Page 1 of 6
QE Intra-Day Movement
Qatar Commentary
The QE index rose 0.3% to close at 13,906.6. Gains were led by the Tele...
Page 2 of 6
Qatar Market Commentary
 The QE index rose 0.3% to close at 13,906.6. The Telecoms and
Banking & Financial Se...
Page 3 of 6
storage and distribution infrastructure to the facility. The
company stated that these facilities and logistic...
Page 4 of 6
year. The figures indicate that 70% of Haj pilgrims come from
abroad, contributing to a whopping 89% of revenu...
Page 5 of 6
Jonathan Macdonald, said banks are cutting prices to retain
clients and seeking to compensate by generating mo...
Contacts
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian
Head of Research Senior Research Analyst Senior Research Ana...
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26 August Daily market report

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26 August Daily market report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index rose 0.3% to close at 13,906.6. Gains were led by the Telecoms and Banking & Financial Services indices, gaining 1.8% and 0.5%, respectively. Top gainers were Islamic Holding Group and Dlala Brokerage & Inv. Holding Co., rising 3.5% and 3.2%, respectively. Among the top losers, Doha Insurance Co. fell 3.1%, while Qatar National Cement Co. declined 2.4%. GCC Commentary Saudi Arabia: The TASI index rose 0.9% to close at 10,939.8. Gains were led by the Multi-Inv. and Ind. Inv. indices, rising 1.9% and 1.4%, respectively. Sipchem gained 6.0%, while Aseer Trading, Tourism & Manu. was up 5.2%. Dubai: The DFM index gained 0.1% to close at 4,974.5. The Telecom. index gained 1.4%, while the Real Estate & Const. index rose 0.7%. National General Ins. Co. rose 11.1%, while Commercial Bank of Dubai was up 3.4%. Abu Dhabi: The ADX benchmark index rose 0.7% to close at 5,115.5. The Energy index gained 3.2%, while Banking index was up 1.0%. National Bank of Umm Al-Qaiwain rose 9.5%, while National Takaful Co. was up 9.3%. Kuwait: The KSE index gained 0.3% to close at 7,408.6. The Healthcare index rose 1.2%, while Parallel Market index was up 0.9%. Ajwan Gulf Real Estate Co. gained 9.8%, while Al-Arabiy Real Estate Co. was up 9.3%. Oman: The MSM index fell 0.3% to close at 7,322.1. Losses were led by the Financial and Services indices declining 0.4% & 0.2%, respectively. Al Jazeera Steel Products declined 2.5%, while Oman Fisheries was down 2.2%. Bahrain: The BHB index gained 0.1% to close at 1,475.7. The Commercial Banking index rose 0.3%, while the other indices ended in red and flat. Bahrain Car Parks Co. gained 4.7%, while Bahrain Islamic Bank was up 1.2%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Islamic Holding Group 96.70 3.5 418.5 110.2 Dlala Brokerage & Inv. Holding Co. 61.40 3.2 67.9 177.8 Ooredoo 126.50 2.7 71.4 (7.8) Zad Holding Co. 92.30 2.3 0.1 32.8 Mazaya Qatar Real Estate Dev. 25.25 1.7 4,144.0 125.8 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 25.25 1.7 4,144.0 125.8 Masraf Al Rayan 57.70 0.3 929.4 84.3 Ezdan Holding Group 19.70 0.1 902.7 15.9 United Development Co. 29.70 (1.2) 861.6 37.9 Vodafone Qatar 21.50 (0.5) 785.4 100.7 Market Indicators 26 Aug 14 25 Aug 14 %Chg. Value Traded (QR mn) 734.5 960.5 (23.5) Exch. Market Cap. (QR mn) 738,333.9 735,267.1 0.4 Volume (mn) 13.7 16.8 (18.4) Number of Transactions 7,165 8,487 (15.6) Companies Traded 41 43 (4.7) Market Breadth 18:18 26:13 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 20,741.50 0.3 0.9 39.9 N/A All Share Index 3,512.59 0.3 1.0 35.7 17.2 Banks 3,419.20 0.5 1.6 39.9 16.7 Industrials 4,631.83 0.2 1.2 32.3 18.8 Transportation 2,309.17 (0.2) (1.1) 24.3 14.8 Real Estate 2,939.22 (0.7) (0.9) 50.5 15.7 Insurance 4,078.43 (0.7) 1.0 74.6 12.9 Telecoms 1,612.18 1.8 2.0 10.9 22.8 Consumer 7,558.43 (0.1) (0.7) 27.1 28.3 Al Rayan Islamic Index 4,812.09 (0.0) 0.5 58.5 20.7 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% NBQ Abu Dhabi 3.45 9.5 10.5 4.5 Abu Dhabi Nat. Energy Abu Dhabi 1.24 6.9 4,112.5 (15.6) Saudi Int. Petrochem. Saudi Arabia 41.06 6.0 