11 August Daily market report


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11 August Daily market report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index rose 0.5% to close at 13,137.4. Gains were led by the Consumer Goods and Services and Real Estate indices, gaining 2.4% and 1.1%, respectively. Top gainers were Islamic Holding Group and Widam Food Co., rising 9.0% and 7.3%, respectively. Among the top losers, Mazaya Qatar Real Estate Dev. fell 3.2%, while Qatar Navigation declined 1.7%. GCC Commentary Saudi Arabia: The TASI index rose 0.2% to close at 10,596.6. Gains were led by the Cement and Real Estate Dev. indices, rising 1.2% and 1.1%, respectively. Buruj Coop. Ins. gained 9.9%, while Al Hammadi was up 8.9%. Dubai: The DFM index gained 1.7% to close at 4,819.9. The Real Estate & Construction index gained 3.1%, while the Investment & Financial Serv. index rose 2.1%. Int. Financial Advisors rose 14.3%, while Arabtec was up 3.9%. Abu Dhabi: The ADX benchmark index rose 1.1% to close at 4,997.6. The Real Estate index gained 2.5%, while the Inv. & Fin. Ser. index was up 1.7%. Int. Fish Farming Holding Co. rose 9.4%, while BILDCO gained 7.6%. Kuwait: Kuwait: The KSE index gained 0.5% to close at 7,230.8. The Technology index rose 1.7%, while Industrial index was up 1.3%. Coast Inv. & Development Co. gained 9.4%, while Gulf Glass Manuf. Co. was up 9.3%. Oman: The MSM index declined 0.4% to close at 7,296.3. Losses were led by the Industrial and Financial indices declining 0.7% and 0.3%, respectively. Galfar Engineering & Con. fell 6.7%, while Oman Invt. & Fin. was down 3.2%. Bahrain: Bahrain: The BHB index gained marginally to close at 1,488.2. The Industrial index rose marginally, while the other indices were flat. Delmon Poultry Co. was up 1.7%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Islamic Holding Group 85.00 9.0 1,254.9 84.8 Widam Food Co. 60.50 7.3 373.7 17.0 Qatar General Ins. and Reins. Co. 47.70 4.6 0.6 19.5 Qatar National Cement Co. 140.30 4.3 21.3 17.9 Doha Insurance Co. 30.50 3.4 56.1 22.0 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 21.78 (3.2) 3,096.0 94.8 Salam International Investment Co. 20.50 2.0 1,297.0 57.6 Islamic Holding Group 85.00 9.0 1,254.9 84.8 Ezdan Holding Group 19.79 (0.1) 1,147.9 16.4 Vodafone Qatar 19.59 0.5 1,065.2 82.9 Market Indicators 11 Aug 14 10 Aug 14 %Chg. Value Traded (QR mn) 740.9 614.9 20.5 Exch. Market Cap. (QR mn) 698,819.6 693,699.4 0.7 Volume (mn) 15.4 12.8 19.6 Number of Transactions 7,448 6,908 7.8 Companies Traded 40 42 (4.8) Market Breadth 28:10 18:19 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 19,594.35 0.5 0.5 32.1 N/A All Share Index 3,326.07 0.7 0.6 28.5 16.3 Banks 3,168.64 0.6 0.0 29.7 15.5 Industrials 4,333.33 0.7 1.0 23.8 17.7 Transportation 2,326.62 (0.5) (0.0) 25.2 14.9 Real Estate 2,875.57 1.1 1.5 47.2 15.5 Insurance 3,881.02 0.4 0.9 66.1 12.3 Telecoms 1,596.70 0.4 (0.1) 9.8 22.6 Consumer 7,582.46 2.4 3.2 27.5 28.3 Al Rayan Islamic Index 4,527.90 0.6 1.1 49.1 19.8 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Sharjah Islamic Bank Abu Dhabi 2.05 5.7 3,641.2 33.1 Qatar Gen Ins. & Reins. Qatar 47.70 4.6 0.6 19.5 National Medical Care. Saudi Arabia 79.97 4.4 6,068.9 46.7 Qatar National Cement. Qatar 140.30 4.3 21.3 17.9 National Investments. Kuwait 0.15 4.1 1,637.7 (3.8) GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Agility Kuwait 0.81 (2.4) 287.4 23.3 Bank Al-Jazira Saudi Arabia 35.17 (2.1) 1,899.4 24.7 F. A. Alhokair & Co. Saudi Arabia 121.29 (1.7) 508.0 74.5 Qatar Navigation Qatar 93.90 (1.7) 13.8 13.1 Raysut Cement Co. Oman 2.15 (1.6) 30.5 6.5 