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QNBFS Daily Market Report November 14, 2018

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The QSE Index declined 1.0% to close at 10,314.6.

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QNBFS Daily Market Report November 14, 2018

  1. 1. Page 1 of 7 QSE Intra-Day Movement Qatar Commentary The QSE Index declined 1.0% to close at 10,314.6. Losses were led by the Telecoms and Industrials indices, falling 1.8% and 1.1%, respectively. Top losers were Qatar National Cement Company and Medicare Group, falling 3.3% each. Among the top gainers, Mannai Corporation gained 2.2%, while Gulf International Services was up 1.5%. GCC Commentary Saudi Arabia: The TASI Index fell 0.3% to close at 7,751.0. Losses were led by the Retailing and Banks indices, falling 1.0% and 0.5%, respectively. MEFIC REIT Fund declined 10.0%, while Najran Cement Co. was down 3.5%. Dubai: The DFM General Index declined 1.0% to close at 2,775.5. The Insurance index fell 2.2%, while the Invest. & Fin. Serv. declined 1.8%. Al Ramz Corporation Inv. and Dev. fell 9.4%, while International Financial Advisors was down 8.1%. Abu Dhabi: The ADX General Index rose 0.3% to close at 4,966.8. The Banks index gained 0.6%, while the Telecommunication index rose 0.1%. National Marine Dredging Co. gained 14.7%, while Invest Bank was up 12.2%. Kuwait: The Kuwait Main Market Index declined 0.4% to close at 4,747.2. The Consumer Goods index fell 1.4%, while the Oil & Gas index declined 1.3%. Heavy Eng. Industries & Shipbuilding Co. fell 7.0%, while Gulf Cement Co. was down 5.9%. Oman: The MSM 30 Index fell 0.3% to close at 4,467.3. Losses were led by the Services and Financial indices, falling 0.4% and 0.2%, respectively. Al Omaniya Financial Serv. fell 29.7%, while National Gas was down 3.6%. Bahrain: The BHB Index fell 0.3% to close at 1,305.0. The Commercial Bank index declined 0.6%, while the other indices remained flat or ended in the green. National Bank of Bahrain and Ahli United Bank were down 0.8% each. QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Mannai Corporation 58.40 2.2 0.4 (1.8) Gulf International Services 19.29 1.5 103.0 9.0 Salam International Inv. Ltd. 4.50 1.4 7.0 (34.7) Qatar General Ins. & Reins. Co. 47.45 1.0 0.3 (3.2) Investment Holding Group 5.38 0.7 218.0 (11.8) QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD% Qatar Gas Transport Company Ltd. 17.98 0.0 1,209.0 11.7 Qatar First Bank 4.29 0.5 606.1 (34.3) Masraf Al Rayan 38.30 (2.4) 566.8 1.5 Vodafone Qatar 8.02 (0.4) 359.5 0.0 Qatar Fuel Company 193.10 0.1 341.0 89.2 Market Indicators 13 Nov 18 12 Nov 18 %Chg. Value Traded (QR mn) 227.8 217.1 4.9 Exch. Market Cap. (QR mn) 578,737.3 583,784.5 (0.9) Volume (mn) 5.6 4.4 26.7 Number of Transactions 3,994 3,914 2.0 Companies Traded 41 43 (4.7) Market Breadth 14:24 21:19 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 18,173.21 (1.0) (0.5) 27.1 15.2 All Share Index 3,044.04 (0.8) (0.5) 24.1 15.4 Banks 3,763.09 (1.0) (0.1) 40.3 14.1 Industrials 3,312.44 (1.1) (1.1) 26.4 15.7 Transportation 2,095.88 (0.2) (0.7) 18.5 12.2 Real Estate 1,969.58 (0.1) (1.5) 2.8 17.7 Insurance 3,045.46 0.4 (0.5) (12.5) 18.1 Telecoms 952.68 (1.8) (3.1) (13.3) 38.6 Consumer 7,416.30 0.0 2.6 49.4 15.2 Al Rayan Islamic Index 3,911.94 (0.9) (0.4) 14.3 15.3 GCC Top Gainers ## Exchange Close # 1D% Vol. ‘000 YTD% Co. for Cooperative Ins. Saudi Arabia 52.50 3.6 455.2 (44.4) Mouwasat Medical Serv. Saudi Arabia 73.50 3.4 145.0 (2.9) Emaar Malls Dubai 1.93 3.2 7,503.7 (9.4) Saudi Arabian Mining Co. Saudi Arabia 46.20 2.2 785.6 (11.0) Mabanee Co. Kuwait 0.64 1.6 394.6 (4.8) GCC Top Losers ## Exchange Close # 1D% Vol. ‘000 YTD% Taiba Holding Co. Saudi Arabia 29.15 (2.8) 48.1 (16.2) Ooredoo Qatar 69.67 (2.7) 102.5 (23.2) VIVA Kuwait Telecom Co. Kuwait 0.79 (2.6) 69.5 (1.3) Masraf Al Rayan Qatar 38.30 (2.4) 566.8 1.5 Ominvest Oman 