23 January Daily market report

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23 January Daily market report

  1. 1. QE Intra-Day Movement Market Indicators 11,350 11,300 11,250 Market Indices 11,200 11,150 9:30 23 Jan 14 554.7 598,492.4 8.8 5,280 40 21:13 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 1.4% to close at 11,338.4. Gains were led by the Telecoms and Industrials indices, gaining 5.4% and 1.4% respectively. Top gainers were Doha Insurance Co. and Ooredoo, rising 8.5% and 6.3% respectively. Among the top losers, Qatar General Ins. & Reins. Co. fell 2.2%, while Dlala Brok. & Inv. Holding Co. declined 1.2%. 22 Jan 14 419.9 590,620.8 8.7 4,792 40 24:10 %Chg. 32.1 1.3 1.0 10.2 0.0 – Close Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index 1D% WTD% YTD% TTM P/E 16,199.99 2,799.36 2,684.39 3,729.12 1,962.99 2,066.97 2,530.81 1,657.82 6,066.34 3,247.38 1.4 1.2 0.8 1.4 0.4 0.1 0.4 5.4 0.3 0.4 2.1 1.9 2.2 0.8 0.1 0.9 1.6 8.5 (0.3) 0.6 9.2 8.2 9.8 6.5 5.6 5.8 8.3 14.0 2.0 7.0 NA 13.8 13.4 13.5 13.3 14.2 10.1 22.5 23.0 16.7 Close# 1D% GCC Commentary GCC Top Gainers## Exchange Vol. ‘000 YTD% Saudi Arabia: The TASI index rose 0.1% to close at 8,772.0. Gains were led by the Media & Pub. and Transport indices, rising 2.0% & 1.2% respectively. Allianz Saudi Fransi Coop. Ins. rose 4.8%, while SADAFCO was up 4.6%. Arabtec Holding Co. Dubai 4.15 9.8 162,113.7 44.6 Deyaar Development Dubai 1.38 7.8 183,242.1 36.6 Dubai: The DFM index gained 3.6% to close at 3,819.0. The Inv. & Fin. Services index rose 5.3%, while the Real Estate & Construction index was up 5.1%. Al Salam Sudan surged 13.9%, while Shuaa Capital gained 11.7%. United Arab Bank Abu Dhabi Ooredoo Qatar Abu Dhabi: The ADX benchmark index rose 1.7% to close at 4,655.3. The Real Estate index gained 5.5%, while the Inv. & Fin. Serv. index was up 1.8%. Abu Dhabi Shipbuilding surged 14.8%, while United Arab Bank gained 7.2%. Aldar Properties Kuwait: The KSE index gained 0.4% to close at 7,778.6. The Technology and Telecommunication indices rose 1.8% each. Hayat Communications Co. gained 7.2%, while Kuwait Investment Co. was up 7.1%. Oman: The MSM index rose 0.2% to close at 7,200.5. Gains were led by the Financial and Industrial indices, gaining 0.3% & 0.1% respectively. National Gas rose 7.8%, while Oman & Emirates Inv. was up 7.2%. Bahrain: The BHB index declined 0.2% to close at 1,277. The Commercial Banking index fell 0.5%, while the Services index was down 0.1%. Nass Corporation declined 3.9%, while Ahli United Bank was down 1.3%. 7.45 7.2 537.7 15.5 157.90 6.3 247.2 15.1 Abu Dhabi 3.42 5.9 189,897.2 23.9 GCC Top Losers Exchange # 1D% Vol. ‘000 YTD% MEDGULF Saudi Arabia 27.30 (4.9) 1,587.0 (21.8) Petro Rabigh Saudi Arabia 28.50 (3.7) 6,371.8 17.5 Ajman Bank Dubai 2.80 (3.4) 4,631.4 12.9 Al-Qurain Petrochem. Kuwait 0.23 (2.6) 1,032.0 2.7 Advanced Petrochem. Saudi Arabia 43.00 (2.3) 497.7 5.4 ## Close 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) Doha Insurance Co. Close* 1D% Vol. ‘000 YTD% Close* 1D% Vol. ‘000 YTD% 29.95 Qatar Exchange Top Gainers 8.5 431.0 19.8 Qatar General Ins. & Rein. Co. 44.50 (2.2) 1.0 (7.1) 22.86 (1.2) 6.8 3.4 9.3 Qatar Exchange Top Losers 157.90 6.3 247.2 15.1 Dlala Brok. & Inv. Holding Co. Gulf International Services 73.80 4.1 463.2 21.0 Qatar Islamic Insurance 63.30 (1.1) 51.2 Islamic Holding Group 46.30 2.5 165.6 0.7 Qatar Industrial Manufacturing Co. 53.10 (0.7) 106.1 4.9 Industries Qatar 181.40 1.7 436.2 7.4 Al Ahli Bank 65.60 (0.6) 10.7 19.3 Qatar Exchange Top Vol. Trades Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% QNB Group 188.00 1.6 103,590.4 9.3 Industries Qatar 181.40 1.7 78,740.4 7.4 48.45 (0.4) 50,806.4 10.9 157.90 6.3 38,234.9 15.1 73.80 4.1 33,418.7 21.0 Ooredoo Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 11.55 (0.1) 1,163.0 7.8 Qatari Investors Group 48.45 (0.4) 1,028.6 10.9 188.00 1.6 553.3 9.3 Qatari Investors Group Barwa Real Estate Co. 32.05 0.2 