19 August Daily Market Report


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19 August Daily Market Report

  1. 1. Page 1 of 5 QE Intra-Day Movement Qatar Commentary The QE index rose 1.3% to close at 10,038.4. Gains were led by the Real Estate and Transportation indices, gaining 1.9% and 1.8% respectively. Top gainers were Qatar General Ins. & Rein. Co. and Medicare Group, rising 5.3% and 3.2% respectively. Among the top losers, Qatar Cinema & Film Dist. Co. fell 3.8%, while Zad Holding Co. declined 1.5%. GCC Commentary Saudi Arabia: The TASI index rose 0.6% to close at 8,203.2. Gains were led by the Transport and Cement indices, rising 3.5% and 2.1% respectively. Aljazira Takaful Taawuni Co. gained 9.9%, while Nat. Shipping was up 5.7%. Dubai: The DFM index gained 1.5% to close at 2,666.0. The Inv. & Fin. Services index rose 2.4%, while the Real Estate & Construction index was up 1.6%. Gulf Gen. Inv. Co. surged 15.0%, while Arabtec Holding was up 4.1%. Abu Dhabi: The ADX benchmark index rose 0.6% to close at 3,898.5. The Real Estate index gained 2.2%, while the Energy index was up 1.7%. Insurance House rose 11.1%, while Arkan Building Materials Co. was up 4.0%. Kuwait: The KSE index declined marginally to close at 8,132.3. The Consumer Ser. index fell 1.0%, while the Health Care index was down 0.8%. Real Estate Asset Mgmt. declined 6.8%, while Refrigeration Ind. fell 5.1%. Oman: The MSM index rose 0.8% to close at 6,898.9. Gains were led by the Bank. & Inv. and Industrial indices, gaining 0.8% and 0.7% respectively. Gulf Int. Chemicals rose 7.2%, while Al Omaniya Financial Ser. was up 5.6%. Bahrain: The BHB index gained 0.1% to close at 1,202.7. The Services index rose 1.9%, while the Insurance index was up 0.2%. Seef Properties gained 3.3%, while Bahrain Telecommunications Co. was up 2.9%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar General Ins. & Rein. Co. 53.90 5.3 0.2 17.2 Medicare Group 50.90 3.2 141.5 42.6 National Leasing 35.80 3.0 228.4 (20.8) Al Khaliji 17.60 2.9 702.2 3.6 Salam International Investment Co. 11.85 2.7 234.6 (6.4) Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Qatar Gas Transport Co. 21.00 2.6 2,955.5 37.6 Mazaya Qatar Real Estate Dev. 11.94 2.6 1,654.1 8.5 United Development Co. 22.99 0.8 956.6 29.2 Qatar Insurance Co. 61.50 (0.2) 944.3 14.0 Masraf Al Rayan 30.20 0.3 757.3 21.8 Market Indicators 19 Aug 13 18 Aug 13 %Chg. Value Traded (QR mn) 400.2 220.5 81.5 Exch. Market Cap. (QR mn) 548,583.0 542,705.5 1.1 Volume (mn) 11.8 5.8 104.0 Number of Transactions 4,617 2,967 55.6 Companies Traded 42 38 10.5 Market Breadth 32:8 17:20 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 14,342.57 1.3 1.5 26.8 N/A All Share Index 2,525.76 1.2 1.3 25.4 13.4 Banks 2,444.38 1.2 1.1 25.4 12.9 Industrials 3,217.17 1.1 1.2 22.5 11.9 Transportation 1,852.79 1.8 3.6 38.2 12.7 Real Estate 1,819.31 1.9 2.0 12.9 13.7 Insurance 2,304.41 1.2 0.4 17.4 9.5 Telecoms 1,495.60 1.5 1.8 40.4 15.8 Consumer 5,996.11 0.6 0.3 28.4 25.1 Al Rayan Islamic Index 2,874.45 1.0 1.6 15.5 15.0 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% National Shipping Co. Saudi Arabia 23.30 5.7 5,134.4 21.7 Qatar Gen. Ins. & Rein. Qatar 53.90 5.3 0.2 17.2 Combined Group Cont. Kuwait 1.24 5.1 18.4 (15.1) Savola Group Saudi Arabia 57.75 5.0 1,522.4 44.4 City Cement Co. Saudi Arabia 26.50 4.7 1,009.0 53.6 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Ithmaar Bank Bahrain 0.26 (3.7) 1,050.0 52.9 Al Tayyar Travel Saudi Arabia 92.00 (3.2) 698.5 118.2 Saudi Airlines Cater. Saudi Arabia 128.00 (2.1) 369.9 64.1 Al Mouwasat Med. Saudi Arabia 83.25 (2.1) 181.0 54.9 Deyaar Development Dubai 0.47 (1.9) 103,841.3 32.1 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% Qatar Cinema & Film Dist. Co. 50.10 (3.8) 0.0 (12.0) Zad Holding Co. 67.00 (1.5) 18.0 13.9 Qatar Industrial Manufacturing Co. 50.20 (1.4) 58.5 (5.5) Ezdan Holding Group 17.66 (1.3) 153.2 (3.0) Mannai Corp 86.90 (1.3) 2.2 7.3 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Qatar Gas Transport Co. 21.00 2.6 61,671.2 37.6 Qatar Insurance Co. 61.50 (0.2) 57,616.8 14.0 Industries Qatar 162.00 1.5 27,455.6 14.9 Masraf Al Rayan 30.20 0.3 22,854.8 21.8 United Development Co. 22.99 0.8 21,879.5 29.2 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* 10,038.40 1.3 1.5 3.4 20.1 109.90 150,640.9 12.6 1.8 4.6 Dubai 2,665.95 1.5 1.3 3.0 64.3 168.71 65,862.7 15.5 1.1 3.0 Abu Dhabi 3,898.52 0.6 0.4 1.3 48.2 40.99 111,910.6 11.1 1.4 4.6 Saudi Arabia 8,203.20 0.6 0.9 3.6 20.6 1,551.14 432,378.4 17.1 2.1 3.6 Kuwait 8,132.30 (0.0) 0.5 0.8 37.0 96.34 111,156.0 20.1 1.3 3.5 Oman 6,898.90 0.8 1.0 3.8 19.8 45.90 23,859.5 11.4 1.7 4.0 Bahrain 1,202.68 0.1 0.1 0.7 12.9 0.89 21,979.1 8.4 0.9 4.0 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 9,850 9,900 9,950 10,000 10,050 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 5 Qatar Market Commentary  The QE index rose 1.3% to close at 10,038.4. 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 General Ins. & Rein. Co. and Medicare Group were the top gainers, rising 5.3% and 3.2% respectively. Among the top losers, Qatar Cinema & Film Dist. Co. fell 3.8%, while Zad Holding Co. declined 1.5%.  Volume of shares traded on Monday rose by 104.0% to 11.8mn from 5.8mn on Sunday. Further, as compared to the 30-day moving average of 5.6mn, volume for the day was 109.3% higher. Qatar Gas Transport Co. and Mazaya Qatar Real Estate Dev. were the most active stocks, contributing 25.0% and 14.0% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Ratings, Earnings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Saudi Reinsurance Co. (Saudi Re) S&P Saudi Arabia GCC regional scale rating – gcAA – Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC – Local Currency) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/19 UK Rightmove Rightmove House Prices MoM August -1.80% – 0.30% 08/19 UK Rightmove Rightmove House Prices YoY August 5.50% – 4.80% 08/19 Japan Ministry of Finance Exports YoY July 12.2% 12.8% 7.4% 08/19 Japan Ministry of Finance Imports YoY July 19.6% 16% 11.8% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  Qatari government spending slows sharply in 2012-13 – According to the data released by Qatar Central Bank, the Qatar government’s spending rose 2.2% to a record high of QR178.2bn in its last fiscal year, though slowing sharply from the double-digit increases seen in the previous decade. It was the first time that the government's annual spending undershot its budget plan since 1990. Total spending came in slightly below the initial plan of QR178.6bn for the fiscal year that ended in March 2013. Development expenditure stood at QR49.3bn, well below the QR62.1bn that the government had originally earmarked for the year. Qatar spent a record QR34.1bn on public sector wages in FY2013, nearly 15% more than in the previous year. (Reuters)  Qatar monthly banking update for July 2013 – Deposits decreased by 4.8% MoM (+11.1% YTD), while loans increased by 2.3% MoM (+9.1% YTD) in July 2013. However, the banking sector’s loan-to-deposit ratio (LDR) rose to 109% in July 2013 versus 102% at the end of June 2013. (QCB)  RasGas completes offshore drilling in Barzan Gas project – RasGas Company Limited has successfully completed offshore drilling for 30 development wells worth $10.3bn in Barzan Gas Project. This paves the way for subsequent phases of the project to proceed for connecting the wells to subsea pipelines that will bring the gas to shore. The 30 development wells have a total length of approximately 138 kilometers and reach more than 3,000 meters below the