0.35 (2.2) 21.8 (16.9) Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Losers Close* 1D% Vol. ‘000 YTD% Qatar National Cement Company 58.00 (3.3) 1.5 (7.8) Medicare Group 61.80 (3.3) 49.9 (11.5) Ooredoo 69.67 (2.7) 102.5 (23.2) Masraf Al Rayan 38.30 (2.4) 566.8 1.5 Industries Qatar 137.00 (2.1) 161.8 41.2 QSE Top Value Trades Close* 1D% Val. ‘000 YTD% Qatar Fuel Company 193.10 0.1 66,347.0 89.2 Industries Qatar 137.00 (2.1) 22,288.1 41.2 Masraf Al Rayan 38.30 (2.4) 21,869.3 1.5 Qatar Gas Transport Co. Ltd. 17.98 0.0 21,598.2 11.7 QNB Group 193.43 (0.7) 14,106.3 53.5 Source: Bloomberg (* in QR) Regional Indices Close 1D% WTD% MTD% YTD% Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 10,314.62 (1.0) (0.5) 0.1 21.0 62.54 158,979.1 15.2 1.5 4.2 Dubai 2,775.51 (1.0) (1.8) (0.3) (17.6) 33.46 99,499.8 9.0 1.0 6.3 Abu Dhabi 4,966.79 0.3 (1.2) 1.3 12.9 33.71 135,268.4 13.1 1.4 4.9 Saudi Arabia 7,750.95 (0.3) 0.1 (2.0) 7.3 820.83 490,372.8 16.6 1.7 3.6 Kuwait 4,747.20 (0.4) (0.0) 1.1 (1.7) 52.84 32,426.0 16.0 0.9 4.4 Oman 4,467.28 (0.3) (0.5) 1.0 (12.4) 3.51 19,346.9 10.5 0.8 5.8 Bahrain 1,304.96 (0.3) (0.6) (0.7) (2.0) 0.98 20,186.2 8.9 0.8 6.3 Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any) 10,300 10,350 10,400 10,450 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 QSE Index declined 1.0% to close at 10,314.6. The Telecoms and Industrials 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.  Qatar National Cement Company and Medicare Group were the top losers, falling 3.3% each. Among the top gainers, Mannai Corporation gained 2.2%, while Gulf International Services was up 1.5%.  Volume of shares traded on Tuesday rose by 26.7% to 5.6mn from 4.4mn on Monday. Further, as compared to the 30-day moving average of 5.4mn, volume for the day was 3.5% higher. Qatar Gas Transport Company Limited and Qatar First Bank were the most active stocks, contributing 21.6% and 10.8% to the total volume, respectively. Source: Qatar Stock Exchange (* as a % of traded value) Earnings Releases and Global Economic Data Earnings Releases Company Market Currency Revenue (mn) 3Q2018 % Change YoY Operating Profit (mn) 3Q2018 % Change YoY Net Profit (mn) 3Q2018 % Change YoY Al-Omran Industrial Trading Co. Saudi Arabia SR 34.5 44.9% 1.9 17.1% 0.8 -20.1% Al Kathiri Holding Co. Saudi Arabia SR 13.7 -5.4% 3.5 -15.0% 3.4 3.9% Emaar Development Dubai AED 3,043.0 -8.3% – – 682.0 -33.5% Dar Al Takaful Dubai AED 80.6 -11.4% – – -1.7 N/A Islamic Arab Insurance Company Dubai AED 245.7 22.8% – – -1.6 -112.6% Al Dhafra Insurance Company Abu Dhabi AED 74.4 -14.3% – – 28.8 51.0% Union Insurance Company Abu Dhabi AED 242.1 -11.6% – – 5.0 -16.5% Nass Corporation Bahrain BHD 44.1 -2.7% – – 0.4 -53.2% Bahrain National Holding Company Bahrain BHD 9.3 14.4% – – 1.0 533.1% Delmon Poultry Company# Bahrain BHD 3,890.1 16.8% -49.9 N/A -57.0 N/A Source: Company data, DFM, ADX, MSM, TASI, BHB. ( # Values in ‘000) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 11/13 UK UK Office for National Statistics Jobless Claims Change October 20.2k – 23.2k 11/13 UK UK Office for National Statistics ILO Unemployment Rate 3Mths September 4.1% 4.0% 4.0% 11/13 Germany German Federal Statistical Office CPI MoM October 0.2% 0.2% 0.2% 11/13 Germany German Federal Statistical Office CPI YoY October 2.5% 2.5% 2.5% 11/13 China The People's Bank of China Money Supply M1 YoY October 2.7% 4.2% 4.0% 11/13 China The People's Bank of China Money Supply M0 YoY October 2.8% 2.8% 2.2% 11/13 China The People's Bank of China Money Supply M2 YoY October 8.0% 8.4% 8.3% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  Trading in shares of Vodafone Qatar to be suspended on Thursday due to capital reduction – Vodafone Qatar announced that trading in the company’s shares will be suspended for one day on November 15, 2018, as per regulatory requirements, on account of its previously announced capital reduction