8 December Daily Market Report


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8 December Daily Market Report

  1. 1. QE Intra-Day Movement Market Indicators 10,460 10,440 10,420 05 Dec 13 %Chg. 351.8 555,688.8 11.3 4,693 38 24:10 471.4 553,978.1 17.9 5,573 40 26:11 (25.4) 0.3 (37.2) (15.8) (5.0) – Market Indices 10,400 10,380 9:30 08 Dec 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 0.5% to close at 10,436.5. Gains were led by the Real Estate and Telecoms indices, gaining 2.0% and 1.2% respectively. Top gainers were Barwa Real Estate Co. and Qatar General Ins. & Rein. Co., rising 3.3% and 3.1% respectively. Among the top losers, Qatar German Co. for Med. Dev. fell 1.8%, while Qatar Navigation 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 14,911.40 2,593.12 2,465.19 3,392.18 1,917.98 2,038.75 2,374.29 1,478.35 5,964.09 3,086.86 0.5 0.4 0.3 0.3 (0.7) 2.0 0.7 1.2 (0.3) 0.6 0.5 0.4 0.3 0.3 (0.7) 2.0 0.7 1.2 (0.3) 0.6 31.8 28.7 26.5 29.1 43.1 26.5 20.9 38.8 27.7 24.1 N/A 13.1 13.2 12.3 13.0 14.0 9.7 20.1 22.6 16.0 GCC Commentary GCC Top Gainers## Exchange Saudi Arabia: The TASI index gained 0.9% to close at 8,321.3. Gains were led by the Trans. and Agri. & Food Ind. indices, rising 3.7% and 1.9% respectively. Saudi Public Transport gained 7.1%, while Bahri was up 3.7%. IFA Hotels & Resorts Kuwait Saudi Public Transport Dubai: The DFM index rose 1.4% to close at 3,056.0. The Real Estate & Construction index gained 2.0%, while the Banking index was up 1.2%. Dubai National Ins. & Rein. rose 4.6%, while Al Salam Bank - Bahrain was up 3.7%. Abu Dhabi: The ADX benchmark index gained 1.3% to close at 3,989.6. The Energy and Real Estate indices rose 3.1% each. Abu Dhabi Ship Building Co. and Union Cement Co. surged 14.8% each. Al Mouwasat Med. Ser. GCC Top Losers Exchange Kuwait: The KSE index rose 0.1% to close at 7,772.7. The Consumer Services index gained 0.8%, while the Technology index was up 0.7%. Gulf Glass Manufacturing Co. rose 7.6%, while IFA Hotels & Resorts was up 7.4%. Kuwait Finance House Kuwait 0.79 (2.5) 3,193.3 14.1 Sharjah Islamic Bank Abu Dhabi 1.50 (2.0) 3,911.1 63.0 Oman: The MSM index gained marginally to close at 6,770.2. The Industrial and Banking & Investment indices rose 0.1% each. National Securities Co. gained 4.4%, while National Gas Co. was up 3.4%. Al Tayyar Travel Group Saudi Arabia 97.25 (1.8) 415.3 130.6 Mabanee Co. Kuwait 1.14 (1.7) 510.8 6.3 Kuwait Int. Bank Kuwait 0.30 (1.7) 125.9 0.0 Bahrain: The BHB index rose 0.2% to close at 1,200.2. The Investment and Commercial Banking indices gained 0.5% each. Al Salam Bank rose 3.0%, while Al Baraka Banking Group was up 2.9%. Barwa Real Estate Co. Vol. ‘000 7.4 1,161.9 (18.2) Saudi Arabia 25.70 7.1 3,344.7 55.8 Bahri Saudi Arabia 27.90 3.7 4,188.9 45.7 Aseer Co. Saudi Arabia 23.40 3.5 3,147.7 41.4 Saudi Arabia 91.50 3.4 98.9 70.2 ## # 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) Close* 1D% Vol. ‘000 YTD% 14.61 (1.8) 9.1 (1.2) 7.6 Qatar Navigation 85.70 (1.5) 28.4 35.8 1D% Vol. ‘000 YTD% 3.3 3,295.0 13.8 1.5 1D% 0.29 Qatar German Co. for Med. Dev. Close* 31.25 Qatar Exchange Top Gainers Close# Qatar Exchange Top Losers Qatar General Ins. & Rein. Co. 49.50 3.1 Zad Holding Co. 70.00 3.1 0.6 19.0 National Leasing 31.05 (0.8) 169.7 (31.3) Salam International Investment Co. 12.49 1.6 813.0 (1.3) Qatar Fuel Co. 285.10 (0.6) 23.7 29.6 Vodafone Qatar 12.00 1.3 1,961.9 43.7 Al Meera Consumer Goods Co. 135.30 (0.5) 9.8 10.5 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% 31.25 3.3 102,108.9 13.8 Close* 1D% Vol. ‘000 YTD% Barwa Real Estate Co. 31.25 3.3 3,295.0 13.8 Barwa Real Estate Co. Vodafone Qatar 12.00 1.3 1,961.9 43.7 Industries Qatar 166.40 0.2 32,706.7 18.0 Mazaya Qatar Real Estate Dev. 11.83 0.5 1,028.2 7.5 Masraf Al Rayan 34.30 0.7 28,442.3 38.4 Masraf Al Rayan 34.30 0.7 829.9 38.4 Vodafone Qatar 12.00 1.3 23,580.7 43.7 Salam International