9,260 9,240 9,220 9,200 9,180 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Transcription

1 QSE Intra-Day Movement 9,260 9,240 9,220 9,200 9,180 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined 0.4% to close at 9, Losses were led by the Consumer Goods & Services and Telecoms indices, falling 1.1% and 0.9%, respectively. Top losers were Qatar Cinema & Film Distribution Co. and Doha Bank, falling 7.4% and 2.9%, respectively. Among the top gainers, Dlala Brokerage & Investments Holding Co. rose 2.7%, while Doha Insurance Co. was up 2.1%. GCC Commentary Saudi Arabia: The TASI Index fell 0.2% to close at 7, Losses were led by the Health Care. and Commercial & Prof. indices, falling 2.4% and 1.8%, respectively. The Mediterranean and Gulf. fell 10.0%, while Middle East Health. was down 9.9%. Dubai: The DFM Index declined 0.9% to close at 3, The Real Estate & Construction index fell 1.4%, while the Financial & Investment Serv. index declined 1.1%. Al Salam Group Holding fell 8.5%, while Takaful Emarat was down 4.7%. Abu Dhabi: The ADX benchmark index fell 1.1% to close at 4, The Real Estate index declined 2.0%, while the Consumer Staples index fell 1.8%. Dana Gas Co. declined 3.1%, while Al Khazna Insurance Co. was down 2.9%. Kuwait: The KSE Index rose marginally to close at 6, The Insurance index gained 2.1%, while the Telecommunication index rose 1.0%. Gulf Franchising Holding Co. gained 13.5%, while National Consumer Holding Co. was up 12.5%. Oman: The MSM Index fell 0.4% to close at 4, Losses were led by the Financial and Services indices, falling 0.3% and 0.2%, respectively. Oman Telecommunication fell 3.1%, while Oman Fisheries was down 2.8%. Bahrain: The BHB Index fell 0.1% to close at 1, The Commercial Banks index declined 0.4%, while the Services index fell 0.1%. Khaleeji Commercial Bank declined 0.9%, while Ahli United Bank was down 0.7%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Dlala Brokerage & Inv. Holding (13.7) Doha Insurance Co (21.4) Al Khaleej Takaful Group (20.6) Qatar Electricity & Water Co (13.8) Gulf Warehousing Co (15.2) Market Indicators 13 Aug Aug 17 %Chg. Value Traded (QR mn) (12.3) Exch. Market Cap. (QR mn) 499, ,902.1 (0.3) Volume (mn) (12.4) Number of Transactions 1,762 1, Companies Traded Market Breadth 6:30 9:26 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 15, (0.4) (0.4) (8.6) 15.9 All Share Index 2, (0.4) (0.4) (8.4) 14.2 Banks 2, (0.3) (0.3) (2.4) 12.4 Industrials 2, (0.2) (0.2) (16.1) 18.5 Transportation 1, (22.4) 13.3 Real Estate 2, (0.3) (0.3) (8.8) 13.8 Insurance 4, (0.7) (0.7) (7.8) 18.5 Telecoms 1, (0.9) (0.9) (6.6) 21.7 Consumer 5, (1.1) (1.1) (7.6) 13.0 Al Rayan Islamic Index 3, (0.6) (0.6) (5.4) 17.6 GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Abu Dhabi Nat. Energy Abu Dhabi , Solidarity Saudi Takaful Saudi Arabia , Com. Real Estate Co. Kuwait , Al Tayyar Travel Group Saudi Arabia ,981.2 (6.4) Mobile Telecom. Co. Kuwait , GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Med. & Gulf Insurance Saudi Arabia (10.0) (49.2) Arabian Cement Saudi Arabia (3.6) (27.9) Arriyadh Dev. Co. Saudi Arabia (3.4) (15.6) Dana Gas Co. Abu Dhabi 0.62 (3.1) 3, Oman Telecom. Oman 1.09 (3.1) (28.4) ( # in Local Currency) ( ## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity) QSE Top Losers Close* 1D% Vol. 000 YTD% Qatar Cinema & Film Distribution (7.4) 0.3 (8.9) Doha Bank (2.9) (9.2) Qatar Industrial Manufacturing (2.3) 15.4 (4.5) Al Meera Consumer Goods Co (1.8) 35.6 (14.4) Qatar Fuel (1.6) 39.0 (20.2) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Vodafone Qatar 8.85 (1.1) 1,956.2 (5.5) Dlala Brokerage & Inv. Holding (13.7) Doha Bank (2.9) (9.2) Mazaya Qatar Real Estate Dev (0.6) (21.2) United Development Co (1.1) (19.8) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% Doha Bank (2.9) 18,174.9 (9.2) Vodafone Qatar 8.85 (1.1) 17,334.5 (5.5) Dlala Brokerage & Inv. Holding ,452.7 (13.7) QNB Group ,198.4 (7.8) Widam Food Co (0.4) 6,853.4 (1.2) (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 9, (0.4) (0.4) (2.1) (11.8) , Dubai 3, (0.9) (0.9) (0.5) , Abu Dhabi 4, (1.1) (1.1) (1.4) (1.0) , Saudi Arabia 7, (0.2) (0.2) 0.8 (0.9) , Kuwait 6, (0.1) , Oman 4, (0.4) (0.4) (1.1) (14.1) , Bahrain 1, (0.1) (0.1) (0.4) , , Qatar Stock Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 5

