30 October Daily Market Report

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30 October Daily Market Report

  1. 1. QE Intra-Day Movement Market Indicators 9,780 9,760 9,740 29 Oct 13 %Chg. 298.8 528,428.8 8.7 3,066 36 20:11 348.9 527,524.3 8.2 2,610 39 23:13 (14.4) 0.2 5.3 17.5 (7.7) – Market Indices 9,720 9,700 9:30 30 Oct 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 0.2% to close at 9,757.1. Gains were led by the Industrials and Real Estate indices, gaining 1.0% and 0.8% respectively. Top gainers were Qatar Islamic Insurance and Gulf International Services, rising 2.2% and 1.6% respectively. Among the top losers, Doha Bank fell 1.3%, while Doha Insurance Co. declined 1.0%. Close Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index 1D% WTD% YTD% TTM P/E 13,940.67 2,446.35 2,316.37 3,183.23 1,821.80 1,810.08 2,294.10 1,441.34 5,879.92 2,798.94 0.2 0.2 (0.2) 1.0 0.7 0.8 0.4 (0.4) 0.0 0.4 1.1 1.0 0.9 1.9 0.9 0.3 (1.3) 0.9 0.2 0.6 23.2 21.4 18.8 21.2 35.9 12.3 16.8 35.3 25.9 12.5 N/A 12.2 12.3 11.5 12.3 13.1 9.4 15.2 22.3 14.8 GCC Commentary GCC Top Gainers## Exchange Close# Saudi Arabia: The TASI index rose 0.4% to close at 8,005.5. Gains were led by the Telecomm. & Info. Tech. and Hotel & Tourism indices, rising 2.2% each. Saudi Telecom Co. rose 7.4%, while Advanced Petrochem. Co. was up 7.0%. Saudi Telecom Co. 1D% Saudi Arabia 47.70 7.4 8,815.8 10.2 Advanced Petrochem. Saudi Arabia 39.80 7.0 1,328.2 51.9 Dubai: The DFM index gained 0.9% to close at 2,915.6. The Investment & Financial Services index rose 1.7%, while the Banking index was up 1.2%.Int. Financial Advisors gained 3.1%, while ALMADINA was up 2.7%. Nat. Petrochemical Co. Saudi Arabia 23.30 5.0 1,713.7 16.5 Saudi Airlines Catering Saudi Arabia 126.00 4.6 241.5 61.5 Abu Dhabi: The ADX benchmark index fell 0.4% to close at 3,841.9. The Industrial index declined 1.6%, while the Banking index was down 0.7%. Al Ain Al Ahlia Ins. Co. fell 6.3%, while Int. Fish Farming Holding was down 4.2%. SADAFCO Saudi Arabia 92.25 4.2 70.6 42.5 GCC Top Losers Exchange Kuwait: The KSE index declined 0.4% to close at 7,920.8. The Oil & Gas index fell 1.0%, while the Consumer Goods index was down 0.9%. IFA Hotels & Resorts Co. declined 12.5%, while Kuwait United Poultry was down 7.1%. IFA Hotels & Resorts Kuwait Zamil Ind. Investment Oman: The MSM index gained 0.1% to close at 6,663.7. The Banking & Investment index rose 0.2%, while Serv. & Ins. index gained marginally. A'Sharqiya Inv. Holding Co. rose 5.2%, while Sweets of Oman was up 4.9%. Bahrain: The BHB index fell 0.1% to close at 1,198.3. The Insurance index declined 0.4%, while the Commercial Banking index was down 0.2%. Al-Ahlia Insurance Co. fell 3.6%, while Nass Corporation was down 2.5%. ## Vol. ‘000 YTD% # 1D% Vol. ‘000 0.40 (12.5) 7.4 (1.3) Saudi Arabia 44.90 (5.1) 500.3 42.5 Nat. Bank of Abu Dhabi Abu Dhabi 12.60 (4.2) 2,397.5 34.6 Gulf Pharma. Industry Abu Dhabi 3.15 (3.1) 54.6 14.5 Banque Saudi Fransi Saudi Arabia 32.00 (3.0) 853.5 8.8 Close 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 Islamic Insurance Close* 1D% Vol. ‘000 YTD% Close* 1D% Vol. ‘000 YTD% 56.80 Qatar Exchange Top Gainers 2.2 0.6 (8.4) Doha Bank 54.60 (1.3) 24.2 17.8 82.7 92.0 Doha Insurance Co. 25.25 (1.0) 21.8 2.9 (34.0) Qatar Exchange Top Losers Gulf International Services 57.60 1.6 Qatar General Ins. & Rein. Co. 54.00 1.5 9.3 17.4 Dlala Brok. & Inv. Holding Co. United Development Co. 21.78 1.3 4,901.7 22.4 Ooredoo Qatar Navigation 86.10 1.3 82.1 36.5 Ezdan Holding Group 20.50 (0.5) 48.3 139.40 (0.4) 52.8 34.0 17.14 (0.3) 31.8 (5.8) Close* 1D% Val. ‘000 YTD% 21.78 1.3 106,568.0 22.4 Close* 1D% Vol. ‘000 YTD% United Development