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29 January Daily market report

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29 January Daily market report

  1. 1. QE Intra-Day Movement Market Indicators 11,260 11,240 11,220 11,200 Market Indices 11,180 11,160 9:30 29 Jan 14 450.6 594,185.3 7.9 4,224 41 23:13 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 0.7% to close at 11,243.4. Gains were led by the Insurance and Banking & Financial Services indices, gaining 1.9% and 0.9% respectively. Top gainers were Qatar Insurance Co. and Qatar General Ins. & Reins. Co., rising 2.4% and 2.3% respectively. Among the top losers, Mannai Corp fell 2.9%, while Doha Insurance Co. declined 1.9%. 28 Jan 14 451.1 590,492.5 7.7 4,347 39 19:16 %Chg. (0.1) 0.6 2.8 (2.8) 5.1 – Close Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index 1D% WTD% YTD% TTM P/E 16,064.17 2,778.31 2,648.65 3,749.71 1,953.86 2,043.02 2,621.84 1,587.02 6,036.11 3,232.97 0.7 0.6 0.9 0.2 0.6 0.3 1.9 0.6 (0.0) 0.4 (0.8) (0.8) (1.3) 0.6 (0.5) (1.2) 3.6 (4.3) (0.5) (0.4) 8.3 7.4 8.4 7.1 5.1 4.6 12.2 9.2 1.5 6.5 N/A 13.8 13.4 13.6 13.2 14.0 10.5 21.6 22.9 16.6 GCC Commentary GCC Top Gainers## Exchange Close# 1D% Saudi Arabia: The TASI index rose 0.6% to close at 8,704.2. Gains were led by the Banking & Financial Services and Transport indices, rising 1.1% & 1.0% respectively. Atheeb Telecom rose 9.9%, while Budget Saudi was up 4.8%. United Arab Bank Abu Dhabi 8.56 14.9 381.8 32.7 Atheeb Telecom. Co. Saudi Arabia 17.25 9.9 31,558.0 19.8 Dubai: The DFM index declined 0.3% to close at 3,793.1. The Services index fell 1.7%, while the Real Estate & Construction index was down 0.9%. Shuaa Capital declined 2.5%, while Dubai Islamic Bank fell 2.0%. Union National Bank Abu Dhabi Untd Intl. Trans. Co. Saudi Arabia Abu Dhabi: The ADX benchmark index rose 1.6% to close at 4,660.7. The Inv. & Fin. Serv. index gained 5.3%, while the Real Estate index was up 2.7%. United Arab Bank and Abu Dhabi Ship Building surged 14.9% each. Gulf Pharma. Ind. Kuwait: The KSE index gained 0.2% to close at 7,767.8. The Banking index rose 1.4%, while the Telecommunication index was up 1.3%. Humansoft Holding Co. gained 8.9%, while Equipment Holding Co. was up 6.5%. Oman: The MSM index fell 0.4% to close at 7,116.5. The Banking & Invest. index declined 0.2% while Services & Ins. index was down marginally. HSBC Bank Oman fell 1.7%, while Sharqiya Invest. Holding was down 0.6%. Bahrain: The BHB index gained 0.9% to close at 1,289.9. The Hotel & Tourism index rose 3.7%, while the Services index was up 1.7%. Gulf Hotel Group gained 6.1%, while Al Salam Bank was up 3.9%. Vol. ‘000 YTD% 7.00 6.7 3,264.0 19.3 87.00 4.8 274.0 21.3 Abu Dhabi 3.52 3.8 86.8 7.6 GCC Top Losers Exchange # Investbank Abu Dhabi 3.30 (5.7) 45.6 22.7 HSBC Bank Oman Oman 0.17 (4.5) 1,142.3 (4.5) Mannai Corp Qatar 98.10 (2.9) 1.0 9.1 Dubai Islamic Bank Dubai 6.04 (1.9) 14,191.8 12.7 Emaar Properties Dubai 8.10 (1.7) 33,095.8 6.0 ## Close 1D% Vol. ‘000 YTD% 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 Insurance Co. Qatar General Ins. & Reins. Co. Close* 1D% Vol. ‘000 YTD% Close* 1D% Vol. ‘000 78.20 Qatar Exchange Top Gainers 2.4 286.4 17.6 Mannai Corp 98.10 (2.9) 1.0 9.1 (6.1) Doha Insurance Co. 30.40 (1.9) 318.2 21.6 Dlala Brok. & Inv. Holding Co. 22.15 (1.6) 29.8 0.2 Al Khaleej Takaful Group 39.20 (1.5) 3.8 7.4 Qatar & Oman Investment Co. 12.70 (1.1) 10.7 1.4 45.00 2.3 3.2 186.40 1.9 207.2 8.4 Masraf Al Rayan 34.70 1.0 522.3 10.9 Qatar Islamic Insurance 63.60 1.0 7.5 9.8 QNB Group Qatar Exchange Top Losers YTD% Close* 1D% Vol. ‘000 YTD% Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Gulf Warehousing Co. 43.40 0.0 1,069.5 4.6 Industries Qatar 181.80 0.3 69,508.3 7.6 United Development Co. 22.95 (0.2) 760.1 1.5 Gulf Warehousing Co. 43.40 0.0 46,462.4 