19 January Daily market report

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19 January Daily market report

  1. 1. QE Intra-Day Movement Market Indicators 11,180 11,160 11,140 11,120 Market Indices 11,100 11,080 9:30 19 Jan 14 478.4 584,973.5 12.9 5,692 40 24:15 Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QE index declined 0.1% to close at 11,093.0. Losses were led by the Industrials and Consumer Goods & Services indices, declining 0.7% and 0.6% respectively. Top losers were Qatar International Islamic Bank and Gulf International Services, falling 2.5% and 1.8% respectively. Among the top gainers, Qatar Insurance Co. rose 4.7%, while Al Ahli Bank gained 3.6%. 16 Jan 14 774.3 586,346.0 16.8 6,688 42 24:17 %Chg. (38.2) (0.2) (23.1) (14.9) (4.8) – Close Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index 1D% WTD% YTD% TTM P/E 15,849.37 2,744.58 2,617.74 3,676.24 1,969.30 2,077.46 2,566.10 1,532.69 6,049.89 3,228.86 (0.1) (0.1) (0.4) (0.7) 0.4 1.4 3.0 0.3 (0.6) 0.1 (0.1) (0.1) (0.4) (0.7) 0.4 1.4 3.0 0.3 (0.6) 0.1 6.9 6.1 7.1 5.0 6.0 6.4 9.8 5.4 1.7 6.3 N/A 13.7 13.3 13.3 13.3 14.2 10.3 20.8 22.9 16.7 GCC Commentary GCC Top Gainers## Exchange Close# 1D% Saudi Arabia: The TASI index fell 0.2% to close at 8,739.7. Losses were led by the Ins. and Petrochem. Ind. indices, declining 1.6% and 1.2% respectively. The Co. for Coop. Insurance fell 8.4%, while Petro Rabigh was down 5.9%. United Arab Bank Abu Dhabi 7.00 8.5 19.2 8.5 IFA Hotels & Resorts Kuwait 0.28 7.7 1,888.9 (1.8) Dubai: The DFM index gained 0.2% to close at 3,617.5. The Services index rose 1.2%, while the Real Estate & Construction index was up 0.6%. Al Madina gained 12.3%, while Union Properties was up 9.4%. United Real Estate Co. Kuwait 0.12 5.3 379.8 1.7 Sahara Petrochemical Saudi Arabia 21.95 5.0 15,279.3 10.9 Abu Dhabi: The ADX benchmark index rose 0.9% to close at 4,562.0. The Investment & Financial Ser. index surged 14.9%, while the Energy index was up 1.9%. Waha Capital surged 14.9%, while United Arab Bank gained 8.5%. Saudi Airlines Catering Saudi Arabia 159.50 4.9 162.6 12.7 GCC Top Losers Exchange 1D% Vol. ‘000 YTD% Kuwait: The KSE index gained 0.4% to close at 7,699.1. The Industrial and Health Care indices rose 1.2% each. Zima Holding Co. gained 7.9%, while First Takaful Insurance Co. was up 7.8%. Co. for Coop. Ins. Saudi Arabia 29.60 (8.4) 2,911.5 (15.9) Petro Rabigh Saudi Arabia 28.80 (5.9) 4,570.7 18.8 Oman: The MSM index declined marginally to close at 7,139.1. The Services index declined 0.1% while all other sub indices ended in green. National Detergent fell 9.9%, while Oman Packaging was down 4.2%. Saudi Kayan Saudi Arabia 14.40 (5.0) 24,011.7 (8.3) Saudi Chemical Co. Saudi Arabia 54.00 (3.6) 361.9 (1.8) Atheeb Telecom Saudi Arabia 14.85 (3.3) 10,875.8 3.1 Bahrain: The BHB index gained marginally to close at 1,268.8. The Services index rose 0.5%, while the Investment index was up 0.4%. Nass Corporation gained 4.7%, while Gulf Finance House was up 2.5%. ## # Close Vol. ‘000 YTD% 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 Insurance Co. Close* 1D% Vol. ‘000 YTD% Close* 1D% Vol. ‘000 YTD% 76.20 Qatar Exchange Top Gainers 4.7 446.3 14.6 Qatar International Islamic Bank 69.00 (2.5) 165.3 11.8 362.2 19.5 Gulf International Services 70.10 (1.8) 83.2 14.9 Qatar Exchange Top Losers Al Ahli Bank 65.70 3.6 Zad Holding Co. 71.50 2.6 0.7 2.9 Qatar Islamic Insurance 63.40 (1.7) 53.5 9.5 Qatar Industrial Manufacturing Co. 53.90 2.1 145.2 6.5 National Leasing 30.00 (1.6) 881.5 (0.5) Gulf Warehousing Co. 42.30 1.8 97.9 1.9 Qatar Electricity & Water Co. 180.60 (1.3) 