that will take effect on the same day. Trading in the company’s shares will resume on November 18, 2018. Vodafone Qatar obtained its shareholders approval at the company’s Extraordinary General Assembly on March 19, 2018, in addition to all requisite regulatory approvals, to proceed with implementation of the capital reduction. The capital reduction is essentially a balance sheet transaction effected by means of an accounting adjustment all within the ‘total equity’ section. The share capital of the company will be reduced from QR8,454mn to QR4,227mn by way of reducing the nominal value of the shares of the company from QR10 per share to QR5 per share. The transaction has no impact whatsoever on the value or the number of the shares held by shareholders or on the cash position or financial liquidity of the company. The objective of the capital reduction is to enable the company to extinguish its accumulated losses associated with the amortization costs of the company’s telecommunications networks and services license. This is expected to deliver the long term potential Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 24.69% 35.36% (24,294,914.46) Qatari Institutions 22.38% 18.63% 8,550,340.61 Qatari 47.07% 53.99% (15,744,573.85) GCC Individuals 0.57% 0.42% 321,010.66 GCC Institutions 1.28% 0.83% 1,023,735.69 GCC 1.85% 1.25% 1,344,746.35 Non-Qatari Individuals 9.53% 8.85% 1,542,078.41 Non-Qatari Institutions 41.55% 35.90% 12,857,749.09 Non-Qatari 51.08% 44.75% 14,399,827.50
  3. 3. Page 3 of 7 growth of the company, attract new investors and enable future payment of dividends in line with the applicable law and the company’s Articles of Association. (QSE)  MSCI: MPHC and QFLS are not to be added to MSCI Equity Indexes until further notice; BRES weight doubled and DHBK moved from standard to small-cap - MSCI will not add Mesaieed Petrochemical and Qatar Fuel Co. to the MSCI Global Investable Market Indexes (GIMI) as part of the November index review as these companies impose low ownership limits for individual investors. Such limits may potentially result in index replicability issues for institutional investors. MSCI plans to consult with market participants to define an appropriate threshold for individual ownership limits in the MSCI GIMI as soon as practicable. According to MSCI, Mesaieed Petrochemical and Qatar Fuel Co will remain ineligible for inclusion in the MSCI Equity Indexes until further notice. The decision regarding MPHC and QFLS was unexpected and we await further clarification from MSCI. In other changes, as expected, BRES will have its weight doubled in the standard index. Also, DHBK will move from standard to small-cap and QFBQ will be deleted from the small-cap index. (MSCI Press Release, Industry Sources)  QFC sees Qatar as gateway to $2.1tn regional market – According to Yousuf Al Jaida, CEO and board member at the Qatar Financial Centre (QFC), Qatar, over the last one and a- half year after the siege, has been able to transform the challenges into opportunities by introducing a series of economic and other reforms, and has come under the spotlight of global companies and investors. Al Jaida said, “We are focusing on the few markets nearby such as Kuwait, Oman, Turkey, India, Pakistan and some other countries in the Southeast Asia region. If you quantify those markets, which are nearly four hours away from Doha, it constitutes a very big economic block. And we firmly believe that Doha-based companies can serve these markets better.” Al Jaida added, “We are incentivizing multinationals to establish in Qatar to tap the business opportunities in those markets. We have strategic geographical location, good connectivity, better infrastructure and logistics facilities, so we believe that there is a very good business proposition here.” (Peninsula Qatar)  Group CEO: The Commercial Bank remains convinced of Turkey’s long-term