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QSE Intra-Day Movement
Qatar Commentary
The QSE Index declined 0.2% to close at 9,224.7. Losses were led by the Banks &
Financial Services and Insurance indices, falling 0.6% each. Top losers were The
Commercial Bank and Qatar Navigation, falling 2.7% and 2.0%, respectively. Among
the top gainers, Mannai Corporation gained 3.2%, while Ezdan Holding Group was up
2.8%.
GCC Commentary
Saudi Arabia: The TASI Index fell 0.8% to close at 8,278.5. Losses were led by the
Media and Cons. Durables indices, falling 2.0% and 1.8%, respectively. Al Sorayai
Trading & Ind. declined 10.0%, while Emaar The Economic City was down 5.4%.
Dubai: The DFM General Index gained 0.4% to close at 3,054.5. The Consumer
Staples and Discretionary index rose 1.8%, while the Real Estate & Const. index
gained 0.6%. Takaful Emarat rose 14.6%, while Arabtec Holding was up 5.9%.
Abu Dhabi: The ADX General Index rose 0.6% to close at 4,691.7. The Telecom.
index gained 1.2%, while the Industrial index rose 1.0%. National Bank of Fujairah
gained 14.4%, while Emirates Driving Company was up 5.7%.
Kuwait: The Kuwait Main Market Index rose 0.1% to close at 4,839.9. The Cosumer
Goods index gained 1.1%, while the Financial Services index rose 0.3%. National
International Holding Co. gained 7.3%, while Arabi Group Holding Co. was up 5.6%.
Oman: The MSM 30 Index rose 0.1% to close at 4,601.6. The Financial index gained
0.3%, while the other indices ended in red. HSBC Bank Oman rose 2.6%, while
National Aluminium Products was up 2.5%.
Bahrain: The BHB Index gained 0.8% to close at 1,274.5. The Hotels & Tourism
index rose 2.2%, while the Investment index gained 1.8%. United Gulf Holding
Company rose 10.0%, while Gulf Hotel Group was up 3.1%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Mannai Corporation 48.50 3.2 5.3 (18.5)
Ezdan Holding Group 9.08 2.8 205.4 (24.8)
Dlala Brokerage & Inv. Holding Co. 13.94 2.6 127.3 (5.2)
Qatar Industrial Manufacturing Co 41.00 1.9 1.5 (6.2)
Gulf Warehousing Company 41.97 1.7 6.5 (4.6)
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Vodafone Qatar 8.62 0.2 687.7 7.5
Mesaieed Petrochemical Holding 15.50 (1.0) 505.1 23.1
QNB Group 162.97 (0.6) 428.1 29.3
Masraf Al Rayan 34.69 (0.9) 373.0 (8.1)
Qatar Fuel Company 146.00 1.4 314.2 43.1
Market Indicators 10 June 18 07 June 18 %Chg.
Value Traded (QR mn) 239.1 431.3 (44.6)
Exch. Market Cap. (QR mn) 511,315.4 511,542.2 (0.0)
Volume (mn) 4.9 9.9 (50.2)
Number of Transactions 3,130 5,227 (40.1)
Companies Traded 41 42 (2.4)
Market Breadth 24:15 11:31 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 16,252.96 (0.2) (0.2) 13.7 13.7
All Share Index 2,708.97 0.1 0.1 10.5 14.2
Banks 3,277.89 (0.6) (0.6) 22.2 13.4
Industrials 2,935.67 0.0 0.0 12.1 15.4
Transportation 1,864.16 (0.4) (0.4) 5.4 11.8
Real Estate 1,703.87 1.8 1.8 (11.0) 14.8
Insurance 3,260.58 (0.6) (0.6) (6.3) 27.7
Telecoms 1,031.24 0.9 0.9 (6.1) 30.9
Consumer 6,128.53 1.4 1.4 23.5 13.3
Al Rayan Islamic Index 3,636.14 0.2 0.2 6.3 14.8
GCC Top Gainers
##
Exchange Close
#
1D% Vol. ‘000 YTD%
HSBC Bank Oman Oman 0.12 2.6 515.4 (7.8)
National Bank of Bahrain Bahrain 0.61 2.5 20.0 4.0
Dar Al Arkan Real Estate Saudi Arabia 11.42 2.5 21,043.8 (20.7)
Al Hammadi Dev. & Inv. Saudi Arabia 33.60 2.4 1,075.2 (9.4)
Rabigh Refining & Petro. Saudi Arabia 27.00 2.3 1,566.3 64.2
GCC Top Losers
##
Exchange Close
#
1D% Vol. ‘000 YTD%
Emaar Economic City Saudi Arabia 12.94 (5.4) 6,104.6 (4.1)
Jabal Omar Dev. Co. Saudi Arabia 40.10 (4.0) 1,433.6 (32.2)
Banque Saudi Fransi Saudi Arabia 33.80 (3.3) 133.8 18.2
F. A. Al Hokair Saudi Arabia 25.70 (2.8) 858.9 (15.5)
The Commercial Bank Qatar 36.98 (2.7) 53.6 28.0
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 Commercial Bank 36.98 (2.7) 53.6 28.0
Qatar Navigation 58.50 (2.0) 4.7 4.6
Qatari German Co for Med. Dev. 5.26 (1.7) 14.0 (18.6)
Qatar Islamic Insurance Company 50.00 (1.0) 4.6 (9.0)
Mesaieed Petrochemical Holding 15.50 (1.0) 505.1 23.1
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
QNB Group 162.97 (0.6) 69,763.3 29.3
Qatar Fuel Company 146.00 1.4 45,960.8 43.1
Qatar Islamic Bank 123.00 0.2 29,737.3 26.8
Masraf Al Rayan 34.69 (0.9) 12,919.2 (8.1)
Industries Qatar 109.00 0.1 9,249.7 12.4
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* 9,224.74 (0.2) (0.2) 3.9 8.2 65.62 140,458.3 13.7 1.4 4.8
Dubai 3,054.45 0.4 0.4 3.0 (9.4) 52.90 105,299.1 9.8 1.2 5.5
Abu Dhabi 4,691.68 0.6 0.6 1.9 6.7 19.48 129,092.8 12.5 1.4 5.1
Saudi Arabia 8,278.51 (0.8) (0.8) 1.4 14.6 789.68 526,445.5 18.7 1.8 3.2
Kuwait 4,839.93 0.1 0.1 0.5 (3.2) 20.79 33,810.5 14.6 0.9 4.1
Oman 4,601.59 0.1 0.1 (0.1) (9.8) 1.50 19,306.9 11.5 1.0 5.3
Bahrain 1,274.48 0.8 0.8 0.7 (4.3) 2.65 19,892.3 8.3 0.8 6.4
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any)
9,160
9,180
9,200
9,220
9,240
9,260
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
Page 2 of 5
Qatar Market Commentary
 The QSE Index declined 0.2% to close at 9,224.7. The Banks & Financial
Services and Insurance indices led the losses. The index fell on the back
of selling pressure from Qatari shareholders despite buying support from
GCC and non-Qatari shareholders.
