12 August Daily market report


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12 August Daily market report

  1. 1. Page 1 of 7 QE Intra-Day Movement Qatar Commentary The QE index rose 1.1% to close at 13,279.3. Gains were led by the Real Estate and Transportation indices, gaining 3.0% and 1.9%, respectively. Top gainers were Qatar Oman Investment Co. and Gulf Warehousing Co., rising 10.0% and 5.0%, respectively. Among the top losers, Islamic Holding Group fell 1.8%, while Doha Insurance Co. declined 1.6%. GCC Commentary Saudi Arabia: The TASI index fell 0.1% to close at 10,588.9. Losses were led by the Agri. & Food Ind. and Banking & Fin. Ser. indices, declining 1.0% and 0.4%, respectively. Al-Ahlia fell 8.1%, while Al Alamiya was down 4.2%. Dubai: The DFM index declined 0.2% to close at 4,811.5. The Transportation index fell 0.7%, while the Telecom. index was down 0.5%. National Industries Group declined 10.0%, while Int. Financial Advisors was down 4.2%. Abu Dhabi: The ADX benchmark index fell 0.2% to close at 4,987.4. The Real Estate index declined 0.6%, while Services index was down 0.4%. RAK White Cement declined 10.0%, while Arkan Building Materials was down 4.8%. Kuwait: The KSE index gained 0.1% to close at 7,234.5. The Insurance and Telecommunication indices rose 0.6% each. Sultan Center Food Products Group Co. gained 5.6%, while A'ayan Real Estate Co. was up 5.3%. Oman: The MSM index declined 0.1% to close at 7,291.7. Losses were led by the Financial and Industrial indices declining 0.2% and 0.1%, respectively. Gulf International Chemicals fell 2.1%, while Al Anwar Holding was down 2.0%. Bahrain: The BHB index declined 0.7% to close at 1,477.8. The Hotel & Tourism index fell 5.6%, while the Commercial Banking index was down 0.8%. Inovest declined 8.9%, while Gulf Hotels Group was down 8.1%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar Oman Investment Co. 17.49 10.0 3,035.9 39.7 Gulf Warehousing Co. 52.30 5.0 141.7 26.0 Qatar Islamic Insurance Co. 89.60 4.2 86.9 54.7 Barwa Real Estate Co. 41.85 4.1 936.2 40.4 Qatar German Co for Medical Dev. 14.34 3.9 681.4 3.5 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Ezdan Holding Group 19.70 (0.5) 3,072.3 15.9 Qatar Oman Investment Co. 17.49 10.0 3,035.9 39.7 Mazaya Qatar Real Estate Dev. 22.26 2.2 2,538.7 99.1 Vodafone Qatar 19.84 1.3 2,265.9 85.2 Mesaieed Petrochem. Holding Co. 33.85 2.6 1,491.3 238.5 Market Indicators 12 Aug 14 11 Aug 14 %Chg. Value Traded (QR mn) 949.6 740.9 28.2 Exch. Market Cap. (QR mn) 705,912.0 698,819.6 1.0 Volume (mn) 24.3 15.4 58.4 Number of Transactions 10,021 7,448 34.5 Companies Traded 43 40 7.5 Market Breadth 28:14 28:10 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 19,805.91 1.1 1.6 33.6 N/A All Share Index 3,361.39 1.1 1.7 29.9 16.5 Banks 3,197.36 0.9 0.9 30.8 15.7 Industrials 4,377.44 1.0 2.0 25.1 17.7 Transportation 2,370.00 1.9 1.8 27.5 15.2 Real Estate 2,963.26 3.0 4.6 51.7 16.0 Insurance 3,903.44 0.6 1.5 67.1 12.3 Telecoms 1,611.07 0.9 0.8 10.8 22.8 Consumer 7,578.06 (0.1) 3.2 27.4 28.3 Al Rayan Islamic Index 4,580.30 1.2 2.3 50.9 20.0 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Gulf Warehousing Co. Qatar 52.30 5.0 141.7 26.0 Gulf Pharma. Ind. Abu Dhabi 3.14 4.3 71.7 5.6 MEDGULF Saudi Arabia 43.37 4.3 1,385.9 24.3 Barwa Real Estate Co. Qatar 41.85 4.1 936.2 40.4 Knowledge Eco. City Saudi Arabia 26.42 3.4 7,032.8 49.3 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% United Real Est. Kuwait 0.11 (3.6) 77.5 (10.2) National Investments Kuwait 0.15 (2.6) 445.5 (6.3) Etihad Atheeb Tel. Saudi Arabia 11.90 (2.1) 3,837.6 (17.4) Arabtec Holding Co. Dubai 4.19 (2.1) 48,395.6 104.4 Deyaar Development Dubai 1.24 (1.6) 20,898.7 22.8 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% Islamic Holding Group 83.50 (1.8) 303.0 81.5 Doha Insurance Co. 30.00 (1.6) 107.5 20.0 Medicare Group 125.00 (1.2) 106.7 138.1 Qatar General Ins. & Reins. Co. 47.20 (1.0) 7.3 18.2 Dlala Brokerage & Inv. Holding 59.00 (0.8) 152.6 167.0 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Qatar