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QNBFS Daily Market Report November 27, 2018

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The QSE Index rose 1.0% to close at 10,356.6

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QNBFS Daily Market Report November 27, 2018

  1. 1. Page 1 of 7 QSE Intra-Day Movement Qatar Commentary The QSE Index rose 1.0% to close at 10,356.6. Gains were led by the Telecoms and Real Estate indices, gaining 3.2% and 1.5%, respectively. Top gainers were Doha Insurance Group and Qatar Oman Investment Company, rising 6.7% and 6.4%, respectively. Among the top losers, Al Meera Consumer Goods Company fell 1.3%, while Widam Food Company was down 0.8%. GCC Commentary Saudi Arabia: The TASI Index rose 0.2% to close at 7,528.9. Gains were led by the Energy and Capital Goods indices, rising 0.7% and 0.5%, respectively. Saudi Industrial Export Co. rose 9.9%, while Saudi Arabia Refineries Co. was up 5.1%. Dubai: The DFM General Index declined 0.4% to close at 2,727.4. The Invest. & Fin. Services and Insurance indices declined 2.9% each. Gulf General Investments Company fell 8.9%, while Khaleeji Commercial Bank was down 6.3%. Abu Dhabi: The ADX General Index rose 0.5% to close at 4,971.4. The Investment & Financial Services index gained 3.6%, while the Consumer Staples index rose 1.7%. Methaq Takaful Insurance Co. gained 9.6%, while Waha Capital Co. was up 3.9%. Kuwait: The Kuwait Main Market Index rose 0.1% to close at 4,736.1. The Basic Materials and Consumer Goods indices rose 1.6% each. Al Masaken International Real Estate Dev. gained 30.0%, while Kuwait Remal Real Estate Co. was up 15.8%. Oman: The MSM 30 Index fell 0.7% to close at 4,393.1. Losses were led by the Financial and Industrial indices, falling 1.1% and 1.0%, respectively. Al Anwar Holding fell 8.0%, while Oman Fisheries was down 5.4%. Bahrain: The BHB Index gained 0.5% to close at 1,326.9. The Investment index rose 2.1%, while the other indices end flat or in red. United Gulf Holding Company rose 9.8%, while Arab Banking Corporation was up 1.3%. QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Doha Insurance Group 13.37 6.7 0.9 (4.5) Qatar Oman Investment Company 6.19 6.4 30.4 (21.6) Al Khalij Commercial Bank 11.45 3.5 91.4 (19.4) Ooredoo 76.40 3.5 219.4 (15.8) Al Khaleej Takaful Insurance Co. 8.37 3.3 61.4 (36.8) QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD% Doha Bank 20.92 1.0 1,400.2 (26.6) Barwa Real Estate Company 39.45 0.6 1,267.5 23.3 Mazaya Qatar Real Estate Dev. 7.85 2.7 1,118.5 (12.8) Masraf Al Rayan 39.97 1.2 897.0 5.9 Vodafone Qatar 8.37 2.6 795.3 4.4 Market Indicators 26 Nov 18 25 Nov 18 %Chg. Value Traded (QR mn) 289.0 82.1 252.0 Exch. Market Cap. (QR mn) 584,769.6 577,932.7 1.2 Volume (mn) 9.1 2.9 214.9 Number of Transactions 6,676 2,130 213.4 Companies Traded 42 43 (2.3) Market Breadth 29:8 15:24 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 18,247.21 1.0 0.3 27.7 15.3 All Share Index 3,078.32 1.1 0.3 25.5 15.6 Banks 3,838.11 1.4 0.2 43.1 14.4 Industrials 3,270.38 0.3 (0.2) 24.8 15.5 Transportation 2,096.61 0.2 (0.1) 18.6 12.2 Real Estate 2,064.15 1.5 0.2 7.8 18.6 Insurance 3,054.74 0.6 1.7 (12.2) 18.2 Telecoms 1,025.24 3.2 1.7 (6.7) 41.6 Consumer 6,805.89 0.8 0.2 37.1 13.9 Al Rayan Islamic Index 3,899.91 0.6 0.2 14.0 15.3 GCC Top Gainers ## Exchange Close # 1D% Vol. ‘000 YTD% Al Ahli Bank of Kuwait Kuwait 0.31 5.1 325.0 6.9 Saudi Arabian Fertilizer Saudi Arabia 79.00 3.9 259.9 21.4 Ooredoo Qatar 76.40 3.5 219.4 (15.8) Banque Saudi Fransi Saudi Arabia 32.55 2.7 216.4 13.8 Boubyan Petrochem. Co. Kuwait 1.02 2.2 720.1 52.5 GCC Top Losers ## Exchange Close # 1D% Vol. ‘000 YTD% Dubai Investments Dubai 1.40 (3.4) 18,032.5 (41.9) GFH Financial Group Dubai 1.16 (3.3) 11,846.6 (22.7) National Bank of Oman Oman 0.18 (2.7) 272.1 (5.5) Saudi Arabian Mining Co. Saudi Arabia 45.65 (2.6) 311.5 (12.0) HSBC Bank Oman Oman 0.12 (2.5) 55.2 (8.6) Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Losers Close* 1D% Vol. ‘000 YTD% Al Meera Consumer Goods Co. 148.00 (1.3) 4.6 2.1 Widam Food Company 67.77 (0.8) 22.4 8.4 Gulf International Services 18.18 (0.6) 268.8 2.7 Qatar Islamic Insurance Company 52.71 (0.6) 41.8 (4.1) Mesaieed Petrochemical Holding 16.23 (0.4) 239.4 28.9 QSE Top Value Trades Close* 1D% Val. ‘000 YTD% Barwa Real Estate Company 39.45 0.6 