20 January Daily market report


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20 January Daily market report

  1. 1. QE Intra-Day Movement Market Indicators 11,100 11,090 11,080 11,070 Market Indices 11,060 11,050 9:30 20 Jan 14 423.7 583,970.7 8.9 4,698 42 12:28 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 0.2% to close at 11,072.1. Losses were led by the Real Estate and Industrials indices, declining 1.7% and 1.0% respectively. Top losers were Qatar Cinema & Film Dist. Co. and Qatari Investors Group, falling 7.7% and 3.9% respectively. Among the top gainers, Qatar Islamic Bank rose 1.9%, while Widam Food Co. gained 1.5%. 19 Jan 14 478.4 584,973.5 12.9 5,692 40 24:15 %Chg. (11.4) (0.2) (30.9) (17.5) 5.0 – Close Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index 1D% WTD% YTD% TTM P/E 15,819.53 2,739.40 2,634.15 3,640.32 1,958.00 2,042.98 2,556.94 1,523.08 6,049.63 3,198.72 (0.2) (0.2) 0.6 (1.0) (0.6) (1.7) (0.4) (0.6) (0.0) (0.9) (0.3) (0.3) 0.3 (1.6) (0.1) (0.3) 2.7 (0.3) (0.6) (0.9) 6.7 5.9 7.8 4.0 5.4 4.6 9.4 4.8 1.7 5.4 N/A 13.7 13.4 13.2 13.2 14.0 10.3 20.7 22.9 16.5 GCC Commentary GCC Top Gainers## Exchange Close# Saudi Arabia: The TASI index fell 0.1% to close at 8,727.8. Losses were led by the Telecom. & Info. Tech. and Agri. & Food Ind. indices, falling 1.0% and 0.9% respectively. Al Babtain fell 6.0%, while Arabian Pipes was down 4.7%. Ajman Bank 1D% Dubai 2.73 14.7 10,245.6 10.1 Nat. Bank Of Bahrain Bahrain 0.75 7.1 160.8 7.9 Dubai: The DFM index gained 1.4% to close at 3,669.8. The Investment & Financial Services index rose 2.7%, while the Real Estate & Construction index was up 2.2%. GGICO surged 14.9%, while Ajman Bank gained 14.7%. Deyaar Development Dubai 1.24 6.0 293,171.1 22.8 Fawaz Alhokair Saudi Arabia 143.25 5.3 427.0 3.1 Abu Dhabi: The ADX benchmark index rose 0.2% to close at 4,570.0. The Investment & Financial Ser. index gained 6.1%, while the Energy index was up 2.3%. Union Cement rose 9.4%, while Al Khazna Insurance was up 7.1%. Abdullah Al Othaim Saudi Arabia 131.00 4.8 246.8 5.0 GCC Top Losers Exchange Kuwait: The KSE index gained 0.5% to close at 7,738.3. The Health Care index rose 1.5%, while the Real Estate index was up 0.9%. Future Kid Entertainment & Real Estate gained 9.1%, while Gulf Fin. House was up 8.6%. Nat. Marine Dredging Abu Dhabi 8.33 (9.5) 0.1 (3.1) Abu Dhabi Nat. Ins. Co. Abu Dhabi 5.80 (9.4) 3.0 (1.7) Oman: The MSM index rose 0.4% to close at 7,165.1. Gains were led by the Financial and Services indices, rising 0.5% and 0.2% respectively. Bank Sohar rose 3.6%, while Oman Investment & Finance was up 2.5%. City Cement Co. Saudi Arabia 23.80 (4.2) 1,477.4 3.7 Saudi Dairy & Food Co. Saudi Arabia 81.25 (4.1) 116.9 (5.8) Qatari Investors Group Qatar 45.50 (3.9) 721.9 4.1 Bahrain: The BHB index gained 0.9% to close at 1,280.0. The Commercial Banking index rose 1.7%, while the Investment index was up 1.4%. Gulf Finance House gained 9.8%, while National Bank of Bahrain was up 7.1%. ## # Close Vol. ‘000 1D% Vol. ‘000 YTD% 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 Islamic Bank Close* 1D% Vol. ‘000 YTD% Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD% 75.00 Qatar Exchange Top Gainers 1.9 566.2 8.7 Qatar Cinema & Film Dist. Co. 40.10 (7.7) 0.4 0.0 37.2 2.1 Qatari Investors Group 45.50 (3.9) 721.9 4.1 Widam Food Co. 52.80 1.5 Doha Insurance Co. 27.55 1.5 12.9 10.2 Gulf Warehousing Co. 40.95 (3.2) 87.1 (1.3) Doha Bank 65.40 1.4 477.8 12.4 Mazaya Qatar Real Estate Dev. 12.20 (2.6) 1,177.2 9.1 QNB Group 180.30 1.2 285.3 4.8 Islamic Holding Group 46.00 (2.5) 58.3 0.0 