4.6 Barwa Real Estate Co. 31.65 0.6 613.3 6.2 QNB Group 186.40 1.9 38,203.8 8.4 Masraf Al Rayan 34.70 1.0 522.3 10.9 Commercial Bank of Qatar 71.50 0.0 36,420.4 1.0 Commercial Bank of Qatar 71.50 0.0 508.4 1.0 Gulf International Services 77.40 (0.8) 32,774.9 26.9 Qatar Exchange Top Vol. Trades Source: Bloomberg (* in QR) Source: Bloomberg (* in QR) Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain Close 1D% WTD% MTD% YTD% 11,243.35 3,793.08 4,660.74 8,704.21 7,767.83 7,116.49 1,289.87 0.7 (0.3) 1.6 0.6 0.2 (0.4) 0.9 (0.8) (0.7) 0.1 (0.8) (0.1) (1.2) 1.0 8.3 12.6 8.6 2.0 2.9 4.1 3.3 8.3 12.6 8.6 2.0 2.9 4.1 3.3 Exch. Val. Traded ($ mn) 123.74 496.51 308.46 1,525.45 167.86 46.81 14.83 Exchange Mkt. Cap. ($ mn) 162,149.2 76,876.6 131,060.8 477,434.6 110,206.8 25,564.3# 50,445.0 P/E** P/B** 14.1 19.4 12.8 17.5 17.1 11.0 8.5 1.9 1.4 1.6 2.2 1.2 1.7 0.9 Dividend Yield 4.1 2.3 3.9 3.4 3.6 3.6 3.7 # Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) ( Data as of Jan. 28, 2014) Page 1 of 6
  2. 2. Qatar Market Commentary  The QE index rose 0.7% to close at 11,243.4. The Insurance 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. Overall Activity Sell %* Net (QR) Qatari 40.59% 67.05% (119,218,613.01) Non-Qatari  Qatar Insurance Co. and Qatar General Ins. & Reins. Co. were the top gainers, rising 2.4% and 2.3% respectively. Among the top losers, Mannai Corp fell 2.9%, while Doha Insurance Co. declined 1.9%. Buy %* 59.41% 32.95% 119,218,613.01 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Wednesday rose by 2.8% to 7.9mn from 7.7mn on Tuesday. However, as compared to the 30-day moving average of 10.4mn, volume for the day was 24.0% lower. Gulf Warehousing Co. and United Development Co. were the most active stocks, contributing 13.5% and 9.6% to the total volume respectively. Ratings, Earnings and Global Economic Data Ratings Updates Company Agency Moody’s Investcorp Bank Market Type* Bahrain Deposit rating/ BFSR/ Senior unsecured debt/ Investcorp Capital Limited's backed senior unsecured mediumterm note (MTN) program Old Rating New Rating Rating Change Outlook Outlook Change Ba2/D/Ba2/Ba2 Ba2/D/Ba2/B a2 – Stable  Source: News reports (* LT – Long Term, ST – Short Term, BFSR- Bank Financial Strength Rating) Earnings Releases Revenue (mn) 4Q2013 % Change YoY AED 891.9 AED 2,775.4 Abu Dhabi AED Kuwait Company KD Market Dubai Refreshments Co (DRC) * Dubai Investments * Abu Dhabi Aviation* Jazeera Airways * Currency Dubai Dubai Operating Profit (mn) 4Q2013 % Change YoY Net Profit (mn) 4Q2013 % Change YoY -11.2% 111.3 -26.5% 123 -24.3% 19.0% 1,198.5 39.3% 822.0 155.8% 1,635.1 -8.1% 432.7 9.2% 222.7 -9.8% 65.6 4.8% 20.6 11.4% 16.7 20.1% Source: Company data, DFM, ADX, MSM (*FY2013 results) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 01/29 US MBA MBA Mortgage Applications 24-January 01/29 EU ECB M3 Money Supply YoY December -0.20% – 4.70% 1.00% 1.70% 01/29 EU ECB M3 3-month average December 1.50% 1.30% 1.50% 01/29 Germany GfK GfK Consumer Confidence February 1.60% 8.2 7.6 01/29 UK NBS Nationwide House PX MoM 7.7 January 0.70% 0.60% 1.40% 01/29 UK NBS 01/29 Spain INE Nationwide House Px NSA YoY January 8.80% 8.50% 8.40% Retail Sales YoY December 0.00% – 01/29 Spain 2.00% INE Retail Sales SA YoY December -1.00% – 01/29 1.80% Italy ISTAT Business Confidence January 97.7 98.6 01/29 98.2 Italy ISTAT Economic Sentiment January 86.8 – 83.8 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  VFQS reports in-line revenue and improved profitability in 3QFY14 – Vodafone Qatar (VFQS) reported revenue of QR507.1mn for 3QFY2014 (+9% QoQ, +28% YoY), only 1% shy of our estimate of QR512.7mn; BBG consensus was QR495.0mn. Quarterly ARPU of QR127 was slightly higher than our estimate, while reported mobile subscribers of 1,273,000 was modestly lower. Around 80% of the sequential