Investment Co. 12.49 1.6 813.0 (1.3) QNB Group 170.50 0.3 19,734.6 30.3 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% 10,436.52 3,055.95 3,989.62 8,321.33 7,772.66 6,770.24 1,200.18 0.5 1.4 1.3 0.9 0.1 0.0 0.2 0.5 1.4 1.3 0.9 0.1 0.0 0.2 0.6 3.7 3.6 (0.0) (0.2) 0.7 (0.7) 24.9 88.3 51.6 22.4 31.0 17.5 12.6 Exch. Val. Traded ($ mn) 151.95 237.54 226.20 1,084.54 128.70 16.84 0.99 Exchange Mkt. Cap. ($ mn) 152,592.1 72,041.3 113,658.3 452,676.2 109,539.6 24,229.5 49,664.0 P/E** P/B** 13.3 18.0 11.1 17.1 17.0 10.6 8.0 1.8 1.2 1.4 2.1 1.2 1.6 0.8 Dividend Yield 4.4 2.9 4.5 3.5 3.6 3.8 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 5
  2. 2. Qatar Market Commentary  The QE index rose 0.5% to close at 10,436.5. The Real Estate and Telecoms indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.  Barwa Real Estate Co. and Qatar General Ins. & Rein. Co. were the top gainers, rising 3.3% and 3.1% respectively. Among the top losers, Qatar German Co. for Med. Dev. fell 1.8%, while Qatar Navigation declined 1.5%. Overall Activity Buy %* Sell %* Net (QR) Qatari 70.51% 78.67% (28,692,297.95) Non-Qatari 29.49% 21.34% 28,692,297.95 Source: Qatar Exchange (* as a % of traded value)  Volume of shares traded on Sunday declined by 37.2% to 11.3mn from 17.9mn on Thursday. Further, as compared to the 30-day moving average of 11.8mn, volume for the day was 4.6% lower. Barwa Real Estate Co. and Vodafone Qatar were the most active stocks, contributing 29.3% and 17.4% to the total volume respectively. Ratings Ratings Updates Company HSBC Bank Oman Agency Market Type* Fitch Oman IDR Grade/ SR/ VR* Old Rating New Rating Rating Change Outlook Outlook Change A+/A+/BB A+/A+/BB+* * – – 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) (*– Rating revised) News Qatar  QNB: Qatar’s non-energy sector to form half of GDP by 2015 – QNB Group’s Head of Economics Joannes Mongardini said that the country’s diversifying economy will soon reach a key milestone with its non-hydrocarbon sector being worth more than half of Qatar’s GDP by 2015. In 2012, Qatar’s GDP stood at $192bn, of which the hydrocarbon (oil & gas) sector accounted for 58%. Qatar’s non-hydrocarbon sector is slated to grow from 42% in 2012 to more than 50% by 2015 due to the mega infrastructure projects being implemented for the FIFA World Cup 2022. Meanwhile, Qatar’s real GDP is expected to grow by 6.5% in 2013 and 6.8% in 2014, with 240,000 jobs expected to be added in 2014. (Bloomberg)  QP signs MoU to construct butadiene extraction, elastomer complex – Qatar Petroleum (QP) has entered into a MoU with Zeon Corporation and Mitsui & Co. Ltd for the construction of its butadiene extraction and elastomer complex in Qatar’s industrial city of Ras Laffan. This plant will produce rubber from chemicals made at the planned petrochemical complex. (Bloomberg)  QGRI to study converting QGHC into private shareholding – The Qatar General Insurance & Reinsurance Company’s (QGRI) management has decided to carry out a study to convert the Qatar General Holding Company (QGHC) from a “one person company” to a “private shareholding company”. This move will separate its real estate and investment activities into a separate legal entity. (QE)  Economic Zones Company renamed as Manateq – The state-owned Economic Zones Company will be known as “Manateq” from now on. Manateq and its economic zones will focus on creating the right environment for the smooth and longterm operation of its clients along with facilitating opportunities for excellent returns. (Gulf-Times.com)  Qatar, UAE markets’ upgrade to bring in $350mn from ETFs – According to Abu Dhabi Investment Company (Invest AD), the global index compiler MSCI's upgrading of Qatar and the UAE markets to “emerging” status would bring in around $350mn from exchange traded funds (ETFs) alone. The MSCI upgrade from frontier status to emerging market status for the