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QNBFS Daily Market Report September 10, 2018

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The QSE Index declined 0.6% to close at 9,770.4.

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QNBFS Daily Market Report September 10, 2018

  1. 1. Page 1 of 5 QSE Intra-Day Movement Qatar Commentary The QSE Index declined 0.6% to close at 9,770.4. Losses were led by the Banks & Financial Services and Real Estate indices, falling 1.2% and 1.1%, respectively. Top losers were The Group Islamic Insurance Company and Qatar Islamic Bank, falling 4.5% and 2.5%, respectively. Among the top gainers, Investment Holding Group gained 2.8%, while Mannai Corporation was up 2.5%. GCC Commentary Saudi Arabia: The TASI Index rose 0.5% to close at 7,729.1. Gains were led by the Media and Food & Staples Retailing indices, rising 2.9% and 2.3%, respectively. Tourism Enterprise rose 8.5%, while Al Alamiya for Cooperative Ins. was up 6.0%. Dubai: The DFM General Index gained 0.6% to close at 2,842.7. The Consumer Staples and Discretionary index rose 4.6%, while the Insurance index gained 2.3%. Drake & Scull International rose 6.1%, while Takaful Emarat was up 5.7%. Abu Dhabi: The ADX General index fell marginally to close at 4,918.1. The Consumer Staples index declined 2.5%, while the Telecom. index fell 1.4%. Ras Al- Khaimah Nat. Ins. declined 8.6%, while International Holdings Co. was down 5.7%. Kuwait: The Kuwait Main market Index declined 1.4% to close at 4,799.6. The Real Estate index fell 6.5%, while the Consumer Goods index declined 0.7%. Ream Real Estate Company fell 77.8%, while Danah Al Safat Foodstuff Co. was down 25.0%. Oman: The MSM 30 Index rose 0.5% to close at 4,453.6. Gains were led by the Services and Financial indices, rising 0.6% and 0.3%, respectively. Almaha Ceramics rose 2.6%, while Al Madina Investment was up 2.4%. Bahrain: The BHB Index gained 0.3% to close at 1,343.5. The Industrial index rose 0.8%, while Investment index was up 0.3%. Ithmaar Holding rose 4.8%, while Arab Banking Corporation was up 1.3%. QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Investment Holding Group 5.88 2.8 147.7 (3.6) Mannai Corporation 52.40 2.5 32.7 (11.9) Islamic Holding Group 27.50 1.8 4.5 (26.7) United Development Company 14.30 1.4 388.7 (0.6) Dlala Brokerage & Inv. Holding Co. 12.45 1.1 477.1 (15.3) QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD% Dlala Brokerage & Inv. Holding Co. 12.45 1.1 477.1 (15.3) Vodafone Qatar 8.84 0.1 416.7 10.2 United Development Company 14.30 1.4 388.7 (0.6) Qatar Navigation 65.00 0.5 226.2 16.2 Qatar First Bank 5.25 (1.3) 213.0 (19.6) Market Indicators 09 Sep 18 06 Sep 18 %Chg. Value Traded (QR mn) 97.4 114.7 (15.1) Exch. Market Cap. (QR mn) 539,431.5 543,539.6 (0.8) Volume (mn) 3.4 4.0 (14.2) Number of Transactions 1,780 1,990 (10.6) Companies Traded 39 40 (2.5) Market Breadth 13:22 17:18 – Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 17,214.41 (0.6) (0.6) 20.4 14.5 All Share Index 2,850.44 (0.7) (0.7) 16.2 14.8 Banks 3,499.50 (1.2) (1.2) 30.5 14.2 Industrials 3,133.91 (0.1) (0.1) 19.6 15.5 Transportation 2,014.24 0.3 0.3 13.9 12.5 Real Estate 1,810.89 (1.1) (1.1) (5.5) 15.4 Insurance 3,104.10 (0.4) (0.4) (10.8) 29.0 Telecoms 993.03 (0.1) (0.1) (9.6) 39.0 Consumer 6,211.28 (0.1) (0.1) 25.1 13.5 Al Rayan Islamic Index 3,793.35 (0.3) (0.3) 10.9 16.4 GCC Top Gainers ## Exchange Close # 1D% Vol. ‘000 YTD% Knowledge Economic City Saudi Arabia 11.62 4.3 1,186.0 (9.4) Saudi Arabian Fertilizer Saudi Arabia 74.00 3.1 303.6 13.7 Riyad Bank Saudi Arabia 15.78 2.7 462.5 26.2 Aldar Properties Abu Dhabi 1.95 2.6 8,338.0 (11.4) Emaar Economic City Saudi Arabia 9.43 2.5 3,632.4 (30.1) GCC Top Losers ## Exchange Close # 