16.9 (0.7) Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% 31.95 1.4 41,682.0 7.2 178.10 (1.1) 38,403.6 3.5 23.57 1.5 36,946.5 4.2 178.80 (0.6) 36,203.2 5.9 76.20 4.7 34,290.0 14.6 Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 12.53 0.4 2,289.6 12.1 Vodafone Qatar 11.45 0.9 1,655.7 6.9 QNB Group United Development Co. 23.57 1.5 1,571.7 4.2 United Development Co. Barwa Real Estate Co. 31.95 1.4 1,309.8 7.2 Industries Qatar National Leasing 30.00 (1.6) 881.5 (0.5) Qatar Exchange Top Vol. Trades Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain Qatar Insurance Co. Source: Bloomberg (* in QR) Source: Bloomberg (* in QR) Regional Indices Barwa Real Estate Co. Close 1D% WTD% MTD% YTD% 11,093.01 3,617.53 4,561.96 8,739.73 7,699.06 7,139.12 1,268.77 (0.1) 0.2 0.9 (0.2) 0.4 (0.0) 0.0 (0.1) 0.2 0.9 (0.2) 0.4 (0.0) 0.0 6.9 7.4 6.3 2.4 2.0 4.5 1.6 6.9 7.4 6.3 2.4 2.0 4.5 1.6 Exch. Val. Traded ($ mn) 131.37 467.98 431.32 1,663.77 136.99 24.26 1.62 Exchange Mkt. Cap. ($ mn) 160,633.7 73,999.9 129,306.4 480,070.9 109,513.8 25,456.5 50,579.3 P/E** P/B** 14.1 21.3 12.7 17.8 17.1 11.2 8.3 1.9 1.4 1.6 2.2 1.2 1.7 0.9 Dividend Yield 4.1 2.5 4.0 3.4 3.7 3.6 3.8 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 6
  2. 2. Qatar Market Commentary  The QE index declined 0.1% to close at 11,093.0. The Industrials and Consumer Goods & Services indices led the losses. The index declined on the back of selling pressure from Qatari shareholders despite buying support from non-Qatari shareholders.  Qatar International Islamic Bank and Gulf International Services were the top losers, falling 2.5% and 1.8% respectively. Among the top gainers, Qatar Insurance Co. rose 4.7%, while Al Ahli Bank gained 3.6%. Overall Activity Buy %* Sell %* Net (QR) Qatari 64.61% 67.95% (16,035,929.30) Non-Qatari 35.40% 32.04% 16,035,929.30 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Sunday fell by 23.1% to 12.9mn from 16.8mn on Thursday. However, as compared to the 30-day moving average of 11.3mn, volume for the day was 14.1% higher. Mazaya Qatar Real Estate Dev. and Vodafone Qatar were the most active stocks, contributing 17.7% and 12.8% to the total volume respectively. Earnings Earnings Releases Company Revenue (mn) 4Q2013 % Change YoY Operating Profit (mn) 4Q2013 % Change YoY Net Profit (mn) 4Q2013 % Change YoY SR – – 52.8 10.1% 48.3 11.0% Saudi Arabia SR – – 360.7 38.0% 196.8 24.8% Saudi Arabia SR – – 122.9 -3.1% 127.2 22.5% Saudi Arabia SR – – 55.2 26.3% 50.4 18.3% Saudi Arabia SR – – 51.6 -27.1% 62.7 -7.1% Saudi Arabia SR – – 1.9 9.8% -0.2 -66.7% Saudi Arabia SR – – 21.4 -7.8% 20.4 -18.4% Saudi Arabia SR – – 10,300.0 0.5% 6,160.0 5.7% Saudi Arabia SR – – 154.6 NA 3.4 NA Saudi Arabia SR – – 458.2 4.8% 373.3 1.2% Saudi Arabia SR – – 0.0 22.9% 0.0 3.5% Saudi Arabia SR – – 30.0 1.2% 34.4 4.2% Saudi Arabia SR 42.9 108.6% – – 17.5 64.1% Saudi Arabia SR – – 29.0 -51.8% 20.4 -65.4% Saudi Arabia SR – – -0.6 NA -0.8 NA Saudi Arabia SR 53.8 99.1% – – 13.2 320.8% Saudi Arabia SR 50.7 45.3% – – 0.5 -0.6% Saudi Arabia SR 6.3 NA – – 0.4 NA Saudi Arabia SR – – 260.1 NA 219.9 5014.0% Saudi Arabia SR – – -5.7 -46.7% 37.9 NA Saudi Arabia SR – – 39.4 -24.2% 38.1 -16.3% Saudi Arabia SR 255.3 180.8% – – 4.4 164.6% Saudi Arabia SR – – 26.2 147.2% 19.8 52.3% Saudi Arabia SR 16.4 1.2% – – 0.5 25.0% Saudi Arabia SR 5.5 NA – – 0.8 NA Saudi Arabia SR 50.8 97.1% – – 0.7 -9.6% Saudi Arabia SR – – 4.8 NA 4.6 Market Currency City Cement Co. (CCC) Saudi International Petrochemical Co. (Sipchem) Saudi Airlines Catering Co. Mouwasat Medical Services Company (Mouasat) Alabdullatif Industrial Investment co. (Al