1,555.5 29.1 Aseer Saudi Arabia 34.84 5.2 3,742.0 49.8 Abu Dhabi Islamic Bank Abu Dhabi 6.98 5.1 4,563.1 52.7 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Com. Bank Of Kuwait Kuwait 0.70 (2.8) 0.1 5.0 Qatar Nat. Cement Co. Qatar 144.00 (2.4) 13.9 21.0 Kuwait Cement Co. Kuwait 0.43 (2.3) 0.1 16.4 Saudi British Bank Saudi Arabia 63.92 (2.1) 343.8 45.3 Combined Group Cont. Kuwait 0.96 (2.0) 0.0 (21.3) 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% Doha Insurance Co. 31.00 (3.1) 78.1 24.0 Qatar National Cement Co. 144.00 (2.4) 13.9 21.0 Medicare Group 133.50 (1.8) 16.5 154.3 Gulf International Services 119.50 (1.6) 193.4 144.9 Qatar Islamic Insurance Co. 89.40 (1.3) 59.7 54.4 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% QNB Group 199.30 1.0 125,614.0 15.9 Mazaya Qatar Real Estate Dev. 25.25 1.7 105,167.5 125.8 Industries Qatar 193.00 1.0 88,861.9 14.3 Masraf Al Rayan 57.70 0.3 53,533.6 84.3 Qatar International Islamic Bank 92.00 0.0 53,320.3 49.1 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* 13,906.56 0.3 0.9 8.0 34.0 201.72 202,746.5 17.4 2.3 3.6 Dubai 4,974.51 0.1 1.4 2.9 47.6 252.50 95,553.2 20.7 1.8 2.0 Abu Dhabi 5,115.50 0.7 1.3 1.2 19.2 51.89 140,623.6 14.4 1.8 3.2 Saudi Arabia 10,939.84 0.9 1.9 7.1 28.2 2,967.54 592,726.7 21.0 2.7 2.6 Kuwait 7,408.56 0.3 0.8 3.9 (1.9) 82.70 113,361.7 18.0 1.2 3.7 Oman 7,322.12 (0.3) (0.5) 1.7 7.1 6.97 26,997.4 11.0 1.7 3.8 Bahrain 1,475.67 0.1 (0.5) 0.3 18.2 1.29 54,355.9 11.3 1.0 4.6 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 13,800 13,850 13,900 13,950 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 0.3% to close at 13,906.6. The Telecoms and Banking & Financial Services indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.  Islamic Holding Group and Dlala Brokerage & Inv. Holding Co. were the top gainers, rising 3.5% and 3.2%, respectively. Among the top losers, Doha Insurance Co. fell 3.1%, while Qatar National Cement Co. declined 2.4%.  Volume of shares traded on Tuesday fell by 18.4% to 13.7mn from 16.8mn on Monday. Further, as compared to the 30-day moving average of 17.6mn, volume for the day was 22.2% lower. Mazaya Qatar Real Estate Dev. and Masraf Al Rayan were the most active stocks, contributing 30.3% and 6.8% 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 Doha Insurance (DOHI) A.M. Best Qatar FSR/ICR – A-/a- – Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC – Local Currency, ICR–Issuer Credit Rating) Earnings Releases Company Market Currency Revenue (mn)2Q2014 % Change YoY Operating Profit (mn) 2Q2014 % Change YoY Net Profit (mn) 2Q2014 % Change YoY Sohar Poultry Co. (SPC)* Oman OMR 8.1 7.9% – – 0.6 77.6% Source: Company data, DFM, ADX, MSM (* FY2014 results) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/26 US FHFA FHFA House Price Index MoM June 0.40% 0.30% 0.20% 08/26 US FHFA House Price Purchase Index QoQ 2Q2014 0.81% 3.15% 1.31% 08/26 US S&P/Case-Shiller S&P/CS 20 City MoM SA June -0.20% 0.00% -0.26% 08/26 US S&P/Case-Shiller S&P/CS Composite-20 YoY June 8.10% 8.30% 9.37% 08/26 US S&P/Case-Shiller S&P/CaseShiller Home Price Index June 172.33 172.84 170.68 08/26 US Conference Board Consumer Confidence Index August 92.4 89.0 90.3 08/26 US Richmond Fed Richmond Fed Manufact. Index August 12.0 6.0 7.0 08/26 UK BBA BBA Loans for House Purchase July 42,792 44,065 43,180 08/26 Japan Bank of Japan PPI Services YoY July 3.70% 3.70% 3.70% 08/26 Japan Shoko Chukin Bank Small Business Confidence August 47.7 49.5 48.7 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  MDPS: Qatar trade surplus touches QR33.2bn in July – Qatar’s trade balance showed a surplus of QR33.2bn, an increase of QR0.3bn (0.8%) in July 2014 on a YoY basis. According to preliminary figures released by the Ministry of Development Planning & Statistics (MDPS), the total exports of goods (including exports of domestic origin and re-exports) amounted to QR41.5bn in July, showing an increase of 0.6% YoY as compared to July 2013. On the other hand, the imports of goods in July amounted to QR8.3bn, a decrease