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QNBFS Daily Market Report August 12, 2018


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The QSE Index declined 0.7% to close at 9,886.9.

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QNBFS Daily Market Report August 12, 2018

  1. 1. Page 1 of 7 QSE Intra-Day Movement Qatar Commentary The QSE Index declined 0.7% to close at 9,886.9. Losses were led by the Industrials and Insurance indices, falling 1.3% and 1.1%, respectively. Top losers were The Group Islamic Insurance Company and Dlala Brokerage & Investment Holding Company, falling 3.9% and 2.7%, respectively. Among the top gainers, Mannai Corporation gained 3.0%, while Ezdan Holding Group was up 0.9%. GCC Commentary Saudi Arabia: The TASI Index fell 0.4% to close at 8,176.2. Losses were led by the Utilities and Consumer Services indices, falling 3.3% and 2.5%, respectively. Middle East Healthcare Co. declined 10.0%, while Saudi Marketing Co. was down 7.3%. Dubai: The DFM General Index declined 1.0% to close at 2,920.1. The Consumer Staples and Discretionary index fell 2.1%, while the Banks index declined 1.9%. Drake & Scull International fell 9.9%, while Takaful Emarat was down 4.0%. Abu Dhabi: The ADX General Index fell 1.1% to close at 4,872.0. The Real Estate index declined 2.1%, while the Banks index fell 1.7%. Aldar Properties declined 2.5%, while First Abu Dhabi Bank was down 2.4%. Kuwait: The Kuwait Main Market Index rose marginally to close at 4,963.1. The Oil & Gas index gained 1.3%, while the Real Estate index rose 1.1%. Sanam Real Estate Co. rose 20.7%, while Kuwait Financial Centre was up 10.0%. Oman: The MSM 30 Index fell 0.1% to close at 4,431.2. Losses were led by the Industrial and Services indices, falling 0.4% and 0.3%, respectively. Dhofar Insurance fell 9.5%, while Muscat Gases was down 7.5%. Bahrain: The BHB Index gained 0.3% to close at 1,349.6. The Industrial index rose 0.8%, while the Investment index gained 0.6%. Investcorp Bank rose 7.3%, while Nass Corporation was up 1.0% .QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Mannai Corporation 51.50 3.0 71.5 (13.4) Ezdan Holding Group 11.00 0.9 2,208.6 (8.9) Vodafone Qatar 9.26 0.4 587.5 15.5 Aamal Company 10.12 0.4 69.7 16.6 Salam International Inv. Ltd. 5.22 0.4 101.7 (24.2) QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD% Ezdan Holding Group 11.00 0.9 2,208.6 (8.9) Vodafone Qatar 9.26 0.4 587.5 15.5 Qatar Gas Transport Company Ltd. 17.17 (1.3) 576.8 6.6 Mazaya Qatar Real Estate Dev. 7.36 (2.0) 365.5 (18.2) Investment Holding Group 5.42 (1.1) 322.2 (11.1) Market Indicators 09 Aug 18 08 Aug 18 %Chg. Value Traded (QR mn) 172.0 315.9 (45.6) Exch. Market Cap. (QR mn) 547,045.9 550,530.7 (0.6) Volume (mn) 6.7 10.2 (34.1) Number of Transactions 3,001 4,800 (37.5) Companies Traded 40 42 (4.8) Market Breadth 7:27 17:23 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 17,419.54 (0.7) (0.9) 21.9 14.7 All Share Index 2,903.00 (0.5) (0.4) 18.4 15.1 Banks 3,523.26 (0.4) (1.9) 31.4 14.3 Industrials 3,187.91 (1.3) (0.4) 21.7 15.8 Transportation 2,030.63 (0.7) 0.6 14.9 12.7 Real Estate 1,924.67 0.5 4.4 0.5 16.4 Insurance 3,180.89 (1.1) (1.0) (8.6) 29.8 Telecoms 1,024.97 (1.0) 1.6 (6.7) 40.2 Consumer 6,253.38 0.5 (0.8) 26.0 13.6 Al Rayan Islamic Index 3,875.03 (0.6) (0.9) 13.2 16.8 GCC Top Gainers ## Exchange Close # 1D% Vol. ‘000 YTD% Union National Bank Abu Dhabi 3.84 3.8 5,024.8 1.1 Mobile Telecom. Co. Saudi Arabia 6.27 3.3 9,288.8 (14.2) Bank Sohar Oman 0.13 2.3 200.0 (3.0) Jarir Marketing Co. Saudi Arabia 188.00 2.2 123.6 28.1 Mabanee Co. Kuwait 0.71 2.0 340.0 5.7 GCC Top Losers ## Exchange Close # 1D% Vol. ‘000 YTD% Middle East Health. Co. Saudi Arabia 48.60 (10.0) 632.3 (9.8) Al Tayyar Travel Group Saudi Arabia 23.90 (3.6) 1,480.6 (11.5) Saudi Electricity