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QNBFS Daily Market Report August 7, 2018


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The QSE Index rose 0.4% to close at 9,933.2

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QNBFS Daily Market Report August 7, 2018

  1. 1. Page 1 of 6 QSE Intra-Day Movement Qatar Commentary The QSE Index rose 0.4% to close at 9,933.2. Gains were led by the Real Estate and Insurance indices, gaining 2.7% and 1.4%, respectively. Top gainers were Qatar Cinema & Film Distribution Company and Ezdan Holding Group, rising 9.2% and 4.4%, respectively. Among the top losers, Islamic Holding Group fell 2.9%, while Medicare Group was down 2.4%. GCC Commentary Saudi Arabia: The TASI Index fell 0.2% to close at 8,230.1. Losses were led by the Utilities and Insurance indices, falling 1.3% and 1.1%, respectively. Swicorp Wabel REIT Fund declined 8.5%, while Al Sagr Cooperative Insurance Co. was down 7.7%. Dubai: The DFM General Index declined marginally to close at 2,977.8. The Insurance index fell 0.9%, while the Transportation index declined 0.5%. Ekttitab Holding Company fell 4.5%, while Dubai Islamic Ins. and Reins. Co. was down 3.5%. Abu Dhabi: The ADX General Index rose 1.6% to close at 4,883.5. The Banks index gained 2.6%, while the Investment & Financial Services index rose 1.0%. Arkan Building Materials gained 5.4%, while Abu Dhabi National Energy Co. was up 4.2%. Kuwait: The Kuwait Main Market Index fell 0.1% to close at 4,934.9. The Technology index declined 7.4%, while the Telecom. index fell 0.5%. First Takaful Insurance Company fell 10.0%, while Amar Finance & Leasing Co. was down 9.9%. Oman: The MSM 30 Index rose 1.1% to close at 4,420.3. Gains were led by the Financial and Services indices, rising 1.1% and 0.3%, respectively. Oman Telecommunication and Bank Sohar were up 4.9% each. Bahrain: The BHB Index fell 0.1% to close at 1,352.4. The Commercial Banks index declined 0.3%, while the Services index fell 0.2%. Ithmaar Holding declined 4.8%, while BBK was down 1.4%. QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar Cinema & Film Distribution 17.50 9.2 0.9 (30.0) Ezdan Holding Group 10.35 4.4 482.2 (14.3) Mazaya Qatar Real Estate Dev. 7.60 3.4 1,662.6 (15.6) Dlala Brokerage & Inv. Holding Co. 14.82 3.2 178.6 0.8 Gulf International Services 17.63 3.0 558.9 (0.4) QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD% Mazaya Qatar Real Estate Dev. 7.60 3.4 1,662.6 (15.6) Al Khaleej Takaful Insurance Co. 10.75 1.3 756.6 (18.8) Qatar Gas Transport Company Ltd. 17.00 0.6 734.9 5.6 Gulf International Services 17.63 3.0 558.9 (0.4) Ezdan Holding Group 10.35 4.4 482.2 (14.3) Market Indicators 06 Aug 18 05 Aug 18 %Chg. Value Traded (QR mn) 207.6 84.4 145.8 Exch. Market Cap. (QR mn) 547,264.7 544,568.1 0.5 Volume (mn) 7.9 3.6 121.4 Number of Transactions 3,920 1,924 103.7 Companies Traded 42 39 7.7 Market Breadth 23:15 14:23 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 17,501.23 0.4 (0.5) 22.4 15.0 All Share Index 2,899.71 0.6 (0.5) 18.2 15.2 Banks 3,552.12 0.5 (1.1) 32.4 14.4 Industrials 3,199.31 0.0 (0.0) 22.1 16.9 Transportation 2,012.89 0.1 (0.2) 13.9 12.5 Real Estate 1,856.66 2.7 0.7 (3.1) 15.8 Insurance 3,187.99 1.4 (0.8) (8.4) 29.8 Telecoms 1,011.82 0.3 0.3 (7.9) 39.7 Consumer 6,280.68 (0.1) (0.3) 26.5 13.6 Al Rayan Islamic Index 3,901.44 0.1 (0.2) 14.0 17.1 GCC Top Gainers ## Exchange Close # 1D% Vol. ‘000 YTD% F. A. Al Hokair Saudi Arabia 24.90 7.1 6,059.4 (18.1) Oman Telecom. Co. Oman 0.77 4.9 216.6 (35.9) Bank Sohar Oman 0.13 4.9 290.0 (6.6) National Bank of Oman Oman 0.18 4.0 907.6 (3.9) Dallah Healthcare Co. Saudi Arabia 72.30 3.6 295.9 (28.4) GCC Top Losers ## Exchange Close # 1D% Vol. ‘000 YTD% Middle East Health. Co. Saudi Arabia 53.00 (6.2) 199.8 (1.6) Al Ahli Bank of Kuwait Kuwait 0.31 (4.8) 73.1 8.3 Gulf Bank Kuwait 0.26 (3.0) 15,408.8 10.1 Co. for Cooperative Ins. Saudi