Electricity & Water Co. 186.00 0.2 76,251.4 12.5 Masraf Al Rayan 54.50 0.9 75,707.9 74.1 Ezdan Holding Group 19.70 (0.5) 60,882.4 15.9 Mazaya Qatar Real Estate Dev. 22.26 2.2 56,409.0 99.1 Qatar Oman Investment Co. 17.49 10.0 51,523.5 39.7 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* 13,279.27 1.1 1.6 3.1 27.9 260.77 193,843.4 16.6 2.2 3.8 Dubai 4,811.51 (0.2) 1.6 (0.4) 42.8 221.15 93,506.1 20.0 1.8 2.1 Abu Dhabi 4,987.37 (0.2) 1.3 (1.3) 16.2 35.33 136,947.9 14.2 1.8 3.3 Saudi Arabia 10,588.89 (0.1) 0.3 3.7 24.1 2,478.24 578,075.2 20.4 2.6 2.7 Kuwait 7,234.53 0.1 0.7 1.5 (4.2) 96.02 112,848.4 17.1 1.1 3.8 Oman 7,291.74 (0.1) (0.6) 1.3 6.7 15.84 26,874.2 11.3 1.7 3.8 Bahrain 1,477.83 (0.7) (1.1) 0.4 18.3 1.07 54,336.9 11.6 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) 13,100 13,150 13,200 13,250 13,300 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 7 Qatar Market Commentary  The QE index rose 1.1% to close at 13,279.3. The Real Estate and Transportation indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.  Qatar Oman Investment Co. and Gulf Warehousing Co. were the top gainers, rising 10.0% and 5.0%, respectively. Among the top losers, Islamic Holding Group fell 1.8%, while Doha Insurance Co. declined 1.6%.  Volume of shares traded on Tuesday rose by 58.4% to 24.3mn from 15.4mn on Monday. Further, as compared to the 30-day moving average of 15.4mn, volume for the day was 58.1% higher. Ezdan Holding Group and Qatar Oman Investment Co. were the most active stocks, contributing 12.6% and 12.5% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Earnings and Global Economic Data Earnings Releases Company Market Currency Revenue (mn)2Q2014 % Change YoY Operating Profit (mn) 2Q2014 % Change YoY Net Profit (mn) 2Q2014 % Change YoY Dubai Refreshments (DRC) Dubai AED 274.7 13.1% 39.2 30.8% 39.6 25.5% Dubai National Insurance & Reinsurance (DNIR) Dubai AED 49.4 19.3% 8.9 18.0% 10.5 36.5% Takaful Emarat – Insurance Dubai AED 20.6 125.4% – – 1.1 NA Damac Properties Dubai USD 556.1 NA – – 253.3 18.0% Al Fujairah National Insurance Co. (AFNIC) Abu Dhabi AED 29.8 3.9% -0.3 NA -1.1 NA Sharjah Insurance Co. (SICO) Abu Dhabi AED 8.9 -16.2% -7.1 NA 6.3 16.3% Al Ain Ahlia Insurance Co. Abu Dhabi AED 186.4 21.9% 18.7 -11.4% 28.2 58.0% Al Noor Hospitals Group (ANH)** Abu Dhabi USD 224.8 NA – – 44.5 NA United Real Estate Co. (URC)* Kuwait KD 22.8 NA 8.2 NA 3.5 NA Inovest Bahrain USD 1.9 92.1% -1.4 NA -1.4 NA Gulf Hotels Group (GHG) Bahrain BHD 8.9 8.7% 4.2 14.3% 3.6 19.4% Bahrain Duty Free Shop Complex Co. Bahrain USD 19.5 NA – – 4.4 NA Source: Company data, DFM, ADX, MSM (*1H2014 results) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/12 US NFIB NFIB Small Business Optimism July 95.7 96.0 95.0 08/12 US BLS JOLTS Job Openings June 4671 4600 4577 08/12 EU ZEW ZEW Survey Expectations August 23.7 – 48.1 08/12 France Banque De France Current Account Balance June -7.4B – -3.3B 08/12 Germany ZEW ZEW Survey Current Situation August 44.3 54 61.8 08/12 Germany ZEW ZEW Survey Expectations August 8.6 17 27.1 08/12 UK BRC BRC Sales Like-For-Like YoY July -0.30% 0.90% -0.80% 08/12 Italy ISTAT CPI FOI Index Ex Tobacco July 107.3 – 107.4 08/12 Italy ISTAT CPI EU Harmonized YoY July 0.00% 0.00% 0.00% 08/12 Japan Bank of Japan PPI MoM July 0.30% 0.40% 0.20% 08/12 Japan Bank of Japan PPI YoY July 4.30% 4.40% 4.60% 08/12 Japan METI Industrial Production MoM June -3.40% – -3.40% 08/12 Japan METI Industrial Production YoY June 3.10% – 3.10% 08/12 Japan METI Capacity Utilization MoM June -3.30% – -0.70% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Overall Activity Buy %* Sell %* Net (QR) Qatari 57.38% 75.41% (171,177,168.86) Non-Qatari 42.62% 24.59% 171,177,168.86