of 0.3% YoY over the value recorded in July 2013. The YoY rise in total exports was mainly due to higher exports of Petroleum gases and other gaseous hydrocarbons (LNG, condensates, propane, butane, etc.) which reached QR26.0bn in July, reflecting an increase of 1.2% YoY, and Petroleum oils & oils from bituminous minerals (not crude) reached QR2.5bn (4.3% YoY). However, the increase was partially offset by the drop in exports of Petroleum oils & oils from bituminous minerals (crude), which reached QR7.0bn (-13.8% YoY). The major destinations for Qatar’s exports in July 2014 were Japan with QR10.9bn, a share of 26.2% of the total exports, South Korea with QR6.6bn (15.9% share), and India with QR5.1bn (12.3% share). Motor cars & other passenger vehicles were at the top of the imported group of commodities, with QR 0.7bn in July 2014, showing an increase of 2.1% YoY. (Peninsula Qatar)  UDCD renews $210mn credit facility agreement with banks – United Development Company (UDCD) announced the renewal of a $210mn credit facility agreement with a group of banks through its agent the Commercial Bank of Qatar (CBQK), and authorizing its Managing Director to implement the necessary procedure for that purpose. The agreement has been renewed for another three years. (Bloomberg)  GWCS launches phase 4 operations at Logistics Village – Gulf Warehousing Company (GWCS) announced the launch of operations at its Phase 4 expansion in the Logistics Village in Qatar. This expansion has added 81 thousand square meters of Overall Activity Buy %* Sell %* Net (QR) Qatari 56.24% 69.74% (99,183,872.14) Non-Qatari 43.76% 30.26% 99,183,872.14
  3. 3. Page 3 of 6 storage and distribution infrastructure to the facility. The company stated that these facilities and logistics structures is available to the public from August 26, 2014. It must be noted that the majority of the available spaces at the Phase 4 expansion has been reserved by GWCS’ current client base. (QE)  AM Best assigns rating to DOHI – Doha Insurance Company’s (DOHI) Chairman HE Sheikh Nawaf Bin Nasser Bin Khaled Al-Thani announced that AM Best Rating Services Limited has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to DOHI. The outlook assigned to both ratings is stable. He added that this new rating achieved reflects DOHI’s robust risk-adjusted capitalization, good operating performance and strong position within the Qatari insurance market. He noted that Standard & Poor’s (S&P) Rating Services announced recently that it had raised DOHI’s rating to A- with stable outlook. (QE)  QA to double flights to Madinah – Qatar Airways (QA) is planning to launch an additional daily flight to Madinah in Saudi Arabia from October 26, 2014. The additional flight will double the number of QA’s weekly flights on the Doha-Madinah route from seven to 14 weekly services. The increasing passenger demand prompted QA to increase flights to Madinah from five per week to daily flights in April 2014 to fulfill the growing passenger demand. The introduction of an extra daily service from October 2014 reiterates the consumer and business demand on this route. (Bloomberg) International  US consumer confidence rises to 7-year high; surge in durables orders affirms factory pickup – Consumer confidence in the US unexpectedly climbed in August 2014 to the highest level in almost seven years, reinforcing signs of a strengthening outlook for 2Q2014. The Conference Board’s sentiment gauge rose to 92.4, the highest since October 2007, from a revised 90.3 a month earlier. The median forecast in a Bloomberg survey called for a decline to 89. Americans are finding more reasons to be upbeat about their prospects for the rest of the year as recent reports pointed toward a pickup in the job market and stock prices advanced to record highs. Stronger sentiment will also help consumer spending, which makes up almost 70% of the US economy. Meanwhile, a surge in demand for airplanes helped push orders for durable goods up at a record pace in July, boosting prospects for a sustained pickup in