sea's surface. (AME Info)  Qatar real estate transactions double in July – According to a report by Ezdan Holding, real estate transactions in Qatar grew by 103% YoY in July to reach QR5.5bn despite the onset of the summer season and Ramadan holidays. The report said that Qatar's real estate sector has benefited from the boom in projects related to Qatar's National Vision 2030 strategy and also due to the commencement of mega projects for the 2022 FIFA World Cup. Further, the award of tenders for Doha Metro by Qatar Rail has created a positive impact, stimulating the real estate sector. The report referred to the sales growth in The Pearl Qatar during 2Q2013, which continues to attract investors interested in the luxury residential sector. (Peninsula Qatar)  Es'hailSat, ARABSAT sign strategic partnership agreement – Es'hailSat Qatar Satellite Company and Arab Satellite Communications Organization (ARABSAT) have signed a strategic partnership agreement to promote cooperation and strengthen the reach of TV broadcasting in Qatar. Under this agreement, Es'hailSat will acquire the rights to 500MHz of premium Ku-band bandwidth at the 26 degrees East TV broadcasting hot-spot. Es'hailSat's second satellite, Es'hail 2, will use these frequencies and will be designed to provide DTH and other telecommunications services from this hot spot. This will significantly increase Es'hailSat's capacity, and will strengthen Es'hailSat's in-orbit back-up capability when both Es'hail 1 and Es'hail 2 are operational. (AME Info)  QA to extend its network to Delhi and Bangalore – Qatar Airways (QA) is planning to extend its Boeing 787 Dreamliner network to the Indian cities of Delhi and Bangalore starting from September 1, 2013. (AME Info) Overall Activity Buy %* Sell %* Net (QR) Qatari 63.59% 64.82% (4,959,290.47) Non-Qatari 36.41% 35.17% 4,959,290.47
  3. 3. Page 3 of 5 International  Bundesbank sees German growth steadying after strong second-quarter – The Bundesbank said German economic growth should become steady after a strong second quarter, adding that the European Central Bank's forward guidance on low interest rates is not an unconditional commitment. In its monthly report for August 2013, the Bundesbank said the second quarter expansion is likely to have returned the economy to a normal level of capacity utilization. Meanwhile, the Bundesbank said the key ECB interest rates will continue to depend on the medium-term outlook for inflation, which is based on expectations on future developments in the real economy as well as credit and monetary aggregates. (Reuters)  China central bank chief sees no big changes to policy – China's Central Bank Governor Zhou Xiaochuan said the country would fine-tune its prudent monetary policy stance for the rest of the year if needed, but does not expect any big adjustments to be made. Zhou Xiaochuan said the government is making plans to relax controls on deposit rates. Zhou also said China hopes the yuan will rise or fall within a range to reflect market trends in currency trading. (Reuters)  Moody's reiterates stable outlook on India – Moody's has reiterated its Stable outlook on India's Baa3 sovereign rating. India's rating is supported by low levels of overseas government debt and adequate reserves for balance of payments needs over the near term. (Reuters) Regional  FDI in GCC region reaches $26.4bn in 2012 – According to UNCTAD’s annual World Investment Report 2013, foreign direct investment (FDI) in the GCC region has increased slightly to $26.4bn in 2012. This has brought an end to the steady decline of the region’s FDI inflows over three consecutive years, since the peak of $61.7bn reached before the financial crisis in 2008. FDI inflows in the UAE and Kuwait increased to $9.6bn and $1.9bn respectively. The report said