Abdullatif) National Gypsum Company (National Gypsum) National Medical Care Company (Care) Saudi Basic Industries Corp (SABIC) Saudi Kayan Petrochemical Company (Saudi Kayan) Almarai Company National Agriculture Development Co. (Nadec) Saudi Public Transport Co. (SAPTCO) Saudi Re for Cooperative Reinsurance Company (Saudi-Re) Najran Cement Co. Saudi Arabia Refineries Co. (SARCO) Saudi United Cooperative Insurance Co. (Walaa) Arabian Shield Cooperative Insurance Co. (Arabian Shield) Alinma Tokio Marine Co. (Alinma Tokio M) Emaar The Economic City (Emaar) Arabian Pipes Co. (Anabeeb) Tabuk Cement Co. Trade Union Cooperative Insurance Co. (Trade Union) Al-Babtain Power & Telecommunication Co. (AlBabtain) Ace Arabia Cooperative Insurance Co. (ACE) Saudi Enaya Cooperative Insurance Co. Buruj Cooperative Insurance Saudi Arabia Saudi Advanced Industries NA Page 2 of 6
  3. 3. Al Alamiya for Cooperative Insurance Co. United Int. Transportation Co. (Budget-Saudi) Taiba Holding Co. (Taiba) Ash-Sharqiyah Development Co. (Sharqiya Dev Co) Northern Region Cement Co. (Northern Cement) Herfy Food Services Co. Saudi Re for Cooperative Reinsurance Co. (Saudi-Re) Gulf Int. Chemicals* Saudi Arabia SR 38.5 -4.5% – – 0.4 Saudi Arabia SR – – 18.4 864.4% 37.5 5.3% Saudi Arabia SR – – 55.7 15.3% 64.5 52.1% Saudi Arabia SR – – -2.2 16.9% -0.9 -45.0% Saudi Arabia SR – – 59.6 187.6% 51.6 187.5% Saudi Arabia SR – – 50.8 2.6% 51.3 5.1% Saudi Arabia SR 42.9 108.6% – – 17.5 64.1% -2.5% Oman OMR 3.6 9.7% – – 0.3 18.9% National Finance* Oman OMR – – 10.6 14.0% 4.8 16.5% The Financial Corporation# Oman OMR – – 1.0 3979.7% 1.2 NA Source: Company data, DFM, ADX, MSM (*FY2013 results) (#9M2013 results) News Qatar  QIBK 4Q2013 net profit broadly in line with our expectations – QIBK posted a net profit (to equity) of QR360.3mn in 4Q2013 vs. our estimate of QR365.3mn (BBG consensus, ex-QNBFS: QR340mn). Net income increased by 4.4% QoQ. Profitability was driven by net financing income (+6.4% QoQ). However, income from investing activities (QR180.6mn) declined by 20.3% QoQ. Cash dividend increased to QR4/share. QIBK upped its DPS to QR4.00 from QR3.75 in 2012. This translates into a yield of 5.4%. For 2014, we expect a DPS of QR4.25. 2013 analysis: QIBK’s loan book expanded by 9.3% YoY to QR47.1bn in 2013. Equity of unrestricted investment account holders (URIA) also increased by 11.2% YoY to QR37.9bn. Furthermore, customers deposits in current accounts increased by 37.3% YoY to QR12.5bn. Hence, the loan-to-deposit ratio declined to 93.6% vs. 100.0% at the end of 2012. In terms of the investment book, total investments increased by 11.2% YoY. Growth was driven by fixed income securities while equity investments declined YoY. We maintain our estimates for 2014; retain our Market Perform rating and target price of QR73.27. We expect QIBK to post EPS of QR5.91 and QR6.24 for 2014 and 2015, respectively. Furthermore, we maintain QIBK’s target price at QR73.27 and Market Perform rating. Valuation appears fair. QIBK is trading at a P/E and a P/B of 12.3x and 1.4x on our 2014 estimates, respectively. QIBK has underperformed the sector index. In 2013, the stock was down 3.22% (total return) vs. the QE All Share Banks & Financial Services Index, which was up 25.36%. (QNBFS Research, QE)  GWCS’ 4Q2013 bottom-line up by 18.2% QoQ – Gulf Warehousing reported a net profit of QR26.83mn vs. QR22.71mn in 3Q2013. The firm booked other income of QR1mn in 4Q2013 vs. QR0.08mn in 2012, which was the primary difference vs. our bottom-line estimate of QR25.3mn. For the full year (2013), profit to equity holders stood at