Co. Saudi Arabia 18.02 (3.1) 2,586.6 (14.4) Emirates NBD Dubai 10.00 (2.9) 3,877.2 22.0 Al Hammadi Dev. & Inv. Saudi Arabia 29.05 (2.7) 186.3 (21.7) Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Losers Close* 1D% Vol. ‘000 YTD% The Group Islamic Insurance Co. 53.60 (3.9) 7.9 (2.5) Dlala Brokerage & Inv. Holding 14.84 (2.7) 7.9 1.0 Industries Qatar 123.99 (2.4) 176.7 27.8 Islamic Holding Group 28.10 (2.4) 42.6 (25.1) Ooredoo 71.51 (2.0) 37.2 (21.2) QSE Top Value Trades Close* 1D% Val. ‘000 YTD% QNB Group 174.50 (0.3) 40,269.3 38.5 Ezdan Holding Group 11.00 0.9 24,656.1 (8.9) Industries Qatar 123.99 (2.4) 22,131.8 27.8 Qatar Gas Transport Co. Ltd. 17.17 (1.3) 9,880.7 6.6 Barwa Real Estate Company 36.69 (0.2) 8,586.2 14.7 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* 9,886.86 (0.7) (0.9) 0.6 16.0 47.28 150,273.5 14.7 1.5 4.4 Dubai 2,920.11 (1.0) (1.8) (1.2) (13.4) 43.21 103,771.4 9.3 1.1 5.8 Abu Dhabi 4,872.03 (1.1) 1.3 0.3 10.8 44.08 132,324.7 12.8 1.4 4.9 Saudi Arabia 8,176.18 (0.4) (0.9) (1.4) 13.1 1,161.88 517,186.3 17.8 1.8 3.4 Kuwait 4,963.10 0.0 0.3 0.6 2.8 68.04 34,206.9 15.4 0.9 4.1 Oman 4,431.21 (0.1) 2.4 2.2 (13.1) 1.80 18,794.9 9.0 0.9 6.2 Bahrain 1,349.61 0.3 0.0 (0.6) 1.3 3.58 20,689.0 8.9 0.9 6.1 Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any) 9,850 9,900 9,950 10,000 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 7 Qatar Market Commentary  The QSE Index declined 0.7% to close at 9,886.9. The Industrials and Insurance indices led the losses. The index fell on the back of selling pressure from Qatari and GCC shareholders despite buying support from non-Qatari shareholders.  The Group Islamic Insurance Company and Dlala Brokerage & Investment Holding Company were the top losers, falling 3.9% and 2.7%, respectively. Among the top gainers, Mannai Corporation gained 3.0%, while Ezdan Holding Group was up 0.9%.  Volume of shares traded on Thursday fell by 34.1% to 6.7mn from 10.2mn on Wednesday. Further, as compared to the 30-day moving average of 7.3mn, volume for the day was 7.2% lower. Ezdan Holding Group and Vodafone Qatar were the most active stocks, contributing 32.7% and 8.7% to the total volume, respectively. Source: Qatar Stock Exchange (* as a % of traded value) Ratings, Earnings Releases, Global Economic Data and Earnings Calendar Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change United Arab Bank Moody’s Abu Dhabi LT-FBD/ABCA/ LT-LBD/LT-FCRR/ LT-CRA/ST-FBD/ ST-LBD/BCA/ LT-DCRR Baa2/ba1/Baa2/ Baa1/Baa1(cr)/ P-2/P-2/ba1/ Baa1 Baa3/ba2/Baa3/ Baa2/Baa2(cr)/ P-3/P-3/ba2/ Baa2  Stable – Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Currency Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC – Local Currency, FBD – Foreign Bank Deposits, LBD – Local Bank Deposits, CRA – Counterparty Risk Assessment, BCA – Baseline Credit Assessment, ABCA – Adjusted Baseline Credit Assessment, FCRR – Foreign Counterparty Risk Rating, DCRR – Domestic Counterparty Risk Rating) Earnings Releases Company Market Currency Revenue (mn) 2Q2018 % Change YoY Operating Profit (mn) 2Q2018 % Change YoY Net Profit (mn) 2Q2018 % Change YoY National Agricultural Marketing Co. Saudi Arabia SR – – 0.7 -76.3% 0.7 -76.7% Saudi Paper Manufacturing Co. Saudi Arabia SR – – -15.6 N/A -10.3 N/A Saudi Fisheries Co. Saudi Arabia SR – – -6.8 N/A -6.8 N/A The Mediterranean and Gulf Insurance and Reinsurance Co. Saudi Arabia SR 277.9 -68.0% – – 3.8 166.4% Saudi Indian Company for Cooperative Insurance Saudi Arabia SR 23.5 -80.2% – – 0.0 N/A Al-Baha Investment and Development Co. Saudi Arabia SR – – 5.4 N/A -11.4 N/A Al-Babtain Power and Telecommunication Co. Saudi Arabia SR – – 2.7 -93.8% 20.5 -50.2% Batic Investments and Logistics Co. Saudi Arabia SR – – 3.5 -80.3% 1.9 -87.9% Northern Region Cement Co. Saudi Arabia SR – – 5.0 -75.8% -6.7 