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QNBFS Daily Market Report December 5, 2018


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The QSE Index rose 1.4% to close at 10,602.8

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QNBFS Daily Market Report December 5, 2018

  1. 1. Page 1 of 6 QSE Intra-Day Movement Qatar Commentary The QSE Index rose 1.4% to close at 10,602.8. Gains were led by the Real Estate and Banks & Financial Services indices, gaining 1.9% and 1.1%, respectively. Top gainers were Masraf Al Rayan and Doha Bank, rising 5.2% and 4.5%, respectively. Among the top losers, Qatar Oman Investment Company fell 2.5%, while Qatar Islamic Insurance Company was down 1.6%. GCC Commentary Saudi Arabia: The TASI Index fell 0.1% to close at 7,905.1. Losses were led by the Health Care Equip. and Real Estate indices, declined 0.7% each. MEFIC REIT Fund declined 3.9%, while Al Alamiya for Cooperative Insurance Co. was down 2.5%. Dubai: The DFM General Index gained 0.3% to close at 2,675.9. The Consumer Staples and Discretionary index rose 4.5%, while the Services index gained 1.8%. Ithmaar Holding rose 5.3%, while DXB Entertainments was up 5.1%. Abu Dhabi: The ADX General Index rose 2.7% to close at 4,898.2. The Telecommunication index gained 3.4%, while the Banks index rose 3.1%. National Bank of Fujairah gained 15%, while Abu Dhabi National Co. for Building Materials was up 10.2%. Kuwait: The Kuwait Main Market Index declined 0.1% to close at 4,725.8. The Consumer Services index fell 4.4%, while the Health Care index declined 0.6%. IFA Hotels & Resorts Co. fell 35.7%, while Yiaco Medical Co. was down 12.7%. Oman: The MSM 30 Index rose 1.9% to close at 4,534.6. Gains were led by the Financial and Services indices, rising 2.4% and 0.7%, respectively. OMINVEST rose 6.6%, while Bank Dhofar was up 4.8%. Bahrain: The BHB Index rose marginally to close at 1,325.9. The Services index gained marginally, while other indices ended flat or in red. BBK rose 0.5%. QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Masraf Al Rayan 41.98 5.2 969.3 11.2 Doha Bank 22.89 4.5 751.9 (19.7) Vodafone Qatar 8.53 3.5 2,442.6 6.4 Qatar Islamic Bank 156.80 3.0 112.6 61.6 Barwa Real Estate Company 39.50 2.9 1,125.7 23.4 QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 8.53 3.5 2,442.6 6.4 Barwa Real Estate Company 39.50 2.9 1,125.7 23.4 Masraf Al Rayan 41.98 5.2 969.3 11.2 Qatar Gas Transport Company Ltd. 18.48 0.7 855.5 14.8 Doha Bank 22.89 4.5 751.9 (19.7) Market Indicators 04 Dec 18 03 Dec 18 %Chg. Value Traded (QR mn) 373.4 301.2 23.9 Exch. Market Cap. (QR mn) 595,592.7 590,796.6 0.8 Volume (mn) 11.4 7.7 47.4 Number of Transactions 6,445 5,106 26.2 Companies Traded 40 43 (7.0) Market Breadth 25:12 28:12 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 18,681.03 1.4 2.3 30.7 15.7 All Share Index 3,143.25 1.1 1.4 28.2 15.9 Banks 3,918.88 1.1 1.5 46.1 14.7 Industrials 3,330.67 0.9 2.0 27.1 15.8 Transportation 2,141.65 0.7 1.1 21.1 12.4 Real Estate 2,121.89 1.9 (0.2) 10.8 19.1 Insurance 3,050.28 0.1 1.2 (12.3) 18.2 Telecoms 1,070.87 0.9 2.7 (2.5) 43.4 Consumer 6,883.80 0.5 1.5 38.7 14.1 Al Rayan Islamic Index 3,979.40 1.8 2.4 16.3 15.6 GCC Top Gainers ## Exchange Close # 1D% Vol. ‘000 YTD% DP World Dubai 17.70 8.2 596.1 (29.2) Bupa Arabia for Coop. Ins. Saudi Arabia 77.80 7.6 704.4 25.5 Ominvest Oman 0.36 6.5 2,425.5 (15.5) Masraf Al Rayan Qatar 41.98 5.2 969.3 11.2 Bank Dhofar Oman 0.17 4.8 1,413.0 (14.6) GCC Top Losers ## Exchange Close # 1D% Vol. ‘000 YTD% Dubai Investments Dubai 1.29 (4.4) 26,520.2 (46.5) Banque Saudi Fransi Saudi Arabia 33.00 (1.9) 584.0 15.4 Saudi British Bank Saudi Arabia 33.50 (1.9) 69.7 24.1 Samba Financial Group Saudi Arabia 31.10 (1.9) 620.3 32.3 Mouwasat Med. Services Saudi Arabia 78.40 (1.9) 130.1 3.6 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 Oman Investment Co. 5.79 (2.5) 113.7 (26.7) Qatar Islamic Insurance Company 54.10 (1.6) 0.8 (1.6) Qatar National Cement Company 58.51 (1.2) 36.4 (7.0) Mannai Corporation 57.01 (1.0) 1.1 (4.2) QNB Group 199.00 (0.7) 237.8 57.9 QSE Top Value Trades Close* 1D% Val. ‘000 YTD% QNB Group 199.00 (0.7) 47,449.5 57.9 