Arabia 64.00 (2.9) 335.9 (32.2) Sembcorp Salalah Power. Oman 0.22 (2.2) 46.8 (4.3) 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% Islamic Holding Group 28.21 (2.9) 23.2 (24.8) Medicare Group 70.05 (2.4) 92.5 0.3 Qatari Investors Group 31.84 (1.6) 80.5 (13.0) Qatar National Cement Company 57.50 (1.3) 2.5 (8.6) Widam Food Company 68.40 (0.8) 29.9 9.4 QSE Top Value Trades Close* 1D% Val. ‘000 YTD% QNB Group 174.90 (0.1) 40,132.0 38.8 Industries Qatar 125.00 0.1 18,535.3 28.9 The Commercial Bank 41.98 1.5 17,822.9 45.3 Mazaya Qatar Real Estate Dev. 7.60 3.4 12,592.6 (15.6) Qatar Islamic Bank 135.30 0.2 12,443.5 39.5 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* 9,933.22 0.4 (0.5) 1.1 16.5 56.98 150,333.6 15.0 1.5 4.4 Dubai 2,977.78 (0.0) 0.1 0.7 (11.6) 25.56 104,705.9 9.4 1.1 5.7 Abu Dhabi 4,883.54 1.6 1.5 0.5 11.0 32.70 132,774.2 12.8 1.4 4.9 Saudi Arabia 8,230.13 (0.2) (0.3) (0.8) 13.9 1,135.20 521,866.6 17.8 1.8 3.3 Kuwait 4,934.87 (0.1) (0.2) 0.0 2.2 101.76 34,033.2 15.3 0.9 4.0 Oman 4,420.34 1.1 2.2 1.9 (13.3) 7.11 18,788.2 9.0 0.9 6.2 Bahrain 1,352.39 (0.1) 0.2 (0.4) 1.6 20.62 20,763.0 8.6 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) 9,800 9,850 9,900 9,950 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 6 Qatar Market Commentary  The QSE Index rose 0.4% to close at 9,933.2. The Real Estate and Insurance indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari and GCC shareholders.  Qatar Cinema & Film Distribution Company and Ezdan Holding Group were the top gainers, rising 9.2% and 4.4%, respectively. Among the top losers, Islamic Holding Group fell 2.9%, while Medicare Group was down 2.4%.  Volume of shares traded on Monday rose by 121.4% to 7.9mn from 3.6mn on Sunday. Further, as compared to the 30-day moving average of 7.1mn, volume for the day was 11.5% higher. Mazaya Qatar Real Estate Development and Al Khaleej Takaful Insurance Company were the most active stocks, contributing 20.9% and 9.5% 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 DP World Ltd Moody's Dubai FC CIR/LC CIR/LT Baa2/Baa2/– Baa1/Baa1/ Baa1  Stable – National Bank of Bahrain Moody's Bahrain FBD/BCA/ABCA/ LBD/LT-LBD/ LT-CRA/ LT CRRF/ CRRD B2/b1/b1/B1/ Ba3(cr)/Ba3/Ba3 B3/b2/b2/B2/ B1(cr)/B1/B1  Negative – Khaleeji Commercial Bank Moody's Bahrain ABCA/LT CRRF/ LC CIR/BCA/ LT CRRD/FC CIR/ LT CRA b1/Ba3/B1/b1/ Ba3/B1/Ba3(cr) b2/B1/B2/b2/ B1/B3/B1(cr)  Negative – Source: News reports (* ABCA – Adjusted Baseline Credit Assessment, LT CRRF – LT Counterparty Risk Rating Foreign, LC CIR – LC Curr Issuer Rating, BCA – Baseline Credit Assessment, LT CRRD – LT Counterparty Risk Rating Domestic, FC CIR – FC Curr Issuer Rating, LT CRA – LT Counterparty Risk Assessment, FBD – Foreign LT (Long Term) Bank Deposits, LBD – Local Bank Deposits, LT – Long Term, CRA – Counterparty Risk Assessment) Earnings Releases Company Market Currency Revenue (mn) 2Q2018 % Change YoY Operating Profit (mn) 2Q2018 % Change YoY Net Profit (mn) 2Q2018 % Change YoY Dur Hospitality Co. Saudi Arabia SR – – 14.9 -49.6% 14.1 -55.5% Al-Ahlia Insurance Co. Saudi Arabia SR 43.2 -7.1% – – 2.1 15.5% AXA Cooperative Insurance Co. Saudi Arabia SR 184.0 -16.3% – – 1.9 -26.2% Salama Cooperative Insurance Co. Saudi Arabia SR 224.3 11.0% – – 0.8 -64.9% Basic Chemical Industries Co. Saudi Arabia SR – – 22.9 -3.0% 13.0 4.0% Saudi Cable Co. Saudi Arabia SR – – -23.8 N/A -97.2 N/A Allied Cooperative Insurance Group Saudi Arabia SR 114.1 11.6% – – -2.1 N/A Al Kathiri Holding Co. Saudi Arabia SR – – 2.2 18.1% 2.3 28.2% Savola Group Saudi Arabia SR – – 234.5 -19.5% 140.6 -38.7% Alandalus Property Co. Saudi Arabia SR – – 22.5 -23.9% 12.2 -55.9% Anaam International Holding Group Saudi Arabia SR – – 2.2 N/A 2.1 N/A Arabian Scandinavian Insurance – Takaful Dubai AED – – – – 5.4 -5.5% Agthia Group Abu Dhabi AED 516.8 -5.5% 61.3 -2.6% 62.0 -5.7% Agility The Public Warehousing Company Kuwait KD – – 28.2 14.1% 20.0 18.7% Trafco Group Bahrain BHD 10.1 -1.6% 0.7 23.8% 0.4 4.7% Inovest Bahrain USD 9.7 7.7% 6.8 0.0% 7.2 -21.0% Source: Company data, DFM, ADX, MSM, TASI, BHB. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 27.92% 33.74% (12,077,477.61) Qatari Institutions 5.82% 16.04% (21,210,992.41) Qatari 33.74% 49.78% (33,288,470.02) GCC Individuals 0.37% 0.81% (922,326.42) GCC Institutions 0.31% 12.04% (24,337,810.70) GCC 0.68% 12.85% (25,260,137.12) Non-Qatari Individuals 9.17% 8.89% 579,326.99 Non-Qatari Institutions 56.41% 28.49% 57,969,280.15 Non-Qatari 65.58% 37.38% 58,548,607.14
  3. 3. Page 3 of 6 Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/06 GE Markit Markit Germany Construction PMI July 50.0 – 53.0 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 MERS Al Meera Consumer Goods Company 7-Aug-18 0 Due QGMD Qatari German Company for Medical Devices 8-Aug-18 1 Due IQCD Industries Qatar 8-Aug-18 1 Due MRDS Mazaya Qatar Real Estate Development 13-Aug-18 6 Due ZHCD Zad Holding Company 14-Aug-18 7 Due Source: QSE News Qatar  MPHC posts 20.9% YoY increase but 13.1% QoQ decline in net profit in 2Q2018 – Mesaieed Petrochemical Holding Company's (MPHC) net profit rose 20.9% YoY to QR309.82mn in 2Q2018. However, on QoQ basis net profit declined 13.1%, due to the planned annual maintenance shutdown in one of the group companies’ plants. The company's share of results from joint ventures came in at QR272.09mn in 2Q2018, which represents an increase of 18.5% YoY. However, on QoQ basis share of results from joint ventures declined 14.3%. EPS amounted to QR0.53 in 1H2018 as compared to QR0.37 in 1H2017. In 1H2018, MPHC reported net profit of QR666.46mn as compared to QR468.59mn for the same period of the previous year. The increase in profit was driven by improved selling prices by 13% and increased sales volumes by 6%, as the previous year witnessed a planned turnaround in one of the group companies’ plants. The group’s profit for the period was also aided by the recognition of a tax refund of approximately QR64mn for the period. The group continued to benefit from the supply of competitively-priced ethane feedstock and fuel gas under long- term supply agreements. This contracting arrangement is an important value driver for the group’s profitability in a challenging market condition, MPHC stated. The closing cash position after the first six months of operations was a robust QR1.2bn as of June 30, 2018. Total assets stood at QR14.6bn at the end of June 30, 2018 as compared to QR14.8bn at the end of December 31, 2017. (Company Releases, QSE,  MCGS' net profit declines 13.0% YoY and 37.4% QoQ in 2Q2018 – Medicare Group's (MCGS) net profit declined 13.0% YoY (- 37.4% QoQ) to QR12.80mn in 2Q2018. In 1H2018, MCGS reported net profit of QR33.25mn as compared to QR32.59mn for the same period of the previous year. EPS amounted to QR1.18 in 1H2018 as compared to QR1.16 in 1H2017. (QSE)  IGRD's net profit declines 0.3% YoY and 38.4% QoQ in 2Q2018 – Investment Holding Group's (IGRD) net profit declined 0.3% YoY (-38.4% QoQ) to QR8.89mn in 2Q2018. In 1H2018, IGRD reported net profit of QR23.33mn as compared to QR21.0mn for the same period of the previous year. EPS amounted to QR0.28 in 1H2018 as compared to QR0.25 in 1H2017. (QSE)  QGRI’s subsidiary General Company for Water and Beverages releases its new product – Qatar General Insurance & Reinsurance Company (QGRI) announced that its indirectly owned subsidiary General Company for Water and Beverages W.L.L owned by its subsidiary Qatar General Holding with 60% of the share capital (40% is owned by Al Sari Trading Company W.L.L) released its new product of pure drinking water into the markets under the trademark name of ‘Al Rawda’. (QSE)  QFC: Qatar’s new business growth hits nine-month high – Qatar’s non-hydrocarbon private sector started the third quarter on a solid footing, according to the latest