Page 1 of 6
QE Intra-Day Movement
Qatar Commentary
The QE index declined 0.1% to close at 9,588.0. Losses were led by the
Page 2 of 6
Qatar Market Commentary
 The QE index declined 0.1% to close at 9,588.0. The Insurance
and Real Estate indice...
Page 3 of 6
share of 10% of total imports each, followed by the UAE with
7%. (QSA)
 New QE plans may double number of lis...
Page 4 of 6
 Saudi investors establish AODC with SR2.7bn capital –
Saudi investors have entered into a contract to establ...
Page 5 of 6
 Al Hilal Bank eyes 40% net profit growth in 2013 – Al Hilal
Bank, the Islamic lender owned by the Abu Dhabi ...
Saugata Sarkar Ahmed M. Shehada Keith Whitney Sahbi Kasraoui
Head of Research Head of Trading Head of Sales Manag...
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11 September Daily Market Report


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11 September Daily Market Report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index declined 0.1% to close at 9,588.0. Losses were led by the Insurance and Real Estate indices, declining 1.4% and 0.6% respectively. Top losers were Doha Insurance Co. and Qatar German Co. for Med. Dev., falling 6.5% and 2.6% respectively. Among the top gainers, Qatari Investors Group rose 5.0%, while Al Ahli Bank gained 4.8%. GCC Commentary Saudi Arabia: The TASI index fell 0.1% to close at 7,855.2. Losses were led by the Insurance and Tele. & Info. Tech. indices, declining 1.5% and 0.8% respectively. Arabian Shield fell 9.4%, while Allied Coop. Ins. was down 6.4%. Dubai: The DFM index gained 0.4% to close at 2,531.8. The Services index rose 1.8%, while the Investment & Financial Services index was up 1.5%. Dubai Financial Market gained 3.5%, while Emirates NBD was up 3.4%. Abu Dhabi: The ADX benchmark index rose 0.3% to close at 3,680.8. The Consumer index gained 2.2%, while the Industrial index was up 0.5%. Abu Dhabi Nat. Co. for B. & M. rose 8.6%, while Eshraq Properties was up 8.5%. Kuwait: The KSE index gained 1.4% to close at 7,548.3.The Real Estate index rose 2.8%, while the Oil & Gas index was up 2.5%. City Group Co. surged 15.4%, while Investors Holding Group Co. was up 10.4%. Oman: The MSM index rose 0.6% to close at 6,580.7. Gains were led by the Banking & Investment and Services & Insurance indices, rising 0.7% each. Oman Fiber Optic Co. rose 9.1%, while ONIC. Holding was up 8.3%. Bahrain: The BHB index declined 0.1% to close at 1,183.6. The Commercial Banking index fell 0.5%. Ithmaar Bank declined 4.2%, while Al Salam Bank was down 2.2%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Qatari Investors Group 30.20 5.0 1,123.9 31.3 Al Ahli Bank 55.00 4.8 0.4 12.2 Dlala Brok. & Inv. Holding Co. 21.99 3.5 84.6 (29.2) Islamic Holding Group 39.45 2.3 28.5 3.8 Gulf International Services 47.00 1.8 240.6 56.7 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% United Development Co. 21.32 (1.2) 1,267.4 19.8 Qatari Investors Group 30.20 5.0 1,123.9 31.3 Industries Qatar 151.30 (1.6) 467.9 7.3 Masraf Al Rayan 29.10 0.3 451.9 17.4 Qatar Gas Transport Co. 19.21 (0.7) 411.1 25.9 Source: Bloomberg (* in QR) Market Indicators 11 Sep 13 10 Sep 13 %Chg. Value Traded (QR mn) 300.3 690.9 (56.5) Exch. Market Cap. (QR mn) 524,493.6 525,334.1 (0.2) Volume (mn) 6.9 19.6 (65.1) Number of Transactions 3,966 7,549 (47.5) Companies Traded 38 40 (5.0) Market Breadth 11:21 40:0 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 13,698.98 (0.1) 4.2 21.1 N/A All Share Index 2,413.91 (0.2) 3.8 19.8 12.8 Banks 2,354.37 (0.1) 4.2 20.8 12.5 Industrials 3,045.35 (0.4) 3.1 15.9 11.2 Transportation 1,761.94 (0.6) 4.0 31.5 12.1 Real Estate 1,716.19 (0.6) 3.8 6.5 12.9 Insurance 2,195.62 (1.4) (0.2) 11.8 9.1 Telecoms 1,429.37 0.6 5.9 34.2 15.1 Consumer 5,768.97 (0.3) 3.1 23.5 23.7 Al Rayan Islamic Index 2,748.14 (0.3) 4.1 10.4 14.1 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% SHARACO Saudi Arabia 36.80 9.9 3,289.4 37.8 Saudi Public Transport Saudi Arabia 20.75 7.5 9,505.4 25.8 Qatari Investors Group Qatar 30.20 5.0 1,123.9 31.3 Al Ahli Bank Qatar 55.00 4.8 0.4 12.2 Investbank Abu Dhabi 2.40 4.3 