25 August Daily market report


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25 August Daily market report

  1. 1. Page 1 of 6 QE Intra-Day Movement Qatar Commentary The QE index rose 0.8% to close at 13,865.9. Gains were led by the Insurance and Banking & Financial Services indices, gaining 1.4% and 0.9%, respectively. Top gainers were Mazaya Qatar Real Estate Dev. and Islamic Holding Group, rising 4.1% and 4.0% respectively. Among the top losers, Qatar Islamic Insurance Co. fell 2.2%, while Ahli Bank declined 1.5%. GCC Commentary Saudi Arabia: The TASI index declined 0.6% to close at 10,842.8. Losses were led by the Insurance and Hotel & Tourism indices, declining 3.0% and 1.7%, respectively. Al Alamiya fell 9.9%, while Bupa Arabia was down 6.7%. Dubai: The DFM index gained 0.1% to close at 4,970.1. The Industrial index rose 3.0%, while the Transportation index was up 1.3%. Takaful National Industries Group gained 3.2%, while National Cement Co. was up 3.0%. Abu Dhabi: The ADX benchmark index fell 0.1% to close at 5,079.1. The Energy index declined 1.2%, while Inv. & Fin. Services index was down 0.7%. National Takaful fell 9.2%, while Green Crescent Insurance was down 3.9%. Kuwait: The KSE index declined marginally to close at 7,389.0. The Oil & Gas index declined 1.3%, while Technology index was down 0.9%. Housing Finance Co. fell 9.1%, while Kuwait Syrian Holding Co. was down 8.5%. Oman: The MSM index fell 0.2% to close at 7,342.4. Losses were led by the Services index declining 0.3%, while Financial index fell marginally. Oman Textile Holding declined 5.3%, while Renaissance Services was down 4.4%. Bahrain: The BHB index declined 0.8% to close at 1,474.0. The Insurance index fell 2.0%, while the Commercial Banking index was down 1.3%. Bahrain Car Parks Co. declined 10.0%, while Bahrain Tourism Co. was down 8.7%. Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 24.82 4.1 2,418.8 122.0 Islamic Holding Group 93.40 4.0 504.5 103.0 Qatar International Islamic Bank 92.00 3.7 1,494.9 49.1 Qatar Insurance Co. 98.50 2.1 6.2 85.2 Masraf Al Rayan 57.50 1.8 1,450.8 83.7 Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 24.82 4.1 2,418.8 122.0 United Development Co. 30.05 1.3 1,751.2 39.6 Ezdan Holding Group 19.69 (0.1) 1,610.5 15.8 Qatar International Islamic Bank 92.00 3.7 1,494.9 49.1 Masraf Al Rayan 57.50 1.8 1,450.8 83.7 Market Indicators 25 Aug 14 24 Aug 14 %Chg. Value Traded (QR mn) 960.5 521.7 84.1 Exch. Market Cap. (QR mn) 735,267.1 730,997.0 0.6 Volume (mn) 16.8 10.1 65.6 Number of Transactions 8,487 5,527 53.6 Companies Traded 43 42 2.4 Market Breadth 26:13 14:27 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 20,680.84 0.8 0.7 39.5 N/A All Share Index 3,502.36 0.7 0.7 35.4 17.2 Banks 3,401.31 0.9 1.0 39.2 16.6 Industrials 4,623.44 0.8 1.0 32.1 18.7 Transportation 2,313.10 0.1 (0.9) 24.5 14.8 Real Estate 2,959.21 0.4 (0.2) 51.5 15.8 Insurance 4,105.82 1.4 1.7 75.7 13.0 Telecoms 1,583.52 (0.0) 0.1 8.9 22.4 Consumer 7,567.72 (0.2) (0.6) 27.2 28.3 Al Rayan Islamic Index 4,812.73 1.0 0.5 58.5 20.7 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% United Arab Bank Abu Dhabi 7.00 8.5 161.9 24.8 Qatar Int. Islamic Bank Qatar 92.00 3.7 1,494.9 49.1 Comm. Facilities Co. Kuwait 0.29 3.6 57.1 5.5 Mobile Telecom. Co. Saudi Arabia 10.88 3.2 67,189.5 17.0 Ithmaar Bank Bahrain 0.18 2.9 521.1 (23.9) GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Bank Albilad Saudi Arabia 50.45 (4.6) 4,048.6 44.1 Jazeera Airways Kuwait 0.44 (4.3) 0.8 (11.1) Saudi Fisheries Saudi Arabia 42.46 (4.2) 3,480.2 37.4 Astra Industrial Group Saudi Arabia 52.64 (3.8) 717.8 (0.7) Saudi Enaya Coop. Ins. Saudi Arabia 40.88 (3.7) 908.7 1.4 Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity) Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD% Qatar Islamic Insurance Co. 90.60 (2.2) 56.4 56.5 Ahli Bank 53.00 (1.5) 9.7 25.3 Salam International Investment Co 20.50 (1.4) 1,049.1 57.6 Qatar German Co. for Med. Dev. 14.05 (1.1) 69.6 1.4 Medicare Group 135.90 (0.9) 19.7 158.9 Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD% Qatar International