 The Commercial Bank and Qatar Navigation were the top losers, falling
2.7% and 2.0%, respectively. Among the top gainers, Mannai
Corporation gained 3.2%, while Ezdan Holding Group was up 2.8%.
 Volume of shares traded on Sunday fell by 50.2% to 4.9mn from 9.9mn
on Thursday. Further, as compared to the 30-day moving average of
11.7mn, volume for the day was 57.7% lower. Vodafone Qatar and
Mesaieed Petrochemical Holding Company were the most active stocks,
contributing 13.9% and 10.2% to the total volume, respectively.
Source: Qatar Stock Exchange (* as a % of traded value)
News
Qatar
 QNB Group: Qatar’s goods trade surplus benefiting from
recovering imports, buoyant exports – Qatar’s goods trade
surplus is benefiting from recovering imports and buoyant
exports, driven by higher hydrocarbon prices, QNB Group stated
in its weekly economic commentary. The latest monthly
indicators on trade and industrial prices show the Qatari
economy benefiting from higher global hydrocarbon prices,
ensuring that the already dwindling impact of the diplomatic
rift on the economy recedes yet further. In particular, the latest
monthly trade statistics showed the goods trade surplus
increased higher in April. In level terms, the surplus topped
QR14.7bn. In percentage terms, the surplus was up a stunning
49% YoY versus April 2017. The surpluses’ surge is a by-product
of recovering, but still muted, import growth (up 3.1%) and,
most importantly, a buoyant export performance due to higher
hydrocarbon prices. In level terms, April’s exports were up more
than QR5bn versus a year ago; a gain of more than 27%.
Inevitably, the export surge is driven by the dominant
hydrocarbon sector, whose exports were up QR4.7bn versus last
April so accounting for around 90% of exports’ total gain. (Gulf-
Times.com)
 CBQK ends talks with Tabarak Investment on UAB’s stake –
The Commercial Bank (CBQK) ceased discussions with Tabarak
Investment, owned by Tabarak Commercial Investment One
Person Company, in respect of the potential purchase of CBQK’s
stake in United Arab Bank (UAB), a publicly listed entity on the
Abu Dhabi Securities Exchange with its registered head office
in Sharjah, UAE. (QSE)
 Woqod raises non-Qatari ownership to 49% – Qatar Fuel
Company’s (Woqod) annual general meeting amended Article
9-1 of Woqod’s Articles of Association to raise non-Qatari
ownership to 49% of the company’s share capital and to raise
the limits of private ownership to 1%. Woqod’s CEO, Saad
Rashid Al Muhannadi said, “The amendment aims to give effect
to the instructions of Qatar Petroleum to its listed affiliate
companies, and also to address the request of ‎Qatar Stock
Exchange to undertake the said amendments with the purpose
of enhancing the ‎investment attractiveness of Qatari
companies, after the classification of the state of Qatar was
raised ‎by MSCI and a number of international indexing agencies
to the level of emerging markets, thus ‎becoming the largest
emerging market in the region.” (Gulf-Times.com)
 Woqod eyes 88 petrol stations by year-end – Qatar Fuel
Company (Woqod) is planning to have a total of 88 petrol
stations by the end of this year, and as many as 120 in the next
three years as part of the company’s ambitious expansion plan
in the local market, according to Woqod’s CEO, Saad Rashid Al
Muhannadi. “It is highly expected that the number will rise to
88 gas stations by the end of 2018, where 30 additional gas
stations, 10 of which are mobile, will be built,” Al Muhannadi
explained on the sidelines of Woqod’s annual general meeting.
