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QNBFS Daily Market Report March 21, 2019

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The QE Index rose 0.2% to close at 9,976.8. Gains were led by the Transportation and Real Estate indices, gaining 2.0% and 1.1%, respectively.

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QNBFS Daily Market Report March 21, 2019

  1. 1. Page 1 of 7 QSE Intra-Day Movement Qatar Commentary The QE Index rose 0.2% to close at 9,976.8. Gains were led by the Transportation and Real Estate indices, gaining 2.0% and 1.1%, respectively. Top gainers were Investment Holding Group and Qatar International Islamic Bank, rising 3.7% and 2.3%, respectively. Among the top losers, Ooredoo fell 3.8%, while Qatar Gas Transport Company Limited was down 2.5%. GCC Commentary Saudi Arabia: The TASI Index fell 0.2% to close at 8,640.5. Losses were led by the Food & Bev. and Comm. & Prof. Svc indices, falling 1.5% and 1.0%, respectively. Electrical Industries declined 2.9%, while National Petrochemical was down 2.1%. Dubai: The DFM Index gained 0.1% to close at 2,643.7. The Telecommunication index rose 2.9%, while the Services index gained 2.5%. Ithmaar Holding rose 12.5%, while Takaful Emarat was up 6.1%. Abu Dhabi: The ADX General Index gained 0.4% to close at 5,098.3. The Investment & Financial Services index rose 3.6%, while the Insurance index gained 1.1%. National Takaful Company rose 15.0%, while Emirates Insurance Co. was up 7.1%. Kuwait: The Kuwait Main Market Index gained 0.2% to close at 4,789.1. The Banks index rose 1.3%, while the Telecommunications index gained 0.8%. Alrai Media Group Company rose 17.4%, while Equipment Holding Company was up 13.5%. Oman: The MSM 30 Index gained 0.1% to close at 4,162.2. Gains were led by the Financial and Industrial indices, rising 0.1% each. Sohar Power rose 3.6%, while Al Jazeera Services was up 2.5% Bahrain: The BHB Index gained 0.2% to close at 1,423.5. The Investment index rose 0.8%, while the Services index gained 0.2%. Investcorp Bank rose 6.4%, while Seef Properties was up 1.8%. QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Investment Holding Group 5.31 3.7 1,179.3 8.6 Qatar International Islamic Bank 65.70 2.3 127.1 (0.6) Ezdan Holding Group 11.60 2.1 352.6 (10.6) Dlala Brokerage & Inv. Holding Co. 9.59 1.9 0.3 (4.1) Alijarah Holding 7.99 1.8 70.5 (9.1) QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD% United Development Company 13.52 (1.3) 1,436.5 (8.3) Investment Holding Group 5.31 3.7 1,179.3 8.6 Qatar Gas Transport Company Ltd. 19.70 (2.5) 611.1 9.9 Aamal Company 9.95 0.2 523.7 12.6 Qatar Aluminium Manufacturing 11.06 (0.5) 515.8 (17.2) Market Indicators 20 Mar 19 19 Mar 19 %Chg. Value Traded (QR mn) 211.7 405.8 (47.8) Exch. Market Cap. (QR mn) 563,433.6 561,045.4 0.4 Volume (mn) 8.4 13.5 (37.7) Number of Transactions 5,337 6,704 (20.4) Companies Traded 45 45 0.0 Market Breadth 24:14 23:20 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 18,205.11 0.6 0.5 0.3 13.9 All Share Index 3,046.06 0.7 1.0 (1.1) 15.0 Banks 3,760.93 0.9 0.8 (1.8) 13.9 Industrials 3,229.84 0.1 0.6 0.5 15.4 Transportation 2,271.99 2.0 2.1 10.3 13.1 Real Estate 2,028.40 1.1 3.4 (7.3) 18.0 Insurance 3,001.64 0.3 1.0 (0.2) 18.2 Telecoms 924.47 (0.0) (2.5) (6.4) 19.5 Consumer 7,427.52 (0.0) (0.1) 10.0 15.2 Al Rayan Islamic Index 3,975.64 0.3 1.0 2.3 13.9 GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD% Al Ahli Bank of Kuwait Kuwait 0.33 2.5 590.0 11.9 Bank Dhofar Oman 0.16 1.9 40.9 (5.4) Comm. Bank of Kuwait Kuwait 0.53 1.9 243.1 6.0 Kuwait Finance House Kuwait 0.66 1.9 8,725.7 7.4 Ahli United Bank Kuwait 0.32 1.6 1,182.2 7.1 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Ooredoo Qatar 64.46 (3.8) 233.7 (14.1) Qatar Gas Transport Co. Qatar 19.70 (2.5) 611.1 9.9 Emaar Malls Dubai 1.78 (2.2) 3,315.1 (0.6) National Petrochem. Co. Saudi Arabia 26.20 (2.1) 154.9 7.8 Savola Group Saudi Arabia 31.05 (2.1) 1,223.0 15.9 Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Losers