49,969.5 23.3 QNB Group 197.89 1.8 38,578.2 57.0 Masraf Al Rayan 39.97 1.2 35,765.6 5.9 Doha Bank 20.92 1.0 29,366.0 (26.6) Industries Qatar 135.60 0.7 17,805.8 39.8 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* 10,356.62 1.0 0.3 0.5 21.5 79.12 160,636.2 15.3 1.5 4.2 Dubai 2,727.41 (0.4) (1.0) (2.1) (19.1) 43.04 98,426.8 9.2 1.0 6.5 Abu Dhabi 4,971.43 0.5 (0.3) 1.4 13.0 69.00 135,519.1 13.5 1.4 4.8 Saudi Arabia 7,528.90 0.2 (1.0) (4.8) 4.2 736.96 474,719.3 16.2 1.7 3.7 Kuwait 4,736.05 0.1 (0.3) 0.9 (1.9) 59.02 32,362.9 17.0 0.9 4.4 Oman 4,393.06 (0.7) (1.4) (0.7) (13.8) 5.03 19,094.8 10.4 0.8 5.9 Bahrain 1,326.86 0.5 0.3 0.9 (0.4) 12.19 20,213.6 9.0 0.8 6.1 Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any) 10,200 10,250 10,300 10,350 10,400 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 rose 1.0% to close at 10,356.6. The Telecoms 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.  Doha Insurance Group and Qatar Oman Investment Company were the top gainers, rising 6.7% and 6.4%, respectively. Among the top losers, Al Meera Consumer Goods Company fell 1.3%, while Widam Food Company was down 0.8%.  Volume of shares traded on Monday rose by 214.9% to 9.1mn from 2.9mn on Sunday. Further, as compared to the 30-day moving average of 5.8mn, volume for the day was 58.2% higher. Doha Bank and Barwa Real Estate Company were the most active stocks, contributing 15.3% and 13.9% to the total volume, respectively. Source: Qatar Stock Exchange (* as a % of traded value) Ratings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Walaa Cooperative Insurance Co Moody's Saudi Arabia IFS – A3 – Stable – Source: News reports (* LT – Long Term, ST – Short Term, IFS- Insurance Financial Strength) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 11/26 Germany IFO Institute IFO Business Climate November 102.0 102.3 102.9 11/26 Germany IFO Institute IFO Expectations November 98.7 99.2 99.7 11/26 Japan Markit Nikkei Japan PMI Mfg November 51.8 – 52.9 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar  Qatar to open up more sectors for 100% foreign ownership – Qatar is set to further expand its investment ecosystem allowing foreign investors for 100% ownership in more sectors. Opening the Qatar-France Business and Investment Forum yesterday, Ministry of Commerce and Industry’s Assistant Undersecretary for Commerce Affairs, Yahya bin Saeed Al Nuaimi said the country is working towards the issuance of a new investment law that will represent an important step in the journey to attract foreign investors. The Forum, which was organized by the French Embassy in Doha, in partnership with the Ministry of Commerce and Industry, the Qatar Businessmen Association and Qatar Financial Centre (QFC), kicked off yesterday. The forum aims at enhancing economic, trade and investment cooperation between Qatar and France and building communication channels between representatives of the Qatari and French private sectors to establish joint investment projects that serve the interests of both countries. (Peninsula Qatar)  Foreign firms urged to take advantage of Qatar’s commercial reforms – Qatar is marking an important milestone in its journey towards achieving sustainable development through the implementation of Qatar National Vision 2030 strategies and programs aimed at reducing dependence on oil and gas and supporting the country’s transition towards a knowledge-based economy, Ministry of Commerce and Industry’s Undersecretary, Sultan Bin Rashid Al Khater said. Delivering the opening speech at the 6th Global Economic Development Forum, titled ‘Global Mindset for Connecting with pearl of the Middle East-Qatar’, Al Khater said Qatar has managed to strengthen its national economy, with the GDP rising to $222bn in 2017 compared to $218bn in 2016, an annual growth rate of 1.6% at constant prices. Quoting the latest World Bank report, Al Khater said Qatar’s economy will grow by another 2.8% in 2018 and by an average 3% during 2019-2020, as the government seeks to further promote foreign investments. Qatar’s foreign trade also grew by 16% last year, he said, noting that this growth was driven by an 18% increase in Qatari exports, which resulted in a trade surplus of 49.9% in 2017. (Peninsula Qatar)  QCB’s Governor: Blockade was like a real stress test for the economy – Qatar Central Bank’s (QCB) Governor, HE Sheikh Abdulla bin Saoud Al Thani has said the blockade imposed on Qatar was like a real stress test for the economy. The resilience of the Qatari economy and the strong confidence of the investors were realized during the blockade. Speaking to The Euromoney, ahead of The Euromoney Qatar Conference in Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 23.03% 33.07% (29,024,773.34) Qatari Institutions 11.39% 26.25% (42,936,668.05) Qatari 34.42% 59.32% (71,961,441.39) GCC Individuals 0.23% 0.48% (718,497.25) GCC Institutions 1.99% 2.80% (2,321,697.78) GCC 2.22% 3.28% (3,040,195.03) Non-Qatari Individuals 6.09% 7.80% (4,950,130.94) Non-Qatari Institutions 57.27% 29.60% 79,951,767.36 Non-Qatari 63.36% 37.40% 75,001,636.42
  3. 3. Page 3 of 7 December, the QCB Governor said 10 years since the financial crisis, the global economy appeared to have moved out of the danger zone, even though downside risk still exists. Efforts by the central banks and other authorities across the globe enabled this positive development in the face of many uncertainties and risks. (Peninsula Qatar)  Blockade has no impact on major infrastructure projects in Qatar – Balanced economic policies and its robust relations with various countries across the globe have helped Qatar to tackle the ongoing diplomatic embargo by the Saudi Arabia-led quartet. The blockade has no impact on projects related to 2022 FIFA World Cup, which are progressing ahead of schedule, according to a top official of Qatar Chamber (QC). “The siege did not affect the major construction and infrastructure projects in Qatar, as all the construction projects related to the 2022 World Cup and infrastructure projects are proceeding well ahead of schedule,” QC’s first Vice Chairman Mohamed bin Towar Al- Kuwari told an international conference organized by the Ministry of Commerce and Industry and China-based Global Economic Development Forum. A recent International Monetary Fund (IMF) report noted Qatar has contained the effect of the blockade, thus enabling it to grow faster this year and helping the overall Gulf Co-operation Council economies to expand faster. Appreciative of the role played by the private sector amidst the blockade, Al-Kuwari said Qatari businessmen have made great efforts to find alternative sources to ensure the continued flow of goods without interruption. (Gulf- Times.com)  Qatar seen playing a key role in China's Belt and Road plan – Qatar, which has a pre-eminent position in the Middle East, has a key role to play in the Belt and Road Initiative, a development strategy adopted by the Chinese government involving infrastructure development and investments in Europe, Asia and Africa. "Qatar's position in the region helps it to play an important role in the Belt and Road Initiative, especially with its economic and geographical components," said Gui Hanfeng, Chairman of Global Economic Development Forum (GEDF), a global platform to bolster cooperation as well as economic, trade and cultural coordination among nations. The statement assumes significance considering that the Qatar Chamber (QC) last year signed a memorandum of understanding with the China Council for the Promotion of International Trade to join the Silk Road Business Council. The presence of shipping lines between the two countries contributes to the growth of economic relations, and also supports investment opportunities between them, he said, adding the 2022 FIFA World Cup and the Qatar National Vision 2030 make it an ideal environment for attracting investment, which is expected to see progress and prosperity under these incentives. (Gulf-Times.com)  QCSD provides new services for Qamco’s listing – Qatar Central Securities Depository (QCSD) has announced that it has provided a number of electronic services as part of the ongoing preparations to list Qatar Aluminum Manufacturing Company (Qamco). The aim is to allow the shareholders to inquire about the shares allocated to them, thereby saving time and energy. The company stated that it will provide electronic screens at the offices of financial services companies (brokerages) to inquire about the shareholders’ numbers (NIN) and shares allocated to them in Qamco’s offer, using their ID card numbers. The allocated shares will be available in the shareholders’ statement once they are listed. The