Barwa Real Estate Company 39.50 2.9 44,051.5 23.4 Industries Qatar 139.00 1.5 41,908.8 43.3 Masraf Al Rayan 41.98 5.2 39,912.6 11.2 Qatar International Islamic Bank 66.38 1.9 26,065.5 21.6 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* 10,602.84 1.4 2.3 2.3 24.4 102.34 163,609.3 15.7 1.6 4.1 Dubai 2,675.87 0.3 0.3 0.3 (20.6) 63.39 97,048.0 9.0 1.0 6.6 Abu Dhabi 4,898.15 2.7 2.7 2.7 11.4 240.17 134,333.3 13.3 1.4 4.9 Saudi Arabia 7,905.12 (0.1) 2.6 2.6 9.4 1,120.37 499,184.2 17.1 1.8 3.5 Kuwait 4,725.77 (0.1) (0.1) (0.1) (2.1) 74.42 32,319.1 16.8 0.9 4.4 Oman 4,534.63 1.9 2.8 2.8 (11.1) 9.12 19,558.3 10.7 0.8 5.7 Bahrain 1,325.93 0.0 (0.2) (0.2) (0.4) 29.69 20,197.2 9.0 0.8 6.2 Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any) 10,400 10,450 10,500 10,550 10,600 10,650 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 1.4% to close at 10,602.8. The Real Estate and Banks & Financial Services 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.  Masraf Al Rayan and Doha Bank were the top gainers, rising 5.2% and 4.5%, respectively. Among the top losers, Qatar Oman Investment Company fell 2.5%, while Qatar Islamic Insurance Company was down 1.6%.  Volume of shares traded on Tuesday rose by 47.4% to 11.4mn from 7.7mn on Monday. Further, as compared to the 30-day moving average of 6.8mn, volume for the day was 67.2% higher. Vodafone Qatar and Barwa Real Estate Company were the most active stocks, contributing 21.4% and 9.9% to the total volume, respectively. Source: Qatar Stock Exchange (* as a % of traded value) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 12/04 UK Markit Markit/CIPS UK Construction PMI November 53.4 52.5 53.2 12/04 EU Eurostat PPI MoM October 0.8% 0.5% 0.6% 12/04 EU Eurostat PPI YoY October 4.9% 4.5% 4.6% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  Qatar’s Amir receives Saudi Arabian King’s invite for GCC summit – HH the Amir Sheikh Tamim Bin Hamad Al-Thani received a written message from Saudi Arabia’s King, Salman Bin Abdulaziz Al Saud, that invites HH the Amir to attend the 39th Summit of the Supreme Council of the GCC that will be hosted by the Kingdom on December 9. (Peninsula Qatar)  QCSD registers T-bills worth QR2.65bn with three-year maturity – Qatar Central Securities Depository (QCSD) registered several treasury bills (T-bills), issued by Qatar Central Bank (QCB), for the fourth quarter of 2018. These T-bills are of different values with varying maturity periods, which include a T-bill with a nominal value of QR2.65bn and a three- year maturity period. The T-bills worth QR2.65bn registered on November 11, 2018 by QCSD will have a number of 265,000 issues, which will mature on November 11, 2021, reported QNA. In addition, the T-bills included three-month treasury bills with nominal value of QR400mn. The total number of T-bills issued was 40,000 with maturity date of February 5, 2019. It also included six-month T-bills issued with nominal value of QR200mn. The total number of T-bills issued was 20,000 with maturity date of May 1, 2019. QCSD also registered nine-month T-bills issued by QCB with nominal value QR200mn. The total number of T-bills issued was 20,000 with maturity date of August 6, 2019. (Peninsula Qatar)  QCSD announces availability of QAMCO subscribers data – Qatar Central Securities Depository (QCSD) announced the availability of subscribers data of the individuals subscribed in the shares of Qatar Aluminum Manufacturing Company (QAMCO) at all financial services companies operating in the market (practicing securities buying and selling activities for third parties) in order to facilitate the opening of accounts and transfer of shares. Accordingly, any subscriber may approach the concerned financial services company directly without the need to visit QCSD for this matter or to obtain any documents thereof for this purpose, Qatar Stock Exchange (QSE) stated. (Peninsula Qatar)  Welltower gets $300mn investment from Qatar Investment Authority – US-based Welltower stated that an affiliate of Qatar Investment Authority has established an interest in its common stock through a $300mn investment with an option to acquire interest