11 June Daily market report


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11 June Daily market report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index declined 0.4% to close at 12,912.8. Losses were led by the Telecoms and Real Estate indices, declining 2.3% and 1.0% respectively. Top losers were Ezdan Holding Group and Ooredoo, falling 3.4% and 3.0% respectively. Among the top gainers Qatar Navigation rose 2.7%, while Al Ahli Bank gained 1.8%. GCC Commentary Saudi Arabia: The TASI index fell 0.3% to close at 9,871.7. The Media & Publishing index declined 5.6%, while the Hotel & Tourism index was down 1.8%. Tihama Advt. fell 10.0%, while Dallah Healthcare Co. was down 3.6%. Dubai: The DFM index declined 0.6% to close at 4,665.2. The Banking index fell 1.2%, while the Real Estate & Construction index was down 1.0%. Comm. Bank of Dubai declined 9.1%, while Arabtec Holding was down 7.8%. Abu Dhabi: The ADX benchmark index rose 0.1% to close at 4,876.5. The Inv. & Fin. Ser. index gained 1.4%, while the Real Estate index was up 0.7%. National Takaful surged 13.5%, while Sharjah Cem. & Ind. Dev. was up 6.3%. Kuwait: The KSE index gained 0.4% to close at 7,278.9. The Real Estate and Parallel Market indices rose 1.4% and 0.8% respectively. Flex Resorts & Real Estate Co. gained 7.8%, while Al Safat Real Estate Co. was up 7.0%. Oman: The MSM index rose marginally to close at 6,923.9. Gains were led by the Industrial index rising 0.2%, while other indices ended in red. Bank Sohar gained 2.1%, while Galfar Engineering & Con. was up 1.2%. Bahrain: The BHB index gained 0.7% to close at 1,456.9. The Industrial index rose 2.6%, while the Commercial Banking index was up 0.7%. Al Baraka Banking Group gained 3.5%, while Aluminium Bahrain was up 2.7%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar Navigation 92.40 2.7 63.3 11.3 Al Ahli Bank 51.10 1.8 5.8 20.8 Qatar Industrial Manufacturing Co. 47.00 1.7 28.1 11.5 Widam Food Co. 58.60 1.0 16.9 13.3 Gulf International Services 90.80 1.0 516.4 86.1 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Masraf Al Rayan 53.00 (1.5) 2,875.9 69.3 Vodafone Qatar 20.20 (0.2) 2,334.8 88.6 United Development Co. 24.90 (2.5) 2,047.5 15.7 Ezdan Holding Group 21.60 (3.4) 1,462.7 27.1 Barwa Real Estate Co. 41.90 (0.2) 665.8 40.6 Market Indicators 11 Jun 14 10 Jun 14 %Chg. Value Traded (QR mn) 659.9 779.1 (15.3) Exch. Market Cap. (QR mn) 702,000.0 706,788.8 (0.7) Volume (mn) 14.9 17.9 (16.6) Number of Transactions 7,677 9,144 (16.0) Companies Traded 43 42 2.4 Market Breadth 16:24 12:25 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 19,255.78 (0.4) (2.4) 29.8 N/A All Share Index 3,265.74 (0.4) (2.0) 26.2 15.7 Banks 3,139.19 (0.1) (2.8) 28.5 15.6 Industrials 4,282.82 (0.5) (0.8) 22.4 16.7 Transportation 2,246.76 1.1 (1.7) 20.9 14.4 Real Estate 2,733.84 (1.0) (2.3) 40.0 13.7 Insurance 3,403.56 (0.0) 2.0 45.7 9.0 Telecoms 1,777.34 (2.3) (3.6) 22.3 24.5 Consumer 6,800.48 (0.3) (2.2) 14.3 26.7 Al Rayan Islamic Index 4,331.74 (0.6) (2.7) 42.7 18.8 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Albaraka Banking Gr. Bahrain 0.90 3.5 10.6 26.9 Aluminium Bahrain Bahrain 0.46 2.7 84.0 (13.1) Qatar Navigation Qatar 92.40 2.7 63.3 11.3 Kuwait Finance House Kuwait 0.81 2.5 3,827.6 14.4 Nat. Bank of Abu Dhabi Abu Dhabi 15.50 2.3 3,423.8 22.7 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Tihama Saudi Arabia 171.50 (10.0) 7.4 56.3 Com. Bank Of Dubai Dubai 6.00 (9.1) 230.7 39.2 Abu Dhabi Nat. Hotels Abu Dhabi 3.00 (8.8) 1,221.5 (3.2) Arabtec Holding Co. Dubai 4.50 (7.8) 222,083.1 119.5 DP World Ltd. Dubai 20.00 (4.7) 472.5 12.9 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% Ezdan Holding Group 21.60 (3.4) 1,462.7 27.1 Ooredoo 147.50 (3.0) 78.7 7.5 United Development Co. 24.90 (2.5) 2,047.5 15.7 Salam International Investment Co 16.18 (2.2) 551.6 24.4 Qatar German Co for Medical Dev 14.94 (2.0) 53.5 7.9 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Masraf