31 October Daily Market Report


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31 October Daily Market Report

  1. 1. QE Intra-Day Movement Market Indicators 9,850 9,800 9,750 9,700 9:30 31 Oct 13 30 Oct 13 %Chg. Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth 381.3 533,105.7 8.0 5,388 38 26:11 298.8 528,428.8 8.7 3,066 36 20:11 27.6 0.9 (7.2) 75.7 5.6 – Market Indices 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QE index rose 0.8% to close at 9,837.5. Gains were led by the Insurance and Industrials indices, gaining 1.6% and 1.2% respectively. Top gainers were Qatar Insurance Co. and QNB Group, rising 2.6% and 2.1% respectively. Among the top losers, Widam Food Co. fell 1.6%, while Mazaya Qatar Real Estate Dev. declined 1.5%. Close Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index 1D% WTD% YTD% TTM P/E 14,055.51 2,466.67 2,337.58 3,220.11 1,830.07 1,823.05 2,331.58 1,438.50 5,891.43 2,813.42 0.8 0.8 0.9 1.2 0.5 0.7 1.6 (0.2) 0.2 0.5 1.9 1.8 1.8 3.1 1.4 1.0 0.3 0.7 0.4 1.1 24.2 22.4 19.9 22.6 36.5 13.1 18.7 35.1 26.1 13.1 N/A 12.5 12.6 11.7 12.4 12.5 9.6 19.9 22.3 14.7 Close# 1D% Vol. ‘000 0.37 4.3 0.5 2.9 GCC Commentary GCC Top Gainers## Exchange Saudi Arabia: The TASI index rose 0.5% to close at 8,044.5. Gains were led by the Agri. & Food Ind. and Transport indices, rising 1.4% and 1.2% respectively. City Cement Co. gained 3.8%, while MEDGULF was up 3.6%. IFA Hotels & Resorts Kuwait City Cement Co. Saudi Arabia 24.90 3.7 2,189.7 44.3 Dubai: The DFM index gained 0.2% to close at 2,922.2. The Insurance index rose 1.2%, while the Investment & Financial Services index was up 0.5%. Oman Insurance Co. gained 14.9%, while Agility was up 14.7%. MEDGULF Saudi Arabia 29.10 3.6 1,763.8 29.0 Saudi Public Transport Saudi Arabia 21.90 3.5 5,005.9 32.7 Abu Dhabi: The ADX benchmark index rose 0.1% to close at 3,845.7. The Insurance index gained 1.9%, while the Industrial index was up 1.6%. Al Ain Al Ahlia Insurance Co. surged 15.0%, while Eshraq properties Co. gained 9.2%. United Real Estate Co. Kuwait 0.12 3.4 211.8 0.0 GCC Top Losers Exchange Kuwait: The KSE index gained 0.3% to close at 7,946.4. The Technology index rose 2.4%, while the Consumer Services index was up 1.1%. Kuwait Hotels Co. gained 8.2%, while KIPCO Asset Management Co. was up 8.1%. NBQ Abu Dhabi 3.00 (4.8) 0.1 62.2 Ahli United Bank Kuwait 0.73 (2.7) 150.0 (2.1) Oman: The MSM index rose 0.2% to close at 6,674.1. The Industrial index gained 0.7%, while all other indices ended in green. National Gas Co. rose 9.7%, while A'Sharqiya Investment Holding Co. was up 5.5%. Al Hassan G I Shaker Saudi Arabia 74.25 (2.3) 213.6 15.1 Mabanee Co. Kuwait 1.22 (1.6) 461.6 13.7 National Ind. Co. Saudi Arabia 27.40 (1.4) 2,941.3 (1.1) Bahrain: The BHB index gained 0.3% to close at 1,201.8. The Comm. Banking index rose 0.6%, while the Hotel & Tourism index was up 0.1%. Bahrain Family Leisure gained 4.8%, while Nat. Bank of Bahrain was up 3.2%. ## # Close 1D% Vol. ‘000 YTD% 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. Close* 1D% Vol. ‘000 YTD% Close* 1D% Vol. ‘000 YTD% 63.50 Qatar Exchange Top Gainers 2.6 309.2 17.7 Widam Food Co. 48.25 (1.6) 77.7 (17.9) 11.38 (1.5) 455.3 3.5 Qatar Exchange Top Losers QNB Group 166.00 2.1 142.8 26.8 Mazaya Qatar Real Estate Dev. Industries Qatar 159.50 1.9 544.9 13.1 Commercial Bank of Qatar 66.30 (1.3) 854.6 (6.5) Gulf International Services 58.60 1.7 238.8 95.3 Doha Insurance Co. 25.00 (1.0) 229.7 1.8 Qatar & Oman Investment Co. 12.35 1.6 260.8 (0.3) Aamal Co. 14.25 (0.8) 45.9 4.7 YTD% Close* 1D% Vol. ‘000 YTD% Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 United Development Co. 22.00 1.0 1,665.6 23.6 Industries Qatar 159.50 