2 January Daily market report

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2 January Daily market report

  1. 1. QE Intra-Day Movement 10,600 10,550 10,500 10,450 Market Indices 10,400 10,350 9:30 02 Jan 14 330.7 561,701.3 7.8 4,496 40 26:12 Market Indicators 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 rose 1.6% to close at 10,545.3. Gains were led by the Real Estate and Industrials indices, gaining 2.5% and 2.0% respectively. Top gainers were Qatari Investors Group and Gulf International Services, rising 10.0% and 5.4% respectively. Among the top losers, Islamic Holding Group fell 2.2%, while Qatar General Insurance & Reinsurance Co. declined 1.9%. Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index Close 1D% WTD% YTD% TTM P/E 1.6 1.3 1.1 2.0 1.3 2.5 0.8 (0.3) 1.4 2.3 1.5 1.3 0.8 2.6 0.4 2.1 1.0 (0.6) 1.2 1.4 1.6 1.3 1.1 2.0 1.3 2.5 0.8 (0.3) 1.4 2.3 N/A 13.3 13.3 12.9 12.8 13.7 9.6 19.7 22.9 16.1 GCC Top Gainers## Exchange Saudi Arabia: The TASI index rose 0.1% to close at 8,618.1. Gains were led by the Real Estate Development and Petrochemical Industries indices, rising 2.2% and 0.6% respectively. ANB Insurance rose 10.0%, while Makkah Construction & Development Co. was up 8.0%. Dubai Islamic Bank Dubai Sharjah Islamic Bank Abu Dhabi Qatari Investors Group Qatar Makkah Cons. & Dev. Saudi Arabia Abu Dhabi Comm. Bank Abu Dhabi Abu Dhabi: The ADX benchmark index rose 1.6% to close at 4,359.2. The Banking index gained 2.5%, while the Real Estate index was up 0.8%. Sharjah Islamic Bank rose 10.4%, while Abu Dhabi Ship Building Co. was up 9.5%. Close# Oman: The MSM index gained 0.2% to close at 6,889.4. Gains were led by the Financial and Services indices, gaining 0.3% and 0.2% respectively. National Mineral Water gained 5.3%, while Al Anwar Holding was up 3.2%. Aramex Dubai Yanbu Nat. Petrochem. Saudi Arabia Bahrain: The BHB index fell 0.1% to close at 1,248.0. The Investment index declined 0.2%, while the Commercial Banking index was down 0.1%. Al Salam Bank fell 5.0%, while Khaleeji Commercial Bank was down 4.4%. Bank Nizwa Qatar Gen. Ins. & Rein. 11.9 10.4 6,806.1 10.4 10.0 748.1 10.0 70.75 8.0 1,044.2 9.7 6.90 Saudi Arabia 17,795.0 1.70 Saudi Enaya Coop. Ins. 11.9 48.05 Exchange 1D% 6.00 GCC Top Losers## Kuwait: The KSE index was closed on January 2, 2014. %Chg. 20.8 1.1 7.7 21.7 (4.8) – 15,066.77 2,622.47 2,471.35 3,568.61 1,883.18 2,002.08 2,353.76 1,449.95 6,029.33 3,105.66 GCC Commentary Dubai: The DFM index gained 3.0% to close at 3,472.3. The Banking index rose 7.5%, while the Services index was up 4.2%. Dubai Islamic Bank gained 11.9%, while Emirates NBD was up 4.7%. 31 Dec 13 273.8 555,606.3 7.2 3,694 42 22:16 6.2 1,986.9 6.2 Close# Vol. ‘000 1D% Vol. ‘000 YTD% YTD% 38.80 (3.2) 923.5 (3.7) 2.96 (2.6) 236.5 (2.6) 73.25 (2.0) 411.8 (0.7) Oman 0.10 (1.9) 25.3 0.0 Qatar 47.00 (1.9) 5.0 (1.9) 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% Close* 1D% Vol. ‘000 YTD% Qatari Investors Group 48.05 10.0 748.1 10.0 Islamic Holding Group 45.00 (2.2) 99.2 (2.2) Gulf International Services 64.30 5.4 306.0 5.4 Qatar Gen. Ins. & Rein. 47.00 (1.9) 5.0 (1.9) Masraf Al Rayan 32.55 4.0 875.4 4.0 Qatar Islamic Insurance 57.10 (1.4) 6.9 (1.4) Vodafone Qatar 11.02 2.9 1,058.1 2.9 Qatar Electricity & Water Co. 179.50 (1.3) 10.5 (1.3) Al Khaleej Takaful Group 37.50 2.7 24.8 2.7 Ooredoo 136.10 (0.8) 11.5 (0.8) YTD% Qatar Exchange Top Gainers Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD% Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 United Development Co. 23.15 2.4 1,296.3 2.4 Industries Qatar 172.30 2.0 84,253.0 2.0 Vodafone Qatar 11.02 2.9 1,058.1 2.9 Qatari Investors Group 48.05 10.0 34,692.8 10.0 Masraf Al Rayan 32.55 4.0 875.4 4.0 United Development Co. 23.15 2.4 29,812.5 2.4 Qatari Investors Group 48.05 10.0 748.1 10.0 Masraf Al Rayan 32.55 4.0 28,169.7 4.0 Barwa Real Estate Co. 30.60 2.7 701.8 2.7 173.00 0.6 24,463.8 0.6 Qatar Exchange Top