1D% Vol. ‘000 YTD% Abu Dhabi Islamic Bank Abu Dhabi 4.09 (2.6) 1,505.7 8.2 Qatar Islamic Bank Qatar 135.50 (2.5) 68.9 39.7 Nat. Industrialization Co Saudi Arabia 19.20 (2.0) 2,195.6 17.1 Mouwasat Medical Serv. Saudi Arabia 79.50 (2.0) 67.7 5.0 National Petrochem. Co. Saudi Arabia 27.10 (1.8) 173.2 46.2 Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Losers Close* 1D% Vol. ‘000 YTD% The Group Islamic Insurance Co. 52.50 (4.5) 16.2 (4.5) Qatar Islamic Bank 135.50 (2.5) 68.9 39.7 Ezdan Holding Group 9.99 (1.9) 163.4 (17.3) QNB Group 175.51 (1.5) 68.1 39.3 Qatar First Bank 5.25 (1.3) 213.0 (19.6) QSE Top Value Trades Close* 1D% Val. ‘000 YTD% Qatar Navigation 65.00 0.5 14,636.4 16.2 QNB Group 175.51 (1.5) 12,055.9 39.3 Qatar Islamic Bank 135.50 (2.5) 9,435.1 39.7 Ooredoo 70.00 (0.2) 8,405.3 (22.9) Barwa Real Estate Company 36.19 (0.5) 6,979.8 13.1 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* 9,770.43 (0.6) (0.6) (1.2) 14.6 26.83 148,181.8 14.5 1.5 4.5 Dubai 2,842.67 0.6 0.6 0.1 (15.6) 68.54 101,477.6 7.6 1.1 6.0 Abu Dhabi 4,918.08 (0.0) (0.0) (1.4) 11.8 27.88 133,557.1 12.9 1.5 4.9 Saudi Arabia 7,729.07 0.5 0.5 (2.8) 7.0 528.10 490,285.9 17.0 1.7 3.7 Kuwait 4,799.60 (1.4) (1.4) (2.0) (0.6) 38.00 33,166.8 14.8 0.9 4.3 Oman 4,453.56 0.5 0.5 0.8 (12.7) 5.87 13,480.2 11.0 0.8 6.1 Bahrain 1,343.53 0.3 0.3 0.4 0.9 3.06 20,624.7 9.1 0.9 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) 9,760 9,780 9,800 9,820 9,840 9,860 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
  2. 2. Page 2 of 5 Qatar Market Commentary  The QSE Index declined 0.6% to close at 9,770.4. The Banks & Financial Services and Real Estate indices led the losses. The index fell on the back of selling pressure from Qatari and GCC shareholders despite buying support from non-Qatari shareholders.  The Group Islamic Insurance Company and Qatar Islamic Bank were the top losers, falling 4.5% and 2.5%, respectively. Among the top gainers, Investment Holding Group gained 2.8%, while Mannai Corporation was up 2.5%.  Volume of shares traded on Sunday fell by 14.2% to 3.4mn from 4.0mn on Thursday. Further, as compared to the 30-day moving average of 6.4mn, volume for the day was 46.8% lower. Dlala Brokerage & Investment Holding Company and Vodafone Qatar were the most active stocks, contributing 14.0% and 12.2% to the total volume, respectively. Source: Qatar Stock Exchange (* as a % of traded value) News Qatar  Ezdan Holding Group (ERES) swaps QE-listed holdings to related entities – ERES swapped ~QR2.4bn in stocks to related entities on an off-market transaction. ERES reduced its holdings in QIBK (from 8% to 6%), QIIK (from 14% to 10%), MARK (from 5% to 0%), IHGS (from 21% to 16%) and QISI (from 10% to 7%). However, it upped its stake in MCGS from 10% to 12%. It is unclear as to what form of consideration was received by ERES for these shares. With significant near term debt obligations, a cash transaction should help alleviate a liquidity crunch. However, an asset swap (for example real estate assets for equities) could further impact ERES. Recently Moody’s withdrew its ratings for Ezdan Group because it had “insufficient or otherwise inadequate information to support the maintenance of the ratings.” We await further market disclosures that could help clarify the impact of these transactions. (QE, QNBFS Research)  QIMD signs MoU with glassglobal of Germany – Qatar Industrial Manufacturing Company (QIMD) announced that it signed a Memorandum of Understanding (MoU) with glassglobal, a German consulting firm specialized in providing technical and advisory services to the glass industry worldwide. The MoU was signed on September 7, on the sidelines of the Qatar-Germany Business and Investment Forum held in the German capital of Berlin