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QNBFS Daily Market Report August 6, 2018

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The QSE Index declined 0.8% to close at 9,896.7

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QNBFS Daily Market Report August 6, 2018

  1. 1. Page 1 of 5 QSE Intra-Day Movement Qatar Commentary The QSE Index declined 0.8% to close at 9,896.7. Losses were led by the Insurance and Real Estate indices, falling 2.2% and 1.9%, respectively. Top losers were Qatar Insurance Company and Ezdan Holding Group, falling 3.3% and 2.8%, respectively. Among the top gainers, Investment Holding Group gained 2.2%, while Salam International Investment Limited was up 1.5%. GCC Commentary Saudi Arabia: The TASI Index fell 0.1% to close at 8,242.7. Losses were led by the Media and Health Care Equip. & Svc indices, falling 3.1% and 1.3%, respectively. Saudi Steel Pipe Co. declined 7.1%, while Arabian Shield Coop. Ins. was down 6.4%. Dubai: The DFM General Index gained 0.1% to close at 2,977.9. The Transportation index rose 1.7%, while the Consumer Staples and Discretionary index gained 0.5%. Al Salam Group Holding rose 9.0%, while Takaful Emarat was up 3.3%. Abu Dhabi: The ADX General Index fell 0.1% to close at 4,806.3. The Industrial index declined 0.8%, while the Real Estate index fell 0.7%. Abu Dhabi Ship Building Co. declined 8.1%, while Emirates Driving Company was down 6.1%. Kuwait: The Kuwait Main Market Index fell 0.2% to close at 4,937.7. The Technology index declined 2.2%, while the Oil & Gas index fell 0.9%. Burgan Co. for Well Drilling. fell 8.1%, while Kuwait Remal Real Estate Co. was down 6.3%. Oman: The MSM 30 Index rose 1.0% to close at 4,370.4. Gains were led by the Industrial and Services indices, rising 0.9% and 0.7%, respectively. Oman Telecommunication rose 7.6%, while Oman Cables Industry was up 3.6%. Bahrain: The BHB Index gained 0.3% to close at 1,353.7. The Commercial Banks index rose 0.5%, while the Services index gained 0.4%. Arab Banking Corporation rose 1.3%, while BBK was up 0.9%. QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Investment Holding Group 5.57 2.2 190.8 (8.7) Salam International Inv. Ltd. 5.28 1.5 113.5 (23.4) Mazaya Qatar Real Estate Dev. 7.35 1.4 491.9 (18.3) Qatar First Bank 5.20 1.4 225.9 (20.4) Mesaieed Petrochemical Holding 16.08 1.2 384.6 27.7 QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 7.35 1.4 491.9 (18.3) Ezdan Holding Group 9.91 (2.8) 433.5 (18.0) Mesaieed Petrochemical Holding 16.08 1.2 384.6 27.7 Al Khaleej Takaful Insurance Co. 10.61 0.2 294.4 (19.9) Qatar First Bank 5.20 1.4 225.9 (20.4) Market Indicators 05 Aug 18 02 Aug 18 %Chg. Value Traded (QR mn) 84.4 184.1 (54.1) Exch. Market Cap. (QR mn) 544,568.1 550,539.5 (1.1) Volume (mn) 3.6 7.3 (50.9) Number of Transactions 1,924 3,808 (49.5) Companies Traded 39 43 (9.3) Market Breadth 14:23 21:14 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 17,436.95 (0.8) (0.8) 22.0 15.0 All Share Index 2,881.08 (1.1) (1.1) 17.5 15.1 Banks 3,535.77 (1.6) (1.6) 31.8 14.4 Industrials 3,198.46 (0.0) (0.0) 22.1 17.0 Transportation 2,011.75 (0.3) (0.3) 13.8 12.5 Real Estate 1,807.83 (1.9) (1.9) (5.6) 15.4 Insurance 3,143.13 (2.2) (2.2) (9.7) 29.4 Telecoms 1,008.50 (0.0) (0.0) (8.2) 39.6 Consumer 6,288.14 (0.2) (0.2) 26.7 13.6 Al Rayan Islamic Index 3,896.14 (0.4) (0.4) 13.9 17.1 GCC Top Gainers ## Exchange Close # 1D% Vol. ‘000 YTD% Bupa Arabia for Coop. Ins. Saudi Arabia 90.40 10.0 488.0 (2.8) F. A. Al Hokair Saudi Arabia 23.26 9.9 2,104.4 (23.5) Co. for Cooperative Ins. Saudi Arabia 65.90 9.3 1,054.3 (30.2) Oman Telecom. Co. Oman 0.74 7.6 421.0 (38.9) Boubyan Petrochem. Co. Kuwait 1.02 6.7 563.2 51.5 GCC Top Losers ## Exchange Close # 1D% Vol. ‘000 YTD% Dallah Healthcare Co. Saudi Arabia 