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% Mazaya Qatar Real Estate Dev. 21.78 (3.2) 3,096.0 94.8 Qatar Navigation 93.90 (1.7) 13.8 13.1 Mannai Corp. 116.00 (1.4) 105.0 29.0 Gulf International Services 117.80 (0.8) 87.0 141.4 Qatar Insurance Co. 91.80 (0.8) 20.6 72.6 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Islamic Holding Group 85.00 9.0 103,192.9 84.8 Industries Qatar 171.50 0.8 77,423.5 1.5 Mazaya Qatar Real Estate Dev. 21.78 (3.2) 68,305.8 94.8 Masraf Al Rayan 54.00 0.2 40,472.2 72.5 QNB Group 180.40 1.3 37,305.4 4.9 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* 13,137.43 0.5 0.5 2.0 26.6 203.49 191,895.9 16.2 2.2 3.8 Dubai 4,819.86 1.7 1.8 (0.3) 43.0 184.80 93,694.0 21.3 1.8 2.2 Abu Dhabi 4,997.59 1.1 1.5 (1.1) 16.5 38.70 136,967.0 14.2 1.8 3.3 Saudi Arabia 10,596.55 0.2 0.4 3.7 24.1 2,336.83 577,492.9 20.4 2.6 2.7 Kuwait 7,230.78 0.5 0.6 1.4 (4.2) 43.30 112,685.6 17.2 1.1 3.8 Oman 7,296.30 (0.4) (0.5) 1.3 6.8 13.04 26,864.2 11.3 1.7 3.8 Bahrain 1,488.23 0.0 (0.4) 1.1 19.2 0.33 54,491.0 11.7 1.0 4.6 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 12,950 13,000 13,050 13,100 13,150 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 rose 0.5% to close at 13,137.4. The Consumer Goods and Services and Real Estate indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.  Islamic Holding Group and Widam Food Co. were the top gainers, rising 9.0% and 7.3%, respectively. Among the top losers, Mazaya Qatar Real Estate Dev. fell 3.2%, while Qatar Navigation declined 1.7%.  Volume of shares traded on Monday rose by 19.6% to 15.4mn from 12.8mn on Sunday. Further, as compared to the 30-day moving average of 15.2mn, volume for the day was 1.3% higher. Mazaya Qatar Real Estate Dev. and Salam International Investment Co. were the most active stocks, contributing 20.2% and 8.4% 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 International Petroleum Investment Company (IPIC) Moody’s UAE LT IR/SUMTN/SURB/IR Aa3/Aa3/Aa3/ P–1 Aa2/Aa2/Aa2/ P–1  Stable – Mubadala Development Company Moody’s UAE LT IR/SUMTN/SURB/IR Aa3/Aa3/Aa3/ P–1 Aa2/ Aa2/Aa2/P–1  Stable – Tourism Development & Investment Company Moody’s UAE LT IR/SUMTN/SURB A1/A1/A1 Aa2/Aa2/Aa2  Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, IR – Issuer Rating, SR – Support Rating, LC – Local Currency, SUMTN – Senior Unsecured Medium Term Note, Senior Unsecured Regular Bond – SURB) Earnings Releases Company Market Currency Revenue (mn)2Q2014 % Change YoY Operating Profit (mn) 2Q2014 % Change YoY Net Profit (mn) 2Q2014 % Change YoY Ras Al Khaimah Ceramics Co. (RAKCEC) Abu Dhabi AED 868.5 -6.8% – – 93.3 -4.2% National Corporation for Tourism and Hotels (NCTH) Abu Dhabi AED 192.2 10.6% – – 49.1 85.4% Kuwait Food Co. (Americana) Kuwait KD – – – – 12.8 8.7% Shurooq Investment Services Holding Co. (SISCO)* Oman OMR 0.2 -14.5% – – -0.1 NA Renaissance Services* Oman OMR 117.3 -3.4% 27.6 8.2% 10.9 -0.9% Oman Telecommunications Co. (Omantel) * Oman OMR 238.6 -0.3% – – 66.0 9.1% Source: Company data, DFM, ADX, MSM (*1H2014 results) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/11 US US Treasury 3M High Yield Rate 11-Aug 0.03% – 0.03% 08/11 US US Treasury 3M Direct Accepted % 11-Aug 4.80% – 6.40% 08/11 US US Treasury 3M Bid/Cover Ratio 11-Aug 4.5 – 4.6 08/11 US US Treasury 3M Indirect Accepted % 11-Aug 30.30% – 26.00% 08/11 US US Treasury 6M Direct Accepted % 11-Aug 3.40% – 4.40% 08/11 US US Treasury 6M Indirect Accepted % 11-Aug 32.00% – 28.60% 08/11 US US Treasury 6M High Yield Rate 11-Aug 0.05% – 0.05% 08/11 US US Treasury 6M Bid/Cover Ratio 11-Aug 4.7 – 4.9 08/11 France Ministry of the Economy 3M T-Bill Amount Sold 11-Aug EU4196M – EU4190M 