from September 6 to 7. The agreement aims to establish a general framework for technical cooperation between the two companies to complete the evaluation of the feasibility of a project to produce glass containers in Qatar and to provide technical advice to the project through reviewing and evaluating the technical offers from the equipment suppliers and then participate in supervising the implementation of the project throughout commissioning and start-up. The project has already obtained preliminary approvals and necessary official licenses and currently work is being done to obtain the final approvals required for its implementation. The project is the result of cooperation between QIMD and the Gulf Glass Factory Co., which includes number of Qatari and foreign investors and businessmen. The project aims to produce glass bottles and various containers used in the packaging of food products (oils, pickles, jams, honey) and beverages (drinking water, soft drinks, juices, dairy). The design capacity of the project is 200 tons per day and is expected to cost about QR230mn. (QSE)  QFBQ issues a supplementary disclosure on signing one of its subsidiaries a contract to sell its full stake in Memorial – Qatar First Bank (QFBQ) disclosed regarding one of its subsidiaries signing a conditional sale agreement to sell all its shares in İSTANBUL MEMORİAL SAĞLIK YATIRIMLARI A.Ş (Memorial). Memorial is leading hospital operator in Turkey. The bank explained one of QFBQ’s fully owned subsidiaries known as QFIB Healthcare 2 SARL (the ‘Seller’), a company incorporated in Luxembourg, has completed all conditions precedent in the Share Purchase Agreement between it and TAYA SAĞLIK YATIRIMLARI A.Ş (the ‘Buyer’), a wholly owned subsidiary of the Aydin Family, who have majority ownership in Memorial. Following this, the Seller transferred all its shares (20% shareholding) in Memorial to the Buyer. The deal was consummated at a valuation of $30mn, which is very close to QFBQ’s book value. It should be noted that the purchase price will be paid on a deferred basis in US Dollars. It should also be noted that the size of the transaction reflected in this disclosure doesn’t represent more than 10% of the bank’s total assets. (QSE)  More than 1,000 ships called at Hamad Port in 8 months – Hamad Port has achieved yet another milestone as it received more than 1,000 vessels in eight months of the current year, showing that the Port continues its march towards success. The Port, which is one of the largest ports in the region, received 128 ships in August, Qterminals stated. It had received 936 ships during January to July period, taking the total count of ships called at the port to 1,064 so far this year. The Port witnessed increased traffic in various segments in August. The bulk cargo category saw the highest increase as it handled 31,392 tons of bulk cargo in August compared to 8,005 tons of such cargo in July, showing a sharp rise of 292%. (Peninsula Qatar)  Qatargas inks agreement with PetroChina to supply 3.4mn tons of LNG every year – Qatargas signed an agreement with PetroChina to supply the Asian nation with about 3.4mn tons of liquefied natural gas (LNG) a year. Under the 22-year agreement, Qatargas will supply LNG from the Qatargas 2 project, a joint venture between Qatar Petroleum, ExxonMobil and Total, to terminals across China, the state-controlled Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 51.13% 31.63% 18,995,839.35 Qatari Institutions 12.04% 40.66% (27,879,793.47) Qatari 63.17% 72.29% (8,883,954.12) GCC Individuals 0.42% 0.36% 58,468.06 GCC Institutions 0.73% 3.40% (2,601,679.08) GCC 1.15% 3.76% (2,543,211.02) Non-Qatari Individuals 8.98% 9.81% (805,684.27) Non-Qatari Institutions 26.70% 14.14% 12,232,849.41 Non-Qatari 35.68% 23.95% 11,427,165.14