69.80 (5.8) 522.0 (30.9) Qatar Insurance Co. Qatar 36.62 (3.3) 108.8 (19.0) Savola Group Saudi Arabia 32.80 (3.1) 242.8 (16.9) Raysut Cement Oman 0.43 (2.7) 26.1 (45.4) QNB Group Qatar 175.00 (2.2) 116.4 38.9 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% Qatar Insurance Company 36.62 (3.3) 108.8 (19.0) Ezdan Holding Group 9.91 (2.8) 433.5 (18.0) QNB Group 175.00 (2.2) 116.4 38.9 Mannai Corporation 49.50 (1.6) 3.9 (16.8) The Commercial Bank 41.35 (1.5) 102.1 43.1 QSE Top Value Trades Close* 1D% Val. ‘000 YTD% QNB Group 175.00 (2.2) 20,467.9 38.9 Qatar Fuel Company 145.00 (0.3) 6,378.6 42.1 Mesaieed Petrochemical Holding 16.08 1.2 6,168.1 27.7 Ezdan Holding Group 9.91 (2.8) 4,315.4 (18.0) The Commercial Bank 41.35 (1.5) 4,236.2 43.1 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* 9,896.74 (0.8) (0.8) 0.7 16.1 23.18 149,592.9 15.0 1.5 4.4 Dubai 2,977.89 0.1 0.1 0.7 (11.6) 11.79 104,689.8 9.4 1.1 5.7 Abu Dhabi 4,806.30 (0.1) (0.1) (1.1) 9.3 9.52 131,070.0 12.6 1.4 5.0 Saudi Arabia 8,242.71 (0.1) (0.1) (0.6) 14.1 1,004.41 522,744.1 17.8 1.8 3.3 Kuwait 4,937.67 (0.2) (0.2) 0.1 2.3 103.09 34,079.1 15.3 0.9 4.0 Oman 4,370.44 1.0 1.0 0.8 (14.3) 5.33 18,657.0 8.8 0.9 6.2 Bahrain 1,353.74 0.3 0.3 (0.3) 1.7 2.36 20,799.2 8.5 0.9 6.0 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 5 Qatar Market Commentary  The QSE Index declined 0.8% to close at 9,896.7. The Insurance and Real Estate 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.  Qatar Insurance Company and Ezdan Holding Group were the top losers, falling 3.3% and 2.8%, respectively. Among the top gainers, Investment Holding Group gained 2.2%, while Salam International Investment Limited was up 1.5%.  Volume of shares traded on Sunday fell by 50.9% to 3.6mn from 7.3mn on Thursday. Further, as compared to the 30-day moving average of 7.1mn, volume for the day was 49.3% lower. Mazaya Qatar Real Estate Development and Ezdan Holding Group were the most active stocks, contributing 13.7% and 12.1% to the total volume, respectively. Source: Qatar Stock Exchange (* as a % of traded value) Earnings Releases and Earnings Calendar Earnings Releases Company Market Currency Revenue (mn) 2Q2018 % Change YoY Operating Profit (mn) 2Q2018 % Change YoY Net Profit (mn) 2Q2018 % Change YoY CHUBB Arabia Cooperative Insurance Co. Saudi Arabia SR 52.7 9.0% – – 10.3 5.0% Al Sagr Cooperative Insurance Co. Saudi Arabia SR 77.6 -16.7% – – 2.9 16.3% Saudi Arabia Refineries Co. Saudi Arabia SR – – -0.5 N/A -0.5 N/A Arabian Aramco Total Services Company Saudi Arabia SR – – 957.8 114.6% 457.9 NM Halwani Bros. Co. Saudi Arabia SR – – 16.0 -22.7% 8.5 -29.8% Eastern Province Cement Co. Saudi Arabia SR – – 21.0 -25.0% 19.0 -45.7% Gulf General Cooperative Insurance Co. Saudi Arabia SR 72.6 57.3% – – 3.9 100.3% Saudi Arabian Amiantit Co. Saudi Arabia SR – – -13.9 N/A -53.7 N/A Solidarity Saudi Takaful Co. Saudi Arabia SR 38.0 84.2% – – 12.0 544.3% Alahli Takaful Co. Saudi Arabia SR 48.9 -15.8% – – 1.9 -29.1% Malath Cooperative Insurance Co. Saudi Arabia SR 130.3 -9.5% – – -0.1 N/A Aljazira Takaful Taawuni Co. Saudi Arabia SR 16.2 -49.3% – – 2.4 -1.2% National General Insurance Company Dubai AED 156.7 26.6% – – 8.8 2.0% Al Firdous Holdings Dubai AED 0.5 -33.6% – – -1.8 N/A Arabian Scandinavian Insurance – Takaful Dubai AED – – – – 5.4 -5.5% RAK Properties Abu Dhabi AED 18.5 -80.8% 4.1 -82.5% 4.3 -80.1% Zain Bahrain Bahrain BHD – – – – 1.2 29.0% Source: Company data, DFM, ADX, MSM, TASI, BHB. (NM: Not Meaningful) Earnings Calendar Tickers Company Name Date of reporting 2Q2018 results No. of days remaining Status MPHC Mesaieed Petrochemical Holding Company 6-Aug-18 0 Due MCGS Medicare Group 6-Aug-18 0 Due IGRD Investment Holding Group 6-Aug-18 0 Due MERS Al Meera Consumer Goods Company 7-Aug-18 1 Due