13 May Daily market report

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13 May Daily market report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index rose 0.8% to close at 13,174.7. Gains were led by the Insurance and Industrials indices, gaining 6.6% and 1.4% respectively. Top gainers were Qatar Insurance Co. and Ezdan Holding Group, rising 10.0% each. Among the top losers, Qatari Investors Group fell 2.3%, while Qatar General Ins. & Reins. Co. declined 1.1%. GCC Commentary Saudi Arabia: The TASI index rose 0.4% to close at 9,816.2. Gains were led by Hotel & Tourism and Insurance indices, rising 2.2% and 1.5% respectively. National Agri. Dev. Co. gained 9.9% and Al Ahsa Dev. Co. rose 9.6%. Dubai: The DFM index gained 2.2% to close at 5,327.2. The Industrial index gained 13.1%, while the Real Estate & Construction index rose 3.8%. National Cement Co. rose 13.1%, while Arabtec Holding was up 11.7%. Abu Dhabi: The ADX benchmark index rose 0.6% to close at 5,035.2. The Telecommunication index gained 1.8%, while the Real Estate Index was up 1.4%. Union Cement Co. surged 14.4%, while Gulf Pharm. Ind. gained 3.9%. Kuwait: The KSE index gained 0.2% to close at 7,403.6. The Basic Material index gained 2.4%, while Oil & Gas index was up 1.2%. National Petroleum Services Company rose 8.8%, while Tamdeen Investment Co. was up 7.7%. Oman: The MSM index rose 0.2% to close at 6,761.3. Gains were led by the Financial and Industrial indices, rising 0.3% and 0.1% respectively. Bank Muscat gained 1.9%, while National Aluminum Products was up 1.7%. Bahrain: The BHB index fell 0.3 to close at 1,468.4. The Investment index declined 1.6%, while the Services index was down 0.5%. Arab Banking Corporation fell 3.8%, while Khaleeji Commercial Bank was down 1.9%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar Insurance Co. 81.40 10.0 486.6 53.0 Ezdan Holding Group 27.50 10.0 1,273.6 61.8 Aamal Co. 17.71 10.0 1,631.8 18.1 Gulf Warehousing Co. 57.00 4.6 65.3 37.3 Mannai Corp. 119.90 2.5 47.3 33.4 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 18.41 (1.1) 3,208.1 71.9 Qatar Gas Transport Co. 25.10 0.6 2,298.6 24.0 Aamal Co. 17.71 10.0 1,631.8 18.1 Qatar & Oman Investment Co. 14.80 1.0 1,613.6 18.2 Barwa Real Estate Co. 38.00 (0.7) 1,553.1 27.5 Market Indicators 13 May 14 12 May 14 %Chg. Value Traded (QR mn) 1,015.0 1,034.0 (1.8) Exch. Market Cap. (QR mn) 738,468.5 726,371.5 1.7 Volume (mn) 23.5 21.5 9.1 Number of Transactions 11,410 9,738 17.2 Companies Traded 42 43 (2.3) Market Breadth 29:11 21:17 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 19,646.38 0.8 1.6 32.5 N/A All Share Index 3,353.16 1.0 1.5 29.6 16.1 Banks 3,203.02 0.8 1.3 31.1 15.9 Industrials 4,532.41 1.4 2.4 29.5 17.7 Transportation 2,414.29 1.2 2.1 29.9 15.5 Real Estate 2,628.70 (0.5) 0.9 34.6 13.2 Insurance 3,427.29 6.6 5.6 46.7 9.0 Telecoms 1,727.21 (0.2) (0.9) 18.8 24.1 Consumer 7,094.48 0.2 (0.5) 19.3 28.4 Al Rayan Islamic Index 4,319.51 0.3 0.9 42.3 18.6 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Arabtec Holding Co. Dubai 7.38 11.6 217,066.0 260.0 Qatar Insurance Co. Qatar 81.40 10.0 486.6 53.0 Ezdan Holding Group Qatar 27.50 10.0 1,273.6 61.8 Aamal Co. Qatar 17.71 10.0 1,631.8 18.1 Ithmaar Bank Bahrain 0.17 6.3 90.8 (26.1) GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Tihama Saudi Arabia 288.08 (5.2) 1,094.3 162.5 Arab Banking Corp. Bahrain 0.76 (3.8) 69.0 101.3 Aramex Dubai 3.22 (2.7) 1,854.0 5.9 Ajman Bank Dubai 3.06 (2.5) 341.0 23.4 Qatari Investors Group Qatar 64.50 (2.3) 606.9 47.6 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% Qatari Investors Group 64.50 (2.3) 606.9 47.6 Qatar General Ins. & Reins. Co. 44.30 (1.1) 3.8 11.0 Vodafone Qatar 18.41 (1.1) 3,208.1 71.9 Salam International Inv. Co. 14.39 (0.7) 1,075.0 10.6 Barwa Real Estate Co. 38.00 (0.7) 