Qatar stock exchange

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Daily Technical Trader – Qatar
Sunday, 11 January 2015
Stocks Covered Today
Ticker Price Target
IQCD 176.00 168.80
KCBK 22.00 22.50
QSE Index
Level % Ch. Vol. (mn)
Last 12,305.52 3.4 9.2
Resistance/Support
Levels 1
st
2
nd
3
rd
Resistance 12,350 12,430 12,800
Support 12,000 11,850 11,600
QSE Index Commentary
Overview:
The QSE Index started the year on a
weaker note, losing 0.16% from the week
before. The Index experienced a sharp fall
at the start of the week (lost 5.6%) then
recovered, creating a long legged Doji
candlestick for the week. The Index
reached the lower side of a downtrend
channel and could lose momentum from
the level; it is also trading below the SMAs
on the daily and MACD is below zero line.
On the intraday chart, the RSI reached
overbought area and touched the 61.8%
Fibonacci retracement level. The MACD
on that time frame is losing momentum as
exhibited by the Histogram turning back to
the zero level.
Expected Resistance Level: 12,350
Expected Support Level: 11,850
QSE Index (Daily)
Source: Bloomberg, QNBFS Research
QE Summary
Market Indicators 08 Jan 15 07 Jan 15 %Ch.
Value Traded (QR mn) 999.8 515.0 94.1
Ex. Mkt. Cap. (QR bn) 677.4 656.8 3.1
Volume (mn) 20.8 12.1 71.9
Number of Trans. 10,475.0 7,440 40.8
Companies Traded 41 41 0.0
Market Breadth 37:3 28:11 –
QE Indices
Market Indices Close 1D% RSI
Total Return 18,353.57 3.4 49.3
All Share Index 3,151.47 3.1 50.0
Banks 3,202.37 3.6 50.5
Industrials 4,112.96 3.4 52.5
Transportation 2,297.30 2.2 52.7
Real Estate 2,242.42 3.2 45.2
Insurance 3,800.03 1.7 50.8
Telecoms 1,414.29 1.3 47.3
Consumer 7,034.40 1.3 53.2
Al Rayan Islamic 4,130.69 3.8 50.1
RSI 14 (Over Bought)
Ticker Close 1D% RSI
RSI 14 (Over Sold)
Ticker Close 1D% RSI
QSE Index (30min)
Source: Bloomberg, QNBFS Research

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IQCD
Price % Ch. Volume
Last 176.00 5.39 1,003,675
Resistance/Support
Levels (QR) 1
st
2
nd
3
rd
Resistance 178.00 183.20 186.00
Support 170.00 168.80 163.00
Commentary
Overview:
IQCD’s BoD recommended QR7.00 in
cash dividends for 2014. From a technical
perspective, the price may see a decline
from its last closing. The name’s SMAs
created what is known as the Death Cross
(circled in red on the daily chart). This
cross was created by the 50SMA crossing
below the 200SMA. This is a bearish
momentum signal. The last time the name
experienced a Death Cross was the cross
between the 100SMA below the 200SMA,
the name dropped over 7.5%. Thus, we
conclude that the name will be affected by
bearish sentiment and could retreat back
to the base of the price range. It is also
worth mentioning that there is a price gap
QR171.00 and QR167.00 (denoted with
the red box on the intraday chart).
QR167.00 could be reached with the
expected drop.
Expected Price Retreat: QR168.80 –
QR167.00
(Daily)
Source: Bloomberg, QNBFS Research
(Hourly)
Source: Bloomberg, QNBFS Research

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KCBK
Price % Ch. Volume
Last 22.00 0.92 218,399
Resistance/Support
Levels (QR) 1
st
2
nd
3
rd
Resistance 22.16 22.50 23.00
Support 21.50 21.00 20.00
Commentary
Overview:
The bank has been trading in a tight price
range after creating a medium-term
Symmetrical Triangle price formation. The
price reached the upper side of the
triangle. Strong resistance might be
experienced there as the price retreated
every time it reached that side of the
triangle. All indicators show neutrality to
the momentum which a typical
characteristic to the price range. If the
price breaks above QR22.16, then we
may have an uptick on the name.
Expected Target Price: QR22.50 –
QR23.00
Only a sustained break above QR22.16
could swing the price upward to the
projected target.
Suggested Stop-Loss Price: QR21.90
A break below the level proves the
resistance is still intact and price drop
could take place, expected to reach the
lower side of the triangle at around
QR21.50.
(Daily)
Source: Bloomberg, QNBFS Research
(Hourly)
Source: Bloomberg, QNBFS Research