1.9 86,373.5 13.1 Commercial Bank of Qatar 66.30 (1.3) 854.6 (6.5) Commercial Bank of Qatar 66.30 (1.3) 56,411.1 (6.5) Qatar Exchange Top Vol. Trades 26.80 Industries Qatar Mazaya Qatar Real Estate Dev. 0.8 599.8 (2.4) United Development Co. 159.50 Barwa Real Estate Co. 1.9 544.9 13.1 QNB Group 11.38 (1.5) 455.3 3.5 Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain 1.0 36,516.5 23.6 2.1 23,520.1 26.8 63.50 2.6 19,312.1 17.7 Source: Bloomberg (* in QR) Source: Bloomberg (* in QR) Regional Indices Qatar Insurance Co. 22.00 166.00 Close 1D% WTD% MTD% YTD% 9,837.49 2,922.18 3,845.72 8,044.47 7,946.39 6,674.07 1,201.79 0.8 0.2 0.1 0.5 0.3 0.2 0.3 1.9 0.4 (0.9) (1.5) (0.1) 0.1 (0.1) 2.4 5.8 0.1 1.0 2.3 0.4 0.7 17.7 80.1 46.2 18.3 33.9 15.9 12.8 Exch. Val. Traded ($ mn) 104.77 126.95 159.09 1,212.38 130.64 31.30 0.63 Exchange Mkt. Cap. ($ mn) 146,444.1 70,176.2 111,348.1 433,772.6 110,906.7 23,774.7 16,923.3 P/E** P/B** 12.6 15.9 10.8 16.4 19.1 10.8 8.2 1.7 1.2 1.3 2.1 1.3 1.6 0.8 Dividend Yield 4.7 3.1 4.7 3.6 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 0.8% to close at 9,837.5. The Insurance and Industrials 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 63.07% 73.59% (40,147,499.44) Non-Qatari  Qatar Insurance Co. and QNB Group were the top gainers, rising 2.6% and 2.1% respectively. Among the top losers, Widam Food Co. fell 1.6%, while Mazaya Qatar Real Estate Dev. declined 1.5%. Buy %* 36.94% 26.41% 40,147,499.44 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Thursday declined by 7.2% to 8.0mn from 8.7mn on Wednesday. However, as compared to the 30day moving average of 6.5mn, volume for the day was 23.2% higher. United Development Co. and Commercial Bank of Qatar were the most active stocks, contributing 20.7% and 10.6% to the total volume respectively. Earnings and Global Economic Data Earnings Releases Company Market Currency Revenue (mn) 3Q2013 % Change YoY Operating Profit (mn) 3Q2013 % Change YoY Net Profit (mn) 3Q2013 % Change YoY Saudi Cable Co. (SCC) Weqaya Takaful Insurance & Reinsurance Co. Saudi Indian Company for Cooperative Insurance Emirates Integrated Telecomm. Co. (EITC) Saudi Arabia SR – – -14.4 27.9% -8.0 -41.3% Saudi Arabia SR 66.9 -14.8% – – – – Saudi Arabia SR 22.5 -11.6% – – – – Dubai AED 2,643.0 8.0% 1,064.0 11.2% 474.0 45.0% Dubai Investments (DI) Ras Al Khaimah Ceramic Co. (RAK Ceramics) Dubai AED 630.8 11.1% – – 161.1 97.8% Abu Dhabi AED 922.3 7.1% 90.5 22.1% 72.0 152% Abu Dhabi Aviation (ADA) Ras Al Khaimah Poultry & Feeding Co. (Rapco) Gulf Pharmaceutical Industries (Julphar) Abu Dhabi AED 392.4 -4.5% 94.7 8.1% 61.5 73.9% Abu Dhabi AED 11.8 89.8% – – – -97.0% Abu Dhabi AED 307.0 13.0% – – 50.2 17.9% RAK Properties* Oman Investment & Finance Co. (OIFC)** Gulf International Chemicals (GIC)* Port Services Corporation (PSC)* Abu Dhabi AED 170.4 -67.8% – – 70.7 -17.9% Oman OMR – – – – 3.2 227.3% Oman ONR 2.7 10.7% – – 0.3 9.1% Oman OMR 19.1 6.9% – – 4.9 4.4% Bahrain Cinema Co. (BCC) Bahrain BHD – – – – 1.5 20.3% Source: Company data, DFM, ADX, MSM (* results for nine months ended Sept 2013, ** results for Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 10/31 US US Treasury Monthly Budget Statement September $75.1B $69.0B $75.2B 10/31 US Department of Labor Initial Jobless Claims 26-October 340K 338K 350K 10/31 US Department of Labor Continuing Claims 19-October 2881K 2870K 2850K 10/31 US Bloomberg Bloomberg Consumer Comfort 27-October 11/02 US Bloomberg Total Vehicle Sales October 11/02 US Bloomberg Domestic Vehicle Sales October 11.73M 11.90M 11.66M 10/31 EU Eurostat Unemployment Rate September 12.20% 12.00% 12.20% 10/31 EU Eurostat CPI Estimate YoY October 0.70% 1.10% 1.10% 10/31 EU Eurostat CPI Core YoY October 0.80% 1.00% 1.00% 10/31 France INSEE PPI MoM September 0.30% – 0.10% 10/31 France INSEE PPI YoY September -0.80% 0.00% -0.90% 10/31 France INSEE Consumer Spending MoM September -0.10% 0.30% -0.30% 10/31 France INSEE Consumer Spending YoY September -0.10% 0.20% 0.10% 10/31 Germany Destasis Retail Sales MoM September -0.40% 0.40% -0.20% 10/31 Germany Destasis Retail Sales YoY September 0.20% 1.10% 0.40% 10/31 Germany Destasis Import Price Index MoM September 0.00% 0.10% 0.10% -37.6 – -36.1 15.15M 15.43M 15.21M Page 2 of 7