Al Rayan 53.00 (1.5) 153,264.6 69.3 United Development Co. 24.90 (2.5) 51,208.3 15.7 Gulf International Services 90.80 1.0 47,028.4 86.1 Vodafone Qatar 20.20 (0.2) 46,938.8 88.6 QNB Group 183.00 0.9 43,807.7 6.4 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* 12,912.81 (0.4) (2.4) (5.7) 24.4 181.27 192,839.4 16.1 2.2 3.9 Dubai 4,665.24 (0.6) (8.5) (8.3) 38.4 497.37 92,530.1 18.7 1.8 2.2 Abu Dhabi 4,876.49 0.1 (3.5) (7.2) 13.7 177.77 136,081.4 14.4 1.8 3.4 Saudi Arabia 9,871.68 (0.3) 0.1 0.5 15.7 2,252.61 534,357.8 19.7 2.4 2.9 Kuwait 7,278.89 0.4 (0.8) (0.2) (3.6) 76.65 113,852.2 16.5 1.1 3.8 Oman 6,923.91 0.0 (0.4) 1.0 1.3 25.84 25,078.2 12.5 1.7 3.8 Bahrain 1,456.90 0.7 (0.3) (0.2) 16.7 0.26 53,872.3 11.4 1.0 4.7 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 12,850 12,900 12,950 13,000 13,050 13,100 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 declined 0.4% to close at 12,912.8. The Telecoms and Real Estate indices led the losses. The index fell on the back of selling pressure from non-Qatari shareholders despite buying support from Qatari shareholders.  Ezdan Holding Group and Ooredoo were the top losers, falling 3.4% and 3.0% respectively. Among the top gainers Qatar Navigation rose 2.7%, while Al Ahli Bank gained 1.8%.  Volume of shares traded on Wednesday fell by 16.6% to 14.9mn from 17.9mn on Tuesday. Further, as compared to the 30-day moving average of 27.5mn, volume for the day was 45.7% lower. Masraf Al Rayan and Vodafone Qatar were the most active stocks, contributing 19.3% and 15.6% 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 06/11 US MBA MBA Mortgage Applications 6 June 10.30% – -3.10% 06/11 UK ONS Average Weekly Earnings 3M/YoY April 0.70% 1.20% 1.90% 06/11 UK ONS Weekly Earnings ex Bonus 3M/YoY April 0.90% 1.20% 1.30% 06/11 UK ONS ILO Unemployment Rate 3Mths April 6.60% 6.70% 6.80% 06/11 UK ONS Employment Change 3M/3M April 345K 270K 283K 06/11 Spain INE House transactions YoY April 5.30% – 22.80% 06/11 Japan Bank of Japan Domestic CGPI MoM May 0.30% 0.10% 2.90% 06/11 Japan Bank of Japan Domestic CGPI YoY May 4.40% 4.10% 4.20% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  MDPS: Qatar inflation rises 3.4% in May on rent, fuel – Qatar’s cost of living based on consumer price index (CPI), rose 3.4% YoY in May 2014 mainly on rising rents and costlier furniture, garments, transport & entertainment. The Ministry of Development Planning & Statistics (MDPS) said that the CPI was up 0.5% as compared to April 2014. The rent, fuel & energy group (weight of 32.2% in the CPI basket) recorded an increase of 7% YoY in May 2014 and was up 0.6% from April. MDPS figures showed that after eliminating the effect of rent, the overall index was up 0.5% from the previous month and 2.1% YoY. The transport & communication group (20.5% weight), witnessed a surge of 2.6% YoY in May 2014. It was up 1.6% from the April level as Woqod had increased the retail diesel prices by 50%. According to QNB Group’s projection, the country’s inflation is expected to rise to 3.4% in 2014 as the rapidly expanding population should raise domestic inflation (primarily through the rental component), offsetting lower foreign inflation (primarily from lower international food prices). (QNB Group, Gulf-Times.com)  Qatar ICT market to reach QR24.7bn by 2016 – The Minister of Information & Communications Technology HE Dr. Hessa Sultan Al Jaber said that the Qatar’s information & communication technology (ICT) market is expected to grow 10% annually and reach QR24.7bn by 2016. She said driven by Qatar’s National ICT Plan 2015 and Qatar National Vision 2030, Qatar ranks 23rd among 148 countries in the 2014 World Economic Forum’s Networked Readiness Index and fourth in terms of government usage of ICT. (Peninsula Qatar)  Cabinet approves draft decisions in weekly Cabinet meeting – The weekly Cabinet meeting presided by HE the Prime Minister Sheikh Abdullah