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Mazaya Qatar Real Estate Dev. 12.20 (2.6) 1,177.2 9.1 Industries Qatar 176.90 (1.1) 54,215.2 4.7 Qatar Gas Transport Co. 21.09 (0.1) 989.4 4.1 QNB Group 180.30 1.2 51,443.7 4.8 Masraf Al Rayan 35.00 (0.4) 818.0 11.8 Qatar Islamic Bank 75.00 1.9 42,383.0 8.7 Qatari Investors Group 45.50 (3.9) 721.9 4.1 Qatari Investors Group 45.50 (3.9) 33,167.1 4.1 Vodafone Qatar 11.33 (1.1) 703.4 5.8 Doha Bank 65.40 1.4 31,220.4 12.4 Source: Bloomberg (* in QR) Source: Bloomberg (* in QR) Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain Close 1D% WTD% MTD% YTD% 11,072.13 3,669.83 4,569.98 8,727.78 7,738.26 7,165.13 1,279.96 (0.2) 1.4 0.2 (0.1) 0.5 0.4 0.9 (0.3) 1.7 1.1 (0.4) 1.0 0.3 0.9 6.7 8.9 6.5 2.3 2.5 4.8 2.5 6.7 8.9 6.5 2.3 2.5 4.8 2.5 Exch. Val. Traded ($ mn) 144.01 662.39 348.41 1,496.74 155.60 32.45 3.89 Exchange Mkt. Cap. ($ mn) 160,358.3 74,492.1 129,284.7 479,522.8 110,261.3 25,499.7 50,727.5 P/E** P/B** 13.9 21.6 12.8 17.7 17.1 11.2 8.3 1.9 1.5 1.6 2.2 1.2 1.7 0.9 Dividend Yield 4.1 2.4 3.9 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 0.2% to close at 11,072.1. The Real Estate and Industrials indices led the losses. The index declined on the back of selling pressure from Qatari shareholders despite buying support from non-Qatari shareholders.  Qatar Cinema & Film Dist. Co. and Qatari Investors Group were the top losers, falling 7.7% and 3.9% respectively. Among the top gainers, Qatar Islamic Bank rose 1.9%, while Widam Food Co. gained 1.5%. Overall Activity Buy %* Sell %* Net (QR) Qatari 55.20% 71.87% (70,614,235.17) Non-Qatari 44.79% 28.13% 70,614,235.17 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Monday fell by 30.9% to 8.9mn from 12.9mn on Sunday. However, as compared to the 30-day moving average of 11.5mn, volume for the day was 22.0% lower. Mazaya Qatar Real Estate Dev. and Qatar Gas Transport Co. were the most active stocks, contributing 13.2% and 11.1% to the total volume respectively. Earnings and Global Economic Data Earnings Releases Company Basic Chemical Industries Co. Saudi Telecom Co. (STC) United Cooperative Assurance Co. (UCA) Knowledge Economic City (KEC) Saudi Real Estate Co. (Akaria) Wataniya Insurance Co. Al-Tayyar Travel Group Holding Co. Saudi Industrial Services Co. Allied Cooperative Insurance Group (ACIG) Tabuk Agriculture Development Co. Takween Advanced Industries Middle East Specialized Cables Co. (MESC) Saudi Orix Leasing Co. Saudia Dairy & Foodstuff Co. (SADAFCO) Arriyadh Development Co. Anaam International Holding Group Co. Sanad Insurance & Reinsurance Cooperative Co. (SANAD) Saudi Transport & Investment Co. Arabian Cement Co. Mobile Telecommunications Co. (ZAIN Saudi) Saudi Pharmaceutical Ind. & Med. Appliances Corp. (SPIMACO) Alahli Takaful Co. (ATC) Aseer Trading, Tourism & Manufacturing Co. Dar Alarkan Real Estate Development Co. National Petrochemical Co. (Petrochem) Saudi Printing & Packaging Co. (SPPC) Savola Group Alujain Corporation (ALCO) Methanol Chemicals Co. (CHEMANOL) Revenue (mn) 4Q2013 % Change YoY Operating Profit (mn) 4Q2013 % Change YoY Net Profit (mn) 4Q2013 % Change YoY – – 10.2 -63.2% 3.7 -75.2% – – 2,852.0 43.8% 3,623.0 821.9% 146.5 10.0% – – 1.8 -45.8% – – -0.6 96.5% 15.0 NA SR – – 42.1 5.0% 61.8 9.0% Saudi Arabia SR 31.0 -38.5% – – 0.6 7862.5% Saudi Arabia SR – – 214.0 26.6% 209.0 33.1% Saudi Arabia SR – – 32.3 0.2% 11.8 32.9% Saudi Arabia SR 61.7 -1.3% – – 1.8 NA Saudi Arabia SR – – -1.7 29.4% -1.8 36.2% Saudi Arabia SR – – 1.4 -93.7% 1.2 -94.4% Saudi Arabia SR – – 10.7 412.4% 1.9 NA Saudi Arabia SR – – 41.4 15.1% 27.6 32.3% Saudi Arabia SR – – 41.3 5.7% 38.6 