15.0 48.1 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% National Real Estate Kuwait 0.16 (6.0) 1,385.7 30.0 Ithmaar Bank Bahrain 0.23 (4.2) 180.6 35.3 ADIB Abu Dhabi 4.70 (3.1) 353.1 47.8 Nat. Mobile Telecomm. Kuwait 1.94 (3.0) 2.3 (17.1) Nat. Industries Group Kuwait 0.25 (2.0) 779.9 16.8 Source: Bloomberg ( # in Local Currency) ( ## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity) Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD% Doha Insurance Co. 25.25 (6.5) 0.7 2.9 Qatar German Co. for Med. Dev. 14.36 (2.6) 52.9 (2.8) Qatar & Oman Investment Co. 13.11 (2.2) 31.3 5.8 Qatar Meat & Livestock Co. 50.00 (2.0) 211.1 (15.0) Mazaya Qatar Real Estate Dev. 11.50 (1.9) 306.1 4.5 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Industries Qatar 151.30 (1.6) 71,124.3 7.3 Qatari Investors Group 30.20 5.0 33,546.1 31.3 QNB Group 169.80 0.2 30,004.2 29.7 United Development Co. 21.32 (1.2) 27,211.1 19.8 Masraf Al Rayan 29.10 0.3 13,127.7 17.4 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* 9,587.95 (0.1) 4.2 (0.3) 14.7 103.17 144,130.8 12.1 1.7 4.8 Dubai 2,531.83 0.4 8.3 0.3 56.0 281.83 62,933.7 220.9 18.6 0.3 Abu Dhabi 3,680.80 0.3 4.0 (1.4) 39.9 141.65 106,949.5 25.7 3.6 2.0 Saudi Arabia 7,855.19 (0.1) 2.9 1.1 15.5 1,748.69 415,903.0 16.4 2.1 3.7 Kuwait 7,548.34 1.4 4.6 (1.1) 27.2 195.25 108,978.8 17.4 1.2 3.8 Oman 6,580.72 0.6 2.6 (1.7) 14.2 54.25 23,054.1 10.8 1.6 3.9 Bahrain 1,183.59 (0.1) 0.2 (0.4) 11.1 0.32 21,700.6 8.3 0.8 4.0 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 9,500 9,550 9,600 9,650 9,700 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 0.1% to close at 9,588.0. The Insurance and Real Estate indices led the losses. The index declined on the back of selling pressure from Qatari shareholders despite buying support from non-Qatari shareholders.  Doha Insurance Co. and Qatar German Co. for Med. Dev. were the top losers, falling 6.5% and 2.6% respectively. Among the top gainers, Qatari Investors Group rose 5.0%, while Al Ahli Bank gained 4.8%.  Volume of shares traded on Wednesday declined by 65.1% to 6.9mn from 19.6mn on Tuesday. Further, as compared to the 30- day moving average of 8.5mn, volume for the day was 19.6% lower. United Development Co. and Qatari Investors Group were the most active stocks, contributing 18.5% and 16.4% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Ratings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change QNB Group S&P Qatar LT Counterparty Credit Rating/ST Counterparty Credit Rating A+/A-1 A+/A-1 – Stable – Mubadala Development Co.(MDC) Fitch Abu Dhabi LT IDR/ ST IDR/ Senior unsecured rating/ MDC GMTN B.V.'s GMTN program/ MDC's euro commercial paper program AA/ F1+/AA/AA/F1 + AA/ F1+/AA/AA/F 1+ – Stable## – Ahli United Bank (AUB) Fitch Bahrain LT IDR/ ST IDR/ VR/ SR/ Senior unsecured debt/ Subordinated debt BBB+/F2/bbb+/ 2/(BBB+/F2)/B BB BBB+/F2/bbb/ 2/(BBB+/F2)/ BBB # Stable## – Ahli United Bank (Kuwait) Fitch Kuwait LT IDR/ ST IDR/ VR/ SR/ SR Floor A-/F2/bbb-/1/A- A-/F2/bbb- /1/A- – Stable## – Source: News reports (* LT - Long Term, ST - Short Term, IDR - Issuer Default Rating, SR - Support Rating, VR - Viability Rating, GMTN - Global Medium-Term Note) ( # Rating downgrade for VR) ( ## Outlook for LT IDR) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 09/11 US MBA MBA Mortgage Applications 6-September -13.50% – 1.30% 09/11 US US Census Bureau Wholesale Inventories MoM July 0.10% 0.30% -0.20% 09/11 US US Census Bureau Wholesale Trade Sales MoM July 0.10% 0.50% 0.40% 09/11 Germany Destasis CPI MoM August 0.50% 0.00% 0.50% 09/11 Germany Destasis CPI YoY August 1.90% 1.50% 1.90% 09/11 UK ONS Jobless Claims Change August -32.6K -21.0K -36.3K 09/11 UK ONS ILO Unemployment Rate 3Mths July 7.70% 7.80% 7.80% 09/11 UK ONS Employment Change 3M/3M July 80K 55K 69K 09/11 UK ONS Claimant Count Rate August 4.20% 4.30% 4.30% 09/11 Japan Bank of Japan Domestic CGPI MoM August 0.30% 0.40% 0.60% 09/11 Japan Bank of Japan Domestic CGPI YoY August 2.40% 2.40% 2.30% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  S&P affirms QNB at A+/A-1, outlook Stable – S&P has affirmed Qatar National Bank’s (QNB) A+ long-term and A-1 short-term counterparty credit ratings. The outlook is stable.  