Vol. Trades Source: Bloomberg (* in QR) Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait# Oman Bahrain QNB Group Source: Bloomberg (* in QR) Close 10,545.27 3,472.29 4,359.20 8,618.12 7,549.52 6,889.38 1,247.98 1D% 1.6 3.0 1.6 0.1 NA 0.2 (0.1) WTD% 1.5 5.0 4.1 1.6 (1.0) 1.5 2.1 MTD% YTD% 1.6 3.0 1.6 1.0 NA 0.8 (0.1) 1.6 3.0 1.6 1.0 NA 0.8 (0.1) Exch. Val. Traded ($ mn) 90.82 440.95 218.51 1,842.40 NA 29.68 1.64 Exchange Mkt. Cap. ($ mn) 154,243.2 72,237.3 119,717.7 472,362.4 109,312.9 24,729.3 50,055.7 P/E** P/B** 13.5 20.5 12.2 17.5 16.7 10.8 8.1 1.8 1.4 1.5 2.2 1.2 1.6 0.9 Dividend Yield 4.3 2.6 4.1 3.4 3.7 3.8 3.9 # Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) ( Data as of Dec. 31, 2013) Page 1 of 6
  2. 2. Qatar Market Commentary  The QE index rose 1.6% to close at 10,545.3. The Real Estate 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 68.77% 76.05% (24,084,129.42) Non-Qatari  Qatari Investors Group and Gulf International Services were the top gainers, rising 10.0% and 5.4% respectively. Among the top losers, Islamic Holding Group fell 2.2%, while Qatar General Insurance & Reinsurance Co. declined 1.9%. Buy %* 31.23% 23.95% 24,084,129.42 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Thursday rose by 7.7% to 7.8mn from 7.2mn on Tuesday. However, as compared to the 30-day moving average of 12.3mn, volume for the day was 36.7% lower. United Development Co. and Vodafone Qatar were the most active stocks, contributing 16.7% and 13.6% to the total volume respectively. Ratings, Earnings and Global Economic Data Ratings Updates Company Agency Market Type* A.M. Best Saudi Arabia A.M. Best Bahrain Mediterranean & Gulf Insurance & Reinsurance Co. (MEDGULF) Mediterranean & Gulf Insurance & Reinsurance Co. (MEDGULF) Old Rating New Rating Rating Change Outlook Outlook Change FSR/ ICR – A/a – Stable – FSR/ ICR – A/a – Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, ICR – Issuer Credit Rating, SR – Support Rating, LC – Local Currency) Earnings Releases Company Market Advanced Petrochemical Co. (Advanced) Currency Saudi Arabia Revenue (mn) 4Q2013 % Change YoY Operating Profit (mn) 4Q2013 % Change YoY Net Profit (mn) 4Q2013 % Change YoY – – 160.4 31.3% 161.3 37.9% SR Source: Company data, DFM, ADX, MSM Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 01/02 US Department of Labor Initial Jobless Claims 28-December 339K 344K 341K 01/02 US Department of Labor Continuing Claims 21- December 2,833K 2,900K 2,931K 01/02 US Bloomberg Indices Markit US PMI Final December 01/02 US Bloomberg Bloomberg Consumer Comfort 29- December 01/02 US ISM ISM Manufacturing 01/02 US ISM ISM Prices Paid 01/02 US US Census Bureau 01/04 US 01/04 US 01/02 55 54.7 54.7 -28.7 – -27.4 December 57 56.8 57.3 December 53.5 53.0 52.5 Construction Spending MoM November 1.00% 0.60% 0.90% Bloomberg Total Vehicle Sales December 15.30M 16.00M 16.31M Bloomberg Domestic Vehicle Sales December 11.65M 12.59M 12.62M EU Markit PMI Manufacturing December 52.7 52.7 51.6 01/03 EU European Central Bank M3 Money Supply YoY November 1.50% 1.50% 1.40% 01/02 France Markit PMI Manufacturing December 47.0 47.1 48.4 01/02 Germany Markit PMI Manufacturing December 54.3 54.2 52.7 01/02 UK Markit PMI Manufacturing December 57.3 58.4 58.1 01/03 UK Nationwide Building Soc. Nationwide House PX MoM December 1.40% 0.70% 0.70% 01/03 UK Nationwide Building Soc. Nationwide House Px NSA YoY December 8.40% 7.10% 6.50% 01/03 UK Markit PMI Construction December 62.1 62.0 62.6 01/03 Spain INE CPI EU Harmonised YoY December 0.30% 0.40% 0.30% 01/03 Spain INE CPI YoY December 0.20% – 0.20% 01/02 Italy Markit PMI Manufacturing December 53.3 51.7 51.4 01/03 Italy ISTAT CPI EU Harmonized MoM December 0.30% 0.30% -0.30% 01/03 Italy ISTAT CPI EU Harmonized YoY December 0.60% 0.60% 0.70% 01/02 China Markit HSBC/Markit Manufacturing PMI December 50.5 50.5 50.8 01/03 China China Fed. of Logistics Non-manufacturing PMI December 54.6 – 56.0 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Page 2 of 6