in a development pipeline of urban senior living communities. QInvest acted as financial advisor to Qatar Investment Authority. (Bloomberg)  QCB’s Governor calls for diversifying Waqf investments – Qatar Central Bank’s (QCB) Governor, HE Sheikh Abdullah Bin Saoud Al Thani has stressed the need for conducting proper feasibility studies and research works before launching Waqf investments. Waqf investments should be done in accordance with the real needs of the society, he said. Addressing the opening session of the Global Conference on Waqf QCB’s Governor noted the need to adopt modern methods to invest in the endowments and apply advanced systems and modern technology. He also called for diversifying Waqf investments to cover different sectors, reported QNA. Ahead of launching the Waqf investments, there is a need to study the economic and social conditions of the designated society and to make sure the projects are free from risks and getting better returns. Transparency is key to Waqf investments, the QCB’s Governor noted. The Waqf, an investment that seeks to benefit those targeted by its revenues, does not achieve its full benefit except when its revenues were increased by developing methods of investment in accordance with the provisions of Shari’ah. He noted that the methods of the Waqf varied since its inception. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 21.27% 43.23% (81,976,347.93) Qatari Institutions 14.45% 17.05% (9,674,788.95) Qatari 35.72% 60.28% (91,651,136.88) GCC Individuals 0.55% 1.38% (3,075,308.48) GCC Institutions 1.99% 7.46% (20,407,673.48) GCC 2.54% 8.84% (23,482,981.96) Non-Qatari Individuals 8.61% 10.19% (5,908,935.81) Non-Qatari Institutions 53.12% 20.70% 121,043,054.65 Non-Qatari 61.73% 30.89% 115,134,118.84
  3. 3. Page 3 of 6 They have been developed to include investment in Murabaha financing, founding Waqf companies, investment in trust funds and others, he added. (Peninsula Qatar)  CEO: QFC committed to Islamic finance development – Qatar Financial Centre’s (QFC) CEO, Yousuf Mohamed Al-Jaida affirmed that the Centre recognizes the importance of endowments and Islamic finance in general and is committed to supporting the development of these two sectors through the QFC platform. He said in a speech at the opening session of the global conference on Waqf that the prestigious position of Qatar qualifies it to become a leading country in the field of Islamic finance and the management of Waqf institutions, which correspond to the pillars of economic and social development in the Qatar National Vision 2030. He pointed out that the Waqf institutions have a historic part in the ancient Islamic heritage, in addition to the possibilities and capabilities made them envisage a future of greater success and prosperity, indicating that the need now is urgent for the existence of active and effective Waqf institutions. (  Ooredoo testing its 5G network reach in the desert – Ooredoo announced that customers will be able to enjoy the ‘life- changing speeds’ of 5G across Qatar’s desert, as soon as commercial devices are available in Qatar. “The company has invested heavily in the launch of the 5G desert project to ensure the best coverage during the camping season for Qatar’s people when 5G devices become available,” Ooredoo stated. (Gulf-  UK firms signing deals worth GBP1.5bn with Qatar for World Cup – British firms are signing GBP1.5bn worth of contracts with Qatar for work on the next World Cup, more than ten times what they made at the tournament in Brazil four years ago. The huge trade bonanza was announced by the government on the back of deals with Doha to build new stadiums, cut the grass and provide pitch-side security guards. The Department for International Trade stated that UK-based companies have already signed deals for GBP940mn in Qatar and a further GBP500mn is lined up before the tournament kicks off in 2022. This compares with just GBP150mn worth of trade which British firms made in Brazil around the World Cup there in 2014, where UK-based firm, Blue Cube provided the seating in the stadiums. The World Cup deals between Britain and Qatar are part of a rise