strategic importance – The volatility in Turkey’s economy does not change The Commercial Bank’s perspective of the long-term importance of the country, according to The Commercial Bank Group’s CEO, Joseph Abraham. Abraham said, “Turkey is a very important market in terms of its geopolitical positioning. The two-way trade between Qatar and Turkey is growing very rapidly. Mutual investments are going up and more Turkish companies are now opening up businesses in Qatar. Qatari companies are also entering Turkey in a big way.” He added, “We are committed to Turkey in the long-term. Turkey and Qatar are key strategic partners and we remain convinced of Turkey’s long-term strategic importance, both globally, and within a Middle Eastern context. Our commitment to Turkey is demonstrated through our near $1bn investment in Alternatif Bank, recent injections of $50mn of capital, and the purchase of Alternatif Bank’s new head office in Istanbul this year.” Due to the strong bilateral relationship between Qatar and Turkey, The Commercial Bank Group’s CEO noted, “There will be flows of capital, investments, trade and business between the two countries. Having a strong presence in Turkey through Alternatif Bank is important to enable us to tap into these flows.” (Gulf-Times.com)  IMF: Qatar has contained the effect of siege, to grow faster this year, helping the overall GCC to expand faster. Qatar's real (inflation-adjusted) economic growth is expected to be 2.7% this year and 2.8% in 2019 compared to 1.6% in 2017. Consumer price index inflation is expected to rise to 3.7% this year compared to a mere 0.4% in 2017. The general price level is expected to see a marginal reduction to 3.5% in 2019. In Kuwait and Qatar, the fiscal stance is appropriately balanced, with the underlying fiscal position continuing to improve, it stated, adding that in the coming years, however, each of these countries needs further tightening of the fiscal position to ensure intergenerational equity. Qatar is expected to see fiscal surplus of 3.6% of gross domestic product (GDP) in 2018 and 10.5% in 2019 against deficit of 1.6% in 2017. (Gulf-Times.com)  WOQOD opens two new fuel stations – Qatar Fuel (Woqod) opened the Mesaimeer South petrol station yesterday, taking its network of petrol stations to 78. The opening came as part of Woqod’s ongoing expansion plans to be able to serve every area in Qatar, the company stated. Also, he pointed out that WOQOD, has opened a mobile station in Onaiza to reduce vehicle congestion and enhance customer satisfaction. (Gulf- Times.com)  Qatar’s real estate most stable in the region; achieving high growth – A seminar organized by the Ministry of Justice’s Legal and Judicial Studies Centre highlighted the reality of real estate brokerage in the country, with a focus on the legal provisions regulating it. Director of the Legal and Judicial Studies Centre, Fatima Abdulaziz Bilal, said that the reality of the Qatari economy and the growing real estate sector requires the presence of specialized real estate companies working to achieve balance in the real estate market and to be an honest broker in the sale or purchase operations, especially with the increase of the construction sector in the country. She pointed out that the real estate market in Qatar is one of the most stable real estate markets in the region and is achieving high growth rates, referring to the measures taken by the State to develop the brokerage work to strengthen the real estate market. (Peninsula Qatar)  Ta’heel initiative proves a great push for Qatari factories – Under its Ta’heel initiative, Ashghal has so far succeeded in increasing the number of Qatari factories from 86 to 131 by the end of October 2018. The number of locally manufactured materials in these factories, which are used in infrastructure projects has also increased from 114 materials, at the time of the launch of Ta’heel initiative, to 165 building materials being manufactured in Qatar now. The Ta’heel initiative was launched in July 2017; since then, Ashghal has developed the systems by which Qatari manufacturers can submit their applications electronically through the authority’s website. Ashghal held the third forum of Ta’heel Initiative for local investors and manufacturers yesterday to attract more Qatari