The company’s current share in the fuel retail market reached
64% compared to only 48% in 2016, and stressed that it will rise
to 85% by the year 2020. On petrol station growth and fuel
growth trends, Al Muhannadi said Woqod is determined to
double the number of petrol stations by effecting a 100%
increase from 2018 to 2020 with the view to achieve customer
satisfaction and avert queues in the petrol stations, despite the
fact that the increase of fuel consumption during the said years
will not exceed 10%. (Gulf-Times.com)
 Qatar’s CPI inflation edges higher in May – Higher expenses,
particularly towards transportation, clothing and food, led
Qatar’s cost of living, based on consumer price index (CPI), to
grow 0.5% YoY this May. However, CPI inflation was down
0.3% MoM in May 2018 as five main groups saw declines, as the
country witnessed price freeze owing to Ramadan, according to
the Ministry of Development Planning and Statistics. The
transport sector, which has 14.59% weight, saw its group index
vault 7.8% YoY and 1.9% on a monthly basis. Communication,
which carries 5.87% weight, saw its group index shrink 1% YoY
in May 2018 but remained flat MoM. (Gulf-Times.com)
 HIA weathers blockade; airfreight volumes surge – A travel and
trade blockade imposed by four Arab states has spurred air-
freight volumes to record highs at Qatar’s Hamad International
Airport (HIA). The closure of Qatar’s only land border with
Saudi Arabia has led to an airlift-style operation to safeguard
the supply of goods and produce spanning fresh milk to
industrial gear previously transported by truck, according to the
airport’s Chief Operating Officer, Badr Mohamed Al Meer.
Overall Activity Buy %* Sell %* Net (QR)
Qatari Individuals 35.19% 42.75% (18,083,234.41)
Qatari Institutions 10.22% 20.89% (25,511,333.30)
Qatari 45.41% 63.64% (43,594,567.71)
GCC Individuals 0.28% 0.37% (219,832.58)
GCC Institutions 9.21% 7.57% 3,929,852.30
GCC 9.49% 7.94% 3,710,019.72
Non-Qatari Individuals 6.55% 7.84% (3,084,739.28)
Non-Qatari Institutions 38.55% 20.58% 42,969,287.27
Non-Qatari 45.10% 28.42% 39,884,547.99
Page 3 of 5
Freight volumes at the hub, which opened in 2014, jumped 10%
to 514,000 tons in the first quarter. The passenger tally slid 11%
to 8.73mn and the number of aircraft takeoff s and landings fell
17% to 52,200. The surge in air freight has been led by imports
from countries including Turkey, Iran, Morocco and Australia,
substituting for loads that would have been flown or shipped
from the boycotting states or trucked in from Saudi Arabia.
(Gulf-Times.com)
 OBG: Qatar moving to promote private sector development,
economic diversification – Private-sector growth and new
government initiatives to support long-term economic
diversification and sustainability will be the focus of the global
research, publishing, and consultancy firm Oxford Business
Group’s (OBG) upcoming economic report on the country, ‘The
Report: Qatar 2019’. New developments in Qatar’s economy,
including measures to support non-hydrocarbon growth and
priority industries including agriculture, manufacturing and
defense, will be explored in OBG’s economic analysis. Alongside
comprehensive analysis of key sectors including the strong
project pipeline in infrastructure, construction, and energy, the
publication will also highlight areas with robust growth
potential and opportunities for increased private-sector
involvement. (Gulf-Times.com)
 ILO Doha office seen sparking more interest from Swedish
companies – The inauguration of the International Labour
Organization’s (ILO) office in Doha is a very positive step, and
will bolster Sweden’s future bilateral trade and investment
programs, according to Swedish Ambassador, Ewa Polano.
Polano said, “This will lead to an increased interest from
Swedish companies, which, before, have sometimes seen
worker’s rights as an obstacle. However, now Qatar is showing
a strong interest to become a role model in the Gulf for worker’s
rights and abolishing the Kafala (sponsorship) system in the
new legislation from December 2016. This is very positive for
Swedish bilateral trade and investment initiatives in the
coming year.” (Gulf-Times.com)
International
 Japan’s core machinery orders rise 10.1% MoM in April –
Japan’s core machinery orders rose 10.1% in April from the
previous month, reversing the prior month’s decline in a sign of
a recovery in capital spending, Cabinet Office data showed. The
rise in core orders, a highly volatile data series regarded as an
indicator of capital expenditure in the coming six to nine
months, compared with economists’ median estimate for 2.8%
increase in a Reuters poll. Compared with a year earlier, core
orders, which exclude those for ships and from electric power
utilities, grew 9.6% in April, versus an estimated 3.9% rise.
(Reuters)
Regional
 GCC’s consumer prices rise by 4.3% – Over the 12 months to
April 2018, price change for consumer goods and services,
excluding housing, in the GCC countries rose by 4.3%, according
to the Statistical Centre for the Cooperation Council of the Arab
Countries of the Gulf. The biggest increases were for tobacco
55.3%, transport 8.9%, restaurant and hotels by 6.0%, food
4.3%, education 2.8%, health 2.5%, miscellaneous 2.0%,
communication 1.9%, furnishings 1.7% and recreation 1.6%. On
the other hand, clothing and footwear fell by 1.7%. (Bloomberg)
 Saudi Arabia’s real estate market sees negative performance in
1Q2018 – Saudi Arabia’s real estate market saw a negative
performance in 1Q2018, after the Kingdom’s property prices
came among the world’s worst performing, according to a
report. The report showed that property prices in Saudi Arabian
economy declined by 0.2% over the past 12 months. (Zawya)
 SHUAA Capital, National Bonds sign MoU to set up a venture –
SHUAA Capital signed MoU with National Bonds, a savings and
investment company in the UAE, to start a venture in Saudi
Arabia to offer savings and investments plans in the Kingdom,
according to sources. In discussions with regulators to agree
and implement an operation, framework will be started in the
second half of this year. (Bloomberg)
 Tadawul announces the addition of the bonus shares and
fluctuation limits for Saudi Arabian Cooperative Insurance
Company – Saudi Arabian Cooperative Insurance Company held
its EGM and approved the capital increase via bonus shares.