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Intra-day Fibonacci Support and Resistance Levels Daily Moving Averages
Support Levels Resistance Levels
Ticker Close 3
rd
2
nd
1
st
Pivot 1
st
2
nd
3
rd
50 SMA 100 SMA 200 SMA
QSE Index 12,305.52 11,983.40 12,082.31 12,143.42 12,242.33 12,341.24 12,402.35 12,501.26 12,857.95 13,291.44 12,981.14
Total Return 18,353.57 17,873.12 18,020.65 18,111.79 18,259.32 18,406.85 18,497.99 18,645.52 19,177.51 19,824.06 19,354.12
All Share 3,151.47 3,074.64 3,098.22 3,112.78 3,136.35 3,159.93 3,174.49 3,198.06 3,270.87 3,370.09 3,296.58
Al Rayan Islamic 4,130.69 4,007.28 4,044.53 4,067.54 4,104.79 4,142.04 4,165.05 4,202.30 4,313.95 4,489.39 4,335.24
Banks & Financials Services
MARK 43.90 41.17 42.05 42.59 43.47 44.35 44.89 45.77 47.16 51.15 50.72
CBQK 68.00 65.87 66.67 67.16 67.97 68.77 69.26 70.07 70.48 70.81 68.89
DHBK 56.30 55.03 55.49 55.77 56.23 56.69 56.97 57.43 57.39 58.75 59.78
QIBK 105.00 101.73 102.84 103.53 104.63 105.74 106.43 107.53 104.16 110.00 101.00
QIIK 80.50 78.03 78.84 79.33 80.13 80.94 81.43 82.23 82.76 85.60 84.12
Insurance
QATI 85.70 84.17 85.05 85.59 86.47 87.35 87.89 88.77 90.49 94.41 86.45
Consumer Goods & Services
MCGS 125.00 118.00 120.10 121.40 123.50 125.60 126.90 129.00 121.89 125.66 106.25
Industrials
IQCD 176.00 168.00 170.67 172.33 175.00 177.67 179.33 182.00 183.19 186.26 183.44
QEWS 188.50 186.30 187.41 188.09 189.20 190.31 190.99 192.10 187.17 187.54 185.70
GISS 100.00 95.67 97.77 99.07 101.17 103.27 104.57 106.67 105.62 113.28 104.55
QIGD 39.25 37.68 38.47 38.95 39.73 40.52 41.00 41.78 43.65 50.47 55.37
Real Estate
BRES 42.90 40.73 41.44 41.88 42.58 43.29 43.73 44.43 45.20 43.14 41.17
UDCD 23.80 22.87 23.18 23.36 23.66 23.97 24.15 24.45 25.01 26.99 25.97
ERES 14.70 14.43 14.55 14.62 14.74 14.86 14.93 15.05 17.06 18.28 21.32
MRDS 19.20 18.23 18.52 18.71 19.01 19.30 19.49 19.79 21.06 22.48 20.60
Telecommunication
ORDS 118.30 116.77 117.53 118.00 118.77 119.53 120.00 120.77 118.56 123.93 132.33
VFQS 15.50 15.07 15.24 15.35 15.51 15.68 15.79 15.95 17.52 19.34 18.53
Transportation
QGTS 23.00 22.59 22.72 22.81 22.95 23.08 23.17 23.31 23.32 23.84 23.39
QNNS 98.00 95.47 96.38 96.95 97.87 98.78 99.35 100.27 98.06 96.78 95.59
Source: Bloomberg, QNBFS Research; Note: Numbers in Italics denote moving averages that are above the given index level/stock price

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Definitions:
Candlestick: A chart that displays the high, low, opening and closing prices for a security in a single period. The body of the candle is made up by the opening
and the closing prices, i.e., the taller the body the greater the range between these two prices and vice versa. A colored candle denotes a closing price that is
lower than the opening price, while a white candle shows the opposite. The candlestick's shadows or wicks show the period's high and low prices and how they
compare to the opening and closing price. In general, the shape of the candle will vary upon the positions of the period's high, low, opening and closing prices.
Support: A level that could cause more buyers to step in in order to prevent the security from falling or causing the security price to head higher.
Resistance: An inverse of a support level. A resistance area or level could cause more sellers to step in in order to prevent the security from rising or causing the
security price to head lower.
SMA (Simple Moving Average): Is an arithmetic average, which calculates the average price of a security over a defined number of periods and is thus
considered a lagging indicator. SMAs used in our analysis refer to closing prices. In general, SMAs serve many purposes, such as a smoothing tool, an indicative
price direction and potential support/resistance levels.
Market Breadth: Breadth indicates the number of securities that have closed higher vs. the number of decliners in a particular exchange.
MACD (Moving Average Convergence/Divergence): Is a trading indicator, which shows changes in the strength, direction, momentum and duration of a trend in
a stock's price through a collection of three time series calculated from historical closing price data.
RSI (Relative Strength Index): Is a momentum indicator that compares a security’s price gains to its losses for a predetermined number of periods (we generally
use 14 periods). The RSI attempts to point out how a security, in relative terms, is in the overbought/oversold zone. Securities with a RSI above 70 could be
considered as overbought, and below 30 could be considered as oversold.
Pattern/Formation: Is a graphical presentation of a security’s price activity over a certain period of time. Formations come in different shapes (such as, head &
shoulders, triangles, flags, and so on). They can be used to identify potential trends, reversal of trends, price targets, entry and exit points, etc.
Fibonacci Retracements: Are horizontal lines that indicate expected areas of support/resistance for a security based on a predetermined price movement. These
levels are usually indicated by Fibonacci ratios of 23.6%, 38.2%, 50.0%, 61.8% and 100% from that particular movement.
Fibonacci Pivot and Intra-day Support/Resistance: A Pivot Point is generally used to formulate expected future support/resistance levels. From the base Pivot
Point, Fibonacci multiples of the high-low differential are added to form resistance levels and subtracted to form support levels.

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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
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indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of the investor and be based on specifically engaged investment 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. QNBFS does not make any representations or warranties as to the accuracy
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