  3. 3. 10/31 Germany Destasis Import Price Index YoY September -2.80% -2.80% 10/31 Germany GfK GfK Consumer Confidence November 7.0 7.2 -3.40% 7.1 10/31 UK GfK NOP (UK) GfK Consumer Confidence October -11 -8 -10 10/31 UK Nationwide Building Soc. Nationwide House PX MoM October 1.00% 0.70% 0.90% 10/31 UK Nationwide Building Soc. Nationwide House Px NSA YoY October 5.80% 5.10% 5.00% 10/31 Spain Ministerio de Fomento Housing Permits MoM August -53.70% – 26.10% 10/31 Spain Ministerio de Fomento Housing Permits YoY August -27.10% – -1.20% 10/31 Spain Bank of Spain Current Account Balance August 2.5B – 1.6B 10/31 Italy ISTAT Unemployment Rate September 12.50% 12.30% 12.40% 11/01 China CFLP Manufacturing PMI October 51.4 51.2 51.1 11/01 China HSBC/Markit Manufacturing PMI October 50.9 50.7 50.2 10/31 Japan Markit/JMMA Manufacturing PMI October 54.2 – 52.5 10/31 Japan Labor Cash Earnings YoY September 0.10% -0.40% -0.90% 10/31 Japan Housing Starts YoY September 19.40% 12.10% 8.80% 10/31 Japan HSBC BANK PLC Markit/Nomura Securities Co.,L Ministry of Health, Labour & Welfare Ministry of Land, Infra. & Tourism Ministry of Land, Infra. & Tourism Construction Orders YoY September 89.80% – 21.40% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  S&P Dow Jones indices to upgrade Qatar, UAE to emerging market status – S&P Dow Jones Indices has decided to promote both Qatar and the UAE to emerging market status from frontier market category with effect from September 2014. The company cited Qatar's efforts to raise foreign ownership limits for stocks, though the limits were still below the levels of most emerging markets, as well as reforms to settlement systems and trading facilities. S&P Dow Jones Indices further stated the UAE‟s current foreign ownership limit of 49% is satisfactory and it expects that this limit will be relaxed over the coming years. (GulfBase.com, Reuters)  EIU: Qatar to keep riyal pegged to dollar – According to the Economist Intelligence Unit (EIU), the Qatari riyal will remain pegged to the US dollar and a revaluation is not expected in the next financial year as well. EIU said the currency is well supported by Qatar‟s hydrocarbons revenue and foreign assets. Plans to create a single currency for the Gulf region are unlikely to be realized over the next five years. Qatar‟s real economic growth would remain robust, averaging 4.5% during 2012-30 on a slowing trend. Qatar‟s population will steadily grow to reach 3.4mn by 2030, largely due to immigration. As a result, growth in real GDP per head will be much slower than headline growth. Qatar has also moved to 20th position from 21st in the EIU global ranking on business environment, driven by the rapid development of its infrastructure, increased availability of financing, as well as strong policies on tax and trade. Qatar tops the group of 17 countries in business environment rankings for EIU‟s forecast period of 2013-17. EIU said Qatar has the lowest non-performing loan ratio in the region, at around 2%. Substantial surpluses will enable Qatar to meet its debtobligations easily, despite having borrowed heavily to finance the development