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21 April Daily Market Report


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21 April Daily Market Report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index rose 1.5% to close at 12,768.2. Gains were led by the Real Estate and Insurance indices, gaining 4.0% and 2.1% respectively. Top gainers were Mannai Corp. and Qatar & Oman Investment Co., rising 10.0% each. Among the top losers, Zad Holding Co. fell 4.2%, while Dlala' Brokerage & Investment Holding Co. declined 2.4%. GCC Commentary Saudi Arabia: The TASI index fell 0.2% to close at 9,617.8. Losses were led by the Hotel & Tou. and Energy & Utilities, falling 1.3% and 1.2% respectively. Al Sagr Co. for Coop. Ins. fell 9.3%, while Shaker Co. was down 7.5%. Dubai: The DFM index gained 2.9% to close at 4,984.0. The Real Estate & Construction index rose 5.5%, while the Invest. & Financial Services index was up 2.3%. Arabtec Holding gained 9.5%, while Deyaar Dev. Co. was up 6.1%. Abu Dhabi: The ADX benchmark index rose 1.0% to close at 5,191.8. The Real Estate index gained 3.6%, while Services index was up 2.1%. National Marine Dredging surged 14.9%, while Gulf Medical Proj. Co. was up 14.7%. Kuwait: The KSE index gained 0.6% to close at 7,484.0. The Insurance index rose 1.4%, while the Real Estate index was up 1.3%. Pearl of Kuwait Real Estate Co. surged 12.8%, while International Resorts Co. was up 8.8%. Oman: The MSM index fell 0.1% to close at 6,834.8. Losses were led by the Industrial and Financial indices, falling 0.5% and 0.1% respectively. National Gas Rights Issue declined 9.1%, while Sweets Of Oman was down 4.0%. Bahrain: The BHB index gained 0.5% to close at 1,392.5. The Investment index rose 1.6%, while the Industrial index was up 0.8%. Khaleeji Commercial Bank gained 5.8%, while Arab Banking Corporation was up 5.4%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Mannai Corp. 113.30 10.0 168.9 26.0 Qatar & Oman Investment Co. 15.10 10.0 3,960.0 20.6 Qatari Investors Group 68.40 10.0 999.3 56.5 Vodafone Qatar 17.99 10.0 10,099.3 68.0 Ezdan Holding Group 37.85 9.9 1,001.5 122.6 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 17.99 10.0 10,099.3 68.0 United Development Co. 24.50 6.3 8,605.9 13.8 Mazaya Qatar Real Estate Dev. 21.85 3.5 6,884.8 95.4 Salam International Investment Co. 14.75 6.1 5,614.6 13.4 Barwa Real Estate Co. 38.00 2.7 5,136.0 27.5 Market Indicators 21 Apr 14 20 Apr 14 %Chg. Value Traded (QR mn) 1,718.3 1,095.4 56.9 Exch. Market Cap. (QR mn) 752,317.1 737,885.4 2.0 Volume (mn) 58.5 31.5 85.3 Number of Transactions 18,630 12,079 54.2 Companies Traded 42 38 10.5 Market Breadth 25:15 14:17 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 19,040.10 1.5 1.7 28.4 N/A All Share Index 3,289.59 1.2 1.6 27.1 15.9 Banks 3,131.92 1.1 1.6 28.2 15.5 Industrials 4,416.53 0.7 1.5 26.2 16.5 Transportation 2,261.95 0.9 0.4 21.7 14.8 Real Estate 2,585.53 4.0 4.9 32.4 16.6 Insurance 3,305.35 2.1 1.5 41.5 8.7 Telecoms 1,732.63 1.4 1.2 19.2 24.6 Consumer 7,565.94 0.2 0.6 27.2 30.8 Al Rayan Islamic Index 4,243.26 2.7 3.5 39.8 19.4 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Nat. Mar. Dredging Co Abu Dhabi 9.77 14.9 100.0 13.6 Mannai Corp. Qatar 113.30 10.0 168.9 26.0 Qatari Investors Group Qatar 68.40 10.0 999.3 56.5 Vodafone Qatar Qatar 17.99 10.0 10099.3 68.0 Ezdan Holding Group Qatar 37.85 9.9 1001.5 122.6 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Al-Hassan G.I. Shaker Saudi Arabia 77.83 (7.1) 678.5 11.6 Gulf Cable & Elect. Ind. Kuwait 0.75 (6.3) 27.3 (11.8) Zamil Industrial Inv. Saudi Arabia 55.82 (3.6) 737.6 28.3 Abu Dhabi Nat. Hotels Abu Dhabi 3.30 (2.9) 1.0 6.5 Com. Bank Of Kuwait Kuwait 0.74 (2.6) 17.1 0.0 