growth in mobile service revenue was driven by customer growth with the remaining stemming from ARPU expansion helped by data and postpaid (~10% of overall subs); handset sales also increased QoQ. Net loss narrowed sequentially to QR53.3mn vs. our estimate of QR66.4mn and BBG consensus of QR70.0mn. Direct costs and depreciation expenses dropped below our expectations, causing the majority of this divergence. EBITDA for the quarter came in at QR134.0mn (26.4% margin versus 23.7% and 21.6% in the September and June quarters, respectively). Management guided to the top-end of previous guidance range for FY14; we retain our above consensus estimates. During the earnings conference call, VFQS management guided to the top-end of the range (QR1.901.95bn) for FY14 revenue and EBITDA (QR435-470mn). Our Page 2 of 6
  3. 3. current modeled estimate is QR1.96bn (BBG consensus: QR1.90bn) for FY14 revenue and QR465mn (BBG consensus: QR446mn) for FY14 EBITDA. We will shortly adjust our model to account for 3QFY14 and are likely to reduce our FY14 net loss estimate of QR274mn. Finally, we continue to expect VFQS to pay QR0.10 in dividends per share in FY2014. We maintain our Market Perform rating with a price target of QR11.04. (QNBFS Research, QE)  Qatar tops frontier markets for first time – Qatar has secured Bloomberg Markets' top ranking in the "most promising emerging and frontier markets for investors in 2014" category. The magazine's March 2014 issue will reveal its third annual ranking for this category, which shows the UAE and Saudi Arabia in the lead besides Qatar jumping to the top among the frontier markets for the first time. The surge of the three Gulf nations has been led by their respective construction and retail sectors. Qatar will be spending $180bn for building infrastructure to host the FIFA World Cup in 2022. (GulfTimes.com)  QPI buys 23% stake in Brazilian project for $1bn – Qatar Petroleum International (QPI) has signed an agreement with Royal Dutch Shell to buy its 23% stake in the Parque das Conchas (BC-10) Project, an offshore Brazilian oilfield, for $1bn. Shell will continue to operate BC-10 with a 50% working interest and retains a significant presence in Brazil, while QPI will become an active non-operating partner, supporting the project’s developments. (Gulf-Times.com)  Nakilat secures QR2.44bn refinancing from QNB Group – Qatar Gas Transport Company Ltd. (Nakilat) has secured a QR2.44bn facility with QNB Group for the refinancing of its two existing LNG vessels and the purchase of two new LNG vessels by its joint venture, Maran Nakilat Company. This is the second refinancing that Nakilat has secured for its joint venture. Through the two transactions, Nakilat has arranged a combined total of QR4.84bn in refinancing for its Maran Nakilat JV. The two vessels being added to the Maran Nakilat fleet are currently under construction in South Korea. These vessels will carry LNG cargoes from Qatar across the world. (Gulf-Times.com)  MPHC’s initial share offer oversubscribed 5 times – Qatar Petroleum (QP), Mesaieed Petrochemical Holding Company’s (MPHC) parent company, said MPHC’s IPO has been oversubscribed five times. The maximum number of shares allocated to individual investors is 1,633, in accordance with the allocation policy set out in MPHC’s prospectus, which will start trading on the Qatar Exchange in February. (Gulf-Times.com)  ORDS finally to get Myanmar telecom license – Ooredoo (ORDS) can begin rolling out a telecommunications network in Myanmar after its license will be formally awarded this week. Earlier, the Government of Myanmar had announced in June that ORDS had won licenses after a hotly contested bidding process to develop networks in one of the world's least connected countries. Once its license is awarded, ORDS plans to begin rolling