N/A Saudi Real Estate Co. Saudi Arabia SR – – 20.4 -42.5% 30.3 46.2% Jabal Omar Development Co. Saudi Arabia SR – – 4.5 -66.4% -148.0 N/A Tihama Advertising and Public Relations Co. Saudi Arabia SR – – -0.3 N/A 1.0 -39.4% Al Jouf Cement Co. Saudi Arabia SR – – -12.0 N/A -13.7 N/A SABB Takaful Co. Saudi Arabia SR 32.9 -18.7% – – 2.0 12.2% Saudi Enaya Cooperative Insurance Co. Saudi Arabia SR – – 50.7 -23.5% 1.0 -16.3% Emaar The Economic City Saudi Arabia SR – – -50.0 N/A -45.0 N/A Fitaihi Holding Group Saudi Arabia SR – – 4.9 -16.7% 13.7 2.5% MetLife AIG ANB Cooperative Insurance Co. Saudi Arabia SR 25.8 -70.6% – – 1.1 -20.9% United Cooperative Assurance Co. Saudi Arabia SR 88.8 -64.7% – – 1.2 -26.8% Altayyar Travel Group Saudi Arabia SR – – 218.0 -14.8% 107.0 -49.5% Arabtec Holding Dubai AED 2,391.5 16.1% – – 49.4 24.1% Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 38.05% 39.79% (2,988,195.02) Qatari Institutions 11.44% 12.93% (2,559,058.57) Qatari 49.49% 52.72% (5,547,253.59) GCC Individuals 1.58% 0.42% 1,985,926.05 GCC Institutions 3.76% 15.73% (20,585,941.51) GCC 5.34% 16.15% (18,600,015.46) Non-Qatari Individuals 10.75% 15.39% (7,976,603.63) Non-Qatari Institutions 34.42% 15.74% 32,123,872.68 Non-Qatari 45.17% 31.13% 24,147,269.05
  3. 3. Page 3 of 7 DXB Entertainments Dubai AED 115.8 -3.2% – – -255.1 N/A Dubai Investments Dubai AED 652.8 11.3% – – 129.1 -32.4% National Cement Co. Dubai AED 57.4 5.7% – – 4.6 -62.7% Abu Dhabi National Energy Company Abu Dhabi AED 4,264.0 1.3% – – 168.0 380.0% Emirates Insurance Co. Abu Dhabi AED 259.6 -5.9% – – 13.4 -54.5% AXA Green Crescent Insurance Company Abu Dhabi AED 8.3 11.9% – – -1.3 N/A National Industries Group Holding Kuwait KD 30.0 14.3% – – 6.4 205.8% Takaful International Company* Bahrain BHD – – – – 0.4 73.5% Source: Company data, DFM, ADX, MSM, TASI, BHB. (*Financials for 1H2018) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/09 US Department of Labor Initial Jobless Claims 4-August 213k 220k 219k 08/09 US Department of Labor Continuing Claims 28-July 1,755k 1,730k 1,726k 08/10 US Bureau of Labor Statistics CPI MoM July 0.2% 0.2% 0.1% 08/10 US Bureau of Labor Statistics CPI YoY July 2.9% 2.9% 2.9% 08/10 UK UK Office for National Statistics Trade Balance June -£1,861 -£2,500 -£3,141 08/10 UK UK Office for National Statistics Industrial Production MoM June 0.4% 0.3% -0.2% 08/10 UK UK Office for National Statistics Industrial Production YoY June 1.1% 0.7% 1.2% 08/10 UK UK Office for National Statistics Manufacturing Production MoM June 0.4% 0.3% 0.6% 08/10 UK UK Office for National Statistics Manufacturing Production YoY June 1.5% 1.0% 1.5% 08/10 UK UK Office for National Statistics GDP QoQ 2Q2018 0.4% 0.4% 0.2% 08/10 UK UK Office for National Statistics GDP YoY 2Q2018 1.3% 1.3% 1.2% 08/10 UK UK Office for National Statistics Exports QoQ 2Q2018 -3.6% 0.7% 0.0% 08/10 UK UK Office for National Statistics Imports QoQ 2Q2018 -0.8% 0.8% -0.2% 08/10 France INSEE National Statistics Office Industrial Production MoM June 0.6% 0.5% -0.2% 08/10 France INSEE National Statistics Office Industrial Production YoY June 1.7% 1.4% -0.6% 08/10 France INSEE National Statistics Office Manufacturing Production MoM June 0.6% 0.0% -0.5% 08/10 France INSEE National Statistics Office Manufacturing Production YoY June 1.6% 0.5% -0.4% 08/10 Japan Bank of Japan PPI YoY July 3.1% 2.9% 2.8% 08/10 Japan Bank of Japan PPI MoM July 0.5% 0.2% 0.2% 08/09 China National Bureau of Statistics PPI YoY July 4.6% 4.5% 4.7% 08/09 China National Bureau of Statistics CPI YoY July 2.1% 2.0% 1.9% 08/10 India India Central Statistical Organization Industrial Production YoY June 7.0% 5.5% 3.9% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Earnings Calendar Tickers Company Name Date of reporting 2Q2018 results No. of days remaining Status MRDS Mazaya Qatar Real Estate Development 13-Aug-18 1 Due ZHCD Zad Holding Company 14-Aug-18 2 Due Source: QSE