Source: Bloomberg ( # in Local Currency) ( ## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity) Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD% Zad Holding Co. 78.00 (4.2) 18.0 12.2 Dlala' Brokerage & Inv. Holding 28.30 (2.4) 636.4 28.1 Widam Food Co. 66.10 (2.4) 441.9 27.9 Qatar General Ins. & Reins. Co. 46.40 (2.3) 5.1 16.2 Qatar International Islamic Bank 83.90 (2.1) 358.4 36.0 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% United Development Co. 24.50 6.3 211,914.3 13.8 Barwa Real Estate Co. 38.00 2.7 195,414.4 27.5 Vodafone Qatar 17.99 10.0 175,008.8 68.0 Mazaya Qatar Real Estate Dev. 21.85 3.5 150,308.1 95.4 Masraf Al Rayan 51.00 5.2 140,706.1 62.9 Source: Bloomberg (* in QR) Regional Indices Close 1D% WTD% MTD% YTD% Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 12,768.17 1.5 1.7 9.7 23.0 471.94 206,586.3 16.1 2.1 3.9 Dubai 4,984.04 2.9 4.7 12.0 47.9 803.12 96,808.4 21.6 1.9 2.0 Abu Dhabi 5,191.82 1.0 0.7 6.1 21.0 391.10# 135,496.5 15.7 1.9 3.3 Saudi Arabia 9,617.76 (0.2) 0.9 1.5 12.7 2,986.74 522,219.5 20.1 2.5 2.9 Kuwait 7,483.98 0.6 0.4 (1.2) (0.9) 104.86 116,782.6 16.6 1.2 4.0 Oman 6,834.81 (0.1) (0.1) (0.3) 0.0 19.66 24,562.0 11.7 1.6 3.9 Bahrain 1,392.48 0.5 0.2 2.6 11.5 1.91 52,904.0 9.8 0.9 4.9 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any; # Value as of April 17, 2014) 12,550 12,600 12,650 12,700 12,750 12,800 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 6 Qatar Market Commentary  The QE index rose 1.5% to close at 12,768.2. The Real Estate and Insurance indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.  Mannai Corp. and Qatar & Oman Investment Co. were the top gainers, rising 10.0% each. Among the top losers, Zad Holding Co. fell 4.2%, while Dlala' Brokerage & Investment Holding Co. declined 2.4%.  Volume of shares traded on Monday rose by 85.3% to 58.5mn from 31.5mn on Sunday. Further, as compared to the 30-day moving average of 23.0mn, volume for the day was 154.7% higher. Vodafone Qatar and United Development Co. were the most active stocks, contributing 17.3% and 14.7% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Earnings and Global Economic Data Earnings Releases Company Market Currency Revenue (mn)1Q2014 % Change YoY Operating Profit (mn) 1Q2014 % Change YoY Net Profit (mn) 1Q2014 % Change YoY Al Rajhi Co. for Cooperative Insurance (ARCCI) Saudi SR 247.9 57.7% – – 4.4 NA Solidarity Saudi Takaful Co. (SSTC) Saudi SR 39.0 209.3% – – -41.8 NA Middle East Specialized Cables Co. (MESC) Saudi SR – – -1.9 NA -7.8 NA Al-Ahsa Development Co. (ADC) Saudi SR – – 5.7 317.8% 4.3 602.2% Sanad Cooperative Insurance & Reinsurance Saudi SR 56.6 -4.3% – – -13.0 NA MetLife AIG ANB Cooperative Insurance Co. Saudi SR – – – – -4.9 NA Aljazira Takaful Ta'wuni Co. (ATT) Saudi SR 0.3 NA – – 2.1 NA National Industrialization Co. (NIC) Saudi SR – – 829.6 -7.9% 320.8 -9.7% Mohammad Al Mojil Group Saudi SR – – -17.6 NA -22.7 NA Dallah Healthcare Holding Co. (DHC) Saudi SR – – 39.7 3.4% 40.5 3.8% Anaam International Holding Group Saudi SR – – -8.8 NA -7.5 NA Saudi Industrial Services Co. (SISCO) Saudi SR – – 27.0 -22.2% 12.4 -8.0% Saudi Arabian Cooperative Insurance Co. (SAICO) Saudi SR 150.1 17.8% – – 3.2 NA Knowledge Economic City Co. (KEC) Saudi SR – – -0.9 NA -2.5 NA Saudi Industrial Investment Group (SIIG) Saudi SR – – 490.0 265.7% 261.0 335.0% Abdullah Al Othaim Markets Co. Saudi SR – – 42.7 6.1% 46.5 13.9% Al-Ahlia for Cooperative Insurance Co. Saudi SR 84.9 130.3% – – 0.3 -2.2% Emaar the Economic City (EEC) Saudi SR – – 63.6 NA 49.9 NA Gulf General Cooperative Insurance Co. (GGI) Saudi SR 86.9 18.0% – – 9.2 88.1% Fawaz Abdulaziz Alhokair & Co. Saudi SR – – 119.8 30.8% 190.8 40.4% Saudi Research & Marketing