475.9 7.6 Ooredoo Gulf International Services 73.80 4.1 463.2 21.0 QNB Group Source: Bloomberg (* in QR) Source: Bloomberg (* in QR) Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain Gulf International Services Close 1D% WTD% MTD% YTD% 11,338.41 3,819.02 4,655.32 8,771.99 7,778.56 7,200.52 1,276.98 1.4 3.6 1.7 0.1 0.4 0.2 (0.2) 2.1 5.8 3.0 0.1 1.5 0.8 0.7 9.2 13.3 8.5 2.8 3.0 5.4 2.3 9.2 13.3 8.5 2.8 3.0 5.4 2.3 Exch. Val. Traded ($ mn) 159.27 808.97 374.19 1,455.03 146.95 68.14 3.50 Exchange Mkt. Cap. ($ mn) 164,346.0 77,095.8 131,268.5 481,677.9 109,526.6 25,643.1 50,178.8 P/E** P/B** 14.1 22.5 13.0 17.3 17.2 11.5 8.3 1.9 1.5 1.6 2.2 1.2 1.7 0.9 Dividend Yield 4.0 2.3 3.9 3.4 3.6 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 7
  2. 2. Qatar Market Commentary  The QE index rose 1.4% to close at 11,338.4. The Telecoms 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 41.32% 67.29% (144,035,515.77) Non-Qatari  Doha Insurance Co. and Ooredoo were the top gainers, rising 8.5% and 6.3% respectively. Among the top losers, Qatar General Ins. & Reins. Co. fell 2.2%, while Dlala Brok. & Inv. Holding Co. declined 1.2%. Buy %* 58.68% 32.71% 144,035,515.77 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Thursday rose by 1.0% to 8.8mn from 8.7mn on Wednesday. However, as compared to the 30day moving average of 10.8mn, volume for the day was 19.1% lower. Vodafone Qatar and Qatari Investors Group were the most active stocks, contributing 13.3% and 11.8% to the total volume respectively. Earnings and Global Economic Data Earnings Releases Company Market Currency Revenue (mn) 4Q2013 % Change YoY Operating Profit (mn) 4Q2013 % Change YoY Net Profit (mn) 4Q2013 % Change YoY Agthia Group* Abu Dhabi AED 1512.2 14.0% 158.4 31.6% 160.1 28.4% Oman Cables Industry* Oman OMR 306.1 19.0% – – 16.9 42.0% National Detergent* Oman OMR 21.7 3.3% – – 1.1 55.5% Financial Services* Oman OMR 1.0 143.6% – – 0.5 NA Oman Cement* Oman OMR 56.4 -4.9% – – 16.0 -8.3% Source: Company data, DFM, ADX, MSM (*FY2013 results) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 01/23 US Department of Labor Initial Jobless Claims 18-January 01/23 US Bloomberg Indices Markit US PMI Preliminary January 326K 330K 325K 53.7 55.0 01/23 US FHFA House Price Index MoM November 54.4 0.10% 0.40% 0.50% 01/23 US Bloomberg Bloomberg Consumer Comfort 19-January -31 – -31 01/23 EU Markit PMI Manufacturing January 53.9 53.0 52.7 01/23 EU Markit PMI Composite January 53.2 52.5 52.1 01/23 EU Markit PMI Services January 51.9 51.4 51 01/23 EU EC Consumer Confidence January -11.7 -13.0 -13.5 01/23 France INSEE Production Outlook Indicator January -5 -9 -11 01/23 France INSEE Manufacturing Confidence January 100 100 100 01/23 France INSEE Business Confidence January 94 95 94 01/23 France Markit PMI Manufacturing January 48.8 47.5 47 01/23 France Markit PMI Services January 48.6 48.1 47.8 01/23 Germany Markit PMI Manufacturing January 56.3 54.6 54.3 01/23 Germany Markit PMI Services January 53.6 54.0 53.5 01/23 UK CBI CBI Reported Sales January 14 25 34 01/24 UK BBA BBA Loans for House Purchase December 46,521 47,300 45,394 01/23 Spain INE Unemployment Rate 4Q2013 26.03% 26.00% 25.98% 01/24 Spain INE PPI MoM December 1.10% – -0.80% 01/24 Spain INE PPI YoY December 0.60% – -0.50% 01/24 Italy ISTAT Retail Sales MoM November 0.00% 0.00% -0.10% 01/24 Italy ISTAT Retail Sales YoY November 0.10% – -1.60% 01/23 China Markit HSBC/Markit Flash Mfg PMI January 49.6 50.3 50.5 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Page 2 of 7