  3. 3. Page 3 of 7 News Qatar  Qatar inflation up 3.1% YoY in July on rent, furniture and garments – According to the official figures, Qatar’s cost of living, based on the consumer price index (CPI), rose 3.1% YoY in July mainly on rising rents and costlier furniture & garments. The Ministry of Development Planning and Statistics said the CPI inflation was up 0.3% MoM. The rent, fuel & energy group, which is the most influential and carries the maximum weight of 32.2% in the CPI basket, recorded an increase of 7.6% YoY in July 2014. The index was up 0.3% MoM. After eliminating the effect of rent, the overall index was up 0.2% from June 2014 and showed an increase of 1.4% as compared to July 2013. According to QNB Group projection, the country’s inflation is expected to rise to 3.4% in 2014 as higher infrastructure spending will result in a large inflow of workers, putting pressure on housing and prices. Transport and communication, which has a weight of 20.5% in the CPI basket, saw its index go up by 1.8% YoY in July 2014. It was up 0.5% on a MoM basis. Entertainment, recreation and culture group, which has a weight of 10.90% in the CPI basket, saw its group index rise by 0.8% as compared to July 2013. The measure was up 0.7% from June 2014. Furniture, textiles and home appliances, which has a weight of 8.2% in the CPI basket, saw its group index surge 5.4% YoY in July 2014. Garments & footwear, which has a weight of 5.8% in the CPI basket, saw its price spurt by 2.2% YoY in July 2014 and 1.5% against the June 2014 level. Medical care & medical services group, which has a weight of 2%, reported a 0.7% YoY increase in July 2014. However, food, beverages & tobacco, which has a weight of 13.2% in the CPI basket, saw a 0.8% fall from July 2013. It fell 1% on a MoM basis. Miscellaneous goods and services, which has a weight of 7.2% in the CPI basket, saw its group become costlier by 1.3% YoY in July 2014. (Gulf-Times.com)  Education City to build two parts of Qatar Economic Zone – Education City, an initiative of Qatar Foundation for Education, Science and Community Development, is set to build two parts of Qatar Economic Zone which will be spread over 42 square kilometers. The first part of the zone, which will be located on the Doha Expressway, will house industries for modern technology, air cargo, food industries, tools & instruments, commercial offices and assembling units for logistic services. The other part of the economic zone will have industrial units related to logistic services, mining, petrochemicals, construction materials, machines & tools and vehicle parts manufacturers. Education City will feature three huge car parking facilities to be built by Qatar Foundation. The city will also have a three-star hotel, which is expected to be ready by 2015-end. There will also be health centers, retail shops, office spaces, children play areas and prayer rooms in the city. (GulfBase.com)  QA enhances frequencies on Tehran, Islamabad, Muscat routes – Qatar Airways (QA) is increasing frequencies to capital cities in Iran, Pakistan and Oman in response to increasing passenger demand across the Doha-based airlines network. Starting in the first week of September, the airline will increase the number of flights from Doha to Tehran by four to eighteen. QA will also add two additional flights on the Islamabad route, taking the total number of flights to nine a week. Muscat will operate four extra weekly flights from September 16, 2014, which takes the total number of flights to 35 a week. (Bloomberg) International  Job openings in US increase to highest level since 2001 – Job openings rose in June to the highest level in more than 13 years, firming up the US labor market picture for the second half of 2014. A labor department report showed the number of unfilled positions climbed by 94,000 to 4.67mn, the most since February 2001, from a revised 4.58mn in May. The increase in openings, combined with the highest readings on the number of people hired and leaving their jobs since 2008, means the healing in the labor market is broadening, albeit at a measured rate. Deutsche Bank Securities’ chief US economist Joseph LaVorgna said that there is an improvement, but it is still slow and uneven. (Bloomberg)  Yellen resolved to avoid raising rates too soon, fearing downturn – Approaching