Group (SRMG) Saudi SR – – -8.7 NA -27.6 NA Yamama Cement Co. (YCC) Saudi SR – – 169.0 -39.4% 175.0 -36.8% Saudi Indian Co. for Co- operative Insurance Saudi SR 43.0 6.5% – – 2.4 -27.3% Saudi Cable Co. (SCC) Saudi SR – – -40.5 NA -41.1 NA Weqaya Takaful Insurance and Reinsurance Co. Saudi SR 71.1 8.0% – – -28.5 NA Al-Babtain Power & Telecommunication Co. Saudi SR – – 25.2 70.3% 22.2 42.3% Etihad Etisalat Co. (Mobily) Saudi SR – – 1,510.0 13.8% 1,400.0 4.5% Saudi Telecom Co. (STC) Saudi SR – – 2,666.0 20.2% 2,391.0 54.3% Salama Coop. Ins. Co. Saudi SR 81.8 49.6% – – 0.8 NA Overall Activity Buy %* Sell %* Net (QR) Qatari 74.78% 74.84% (1,074,200.98) Non-Qatari 25.22% 25.16% 1,074,200.98
  3. 3. Page 3 of 6 Tihama Advertising & Public Relations Co. Saudi SR – – -8.8 NA -11.2 NA Saudi Fisheries Co. (SFC) Saudi SR – – -8.6 NA -10.3 NA United Kaipara Dairies Co. (Unikai)* Dubai AED 310.0 6.3% – – -34.5 NA Al Mazaya Holding Co. Dubai KD 3.5 -41.1% – – 1.5 588.2% Muscat Finance (MF) Oman OMR 3.1 15.1% – – 1.1 9.7% Source: Company data, DFM, ADX, MSM (*FY2013 results) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 04/21 US Chicago Fed Chicago Fed Nat Activity Index 0.2 0.2 0.5 04/21 US Conference Board Leading Index 0.80% 0.70% 0.50% 04/21 Japan Ministry of Finance Trade Balance -1446.3B -1080.9B 802.5B 04/21 Japan Ministry of Finance Trade Balance Adjusted -1714.2B -1427.6B 1184.0B 04/21 Japan Ministry of Finance Exports YoY 1.8 6.5 9.8 04/21 Japan Ministry of Finance Imports YoY 18.1 16.2 9.0 04/21 Japan JCA Supermarket Sales YoY 9.40% – 1.50% 04/21 Japan JFA Convenience Store Sales YoY 2.90% – 1.00% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  QEWS posts net profit of QR299mn in 1Q2013; earnings exceed our estimate marginally – Qatar Electricity and Water Company (QEWS) posted a net profit of QR299mn in comparison to QR201mn for 1Q2013. Reported net profit beat our estimate of QR287mn by around 4% and handily exceeded Bloomberg consensus of QR262.5mn (there was only one other estimate of QR238mn). The Earnings per Share (EPS) amounted to QR2.72 in 1Q2014 Vs. QR1.83 in 1Q2013. We continue to retain our bullish stance on the company but change our rating to Market Perform given the stock‟s price appreciation. Our price target remains QR200.21. (QNBFS Research, QE)  GISS posted a net income of QR188.6mn, growing by 38.9% YoY – The growth was primarily driven by share of income from JVs (+81.5% YoY) and other income (QR20.8mn vs. QR7.8mn in 1Q2013). Growth in revenue (+11.6% YoY) was dampened by growth in COGS (+14.3% YoY). GDI posted a revenue QR261.6mn, an increase of 51.1% YoY. Net profit from the Drilling segment grew by 82.4% YoY reaching QR33.6mn. Profitability was driven primarily by the commencement of Al- Jassra and Leshat operations, and higher daily rates received for the three extended offshore rig contracts. Revenue from the aviation segment increased by a moderate QR3.8mn, or 2.5% YoY reaching QR153.0mn. Aviation segment earnings increased in line with the muted revenue growth, as the subsidiary registered a modest QR2.2mn net profit improvement reaching QR56.2mn. The insurance subsidiary registered gross insurance revenue of QR191.6mn, implying growth of 18.4% YoY. The main contributor to this growth was the medical line of business, as additional 7,500 members joined the Al Koot Global Care Medical Insurance Scheme. Profit from the Insurance segment reached QR32.0mn, an increase of 10.7% YoY, as an increase in major insurance claims were largely offset by the release of deferred revenue and strong gains on the company‟s investment portfolio. (GISS Press Release, QNBFS Research)  MERS reports net profit of QR39.1mn in 1Q2013 – Al Meera Consumer Goods