  4. 4. Page 4 of 7 manufacturers to join and participate in Ashghal’s supply chain. (Peninsula Qatar) International  US government posts $100bn deficit in October – The US federal government ran a $100bn deficit in October, the first month of the new fiscal year, according to the Treasury Department. The deficit was in line with analysts’ expectations. The Treasury stated federal spending rose 18% from the year- earlier month to $353bn in October, while receipts were up 7% to $253bn. When accounting for calendar differences, the government ran a deficit of $110bn last month compared with $111bn in October 2017. (Reuters)  Trump's steel tariffs create big profits but few new jobs – While Trump has played up the narrative of downtrodden steel workers losing jobs to unscrupulous foreign competitors, most of the benefit from his 25% tariffs are flowing to the already strong bottom lines of Nucor Corp (America’s largest steelmaker) and other modernized and globally competitive US steel firms, according to interviews with industry executives, experts and a Reuters review of company earnings. Even if tariffs prompt such firms to expand, they are not likely to add large numbers of factory jobs because they have stayed competitive by slashing the amount of labor required to make steel. The Commerce Department issued a statement to Reuters that tariffs will help the Sedalia plant (of Nucor Corp) and 12 other steel projects create about 3,405 jobs. That’s 2.4% gain industry wide, according to the American Iron and Steel Institute. (Reuters)  German investors downbeat on economic rebound as morale stays weak – Investors do not expect the German economy to recover rapidly from a weak patch, the ZEW research institute stated, adding that its monthly survey pointed to a subdued third quarter. Fears about trade disputes, the risk of a disorderly Brexit and political uncertainty at home are weighing on Europe’s largest economy, which is in its ninth year of growth. The survey showed economic sentiment among investors in Europe’s biggest economy rising slightly to -24.1 in November from -24.7 in October. That compared to a Reuters consensus forecast of -25.0. However, investors’ assessment of the economy’s current conditions fell to 58.2 from 70.1 in the previous month, way below a Reuters consensus forecast of 65.0. (Reuters)  Japan's economy contracts in the third quarter as natural disasters, trade woes bite – Japan’s economy contracted more than expected in the third quarter, hit by natural disasters and a decline in exports, a worrying sign that trade protectionism is starting to take its toll on overseas demand. The contraction in the world’s third-largest economy adds to growing signs of weakness globally, with China and Europe losing momentum. Germany is expected to report later in the day that its economy also shrank last quarter. Japan’s 1.2% annualized contraction in July-September was more than a median estimate for 1.0% decline and followed a robust 3.0% expansion in the previous quarter. The government stuck to its view the economy continues to recover moderately, blaming the contraction on typhoons and an earthquake that halted factories and stifled consumption. (Reuters)  China’s industrial output, investment beat forecasts; retail sales miss – China’s reported a mixed bag of economic data for October, but industrial output and investment grew faster than expected, suggesting a flurry of support measures may be starting to take hold. Industrial