UAE and Qatar would also encourage greater participation by active emerging market institutional investors over the long term. (GulfTimes.com)  NLCS’ BoD to meet on December 11 – Alijarah Holding’s (NLCS) board of directors will meet on December 11, 2013 to discuss routine agenda matters. (QE)  QU’s Al-Jarrah appointed as Commercial Bank Chair of Banking – The Commercial Bank of Qatar appointed Idries Mohamed al-Jarrah, Professor of Finance at Qatar University’s Department of Finance & Economics, as the “Commercial Bank Chair of Banking”. Professor al-Jarrah holds the position of endowed professor and works in Qatar University’s College of Business and Economics. As the Chair of Banking, Professor alJarrah will lead studies in the field of banking and finance, which will provide the Qatari banking industry with suitably qualified graduates. (Gulf-Times.com) International  HSBC considers floating UK banking business – According to the Financial Times, HSBC Holdings Plc is considering the flotation of up to 30% of its British retail and commercial banking arm, in a move to cope with the proposed new rules that force British banks to ring-fence their retail arms. FT said the plan was at an early stage, but the matter had been discussed with investors and informally at the board level. The FT report added that investors estimate such a business could float with a market capitalization of around £20bn ($32.7bn).  European banks trim risk but fail to raise provisions ahead of EU review – Most of Europe's big banks shed their risky assets in the quarter ended September 2013, but they are yet to take extra provisions against doubtful loans in time for a critical review by regulators. A Reuters analysis of the third-quarter results of Europe's 30 largest banks found that almost two-thirds of the 27 that report detailed quarterly figures said their balance sheets were less risky at the end of September than at the end of June, which means that they need less capital. However, almost two-thirds of the banks took lower charges for loan Page 2 of 5
  3. 3. losses in the third quarter than a year earlier, and the coverage ratio rose only marginally. More action is expected in the fourth quarter, as banks learn more about the standards the ECB will apply in the Eurozone and national regulators will apply elsewhere. (Reuters)  Japan posts slower growth in 3Q2013, surprise currentaccount deficit – Japan’s third-quarter growth was slower than initially estimated, as annualized GDP growth was revised downwards to 1.1% QoQ from 1.9% earlier. Further, the nation posted a surprise ¥128bn ($1.2bn) current-account deficit, while the median estimate was a surplus of ¥149bn. (Bloomberg)  Nobel Economics winner Fama feels risk of global recession in 2014 – According to Eugene Fama – this year's Nobel Prize winner for Economics – highly indebted governments in the US and Europe posed a constant threat to the global economy. Fama said that a time will come when the financial markets will say none of their debts is credible anymore and they can't finance themselves. Fama stated that he was not reassured from the strong US labor market data, as unemployment rate has fallen to 7% because people have given up looking for jobs. (Reuters) Regional  IATA: Mideast carriers post strongest traffic growth in October – The International Air Transport Association (IATA) said airlines in the Middle East have recorded their strongest YoY traffic growth in October 2013, on the back of growing demand in business and leisure travel. The load factor of Middle East airlines stayed at 75.5% in October 2013. IATA said that Middle Eastern carriers have stayed ahead of their global peers by registering a 14% growth in October 2013 and are set to contribute a significant share in carrying a record high number of 3bn passengers in the global airline industry in 2013. (GulfBase.com)  E&Y: MENA