  3. 3. News Qatar  QNB Group: Qatar’s real GDP growth may pick up to 6.8% this year – QNB Group expects Qatar’s real GDP growth to pick up to 6.8% in 2014 as the implementation of large infrastructure projects accelerates and the fast-growing population boosts domestic demand. QNB said that the acceleration will be due to large infrastructure projects such as the Lusail real estate development, the new Doha Port, the new Hamad International Airport and the Doha Metro Rail project. The non-hydrocarbon sector will continue to be the key growth driver, which is expected to grow from 42% of nominal GDP in 2012 to more than 50% by 2015. The Ministry of Development Planning & Statistics stated that Qatar’s economic growth accelerated at a buoyant pace of 6.2% in 3Q2013 as compared to 3Q2012. QNB Group said that this growth was spurred by double-digit growth in trade, restaurants & hotels; construction; transport & communication; financial, real estate & business services; as well as domestic services. The hydrocarbon sector expanded to a better-than-expected 1.8% YoY in 3Q2013 due to LNG facilities coming back to full operational capacity after maintenance over last year. Meanwhile, the non-hydrocarbon sector grew 9.5% YoY 3Q2013, driven by a strong growth in services. (Gulf-Times.com)  MPHC’s shareholders to get 4 month profit share – HE the Minister of Finance, Ali Shareef Al Emadi said that Mesaieed Petrochemical Holding Company’s (MPHC) shareholders will soon be eligible for a profit share for the first four months since the firm’s establishment in September 2013. The profits will be distributed after MPHC’s results are announced in March or April. Ali Shareef Al Emadi said that the company earned a net profit of around QR1.6bn in 2012. MPHC, a wholly-owned subsidiary of Qatar Petroleum and an umbrella entity for QChem I, Q-Chem II and Qatar Vinyl Company, is offering 323.19mn ordinary shares (26% stake) at QR10.2 a piece (including QR0.2 listing fees). (Gulf-Times,com)  Msheireb Downtown Doha achieves major DC milestone – Msheireb Properties, a subsidiary of Qatar Foundation, announced that its flagship project Msheireb Downtown Doha (MDD) has opted to install energy-efficient District Cooling (DC) technology to cool its buildings instead of using power-intensive conventional air-conditioning system. Further, Msheireb Properties announced that its flagship project has achieved permanent 11 kilovolt (kv) power connection in its first DC plant in partnership with Qatar General Electricity & Water Corporation (Kahramaa), which is now operational. This represents a major milestone for MDD as the permanent power connection will enable the operation of efficient water-cooled chillers in the DC plant, which will supply the Diwan Amiri Quarter with chilled water. This plant will be part of a larger district cooling system comprising two plants (DCP-1 and DCP2). The total capacity of the district cooling system will be 29,250 TR, which is sufficient to serve the cooling needs of the entire MDD development. (Gulf-Times.com, Peninsula Qatar)  Industries Qatar clarifies regarding QAFCO expansion projects – Industries Qatar has clarified that the group's fertilizer JV, Qatar Fertiliser Company, is unaware of the projects referred to in certain sections of the media as contributing projects for the proposed chemicals and petrochemicals production boost in Qatar. The group reiterates its disclosure policy whereby the Qatar Exchange will be informed of any confirmed projects by an official announcement. (QE)  DHBK’s BoD will meet on January 20 – Doha Bank’s (DHBK) board of directors will be holding a meeting on January 20, 2014 to discuss its financial results ending on December 31, 2013 and discuss the proposal of profit distribution for FY2013.