13 February Daily market report

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13 February Daily market report

  1. 1. QE Intra-Day Movement Market Indicators 13 Feb 14 12 Feb 14 %Chg. 11,550 Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth 761.8 602,979.9 20.0 6,891 41 23:15 751.5 598,850.4 17.7 7,473 38 19:18 1.4 0.7 12.9 (7.8) 7.9 – 11,500 11,450 11,400 9:30 Market Indices 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QE index rose 0.5% to close at 11,515.5. Gains were led by the Telecoms and Industrials indices, gaining 1.8% and 0.8% respectively. Top gainers were Qatar German Co. for Med. Dev. and Vodafone Qatar, rising 3.2% and 2.9% respectively. Among the top losers, National Leasing fell 4.1%, while Dlala Brok. & Inv. Holding Co. declined 2.4%. Close Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index 1D% WTD% YTD% TTM P/E 16,546.99 2,863.62 2,813.75 3,719.93 1,994.82 1,986.59 2,734.10 1,588.69 6,496.99 3,291.94 0.6 0.6 0.8 0.8 (1.0) (0.7) 0.2 1.8 0.2 0.5 2.9 3.1 4.7 1.3 2.8 (0.4) 1.6 1.2 6.1 2.2 11.6 10.7 15.1 6.3 7.3 1.7 17.0 9.3 9.2 8.4 N/A 13.7 14.4 13.7 13.5 13.6 6.3 21.4 24.8 16.9 GCC Commentary GCC Top Gainers## Exchange Saudi Arabia: The TASI index rose 0.2% to close at 8,929.6. Gains were led by the Media & Publishing and Agriculture & Food Ind. indices, rising 2.5% and 0.8% respectively. Tihama rose 6.0%, while Fitaihi Group was up 3.4%. Dubai Investments Dubai Tihama Saudi Arabia Dubai: The DFM index gained 1.3% to close at 4,098.7. The Investment & Financial Services index rose 5.0%, while the Services index was up 1.3%. National Industries Group gained 9.3%, while Dubai Investment was up 7.1%. Emirates NBD Bahrain Telecomm. Co. Abu Dhabi: The ADX benchmark index rose 0.5% to close at 4,892.4. The Inv. & Fin. Ser. index gained 3.7%, while the Industrial index was up 3.5%. Arkan Build. Materials surged 14.5%, while Al Wathba Nat. Ins. gained 12.6%. Vodafone Qatar Qatar GCC Top Losers Exchange Kuwait: The KSE index declined 0.2% to close at 7,842.6. The Oil & Gas index fell 1.2%, while the Health Care index was down 0.8%. Pearl of Kuwait Real Estate Co. fell 8.9%, while First Takaful Insurance Co. was down 6.9%. Nat. Bank of Fujairah Abu Dhabi National Leasing Oman: The MSM index rose 0.2% to close at 7,173.2. Gains were led by the Financial and Industrial indices, gaining 0.5% and 0.1% respectively. Oman Fisheries rose 2.9%, while Sohar Power was up 2.8%. Bahrain: The BHB index gained 0.2% to close at 1,317.9. The Industrial index rose 2.5%, while the Services index was up 2.3%. Bahrain Cinema Co. gained 10.0%, while Khaleeji Commercial Bank was up 6.4%. Qatar Exchange Top Gainers Qatar German Co. for Med. Dev. Close* 1D% Vol. ‘000 YTD% 14.50 3.2 487.0 4.7 Vodafone Qatar 12.36 2.9 Qatar Industrial Manufacturing Co. 52.00 Al Khaliji 21.20 Qatar Islamic Bank 1D% 3.47 7.1 82,793.6 39.4 145.25 6.0 799.8 32.3 Dubai ## Close# 8.05 3.2 2,123.0 26.8 Bahrain 0.34 3.0 129.0 13.3 12.36 2.9 5,635.2 15.4 Vol. ‘000 YTD% # 1D% Vol. ‘000 YTD% 3.25 (24.1) 38,200.6 (31.6) Qatar 29.45 (4.1) 265.6 (2.3) Combined Group Cont. Kuwait 1.18 (3.3) 4.2 (7.8) Union National Bank Abu Dhabi 6.63 (2.2) 920.5 12.9 Qatari Investors Group Qatar 41.00 (2.1) 237.0 (6.2) Close 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) Close* 1D% Vol. ‘000 YTD% National Leasing 29.45 (4.1) 265.6 (2.3) Dlala Brok. & Inv. Holding Co. 20.25 (2.4) 293.0 (8.4) Qatar Exchange Top Losers 5,635.2 15.4 2.8 88.3 2.8 Qatari Investors Group 41.00 (2.1) 237.0 (6.2) 2.1 430.0 6.1 Mazaya Qatar Real Estate Dev. 12.36 (1.8) 328.2 10.6 81.00 2.0 645.9 17.4 Qatar Gas Transport Co. 21.48 (1.6) 919.6 6.1 Close* 1D% Vol. ‘000 YTD% Close* 1D% Val. ‘000 YTD% Vodafone Qatar 12.36 2.9 5,635.2 15.4 Masraf Al Rayan 40.05 0.3 83,751.2 28.0 United Development Co. 22.43 (0.8) 2,689.5 (0.8) Industries Qatar 179.20 1.2 75,880.9 6.1 Masraf Al Rayan 40.05 0.3 2,087.3 28.0 Vodafone Qatar 12.36 2.9 69,139.6 15.4 Barwa Real Estate Co. 30.55 (0.5) 1,484.3 2.5 United Development Co. 22.43 (0.8) 60,058.0 (0.8) Qatar Gas Transport Co. 21.48 (1.6) 919.6 6.1 Qatar Islamic Bank 81.00 2.0 51,948.0 17.4 Qatar Exchange Top Vol. Trades Source: Bloomberg (* in QR) Source: Bloomberg (* in QR) Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain Qatar Exchange Top Val. Trades Close 1D% WTD% MTD% YTD% 11,515.50 4,098.67 4,892.41 8,929.60 7,842.62 7,173.24 1,317.94 0.5 1.3 0.5 0.2 (0.2) 0.2 0.2 2.9 4.3 3.6 1.3 0.1 0.9 1.1 3.2 8.7 4.7 1.9 1.1 1.2 1.8 10.9 21.6 14.0 4.6 3.9 5.0 5.5 Exch. Val. Traded ($ mn) 209.21 420.84 224.62 1,504.92 114.13 23.86 4.67 Exchange Mkt. Cap. ($ mn) 165,578.3 81,685.3 134,448.5 488,112.5 112,590.8 25,589.1 50,868.2 P/E** P/B** 14.6 17.4 13.2 17.9 16.7 11.1 9.2 1.9 1.5 1.7 2.2 1.2 1.6 0.9 Dividend Yield 4.0 2.0 3.7 3.3 3.6 3.6 3.7 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 7