Qatar Financial Centre (QFC) Qatar PMI data. A survey-record rate of job creation alongside marked new order growth contributed to July’s findings. Furthermore, business confidence has improved to the highest level recorded since the survey’s inception in April 2017. The survey, compiled for QFC by IHS Markit, has been conducted since April 2017 and provides an early indication of operating conditions in Qatar. The headline figure derived from the survey is the Purchasing Managers’ Index (PMI). The headline seasonally adjusted QFC PMI, a composite gauge designed to give a single-figure snapshot of operating conditions in the non-oil and gas private sector, rose to 52 in July, up from 51.8 in June. The figure was indicative of a moderate improvement in business conditions, and one that was above the survey average of 51.5. Inflows of new business increased at a marked rate during July. Firms linked stronger demand to improving domestic economic conditions and promotional activity. Reflecting new order growth, output increased in July, albeit at a fractionally slower pace than recorded in June, the survey stated. (  Qatar Chamber, Oman’s SIPC team explore ways to enhance trade ties – Qatar Chamber (QC) held a meeting with a delegation from the Sohar Industrial Port Company (SIPC), where they discussed ways and mechanisms to enhance joint cooperation in various fields besides identifying the investment opportunities available at the port. Qatar Chamber’s First Vice- Chairman, Mohamed Bin Ahmed Bin Twar, said there is an interest from Qatari business owners and investors in identifying investment opportunities in the Sultanate, stressing that the mutual visits and bilateral meetings between the Qatari and Omani sides in recent times resulted in the signing of a large number of agreements and partnership deals between the two sides, which contributed to deepening trade ties between the private sector in Qatar and Oman. (Peninsula Qatar)
  4. 4. Page 4 of 6  Self-sufficiency in dairy products increases to 84% – Qatar has achieved remarkable progress in the field of self-sufficiency in dairy products since May 2017. The country’s self-sufficiency in dairy products now stands at 84% compared to 28% in May last year. The self-sufficiency rate is going to get a further fillip in coming months as four new projects to increase production of dairy products are expected to be implemented, according to a senior official at the Ministry of Municipality and Environment (MME). Qatar’s dairy sector has undergone a drastic transformation over the last one year and the siege was a turning point for this sector. One of the aims of the siege was to cripple country’s food security, but on the contrary production of dairy items has increased over the last one year and the private sector has played a crucial role in strengthening this sector. (Peninsula Qatar)  QTA, German firm in a deal to promote destination Qatar – Qatar Tourism Authority (QTA) and DER Touristik Deutschland have joined hands to further boost awareness of Qatar as a tourism destination. Such collaboration also aims to attract more Germans to visit Qatar, which is now the most open country in the region. In a press statement, QTA noted that the deal comes following a 22% rise in German visitors to Qatar in 2017 compared to the previous year. As part of the partnership, DER Touristik will considerably expand the portfolio of its tour operator brands Dertour and Meier’s Weltreisen Qatar for the 2018-19 winter season. Qatar’s tourism infrastructure is expected to receive a major boost in 2019 when the first phase of Doha’s new metro system comes online and the much- anticipated National Museum of Qatar opens its doors to the public. ( International  US urges Iran to take up offer of talks amid renewed US sanctions – US President, Donald Trump’s top security adviser urged Iran to take up an offer of talks with the