QGMD Qatari German Company for Medical Devices 8-Aug-18 2 Due IQCD Industries Qatar 8-Aug-18 2 Due MRDS Mazaya Qatar Real Estate Development 13-Aug-18 7 Due ZHCD Zad Holding Company 14-Aug-18 8 Due Source: QSE Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 49.27% 41.84% 6,275,421.39 Qatari Institutions 4.85% 24.59% (16,675,972.28) Qatari 54.12% 66.43% (10,400,550.89) GCC Individuals 2.35% 2.50% (130,005.57) GCC Institutions 2.13% 3.70% (1,322,844.24) GCC 4.48% 6.20% (1,452,849.81) Non-Qatari Individuals 13.33% 16.65% (2,803,206.29) Non-Qatari Institutions 28.07% 10.72% 14,656,606.99 Non-Qatari 41.40% 27.37% 11,853,400.70
  3. 3. Page 3 of 5 News Qatar  GISS’ bottom line rises to QR24.78mn in 2Q2018, exceeding our estimate; Retain Market Perform rating – Gulf International Services (GISS) reported net profit of QR24.78mn in 2Q2018 as compared to QR0.74mn in 2Q2017 and QR9.46mn in 1Q2018 (+161.9% QoQ), beating our estimate of QR11.73mn. The company’s revenue came in at QR682.69mn in 2Q2018, which represents an increase of 5.4% YoY (+8.8% QoQ). Reported revenue was in-line with our estimate of QR651.58mn (+4.8% divergence). EPS doubled to QR0.18 in 1H2018 from QR0.09 in 1H2017. In 1H2018, GISS posted 4.4% YoY increase in revenue amounting to QR1.31bn. GISS stated revenue in the insurance segment improved significantly versus last year, while the drilling segment reported a moderate growth in revenue. Revenue in the aviation segment reported a slight decrease, while the catering segment’s revenue was moderately down on last year. The improvement in the insurance segment was primarily due to growth in general insurance business, while the drilling segment benefited from improved asset utilization. The aviation segment was affected by reduction in Qatar aviation operations, and the catering segment was impacted by demobilization of some projects and reduced camps occupancy. In 1H2018, the group’s QR34.24mn net profit went significantly up by 116.4% on the same period of last year. The improvement was primarily driven by a slight growth in revenue and cost reduction in the drilling segment following the cost optimization initiatives undertaken by the company. The improvement achieved in the drilling segment was marginally offset by lower profit in the aviation segment due to reduced revenue from Qatar aviation operations. The effect of revenue decrease in Qatar aviation operations was somewhat offset by other operating revenues and reduced general and administrative expenses. The group is in the execution phase of some of the opportunities identified by the growth strategy initiatives that were concluded last year, according to GISS. The initiatives include revenue growth and optimization, cost rationalization and efficiency improvements. GISS stated the implementation is in different stages of progress with one of the group companies having moved into advanced stages and appointed a consultant specialized in transformation and implementation to assist in the implementation of the chosen strategies. (QNBFS Research, QSE, Gulf-Times.com)  IGRD to fully acquire Consolidated Engineering Systems – Investment Holding Group (IGRD) announced its intention to purchase the remaining shares of Consolidated Engineering Systems, its subsidiary. Consolidated Engineering Systems is a Qatari local company established in 2006, and has its activities in the sectors of engineering, sales, installation, integration, surveillance systems, in addition to the infrastructure of visual and audio technology. The current shares of IGRD in Consolidated Engineering Systems are 60.4%. IGRD intends to purchase the whole remaining shares of Consolidated Engineering Systems (39.6%). (Peninsula Qatar)  ZHCD postpones the date of disclosure of its interim financial