  2. 2. Qatar Market Commentary  The QE index rose 0.5% to close at 11,515.5. The Telecoms and Industrials indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders. Overall Activity Sell %* Net (QR) Qatari 66.93% 70.16% (24,605,500.00) Non-Qatari  Qatar German Co. for Med. Dev. and Vodafone Qatar were the top gainers, rising 3.2% and 2.9% respectively. Among the top losers, National Leasing fell 4.1%, while Dlala Brok. & Inv. Holding Co. declined 2.4%. Buy %* 33.07% 29.84% 24,605,500.00 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Thursday rose by 12.9% to 20.0mn from 17.7mn on Wednesday. Further, as compared to the 30-day moving average of 11.7mn, volume for the day was 70.7% higher. Vodafone Qatar and United Development Co. were the most active stocks, contributing 28.2% and 13.5% to the total volume respectively. Earnings and Global Economic Data Earnings Releases Company Revenue (mn) 4Q2013 % Change YoY Operating Profit (mn) 4Q2013 % Change YoY Net Profit (mn) 4Q2013 % Change YoY AED 1220.9 12.8% 368.0 55.2% 266.4 37.7% AED 4900.0 48.5% 188.0 59.6% 185.0 60.9% – – 18.6 5.7% – – 90.5 32.5% Market Abu Dhabi Nationai Hotels * Drake & Scull International (DSI)* Arig* # National Cement Company (NCC) * Renaissance Services * Currency Abu Dhabi Dubai Dubai AED 262.0 -5.2% Dubai AED 243.1 27.0% Oman OMR 268.2 6.5% OMR 59.9 13.8% 6.6% – 622.3% Oman 222.4 – 22.1 Salalah Mills * 4.9 -7.3% Muscat Gases * Oman OMR 9.8 -9.0% – – 1.4 3.6% Oman Textile Holding * Al Batinah Dev. Inv. Holding * Al Hassan Engineering * Oman OMR 2.0 2.4% 34.4% OMR 1.5 -0.2% 10.2% – 0.8 Oman 0.8 – -0.1 72.8% Oman OMR 61.7 22.7% – – 0.6 116.7% Asaffa Foods * Oman OMR 28.5 10.3% – – 7.2 -1.0% Dhofar Cattle Feed * Oman OMR 29.5 7.3% – – -3.0 -274.0% 749.3 0.8% – – 79.8 -17.4% 0.2 -6.7% – – 0.0 4.8% Aluminium Bahrain (Alba) * Bahrain BD Arab Insurance Group*# Bahrain USD Source: Company data, DFM, ADX, MSM (*Results for the year ended December 31, 2013)(# Calculations in USD) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 02/13 US US Treasury Monthly Budget Statement January -$10.4B -$10.0B $2.9B 02/13 US US Census Bureau Retail Sales Advance MoM January -0.40% 0.00% -0.10% 02/13 US US Census Bureau Retail Sales Ex Auto MoM January 0.00% 0.10% 0.30% 02/13 US US Census Bureau Retail Sales Ex Auto and Gas January -0.20% 0.10% 0.10% 02/13 US US Census Bureau Retail Sales Control Group January -0.30% 0.20% 0.30% 02/13 US Department of Labor Initial Jobless Claims 8-February 339K 330K 331K 02/13 US Bloomberg Bloomberg Consumer Comfort 9-February -30.7 – -33.1 02/14 US BLS Import Price Index MoM January 0.10% -0.10% 0.20% 02/14 US BLS Import Price Index YoY January -1.50% -1.80% -1.10% 02/14 US Federal Reserve Industrial Production MoM January -0.30% 0.20% 0.30% 02/14 US Federal Reserve Capacity Utilization January 78.50% 79.30% 78.90% 02/14 US Federal Reserve Manufacturing (SIC) Production January -0.80% 0.10% 0.30% 02/14 EU Eurostat Trade Balance NSA December 13.9B 14.5B 17.0B 02/14 EU Eurostat GDP SA QoQ 4Q2013 0.30% 0.20% 0.10% 02/14 EU Eurostat GDP SA YoY 4Q2013 0.50% 0.40% -0.30% 02/14 EU Eurostat Trade Balance SA December 13.7B – 16.0B 02/14 France INSEE GDP YoY 4Q2013 0.80% 0.60% 0.30% 02/14 France INSEE GDP QoQ 4Q2013 0.30% 0.20% 0.00% 02/13 Germany Destatis CPI MoM January -0.60% -0.60% -0.60% 02/13 Germany Destatis CPI YoY January 1.30% 1.30% 1.30% Page 2 of 7