Qatar's trade surplus at QR32.9bn in July – According to the data released by Qatar's Ministry of Development Planning & Statistics (MDPS), the country's trade balance of goods showed a surplus of QR32.9bn in July 2013, indicating a decrease of 2.6% YoY. The total exports of goods decreased 1.6% YoY to QR41.3bn, whereas the value of imports went up 2.7% YoY to QR8.4bn. The exports increase was mainly from petroleum oils & oils from bituminous minerals (crude) that showed 13.5% YoY growth. However, this increase was partially offset by the drop in exports of petroleum gases & other gaseous hydrocarbons, and petroleum oils & oils from bituminous minerals (not crude). The main destination countries were Japan with a share of 28% of total exports, followed by South Korea (14%) and India (11%). Motor cars & other passenger vehicles, aircraft spare parts, and telephones sets were the main imported products in July 2013. China and the US and were the leading countries of origin with a Overall Activity Buy %* Sell %* Net (QR) Qatari 59.54% 63.77% (12,721,625.71) Non-Qatari 40.46% 36.22% 12,721,625.71
  3. 3. Page 3 of 6 share of 10% of total imports each, followed by the UAE with 7%. (QSA)  New QE plans may double number of listed firms in five years – The Qatar Financial Markets Authority’s (QFMA) Director Zain al Abdin Sharar said new capital market regulations including plans to launch a second market on the Qatar Exchange could double the number of listed companies in the country in the next five years. He added that the forecast of a sharp increase in the number of listed firms and the volume of trade on the exchange would reflect the impact of a wide- ranging capital market reform. He also said that QFMA has new rules for listing on the second market, which is for the companies that cannot meet requirements for listing on the primary market. QFMA have amended the corporate governance code for companies listed on the main market to improve the disclosure requirements. He also added that QFMA was about to issue new rules for financial adequacy for financial service firms. These will help the market to be more efficient and to protect the market against any unseen circumstances. Sharar added QFMA will soon issue new M&A rules for listed companies regarding disclosures. (  RBS to arrange $6.5bn loan facility for petrochemical plant in Qatar – UK-based Royal Bank of Scotland (RBS) has been appointed to arrange for a $6.5bn loan facility to finance a petrochemical plant in Qatar. RBS will advise on sourcing and structuring funds for the Al Karaana complex, being built by Qatar Petroleum in partnership with Royal Dutch Shell. Al Karaana is the first of two such petrochemical complexes planned for the Qatari industrial city of Ras Laffan as the country seeks to diversify from oil and gas exports. (Bloomberg)  Corniche road work to finish in November – The Public Works Authority (Ashghal) has announced that work on converting eight roundabouts and an interchange in the Corniche area into signal-controlled junctions will be completed by November 2013. Ashghal said the project, which is being executed at a cost of QR200mn, would ease traffic congestion in Doha. (  Cabinet approves standards on food packaging – Qatar’s Cabinet has approved a draft decision by the Minister of Public Health prohibiting the use of polyethylene, newspapers or other types of paper to pack food items for human consumption. The Ministerial decision had stipulated that all kinds of food for human consumption shall be in packages conforming to approved standards. The use of food & beverage cups, dishes or cutlery not conforming to the approved standards is also prohibited. (  QA Cargo inks multilateral e-AWB deal with IATA – Qatar Airways Cargo (QA Cargo) has entered in a multilateral e-air way bill (e-AWB) agreement with the International Air Transport Association (IATA), which provides a legal framework for parties to conclude cargo contracts