8.5% Saudi Arabia SR – – 44.2 -42.1% 45.3 -36.3% Saudi Arabia SR – – -21.4 -631.9% -11.5 NA Saudi Arabia SR 49.3 23.6% – – 0.3 11.6% Saudi Arabia SR – – -4.9 -1787.3% 81.4 NA Saudi Arabia SR – – -80.8 NA -108.7 NA Saudi Arabia SR – – -271.0 -3.4% -462.0 -4.3% Saudi Arabia SR – – 50.6 -19.8% 57.0 6.1% Saudi Arabia SR 7.5 7.7% – – 1.2 41.2% Saudi Arabia SR – – 75.6 25.4% 40.3 19.2% Saudi Arabia SR – – 220.8 -8.8% 156.8 8.9% Saudi Arabia SR – – 191.5 NA 74.6 NA Saudi Arabia SR – – 13.6 -15.5% 3.6 -95.8% Saudi Arabia SR – – 563.0 -29.4% 564.0 36.6% Saudi Arabia SR – – 85.2 31.3% 33.8 97.5% Saudi Arabia SR – – 45.5 76.3% 36.0 137.0% Market Currency Saudi Arabia SR Saudi Arabia SR Saudi Arabia SR Saudi Arabia SR Saudi Arabia Page 2 of 6
  3. 3. Basic Chemical Industries Co. Saudi Arabia SR – – 10.2 -63.2% 3.7 -75.2% Source: Company data, DFM, ADX, MSM Global Economic Data Date Market Source Indicator Period 01/20 Germany Destatis PPI MoM December 01/20 Germany Destatis PPI YoY December 01/20 UK Rightmove Rightmove House Prices MoM January 01/20 UK Rightmove Rightmove House Prices YoY 01/20 Italy ISTAT 01/20 Italy 01/20 China 01/20 Actual Consensus Previous 0.10% 0.00% -0.10% -0.50% -0.60% -0.80% 1.00% – -1.90% January 6.30% – 5.40% Industrial Sales MoM November 0.90% – -0.70% ISTAT Industrial Orders MoM November 2.30% 0.00% -2.30% National Bureau of Stat. GDP YTD YoY 4Q2013 7.70% 7.70% 7.70% China National Bureau of Stat. GDP YoY 4Q2013 7.70% 7.60% 7.80% 01/20 China National Bureau of Stat. Industrial Production YTD YoY December 9.70% 9.70% 9.70% 01/20 China National Bureau of Stat. Industrial Production YoY December 9.70% 9.80% 10.00% 01/20 China National Bureau of Stat. Retail Sales YTD YoY December 13.10% 13.10% 13.00% 01/20 China National Bureau of Stat. Retail Sales YoY December 13.60% 13.60% 13.70% 01/20 Japan Ministry of Eco. Trade Industrial Production MoM November -0.10% – 1.00% 01/20 Japan Ministry of Eco. Trade Industrial Production YoY November 4.80% – 5.40% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  DHBK reports net profit of QR236.0mn vs. QR327.2mn (BBG consensus estimate) in 4Q2013 – Doha Bank (DHBK) reported a net profit of QR236.0mn in 4Q2013, dropping by 28.2% QoQ. Earnings per share for 2013 stood at QR5.29. Total assets rose to QR67bn in 2013, representing a 21.3% YoY growth. Loans & advances rose by 21.8% from QR33.8bn in 2012 to QR41.1bn in 2013, while customer deposits expanded 23.6% to QR42.5bn in 2013. Meanwhile, the bank has declared a 45% (QR4.5/share) cash dividend (dividend yield of 6.9%), which will have to be approved by the Qatar Central Bank and its shareholders. DHBK’s Chairman Sheikh Fahad bin Mohamad bin Jabor al-Thani said the bank is aiming for 15-20% asset growth over the next four to five years. (QNBFS Research, GulfTimes.com, Qatar Tribune)  BRES selling its Barwa Bank stake for QR2.4bn – Barwa Real Estate Group (BRES) is selling its 37.34% stake in Barwa Bank for QR2.4bn. This deal is part of an existing agreement between Qatari Diar and BRES, according to which Barwa sells some of its assets to Qatari Diar and uses the profit of those transactions to pay off some credit facilities. The deal is expected to reflect on the company’s financial results in 4Q2013. BRES has sold all its shares in Barwa Bank after using its rights to buy back 40.746.660 million shares, about 14% of the bank’s shares in December 2013. The group is currently obtaining the necessary regulatory approvals to complete the transaction. (QE)  QP to spend $7bn to boost crude, gas condensate production – According to sources, Qatar Petroleum (QP) is