Co. 21.78 1.3 4,901.7 22.4 United Development Co. Barwa Real Estate Co. 26.60 0.6 600.2 (3.1) Industries Qatar 156.50 1.0 37,804.9 11.0 Mazaya Qatar Real Estate Dev. 11.55 0.5 294.6 5.0 QNB Group 162.60 (0.2) 20,897.2 24.2 Qatar Gas Transport Co. 19.01 0.1 291.9 24.6 Qatar Electricity & Water Co. 159.10 1.2 18,087.0 20.2 156.50 1.0 243.1 11.0 Barwa Real Estate Co. 26.60 0.6 15,926.2 (3.1) Qatar Exchange Top Vol. Trades Industries Qatar Source: Bloomberg (* in QR) Source: Bloomberg (* in QR) Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain Qatar Exchange Top Val. Trades Close 1D% WTD% MTD% YTD% 9,757.11 2,915.60 3,841.86 8,005.49 7,920.79 6,663.72 1,198.29 0.2 0.9 (0.4) 0.4 (0.4) 0.1 (0.1) 1.1 0.2 (1.0) (2.0) (0.4) (0.1) (0.4) 1.5 5.5 (0.0) 0.5 2.0 0.3 0.4 16.7 79.7 46.0 17.7 33.5 15.7 12.5 Exch. Val. Traded ($ mn) 70.71 123.63 117.55 1,342.05 114.64 25.26 1.91 Exchange Mkt. Cap. ($ mn) 145,106.5 70,004.0 110,150.6 429,656.8 136,635.7 23,723.4 17,775.0 P/E** P/B** 12.2 16.4 10.8 16.4 19.1 10.8 8.3 1.7 1.2 1.3 2.1 1.3 1.6 0.8 Dividend Yield 4.7 3.1 4.7 3.7 3.5 3.9 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) Page 1 of 7
  2. 2. Qatar Market Commentary  The QE index rose 0.2% to close at 9,757.1. The Industrials and Real Estate indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.  Qatar Islamic Insurance and Gulf International Services were the top gainers, rising 2.2% and 1.6% respectively. Among the top losers, Doha Bank fell 1.3%, while Doha Insurance Co. declined 1.0%. Overall Activity Buy %* Sell %* Net (QR) Qatari 71.44% 73.74% (6,840,735.95) Non-Qatari 28.55% 26.26% 6,840,735.95 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Wednesday rose by 5.3% to 8.7mn from 8.2mn on Tuesday. Further, as compared to the 30-day moving average of 6.4mn, volume for the day was 34.4% higher. United Development Co. and Barwa Real Estate Co. were the most active stocks, contributing 56.6% and 6.9% to the total volume respectively. Ratings, Earnings and Global Economic Data Ratings Updates Company Agency Commercial Bank of Dubai (CBD) Market Fitch Dubai Moody's Dubai Majid Al Futtaim Holding (MAF) Fitch Dubai Abu Dhabi Islamic Bank (ADIB) Fitch Abu Dhabi Al Dhafra Insurance Co. (Al Dhafra) S&P Abu Dhabi ADIB Sukuk Company Ltd. Fitch Abu Dhabi Boubyan Bank (BB) Fitch Kuwait Tamweel Type* Old Rating LT IDR/ ST IDR/ VR/ SR/ SR floor/ Senior unsecured debt LT Issuer rating/ BFSR Subordinated perpetual $500mn 7.125% capital notes (hybrid notes) LT IDR/ ST IDR/ VR/ SR/ SR floor Unsolicited public information insurer financial strength and counterparty credit ratings Trust certificate issuance program/ Senior unsecured certificates Global foreign & localcurrency deposit ratings/ BFSR New Rating Rating Change Outlook Outlook Change A-/F2/bb+/1/ A/(A-/F2) A-/F2/bb+/1/ A-/(A-/F2) – Stable – Baa3/E+ Baa1/D-  Stable  – BB+ – – – A+/F1/bb/1/A+ A+/F1/bb/1/A + – Stable – BBBpi BBBpi – – – (A+/F1)/A+ (A+/F1)/A+ – – – Baa2/D Baa1/D+  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, VR- Viability Rating, BFSR- Standalone Bank Financial Strength Rating) Earnings Releases Company % Change YoY Operating Profit (mn) 3Q2013 % Change YoY Net Profit (mn) 3Q2013 % Change YoY – – 5.4 NA -7.9 -76.6% SR 57.2 – 53.3% – -8.8 -9.9% -9.3 -7.7% SR – – -41.2 -47.3% -42.8 -45.7% Saudi Arabia SR Saudi Arabia SR 37.8 – 38.4% – -4.2 NA -7.5 NA – – – – 9.9 -48.8% -6.9 NA – – – – Market Currency Mohammad Al Mojil (MMG) Saudi Arabia SR Al-Ahlia Insurance Co. Sauid Arabia SR Saudi Fisheries Co. (SFC) Saudi Arabia Etihad Atheeb Telecom. Saudi Arabia Al Alamiya for Coop. Ins. Co. Anaam Int. Holding Group Saudi United Cooperative Insurance Co. (WALA'A) Alsorayai