in trade between the two countries which totaled GBP3.39bn in 2017, an increase of 70% over the last five years. UK’s Minister for International Trade, George Hollingbery visited Qatar this week for the second meeting of the Joint Ministerial Economic Commercial and Technical Committee. ( International  UK’s construction PMI growth edges up to four-month high – British construction activity grew at the fastest pace in four months in November, spurred by house-building and commercial work, though Brexit worries weighed on firms’ outlook for the coming year, a survey showed. The IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) rose to 53.4 from 53.2 in October, confounding the consensus forecast for a fall to 52.5 in a Reuters poll of economists. A similar survey on manufacturers on Monday also beat expectations, despite a warning from the Bank of England last week that in a worst-case scenario, a no-deal Brexit could lead to a sharper recession than after the 2008 financial crisis. (Reuters)  UK’s consumer spending slows in run-up to Brexit – British consumer spending grew last month at its slowest pace in more than a year, with online Black Friday sales failing to offset a lack of confidence about the economy ahead of Brexit, industry data showed. Total retail spending was up 0.5% in November compared with the same month last year, slowing sharply from a rise of 1.3% in October, the British Retail Consortium stated. (Reuters)  Eurozone’s producer prices rise more than expected on energy – Eurozone’s producer prices rose more than expected in October on the back of rising energy costs, fresh data from Eurostat, the EU’s statistics agency, showed. Prices at factory gates in the 19 countries sharing the Euro rose 0.8% MoM in October against market expectations for 0.5% rise, in a Reuters poll of economists. On YoY basis, producer prices rose by 4.9% in October, against market expectations for a 4.5% gain. Energy prices rose 2.7% on the month and 14.6% on the year as crude prices rose. Still, the increase is unlikely to worry European Central Bank’s (ECB) policymakers as crude oil prices have fallen by about a third since early October, suggesting that energy prices pressures may ease in the months ahead. Without volatile energy, producer prices were unchanged on the month and rose 1.5% YoY. (Reuters)  China confident it can clinch US trade deal – China expressed confidence that it can reach a trade deal with the US, despite fresh warnings from US President, Donald Trump that he would revert to more tariffs if the two sides cannot resolve their differences. The remarks by the Chinese Commerce Ministry follow a period of relative quiet from Beijing after Trump and Chinese leader, Xi Jinping reached a temporary truce in their trade war at a meeting. In a brief statement on its website, the ministry stated China would try to work quickly to implement specific issues already agreed upon, as both sides actively promote the work of negotiations within 90 days in accordance with a clear timetable and road map. (Reuters) Regional  MENA’s beauty and personal care industry to grow twice as fast as rest of the world – The beauty and personal care industry in the MENA region, valued at $15.9bn, is poised to grow twice as fast as the rest of the world, with a staggering CAGR of 8.5% in the next three years, while the global industry, which is worth $444bn, is estimated to grow at 4.2% per annum. These findings were revealed in the Millennial Capital’s latest MENA Beauty Care Report, citing reasons of high spending per capita, affordable prices, strong consumer confidence, high literacy rates, young population with a high social media exposure and on top of that new entrants with the aim to fill the gap. (  GCC’s F&B market valued has witnessed robust growth over the past years – The GCC’s Food & Beverage (F&B) and flight catering market, valued at $130bn, has witnessed robust growth over the past years, driven by a youthful population, burgeoning middle class, high disposable incomes and rising inbound tourist numbers. With the region seeking to diversify its revenue streams away from oil and gas, the food and