planning to spend around $7bn over the next seven years to boost crude oil & gas condensate production from its Bul Hanine offshore field. The field off Qatar’s east coast produces around 40,000 bpd of crude oil and QP hopes to more than double its output to 90,000 bpd by 2020. (Peninsula Qatar)  GDI takes possession of eighth jack-up rig for Oxy – Gulf Drilling International (GDI) has taken possession of its eighth jack-up drilling rig, which will be put into service for Occidental Petroleum of Qatar (Oxy). The rig, which has been named Msheireb after a district in the heart of Doha, is being towed to Qatar where it will be prepared with upgrades to provide smooth and seamless duty to its client, Oxy, at the NKOM (NakilatKeppel Offshore and Marine) shipyard. (Gulf-Times.com)  Doha Festival City appoints contractor for Qatar's largest mall – Doha Festival City, Qatar's largest retail & entertainment destination, has appointed a joint venture of the Gulf Contracting Company and Alec Qatar as the contractor to work on the construction for the mall of the QR6bn Doha Festival City project. Scheduled to open in 3Q2016, the mall will be home to over 550 brands of which many will be making their debut in Qatar. (Qatar Tribune)  QA adds three weekly flights on Doha-Khartoum route – Qatar Airways (QA) has added three additional flights per week between Doha and Khartoum, bringing the total number of services to Sudan to 17 weekly flights. QA’s CEO Akbar Al Baker said that the extra capacity would be a great boost as it would improve connections from Khartoum to over 130 destinations across the airline’s global network. (Bloomberg) International  Global regulators plan to start work on new bank asset valuation rule – According to sources, the global regulators are planning the world’s first common rule within three years to value hard-to-price assets held by banks after unexpected revisions have unsettled investors. (Gulf-Times.com)  ILO warns of jobless recovery as global unemployment climbs – The International Labour Organization (ILO) said global unemployment climbed by 5mn people in 2013 to 202mn despite green shoots in the world economy, signaling a jobless recovery. Business activity is picking up but the misery of unemployment continues to pile up. The ILO expects that about 215mn people worldwide to be unemployed by 2018. (ET) Regional  GECF: Investments on conventional gas to remain robust – The Gas Exporting Countries Forum (GECF) said the investments on conventional gas would continue to be “robust” in the foreseeable future – it further added that it would favor “competing fuel-linked” pricing for gas. GECF also stated that the present hydraulic fracturing (fracking) technology to extract shale gas would prove to be an “impediment” for future exploration because of environmental concerns, but it would Page 3 of 6
  4. 4. enhance global gas supply. GECF’s Secretary General Seyed Mohamed Hossein Adeli said the total reserves of shale gas are 2% and if one talks about production, it will be 6%. This is the reason why investments on conventional gas will continue to remain robust. (Gulf-Times.com)  MEED: Solar energy investment in MENA could cross $50bn – The MENA region could see more than $50bn worth of investment in the solar power sector by 2020 as regional governments push for the adoption of clean energy and take advantage of the region's high solar irradiation levels. According to the MENA Solar Energy Report 2014, published by MEED Insight in association with the Middle East Solar Industry Association (MESIA), up to 37,000MW of new solar, wind and hydroelectric