Close* 1D% Vol. ‘000 YTD% Ooredoo 64.46 (3.8) 233.7 (14.1) Qatar Gas Transport Co. Ltd. 19.70 (2.5) 611.1 9.9 Qatari German Co for Med. Dev. 6.00 (2.4) 81.5 6.0 Zad Holding Company 122.00 (2.0) 2.5 17.3 Al Khaleej Takaful Insurance Co. 9.02 (1.8) 110.6 5.0 QSE Top Value Trades Close* 1D% Val. ‘000 YTD% QNB Group 179.99 1.1 24,578.2 (7.7) United Development Company 13.52 (1.3) 19,555.7 (8.3) Qatar Fuel Company 194.00 0.0 17,456.5 16.9 Barwa Real Estate Company 39.37 0.0 15,602.4 (1.4) Industries Qatar 122.00 0.4 15,205.3 (8.7) Source: Bloomberg (* in QR) Regional Indices Close 1D% WTD% MTD% YTD% Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 9,976.80 0.2 0.1 (1.3) (3.1) 58.02 154,775.2 13.9 1.5 4.3 Dubai 2,643.70 0.1 2.7 0.3 4.5 34.33 95,716.8 8.4 1.0 5.1 Abu Dhabi 5,098.32 0.4 2.0 (0.8) 3.7 59.50 139,168.8 14.3 1.5 4.8 Saudi Arabia 8,640.52 (0.2) 0.7 1.7 10.4 809.04 547,285.1 19.3 1.9 3.3 Kuwait 4,789.05 0.2 0.9 0.3 1.1 110.39 33,184.4 15.9 0.9 4.3 Oman 4,162.23 0.1 2.1 0.4 (3.7) 7.55 17,984.4 8.7 0.8 6.3 Bahrain 1,423.46 0.2 1.0 0.8 6.4 27.24 21,794.3 9.1 0.9 5.8 Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any) 9,900 9,920 9,940 9,960 9,980 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 7 Qatar Market Commentary  The QE Index rose 0.2% to close at 9,976.8. The Transportation and Real Estate 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.  Investment Holding Group and Qatar International Islamic Bank were the top gainers, rising 3.7% and 2.3%, respectively. Among the top losers, Ooredoo fell 3.8%, while Qatar Gas Transport Company Limited was down 2.5%.  Volume of shares traded on Wednesday fell by 37.7% to 8.4mn from 13.5mn on Tuesday. Further, as compared to the 30-day moving average of 10.1mn, volume for the day was 16.5% lower. United Development Company and Investment Holding Group were the most active stocks, contributing 17.0% and 14.0% 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 Invest bank Capital Intelligence Abu Dhabi FSR/SR BBB-/3 BB/2  – – Source: News reports (* FSR- Financial Strength Rating, SR – Support Rating) Earnings Releases Company Market Currency Revenue (mn) 4Q2018 % Change YoY Operating Profit (mn) 4Q2018 % Change YoY Net Profit (mn) 4Q2018 % Change YoY Northern Region Cement Co. * Saudi Arabia SR 392.5 -15.2% 54.0 -46.6% 13.1 -75.3% Saudi Automotive Services Co. * Saudi Arabia SR 2,056.1 69.6% 37.7 18.0% 35.5 26.7% Alandalus Property Co.* Saudi Arabia SR 164.7 12.2% 92.6 -11.5% 48.0 -59.5% Saudi Arabia Refineries Co. * Saudi Arabia SR 18.5 19.1% 15.4 75.2% 14.6 98.9% Emaar Malls* Dubai AED 4,445.9 22.5% 2,387.0 4.2% 2,229.9 6.9% Gulf Navigation Holding* Dubai AED 147.1 6.6% -23.9 – -40.1 – Emaar Development Dubai AED 15,433.4 -7.1% – – 3,901.2 -7.0% Union Properties* Dubai AED 501.0 3.4% – – 62.3 – Emaar Properties* Dubai AED 25,694.3 37.0% – – 6,108.0 9.6% Union Insurance Company* Abu Dhabi AED 951.9 -9.3% – – 6.2 -39.3% Source: Company data, DFM, ADX, MSM, TASI, BHB. (*Financials for FY2018) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 03/20 US Mortgage Bankers Association MBA Mortgage Applications 15-March 1.6% – 2.3% 03/20 UK UK Office for National Statistics CPIH YoY February 1.8% 1.8% 1.8% 03/20 UK UK Office for National Statistics CPI MoM February 0.5% 0.4% -0.8% 03/20 UK UK Office for National Statistics CPI YoY February 1.9% 1.8% 1.8% 03/20 UK UK Office for National Statistics CPI Core YoY February 1.8% 1.9% 1.9% 03/20 Germany German Federal Statistical Office PPI MoM February -0.1% 0.2% 0.4% 03/20 Germany German Federal Statistical Office PPI YoY February 2.6% 2.9% 2.6% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 28.55% 38.98% (22,092,873.43) Qatari Institutions 17.20% 21.07% (8,184,373.52) Qatari 45.75% 60.05% (30,277,246.95) GCC Individuals 0.72% 1.62% (1,915,566.57) GCC Institutions 0.08% 2.13% (4,345,854.11) GCC 0.80% 3.75% (6,261,420.68) Non-Qatari Individuals 11.39% 10.27% 2,357,766.07 Non-Qatari Institutions 42.07% 25.92% 34,180,901.56 Non-Qatari 53.46% 36.19% 36,538,667.63