QR101.6mn vs. QR84.9mn in 2012, up 19.7% YoY. The company announced a cash DPS of QR1.50 vs. a 20% stock dividend in 2012. For FY2013, overall revenue increased to QR527.3mn in 2013 vs. QR479.7mn in 2012, a growth of 9.9% YoY. In our view, the growth primarily came from LVQ Phase 3 coming online in 2013. Direct costs increased 4.0% YoY. Furthermore, G&A expenses increased by 3.7% YoY. On the Imdad front, GWCS booked a provision of QR6.3mn (51% share leads to a hit of QR3.2mn). We maintain our estimates with a price target of QR45.75; however, given the stock’s appreciation, we change our rating to Market Perform. We expect better operating performance in 2014 & 2015 on the back of LVQ Phase 3 & 4. Our overall thesis on the company remains unchanged; GWCS is the market leader and the only recognized player in the Qatari logistics market. The company benefits from the Qatar growth story and has embarked on aggressive debtfinanced expansions that will almost double its bottom-line and ROE over the next four years. GWCS trades at a premium to its regional and global peers. In 2013, the stock was up 23.88% (total return) vs. the QE All Share Transportation Index, which was also up 38.65%. (QNBFS Research, QE)  IQCD announces shutdown schedule of its production facilities in 1Q2014 – Industries Qatar (IQCD) has confirmed its planned shutdown timetable for 1Q2014 for all its Qatar-based production facilities. The planned shutdown schedule, with prior year comparatives, is as follows: Ethylene: 35 days (1Q2013: 0 days); LDPE: 34 days (1Q2013: 11 days); LLDPE: 11days (1Q2013: 0 days); Methanol: 10 days (1Q2013: 0 days); MTBE: 8 days (1Q2013: 0 days); Ammonia: 40 days (1Q2013: 1 day); Urea: 40 days (1Q2013: 7 days); and Steel ( DR, EF/CC & RM): 22 days (1Q2013: 40 days). This shut-down schedule is indicative of current plans only, and actual down-time may vary from the latest plan. The announced shutdowns are somewhat different from previously detailed maintenance-related shutdowns stated in IQCD’s 5-year business plan. We do not expect material changes to our estimates as a result of these announced shutdowns. (QNBFS Research, QE)  E&Y: Qatar hospitality market posts dip in room yield – According to a report by E&Y, the hospitality market in Qatar saw a 4% YoY decrease in room yield during JanuaryNovember 2013, while it maintained a 65% occupancy rate for the first 11 months of 2013 and 2012. The decline in revenue per available room (RevPAR) is largely due to a 3.4% dip in the average room rate from QR951 during January-November 2012 to QR919 for January-November 2013. The report for November said the hospitality market in Doha saw a dip of 3% YoY in its occupancy rates. However, the sector saw a 16.1% decrease in RevPAR to QR916 in November 2013, falling from QR1,052 in November 2012. (Peninsula Qatar)  Commercial Bank opens two branches – The Commercial Bank of Qatar has opened two new branches at the St Regis Hotel and the Al Gassar Resort in Doha. With these two, the bank has a network of 30 branches and is supported by 151 ATMs, in addition to internet banking and mobile banking services. (Gulf-Times.com)  Kahramaa to launch new water plants – Qatar General Electricity & Water Corporation (Kahramaa) is to launch new water plants in Duhail, Umm Qarn, Mesaimeer, south Doha and Muathier, as part of a major project aimed at raising its strategic reserves. The Duhail plant will be the largest in Qatar with a total capacity of 142mn gallons, holding one-third of water reserves in Qatar. This plant will serve areas including Lusail, Al Kheesa and Rowdath Al Hammam. The Umm Qarn plant costing Page 3 of 6