  3. 3. News Qatar  KCBK’s net profit rises 41.8% QoQ in 4Q2013; declares 10% cash dividend – Core banking income along with net reversals drives KCBK's net profit QoQ and YoY. Al Khaliji registered a net profit of QR152.7mn in 4Q2013 (FY2013: QR550.9mn), an increase of 41.8% QoQ and 14.2% YoY. FY2013 net income exceeded our estimate by 6.8% (BBG consensus ex-QNBFS: QR383mn). Net interest income gained by an impressive 15.5% YoY to reach QR590.4mn. Headline NIM dropped to 1.71% vs. 1.82% in 2012. However, when we look at the NIM on an adjusted basis, it appears that KCBK's NIM increased by ~3bps. Moreover, fees & commissions surprised on the upside, surging by 95.2% YoY to rest at QR142.8mn (FY2012: QR73.1mn). Another positive surprise stemmed from FX income. The bank posted QR26.4mn vs. a loss of QR12.1mn in 2012. On the other hand, investment income plummeted by 55.2%, reaching QR174.5mn vs. QR389.7mn in 2012. OPEX ticked up by 2.5% YoY to reach QR382.8mn (FY2012: QR373.3mn). Thus, the cost-to-income ratio increased to 40.6% (FY2012: 38.5%). Finally, a determining factor to KCBK's profitability was a net reversal of QR11.9mn vs. a net provision of QR61.1mn in 2012. RoAE slightly gained from 9.3% to 9.7% in 2013 (management's 3-year target: 15%). The bank's loan book surged by 58.8% (QR20.7bn) while deposits expanded 14.8% (QR19.9bn). Thus, KCBK’s LDR increased to 104% vs. 75% in 2012. Asset quality remains intact with the bank ending 2013 with NPL and coverage ratios of 0.34% and 322.9%, respectively. We expect KCBK to expand its loan book by 20.2% and 20.1% in 2014 and 2015, respectively. This along with a marginal pick up in NIMs should translate into bottom-line growth of 10.1% and 14.8% in 2014 (QR606.7mn) and 2015 (QR696.5mn), respectively. (QNBFS Research, QE)  QIIK reports QR750mn net profit in 2013; recommends QR3.75 dividend – Qatar International Islamic Bank’s (QIIK) annual net profit reached QR750mn for FY2013, growth of 10.5% YoY. Bloomberg consensus estimate was QR732mn. The bank earned total revenues of QR1.5bn in 2013. EPS reached QR4.96 in 2013 as compared to QR4.49 in 2012. QIIK’s board has recommended the distribution of cash dividend of 37.5% of the nominal value share, QR3.75 per share, to its shareholders vs. QR3.50 in 2012. (Peninsula Qatar)  New Port Project crosses 33% completion – The New Port Project’s (NPP) Executive Director Nabeel Mohamed al-Buenain said about 33% of the NPP’s construction work has been completed, which is scheduled for a first phase launch in 2016. Situated at Mesaieed, 24km south of Doha, the NPP is estimated to cost QR27bn. Spread over 26.5 square kilometers, a major part of the project is on reclaimed land. Al-Buenain added that the construction of the buildings and other areas has been initiated now, which are expected to be completed by late 2015 or early 2016. The NPP consists of a new seaport, a naval base for Emiri Navy and the Qatar Economic Zone 3. (GulfTimes.com)  Al Rayyan Tourism buys St Regis Bal Harbour Resort for QR776mn – Al Rayyan Tourism Investment Company (ARTIC), the international subsidiary of Al Faisal Holding Company, acquired St. Regis Bal Harbour Resort in Miami, Florida for QR776mn. The transaction is aimed to enhance ARTIC’s presence in the international hotel market. (Peninsula Qatar)  Qatar’s Tram Project to be ready by 2016 – The Qatar Foundation’s President Saad al-Muhannadi said that the Education City Tram Project is expected to be fully functional by September 2016. The trial runs of the trams are expected to begin by first few months of 2016. He said that the project will be able to serve around 60,000 people, including the inhabitants of the Education City. It will also have the flexibility to enhance as the Education City expands. (GulfTimes.com)  MCGS’ BoD to meet on February 13 – Medicare Group Holding’s (MCGS) board of directors will meet on February 13, 2014 to discuss the company’s financial results for the period ending on December 31, 2013. (QE)  QGRI’s BoD to meet on February 9 – Qatar General Insurance & Reinsurance Company’s (QGRI) board of directors is scheduled to meet on February 9, 2014 to discuss the company’s financial results ending on December 31, 2013. (QE) International  Draghi: Europe’s recovery firming with no deflation in sight – The European Central Bank’s President Mario Draghi said he sees