  3. 3. 02/14 Germany Destatis GDP SA QoQ 4Q2013 0.40% 0.30% 0.30% 02/14 Germany Destatis GDP WDA YoY 4Q2013 1.40% 1.30% 0.60% 02/14 Germany Destatis GDP NSA YoY 4Q2013 1.30% 1.30% 1.10% 02/14 UK ONS Construction Output SA MoM December 2.00% 2.00% -4.00% 02/14 UK ONS Construction Output SA YoY December 6.30% 6.40% 2.00% 02/14 Spain INE CPI Core MoM January -1.70% – -0.10% 02/14 Spain INE CPI Core YoY January 0.20% 0.20% 0.20% 02/14 Spain INE CPI MoM January -1.30% -1.30% 0.10% 02/14 Spain INE CPI YoY January 0.20% 0.20% 30.00% 02/14 Italy ISTAT GDP WDA QoQ 4Q2013 0.10% 0.10% 0.00% 02/14 Italy ISTAT GDP WDA YoY 4Q2013 -0.80% -0.80% -1.90% 02/14 China NBS PPI YoY January -1.60% -1.60% -1.40% 02/14 China NBS CPI YoY January 2.50% 2.40% 2.50% 02/14 China PBC Money Supply M0 YoY January 22.50% 9.50% 7.10% 02/14 China PBC Money Supply M1 YoY January 1.20% 8.20% 9.30% 02/14 China PBC Money Supply M2 YoY January 13.20% 13.20% 13.60% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  QNB Group introduces two insurance products – QNB Group has introduced two top-of-the-line insurance products, CritiCare and Insta Protect Plus. The two new products are being introduced in conjunction with MetLife Alico, adding to QNB's comprehensive suite of banking services. CritiCare is a new concept in health protection that provides customers with an instant lump sum to help them pay for expensive medical bills or compensate for the loss of income due to 32 different critical illnesses including heart attack, major cancers and kidney failure. If the protection element of the product is not used during the life of the plan, the insured will be entitled to receive guaranteed 75% cash back. Insta Protect Plus is a solution designed to cover any unpaid financial liabilities, such as a loan. The plan is designed to guarantee a one-time, lump-sum amount of up to $200,000 to its beneficiaries, on the death of the insured. If the protection element of the product is not used during the life of the plan, the insured will be entitled to receive a guaranteed 50% cash back sum. (QNB Group Press Release)  DBIS reports QR17.2mn net profit in 4Q2013 – Dlala Brokerage & Investment Holding Company (DBIS) reported a net profit of QR17.2mn in 4Q2013, an increase of 58.4% QoQ. Net profit for 2013 amounted to QR5.4mn as compared to QR26.1mn in 2012. Net brokerage & commission income stood at QR8.7mn in 4Q2013, reflecting an increase of 21.8% QoQ. For the FY2013, net brokerage & commission income amounted to QR29mn, a rise of 19.3% YoY. EPS amounted to QR0.245 for 2013 as compared to QR1.176 in 2012. Meanwhile, DBIS’ board has recommended transferring the year’s profits to retained earnings. (QE)  MCGS reports QR89.4mn net profit, recommends 30% cash dividend – Medicare Group (MCGS) has reported a net profit of QR89.4mn in 2013 as compared to QR44.8mn in 2012. EPS amounted to QR3.18 in 2013 vs. QR1.59 in 2012. Meanwhile, MCGS’ board recommended 30% cash dividend, i.e. QR 3.0 per share. The company’s ordinary AGM is expected to be held next April (date yet to be confirmed) (QE)  QISI posts QR70.9mn net profit in 2013 – Qatar Islamic Insurance Company (QISI) reported a net profit of QR70.9mn in 2013 as compared to QR58.3mn in 2012. EPS for 2013 amounted to QR4.73 as compared to QR3.89 in 2012. Meanwhile, QISI’s BoD proposed a 37.5% (3 riyals per share) profit distribution to its shareholders, which needs to be discussed in the next AGM scheduled on March 12, 2014 in Ezdan Hotel. (QE)  NDSQ delivers 11th Qatar-built boat for Milaha – Nakilat Damen Shipyards Qatar (NDSQ) has delivered the 32m-long tug Semesma to Milaha, which is the eleventh vessel built in Qatar by NDSQ. Semesma is part of a 19-vessel order given by Milaha at the Port of Mesaieed that NDSQ is completing at its facilities in Ras Laffan. Prior to the delivery of Semesma, NDSQ had delivered three 28m-long Azimuth Stern Drive (ASD) tugs, each with a 55-ton bollard pull, one service boat capable of speeds up to 20 knots, and six 10-ton mooring / tug boats, all built in Qatar. The ASD tug boat Semesma has a bollard pull of 80 tons and will be used to escort vessels that visit the Port of Mesaieed. (QE)  QATI to acquire Antares – Qatar Insurance Company (QATI) has agreed to acquire Antares Holdings Ltd, the owner of 100% of Antares Syndicate-1274 at Lloyds in the UK. The deal will be finalized only after obtaining the necessary approvals from the concerned authorities, which is expected during 2H2014. (QE)  Barwa Labor City set to open in summer – The first phase of Barwa’s upcoming Labor City in the Industrial Area will be ready by the summer of 2014. The project, named Barwa Al Baraha, located next to West End Park, houses a huge truck parking facility that was opened recently. Barwa Real Estate Company’s CEO Abdullah Al Subai said that about 75% of work for Phase One has already been completed and the housing units will