through electronic means. This agreement will allow QA Cargo to accept e-AWB from all participating freight forwarders who have signed multilateral agreements with IATA. (AME Info) International  France to revise down 2014 growth forecast, raises deficits – France is reportedly trimming its growth forecast for 2014 from 1.2% to 0.9% and hike its budget deficit projections for this year and the next, reflecting a slower-than-hoped recovery. The government now targets a public deficit of 4.1% of GDP this year, up from an earlier forecast of 3.7% and 3.6% next year. The 2014 budget plan would show that €15bn out of the total €18bn of fiscal effort in 2014 would come from spending curbs, with the remainder from a tax rise. The government’s full budget is due to be released on September 25. (Reuters)  Portugal seeks to ease 2014 deficit goal – Portugal's Deputy Prime Minister Paulo Portas said the government is trying to persuade its EU-IMF lenders to ease the budget deficit goal set for next year to 4.5% of GDP from 4%. The Prime Minister Pedro Passos Coelho said the country may require a further reduction in the target set out under its bailout deal. In March, its lenders have already eased this year’s and next year's targets due to a steeper than expected recession in Portugal and Europe. (Reuters)  Chinese PM: Economy stable, to push ahead with reform – Chinese Premier Li Keqiang pledged to push ahead with reforms, with a change in the financial system at the center of his agenda. Li noted that the Chinese economy is stable now, but there is a need to guard against risks. Li also mentioned that China will keep its monetary policy stable even if capital markets show volatility. Li said financial reform is one of the key parts of China's economic structural reforms, noting that convertibility of the yuan currency and interest rate reform will be the focus as well. (Reuters)  Bank of Korea holds rate steady as economy strengthens – The Bank of Korea held its key interest rate steady as the economy showed resilience and attracted foreign capital, making the Korean won the best performer in Asia over the past month. The central bank has retained the seven-day repurchase rate at 2.5% for the fourth straight month. All 15 economists surveyed by Bloomberg News predicted the move. (Bloomberg) Regional  OPEC’s crude production stood at 30.28mn bpd in August – According to a survey by Platts, crude oil production from the Organization of the Petroleum Exporting Countries (OPEC) stood at 30.28mn bpd in August 2013, which is down by 60,000 bpd over July 2013. OPEC’s crude output fell as oil worker strikes and protests drove the production in Libya below the 300,000 bpd level towards the end of the month. The Libyan production decreased 440,000 bpd from July to 560,000 bpd in August. Platts said that the higher output from Saudi Arabia and Iraq was not enough to offset the Libyan production loss. Saudi Arabia boosted its output by 220,000 bpd to 10mn bpd in August, as compared to 9.78mn bpd in July, while Iraq oil output increased to 3.15mn bpd in August from 2.98mn million bpd in July. (AME Info)  GCC real estate markets set to grow in September – According to a report released by Ezdan Holding Group, the real estate markets in the GCC region countries, including Qatar are forecast to witness positive growth in September which will accelerate the recovery in the sector during 4Q2013. The report said that the sector’s positive performance was supported by the launch of many 2022 World Cup-related projects, particularly the award of Doha Metro contracts. The report also noted that, despite the summer season coinciding with the Eid Al Fitr holidays, the real estate sector continued its positive performance and achieved sales of about QR500mn in the last week of August. (Peninsula Qatar)  Saudi oil minister: Ready to meet global crude demand – Saudi Oil Minister Ali al-Naimi said the global oil market is well balanced and Saudi Arabia ready to supply whatever volume of crude is needed to meet demand. Saudi Arabia produced record high volumes of crude in August as it boosted output for the second time in two years to cushion the global oil market from supply disruptions. (Reuters)