  3. 3. Page 3 of 5 company stated. The first cargo will be delivered later this month. The agreement allows flexibility in delivering LNG to various receiving terminals, including the Dalian, Jiangsu, Tangshan and Shenzhen terminals. (Bloomberg)  MEC: 1,416 new companies registered in Qatar in August – As many as 1,416 new companies were registered in Qatar in August, the Ministry of Economy and Commerce (MEC) noted in a report. The number of “new major business records” reached 972, while the number of new sub-registries reached 444, MEC stated. Limited liability companies accounted for 61% of the major business registers, while single-owner limited liability companies came second with 28%, and individual institutions third with 10%. In August, construction companies topped the list of the highest number of registered activities, with 227 registrations followed by 91 registrations in “service activities and transactions clearance”, building material trading companies (49) and public goods trading (31). According to the report, the number of commercial licenses issued, modified or renewed during August was 5,341 and the number of licenses issued by the ministry totaled 823. Some 448 licenses were amended and 4070 licenses got renewed. (Gulf-Times.com)  Qatar Re ranked 27 th among top 50 global reinsurers – Qatar Re, a global multi-line reinsurer and a reinsurance subsidiary of Qatar Insurance Group, has been ranked ‘27th amongst top fifty global reinsurers’ by international credit rating agency, A.M. Best. The new assigned ranking affirms Qatar Re’s very strong capital base and well diversified portfolio, which is coupled with global business diversification, serving global reinsurance markets. Qatar Re’s new ranking was assigned on the basis of unaffiliated gross written premium (GWP) in 2017. Besides having a strong track record of operational performance and robust underwriting, the reinsurer also wrote non-life reinsurance business worth QR1.62bn in 2017. (Gulf- Times.com)  Sheikh Ahmed, South Carolina representative discuss ways to enhance Qatar-US trade ties – HE the Minister of Economy and Commerce Sheikh Ahmed bin Jassim bin Mohamed Al-Thani met Mark Sanford, representative of the First District of South Carolina, US, who is currently visiting the country. During the meeting, they discussed ways to enhance bilateral relations between Qatar and the US, especially South Carolina, in the fields of economy and trade, as well as highlighting the opportunities to increase bilateral trade. The two sides also reviewed the outcome of the economic tour of the US by a high- level Qatari delegation in April, which included the holding of an economic forum, exhibition and bilateral meetings between businessmen from both the countries in Charleston, South Carolina. They also discussed mechanisms to support joint investments and stimulate the private sector to establish innovative investment projects in key sectors that will serve the economic trends of Qatar and the US. Qatar and the US have closed economic and trade relationship, which reflected positively on the volume of trade between the two countries, which totaled QR21bn in 2017. (Gulf-Times.com)  Qatar Post signs agreement with paper recycling firm – Qatar Post signed a cooperation agreement with Elite Paper Recycling Company (Elite) to supply 120 containers in addition to the customs clearance service at Hamad Port. The agreement was signed at the Qatar Post General Office in the presence of Chairman and Managing Director, Faleh bin Mohamed Al- Naeimi and Elite’s Chairman, Abdullah bin Ibrahim Al-Suwaidi and other officials. Al-Naeimi said this agreement has come within the framework of Qatar Post’s