start receiving their first occupants by 3Q2014. Al Subai said that several companies have already booked space for their workers in the sprawling city that can accommodate 22,000 laborers in the first phase. All basic amenities such as lighting and toilets are available and a fuel station has been opened to serve heavy vehicles and equipment. (Peninsula Qatar)  QE, EQ launch project to boost SME listing on venture market – The Qatar Exchange (QE) and Enterprise Qatar (EQ) have launched a project to enable Qatari small & medium size enterprises (SMEs) to get listed on the QE Venture Market. A MoU to this effect was signed between the QE and EQ in Doha, which outlines the basis of cooperation in implementing the program. According to the agreement, any Qatari company that meets both the EQ’s SME criteria and the QE-QFMA rules for listing on the Qatar Exchange Venture Market will be eligible to apply for assistance through the program, which will be limited in scope. Each successful applicant will receive a percentage of the fees payable to their listing adviser. Both the QE and EQ are Page 3 of 7
  4. 4. currently working with a small number of IPO candidates for preparing them for the market as soon as possible. The QE, however, declined to identify the companies for confidentiality purposes. (QE)  Qatar replaces Yemen as Thailand’s biggest LNG supplier in 2013 – Qatar replaced Yemen as Thailand’s biggest supplier of LNG gas last year as the Southeast Asian country’s imports of the fuel rose 45%. The average cost was 2.1% higher than in 2012. According to data from the Thailand Customs Department, State-owned PTT paid $1.1bn for 1.41mn metric tons of LNG from Qatar, Nigeria, France, Equatorial Guinea and Egypt last year. According to Bloomberg calculations, that is equivalent to about $16.45 per million British thermal units, up from $16.10 in 2012. PTT did not buy any cargo from Trinidad & Tobago, Peru and Yemen in 2013. The company owns and operates the Map Ta Phut terminal in Rayong, which has capacity of 5mn tons a year. (Gulf-Times.com)  NLCS’ AGM approves agenda, 15% cash dividend – The National Leasing Holding (Alijarah Holding) has approved its board's proposal in the AGM held on February 12 to distribute a dividend of 15% of the nominal value per share at the rate of QR1.5. (QE)  QIIB’s EGM approves agenda – Qatar International Islamic Bank (QIIB), at its EGM on February 12, 2014, changed the percentage of ownership required for board member from 0.50% to 0.25%. (QE)  MARK’s AGM to be held on March 3 – Masraf Al Rayan (MARK) announced that its AGM is scheduled to be held on March 3, 2014. The AGM’s agenda includes approving the recommendation for a cash dividend of QR1.5 per share, representing 15% of the paid-up capital for FY2013, among others. (QE)  ERES’ BoD to meet on March 3 – Ezdan Holding Group’s (ERES) board of directors will meet on March 3, 2014 to discuss the company’s financial results ending on December 31, 2013. (QE) International  QNB Group: Eurozone may see 0.5%-1.0% growth in 2014, 1.0%-1.5% in 2015 – According to QNB Group’s report, the Eurozone – which has emerged out of recession – will see 0.5% to 1% economic growth in 2014 with somewhat stronger growth (1.0%-1.5%) in 2015. QNB Group said that after the great recession of 2009-10 and a second recession in 2011-13, most indicators point to a gradual recovery in 2014. However, the last two recessions have resulted in some of the highest unemployment rates on record in a number of Eurozone countries. Without higher growth and lower unemployment, the future of the Eurozone may be in jeopardy as the social fabric keeping the region together may tear apart. Its real GDP growth stood at 0.3% in 4Q2013, following positive readings in the previous two quarters. Furthermore, the purchasing managers’ indices (PMIs) for the manufacturing sector of the largest economies in Europe all signaled stronger growth in January 2014, with the exception of France. The key concern going forward is to address the Eurozone job crisis through higher and more labor-intensive growth. With higher economic growth, the economies in the periphery of the Eurozone will be able to create jobs and start reducing the large pool of the unemployed. More importantly, if those jobs are in labor-intensive industries, like services, for each percentage points of higher growth, there