signs of a ―dramatic‖ improvement in the health of the euro-area economy and that inflation will gradually return to target. Draghi said what they have been seeing in the past three or four months is both the improvement in financial markets and that their accommodative monetary policy is finally being passed through to the real economy. He added that the idea is that now they have low inflation, and it will move gradually back to the objective‖ of just under 2%. (Bloomberg)  Central Banks phase out dollar liquidity tenders as crisis eases – The European Central Bank and global peers will wind down emergency dollar liquidity facilities that have helped lenders weather financial turbulence since 2007. ECB said in view of the considerable improvement in US dollar funding conditions and the low demand for US dollar liquidity-providing operations, the ECB, the Bank of England, the Bank of Japan and the Swiss National Bank jointly decided to reduce the offering of dollar loans to banks. The ECB will cease to conduct three-month US dollar liquidity operations as of April this year, and will conduct one-week US dollar tenders at least until July 31. It will assess the need for further one-week dollar operations after July. (Bloomberg)  Lagarde: Eurozone inflation way below target – IMF’s Managing Director Christine Lagarde told the World Economic Forum that the Eurozone inflation is "way below target" and deflation is a potential risk for the bloc. Meanwhile the European Central Bank (ECB) President Mario Draghi said that the ECB stood ready to act if inflation went lower than forecast and reaffirmed that interest rates would remain low or go lower for an extended period of time. (ET)  France’s rating affirmed by Moody’s; retains Negative outlook – France’s Aa1 credit rating was affirmed by Moody’s, which maintained a Negative outlook based on the continued reduction in the competitiveness of the nation’s economy. Moody’s said that trend risks triggering a further deterioration in the government’s financial strength and the nation’s long-term growth prospects. The debt-to-GDP ratio has risen to 93.6% in 2013 from 90.2% in 2012, and Moody’s expects a further increase to above 95% by the end of 2014. (Bloomberg)  Major trade powers pledge free trade in green goods – The world’s biggest trading powers committed to achieve global free trade in environmental goods, to boost the fight against climate change. A joint statement by the US, the EU, China, Japan and several other developed economies said the agreement would take effect once a critical mass of members of the World Trade Organization (WTO) participate in it. The WTO estimates that the global market in green goods, technologies and services — Page 3 of 7
  4. 4. ranging from solar panels to wind turbines and water recycling plants — at around $1.4tn. (Gulf-Times.com)  China expects more capital inflows in 2014 – China’s foreign exchange regulator said the country’s firmer currency and higher interest rates could attract more money inflows this year, despite the possible impact of the US Federal Reserve’s stimulus tapering. The State Administration of Foreign Exchange’s (SAFE) Department of International Payments’ Head Guan Tao said that Chinese authorities are considering a ―Tobin tax‖ on financial transactions to deter speculative capital flows. A Tobin tax imposes a small charge on individual currency transactions to discourage excessive speculation. Guan Tao said Chinese banks posted a surplus of 1.68tn yuan in their foreign exchange settlements in 2013, up 210% YoY. The central bank has said China’s foreign exchange reserves rose by $157bn in 4Q2013 to $3.82tn. (Gulf-Times.com)  IEA: US oil production to rise beyond forecasts – The International Energy Agency (IEA) has estimated that oil production in the US has risen by a record 992,000 barrels per day in 2013. The increase has taken production to 7.5mn bpd, with production in November