Thus, the fluctuation limits for Saudi Arabian Cooperative
Insurance Company will be based on a share price of SR14.66.
The Securities Depository Center will deposit the addition
shares into the investor’s portfolios. (Tadawul)
 Tadawul announces the fluctuation limits for United
Cooperative Assurance Company – United Cooperative
Assurance Company held its EGM and approved the capital
reduction. Thus, the fluctuation limits for United Cooperative
Assurance Company will be based on a share price of SR12.62.
(Tadawul)
 Advanced Petrochemical Company announces the distribution
of dividend for 2Q2018 – The Board of Directors of Advanced
Petrochemical Company recommended distributing dividend to
the shareholders for 2Q2018. Total amount of distribution of
dividend is SR137.8mn and dividend per share is SR0.70.
(Tadawul)
 Dubai Islamic Bank’s rights share issue about three times
oversubscribed – Dubai Islamic Bank’s AED5.1bn rights offering
got subscriptions in excess of AED14bn, according to sources.
More than 50% interest is shown from foreign institutional
investors. Dubai Islamic Bank is further planning to raise
$1.4bn from rights issue. (Bloomberg)
 S&P sees Abu Dhabi’s economic growth picking up gradually –
Global ratings agency S&P affirmed Abu Dhabi’s ‘AA’ long-term
and expects that the economic growth will gradually pick up
and that the country’s fiscal position will remain strong over
the next two years. Following 0.5% contraction in real terms in
2017 due to the OPEC’s oil production cuts, S&P forecast
gradual rising real GDP growth of the Emirate on the back of
recovering oil prices and production and a revival in
investment. S&P projects Abu Dhabi’s economic growth will
rise gradually to 3% by 2021 from 1.3% in 2018, supported by
increased oil production, planned spending on investment
projects, and recovering domestic credit growth bolstered by
higher oil prices and improving demand in the region. (Zawya)
 Moody’s: Kuwait’s credit profile remain strong, reform
implementation expected to be delayed – Kuwait currently
holds a healthy credit profile of ‘Aa2’ & ‘Stable’ reflecting the
country’s substantial oil and gas reserves, historic fiscal and
balance of payments surpluses and comparatively low
government debt levels, according to Moody’s. According to
Page 4 of 5
Moody’s report, Kuwait’s key credit challenge is its excessively
high dependence on oil and the resulting volatility for its
economy, exports and government finances. The country is
evidently slower than its regional peers in developing its non-
oil and private sectors. Despite rising government debt levels
and Moody’s expects government income to remain heavily
reliant on hydrocarbon revenues for the foreseeable future,
Kuwait will maintain an extraordinarily strong government
balance sheet and an overall net asset position. (Zawya)
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
Mohamed Abo Daff QNB Financial Services Co. W.L.L.
Senior Research Analyst Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6589 PO Box 24025
mohd.abodaff@qnbfs.com.qa 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)
40.0
60.0
80.0
100.0
120.0
May-14 May-15 May-16 May-17 May-18
QSE Index S&P Pan Arab S&P GCC
(0.8%)
(0.2%)
0.1%
0.8%
0.1%
0.6%
0.4%
(1.0%)
(0.5%)
0.0%
0.5%
1.0%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,299.35 0.2 0.4 (0.3) MSCI World Index 2,137.74 0.0 1.4 1.6
Silver/Ounce 16.80 0.5 2.4 (0.8) DJ Industrial 25,316.53 0.3 2.8 2.4
Crude Oil (Brent)/Barrel (FM Future) 76.46 (1.1) (0.4) 14.3 S&P 500 2,779.03 0.3 1.6 3.9
Crude Oil (WTI)/Barrel (FM Future) 65.74 (0.3) (0.1) 8.8 NASDAQ 100 7,645.51 0.1 1.2 10.8
Natural Gas (Henry Hub)/MMBtu 2.92 (0.4) (0.3) (17.5) STOXX 600 385.12 (0.5) 0.5 (3.1)
LPG Propane (Arab Gulf)/Ton 89.88 1.1 (2.2) (8.1) DAX 12,766.55 (0.6) 1.3 (3.2)
LPG Butane (Arab Gulf)/Ton 97.00 0.8 4.4 (8.2) FTSE 100 7,681.07 (0.3) 0.2 (0.9)
Euro 1.18 (0.3) 0.9 (2.0) CAC 40 5,450.22 (0.3) 0.6 0.5
Yen 109.55 (0.1) 0.0 (2.8) Nikkei 22,694.50 (0.3) 2.4 2.5
GBP 1.34 (0.1) 0.4 (0.8) MSCI EM 1,135.39 (1.2) 0.5 (2.0)
CHF 1.01 (0.5) 0.3 (1.1) SHANGHAI SE Composite 3,067.15 (1.6) (0.0) (5.8)
AUD 0.76 (0.3) 0.4 (2.7) HANG SENG 30,958.21 (1.7) 1.5 3.0
USD Index 93.54 0.1 (0.7) 1.5 BSE SENSEX 35,443.67 (0.2) (0.3) (1.6)
RUB 62.33 (0.1) 0.2 8.2 Bovespa 72,942.07 3.8 (5.3) (15.8)
BRL 0.27 5.4 1.5 (10.7) RTS 1,142.90 (2.4) (1.8) (1.0)
84.6
82.3
72.5

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QSE Falls 0.2% as Banks and Insurance Indices Decline