  4. 4. Page 4 of 7 News Qatar  IGRD’s EGM approves the purchase of the remaining shares in Consolidated Engineering Systems – Investment Holding Group (IGRD) announced the results of its Extra Ordinary General Assembly Meeting (EGM), which was held on August 8, 2018 and approved the following resolutions: 1) The Purchase of the remaining shares (39.6%) in Consolidated Engineering Systems, on a cash basis. 2) Authorizing the board of directors to take a bank loan of an amount of one hundred million Qatari Riyals to pay a part of the value of the proposed shares. 3) Mandating Chairman, singly, or, any two of the board members, jointly, to sign on the official procedures necessary for the execution of the purchase, including signing and authenticating the purchase agreements, signing the extraordinary general assemblies of the company purchasing or being purchased, amendments to the articles of association, bank loan, and all necessary procedures. (QSE)  Weekly real estate transactions reach QR935mn – The momentum in Qatar’s real estate market remains strong as the transactions have increased driven by investors’ trust on the country’s growing economy. The trading volume of registered real estates between July 29 to August 2 at the Ministry of Justice’s real estate registration department stood at QR935mn. The department’s weekly report stated that the trading included empty lands, residential units, residential buildings, residential complexes, commercial buildings and multipurpose building. Most of the trading took place in Doha, Al Daayen, Al Rayyan, Umm Salal, Al Wakra, Al Khor, Al Thakhira and Al Sheehaniya. The trading volume of registered real estates in between June 24 to June 28 was at QR470mn. (Peninsula Qatar)  Qatar Investment Authority becomes largest investor in Credit Suisse – Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar, has become the largest investor in Credit Suisse by increasing its stake to 5.21%. Credit Suisse, which is a global financial services company, is headquartered in Zurich, Switzerland and has operations in over 50 countries. Since 2005, QIA has built a major global portfolio that now spans a broad range of asset classes and regions. QIA allocates assets dynamically and flexibly. With this approach, it has established an excellent track record both for identifying long-term opportunities, and for making bold, intelligent investments. (Peninsula Qatar)  Mall of Qatar eyes expansion to attract more tourists – Mall of Qatar is finalizing plans for an expansion project as part of efforts to serve Qatar’s growing retail segment and to help boost tourist inflow to the country, according to Mall of Qatar’s CEO, Stuart Elder. Elder said that the mall’s management has started pre-planning work, including the necessary approvals and other behind the scenes requirements, and is expected to break ground next year. (  Stamp of approval for HIA plan to cut carbon emissions – Hamad International Airport (HIA) has successfully retained its Airport Carbon Accreditation at Level 3 for another year. HIA’s renewal comes after successfully reaching Level 3 ‘Optimization’ status last year and becoming the first airport in the GCC and only the second in the Middle East and North Africa region to reach Level 3 accreditation. HIA’s airport-wide energy reduction programs and collaborative approach with airport stakeholders to manage third-party emissions have resulted in measurable change. HIA’s Chief Operating Officer Badr Mohamed Al Meer, and Regional Board Director, Airports Council International (ACI) Asia-Pacific, said, “As Hamad International Airport continues to accommodate rapid growth with an increasing number of