and December estimated to have crossed over 8mn bpd. The American oil consumption also rose last year, by 390,000 bpd, or 2.1%, to 18.9mn bpd. IEA increased its estimate for oil use in the US during 4Q2013, although it lowered its estimate for some other countries, including China. Overall, the global consumption rose 1.4%, making 2013 the first year since 1999 that the use of oil in the US rose more rapidly than in the rest of the world. (Qatar Tribune)  QNB Group: WTO must harness innovation for growth – According to QNB Group, the recent trade agreement reached by the World Trade Organization (WTO) has the potential to raise long-term global GDP growth. However, the agreement does not cover many areas that have been under negotiation since the Doha Round was launched in 2001. Extending the recent agreement to these areas would reap substantial dividends for global growth in the future. In particular, more could be done to leverage the positive impact of recent innovations in communications technology on global trade. In early December 2013, the WTO’s 159-member countries reached their first ever agreement since the institution was founded in 1995. The most important part of the ―Bali Package‖ relates to trade facilitation, which legally binds members to simplified customs procedures for reducing costs and increasing efficiency of customs clearance. The deal also includes agreement on difficult issues, such as how the WTO handles food security programs and better access to advanced-world economies for the least-developed economies. (Peninsula Qatar) Regional  Oil Movement: OPEC to cut exports amid fall in winter demand – According to Oil Movements, the OPEC will cut crude shipments through early February as easing growth in Asia adds to a seasonal slowdown in demand. The OPEC will reduce its sailings by 210,000 barrels a day (0.9%) to 23.66mn barrels in the four weeks to February 8. That compares with 23.87mn barrels in the period to January 11. These figures exclude two out of OPEC’s 12 members, Angola and Ecuador. (Bloomberg)  S&P Dow Jones launches Shari’ah Index – S&P Dow Jones Indices has launched the S&P GCC Composite Shari’ah Dividend Index, which is designed to measure the performance of the highest yielding, Shari’ah compliant stocks in the GCC region. These stocks meet respective liquidity, dividend growth, and dividend sustainability criteria. The S&P GCC Composite Shari’ah Dividend Index’s universe is drawn from the S&P GCC Composite Shari’ah Index, which offers investors a Shari’ahcompliant benchmark for the six GCC states – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. The S&P GCC Composite Shari’ah Dividend Index consists of the 30 highest yielding stocks from the eligible universe, subject to a minimum of two stocks per country. The index constituents are weighted by their indicated annual dividend yield. (GulfBase.com)  Takween signs MoU with Magna – Takween Advanced Industries has signed a MoU with Magna Steyr Company for cooperation in regard to manufacture of automotive parts, components and vehicle assembly in Saudi Arabia. The MoU will be effective from January 22, 2014 for 12 months from the date of signing. Takween and Magna will jointly carry out feasibility and marketing studies for the Saudi automotive market. The MOU is in line with Takween’s mission to acquire and develop technology for industrial development and is in accordance with the Saudi Government’s initiative to develop downstream industries. (Tadawul)  CPC plans IPO by June – Saudi-based Construction Products Holding (CPC) is planning an IPO within the next few months, possibly paving the way for more listings by family-controlled Saudi companies. CPC's Chief Executive said that the IPO would happen before June 2014. The company plans to float 30% of its shares. (GulfBase.com)  Al Bayan Group signs $70mn syndicated finance with banks – Al Bayan Group Holding Company announced that it has recently