  • 1. Page 1 of 5 QSE Intra-Day Movement Qatar Commentary The QSE Index declined 0.2% to close at 9,224.7. Losses were led by the Banks & Financial Services and Insurance indices, falling 0.6% each. Top losers were The Commercial Bank and Qatar Navigation, falling 2.7% and 2.0%, respectively. Among the top gainers, Mannai Corporation gained 3.2%, while Ezdan Holding Group was up 2.8%. GCC Commentary Saudi Arabia: The TASI Index fell 0.8% to close at 8,278.5. Losses were led by the Media and Cons. Durables indices, falling 2.0% and 1.8%, respectively. Al Sorayai Trading & Ind. declined 10.0%, while Emaar The Economic City was down 5.4%. Dubai: The DFM General Index gained 0.4% to close at 3,054.5. The Consumer Staples and Discretionary index rose 1.8%, while the Real Estate & Const. index gained 0.6%. Takaful Emarat rose 14.6%, while Arabtec Holding was up 5.9%. Abu Dhabi: The ADX General Index rose 0.6% to close at 4,691.7. The Telecom. index gained 1.2%, while the Industrial index rose 1.0%. National Bank of Fujairah gained 14.4%, while Emirates Driving Company was up 5.7%. Kuwait: The Kuwait Main Market Index rose 0.1% to close at 4,839.9. The Cosumer Goods index gained 1.1%, while the Financial Services index rose 0.3%. National International Holding Co. gained 7.3%, while Arabi Group Holding Co. was up 5.6%. Oman: The MSM 30 Index rose 0.1% to close at 4,601.6. The Financial index gained 0.3%, while the other indices ended in red. HSBC Bank Oman rose 2.6%, while National Aluminium Products was up 2.5%. Bahrain: The BHB Index gained 0.8% to close at 1,274.5. The Hotels & Tourism index rose 2.2%, while the Investment index gained 1.8%. United Gulf Holding Company rose 10.0%, while Gulf Hotel Group was up 3.1%. QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Mannai Corporation 48.50 3.2 5.3 (18.5) Ezdan Holding Group 9.08 2.8 205.4 (24.8) Dlala Brokerage & Inv. Holding Co. 13.94 2.6 127.3 (5.2) Qatar Industrial Manufacturing Co 41.00 1.9 1.5 (6.2) Gulf Warehousing Company 41.97 1.7 6.5 (4.6) QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD% Vodafone Qatar 8.62 0.2 687.7 7.5 Mesaieed Petrochemical Holding 15.50 (1.0) 505.1 23.1 QNB Group 162.97 (0.6) 428.1 29.3 Masraf Al Rayan 34.69 (0.9) 373.0 (8.1) Qatar Fuel Company 146.00 1.4 314.2 43.1 Market Indicators 10 June 18 07 June 18 %Chg. Value Traded (QR mn) 239.1 431.3 (44.6) Exch. Market Cap. (QR mn) 511,315.4 511,542.2 (0.0) Volume (mn) 4.9 9.9 (50.2) Number of Transactions 3,130 5,227 (40.1) Companies Traded 41 42 (2.4) Market Breadth 24:15 11:31 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 16,252.96 (0.2) (0.2) 13.7 13.7 All Share Index 2,708.97 0.1 0.1 10.5 14.2 Banks 3,277.89 (0.6) (0.6) 22.2 13.4 Industrials 2,935.67 0.0 0.0 12.1 15.4 Transportation 1,864.16 (0.4) (0.4) 5.4 11.8 Real Estate 1,703.87 1.8 1.8 (11.0) 14.8 Insurance 3,260.58 (0.6) (0.6) (6.3) 27.7 Telecoms 1,031.24 0.9 0.9 (6.1) 30.9 Consumer 6,128.53 1.4 1.4 23.5 13.3 Al Rayan Islamic Index 3,636.14 0.2 0.2 6.3 14.8 GCC Top Gainers ## Exchange Close # 1D% Vol. ‘000 YTD% HSBC Bank Oman Oman 0.12 2.6 515.4 (7.8) National Bank of Bahrain Bahrain 0.61 2.5 20.0 4.0 Dar Al Arkan Real Estate Saudi Arabia 11.42 2.5 21,043.8 (20.7) Al Hammadi Dev. & Inv. Saudi Arabia 33.60 2.4 1,075.2 (9.4) Rabigh Refining & Petro. Saudi Arabia 27.00 2.3 1,566.3 64.2 GCC Top Losers ## Exchange Close # 1D% Vol. ‘000 YTD% Emaar Economic City Saudi Arabia 12.94 (5.4) 6,104.6 (4.1) Jabal Omar Dev. Co. Saudi Arabia 40.10 (4.0) 1,433.6 (32.2) Banque Saudi Fransi Saudi Arabia 33.80 (3.3) 133.8 18.2 F. A. Al Hokair Saudi Arabia 25.70 (2.8) 858.9 (15.5) The Commercial Bank Qatar 36.98 (2.7) 53.6 28.0 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 Commercial Bank 36.98 (2.7) 53.6 28.0 Qatar Navigation 58.50 (2.0) 4.7 4.6 Qatari German Co for Med. Dev. 5.26 (1.7) 14.0 (18.6) Qatar Islamic Insurance Company 50.00 (1.0) 4.6 (9.0) Mesaieed Petrochemical Holding 15.50 (1.0) 505.1 23.1 QSE Top Value Trades Close* 1D% Val. ‘000 YTD% QNB Group 162.97 (0.6) 69,763.3 29.3 Qatar Fuel Company 146.00 1.4 45,960.8 43.1 Qatar Islamic Bank 123.00 0.2 29,737.3 26.8 Masraf Al Rayan 34.69 (0.9) 12,919.2 (8.1) Industries Qatar 109.00 0.1 9,249.7 12.4 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* 9,224.74 (0.2) (0.2) 3.9 8.2 65.62 140,458.3 13.7 1.4 4.8 Dubai 3,054.45 0.4 0.4 3.0 (9.4) 52.90 105,299.1 9.8 1.2 5.5 Abu Dhabi 4,691.68 0.6 0.6 1.9 6.7 19.48 129,092.8 12.5 1.4 5.1 Saudi Arabia 8,278.51 (0.8) (0.8) 1.4 14.6 789.68 526,445.5 18.7 1.8 3.2 Kuwait 4,839.93 0.1 0.1 0.5 (3.2) 20.79 33,810.5 14.6 0.9 4.1 Oman 4,601.59 0.1 0.1 (0.1) (9.8) 1.50 19,306.9 11.5 1.0 5.3 Bahrain 1,274.48 0.8 0.8 0.7 (4.3) 2.65 19,892.3 8.3 0.8 6.4 Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any) 9,160 9,180 9,200 9,220 9,240 9,260 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  • 2. Page 2 of 5 Qatar Market Commentary  The QSE Index declined 0.2% to close at 9,224.7. The Banks & Financial Services and Insurance indices led the losses. The index fell on the back of selling pressure from Qatari shareholders despite buying support from GCC and non-Qatari shareholders.  