of new gas and petrochemical facilities. (GulfTimes.com)  QE-listed companies report 6.67% rise in net profit for 9M2013 – The 41 companies listed on the Qatar Exchange (QE) surpassed their net profitability in the first nine months of this year. The 41 listed companies have reported a 6.67% growth in net profits against 1.88% in the comparable period of 2012. Their cumulative net profits stood at QR30.14bn during JanuarySeptember as compared to QR28.26bn in 9M2012. (GulfTimes.com, QE)  Qatargas: China, India demand raises LNG prospects – Qatargas CEO Sheikh Khalid bin Khalifa al-Thani said demand for cleaner and flexible energy from emerging economies such as China and India provides brighter prospects for liquefied natural gas. In 2012, Asia imported an additional 15.6mn tons of LNG over 2011, which represents a YoY increase of 10%. Due to its nuclear reactor shutdown, Japan alone represented over 50% of the Asian LNG consumption growth with imports reaching 87.5mn tons in 2012. Over the next three years, new LNG receiving terminals with a total capacity of 23mn tons per year will be added in China. Similarly, India is expanding its LNG receiving capacity and its gas pipeline network to pave the way for increased imports over the coming years. About LNG pricing, the Qatargas CEO said gas prices will remain regionalized for the foreseeable future and the North American exports will not attain the scale and pace that would force a significant change in the current pricing structure in Europe and Asia. (GulfTimes.com)  Qatar Holding builds small stakes in BofA, Samsung – According to sources, Qatar Holding has built small stakes in the Bank of America (BofA) and Samsung Electronics, as the sovereign wealth fund continues on its strategy of gaining minority stakes in large global companies. The fund, one of the world‟s most prolific investors, has a stake worth about $1bn in Bank of America, while its stake in Samsung is worth around $200-300mn, sources said. In recent months, Qatar has picked up minority stakes in companies such as oil giant Royal Dutch Shell, jewelry maker Tiffany & Co, and German manufacturer Siemens. (Gulf-Times)  Credit Suisse exchanges $4.5bn Qatar notes – Credit Suisse Group, leading Swiss bank, said it has exchanged $4.5bn worth of notes held by the Qatar Investment Authority for debt that qualifies as capital under stricter rules. The Zurich-based bank and Qatari sovereign wealth fund have swapped Tier 1 capital notes for contingent-convertible bonds on October 23 in a transaction approved by the Swiss financial regulator. The swap helps the Swiss bank to meet demands from the regulator to boost capital reserves that can better absorb losses amid turmoil such as the meltdown of the US housing market. (GulfTimes.com)  QNB offers new package for retired Qataris – QNB has introduced a new package of banking benefits aimed at retired Page 3 of 7
  4. 4. Qataris for providing the best priced financial services. The program provides a number of benefits that include a 25% discounted interest rate on QNB credit cards, a 50% discount on all bank fees, bonus rate on fixed deposits, a discount on personal & vehicle loan interest rates, and reduced cost car insurance on QNB vehicle loans. (Gulf-Times.com)  Doha Bank targets tripling overseas profit share on growth in Asia – Doha Bank, Qatar‟s fifth-largest lender by assets, aims to triple its profit from overseas activities to as much as 30% of net income by 2015 as trade between Gulf countries and Asia increase. The bank‟s CEO Raghavan Seetharaman said the bank‟s expansion (excluding acquisitions) is expected to raise overseas profit from about 10% now to 30%. He said the