  4. 4. Page 4 of 6  Saudi investors establish AODC with SR2.7bn capital – Saudi investors have entered into a contract to establish a new company, Al Oqair Development Company (AODC) with a capital of SR2.7bn, which aims to construct 15 kilometers of seafront project in Al Oqair. The project has already attracted major investment from a variety of investors, including SR1.4bn from the country’s Council of Ministers. Several Saudi private investors and government organizations, including the ministries of water & electricity, municipal & rural affairs, and commerce & industry are also planning to contribute to the project. The total public investment for this project is expected to exceed SR34bn and will be completed in 2016. (Bloomberg)  SAS Holding acquires 51% stake in Glowork – Saudi-based SAS Holding has acquired a 51% stake worth $16mn in Glowork, the first dedicated organization for women employment throughout the Middle East. Glowork is planning to expand its current activities by launching fitness centers for women. (  Fitch: Dubai prime property sector set for a strong start in 2014 – Fitch said that the Dubai prime property sector is set up for a strong 2014 following a vibrant 2013. Notwithstanding the positive trend, uncertainty remains a concern for the real estate sector in general as several factors and events evolve, notably Middle East instability, Dubai's bid for the World Expo 2020 and major new real estate projects that are in the pipeline. Fitch expects that retail rentals, hospitality revenues have been holding up and have shown healthy performance and growth since 2011 to date, and are in a comfortable position for another good year in 2014. Fitch added that residential prices and demand have shown recoveries in prime locations in Dubai, but secondary locations, including new projects will continue to be challenged over the medium-term. (Bloomberg)  CBRE: UAE continues to remain competitive – According to a report released by C B Richard Ellis (CBRE), the UAE has continued to remain a competitive option for international retailers despite rising rents. The average retail rental rates for Dubai stood at $114 per square feet per annum, while in Abu Dhabi it was $71 per square feet per annum. CBRE Middle East’s Head of Research & Consultancy Mat Green said that Dubai holds an edge over other established cities as it offers access to significant consumer numbers, high quality mall facilities, and cost sensitive rents even within prime centers. (AME Info)  UAE bank profits seen rising 20% in 2013, Mashreq eyeing 40% – The UAE’s Banking Federation Chairman and Mashreq Bank’s CEO Abdulaziz al-Ghurair said net profit growth among UAE-based commercial banks is expected to accelerate to about 20% in 2013, while Mashreq Bank forecasts its own growth at 40%. He also said that total assets of the UAE banks grew 8% to AED1.9tn in 1H2013, while net profit during the period was AED13.6bn. (  UAE’s banks not ready to implement FATCA – The UAE’s Banking Federation Chairman Abdulaziz al-Ghurair said that banks in the UAE are not ready to implement the US’ Foreign Account Tax Compliance Act (FATCA), as it will cost banks not less than AED100mn to get the right systems in place. In July, the US Treasury Department had stated that it would postpone enforcement of the law by six months to give foreign banks more time to figure out compliance. FATCA requires foreign banks, insurance companies and investment funds to send the US Internal Revenue Service information about any American’s offshore accounts worth more than $50,000. (  Rubber World wins AED107mn contract from Arabtec – Rubber World Industries (RWI) has won AED107mn contract from Arabtec Construction Group to supply rubber insulated building materials to Arabian Ranches Development project. Under this contract, RWI will supply Gulf-O-Flex brand of closed cell elastomeric rubber tube insulation, sheet roll insulation and adhesives. Meanwhile, Arabtec has