  4. 4. QR973mn has five reservoirs with a capacity of 71mn gallons and will serve Umm Qarn, Semaisma and surrounding areas. Meanwhile, Kahramaa is preparing to launch another large water reservoir project to support the newly developed areas in the country. (Peninsula Qatar)  MMUP to allot 7,782 plots to eligible citizens – The Ministry of Municipality & Urban Planning (MMUP) has announced that it will allot 7,782 plots of land all over the country to eligible citizens this year. Currently, the titles of the plots are being changed so they could be allotted. Areas where these plots are located are being provided with basic services, including roads. The ministry also has plans to allot 1,800 more plots for residential purposes in the near future. (Peninsula Qatar)  QATI’s AGM, EGM to be held on February 16 – Qatar Insurance Company (QATI) has announced that its AGM and EGM will be held on February 16, 2014. The agenda of the AGM covers the board’s proposal for distribution of profits such as cash dividends of 25% from the par value of the share, i.e. QR2.5 for each share, and a bonus share issued 25% of the capital, i.e. one share for each four shares. The EGM’s agenda includes approving the increase in the company's capital from QR1,284,323,040 to QR1,605,403,800 by distributing bonus shares. (QE)  Total looks to expand activities in Qatar – French oil company Total’s President Yves-Louis Darricarrère said the company is committed to further developing its activities in Qatar over the long-term. He added that the company’s oil & gas production in Qatar averaged at 140,000 barrels of oil equivalent per day in 2013. (Gulf-Times.com)  QISI’s AGM scheduled on March 12 – Qatar Islamic Insurance Company (QISI) has announced that its AGM will be held on March 12, 2014 or on March 17, 2014 in case the desired quorum for the meeting is not achieved. (QE)  QEWS’ BoD to meet on February 5 – Qatar Electricity & Water Company’s (QEWS) board of directors will meet on February 5, 2014 to discuss the company’s financial results ending on December 31, 2013. (QE)  AKHI’s BoD to meet on February 19; AGM on March 23 – Al Khaleej Takaful Group’s (AKHI) board will meet on February 19, 2014 to discuss the company’s financial results ending on December 31, 2013 as well as to discuss the proposal of profit distribution for FY2013. Further, the AGM will be held on March 23, 2014 and an alternate meeting will be on March 26, 2014. (QE)  IATA-accredited agencies grow to 143 in Qatar – According to the data by the International Air Transport Association (IATA), the total number of IATA-accredited travel agencies in the country jumped to 143 in 2013, from merely 17 in 2007. The figures show that the number of IATA-accredited travel agencies in Qatar has witnessed a consistent double-digit growth over the last six years, with 126 companies being accredited by IATA between 2008 and 2013. This growth is powered by Qatar’s emergence as a new aviation hub in the region backed by a booming tourism industry. (Peninsula Qatar) International  Weidmann: No reason for irrational inflationary fears – Germany's Bundesbank President Jens Weidmann said there was no reason for "irrational inflationary fears" and dismissed suggestions of a danger of the Eurozone falling into deflation, echoing the European Central Bank's outlook. Jens Weidmann also urged France to live up to its function as a role model and show its peers how to restore economic competitiveness, saying it was decisive for the recovery of the whole the Eurozone. (Reuters)  China's economic growth eases