26 August Daily Market Report

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26 August Daily Market Report

  1. 1. Page 1 of 4 QE Intra-Day Movement Qatar Commentary The QE index declined 1.8% to close at 9,898.5. Losses were led by the Transportation and Banking & Financial Services indices, declining 3.3% and 1.7% respectively. Top losers were Qatar General Ins. & Rein. Co. and Qatari Investors Group, falling 4.7% and 4.4% respectively. Among the top gainers, Doha Insurance Co. rose 3.2%, while Islamic Holding Group gained 0.5%. GCC Commentary Saudi Arabia: The TASI index declined 0.9% to close at 8,054.7. Losses were led by the Trans. and Hotel & Tourism indices fell 1.9% and 1.5% respectively. Aljazira Takaful Taawuni Co. declined 9.8%, while WAFA Insurance fell 4.8%. Dubai: The DFM index fell 0.2% to close at 2,741.9. The Insurance index declined 1.2%, while the Transportation index was down 0.8%. Gulf General Investments Co. fell 7.8%, while Gulf Navigation was down 4.8%. Abu Dhabi: The ADX benchmark index declined 0.7% to close at 3,933.2. The Real Estate index fell 1.9%, while the Telecommunication index was down 0.8%. Union Cement Co. declined 6.7%, while RAKBANK was down 4.7%. Kuwait: The KSE index fell 0.9% to close at 8,000.3. The Technology index declined 1.9%, while the Financial Ser. index was down 1.4%. Kuwait & Middle East Fin. Inv. Co. fell 6.3%, while Kuwait United Poultry Co. was down 6.2%. Oman: The MSM index gained marginally to close at 6,918.6. The Industrial index rose 0.3%. Construction Materials Ind. gained 5.1%, while Al Batinah Dev. Inv. was up 3.7%. Bahrain: The BHB index gained marginally to close at 1,201.1. The Commercial Banking index rose 0.1%. Khaleeji Commercial Bank gained 4.0%, while Al Salam Bank was up 1.0%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Doha Insurance Co. 27.05 3.2 274.2 10.2 Islamic Holding Group 40.70 0.5 1.9 7.1 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Masraf Al Rayan 29.40 (2.0) 1,140.8 18.6 Qatar Gas Transport Co. 19.51 (4.1) 983.4 27.9 United Development Co. 22.41 (1.5) 770.0 25.9 Vodafone Qatar 9.19 (2.0) 697.7 10.1 Qatar Navigation 80.10 (2.8) 619.8 26.9 Market Indicators 26 Aug 13 25 Aug 13 %Chg. Value Traded (QR mn) 460.7 185.4 148.5 Exch. Market Cap. (QR mn) 542,005.6 550,548.2 (1.6) Volume (mn) 9.2 4.2 117.2 Number of Transactions 4,057 2,512 61.5 Companies Traded 40 41 (2.4) Market Breadth 2:37 24:16 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 14,142.74 (1.8) (2.1) 25.0 N/A All Share Index 2,492.83 (1.7) (1.8) 23.7 13.2 Banks 2,410.16 (1.7) (2.2) 23.6 12.8 Industrials 3,179.18 (1.6) (1.4) 21.0 11.7 Transportation 1,797.21 (3.3) (4.4) 34.1 12.3 Real Estate 1,802.95 (1.3) (1.3) 11.9 13.6 Insurance 2,259.83 (1.3) (0.8) 15.1 9.4 Telecoms 1,485.36 (1.3) (1.3) 39.5 15.6 Consumer 5,983.39 (0.9) (0.5) 28.1 25.1 Al Rayan Islamic Index 2,841.24 (1.8) (2.1) 14.2 14.7 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% IFA Hotels & Resorts Kuwait 0.61 8.9 0.1 38.6 Drake & Scull Int. Dubai 1.23 2.5 205,312.9 74.7 Nat. Industries Group Kuwait 0.27 1.9 1,462.8 23.8 Abu Dhabi Com. Bank Abu Dhabi 5.29 1.7 895.8 75.7 City Cement Co. Saudi Arabia 27.10 1.5 1,278.5 57.1 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Qatar Gen. Ins. & Rein. Qatar 50.90 (4.7) 0.4 10.7 Qatari Investors Group Qatar 29.50 (4.4) 279.9 28.3 Qatar Gas Trans. Co Qatar 19.51 (4.1) 983.4 27.9 Dar Al Arkan Real Est. Saudi Arabia 10.35 (3.3) 27,256.8 25.5 National Shipping Co. Saudi Arabia 21.35 (3.2) 1,458.9 11.5 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% Qatar General Ins. & Rein. Co. 50.90 (4.7) 0.4 10.7 Qatari Investors Group 29.50 (4.4) 279.9 28.3 Qatar Gas Transport Co. 19.51 (4.1) 983.4 27.9 Medicare Group 49.40 (3.7) 200.5 38.4 Qatar Navigation 80.10 (2.8) 619.8 26.9 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Industries Qatar 158.90 (1.5) 76,181.8 12.7 QNB Group 173.40 (1.6) 66,511.2 32.5 Qatar Navigation 80.10 (2.8) 50,471.5 26.9 Masraf Al Rayan 29.40 (2.0) 33,715.3 18.6 Ooredoo 144.00 (1.2) 26,719.2 38.5 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* 9,898.54 (1.8) (2.1) 2.0 18.4 