24 July Technical Market Report


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24 July Technical Market Report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index declined 0.2% to close at 9,650.1. Losses were led by the Banking & Financial Services and Industrial indices, declining 0.8% and 0.5% respectively. Top losers were Commercial Bank of Qatar and Mannai Corp, falling 3.4% and 1.7% respectively. Among the top gainers, Qatar Electricity & Water Co. rose 2.6%, while Ooredoo gained 2.5%. GCC Commentary Saudi Arabia: The TASI index fell 0.3% to close at 7,774.5. Losses were led by the Agr. & Food Ind. and Ins. indices, declining 1.1% and 0.8% respectively. Gulf Union Coop. Ins. fell 9.9%, while Salama Coop. Ins. was down 4.9%. Dubai: The DFM index fell 1.8% to close at 2,515.5. The Real Estate & Construction index declined 3.0%, while the Transportation index was down 2.7%. Shuaa Capital fell 5.0%, while Tamweel was down 4.9%. Abu Dhabi: The ADX benchmark index declined 0.6% to close at 3,866.8. The Energy index fell 2.5%, while the Banking index was down 0.9%. Union Cement Co. and Sharjah Cement & Industrial Dev. Co. declined 5.3% each. Kuwait: The KSE index gained 0.2% to close at 8,066.2. The Technology index rose 2.7%, while the Real Estate index was up 0.7%. Kuwait Educational Services Co. gained 7.0%, while Manazel Holding Co. was up 6.8%. Oman: The MSM index rose 0.8% to close at 6,682.3. Gains were led by the Industrial and Banking & Investment indices rising 0.7% each. Dhofar Insurance gained 7.9%, while Renaissance Services was up 4.0%. Bahrain: The BHB index gained marginally to close at 1,185.4. The Commercial Banking index was up 0.1%. Bank of Bahrain & Kuwait gained 1.0%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar Electricity & Water Co. 168.00 2.6 53.9 26.9 Ooredoo 136.80 2.5 182.3 31.5 Doha Insurance Co. 26.50 2.3 6.9 7.9 Medicare Group 47.50 1.0 557.8 33.1 Zad Holding Co. 61.30 0.8 1.2 4.3 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Commercial Bank of Qatar 70.30 (3.4) 780.8 (0.8) Medicare Group 47.50 1.0 557.8 33.1 United Development Co. 23.28 0.4 501.3 30.8 Qatar Gas Transport Co. 18.30 0.0 461.1 19.9 Masraf Al Rayan 28.05 (0.9) 341.7 13.2 Market Indicators 24 July 13 23 July 13 %Chg. Value Traded (QR mn) 263.0 233.4 12.7 Exch. Market Cap. (QR mn) 529,216.7 530,441.3 (0.2) Volume (mn) 5.0 5.3 (5.6) Number of Transactions 3,246 3,146 3.2 Companies Traded 40 40 0.0 Market Breadth 11:24 13:23 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 13,787.81 (0.2) 1.0 21.9 N/A All Share Index 2,433.97 (0.3) 0.8 20.8 13.0 Banks 2,313.19 (0.8) 0.5 18.7 12.1 Industrials 3,199.15 (0.5) (0.4) 21.8 11.9 Transportation 1,708.07 0.0 1.3 27.4 11.7 Real Estate 1,876.83 0.1 0.3 16.5 12.0 Insurance 2,229.12 0.2 (1.5) 13.5 12.0 Telecoms 1,418.19 2.2 7.3 33.2 16.2 Consumer 5,687.58 (0.4) 1.7 21.8 23.2 Al Rayan Islamic Index 2,852.03 (0.3) 0.4 14.6 14.1 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Tabuk Cement Saudi Arabia 29.10 5.4 778.8 20.0 Comm. Bank of Kuwait Kuwait 0.72 4.3 1.1 1.4 Abu Dhabi Nat. Hotels Abu Dhabi 2.28 3.6 17.2 28.8 Etihad Atheeb Tele. Saudi Arabia 15.70 3.6 15,069.5 22.7 Makkah Cons. & Dev. Saudi Arabia 71.75 3.2 735.1 76.7 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Dana Gas Abu Dhabi 0.63 (4.5) 43,283.1 40.0 SADAFCO Saudi Arabia 92.25 (3.9) 53.2 42.5 Drake & Scull Int. Dubai 1.12 (3.4) 89,058.8 59.1 Comm. Bank of Qatar Qatar 70.30 (3.4) 780.8 (0.8) Air Arabia Dubai 1.27 (3.1) 33,499.7 52.1 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% Commercial Bank of Qatar 70.30 (3.4) 780.8 (0.8) Mannai Corp 85.00 (1.7) 0.1 4.9 Qatari Investors Group 28.20 (1.4) 113.7 22.6 Qatar Islamic Insurance 60.30 (1.1) 8.5 (2.7) Dlala Brok. & Inv. Holding Co. 27.00 (1.1) 71.1 (13.1) Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Commercial Bank of Qatar 70.30 (3.4) 55,210.9 (0.8) Medicare Group 47.50 1.0 26,430.4 33.1 Ooredoo 136.80 2.5 24,818.8 31.5 Industries Qatar 163.20 (1.0) 23,498.3 15.7 QNB Group 168.40 (0.4) 14,219.7 28.6 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* 9,650.12 (0.2) 1.0 4.0 15.4 72.23 145,322.9 12.1 1.7 4.8 Dubai 2,515.45 (1.8) 0.8 13.2 55.0 172.31 63,164.5 15.8 1.0 3.2 Abu Dhabi 3,866.79 (0.6) 1.2 8.9 47.0 128.23 111,238.2 11.5 1.4 4.5 Saudi Arabia 7,774.51 (0.3) 1.4 3.7 14.3 1,303.17 411,682.6 16.2 2.0 3.7 Kuwait 8,066.24 0.2 1.5 3.8 35.9 89.20 110,953.2 23.2 1.3 3.5 Oman 6,682.26 0.8 0.9 5.4 16.0 35.65 23,085.0 11.0 1.7 4.1 Bahrain 1,185.37 0.0 (0.3) (0.2) 11.2 0.51 21,203.4 8.4 0.8 4.1 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 9,630 9,640 9,650 9,660 9,670 9,680 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 declined 0.2% to close at 9,650.1. The Banking & Financial Services and Industrial indices led the losses. The index fell on the back of selling pressure from non-Qatari shareholders despite buying support from Qatari shareholders.  Commercial Bank of Qatar and Mannai Corp were the top losers, falling 3.4% and 1.7% respectively. Among the top gainers, Qatar Electricity & Water Co. rose 2.6%, while Ooredoo gained 2.5%.  Volume of shares traded on Wednesday declined by 5.6% to 5.0mn from 5.3mn on Tuesday. Further, as compared to the 30- day moving average of 6.8mn, volume for the day was 26.4% lower. Commercial Bank of Qatar and Medicare Group were the most active stocks, contributing 15.5% and 11.1% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Ratings, Earnings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Qatar Real Estate Investment Co. (Alaqaria) Fitch Qatar LT IDR/ ST IDR/ Senior unsecured rating BBB+/F2/BBB+ BBB+/F2/BBB+ – Stable – Commercial Bank of Kuwait (CB) Fitch Kuwait LT IDR/ ST IDR/ VR/ SR/ SR floor A+/F1/bb-/1/A+ A+/F1/bb-/1/A+ – Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, ICR – Issuer Credit Rating, SR – Support Rating, VR – Viability Rating) Earnings Releases Company Market Currency Revenue (mn) 2Q2013 % Change YoY Operating Profit (mn) 2Q2013 % Change YoY Net Profit (mn) 2Q2013 % Change YoY United Insurance Co. (UIC) Abu Dhabi AED 21.3 1.9% – – 5.1 N/A Qurain Petrochemical Industries Company (QPIC)** Kuwait KD – – – – 4.2 3224.3% Al Maha Petroleum Products Marketing Co. (Al Maha)* Oman OMR 153.5 0.3% – – 5.2 -3.7% A’Saffa Foods* Oman OMR 14.1 19.0% – – 2.9 33.7% Muscat Gases Co. (MGC)* Oman OMR 4.9 8.1% – – 0.8 0.8% Oman Refreshment Co. (ORC)* Oman OMR 33.7 4.3% – – 4.6 1.7% Al Kamil Power Co. (AKPC)* Oman OMR – – – – 1.4 N/A Bahrain Commercial Facilities (BCFC) Bahrain BHD – – – – 3.1 -13.2% Source: Company data, ADX, MSM, Bahrain Brose (* 1H2013 Results, ** First quarter of FY ended June 30) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 07/24 US MBA MBA Mortgage Applications July -1.20% – -2.60% 07/24 US Bloomberg Markit US PMI Preliminary July 53.2 52.6 51.9 07/24 US US Census Bureau New Home Sales June 497K 484K 459K 07/24 US US Census Bureau New Home Sales MoM June 8.30% 1.70% 1.30% 07/24 EU Markit PMI Manufacturing July 50.1 49.1 48.8 07/24 EU Markit PMI Services July 49.6 48.7 48.3 07/24 EU Markit PMI Composite July 50.4 49.1 48.7 07/24 France Markit PMI Manufacturing July 49.8 48.8 48.4 07/24 France Markit PMI