results to August 14 – Zad Holding Company (ZHCD) decided to postpone the date of disclosure of its interim financial results for the period ended June 30, 2018 to August 14, 2018 instead of August 9, 2018. (QSE)  Qatar-US trade volume jumps 64% YoY in 1H2018 – Despite facing the ongoing economic blockade and other challenges Qatar-US bilateral trade in goods witnessed a sharp growth in the first six months of this year. The combined value of two- way trade exchange in goods during 1H2018 jumped to QR9.61bn, registering a double-digit growth of about 64% compared to QR5.86bn recorded in the corresponding period last year. With the significant rise in trade volume, the US trade surplus with Qatar has also witnessed a steep jump to reach QR3.71bn in 1H2018, up by over 54% compared to QR1.71bn of the trade surplus recorded during the same period previous year, according to the United States Census Bureau. The US exports of goods to Qatar during the January-June 2018 period stood at QR6.66bn, showing a sharp increase of about 76% compared to QR3.78bn recorded for the corresponding period last year. The value of the US imports of goods from Qatar during the first half of this year increased to QR2.95bn, up by 41% YoY from QR2.09bn for the same period in 2017. (Peninsula Qatar)  Elan Group signs pact with Omani development enterprise – Elan Group signed an agreement with Tamani Global Development & Investment, a diversified Omani enterprise that has multiple commercial, real estate, retail warehouse, healthcare and hospitality development projects in its portfolio. As part of this partnership, Elan Group will expand its Digital Out-of-Home networks and launch two Novo Cinemas megaplexes at the upcoming signature developments of Tamani Global Development & Investment, Mall of Muscat and Sohar China Downtown Malls. The agreement is a step forward towards expanding its footprint as a regional player in its field, Elan Group stated in a press statement. (Gulf-Times.com) International  Trump says US now has the upper hand on China in tariff battle – US President Donald Trump defended his use of tariffs that have inflamed tensions with China and Europe. Trump said, “We have really rebuilt China, and it’s time that we rebuild our own country now.” He added that Chinese stocks are down, weakening that nation’s bargaining power in the escalating trade war. Trump continued his focus on tariffs, tweeting that the duties are working big time and that imported goods should be taxed or made in the US. He also suggested duties will allow paying down large amounts of the $21tn in debt that has been accumulated, while reducing taxes for Americans. (Bloomberg)  UK’s trade minister says EU is pushing Britain to no-deal Brexit – British trade minister, Liam Fox said intransigence from the European Union (EU) was pushing Britain towards a no-deal Brexit. With less than eight months until Britain quits the EU, the government has yet to agree a divorce deal with Brussels and has stepped up planning for the possibility of leaving the bloc without any formal agreement. (Reuters) Regional  Consumer prices in GCC up 4.2% in June 2018 – The prices of consumer goods and services, excluding housing, in GCC countries rose 4.2% over a 12-month period ending June 2018, according to the Statistical Centre for the Cooperation Council