a historic turn in the US monetary policy, Janet Yellen has staked her tenure as chairman of the Federal Reserve on a simple principle: she would rather fight inflation than another economic downturn. Interviews with current and former Fed officials indicate that Yellen and core decision-makers at the US central bank are determined not to raise interest rates too early and risk hurting the fragile US economy. It is a commitment that will be vigorously tested in coming months as pressure builds inside the Fed, among Republicans on Capitol Hill, and perhaps even in financial markets, for the Fed to acknowledge a strengthening US economy with its first interest-rate increase in more than eight years. A global central bankers' conference in Jackson Hole, Wyoming next week will give Yellen a major stage on which to press her case. (Reuters)  US budget deficit falls to $95bn in July – According to data released by the Treasury Department, the US budget deficit stood at $95bn at the end of July, down 3% from the same period last year. Analysts polled by Reuters had expected a $96bn deficit for last month. The deficit was $98bn in July of 2013. According to Treasury's monthly budget statement, the fiscal YTD deficit at the end of July was $460bn, the lowest level since the same period in fiscal year 2008, as compared to a deficit of $607bn for the same period in fiscal year 2013. The last month's budget results were affected by differences in the calendar. If adjusted for timing-related transactions, the budget deficit in July would have been $86bn. The receipts last month totaled $211bn, up 5% from the year-ago period, bringing the fiscal YTD total receipts to $2.47tn. The last month’s outlays totaled $305bn, up 3% from July 2013, for a fiscal YTD total of $2.93tn. (Reuters)  UK statistics agency revises down scale of 2008-09 recession – The latest official data showed that Britain's economy shrank less than previously thought during the 2008- 09 recession, though the downturn remains easily the worst since modern records began in 1948. The British economic output is now estimated at 4.6% lower in 2009 than what it was in 2007. The decline had been set at 5.2% on June 30 and 6.0% in the last major annual revision to gross domestic product data in 2013. The Office for National Statistics (ONS) is overhauling how it calculates the British GDP in response to new European Union statistical rules and some domestic changes, and publishing regular updates. Further revisions, including quarterly data and figures covering 2010-2012, are due on September 3. The main cause of revision was a change in how much Britain's economy was estimated to have contracted as it entered recession in 2008. The ONS now believes Britain's economy shrank just 0.3% in 2008, as compared to an estimate of a 1.1% decline published only six weeks ago. (Reuters)
  4. 4. Page 4 of 7  ECB balance sheet shrinks in week to August 8 – The European Central Bank (ECB) said that the balance sheet of the ECB and the Eurozone's national central banks contracted by €34.425bn to €2.025tn in the week that ended on August 8. The decrease came as banks took less funding in the ECB's main refinancing operation and repaid long-term loans to the central bank. Gold reserves were unchanged at €334.432bn. The ECB added that the net foreign exchange reserves in the Eurosystem of central banks decreased by €0.1bn to €213.3bn. (Reuters)  German investor confidence slumps on Ukraine crisis – German investor confidence fell to the lowest level since 2012 as the crisis in Ukraine and a sluggish euro area recovery dampened the outlook for Europe’s largest economy. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, dropped to 8.6 in August from 27.1 in July. According to a Bloomberg survey, economists forecasted a decrease to 17. This was the eighth consecutive monthly decline and the biggest in more than two years. A worsening stand-off between Russia and the European Union is clouding the outlook for a German economy that probably contracted for the first time since 2012 in the second quarter. The disruption to trade threatens to weigh on the revival in the 18-nation euro area, which has already seen Italy slip back into recession. Berenberg Bank’s senior European economist in London Christian Schulz said the drop in the ZEW index confirms the near-term downside risks for the German and euro-zone economies emanating from the Ukraine crisis. (Bloomberg)  Euro falls to almost nine-month low as confidence sags – The Euro fell to almost the weakest since November after investor confidence in Germany slumped to the lowest level since 2012, adding to concerns that Europe may be entering a Japanese-style deflationary spiral. A gauge of the dollar was at almost the strongest since February as job openings rose to the highest level in more than 13 years before a report tomorrow forecast to show US retail sales grew for a sixth month. German bund yields dropped 1% on bets the European Central Bank’s stimulus measures are insufficient to boost inflation. Ukraine’s hryvnia fell to a record low as the turmoil with Russia deepened. New Zealand’s currency dropped after the housing market slowed. (Bloomberg)  Japan's economy contracts sharply – Japan's economy contracted sharply in the second quarter after a sales-tax increase in April sent household spending tumbling, which economists said could pressurize the government to take additional stimulus measures. Real GDP, the total value of all goods and services produced in the economy, shrank 6.8% in the three months through June on an annualized basis from the prior quarter. That was slightly less than a 7.1% contraction forecast by economists surveyed by The Wall Street Journal (WSJ), but economists said a larger-than-expected drop in private consumption and a sharp increase in inventories raised concerns about the resilience of Japan's economic recovery. A fallback in the economic output was expected after the nation's sales tax rose to 8% from 5% on April 1. Prime Minister Shinzo Abe and other policy makers have said they expect the downturn to be short-lived. Economists said if that forecast proves too rosy, the government might have to compile more economic-stimulus measures and reconsider plans to raise the sales tax further to 10% in October 2015. (WSJ) Regional  Investments in gulf aluminum sector to reach $55bn by 2020 – According to the Aluminum Middle East exhibition, the investments in the Gulf region’s aluminum sector are forecasted to reach $55bn by 2020, as compared to $30bn in 2011, due to smelters’ expansion and new projects in the region. The statistical data showed that the Gulf aluminum industry is growing by 8.4% annually as compared to an average annual global expansion of 3.5%, making the Middle East region the fastest-growing aluminum market in the world. The Aluminum Middle East exhibition will be held from April 14-16, 2015 at the Dubai International Convention and Exhibition Center (DICEC). (GulfBase.com)  BMG Financial signs cooperation agreement with SABS – BMG Financial Group has signed a strategic cooperation agreement with Salman Abdullah Bin Saedan Real Estate Group (SABS). SABS Group, which specializes in real estate development and sustainable construction projects, entered into a mutual agreement with BMG to advise, arrange and place a number of real estate opportunities in the promising Saudi Arabian market. The agreement is complementary to the development of the burgeoning real estate market in Saudi Arabia and is the embodiment of BMG and SABS Group’s vision for expansion in the establishment of real estate funds investment through various real estate activities in different cities across Saudi Arabia. (GulfBase.com)  Saudi Arabia signs contracts worth SR893.7mn – According to an Arab News report, Saudi Arabia has signed contracts worth SR893.68mn for 15 municipal development projects in a number of provinces. The contracts includes two projects to ensure protection against flash floods on the Prince Naif road, pavement construction and street