1,553.1 27.5 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Qatar Fuel Co. 230.90 0.0 100,867.8 5.7 Masraf Al Rayan 50.30 0.6 63,279.4 60.7 QNB Group 196.60 1.3 62,982.4 14.3 Vodafone Qatar 18.41 (1.1) 59,984.6 71.9 Barwa Real Estate Co. 38.00 (0.7) 59,486.5 27.5 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* 13,174.74 0.8 1.6 3.9 26.9 278.81 202,857.3 16.4 2.2 3.8 Dubai 5,327.19 2.2 0.5 5.3 58.1 816.15 97,219.7 21.8 2.1 2.0 Abu Dhabi 5,035.19 0.6 (0.1) (0.2) 17.4 221.84 137,526.5 14.9 1.9 3.4 Saudi Arabia 9,816.19 0.4 0.3 2.4 15.0 3,192.01 534,051.3 19.5 2.4 2.9 Kuwait 7,403.60 0.2 (0.0) (0.1) (1.9) 94.12 115,352.1 15.5 1.2 4.0 Oman 6,761.34 0.2 (0.9) 0.5 (1.1) 19.63 24,512.2 12.1 1.7 3.9 Bahrain 1,468.37 (0.3) (0.2) 2.9 17.6 15.68 54,045.0 10.6 1.0 4.7 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 13,050 13,100 13,150 13,200 13,250 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 rose 0.8% to close at 13,174.7. The Insurance 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.  Qatar Insurance Co. and Ezdan Holding Group were the top gainers, rising 10.0% each. Among the top losers, Qatari Investors Group fell 2.3%, while Qatar General Ins. & Reins. Co. declined 1.1%.  Volume of shares traded on Tuesday rose by 9.1% to 23.5mn from 21.5mn on Monday. However, as compared to the 30-day moving average of 30.6mn, volume for the day was 23.4% lower. Vodafone Qatar and Qatar Gas Transport Co. were the most active stocks, contributing 13.7% and 9.8% 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)1Q2014 % Change YoY Operating Profit (mn) 1Q2014 % Change YoY Net Profit (mn) 1Q2014 % Change YoY Damac Properties Co. Dubai USD 864.0 NA – – 210.0 79.5% Emirates Refreshments (ERC) Dubai AED 16.6 18.8% -0.5 NA -0.4 NA Dubai National Insurance & Reinsurance (DNIR) Dubai AED 20.0 42.6% 8.2 6.5% 10.7 11.7% Waha Capital Abu Dhabi AED – – – – 152.0 78.8% Ras Al Khaimah Co. for White Cement & Construction Materials (Rak White Cement) Abu Dhabi AED 95.9 -14.7% – – 13.8 -35.1% Al Fujairah National Insurance Co. (AFNIC) Abu Dhabi AED 29.9 2.7% 3.4 -58.0% 5.0 -34.7% Emirates Driving Co. (EDC) Abu Dhabi AED 44.3 13.1% – – 14.2 19.8% Tamdeen Real Estate Co. Kuwait KD – – – – 3.8 35.9% HumanSoft Holding Co. Kuwait KD – – – – 1.4 47.6% Salhia Real Estate Co. (SREC) Kuwait KD – – – – 2.6 1.6% Ikarus Petroleum Industries Co. (IIPC) Kuwait KD – – – – 2.8 63.3% Bahrain Car Park Co. (BCPC) Bahrain BHD 0.4 -5.6% 0.4 2.6% 0.4 1.5% Bahrain National Holding Co. (BNH) Bahrain BHD 3.5 – 0.6 7.7% 1.6 30.4% Source: Company data, DFM, ADX, MSM Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 05/13 US NFIB NFIB Small Business Optimism April 95.2 94.5 93.4 05/13 US US Census Bureau Retail Sales Advance MoM April 0.10% 0.40% 1.50% 05/13 US US Census Bureau Retail Sales Control Group April -0.10% 0.50% 1.30% 05/13 US BLS Import Price Index MoM April -0.40% 0.30% 0.40% 05/13 US BKS Import Price Index YoY April -0.30% 0.30% -0.60% 05/13 US US Census Bureau Business Inventories March 0.40% 0.40% 0.50% 05/13 EU ZEW ZEW Survey Expectations May 55.2 – 61.2 05/13 France Banque De France Current Account Balance March -1.5B – -1.4B 05/13 Germany Destatis Wholesale Price Index MoM April 0.20% – 0.00% 05/13 Germany Destatis Wholesale Price Index YoY April -1.30% – -1.70% 05/13 Germany ZEW ZEW Survey Current Situation May 62.1 60.5 59.5 05/13 Germany ZEW ZEW Survey Expectations May 33.1 40.0 43.2 05/13 UK BRC BRC Sales Like-For-Like YoY April 4.20% 1.60% -1.70% 05/13 Spain INE House transactions YoY March 22.80% – -27.60% 05/13 Italy ISTAT CPI EU Harmonized YoY April 0.50% 0.60% 0.50% 05/13 China NBS Fixed Assets Ex Rural YTD YoY April 17.30% 17.70% 17.60% 05/13 China NBS Retail Sales YTD YoY April 12.00% 12.00% 12.00% 05/13 China NBS Retail Sales YoY April 11.90% 12.20% 12.20% Overall Activity Buy %* Sell %* Net (QR) Qatari 60.07% 62.18% (21,429,036.91) Non-Qatari 39.93% 37.82% 21,429,036.91