Islamic Bank 92.00 3.7 136,679.7 49.1 Industries Qatar 191.00 1.1 93,096.8 13.1 Masraf Al Rayan 57.50 1.8 83,611.4 83.7 QNB Group 197.30 0.3 78,328.9 14.7 Qatar Electricity & Water Co. 187.00 0.1 68,077.9 13.1 Source: Bloomberg (* in QR) Regional Indices Close 1D% WTD% MTD% YTD% Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 13,865.89 0.8 0.7 7.7 33.6 265.15 201,904.4 17.3 2.3 3.6 Dubai 4,970.05 0.1 1.3 2.8 47.5 272.11 95,480.6 20.6 1.8 2.0 Abu Dhabi 5,079.12 (0.1) 0.6 0.5 18.4 73.72 139,428.3 14.3 1.8 3.3 Saudi Arabia 10,842.78 (0.6) 1.0 6.1 27.0 4,302.08 588,879.0 20.8 2.6 2.7 Kuwait 7,389.03 (0.0) 0.5 3.6 (2.1) 95.07 113,382.5 17.9 1.2 3.7 Oman 7,342.44 (0.2) (0.2) 2.0 7.4 11.60 27,056.7 11.0 1.7 3.8 Bahrain 1,473.96 (0.8) (0.6) 0.2 18.0 8.66 54,329.9 11.3 1.0 4.6 Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) 13,70013,75013,80013,85013,90013,9509:3010:0010:3011:0011:3012:0012:3013:00
  2. 2. Page 2 of 6 Qatar Market Commentary  The QE index rose 0.8% to close at 13,865.9. 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.  Mazaya Qatar Real Estate Dev. and Islamic Holding Group were the top gainers, rising 4.1% and 4.0%, respectively. Among the top losers, Qatar Islamic Insurance Co. fell 2.2%, while Ahli Bank declined 1.5%.  Volume of shares traded on Monday rose by 65.6% to 16.8mn from 10.1mn on Sunday. However, as compared to the 30-day moving average of 17.7mn, volume for the day was 5.4% lower. Mazaya Qatar Real Estate Dev. and United Development Co. were the most active stocks, contributing 14.4% and 10.4% to the total volume respectively. Source: Qatar Exchange (* as a % of traded value) Global Economic Data Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/25 US Markit Markit US Composite PMI August 58.8 – 60.6 08/25 US Markit Markit US Services PMI August 58.5 58.0 60.8 08/25 US US Census Bureau New Home Sales July 412K 430K 422K 08/25 US US Census Bureau New Home Sales MoM July -2.40% 5.80% -7.00% 08/25 Germany IFO Institute IFO Business Climate August 106.3 107.0 108.0 08/25 Germany IFO Institute IFO Current Assessment August 111.1 112 112.9 08/25 Germany IFO Institute IFO Expectations August 101.7 102.1 103.4 08/25 Spain INE PPI MoM July 0.10% – 0.90% 08/25 Spain INE PPI YoY July -0.40% – 0.50% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  QE set to see listings of GCC and MENA companies – Companies from the GCC as well as the MENA region may list their stocks on the Qatar Exchange (QE) putting in place an appropriate environment to attract global fund managers and encourage local savings & investments. During the third phase of development, the QE could see the IPOs from the GCC/MENA region and their listings. According to sources, the dual listings of products and companies are also on the anvil. The exchange has embarked on a three-phase development program to make it an attractive investment destination and since then has initiated major reforms, which include the introduction of delivery-versus-payment in the first phase, which is expected to be completed soon. Moreover, the exchange is all geared up to introduce securities lending and borrowing, margin trading, omnibus accounts and a central counterparty as part of its measures to further enhance operational efficiency and attract foreign investors. The proposed three-layered investor structure – Qatari, regional and foreign, may also lend tacit strength and support to the proposed move to allow GCC and MENA companies to list their stocks on the QE. (Gulf- Times.com)  Qatar property deals jump despite summer lull – According to Ezdan Real Estate Company, Qatar’s real estate sector witnessed a great recovery despite the ongoing summer holidays with transactions jumping more than four-fold during the second week of August 2014. As per a recent report by the Real Estate Registration Department at the Ministry of Justice, transactions worth QR756.8mn were undertaken in the latest week as compared to QR170.1mn in the previous week, a record rise of 345%. The average daily value of real estate transactions amounted to about QR151.4mn as compared to