  4. 4. Page 4 of 5 of the Arab Countries of the Gulf (GCC-Stat). Tobacco prices saw the largest increase over the period at 20.5%, followed by transport (9.4%), restaurants & hotels (5.9%), recreation (4.0%), food (3.7%), education (2.9%), health (2.5%), communication and miscellaneous (2.1% each), and furnishings (2.0%). Prices of clothing and footwear, on the other hand, fell by 1.3%. The UAE led per-country contributions to overall GCC consumer price changes over the same period, with 2.1 percentage points, while Saudi Arabia contributed 1.7 percentage points, and Bahrain, Oman, Qatar, and Kuwait accounted for 0.1 percentage points each. (GulfBase.com)  EMBI inclusion could trigger fund inflows into GCC – Potential EMBI (Emerging Market Bond Index) inclusion could lead to an estimated $30bn of inflows into GCC, leading to tighter spreads and making primary market access easier, according to Bank of America Merrill Lynch (BofAML). Potential EMBI inclusion is a swing factor for GCC credit, excluding Oman, BofAML stated in its Global Emerging Markets Weekly report. Qatar, Saudi Arabia, the UAE, Kuwait, and Bahrain sovereign bonds will make up a sizeable portion of the index. MENA Economist at BofAML, Jean-Michel Saliba said, “We estimate 10-11% of the EMBI diversified. In theory, flows could reach $40bn, which should be supportive for credit performance in the coming months. Sovereigns will also now be able to issue debt to a new audience of EM credit-focused investors, which should increase primary demand.” Kuwait and Bahrain should benefit from the EMBI diversified weighting approach, which reduces the weight of the largest issuers relative to their amount outstanding. Flows could reach around 50% of Kuwait’s outstanding external bonds, with Bahrain also benefiting. Flows into large issuers such as Saudi Arabia and Qatar will be smaller in percentage of debt outstanding terms (an estimated 25-33%). Again, given existing holdings, the ultimate figures are likely to be smaller. (Peninsula Qatar)  Saudi Arabia’s first Sukuk issuance positive for Islamic capital market development – On July 26, Saudi Arabia’s ministry of finance debt management office announced the completion of its first Sukuk issuance under the primary dealers program, which was established for the distribution of local government Sukuk securities. This issuance, which totaled around SR3.5bn, is positive for the development of Islamic debt capital markets in Saudi Arabia because it broadens the investor base for government Sukuk securities in the primary market and supports liquidity in the secondary market, Moody’s Investors Service stated. The Saudi Arabian government has been a regular issuer of Islamic bonds since the Ministry of Finance established a Saudi Riyal-denominated Sukuk program last year. However, this issuance is the first under the newly launched primary-dealer scheme and more than 20 investors from participating financial institutions and asset managers submitted bids through an electronic platform for both their own books and on behalf of investors. (GulfBase.com)  Saudi Arabia to spend $490mn on water projects – Saudi Arabia announced its plan to spend around $490mn towards development of major water projects in the Tabuk region of the Kingdom. The Tabuk region has witnessed many achievements in the water sector in the past 12 months, including coverage of drinking water and wastewater networks, as well as reaching a number of districts and villages in different governorates of the region. (GulfBase.com)  Foundation Holdings in talks to buy health and education assets – UAE’s Foundation Holdings, the healthcare and education investment specialist firm, is negotiating the acquisition of a nursery operator in the UAE, as it weighs more deals as part of plans to deploy AED2bn by 2021. Foundation Holdings’ CEO, Abhishek Sharma said, “We had a phenomenal 2017 and this year promises to be even better. We are on track to achieve our AED2bn deployment target in five years and could even reach it sooner.” The company is in advanced talks to buy the UAE operations of an international pre-school education provider in a three-party deal to establish the largest chain of affordable nurseries in