out a network to cover Myanmar's four biggest cities within six months and 97% of the population in five years. (Qatar Tribune)  Mowasalat’s IPO next year; two more franchisees to operate Karwa taxis – Mowasalat’s Director of Strategy Nasser alKhanji said the company is working on plans to float its IPO sometime next year or the year after. Meanwhile, Mowasalat’s CEO Khalid al-Hail said Qatar will have at least 4,000 taxis in service by the end of this year increasing from the current 3,000, when two new franchisees launch 500 taxis each. He said Ibn Ajayan Trading Group and Profit Trading & Contracting Company are the two new Karwa franchisees. The roofs of the new taxis will be painted in colors different from the two existing Karwa franchisees, Al Million and Al Ijarah. (Gulf-Times.com)  Whirlpool eyes 10% of $221mn Qatar home appliance market – Whirlpool Corporation seeks to capture 10% of the $221mn home appliance market in Qatar. Whirlpool Corporation’s General Manager MEA Region Lorenzo Milani said the company is confident of making headway in the Qatari market with its products and reaching the company’s aim to be the market leader with 35% market share. Milani stated the company has entered into a partnership with Tadmur Trading, who will be the exclusive distributor of Whirlpool home appliances throughout Qatar. (Qatar Tribune) International  In Bernanke's final act, Fed cuts stimulus despite market turmoil – The US Federal Reserve on Wednesday decided to trim its bond purchases by another $10bn as it stuck to a plan to wind down its extraordinary economic stimulus despite recent turmoil in emerging markets. The Fed’s Chairman Ben Bernanke, who hands over the reins to Vice Chair Janet Yellen on Friday, managed to adjourn his last policy-setting meeting without any dissent from his colleagues. It was the first meeting without a dissent since June 2011 – a sign of how tumultuous Bernanke's tenure has been. In addition to proceeding with plans to scale back its bond buying, the Fed made no changes to its other main policy plank: its pledge to keep interest rates low for some time to come. (Reuters)  Europe’s bid to reform big-banks hits French resistance – Europe has unveiled a blueprint to isolate high-risk trading at its big banks in a bid to challenge their dominance, provoking a hostile response in France amid fears it could benefit US rivals exempted from the rules. After the collapse of Lehman Brothers in 2008, world leaders pledged to tackle banks that were too big to fail. Yet throughout the years of financial turmoil, many of Europe’s biggest banks continued to grow. The European Commission outlined a long-awaited draft law to change the way those big banks trade, prompting a backlash from France, whose banking lobby said this restriction would give US-based rivals based in London the upper hand. The plan shies away from suggesting any splitting of big banks, as originally called for. Michel Barnier, the European Commissioner has opted instead for a ban on proprietary trading using banks’ own funds. (Gulf-Times.com)  IMF: No panic in emerging markets – The International Monetary Fund said that there was no panic in emerging markets even as countries like India, Turkey and Argentina face sharp capital outflows and currency pressures. IMF’s Monetary & Capital Markets Department’s Director Jose Vinals said this is not like May 2013, this is not a panic situation. He stated that the turbulence in emerging economies was due to a combination of idiosyncratic factors across the countries affected, unlike the broad-based capital outflows earlier this year that was sparked by the expected tightening of the US monetary policy. (GulfTimes.com) Regional  Omantel, Mobily to be part of AAE-1 cable system – Omantel and Etihad Etisalat (Mobily) have signed a construction & maintenance agreement (C&MA) in Hong Kong, which included 15 other prominent global operators to construct a unique high capacity submarine cable system called Asia Africa Europe-1 (AAE-1). The AAE-1 submarine cable system, spanning approximately 25,000 kilometers, will connect Hong Kong to Europe via Oman, and provide an alternative and low latency short route between these locations. In its path, the system will Page 3 of 6