Company (MERS) reported a net profit of QR39.1mn in 1Q2014, growing in comparison to QR25.7mn in 1Q2013. The Earnings per Share (EPS) stood at QR1.96 in 1Q2014 Vs. QR2.19 in 1Q2013. (QE)  QNB Group launches QCB-regulated open-ended 'commodity fund' to offer long-term growth – QNB Group has launched a commodity fund (“QNB Commodity Fund”). “QNB Commodity Fund” invests in a wide range of commodities, including precious metals, industrial metals, agricultural products and energy-related resources such as oil and gas. QNB Commodity Fund is the first of a kind that is regulated by Qatar Central Bank (QCB) and will be managed by QNB Group. Investments are accepted from Qatari and non-Qatari individuals, as well as from corporate investors. This is an open- ended mutual fund with monthly subscription and redemptions. The Fund is denominated in Qatari Riyals and the minimum investment is QR 20,000. (QNB Group Press Release)  UDCD signs a sale & purchase agreement for 47 land plots – United Development Company (UDCD) has signed a sale and purchase agreement for forty-seven (47) land plots in the Costa Malaz precinct at The Pearl-Qatar, with a strategic partner for the value of QR1.45bn. The total area of the land plots is approximately 103,000 square meters and its ownership will be transferred later in 2014. (QE)  Woqod to open four new petrol stations in 2014 – Woqod expects to commission four new petrol stations, Al Wajba, Al Jumailieh, Al Thakheera and Al Wakrah in Qatar this year. Woqod CEO Ibrahim Jaham al-Kuwari said Woqod was currently involved in the implementation of more than 35 projects, 14 of which are progressing while the others are in the “design, tendering and approval” stages. The company is currently carrying out five expansion projects for existing petrol stations at Al Thayen, Industrial Area, Al Hilal, Muaither, and Bu- Fasila. These projects are expected to be completed by the end of 2014. Another five expansion projects are in the tendering and approval procedure stages. They are expected to be completed by the end of 2014 or early 2015. (  WOQOD postpones the disclosure of its 1Q2014 financial statements to 29/04/2014 – Eng. Ibrahim Jaham Al-Kuwari, WOQOD Chief Executive Officer announced that the Board decided to postpone the discussion and approval of the financial statements of 1Q2014 to be later discussed and approved in a formal meeting of the Board to be held at 1.30pm on 29th April 2014. (QE)  All airlines to operate from HIA next month – According to sources, all airlines, including the national carrier Qatar Airways,
  4. 4. Page 4 of 6 will entirely move to the new Hamad International Airport (HIA) on May 27. The Civil Aviation Authority (CAA) has issued a circular to country managers of airlines operating in the country. Earlier, 10 airlines, including budget carriers, were instructed by CAA to move operations to HIA on April 30. The Hamad International Airport is a key project in Qatar‟s national development strategy and will significantly contribute to efforts at diversifying the economy away from oil & gas. (  QE announces trading suspension of MRDS’ shares on April 22 – The Qatar Exchange (QE) has announced trading suspension of Mazaya Qatar Real Estate Development‟s (MRDS) shares on April 22, 2014 due to the company‟s scheduled AGM on that day. (QE)  ZHCD’s AGM approves 35% cash dividend – Zad Holding Company‟s (ZHCD) AGM has approved the board of directors‟ recommendation for the distribution of 35% cash dividend for the year ended December 31, 2013. (QE) International  Improving job market driving rebound in US growth – An improving job market and increasing factory production in March contributed to a jump in the US index of leading