lender is seeking branch licenses in India and China, which top its list of foreign markets to establish a foothold in. Meanwhile, Doha Bank plans to issue a QR2bn Tier 1 perpetual bond by the end of March 2014 to bolster lending and fund expansion abroad. Earlier, it had attracted QR2.8bn in a rights offer in March this year and in May reiterated plans to sell shares in London. (GulfTimes.com)  Nakilat appoints new members to the top management team – Nakilat board of directors has appointed Eng. Abdullah Fadhalah Al-Sulaiti as Nakilat‟s Managing Director. The board also has appointed Mr. Muhammad Ghannam as an „Expert‟ in the Managing Director Office. (QE)  FIC invites Qataris to invest in German equity market – Germany is seeking Qatari investors, banks and businesses to invest in its equity market. In this regard, the German Equity Forum is being organized November 11 to 13 in Frankfurt. The event organizer Frankfurt International Consulting (FIC) said by investing in or partnering with German companies, Qatari businesses can profit in multiple ways including gaining product know-how, technology transfer, and employees exchange programs. Further, FIC said the transfer of technology from Germany plays a crucial role in achieving Qatar‟s ambitious National Vision 2030. (Gulf-Times.com) International  UK growth forecasts raised by CBI – The Confederation of British Industry (CBI) raised its forecasts for the economic growth in the UK, and said it expects business investment and trade to aid the recovery starting next year. In its quarterly report, the business lobby expected the UK economy to expand 1.4% this year and 2.4% in 2014, which is up from 1.2% and 2.3% projected earlier in August. The group also said that unemployment – which the Bank of England has set as the key indicator for its guidance on policy – will decline to 7.2% by the end of 2015 from its current 7.7%. (Bloomberg)  Fitch revises Spain’s outlook to Stable – Fitch Ratings raised its outlook on Spain‟s rating to Stable from Negative, saying the nation‟s overhaul of banks has advanced well and its financing conditions have improved. The rating agency affirmed its BBB rating, leaving the country at the second-lowest investment grade. Spain has improved its policy track record, with improvements to its labor market, pension system and budget, it said. Fitch said the recovery from the prolonged recession came sooner than it had forecast, and the adjustment from a current account deficit to surplus has been faster than expected. However, the Spanish economy will remain weak, growing 0.5% in 2014, less than the government‟s 0.7% estimate. (Bloomberg)  US Fed to test banks for interest rate rise, housing collapse – The Federal Reserve said it will examine how the biggest US banks will react to a jump in long-term interest rates and another housing crash during the next round of stress-test scenarios designed to monitor the US financial system‟s ability to withstand economic shocks. The central bank will gauge bank resilience against declines in the prices of high-risk, high-yield loans and debt, and some high-priced real estate markets around the country. The Fed is using these tests to encourage the 30 biggest US banks to build capital cushions against economic turmoil. The Fed also inserted a test for large trading and clearing banks on counterparty default. Meanwhile, the 18 bank holding companies tested previously have increased their aggregate Tier 1 common capital to $836bn in 2Q2013 from $392bn in 1Q2009, the Fed said. Their Tier 1 common ratio has more than doubled to a weighted average of 11.1% from 5.3%. (Bloomberg)  Inflation risk seen when Fed unwinds balance sheet – The