to 7.7% in 4Q2013 – China's annual growth eased to 7.7% in 4Q2013 as investment and demand flagged late in the year. That leaves growth in the Chinese economy at 7.7% for all of 2013, unchanged from revised levels in 2012. The fourth-quarter growth rate compared with 7.6% forecast by analysts in a Reuters poll but eased from 7.8% in the previous three months. On a quarterly basis, GDP rose 1.8% from July-September, slower than expectations for 2.0% and a reading of 2.2% in April-June. (Reuters)  China’s 2013 new home sales to exceed $1tn – China’s new home sales last year likely exceeded $1tn for the first time as property prices in cities the government considers first tier surged in the absence of more nationwide property curbs. China Real Estate Information Corp. (CRIC) has forecasted that National Bureau of Statistics numbers to be released will show 2013 sales topped $1tn. The value was $975bn in the first 11 months. Earlier, the Bureau said new-home prices in December climbed 20% in Guangzhou and Shenzhen from a year earlier, and jumped 18% in Shanghai and 16% in Beijing. (Bloomberg) Regional  Thomson Reuters: Mideast M&A activities reach $43.4bn in 2013 – According to the Thomson Reuters’ investment banking analysis for 2013, investment banking fees in the Middle East reached $722.2mn during 2013. The value of announced M&A transactions involving any Middle Eastern company reached $43.4bn during 2013, 7% higher than the $40.7bn witnessed during 2012, and marking the best full year’s total since 2010. (Peninsula Qatar)  al Naimi: US shale helps keep oil markets stable – Saudi Oil Minister Ali al Naimi said the Kingdom welcomes the surge in US shale oil production for its stabilizing effect on crude prices. (Qatar Tribune)  Al Rajhi declares SR1,500mn dividends for 2H2013; to raise its capital by bonus shares – Al Rajhi Bank’s board of directors has recommended the distribution of dividends worth SR1,500mn (SR1 per share) for 2H2013, representing 10% of the face value. Those shareholders who are registered in the Securities Depository Center on the day of the AGM will be eligible for these dividends. Meanwhile, Al Rajhi’s board has also recommended for an increase in the bank’s capital through bonus shares. The bank’s capital is to be raised by 8% from SR15,000mn to SR16,250mn. With this, the number of shares would go up from 1,500mn to 1,625mn shares. The increase will be done through capitalization of SR1,250mn from account. (Tadawul)  Budget Saudi to increase its capital through bonus shares – The United International Transportation Company’s (Budget Saudi) board has recommended for an increase in company’s capital through bonus shares issued to its shareholders. The company’s capital is to be raised by 33.3% from SR305mn to SR406.7mn. With this, the number of shares would go up from 30.5mn to 40.7mn shares. The increase will be done through capitalization of SR101.7mn from retained earnings account. (Tadawul)  ACE gets SAMA’s temporary approval for its insurance products – Ace Arabia Cooperative Insurance Company (ACE) has obtained the Saudi Arabian Monetary Agency’s (SAMA) temporary approval to use its insurance products for six months. (Tadawul) Page 4 of 6