the GCC, he said. A memorandum of understanding has been signed and the transaction is expected to conclude by the end of third quarter, he added. (GulfBase.com)  Abu Dhabi’s GDP up 9% in 1Q2018 – The GDP of the Emirate of Abu Dhabi grew to AED223.6bn in 1Q2018, up 9% from AED205.1bn in 1Q2017. In a statement released by Statistics Centre–Abu Dhabi (SCAD), Abu Dhabi’s oil GDP grew by 18% to AED86.6bn during 1Q2018, up from 73.4 in 1Q2017, constituting 38.8% of the Emirate’s first quarter GDP. Non-oil GDP increased from AED131.7bn in 1Q2017 to AED136.9bn in 1Q2018, making up 61.2% of the Emirate’s GDP at current prices for 1Q2018, compared with 64.2% in the same period last year. (GulfBase.com)  Warba Bank reports net income of KD2.28mn in 2Q2018 – Warba Bank reported net income of KD2.28mn in 2Q2018. Operating revenue came in at KD12.0mn as compared to KD9.19mn in 2Q2017. Rise in profit is due to increase in financing portfolio by 22%. (Bloomberg)  Moody’s downgrades Bahrain’s ratings to ‘B2’ – Moody’s Investors Service (Moody’s) downgraded the government of Bahrain’s long-term issuer ratings to ‘B2’ from ‘B1’ and maintained the ‘Negative’ outlook. The key driver for the rating downgrade is a further rise in Bahrain’s external and government liquidity risks to particularly elevated levels, constraining access to market financing to a greater extent than Moody’s previously envisaged. Despite higher oil prices over the past year, the government’s gross borrowing needs remain very high and foreign exchange reserves very low. Meanwhile, heightened external and government liquidity pressures have not prompted the authorities to accelerate the implementation of fiscal reforms, which Moody’s expects to remain very slow. (GulfBase.com)  Investcorp completes full exit from Gulf Cryo Holding – Investcorp announced that its Gulf Opportunity Fund 1 (GOF1) has completed the sale of its remaining 15.65% equity shareholding in Gulf Cryo Holding, to other shareholders of the company. Established in 1953 in Kuwait, Gulf Cryo Holding is a leading manufacturer, distributor and service provider of industrial gases in the MENA and Turkey region. The company manufactures industrial, medical and specialty gases, which are delivered by pipeline, in bulk or in cylinders to a wide range of industries and applications. (Peninsula Qatar)
  5. 5. 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 saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa 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 5 of 5 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 (0.1%) (0.8%) (0.2%) 0.3% 1.0% (0.1%) 0.1% (1.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1,213.65 0.5 (0.8) (6.9) MSCI World Index 2,155.39 0.4 (0.0) 2.5 Silver/Ounce 15.41 0.6 (0.5) (9.0) DJ Industrial 25,462.58 0.5 0.0 3.0 Crude Oil (Brent)/Barrel (FM Future) 73.21 (0.3) (1.5) 9.5 S&P 500 2,840.35 0.5 0.8 6.2 Crude Oil (WTI)/Barrel (FM Future) 68.49 (0.7) (0.3) 13.4 NASDAQ 100 7,812.02 0.1 1.0 13.2 Natural Gas (Henry Hub)/MMBtu 2.86 3.2 2.9 (7.4) STOXX 600 389.16 0.5 (1.3) (3.6) LPG Propane (Arab Gulf)/Ton 95.25 1.2 (2.1) (2.6) DAX 12,615.76 0.4 (2.4) (5.8) LPG Butane (Arab Gulf)/Ton 100.00 (2.9) (3.8) (5.3) FTSE 100 7,659.10 1.0 (1.3) (4.1) Euro 1.16 (0.1) (0.8) (3.6) CAC 40 5,478.98 0.2 (1.1) (0.5) Yen 111.25 (0.4) 0.2 (1.3) Nikkei 22,525.18 0.4 (1.2) 0.1 GBP 1.30 (0.1) (0.8) (3.8) MSCI EM 1,073.33 0.6 (1.7) (7.3) CHF 1.01 0.1 0.0 (2.0) SHANGHAI SE Composite 2,740.44 (1.1) (5.1) (21.3) AUD 0.74 0.6 0.1 (5.2) HANG SENG 27,676.32 (0.1) (3.9) (7.9) USD Index 95.16 (0.0) 0.5 3.3 BSE SENSEX 37,556.16 1.1 0.7 2.7 RUB 63.33 (0.1) 0.9 9.9 Bovespa 81,434.98 3.7 2.4 (4.9) BRL 0.27 1.2 0.1 (10.6) RTS 1,145.08 0.4 (0.6) (0.8) 89.1 86.0 81.6

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