will be a large number of jobs being created. Higher and more labor–intensive growth in the periphery of the Eurozone cannot be achieved though through higher government spending. (GulfTimes)  Eurozone growth eases pressure on ECB for stimulus – The Eurozone economy expanded more than forecast in the final quarter of 2013 – led by Germany and France – easing pressure on the European Central Bank (ECB) to take action next month to counter low inflation and spur growth. EU statistics found that GDP in the Eurozone rose 0.3% after a 0.1% in the third quarter, which beats the median forecast of 0.2% in a Bloomberg News survey of 41 economists. For the entire 2013, GDP fell 0.4%. Meanwhile, the ECB President Mario Draghi put investors on a month's notice for further economic stimulus, stating that the central bank needed to get more information on the recovery before making any decision. Draghi said, the ECB is willing and ready to act, but maintained its benchmark interest rate at a record-low 0.25%. (Bloomberg)  Chinese inflation subdued as producer prices extend decline – Inflation in China stayed subdued in January 2014, while factory-gate prices extended the longest drop since 1990s, in a sign of moderating demand in the world's second-largest economy. The National Bureau of Statistics said the consumer price index rose 2.5% from a year earlier, the same pace as in December. The producer-price index fell 1.6%. The Chinese economic data is distorted in January and February due to the shifting of timing of the week-long Lunar New Year holiday, which began on January 31 this year. (Bloomberg) Regional  SEBI issues notice to Etihad on Jet deal – According to sources, the Securities & Exchange Board of India (SEBI) has issued a show-cause notice to Etihad Airways, saying it has violated takeover norms while purchasing 24% stake in Jet Airways. SEBI issued the notice to Etihad and asked for a response on why it should not make a tender offer to Jet public shareholders as part of takeover rules. Etihad has been asked to respond within 21 days. (Qatar Peninsula)  Saudi CMA announces listing of Saudi Marketing Company – The Saudi Capital Market Authority (Saudi CMA) announced that the listing and trading of the Saudi Marketing Company will commence on February 16, 2014 in the retail sector with the symbol 4006, with a fluctuation limit of 10%. (Tadawul)  Saudi CMA approves Al Rajhi Bank’s capital increase – The Saudi CMA’s board has approved Al Rajhi Bank’s request to increase its capital from SR15bn to SR16.25bn by issuing one bonus share for every 12 existing shares. This increase will be paid by transferring SR1.25bn from the retained earnings account to the bank’s capital. Consequently, the bank’s outstanding shares will increase from 1,500mn to 1,625mn shares, by an increase of 125mn shares. The bonus shares eligibility is limited to the shareholders who are registered at the close of trading on the day of the EGM, which will be determined later. (Tadawul)  NADEC to raise capital to SR700mn through bonus shares – The National Agriculture Development Company’s (NADEC) board has recommended a capital increase of 16.7% through bonus shares. The company’s capital will be raised from SR600mn to SR700mn by issuing one bonus share for every six shares. The increase will be carried out through capitalization of SR100mn from the retained earnings account. Consequently, the company’s share will rise from 60mn shares to 70mn shares. The bonus shares are limited to the shareholders who are registered in the Securities Depository Center at the close of trading on the day of the EGM, which will be determined later. (Tadawul) Page 4 of 7
  5. 5.  EPCC declares SR301mn dividend for 2013 – The Eastern Province Cement Company’s (EPCC) board has recommended distribution of dividends worth SR301mn to its shareholders for FY2013. The dividend per share will be SR3.5, representing 35% of the face value. Those shareholders who are registered with the Securities Depository Center on March 19, 2014 are eligible for this dividend. (Tadawul)  Saudia targets to reach 200 destinations worldwide – The Saudi Arabian Airlines (Saudia) is planning to expand its operations to around 200 destinations worldwide with minimum connections. Saudia’s CEO Abdul Aziz Al-Hazmi said that the company wants to strengthen its presence in Europe, North America, Asia, especially