US or suffer more pain from economic sanctions, but Iran’s President said US needed first to prove it can be trusted. Hours before revived US sanctions were due to kick in, White House national security adviser John Bolton said Iran should pay heed to Trump’s willingness to negotiate. So-called snapback sanctions, due to come into force early on August 7, 2018, target Iranian purchases of US Dollars, metals trading, coal, industrial software and its auto sector. Foes for decades, the US and Iran have been increasingly at odds over Iran’s growing political and military influence in the Middle East since Trump took office in January 2017. The renewed sanctions were among those lifted under a 2015 deal between world powers and Tehran on curbing Iran’s nuclear program. Trump abandoned the deal in May. Heavier US sanctions, aimed at Iran’s oil sector, are due in November. Further, the European Union vowed to counter US President, Donald Trump’s renewal of sanctions on Iran, in a test of the European Union’s ability to preserve a deal that saw Iran limit its nuclear ambitions in exchange for removing strict curbs on its economy. (Reuters)  Eurozone’s investor morale rises as trade fears ease – Investor morale in the Eurozone improved for the second month running in August, a survey showed, as concerns about an all-out trade war between the European Union and the US subsided. Sentix’s index for the Eurozone rose to 14.7 from 12.1 in July. The Reuters consensus forecast was for a rise to 13.5. A sub-index measuring future expectations improved but remained in negative territory, suggesting investors consider the Eurozone economy to be in a cooling phase, Sentix stated. (Reuters)  German industrial orders plunge most in nearly 1-1/2 years – German industrial orders fell more than expected in June, posting their steepest monthly drop in nearly a year and a half, suggesting that trade tensions caused by US President Donald Trump might curtail growth in Europe’s largest economy. The Federal Statistics Office stated that contracts for ‘Made in Germany’ goods fell by 4.0% on the month in June after rising 2.6% the previous month. That was the biggest drop since January 2017 and undershot a Reuters poll of analysts, who had predicted a 0.4% decrease. The overall drop in industrial orders was driven by a 4.7% decline in foreign demand, with orders from countries outside the Eurozone falling the most. Orders for capital goods and consumer goods came in particularly weak. (Reuters)  Japan’s June real wages rise at fastest pace since 1997 – Japanese workers’ inflation-adjusted real wages rose in June at the fastest pace in more than 21 years, fuelled by an increase in summer bonuses, government data showed, in an encouraging sign that consumer spending and inflation will pick up. The 2.8% rise in real wages in June from a year earlier was the biggest gain since 6.2% annual increase in January 1997 and followed 1.3% annual increase in May, the labor ministry’s data showed. The data should be encouraging to the Bank of Japan as it struggles to accelerate inflation to its 2% target despite more than five years of massive monetary stimulus. Nominal cash earnings rose 3.6% YoY in June, faster than 2.1% annual increase in May. (Reuters)  Japan’s household spending falls, but wage growth hits 21-year high – Japan’s household spending fell for the fifth straight month in June but real wages rose at their fastest pace in more than a 21 years due to higher summer bonuses, which could provide some support for consumer prices. Household spending fell 1.2% in June from a year earlier, government data showed, marking the fifth straight month of declines. However, the fall was smaller than market forecasts of 1.6% slide and a 3.9% drop in May. (Reuters)  China's July exports growth still seen holding up despite US tariffs – China’s exports are expected to have maintained solid growth