QR56.7mn in the previous week. Doha Municipality reported the largest number of transactions at 43 with a total value of QR397.7mn during this week, followed by Al Rayyan with 29 transactions (QR119.7mn), Al Daayen 21 deals (QR117.4mn), Umm Salal 22 deals (QR60mn) and Al Wakrah 13 transactions (QR46.7mn). (Gulf-Times.com)  Eversendai wins Khalifa Stadium contract – Malaysia-based Eversendai Corporation’s Qatari unit has won a $35.7mn contract to renovate the Khalifa Olympic Stadium. As per the deal, Eversendai will be responsible for the total renovation comprising re-engineering and dismantling of the existing lighting arch and ancillary steel structures, engineering, supply, fabrication and construction of steel structures. (Bloomberg)  Qatar, Morocco in deal for $170mn projects – Qatar and Morocco have signed a grant agreement for the financing of two development projects. The agreement was signed by the Qatari Minister of Finance, HE Ali Shareef Al-Emadi, Moroccan Minister of Economy and Finance Mohamed Bou Said and Morocco’s Minister of Agriculture and Fisheries Aziz Akhannouch. The total cost of the two projects is estimated at $170mn. The implementation of the two projects comes within a series of development initiatives undertaken by the Kingdom of Morocco in order to lay the foundation for development. The first project, for the development of pastures and organizing movement in desert and semi-desert pastures in Sous-Massa Draa and Guelmim-Es Semara regions, aims to improve the pastoral environment of the region and to upgrade the aspects of environment as well as the living and educational conditions Overall Activity Buy %* Sell %* Net (QR) Qatari 66.21% 74.86% (83,063,588.91) Non-Qatari 33.79% 25.14% 83,063,588.91
  3. 3. Page 3 of 6 for the people of the region. The second project, related to irrigation, is part of the national program for the expansion of irrigation to improve the living conditions for the people of the region as well as to promote and develop their organizational and occupational capacities. (Gulf-Times.com)  High-level panel to review holding of expos – A high-level joint committee has been set up to review rules for organizing events and exhibitions. The idea is to encourage local players to get involved in the ‘events and exhibition’ business. The committee will conduct a study on the local market with the help of exhibition organizing companies and partners to meet its requirements to increase the participation of exhibitors. The panel comprises representatives from the Ministry of Economy & Commerce, Qatar Tourism Authority (QTA) and Qatar Chamber (QC). (Peninsula Qatar)  F-Ring Road to open by mid-September – According to sources, the Public Works Authority (Ashghal) is working on the final stage of F-Ring Road, which is slated to be opened by mid- September. F-Ring Road will connect the Industrial Area with the Al Wakrah intersection on Airport Road. It will also serve as a link between Hamad International Airport and the Al Muntazah road from the west to the east. The project is being developed at a cost of QR836mn. (Gulf-Times.com)  QA increases number of flights to Dubai – Qatar Airways will increase the number of daily flights to Dubai International Airport (DXB) to 14 and to Dubai World Central Al Maktoum International Airport (DWC) to four, effective from October 26, 2014. Doha-Dubai (DXB) has the highest frequency in Qatar Airways’ route network. The route is now served by the airline 91 times a week, and this number will increase to 98. The flights to DWC, now numbering 21 a week, will increase to 28 a week. (Peninsula Qatar)  Rayyan doubles bottled water production in Qatar – In order to meet the growing market demand for bottled water among consumers in Qatar, Rayyan Natural Water Company (Rayyan) has recently installed a new production line from Sidel to nearly double its current capacity. The Combi24XS Complete Line, which has been fully operational since February, has helped the Qatari water producer raise production by 48,000 bottles per hour (bph) for 330ml and 500ml bottle formats. Rayyan