08/11 France Ministry of the Economy 3M T-Bill Average Yield 11-Aug 0.00% – 0.01% 08/11 France Ministry of the Economy 3M T-Bill Bid/Cover Ratio 11-Aug 3.6 – 3.2 08/11 France Ministry of the Economy 6M T-Bill Amount Sold 11-Aug EU1992M – EU1792M 08/11 France Ministry of the Economy 6M T-Bill Average Yield 11-Aug 0.01% – 0.02% 08/11 France Ministry of the Economy 6M T-Bill Bid/Cover Ratio 11-Aug 5.2 – 2.6 08/11 France Ministry of the Economy 12M T-Bill Amount Sold 11-Aug EU1597M – EU1691M Overall Activity Buy %* Sell %* Net (QR) Qatari 61.17% 67.98% (50,472,584.49) Non-Qatari 38.84% 32.03% 50,472,584.49
  3. 3. Page 3 of 6 08/11 France Ministry of the Economy 12M T-Bill Average Yield 11-Aug 0.02% – 0.02% 08/11 France Ministry of the Economy 12M T-Bill Bid/Cover Ratio 11-Aug 4.781 – 3.119 08/11 Germany Deutsche Bundesbank 6M Bill Allotment 11-Aug 1431M – 1992M 08/11 UK Lloyds Bank Lloyds Employment Confidence July 6.0 – 1.0 08/11 UK London Silver Market Fix. London Silver Market Fixing 11-Aug 19.9 – 20.1 08/11 UK London Gold Market Fix. London Gold Market PM Fix 11-Aug 1307.3 – 1309.8 08/11 Japan METI Tertiary Industry Index MoM June -0.10% 0.00% 0.90% 08/11 Japan Bank of Japan Money Stock M2 YoY July 3.00% 3.00% 3.00% 08/11 Japan Bank of Japan Money Stock M3 YoY July 2.40% 2.40% 2.50% 08/11 Japan ESRI Consumer Confidence Index July 41.5 42.0 41.1 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  Qatar’s Tasweeq offers first ultra-low sulfur diesel cargo – According to sources, Qatar International Petroleum Marketing Company (Tasweeq) has offered its first ultra-low sulfur diesel cargo for export from a new secondary unit at its Laffan refinery. Sources said that the product could eventually replace the high sulfur gasoil the company offers in the spot market, supplies of which are dwindling swiftly in Asia and the Middle East. The company will also have to compete with other new refineries in the Middle East, the majority of which are designed to produce ultra-low sulfur diesel that meets the European environmental standards. (Gulf-Times.com)  Alderley completes Qatar water project – Alderley Process Technologies has delivered a produced water treatment package for the Halul Island Produced Water Modification Project. The contract was awarded by Total Exploration & Production Qatar (TEPQ). The produced water treatment package was designed and manufactured at Alderley’s Jebel Ali facility, before it was installed and operated on Halul Island, Qatar. Halul Island is situated approximately 80 kilometers off the Doha coast and is the major storage & export terminal for the offshore oilfields of Qatar. (Bloomberg) International  Fischer: Participation drop may reflect slow growth – Federal Reserve’s Vice Chairman Stanley Fischer said the sluggish labor supply growth is a “source of concern” because it may contribute to a slowdown in longer-run output of the economy, which also faces a drag from housing and “broad- based” slowing across emerging markets. Fischer said the falling labor-force participation largely reflects an aging population, though there is “considerable uncertainty” about how much is due to the sluggish economy. The participation rate, which measures the share of working-age people in the labor force, is 62.9%, near the lowest since 1978. Fischer said there are good reasons to believe that some of the surprising weakness in labor-force participation reflects still poor cyclical conditions. He further added that many of those who dropped out of the labor force may be discouraged workers. A further strengthening of the economy will likely pull some of these workers back into the