126.52 148,834.7 12.4 1.7 4.7 Dubai 2,741.89 (0.2) 1.5 5.9 69.0 401.87 67,127.2 15.9 1.1 2.9 Abu Dhabi 3,933.20 (0.7) (0.4) 2.2 49.5 66.87 113,016.7 11.2 1.4 4.6 Saudi Arabia 8,054.65 (0.9) (1.7) 1.8 18.4 1,602.31 425,404.5 16.8 2.1 3.6 Kuwait 8,000.27 (0.9) (1.3) (0.9) 34.8 74.60 110,259.9 19.7 1.3 3.6 Oman 6,918.55 0.0 0.3 4.1 20.1 31.02 23,984.9 11.4 1.7 4.0 Bahrain 1,201.10 0.0 (0.2) 0.5 12.7 0.31 21,956.6 8.4 0.9 4.0 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 9,850 9,900 9,950 10,000 10,050 10,100 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 4 Qatar Market Commentary  The QE index declined 1.8% to close at 9,898.5. The Transportation and Banking & Financial Services indices led the losses. The index declined on the back of selling pressure from non-Qatari shareholders despite buying support from Qatari shareholders.  Qatar General Ins. & Rein. Co. and Qatari Investors Group were the top losers, falling 4.7% and 4.4% respectively. Among the top gainers, Doha Insurance Co. rose 3.2%, while Islamic Holding Group gained 0.5%.  Volume of shares traded on Monday rose by 117.2% to 9.2mn from 4.2mn on Sunday. Further, as compared to the 30-day moving average of 6.6mn, volume for the day was 39.8% higher. Masraf Al Rayan and Qatar Gas Transport Co. were the most active stocks, contributing 12.4% and 10.7% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Ratings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Gulf Finance House (GFH) CI Bahrain LT rating/ ST rating – BB-/B – Positive – 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) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/26 US US Census Bureau Durable Goods Orders July -7.30% -4.00% 3.90% 08/26 US US Census Bureau Durables Ex Transportation July -0.60% 0.50% 0.10% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  Qatari government receives National Food Security Plan – The Qatar National Food Security Program (QNFSP) has submitted the country's first comprehensive "National Food Security Plan" to the higher authorities for approval. The plan envisages boosting Qatar's domestic production of agriculture from an estimated 8% of the country's total demand currently to 40-60% over the short to mid-term. The plan recommends Qatar to make a paradigm shift from its current farming practices, with an active support from the private sector. (Peninsula Qatar)  Japan’s PM to visit Qatar to boost trade, energy ties – Japanese Prime Minister Shinzo Abe is arriving in Qatar on August 27 as part of an official visit to the Gulf region. Cooperation between Qatar and Japan on trade and energy will top the agenda for the Japanese Premier. During his two-day visit, Shinzo Abe will hold high-level talks with the Emir HH Sheikh Tamim bin Hamad Al Thani and the Prime Minister & Interior Minister HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani. Qatar and Japan will also sign agreements that will enable cooperation between Qatar Petroleum and two Japanese organizations in the energy sector. (Peninsula Qatar)  Qatar-Japan trade currently stands at $37bn – Japanese Ambassador Kenjiro Monji said the trade volume between Qatar and Japan currently stands at $37bn. He added that some 28% of Qatar's total exports are to Japan. He also said that Japan doubled its LNG import from Qatar from around 8mn tons to 16mn tons, while Qatar's share of LNG exports increased from 12% to 18% in 2012. (Gulf-Times.com)  QA to begin flights to Ta'if, Saudi Arabia – Qatar Airways (QA) announced it will begin flights to Ta'if in the Mecca province of Saudi Arabia from October 2, 2013. This non-stop service from Doha will operate four times a week. (AME Info) International  Greece could return to debt market in late 2014 – The Greek Minister of Finance Yannis Stournaras said the country could return to debt markets to test the water in 2H2014, if it returns to growth in the first half of next year and manages a primary surplus. Stournaras said Greece did not need a second debt haircut, because it could reduce its debt burden by other means such as easier terms on its current international rescue packages. (Reuters)  Fitch: India's