directives to cooperate with national companies and meet their postal and logistics services, especially in the field of heavy cargo. This situation is very beneficial for companies, especially after the country prepared the appropriate ground for the logistics sector with investments of around $8bn. (Gulf-Times.com)  Qatari businesses invited to take part in China’s Canton Fair – Qatari businesses through Qatar Chamber (QC) received an invitation to participate in China Import and Export Fair (Canton Fair), which is being organized by Ministry of Commerce, People’s Government of Guangdong Province and the China Foreign Trade Center (CFTC) from October 15 to 19, 2018. Mohamed bin Ahmed bin Towar Al Kuwari, QC’s Vice Chairman met, a visiting Chinese trade delegation headed by Chu Bing Vice-President of CFTC. For his part, Chu Bing delivered a presentation about the fair which is the largest one in China in terms of number of exhibitors, displayed items and visitors. He noted that the fair includes sections for displaying electronics, household electrical appliances, building materials and hardware machinery and equipment, food and drink, fabrics and home textiles. The fair reflects the development of Chinese trade and aims at providing an ideal platform for business opportunities and promoting China as a leading world open market, he pointed out. (Peninsula Qatar) International  French Finance Minister says budget deficit will be below 3% of GDP in 2019 – French Finance Minister Bruno Le Maire said the government will keep its pledge to hold the budget deficit under 3% of gross domestic product (GDP) next year. “We will meet our target to be under 3% of GDP in 2019. The recovery of public accounts is non-negotiable,” Le Maire said on the sidelines of a meeting of European Finance Ministers in Vienna. Separately, Le Maire said he was confident that Italian leaders were aware of the importance of decisions to be taken as part of the next budget. (Peninsula Qatar)  Japan’s second-quarter GDP posts fastest growth since 2016 on stronger-than-expected capex – Japan’s economy grew in April- June at its fastest pace since 2016, as the capital spending rising more quickly than earlier estimated, although global trade tensions and a string of natural disasters pose risks to the outlook. Revised Cabinet office data showed the economy grew an annualized 3.0% in April-June, handily beating economists’ median estimate for 2.6% gain and posting the fastest growth since the start of 2016. The preliminary reading was for 1.9% expansion. The economy’s improved performance should be a relief for policymakers worried about fallout from a trade war between the US and China, which could derail global growth and in turn damage Japan’s export-reliant economy. A recent run of soft data, including exports and factory output, had fueled doubts in the strength of the economy. (Reuters)  China's August producer inflation eases, points to more pressure on economy – China’s producer inflation cooled in August amid softening domestic demand, pointing to a steady slowing in growth in the world’s second biggest economy as it
  4. 4. Page 4 of 5 confronts heightened risks to the outlook from a heated trade dispute with the US. Consumer inflation, on the other hand, picked up more than expected in August, though policy makers are likely to stay focused on growth rather than pricing pressures as US President, Donald Trump raises the stakes in the tariff war. The producer price index (PPI), a gauge of industrial profitability, rose 4.1% in August from a year earlier, compared with a 4.6% increase in July, according to the National Statistics Bureau. Analysts polled by Reuters had expected August PPI would rose to 4.0%. On a monthly basis, PPP