in July despite new tariffs on billions of Dollars of shipments to the US, though the outlook has darkened as both sides raised the stakes in a trade conflict that has rattled financial markets. Economists said that tariffs on $34bn of China’s exports to the US, which went into effect on July 6, so far are not having a significant impact on overall Chinese exports. (Reuters) Regional  The Middle East’s hospitality market witnessed YoY decline in May 2018 – Overall, the majority of the internationally branded four and five star hotels in the Middle East’s hospitality market witnessed a decline across occupancy, average room rate (ADR) and revenue per available room (RevPAR) in May 2018 when compared to May 2017. In terms of KPIs, Abu Dhabi maintained the highest occupancy for the month of May with a 76.6% occupancy rate. Saudi Arabia was the top performer across the
  5. 5. Page 5 of 6 other metrics with Jeddah recording the highest ADR of $351, resulting in the highest RevPAR of $259 in May 2018. Due to Ramadan beginning in mid-May this year and the onset of the summer season, the overall decline in performance in the region is unsurprising. Saudi Arabia, however, benefitted from the large influx of pilgrims during the holy month. Over 2mn pilgrims were expected to have visited the holy city, resulting in increased KPIs across Makkah, Madinah and Jeddah, with declines only in Riyadh. (  Private debt sales lure MENA borrowers as bond yields rise – Selling bonds in the public market are proving to be too much drama for some companies in the Middle East and North Africa (MENA) region. They’re opting for private placements instead, which can be done in smaller tranches, are quicker to execute and keep companies from having to bare their finances for all to see. They’re also less expensive. Borrowers in the MENA region have raised $3.1bn this way so far in 2018, almost matching last year’s total of $3.8bn, according to Dealogic. (  NMC Healthcare eyes expansion in Saudi Arabia – Abu Dhabi’s NMC Healthcare is planning to expand in Saudi Arabia due to growing opportunities and strong demand in the healthcare sector, its CEO said. The London-listed company has significantly increased its presence in Saudi Arabia in recent times and currently owns five hospitals with a combined bed capacity of 650. NMC Healthcare’s CEO, Prasanth Manghat said, “With a population of 33mn, increasing levels of health insurance and disposable incomes on the rise, the Kingdom of Saudi Arabia is a highly attractive market with strong demographic demand. Hence the reason for our expansion into the Kingdom, making us the second largest player in the private sector.” (  L'azurde Company for Jewelry announces the signing of SPA to acquire the operator of TOUS international global brand – L'azurde Company for Jewelry announced that after completion of commercial, legal and financial due diligence, it has signed share purchase agreement (SPA) to acquire 100% equity stake in the Izdiad Commercial Company of Arabia (Izdiad), the sole- franchisee and operator of TOUS international franchise in Saudi Arabia. This represents a major development for the company, establishing a strong presence in the affordable jewelry segment and adding a new source of growth and profitability. Izdiad has demonstrated continuous solid growth in revenues and profits since its inception, with its 2017 net income reaching SR18.8mn. (Tadawul)  CMA announces the approval of the public offering of an investment fund – Saudi Arabia’s Capital Market Authority (CMA) issued its resolution approving the public offer of AlAhli MSCI Saudi ETF by NCB Capital Company. (Tadawul)  Moody's downgrades Bahraini banks’ ratings – Moody's Investors Service (Moody's) downgraded to ‘B2’ from ‘B1’, the long-term local currency deposit ratings of BBK and National Bank of Bahrain. Moody's also downgraded to ‘B2’ from ‘B1’ the long-term local