  3. 3. Page 3 of 7 Earnings Calendar Tickers Company Name Date of reporting 4Q2018 results No. of days remaining Status AKHI Al Khaleej Takaful Insurance Company 25-Mar-19 4 Due QFBQ Qatar First Bank 27-Mar-19 6 Due QGMD Qatari German Company for Medical Devices 27-Mar-19 6 Due ZHCD Zad Holding Company 30-Mar-19 9 Due Source: QSE News Qatar  MRDS postpones disclosure of FY 2018 financial statements to March 27 – Mazaya Qatar Real Estate Development Company (MRDS) announced that it has postponed its board meeting to March 27, 2019 instead of March 20, 2019 to discuss and approve the audited financial statements for the financial year ended at December 31, 2018. (QSE)  The Commercial Bank gets nod to raise funds up to $5bn – The Commercial Bank shareholders gave their approval for the bank to increase the limit of an existing Global Commercial Paper and Certificates of Deposit (CP/CD) program from $800mn to $5bn. The bank’s Annual General Meeting (AGM) held yesterday gave nod to go for a new Global Medium Term Notes (GMTN) program for up to $2bn and the issuance of debt notes for up to $2bn under an existing $5bn Euro Medium Term Notes (EMTN) program. The shareholders gave their approval for all the agenda items of the AGM, including a cash dividend payout of 15% of the shares’ nominal value, which equates to QR1.5 per share held. At the AGM, the bank reaffirmed the successful execution of its five-year strategic plan to date and outlined objectives for further improvements in business performance. (Peninsula Qatar)  BRES’ new labor city project’s leasing process to start soon – Barwa Real Estate Company (BRES) has completed its new labor city project along the Salwa Road and the commercial leasing agreements for the 3,170 residential houses is to begin within the second quarter of this year, a top official of the real estate company announced. Construction contract for the QR1.29bn affordable housing project was awarded to INSHA Company in 2017. BRES’ Vice-Chairman and Managing Director, Issa bin Mohammed Al Mohannadi said, “Our Salwa Road project for affordable housing development for the workers has already completed. We are expecting the leasing process to start by the second quarter of this year.” Al Mohannadi added, “We are testing the market demand with the Salwa Road project. If it becomes successful, we have plans to expand and duplicate the project at other locations, which is subject to the feasibility.” The new labor city project in Salwa Road occupies an overall area of 994,567 square meters and includes 3,170 residential houses, each comprising of 8 rooms, 8 bathrooms, and a kitchen. (Peninsula Qatar)  Chairman: Occupancy rate of most BRES projects exceeds 95% – Barwa Real Estate Company’s (BRES) operational efficiency has improved with the occupancy rate of most of its current projects exceeding 95%, according to the group’s Chairman and Minister of Culture and Sports, HE Salah bin Ghanem bin Nasser Al Ali. He was addressing shareholders at the group’s AGM held in Doha. Noting that the group maintained an available cash balance of QR1.04bn at the end of last year, the Chairman said it has started the operations of phase two of the Madinat Al Mawater and the Barwa Village Extension projects. The group’s real estate portfolio has grown to include 7,232 residential units, 12,706 worker rooms, 295,891 square meters of shops, showrooms and offices and 260,959 square meters of workshops and warehouses, he said. (Qatar Tribune)  GECF: Qatar stands by global clients, shows it can overcome challenges – Secretary-General of the Gas Exporting Countries Forum (GECF), Yury Sentyurin has said that Qatar has established itself as one of the largest producers and exporters of natural gas in the world after it proved its ability to overcome challenges. In an interview, the GECF Secretary-General said that Qatar, despite recent challenges, has continued to be resilient and was able to secure LNG supplies to