has been collaborating with Sidel, a global provider of liquid packaging solutions, since 2008. The company has two Combi8 Complete Lines from Sidel running at capacities of 10,000bph and 16,000bph, respectively. The demand for bottled water is soaring across Qatar in line with the population growth. According to Qatar’s inter-ministerial Permanent Population Committee, residents consume 675 liters of water per capita per day. (Gulf-Times.com) International  Slowing home sales show US market lacks momentum – The pace of new-home sales fell to the slowest in four months in July, signaling US real estate lacks the vigor to propel faster growth in the economy. The Commerce Department data showed purchases unexpectedly declined 2.4% to a 412,000 annualized pace, weaker than the lowest estimate of economists surveyed by Bloomberg. June purchases were revised up to a 422,000 rate after a May gain that was also bigger than previously estimated. Housing has advanced in fits and starts this year as tight credit and slow wage growth kept some prospective buyers from taking advantage of historically low borrowing costs. Bigger job and income gains, along with a further slowdown in price appreciation, would help make properties more affordable. (Bloomberg)  US confident its $5bn S&P lawsuit was not retaliation – The United States, which is suing Standard & Poor's (S&P) for $5bn over its credit ratings, said it is confident that the documents the rating agency wants for its defense will not show that the lawsuit was filed in retaliation for a downgrade of the country's debt. In a filing with the US District Court in Santa Ana, California, the US Department of Justice said S&P's "general suspicions" do not justify the rating agency's request for the release of dozens of unredacted documents, including materials from former Treasury Secretary Timothy Geithner. The Justice Department said it has submitted documents sought by S&P to US District Judge David Carter, and is "confident" that his review will prove they "do not support the defendants' allegations of retaliation in any way. S&P, a unit of New York-based McGraw Hill Financial Inc, said the government singled it out for a lawsuit after it took away the United States' "triple-A" rating on Aug. 5, 2011. The $5bn lawsuit filed in February 2013 accused S&P of issuing inflated ratings before the 2008 financial crisis to win more fees from issuers, and failing to downgrade debt backed by mortgage-backed securities fast enough. (Reuters)  Markit: US services sector growth slows for 2nd straight month in August – According to a recent survey the pace of growth in the US services sector fell for a second straight month in August, dropping to its lowest level since May. Financial data firm Markit said its preliminary services Purchasing Managers Index fell to 58.5 in August, below both the July reading of 60.8 and the analyst expectations for a reading of 59.5. A reading above 50 signals expansion in economic activity. Senior economist at Markit, Tim Moore said the US service sector continues to enjoy a strong growth phase, but the latest survey suggests the recovery has lost some momentum since hitting a post-crisis peak in June. The component measuring new business rose to 58.2 from 57.3 last month, while the confidence about the year-ahead business outlook for the services sector rebounded off its lowest level since November 2012. Markit's preliminary composite PMI, a weighted average of its manufacturing and services indexes, fell to 58.8 in August from 60.6 in July. (Reuters)  Hollande replaces cabinet as EU austerity rebellion stirs – French President Francois Hollande’s firing of malcontent minister Arnaud Montebourg risks unleashing the ruling Socialist Party’s chief critic of budget cuts, adding to an austerity backlash stirring across Europe. Montebourg, industry minister for the past two years, will not be part of the new team Hollande names on Tuesday after he publicly criticized the president for “slavish” and “dogmatic” deficit reduction that he said stokes unemployment. The dismissal of a top