bin Nasser bin Khalifa al-Thani, approved a draft decision by the Minister of Economy & Commerce for setting the maximum prices of some items during the holy month of Ramadan. The Cabinet also issued a draft law excepting the railway network project from the application of the provisions of the Law No 4 of 1985 on the organization of buildings after being briefed on the recommendation of the Advisory Council on the draft law. Further, the Cabinet approved a draft decision extending the exemption of Ras Girtas Power Company from income tax. It also approved the addition of a representative of the Ministry of Youth & Sports to the permanent committee on drugs and intoxicants, and the national committee on traffic safety. (Gulf-Times)  StanChart sets stable credit outlook for Qatar on LNG lead – Standard Chartered Bank (StanChart) sees a stable credit outlook for Qatar, reflecting the country’s dominant position in the global liquid natural gas (LNG) market. StanChart said buoyed by a strong hydrocarbon sector, Qatar has built up significant external and fiscal cushions. While gas-market dynamics are changing, StanChart does not foresee an immediate threat to Qatar’s strong credit metrics, particularly given its very low cost of production. After an era of LNG-led double-digit growth, Qatar is entering a moderate growth phase that is likely to be driven by the non-hydrocarbon sector as the country prepares to host the 2022 FIFA World Cup. Strong fundamentals and a lack of supply have supported Qatar’s sovereign spreads, making this a fairly defensive segment. StanChart no longer sees a strong relative-value argument in support of Qatar sovereign paper on a rating-adjusted basis. In the bank’s views, Qatari financials and quasi-sovereign bonds offer better value. (Gulf-Times.com)  GDI wins 2 land rig deals worth QR1.1bn from QP – Gulf Drilling International (GDI) – a wholly-owned subsidiary of Gulf Overall Activity Buy %* Sell %* Net (QR) Qatari 57.68% 55.34% 15,418,203.44 Non-Qatari 42.32% 44.65% (15,418,203.44)
  3. 3. Page 3 of 6 International Services (GISS) – has bagged two contracts collectively worth QR1.1bn from Qatar Petroleum (QP) for providing land rig services. The new contracts with a term of five years each will cover services to be performed by two new custom designed land rigs (GDI-7 and GDI-8), which GDI is in the process of acquiring from a US-based builder. GDI-8 will be GDI’s largest land rig, and at 3000HP, it will have the capability of drilling deeper wells and executing extended reach wells to a much greater distance. Construction of the two new land rigs will soon commence and the rigs are expected to be placed into service during 2H2015. (Gulf-Times.com)  QIBK in talks to acquire stake in ASYAB – Qatar Islamic Bank (QIBK) is in talks to acquire a stake in Turkey-based Asya Katilim Bankasi (ASYAB). Goldman Sachs Group is acting as the exclusive financial adviser to ASYAB on the transaction. In March 2014, ASYAB had announced that it had commenced talks with QIBK for a strategic partnership, while QIBK was interested in acquiring a stake in ASYAB. (Bloomberg)  Hilton launches Curio brand in Mall of Qatar – Hilton Worldwide has launched its new hotel brand, ‘Curio-A Collection by Hilton’, in the Middle East with the signing of a hotel in Mall of Qatar. The 207-room hotel will feature two upscale restaurants, a lobby lounge, two outdoor pools, a fitness center, two meeting rooms and a banquet hall. The hotel is expected to open in 2016. (Bloomberg) International  US healthcare data weaker than expected; budget deficit shrinks to $130bn in May – The US Commerce Department's quarterly services survey (QSS) showed that healthcare outlays were not as strong as the government had assumed earlier. The department reported that the US economy contracted at a 1.0% annual rate during January-March 2014. However, with healthcare spending data now in hand, economists say growth