also awarded a contract to Emirates Falcon Electromechanical Company, to facilitate the mechanical, electrical and plumbing requirements of the Arabian Ranches project. (AME Info)  Dubai’s foreign trade up 16% to AED679bn – According to data released by the Government of Dubai, the Emirate’s foreign trade has reached AED679bn in 1H2013, reflecting an increase of 16% YoY. An increase of 22% YoY in exports was the key growth driver. Imports in 1H2013 stood at AED406bn, indicating an increase of 16% YoY. The data showed that re-export of trade rose 13% YoY to AED188bn. (  DCCC joins Euroclear collateral highway as first Middle Eastern CCP – The Dubai Commodities Clearing Corporation (DCCC) has become the first central counterparty (CCP) in the Middle East to join Euroclear’s Global Collateral Highway. DCCC guarantees settlement for all trades executed on the Dubai Gold & Commodities Exchange (DGCX), which is supported by a system of initial and variation margins. Scheduled for launch in early 2014, this exclusive agreement with Euroclear will enable clients of DCCC and DGCX to use CCP-eligible securities held in Euroclear Bank — and in all other entities connected to the Collateral Highway — as collateral to fulfill initial and variation margin requirements. (AME Info)  Fitch upgrades Tamweel to A, withdraws ratings – Fitch Ratings has upgraded Tamweel’s long-term issuer default rating (IDR) to A from BBB+, short-term IDR to F1 from F2 and support rating to 1 from 2. Fitch has simultaneously withdrawn Tamweel's ratings. At the same time, the senior unsecured program rating of Tamweel Funding III Ltd. (TF-III) has been upgraded from BBB+ to A, while the senior unsecured long-term rating of the guaranteed sukuk issued by TF-III has been affirmed at A. (AME Info)  StanChart appoints Chairman for Islamic Banking – The Standard Chartered Bank (StanChart) has appointed Christos Papadopoulos as the Chairman of Standard Chartered Saadiq Islamic Banking. Christos is currently the bank's Regional CEO for Middle East, North Africa and Pakistan and will handle the additional responsibility for the Islamic banking business. (AME Info)  Maroc Telecom stake sale to be completed in 2 months – Morocco's Minister of Foreign Affairs Saadeddine Othmani said UAE-based Etisalat's planned deal to buy a majority stake in Maroc Telecom will be finalized in the next two months. In July, France-based Vivendi SA entered into exclusive talks with Etisalat to sell its 53% stake in Maroc Telecom for $5.54bn in cash. (Reuters)  DSI secures AED251mn contract in Abu Dhabi – Drake & Scull International (DSI) has signed a AED251mn contract for a major government facility in Abu Dhabi. The contract includes electro-mechanical works of the hardscape and landscape components of the facility that is scheduled to be completed in 2014. (AME Info)  RDIF, Abu Dhabi plan to co-invest in infrastructure projects in Russia – The Russian Direct Investment Fund (RDIF) and Abu Dhabi's Department of Finance are planning to enter in a memorandum of intent on co-investment in infrastructure projects across Russia. Abu Dhabi might invest around $5bn in the joint venture, which if materializes will become the world's largest investment in infrastructure consortia. (Bloomberg)
  5. 5. Page 5 of 6  Al Hilal Bank eyes 40% net profit growth in 2013 – Al Hilal Bank, the Islamic lender owned by the Abu Dhabi Investment Council, expects a net profit growth of over 40% in 2013 as it prepares to make a debut sukuk issue in 4Q2013. (Peninsula Qatar)  Iran-Oman gas pipeline unlikely within two years – Omani Energy Minister Mohamed bin Hamad al-Rumhy said Iran and Oman are unlikely to even start laying a planned subsea gas link for at least the next two years. Such a rapid rollout of a subsea pipeline would challenge many developers. (  CBO: Commercial banks earn OMR195mn net profit in January-July 2013 – According to a report released by the Central Bank of Oman (CBO), commercial banks in Oman have reported a net profit of OMR195mn during January-July 2013, as compared to OMR178mn in January-July 2012. At