Trading & Industrial Group (ATIG) Sanad Cooperative Insurance & Reinsurance Saudi Arabia SR National Industrialization Co. Saudi Arabia Al-Ahsa Dev. Co. (ADC) Gulf General Cooperative Insurance Co. (GGCI) Abdullah Abdul Mohsin AlKhodari Sons Co. Saudi Industrial Services Co. (SISCO) Knowledge Economic City Co. (KEC) Saudi Arabia Saudi Arabia SR Saudi Arabia SR 62.4% – – SR 283.9% – 762.2 -20.9% 226.4 -45.7% SR – – 1.2 NA 1.2 NA – – – – 19.7 -29.9% 12.2 -44.3% 31.1 -5.7% 11.2 -5.7% 1.1 -91.1% 1.7 SR Saudi Arabia SR Saudi Arabia 38.6 37.5 – Saudi Arabia Saudi Arabia Revenue (mn) 3Q2013 SR SR 30.7 1.5% – – – – – – -82.3% Page 2 of 7
  3. 3. Saudi Telecom Co. (STC) Saudi Re for Cooperative Reinsurance (EAADA) Tihama Advertising & Public Relations Co. Saudi Aramco Total Refining & Petro. Co. (SATORP) Saudi Arabia – SR Saudi Arabia SR Saudi Arabia SR Saudi Arabia SR – 3,377.0 36.7% 3,386.0 73.3% – – – – -10.4 NA -11.7 NA 91.5 27.4% – – – – – – -14.3 -85.4% – – – – 27.6 222.2% 1.1 – -9.2% – Tamweel Dubai AED Muscat Gases Co. (MGC) Oman OMR 7.2 -7.5% – – Oman Cement Co. (OCC) Oman & Emirates Inv. Hold. Co. (OEIHC) Oman OMR 39.0 -6.6% – – Oman OMR – – – – 3.0 7.9% – – – 0.4 -58.2% -0.2 -13.4% 36.7 -13.8% Omani Packaging Co. (OPC) Oman OMR – Oman Filters Ind. Co. (OFIC) Bahrain Telecom. Co. (Batelco) Oman OMR 0.4 -33.0% – – – – – – Bahrain BHD Source: Company data, DFM, ADX, MSM Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 10/30 US MBA MBA Mortgage Applications 25-October 10/30 US Bureau of Labor Stat. CPI MoM September 6.40% – -0.60% 0.20% 0.20% 10/30 US Bureau of Labor Stat. CPI YoY 0.10% September 1.20% 1.20% 10/30 US Bureau of Labor Stat. 1.50% CPI Core Index SA September 234.589 234.7 10/30 US 234.3 Bureau of Labor Stat. CPI Index NSA September 234.149 234.086 233.88 10/30 10/30 US Federal Reserve Fed Pace of MBS Purchases October – 40 40 US Federal Reserve Fed Pace of Treasury Pur October – 45 45 10/30 EU EC Business Climate Indicator October -0.01 -0.19 -0.19 10/30 EU EC Economic Confidence October 97.8 97.2 96.9 10/30 EU EC Industrial Confidence October -4.8 -6.5 -6.6 10/30 EU EC Consumer Confidence October -14.5 -14.5 -14.9 10/30 EU EC Services Confidence October -3.7 -2.8 -3.2 10/30 Germany Destasis CPI Saxony MoM October -0.30% – 0.00% 10/30 Germany Destasis CPI Saxony YoY October 1.10% – 1.50% 10/30 Germany Deutsche Bundesbank Unemployment Rate October 6.90% 6.90% 6.90% 10/30 Germany Destasis CPI MoM October -0.20% 0.00% 0.00% 10/30 Germany Destasis CPI YoY October 1.20% 1.40% 1.40% 10/30 Germany Destasis CPI EU Harmonized MoM October -0.20% 0.00% 0.00% 10/30 Germany Destasis CPI EU Harmonized YoY October 1.30% 1.50% 1.60% 10/30 UK Lloyds Bank Lloyds Business Barometer October 63 – 57 10/30 Spain INE GDP QoQ 3Q2013 0.10% 0.10% -0.10% 10/30 Spain INE GDP YoY 3Q2013 -1.20% -1.20% -1.60% 10/30 Spain INE CPI YoY October -0.10% 0.30% 0.30% 10/30 Japan METI Industrial Production MoM September 1.50% 1.80% -0.90% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Page 3 of 7
  4. 4. News Qatar  CBQK profit down 45.8% in Q32013 – Commercial Bank of Qatar’s (CBQK) net profit dropped by 45.8% QoQ (-48.8% YoY) to QR280.9mn). Net interest income expanded by 39.8% QoQ (+39.1% YoY) to QR642.8mn, while net fee and commission income declined by 12.4% QoQ (+8.0% YoY) to QR144.5mn. Total loans and advances stood at QR64.9bn at the end of Q3 2013, up 33.5% YTD, while customer deposits rose 39.4% YTD to QR57.7bn. As such the LDR stood at 112.4%. (QE)  CBQK intends to raise QR2bn Tier 1 perpetual capital notes – The Commercial Bank of Qatar (CBQK) intends to raise additional Tier 1 perpetual capital notes worth QR2bn to enhance its