electronic statement can be printed through the company’s electronic services portal through and the shareholder can obtain a daily, weekly or monthly statement. The company stated that if a shareholder does not have a registered NIN number, a new shareholder’s number will be defined based on the information in the IPO application, and an SMS message will be sent to the shareholder. SMS messages will be sent to each shareholder, whose shares are listed in Qamco’s systems, as well as to update shareholders’ data by adding the IBAN according to the data in Qamco’s shareholder register. (Gulf-Times.com)  QFC plans partnership with largest startup incubator in France – A partnership between Qatar Financial Centre (QFC) and Station F, the world’s biggest startup campus based Paris, is underway for the development of Qatar’s startup ecosystem, according to France-Qatar Business Council’s Chairman, Guillaume Pepy. He said, “There are more than 1,000 digital companies and startups, and they are all gathered in the same place so they can develop their own projects; and also, there is a cross-fertilization process between the different startups so that they could accelerate their development and the time to market. No less than €2.6bn has been invested in France to have startups. It’s much more than in any other European country, and this is the kind of showcase that we would like to share with our Qatari friends.” Asked which sectors would benefit from the partnership, Pepy said digital transformation and digital business has value for all the different sectors of the Qatari and French economies. (Gulf-Times.com)  Qatar Chamber’s Chairman joins GCC trade ministers, chambers meeting – Qatar Chamber’s Chairman, Sheikh Khalifa bin Jassim Al-Thani participated in the ‘4th Consultative Meeting of GCC Ministers of Commerce and Industry and Chairmen of Federations and Chambers’ held in Kuwait on Wednesday. The meeting reviewed ways of increasing the public-private partnership, the development SMEs, and strengthening cooperation between GCC ministries of trade and industry. It also discussed facilitating custom procedures and combating obstacles facing the GCC joint market. Kuwait’s Amir, Sabah Al- Ahmad Al-Jaber Al-Sabah hosted the GCC ministers of commerce and industry, as well as presidents of chambers of commerce and industry at the Bayan Palace on the sidelines of the ‘56th Meeting of the GCC Trade and Industrial Co-operation Committee of the General Secretariat’ also held in Kuwait. (Gulf-Times.com)  QFC to French investors: Qatar offers access to a bloc with $2.1tn GDP, $1.13tn trade – Qatar could offer French investors access to four emerging regional markets with a combined GDP of $2.1tn and international trade worth $1.13tn, an official of Qatar Financial Centre (QFC) said during the first ‘Qatar-France Business and Investment Forum’. “Initiatives like today’s event are at the essence of QFC’s mission. This mission is to contribute toward our country’s vision of building, developing, and diversifying our economic environment. Attracting FDI is a national priority for us and QFC’s platform is the best option for your company, when it comes to doing business in Qatar,” QFC’s Managing Director for Business Development, Sheikha
  4. 4. Page 4 of 7 Alanoud bint Hamad Al-Thani said. Sheikha Alanoud also stressed that French investors could consider Qatar as a hub to a region that has 40 countries. “Combine Qatar with four other emerging regional markets – to highlight a few examples – Turkey, Kuwait, Oman, and Pakistan. This provides you access to an economic bloc with a combined GDP of $2.1tn and $1.13tn in trade,” she pointed out. (Gulf-Times.com)  WOQOD opens petrol station in Rawdat Al Hamama-2 – Qatar Fuel Company (WOQOD) opened Rawdat Al Hamama-2 raising its total count of petrol stations to 79. Rawdat Al Hamama-2 petrol station is spread over an area of 10,000 square meters and has three lanes with six dispensers that will serve Rawdat Al Hamama and its neighborhood. (Peninsula Qatar)  Qatar Airways expands operations in Iran with new routes, more flights – Qatar Airways announced that it will expand its operations in Iran with the launch of a new twice-weekly direct service to Isfahan International Airport from February 4, 2019, as well as introducing increased services to Shiraz