Services July 48.3 47.5 47.2 07/24 France French Labor Office Jobseekers Net Change June – 10.5 0.1 07/24 France French Labor Office Total Jobseekers June – 3282.3k 3264.5k 07/24 Germany Markit PMI Manufacturing July 50.3 49.2 48.6 07/24 Germany Markit PMI Services July 52.5 50.7 50.4 07/24 UK CBI CBI Trends Total Orders July -12 -12 -18 07/24 UK CBI CBI Trends Selling Prices July 2 4 3 07/24 UK CBI CBI Business Optimism July 7 8 5 07/24 Spain INE PPI MoM June 0.00% – 1.20% Overall Activity Buy %* Sell %* Net (QR) Qatari 58.49% 56.94% 4,089,041.93 Non-Qatari 41.51% 43.06% (4,089,041.93)
  3. 3. Page 3 of 6 07/24 Spain INE Producer Prices (YoY) June 1.30% – 0.60% 07/24 Italy ISTAT Retail Sales MoM May 0.10% 0.00% -0.10% 07/24 Italy ISTAT Retail Sales YoY May -1.10% – -2.90% 07/24 China HSBC HSBC/Markit Flash Mfg PMI July 47.7 48.2 48.2 07/24 Japan Ministry of Finance Exports YoY June 7.4 10 10.1 07/24 Japan Ministry of Finance Imports YoY June 11.8 13.8 10.1 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  VFQS’ net loss widens QoQ – Vodafone Qatar (VFQS) reported revenue of QR459.3mn for 1QFY2014, only 1% shy of our estimate of QR466.1mn (+6% QoQ, +31% YoY). Quarterly ARPU of QR123 was slightly lower than our estimate, while reported mobile subscribers of 1,149,000 were pretty much in line with our model. Growth in overall subscribers, data, postpaid and to an extent, handset sales, helped drive revenue growth for the quarter. Net loss however widened sequentially to QR84.9mn vs. our estimate of QR65.7mn and 4QFY2013’s QR73.6mn (QR118.3mn loss in June 2012). Higher-than- expected depreciation charges (QR76.1mn vs. our estimate of QR68.7mn) contributed to most of the bottom-line miss. According to management, growth in depreciation reflects continued network and IT investment. We maintain our estimates for now but will likely revise our net income expectations downward due to higher depreciation expenses. We do not envision any other major model changes and continue to expect the company to post a full year of net profit only by FY2016. For revenue, we project QR1.9bn and QR2.2bn in FY2014 and FY2015 revenue, respectively. Our EBITDA estimates are unchanged at QR446mn and QR589mn for FY2014 and FY2015, respectively. Finally, we continue to expect VFQS to pay QR0.10 in dividends per share in FY2014. Our estimates factor in VFQS’ strong subscriber traction but we remain conservative on our blended ARPU assumptions given our concerns regarding potential medium-term ARPU pressures (due to competition and encroachment by unlicensed VoIP providers). We maintain our Accumulate rating with a price target of QR10.08. (Vodafone Qatar, QE, QNBFS Research)  QATI reports QR133.7mn net profit in 2Q2013 – Qatar Insurance Company (QATI) has reported a net profit of QR133.7mn in 2Q2013, indicating a QoQ decrease of 52.5% (+40.5% YoY). EPS stood at QR3.48 in 1H2013 as compared to QR2.78 in 1H2012. Net profit for 1H2013 rose by 37.2% YoY to QR415.3mn. Net earned premium declined by 0.1% QoQ (+27.1% YoY) to QR438.1mn, while it was up 19% to QR876.6mn in 1H2013. (QE)  Fitch affirms Alaqaria at BBB+; outlook Stable – Fitch Ratings has affirmed Qatar Real Estate Investment Company’s (Alaqaria) long-term issuer default rating (IDR) and senior unsecured rating at BBB+, and short-term IDR at F2. The outlook on the long-term IDR is Stable. (Fitch)  Energy City Qatar makes early settlement of $185mn loan – Energy City Qatar (ECQ) has made an early settlement of its $185mn loan, ending the last outstanding payment ($85mn) during the first six months of 2013. ECQ’s settlement