labor market, although skills and networks may have depreciated over the past years. (Bloomberg)  US jobs rose since '08 crisis, but pay is 23% less – According to sources, jobs growth in the US since the 2008 recession has been undermined by lower wages, with workers earning an average 23% less than earnings from jobs which were lost. According to a report released by the United States Conference of Mayors (USCM), the average annual salary in sectors where jobs were lost – particularly manufacturing and construction – during the 2008-09 financial crisis was $61,637, which represents cities with populations of more than 30,000. The report said the job gains through 2Q2014 in comparative sectors showed average wages of $47,171, implying $93bn in lower wage income. The report also showed that the majority of metro areas – 73% - had households earning salaries of less than $35,000 a year. (Reuters)  Italy's PM Renzi sees 2014 deficit at 2.9% of GDP – According to sources, Italian Prime Minister Matteo Renzi said that Italy will post a budget deficit of 2.9% of GDP in 2014 without the need for additional fiscal tightening. Renzi said that the country would not breach the European Union's deficit limit of 3% of GDP despite the fact that the economy fell back into recession after contracting 0.2% in the second quarter of 2014. Renzi and Economy Minister Pier Carlo Padoan have repeatedly said that Italy would respect the EU's deficit limits without the need for a supplementary budget, but they have not given a specific new forecast. Italy's current deficit forecast for 2014 issued in April is 2.6%. But the target, as well as the official growth estimate of 0.8%, is expected to be revised when the government presents its new financial planning document in September. (Reuters)  Europe's fragile economy put to test as Ukraine, Iraq sour mood – Investors will gauge the strength of the Euro zone's fragile economy this week as escalating conflicts in Ukraine and Iraq darken the mood globally. In stark contrast to the US and Britain, which are growing strongly, the economic output in the Euro bloc is likely to have all but ground to a halt in the three months to June. Its star economy, Germany, is losing momentum and Italy is sliding back into recession. The growing sanctions fight between Russia and the West over Moscow’s backing of rebels in Ukraine and US air strikes to block Islamist militants in Iraq are also upsetting the markets. Recently the European Union announced the economic output data for the 18 countries in the Euro zone for the April-June quarter, and Germany will reveal its own GDP for the same period. By these yardsticks, neither Germany nor the wider Euro zone are expected to see much improvement in the first three months of the year. And to compound matters, the tit-for-tat sanctions between Moscow & the European Union and fears that Russia could even invade eastern Ukraine are already sapping business confidence and will eat into paltry economic growth later this year. Not only does Moscow supply about a third of the European Union's gas needs, trade ties in other areas between Russia and Europe run deep. (Reuters)  Russian economy stalls as Putin reprisal risks spillovers – Russia’s economic growth slumped to the weakest in five quarters, underlining the risks to a recovery in the region as President Vladimir Putin retaliates after penalties imposed over the deepening conflict in Ukraine. The Federal Statistics Service said the GDP advanced 0.8% in 2Q2014 from a year earlier after a 0.9% growth in 1Q2014, citing preliminary data. The Economy Ministry in Moscow had projected a 1.1% expansion.