  4. 4. Page 4 of 6 beverage industry has emerged as one of the most promising sectors that significantly contribute to sustainable economic development. To maintain a sustainable supply of food, Kuwait has prioritized diversification of food sources and works relentlessly to improve domestic productivity. Rising population, predominantly urban lifestyle and high per capita income have fueled food consumption in the country, where almost a quarter of the population is 14 years old or younger, creating solid prospects for F&B companies eager to benefit from the increasing demand. Enjoying strong bilateral relations with the UAE in the field of agriculture, Bahrain’s F&B sector has remained robust due to a surge in food demand, driven by rising population with a high proportion of expatriates, and steady growth of the tourism and hospitality sectors. (  Islamic finance back on solid growth track – The newly released Islamic Finance Development Report 2018, compiled by Thomson Reuters and the Islamic Corp. for the Development of the Private Sector, shows buoyant figures for the Islamic Finance industry and is positive for further growth in the near future. According to the study, the global Islamic finance industry grew by 11% in 2017 compared to the previous year to $2.4tn in assets and showed CAGR of 6% since 2012. These figures are based on data collected from 56 countries with Islamic finance industries, mostly in the Middle East and South and Southeast Asia, and from a total of 1,389 fully fledged Shari’ah-compliant financial institutions and windows. (Gulf-  Fitch raises Saudi Arabia’s 2018 GDP growth forecast – Fitch Ratings has increased Saudi Arabia’s 2018 GDP growth forecast to 2.2% from 1.8% estimated earlier, in line with the International Monetary Fund’s (IMF) estimate of the Kingdom’s growth (2.2% for 2018) released last month, a report stated. Further, Fitch Ratings has affirmed Saudi Arabia’ s credit rating at ‘A+’ with a ‘Stable’ outlook, on the back of strong fiscal and external balance sheets, reflecting the confidence in the Kingdom’s economy, Al Rajhi Capital mentioned in its monthly Economic Report. Meanwhile, recent data released by Saudi Arabian Monetary Authority (SAMA) also indicates a consistent improvement in the Kingdom’s economy. Credit to the private sector continued to increase for the seventh consecutive month (+1.7% YoY; +0.2% MoM) in October, while credit to the public sector also registered a rise (+19.7% YoY; +1.3% MoM). Further, consumer spending has continued its march north in October, as reflected by the POS transactions (+17.3% YoY; -0.1% MoM) and ATM cash withdrawals (+1.5% YoY; +7.7% MoM). Moreover, SAMA foreign reserves continued to rise for the seventh straight month (+2.3% YoY; -0.5% MoM) in October. (  ACWA Power signs a partnership deal for giant renewable energy project – Acwa Power, a leading developer, owner, and operator of power generation and water desalination plants based in Saudi Arabia, stated that it has signed a partnership deal with three international groups - Spanish company Abengoa and Chinese firms Industrial and Commercial Bank of China Limited (ICBC), Shanghai Electric Group Company (SEGC) - to set up the world's largest renewable energy project in Dubai. As per the deal, ACWA Power is the lead developer on the project, while ICBC has established its role as an international lender for Noor Energy 1. (  Ma'aden launches commercial operations at new Saudi plant – Saudi Arabian Mining Company (Ma’aden) stated that one of its subsidiaries, Waad Al Shamal Phosphate, has started commercial operation of its diammonium phosphate plant located at Ras Al Khair city. Waad Al Shamal Phosphate is 60% owned by Maaden, while 25% of the stake lies with the Mosaic Company and the rest with Saudi Basic Industries Corporation (SABIC). Announcing the launch of its commercial operation, Ma’aden stated that it will work towards gradually boosting the plant's annual production capacity. The plant’s financial impact will start to appear in Ma’aden's financial results in the fourth quarter of 2018, it added. (  SABIC may raise stake in Clariant but will