indicators that signals the pace of economic growth is poised to snap back. The New York-based group said that the Conference Board‟s index, a gauge of the outlook for the next three to six months, rose 0.8%, the most since November, after recording a 0.5% gain in February. The measure‟s 6.1% advance over the past year is the biggest since July 2011. The fewest firings since before the last recession are helping lift consumer confidence this month, which probably means the recent gains in spending can be sustained. A recent report also showed access to credit continues to thaw, making it more likely that the rebound in housing, which has showed signs of cooling, can be revived. (Bloomberg)  German growth to slow after strong first quarter – A Finance Ministry monthly report said the German economic growth will slow in the second quarter after an unusually mild winter gave Europe's largest economy a boost in the first three months of 2014. The ministry said the recent data suggested Germany had put in a "very strong" performance during the January-March period, adding that the positive impetus likely came from industrial expansion and construction activities, which benefited from the mild winter. The ministry further added that due to the weather-related surge in economic activity in the first quarter, the seasonally-adjusted figure for the following quarter will be weaker. It also stated that this technical effect should not be interpreted as a sign the economic pace is slowing, adding that the upward trend of 'hard' economic data and optimism among firms about the future pointed to the ongoing economic expansion. The government expects a growth of 1.8% this year thanks largely to a strong increase in private consumption as consumers benefit from a strong labor market, decent wages and moderate inflation while low interest rates discourage saving. The finance ministry expects inflation to remain moderate, saying consumer prices would increase by 1.4% this year and by 1.9% next year. (Reuters)  Kuroda inflation focus risking money-market health – Money market watchers say Bank of Japan (BOJ) Governor Haruhiko Kuroda risks crippling the foundation of the nation‟s financial system to achieve his inflation target. The outstanding balance of interbank lending in the so-called call market tumbled 17% this year to 14.1tn Yen ($137 billion) on April 11, the least since January 2003 when the central bank was conducting its first round of easing through bond purchases. The BOJ currently buys about 7tn Yen of government bonds a month from financial companies, offers them 0.1% loans and buys treasury discount bills without any limit to boost money supply and keep borrowing costs low. According to UBS AG, the decline in trading makes the money market vulnerable to shocks in times of crisis by increasing volatility. BOJ purchases have already eroded debt market trading, with 10-year government bonds untraded on April 14 for the first time in 13 years. Kuroda said the following day he won‟t hesitate to adjust the policy if needed as the central bank aims to boost inflation to 2%. (Bloomberg)  Japan overhauls world’s biggest public pension fund – Japan overhauled the world's biggest public pension fund, appointing new committee members, in a push toward Prime Minister Shinzo Abe's goal of adopting a more aggressive investment strategy. The government announced a reshuffle of the Investment Committee of the $1.26tn Government Pension Investment Fund (GPIF), in line with Abe's drive to have the fund make riskier investments and rely less on low-yielding government bonds. Global financial markets are keenly watching GPIF's investment strategy as the fund, bigger than Mexico's economy, is