came despite an earlier recommendation by the group of banks managing the loans to extend the settlement period by another three years. However, ECQ’s management decided to pay all the outstanding loans, which happened as a result of the recovery seen in the Qatari real estate market and subsequent improvement in sales. (Gulf-Times.com)  VFQS appoints new Chairman, BoD – Vodafone Qatar (VFQS) has appointed a new board headed by Sheikh Dr Khalid bin Thani bin Abdullah al-Thani as its Chairman. The new board of directors consists of Vice Chairman Sheikh Faisal bin Thani bin Faisal al-Thani; non-executive members Sheikh Mohamed bin Abdulla al-Thani, Rashid Fahad al-Naimi, Abdulla Mohamed al-Khulaifi, Nick Read and Richard Daly; executive members Kyle Whitehill and Steve Walters. (Gulf-Times.com)  Qatar Holding picks ex-BofA banker to head M&A team – Qatar Holding has appointed former Bank of America Merrill Lynch’s employee Michael Cho as the head of its Mergers & Acquisitions (M&A) team. (Reuters) International  Eurozone: Greece to get €2.5bn if final condition is met – The Chairman of Eurozone finance ministers Jeroen Dijsselbloem said Greece has one more condition to meet to get the next €2.5bn bailout sub-tranche from the temporary Eurozone bailout fund (EFSF) on July 29. He said Greece has satisfactorily implemented all the prior actions required for the release of the next disbursement under the financial assistance program, except for one whose adoption by the Greek Parliament needs to be completed by July 25. (Reuters)  S&P cuts rating on 18 medium-sized Italian banks – Ratings agency S&P has cut its long-term counterparty credit ratings by one notch on 18 medium-sized Italian banks, citing a worsening economic outlook. The ratings for Unione di Banche Italiane and Credito Emiliano were lowered to BBB-, while that of Banca Popolare di Milano and Banco Popolare Societa Cooperativa lowered to BB, and Banca Carige was cut to BB-. Other affected banks included FGA Capital, Iccrea Holding, MedioCredito Centrale, Banca Popolare di Vicenza, Veneto Banca, Banca Popolare dell'Emilia Romagna and Unipol Banca. (Reuters)  Portugal posts wider deficit as spending rises, revenue falls – Portugal’s Finance Ministry said the government posted a wider deficit in the six months till June 2013, after its spending rose and revenue fell. The deficit of the central administration and the social security agency stood at €4.02bn as compared to a deficit of €1.7bn in the same period of 2012. Spending rose 3.8% as subsidy payments increased and revenue fell 3.1%. Tax revenue climbed 6.5%, with the revenue from direct taxes rising 25% and the revenue from indirect taxes falling 4.3%. (Bloomberg) Regional  Moody's affirms Egypt's government bond rating at Caa1, maintains Negative outlook – Moody's has affirmed the Egyptian government bond rating at Caa1, while maintaining its Negative rating outlook. The rating affirmation is supported by 1) the substantial boost in Egypt's international liquidity provided by the $12bn external financial support package from the governments of Saudi Arabia, Kuwait and the UAE, 2) The road map laid out by the interim, military-installed government for a return to democracy by early 2014 and 3) The recent containment of the government's debt-financing costs below post-Revolution peaks. The Negative outlook on Egypt's rating is driven by Moody's view of the country's considerable economic and political challenges. (Moody’s)