not take over the company – SABIC is not targeting a full takeover of Clariant, SABIC CEO, Yousef Abdullah Al Benyan said in an interview with Neue Zuercher Zeitung, but mentioned that it may increase its 25.7% stake after the integration of its specialty chemicals business with Clariant’s. (Bloomberg)  SABIC to raise stake in Saudi Methanol for $150mn – Saudi Basic Industries Corp. (SABIC) will buy 25% of Saudi Methanol Co. from Japan for $150mn, according to a statement. SABIC will now own 75% of Saudi Methanol, also known as Arrazi, and the rest held by Japan Saudi Arabia Methanol. SABIC extended it partnership with Japan Saudi Arabia Methanol on Arrazi for 20 years. Japan Saudi Arabia Methanol will pay SABIC $1.35bn for the extension. SABIC will use some or all of the above proceeds to finance the refurbishment of or replacement of Arrazi’s existing methanol plants. Japan Saudi Arabia Methanol has the right at any time prior to March 31, 2019 to sell its remaining 25% shares in Arrazi to SABIC for $150mn. The transaction is expected to be completed in 2019. (Bloomberg)  UAE and India sign INR35bn currency swap agreement – India and the UAE signed a currency swap agreement to boost investment and enable direct trade without using Dollars or other international currencies. The swap is for INR35bn, depending on which central bank requests the amount, an Indian embassy statement stated. “The bilateral currency swap agreement between India and the UAE is expected to reduce the dependency on hard currencies like the U.S dollar,” the statement stated, adding that the two central banks had agreed the deal. While giving a push to the two local currencies, the swap deal would also reduce the transmission costs arising from exchange rate risks, it added. (Reuters)  Dubai property prices sink 7.4% as the UAE’s jobs growth slows – Prices for Dubai’s residential real estate sank 7.4% in the third quarter of 2018 from a year earlier, with the drop accelerating from a 5.8% fall in the second quarter, the UAE’s central bank stated in a report. Prices have been falling quarter-on-quarter almost continually since the start of 2017 because of a worsening supply/demand balance. The central bank quoted the REIDIN residential sales price index, which showed prices fell 2.5% from the previous quarter in July-September. Residential real estate prices in neighboring Abu Dhabi, the other big Emirate in the UAE, dropped 6.1% YoY in the third quarter after a 6.9% slide in the second quarter. One factor
  5. 5. Page 5 of 6 weakening demand for real estate is subdued employment growth in the UAE, particularly among white-collar workers who might buy homes. Most jobs in the wealthy oil-exporting country are held by foreigners. Total employment grew just 0.6% from a year ago in the third quarter — the slowest rate in over four years — after 1.2% growth in the second quarter, the central bank stated. In the first nine months of 2018, employment grew at an average rate of 1.6% against a 2.6% increase in the same period of 2017. (Reuters)  Emirates Global Aluminium seeks multi-billion debt refinancing – Emirates Global Aluminium (EGA) is looking to potentially refinance up to $6.7bn of its debt, banking sources told LPC, a fixed income news service that is part of Refinitiv. EGA, the product of a merger between two state-owned aluminium companies - Dubai Aluminium (Dubal) and Abu Dhabi’s Emirates Aluminium in 2013 - is jointly owned by Abu Dhabi investment fund, Mubadala and state company, Investment Corporation of Dubai. EGA’s debt includes a $4.9bn seven-year loan, which was fully underwritten by seven banks and signed in March 2016, and a $1.8bn seven-year loan signed by Dubal in January 2015, according to LPC data. The new deal will include the refinancing of some or the entire 2016 loan, and extend of some of its existing facilities and potentially some new financing, one banker told LPC. (Reuters)  KUNA: Kuwait says OPEC to discuss oil market conditions, stability – OPEC ministers meeting on December 6 will discuss market conditions, demand and supply as well as how to stabilize oil markets, state Kuwait News Agency quoted Oil