a huge investor and a bellwether for other Japanese institutional investors. The new committee will play a leading role when GPIF sets its new investment allocation targets over the coming months. Abe has promised GPIF reform as an element of his growth strategy, the "third arrow" in his policy, following aggressive monetary and fiscal stimulus. Health Minister Norihisa Tamura, who appoints the GPIF Investment Committee members, shrank the panel to eight members from 10 as part of the overhaul process. Two members retained their seats and one former member was brought back on. (Reuters)  China heightens alert over illegal fund-raising as internet finance booms – A senior official at the country's banking sector watchdog said the fast development of internet finance in China is driving an increase in cases of illegal fund-raising, a situation that could worsen if regulation does not catch up. Liu Zhangjun, a director at the China Banking Regulatory Commssion (CBRC) in charge of combating illegal fund-raising, said some of the recent cases have been disguised as normal online financial services, requiring tighter scrutiny. He particularly singled out cases conducted in the name of "crowd funding" and "P2P lending", two types of internet finance that are gaining increasing popularity among China's vast number of depositors. Liu said as internet finance is developing rapidly, many illegal funding activities are moving from offline to online. He further added that some lawbreakers are seeking loopholes left by a regulatory vacuum and blurred legal boundaries for new forms of financing. Beijing has consistently taken a very harsh stance toward illegal fund-raising, a term usually used to describe deposit-taking from the public by people without licenses to do so, because it can lead to financial market disorder and threaten social stability. (Reuters) Regional  EY: GCC growth to remain robust – According to Ernst & Young‟s (EY) Rapid-Growth Markets (RGM) Forecast report, the GCC growth is expected to remain robust. Qatar‟s economy is predicted to grow by 6%, Saudi Arabia by 4.3% and the UAE by 4.1% in 2014. Saudi Arabia‟s non-oil growth is expected to average 4.7% over 2014-2017. Qatar‟s non-oil growth is predicted to increase in excess of 10% in 2014. (  Saudi to generate 41GW of solar power by 2032 – Saudi Arabia has announced plans to invest $109bn to produce 41GW of solar energy by 2032, which is almost 30% of its total energy requirements by that time. Over the next two decades, the government is planning to establish energy generation projects, which run on photovoltaic cells (PV cells) with a capacity of
  5. 5. Page 5 of 6 16GW. In addition, it will also facilitate energy generation projects that will make use of energy concentrate with a capacity of 26GW. (  Zamil 602 vessel commences operations at King Abdulaziz Port – King Abdulaziz Port‟s Director, Naim Ibrahim Al-Naim, has inaugurated its locally manufactured Zamil 602 vessel at its shipyard at King Abdulaziz Port in Dammam. The Zamil 602 was manufactured at Zamil offshore services company at KAP in Dammam. (  Study: Saudi private sector’s productivity low – According to a study conducted by the Saudi labor ministry, private sector employees in the non-oil sector have critically low productivity as compared to countries such as China and India. The study looked at ways to help companies improve productivity, and increase the number of Saudis working in the private sector. The study revealed that while productivity slumped in the Kingdom over the past decade, China and India doubled their levels over the same period. It also found that the economic growth rates achieved by the kingdom was based on employing