probably declined at a rate of at least 1.7%. The government had previously estimated that healthcare spending contributed one percentage point to growth, but economists said the QSS suggested that it added only about 0.7 percentage points. If the first-quarter’s GDP is revised sharply lower, economists could trim their growth estimates for 2014, which had been dubbed as a break-out year. Meanwhile, according to data released by the Treasury Department, the US deficit shrank more than 6% from a year earlier to $130bn in May 2014 as compared to $139bn in May 2013. The latest results brought the year-to-date deficit to $436bn as compared to $626bn on a YoY basis. (Reuters)  UK unemployment falls to lowest since 2009, wage growth weak – Britain's labor market recovery gathered speed as a record number of people found work and drove unemployment to its lowest level in more than five years in the three months to April. Pay growth slowed sharply but the Office for National Statistics suggested it was largely a blip after the April 2013 figure was boosted by delayed bonus payments. Nonetheless, some economists said weak earnings suggested that Britain's jobs recovery could carry on without pushing up inflation. The Bank of England says there is room for further growth in the economy before it starts raising interest rates, although some of its policymakers have made a growing case for a rate hike. The jobless rate fell to 6.6% between February and April – its lowest since the three months through January 2009. That was down from 6.8% in the first three months of this year and below the 6.7% rate expected in a Reuters poll. (Reuters)  Eurozone agrees on direct bank recapitalization framework – Eurozone governments have agreed that the bloc's bailout fund will be able to help recapitalize failing banks later this year, which have already written off 8% of their liabilities. European Union leaders agreed two years ago that the European Stability Mechanism (ESM) must have the option of directly buying a stake in a bank to break the 'doom loop' that binds indebted governments to unstable banks they are trying to prop up. The ESM’s direct bank recapitalization is designed as the last resort option. The Chairman of Eurozone finance ministers, Jeroen Dijsselbloem said the instrument may be activated in case a bank fails to attract sufficient capital from private sources and if the concerned ESM member is unable to recapitalize it. The ESM instrument's capacity has been capped at €60bn. (Reuters)  BoJ mulls keeping big balance sheet after target – The Bank of Japan (BoJ) officials are considering maintaining a large balance sheet for the central bank even after it achieves its inflation target, which will reduce the risk of a surge in long-term bond yields. Under the proposed strategy, the BoJ would use cash from maturing securities in its portfolio to buy long-term government debt. BoJ Governor Haruhiko Kuroda and his colleagues are yet to meet their inflation target, and have pledged to continue asset purchases until consumer prices are rising at a 2% pace. The possibility of a permanently large balance sheet – now amounting to more than half the size of the Japanese economy – may become a global legacy of unprecedented stimulus measures. The BoJ discussions are happening side-by-side with the US Federal Reserve’s preparations to avoid an exit strategy of asset sales. (Bloomberg)  China pledges spending and lower taxes in growth effort – The Chinese State Council said that the government will boost public investment in constructing railways, highways, waterways, and aviation network in the Yangtze River basin, as well as reduce taxes for some utility companies by a total of about CNY24bn a year. In a separate statement, the People’s Bank of China said that it will encourage banks to lend more to exporters to boost shipments. The bank reiterated plans to promote development of direct trading