minister underlines the political crisis confronting Hollande as he seeks to balance European Union pressure to reduce the deficit with domestic demands to revive a stalled economy. It also exposes a wider rift in Europe as Italy uses its six-month presidency of the 28- nation EU to make a stand against a German-led drive to clampdown on spending. (Bloomberg)  Europe bank cleanup driving $1.72tn of asset sales – Europe’s largest banks are finally putting hundreds of billions of dollars of unwanted assets up for sale amid mounting competition among buyers and regulatory pressure. A wave of deals could be a boon to the region’s economy if the banks free up capital to increase lending. Banks led by London-based Barclays Plc (BARC) and including UniCredit SpA in Milan and Credit Suisse Group AG (CSGN) in Zurich, have shunted more businesses, bad loans and spoiled investments into units to be sold or wound down. According to data compiled by Bloomberg, such assets jumped by 65% since the end of 2013, to more than $1.72tn. Tougher capital rules have made some once-lucrative
  4. 4. Page 4 of 6 bond businesses less attractive, while regulatory scrutiny has pushed lenders to admit that soured loans won’t be repaid. Selling bad debts and underperforming operations free up funds firms can use to increase lending. That’s important for European economies stuck in the doldrums six years after a credit squeeze and a raft of bank bailouts spilled over into a sovereign- debt crisis. (Bloomberg)  China sets up $3.3bn aviation investment fund – According to sources, China has set up a $3.25bn (20bn Yuan) investment fund to help bolster its fast-growing civil aviation industry. The Civil Aviation Investment Fund, which is led by the parent of Beijing International Airport Co. Ltd., is designed to help finance new airports, aviation economic zones, budget carriers, cargo and general aviation related projects. Beijing has been investing heavily in its aviation industry in recent years to cope with its fast-growing air travel demand. Official statistics showed a total of 754mn people took to the air last year, up nearly 86% from 2008. Airport construction also has been picking up speed, with ongoing construction at a new facility in the south of Beijing alone costing $14bn. (Reuters) Regional  SEC to bring 4,750 MW natural gas-fired power online by 2017 – The Saudi Electricity Company (SEC) said that it is planning to bring online more than 4,750 megawatts (MW) of natural gas-fired power generating capacity in Riyadh between 2015 and 2017. The PP10 power plant will have an additional 1,150 MW capacity operational from May 2015. Two other plants, PP13 and PP14, with a combined capacity of 3,600 MW, would come online in August 2017. Meanwhile, some units of the PP12 plant, which will have a capacity of 1,740 MW, have already started operations. The company’s total available generating capacity stood at 61,625 MW at the end of June 2014. SEC will spend SR622bn till 2023 for adding 40,000 MW of installed capacity and expanding transmission and distribution networks. (GulfBase.com)  Saudi Aramco to invest $40bn yearly for next decade – Saudi Aramco’s President and CEO, Khalid Al-Falih, said that the company plans to invest $40bn a year over the next decade to keep oil production capacity steady and double gas production. Al-Falih said that although the investments will span the value chain, the bulk will be in upstream and increasingly from offshore, with the aim of maintaining maximum sustained oil production capacity at 12mn barrels per day, while also doubling gas production. (Bloomberg)  VeriFone, ITS launch payment solutions in Saudi Arabia – VeriFone Systems Inc has introduced two EMV-ready payment terminals from VX Evolution in Saudi Arabia along with its partner, International Turnkey Systems Group (ITS), an integrated IT solutions and software services provider. The Saudi Arabian Monetary Agency (SAMA) has certified VeriFone’s VX 520, the countertop payment system, and the VX 675, the wireless handheld payment device. SAMA oversees the Saudi Payments Network, the