in China and Indonesia as well as enter new markets in Russia, Mexico, Japan, Vietnam, Taiwan and Czech Republic. He said Saudia joined SkyTeam – a 19member global alliance of airlines in May 2012 – as part of its efforts to offer high quality services to passengers. He added that Saudia has set out a strategy to capture a market share of 22mn from 28.5mn domestic passengers by 2020. (Zawya)  Rexam acquires majority stake in Saudi UAC – UK-based Beverage cans maker Rexam acquired a 51% stake in Saudibased United Arab Can Manufacturing Co. (UAC) – a supplier to the Coca-Cola Co. – for $122mn as part of its strategy to expand in emerging markets. Rexam stated that UAC’s plant in Dammam has an annual capacity of 1.8bn cans. The deal is expected to close in 3Q2014. (GulfBase.com)  Saudi-Singaporean JV banks on flagship product – Mawj Telecom and TreeBox Solutions, the first Saudi-Singaporean joint venture firm, will launch its first flagship project and is hoping to generate $75mn from expected 1.5mn customers. Mawj Telecom’s Chairman Sheikh Abdullah Zaid Al-Meleihi said that the Mawj-OnTalk is a secure mobile communications solution that provides safe means for users to conduct voice calls, instant messaging and attachments on mobile devices. (GulfBase.com)  Saudi non-oil exports up 9.2% to SR19.9bn – According to a report released by the Central Department of Statistics & Information (CDSI), non-oil exports from Saudi Arabia rose by 9.2% to reach SR19.93bn in December 2013 as compared to December 2012. The CDSI report stated that imports dropped by 6.5% to SR49.15bn in the comparable periods. Exports of chemical products stood first, capturing 32.33% of total non-oil exports at the value of SR6.44bn, followed by plastic products (32.33%) at SR6.44bn and transport equipment (12.80%). Machines & electric equipment topped the highest value of Saudi imports during December at SR12.64bn, capturing 25.72% of total imports, followed by transport equipment at SR9.51bn (19.35%), mineral products at SR5.59bn (11.37%). (GulfBase.com)  Egypt awards oil & gas contract to Dana Gas – The Egyptian oil ministry has awarded oil & gas exploration deals to UAEbased Dana Gas, Ireland’s Petroceltic International and Italy’s Edison. The ministry said that these agreements will bring in investment of at least $265mn for exploring eight new wells in Northern Sinai on the Mediterranean Sea and Nile Delta. (GulfBase.com)  Air Arabia to launch flights to Cairo – Air Arabia has announced plans to strengthen connectivity between the UAE and Egypt with the launch of non-stop services to Cairo, the Egyptian capital city. The new service from the carrier's primary hub in Sharjah International Airport marks Air Arabia's fifth destination in Egypt and the 90th destination worldwide. From February 27, Air Arabia will offer three weekly flights to Cairo, which will depart from Sharjah on Tuesday, Thursday and Saturday. (Bloomberg)  Deyaar raises foreign ownership to 25% – Dubai-based Deyaar Development announced that its board has recommended allocating 49% of its share capital, which is open to non-UAE nationals, to GCC and foreign investors, provided that the share of capital owned by foreigners does not exceed 25%. The board also resolved that the company's share capital is sufficient currently. With the UAE joining the MSCI Emerging Markets Index, it is expected that many global investors and institutions will adjust their emerging market allocations to the UAE. The move has been forecast to attract AED1bn of new capital into listed companies. (GulfBase.com)  TI'ME plans new hotels in UAE, Qatar, Egypt – TI’ME Hotels Management plans to open properties in Ajman, Luxor, Qatar and Abu Dhabi over the next 18 months, taking the group’s portfolio to 11 properties. In 2014, the mid-scale TI’ME group will take over the management of the 154-room TI’ME Tut Hotel in Luxor, Egypt as well as the TI’ME Capital Hotel Apartments in Ajman, UAE, with 120 apartments in March. Later in 2015, the 42-storey Al Jawhara TI’ME furnished apartments will open in Abu Dhabi, and in Qatar, the nine-storey TI’ME Rako Hotel will open its doors in the industrial belt of Wakra. (Bloomberg)  Emirates signs codeshare deal with Jetstar – Emirates and Jetstar Airways announced a codeshare agreement that is set to open up new destinations for the UAE national carrier across