passengers and cargo, we are committed more than ever on reflecting global environmental standards and minimizing environmental impact. “We are proud to successfully work in line with ACI’s standards and will continue to minimize our use of natural resources, control emissions and manage waste carefully as we move forward.” ( International  US inflation pressures rise in July; Fed on track to lift rates – US consumer prices rose in July and the underlying trend continued to strengthen, pointing to a steady increase in inflation pressures that keeps the Federal Reserve on track to gradually raise interest rates. The Labor Department stated its Consumer Price Index (CPI) advanced 0.2%, the bulk of which was due to a rise in the cost of shelter, driven by higher rents. The CPI rose 0.1% in June. In the 12 months through July, the CPI increased 2.9%, matching the increase in June. Excluding the volatile food and energy components, the CPI rose 0.2%, the same gain as in May and June. The annual increase in the core CPI was 2.4%, the largest rise since September 2008, from 2.3% in June. Economists polled by Reuters had forecast both the CPI and core CPI rising 0.2% in July. (Reuters)  Trump targets a doubling of Turkey metals tariffs as ties worsen – US President, Donald Trump ordered the doubling of steel and aluminum tariffs against Turkey, roiling global markets as relations between the NATO allies hit a new low. “I have just authorized a doubling of tariffs on steel and aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time,” Trump said on Twitter. (Bloomberg)  Greece’s consumer price inflation slows to 0.8% in July – Greece’s annual EU-harmonized inflation rate slowed in July, statistics service ELSTAT data showed. The reading was 0.8% from 1.0% in June. The data showed the headline consumer price index rose to 0.9% YoY, also decelerating from 1.0% in the previous month. Greece had been in a protracted deflation mode since March 2013 based on its headline index, as wage and pension cuts and a multi-year recession took a heavy toll on Greek household incomes. Further, Greece’s industrial output increased by 1.2% in June compared to the same month last year, after an upwardly revised 1.7% rise in May, according to ELSTAT. Looking at index components, manufacturing production increased 0.9% from the same month last year, while mining output rose 7.4%. (Reuters)  Japan’s economy rebounds on brisk spending but trade rifts cloud outlook – Japan’s economy grew more than expected in the second quarter, helped by strong household and business spending and recovering from an earlier contraction, but global trade tensions loom as major risks to the export and investment
  5. 5. Page 5 of 7 outlook. Japan’s economy expanded 1.9% on an annualized basis in April-June, beating a median market forecast for 1.4% increase, government data showed. That followed a revised 0.9% contraction, larger than initial estimates, in the previous quarter, which put an end to the best run of growth since the 1980s bubble economy. Compared with the previous quarter, gross domestic product (GDP) rose 0.5%, more than the median estimate for 0.3% increase and following 0.2% contraction in January-March. (Reuters)  China says business ties with Iran no harm to any other country – China’s business and energy ties with Iran do not harm the interests of any other country, the country’s Foreign Ministry stated, after US President, Donald Trump said companies doing business with Iran would be barred from the US. China has already defended its commercial relations with Iran as open and transparent as the US sanctions on Iran took effect despite pleas from Washington’s allies. (Reuters)  India’s industrial output growth hits five-month high of 7% in June – India’s industrial output in June grew at