manufacturing. According to the Commerce Department’s data, bookings for durable goods soared 22.6% in August after a revised 2.7% gain in June, which was bigger than previously estimated. (Bloomberg)  Russia at odds over fiscal stimulus as consumers cut spending – The Russian government cut its forecasts for economic growth and consumer spending, leaving the ministries of finance and economy at loggerheads over utilizing fiscal stimulus to counter risks from the Ukraine crisis. The Economy Ministry said GDP will rise 1% in 2015, compared with an earlier estimate of 2%. This year’s projection was kept at 0.5%, the slowest since a contraction in 2009. According to the ministry, consumer spending, which accounts for half of GDP, is also set to slow this year and the next. The $2tn Russian economy is caught in the crosscurrents of elevated inflation and growth near a standstill as the crisis over Ukraine weakens the ruble, sparks capital flight and chokes access to investment. In retaliation against sanctions imposed by the US and the European Union, President Vladimir Putin banned some food imports this month. (Bloomberg)  BoJ to stay bullish on prices even as it cuts Japan GDP estimate – The Bank of Japan (BoJ) is likely to keep its bullish inflation outlook even as it cuts its economic growth forecast for this fiscal year, suggesting that the bank will not ease its monetary policy further until the end of 2014. However, the outlook for exports remains a concern, which is a soft spot in the economy that has failed to pick up despite the boost from a weak Yen that gives Japanese goods a competitive advantage overseas. The Japanese government kept its economic assessment unchanged at its monthly report on August 26, saying the world's third largest economy is expected to recover moderately as the effect of a sales tax hike in April eases gradually. Japan's economy contracted a hefty 6.8% in the second quarter due to the tax-hike, prompting many private- sector analysts to downgrade their growth forecasts for the year ending in March 2015 to around 0.5%, just half the 1.0% expansion estimated by the BoJ in July. (Reuters)  Reuters: Foreign investment pattern changes in China as challenges grow – China's foreign investment mix is changing, with foreign portfolio investors buying more stocks in contrast to its foreign direct investment (FDI) falling to a two-year low, rising business costs and anti-monopoly probes on foreign firms. FDI in China fell in the first seven months of 2014 compared with a year earlier, while the offshore funds flowing into mainland stocks hit the highest in more than two years last month. A plateau in foreign investment could be a challenge for China, as it offers manufacturers an alternative source of capital to the banking system. Any shortfall is unlikely to be made up by portfolio flows, which favor more liquid stocks and are limited by quotas. (Reuters)  China’s AgBank braces for more bad loans amid slowdown – The Agricultural Bank of China Ltd., (AgBank) has set aside more money for future bad loans amid the nation’s economic slowdown. According to a Hong Kong exchange filing, the bank boosted provisions for potential bad credit by 56% to 15.6bn Yuan in the three months ended June 30, 2014 from a year earlier. Net income rose 12%, the weakest pace in five quarters, to 50.6bn Yuan. The state-owned lender established in 1951 to finance rural cooperatives is hampered by bad loans rising faster in the countryside than in urban areas. In addition, the nation’s economy is projected to grow this year at the weakest pace since 1990, indicating further constraints on profit. The operating environment for Chinese banks is deteriorating amid an economic slowdown. Earlier, the Bank of China Ltd. Stated that it had more than doubled its bad-loan provisions from a year earlier. (Bloomberg) Regional  Alkhabeer Capital, USAA acquire office portfolio in US – Saudi-based Alkhabeer Capital, in association with its investment partner USAA Real Estate Company, has acquired Lake Pointe Center