(QE)  QIBK’s BoD will meet on January 19 – Qatar Islamic Bank’s (QIBK) board of directors will be holding a meeting on January 19, 2014 to discuss its financial results ending on December 31, 2013. (QE)  QATI’s BoD scheduled to meet on January 18 – The Qatar Insurance Company’s (QATI) board of directors will hold a meeting on January 18, 2014 to discuss its financial results ending on December 31, 2013 and also the proposal of profit distribution for FY2013. (QE)  MARK’s BoD to meet on January 27 – Masraf Al Rayan (MARK) has announced that its board will meet on January 27, 2014 to discuss the company’s financial results ending on December 31, 2013. (QE) International  US economic growth gauge at highest since April 2010 – A measure of future US economic growth rose last week to its strongest since April 2010, while the annualized growth rate stayed steady. The Economic Cycle Research Institute said its Weekly Leading Index increased to 132.9 in the week ended December 27 from 131.9 the previous week. The index's annualized growth rate was 1.8%, the same as a week earlier. The previous week's figure was originally reported at 1.9%. (Reuters)  Ben Bernanke: 2014 could be better year for US economy; Fed no less committed to stimulus after cut to QE – Federal Reserve Chairman Ben Bernanke said factors which have kept the economy from accelerating appear to be abating, and he predicted stronger growth in 2014. Bernanke said Americans' finances have improved and the outlook for home sales is brighter. He also expects less drag from federal spending cuts and tax increases. Meanwhile, he said the Federal Reserve is no less committed to highly accommodative policy now that it has trimmed its bond-buying stimulus. (ET)  Fed could trim bond-buying more sharply in future – Philadelphia Fed President Charles Plosser said the Federal Reserve could well consider cutting its bond-buying by more than a $10bn monthly increment in the future, floating $25bn as a hypothetical amount. The US central bank trimmed its quantitative easing program to $75bn per month, from $85bn, at a much anticipated policy meeting earlier, reducing its extraordinary support for the US economy. (Reuters)  Bank of Korea: Will stabilize financial markets if needed – Bank of Korea Governor Kim Choong-soo said the central bank will carry out appropriate measures to stabilize local financial markets if needed, echoing the finance ministry's warning that volatility in the foreign exchange market has to be curbed. He said that they will strengthen their monitoring for offshore flows and when needed will carry out stabilizing measures for financial and foreign exchange markets. (ET) Regional  CDSI: Saudi non-oil exports rose 14.5% to SR50.69bn in 3Q2013 – According to a report by the Central Department of Statistics & Information (CDSI), Saudi Arabia’s non-oil exports rose by 14.5% to reach SR50.69bn in 3Q2013 as compared to 3Q2012. The CDSI report showed that the Saudi non-oil imports Page 3 of 6
  4. 4. increased by 3.9% to reach SR153.84bn in 3Q2013 as compared to SR148.03bn in 3Q2012, but were down by 8% as compared to 2Q2013. Referring to the 2012 figures, the CDSI report said that the Saudi exports’ value reached SR1.45tn, rising 6.5% as compared to 2011. Non-Arab and Islamic Asian countries received the highest portion of Saudi exports worth SR784.39bn (53.9% of total). Japan had the highest share at SR192.2bn, followed by China at SR188.22bn. Further, in the GCC region, Bahrain was the biggest importer from Saudi Arabia at SR39.12bn, followed by the UAE at SR38.92bn. (GulfBase.com)  SAIB reports SR326.8mn net profit in 4Q2013 – The Saudi Investment Bank (SAIB) has reported a net profit of SR326.8mn in 4Q2013, reflecting an increase of 325.4% QoQ (+33.1% YoY). EPS stood at SR2.34 for the period ended December 31, 2013 as compared to SR1.66 in the same period last year. Total assets at the end of 2013 stood at SR80.5bn, growing 36.3% YoY. Loans & advances were up by 39.7% YoY to SR47.5bn, while