  3. 3. Page 3 of 6 05/13 China NBS Industrial Production YTD YoY April 8.70% 8.70% 8.70% 05/13 China NBS Industrial Production YoY April 8.70% 8.90% 8.80% 05/13 Japan Bank of Japan Money Stock M2 YoY April 3.40% 3.40% 3.60% 05/13 Japan Bank of Japan Money Stock M3 YoY April 2.80% 2.80% 2.90% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  MoI to unveil labor law changes today – The much-awaited amendments to labor laws in Qatar will be announced by the Ministry of Interior (MoI) today. HE the Assistant Foreign Minister for International Cooperation Sheikh Mohamed bin Abdurrahman bin Jassim al-Thani stated that the review was intended to promote and protect the rights of migrant workers. Sheikh Mohamed, who is also head of Qatar’s delegation to the UN Human Rights Council, explained that Qatar has dealt positively and openly with all the remarks regarding the hosting of the FIFA World Cup 2022, stressing that it would be a great incentive for the government to fulfill all requirements contributing to the event’s success. Two of the most eagerly- awaited changes are the abolition of the exit permit and a two- year employment ban on those who quit service and leave the country. The sponsorship law currently demands that all foreign workers have to secure an exit permit to leave the country. (Gulf-Times.com)  Ashghal signs QR38.52bn deals for expressways - The Public Work Authority (Ashghal) has signed deals worth QR38.52bn so far to build expressways across the country. Eleven of these projects worth QR18.21bn are under construction and are scheduled to be completed in 2014. (Peninsula Qatar)  Project Qatar to discuss $200bn projects - The Project Qatar 2014 expo hosted different ministries, government sector officials, embassies, decision-makers and industry professionals from the construction sector on its first day. The event is expected to see discussions on various business deals for projects worth around $200bn that are in the pipeline in Qatar in the run-up to the 2022 FIFA World Cup as well as achieving the Qatar National Vision 2030. (Bloomberg)  PwC: Qatar hotels to see gain in room revenues in 2014-15 – According to PricewaterhouseCoopers (PwC), Qatar’s hospitality industry may see positive growth in occupancy and average daily rates (ADR), driving revenue per available room (RevPAR) up by 5.2% in 2014 and 5.4% in 2015. PwC found that hotels recorded 1.3mn visitors in 2013, which is an increase of 8.3% from 2012. (Gulf-Times.com)  Singapore–Qatar trade volume grows to $8bn in 2013 – Singapore’s Ambassador to Qatar Wong Kwok Pun said the trade volume between Qatar and Singapore has reached $8bn in 2013, indicating a slight increase of 2% as compared to $7.8bn in 2012. He noted that the Singapore’s bilateral trade with Qatar is very strong. (Gulf-Times.com)  Qatar Re appoints Global Head of Claims – Qatar Re has appointed Andrew Deighton as its Global Head of Claims, effective May 1, 2014. Further, Michael Roth has been promoted to Head of International Property Catastrophe, effective May 1, 2014 and Marc Tueller has been promoted to Head of Agriculture, effective June 1, 2014. (GulfBase.com)  Ooredoo signs 3 Murabaha facilities for $498mn – Ooredo signed three commodity Murabaha facilities for a total value of $498mn. The three one-year tenor facilities worth $166mn each were agreed with Qatar Islamic Bank, Masraf Al Rayyan and Barwa Bank, and will be used for general corporate purposes. The latest set of Murabaha facilities follows the $1.25bn, five- year sukuk Islamic bond launched by Ooredoo in November 2013. The benchmark-sized US dollar sukuk will mature on December 3, 2018 and have a profit rate of 3.039%. (Qatar Tribune)  MCCS’ BoD to