III and IV, which is a 170,147 square feet office portfolio, located in the Allison Pointe Office Park in Keystone, Indianapolis in the State of Indiana, US. The office portfolio consists of 2 four-storey buildings that are leased to a high quality tenant roster consisting of IT, medical, transportation and legal firms. The investment is the latest transaction of Alkhabeer US Real Estate Income Fund (private placement fund). (GulfBase.com)  MCCI: KSA expects SR32bn income from Haj – According to a study by Makkah Chamber of Commerce & Industry (MCCI), Haj revenues for Saudi Arabia is projected to reach almost SR32bn in 2014, a 3% increase from the SR31bn revenues in 2013. The study also forecasted that around 1.4mn foreign pilgrims and 600,700 domestic pilgrims would perform Haj this
  4. 4. Page 4 of 6 year. The figures indicate that 70% of Haj pilgrims come from abroad, contributing to a whopping 89% of revenues, or SR28bn. (Bloomberg)  NCB: Kingdom set to record another fiscal surplus – According to the Saudi Economic Review published by the National Commercial Bank (NCB), Saudi Arabia is set to record another fiscal surplus during 1H2014, given the elevated level of oil prices. The influx of revenues is reflected by the strong monetary status as M0 money supply increased by 9.2% YoY in June 2014, rising to SR324bn. Similarly, the currency outside banks picked up by 9.1% YoY in June 2014 as Ramadan started mid-way during the month. The main bulk of M0 residing in bank reserves rose by 7.6% YoY. Meanwhile, cash in vault grew by 20.1% YoY to bring the total bank reserves to SR172.5bn by the end of August 2014. Additionally, banks’ excess reserves ratio dropped to 38.5% as banks opted to utilize their assets given the healthy state of the credit market. SAMA’s treasury bills recorded an annual increase of 30.7% to contain inflationary risks due to excess liquidity in the market. The broadest measure of money supply (M3) has maintained a strong positive trajectory for the past few years as it posted a five-year CAGR of 10.5% by the end of June 2014. The risks of overheating are still benign and the pace is sustainable given the robust status of the overall economy. The main driver of M3 was demand deposits which gained 14.1% YoY in June 2014. (GulfBase.com)  Al Khodari Sons wins SR144mn municipality building contract – Abdullah A. M. Al Khodari Sons Company (Al Khodari Sons) has signed a contract with the Ministry of Municipal & Rural Affairs (Municipality of Taif) for the construction of municipality building in Taif. Valued at SR144mn, the construction needs to be completed in 605 days from the date of site handing over on August 26, 2014. (Tadawul)  SRO signs contract with CRCC to renew first phase of main freight route – The President of Saudi Railways Organization (SRO), Mohamed Khalid Al-Suwaiket, has signed a contract for SR122.9mn with the branch of China Railway Construction Corporation Limited (CRCC) in Saudi Arabia to renew 78.4 kilometer first phase of the main freight route No (2) between Dammam and Riyadh. The 21- month contract aims to enhance SRO's operational capacity to meet the growing private sector demand for transportation by train. The technical specifications have been taken into account in this project with an axle load of 32.5 tons. (GulfBase.com)  EIBank appoints MD of Asset Management – Emirates Investment Bank (EIBank) has appointed Nadi Bargouti as the Managing Director (MD) for Asset Management. Bargouti will lead the bank’s asset management division and be responsible for advising the bank’s clients on their investment strategies. (GulfBase.com)  StanChart seeks to sell part of UAE business – Leading global bank Standard Chartered (StanChart) is planning to sell a part of its business in the UAE after it agreed to close some accounts there in an anti-money laundering settlement with US authorities. Under the settlement announced last week, the bank agreed to pay a fine of $300mn, end its high-risk relationships with SMEs in the UAE, and suspend processing of