Minister, Bakhit al-Rashidi as saying. (Reuters)  Zain’s 5G network set to go live across strategic sites in Kuwait – Zain Kuwait, the leading digital service provider in Kuwait announced that its huge investment in 5G has made lots of progress recently and the operator is ready to go live with the state-of-the-art service across all strategic and heavily populated areas of Kuwait. Zain will continue developing and expanding the 5G network gradually across Kuwait until the devices are available, expected during the course of 2019. The company also is awaiting approvals and spectrum allocation from the country’s regulatory authorities. Once commercially launched, the 5G network will empower government entities and enterprise (B2B) digital transformation, smart city development and the fourth industrial revolution. Fifth- generation technology represents a quantum leap in the operational efficiency of Zain’s network which will make it one of the first companies in Kuwait and the region to adopt this solution to meet the ever-growing digital needs of its individual and enterprise customers. Telecom services are one of the most important sectors in accelerating economic growth and promoting trade. (  Oman's Raysut Cement eyes acquiring Kenya's ARM Cement – Oman’s Raysut Cement stated that it plans to acquire Kenya’s ARM Cement, which went into administration in August, as part of its expansion plans. Raysut has expressed its interest to the administrators to acquire the company, it stated. “The acquisition will complement Raysut’s revised strategy to manufacture clinker in proximity to the markets it supplies to in East Africa,” Raysut stated that the acquisition was estimated to be worth more than $100mn. Raysut Cement is currently setting up a grinding unit in Somaliland and Mogadishu, Somalia with a Dubai-based partner. The company is also in advanced discussions to acquire cement producers in Uganda and Djibouti. (Reuters)  Oman sells OMR5mn 182-day bills at yield 2.889% – Oman sold OMR5mn of bills due on June 5, 2019 on December 3. The bills were sold at a price of 98.58, having a yield of 2.889% and will settle on December 5. (Bloomberg)  GFH Properties inks mortgage finance deal with BBK – GFH Properties, the real estate arm of Bahrain-based GFH Financial Group, stated that it has signed a strategic partnership agreement with BBK to provide mortgage financing services for its Harbour Row project. A new residential and commercial destination in the heart of capital city Manama, Harbour Row is located on the waterfront of the iconic Bahrain Financial Harbour. As a new destination in the heart of Bahrain’s capital city, The Harbour Row will bring world-class amenities, prestigious lifestyle brands and global citizens together in a vibrant new downtown development. (
  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) 45.0 70.0 95.0 120.0 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 QSE Index S&P Pan Arab S&P GCC (0.1%) 1.4% (0.1%) 0.0% 1.9% 2.7% 0.3% (1.0%) 0.0% 1.0% 2.0% 3.0% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1,238.45 0.6 1.3 (5.0) MSCI World Index 2,016.89 (2.4) (1.2) (4.1) Silver/Ounce 14.53 1.0 2.5 (14.2) DJ Industrial 25,027.07 (3.1) (2.0) 1.2 Crude Oil (Brent)/Barrel (FM Future) 62.08 0.6 5.7 (7.2) S&P 500 2,700.06 (3.2) (2.2) 1.0 Crude Oil (WTI)/Barrel (FM Future) 53.25 0.6 4.6 (11.9) NASDAQ 100 7,158.43 (3.8) (2.3) 3.7 Natural Gas (Henry Hub)/MMBtu 4.70 7.6 2.0 52.1 STOXX 600 358.43 (0.8) 0.5 (13.1) LPG Propane (Arab Gulf)/Ton 74.00 3.9 7.4 (25.3) DAX 11,335.32 (1.2) 0.9 (17.2) LPG Butane (Arab Gulf)/Ton 77.00 8.8 15.4 (29.0) FTSE 100 7,022.76 (0.8) 0.3 (14.1) Euro 1.13 (0.1) 0.2 (5.5) CAC 40 5,012.66 (0.9) 0.4 (11.0) Yen 112.77 (0.8) (0.7) 0.1 Nikkei 22,036.05 (1.6) (0.6) (3.4) GBP 1.27 (0.0) (0.2) (5.9) MSCI EM 1,014.25 (0.3) 2.0 (12.4) CHF 1.00 0.0 0.1 (2.3) SHANGHAI SE Composite 2,665.96 1.1 4.8 (23.3) AUD 0.73 (0.3) 0.4 (6.0) HANG SENG 27,260.44 0.4 3.1 (8.8) USD Index 96.97 (0.1) (0.3) 5.3 BSE SENSEX 36,134.31 (0.4) (1.4) (4.0) RUB 66.84 0.5 (0.2) 16.0 Bovespa 88,624.45 (2.1) (0.6) (0.5) BRL 0.26 (0.3) 0.4 (14.0) RTS 1,155.88 0.1 2.6 0.1 83.9 80.1 78.5