currency issuer ratings of Bahrain Islamic Bank and Khaleeji Commercial Bank. The outlook on the long term deposit and issuer ratings for all banks remains ‘Negative’, in line with the ‘Negative’ outlook assigned to Bahrain's ‘B2’ issuer rating. At the same time, Moody's has downgraded to ‘B3’ from ‘B2’ the long-term foreign currency deposit ratings of BBK and National Bank of Bahrain and long-term foreign currency issuer ratings of Bahrain Islamic Bank and Khaleeji Commercial Bank, which is the same level as the country ceiling for foreign currency deposits. Moody's has also downgraded the baseline credit assessments (BCAs) of National Bank of Bahrain, BBK and Khaleeji Commercial Bank to ‘b2’ from ‘b1’ and affirmed the BCA of Bahrain Islamic Bank at ‘b2’. (Moody’s)  United Arab Bank concludes $185mn financing – United Arab Bank (UAB) announced the successful conclusion of its $185mn syndicated term financing facilities signed on July 30, 2018. The two-year bullet term financing facilities comprise of a Conventional facility and a Commodity Murabaha financing facility, each carrying a margin of 1.50% per annum over Libor. Both facilities have a one-year extension option at the end of year two at the discretion of each lender. Proceeds of the facility will be used for general corporate purposes and the refinancing of an existing syndicated facility. The facilities were initially launched at $150mn and closed at $185mn due to an oversubscription the facility. (  BARKA's net profit rises to $39.3mn in 2Q2018 – Al Baraka Banking Group (BARKA) recorded net profit of $39.3mn in 2Q2018 as compared to $35.7mn in 2Q2017. Total operating income came in at $255.3mn as compared to $255.5mn in 2Q2017. Total assets stood at $24.64bn at the end of June 30, 2018 as compared to $25.45bn at the end of December 31, 2017. Receivables stood at $11.34bn, while customer current and other accounts stood at $5.33bn at the end of June 30, 2018. EPS came in at $0.0191 in 2Q2018 as compared to $0.029 in 2Q2017. (Bahrain Bourse)  Bank ABC Islamic announces net profit of $15.6mn in 1H2018 – Bank ABC Islamic announced that its net profit for 1H2018 was $15.6mn, 3% higher than the net profit of $15.1mn reported in 1H2017. Net profit declined to $7.4mn in 2Q2018 as compared to net profit of $8.7mn in 2Q2017, mainly due to one-off fee income from gain on sale of investment in 2Q2017. Total operating income rose to $20.6mn as compared to $19mn for 1H2017. Total assets stood at $1.749bn as of June 30, 2018 as compared to $1.559bn as of December 31, 2017. (
  6. 6. 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 6 of 6 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 (0.2%) 0.4% (0.1%) (0.1%) 1.1% 1.6% (0.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% 2.0% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1,207.51 (0.5) (0.5) (7.3) MSCI World Index 2,157.34 0.1 0.1 2.6 Silver/Ounce 15.29 (0.8) (0.8) (9.7) DJ Industrial 25,502.18 0.2 0.2 3.2 Crude Oil (Brent)/Barrel (FM Future) 73.75 0.7 0.7 10.3 S&P 500 2,850.40 0.4 0.4 6.6 Crude Oil (WTI)/Barrel (FM Future) 69.01 0.8 0.8 14.2 NASDAQ 100 7,859.68 0.6 0.6 13.9 Natural Gas (Henry Hub)/MMBtu 2.87 0.3 0.3 (7.1) STOXX 600 388.66 (0.4) (0.4) (4.0) LPG Propane (Arab Gulf)/Ton 96.63 1.7 1.7 (2.4) DAX 12,598.21 (0.4) (0.4) (6.2) LPG Butane (Arab Gulf)/Ton 100.00 (2.4) (2.4) (7.8) FTSE 100 7,663.78 (0.5) (0.5) (4.6) Euro 1.16 (0.1) (0.1) (3.8) CAC 40 5,477.18 (0.3) (0.3) (0.8) Yen 111.40 0.1 0.1 (1.1) Nikkei 22,507.32 (0.2) (0.2) (0.1) GBP 1.29 (0.4) (0.4) (4.2) MSCI EM 1,071.00 (0.2) (0.2) (7.5) CHF 1.00 (0.2) (0.2) (2.2) SHANGHAI SE Composite 2,705.16 (1.4) (1.4) (22.4) AUD 0.74 (0.2) (0.2) (5.4) HANG SENG 27,819.56 0.5 0.5 (7.4) USD Index 95.36 0.2 0.2 3.5 BSE SENSEX 37,691.89 (0.0) (0.0) 2.7 RUB 63.75 0.7 0.7 10.6 Bovespa 81,050.76 (1.0) (1.0) (5.8) BRL 0.27 (0.7) (0.7) (11.3) RTS 1,138.57 (0.6) (0.6) (1.4) 89.3 86.1 81.9