customer deposits rose by 41.2% YoY to SR57.0bn. (Tadawul)  Saudi Zakat revenue exceeds SR25bn in 2013 – The Department of Zakat & Income Tax stated that its revenues for 2013 exceeded SR25bn, showing an increase of 6% as compared to 2012, when revenues reached SR12.8bn. The department stated that zakat returns will be paid to those who deserve it through the Social Security Department in the Ministry of Social Affairs. Tax returns from non-oil foreign companies reached SR12.3bn. (GulbBase.com)  Iktifaa to invest in Sudan agriculture – The Saudi agricultural company Iktifaa’s chairman Mohamed Ibn Saeed Al-Atiya stated that the company will establish agricultural and animal projects in Sudan’s state of Sennar and the Northern state to produce grain and cattle feed. Al Atiya said that the company would grow wheat, corn, and oilseeds such as sunflower and peanuts, along with investing in cattle fattening projects. He added that the Chairman of Iktifaa’s board of directors, Prince Abdel Aziz Ibn Mashaal Ibn Abdel Aziz directly instructed the company to invest in Sudan within the framework of King Abdalla Ibn Abdel Aziz initiative for achieving Arab food security. (Bloomberg)  Dubai Duty Free earns record AED700mn sales in December 2013 – Dubai Duty Free (DDF) has set a new monthly sales record of AED700mn in December 2013. DDF said that 2013 recorded 11.4% growth in sales, which grew to $1.8bn. DDF’s operations on its 30th anniversary on December 20 also set a new daily sales record of AED111.88mn through 215,000 transactions, showing 40% YoY growth. The duty-free operations recorded a staggering total of 25,973,819 sales transactions in 2013, which averaged at 71,161 sales transactions per day. From a category point of view, perfumes retained their position as the best selling category with an increase of 16% YoY. Sales of perfumes reached AED1.06bn, an increase of over AED148mn over the previous year. Perfumes contribute 16% toward the total sales for DDF. (GulfBase.com)  ARIG signs deal to sell 51% shares in Arima Insurance Software – The Arab Insurance Group (ARIG) has entered into an agreement to sell 51% of its shareholding in its wholly-owned subsidiary, Arima Insurance Software to Lebanon-based BSynchro Holding, for a net consideration of $1,250,000. Arima is engaged in the development of insurance-related software and has a share capital of $250,000 and shareholders' equity of $570,977 as on December 31, 2012. (Tadawul)  Saudia to privatize four major units in 2014 – Saudi Arabian Airlines’ (Saudia) Vice President for Public Relations Abdullah Al Ajhar said that four major units will be privatized in 2014. The units included Prince Sultan Aviation Academy, Saudia Private Airline, Medical Services, which include a 400-bed hospital and Saudi Airlines Real Estate Development Company. He noted that up to 80% of these units will be privatized in 2014. Saudia also plans to purchase 35 new aircraft to step up services in the domestic sector. (GulfBase.com)  SEC to sell local currency sukuk – The Saudi Electricity Company (SEC) has chosen two banks – HSBC's Saudi Arabian unit and Banque Saudi Fransi – to arrange roadshows ahead of a riyal-denominated Islamic bond issue. The Kingdom's monopoly utility company said it would offer the sukuk to investors between January 9 and February 27. The issue’s value was not given; the company said the value would be determined at the end of the offer period after assessing the market demand. (GulfBase.com)  DI expects AED800mn profits, up 149.5% – Dubai Investments’ Chief Executive Khalid bin Kalban said that the net profit would be over AED800mn at the end of 2013, a 149.5% increase over the AED320.6mn profit posted in 2012. The stateowned conglomerate, in which Dubai’s sovereign fund the Investment Corporation of Dubai owns 11.5% stake, has interests in several sectors such as property and manufacturing. (GulfBase.com)  Nakheel plans $1.1bn