its partners and clients worldwide by providing LNG to remote areas and markets, which do not have access to sustainable and clean sources of energy. He expects Qatar to continue to play a key role in the natural gas markets globally and maintain its position as one of the largest natural gas producers and exporters in the world. Furthermore, he pointed out that Qatar has great potential to develop its natural gas resources and increase its LNG exports. Sentyurin also added that Qatar’s recent decision to increase its LNG production level from 77mtpa to 110mtpa will improve the country’s position as one of the main exporters of LNG to the global markets and reinforce its position as the world’s largest reliable LNG supplier. (Qatar Tribune)  MME unveils Strategic Food Security Projects 2019-23 at AgriteQ – The Ministry of Municipality and Environment (MME) has revealed its projects to increase food production including fish, vegetables, red meat, eggs and shrimps aimed at reaching a level of sufficiency by 2023. The Strategic Food Security Projects 2019-2023 were disclosed by the MME officials at Qatar International Agricultural Exhibition (AgriteQ) at Doha Exhibition and Convention Center (DECC). The projects will help increase the production of fish from the current 74% to 90% and vegetables from 24% to 70% by 2023. The production of red meat will go up from the current 18% to 30% and eggs will increase from 28% to 70%. Qatar will become self-sufficient in shrimp production by 2023 and green fodder production will increase from 56% to 63%. (Peninsula Qatar)
  4. 4. Page 4 of 7  Vodafone Qatar breaks new ground with the region’s first 5G holographic call – Vodafone Qatar gave customers and partners a glimpse of an exciting future by unveiling some of the most disruptive and transformational technologies that Qatar has ever seen during its annual Innovation Day event. The Innovation Day 2019 was attended by Minister of Transport and Communications, HE Jassim bin Saif Al Sulaiti, other senior officials and a large number of leading organizations and entities from Qatar’s private and public sector. The highlight of the event included the region’s first live holographic call using 5G technology, marking another major communications technology milestone for Qatar and further strengthening Vodafone’s credentials as one of the country’s most innovative companies. (Qatar Tribune)  Qatar Airways crosses significant milestone with 250th aircraft delivery – Qatar Airways celebrated the arrival of its 250th aircraft, an Airbus A350-900 from Toulouse, France - the latest addition to the group’s growing fleet of passenger, cargo and executive aircraft. The ‘impressive landmark’ comes just 22 years after the carrier began operations, and is testament to the incredible growth of an airline that has become world-leading in that time, winning a host of awards, including the Skytrax World Airline of the Year accolade on no less than four occasions. The new A350-900 joins the airline’s state-of-the-art fleet, where the average age of aircraft is less than five years. As of Wednesday, Qatar Airways’ fleet is made up of 203 passenger aircraft, 25 cargo and 22 Qatar Executive jets. The national carrier operates to more than 160 destinations worldwide. (Gulf-Times.com)  Qatar, Oman sign agreement for geographic data sharing – The State of Qatar, represented by the Ministry of Municipality and Environment, and the Sultanate of Oman, represented by the Ministry of Agriculture and Fisheries, have signed a Memorandum of Understanding (MoU) for cooperation in the field of national geographic information infrastructures between the two countries, as part of the 7th Qatar International Agriculture Exhibition and the first Qatar International Environmental Exhibition, currently held at the Doha Exhibition Center. The MoU reflects the distinguished relations between the two countries and their desire to enhance and develop cooperation in the field of national geographic