Federal Reserve Bank of Philadelphia President Charles Plosser said inflation will be a concern as the US Fed unwinds its balance sheet following unprecedented asset purchases. Plosser said over $2 trillion of excess reserves have been created, which are sitting on the balance sheets of the banks. These reserves will become inflationary when they start to flow out of the banking system, which can worries about inflation. The Fed‟s preferred gauge of inflation, the personal consumption expenditures index, rose 1.2% in August, but it has not breached the 2% target since March 2012. (Bloomberg)  Ukraine rating Cut to Greek level by S&P as devaluation seen – Ukraine‟s debt rating was cut to the same junk level as Greece by Standard & Poor‟s, which said the government is struggling to weather a shortage of foreign currency, increasing the likelihood of a hryvnia devaluation. The rating company lowered Ukraine‟s long-term sovereign credit rating one step to B-, six levels below investment grade, with a negative outlook. That leaves the eastern European nation on par with Greece and Belize, both of which have restructured debt in the past several years. S&P said “devaluation of the Ukrainian hryvnia has become more likely. The potential magnitude of this has also increased in light of the government‟s defense of the exchange rate through the depletion of foreign-currency reserves.” (Bloomberg)  RBS avoids break-up by creating a £38bn internal bad bank – The Royal Bank of Scotland (RBS) is to create an internal “bad bank” to fence off its riskiest assets, as part of a raft of measures designed to heal its relationship with the British government and speed up its eventual privatization. The government is keen to offload its stakes in RBS and Lloyds Banking Group as soon as possible, after pumping a combined £66bn ($106bn) into these banks to keep them afloat during the 2008 financial crisis. Britain began selling shares in Lloyds at a profit earlier this year, but a sale of its 81% stake in RBS is much further off, with taxpayers still sitting on a paper loss of nearly £14bn at current prices. The government stopped short of ordering a formal break-up of the bank, which had been advocated by the former Bank of England Governor Mervyn King, and by Nigel Lawson, a former UK finance minister. They had argued that the break-up would leave the bank better placed to lend and support the UK economy, but opponents said it would be too expensive and complicated. (Gulf-Times.com) Regional  Acwa Power plans to go public, to invest $3bn in solar plants – Saudi-based Acwa Power is planning for a stock market listing and expects to invest over $3bn in solar plants over the next five years. (GulfBase.com)  Kingdom plans to expand its port capacity to meet rising demand – The Saudi Ports Authority‟s (SPA) General Manager Musaed Al Darees said that the Kingdom is planning to expand Page 4 of 7
  5. 5. its ports handling capacity by around 29mn tons in order to meet the steady rise in trade demand. The expansion, which will be launched shortly, will raise the combined capacity of the Western Red Sea port of Jeddah and other sea ports to nearly 500mn tons per year from its current 471mn tons. (GulfBase.com) mechanism could help fund managers to raise assets under management by tapping into a wider client pool and provide a geographically diverse range of products to their investors. This plan is part of a bilateral agreement that was signed between the two central banks, aimed at building closer economic ties with a focus on Islamic finance. (GulfBase.com)  IDB plans to invest $27.3mn in Kingdom’s dairy market – The Irish Dairy Board Cooperative Limited (IDB) is