between the Chinese yuan and other currencies. The steps are aimed at bolstering slowing economic growth by cutting taxes, spending more on developing the Yangtze River region and expanding financing for exporters. The cabinet also said that the development of the Yangtze River region will stimulate growth in an area with a fifth of China’s landmass and 600 million people. (Bloomberg) Regional  OPEC retains its output target satisfied by crude prices – The OPEC, which supplies about 40% of the world’s crude, has kept its production target unchanged at 30mn bpd. Diezani Alison-Madueke, Nigeria’s Petroleum Minister said the OPEC reaffirmed the ceiling in its fifth consecutive meeting. The group forecasts demand for its crude of 30.4mn bpd in the coming six months, while its 12 members produced 29.6mn bpd in April 2014. OPEC nations representing 94% of the group’s output said before the meeting that they were at ease with supply and demand in global oil markets. While the formal limit remains unchanged, the burden will fall on Saudi Arabia to increase its output for meeting higher demand in the second half as political turmoil constrains Libyan output and sanctions curb Iranian exports. Meanwhile, the International Energy Agency (IEA) recommended a significant rise in OPEC production to meet its forecast of demand for the group’s crude of 30.7mn bpd in 2H2014. IEA data show that oil inventories in advanced nations were at 2.62bn barrels in April, the lowest for that month since 2008, the year Brent reached a record $147.50 a barrel. (Gulf- Times.com)
  4. 4. Page 4 of 6  HSBC names MENA head of global banking & markets – HSBC Holdings has named Georges Elhedery as head of global banking and markets for the MENA region, effective immediately. Elhedery has worked for HSBC since 2005. (Reuters)  KAEC to develop big labor housing project – King Abdullah Economic City (KAEC) has developed a 48,000 square meters plot to build a housing project consisting of 5,000 bed spaces for the workforce employed in the Industrial Valley. The village will begin project delivery by 1Q 2015. (GulfBase.com)  Saudi CMA: listing of Umm Al-Qura Cement on June 12 – The Saudi Capital Market Authority (CMA) has announced that the listing and trading of Umm Al-Qura Cement Company will commence on June 12, 2014 under the cement sector with the symbol 3005 and a fluctuation limit of 10%. (Tadawul)  BSF to complete SR2bn Sukuk by June 2014 – Banque Saudi Fransi (BSF) is about to complete a SR2bn capital-boosting Sukuk issue by June 2014. The Islamic bond, which boosts BSF’s Tier 2 supplementary capital, has a 10-year lifespan and includes a clause, which allows the bank to repay the deal after five years. Pricing of the instrument was at 140 basis points over the Saudi interbank offered rate (SAIBOR). BSF has chosen its own investment banking arm, Saudi Fransi Capital to arrange the transaction. (GulfBase.com)  Shary Rent-A-Car exploring stake sale – According to sources, Saudi car rental firm Shary Rent-A-Car is exploring the sale of a majority stake in the business. The company is attracting interest from strategic and private equity buyers. Shary is considering a sale after shelving plans for an IPO on the Tadawul exchange. In 2013, Shary had appointed HSBC Holdings to help arrange the sale process. (Bloomberg)  UAE in initial accord with US to fight tax evasion – The UAE’s finance ministry has reached an agreement in principle to cooperate with the US in its fight against tax evasion. Starting from July 1, 2014, the US Foreign Account Tax Compliance Act (FATCA) will be implemented across institutions in nearly 70 countries will work under its rules. The law demands that the foreign banks, investment houses and others provide information to US authorities on accounts held by US citizens and firms. (GulfBase.com)  Dubai Drydocks completes world’s largest converter platform – Dubai-based ship builder Drydocks World has