projects are planned to be commissioned by the end of the decade. Among these around 12,000-15,000MW will be sourced from solar energy projects alone. (GulfBase.com)  Alkhabeer Capital, USAA Real Estate acquire real estate assets – Alkhabeer Capital and its investment partner USAA Real Estate Company announced that their real estate investment team has completed the acquisition of Gateway Distribution Portfolio in the city of St. Louis in the US. The Gateway Distribution Centers I & II, are modern, Class A warehouse buildings totaling 280,407 square meters that are strategically located in the Gateway Commerce Center. This premier bulk distribution park is located in the St. Louis area and is close to a major US port, four cargo handling airports, and two major highways. (GulfBase.com)  Kingdom’s two big hospitals plan stock market listings – Saudi Arabia’s two private hospital operators are planning to list their shares on the stock market as pressure mounts on the government to pour huge sums into the underdeveloped sector. Sulaiman Al-Habib Medical Group and Almana General Hospitals are expected to list on the local bourse in late 2014 or early 2015. (GulfBase.com)  Saudi Aramco cuts February supply due to maintenance – According to sources, Saudi Aramco will supply less of its Arab Extra Light crude in February 2014 due to maintenance at one of its biggest oilfields. The company will carry out maintenance at the Shaybah oilfield in February that could last up to two months. Shaybah has a capacity of 750,000 bpd, which is expected to rise to 1mn bpd by the end of 2016 or early 2017. (Reuters)  Zain Saudi’s 4G use soars 1,400% in 2013 – The Mobile Telecommunication Company (Zain Saudi) revealed that its 3G network witnessed an unprecedented 100% increase in data traffic, as compared to the same period in last year. Similarly, Zain Saudi 4G network saw a 600% increase in data traffic and 1,400% increase in active user rates in 2013. (GulfBase.com)  New JV to target Saudi solar projects – A new JV has been set up by Saudi Arabia's Abdul Latif Jameel Energy (ALJ Energy) and Fotowatio Renewable Ventures (FRV) to develop solar energy projects in the Kingdom. Both companies will jointly develop and invest in photovoltaic (PV) solar power plants. Through this venture, FRV and ALJ Energy will together on the tender of the King Abdullah City for Atomic & Renewable Energy program, which includes the construction of 41 GW of solar power plants by 2032, of which 16 GW will be photovoltaic. (GulfBase.com)  Savola Group declares SR266.99mn dividends for 4Q2013 – Savola Group’s board of directors has approved the distribution of dividends worth SR266.99mn (SR0.5 per share) for 4Q2013, representing 5% of the share’s nominal value. Shareholders who are registered in the company’s books by the end of the trading date on the day of its AGM will be eligible for these dividends. (Tadawul)  STC declares SR1,500mn dividends for 4Q2013 – The Saudi Telecom Company’s (STC) board of directors has recommended the distribution of dividends worth SR1,500mn (SR0.75 per share), representing 7.5% of the face value for 4Q2013 to its shareholders. Those shareholders who are registered in the Security Depository Center on the day of the shareholder meeting will be eligible for these dividends. (Tadawul)  ADC to increase its capital through bonus shares – Arriyadh Development Company’s (ADC) board of directors has recommended for 33.3% increase in the company’s capital through bonus shares. The company’s capital is to be raised from SR1,000mn to SR1,333.3mn, which will be done through the capitalization