information structures based on the principle of mutual interests and in the light of the discussions that took place between the Qatari and Omani sides. (Gulf-Times.com)  Kahramaa holds workshop for contractors – Qatar General Electricity and Water Corporation (Kahramaa) organized a workshop for its approved contractors on the services and procedures provided by the corporation. Head of planning and quality at Kahramaa, Engineer Ibrahim Al-Emadi said Kahramaa organized this training workshop in order to communicate more information to all approved contractors as they are the link between Kahramaa, investors and owners. (Gulf-Times.com) International  Fed sees no rate hikes in 2019 – The US Federal Reserve on Wednesday brought its three-year drive to tighten monetary policy to an abrupt end, abandoning projections for any interest rate hikes this year amid signs of an economic slowdown, and saying it would halt the steady decline of its balance sheet in September. The measures, announced following the end of a two-day policy meeting, mean the Fed’s gradual and sometimes fitful efforts to return monetary policy to a more normal footing will stop well short of what was foreseen in late 2015, when the central bank first moved rates from the near-zero level adopted in response to the 2007-2009 financial crisis and recession. Having downgraded their US growth, unemployment and inflation forecasts, policymakers said the Fed’s benchmark overnight interest rate, or fed funds rate, was likely to remain at the current level of between 2.25% and 2.50% at least through this year, a wholesale shift of their outlook. Rates are now seen peaking at 2.6%, sometime in 2020, roughly a percentage point lower than the historic average for the fed funds rate and a sign that the US economy has entered a more sluggish era. (Reuters)  US mortgage requests hit two-month peak as loan rates fall – US mortgage applications for buying or refinancing a home climbed to a two-month high last week, as home borrowing costs fell to their lowest in over a year, data from the Mortgage Bankers Association (MBA) showed. The Washington-based industry group’s seasonally adjusted index on mortgage activity edged up 1.6% to 390.0 in the week ended March 15. This was the highest reading since 400.6 in the week of January 18. Interest rates on 30-year fixed-rate mortgages with conforming loan balances of $484,350 or less decreased to 4.55%, the lowest since the February 2, 2018 week. They averaged 4.64% a week earlier. The decline in the average conforming mortgage rate was the steepest in about 2-1/2 months. Other mortgage rates that MBA tracks fell 2 basis points to 10 basis points from the previous week. Domestic home borrowing costs fell in step with lower US Treasury yields. (Reuters)  UK’s inflation up, London house prices fall by most since 2009 – Britain’s main inflation rate ticked up last month, but stayed close to January’s two-year low, helping consumers maintain their spending power as wage growth also picked up, even though the timing of Brexit remained uncertain. Wednesday’s official data also showed house prices rose at the weakest annual pace in 5-1/2 years in January, curtailed by the biggest drop in London prices since September 2009, just after the low point of the global financial crisis. Consumer prices rose at an annual rate of 1.9% in February after a 1.8% increase in January, the Office for National Statistics (ONS) stated. A Reuters poll of economists had forecasted an unchanged rate of inflation. Economists said they expected inflation to rise above the Bank of England’s 2% target soon, especially as many household utility bills are due to increase in April. The ONS said house prices in January rose by an annual 1.7% across the UK as a whole, the smallest increase since June 2013, when Britain was still struggling to shake off the effects of the global financial crisis. Prices in London alone fell by 1.6%, marking 11 months where prices have not risen. The ONS stated prices in the capital were down 3.3% from their recent peak in June 2017, compared with an almost 18% peak-to-trough fall during the financial crisis. (Reuters)  Germany to create fund to foil foreign takeovers after China moves – Germany plans to pass legislation by the end of 2019 to create a state-owned fund that can protect key companies from