2 Qatar Market Commentary The QSE Index declined 0.4% to close at 9, The Consumer Goods & Services and Telecoms indices led the losses. The index fell on the back of selling pressure from GCC shareholders and non-qatari shareholders despite buying support from Qatari shareholders. Qatar Cinema & Film Distribution Co. and Doha Bank were the top losers, falling 7.4% and 2.9%, respectively. Among the top gainers, Dlala Brokerage & Investments Holding Co. rose 2.7%, while Doha Insurance Co. was up 2.1%. Volume of shares traded on Sunday fell by 12.4% to 5.7mn from 6.5mn on Thursday. Further, as compared to the 30-day moving average of 8.5mn, volume for the day was 32.5% lower. Vodafone Qatar and Dlala Brokerage & Investments Holding Co. were the most active stocks, contributing 34.2% and 11.7% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 68.00% 55.90% 17,052, Qatari Institutions 18.10% 17.10% 1,407, Qatari 86.10% 73.00% 18,459, GCC Individuals 0.68% 1.11% (597,343.44) GCC Institutions 0.11% 6.59% (9,126,964.93) GCC 0.79% 7.70% (9,724,308.37) Non-Qatari Individuals 8.76% 9.01% (351,732.15) Non-Qatari Institutions 4.35% 10.29% (8,383,689.47) Non-Qatari 13.11% 19.30% (8,735,421.62) Source: Qatar Stock Exchange (* as a % of traded value) Earnings Releases and Earnings Calendar Earnings Releases Company Market Currency Revenue (mn) 2Q2017 Operating Profit (mn) 2Q2017 Net Profit (mn) 2Q2017 Astra Industrial Group Saudi Arabia SR % 7.0 N/A The Mediterranean and Gulf Insurance and Reinsurance Co. Saudi Arabia SR % % Saudi Industrial Services Co. Saudi Arabia SR % % Orient UNB Takaful Dubai AED 1.2 Gulf Navigation Holding Dubai AED % % % Al Ramz Corporation Inv. and Dev. Dubai AED % National Cement Company Dubai AED % % Emaar Malls Abu Dhabi AED % % % The National Investor Company* Abu Dhabi AED % 7.5 N/A AXA Green Crescent Insurance Co. Abu Dhabi AED % N/A National Takaful Company Abu Dhabi AED 2.7 N/A Union Insurance Company Abu Dhabi AED % 5.8 N/A Fujairah Building Industries Abu Dhabi AED % % Abu Dhabi National Takaful Co. Abu Dhabi AED % Fujairah Cement Industries Abu Dhabi AED % % International Financial Advisors Kuwait KD % -0.2 N/A Banader Hotels Company Bahrain BHD % -0.8 N/A Bahrain Duty Free Complex Bahrain BHD % % % Bahrain Cinema Company Bahrain BHD % % % United Paper Industries Bahrain BHD % % Delmon Poultry Company Bahrain BHD % -0.2 N/A -0.1 N/A Bahrain Flour Mills Company Bahrain BHD % % % United Gulf Investment Corporation # Bahrain BHD % N/A Ithmaar Holding Bahrain USD % -9.8 N/A Bahrain Ship Repairing & Engineering Bahrain BHD % % Source: Company data, DFM, ADX, MSM, TASI, BHB. (*for the period ended 1H2017; # Values in 000) Earnings Calendar Tickers Company Name Date of reporting 2Q2017 results No. of days remaining Status ZHCD Zad Holding Company 14-Aug-17 0 Due Source: QSE Page 2 of 5

3 News Qatar QFC recognized as 'Best Private Sector Developer' by IFM The Qatar Financial Centre (QFC) has been recognized by the International Finance Magazine (IFM) as Best Private Sector Developer for its efforts to diversify Qatar s economy. The QFC Authority manages and maintains the QFC legal and tax environment, and licenses firms to conduct business in or from the QFC. The authority also develops relationships with the global financial community and other key institutions, both within and outside Qatar, helping to develop the country s private sector. QFC Authority s CEO, Yousuf Mohamed al-jaida said, Since our establishment, we have worked to develop and diversify Qatar s private sector in line with the objectives set out in the Qatar National Vision (Gulf-Times.com) Qatar and Pakistan launch new direct ship route Mwani Qatar announced the launch of a new route between Hamad Port and the Port of Karachi in Pakistan. Hamad Port welcomed the container vessel Libra, marking the first call of the weekly direct service. The new service is under PGS (Pakistan Gulf service) provided by Wan Hai line in partnership with Simatech Shipping. (Peninsula Qatar) ASEAN nations eye Qatar business opportunities The Association of South East Asian Nations (ASEAN) is ready to respond to the short-term need for various imports to Qatar, as