of SR333.3mn from account. With this, the number of shares would go up from 100mn to 133.3mn shares. (Tadawul)  UAE's Shah Gas Project to be online early 2015 – The Abu Dhabi National Oil Company’s (ADNOC) Chief Executive Abdulla Nasser Al Suwaidi said that the UAE’s Shah Gas Project will not be operational until early 2015, confirming the multi-billion dollar development was behind schedule. ADNOC officials had previously said the project, which would produce usable gas from Shah's high-sulfur reserves, will be completed in late 2014. (Reuters)  Arabtec wins AED5.7bn Jordan resort contract – Arabtec Construction has been selected to execute an AED5.7bn contract for the construction of the Red Sea Astrarium, a themed-entertainment resort in Aqaba, Jordan. The Astrarium is an integrated entertainment, hospitality, and leisure development that is set to become a family destination, attracting visitors from across the Middle East. (GulfBase.com)  Dubai starts work on huge resort on man-made islands – The Kleindienst Group has started building a huge resort complex on a man-made archipelago off Dubai's coast. The group said the “Heart of Europe” project, a complex of luxury hotels and villas stretching across six small islands is expected to be completed by 2016-end. Lying about 5 kilometers off mainland Dubai in the Gulf, the project will feature classic Italian, Spanish and German architecture as well as landscaped gardens & streets that in some cases will be lined with artificial snow. (Peninsula Qatar)  Flydubai launches first direct air link between Dubai and Hofuf – Flydubai has announced the launch of flights to Hofuf, the largest city in the Al-Ahsa region of Saudi Arabia. The new twice-weekly service to Al Ahsa Airport will commence on February 6, 2014, bringing the total number of destinations served by the carrier in the Kingdom to 11. (GulfBase.com)  DWTC expects 500,000 visitors in 1Q2014 – Dubai World Trade Centre’s (DWTC) Senior Vice-President– Venues Ahmed Alkhaja said more than 500,000 visitors are expected to visit the center in 1Q2014, which is the region’s largest meetings, incentives, conferences, exhibitions venue. He added that the growth is driven by many of the region’s leading anchor shows, including the Arab Health Exhibition & Congress, Gulfood, as well as a robust calendar of trade events, conferences and concerts. (GulfBase.com)  Emaar launches Boulevard Point in Downtown Dubai – Emaar Properties set to launch “Boulevard Point”, in Downtown Dubai on January 25, 2014. Featuring 297 residences, this 63storey building will encompass 1-3 bedroom residences. Located above the Dubai Mall extension, “Boulevard Point” will Page 4 of 6
  5. 5. offer direct access to the mall through a dedicated bridge link. (GulfBase.com) reported a net profit of OMR41.4mn for 2013, up from OMR40.7mn in the previous year. (Gulf-Times.com)  TAQA to invest $1.2bn for developing Atrush oil & gas block in Kurdistan region – Abu Dhabi National Energy Company’s (TAQA) Iraq Operations Head said it is planning to invest around $1.2bn for developing the Atrush oil & gas block in the autonomous Kurdistan region. Earlier, TAQA has received approval from the Kurdistan Regional Government (KRG) to develop the block in late 2013. The company expects to invest more than $300mn in the first phase of the project, with first oil from the 30,000 bpd first phase expected in early 2015. (Peninsula Qatar)  Renaissance divests from its NTI subsidiary – Renaissance Services (RNSS) has entered into a binding agreement with Babcock International Group (Babcock) to divest its whollyowned