more workers, while the growth in China and the US, in contrast, was based on increased productivity. (  Herfy Food Services’ BoD approves 40% capital increase – Herfy Food Services Company‟s board of directors has approved a 40% increase in its capital, from SR330mn to SR462mn, by issuing 2 bonus shares for every 5 shares owned. This increase will be paid by transferring SR132mn from retained earnings account to the company‟s capital. Consequently, Herfy‟s outstanding shares will increase from 33mn to 46.2mn shares. The bonus shares‟ eligibility is limited to those shareholders, who are registered at the close of trading on the day of the extraordinary general assembly, which will be determined later. (Tadawul)  FAAHC’s BoD recommends 100% capital increase – Fawaz Abdulaziz Alhokair & Company‟s (FAAHC) board of directors has recommended a 100% increase in its capital, from SR1,050mn to SR2,100mn, by issuing 1 bonus share for every 1 share owned. This increase will be paid through capitalization SR1,050,000,000mn from the account. Consequently, the company's outstanding shares will increase from 105mn to 210mn shares. The bonus shares‟ eligibility is limited to those shareholders, who are registered at the close of trading on the day of the extraordinary general assembly, which will be determined later. (Tadawul)  Deyaar launches premium hotel apartments tower – Deyaar Development has launched a premium hotel apartments tower at „The Atria‟, a 1.25mn sqft luxury mixed-use twin tower complex located at the Business Bay. The company will allocate 50% of the upscale hotel apartment units for sale at an event scheduled for April 26, 2014. Further, Deyaar has received approval from the local authorities to allocate 25% of share capital to foreign investors. The Dubai Financial Market approved and activated the resolution on April 21, 2014. The company currently allocates 49% of shares to GCC citizens and foreign investors. However, foreign ownership must not exceed 25% of the total shares allocated. The ownership percentage of Emiratis is not capped at a limit for share allocation where it should not fall below 51% of the total shares. (DFM)  ARTC to continue with skyscraper project in St. Petersburg – Arabtec Holding (ARTC) has confirmed that Arabtec Construction‟s Russian Federation branch is on track to build the Gazprom tower in St. Petersburg. (DFM)  DP World launches largest container inspection facility – DP World has launched the largest and latest container inspection facility at its flagship Jebel Ali Port in Dubai. The new facility is one of the largest inspection facilities in the region, spanning over 7,000 square meters and providing 59 customs, health and environment inspection bays. (  Aldar launches new AED5bn Abu Dhabi projects – Aldar Properties has launched three new developments in Abu Dhabi worth AED5bn. The company said that the off-plan sales for the three developments will commence in May 2014 and the construction work is scheduled to begin in 2015. (ADX)  ADIB’s 1Q2014 net profit increases 20.4% to AED409.5mn – Abu Dhabi Islamic Bank‟s (ADIB) group net profit for 1Q2014 increased by 20.4% to AED409.5mn vs. AED340.1mn in 1Q2013. The group‟s net revenues for 1Q2014 increased by 16.8% to AED1,073.0mn as compared to AED919.0mn in 1Q2013. Total assets as of March 31, 2014 stood at AED103.8bn, representing an increase of 16.4% from AED89.2bn at the end of March 31, 2013. Net customer financing grew 18.1% to AED63.8bn, from AED54.0bn at the end of March 31, 2013. Customer deposits grew 21.4% to AED77.0bn, from AED63.4bn at the end of March 31, 2013. (ADX)  Kuwait central bank chief warns against rising government expenditure – Kuwait‟s central bank