that FDI in Saudi Arabia declined by 25% to $12.2bn. Meanwhile, the FDI outflows from the GCC region to other countries declined 17.7% to $18.6bn in 2012. Kuwait was the largest investor overseas, accounting for 41% of the outflows with $7.6bn, followed by Saudi Arabia with $4.4bn and the UAE with $2.5bn. (Bloomberg)  Al-Khodari Sons bags SR125.5mn water drainage contract – Abdullah Abdul Mohsin Al-Khodari Sons Company has signed a contract worth SR125.5mn with the Ministry of Municipal & Rural Affairs (Riyadh Municipality) for the construction of storm water drainage network in Murooj, Massif and Nakhil Districts in Riyadh. The duration of the work will be 30 months. (GulfBase.com)  Al Hail acquires majority stake in MAF Orix Finance – Al Hail Holding has acquired a majority stake in MAF Orix Finance, a JV between Majid Al Futtaim Ventures and ORIX Corporation of Japan. With this acquisition, Al Hail and ORIX Corporation have entered into a long-term alliance for cooperation in leasing and other financial services in the UAE. (AME Info)  Dubai DED sets up external relations section to reach potential investors – The Department of Economic Development (DED), Dubai has set up its External Relations section to reach out to potential investors and enable them to set up their businesses in Dubai. Teams in this new section will focus on attending local and international exhibitions to meet investors and providing information regarding business registration and licensing options in Dubai. (GulfBase.com)  DEWA retains leading position in energy saving measures – The Dubai Electricity & Water Authority (DEWA) has retained a leading position in energy efficiency through the implementation of a series of energy and water saving measures. DEWA has been able to reduce electrical line losses from 7% in 1998 to 3.5% in 2012, achieving AED2.223bn worth of savings between 2001 and 2012. DEWA has also been able to reduce water losses in its network from 42% in 1988 to 10.88% in 2012, saving AED5.6bn in total costs between 1990 and 2012, making both reductions among the highest in the world. (GulfBase.com)  Deyaar to hand over The Burlington commercial tower in September 2013 – Deyaar Development will hand over “The Burlington”, a commercial tower with 1,365,305mn square feet space in September 2013. (DFM)  CBRE: Abu Dhabi residential rents continue to slide – According to the C B Richard Ellis South Asia Pvt. Ltd. (CBRE), the Abu Dhabi residential market is witnessing increased tenant activity due to the government’s decision to force its employees to reside in Abu Dhabi for receiving their housing contribution. Despite this measure, CBRE said that rental rates in 2Q2013 have dropped 4% QoQ. The highest demand is for 2 bedroom units, with rentals for upper middle and high-end accommodation ranging AED90,000-145,000 per unit per annum. (AME Info)  IPIC’s OMV acquires stakes in North Sea oilfields for $2.65bn – Austria-based OMV – partly owned by Abu Dhabi's International Petroleum Investment Company (IPIC) – has acquired stakes in North Sea oilfields from Norway's Statoil for $2.65bn as it expands its production capacity at the expense of its downstream portfolio. Under the deal, the company will receive stakes in two fields in Norwegian waters: the Gullfaks and the Gudrun. It will also increase its ownership in the Rosebank and Schiehallion fields near the UK’s Shetland Islands. (Bloomberg)  Mubadala Petroleum, Kris Energy to develop oil field in Thailand – A subsidiary of Abu Dhabi state investment fund, Mubadala Petroleum and Singapore-listed Kris Energy are planning to develop an oil field in the Gulf of Thailand. Mubadala Petroleum and Kris Energy will develop the Nong Yao field in Thailand with a production capacity of up to 15,000 barrels of oil per day