  4. 4. Page 4 of 6 According to analysts surveyed by Bloomberg, the GDP growth in Poland, Hungary and the Czech Republic probably slowed during the April-June period on a quarterly basis. The economies of former Soviet satellites are getting caught up in the crossfire of sanctions, compounding months of sagging Russian demand for their exports, after Putin slapped import bans on an array of foods last week. The fallout is ricocheting, with Finland, Poland and Lithuania planning to ask the European Union for compensation to ease the economic pain. (Bloomberg)  China's biggest reinsurer plans IPO of up to $2bn – China Reinsurance Corp. (China Re), the country's biggest reinsurer, is planning a Hong Kong IPO of up to about $2bn in 1H2015, the latest evidence of Beijing's efforts to reform its state-owned financial firms. The company is working with UBS AG and HSBC Holdings Plc on preparations for the IPO. The company, whose businesses span from life reinsurance to wealth management, has a near monopoly on the domestic reinsurance market. China's market also is home to a number of smaller domestic firms and global reinsurers, including Munich Re, the world's biggest reinsurer by premium income, and Zurich-based reinsurer Swiss Re. (WSJ) Regional  Egypt GOEIC: Saudi Arabia biggest importer of Egyptian products – According to Egypt’s General Organization for Export and Import Control (GOEIC), Saudi Arabia has emerged as the number one receiver of Egyptian exports during the first five months of 2014 with exports reaching Egyptian pound 6.38bn. Italy was the second top recipient of Egyptian exports, while Turkey and the US were placed third and fourth, respectively. (GulfBase.com)  Saudi e-commerce market to hit $13bn in 2015 – According to research carried out by a Dubai-based web design and development company PixHear, Saudi Arabia’s e-commerce market will reach $13.3bn in 2015. The research revealed that the online retail market is considered to be developed if at least 8.5% of the country’s total retail is done online and Saudi Arabia is getting closer to this target, with its online retail expected to account for up to 8% of its total retail market in 2015. The profits are expected to come from 25% of Saudi internet users, who are already active in e-commerce. (GulfBase.com)  NCB opens nine money transfer outlets – National Commercial Bank (NCB) has opened nine new money transfer outlets all over Saudi Arabia taking the total number of outlets to 66. The transfer transactions have reached 2.5mn in 2014. The move comes within NCB’s framework to expand its banking businesses and increase its client database, especially those interested in money transfer transactions. (GulfBase.com)  Saudi CMA approves investment fund – The Saudi Capital Market Authority’s (CMA) board of commissioners issued approval to Audi Capital Company to offer the Audi IPO Fund. (Tadawul)  Vela vessel transferred to Bahri's ownership – National Shipping Company of Saudi Arabia (Bahri) announced that Almizan Star, one of the VLCC vessels in the Vela fleet, was transferred to Bahri's ownership on August 11, 2014 and its name was changed to Khuzama. The remaining Vela vessels shall be transferred to Bahri on a staggered basis according to an agreed upon vessel delivery schedule with Vela and is expected to be completed before 2014-end. (Tadawul)  Chemanol’s Paraformaldehyde fire unit has financial impact of SAR3mn – Further to its earlier announcement about the limited fire incident at the Paraformaldehyde unit in Jubail Industrial City, Methanol Chemicals Company (Chemanol) said the total financial impact resulting from the incident is about SR3mn, which will be reflected in the financial results of 3Q2014 and 4Q2014. Concerning the insurance coverage, the company will apply the insurance policy of its plants to cover the losses occurred from the