  5. 5. Page 5 of 7 takeovers by Chinese and other foreign firms, government sources said, in a marked shift from its “hands-off” approach to business. Economy Minister Peter Altmaier proposed the fund in February as part of a more defensive industrial strategy and three officials told Reuters the government was now working on draft laws so the fund could be up and running next year. Two senior government officials, who spoke on condition of anonymity, said the idea was for the state-owned investment fund to work with the private sector when buying company stakes to foil unwelcome takeovers. One official said the state could buy a stake initially and then sell it on as soon as possible to private investors, while the other official said in some cases the fund could work with private investors from the start. (Reuters)  Japan’s government downgrades economy view as US-China trade war bites – Japan’s government downgraded its assessment of the economy in March for the first time in three years, blaming a bruising US-China trade war for slumping exports and industrial output. The Cabinet Office, which helps coordinate government policy, stated that the economy is in gradual recovery, but exports and output are showing signs of weakness. The monthly economic report for March was a downgrade from February, when the Cabinet Office simply stated the economy is in gradual recovery. The March report gave a pessimistic outlook, saying this bout of weakness could continue for some time in the future. The downbeat assessment could fuel calls for the government to delay a nationwide sales tax hike scheduled for October, and increase speculation that the Bank of Japan (BoJ) will take some steps to bolster economic growth. Exports fell for a third straight month in February and industrial output in January saw its sharpest decline in a year as tit-for-tat tariffs between Washington and Beijing slowed China’s economy and reduced demand for mobile phone parts and chip-making equipment from Japan. The Cabinet Office downgraded its assessment of industrial production for the second consecutive month, saying it has shown signs of weakness and flat-lined. (Reuters)  Premier: China will strive to achieve 2019 economic goals – China will strive to achieve its economic development targets for 2019, state television stated, quoting the cabinet after a meeting chaired by Premier Li Keqiang. The government aimed to “maintain steady economic operations and promote high quality development”, Li was quoted as saying. China will speed up tax and fee cuts and push reforms to help shore up confidence of companies, Li said. The government would adjust tax rebates for exports of goods and services, he added. China has promised billions of Dollars in tax cuts and infrastructure spending to help businesses and protect jobs, as economic momentum is expected to fall further due to softer domestic demand and a trade war with the US. China is targeting economic growth of 6.0%-6.5% in 2019. The world’s second- largest economy grew 6.6% in 2018 - the weakest in 28 years. (Reuters) Regional  Saudi Arabia to seek $20bn investments for planned tourism landmark – Saudi Arabia is targeting up to $20bn of investments through 2035 for a planned landmark tourism destination and will hold a global investor roadshow before the end of the year, the head of the project told Reuters. Al-Ula, the site of an ancient civilization in a remote northwestern corner of the country, is part of plans by the world’s top crude exporter to diversify its economy away from oil and open up after decades of reclusion. CEO of the Royal Commission for Al-Ula, Amr Madani said he