Australia, New Zealand and South East Asia. Emirates’ code will now be placed on a number of routes operated by Jetstar. The alliance is expected to give passengers access to 27 new routes and six new destinations such as Bali in Indonesia, Byron Bay in Australia, Dunedin in New Zealand and Siem Reap in Cambodia. Emirates Skywards members will be able to earn miles for flights on Jetstar-operated routes having the Emirates code, as well as be able to use their miles to buy reward flights on any Jetstar service. (GulfBase.com)  Dubai records 15.2% rise in passenger traffic in 2013 – Dubai International Airport completed the year 2013 with a 15.2% rise in passengers as compared to 2012, as the domestic economic growth and increased tourist numbers fuelled the gains. According to the figures released by Airports Council International, Dubai handled 66mn passengers last year, while Abu Dhabi and Sharjah airports saw growth of 12.4% and 12% respectively. Registering a 10.1% YoY growth, Middle East airports were ahead of the airports in the Asia-Pacific region, which recorded only 7.2% growth during the year. The Middle East saw a 10.5% growth in December 2013 as compared to December 2012 figures. (Bloomberg)  RAK Properties appoints deputy CEO – RAK Properties has appointed Paul Ashton as Deputy Chief Executive Officer. (ADX)  ADNH’s BoD approves 5% dividend – Abu Dhabi National Hotels’ (ADNH) board of directors has recommended the distribution of cash dividends equivalent to 5% of the company's share capital, amounting to AED50mn. This recommendation will be presented for approval at the company's AGM. (ADX)  S&P affirms Kuwait ratings at AA/A-1, outlook stable – Standard & Poor's (S&P) affirmed Kuwait's long-term and shortterm foreign and local currency sovereign credit ratings at AA/A1, with a Stable outlook. S&P said that Kuwait has abundant resources that have made it wealthy and enable it to build strong external and fiscal balance sheet positions. S&P said that the stable outlook balances in its view of Kuwait's very strong fiscal and external positions against its non-transparent political system, the region’s geopolitical tensions and the undiversified Page 5 of 7
  6. 6. economy in which the real GDP per capita growth has been weak. (Reuters)  KFH acquires Safat Tower in KD11mn debt settlement deal – Kuwait Finance House (KFH) has acquired Al-Safat Commercial Tower in a final debt settlement of KD11mn deal with a client. KFH’s acting CEO Anwar Al-Ghaith stated that the tower will be transferred to the bank's investment portfolio as one of its assets. Al-Ghaith emphasized on the tower’s importance, which enjoys a strategic location in Al-Qibla area in the center of the capital. In addition, the property consists of 31 storeys with high occupancy ratio. (Bloomberg)  SPS proposes 25% cash dividend – Salalah Port Services’ (SPS) board of directors proposed a cash dividend of 25% on the paid-up equity capital for the financial year ended December 31, 2013. The dividend is subject to approval by the shareholders at the AGM to be held on March 26, 2014. (MSM)  Al Batinah Hotels’ BoD recommends 7% bonus shares for 2013 – Al Batinah Hotels Company’s board has recommended bonus shares of 7% for the year ended December 31, 2013, which is subject to the approval by its shareholders. The audited financial statements and other reports will be presented to the company’s shareholders for approval in the AGM, which will be held on March 9, 2014 at Sohar. (MSM) dividend of 36% of its nominal value of shares (of which 14 fils per share was already distributed as interim dividend for 2013) to its shareholders registered on the date of the AGM. (Bahrain Bourse)  ARIG not to distribute dividends for 2013 – The Arab Insurance Group’s (ARIG) board of directors decided not to distribute dividends to its shareholders for the financial year ended December 31, 2013. (Bahrain Bourse)  BFM’s BoD recommends 10% cash dividend – Bahrain Flour Mills Company’s (BFM) board of directors recommend a cash dividend of 10% of paid-up capital (i.e 10 fils per share) to its shareholders registered on the date of the AGM. (Bahrain Bourse)  BMI Bank’s net profit soars to $8.8mn – Bahraini retail bank BMI Bank has reported a net profit of $8.8mn for FY2013, thus registering an increase of 577% as compared to a net profit of $1.3mn in FY2012. The bank posted a