and 30,000 barrels of oil fluids per day. Production is expected to start by 1H2015. (Reuters)  Allen & Overy advises on Abu Dhabi’s first financial free zone – Allen & Overy has advised on the creation of Abu Dhabi’s first financial free zone, the Abu Dhabi Global Market, which aims to be leading a global financial market and a major regional financial center. Allen & Overy acted as the sole legal counsel on the project and advised on all legal aspects of the establishment of the Global Market. (GulfBase.com)  Moody’s: Oman’s growth outlook vulnerable to downturn in oil prices – According to Moody's Investors Service report, Oman's A1 rating with Stable outlook is based on the economy's robust growth outlook and the government's sound fiscal metrics, but both are vulnerable to a downturn in global oil prices. Moody’s expects a GDP growth of 4.6% in 2013 and 4.1% in 2014, supported by the government's efforts to diversify the economy away from the hydrocarbon sector. Moody's also notes that the A1 rating is supported by the government's steady budget surpluses, very low levels of debt (5.2% of GDP in 2012), and its strong net financial asset position. Oman's major credit challenges stem from its economic and fiscal vulnerabilities arising from the oil & gas sector, which continues to contribute a significant share to its GDP (45% of GDP on average between 2000 and 2011). Moreover, Oman's fiscal
  4. 4. Page 4 of 5 breakeven oil price is among the highest in the GCC region ($80) and showed a drastic increase between 2003 and 2012. (Bloomberg)  CBB’s weekly T-bills oversubscribed by 290% – The Central Bank of Bahrain’s (CBB) this week’s issue of BHD35mn treasury bills has been oversubscribed by 290%. These bills carry a maturity of 91 days and will mature on November 20, 2013. The weighted average rate of interest is 0.70%, similar to the previous issue on August 14, 2013. (GulfBase.com)  Investcorp to sell Skrill Group for €600mn – Investcorp Bank has agreed for the sale of London-based Skrill Group to funds advised by CVC Capital Partners for a total enterprise value of €600mn. Investcorp will retain a substantial minority position in the company and will continue to be on Skrill’s board. (GulfBase.com)  Arcapita Bank sells 3PD Holding for $365mn – Bahrain- based Arcapita Bank has sold Georgia-based logistics company 3PD Holding to XPO Logistics for $365mn. (GulfBase.com)
  5. 5. 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 5 of 5 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg (*July 09, 2013) Source: Bloomberg 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 Jan-10 Aug-10 Mar-11 Oct-11 May-12 Dec-12 Jul-13 QE Index S&PPan Arab S&P GCC 0.6% 1.3% (0.0%) 0.1% 0.8% 0.6% 1.5% (0.5%) 0.0% 0.5% 1.0% 1.5% 2.0% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,365.98 (0.8) (0.8) (18.5) DJ Industrial 15,010.74 (0.5) (0.5) 14.5 Silver/Ounce 23.17 (0.4) (0.4) (23.6) S&P 500 1,646.06 (0.6) (0.6) 15.4 Crude Oil (Brent)/Barrel (FM Future) 109.90 (0.5) (0.5) (1.1) NASDAQ 100 3,589.09 (0.4) (0.4) 18.9 Natural Gas (Henry Hub)/MMBtu 3.46 3.3 3.3 1.0 STOXX 600 304.77 (0.5) (0.5) 9.0 LPG Propane (Arab Gulf)/Ton* 810.00 0.0 0.0 (16.4) DAX 8,366.29 (0.3) (0.3) 9.9 LPG Butane (Arab Gulf)/Ton* 807.00 0.0 0.0 (16.7) FTSE 100 6,465.73 (0.5) (0.5) 9.6 Euro 1.33 0.0 0.0 1.1 CAC 40 4,083.98 (1.0) (1.0) 12.2 Yen 97.55 0.0 0.0 12.4 Nikkei 13,758.13 0.8 0.8 32.4 GBP 1.56 0.1 0.1 (3.7) MSCI EM 944.88 (1.4) (1.4) (10.5) CHF 1.08 0.3 0.3 (0.9) SHANGHAI SE Composite 2,085.60 0.8 0.8 (8.1) AUD 0.91 (0.8) (0.8) (12.4) HANG SENG 22,463.70 (0.2) (0.2) (0.9) USD Index 81.23 (0.0) (0.0) 1.8 BSE SENSEX 18,307.52 (1.6) (1.6) (5.8) RUB 32.95 0.1 0.1 7.9 Bovespa 51,574.09 0.1 0.1 (15.4) BRL 0.41 (1.2) (1.2) (15.2) RTS 1,322.25 (0.1) (0.1) (13.4) 144.2 128.3 115.8