expects targeted investments to eventually generate 35,000 jobs and contribute a combined $32bn to gross domestic product over the next 17 years. “The bulk of that in the beginning will be construction-led but at steady state it will be tourism-led,” he added. This will be alongside secondary industries like sustainable agriculture, heritage preservation and film production. The government, along with a French cultural partnership, has already begun financing infrastructure at Al-Ula, which features majestic rock-hewn tombs and 2,000-year-old stone carvings by the Nabateans, the pre-Islamic Arab people that also built Petra in neighboring Jordan. (Reuters)  Saudi Aramco to expand Al Jafura natural gas plant from next year – Saudi Aramco will start construction of new phase of Al Jafura natural gas plant in 2020, CEO, Amin Nasser said. The plant will process gas and produce ethane, condensate and natural gas liquids, he added. In November, Saudi Aramco planned on exporting gas, including from unconventional deposits and it also plans to boost the natural gas output. (Bloomberg)  UAE’s Energy Minister expects OPEC to finalize long-term cooperation charter with non-OPEC charter in June – The UAE’s Energy Minister, Suhail Al-Mazrouei said that he expects OPEC to finalize the long-term cooperation charter with its non-OPEC partners in June. The UAE is committed to delivering 100% of oil supply cuts in the coming months, he said. (Reuters)  Mubadala Development Company and Tencent Holdings said to vie for $3bn Watson stake – Mubadala Development Company, the Abu Dhabi sovereign fund, and Chinese internet giant Tencent Holdings Ltd. are weighing bids for part of Temasek Holdings Pte’s stake in global retailer A.S. Watson Group, sources said. The Singapore state investment company is considering selling around a 10% stake in A.S. Watson for about $3bn, according to sources. (Bloomberg)  Kuwait’s January bank claims on private sector rises to KD38,797.7mn – The Central Bank of Kuwait has published data on bank assets which showed that in January the bank claims on private sector rose to KD38,797.7mn. In December, the bank claims on private sector rose to KD38,718.7mn from KD38,263.2mn in November. Bank foreign assets fell to KD13,515.1mn in January from KD13,786.mn in December. (Bloomberg)  Oman's PDO plans to increase oil output to 670,000 bpd in next 5 years – Petroleum Development Oman (PDO) is planning to ramp up oil production to 670,000 bpd in the next five years, it stated. “This comes after it confirmed that 2018 yielded its highest oil output since 2005 of 610,170 bpd,” the company stated. (Reuters)  Oman denies it has agreed to invest in Sri Lanka oil refinery project – Oman’s oil ministry denied being part of a $3.85bn plan to build an oil refinery in Sri Lanka, a day after the Sri Lankan government announced the Arab country’s participation. Sri Lankan officials told a news conference that a
  6. 6. Page 6 of 7 joint venture between the Oman oil ministry and a Singapore investment vehicle owned by India’s Accord Group had agreed to build the 200,000 bpd refinery near Chinese-controlled Hambantota port on the island’s south coast. The ministry was to take a 30% stake, the officials said, representing what would be Sri Lanka’s biggest single foreign direct investment. “No one on this side of the panel is aware of this investment in Sri Lanka,” Undersecretary of Oman’s ministry of oil and gas, Salim Al-Aufi said. “It came as news to me, I don’t know who is signing the cheque for $3.8bn,” he added. An industry source familiar with the discussions said that there have been talks concerning the project that involved Oman but that they were at an early stage. (Reuters)  Oman and Shell plan to start gas-to-liquids project by 2026 – Oman and Shell plans to start gas-to-liquids project by 2026 and another project for liquefied natural gas for ship fuel with Total will begin by 2024, Undersecretary of Ministry of Oil & Gas, Salim Al-Aufi said. (Bloomberg)  