payment system in the Kingdom that connects all ATM and point of sale terminals. (GulfBase.com)  Tadawul announces changing the status of Al-Ahlia Insurance Company – The Saudi Stock Exchange Company (Tadawul) announced that as a result of Al-Ahlia Insurance Company’s accumulated losses reaching below 50% of its capital, its shares will be suspended from trading for two hours from session opening of Tuesday 26/08/2014, while orders maintenance will start from 12:30. Tadawul will remove the accumulated losses flag mark from the exchange website. (Tadawul)  Saudi CMA approves the capital increase request for Saudi Marketing Company – The Saudi Capital Market Authority (Saudi CMA) has approved Saudi Marketing Company’s request to increase its capital from SR250mn to SR350mn through issuing two bonus shares for every 5 existing shares owned by the shareholders. Consequently, company's outstanding shares will increase from 25mn shares to 35mn shares. Shareholders registered in the shareholders registry at the close of trading on the day of the extraordinary general assembly, to be determined later by the company's board, will be eligible for bonus shares. This approval is conditional on the Company satisfying the regulatory requirements of Companies Law and any other applicable laws. (Tadawul)  Saudi investments in Sudan poised to exceed SR48.75bn – According to the Sudanese Higher Council of Investment (HCI), Saudi investments in the Sudan are expected to cross SR48.75bn in the next few months, particularly following a decision on canceling entry visas for Saudi investors. HCI Secretary General Ahmed Shawur said that Khartoum Region will capture 30% of Saudi investments, which are primarily focused on agricultural, animal, food, and mining products. Saudi Arabia is a strategic partner with the Sudan in investments, especially in animal resources. (Gulf-Base.com)  NCB: Saudi banks depositary base jumps 12.7% to all-time high of SR1.5tn – The National Commercial Bank (NCB), in its Saudi Economic Review, said that Saudi banks have benefitted from the robust economy as they are able to extend credit lines to growing businesses, which in turn, is translated to record profits for financial entities. The depositary base reached an all- time high at SR1.5tn, increasing 12.7% on an annual basis by the end of June. Banks’ total deposits have been growing at double digits for the past couple of years as oil prices remain elevated and supportive of a liquid economy. The majority of deposits are demand based with a share of 62.8% as they climbed 14.1% YoY during June 2014. Businesses and individuals hold 93.8% of demand deposits while government entities make up the remaining 6.2% portion. However, government entities have been decreasing their demand deposits, 19.2% YoY during June. Meanwhile, the government’s time and savings deposits have increased by 28.4%, adding SR33.7bn YTD to reach SR183.7bn in June. On the other hand, businesses and individuals are more inclined towards riskier alternatives given that their level of time and savings deposits stagnated at SR176.5bn, an annual gain of 0.1%. (Gulf- Base.com)  Tasweek hands over Haven Lakeside Residences – Tasweek Real Estate Development and Marketing (Tasweek) has announced the recent JV project handover of the fully completed The Haven Lakeside Residences. The award winning 3-tower luxury development is the first eco-condotel (Condominium hotels) to rise in Malaysia, combining opulent design and premier hospitality services with eco-friendly functionality. The five-star AED269mn residential complex is the result of a strategic alliance between Tasweek and Malaysian property developer Superboom Projects which oversaw the development of The Haven. (Gulf-Base.com)  STR Global: UAE hotel occupancy down 7.9% in July 2014 – According to a report by research firm STR Global, hotels in the UAE saw the average daily rate (ADR) rise by 4.2% to AED544 YoY in July even as occupancy fell 7.9% to 46%. Revenue per available room (RevPAR), a performance benchmark, dropped 4% to AED250. Meanwhile in the Middle East and Africa, hotels posted a 0.9% increase in occupancy levels to 49.3%, while ADR rose 6.9% to AED574.8. (Gulf-Base.com)