output rose 5.9% in October, the National Bureau of Statistics (NBS) stated, surpassing analysts’ estimates. Factory output had been expected to grow 5.7%, down from 5.8% in September. Private sector fixed-asset investment rose 8.8% in January-October, compared with an increase of 8.7% in the first three quarters. Private investment accounts for about 60% of overall investment in China. Retail sales slowed more than expected, while growth in October real estate investment eased to a 10-month low and home sales fell again as developers held back expansion plans in the face of softening demand. Retail sales rose 8.6% in October from a year earlier, the slowest since May. Analysts had expected retail sales to rise 9.1%, slowing from 9.2% in September. Moreover, real estate investment in China rose 9.7% in the first 10 months of 2018 versus the same period a year earlier, official data showed. The growth was a bit slower compared with 9.9% gain in the first three quarters of the year. (Reuters)  China’s October loan data disappoints; points to further slowing in the economy – China’s credit growth slowed sharply in October, despite pressure by regulators on banks to help keep cash-starved companies afloat, pointing to further weakening in the economy in coming months. While October is typically a slow month for Chinese credit, growth in key gauges such as total social financing and money supply fell to record lows, reinforcing views that policymakers will need to step up efforts to revive flagging investment. The weaker trend also suggested overall credit conditions in China tightened last month despite recent easing in monetary policy, including moves by the central bank to bring down market interest rates and four cuts in banks’ reserve requirements so far this year. (Reuters) Regional  Energy shocks ‘biggest risk for Middle East business’ – Potential energy price shocks are the biggest worry facing business leaders in the MENA region, according to a report on global risk by the World Economic Forum (WEF). The prospect of sharp volatility in energy prices, the main government revenue stream in most of the countries of the Arabian Gulf, is a bigger concern than unemployment in the region, the WEF survey identified. (GulfBase.com)  OPEC basket price ends up 2.9% in October, highest monthly average in 4 years – The OPEC Reference Basket (ORB), an important benchmark for crude oil prices, ended October higher, increasing by $2.21, or 2.9% MoM, to average $79.39 per barrel. This is the highest monthly average since October 2014, the OPEC monthly oil report stated. (Peninsula Qatar)  Saudi Arabia-based ICD looks to deepen Sukuk markets – Saudi Arabia-based Islamic Corporation for the Development of the Private Sector (ICD) hopes to expand its capital market activities and attract new corporates to issue Sukuk, its CEO, Ayman Sejiny told Reuters. The ICD, the private-sector arm of the Islamic Development Bank Group, has sought to help develop Islamic finance across its 53 member countries and in recent years has focused its work in Africa and central Asia. While ICD has advised several governments on their debut
  5. 5. Page 5 of 7 sales of Sukuk, including Senegal, Jordan, Nigeria and Ivory Coast, it hopes to attract private companies to the market as well. “The next natural step is to identify potential corporates to issue Sukuk. Sukuk can help diversify their investor base, so we want to facilitate hard-currency Sukuk issuance in those regions, he said.” Such issuance can help private companies attract new foreign investors and allow local Islamic financial firms to invest their excess liquidity in Shari’ah-compliant instruments that are often scarce in those markets, Ayman Sejiny said. The ICD is currently in discussion with several CIS (Commonwealth of Independent States) countries to help them issue Sukuk, he added. (Reuters)  Saudi Arabia fully