planning to invest $27.3mn in Saudi Arabia by acquiring 75% stake in Al Wazeen Trading. IDB is also planning to develop a new cheese manufacturing plant at this facility, which will produce a range of fresh white cheeses that appeal to local market tastes. This new facility will initially supply dairy products to Saudi Arabian market. This facility will also include an Innovation Hub for continued R&D on white cheese technologies. (Bloomberg)  Mashreqbank signs partnership deal with UNB for AED392mn syndicated contracting facility – Mashreqbank has entered into a partnership agreement with the Union National Bank (UNB) to raise a syndicated contracting facility worth AED392mn for the expansion of Midfield Terminal Complex at Abu Dhabi International Airport. (Bloomberg)  STC signs deal with Wataniya to fully acquire BRAVO – The Saudi Telecom Company (STC) has entered into an agreement with Wataniya Group to acquire the full ownership of the Public Telecommunications Company (BRAVO). Under this agreement, Wataniya will pay SR244mn to settle STC‟s dues and transfer all the assets of Bravo to STC. This acquisition will enable STC to extract synergies by bundling offerings and significantly improve the quality of service to its customers. (Tadawul)  Ashmore in talks to sell 65% stake in GEMS – UK-based Ashmore Group is in talks to sell its 65% stake in Saudi-based Global Environmental Management Services (GEMS). This sale is likely to raise $250-350mn. Ashmore has appointed the Bank of America Merrill Lynch to assist with this sale process. (Reuters)  City Cement’s BoD recommends SR189mn dividends – The City Cement Company‟s board of directors has recommended the distribution of dividends worth SR189mn (SR1 per share). The company‟s shareholders who are registered with the Securities Depository Center as on November 5, 2013 will be eligible for this dividend, which will be distributed on November 20, 2013. (Tadawul)  SAICO obtains SAMA’s approval for insurance product – The Saudi Arabian Cooperative Insurance Company (SAICO) has obtained a temporary approval from the Saudi Arabian Monetary Agency (SAMA) to use its Motor Third Party Liability insurance product for three months. (Tadawul)  GGCI receives SAMA’s approval to use insurance products – The Gulf General Cooperative Insurance Company (GGCI) has obtained a temporary approval from SAMA to use Motor Comprehensive – Commercial, Motor – Comprehensive and Motor TPL insurance products for three months. (Tadawul)  Aldar eyes rentals, smaller projects post-merger – Aldar Properties, Abu Dhabi‟s leading real estate developer, will focus on rental income and smaller projects instead of large developments in order to avoid the risk of becoming overstretched again, a senior executive said. The company‟s Chief Development Officer said after the merger with Sorouh, Aldar will focus more on earning income from malls, hotels and other rental properties owned by it, along with building small developments. Last year, Aldar merged with its smaller rival Sorouh Real Estate to create a large business with $13bn worth of assets. (Gulf-Times.com)  UAE, Malaysia work on fund passporting mechanism to facilitate fund sales – The Bank Negara Malaysia‟s Governor Zeti Akhtar Aziz said that the central banks of Malaysia and the UAE are working on a fund passporting mechanism that will facilitate sale of funds from one country to the other. This  UNB reports AED450.3mn net profit in 3Q2013 – The Union National Bank has reported a net profit of AED450.3mn in 3Q2013, indicating a decline of 14.8% YoY. EPS stood at AED0.5 for the nine months ended on September 30, 2013 as compared to AED0.51 for the nine months ended on September 