  5. 5. Page 5 of 6  DIB seeks to secure 40% stake in Bank Panin’s Shari’ah unit – Dubai Islamic Bank (DIB) has submitted a proposal to Indonesia’s Financial Services Authority for boosting its stake in Bank Panin Syariah from 24.9% to 40%. This higher stake in Bank Panin Syariah would turn DIB into a controlling shareholder, providing DIB with some rights in determining the board of directors and board of commissioners. (GulfBase.com)  DP World to take charge of Belgian port – DP World is to take full control of the planned container terminal at Liège Port in Belgium as it strengthens its stake in the transport arteries of northern Europe. The company would take over the shares owned by Euroports in Trilogiport, the facility. The container terminal will cover 100 hectares along the Albert Canal, a small waterway located in northeastern Belgium. The project is expected to be completed in 2015 and will create more than 1000 jobs. (GulfBase.com)  Dubai firm wins Petrofac construction contract – Dubai- based Specialist Services has won a subcontract from Petrofac to provide local equipment rooms (LER) and local control rooms (LCR) buildings for the company’s Upper Zakum 750 Island Surface Facilities Project (EPC 2). The scope of work includes detailed design, engineering, fabrication, and commissioning of the 12 modules with total built-up weight of 8,170 tons. Petrofac Emirates' operation in Abu Dhabi, in consortium with Daewoo Shipbuilding & Marine Engineering, has a contract for engineering, procurement, construction, transportation and commissioning of island surface facilities on four artificial islands with the Zakum Development Company (ZADCO) for its UZ 750 field development project in Abu Dhabi. Petrofac said it has subcontracted to Specialist Services the provision of LERs and LCRs, which will be installed on the Abu Dhabi ZADCO Upper Zakum Offshore Field located 84 kilometers from Abu Dhabi. (GulfBase.com)  DI bolsters construction materials’ portfolio amid boom in UAE – Dubai Investments (DI) has reinforced the production capabilities of its subsidiaries dealing in building materials amid accelerating trends in the real estate and construction sector across the UAE and the region. This comes in the wake of winning significant orders for 18 subsidiaries of DI, who are involved in the manufacturing of building materials and construction products. DI’s subsidiary Emirates Building Systems has announced major expansion plans in the UAE and Saudi Arabia. Another subsidiary Emirates Extruded Polystyrene also has plans to double its production capacity in the next two years to about 2.4mn square meters per year, while Dubai Cranes & Technical Services recently opened the first-of-its-kind crane storage and assembly facility to cater to the rising demand for cranes across the GCC and MENA region. (DFM)  Du Telecom’s OGM approves interim cash dividend – Emirates Integrated Telecommunications Company’s (Du Telecom) shareholders approved the distribution of interim cash dividend of AED0.12 per share in the Ordinary General Meeting (OGM) held on 25 Aug 2014. (DFM)  Adnoc Distribution completes acquisition of 34 service stations – Adnoc Distribution has completed the acquisition of 34 Emarat service stations and a fuel depot at Port Khaled in Sharjah. To date in August, Adnoc Distribution has achieved the successful takeover of six Emarat service stations. Work on one remaining service station is due for completion at the end of August 2014. The acquisitions are in line with an agreement that Adnoc Distribution signed with Emarat in September 2013 towards the take-over of 75 service stations within a period of 24 months from signing the agreement. (Gulf-Base.com)  Oman yet to finalize Iran gas pipeline feasibility study – The Omani government is yet to appoint a consultant to conduct a feasibility study for building a 260 kilometer long pipeline that will carry Iranian gas to Oman, delaying the overall implementation of the