net profit of $6.5mn post provisions for 4Q2013 as compared to a net profit of $0.3mn during the same period in 2012. The total income stood at $61.4mn as compared to $56.2mn reported during the corresponding period in 2012. Total assets at the end of 2013 stood at $1.9bn. Net interest income for 2013 increased by 10.7% to $45.6mn from $41.2mn in 2012. (Bloomberg)  Oman Gas Company begins operations in Sur – The Oman Gas Company (OGC) announced the beginning of its operations in the Wilayat of Sur. OGC’s CEO Eng. Yousuf Bin Mohammed al Ojaili said that the Wilayat of Sur is the sixth regional district of the company’s operations and the gas supply station is the second largest among the other gas supply stations managed by the company. (GulfBase.com)  NCSI: Oman's top-end hotels see 11% revenue rise in 2013 – According to figures released by the National Centre for Statistics & Information (NCSI), top end hotels in Oman have posted 11% increase in revenues for 2013 as compared to 2012. The combined revenues of 31 four-star and five-star hotels reached OMR149.3mn as compared to OMR134.5mn in 2012. Five-star hotels held the bigger portion of the revenue split with OMR102.2mn. The NCSI also revealed that the total number of hotel guests increased by 10.8% in 2013, totaling 614,000 guests against 554,000 in 2012. (Bloomberg)  Oman’s GDP grows 2.6% in 9M2013 – The preliminary data available for the first nine months of 2013 (January-September) pointed to a modest YoY nominal GDP growth of 2.6% in Oman. The growth in nominal GDP reflected a marginal 1.0% contraction in the petroleum sector and 7.8% increase in the non-petroleum sector. Oil production in Oman rose by 2.3% to 343.8mn barrels during 2013 from 336.2mn barrels during 2012. Omani crude oil prices in the international markets averaged $105.5 per barrel during 2013 as compared to $109.6 per barrel during 2012. The average inflation based on CPI for the Oman stood at 1.1% during 2013 as compared to 2.9% in 2012. Despite overall low inflation witnessed in 2013 so far, the pressure on prices could be mainly seen from two commodity groups: Food, beverages & tobacco and educational services. The provisional data on Oman’s fiscal position pointed to a surplus of OMR401mn during 2013 as compared to a small deficit of OMR80.6mn during 2012. (Bloomberg)  Inovest not to distribute dividends for 2013 – Inovest’s board of directors decided not to distribute cash dividends to its shareholders for the financial year ended December 31, 2013. (Bahrain Bourse)  Alba’s BoD recommends 36% cash dividend – Aluminum Bahrain’s (Alba) board of directors recommended a cash Page 6 of 7
  7. 7. Daily Index Performance 142.9 130.0 1.5% 1.3% 1.0% 0.5% 0.5% 0.5% 0.2% 0.2% 0.2% 0.0% QE Index Oct-12 May-13 S&P Pan Arab Dec-13 S&P GCC Source: Bloomberg Asset/Currency Performance Gold/Ounce Silver/Ounce Crude Oil (Brent)/Barrel (FM Future) Natural Gas (Henry Hub)/MMBtu North American Spot LPG Propane Price North American Spot LPG Normal Butane Price Euro Source: Bloomberg Close ($) 1D% WTD% YTD% 1,318.69 1.2 4.1 9.4 21.48 4.8 7.3 10.3 109.08 0.3 (0.4) 5.54 4.4 155.00 138.50 Global Indices Performance Close 1D% WTD% YTD% 16,154.39 0.8 2.3 (2.5) S&P 500 1,838.63 0.5 2.3 (0.5) (1.6) NASDAQ 100 4,244.03 0.1 2.9 1.6 (5.8) 27.4 STOXX 600 333.32 0.6 2.5 1.5 4.0 (5.7) 22.8 DAX 9,662.40 0.7 3.9 1.2 3.4 (7.2) 1.5 FTSE 100 6,663.62 0.1 1.4 (1.3) DJ Industrial 1.37 0.1 0.4 (0.4) CAC 40 101.80 (0.4) (0.5) (3.3) Nikkei GBP 1.67 0.5 2.0 1.1 MSCI EM CHF 1.12 0.1 0.6 0.0 SHANGHAI SE Composite AUD 0.90 0.6 0.8 1.3 USD Index 80.14 (0.2) (0.7) RUB 35.17 (0.0) 1.2 BRL 0.42 0.7 (0.2) (1.0) Yen Dubai Mar-12 Abu Dhabi Aug-11 Kuwait Jan-11 (0.2%) Qatar (0.5%) Saudi Arabia Jun-10 165.5 Oman 170.0 160.0 150.0 140.0 130.0 120.0 110.0 100.0 90.0 80.0 Bahrain Rebased Performance 4,340.14 0.6 2.6 1.0 14,313.03 (1.5) (1.0) (12.1) 957.31 1.2 2.1 (4.5) 2,115.85 0.8 3.5 (0.0) HANG SENG 22,298.41 0.6 3.1 (4.3) 0.1 BSE SENSEX 20,366.82 0.9 (0.0) (3.8) 7.0 Bovespa 48,201.11 0.8 0.3 (6.4) 1,343.20 1.6 0.1 (6.9) Source: Bloomberg RTS Source: Bloomberg 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 saugata.sarkar@qnbfs.com.qa ahmed.shehada@qnbfs.com.qa keith.whitney@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa 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 7 of 7

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