The Commercial Bank and Qatar Navigation were the top losers, falling 2.7% and 2.0%, respectively. Among the top gainers, Mannai Corporation gained 3.2%, while Ezdan Holding Group was up 2.8%.  Volume of shares traded on Sunday fell by 50.2% to 4.9mn from 9.9mn on Thursday. Further, as compared to the 30-day moving average of 11.7mn, volume for the day was 57.7% lower. Vodafone Qatar and Mesaieed Petrochemical Holding Company were the most active stocks, contributing 13.9% and 10.2% to the total volume, respectively. Source: Qatar Stock Exchange (* as a % of traded value) News Qatar  QNB Group: Qatar’s goods trade surplus benefiting from recovering imports, buoyant exports – Qatar’s goods trade surplus is benefiting from recovering imports and buoyant exports, driven by higher hydrocarbon prices, QNB Group stated in its weekly economic commentary. The latest monthly indicators on trade and industrial prices show the Qatari economy benefiting from higher global hydrocarbon prices, ensuring that the already dwindling impact of the diplomatic rift on the economy recedes yet further. In particular, the latest monthly trade statistics showed the goods trade surplus increased higher in April. In level terms, the surplus topped QR14.7bn. In percentage terms, the surplus was up a stunning 49% YoY versus April 2017. The surpluses’ surge is a by-product of recovering, but still muted, import growth (up 3.1%) and, most importantly, a buoyant export performance due to higher hydrocarbon prices. In level terms, April’s exports were up more than QR5bn versus a year ago; a gain of more than 27%. Inevitably, the export surge is driven by the dominant hydrocarbon sector, whose exports were up QR4.7bn versus last April so accounting for around 90% of exports’ total gain. (Gulf- Times.com)  CBQK ends talks with Tabarak Investment on UAB’s stake – The Commercial Bank (CBQK) ceased discussions with Tabarak Investment, owned by Tabarak Commercial Investment One Person Company, in respect of the potential purchase of CBQK’s stake in United Arab Bank (UAB), a publicly listed entity on the Abu Dhabi Securities Exchange with its registered head office in Sharjah, UAE. (QSE)  Woqod raises non-Qatari ownership to 49% – Qatar Fuel Company’s (Woqod) annual general meeting amended Article 9-1 of Woqod’s Articles of Association to raise non-Qatari ownership to 49% of the company’s share capital and to raise the limits of private ownership to 1%. Woqod’s CEO, Saad Rashid Al Muhannadi said, “The amendment aims to give effect to the instructions of Qatar Petroleum to its listed affiliate companies, and also to address the request of ‎Qatar Stock Exchange to undertake the said amendments with the purpose of enhancing the ‎investment attractiveness of Qatari companies, after the classification of the state of Qatar was raised ‎by MSCI and a number of international indexing agencies to the level of emerging markets, thus ‎becoming the largest emerging market in the region.” (Gulf-Times.com)  Woqod eyes 88 petrol stations by year-end – Qatar Fuel Company (Woqod) is planning to have a total of 88 petrol stations by the end of this year, and as many as 120 in the next three years as part of the company’s ambitious expansion plan in the local market, according to Woqod’s CEO, Saad Rashid Al Muhannadi. “It is highly expected that the number will rise to 88 gas stations by the end of 2018, where 30 additional gas stations, 10 of which are mobile, will be built,” Al Muhannadi explained on the sidelines of Woqod’s annual general meeting. The company’s current share in the fuel retail market reached 64% compared to only 48% in 2016, and stressed that it will rise to 85% by the year 2020. On petrol station growth and fuel growth trends, Al Muhannadi said Woqod is determined to double the number of petrol stations by effecting a 100% increase from 2018 to 2020 with the view to achieve customer satisfaction and avert queues in the petrol stations, despite the fact that the increase of fuel consumption during the said years will not exceed 10%. (Gulf-Times.com)  Qatar’s CPI inflation edges higher in May – Higher expenses, particularly towards transportation, clothing and food, led Qatar’s cost of living, based on consumer price index (CPI), to grow 0.5% YoY this May. However, CPI inflation was down 0.3% MoM in May 2018 as five main groups saw declines, as the country witnessed price freeze owing to Ramadan, according to the Ministry of Development Planning and Statistics. The transport sector, which has 14.59% weight, saw its group index vault 7.8% YoY and 1.9% on a monthly basis. Communication, which carries 5.87% weight, saw its group index shrink 1% YoY in May 2018 but remained flat MoM. (Gulf-Times.com)  HIA weathers blockade; airfreight volumes surge – A travel and trade blockade imposed by four Arab states has spurred air- freight volumes to record highs at Qatar’s Hamad International Airport (HIA). The closure of Qatar’s only land border with Saudi Arabia has led to an airlift-style operation to safeguard the supply of goods and produce spanning fresh milk to industrial gear previously transported by truck, according to the airport’s Chief Operating Officer, Badr Mohamed Al Meer. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 35.19% 42.75% (18,083,234.41) Qatari Institutions 10.22% 20.89% (25,511,333.30) Qatari 45.41% 63.64% (43,594,567.71) GCC Individuals 0.28% 0.37% (219,832.58) GCC Institutions 9.21% 7.57% 3,929,852.30 GCC 9.49% 7.94% 3,710,019.72 Non-Qatari Individuals 6.55% 7.84% (3,084,739.28) Non-Qatari Institutions 38.55% 20.58% 42,969,287.27 Non-Qatari 45.10% 28.42% 39,884,547.99
  • 3. Page 3 of 5 Freight volumes at the hub, which opened in 2014, jumped 10% to 514,000 tons in the first quarter. The passenger tally slid 11% to 8.73mn and the number of aircraft takeoff s and landings fell 17% to 52,200. The surge in air freight has been led by imports from countries including Turkey, Iran, Morocco and Australia, substituting for loads that would have been flown or shipped from the boycotting states or trucked in from Saudi Arabia. (Gulf-Times.com)  OBG: Qatar moving to promote private sector development, economic diversification – Private-sector growth and new government initiatives to support long-term economic diversification and sustainability will be the focus of the global research, publishing, and consultancy firm Oxford Business Group’s (OBG) upcoming economic report on the country, ‘The Report: Qatar 2019’. New developments in Qatar’s economy, including measures to support non-hydrocarbon growth and priority industries including agriculture, manufacturing and defense, will be explored in OBG’s economic analysis. Alongside comprehensive analysis of key sectors including the strong project pipeline in infrastructure, construction, and energy, the publication will also highlight areas with robust growth potential and opportunities for increased private-sector involvement. (Gulf-Times.com)  ILO Doha office seen sparking more interest from Swedish companies – The inauguration of the International Labour Organization’s (ILO) office in Doha is a very positive step, and will bolster Sweden’s future bilateral trade and investment programs, according to Swedish Ambassador, Ewa Polano. Polano said, “This will lead to an increased interest from Swedish companies, which, before, have sometimes seen worker’s rights as an obstacle. However, now Qatar is showing a strong interest to become a role model in the Gulf for worker’s rights and abolishing the Kafala (sponsorship) system in the new legislation from December 2016. This is very positive for Swedish bilateral trade and investment initiatives in the coming year.” (Gulf-Times.com) International  Japan’s core machinery orders rise 10.1% MoM in April – Japan’s core machinery orders rose 10.1% in April from the previous month, reversing the prior month’s decline in a sign of a recovery in capital spending, Cabinet Office data showed. The rise in core orders, a highly volatile data series regarded as an indicator of capital expenditure in the coming six to nine months, compared with economists’ median estimate for 2.8% increase in a Reuters poll. Compared with a year earlier, core orders, which exclude those for ships and from electric power utilities, grew 9.6% in April, versus an estimated 3.9% rise. (Reuters) Regional  GCC’s consumer prices rise by 4.3% – Over the 12 months to April 2018, price change for consumer goods and services, excluding housing, in the GCC countries rose by 4.3%, according to the Statistical Centre for the Cooperation Council of the Arab Countries of the Gulf. The biggest increases were for tobacco 55.3%, transport 8.9%, restaurant and hotels by 6.0%, food 4.3%, education 2.8%, health 2.5%, miscellaneous 2.0%, communication 1.9%, furnishings 1.7% and recreation 1.6%. On the other hand, clothing and footwear fell by 1.7%. (Bloomberg)  Saudi Arabia’s real estate market sees negative performance in 1Q2018 – Saudi Arabia’s real estate market saw a negative performance in 1Q2018, after the Kingdom’s property prices came among the world’s worst performing, according to a report. The report showed that property prices in Saudi Arabian economy declined by 0.2% over the past 12 months. (Zawya)  SHUAA Capital, National Bonds sign MoU to set up a venture – SHUAA Capital signed MoU with National Bonds, a savings and investment company in the UAE, to start a venture in Saudi Arabia to offer savings and investments plans in the Kingdom, according