meet on June 2 – Mannai Corporation’s (MCCS) board of directors will meet on June 2, 2014 to discuss the progress of the company’s business. (QE) International  BoE’s Carney to tread fine line on growth, rates – The Bank of England’s (BoE) Governor Mark Carney faces a difficult balancing act when he will try to acknowledge Britain's strong economic recovery without adding to expectations of an early rise in interest rates. Britain is set to grow about 3% this year, faster than any other big, industrialized nation, and house prices in the country have jumped by about 10% over the past 12 months, raising fears of a new property bubble. However, the economy is just recovering to its size seen before the financial crisis, having taken far longer than most of its peers to get growth going again. The BoE believes the recovery can continue apace without pushing up inflation. Pressure is growing on Carney to show that the central bank will not raise its record-low borrowing costs too late. (Reuters)  French president faces voter angst over rising taxes, spending cuts – French President Francois Hollande has sought to pacify voter angst about rising taxes and spending cuts by predicting that the country’s economic recovery is now at hand. However, the rebound is nowhere in sight. GDP probably advanced by just 0.1% in the first quarter, according to Bloomberg News’ median of 28 forecasts. The official figures are due tomorrow, the same day chosen by public sector workers to protest against a wage freeze in place since 2010. Further, a week later, the French have to file their tax returns, with many having to pay more than before. French joblessness still remains at a record level of more than 3 million. The economic struggle has translated into record low popularity ratings for the Socialist French president, who took office two years ago and has three more years to go. (Bloomberg)  BoJ to watch El Nino for summer spending slowdown – The Bank of Japan (BoJ) officials are concerned about the cooler- than-normal weather triggered by El Nino will curb spending this summer and weigh on an economic rebound after a sales-tax increase. The officials are watching out for potential weakening in consumer spending and sentiment that could add to risks facing the Japanese economy from weak exports and developments in Ukraine. With an export recovery that could be gradual, the effects of El Nino require close monitoring. The Japan Meteorological Agency this week forecast a 70% chance El Nino will occur, the highest since its last occurrence in 2009, bringing lower temperatures that could continue through autumn. Meanwhile, Dai-ichi Life Research Institute Economist Toshihiro Nagahama warns that cooler weather could reduce growth by as much as 0.9% point in the third quarter. (Bloomberg)  PBoC calls for faster home lending in slump – China’s central bank called on the nation’s biggest lenders to accelerate
  4. 4. Page 4 of 6 the granting of mortgages, a sign that developer price cuts and incentives alone will not boost a slumping housing market and economy. The People’s Bank of China (PBoC) told 15 leading banks to improve efficiency of service, give timely approval for mortgages to qualified buyers. It also urged lenders to give priority to families buying their first homes and strengthen their monitoring of credit risks. Chinese Premier Li Keqiang is seeking to prevent a slowdown in the world’s second-largest economy. However, the housing market has become a drag on growth as developers, facing a surplus of empty units and falling sales, have put the brakes on new construction. According to data from the National Bureau of Statistics, home sales fell 18% in April from the previous month. (Bloomberg) Regional  OPEC sees balanced market, signals no big policy change in June – The OPEC