project. The agreement for the purchase of around $60bn worth of natural gas from Iran over the next 25 years, which includes laying a $1bn gas pipeline to Oman across the Gulf, was signed during the visit of Iranian President Hassan Rouhani to Muscat in March 2014. The proposed pipeline would connect the Iranian province of Hormuzgan to Sohar in Oman. (GulfBase.com)  OFM’s BoD recommends 25% cash dividend – Oman Flour Mills Company’s (OFM) board of directors has recommended the distribution of 25% cash dividend (0/025 baizes per share). (MSM)  Al Maha to supply fuel to RAEC power stations – Al Maha Petroleum Products Marketing Company (Al Maha) has succeeded in obtaining a tender to supply fuel to the Rural Areas Electricity Company’s (RAEC) power stations in Dhofar Governorate for 2 years. (MSM)  BHB to launch BIM to create a platform for SMEs – Bahrain Bourse (BHB) is in the process of launching the Bahrain Investment Market (BIM), a new initiative targeted at small and medium-sized companies looking for growth finance. The implementation of Basel III capital rules is going to limit the banks’ ability to fund long-term projects. This has created an opportunity for capital markets to fill this funding gap. The stock exchange is in the process of offering a platform for those companies looking for investors to list themselves to obtain the process of growth funding easier. Investors such as venture capital funds and private equity firms looking for investment opportunities can easily identify opportunities through this platform. (GulfBase.com)  CBB’s Sukuk Al-Salam securities oversubscribed 299% – The Central Bank of Bahrain (CBB) announced that the monthly issue of the Sukuk Al-Salam Islamic securities for BHD36mn has been oversubscribed by 299%. The expected return on the issue, which begins on August 27, 2014 and matures on November 26, 2014, is 0.7%, equivalent to 0.7% for the previous issue. These securities are issued by the CBB on behalf of the Bahraini government. (GulfBase.com)  Oak Hill Capital to buy Berlin Packaging from Investcorp for $1.43bn – Private equity firm Oak Hill Capital Partners said it would buy container maker Berlin Packaging for $1.43bn from Bahrain-based Investcorp Bank. Chicago-based Berlin Packaging makes rigid plastic, glass and metal containers. The transaction is expected to close during 3Q2014. Barclays Capital and Deutsche Bank acted as financial advisers to Berlin Packaging, while Gibson, Dunn & Crutcher served as legal counsel. Morgan Stanley was financial adviser to Oak Hill, while Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel. (Reuters)
  6. 6. Contacts Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa 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 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg (* Market closed on 25 August 2014) 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 200.0 210.0 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 QE Index S&P Pan Arab S&P GCC (0.6%) 0.8% (0.0%) (0.8%) (0.2%) (0.1%) 0.1% (1.6%) (0.8%) 0.0% 0.8% 1.6% Saudi Arabia Qatar Kuwait Bahrain Oman Abu Dhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD% Gold/Ounce 1,276.90 (0.2) (0.2) 5.9 DJ Industrial 17,076.87 0.4 0.4 3.0 Silver/Ounce 19.36 (0.3) (0.3) (0.6) S&P 500 1,997.92 0.5 0.5 8.1 Crude Oil (Brent)/Barrel (FM Future) 102.65 0.4 0.4 (7.4) NASDAQ 100 4,557.35 0.4 0.4 9.1 Natural Gas (Henry Hub)/MMBtu 3.93 1.7 1.7 (9.6) STOXX 600 340.46 1.1 1.1 3.7 LPG Propane (Arab Gulf)/Ton 101.50 (0.2) (0.2) (19.8) DAX 9,510.14 1.8 1.8 (0.4) LPG Butane (Arab Gulf)/Ton 118.88 (0.4) (0.4) (12.4) FTSE 100* 6,775.25 0.0 0.0 0.4 Euro 1.32 (0.4) (0.4) (4.0) CAC 40 4,342.11 2.1 2.1 1.1 Yen 104.05 0.1 0.1 (1.2) Nikkei 15,613.25 0.5 0.5 (4.2) GBP 1.66 0.0 0.0 0.1 MSCI EM 1,085.29 0.2 0.2 8.2 CHF 1.09 (0.2) (0.2) (2.5) SHANGHAI SE Composite 2,229.27 (0.5) (0.5) 5.4 AUD 0.93 (0.2) (0.2) 4.3 HANG SENG 25,166.91 0.2 0.2 8.0 USD Index 82.55 0.3 0.3 3.1 BSE SENSEX 26,437.02 0.1 0.1 24.9 RUB 36.16 0.2 0.2 10.0 Bovespa 59,735.17 2.3 2.3 16.0 BRL 0.44 (0.4) (0.4) 3.3 RTS 1,267.42 0.6 0.6 (12.2) 199.2 166.1 149.0