  4. 4. Page 4 of 6  IMF: Saudi faces challenges in creating private sector jobs – The IMF said Saudi Arabia may not be able to create all the private sector jobs it needs in order to match its rapidly growing population, which could lead to higher unemployment. The fund said a large number of young people will enter the labor market over the next decade and beyond, so creating a sufficient number of rewarding jobs for them in the private sector will be a challenge. The Fund said that recent history shows the Saudi private sector may not be able to absorb all the new job seekers. The IMF also called on the Saudi government to reduce its energy subsidies, as it has one of the highest levels of per capita energy consumption in the world and some of the lowest prices. (Gulf-Times.com)  Saudi Aramco’s oil push to raise rig count to record high – The Saudi Arabian Oil Company (Saudi Aramco) is set to add more drilling rigs than expected in 2013 and hire more rigs in 2014 as new fields are being drilled to counter dwindling output from aging deposits. According to estimates from Schlumberger Ltd and Halliburton Company, Saudi Aramco will use a record number of 170 rigs by the end of 2013, exceeding the number forecast by the oil-service companies earlier in 2013. (Bloomberg)  Almarai selects banks for hybrid sukuk – Saudi dairy producer Almarai Company has chosen BNP Paribas, Banque Saudi Fransi, HSBC Saudi Arabia, and Standard Chartered to arrange the sale of its hybrid sukuk. The offering is likely to be denominated in Saudi riyals, although the company could opt to issue in dollars instead. (Reuters)  Arabian Pipes bags SR14mn steel pipe contract from Saudi Aramco – Arabian Pipes Company has won a contract worth SR14mn to supply welded steel pipes to Saudi Aramco. Production and supply of the pipes will be carried out from its Riyadh factory and the financial impact will be visible in 4Q2013. (Tadawul)  SPCC receives first imported clinker shipment at Jazan Port – Southern Province Cement Company (SPCC) has announced the arrival of the first imported clinker shipment at Jazan Port. The 47,097-ton shipment will be grinded at Jazan plant and allocated to fulfill the rising domestic demand. This shipment is the first of many shipments to follow in future. (Tadawul)  Mobily's BoD recommends dividend for 2Q2013 – Etihad Etisalat Company's (Mobily) board of directors has recommended distributing a dividend of SR1.2 per share, representing 12% of the face value, to its shareholders for 2Q2013. Shareholders who are registered with the Securities Depository Center (SDC) on July 28, 2013 are eligible for this dividend. (Tadawul)  Al-Tayyar Travel’s board recommends SR240mn dividend for 2Q2013 – Al-Tayyar Travel Group’s board has recommended the distribution of dividends worth SR240mn (SR2 per share), representing 20% of the face value, to its shareholders for 2Q2013. Shareholders who are registered with the SDC on August 18, 2013 are eligible for this dividend. (Tadawul)  CBD’s net profit rises 2.3% YoY in 1H2013 – The Commercial Bank of Dubai (CBD) reported a net profit of AED497mn in 1H2013, indicating a YoY increase of 2.3%. Net interest income rose 3.2% YoY to AED694mn. Total assets as of June 30, 2013 stood at AED42.4bn, reflecting an increase of 7.7% YTD. Customer loans & advances were up by 7.8% YTD to AED29.3bn, while customer deposits rose by 2.7% YTD to AED28.8bn. (AME Info)  Nakheel seeks finance to build shopping mall in Palm Jumeirah – Dubai-based developer Nakheel is seeking private finance to build a shopping mall valued AED2.5bn on the Palm Jumeirah Island, as it moves further into retail and leisure sectors. Nakheel’s Chairman Ali Rashid Lootah said the company