of early debt repayments in 2014 – Dubai-based developer Nakheel is planning to repay up to AED4bn of bank debt due in 2015 within 2014 as the firm benefits from a rebound in the emirate’s property sector. Nakheel was taken over by the government as part of a rescue plan worth AED56.9bn completed in 2011, following the real estate collapse in the Emirate. However, the property market rebounded in 2013, with prices rising 22% over 2012. (Bloomberg)  ATIC to invest up to $10bn in Global Foundries' semiconductor factory – Abu Dhabi's Advanced Technology Investment Company (ATIC) – controlled by Mubadala – is planning to invest up to $10bn over the next two years in Global Foundries' New York semiconductor factory. ATIC’s Chief Executive Ibrahim Ajami said that ATIC has received commitments from Mubadala for an additional $9-10bn for the expansion of ATIC’s facility in New York. The New York factory has the capacity to produce 300mm wafers at around 60,000 a month. The wafers are used to create integrated circuits, which are at the heart of all electronic devices. Further, Ajami added that ATIC is planning to invest in Global Foundries' chip manufacturing facilities in Germany and Singapore. (GulfTimes.com)  Musanada expects 30% growth in maintenance services in 2014 – Abu Dhabi based property services company Musanada expects to increase its maintenance services by 30% during 2014. Musanada has received 600 government buildings, bringing the total number supervised by Musanada to 3,300 across various sectors such as health, education, mosques and other buildings. Musanada took full responsibility for the maintenance, rehabilitation, cleanliness, janitorial services for these buildings. Musanada handles 3,300 buildings in Abu Dhabi, Al Ain and the Western Region. Further, Musanada offer concierge services and hospitality to 2,000 government buildings. Musanada’s Director of Facilities Management Engineer Hilal Al Balushi stated that comprehensive maintenance of major government buildings supervised by Musanada was worth AED67mn in 2013 as compared to AED39mn in 2012. (GulfBase.com) Page 4 of 6
  5. 5.  KOC to increase crude production to 3.15mn bpd by 2015 – The Kuwait Oil Company’s (KOC) CEO Hashim S. Hashim announced that the company is seeking to raise its crude oil output by up to 3.15mn bpd by 2015 through the drilling of around 250-300 oil wells. Hashim said that the KOC is working on its planned strategy that aspires to produce 4mn bpd by 2020 and maintain that level of production through 2030. He added that implementation of many giant projects in the foreseeable future would enable the company to achieve this goal. (Bloomberg)  NCSI: Oman’s oil production rises 2.5%, exports up 9.7% – The National Centre for Statistics and Information’s (NCSI) statistics report showed that the Oman’s oil production rose by 2.5% during January-November 2013 as compared to JanuaryNovember 2012. The average daily production of crude oil and condensates rose by 2.8% at the end of November 2013 as compared to November 2012, while the average price per barrel witnessed a slight decrease of 3.9%. The January-November period recorded an average of $105.40 per barrel, as compared to $109.69 per barrel in the same period last year. Omani oil exports to Indian markets recorded remarkable growth of 177.2% until the end of November 2013 as compared to November 2012. On the other hand, other Omani oil importing markets showed a growth of 68.6% which resulted in the rise of the balance of Omani oil exports total by 9.7% until the end of November 2013. Further, in terms of domestic production and import of natural gas, the NCSI report revealed a 4% rise in production and imports until the end of November 2013, reaching 35,840mn cubic meters, as compared to 34,476mn cubic meters in November 2012. (GulfBase.com) different units will be carried out until all units are stabilized to ensure that they are