capital adequacy ratios and to support future growth. The notes are expected to enhance the bank’s capital adequacy ratio by ~2.2%. This proposed issue will be a local private placement that is expected to be completed in December 2013. (Company Press Release)  Ooredoo earns QR2.07bn net profit on NGN, affiliates’ gain – Growing demand for new products in next generation networks (NGN) and impressive performances of group companies in Qatar, Algeria and Iraq have enabled Ooredoo Group to post a nine-month net profit of QR2.07bn and revenue of QR25.7bn. The net profit attributable to Ooredoo’s shareholders represented a 4% YoY decrease, but that includes foreign exchange losses primarily from Indosat (Indonesia). Excluding this, the net profit to shareholders stood at the same level as in 3Q2012 and increased by 12% for the nine months in 2013. Meanwhile, as of September 30, the group’s consolidated customer base stood at 89.6mn subscribers compared with 89.2mn in the same period last year, representing 0.4% YoY growth. In September 2013, Ooredoo’s customer base in Qatar stood at 2.8mn as compared to 2.4mn in the same period in 2012. (Gulf-Times.com)  AHCS reports QR106.7mn net profit in 3Q2013 – Aamal Company (AHCS) has reported a net profit of QR106.7mn in 3Q2013, reflecting an increase of 38.4% QoQ (+10.3% YoY). Revenue rose by 13.3% QoQ (+18.1% YoY) to QR566.1mn. (QE)  WDAM reports QR47.2mn net profit in 9M2013 – Widam Food Company (WDAM) posted net profit of QR47.2 million for the nine months period ended September 30, 2013 vs. a net profit of QR62.1 million for the corresponding period last year. The company’s Earnings per Share (EPS) amounted to QR2.63 for the period ended September 30, 2013 versus QR3.45 for the corresponding period in 2012. (QE)  MRDS reports QR7.7mn net profit in 9M2013 – Mazaya Qatar Real Estate Development (MRDS) posted a net profit of QR7.7 million for the nine months period ended September 30, 2013 vs. a net profit of QR 4.4 million for the corresponding period last year. The company’s Earnings per Share (EPS) amounted to QR0.077 for the period ended September 30, 2013 vs. QR0.044 for the corresponding period in 2012. (QE)  QGMD reports loss of QR4.9mn in 9M2013 – Qatar German Company for Medical Devices (QGMD) posted a net loss of QR 4.9 million for the nine months period ended September 30, 2013 vs. a net loss of QR 5.1 million for the corresponding period last year. The company’s Loss per Share (LPS) amounted to QR0.43 for the period ended September 30, 2013 versus Loss per Share (LPS) to QR0.44 for the corresponding period in 2012. (QE)  QFCA bags Best Financial Centre in Mideast award – The Qatar Financial Centre Authority (QFCA) has bagged the “Best Financial Centre in the Middle East” award, instituted by the Global Investor/ISF magazine. The magazine is regarded as a prestigious publication in the global asset management community. (Gulf-Times.com)  UDCD’s shares traded on special market – Around 1.9mn shares of the United Development Company (UDCD) were traded on the special market on October 30, 2013. (QE)  Hotels in Doha record higher occupancy but yield falls – According to Ernst & Young (E&Y), Qatar’s hotels witnessed higher occupancy even as their rooms’ yield fell marginally due to lower average room rates in dollar terms during the first eight months of 2013. Doha’s hotels, which registered 65% occupancy, saw their room’s yield shrink 0.8% during JanuaryAugust 2013 mainly because of the lower average room rate. On the other hand, Manama, Kuwait, Jeddah, Al Ain, Abu Dhabi and Dubai witnessed robust gains in hotel rooms’ yield. In Doha, the hotel room yield settled lower at $166 due to