announced the successful completion of its pioneering high- voltage, direct current (HVDC) converter platform DolWin beta, said to be the world’s largest in terms of capacity. The project is a result of the collaboration between ABB and Aibel, in which ABB has the overall contract responsibility. The structure weighs approximately 23,000 tons and is around 100 meters long, 70 meters wide and 90 meters in height. DolWin beta has been built for a large wind farm cluster in the German sector of the North Sea and will be located in the DolWin cluster 45 km off the coast. The platform will have a generating capacity of more than 900 MW. It will receive AC power from several wind farms and convert it into DC before sending it onshore via subsea cables. The platform will stand on the seabed at a depth of around 30 meters. (GulfBase.com)  Aabar Investments cut its stake in Arabtec – Abu Dhabi’s Aabar Investments has cut its stake in Dubai builder Arabtec, the stock exchange said on Wednesday, raising questions over the state fund’s commitment to what it has seen as a strategic asset. Having failed in an earlier takeover bid, Aabar spent 827.6mn dirhams ($225.32mn) buying up 21.6% of Arabtec's shares in 2012 and later led an overhaul of the contractor’s board and senior management. Aabar's buying helped Arabtec's shares rebound. The stock hit an all-time high of 7.4 dirhams on May 15 to be up more than eight-fold since the start of 2012. But on Wednesday, Dubai's stock exchange announced Aabar had cut its stake in Arabtec to 18.85% since Sunday. Arabtec’s shares fell 7.8% on Wednesday, taking its losses to 30% percent in four days. (Bloomberg, Reuters)  Dubai Lagoon Project secures AED339mn investment – Schön Properties has secured an investment of AED339mn for the completion of Dubai Lagoon project. The investment agreement was signed with Xanadu Real Estate Development at the Lands Department. Simultaneously, an agreement between the Schön Properties and PGS Gulf Contracting Company was also signed to award a construction contract worth AED678mn to the contracting company for Dubai Lagoon project. (GulfBase.com)  Emirates cancels order for 70 A350 jets – Emirates Airline has cancelled its entire requirement of 70 A350 jets placed with Airbus. In 2007, Emirates was among the first buyers for the A350 aircraft when it placed the order for 50 A350-900 jets and 20 A350-1000 jets in 2007. The deal was worth around $16bn according to 2007 list prices. (Reuters)  ADGAS plans to increase gas production – Abu Dhabi Gas Liquefaction Company (ADGAS) has planned to increase its gas production to 2.4bn standard cubic feet (scf) per day by 2017. ADGAS’ current production stands at 2bn scf per day. (GulfBase.com)  ADNH’s VP resigns – Abu Dhabi National Hotels’ (ADNH) Vice President–Hotels & Tourism, Hamad Khalaf Ahmed Khalaf Al Otaiba has resigned from his post with effect from June 11, 2014. (ADX)  Etisalat launches $4.3bn maiden bond issue – Emirates Telecommunications Corporation (Etisalat) has launched its debut four-tranche bond worth a combined $4.27bn after further tightening the pricing across all sections. The size of the two euro tranches were €1.2bn each, while both dollar bond portions were worth $500mn each. Tightened pricing for the 7-year euro tranche was given at 80 bps over midswaps, while the 12-year euro bond was at 110 bps over midswaps. Revised guidance for the five-year dollar bond was set at 67.5 basis points over midswaps and 87.5 basis points over midswaps on the ten year offering. (Reuters)  Etihad to invest up to €1.25bn in Alitalia – Italian Transport Minister Maurizio Lupi said that Etihad Airways is prepared to invest up to €1.25bn in Alitalia over the next four years under a possible tie-up between the two carriers. Lupi said of this, €560mn would be used to buy new shares in the Italian airline and the rest would be invested in planes, design and training. Italy's flagship