picked up from 0.1% in July to 0.4% in August. Raw material prices rose 7.8% in August from a year earlier, compared with 9.0% increase in July. (Reuters) Regional  US, Saudi Arabia’s Energy Ministers to meet on September 10 – The US’ Energy Secretary, Rick Perry will meet Saudi Arabia’s Energy Minister, Khalid Al-Falih, on September 10 in Washington, a US government source said, as the Trump administration encourages energy-producing countries to pump oil at high rates two months before it renews sanctions on Iran’s exports of crude. (Reuters)  Dubai completes 47 projects to add 14,000 properties – Completed projects in Dubai this year added 14,000 different properties to the market, including 10,000 apartments, 364 residential complexes, 2,258 townhouses, and 1,575 villas, according to Dubai Land Department’s Director General, Sultan Butti Bin Mejren. He stated in Dubai Land Department’s latest report covering the period from the beginning of 2018 to August 31, that 47 projects were introduced into the market after they were completed based on their set timelines. One of the signs of the real estate market’s attractiveness is its continued ability to attract additional investors who have invested heavily, contributing to sustainable growth. (GulfBase.com)  P&O Marinas signs MoU with Dubai SME – Ports, Customs and Free Zone Corporation’s (PCFC) subsidiary, P&O Marinas signed a memorandum of understanding (MoU) with Dubai SME. The agency of the Department of Economic Development in Dubai, mandated to develop the small and medium enterprise (SME) sector, to boost mutual cooperation in introducing best services to their clients towards realizing the vision of Dubai Government in support of Dubai’s economy. P&O Marinas’ CEO and Mina Rashid’s Executive Director, Mohammed Abdul Aziz Al Mannaei and Dubai SME’s CEO, Abdul Baset Al Janahi signed the MoU which will see both parties provide facilitations and additional advantages to each other’s clients in order to promote economic activity and support Dubai’s efforts in attracting more business and investments. (GulfBase.com)  Shuaa Capital to acquire 87.22% stake in Amwal – Shuaa Capital stated it will increase its stake to 87.22% in Amwal International Investment Company (Amwal), after the latter’s shareholders agreed to sell their shares. Shuaa Capital, the Dubai-based investment bank, stated that shareholders representing 70.91% of Amwal’s shares have responded to Shuaa Capital’s offer and submitted their application to sell these shares. Together with Shuaa Capital’s existing 29.4mn shares in Amwal, the total stake will amount to 87.2%. (GulfBase.com)  ADNIC set to buy back 10% shares – Abu Dhabi National Insurance Company (ADNIC) stated it has won approval from the UAE's Securities & Commodities Authority for repurchasing 10% of its shares. The Abu Dhabi-listed insurer stated that the deadline of the share buyback ends on August 13, 2019, while the repurchased stocks are to be sold two years after the date of the last buying transaction. (GulfBase.com)  Abu Dhabi Islamic Bank sets eligibility date for AED1bn rights issue – Abu Dhabi Islamic Bank stated it has set September 12 as the eligibility date for its AED1bn rights issue, instead of September 13 due to the public holiday on that day. This makes the last day to purchase shares to be eligible for a rights subscription September 10. Under the capital raise plan, each shareholder will have the right to subscribe to 29 new shares for every 198 shares held at the end of trading on September 12. (GulfBase.com)  Gulf International Bank plays key role in $253mn Byrne Equipment Rental sale – IB Capital, the investment banking arm of Gulf International Bank, stated it had acted as the financial advisor to Al