dollar- denominated payments for some clients at its Hong Kong unit. Meanwhile, the UAE central bank stated that between 1,400 and 8,000 StanChart accounts in the country are expected to be affected by the US settlement. The bank would also be liable for legal action by account owners because of the material damage caused to them. The terms of the settlement give StanChart 90 days to exit SME accounts in the UAE. (Reuters)  DSC: Construction material prices mixed for Dubai in 2Q2014 – According to a report by the Dubai Statistics Centre (DSC), rates of individual construction materials in Dubai varied in 2Q2014 as compared to 2Q2013, although the overall prices remained steady. The report showed that prices of gypsum fell by 2.14% YoY, but grew by 3.15% as compared to 1Q2014. Meanwhile, the prices of ordinary Portland cement dropped 2.96% YoY, while those of white cement and lime were up by 0.21% and 1.35%, respectively. However, salt-resistant cement prices were stable compared to 2Q2013. (GulfBase.com)  MAF unveils mall revamp plan exceeding AED1bn – Majid Al Futtaim (MAF) has begun work on the second phase of Mall of the Emirates’ strategic redevelopment that aims to add 25,000 square meters in gross leasable area. The multi-stage redevelopment, ‘Evolution 2015’, will see the introduction of Vox Cinemas, retail anchor stores as well as a diversity of dining choices. With a phased completion by mid-2015, Evolution 2015 will provide a platform for brands making their debut in the Middle East at the Mall of the Emirates alongside the expansion of existing luxury shopping brands, at an overall estimated investment of more than AED1bn. (GulfBase.com)  Uyoun Al-Raed advised on SR1.97bn Murabaha financing – The law office of Salman M. Al-Sudairi, in association with Latham & Watkins, represented Uyoun Al-Raed Commercial Company on a SR1.97bn Murabaha financing. The company intends to use the proceeds to fund the construction of the largest mall in Riyadh, the Mall of Arabia. (GulfBase.com)  Creditors agree to extend debt repayment by Dubai World – Dubai World has reached a deal with its main creditors to extend the repayment of $10.3bn of debt. The group, which owns the world’s third-largest ports operator, agreed with its creditor committee to repay in 2022, four years later than previously agreed on. Dubai World also agreed to early repay $4.4bn of loans that are due September 2015, if creditors approve the deal. The company signed the deal with about 80 creditors for restructuring $14.7bn worth of debt in March 2011. HSBC Holdings, Standard Chartered, Bank of Tokyo Mitsubishi, Emirates NBD and Abu Dhabi Commercial Bank are part of the creditor committee. (Bloomberg)  UAE SCA approves Watania’s 60.53% stake sale – The UAE Securities and Commodities Authority (SCA) has approved National Takaful Company’s (Watania) sale of 90.8mn shares or 60.53% of the firm’s paid-up capital to MB UAE Investments and an affiliate of MB. Under the transaction, MB would acquire 51% while Al Madina Insurance Company would take 9.53%. The expiry date for the purchase period is February 24, 2015. (GulfBase.com, ADX)  SCAD: Abu Dhabi hotel prices drop 14.2% during June 2014 – According to a report released by Statistics Centre Abu Dhabi (SCAD), Abu Dhabi’s hotel room prices dropped by 14.2% in June 2014 as compared to May 2014. The report revealed a YoY decrease in room rates by 5.1% in June 2014. Additionally, the rates were 7.2% lower during the first five months of 2014 as compared to the same period last year. Meanwhile, the rates of hotel apartments fell 3.6% in June 2014 as compared to May 2014. Hotel apartments’ rates also decreased 0.8% YoY during June 2014. However, the rates of hotel apartments have increased by 0.5% during the first five months of 2014 as compared to the same period last year. (GulfBase.com)  NBAD sees UAE banks lining up to offer cash – National Bank of Abu Dhabi (NBAD) said loan costs in the UAE, which have been falling for at least a year, may be set for further declines as banks compete for deals amid an increase in customer deposits. NBAD’s Head of Syndicated Finance,