  4. 4. also connect countries such as Hong Kong, Vietnam, Cambodia, Malaysia, Singapore, Thailand, India, Pakistan & Oman in Asia, Djibouti & Egypt in Africa, Greece, Italy & France in Europe. AAE-1, to be completed in 2016, will employ 100Gbps technology with a designed capacity of more than 40 terabits. (GulfBase.com)  Saudi Arabia to cut March Arab Light price – According to sources, Saudi Arabia is expected to cut the official selling price (OSP) for its flagship Arab Light crude in March 2014 for a second straight month, which reflects a weaker Dubai market. The March OSP for Arab Light could fall by 30-60 cents from February to reach the lowest level in seven months. The frontmonth price spread for Dubai has narrowed in backwardation as Japan and South Korea have cut output on lower demand for heating fuel in a mild winter. In a backwardated market, frontmonth prices are higher than those in future months. A fall in Saudi crude OSPs will ease the pressure on Asian refiners, allowing margins to rise. (Reuters)  Acwa Power buys 20% stake in UAE project – Saudi-based Acwa Power International has signed an agreement with Sumitomo Global Management Corporation, a subsidiary of Sumitomo Corporation, to acquire its 20% stake in a power and water project in the UAE. Acwa Power will buy the stake in Shuweihat CMS International Energy Company, which owns Shuweihat S-1 project built for the production of electricity and desalinated water. It will also buy Sumitomo's 50% stake in Shuweihat Limited Company for operation & maintenance. The Shuweihat S-1 project has a capacity to produce 1,500MW of electricity and 100mn gallons of desalinated water. (GulfBase.com)  CB Governor: UAE banks are immune to real estate crisis – The UAE’s Central Bank Governor HE Sultan bin Nassir Al Suwaidi said that banks in the UAE are unlikely to suffer from a US-style subprime crisis as their exposure to the local real estate sector remains relatively low and the rules on new capital requirements for the country’s 51 banks would be enforced in 1Q2014. Al Suwaidi said the extent of real estate-related lending in the banks’ loan portfolio is not a matter of concern, since it is far below the levels where could pose significant systemic risk. Al Suwaidi further added that the UAE banks play a relatively minor role in real estate financing with their exposure being less than 21% of total loans and less than 20% of their total deposits – much lower than the European norms. He stressed that current UAE regulations prohibit banks from allocating more than 20% of their deposits to real estate financing. (GulfBase.com)  UAE Central Bank: Lenders sanction 7% more loans – The Central Bank of the UAE said that the UAE lenders sanctioned 7% more loans to their customers in the first 11 months of 2013, as business activities bounced back. During January-November 2013, deposits increased by 9.1% due to an increase in resident deposits by 12.3%. However, total bank deposits decreased by 0.9% during November 2013, reaching AED1,273bn as a result of a fall in resident deposits by 0.7%, and a decline in nonresident deposits by 3.2%. Meanwhile, bank assets increased by 0.2% to reach AED1,991bn at the end of November 2013. (GulfBase.com)  DLD: International real estate deals exceed AED114bn in Dubai properties – According to Dubai Land Department (DLD), the value of international real