and Tehran, from early January 2019. (Gulf-Times.com)  Qatar, Turkey sign pacts to cement ties – Further strengthening bilateral ties, Qatar and Turkey signed an agreement and a number of Memorandums of Understanding (MoU) in the presence of HH the Amir, Sheikh Tamim bin Hamad Al-Thani and Turkish President, Recep Tayyip Erdogan. This followed the fourth meeting of Qatar-Turkey Supreme Strategic Committee. A MoU was signed between Qatar Civil Aviation Authority and Turkey’s Directorate General of Civil Aviation. Another was for the Cultural Year 2019-2020 with regard to cooperation in the field of culture between the two countries. Two cooperation protocols were also signed. The first is on cooperation and training in the field of electronic warfare, and the second on the exchange of members of the armed forces. A trade and economic partnership agreement too was signed aimed at liberalizing trade in goods and services, cooperation in electronic commerce and attracting investment between the two sides. The ceremonies were concluded by signing the joint statement issued by the fourth meeting of Qatar-Turkey Supreme Strategic Committee. (Gulf-Times.com) International  WTO's quarterly indicator suggests trade growth slowing further in the fourth quarter – Global growth in merchandise trade is likely to slow further this quarter, the World Trade Organization (WTO) stated, as it published a quarterly indicator showing declines in all seven of the drivers of trade that it tracks. The WTO’s quarterly trade outlook indicator showed a reading of 98.6, the lowest since October 2016, reflecting a further loss of momentum since August, when the index was at 100.3. A reading below 100 signals below-trend growth in trade. In the latest reading, electronic components plunged to 93.3 from 102.2 in the previous quarter, while agricultural raw materials slumped to 97.2 from 100.1 and export orders slid to 96.6 from 97.2 in August. (Reuters)  ILO: Global wage growth slumps to 1.8% in 2017, lowest in a decade – Global wages grew by 1.8% in 2017, down from 2.4% in 2016 and the slowest rate since the global financial crisis in 2008, the International Labour Organization (ILO) said in its two-yearly Global Wage Report. In the past 20 years, average real wages have almost tripled in emerging and developing G20 countries, but they have risen by only 9% in advanced G20 countries. (Reuters)  Trump says he expects to raise China’s tariffs – US President, Donald Trump said he expects to move ahead with raising tariffs on $200bn in Chinese imports to 25% from the current 10% and repeated his threat to slap tariffs on all remaining imports from China. In an interview with the Wall Street Journal, four days ahead of his high-stakes meeting with Chinese President Xi Jinping, Trump said it was “highly unlikely” he would accept China’s request to hold off on the increase, which is due to take effect on January 1. (Reuters)  UK’s mortgage approvals edge up in four months in October – British banks approved the most mortgages for house purchase in four months in October and consumer borrowing maintained its steady pace of growth, industry data showed, suggesting the economy was holding up as Brexit neared. The number of mortgages approved for house purchase rose to 39,697 from a five-month low of 38,712 in September but was down about 1% compared with October last year, the seasonally adjusted figures from UK Finance showed. (Reuters)  ECB’s President: Eurozone’s slowdown not enough for ECB to change course – The Eurozone has lost some growth momentum but this was mostly normal and not enough to derail plans by the European Central Bank (ECB) to dial back stimulus further, ECB’s President, Mario Draghi and two of his top lieutenants said. Eurozone’s growth has been disappointing since the summer months, and Germany, the bloc’s biggest economy, even contracted last quarter, raising some concern that the ECB may be cutting support at the worst possible moment. “A gradual slowdown is normal as expansions mature and growth converges towards its long-run potential,” Draghi told the European Parliament’s committee on economic affairs. (Reuters)  Falling business morale points to weak German growth; signs of economy cooling as Brexit, trade conflicts weigh – German business morale fell by more than expected in November as the