hopes to issue a tender for the 424,000 square meter shopping center in the hub of the Palm Jumeirah by the end of 2013. He also said the company was seeking to develop the multibillion dirham scheme through a build, operate and transfer mechanism. A tender for the main contract is expected to be issued by the end of the year and the construction work is likely to take two and a half years. (Bloomberg)  FGB plans Asian expansion amid profit rise – First Gulf Bank (FGB) said it will remain focused on its expansion plans in Asia as it reported 15% increase in 2Q2013 profit. (Bloomberg)  Emirates SkyCargo to operate from new base at DWC – Emirates SkyCargo has confirmed that all dedicated freight flights will be operated from its new base at Dubai World Central – Al Maktoum International Airport, when it opens in May 2014. (AME Info)  EIB appoints new head for Corporate Banking – Emirates Islamic Bank (EIB) has appointed Yakub Bobat as the new head for Corporate Banking division for managing the division and creating strong Shari’ah-based solutions for EIB corporate customers. (GulfBase.com)  Air Arabia adds Ha'il as its ninth destination in Saudi Arabia – Air Arabia has announced the addition of Ha'il, its ninth Saudi Arabian destination, beginning from August 1. The airline will run three flights each week from its hub in Sharjah to Ha'il. (AME Info)  UAE real estate portal acquires Lebanese rival – UAE-based real estate portal, Propertyfinder.ae has acquired a Lebanese real estate portal, Realestate.com.lb. (GulfBase.com)  ADNOC pumps 1.5mn bpd crude – The Abu Dhabi National Oil Company (ADNOC) is pumping about 1.5mn barrels of crude every day from its main onshore fields and is halfway through its planned $40bn investment plan. Abu Dhabi Co. for Onshore Oil Operations’ (ADCO) Senior Vice President Fareed Abdulla said the producer has boosted the capacity at its largest onshore deposits to about 1.6mn barrels per day (bpd) from 1.4mn bpd before the expansion. He added that the ADCO venture will raise the overall capacity to 1.8mn barrels per day by the end of 2017. (Bloomberg)  NBF reports AED183.5mn net profit for 1H2013 – The National Bank of Fujairah (NBF) has reported a net profit of AED183.5mn in 1H2013 as compared to AED135.5mn in 1H2012. Total assets at the end of June 2013 stood at AED18.4bn, reflecting a YTD increase of 4.6%. Loan were up 9.2% YTD at AED13.3bn. (ADX)  BKIZ reports loss of OMR1.4mn – Alizz Islamic Bank (BKIZ) has reported a loss of OMR1.4mn for the period from November 2, 2012 to June 30, 2013. Total assets as on June 30, 2013 stood at OMR100.5mn. (MSM)  Ahli Bank reports net profit of OMR12.5mn – Ahli Bank has reported a net profit of OMR12.5mn for 1H2013, reflecting an increase of 5.9% YoY. Net interest income and finance were up 23.7% YoY to OMR18.8mn. Total assets at the end of June 2013 stood at OMR1,297mn, reflecting a YoY increase of 23.3%. Loan & advances were up 17.5% YoY to OMR1,042mn, while customer deposits rose 19.7% to OMR923mn. (MSM)  Bank Nizwa obtains investment banking license – Oman- based full-fledged Islamic bank Bank Nizwa has received an