incident. The temporary shutdown of the Paraformaldehyde unit during the coming period will have no effect on the operations of other plants, which are running normally. (Tadawul)  Revenues of Saudi’s listed telecom, IT firms hit SR19.3bn in 2Q2014 – According to a report by published by Al-Riyadh daily, the total revenues of the listed Saudi telecom and IT firms touched SR19.34bn in 2Q2014, whereas the revenue costs reached SR8.42bn, thus bringing the gross revenues margin to SR10.91bn, or 56% of the overall revenues of the sector. Meanwhile, the telecom and IT sector posted operating profits of SR4.05 billion in 2Q2014, or 21% of the total revenue. The 1H2014 profits of the sector grew by 44% to SR7.24bn as compared to SR5.02bn in 1H2013. After deduction of expenses, the non-operating revenues, and taxes, net profits of the sector stood at SR3.84bn, or 20% of the quarterly revenues. (GulfBase.com)  Gulftainer selects Switzerland-based Nexthink to support its growth targets – Port management and logistics company, Gulftainer through its partner Anzema has selected Switzerland- based Nexthink to support its ambitious growth targets by enhancing its IT infrastructure. Gulftainer aims to grow its global footprint to reach 35 terminals across 5 continents and handle 18mn twenty-foot equivalent unit (TEUs) by 2020. (GulfBase.com)  UK ONS: UAE-UK trade at AED26.19bn in 1H2014 – According to the UK Office for National Statistics (ONS), the total trade exchange between the UAE and the UK stood at AED26.19bn in 1H2014 as compared to AED27.91bn in 1H2013. UAE’s commodity exports to the UK fell by around 19% to AED7.33bn in 1H2014 as compared to AED9.06bn in 1H2013. The total value of the UAE imports from the UK in 1H2014 stood at the same level recorded in 1H2013 at around AED18.86bn. By this, the deficit in the UAE balance of trade with the UK rose by around 18% to AED11.52bn in 1H2014 as compared to AED9.8bn in 1H2013. (GulfBase.com)  Citymax Hotels to add 700 rooms in UAE by 2017 – UAE- based Citymax Hotels is set to add 700 hotel rooms by 2017 with three new projects currently under development. The first of the hotels to open will be located in Al Barsha, and will feature 120 rooms. The next will be Citymax Hotels Ras Al Khaimah, located by the creek in the Al Nakheel area of the emirate, while the last hotel will be in Dubai’s Business Bay – all these hotels will set new standards within the budget hotel category. (Bloomberg)  Etihad Cargo to launch freight services to Moscow – Etihad Cargo, the freight business of Etihad Airways will begin twice weekly freighter services between Abu Dhabi and Moscow from August 12, 2014. Etihad will operate an Airbus A330-200F freighter, with a capacity of 64 tones between Abu Dhabi International and Moscow Domodedovo airports. (Bloomberg)  DSG enhances direct debit service – Emirates NBD and Emirates Islamic Bank (EIB) are included by Dubai Smart Government (DSG) into its direct debit service, which is heavily used for ePay and settling of Dubai government fees and services. (GulfBase.com)  Jafza cuts price on AED2.2bn loan – Jebel Ali Free Zone FZE (Jafza), a business park operator in Dubai, is cutting the price on an AED2.2bn Islamic loan by half as funding costs decline. The
  5. 5. Page 5 of 6 interest rate on the loan for the company will be reduced to 150 basis points, or 1.5% points, over the Emirates interbank offered rate from 300 basis points over the measure. Jafza raised AED4.4bn from the eight-year amortizing loan in 2012 at a margin of 425 basis points over Eibor and has paid down half the facility. The original margin on the loan was cut by 125 basis points in 2013. (Bloomberg)  ACC wins AED147mn Emaar Square project in Jeddah – Arabian Construction Company (ACC) has been awarded an AED146.9mn contract to develop the commercial district Emaar Square in Jeddah. Emaar Middle