signed a $70mn syndicated Islamic term financing facility with a group of leading regional and international banks. ABC Islamic Bank has been appointed as the initial mandated lead arranger and bookrunner, while the Guidance Financial Group acted as financial adviser to Al Bayan. The new financing facility is Al Bayan’s debut syndication in the regional debt market, which will be used for general corporate purposes. (GulfBase.com)  NBF reports AED393.1mn net profit in 2013 – The National Bank of Fujairah (NBF) has reported a net profit of AED393.1mn, reflecting an increase of 29% in 2013 as compared to AED305.8mn in the previous year. EPS stood at AED0.36 in 2013 as compared to AED0.28 in 2012. Loans & advances worth AED14.3bn were up 17.5% from AED12.2bn. Customer deposits worth AED15.0bn were up 24.6% in 2013 from AED12.0bn in 2012. Meanwhile, NBF’s board of directors has recommended cash dividends of 12.5% of paid-up capital, a growth of 25% from 2012. (Bloomberg)  UAB reports 35% rise in net profit in 2013 – The United Arab Bank (UAB) has reported a net profit of AED552mn, reflecting an increase of 35% in 2013. Loans & advances increased by 40% to AED15.29bn in December 2013 from AED10.88bn in December 2012. Further, customer deposits recorded growth to reach AED15.03bn, surging 49% in the same period. Meanwhile, UAB’s board of directors has proposed a cash dividend of 20% of paid-up capital worth AED199.3mn and a scrip dividend of 10% of paid-up capital, amounting to AED99.6mn. (GulfBase.com)  SIB reports AED307.1mn net profit in 2013 – Sharjah Islamic Bank (SIB) has reported a net profit of AED307.1mn in 2013 as compared to AED272mn in 2012, achieving a 12.9% increase. The board of directors proposed a 10% cash dividend worth AED242.5mn. SIB’s total assets grew by 18.6% to reach AED21.7bn. Customer deposits rose AED566.5mn to reach AED11.9bn, achieving 5.0% growth since December 2012. (Zawya) Page 4 of 7
  5. 5.  UAE sets rules for covered warrants – The UAE’s financial market regulator has issued rules allowing the issuance and trading of covered warrants, a step toward developing its equities market. The Securities & Commodities Authority set conditions for banks and other companies to issue listed, tradable instruments that give investors the right to trade stocks and securities at specified prices. The conditions include a licensing regime for issuers of covered warrants and disclosure requirements. The SCA also ordered studies of best international practices so that regulations on bond listing on the country's securities markets can be implemented in the first half of this year. (Reuters)  UAE's first independent solar project planned in RAK – Utico has called for pre-qualifications for a 40MW solar power project to be built at Ras Al Khaimah. The project, the first of its kind in the UAE, will go a long way in bringing sustainability and providing affordable power to consumers in the region. Further, Utico also closed a well-participated pre-qualification process for a 100,000 cubic meters per day desalination plant. Over 20 companies participated in the tender process for the first-ever private independent water project in the world with a take-or-pay model. (Bloomberg)  Dubai Group completes $6bn debt restructuring, announces new CEO – Dubai Group has reached a final agreement with its lenders on debt restructuring worth $6bn after three years of talks. The group said that lenders agreed to extend the maturity for secured debt to December 2016, and for partially secured and unsecured loans to December 2024. A further $4bn of related party debt has been subordinated to the claims of the bank creditors. The company also announced a management change, with Ahmed Al Qassim being appointed as the Chief Executive Officer, succeeding Fadel Al-Ali, who becomes chairman. (Bloomberg)  Emaar replaces CEO – According to sources, Emaar Properties has replaced its Group Chief Executive