its fastest pace in five months to 7% from a year earlier, driven by a pick-up in capital goods manufacturing ahead of the festive season, government data showed. Economists surveyed by Reuters had forecast 5.4% growth in output compared with a revised 3.9% YoY increase in May. Manufacturing, which contributes 78% of industrial output, grew 6.9% in June compared with 2.8% rise in May. (Reuters) Regional  Middle East’s carriers post 11% increase in passenger demand in June – The Middle Eastern carriers posted an 11% passenger demand increase in June, compared to the same month last year. This was a sharp turnaround from the flat traffic growth in May, which was partly attributable to the timing of Ramadan between the two years, according to International Air Transport Association (IATA). Capacity rose 8% and load factor climbed 1.9 percentage points to 71% in June 2018. (Peninsula Qatar)  Saudi Arabia’s inflation jumped on subsidy cuts, VAT introduction – Saudi Arabia’s Inflation rose at the turn of the year from about -1% to nearly 3%. A set of new policy measures were responsible for the jump, which included the introduction of a 5% value-added tax (VAT), a reduction in fuel subsidies, the hiking of utility prices and an increase in the levies on expatriate workers. (Bloomberg)  Saudi Arabia ranks among the highest in healthcare efficiency – The Kingdom of Saudi Arabia scores among the highest in healthcare efficiency, as compared to a 16-country overall average, Royal Philips stated. An efficiency score of 44.17 is particularly strong, rising over 17 points above the average, and coming in just after Singapore at 50.11, indicating healthcare spend is being effectively utilized in relevance to health outcomes. According to the results, overall satisfaction with the healthcare system is 10 points above average on the index, with more room for growth. Healthcare professionals are more satisfied with the level of care offered, than the general population in Saudi Arabia (66.18 versus 59.32). This is driven by their higher levels of trust in the healthcare system compared to the general population (80% versus 62%). (  Saudi Arabia’s PIF has shown no interest in bankrolling the Tesla buyout – Saudi Arabia’s Public Investment Fund (PIF) has shown no interest so far in financing Tesla’s proposed $72bn deal to take the US electric car maker private, despite acquiring a minority stake in the company, sources said. Tesla’s CEO, Elon Musk said that he was considering a take-private deal for Tesla. He also said he had secured funding for the proposal. Investors and analysts viewed PIF as a natural financing partner. However, sources also said PIF was not currently getting involved in any funding process for Tesla’s take-private deal. (  New mortgages to boost home ownership in Saudi Arabia – Saudi Arabian citizens will be able to access cheaper and more accessible mortgages at fixed rates under an initiative launched by the Saudi Real Estate Refinance Company, the body set up and backed by the PIF. The SRC initiative will allow new or existing borrowers to access facilities to boost their mortgage potential, with at least seven big Saudi Arabian financial institutions taking part to provide new mortgages for home buyers. (  CMA approves Saudi Cable Company’s request to reduce its capital – Saudi Arabia’s Capital Market Authority (CMA) issued its resolution approving Saudi Cable Company’s request to reduce its capital from SR404,114,000 to SR110,614,060, thus reducing the number of shares from 40,411,400 shares to 11,061,406 shares. This approval is conditional on the company’s extraordinary general assembly approval and completion of the necessary procedures in relation to the applicable regulations. (Tadawul)  CMA approves the capital increase request for Buruj