts Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa 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 7 of 7 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg (* Market closed on July 01, 2014) Source: Bloomberg (* Market closed on July 01, 2014) 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 200.0 210.0 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 QE Index S&P Pan Arab S&P GCC 0.7% 5.6% (0.3%) (0.1%) 0.2% 0.6% 3.2% (2.0%) 0.0% 2.0% 4.0% 6.0% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,326.39 (0.1) 0.8 10.0 DJ Industrial 16,956.07 0.8 0.6 2.3 Silver/Ounce 21.03 (0.0) 0.3 8.0 S&P 500 1,973.32 0.7 0.6 6.8 Crude Oil (Brent)/Barrel (FM Future) 112.29 (0.1) (0.9) 1.3 NASDAQ 100 4,458.65 1.1 1.4 6.8 Natural Gas (Henry Hub)/MMBtu 4.43 0.3 1.2 2.0 STOXX 600 344.89 0.9 0.9 5.1 LPG Propane (Arab Gulf)/Ton 106.00 0.4 (1.1) (16.2) DAX 9,902.41 0.7 0.9 3.7 LPG Butane (Arab Gulf)/Ton* 126.00 0.0 (0.6) (7.2) FTSE 100 6,802.92 0.9 0.7 0.8 Euro 1.37 (0.1) 0.2 (0.5) CAC 40 4,461.12 0.9 0.5 3.8 Yen 101.53 0.2 0.1 (3.6) Nikkei 15,326.20 1.1 1.5 (5.9) GBP 1.72 0.3 0.7 3.6 MSCI EM 1,051.39 0.1 0.5 4.9 CHF 1.13 (0.1) 0.4 0.6 SHANGHAI SE Composite 2,050.38 0.1 0.7 (3.1) AUD 0.95 0.7 0.7 6.5 HANG SENG* 23,190.72 0.0 (0.1) (0.5) USD Index 79.82 0.1 (0.3) (0.3) BSE SENSEX 25,516.35 0.4 1.7 20.5 RUB 34.33 1.0 1.8 4.4 Bovespa 53,171.49 0.0 0.0 3.2 BRL 0.45 0.5 (0.3) 7.4 RTS 1,362.10 (0.3) (1.3) (5.6) 174.4 147.8 134.2

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