authorities move to strengthen corporate tax regime – According to Ernst & Young (E&Y), tax authorities in the Middle East & North Africa (MENA) region have enhanced scrutiny and compliance enforcement regarding withholding tax laws. MENA tax authorities have increased scrutiny and enforcement of compliance on withholding tax laws to ensure that foreign companies who do business without a business facility in the country are also subject to tax on incomes earned from the country. Further, there has been an increased focus on transfer pricing regulations to ensure that business transactions between related parties are conducted at an arm’s length. (GulfTimes.com)  WTO deal to strengthen competitive position of Saudi products – Saudi Arabia has welcomed the $1tn World Trade Organization (WTO) agreement signed in Bali recently. Saudi Commerce & Industry Minister Tawfiq Al Rabiah said this agreement will strengthen the competitive position of Saudi products and boost global trade. Further, he stated the deal will enable Saudi exporters to supply their goods in targeted markets at shorter time and at a lesser cost. (GulfBase.com)  IMF: Saudi bank credits poised to grow by 15.3% in 2014 – According to a report by the International Monetary Fund (IMF), bank credits destined for the private sector in Saudi Arabia are poised to grow by 15.3% in 2014 as compared to 15.6% in 2013, which is the highest among the GCC countries. As per the IMF report, Qatar has the second largest bank credit growth among the GCC countries forecasted at 14.7% in 2014 (12.9% in 2013), followed by Oman at 12.6% (14.3%), and the UAE at 8.4% (6%). The report showed that despite low interest rates, there is a discrepancy in the growth of bank credits offered to the private sector in the GCC region. However, financial institutions in the GCC region are characterized by solid positions despite the increasing rates of non-performing loans (NPLs) in Bahrain and the UAE in 2013. Further, the report showed that banking institutions in the GCC countries are well positioned in their capitals and have enough provisions for bad loans. IMF has appreciated banking measures taken by Saudi Arabia, which was the first GCC country to apply Basel II rules. (GulfBase.com)  Pentair to set up manufacturing, service facility in Dammam – Swiss-based Pentair has entered into a term sheet with Ali Abdullah Al Tamimi Company to set up a manufacturing and service facility in Dammam. Through this new partnership, Pentair will be able to locally manufacture some of its premium products for serving both the local and export markets. (GulfBase.com)  Almarai to acquire MJN’s shares in IPNC for SR15mn – Almarai Company announced that it will acquire the shares held by Mead Johnson Nutrition (MJN) in the International Pediatric Nutrition Company (IPNC) for SR15mn. This purchase will be financed from Almarai’s operational cash flows. (Tadawul)  SCC’s BoD recommends SR126.48mn dividends – The Saudi Chemical Company’s (SCC) board of directors has recommended the distribution of dividends worth SR126.48mn (SR2 per share), representing 20% of the face value on January 30, 2014. SCC’s shareholders, who are registered with the Securities Depository Center on January 16, 2014, will be eligible for this dividend. (Tadawul)  Dubai foreign trade hits AED1tn by end of September 2013 – Dubai's non-oil foreign trade reached a total volume of AED1.009tn by the end of Q3, compared to AED918bn for the same period in 2012. Dubai Customs statistics show that Dubai's non-oil foreign trade growth was the result of the increase in imports till Q3 of 2013; reaching AED610bn, as compared to AED546bn in the same period last year. In addition, exports and re-exports rose to AED399bn, compared to AED372bn. (Gulfbase.com)  Dubai’s non-oil foreign trade crosses AED1tn for 9M2013 – Dubai's non-oil foreign trade has crossed the AED1tn mark during