East, a subsidiary of Emaar Properties has awarded the contract for the development of its Jeddah Gate community project. Additionally, ACC had bagged two new Emaar contracts in the downtown Dubai area. ACC will construct the three buildings in Jeddah with a total built-up area of 45,000 square meters. (GulfBase.com)  RAK Ceramics plans to exit construction business, to focus on production – Ras Al Khaimah Ceramics Company (RAK Ceramics) is planning to exit businesses, including construction as it focuses on its main operations. This divestment will help to reduce its non-core businesses. (Bloomberg)  APWC announces results of MRC’s shares acquisition – Agility Public Warehousing Company (APWC) announced that after the end of the acquisition offer period on Metal Recycling Company’s (MRC) shares, the preliminary percentage of the shareholders who participated in this deal is 9.896%. The company is currently finalizing the remaining process so that they can transfer the shares. (DFM)  Bank Muscat ranked 41st on Arab Forbes list – Bank Muscat has topped 38 Omani companies ranked in the Forbes Top 500 Companies in the Arab World 2014, way ahead of the second Omani company, which was ranked 84th among the other top 500 companies. (GulfBase.com)  TMK GIPI bags PDO order – TMK Gulf International Pipe Industry (TMK GIPI), a part of TMK was recently awarded a 18,400MT OCTG (threaded and coupled casing pipes) order from Petroleum Development Oman (PDO). (GulfBase.com)  Oman Air appoints new CEO – Oman Air has appointed Paul Gregorowitsch as its new Chief Executive Officer (CEO) to oversee the airline’s second major phase of expansion. He will oversee the delivery of the first of 20 aircraft on order including, six Boeing B787 Dreamliners. (GulfBase.com)  Oman MoTC floats another tender for building Batinah Expressway – Oman’s Ministry of Transport and Communications (MoTC) has floated another tender package (package tenth) for building the ambitious Batinah Expressway project. The OMR1bn project is expected to be completed tentatively by 2016 and will serve as a new all-weather, eight lane superhighway extending from Muscat to Khatmat Malaha on Oman's border with the UAE. (GulfBase.com)  KHCB launches new air miles campaign – Khaleeji Commercial Bank (KHCB) has launched a consumer finance campaign with customers set to receive Gulf Air air miles equivalent to the finance amount. Finance of up to BHD200, 000 is available under the campaign, which will run till September 27, 2014. The finance is fully Shari’ah-compliant and customers are entitled to a grace period of 120 days. (GulfBase.com)
  6. 6. 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 6 of 6 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 200.0 210.0 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 QE Index S&P Pan Arab S&P GCC 0.2% 0.5% 0.5% 0.0% (0.4%) 1.1% 1.7% (0.6%) 0.0% 0.6% 1.2% 1.8% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,308.55 (0.2) (0.2) 8.5 DJ Industrial 16,569.98 0.1 0.1 (0.0) Silver/Ounce 20.02 0.6 0.6 2.8 S&P 500 1,936.92 0.3 0.3 4.8 Crude Oil (Brent)/Barrel (FM Future) 104.68 (0.3) (0.3) (5.5) NASDAQ 100 4,401.33 0.7 0.7 5.4 Natural Gas (Henry Hub)/MMBtu 3.95 0.8 0.8 (9.1) STOXX 600 329.36 1.4 1.4 0.3 LPG Propane (Arab Gulf)/Ton 103.63 1.0 1.0 (18.1) DAX 9,180.74 1.9 1.9 (3.9) LPG Butane (Arab Gulf)/Ton 122.13 1.3 1.3 (10.0) FTSE 100 6,632.82 1.0 1.0 (1.7) Euro 1.34 (0.2) (0.2) (2.6) CAC 40 4,197.70 1.2 1.2 (2.3) Yen 102.19 0.1 0.1 (3.0) Nikkei 15,130.52 2.4 2.4 (7.1) GBP 1.68 0.1 0.1 1.4 MSCI EM 1,061.41 1.5 1.5 5.9 CHF 1.10 (0.1) (0.1) (1.5) SHANGHAI SE Composite 2,224.65 1.4 1.4 5.1 AUD 0.93 (0.1) (0.1) 3.9 HANG SENG 24,646.02 1.3 1.3 5.7 USD Index 81.47 0.1 0.1 1.8 BSE SENSEX 25,519.24 0.8 0.8 20.5 RUB 35.94 (0.7) (0.7) 9.3 Bovespa 56,613.32 1.9 1.9 9.9 BRL 0.44 0.3 0.3 3.9 RTS 1,203.67 2.8 2.8 (16.6) 188.8 161.8 145.8