a 2.6% fall in the average room rate to $254, even as occupancy was up 1% YTD in August 2013. (Gulf-Times.com)  Qatar, Bahrain in causeway talks – Qatar and Bahrain have resumed talks on the proposed 40-kilometer causeway that would link the two countries and have decided to review the project’s cost in the wake of rising prices of construction materials. Linking Al Ishairij in Qatar to Al Askra in Bahrain, the causeway is proposed to be a cable bridge with a four-lane road. In addition, there would be an emergency lane and a pedestrian walkway. Work on the causeway was expected to begin in 2011 at an estimated cost of $4.5bn. (Peninsula Qatar)  IBQ launches corporate branch – The International Bank of Qatar (IBQ) has opened its corporate branch on the Airport Road. Through this new initiative, IBQ will cater to all its corporate client needs, by providing a full range of tailored corporate banking solutions in one convenient location. (GulfTimes.com) International  Fed maintains stimulus as US growth stumbles – The US Federal Reserve extended its support for a softened US economy, sounding a bit less optimistic about growth as it announced plans to keep buying $85bn in bonds per month. In announcing the decision, the Fed agreed to weaker economic signals that have been partly due to a fiscal fight in Washington that shutdown much of the US government for 16 days earlier this month. The central bank noted that the recovery in the housing market has lost some steam and suggested some frustration about the slow healing of the labor market. However, the Fed stated the available data suggests that both household spending and business fixed investment have advanced, while the recovery in the housing sector has slowed somewhat in recent months. (Reuters)  Portugal vows to cut spending, eyes post-bailout tax cuts – The Portuguese government has promised to keep cutting state spending when the EU/IMF bailout ends next year, saying that would allow it to start lightening the tax burden by 2015, while continuing its budget consolidation. The government said it wanted to reduce and streamline public spending across the board, while continuing to reduce the numbers of public sector workers. (Reuters) Regional  Saudi Aramco evaluates bids for projects in Ras Tanura, Jizan – The Saudi Arabian Oil Company (Saudi Aramco) is Page 4 of 7
  5. 5. evaluating bids from Asian and European engineering companies to construct a new cleaner fuels plant in Ras Tanura and a power plant for a new oil refinery in Jizan. Japan's JGC Corporation, South Korea-based Daewoo E&C, Samsung Engineering, Hyundai Engineering, Spain's Tecnicas Reunidas, Italy’s Maire Tecnimont, Daelim Industrial and SK E&C have placed their bids for the Ras Tanura clean fuels and aromatics project. For the power plant project in Jizan, 14 companies are bidding for four packages to build the integrated gasification combined cycle unit. (Reuters)  STC’s BoD recommends SR1bn dividends – The Saudi Telecom Company’s (STC) board of directors has recommended the distribution of dividends worth SR1bn (SR0.5 per share). STC’s shareholders who are registered with the Securities Depository Center as on November 4, 2013 will be eligible for this dividend. The dividend will be distributed on November 19, 2013 through Saudi Fransi Bank branches. (Tadawul)  Mobily’s BoD recommends SR924mn dividends – Etihad Etisalat Company’s (Mobily) board has recommended the distribution of dividends worth SR924mn (SR1.2 per share). Mobily’s shareholders who are registered with the Securities Depository Center as on November 4, 2013 will be eligible for this dividend. The dividend will be distributed on November 12, 