  5. 5. Page 5 of 6 investment banking license. The license will allow the bank to manage funds and issue instruments such as sukuks. (Reuters)  Al Jazeera Steel awards contract for re-bar – Al Jazeera Steel Products has announced that the contract for producing rebar has been awarded, and commercial production is expected to start by mid-2014. Al Jazeera Steel anticipates the plant to operate 24 hours thereafter. With this modification, an additional yearly production for rebar of 70,000 TPA will be possible but within the overall capacity of Merchant Bar Mill and expected to come on stream late-1H2014. (MSM)  ABC reports net profit of $112mn in 1H2013 – Arab Banking Corporation (ABC) has reported the consolidated group net profit of $112mn in 1H2013, reflecting a YoY increase of 7%. ABC’s net profit in 2Q2013 rose by 10% YoY to $56mn. The group’s total assets stood at $25.3bn at the end of 2Q2013, up 3% YTD. Deposits stood at $17.9bn at the end of June 30, rising from $17.2bn at the end of 2012. (Bahrain Bourse)  Bahrain sets early price guidance for 10-yr benchmark- sized bond – Bahrain is planning to issue a benchmark-sized US dollar bond, carrying a 10-year maturity. The benchmark- size is typically at least $500mn for investment-grade credits. The initial price thoughts for the deal, which is open to US institutional investors, were given in the 6.5% area. BNP Paribas, Citigroup, Gulf International Bank and JP Morgan Chase & Company are the book-runners for the deal. (Reuters)  GIH completes its restructuring agreements with its financiers – The Global Investment House (GIH) has concluded the implementation of various restructuring agreements entered with all of its financiers. The restructuring transaction has resulted in a separation of GIH’s core fee businesses from its non-core principal investments and a transfer of its entire debt obligations, resulting in GIH becoming a debt-free company. The majority of non-core principal investments and real estate assets have been transferred to an asset special purpose entity (asset SPE) named NAC Ventures, which has assumed $1.28bn of the company's debt obligations and all the accrued interest/profit. GIH has issued around 1.2bn new shares at par value of KD0.1 per share to another asset SPE named NCH Ventures (NCH), giving it a 70% stake in GIH. NAC and NCH are neither owned nor controlled by the company or its existing shareholders. The financial impact of this transaction will be reflected in 3Q2013. (Bahrain Bourse)
  6. 6. Contacts Ahmed M. Shehada Keith Whitney Saugata Sarkar Sahbi Kasraoui Head of Trading Head of Sales Head of Research Manager - HNWI Tel: (+974) 4476 6535 Tel: (+974) 4476 6533 Tel: (+974) 4476 6534 Tel: (+974) 4476 6544 ahmed.shehada@qnbfs.com.qa keith.whitney@qnbfs.com.qa saugata.sarkar@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 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 Jan-10 Aug-10 Mar-11 Oct-11 May-12 Dec-12 Jul-13 QE Index S&P Pan Arab S&PGCC (0.3%) (0.2%) 0.2% 0.0% 0.8% (0.6%) (1.8%)(2.2%) (1.5%) (0.8%) (0.1%) 0.6% 1.3% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,322.25 (1.7) 2.0 (21.1) DJ Industrial 15,542.24 (0.2) (0.0) 18.6 Silver/Ounce 20.18 (1.5) 3.4 (33.5) S&P 500 1,685.94 (0.4) (0.4) 18.2 Crude Oil (Brent)/Barrel 109.36 0.0 0.0 (3.1) NASDAQ 100 3,579.60 0.0 (0.2) 18.5 Natural Gas (Henry Hub)/MMBtu 3.70 0.0 (0.0) 6.4 STOXX 600 301.10 0.6 0.4 7.7 LPG Propane (Arab Gulf)/Ton 810.00 0.0 0.0 (16.4) DAX 8,379.11 0.8 0.6 10.1 LPG Butane (Arab Gulf)/Ton 807.00 0.0 0.0 (16.7) FTSE 100 6,620.43 0.3 (0.2) 12.3 Euro 1.32 (0.2) 0.4 0.1 CAC 40 3,962.75 1.0 1.0 8.8 Yen 100.27 0.8 (0.4) 15.6 Nikkei 14,731.28 (0.3) 1.0 41.7 GBP 1.53 (0.3) 0.3 (5.8) MSCI EM 966.50 (0.3) 1.7 (8.4) CHF 1.07 (0.3) 0.4 (2.3) SHANGHAI SE Composite 2,033.33 (0.5) 2.0 (10.4) AUD 0.92 (1.4) (0.1) (11.8) HANG SENG 21,968.93 0.2 2.8 (3.0) USD Index 82.29 0.4 (0.4) 3.2 BSE SENSEX 20,090.68 (1.0) (0.3) 3.4 RUB 32.45 0.4 0.3 6.3 Bovespa 48,374.23 (0.9) 2.1 (20.6) BRL 0.45 (1.4) 0.0 (8.7) RTS 1,369.36 (0.8) (0.9) (10.3) 138.7 122.5 111.5