the end of July 2013, assets of commercial banks have increased 10.0% YoY to OMR21.9bn. Bank credit rose 8.1% to OMR14.9bn, which represents 68.2% of the total assets. The report showed that the credit offered to the government has reduced 45.6%, while credit offered to public and private sector institutions was up 17.6% and 7.6% respectively. Total deposits in commercial banks have increased 10.4% to OMR14.9bn at the end of July 2013, while government deposits were up 18.2% to reach OMR4.3bn. (Bloomberg)  Oman’s merchandise exports rise 17.6% in April 2013 – According to a report released by the National Centre for Statistics & Information (NCSI), Oman’s merchandise exports have increased 17.6% YoY to OMR7,447mn at the end of April 2013. This increase was attributed to re-exports that have contributed 10.2%, followed by oil & gas at 6.1% and non-oil exports at 1.3%. The report said the total imports rose 29.3% YoY to reach OMR4,437.7mn in April 2013. This increase was attributed to 188.5% increase in mineral products that contributed 23.9% to the total increase, followed by the imports of electrical machinery and mechanical equipment with an increase of 3.4% and 3.2% respectively. However, import of transport equipment has decreased 4% in April 2013. (Bloomberg)  Alizz Islamic Bank receives operational license – Alizz Islamic Bank has received the banking operational license from the Central Bank of Oman. This license was awarded to the bank after the completion of regulatory requirements such as successful listing of the bank's shares for trading on MSM and creation of products manuals, polices, procedures, guidelines and frameworks. (MSM)  ASBB acquires stake in Saudi educational company – Al Salam Bank Bahrain (ASBB) has acquired an equity stake in Saudi-based Education Experts Company for Education & Training. ASBB’s Director and CEO Yousif Abdulla Taqi said that this acquisition is a part of the bank’s strategy to focus on the Saudi market, which is witnessing significant growth. (Bahrain Bourse)  BAC acquires 100% stake in HOCHTIEF Facility Management Bahrain – Bahrain Airport Company (BAC) has announced the full acquisition of HOCHTIEF Facility Management Bahrain (HTFMBA) and the buyout of the remaining 50% shares in the joint venture. The 50% stake will add to BAC’s existing 50% to make HTFMBA a 100% Bahraini company owned by BAC. (Bloomberg)
  6. 6. Contacts Saugata Sarkar Ahmed M. Shehada Keith Whitney Sahbi Kasraoui Head of Research Head of Trading Head of Sales Manager - HNWI Tel: (+974) 4476 6534 Tel: (+974) 4476 6535 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 QNB Financial Services SPC Contact Center: (+974) 4476 6666 PO Box 24025 Doha, Qatar DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (―QNBFS‖) a wholly-owned subsidiary of Qatar National Bank (―QNB‖). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 6 of 6 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 Jan-10 Aug-10 Mar-11 Oct-11 May-12 Dec-12 Jul-13 QE Index S&PPan Arab S&P GCC (0.1%) (0.1%) 1.4% (0.1%) 0.6% 0.3% 0.4% (0.5%) 0.0% 0.5% 1.0% 1.5% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,365.47 0.1 (1.9) (18.5) DJ Industrial 15,326.60 0.9 2.7 17.0 Silver/Ounce 23.20 0.9 (2.8) (23.6) S&P 500 1,689.13 0.3 2.1 18.4 Crude Oil (Brent)/Barrel (FM Future) 111.50 0.2 (4.0) 0.4 NASDAQ 100 3,725.01 (0.1) 1.8 23.4 Natural Gas (Henry Hub)/MMBtu 3.60 (0.6) 1.6 5.1 STOXX 600 310.88 0.3 1.6 11.2 North American Spot LPG Propane Price 110.75 3.4 (2.6) 23.7 DAX 8,495.73 0.6 2.7 11.6 North American Spot LPG Normal Butane Price 130.50 2.7 (3.2) (24.6) FTSE 100 6,588.43 0.1 0.6 11.7 Euro 1.33 0.3 1.0 0.9 CAC 40 4,119.11 0.1 1.7 13.1 Yen 99.89 (0.5) 0.8 15.1 Nikkei 14,425.07 0.0 4.1 38.8 GBP 1.58 0.5 1.2 (2.7) MSCI EM 991.94 0.1 3.8 (6.0) CHF 1.07 0.5 0.8 (1.6) SHANGHAI SE Composite 2,241.27 0.1 4.7 (1.2) AUD 0.93 0.2 1.6 (10.2) HANG SENG 22,937.14 (0.2) 1.4 1.2 USD Index 81.52 (0.4) (0.8) 2.2 BSE SENSEX 19,997.45 0.0 3.8 2.9 RUB 32.81 (0.5) (1.5) 7.5 Bovespa 53,570.46 (0.8) (0.3) (12.1) BRL 0.44 0.4 1.4 (9.9) RTS 1,394.03 0.3 3.6 (8.7) 137.8 123.5 111.9