  5. 5.  Nakheel's profit up 27.2% in 2013 – Dubai-based Nakheel has reported a rise of 27.2% in its net profit to AED2.57bn in 2013. Revenues grew 20.5% to AED9.4bn in 2013. Meanwhile, Nakheel’s Chairman Ali Rashid Lootah said the company plans to launch new projects worth between AED6bn and AED8bn in 2014. Lootah said Nakheel would consider an IPO of shares after the company settled its debts. (Qatar Tribune)  DLD expects major property growth in Dubai in 2014 – Property buying activity in Dubai is expected to witness significant growth in 2014 after registering around 50% jump in the number of transactions and values in 2013. According to the data released by the Dubai Land Department (DLD), Dubai’s ideal environment and safe haven status attracted a large number of property investors in 2013 as transactions rose by more than 52% to 63,652 in contrast to 41,767 transactions in 2012. The transaction value also surged by 53% to AED236bn last year, compared with AED154bn in 2012. Values of property transactions increased to AED128bn in 2H2013, as against AED108bn recorded in 1H2013. (GulfBase.com)  Nakheel to build 9 hotels by 2016; plans giant mall off Deira coast – Nakheel has nine hotel projects under development by 2016 to benefit from the country’s growth as a regional tourist destination. Nakheel’s Chairman Ali Rashed Lootah said that the company may unveil plans to build four new hotels on Deira Island along with its existing one, adding to four other developments across the rest of Dubai. He said that these hotels will be part of new projects that Nakheel will unveil in 2014 with a sales value of AED6-8bn, which include homes, retail and leisure destinations. In addition, Nakheel plans to take on mega projects, including a 1.5 to 2mn square foot shopping mall off the Deira coastline and close to the earlier announced night market. The mall’s dimensions place it among the top three malls in terms of gross leasable area, just behind the Dubai Mall and the Mall of the Emirates. (Bloomberg)  DEWA makes progress on AED360mn water pipeline projects – The Dubai Electricity & Water Authority (DEWA) is moving forward with its developmental projects to enhance the power & water infrastructure capacity in Dubai. DEWA has announced that its AED360mn water pipeline project is progressing as per schedule. The project envisages supplying, implementing and extending a water transmission network by 67 kilometers in several areas of Dubai including the Dubai-Al Ain road, Dubai Bypass Road, Camel Racetrack, and Al Doha Street. (GulfBase.com)  Empower acquires Palm Utilities at AED1.8bn – Empower has acquired Palm Utilities, another district cooling service provider in the UAE, at a value of AED1.8bn. This deal increases Empower’s market share from 35% to 70%. The acquisition will be funded through a combination of internal accruals, equity and debt financing. (Bloomberg)  ACWA Power Barka to expand water desalination capacity – ACWA Power Barka has concluded the commissioning activities for its SWRO Desalination Expansion Project and expects to launch its commercial operations in February 2014. This expansion will see a further 10 million imperial gallons a day of water added to its capacity. (MSM)  SMN Power appoints new CEO – SMN Power Holding has appointed Gillian-Alexandre Huart as the company’s new Chief Executive Officer effective from January 16, 2014. (GulfBase.com)  SHC declares 15% dividend for FY2013 – Sahara Hospitality Company’s (SHC) board of directors has recommended a dividend of 15% (OMR0.15 per equity share) for FY2013. (GulfBase.com)  BAC to attract Asian airlines after upgrade – Bahrain Airports Company (BAC) is in talks with Asian airlines as it seeks to attract more flight services to its hub that is undergoing an upgrade worth $980mn. After the upgrade, BAC’s capacity would double to 13.5mn passengers over five years. BAC’s CEO Mohamed Yousif Al-Binfalahs said that company is targeting many carriers from China, India, Indonesia, the