Tala’a International Transportation Company on the $253mn sale of Byrne Equipment Rental to Itqan Investments and Tamar VPower Energy Fund. (GulfBase.com)  Oman's producer price-based inflation rises – Oman's producer price index (PPI)-based inflation rose by 17.7% in 2Q2018, over the same period of last year, mainly driven by a rise in oil and gas prices by 20.6% and non-oil products prices by 5.5%, according to the National Centre for Statistics and Information. Among oil and gas products, refined products shot up by 39% while crude oil and natural gas price soared by 17.9%. Among non-oil products, the prices of the manufacturing group rose by 7.5% in 2Q2018 while there was 1% fall in the prices of mining, electricity and water group index. (GulfBase.com)  Al Baraka Banking Group expects to offer shares in 2019 to fund expansion plans – Al Baraka Banking Group will likely to offer shares in 2019 to fund its international expansion plans. The Bahrain-based bank plans to expand in China, Indonesia, East Africa and Morocco, according to its CEO, Adnan Yousuf. “Al Baraka Banking Group last year issued $400mn of tier one Sukuk which would cover some of the costs of its expansion. The remaining portion will come through a share offering, which we expect in 2019 or the end of 2019,” Yousuf said. (Reuters)  Batelco inks deal with Dilmunia Mall Development Company – Bahrain Telecommunications Company (Batelco), the leading digital solutions provider in Bahrain, stated it has signed a partnership deal with Dilmunia Mall Development Company for its unique family-centric retail and leisure destination, the Mall of Dilmunia. Under this agreement, Batelco will provide cutting-edge ICT solutions, including the most advanced network, digital solutions, security solutions, Wifi and mall management solutions to the upcoming mall, remarked Batelco Bahrain CEO Mohamed Bubashait. (GulfBase.com)
  5. 5. Contacts Saugata Sarkar, CFA, CAIA Shahan Keushgerian Zaid al-Nafoosi, CMT, CFTe Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6509 Tel: (+974) 4476 6535 saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa 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 5 of 5 Rebased Performance Daily Index Performance Source: Bloomberg Source: Bloomberg Source: Bloomberg Source: Bloomberg (*$ adjusted returns) 50.0 75.0 100.0 125.0 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 QSEIndex S&P Pan Arab S&P GCC 0.5% (0.6%) (1.4%) 0.3% 0.5% (0.0%) 0.6% (1.5%) (1.0%) (0.5%) 0.0% 0.5% 1.0% SaudiArabia Qatar Kuwait Bahrain Oman AbuDhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1,196.24 (0.3) (0.4) (8.2) MSCI World Index 2,137.60 (0.3) (1.7) 1.6 Silver/Ounce 14.18 0.1 (2.5) (16.3) DJ Industrial 25,916.54 (0.3) (0.2) 4.8 Crude Oil (Brent)/Barrel (FM Future) 76.83 0.4 (0.8) 14.9 S&P 500 2,871.68 (0.2) (1.0) 7.4 Crude Oil (WTI)/Barrel (FM Future) 67.75 (0.0) (2.9) 12.1 NASDAQ 100 7,902.54 (0.3) (2.6) 14.5 Natural Gas (Henry Hub)/MMBtu 2.88 (1.7) (2.7) (18.6) STOXX 600 373.77 (0.5) (2.5) (7.6) LPG Propane (Arab Gulf)/Ton 105.00 0.7 1.0 7.4 DAX 11,959.63 (0.5) (3.6) (11.0) LPG Butane (Arab Gulf)/Ton 112.50 (0.4) 1.9 6.5 FTSE 100 7,277.70 (0.6) (2.3) (9.5) Euro 1.16 (0.6) (0.4) (3.8) CAC 40 5,252.22 (0.4) (3.1) (4.9) Yen 110.99 0.2 (0.0) (1.5) Nikkei 22,307.06 (1.0) (2.4) (0.6) GBP 1.29 (0.1) (0.3) (4.4) MSCI EM 1,022.98 0.5 (3.1) (11.7) CHF 1.03 (0.4) (0.0) 0.5 SHANGHAI SE Composite 2,702.30 0.1 (1.1) (22.5) AUD 0.71 (1.3) (1.1) (9.0) HANG SENG 26,973.47 (0.0) (3.3) (10.3) USD Index 95.37 0.4 0.2 3.5 BSE SENSEX 38,389.82 0.3 (2.2) (0.0) RUB 69.92 1.0 3.5 21.3 Bovespa 76,416.01 0.0 (1.6) (20.2) BRL 0.25 (0.1) (0.1) (18.4) RTS 1,050.51 (0.4) (3.8) (9.0) 79.7 77.6 75.9

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