Cooperative Insurance Company – CMA issued its resolution approving Buruj Cooperative Insurance Company’s request to increase its capital from SR250mn to SR300mn through issuing one bonus share for every five existing shares. Such increase will be paid by transferring an amount of SR50mn from ‘Retained Earnings’ account to the company’s capital, consequently increasing the company’s outstanding shares from 25mn shares to 30mn shares. (Tadawul)  CMA approves Middle East Specialized Cables Company’s request to reduce its capital – CMA issued its resolution approving Middle East Specialized Cables Company’s request to reduce its capital from SR600mn to SR400mn, thus reducing the number of shares from 60mn to 40mn. This approval is conditional on the company’s extraordinary general assembly approval and completion of the necessary procedures in relation to the applicable regulations. (Tadawul)  Emirates Investment Bank’s net profit rises to AED11.5mn in 2Q2018 – Emirates Investment Bank recorded net profit of AED11.5mn in 2Q2018 as compared to AED8.4mn in 2Q2017. Interest income came in at AED22.0mn as compared to AED19.1mn in 2Q2017. Operating income came in at AED36.0mn as compared to AED42.0mn in 2Q2017. Total assets stood at AED4.87bn at the end of June 30, 2018 as compared to AED4.90bn at the end of December 31, 2017. Net investments stood at AED1.83bn, while customers’ deposits stood at AED2.89bn at the end of June 30, 2018. EPS came in at AED16.42 in 2Q2018 as compared to AED11.96 in 2Q2017. (DFM)
  6. 6. Page 6 of 7  High technology leads FDI flows into Dubai – The digital transformation of international production, coupled with Dubai’s on-going transformation into a knowledge-based economy have reshaped both the source and the composition of the flows of foreign direct investment (FDI), into the Emirate. According to Dubai’s Department of Economic Development (DED), the last three years have witnessed investors from the European Union and the US outstripping all others in both, the number of projects they have initiated - 355 and 213 projects, respectively, and in the capital investments they have reached, $5,738 and $3,990bn, respectively. During the period from 2015 till 1Q2018, investors from the EU and the US launched 66% of the total number of projects in Dubai; they also contributed to 45% in the total FDI flows into Dubai and created 28,241 new jobs. (  Amanat Holdings acquires Middlesex University Dubai for AED369mn – Amanat Holdings stated that it has completed the acquisition of 100% stake in Middlesex University Dubai for a consideration of AED369mn with an additional potential earn- out of up to Dh73mn. With the completion of this investment, Amanat Holdings has constructed a diverse portfolio of leading and differentiated businesses. The portfolio today includes three education assets in the UAE, two healthcare assets in Saudi Arabia and another real estate investment. (  Expo 2020 picks Emaar Hospitality Group as hotel partner – Expo 2020 Dubai selected Emaar Hospitality Group, the hospitality and leisure subsidiary of Emaar Properties, as its newest official partner. Emaar Hospitality Group will provide authentic experiences with a strong local flavor at various locations across the Expo 2020 site, including VIP clubs and lounges, as well as in its hotels and restaurants in Dubai. As the official hotel and hospitality partner, Emaar Hospitality Group will be responsible for providing exceptional service to Expo 2020’s special ticket holders. The Group will also operate a number of other experiences across the Expo site. In addition, Emaar Hospitality Group will showcase trends and innovations in the hospitality industry. (  Abu Dhabi Islamic Bank hires banks for $750mn Sukuk – Abu Dhabi Islamic Bank (ADIB) hired international banks to