Oman Gas Pipe to Duqm from Saih Nahida to be ready in 3Q2020 – Oman Gas Pipe which is being built to send natural gas from Saih Nahida field to Duqm industrial area will be completed by 3Q2020, CEO of Duqm Refinery & Petrochemical Industries Company, Salim Al Huthaili said. Duqm Refinery & Petrochemical Industries is a Joint Venture between Oman Oil Company and Kuwait Petroleum International. (Bloomberg)  Oman’s oil production stood at 976k bpd – Oman’s oil production stood at 976k bpd and the production capacity is bigger, but it is committed to OPEC+ agreement to curb output, Undersecretary of Ministry of Oil & Gas, Salim Al-Aufi said. (Bloomberg)  Bahrain’s central bank cuts one-month deposit rate to 3.10% – Bahrain’s central bank stated that it has cut its one-month deposit rate to 3.10% from 3.25% on Wednesday, but kept rates for overnight and one-week deposit facilities unchanged. The move came after the Federal Reserve held interest rates steady and its policymakers abandoned projections for further rate hikes this year as the US central bank flagged an expected slowdown in the economy. Bahrain’s key policy interest rate is the one-week deposit facility, which remained unchanged at 2.75%. (Reuters)  Bahrain gets $300mn Saudi Arabian funding for import of energy products – Bahrain’s Oil & Gas Holding Company has signed an accord with Saudi Fund for Development (SFD) and has received $300mn to finance imports of energy products from Saudi Arabia, state-run Bahrain News Agency reported. (Bloomberg)
  7. 7. Contacts Saugata Sarkar, CFA, CAIA Shahan Keushgerian Zaid al-Nafoosi, CMT, CFTe Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6509 Tel: (+974) 4476 6535 saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa Mehmet Aksoy, PhD QNB Financial Services Co. W.L.L. Senior Research Analyst Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6589 PO Box 24025 mehmet.aksoy@qnbfs.com.qa Doha, Qatar Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services Co. W.L.L. (“QNB FS”) a wholly-owned subsidiary of Qatar National Bank (Q.P.S.C.). QNB FS 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 QNB FS 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. QNB FS 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 QNB FS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. QNB FS 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 QNB FS Fundamental Research as a result of depending solely on the historical technical data (price and volume). QNB FS 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 QNB FS. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNB FS. Page 7 of 7 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg (*$ adjusted returns) 45.0 70.0 95.0 120.0 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 QSE Index S&P Pan Arab S&P GCC (0.2%) 0.2% 0.2% 0.2% 0.1% 0.4% 0.1% (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 1,312.54 0.5 0.8 2.3 MSCI World Index 2,112.05 (0.4) 0.2 12.1 Silver/Ounce 15.48 0.7 1.2 (0.1) DJ Industrial 25,745.67 (0.5) (0.4) 10.4 Crude Oil (Brent)/Barrel (FM Future) 68.50 1.3 2.0 27.3 S&P 500 2,824.23 (0.3) 0.1 12.7 Crude Oil (WTI)/Barrel (FM Future) 59.83 1.4 2.2 31.8 NASDAQ 100 7,728.97 0.1 0.5 16.5 Natural Gas (Henry Hub)/MMBtu 2.86 (2.4) (1.7) (12.0) STOXX 600 380.84 (0.9) 0.3 11.9 LPG Propane (Arab Gulf)/Ton 66.50 (2.0) (2.7) 3.9 DAX 11,603.89 (1.5) (0.4) 9.1 LPG Butane (Arab Gulf)/Ton 67.50 (0.9) (2.0) (2.9) FTSE 100 7,291.01 (1.1) 0.1 12.1 Euro 1.14 0.5 0.8 (0.5) CAC 40 5,382.66 (0.8) (0.1) 12.8 Yen 110.70 (0.6) (0.7) 0.9 Nikkei 21,608.92 0.1 0.7 6.9 GBP 1.32 (0.5) (0.7) 3.5 MSCI EM 1,068.47 (0.2) 1.1 10.6 CHF 1.01 0.7 1.0 (1.1) SHANGHAI SE Composite 3,090.64 0.2 2.6 27.3 AUD 0.71 0.4 0.4 1.0 HANG SENG 29,320.97 (0.5) 1.1 13.2 USD Index 95.76 (0.6) (0.9) (0.4) BSE SENSEX 38,386.75 0.4 1.2 7.8 RUB 63.86 (0.8) (1.5) (8.4) Bovespa 98,041.37 (1.8) (0.2) 14.2 BRL 0.26 0.4 1.1 2.8 RTS 1,226.26 0.5 2.5 14.7 99.4 93.2 82.7

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