country’s exporters were caught up in a trade dispute between China and the US. Economists expressed concern about the drop in the Ifo economic institute’s business climate index, which followed the first quarterly contraction in German GDP since 2015. Munich-based Ifo stated the index fell for the third month in a row to 102.0. This was lower than a consensus forecast of 102.3 in a Reuters poll of economists. Moreover, there are signs that the German economy is cooling as uncertainty related to Britain’s looming departure from the European Union and trade conflicts cause uncertainty, an economist at the Ifo institute stated. (Reuters)  Italy sticks to 2019 budget goals, for now, ahead of cost review – The Italian government stated that it was sticking to its main 2019 budget goals for now as it awaits a cost analysis of its main spending measures but left open the possibility of eventually cutting its deficit target. Prime Minister, Giuseppe Conte discussed the contested financial package with his two deputies, Matteo Salvini and Luigi Di Maio, against the backdrop of possible disciplinary action from Brussels unless the expansionary plans are altered. (Reuters)  China's industrial profit growth cools again in October – Profit growth at China’s industrial firms slumped for a sixth straight
  5. 5. Page 5 of 7 month in October as demand cooled further amid mounting uncertainties stemming from the US-China trade war. China and the US have slapped tariffs on billions of dollars of each other’s goods, hurting manufacturing and casting a shadow on the outlook for global growth. Industrial profits rose 3.6% in October from a year earlier, slowing from September’s 4.1% gain, the National Bureau of Statistics (NBS) stated. The expansion was the slowest since March as the world’s second- largest economy braced for weaker growth thanks to the trade war plus efforts to rein in financial risks and tackle pollution problems. (Reuters) Regional  Saudi Arabia targets $64bn in mining revenue by 2030 – Saudi Arabia aims to raise the Kingdom’s mining revenues to $64bn from $17bn by 2030, Energy Minister Khalid Al-Falih said. Mining vast untapped reserves of bauxite, phosphate, gold, copper and uranium is key to the Saudi Arabia’s efforts to diversify its economy away from hydrocarbons. Studies indicate that the level of the likely geological reserves in the Kingdom exceed $1tn. Al-Falih said, “We are seeking to develop the mining sector through the implementation of a comprehensive strategy and raise its contribution to GDP from $17bn to $64bn, with the generation of 160,000 additional jobs by 2030.” (Reuters)  Saudi Arabia’s daily oil output surpasses a record 11mn barrels – Saudi Arabia is pumping as much as 11.2mn barrels of crude a day, the most since the Kingdom extracted its first oil eight decades ago, according to sources. The Kingdom’s production was running at about 10.8mn to 10.9mn barrels earlier this month. Saudi Arabia was also using crude from domestic and overseas stockpiles to supplement supply, industry executives said at the time. It is unclear if Saudi Arabia plans to keep increasing production, or if it is still supplementing supply from the inventories. (Bloomberg)  Saudi Arabia pumps record amount of oil as Trump piles on pressure – Saudi Arabia raised oil production to an all-time high in November, an industry source said as US President, Donald Trump piled pressure on the Kingdom to refrain from production cuts at an OPEC meeting next week. The meeting, at which OPEC members will consider how to arrest a decline in oil prices, comes days after leaders of top global oil producers travel to Argentina for a G20 summit this week. (Reuters)  Saudi Aramco plans Ras Tanura refinery upgrades to make cleaner fuels – Saudi Aramco will upgrade the processing units at 550k bpd at the Ras Tanura refinery to produce cleaner- burning fuels, according to a company official. The company has already started the work on $2bn project to produce gasoline that meets Euro V standards and burns more cleanly fuel. Saudi Aramco will produce ultra-low sulfur diesel by 2023; the company has conducted early engineering work to add diesel hydrotreater, which will produce 10ppm diesel and the cost estimates are not yet determined. (Bloomberg)  Saudi Aramco eyes bigger market share in Asia ahead of possible