30, 2012. The bank‟s net interest income rose by 5.6% YoY to AED595.4mn. However, total assets at the end of September 2013 stood at AED85.8bn, reflecting a YTD decrease of 1.5%. Loan & advances rose by 5.6% YTD to AED60.6bn, while customer deposits were up 1.3% YTD to AED64.3bn. (ADX)  Hill International gets 2-year contract extension from ADNOC – US-based Hill International has received a two-year contract extension worth $13.3mn to continue providing project management consultancy services for the new headquarters complex of the Abu Dhabi National Oil Company (ADNOC). ADNOC‟s new headquarters is expected to be completed by January 2015. (Bloomberg)  NBAD plans to establish 8 new banking hubs – The National Bank of Abu Dhabi (NBAD) is planning to establish eight banking hubs in Abu Dhabi, Mumbai, Lagos, Singapore, Hong Kong, London, Paris and Washington DC in order to achieve its plans for domestic and international expansion. (Bloomberg)  NBF plans to open trade finance offices in Africa – The National Bank of Fujairah (NBF) is planning to open trade finance offices in Africa as part of its foreign business expansion plan. NBF is also planning to expand its current network of 14 branches in the UAE with a few new ones in 2014. (GulfBase.com)  Etihad temporarily suspends flights to Tripoli – Etihad Airways has temporarily suspended its three weekly passenger flights and two weekly cargo flights to Tripoli airport in Libya due to safety & operational challenges. (Bloomberg)  Etihad Rail enters into MoU with RSA Logistics – Etihad Rail has entered into MoU with RSA Logistics. This MoU will pave way for RSA to use Etihad‟s rail network for its transport needs in the UAE as well as cross-border services in other GCC countries. (GulfBase.com)  RAKBANK appoints new CEO – The National Bank of Ras Al Khaimah‟s (RAKBANK) CEO Graham Honeybill has resigned from his position effective October 31, 2013. Peter William England, the CEO Designate, will take over as the CEO of the bank from November 1, 2013. (ADX)  Gulf Bank reports KD24.1mn net profit for 9M2013 – The Gulf Bank has reported a net profit of KD24.1mn for the nine months ended on September 30, 2013, reflecting an increase of 7.6% YoY. At the end of September 30, 2013, the bank‟s total assets stood at KD5.06bn, while deposits were at KD4.2bn. (GulfBase.com)  HSBC Bank Oman reports OMR12.7mn net profit in 9M2013 – HSBC Bank Oman has reported a net profit of OMR12.7mn for Page 5 of 7
  6. 6. the nine months ended on September 30, 2013, indicating 19.8% YoY growth. The bank‟s net interest income rose 34.8% YoY to OMR36mn. Loan & advances declined 16.4% YoY to OMR1.02bn, while customer deposits were up 3.2% YoY to OMR1.93bn for the nine months ended on September 30, 2013. (MSM)  BQCA decides to redesign 40 kilometer strategic artery – The Bahrain-Qatar Causeway Authority‟s (BQCA) board has decided to redesign the 40-kilometer strategic artery between the two countries. The redesigned blueprint will be ready when work on the project begins. (GulfBase.com)  AUB looks for acquisitions to expand in Middle East – Bahrain-based Ahli United Bank‟s (AUB) CEO Adel El-Labban said that the bank is looking for acquisitions in its existing markets as well as among new ones in order to develop its network across the Middle East region. (GulfBase.com) Page 6 of 7
  7. 7. Rebased Performance Daily Index Performance 1.2% 0.8% 0.8% 0.5% 0.3% Bahrain Kuwait Abu Dhabi Asset/Currency Performance 0.2% 0.1% Oman Source: Bloomberg Qatar 0.0% Saudi Arabia 0.2% 1D% WTD% Dubai 0.3% 0.4% Source: Bloomberg Close ($) 1D% WTD% YTD% Global Indices Performance Gold/Ounce 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