arrange the sale of $750mn in Islamic bonds, sources said. ADIB’s debt sale, which still needs final approval by the bank’s shareholders, would follow months of subdued activity in the Middle East primary bond market, as potential issuers in the region have held back their plans because of market volatility and the price premium they might have to pay to attract demand. HSBC and JPMorgan have been hired as coordinators for the Sukuk deal. (Reuters)  Bahrain eyes progress in aid talks to repair its finances – Bahrain and its Gulf allies are said to be making progress on an aid program to help the Kingdom repair its finances and avoid a devaluation of its currency. Officials from Bahrain, Saudi Arabia, the UAE and Kuwait are discussing a multi-year program that would involve spending cuts and measures to increase non-oil revenue, including the introduction of a value- added tax, according to sources. The Arab Monetary Fund, an organization modeled on the International Monetary Fund, has been involved in the discussion. The fund, based in Abu Dhabi, may also help to monitor the program’s implementation. (Gulf-
  7. 7. Contacts Saugata Sarkar, CFA, CAIA Shahan Keushgerian Zaid al-Nafoosi, CMT, CFTe Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6509 Tel: (+974) 4476 6535 QNB Financial Services Co. W.L.L. Contact Center: (+974) 4476 6666 PO Box 24025 Doha, Qatar Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services Co. W.L.L. (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (Q.P.S.C.). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange. Qatar National Bank (Q.P.S.C.) 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. QNBFS accepts no liability whatsoever for any direct or indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of the investor and be based on specifically engaged investment 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. 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. For reports dealing with Technical Analysis, expressed opinions and/or recommendations may be different or contrary to the opinions/recommendations of QNBFS Fundamental Research as a result of depending solely on the historical technical data (price and volume). 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. This report may not be reproduced in whole or in part without permission from QNBFS. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 7 of 7 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg (*$ adjusted returns) 50.0 75.0 100.0 125.0 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 QSE Index S&P Pan Arab S&P GCC (0.4%) (0.7%) 0.0% 0.3% (0.1%) (1.1%) (1.0%)(1.2%) (0.8%) (0.4%) 0.0% 0.4% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1,211.70 (0.1) (0.2) (7.0) MSCI World Index 2,139.84 (1.1) (0.7) 1.7 Silver/Ounce 15.32 (0.8) (0.6) (9.6) DJ Industrial 25,313.14 (0.8) (0.6) 2.4 Crude Oil (Brent)/Barrel (FM Future) 72.81 1.0 (0.5) 8.9 S&P 500 2,833.28 (0.7) (0.2) 6.0 Crude Oil (WTI)/Barrel (FM Future) 67.63 1.2 (1.3) 11.9 NASDAQ 100 7,839.11 (0.7) 0.3 13.6 Natural Gas (Henry Hub)/MMBtu 2.96 (2.0) 4.2 (16.4) STOXX 600 385.86 (2.4) (2.5) (6.0) LPG Propane (Arab Gulf)/Ton 96.13 0.1 0.9 (1.7) DAX 12,424.35 (3.3) (3.2) (8.8) LPG Butane (Arab Gulf)/Ton 102.75 1.0 2.8 (2.7) FTSE 100 7,667.01 (1.7) (2.0) (6.0) Euro 1.14 (1.0) (1.3) (4.9) CAC 40 5,414.68 (2.9) (2.8) (3.3) Yen 110.83 (0.2) (0.4) (1.7) Nikkei 22,298.08 (1.1) (0.6) (0.4) GBP 1.28 (0.5) (1.9) (5.6) MSCI EM 1,062.37 (1.5) (1.0) (8.3) CHF 1.00 (0.2) (0.1) (2.1) SHANGHAI SE Composite 2,795.31 (0.4) 1.9 (19.8) AUD 0.73 (1.0) (1.4) (6.5) HANG SENG 28,366.62 (0.8) 2.5 (5.6) USD Index 96.36 0.9 1.3 4.6 BSE SENSEX 37,869.23 (0.9) 0.0 2.7 RUB 67.70 1.5 6.9 17.5 Bovespa 76,514.35 (3.9) (9.7) (14.1) BRL 0.26 (1.6) (4.1) (14.3) RTS 1,056.93 (3.7) (7.7) (8.4) 88.8 85.7 81.5