said its current oil output is helping to meet global demand fully and leading to a balanced oil market in 2014, providing another sign that the exporter group is unlikely to alter output policy at its meeting on June 11. In its monthly report, the OPEC also raised the forecast demand for its crude oil in 2014 to 29.76mn bpd, up 110,000 bpd from the previous estimate. OPEC’s report said along with the ongoing increase in non-OPEC supply, the current OPEC production will contribute to fully meet expected demand, resulting in a fairly balanced market this year. The report adds to indications that the OPEC's upcoming meeting is unlikely to come up with major surprises. (Reuters)  BSFR plans SR2bn Tier 2 Sukuk issue – According to sources, Banque Saudi Fransi (BSFR) is planning to raise SR2bn to boost its capital base. BSFR’s investment banking arm, Saudi Fransi Capital, will help arrange the sale, which is expected to be take place within the next month. The issue will diversify its funding base and reduce its maturity mismatch position. (Bloomberg)  Hertz expands equipment rental business in Kingdom – Hertz Dayim Equipment Rental (Hertz) has opened a new equipment rental location in Riyadh to serve the multi-billion dollar initiatives in infrastructure, construction, event services and industrial sectors in the Central Province. Hertz is now a registered vendor with multiple contractors working for the $22bn Riyadh Metro project that is taking place over a five-year period. Hertz’s Riyadh operation will rent and sell equipment as well as provides comprehensive fleet management services. (GulfBase.com)  KSA, Tajikistan sign double taxation agreement – The Kingdom of Saudi Arabia (KSA) and Tajikistan have signed an agreement to avoid double taxation and prevent tax evasion on income and capital. The agreement was signed by Saudi Finance Minister Dr. Ibrahim bin Abdulaziz Al-Assaf and Tajikistan's Finance Minister Abdusalom Qurbonov on the sidelines of the First Arab Cooperation & Economic Forum with Central Asia and Azerbaijan. (Bloomberg)  Zahid Group acquires 30% stake in Total Maroc – Jeddah- based Zahid Group has acquired a 30% stake in Total Maroc. Total Maroc is currently preparing an initial public offering on the Casablanca Stock Exchange, which would allow investors to acquire 15% of the shares of Total Maroc. This agreement enables Zahid Group to reinforce its strategic relationship with Total, while contributing to a promising Saudi-Moroccan economic partnership. (Bloomberg)  Kingdom needs to spend $213bn on power, water projects – Saudi Deputy Electricity Minister Saleh al-Awaji said that the country needs to spend around SR800bn over the next 10 years to meet the soaring domestic demand for water and electricity. Al-Awaji expects the private sector investment to be 30% in power and water projects. Demand for power and water in the desert kingdom has grown significantly in recent years as an increasingly wealthy population consumes more to support affluent lifestyles and escape the searing summer heat. He said that the water and power sectors are among those whose demand is rising at high rates, with demand increasing at around 8% annually. (Bloomberg)  ICD plans sukuk, bond offering on May 14 – The Investment Corporation of Dubai (ICD) is planning to sell a dual-tranche bond and sukuk offering on May 14, 2014. ICD is aiming to issue an Islamic bond with a six-year lifespan and a conventional bond offering of 10-year duration. The dollar- denominated transaction will be benchmark-sized, which is traditionally understood to mean in excess of $500mn. ICD plans to conclude meetings with fixed income investors on May 13. The roadshow is being arranged by Citigroup, Dubai Islamic Bank, Emirates NBD, HSBC and Standard Chartered. (GulfBase.com)  Dubai Customs