Philippines, Malaysia and Singapore with attractive incentives. The state-owned company expects to boost passenger numbers 6% in 2014 from 7.4mn in 2013. (Bloomberg)  Saudi-Bahrain rail link faces further delay – Bahrain’s delayed causeway link with Saudi Arabia, a part of the $15.5bn GCC Railway Project, may not be completed on time. The ministries of transport and finance in both Bahrain and Saudi Arabia are studying the best way to finance and technically develop the causeway that is part of the 2,177-kilometer (1,353 mile) GCC Railway Project due for completion in 2018. The rail link between Bahrain and Saudi Arabia will be built parallel to the existing King Fahd Causeway, which currently brings in five million visitors to Bahrain annually. (Bloomberg)  IIB acquires $250mn US property – Bahrain-based Islamic bank, the International Investment Bank (IIB) has acquired a $250mn, 2,400-unit multi-family residential portfolio primarily located in Dallas (Texas, US), along with Atlas Residential Management. The Class A portfolio was acquired from Dallasbased Pillar Income Asset Management. Existing senior debt for the portfolio, which is insured by the US Department of Housing & Urban Development, was assumed during the transaction, with Macquarie Bank providing $71mn in mezzanine financing. (Bloomberg)  Etihad Airways launches Etihad Regional – Etihad Airways has launched a new brand, “Etihad Regional”, for travelers in Europe, in Zurich, Switzerland. Earlier, Etihad had announced that it was acquiring 33.3% equity in Swiss-based Darwin Airlines, which will operate Etihad Regional. Their code share with Etihad Airways started on January 17. Etihad Regional will offer year-round flights to 15 destinations in Europe using a fleet of 10 Saab 2000 turboprop aircraft. (Bloomberg)  CBO issues CDs worth OMR377mn – The Central Bank of Oman (CBO) has issued certificates of deposit (CDs) worth OMR377mn. The average interest rate of these certificates was 0.13%, while the maximum accepted interest rate was 0.13%. The tenor of these certificates is 28 days, which will mature on February 12, 2013. (GulfBase.com) Page 5 of 6
  6. 6. Rebased Performance Daily Index Performance 170.0 160.0 150.0 140.0 130.0 120.0 110.0 100.0 90.0 80.0 138.8 0.4% 0.5% 0.2% 126.0 0.0% 0.0% S&P Pan Arab Dec-13 S&P GCC Source: Bloomberg Asset/Currency Performance Gold/Ounce Silver/Ounce Crude Oil (Brent)/Barrel (FM Future) Natural Gas (Henry Hub)/MMBtu North American Spot LPG Propane Price North American Spot LPG Normal Butane Price Euro Source: Bloomberg Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% 1,254.05 0.0 0.0 4.0 DJ Industrial 16,458.56 0.0 0.0 (0.7) 20.33 0.0 0.0 4.4 S&P 500 1,838.70 0.0 0.0 (0.5) 106.48 0.0 0.0 (3.9) NASDAQ 100 4,197.58 0.0 0.0 0.5 4.39 0.0 0.0 1.1 STOXX 600 335.82 0.0 0.0 2.3 137.50 0.0 0.0 8.9 DAX 9,742.96 0.0 0.0 2.0 150.50 0.0 0.0 10.3 FTSE 100 6,829.30 0.0 0.0 1.2 1.35 0.0 0.0 (1.5) CAC 40 104.32 0.0 0.0 (0.9) Nikkei GBP 1.64 0.0 0.0 (0.8) MSCI EM CHF 1.10 0.0 0.0 (1.9) SHANGHAI SE Composite AUD 0.88 0.0 0.0 (1.5) USD Index 81.23 0.0 0.0 RUB 33.56 0.0 0.0 BRL 0.43 0.0 0.0 0.6 Yen Dubai May-13 Oman Oct-12 Abu Dhabi QE Index Mar-12 Bahrain Aug-11 Kuwait Jan-11 (0.0%) (0.1%) Qatar (0.5%) (0.2%) Saudi Arabia Jun-10 0.9% 1.0% 159.4 4,327.50 0.0 0.0 0.7 15,734.46 0.0 0.0 (3.4) 972.27 0.0 0.0 (3.0) 2,004.95 0.0 0.0 (5.2) HANG SENG 23,133.35 0.0 0.0 (0.7) 1.5 BSE SENSEX 21,063.62 0.0 0.0 (0.5) 2.1 Bovespa 49,181.86 0.0 0.0 (4.5) 1,395.79 0.0 0.0 (3.3) 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 6 of 6

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