carrier Alitalia, which received a €500mn government rescue package last year, risks running out of cash by August, unless it can find a cash-rich partner. (Reuters)  Kuwait to end subsidies on diesel over deficit fears – Kuwaiti cabinet said that the government has decided in principle to end subsidies on diesel fuel, but will deal with any negative impact on consumers before implementing the decision. Oil Minister Ali Al Omair told parliament three weeks ago that ending subsidies on diesel would save around $1bn a year out of total subsidies of around $18bn. Diesel is currently sold at around $0.2 a litre. (GulfBase.com)  National Omani Hospitality appoints MD – The National Omani Hospitality Company has appointed Pascal Eppink as Managing Director. (GulfBase.com)
  5. 5. Page 5 of 6  $60mn antimony project in Sohar to be ready by 2016; freezone to expand – Sohar Freezone has signed a land lease agreement with a UK-led consortium for setting up a $60mn project to manufacture antimony metal and trioxide project within the freezone. The project will be commissioned by 2016. The new company called Strategic & Precious Metals Processing is being promoted by Tri-Star with a 40% ownership, Oman Investment Fund with a 40% stake and 20% stake held by Castell Investments. The project will be capable of producing 20,000 tons of refined metal ingots. Meanwhile, Sohar Industrial Port Company’s CEO, Jamal T. Aziz, sad that Sohar Freezone is set to start work on its second phase expansion. Around 23 firms have committed to set up their manufacturing or logistics center within the freezone. (GulfBase.com)  Al Anwar sells entire stake in Bank Sohar – Al Anwar Holdings has sold its entire stake of 18.85mn shares in Bank Sohar at a price of 230 baizas per share, resulting in a sale proceed of OMR4.32mn. Al Anwar has booked a profit of OMR79,086, net of brokerage on this transaction. (MSM)  Albaraka Turk hires banks to start Sukuk meetings – Turkey-based Albaraka Turk Katilim Bankasi (Albaraka Turk), a unit of Bahrain-based Al Baraka Banking Group (ABG) has hired banks to arrange meetings with investors in Asia, the Middle East and Europe on a dollar-denominated Sukuk offer. In May 2014, a company official said the issue was expected to be up to $500mn of five-year Sukuk. Albaraka Turk has hired Emirates NBD, QInvest and StanChart as joint lead managers and joint book runners. (Reuters)  Gulf Air, EMC sign technology deal – Gulf Air has signed a three-year agreement with US-based EMC to meet the airline’s IT storage requirements, while realizing both organizations’ mission of utilizing state-of-the-art technologies to boost business. (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 sahbi.alkasraoui@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 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 QE Index S&P Pan Arab S&P GCC (0.3%) (0.4%) 0.4% 0.7% 0.0% 0.1% (0.6%)(0.8%) (0.4%) 0.0% 0.4% 0.8% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,261.06 0.1 0.6 4.6 DJ Industrial 16,843.88 (0.6) (0.5) 1.6 Silver/Ounce 19.20 0.0 0.9 (1.4) S&P 500 1,943.89 (0.4) (0.3) 5.2 Crude Oil (Brent)/Barrel (FM Future) 109.95 0.4 1.2 (0.8) NASDAQ 100 4,331.93 (0.1) 0.2 3.7 Natural Gas (Henry Hub)/MMBtu 4.50 (1.5) (3.2) 3.5 STOXX 600 347.74 (0.6) 0.1 5.9 LPG Propane (Arab Gulf)/Ton 100.75 (1.0) (0.2) (20.4) DAX 9,949.81 (0.8) (0.4) 4.2 LPG Butane (Arab Gulf)/Ton 120.50 0.0 0.8 (11.2) FTSE 100 6,838.87 (0.5) (0.3) 1.3 Euro 1.35 (0.1) (0.8) (1.5) CAC 40 4,555.11 (0.9) (0.6) 6.0 Yen 102.07 (0.3) (0.4) (3.1) Nikkei 15,069.48 0.5 (0.1) (7.5) GBP 1.68 0.2 (0.1) 1.4 MSCI EM 1,056.04 (0.1) 1.1 5.3 CHF 1.11 (0.1) (0.7) (0.8) SHANGHAI SE Composite 2,054.95 0.1 1.2 (2.9) AUD 0.94 0.1 0.5 5.2 HANG SENG 23,257.29 (0.3) 1.3 (0.2) USD Index 80.79 (0.0) 0.5 0.9 BSE SENSEX 25,473.89 (0.4) 0.3 20.3 RUB 34.38 0.1 (0.1) 4.6 Bovespa 55,102.44 0.9 3.7 7.0 BRL 0.45 (0.6) 0.6 5.7 RTS 1,374.94 0.4 1.2 (4.7) 185.6 153.7 140.0