fiscal deficit target becomes challenging – Fitch ratings said with its revenues slowing, India is finding it increasingly challenging to meet its high fiscal deficit target during the current fiscal year ending March 2014. The rating agency is monitoring India's economic growth, inflation, public finances and the current account deficit, along with its funding. (Reuters) Regional  Saudi solar desalination plant to launch by year end – The first phase of the King Abdullah Initiative for Solar Water Desalination will become operational by the end of 2013. The plant would have a capacity of 30,000 cubic meters of drinking water a day to meet the needs of people living in Al-Khafji town, near the Kuwaiti border. Two solar energy plants have been constructed in Al-Khafji and in the solar village at Al-Oyainah located 35 kilometers from Riyadh. The second phase of the initiative, which aims to develop a solar desalination plant with a capacity of 300,000 cubic meters a day, will take three years to finish. The third phase will involve the construction of several Overall Activity Buy %* Sell %* Net (QR) Qatari 61.03% 59.69% 6,232,568.01 Non-Qatari 38.97% 40.32% (6,232,568.01)
  3. 3. Page 3 of 4 solar desalination plants across all parts of the Kingdom. (Bloomberg)  SABB plans to issue Islamic bond – The Saudi British Bank (SABB), an affiliate of HSBC Holdings, is planning to issue an Islamic bond by the end of 2013 to strengthen its capital base. HSBC will be advising SABB on the potential riyal-denominated sukuk issue to boost its Tier 2 capital position. (Reuters)  Etihad expands Australian operations with bigger fleet, more flights – Etihad Airways has introduced major changes to its Australian operations by adding new aircraft, new routes, additional flights and airport facilities. Etihad’s President & CEO James Hogan said that the airline is planning to introduce an Airbus A380 aircraft from Australia to Abu Dhabi, construct premium lounges at Sydney and Melbourne Airports in 2014, begin additional flights from Melbourne and Brisbane to Abu Dhabi and commence non-stop flights between Perth and Abu Dhabi. (Bloomberg)  UAE contractors to submit bids to construct $2.5bn airport in Iraq – UAE-based contractors have been invited to submit bids for constructing an airport worth $2.5bn in Iraq. This airport will be strategically located within a 40-kilometer vicinity of the provinces of Karbala, Najaf and Hilla. UAE-based Arabtec Holding is said to be among the companies seeking to bid for the contract. (GulfBase.com)  Emrill obtains contract to manage WTC Abu Dhabi – UAE- based facilities management provider Emrill Services has obtained a three-year contract from Abu Dhabi-based Aldar Properties to provide specialist services at the World Trade Center (WTC) Abu Dhabi. (GulfBase.com)  DAE in talks to merge assets with BBA Aviation – Dubai Aerospace Enterprise (DAE), the owner of US-based engine repair & maintenance business StandardAero, is in talks to merge parts of its business with British aircraft services firm, BBA Aviation. DAE gave no further details, stating the talks are at a preliminary stage now. (Reuters)  Dubai pay-TV firm OSN acquires Pehla Media & Entertainment – Dubai-based pay-TV network OSN has acquired Pehla Media & Entertainment, which offers around 40 channels in a variety of South Asian languages in the MENA region. (Reuters)  TAQA delays $12bn coal power project in Turkey – Abu Dhabi National Energy Company (TAQA) has reportedly delayed its plans to begin the construction of several coal power plants in Turkey until 2014. This project, worth up to $12bn, to build several power plants using the coal reserves of Turkey's Afsin-Elbistan region was initially planned to kick off by mid- 2013. (Reuters)  Bin Otaiba plans to invest AED800mn to build luxury resort – Abu Dhabi-based Bin Otaiba Group is planning to invest AED800mn to build a luxury hotel and beach villas on Saadiyat Island to cash in on the booming tourism in Abu Dhabi. The construction of the project is set to begin in 4Q2013. (GulfBase.com)  CBO issues CDs worth OMR574mn – The Central Bank of Oman (CBO) held a