January-September 2013 as compared to AED918bn in January-September 2012. According to data released by Dubai Customs, the Emirate’s imports reached AED610bn, as compared to AED546bn in the year-earlier period, with exports and re-exports rising to AED399bn from AED372bn. (Bloomberg)  DED: Tourist spending in Dubai to reach AED33bn by 2017 – Dubai’s Department of Economic Development (DED) Director General Sami Al Qamzi said the tourist spending in Dubai is expected to reach around AED33bn by 2017, while total sales are expected to increase 5.7% annually during 2013-2017. Al Qamzi said that Dubai was well on course to achieve its Tourism Vision for 2020 of attracting 20mn tourists and AED300bn in tourism revenues annually, of which a major share will come from retail sales. (Bloomberg)  DIFCA signs strategic deal with TFSA – The Dubai International Financial Centre Authority (DIFCA) has signed a strategic agreement with the Toronto Financial Services Alliance (TFSA) to foster business collaboration in their respective financial centers. Under this agreement, DIFCA and TFSA will explore avenues to jointly promote the offerings of Toronto and Dubai financial services sectors across the globe. (Bloomberg)  Dewa’s operational budget to reach AED13.151bn in 2014 – The Dubai Electricity & Water Authority’s (Dewa) CEO Saeed Page 3 of 5
  4. 4. Mohammed Al Tayer said Dewa’s operational budget will reach AED13.151bn in 2014, while its capital administrative budget will touch AED352mn. Al Tayer said that expenditure on projects and purchases will reach AED7.057bn in 2014. The growing budget expenditure represents Dewa’s pursuit to ensure adequate electricity and water requirements for supporting the Emirate’s ambitious development plans. (GulfBase.com)  Al Noor Hospitals plans to expand in Dubai – Al Noor Hospitals Group’s Chief Strategy Officer Sami Alom said the group is planning to expand in Dubai after the Emirate announced plans for making health insurance mandatory. This expansion will be most likely done through acquisitions. (GulfBase.com)  ADPC to take charge of Zayed Port in January – The Abu Dhabi Ports Company (ADPC) will take charge of the management and operations of the Zayed Port from January 1, 2014 from Abu Dhabi Terminals (ADT). (GulfBase.com)  CBO issues tenders for OMR222mn CDs – The Central Bank of Oman (CBO) has issued tenders for Certificates of Deposit (CD) worth OMR222mn. These CDs, which will mature on January 1, 2014, carry an average rate of interest of 0.13%, while the maximum accepted interest rate is 0.13%. (GulfBase.com) Page 4 of 5
  5. 5. Rebased Performance Daily Index Performance 160.0 150.0 140.0 130.0 120.0 110.0 100.0 90.0 80.0 1.3% 150.0 0.9% 119.5 0.5% QE Index Oct-11 May-12 Dec-12 S&P Pan Arab Jul-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 Yen Close ($) 1D% WTD% YTD% Global Indices Performance 1,229.05 0.0 0.0 (26.6) DJ Industrial 19.51 0.0 0.0 (35.7) S&P 500 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.37 0.0 0.0 0.0 111.61 4.14 127.00 139.50 0.5 20.9 41.1 (21.0) 3.9 102.91 GBP 1.63 0.0 0.0 CHF 1.12 0.0 0.0 0.91 0.0 0.0 (12.4) 80.32 0.0 0.0 32.72 0.0 0.0 0.43 0.0 0.0 USD Index RUB BRL 0.0% Close 1D% WTD% YTD% 16,020.20 0.0 0.0 22.3 1,805.09 0.0 0.0 26.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4,129.37 0.0 0.0 13.4 0.0 47.2 Source: Bloomberg 0.0 AUD 0.2% Dubai Aug-10 Mar-11 Kuwait 0.0% Qatar 0.1% Abu Dhabi 0.5% Oman 1.0% Bahrain 131.5 Saudi Arabia Jan-10 1.4% 1.5% NASDAQ 100 STOXX 600 DAX FTSE 100 CAC 40 316.50 9,172.41 6,551.99 34.5 13.2 20.5 11.1 15,299.86 0.0 0.6 MSCI EM 1,002.20 0.0 0.0 (5.0) 2.6 SHANGHAI SE Composite 2,237.11 0.0 0.0 (1.4) HANG SENG 23,743.10 0.0 0.0 4.8 0.7 BSE SENSEX 20,996.53 0.0 0.0 8.1 7.2 Bovespa 50,944.27 0.0 0.0 (16.4) 1,390.61 0.0 0.0 (8.9) 18.6 (12.0) Source: Bloomberg Nikkei 4,062.52 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 5 of 5