Low Ping late last year, appointing Abdulla Lahej as her successor. (Reuters)  SHUAA Capital successfully concludes sale of 3.5mn treasury shares – SHUAA Capital has successfully concluded the sale of 3.5mn treasury shares within the deadline as required by the Securities & Commodities Authority. (DFM)  RTA announces upgrades worth AED1b in Business Bay, Zabeel – Road upgrades worth AED1bn have been announced by the Roads and Transport Authority (RTA) that will ease traffic in Business Bay and Zabeel areas. The project, which is part of the expanding Parallel Roads network, has been endorsed by HH Shaikh Mohammad Bin Rashid Al Maktoum, Ruler of Dubai. RTA’s Chairman of the Board Mattar Al Tayer said that the project includes construction of several roads, bridges and tunnels to ensure smooth traffic flow on the parallel roads, and alleviate congestions in the neighborhood. (Bloomberg)  Emirates starts double daily flights to Moscow – Emirates Airlines announced that it will serve its Moscow route with a double daily A380 service from August 1, 2014. This second A380 replaces the existing Boeing 777 operation and increases the route’s seat capacity by 15%. (GulfBase.com)  Dubai Exports opens new Mumbai office – Dubai Exports (DE), the export promotion agency of Dubai Department of Economic Development, opened an overseas office in Mumbai, India. The new office will work in coordination with the representative office of the Department of Tourism & Commerce Marketing in Mumbai. Exports and re-exports to India were valued at AED24bn and AED31bn respectively during the first nine months of 2013. Pearls, precious metals and stones, copper, iron & steel, plastics and aluminum were some of the top commodities exported to India through Dubai. (GulfBase.com)  Dubai adds 2,950 hotel rooms in 2013 – Dubai’s hospitality market registered only a slight drop in revenue per available room (RevPAR) performance in November 2013, despite the year witnessing an addition of 2,950 new branded hotel rooms in the city. According to Ernst & Young’s Middle East Hotel Benchmark survey, Dubai’s hospitality market has rapidly absorbed this influx of new supply and continued to perform exceptionally well, with RevPAR declining by just 0.3%. Dubai’s new hotel supply included major five-star hotel openings such as the Ocean View Hotel, the Ritz Carlton’s extension on Jumeirah Beach, Sofitel Palm Jumeirah, Anantara Plam Jumeirah, Oberoi and Conrad. In November, Dubai’s overall average occupancy decreased by 5.1% as compared to November 2012, however, average daily rate increased by 5.6%. (GulfBase.com)  CBI seeks shareholder nod for $300mn rights issue – Commercial Bank International (CBI) said that it would convene a shareholder meeting on February 20, 2014 to get approval for a 50% capital increase through a rights issue. The lender, 40% owned by the Qatar National Bank, is aiming to raise AED1.1bn by issuing 787.9mn shares at the price of AED1.4 per share. The price is a 36.1% discount to its closing price of AED2.19 on Thursday. The rights issue, which has received regulatory approval, will increase the bank's paid-up capital to AED2.36bn. (Reuters)  Dana Gas announces convertible sukuk – Dana Gas has announced that the period for conversion of its convertible sukuk issued on May 8, 2013 commenced on October 31, 2013 and will expire 25 trading days prior to October 31, 2017. Sukuk holders shall have the right to convert all or part of their convertible sukuk into ordinary shares at Dana Gas during the conversion period. Meanwhile, the Company has applied to the competent authorities for an increase in its capital to reach AED6,703.1mn after the increase. (ADX)  Etihad to raise Dublin service to double-daily – Etihad Airways will increase its Abu Dhabi–Dublin service from 10 flights per week, to double daily from July 15, 2014. This 40% frequency boost will provide 8,988 seats each week between the capital cities of the