governor said Kuwait‟s rising public spending and dependence on oil revenues are preventing sustainable economic development, echoing warnings from the IMF. Mohammad al-Hashel said Kuwait needed to reduce wasteful spending in the state budget and “rationalize” subsidy programs, the state news agency KUNA quoted him as saying. One of the world‟s richest countries per capita, Kuwait provides heavily subsidized petrol and utilities to its 3.8mn residents and does not charge income tax. The IMF says the major oil producer‟s spending could exceed revenues as early as 2017 under a worst-case scenario. The Kuwait government predicts this could happen by around 2021. Al- Hashel said the structural imbalances in the budget hinder the process of promoting growth and development of the national economy on a sustainable basis. He said the government needed to “diversify the sources of national income” and ensure that it is able to collect all payments for services such as electricity and water. He also called for an “increasingly sophisticated tax system”. (  Duqm port in talks with four processing firms for projects – Port of Duqm is holding negotiations with four mineral processing and refining companies to set up projects at the industrial zone's mining cluster. These mineral processing companies include three foreign firms from the Middle East & Europe and one from Oman. These companies are planning to process minerals like limestone to make panels or primary refining facility for other minerals. (  Bank Sohar’s 1Q2014 net profit surges 30.85% to OMR7.96mn – Bank Sohar‟s net profit for 1Q2014 has increased by 30.85% to OMR7.96mn as compared to OMR6.08mn for 1Q2013. The bank's total assets grew from OMR1,789.62mn as of March 31, 2013 to OMR2,023.80mn as of March 31, 2014, with a growth of 13.09%. Net loans and advances grew by 16.86% to OMR1,305.15mn as compared to OMR1,116.87mn a year ago. The bank's customer deposits which stood at OMR1,409.99mn at the end of March 31, 2014, witnessed a growth of 7.59% over last year. (MSM)
  6. 6. Contacts Saugata Sarkar Keith Whitney Sahbi Kasraoui Head of Research Head of Sales Manager - HNWI Tel: (+974) 4476 6534 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 QNB Financial Services SPC Contact Center: (+974) 4476 6666 PO Box 24025 Doha, Qatar DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 6 of 6 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg (*Market closed on April 21, 2014) Source: Bloomberg (*Market closed on April 21, 2014) 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 Jun-10 Jan-11 Aug-11 Mar-12 Oct-12 May-13 Dec-13 QE Index S&P Pan Arab S&P GCC (0.2%) 1.5% 0.6% 0.5% (0.1%) 1.0% 2.9% (0.8%) 0.0% 0.8% 1.6% 2.4% 3.2% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,289.80 (0.3) (0.3) 7.0 DJ Industrial 16,449.25 0.2 0.2 (0.8) Silver/Ounce 19.45 (0.8) (0.8) (0.1) S&P 500 1,871.89 0.4 0.4 1.3 Crude Oil (Brent)/Barrel (FM Future) 109.95 0.4 0.4 (0.8) NASDAQ 100 4,121.55 0.6 0.6 (1.3) Natural Gas (Henry Hub)/MMBtu 4.77 4.4 4.4 9.7 STOXX 600* 332.43 0.0 0.0 1.3 LPG Propane (Arab Gulf)/Ton 112.13 (0.6) (0.6) (11.4) DAX* 9,409.71 0.0 0.0 (1.5) LPG Butane (Arab Gulf)/Ton* 126.50 0.0 0.0 (6.8) FTSE 100* 6,625.25 0.0 0.0 (1.8) Euro 1.38 (0.1) (0.1) 0.4 CAC 40* 4,431.81 0.0 0.0 3.2 Yen 102.62 0.2 0.2 (2.6) Nikkei 14,512.38 (0.0) (0.0) (10.9) GBP 1.68 (0.0) (0.0) 1.4 MSCI EM 1,010.76 (0.1) (0.1) 0.8 CHF 1.13 (0.2) (0.2) 0.9 SHANGHAI SE Composite 2,065.83 (1.5) (1.5) (2.4) AUD 0.93 (0.1) (0.1) 4.6 HANG SENG* 22,760.24 0.0 0.0 (2.3) USD Index 79.95 0.1 0.1 (0.1) BSE SENSEX 22,764.83 0.6 0.6 7.5 RUB 35.69 0.3 0.3 8.6 Bovespa* 52,111.85 0.0 0.0 1.2 BRL* 0.45 0.0 0.0 5.7 RTS 1,187.94 (1.0) (1.0) (17.7) 183.5 155.4 141.1