lighting on several roads in Madinah province as well as maintenance of roads, squares and green surfaces in Riyadh. The main projects which will be implemented in Jeddah under these contracts involve asphalting, street lighting and pavement construction on some major roads. (GulfBase.com)  Construction work on Saudi Arabia’s first women’s industrial city underway – The construction work on Saudi Arabia’s first women’s industrial city is underway, and is expected to accommodate women’s businesses exclusively. The city, which is expected to cost SR111mn, will span an area of 500,000 square meters (sq m) and is located east of the Al- Ahsa International Airport. The women’s industrial city will be divided into three sections: a commercial section, which will span 140,000 sq m, an industrial section to be built on an area of 170,000 sq m, and a services area, which will span 120,000 sq m. (GulfBase.com)  Tadawul deposits new shares of Al-Ahlia Insurance – Saudi Stock Exchange (Tadawul) announced that Al-Ahlia Insurance Company’s new shares have been deposited in the shareholders portfolios on August 12, 2014, based on their allocation. (Tadawul)  Savola to bid for Americana – According to sources, Saudi Arabia-based Savola Group is among the first-round bidders for Kuwait Food Company (Americana). Americana operates KFC and Pizza Hut restaurants in the MENA region. Americana is likely to fetch more than $4bn. The average offer for the business was about KD3.5 per share, which would value the franchise operator at about $5bn (KD1.41bn). Other potential suitors for the business include private-equity firms KKR & Co. and CVC Capital Partners Ltd., which have submitted a joint offer, and separate bids from Advent International Corp. and TPG Capital. (Bloomberg)  Emirates Airline completes financing deal for acquisition of Airbus A380s – Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai (CBD) and Dubai Islamic Bank (DIB) have jointly
  5. 5. Page 5 of 7 finalized a $425mn Shari’ah-compliant financing deal with Emirates Airline for the acquisition of two Airbus A380s. The three banks were joint bookrunners and initial mandated lead arrangers for the transaction. (GulfBase.com)  Instant Cash in strategic alliance with Ria Money Transfer – Instant Cash Global Money Transfer (Instant Cash), a wholly owned subsidiary of the Emirates Post Group has entered into a strategic alliance with Ria Money Transfer, a wholly owned subsidiary of Euronet Worldwide, that will give the US-based remittance provider access to the growing pay out network of Instant Cash. (GulfBase.com)  DLD: GCC invests more than AED19bn in Dubai’s real estate market – According to the Dubai Land Department (DLD), the total sum of Gulf Cooperation Council (GCC) investment in Dubai’s real estate market for 1H2014 has exceeded AED19bn. The figures revealed that UAE nationals made transactions of AED12.5bn in the city’s property sector from January 1, 2014 to July 1, 2014. The amount represents almost double the AED6.5bn figure invested by all other GCC nationals combined. The DLD’s report revealed that the citizens of Saudi Arabia were ranked in second place on the list of GCC real estate investment after making 1,121 transactions worth AED3,371bn in 1H2014. Qataris came in at third place with 113 transactions worth AED1,463bn, Kuwaitis were listed at fourth place with 263 transactions worth AED839mn and Omanis were in the fifth place with transactions worth AED482mn. Bahrain citizens occupied the sixth position after making transactions worth AED247mn in 1H2014. (GulfBase.com)  STR Global: Dubai hotels record lowest occupancy in 18 years – According to research firm STR Global, hotels in Dubai had the lowest occupancy in at least 18 years in July 2014, standing more than half empty, as more rooms were created and demand declined. Occupancy declined 11.8% to 45.4% from a year earlier. Revenue per available room fell 7.4% to AED290.2. Dubai plans to almost double the number of hotel rooms by 2020 as it expects a surge