UAE and Ireland. Etihad Airways will operate a Boeing 777-300 ER, configured to carry 380 passengers and an Airbus A330-200, configured to carry 262 passengers. (GulfBase.com)  Kuwait expects budget spending to slow in FY2015 – Kuwait is planning to raise its budget spending by 3.2% next fiscal year as compared to the current year's plan, indicating a much slower rise than the past decade's double digit average. The major oil producer country expects to spend KD21.86bn in its draft budget for the fiscal year starting in April, up by KD681.9mn from the FY2014’s plan. That is well below the average annual spending rise of 19.2% over the last decade. (Reuters)  APC, KOC sign SR1.03bn deal to operate 400 oil wells – Al Khorayef Petroleum Company (APC) has signed a significant contract worth SR1.03bn with the Kuwait Oil Company (KOC) to operate around 400 oil producing wells in Kuwait. Top officials from KOC, APC and its Kuwaiti subsidiary, AlKhorayef Company for Sale, Maintenance & Repair of Oil Production Equipment, took part in the signing ceremony. (Bloomberg)  Sakana Housing goes into liquidation – The Industry & Commerce Ministry's Business Investors Centre announced that Bahrain-based Sakana Holistic Housing Solutions has gone into voluntary liquidation. Abdulhakim Al Mutawa, Jamal Hijres, Page 5 of 7
  6. 6. Muhammed Wasif Ijlal and Ziad Azzam have been appointed liquidators. The company, which had a paid-up capital of BHD20mn, specialized in property development, home finance and property consulting. It offered services to Bahrainis, expatriates living in the country, GCC residents and nonresidents. (GulfBase.com)  Bahrain’s Work Ministry invested BHD50mn in 2013 – According to a report by the Information Affairs Authority, Bahrain’s Work Ministry completed around BHD50mn worth of sewage and construction projects in 2013. Work to improve the efficiency of the dual biological treatment process at the Tubli Waste Water Treatment Plant was the most expensive sewage project at BHD8.75mn. The report also indicated that the building of the Survey. (Bloomberg) Page 6 of 7
  7. 7. 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 3.2% 140.0 2.4% 127.6 1.6% 0.8% 1.7% 1.4% 0.4% 0.1% 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% 1,270.07 0.5 1.3 5.3 DJ Industrial 15,879.11 (2.0) (3.5) (4.2) 19.92 (0.6) (2.0) 2.3 S&P 500 1,790.29 (2.1) (2.6) (3.1) 107.88 0.3 1.3 (2.6) NASDAQ 100 4,128.17 (2.1) (1.7) (1.2) 5.19 (6.6) 18.0 19.4 STOXX 600 324.75 (2.4) (3.3) (1.1) 152.38 (0.1) 10.8 20.7 DAX 9,392.02 (2.5) (3.6) (1.7) 154.50 (0.6) 2.7 13.2 FTSE 100 6,663.74 (1.6) (2.4) (1.3) 1.37 (0.1) 1.0 (0.5) CAC 40 102.31 (0.9) (1.9) (2.8) Nikkei GBP 1.65 (0.9) 0.4 (0.5) MSCI EM CHF 1.12 0.3 1.7 (0.2) SHANGHAI SE Composite AUD 0.87 (1.0) (1.1) (2.6) USD Index 80.46 0.0 (0.9) RUB 34.55 1.4 3.0 BRL 0.42 (0.2) (2.1) (1.5) Yen Dubai May-13 Oman Oct-12 Abu Dhabi QE Index Mar-12 Bahrain Aug-11 Kuwait Jan-11 (0.2%) Qatar (0.8%) Saudi Arabia Jun-10 3.6% 4.0% 162.9 4,161.47 (2.8) (3.8) (3.1) 15,391.56 (1.9) (2.2) (5.5) 949.90 (1.5) (2.3) (5.3) 2,054.39 0.6 2.5 (2.9) HANG SENG 22,450.06 (1.2) (3.0) (3.7) 0.5 BSE SENSEX 21,133.56 (1.1) 0.3 (0.2) 5.1 Bovespa 47,787.38 (1.1) (2.8) (7.2) 1,364.11 (1.3) (2.3) (5.4) Source: Bloomberg RTS Source: Bloomberg Contacts Saugata Sarkar Ahmed M. Shehada Keith Whitney Sahbi Kasraoui Head of Research Head of Trading Head of Sales Manager - HNWI Tel: (+974) 4476 6534 Tel: (+974) 4476 6535 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 saugata.sarkar@qnbfs.com.qa ahmed.shehada@qnbfs.com.qa keith.whitney@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa QNB Financial Services SPC Contact Center: (+974) 4476 6666 PO Box 24025 Doha, Qatar DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (―QNBFS‖) a wholly-owned subsidiary of Qatar National Bank (―QNB‖). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 7 of 7

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