well as offer long-term opportunities for joint venture or investments in many sectors, according to ASEAN Committee in Doha (ACD) Chairman and Thailand Ambassador, Soonthorn Chaiyindeepum. Chaiyindeepum said, This is something that they can look at markets in Southeast Asia and not only trade but also investment. He added, ASEAN is becoming close to the FTA (free trade agreement) with Arab countries so this is something they should consider an advantage not only just receiving and importing goods but also a long term investment. Chaiyindeepum cited ASEAN as a major producer and exporter of many products, including food and construction materials, which are in big demand in the Qatar market. (Gulf- Times.com) Pakistani industrialists seek new trade ties A delegation of Pakistani businessmen and industrialists is visiting Qatar to explore new grounds for building new trade partnerships while some companies are keen to invest in Qatar s pharmaceutical sector. The delegation, led by Zubair F. Tufail, President of The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), had meetings with officials of Hassad Food and Qatar Investment Authority, and are set to visit Qatar Chamber. Tufail said, There are two prime objectives of our visit; to increase Pakistani exports to Qatar and encourage Qatari investments in Pakistan. He said that the meetings of the delegation with Hassad Food and Qatar Investment Authority were very productive that will open new avenues of long-term trade relations between the two countries. (Peninsula Qatar) Qatar Cool helps conserve natural resources Qatar District Cooling Company (Qatar Cool) has been working diligently with authorities over the past two years, in line with the National Conservation Plan, to convert from potable water in the operations of the cooling plants in West Bay, to Treated Sewage Effluent (TSE). (Peninsula Qatar) Deadline set for companies to assess damages from blockade Qatar Chamber has set a deadline for the submission of an online questionnaire that aims to assess the damages caused by the economic blockade imposed on Qatar by Saudi Arabia and its allies. In a statement, the chamber said all companies affected by the blockade must submit the questionnaire by August 17. The chamber also noted that it is assessing losses suffered by Qatari companies since June 5, before submitting its findings to the Compensation Claims Committee (CCC). Director of Committees and Business Council, Saif al-kuwari said Qatar Chamber posted the questionnaire on to gather accurate information on the volume of damages for all activities of the companies. He called on companies to download all documents that support the validity of the data contained in the questionnaire. Incomplete documents will not be considered, he stressed. (Gulf- Times.com) MRDS' bottom line rises 67.9% QoQ in 2Q2017 Mazaya Qatar Real Estate Development's (MRDS) net profit rose 67.9% QoQ to QR8.43mn in 2Q2017. However, on basis, net profit fell 75.2%. EPS amounted to QR0.116 in 1H2017 as compared to QR0.524 in 1H2016. (QSE) QGMD reports net loss of QR2.11mn in 2Q2017 Qatari German Company for Medical Devices (QGMD) reported net loss of QR2.11mn in 2Q2017 as compared to QR2.21mn in 1Q2017 and QR1.97mn in 2Q2016. Loss per share amounted to QR0.37 in 1H2017 as compared to QR0.35 in 1H2016. (QSE) International Japan s second quarter GDP rises annualized 4.0% on consumption, capital expenditure Japan's economy grew in the second quarter at the fastest pace in more than two years as consumer spending and capital expenditure both rose at the fastest in more than three years, highlighting stronger domestic demand. Gross domestic product expanded an annualized 4.0% in April-June, government data showed, more than the median estimate for 2.5% annualized growth and the biggest increase since January-March Compared to the previous quarter, the economy expanded 1.0%, versus the median estimate of 0.6% growth. Annualized GDP for previous quarter was revised to a 1.5% increase, while quarterly real (inflation adjusted) GDP was revised up to 0.4% growth from a 0.3% increase. Economic growth is expected to continue in the coming quarters, offering the Bank of Japan (BoJ) the hope that a tight labor market