2013. (Tadawul)  SALAMA obtains SAMA approval for insurance products – The SALAMA Cooperative Insurance Company has obtained a temporary approval from the Saudi Arabian Monetary Agency (SAMA) to extend the use of its Motor-Comprehensive and Motor-TPL insurance products for another three months. (Tadawul)  UAE Central Bank unveils mortgage lending framework – The Central Bank of the UAE has issued new regulations on mortgage lending, which defines the eligibility of various categories of borrowers based on the loan-to-value (LTV) ratio. UAE nationals may borrow up to 80% of their property’s value provided it is worth less than AED5mn. On properties worth more than AED5mn, the maximum loan is limited to 70%. UAE nationals buying a second property will be limited to a loan of up to 65% of property’s value and for expats, the limits are lower. For owner occupiers, the limit is 75% of the property’s value that is valued less than AED5mn and 65% for homes valued higher. Separately, the maximum LTV for mortgages on off-plan properties has been set at 50% regardless of the purpose or category of the purchaser. The maximum term for a mortgage loan is set at 25 years and the maximum age for the borrower at the end of the term is set at 70 for UAE nationals and 65 for expats. The central bank has also stipulated that the debt ratio should not exceed 50% of the monthly income. Maximum financing has been set at 8x annual income for UAE nationals and at 7x annual income for expats. (Gulfbase.com)  WB: UAE tops Ease of Doing Business rankings – According to a report released by the World Bank (WB), the UAE has topped the Middle East region in the latest Ease of Doing Business rankings, while Saudi Arabia is ranked second. The report placed the UAE at 23rd spot in the overall world ranking, while Saudi Arabia ranked 26th. Following them in the global business rankings are: Bahrain ranked at 46th, Oman at 47th, Qatar at 48th, Tunisia at 51th, Kuwait at 104th, Lebanon at 111th, Jordan at 119th and Egypt at 128th rank. The WB report has judged 189 countries based on 10 criteria such as ease of starting a business, paying taxes, etc. (GulfBase.com)  DP World handles 14.2mn TEUs in 3Q2013 – DP World Ltd stated that it has handled 14.2mn twenty-foot equivalent units (TEUs) across its global portfolio of container terminals in 3Q2013, with gross container volumes rising 2.4%. The company has handled 3.6mn TEUs in the UAE, indicating an increase of 5.4%. meanwhile, the volumes for the nine months ended on September 30, 2013 exceeded 10mn TEUs. (GulfBase.com)  RTA signs AED2.09bn deal with Serco Group to renew Dubai Metro O&M contract – The Roads & Transport Authority of Dubai (RTA) has entered into AED2.09bn deal with UK-based Serco Group to renew the contract for the operation & maintenance (O&M) of Dubai Metro. Valid until September 2019, this contract will be renewable for another two years and marks a 23.5% reduction in the worth of the operation and maintenance contract made for the previous five years. (GulfBase.com)  Mashreq Bank’s net profit rises 34% YoY in 9M2013 – Mashreq Bank has posted a 34% rise in its nine-month net profit. Profit for the first nine months of 2013 stood at AED1.3bn versus AED970mn in the same period last year. (GulfTimes.com)  Dubai Holding to repay $1.04bn bonds – Dubai Holding will repay bonds worth $1.04bn that are maturing in January 2014 from its available funds. Following this repayment, Dubai Holding’s Commercial Operations Group will have only one bond outstanding, which is the $805mn issue maturing in 2017. (Reuters)  Jumeirah Group raises $1.4bn unsecured syndicated loan – The Jumeirah Group has successfully