to sources. In discussions with regulators to agree and implement an operation, framework will be started in the second half of this year. (Bloomberg)  Tadawul announces the addition of the bonus shares and fluctuation limits for Saudi Arabian Cooperative Insurance Company – Saudi Arabian Cooperative Insurance Company held its EGM and approved the capital increase via bonus shares. Thus, the fluctuation limits for Saudi Arabian Cooperative Insurance Company will be based on a share price of SR14.66. The Securities Depository Center will deposit the addition shares into the investor’s portfolios. (Tadawul)  Tadawul announces the fluctuation limits for United Cooperative Assurance Company – United Cooperative Assurance Company held its EGM and approved the capital reduction. Thus, the fluctuation limits for United Cooperative Assurance Company will be based on a share price of SR12.62. (Tadawul)  Advanced Petrochemical Company announces the distribution of dividend for 2Q2018 – The Board of Directors of Advanced Petrochemical Company recommended distributing dividend to the shareholders for 2Q2018. Total amount of distribution of dividend is SR137.8mn and dividend per share is SR0.70. (Tadawul)  Dubai Islamic Bank’s rights share issue about three times oversubscribed – Dubai Islamic Bank’s AED5.1bn rights offering got subscriptions in excess of AED14bn, according to sources. More than 50% interest is shown from foreign institutional investors. Dubai Islamic Bank is further planning to raise $1.4bn from rights issue. (Bloomberg)  S&P sees Abu Dhabi’s economic growth picking up gradually – Global ratings agency S&P affirmed Abu Dhabi’s ‘AA’ long-term and expects that the economic growth will gradually pick up and that the country’s fiscal position will remain strong over the next two years. Following 0.5% contraction in real terms in 2017 due to the OPEC’s oil production cuts, S&P forecast gradual rising real GDP growth of the Emirate on the back of recovering oil prices and production and a revival in investment. S&P projects Abu Dhabi’s economic growth will rise gradually to 3% by 2021 from 1.3% in 2018, supported by increased oil production, planned spending on investment projects, and recovering domestic credit growth bolstered by higher oil prices and improving demand in the region. (Zawya)  Moody’s: Kuwait’s credit profile remain strong, reform implementation expected to be delayed – Kuwait currently holds a healthy credit profile of ‘Aa2’ & ‘Stable’ reflecting the country’s substantial oil and gas reserves, historic fiscal and balance of payments surpluses and comparatively low government debt levels, according to Moody’s. According to
  • 4. Page 4 of 5 Moody’s report, Kuwait’s key credit challenge is its excessively high dependence on oil and the resulting volatility for its economy, exports and government finances. The country is evidently slower than its regional peers in developing its non- oil and private sectors. Despite rising government debt levels and Moody’s expects government income to remain heavily reliant on hydrocarbon revenues for the foreseeable future, Kuwait will maintain an extraordinarily strong government balance sheet and an overall net asset position. (Zawya)
  • 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 Mohamed Abo Daff QNB Financial Services Co. W.L.L. Senior Research Analyst Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6589 PO Box 24025 mohd.abodaff@qnbfs.com.qa 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) 40.0 60.0 80.0 100.0 120.0 May-14 May-15 May-16 May-17 May-18 QSE Index S&P Pan Arab S&P GCC (0.8%) (0.2%) 0.1% 0.8% 0.1% 0.6% 0.4% (1.0%) (0.5%) 0.0% 0.5% 1.0% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1,299.35 0.2 0.4 (0.3) MSCI World Index 2,137.74 0.0 1.4 1.6 Silver/Ounce 16.80 0.5 2.4 (0.8) DJ Industrial 25,316.53 0.3 2.8 2.4 Crude Oil (Brent)/Barrel (FM Future) 76.46 (1.1) (0.4) 14.3 S&P 500 2,779.03 0.3 1.6 3.9 Crude Oil (WTI)/Barrel (FM Future) 65.74 (0.3) (0.1) 8.8 NASDAQ 100 7,645.51 0.1 1.2 10.8 Natural Gas (Henry Hub)/MMBtu 2.92 (0.4) (0.3) (17.5) STOXX 600 385.12 (0.5) 0.5 (3.1) LPG Propane (Arab Gulf)/Ton 89.88 1.1 (2.2) (8.1) DAX 12,766.55 (0.6) 1.3 (3.2) LPG Butane (Arab Gulf)/Ton 97.00 0.8 4.4 (8.2) FTSE 100 7,681.07 (0.3) 0.2 (0.9) Euro 1.18 (0.3) 0.9 (2.0) CAC 40 5,450.22 (0.3) 0.6 0.5 Yen 109.55 (0.1) 0.0 (2.8) Nikkei 22,694.50 (0.3) 2.4 2.5 GBP 1.34 (0.1) 0.4 (0.8) MSCI EM 1,135.39 (1.2) 0.5 (2.0) CHF 1.01 (0.5) 0.3 (1.1) SHANGHAI SE Composite 3,067.15 (1.6) (0.0) (5.8) AUD 0.76 (0.3) 0.4 (2.7) HANG SENG 30,958.21 (1.7) 1.5 3.0 USD Index 93.54 0.1 (0.7) 1.5 BSE SENSEX 35,443.67 (0.2) (0.3) (1.6) RUB 62.33 (0.1) 0.2 8.2 Bovespa 72,942.07 3.8 (5.3) (15.8) BRL 0.27 5.4 1.5 (10.7) RTS 1,142.90 (2.4) (1.8) (1.0) 84.6 82.3 72.5