trademarks registration surge to 293 in 2013 – Dubai Customs has witnessed surge in trademarks (TM) registration from international companies. An aggregated number of 293 TMs were registered with Dubai Customs in 2013, while 131 complaints were filed by traders on infringement issues. Companies from the US spearheaded the list with 83 TMs divided over 22 companies; followed by 44 Swiss TMs from 8 companies, 35 Japanese TMs from 10 companies, 22 UK TMs from 5 companies, 13 French TMs from 6 companies, 12 German TMs of 3 companies, and 41 TMs from other countries. On the other hand, 43 local TMs were lodged by 26 domestic companies. (GulfBase.com)  Emirates keen to buy airline caterer from Lufthansa – The President of Emirates Airline’s Dnata services arm, Gary Chapman, said the company is interested in buying the world’s leading in-flight catering business, LSG Sky Chefs from Deutsche Lufthansa. LSG Sky Chefs would be a good fit as Emirates Group seeks deals in ground handling, catering and other travel services, he added. (Bloomberg)  Emaar to develop Al Mamzar beachfront project – Emaar Properties and Dubai Municipality have signed a MoU to develop a mixed-used beachfront lifestyle development in Al Mamzar. Under the agreement terms, Emaar will conduct feasibility studies and submit a detailed project report outlining the development potential to Dubai Municipality. The project, which is being planned around the 53-hectare Al Mamzar Lake, is expected to include waterfront residences, serviced residences, retail amenities, fountains and water features, and water-themed leisure attractions. (Bloomberg)  Financial House buys back 10% shares – The Financial House has bought back 20,000 of its shares listed on the Abu Dhabi Securities Exchange for AED3.6 per share. The company’s BoD had approved the buyback on October 16, 2012, which was approved by the SCA on March 17, 2014. The percentage of purchased shares in the subscribed capital was 10%. The number of shares remaining for purchase as per SCA’s approval is 30.230mn. (GulfBase.com)  Ruwais refinery to be commissioned by 1Q2014 – Abu Dhabi Oil Refining Company’s (Takreer) CEO, Jasem Ali Al-Sayegh, said that the Ruwais refinery expansion will be fully commissioned by the end of 2014. The expansion is planned to more than double the capacity of Ruwais refinery from 415,000 bpd, and is expected to be completed by 1Q2014. (GulfBase.com)
  5. 5. Page 5 of 6  Al Ramz Securities plans IPO – Abu Dhabi-based stock brokerage Al Ramz Securities is planning an initial public offering in line with its objective to turn into a full-fledged on- shore investment bank. ARS has appointed an international investment bank and a set of lawyers to prepare due diligence and valuation reports for the company’s board to review. (Bloomberg)  Kuwait’s inflation registers 3.0% in March – Inflation in Kuwait’s consumer price index (CPI) stood at 3.0% YoY in March, marginally higher than 2.9% in February. Inflation in house rent accelerated to 4.5% YoY in March. Food prices continued their descent in March, falling to 3.6% YoY, from 4.0% in February. Excluding food and housing, inflation actually decelerated in March to 1.9% YoY, from 2.1% in February. Inflation is expected to average around 3.5% in 2014, up from the 2013 average rate of 2.7%. (GulfBase.com)  Kuwait signs $3bn LNG supply deal with BP – Kuwait has signed a five-year LNG supply deal worth an estimated $3bn with BP. The deal signed by state-run Kuwait Petroleum Corp, will help Kuwait run its power plants during the summer. This is the third LNG deal signed by Kuwait after deals with Shell and Qatargas. The amount of LNG contracted by the three companies will be up to 2.5mn tons per year and it will come in 32 shipments per year, each comprising 80,000 tons. Shell will send 18 