estate transactions conducted in 2013 exceeded AED114bn, nearly half of the AED236bn total transactions in Dubai. According to DLD statistics, Saudi citizens made transactions worth AED4.6bn during this period, while 7,548 investors from the GCC region states contributed AED33bn in 2013. DLD’s Director General HE Sultan Butti bin Mejren expects that Dubai’s real estate market will continue to grow this year with even more demand likely to be generated from Dubai’s winning bid to host World Expo 2020. (GulfBase.com)  CBD reports AED1,010mn net profit for 2013 – The Commercial Bank of Dubai (CBD) has reported an increase of 18% YoY in its net profit to AED1,010mn in 2013. Net profit for 4Q2013 amounted to AED258.7mn, reflecting an increase of 126% QoQ. Total assets stood at AED44.5bn as on December 31, 2013, reflecting an increase of 13.2% YoY. Loans & advances rose by 11.3% YoY to AED30.3bn, while customer deposits were up by 10.3% YoY to AED30.9bn. The bank’s board has proposed a cash dividend of 30% and bonus shares of 10% for 2013 to its shareholders. (Bloomberg)  DIB’s net profit rises 42% YoY in 2013 – Dubai Islamic Bank’s (DIB) net profit increased by 42% YoY to AED1.72bn in 2013. EPS stood at AED0.38 in 2013 as compared to AED0.30 in 2012. Total assets increased by 15% YoY to AED113.3bn at the end of 2013. Customer deposits stood at AED79.1bn, up 19% YoY. NPL ratio stood at 11.1% in 2013 as compared to 12.9% at the end of 2012. Meanwhile, DIB’s board of directors has recommended a cash dividend of 25%. The bank’s AGM is scheduled to be held on March 2, 2014. (DFM)  DIP final phase to be ready by 1Q2014 – Dubai Investments Park (DIP) – a wholly-owned subsidiary of Dubai Investments (DI) – announced that Phase 8, the final phase of the 2,400 hectare mixed-use development, will be completed by the end of 1Q2014. Stretching across 430,000 square meters, Phase 8 is expected to be a hub for logistics services, accommodating around 375 warehouses and light industrial units built at a cost of AED325mn. (GulfBase.com)  Dubai Holding’s unit sells land to MAF – Tecom Investments – a unit of Dubai Holding – has sold 1mn square feet of land at its International Media Production Zone (IMPZ) to the retail developer, Majid Al Futtaim (MAF). MAF Properties said it intends to use the land to develop a community shopping mall as part of the company's AED3bn investment plan for Dubai. (GulfBase.com)  DP World opens world’s largest semi-automated container facility – HH Sheikh Mohammed bin Rashid Al Maktoum inaugurated DP World’s Jebel Ali Container Terminal 3, which is set to become the world’s largest semi-automated facility. Terminal 3 possesses 19 sophisticated automated quay cranes and 50 automated rail mounted gantry yard cranes, which makes it at least 30% more fuel efficient than a conventional terminal operation. (GulfBase.com)  Passenger traffic at Dubai airport reaches 66.4mn – According to the Dubai Airports’ annual traffic report, Dubai International Airport recorded annual passenger traffic of 66.4mn in 2013, an increase of 15.2% as compared to 57.6mn recorded during 2012. The passenger count in December 2013 reached 6.0mn, an increase of 13.6% as compared to 5.3mn recorded during December 2012. (GulfBase.com)  Gulf Navigation to sell two VLCCs for $98mn – The Gulf Navigation Holding Company has signed a memorandum of agreement to sell two VLCCs, Gulf Sheba & Gulf Eyadah, to Dolphin Heat Transfer Holding Inc. for $98mn, through its wholly-owned special purpose vehicles. (DFM)  FGB’s net profit rises 15% to AED4.77bn – First Gulf Bank (FGB) has reported a net profit of AED4.77bn in 2013, up 15% from AED4.15bn in 2012. In 4Q2013, FGB’s net profit grew by 19% QoQ to AED1.37bn from AED1.15bn in. Total revenues Page 4 of 6