subsidiary, National Training Institute (NTI). Renaissance’s CEO, Stephen Thomas said that this divestment is part of the company’s strategy to focus on its core businesses: the Topaz Offshore Support Vessel Fleet and the Renaissance Contract Services & Facilities Management Group. (MSM)  BIOjet Abu Dhabi to grow aviation biofuel industry in UAE – Abu Dhabi-based Masdar Institute of Science & Technology and its partners announced that they will collaborate on a new initiative to support a sustainable aviation biofuel industry in the UAE. The venture partners include Abu Dhabi’s oil refining company Takreer, Total, Etihad Airways and Boeing Company. The initiative named “BIOjet Abu Dhabi: Flight Path to Sustainability”, will look at the possibilities to extract biofuels from agriculture waste, date palm leaves, and plants tolerant to salt water that can be grown on coastal areas of the UAE. (GulfBase.com)  IRENA & ADFD announces $41mn for renewable energy projects in developing countries – The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have announced funding for renewable energy projects in the Republic of Ecuador, Sierra Leone, the Maldives, Mauritania, Samoa, and Mali. IRENA and ADFD are providing about $41mn in loans for these projects. These selected projects bring power to isolated off-grid populations, in turn will stimulate the local economic development and raise living standards. The projects selected will provide energy to over 300,000 people and numerous businesses. In total, 35 megawatts (MW) of energy capacity will come online, along with 4mn liters of biodiesel production per year. (GulfBase.com)  Mubadala, Shell swap Malaysian oilfield stakes – Mubadala Petroleum and Royal Dutch Shell have swapped equity stakes in two exploration blocks off Malaysia. Mubadala has taken a 20% interest in the Shell-operated deepwater Block 2B, while Shell has taken a 20% interest in the Mubadala-operated Block SK320 in return. Mubadala, owned by the Abu Dhabi government, said that drilling in the Block SK320 yielded two new gas discoveries, called Pegaga and Sintok. (GulfBase.com)  Shell sells stakes in Australian gas project to KUFPEC for $1.14bn – Royal Dutch Shell said it had agreed to sell stakes in a gas project in Western Australia for $1.14bn as part of its drive to improve return on investment. Shell is selling an 8% stake in the Wheatstone and nearby Iago gas fields as well as a 6.4% stake in the related Wheatstone LNG project to the Kuwait Foreign Petroleum Exploration Company (KUFPEC). The move raises KUFPEC's holding in the Chevron-led LNG project, in which the state company is already a partner owning 13.4% stake. (Qatar Tribune)  Kuwait Projects hires banks for possible dollar bond sale – According to sources, Kuwait Projects Company has hired BNP Paribas, HSBC and JPMorgan for RegS dollar bonds under its EMTN program. Kuwait Projects Company is set to hold meetings starting January 23 in Asia, Middle East, Europe for this bond sale. (Bloomberg)  OUIC appoints acting CEO – The Oman United Insurance Company (OUIC) has appointed Muthukumar as the acting Chief Executive Officer effective from January 20, 2014. (MSM)  Bank Sohar signs MoU with OHB – Bank Sohar has signed a MoU with the Oman Housing Bank (OHB) to provide preferential housing loans to Omani citizens. As part of Bank Sohar’s commitment to the community, the provision of low-interest home loans will provide financing for local citizens to own their dream homes, which in turn will assist in the overall economic development of the country. (Bloomberg)  Alizz Islamic Bank reports loss