of visitors ahead of the World Expo. (Bloomberg)  DSC: Dubai’s CPI up 3.4% in July – According to data by the Dubai Statistic Centre (DSC), Dubai’s consumer-price index (CPI) climbed 3.41% YoY in July and 0.46% from June 2014. The annual inflation rate in Dubai rose to 2.74% in 1H2014 from 1.6% in 1H2013. Alcoholic beverages and tobacco posted the highest YoY price increase in July- up 6.34%, followed by housing and utility, which account for almost 44% of consumer expenses, with 5.8%. (Bloomberg)  Kuwait M2, bank lending growth rates rebound in June – According to Kuwait Central Bank, Kuwait's M2 money supply growth rebounded to 7.4% YoY in June 2014 from 6.1% in May 2014, which was the slowest rate since November 2012. Bank lending to the private sector grew 7.0%, rising from 6.2% in May, which was the slowest since September 2013. (Reuters)  RCC to set up distribution terminal in Duqm – Raysut Cement Company (RCC) has taken a few projects in hand such as setting up of a distribution terminal in Duqm, additional silo capacity in the Salalah plant and off shore wheel loader system in the north to facilitate bulk cement handling. The work is in progressive stage for some of these projects and the company would reap benefits from these in the early part of 2015. (GulfBase.com)  Oman MoOG: Oman's oil production grew marginally – According to the monthly statistics released by the Ministry of Oil and Gas (MoOG), Oman’s production of crude oil and oil condensates in July 2014 stood at 29,660,034 barrels, with an average daily production of 956,775 barrels per day, reflecting a slight growth as compared to the average daily production in June 2014. The gross crude oil exports in July 2014 stood at 28,045,039 barrels, with an average daily export of 904,679, indicating a growth of 14.03% as compared to June 2014. (GulfBase.com)  Renaissance Services to sell less than 10% stake in Topaz – Renaissance Services is planning to divest less than 10% stake in its wholly-owned subsidiary, Topaz Energy and Marine (Topaz) in favor of a business house. The company is also planning to offer up to 49% investment in the Duqm permanent accommodation for contractors (PAC) project, primarily for local community investors, state pension funds and sovereign wealth funds. Renaissance plans to construct facilities to accommodate as many as 17,000 workers at an estimated cost of OMR100mn. The company has already awarded two contracts to develop the residential accommodation project in Duqm, spread over a total area of 192,000 square meters. (GulfBase.com)  MSM banking sector stands fifth among GCC markets in profitability – According to the Oman News Agency, the Muscat Securities Market (MSM) came fifth in the growth of profitability of the banking sector listed on the GCC financial markets for 1H2014 as profit grew 5.6% on a YoY basis. The banking sector in the Dubai Financial Market achieved the highest growth in profitability among the GCC markets with nearly 42%, while the banking sector in the Abu Dhabi Securities Exchange grew by 25.5%, the banking sector in the Tadawul grew by 9.3% and the banking sector in the Qatari Exchange grew by about 7%. The banking sector in the Kuwait Stock Exchange posted a profit growth of 2.2%, whereas the profits of the banking sector in Bahrain Bourse retreated by 24.3%. (GulfBase.com)  BankDhofar awaits response from Bank Sohar on merger – Bank Dhofar announced that it is waiting for a response on the proposed swap ratio from Bank Sohar to proceed with the merger plan. Earlier, Bank Dhofar has sent a letter to Bank Sohar advising the completion of the preliminary study by a specialist expert house. (Bloomberg)  Bahrain Duty Free’s BoD approves 20% interim cash dividend for FY2014 – Bahrain Duty Free Shop Complex Company’s board of directors has approved the distribution of 20% interim cash dividend (20 fils per share) for FY2014. The shareholders registered on the books as of August 13, 2014 will be eligible for the dividend distribution. The company’s shares shall