OPEC cut – Saudi Aramco will expand its market share in Asia despite likely OPEC limits on output next year, and is eyeing deals in China and Africa as it aims to become a global leader in chemicals, CEO Amin Naser said. He told Reuters that his company would abide by any OPEC agreement to cut crude production in 2019, less than two weeks before the exporter group meets to decide output policy. However he added that he still sees growth opportunities in Asia - identifying China, India, Malaysia and Indonesia - and will push ahead with refining ventures to guarantee new outlets for Saudi Aramco’s crude. (Reuters)  Saudi Aramco signs 13 MoUs for projects including offshore works – Saudi Aramco signed 13 Memorandum of Understandings (MoUs) for projects including offshore works with companies including Baker Hughes, Schlumberger, Sapura Energy, Siemens, ABB, Lamprell and Boskalis, Technip, Offshore Oil Engineering, NPCC, Sepco at the event organized by Saudi Aramco called ‘In-Kingdom Total Value Add’ (IKTVA). (Bloomberg)  Saudi Electricity Company seeks shareholder’s approval to set up power generation unit – Saudi Electricity Company stated that it seeks shareholders’ approval to set up a power generation unit, the company stated. (Bloomberg)  Saudi Arabia’s funds' splurge cushions market buffeted by oil and Jamal Khashoggi – Saudi Arabia’s funds have been buying equities for more than two months, even in the face of weakening oil prices and fallout from the death of columnist Jamal Khashoggi in the country’s Istanbul consulate. That’s in contrast with the selling by individual local investors and foreigners. Saudi Arabian institutions bought a net $203mn of stocks in the five days ended November 22, the 21st consecutive week of purchases, even as Brent crude spiraled toward its lowest level in more than a year. Meanwhile, Saudi Arabian individuals and foreigners together sold about SR800mn. Earlier this year, foreigners were buyers as they bet on the world’s biggest oil exporter winning a place in emerging- market equity benchmarks before actual inclusion in 2019. They have been net sellers as volatility surged last month following the killing of Jamal Khashoggi, with some traders saying that funds tied to the government could be supporting local equities. (Bloomberg)  Visa reforms to give confidence to investors, entrepreneurs – Businessmen in the UAE are expected to be more confident in investing more as a long-term stay brings more certainty, according to experts. The UAE relaxed norms for investors and entrepreneurs to get a higher duration visa upon investment of a fixed sum, a few weeks after the UAE upgraded its place in terms of ease of doing business. “Investors and entrepreneurs will certainly welcome the greater certainty which will facilitate long term investment, R&D and development of new and potentially disruptive technologies,” Chirag Shah, CEO, 1 International FinCentre Associates, an advisory firm said. (GulfBase.com)  UAE-Caribbean Cooperation Forum explores role of SMEs – Small and medium-sized enterprises (SME) are playing a vital role in expanding trade ties between the UAE and Caribbean region, according to the heads of chambers of commerce who spoke at the inaugural UAE-Caribbean Cooperation Forum. During the forum, a panel discussion entitled ‘The Role of the Private Sector in Building a Connected and Competitive Future’ evaluated bilateral business opportunities that could be availed by SMEs in the UAE and Caribbean markets, as well as key sectors and areas where companies on both sides can expand
  6. 6. Page 6 of 7 their cooperation. Among the issues addressed during the session were key challenges facing SMEs in both regions, as well as critical building blocks needed to harness productive relationships between the UAE and Caribbean business communities. (GulfBase.com)  Al Hilal Bank uses blockchain to sell Sukuk in the secondary market – Abu Dhabi’s Al Hilal Bank has executed the world’s first Sukuk transaction using blockchain technology, it stated. The Islamic bank used the distributed ledger technology, best known as the underpinning of crypto-currency Bitcoin, to sell and settle in the secondary market a small portion of its $500mn five-year Sukuk, issued in September. “Al Hilal Bank is aiming to transform the Sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic Sukuk,” it stated. A bank spokeswoman said that the size of the deal was $1mn, sold by Al Hilal to a private investor. Applied to capital raising exercises, blockchain technology is expected to simplify issuance and trading, and also improve regulatory oversight. (Reuters)  ADNOC launches new Taweelah gas compression plant – Abu Dhabi National Oil Company (ADNOC) has inaugurated its technologically-advanced Taweelah Gas Compression Plant (Taweelah), which will ensure uninterrupted gas supplies to major Abu Dhabi industries and Fujairah. The plant, located 50 km north of Abu Dhabi city, will utilize up to 450mn standard cu ft per day (mmscfd) of sales gas. The gas will be delivered to the facility by ADNOC Gas Processing’s recently installed Maqta- Taweelah pipeline, ADNOC stated. Siemens AG is the main contractor for the project. (GulfBase.com)  Germany's Wintershall joins Italy's Eni in Abu Dhabi gas project – Wintershall AG, the energy subsidiary of chemical giant BASF SE, joined Italy’s Eni SpA in a 40-year concession to develop major natural gas fields in Abu Dhabi. Wintershall is the first German oil and gas company to join ADNOC’s concession, ADNOC stated. The deal is the third major agreement that ADNOC has signed this month as part of its drive to become self-reliant in gas and export the fuel by 2030. The German company will hold a 10% stake in the Ghasha offshore sour gas concession, which ADNOC expects to produce more than 1.5bn cubic feet a day of gas by about the middle of the next decade. “That would be enough gas to provide electricity to more than two million homes,” it stated. ADNOC also expects the project to produce more than 120,000 barrels a day of oil and condensate. “The gas, extracted from the concession area, at commercial rates, will make a significant contribution to fulfilling our commitment to ensuring a sustainable and economic gas supply and achieving our objectives of gas self-sufficiency for the UAE,” ADNOC’s CEO, Sultan Al Jaber said. (Bloomberg)  Central Bank of Kuwait sets up test ground for Fintech – Central Bank of Kuwait has issued regulatory guidelines for companies wishing to experiment with new financial technology products and services, it stated. Kuwait’s regulatory testing framework, known as a ‘sandbox’, will include four phases, with representatives from local banks joining a central bank taskforce to assess the products and services being proposed. Other cities across the Gulf region are competing to establish themselves as regional powerhouses in financial technology or Fintech. Bahrain has created a Fintech regulatory unit and Abu Dhabi and Dubai is cultivating a financial startup scene. Saudi Arabia has stated that Fintech is a focus of its King Abdullah Financial District in Riyadh. (Reuters)  Bahrain sells BHD70mn 91-day bills; bid-cover at 1.54x – Bahrain sold BHD70mn of bills due February 27, 2019. Investors offered to buy 1.54 times the amount of securities sold. The bills have a yield of 4.27% and will settle on November 28. (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 QSE Index S&P Pan Arab S&P GCC 0.2% 1.0% 0.1% 0.5% (0.7%) 0.5% (0.4%)(1.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1,222.40 (0.1) (0.1) (6.2) MSCI World Index 1,999.20 1.2 1.2 (5.0) Silver/Ounce 14.23 (0.4) (0.4) (16.0) DJ Industrial 24,640.24 1.5 1.5 (0.3) Crude Oil (Brent)/Barrel (FM Future) 60.48 2.9 2.9 (9.6) S&P 500 2,673.45 1.6 1.6 (0.0) Crude Oil (WTI)/Barrel (FM Future) 51.63 2.4 2.4 (14.5) NASDAQ 100 7,081.85 2.1 2.1 2.6 Natural Gas (Henry Hub)/MMBtu 4.28 (8.9) (8.9) 38.5 STOXX 600 358.33 1.3 1.3 (13.2) LPG Propane (Arab Gulf)/Ton 69.00 (6.1) (6.1) (30.3) DAX 11,354.72 1.5 1.5 (17.1) LPG Butane (Arab Gulf)/Ton 70.50 (6.9) (6.9) (35.0) FTSE 100 7,036.00 1.3 1.3 (13.2) Euro 1.13 (0.1) (0.1) (5.6) CAC 40 4,994.98 1.0 1.0 (11.3) Yen 113.58 0.5 0.5 0.8 Nikkei 21,812.00 0.3 0.3 (5.0) GBP 1.28 0.1 0.1 (5.1) MSCI EM 976.57 0.8 0.8 (15.7) CHF 1.00 (0.1) (0.1) (2.4) SHANGHAI SE Composite 2,575.81 (0.0) (0.0) (27.0) AUD 0.72 (0.2) (0.2) (7.5) HANG SENG 26,376.18 1.7 1.7 (12.0) USD Index 97.07 0.2 0.2 5.4 BSE SENSEX 35,354.08 1.4 1.4 (6.3) RUB 67.10 1.3 1.3 16.4 Bovespa 85,546.51 (3.1) (3.1) (5.3) BRL 0.25 (2.9) (2.9) (16.0) RTS 1,084.17 (2.6) (2.6) (6.1) 75.7 75.3 73.0

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