  5. 5. amounted to AED8.42bn in 2013, reflecting an increase of 16% YoY. Total assets increased by 11% YoY to AED195bn by the end of 2013. Total loans & advances were at AED126.9bn, while customer deposits stood at AED138bn. Meanwhile, FGB’s board has recommended a cash dividend of 100% (or AED1 per share) and 30% bonus shares for 2013 to its shareholders. (Bloomberg)  Rakbank posts AED1.43bn profit in 2013 – The National Bank of Ras Al-Khaimah (Rakbank) reported a net profit of AED1.43bn for 2013 as compared to AED1.4bn in 2012. EPS stood at AED0.85 in 2013 as compared to AED0.84 in 2012. Total assets grew by 10.6% YoY to AED30.1bn as on December 31, 2013. Loans and advances increased by 8% to AED22.4bn, while customer deposits grew by 11% YoY to AED23.1bn. Meanwhile, the bank’s board has recommended a cash dividend of 50% (subject to regulatory approval). (ADX)  Waha Capital plans to refinance $700mn – According to sources, Waha Capital is planning to raise a $700mn loan mainly to refinance its existing $505mn debt maturing in June 2014. Waha Capital has picked HSBC Holdings and First Gulf Bank to help arrange the five-year loan and plans to finalize the loan by the end of February. (GulfBase.com)  Zain Group appoints CEO for Zain South Sudan – Zain Group announced that Basel Manasrah has been appointed as the Chief Executive Officer (CEO) of Zain South Sudan. He will replace Wassim Mansour, who will be an advisor to the Group CEO. (GulfBase.com)  Bank Muscat proposes 40% dividend – Bank Muscat (BKMB) has proposed a 40% dividend for 2013, 25% in cash and 15% in the form of mandatory convertible bonds. Shareholders will receive OMR0.025 per ordinary share in cash, aggregating to OMR53.81mn. Mandatory convertible bonds in lieu of cash dividend aggregated to OMR32.28mn. On maturity of three years, these bonds will be converted into ordinary shares, using a conversion price by applying a 20% discount to the 3-month average share price of the bank on the Muscat Securities Market (MSM) prior to conversion. (GulfBase.com)  Batelco’s BoD recommends cash dividend, bonus share – The Bahrain Telecommunications Company’s (Batelco) board has recommended a cash dividend of 20% per share (20 fils per share) and a bonus share of 5%. (Bahrain Bourse) Page 5 of 6
  6. 6. Rebased Performance Daily Index Performance 170.0 160.0 150.0 140.0 130.0 120.0 110.0 100.0 90.0 80.0 139.4 127.0 2.0% 1.6% 1.6% 0.9% 1.2% 0.8% 0.6% 0.7% 0.2% 0.4% 0.0% (0.4%) S&P Pan Arab Dec-13 S&P GCC Source: Bloomberg Asset/Currency Performance Gold/Ounce Silver/Ounce Crude Oil (Brent)/Barrel (FM Future) Natural Gas (Henry Hub)/MMBtu North American Spot LPG Propane Price North American Spot LPG Normal Butane Price Euro Source: Bloomberg Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% 1,267.24 0.8 (0.2) 5.1 DJ Industrial 15,738.79 (1.2) (0.9) (5.1) 19.76 0.9 (0.8) 1.5 S&P 500 1,774.20 (1.0) (0.9) (4.0) 107.85 0.4 (0.0) (2.7) NASDAQ 100 4,051.43 (1.1) (1.9) (3.0) 5.20 (0.5) 0.3 19.7 STOXX 600 322.39 (0.6) (0.7) (1.8) 164.00 7.4 8.3 29.6 DAX 9,336.73 (0.7) (0.6) (2.3) 157.00 1.9 2.1 15.7 FTSE 100 6,544.28 (0.4) (1.8) (3.0) 1.37 (0.1) (0.1) (0.6) CAC 40 102.29 (0.6) (0.0) (2.9) Nikkei GBP 1.66 (0.1) 0.5 0.0 CHF 1.12 0.3 0.0 (0.2) SHANGHAI SE Composite AUD 0.87 (0.5) 0.6 (2.0) USD Index 80.51 (0.1) 0.1 RUB 35.09 0.7 1.5 BRL 0.41 (0.4) (1.5) (3.0) Yen Dubai May-13 Oman Oct-12 Abu Dhabi QE Index Mar-12 Bahrain Aug-11 Kuwait Jan-11 (0.3%) (0.4%) Qatar (0.8%) Saudi Arabia Jun-10 161.6 (0.7) (0.1) (3.2) 2.7 (0.0) (5.6) 936.67 0.3 (1.4) (6.6) 2,049.91 0.6 (0.2) (3.1) HANG SENG 22,141.61 0.8 (1.4) (5.0) 0.6 BSE SENSEX 20,647.30 (0.2) (2.3) (2.5) 6.7 Bovespa 47,556.78 (0.6) (0.5) (7.7) 1,308.00 (1.8) (4.1) (9.3) Source: Bloomberg MSCI EM 4,156.98 15,383.91 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 6 of 6

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