trade ex-dividend starting from August 14, 2014. (Bahrain Bourse)  GFH signs MoU with Nasdaq Dubai to list $200mn Sukuk; BHB announces increase in GFH paid-up capital – Gulf Finance House (GFH) has signed a MoU with Nasdaq Dubai to list its newly-intended $200mn Sukuk. GFH is planning to use the proceeds from the Sukuk to repay the current outstanding Sukuk of $84mn and undertake business acquisitions for financial consolidation and project development in Bahrain and Dubai. Meanwhile, the Bahrain Bourse (BHB) announced that the paid-up capital of Gulf Finance House (GFH) has been increased due to the issuance of 133,985,894 shares, pursuant to the approval from the EGM held on April 14, 2014, and this will be effective August 13, 2014. The previous total outstanding shares were 3,487,469,938 & the new outstanding shares are 3,621,455,832, whereas the previous total paid-up capital was $1.073bn and the new total paid-up capital is $1.113bn. (Bahrain Bourse)  BISB’s profit rises 67% to BHD4.0mn in 1H2014 – Bahrain Islamic Bank (BISB) has reported a net profit of BHD4.05mn in
  6. 6. Page 6 of 7 1H2014 as compared to BHD2.4mn in 1H2013, reflecting an increase of 67%. The profit for 2Q2014 was BHD1.6mn as against BHD1.3mn in 2Q2013. Net operating profits for 2Q2014 were BHD2.6mn as against BHD3.0mn for 2Q2013. EPS for 1H2014 amounted to 4.33 fils as against 2.57 fils for 1H2013. BISB’s total assets as of June 30, 2014 stood at BHD906.8mn as compared to BHD910.3mn as of December 31, 2013. (Bahrain Bourse, GulfBase.com)  LIC (International) seeks tie-ups with financial institutions – Bahrain-based LIC (International), a regional subsidiary of Life Insurance Corporation of India (LIC), is in advanced negotiations with financial institutions to be part of its distribution channel. The company has issued 4,811 new policies and collected $74mn first premium from January 2014 to July 2014. (GulfBase.com)  BAC signs deal with BEONTRA – Bahrain Airport Company (BAC), the operator of the Bahrain International Airport (BIA), has signed a deal with BEONTRA, a Lockheed Martin company, for the implementation of its route analysis tool. The technology will allow BAC to calculate, analyze and present route cases to airlines, while being able to recalculate and amend on demand. The software is a tool that allows the user to develop and build route cases in a clear, step-driven process. (GulfBase.com)  Bahrain MoT: Passenger traffic at BIA increases by 6% – According to Ministry of Transportation's Undersecretary of Civil Aviation Affairs (MoT), passenger traffic at Bahrain International Airport (BIA) during 1H2014 increased by 6% compared with the same period in 2013. The total number of passengers in the period January 2014 - July 2014 was 4,586,281. (Bloomberg)
  7. 7. Contacts Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 7 of 7 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg 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 (0.1%) 1.1% 0.1% (0.7%) (0.1%) (0.2%) (0.2%) (1.2%) (0.6%) 0.0% 0.6% 1.2% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,309.45 0.1 (0.1) 8.6 DJ Industrial 16,560.54 (0.1) 0.0 (0.1) Silver/Ounce 19.92 (0.5) 0.1 2.3 S&P 500 1,933.75 (0.2) 0.1 4.6 Crude Oil (Brent)/Barrel (FM Future) 103.02 (1.6) (1.9) (7.0) NASDAQ 100 4,389.25 (0.3) 0.4 5.1 Natural Gas (Henry Hub)/MMBtu 3.92 (0.7) 0.1 (9.8) STOXX 600 328.74 (0.2) 1.2 0.1 LPG Propane (Arab Gulf)/Ton 103.00 (0.6) 0.4 (18.6) DAX 9,069.47 (1.2) 0.7 (5.1) LPG Butane (Arab Gulf)/Ton 121.75 (0.3) 1.0 (10.3) FTSE 100 6,632.42 (0.0) 1.0 (1.7) Euro 1.34 (0.1) (0.3) (2.7) CAC 40 4,162.16 (0.8) 0.3 (3.1) Yen 102.26 0.1 0.2 (2.9) Nikkei 15,161.31 0.2 2.6 (6.9) GBP 1.68 0.1 0.2 1.5 MSCI EM 1,064.42 0.3 1.8 6.2 CHF 1.10 (0.1) (0.2) (1.6) SHANGHAI SE Composite 2,221.60 (0.1) 1.2 5.0 AUD 0.93 0.1 (0.1) 3.9 HANG SENG 24,689.41 0.2 1.5 5.9 USD Index 81.50 0.0 0.1 1.8 BSE SENSEX 25,880.77 1.4 2.2 22.2 RUB 36.15 0.6 (0.1) 10.0 Bovespa 56,442.34 (0.3) 1.6 9.6 BRL 0.44 0.0 0.4 3.9 RTS 1,198.72 (0.4) 2.4 (16.9) 190.8 161.8 145.8