raised an unsecured syndicated loan worth $1.4bn to help fund its expansion. This loan, which is due in 2019, is priced at 2.75% above LIBOR. The lead-arrangers for this facility were Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD, HSBC, Mashreq and Standard Chartered. Jumeirah was advised by Rothschild for this loan. (Reuters)  Julphar expects 19% YoY sales growth for 2013 – Gulf Pharmaceutical Industries’ (Julphar) CEO Dr. Ayman Sahli said that the company expects nearly 19% YoY growth in sales for 2013. Julphar is projected to achieve a sales target of around AED1.4bn as compared to AED1.18bn achieved in 2012. Sahli also said that the company’s new manufacturing facility in Saudi Arabia is in advanced stages and is expected to begin production by mid-2016. (GulfBase.com)  Avolon acquires two A320 aircraft for Etihad – Ireland-based Avolon has acquired two A320 aircraft for delivery to Etihad Airways as part of a sale and leaseback transaction. This deal is financed by Abu Dhabi National Leasing. Etihad has received the first aircraft, while the second is scheduled to be delivered in December 2013. (Bloomberg)  NBAD sees 2013 loan growth at 10-15% – The National Bank of Abu Dhabi’s (NBAD) CEO Alex Thursby said the bank expects a loan growth of around 10-15% in 2013. (Reuters)  Abraaj’s Stanford Marine hires banks for listing – Stanford Marine Group, a part of private equity firm Abraaj Group, has hired banks to help arrange for a stock market listing in London, as regional private equity firms tap overseas stock markets to exit investments. Deutsche Bank and Goldman Sachs have been picked to arrange the listing of the oil & gas services firm scheduled for 1Q2014. (Gulf-Times.com)  CBO to issue 5-year GDBs worth OMR100mn – The Central Bank of Oman (CBO) has announced the new issue of five-year government development bonds (GDB) worth OMR100mn. These bonds will carry a coupon rate of 3% per annum. This Page 5 of 7
  6. 6. issue will be open for subscription from November 10, 2013 to November 18, 2013, and the auction will be held on November 19, 2013. The interest on these new bonds will be paid on May 25 and November 25 every year until the maturity date on November 25, 2018. (GulfBase.com)  Oman to spend $50bn on infrastructure projects – Oman’s Ministry of Commerce & Industry’s Undersecretary Ahmed bin Hassan Al Dheeb said the Sultanate will spend more than $50bn from private and public sectors to boost the Sultanate’s economy. He said that the country is estimated to spend $20bn on various transportation infrastructure projects that include: the Oman National Railway project, the on-going and planned airports in Sohar, RAs Al Hadd, Duqm and Adam, expansion of Muscat and Salalah airports and work on the Batina coastal Road and expressways. Al Dheeb said that approximately $17bn worth of projects will be implemented in the oil & gas sector, while another $13bn worth of investments will be made in the manufacturing & industrial sector. (Bloomberg) increases in both (Gulfbase.com) loan volumes and loan margins.  BCFC reports BHD3.2mn net profit in 3Q2013 – Bahrain Commercial Facilities Co. (BCFC) has reported a net profit of BHD3.2mn in 3Q2013, reflecting an increase of 2% YoY. EPS stood at 60 fils for the nine months ended on September 30, 2013 versus 59 fils for the corresponding period in 2012. Net interest income rose 24.3% YoY to BHD4.2mn. Total assets at the end of September 30, 2013 stood at BHD223mn, while loans & advances were up 14.2% YoY to BHD171.9mn. (Bahrain Bourse)  Oman plans first part of $15bn rail network in 4Q2014 – The Oman Transportation Ministry’s Assistant Director General Salim bin Said bin Salim