shipments, Qatargas will send eight and BP will send six. (Bloomberg)  New World Oil to acquire 49% stake, 60% economic interest in Al-Maraam – The shareholders of Al-Maraam Al-Ahliya Company for General Trading & Contracting (Al-Maraam) have entered into a sale purchase agreement with New World Oil & Gas. Under the agreement, New World Oil will become a 49% shareholder and hold a 60% economic interest in Al-Maraam with a view to fully develop Al Maraam's opportunities in the oil & gas sector in Kuwait. The initial consideration is of €1mn, while the balance of €4mn will be payable to the vendor once the shares have been subscribed for. (Bloomberg)  IMF: Omani non-hydrocarbon sector to grow at 5% – According to the IMF, the public investment program in Oman is expected to help maintain the Sultanate's non-hydrocarbon growth at around 5% over the medium term. The real non- hydrocarbon sector is estimated to have grown by 5.5% in 2013 and is projected to remain so in 2014. Fiscal and external sectors are estimated to have posted surpluses in 2013 at over 5.5% and around 10% of GDP, and these surpluses are expected in 2014 as well, though of lower magnitude. The banking system remains profitable and stable, with an average return on assets of 1.6%, equity return of 11%, capital adequacy ratio of 16.2%, and gross non-performing loans of 2.1% as of December 2013. (Bloomberg)  BISB awards software contract to EXUS – Bahrain Islamic Bank (BISB) has awarded EXUS a contract to implement EFS Collection & Recovery solution. The software will help BISB to increase its efficiency in both early and late-stage collections by introducing risk segmentation and collections automation. It will also support the bank's executives in their strategic decision- making, while ensuring compliance with Islamic banking practices and the local banking regulations. (GulfBase.com)  Bahrain to launch Gulf Railway by July 2014 – According to Bahrain’s Transport Minister, the route of Gulf Railway Tracks on Bahrain will be launched within two months. The railway is a result of an association between the Municipalities Minister and the projects implementation company, which is set to be linked with the Kingdom of Saudi Arabia. (Bloomberg)
  6. 6. Contacts Saugata Sarkar Keith Whitney Sahbi Kasraoui Head of Research Head of Sales Manager - HNWI Tel: (+974) 4476 6534 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 saugata.sarkar@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 6 of 6 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg (* Market closed on May 13, 2014) 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 Jun-10 Jan-11 Aug-11 Mar-12 Oct-12 May-13 Dec-13 QE Index S&P Pan Arab S&P GCC 0.4% 0.8% 0.2% (0.3%) 0.2% 0.6% 2.2% (0.6%) 0.0% 0.6% 1.2% 1.8% 2.4% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,293.60 (0.2) 0.4 7.3 DJ Industrial 16,715.44 0.1 0.8 0.8 Silver/Ounce 19.55 0.0 2.0 0.4 S&P 500 1,897.45 0.0 1.0 2.7 Crude Oil (Brent)/Barrel (FM Future) 109.24 0.8 1.3 (1.4) NASDAQ 100 4,130.17 (0.3) 1.4 (1.1) Natural Gas (Henry Hub)/MMBtu 4.46 (0.9) (2.5) 2.7 STOXX 600 341.89 0.3 1.0 4.2 LPG Propane (Arab Gulf)/Ton 103.38 (0.8) (0.5) (18.3) DAX 9,754.43 0.5 1.8 2.1 LPG Butane (Arab Gulf)/Ton* 119.25 0.0 (0.3) (12.2) FTSE 100 6,873.08 0.3 0.9 1.8 Euro 1.37 (0.4) (0.4) (0.3) CAC 40 4,505.02 0.3 0.6 4.9 Yen 102.26 0.1 0.4 (2.9) Nikkei 14,425.44 2.0 1.6 (11.5) GBP 1.68 (0.2) (0.1) 1.6 MSCI EM 1,022.44 0.7 1.5 2.0 CHF 1.12 (0.3) (0.4) 0.3 SHANGHAI SE Composite 2,050.73 (0.1) 2.0 (3.1) AUD 0.94 (0.0) (0.0) 5.0 HANG SENG 22,352.38 0.4 2.2 (4.1) USD Index 80.14 0.3 0.3 0.1 BSE SENSEX 23,871.23 1.4 3.8 12.8 RUB 34.84 (0.7) (1.1) 6.0 Bovespa 53,907.46 (0.3) 1.5 4.7 BRL 0.45 0.0 (0.1) 6.7 RTS 1,254.29 1.6 1.7 (13.1) 189.3 155.5 141.4

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