operating normally. (GulfBase.com)  Al Madina Takaful gets CMA’s approval to be first Takaful provider in Oman – Al Madina Insurance Company (Al Madina Takaful) has received approval from the Capital Market Authority to be the first Takaful provider in Oman. The company announced that all insurance policy agreements that are current will be replaced by Takaful policy agreement with effect from January 01, 2014. Moreover, the company will commence issuing Takaful policies with effect from January 01, 2014. (MSM)  Oman’s 2014 budget sees slowdown in spending, economic growth seen at 5% – Oman’s Financial Affairs Minister Darwish al-Balushi said that the country’s 2014 budget plan will reduce growth in state spending as the government grapples with increasing pressure on its finances. Al Balushi’s budget plan marks a shift toward more cautious fiscal policy. Oman had boosted expenditure sharply between 2011 and 2013, spending on welfare programs, public sector wages and job creation, which had put state finances under pressure. The International Monetary Fund warned that Oman has to reform its spending and find new revenue sources over the next few years to avoid ballooning budget deficits. Oman’s spending in 2014 is projected at OMR13.5bn, up just 5% from the original plan in the 2013 budget, which envisaged a 29% leap over 2012. Revenues in 2014 are estimated at OMR11.7bn, up 4.5% from the 2013 plan. Al Balushi said that the government planned to borrow OMR400mn in 2014, including OMR200mn overseas from commercial banks and insurance companies. He predicted 5% economic growth for both 2013 and 2014, but with the private sector playing an increasing role, non-oil activity is expected to expand 7.3% in 2014 after 5.6% in 2013. (Gulf-Times.om)  Bank Nizwa plans 25 new branches in five years – Omanbased Bank Nizwa is planning to open up to 25 new branches over the next five years. The bank opened its latest branch in Ghubra, which is the seventh in its network. Bank Nizwa’s CEO Jamil el Jaroudi said that as part of its strategic plan, the bank hopes to open 4-5 branches every year for the next five years. (Bloomberg)  Sohar Refinery shuts down for 5-10 days – Oman’s Sohar Refinery will undergo a temporary shutdown due to an emergency situation in the Sour Water Stripper unit. The shutdown is expected to start at on Wednesday and the maintenance works are expected to be completed within 5-10 days. During this period, frequent shutdowns and restarts of Page 5 of 6
  6. 6. Rebased Performance Daily Index Performance 160.0 150.0 140.0 130.0 120.0 110.0 100.0 90.0 80.0 151.5 136.5 2.4% 1.6% 1.6% 1.6% 123.6 0.8% 0.1% 0.2% 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 Dubai May-13 Oman Oct-12 Abu Dhabi QE Index Mar-12 Bahrain Aug-11 Kuwait* Jan-11 (0.1%) Qatar (0.8%) Saudi Arabia Jun-10 3.0% 3.2% Source: Bloomberg, (*Market closed on January 02, 2014) Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% 1,237.01 1.0 1.9 2.6 DJ Industrial 16,469.99 0.2 (0.1) (0.6) 20.16 0.7 0.4 3.5 S&P 500 1,831.37 (0.0) (0.5) (0.9) 106.89 (0.8) (4.7) (3.5) NASDAQ 100 4,131.91 (0.3) (0.6) (1.1) 4.34 0.3 0.4 (0.1) STOXX 600 327.64 0.6 (0.0) (0.2) 123.00 (2.0) (3.5) (2.6) DAX 9,435.15 0.4 (1.6) (1.2) 138.25 0.5 (0.9) 1.3 FTSE 100 6,730.67 0.2 (0.3) (0.3) 1.36 (0.6) (1.2) (1.1) CAC 40 4,247.65 0.5 (0.7) (1.1) 104.86 0.0 (0.3) (0.4) Nikkei* 16,291.31 0.0 0.7 0.0 GBP 1.64 (0.2) (0.4) (0.8) MSCI EM CHF 1.10 (0.7) (1.5) (1.4) SHANGHAI SE Composite AUD 0.89 0.4 0.8 0.3 USD Index 80.79 0.2 0.5 RUB 33.20 0.3 1.9 BRL 0.42 0.6 (1.7) (0.8) Yen 979.49 (1.1) (1.8) (2.3) 2,083.14 (1.2) (0.9) (1.6) HANG SENG 22,817.28 (2.2) (1.8) (2.1) 0.9 BSE SENSEX 20,851.33 (0.2) (1.6) (1.5) 1.0 Bovespa 50,981.09 1.3 (0.6) (1.0) 1,442.73 0.0 (0.2) 0.0 Source: Bloomberg RTS* Source: Bloomberg (*Market closed on January 03, 2014) 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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