  5. 5. Page 5 of 6 Jonathan Macdonald, said banks are cutting prices to retain clients and seeking to compensate by generating more fees from businesses such as derivatives and foreign exchange. He said that loan rates for local borrowers are also higher than for similarly-rated European companies. (GulfBase.com)  Kuwait replaces head of market regulator after political backlash – Kuwait is replacing the head of its securities regulator after a stormy four years during which he drew criticism from some investors for his attempts to clean up the bourse as well as the stock market's weak performance. Saleh al-Falah, chairman of the Capital Markets Authority, will be replaced next month by former finance minister Nayef al-Hajraf. (Reuters)  Kuwait Energy keen to invest more in Iraq – According to Kuwait Energy’s CEO, Sara Akbar, the company is keen to invest more in Iraq because of its potential despite the recent flare-up of violence. Several oil companies in Iraq's Kurdistan region withdrew staff earlier in August after Islamic State militants approached Arbil, the region's capital, threatening its vast oil infrastructure. Akbar said she was not deterred by the violence, arguing that it was temporary and could not overshadow the country's vast potential for relatively easy oil. (Reuters)  SEC, VIA International sign MoU – Engineering consultancy services provider, Shumookh Engineering Consulting (SEC) has signed a MoU with international engineering consultancy group, VIA International for mutual cooperation between their operations in Oman. This new cooperation agreement highlights the remarkable potential within the business and in the Omani market in Shumookh’s field of speciality. VIA on the other hand has expressed through this cooperation a high interest in further investing and growing their operations in the region, led through their offices in Oman. (GulfBase.com)  AFAI BoD recommends 5% cash dividend – Al Fajar Al Alamia Company’s (AFAI) board of directors recommended a cash dividend of 5% on the paid-up share capital of the company, equivalent to 5 baiza for each share of face value of 100 baiza, for the year ended June 30, 2014. The proposed cash dividend is subject to approval of the company’s shareholders at the ensuing ordinary annual general meeting. (MSM)  Al Batinah appoints new CFO – Al Batinah Power Company’s board of directors has appointed Mr. So Murakami as the new CFO of the company effective September 1, 2014, following the resignation of Mr. Mitsuo Nakamoto as CFO effective August 31, 2014. (MSM)
  6. 6. Contacts Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa 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 26 August 2014) Source: Bloomberg 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 200.0 210.0 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 QE Index S&P Pan Arab S&P GCC 0.9% 0.3% 0.3% 0.1% (0.3%) 0.7% 0.1% (0.4%) 0.0% 0.4% 0.8% 1.2% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,281.24 0.3 0.1 6.3 DJ Industrial 17,106.70 0.2 0.6 3.2 Silver/Ounce 19.37 0.0 (0.3) (0.5) S&P 500 2,000.02 0.1 0.6 8.2 Crude Oil (Brent)/Barrel (FM Future) 102.50 (0.1) 0.2 (7.5) NASDAQ 100 4,570.64 0.3 0.7 9.4 Natural Gas (Henry Hub)/MMBtu 3.94 0.5 2.2 (9.2) STOXX 600 342.96 0.7 1.8 4.5 LPG Propane (Arab Gulf)/Ton* 101.50 0.0 0.0 (19.6) DAX 9,588.15 0.8 2.7 0.4 LPG Butane (Arab Gulf)/Ton* 117.00 0.0 (0.6) (14.3) FTSE 100 6,822.76 0.7 0.7 1.1 Euro 1.32 (0.2) (0.6) (4.2) CAC 40 4,393.41 1.2 3.3 2.3 Yen 104.06 0.0 0.1 (1.2) Nikkei 15,521.22 (0.6) (0.1) (4.7) GBP 1.65 (0.2) (0.2) (0.1) MSCI EM 1,087.77 0.2 0.4 8.5 CHF 1.09 (0.2) (0.4) (2.7) SHANGHAI SE Composite 2,207.11 (1.0) (1.5) 4.3 AUD 0.93 0.1 (0.1) 4.4 HANG SENG 25,074.50 (0.4) (0.2) 7.6 USD Index 82.65 0.1 0.4 3.3 BSE SENSEX 26,442.81 0.0 0.1 24.9 RUB 36.18 0.0 0.2 10.1 Bovespa 59,821.45 0.1 2.4 16.1 BRL 0.44 1.1 0.7 4.5 RTS 1,259.47 (0.6) (0.0) (12.7) 199.8 167.2 149.9

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