is finally starting to boost consumer spending, which in turn makes it easier to generate sustained inflation. (Reuters) China s July factory output, retail sales, investment miss forecasts China's factory output slowed more than expected in July while investment and retail sales also disappointed, reinforcing views that the world's second-largest economy is starting to lose some steam as lending costs rise and the property market cools. Factory output rose 6.4% in July, the slowest pace since January this year, statistics bureau data showed. Analysts polled by Reuters had predicted factory output would grow 7.2% in July, down from 7.6% in the previous month. Fixed-asset investment grew 8.3% in the first seven months of the year, cooling slightly from 8.6% in 1H2017. Analysts had expected the growth rate would remain steady. Page 3 of 5

4 Despite the softer-than-expected reading, China's manufacturing activity still appeared to be supported by a yearlong construction boom. (Reuters) India's July retail inflation seen picking up for first time in four months India's consumer inflation is expected to have picked up in July after easing for three straight months, with food prices back on the rise, but is expected to remain well below the central bank's target. The consumer price index, the main policy target of the Reserve Bank of India (RBI), likely rose 1.87% in July, according to a Reuters poll of economists, compared with an increase of 1.54% in June. The wholesale price index likely rose 1.3% in July, after four months of easing. In June, WPI rose 0.9%. Bountiful monsoon rains this year are expected to lead to another bumper harvest, further dampening food prices, which contribute near 50% of the consumer price index. Retail food prices had contracted for two months through June from a year earlier. (Reuters) Regional QNB Group: Investment spending set to drive Kuwait s growth Kuwait s non-hydrocarbon growth is expected to accelerate to an average of 4.1% over as the authorities implement an investment program that aims to upgrade refineries and infrastructure, a report by QNB Group stated. The report, Kuwait Economic Insight 2017, examines recent developments and the outlook for the Kuwaiti economy. According to the report, OPEC production cuts, which we assume will last until the end of 2018, will depress non-hydrocarbon growth in However, oil output will likely be quickly ramped up in 2019 to pre-cut levels, providing a boost to growth, it added. Oil prices are forecasted to recover as the market shifts from excess supply to excess demand in 2017, but prices will be capped by US shale costs, averaging $55 per barrel in 2017, $58 per barrel in 2018 and $60 per barrel in Inflation is projected to decline modestly to 2.9% in 2017 on falling rents, but then spike in 2018 with the expected introduction of value added tax (VAT). Thereafter, prices should ease in 2019 as the base year effect of the VAT dissipates and the rest of the basket is expected to be broadly stable. The government s budget balance is expected to return back to a surplus of 2.2% of GDP in 2017 due to a recovery in hydrocarbon revenue but then average 1.2% in as the government continues its investment spending program. (Gulf-Times.com) IIF: Saudi Arabia's economy likely to dip this year Saudi Arabia s economy is expected to contract slightly in 2017 before rebounding next year as the oil crash that began three years ago and heralded a prolonged period of low hydrocarbon prices impacts the region s biggest economy, the Institute of International Finance (IIF) said. Saudi Arabia s economy is expected to contract 0.4% in 2017 before advancing 2% in The unemployment rate for Saudi Arabian nationals has increased to 12.3% and is likely to stay high for several years in the absence of a strong recovery in non-oil growth, according to the IIF. IIF added that the weakened economic growth was pushing the Kingdom s unemployment higher, adding that reforms were needed to create enough jobs for entrants into the job market. (GulfBase.com) Saudi Arabia s 2Q2017 budget deficit shrinks from a year ago; revenue up 6% Saudi Arabia's state budget deficit shrank by a fifth from a year earlier in 2Q2017 as revenues rose moderately and spending