abandon oil cuts for first time since curbs began – Saudi Arabia in October boosted crude production above its starting point for oil cuts, the first time the Kingdom fully abandoned the curbs since they began in January of last year, according to Bloomberg calculations from OPEC secondary-source data. Saudi Arabia’s output in October was 10.63mn bpd as compared to 10.502mn bpd in September, according to data published in OPEC’s monthly market report. As part of OPEC+ supply cuts, Saudi Arabia agreed to curb production by 486k bpd below the starting point of 10.544mn bpd, which was its October 2016 output. (Bloomberg)  Oil & gas industry a critical enabler of economic growth – The global oil and gas will be a critical enabler of economic growth in the 4th Industrial Age, according to Sultan Ahmed Al Jaber, the UAE Minister of State and Group CEO of the Abu Dhabi National Oil Company (ADNOC). He said that the world is on the verge of an era of unprecedented prosperity. “This will be driven by rapid advances in technology and a global middle class, which will grow to 5bn people by 2030, creating greater demand for energy and products derived from oil and gas”, Al Jaber added. (GulfBase.com)  UAE aims to regulate ICO by June – The UAE’s Securities & Commodities Authority aims to publish regulations for initial coin offerings (ICO) by the first half of next year, CEO Obaid Al Zaabi said. (Bloomberg)  IMF expects Dubai's economic growth to outpace that of Abu Dhabi – Dubai’s economy is expected to grow 3.3% in 2018 as compared to 2.7% for Abu Dhabi, the International Monetary Fund (IMF) stated in a report. The Dubai economy is expected to grow 4% in 2019 as compared to 3.4% for Abu Dhabi. The UAE economy is expected to grow 2.9% in 2018 and 3.7% in 2019. (Bloomberg)  Emirates: Higher oil, strong Dollar to squeeze earnings – Airline Emirates’ earnings are being squeezed by higher oil prices, a strong Dollar, and instability in the global economy, the airline's Chief Commercial Officer, Thierry Antinori said. The warning came ahead of Emirates' half-year financial results for the period ending September 30. "The profit will be badly hit by the fuel," Thierry Antinori said at an aviation conference in Dubai, adding that the airline's fuel costs had risen by 40%. (Zawya)  Dubai hotel occupancy, rates dip despite demand growth – Hotels in Dubai witnessed declines in occupancy and revenues in October despite a significant growth in demand (room nights sold), primarily due to the pressure from increased supply, stated a report. Dubai hotels recorded a 4.3% drop in occupancy levels to 75.2%, with the average daily rate falling 6.1% to AED685.41, causing revenue per available room (RevPAR) to decline 10.2% to AED515.64, according to STR’s preliminary data for October. Demand was up 3.1% in October but supply surged 7.7% for the month. While the imbalance in supply and demand growth has led directly to lower occupancy levels, STR analysts attribute lower ADR in Dubai to hotels looking to drive market share through more attractive rates. (GulfBase.com)  DP World celebrates $3.3bn listings on Nasdaq Dubai – Dubai- based global marine terminal operator DP World's group chairman and CEO, Sultan Ahmed Bin Sulayem, celebrated the Sukuk and bond listings totaling $3.3bn on Nasdaq Dubai. The listing comprises a 10-year $1bn US Dollar Sukuk and three conventional bonds of 30 years $1bn, eight years $845.25mn and 12 years $452.18mn, respectively, stated the company. The four listings together amount to a value of about $3.3bn. The deal sets new benchmarks for Middle East issuers, it stated. Amongst other highlights, this deal marks the largest bonds issue from the Middle East since 2014 and is the first triple currency offering from a Middle East issuer in the past 12 years, it added. (GulfBase.com)  Over 90mn passengers expected to use Dubai's main airport in 2018 – Just over 90mn passengers are expected to use Dubai International Airport in 2018, Dubai Airports Chief Executive Paul Griffiths said at an aviation industry conference. Passengers using the airport, the hub for Middle East airline giant Emirates and a major source of income for Dubai, rose 5.5% to 88.2mn in 2017. (Reuters)  Aldar awards construction contract for mega Abu Dhabi project – Aldar Properties has signed up Al Rakha Contracting & General Transport LLC to complete the infrastructure buildings and early works package for the first neighborhood in the phase two of its $2.72bn project Alghadeer, located close to the border of Abu Dhabi and Dubai. As per the $91mn deal, Al Rakha Contracting & General Transport will construct 707 maisonettes, townhouses and villas following the site preparation work. (GulfBase.com)  BP studying ways to boost Abu Dhabi gas output – BP is working on ways to produce natural gas from Abu Dhabi’s oil fields, Michael Townshend, regional president, BP Middle East said. Abu Dhabi wants to produce gas that’s trapped with crude deposits, and BP sees these so-called gas caps adding to the Emirate’s production in 5 to 10 years, he said. The gas cap at the Bab field, which BP is developing, could add 1bn cubic feet per day, he added. (Bloomberg)  Abu Dhabi billionaire's holding firm reportedly seeks to raise $500mn – Abu Dhabi’s Bin Butti International Holdings LLC, which has investments spanning logistics, travel and retail, is raising $500mn loan to refinance existing debt, according to sources. The company, which is owned by billionaire Nasser Butti Al Muhairi, is raising the funds through its advance facilities management unit in Dollars and Dirhams, the sources said. The loan will reportedly have a seven year tenor and will pay 3.5% over the London interbank offered rate (LIBOR) and Emirates interbank offered rate. Noor Bank is the lead arranger and book runner for the loan, while Emirates NBD, Commercial Bank of Dubai and National Bank of Fujairah are among the banks helping to arrange the borrowing. (Bloomberg)
  6. 6. Page 6 of 7  Oman sells OMR53mn 28-day bills at yield of 2.233%; bid-cover at 1.23x – Oman sold OMR53mn of bills due on December 12 on November 12. Investors offered to buy 1.23 times the amount of securities sold. The bills were sold at a price of 99.829, having a yield of 2.233% and will settle on November 14. (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 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 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 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 QSEIndex S&PPanArab S&PGCC (0.3%) (1.0%) (0.4%) (0.3%) (0.3%) 0.3% (1.0%)(1.2%) (0.6%) 0.0% 0.6% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1,202.22 0.2 (0.6) (7.7) MSCI World Index 2,026.52 (0.1) (1.8) (3.7) Silver/Ounce 14.00 0.0 (1.1) (17.4) DJ Industrial 25,286.49 (0.4) (2.7) 2.3 Crude Oil (Brent)/Barrel (FM Future) 65.47 (6.6) (6.7) (2.1) S&P 500 2,722.18 (0.1) (2.1) 1.8 Crude Oil (WTI)/Barrel (FM Future) 55.69 (7.1) (7.5) (7.8) NASDAQ 100 7,200.88 0.0 (2.8) 4.3 Natural Gas (Henry Hub)/MMBtu 4.10 3.5 7.0 32.7 STOXX 600 364.44 1.0 (0.8) (12.1) LPG Propane (Arab Gulf)/Ton 69.38 (5.6) (4.5) (29.9) DAX 11,472.22 1.6 (1.0) (16.7) LPG Butane (Arab Gulf)/Ton 72.00 (9.4) (5.3) (33.6) FTSE 100 7,053.76 1.1 (0.6) (11.9) Euro 1.13 0.6 (0.4) (6.0) CAC 40 5,101.85 1.2 (0.6) (9.9) Yen 113.81 (0.0) (0.0) 1.0 Nikkei 21,810.52 (2.2) (2.1) (5.3) GBP 1.30 1.0 0.0 (4.0) MSCI EM 966.02 (0.0) (1.0) (16.6) CHF 0.99 0.4 (0.1) (3.2) SHANGHAI SE Composite 2,654.88 1.0 2.2 (24.9) AUD 0.72 0.6 (0.1) (7.6) HANG SENG 25,792.87 0.7 0.8 (14.0) USD Index 97.30 (0.2) 0.4 5.6 BSE SENSEX 35,144.49 1.6 0.3 (9.0) RUB 68.13 0.4 0.1 18.2 Bovespa 84,914.11 (2.4) (2.8) (3.7) BRL 0.26 (0.9) (1.8) (12.9) RTS 1,100.05 (1.3) (1.9) (4.7) 76.8 75.0 74.2

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