Alami said the Sultanate is planning to begin the construction of first part of $15bn rail network by 4Q2014. This 2,244-kilometer long rail network will link Buraimi, bordering the UAE, to six major settlements in Oman including the industrial city of Sohar. This project will connect to a planned rail network across the GCC region, and eventually to Yemen. Oman expects the railway network to be fully operational by 2018. (Reuters)  Bank Sohar posts OMR18.1mn net profit for 9M2013 – Bank Sohar has posted a net profit of OMR18.1mn for the first nine months of 2013, indicating a growth of 15.2% YoY. Net interest income improved 4.2% YoY to OMR30.4mn. Gross loans increased by 7.8% YoY to OMR 1.253bn as on September 2013 over OMR 1.16bn at the end of September 2012. Net loans & advances grew by 7.6% to OMR 1.22bn. Meanwhile, customer deposits stood at OMR1.32bn in September 2013, down 6.8% YoY. (Gulfbase.com)  Majan College’s BoD recommends a dividend of 30 baiza per share – Majan College’s board of directors has recommended to approve the distribution of 30% of paid-in capital as cash dividends (30 baiza per share). The BoD has also decided to repurchase the Majan’s shares (Treasury stock) of up to 10% of the paid-in capital after obtaining the necessary approvals from respective authorities and the extraordinary general meeting. (MSM)  AUB’s net profit rises 8.6% in 3Q2013 – Ahli United Bank (AUB) has reported a net profit of $99.1mn in 3Q2013, indicating an increase of 8.6% YoY. EPS stood at 9.2 cents for the nine months ended on September 30, 2013 versus 4.8 cents for the corresponding period in 2012. The bank’s net interest income rose 16.1% YoY to $188.8mn. Total assets at the end of September 30, 2013 stood at $31.8bn, reflecting an increase of 6.5% YTD. Loan & advances rose by 7.7% YTD to $17.2bn, while customer deposits were up 21.8% YTD to $22.2bn. (Bahrain Bourse)  GIB’s net income rises 4.6% to $101.5mn – The Gulf International Bank (GIB) reported a consolidated net income after tax worth $101.5mn for the nine months ending September 30, 2013, rising 4.6% YoY. Net income after tax in the third quarter was $40.9mn. Total income stood at $211.2mn, up 9% YoY, as growth was recorded in all income categories with the exception of foreign exchange and trading income. Net interest income came in at $119.7mn for the nine months, up 10% YoY. The YoY increase in net interest income principally reflected Page 6 of 7
  7. 7. Rebased Performance Daily Index Performance 1.4% 0.9% 0.7% 0.4% 0.2% 0.1% 0.0% (0.1%) Source: Bloomberg Asset/Currency Performance Dubai Oman Bahrain Kuwait Qatar Abu Dhabi (0.4%) (0.4%) Saudi Arabia (0.7%) Source: Bloomberg Close ($) 1D% WTD% YTD% Global Indices Performance Gold/Ounce 1D% WTD% YTD% DJ Industrial Silver/Ounce Close S&P 500 Crude Oil (Brent)/Barrel (FM Future) Natural Gas (Henry Hub)/MMBtu North American Spot LPG Propane Price North American Spot LPG Normal Butane Price NASDAQ 100 STOXX 600 DAX FTSE 100 Euro CAC 40 Yen Nikkei GBP MSCI EM CHF SHANGHAI SE Composite AUD HANG SENG USD Index BSE SENSEX RUB Bovespa BRL RTS Source: Bloomberg Source: Bloomberg Contacts Saugata Sarkar Ahmed M. Shehada Keith Whitney Sahbi Kasraoui Head of Research Head of Trading Head of Sales Manager - HNWI Tel: (+974) 4476 6534 Tel: (+974) 4476 6535 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 saugata.sarkar@qnbfs.com.qa ahmed.shehada@qnbfs.com.qa keith.whitney@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa QNB Financial Services SPC Contact Center: (+974) 4476 6666 PO Box 24025 Doha, Qatar DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 7 of 7

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