fell marginally, according to the finance ministry. Revenues increased 6% from a year ago to SR163.9bn; oil revenues jumped 28% to SR101.0bn because of higher international oil prices. Spending dropped 1.3% to SR210.4bn in 2Q2017, leaving a deficit of SR46.5bn compared to about SR58.4bn a year earlier. (Reuters) CITC suspends services at STC, Mobily & Zain offices The Communications and Information Technology Commission (CITC) temporarily suspended the services of the flagship offices in Riyadh of the Saudi Telecommunication Co. (STC), Mobily and Zain. Violations relating to implementation of the commission s decision on protecting users have been cited as the reason for the temporary suspension. (Zawya) Dubai says 88 property projects launched in 1H2017 The Dubai Land Department (DLD) said that a total of 88 property projects were launched during 1H2017. DLD also said that 68 real estate projects were registered with the government, amounting to an investment value worth AED21bn. Dubai is currently witnessing increasing interest from international investors, which has reinforced confidence in our real estate sector and its future prospects, Sultan Butti bin Mejren, the Director-General of DLD, said. (GulfBase.com) Shuaa Capital seeks to raise about AED100mn from asset sales in 2H2017 Shuaa Capital s General Manager, Fawad Tariq Khan said that the company is seeking to raise more than AED100mn from sale of non-core assets by end of The company would also announce new dividend policy soon. Shuaa Capital aims to increase AUM to AED5bn by 2017 end vs. AED3.3bn currently. (Bloomberg) Kuwait to finish cleaning up oil spill this week Kuwait will finish cleaning up a crude oil spill in the country's southern waters in the Gulf this week, a Kuwaiti newspaper report said, quoting the country's Oil Minister, Essam al-marzouq. Marzouq said that no more patches of oil have been found and that Kuwait was working on clearing up those near the shore. (Reuters) Oman Wanfang plans 25 new projects in Duqm Oman Wanfang, which is the master developer of China Oman Industrial Park in Duqm, plans to develop 25 new projects, which will take the total number of projects within the industrial park to 35. The proposed 25 projects are in the final stage of studies or in the design stage, said Oman Wanfang s CEO, Ali Shah. (GulfBase.com) UGB s net profit rises to $1.4mn in 2Q2017 United Gulf Bank (UGB) recorded net profit of $1.4mn in 2Q2017 as compared to net profit of $1.2mn in 2Q2016. Total income came in at $38.2mn in 2Q2017 as compared to $39.0mn in 2Q2016. Total assets stood at $3.12bn at the end of June 30, 2017 as compared to $2.98bn at the end of June 30, Loans and receivables stood at $996.4mn, while deposits from customers stood at $900.0mn at the end of June 30, EPS came in at $ in 2Q2017, as compared to $ in 2Q2016. (Bahrain Bourse) Page 4 of 5

5 Rebased Performance Daily Index Performance Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 QSE Index S&P Pan Arab S&P GCC 0.4% 0.0% (0.8%) (1.2%) (0.2%) Saudi Arabia Qatar 0.0% Kuwait (0.1%) Bahrain Oman (1.1%) Abu Dhabi (0.9%) Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, MSCI World Index 1, (0.1) (1.5) 10.7 Silver/Ounce (0.0) DJ Industrial 21, (1.1) 10.6 Crude Oil (Brent)/Barrel (FM Future) (0.6) (8.3) S&P 500 2, (1.4) 9.0 Crude Oil (WTI)/Barrel (FM Future) (1.5) (9.1) NASDAQ 100 6, (1.5) 16.2 Natural Gas (Henry Hub)/MMBtu (20.8) STOXX (0.5) (2.2) 15.4 LPG Propane (Arab Gulf)/Ton DAX 12, (1.7) 17.3 LPG Butane (Arab Gulf)/Ton (28.4) FTSE 100 7, (0.8) (2.8) 7.9 Euro CAC 40 5, (0.5) (2.2) 16.7 Yen (0.0) (1.4) (6.6) Nikkei 19, GBP (0.2) 5.5 MSCI EM 1, (1.3) (2.3) 20.9 CHF SHANGHAI SE Composite 3, (1.7) (0.8) 7.7 AUD (0.4) 9.5 HANG SENG 26, (2.1) (2.5) 21.2 USD Index (0.4) (0.5) (8.9) BSE SENSEX 31, (0.9) (3.9) 24.4 RUB (0.5) (0.2) (2.8) Bovespa 67, (0.6) 15.0 BRL 0.31 (0.6) (1.9) 1.9 RTS 1, (0.7) (0.4) (11.3) (*$ adjusted returns) Contacts Saugata Sarkar, CFA Shahan Keushgerian Zaid al-nafoosi, CMT, CFTe Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) Tel: (+974) Tel: (+974) Mohamed Abo Daff QNB Financial Services Co. W.L.L. Senior Research Analyst Contact Center: (+974) Tel: (+974) PO Box 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