tender to allot certificates of deposit worth OMR574mn. The average interest rate of these certificates was 0.13%, while the maximum accepted interest rate was 0.13%. (GulfBase.com)  BP plans to build natural gas processing facility in Oman – The Government of Oman announced that British Petroleum Company (BP) is planning to build a natural gas processing facility in Oman. Oman’s Under Secretary for Oil & Gas Nasser bin Khamis al Jashmi said BP may be able to process as much as 1bn cubic feet of natural gas per day from its processing facility. BP aims to invest around $20bn in the Phase 1 of the development in Oman’s Block 61 natural gas area, which is expected to produce 6.7tn cubic feet of natural gas. The first delivery is expected to begin by 2017. (Bloomberg)  Galfar announces rights issue – Galfar Engineering & Contracting (Galfar) has announced its rights issue with 1.5 rights for every 10 shares held. This rights issue is priced at 280 baisas per share and will begin from September 11, 2013 and close on September 26, 2013. These shares will be traded on the Muscat Securities Market (MSM) between September 8 – September 22. The record date is on September 1. The Oman Arab Bank is the financial advisor & issue manager, while the National Bank of Oman and Oman Arab Bank are the collecting banks. (GulfBase.com)  CBB’s Sukuk Al-Salam securities oversubscribed by 287% – The Central Bank of Bahrain’s (CBB) monthly issue of BHD18mn Sukuk Al-Salam Islamic securities has been oversubscribed by 287%. The issue carries a maturity of 91 days, which will mature on November 27, 2013. The expected return is 0.72%, remaining unchanged from the previous issue. (GulfBase.com)  BBK renews partnership with American Express – The Bank of Bahrain & Kuwait (BBK) has renewed and expanded its partnership with American Express Middle East to cover American Express’s bill settlements through BBK's internet retail banking channel and branch network. (GulfBase.com)  Al Jarwani signs OMR8.5mn term loan deal with Bank Sohar – Al Jarwani Group has signed OMR8.5mn term loan agreement with Bank Sohar for developing the Sohar Mega Mall and associated facilities in Sohar. This mega mall is set to be ready by 2015. (GulfBase.com)  Venture Capital Bank posts 18-month profit of $21.1mn – Venture Capital Bank, a Bahrain-based regional Islamic investment bank, reported a net profit of $21.1mn from total revenues of $43.9mn for the 18 months ended June 30, 2013, compared with a loss of $58.7mn and total revenues of $6.7mn for the calendar year 2011. Net profit & total revenues for the quarter ended June 30, 2013 amounted to $1mn and $4.3mn respectively as compared to net loss of $4.5mn and total revenue of $2.8mn for the corresponding quarter ended 30 June 2011. (GulfBase.com)
  4. 4. 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 4 of 4 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg (*July 09, 2013) 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&PPan Arab S&P GCC (0.9%) (1.8%) (0.9%) 0.0% 0.0% (0.7%) (0.2%) (2.3%) (1.6%) (0.8%) (0.1%) 0.7% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,404.70 0.5 0.5 (16.2) DJ Industrial 14,946.46 (0.4) (0.4) 14.1 Silver/Ounce 24.32 1.0 1.0 (19.9) S&P 500 1,656.78 (0.4) (0.4) 16.2 Crude Oil (Brent)/Barrel (FM Future) 110.73 (0.3) (0.3) (0.3) NASDAQ 100 3,657.57 (0.0) (0.0) 21.1 Natural Gas (Henry Hub)/MMBtu 3.55 1.5 1.5 3.7 STOXX 600 304.48 (0.1) (0.1) 8.9 LPG Propane (Arab Gulf)/Ton* 810.00 0.0 0.0 (16.4) DAX 8,435.15 0.2 0.2 10.8 LPG Butane (Arab Gulf)/Ton* 807.00 0.0 0.0 (16.7) FTSE 100 6,492.10 0.0 0.0 10.1 Euro 1.34 (0.1) (0.1) 1.3 CAC 40 4,067.13 (0.1) (0.1) 11.7 Yen 98.51 (0.2) (0.2) 13.6 Nikkei 13,636.28 (0.2) (0.2) 31.2 GBP 1.56 0.0 0.0 (4.2) MSCI EM 932.78 0.0 0.0 (11.6) CHF 1.08 (0.1) (0.1) (0.8) SHANGHAI SE Composite 2,096.47 1.9 1.9 (7.6) AUD 0.90 0.0 0.0 (13.1) HANG SENG 22,005.32 0.6 0.6 (2.9) USD Index 81.41 0.1 0.1 2.1 BSE SENSEX 18,558.13 0.2 0.2 (4.5) RUB 33.04 0.1 0.1 8.2 Bovespa 51,429.48 (1.5) (1.5) (15.6) BRL 0.42 (1.4) (1.4) (13.9) RTS 1,324.48 (0.5) (0.5) (13.3) 142.2 126.6 114.7

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