of OMR3.2mn for 13 month – Alizz Islamic bank has reported a loss of OMR3.2mn for the period November 2, 2012 to December 31, 2013. For the preceding period, October 2011 to November 1, 2012, the bank made a loss of OMR168,432. Total assets stood at OMR99.72mn. The bank reported OMR487,468 in customers’ current accounts and OMR607,515 in equity of unrestricted investment account holders. (GulfBase.com)  Omani CMA plans to launch Oman SME Exchange – The Omani Capital Market Authority (Omani CMA) is planning to develop a capital market and exchange for small & medium enterprises (SME) in Oman. The model is being developed in line with some of the most successful SME markets in the world, and in coordination with the Ministry of Commerce & Industry and the Public Authority for SME Development. (Bloomberg)  Bahrain Airshow surpasses $3bn mark – Deals worth around $3bn were concluded during the three-day Bahrain International Airshow event and its organizers confirmed that business deals generated at the show were three times higher than the total in 2012. The announcement was made at the close of the third edition of the event by show’s organizers, the Ministry of Transportation and the Royal Bahrain Air Force in partnership with Farnborough International Ltd. With over 100 international and domestic companies present at the show, the increased business was a reflection of the event’s importance in the Middle Eastern aviation market. Over 130 delegations from 32 countries participated in a series of meetings and events. (GulfBase.com)  GFH to sell 75% stake in LUFC – The Gulf Finance House (GFH) has signed an agreement with a consortium of British investors to sell 75% of its stake in Leeds United Football Club (LUFC). The agreement is currently awaiting approval from the English Football Association. Following the sale, GFH’s stake in LUFC will remain at 10%. GFH stated that the sale should have a positive financial impact for the company. (Bahrain Bourse)  NBO reports OMR10.2mn in 4Q2013 – National Bank of Oman (NBO) posted a net profit of OMR10.2mn in 4Q2013. The bank Page 5 of 6
  6. 6. Rebased Performance Daily Index Performance 170.0 160.0 150.0 140.0 130.0 120.0 110.0 100.0 90.0 80.0 138.7 126.1 1.2% 0.9% 0.8% 0.5% 0.4% 0.4% 0.2% 0.0% S&P Pan Arab Dec-13 S&P GCC Source: Bloomberg Asset/Currency Performance Gold/Ounce Silver/Ounce Crude Oil (Brent)/Barrel (FM Future) Natural Gas (Henry Hub)/MMBtu * North American Spot LPG Propane Price* North American Spot LPG Normal Butane Price* Euro Source: Bloomberg Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% 1,254.66 0.0 0.0 4.1 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) 106.35 (0.1) (0.1) (4.0) NASDAQ 100* 4,197.58 0.0 0.0 0.5 4.39 0.0 0.0 1.1 STOXX 600 335.50 (0.1) (0.1) 2.2 137.50 0.0 0.0 8.9 DAX 9,715.90 (0.3) (0.3) 1.7 150.50 0.0 0.0 10.3 FTSE 100 6,836.73 0.1 0.1 1.3 1.36 0.1 0.1 (1.4) CAC 40 104.18 (0.1) (0.1) (1.1) 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 0.3 0.3 (1.2) USD Index* 81.23 0.0 0.0 RUB 33.76 0.6 0.6 BRL 0.43 0.1 0.1 0.7 Yen Dubai May-13 Oman Oct-12 Abu Dhabi QE Index Mar-12 Bahrain Aug-11 Kuwait Jan-11 (0.1%) (0.2%) Qatar (0.4%) Saudi Arabia Jun-10 1.4% 1.6% 159.1 4,322.86 (0.1) (0.1) 0.6 15,641.68 (0.6) (0.6) (4.0) 970.82 (0.1) (0.1) (3.2) 1,991.25 (0.7) (0.7) (5.9) HANG SENG 22,928.95 (0.9) (0.9) (1.6) 1.5 BSE SENSEX 21,205.05 0.7 0.7 0.2 2.7 Bovespa 48,708.41 (1.0) (1.0) (5.4) 1,394.49 (0.1) (0.1) (3.3) Source: Bloomberg (*Market closed on January 20, 2013) RTS Source: Bloomberg (*Market closed on January 20, 2013) 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