Al Maha Market EYE. Global markets & Commodities Watch GLOBAL NEWS WATCH. International Indices. Regional Indices

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1 3-May-11 Al Maha EYE Global markets & Commodities Watch GLOBAL NEWS WATCH International Indices Index Value % Change USA Dow Jones 12, % S&P 500 1, % NASDAQ 2, % EUROPE FTSE 100 6, % CAC 40 4, % DAX 30 7, % ASIA NIKKEI 10, % Hang Seng 23, % Strait Times 3, % Regional Indices Index Value % Change Muscat Stock 6, % Saudi Arabia 6, % Dubai 1, % Abu Dhabi 2, % Kuwait (Price Index) 6, % Bahrain 1, % Qatar 8, % Commodities Crude Oil ($/bbl) Close % Change Nymex Future % Brent % WTI % Metals Close % Change Gold $/OZ 1, % Silver $/OZ % Aluminum $/T 2, % Copper $/T 9, % Nickel $/T 26, % U.S. stocks retreat as commodity producers decline U.S. stocks retreated, pulling the Standard & Poor s 500 Index down from the highest level since June 2008, as commodity producers slumped. Energy shares had the biggest decline in the S&P 500 within 10 industries as crude oil prices fell. The S&P 500 slipped 0.2 percent to 1, in New York, erasing an earlier 0.5 percent advance. The Dow Jones Industrial Average lost 3.18 points, or less than 0.1 percent, to 12, after climbing as much as 65 points. Asian stocks fall most in three weeks; yen, dollar strengthen Asian stocks fell, sending a benchmark index to its biggest loss in three weeks, while the yen and dollar gained, after companies reported earnings that missed estimates. The MSCI Asia Pacific excluding Japan Index decreased 1 percent in Singapore. The Dollar Index added 0.2 percent, while the yen strengthened against all 16 major peers. The yen rose to per dollar from yesterday, when it climbed to 81, the highest since March 25. The dollar advanced 0.3 percent to $ per euro. Oil declines first day in four on manufacturing reports Oil declined 0.4 percent after a report showed that the Institute for Supply Management s manufacturing index declined last month and the Chinese Purchasing Managers Index dropped more than forecast. Oil for June delivery fell 41 cents to settle at $ a barrel on the New York Mercantile Exchange. Brent crude for June settlement slid 77 cents, or 0.6 percent, to $ a barrel on London s ICE Futures Europe Exchange. The ISM s manufacturing index declined to 60.4 last month from 61.2 in March. The April reading exceeded the 59.5 median forecast in a Bloomberg News survey. China s Purchasing Managers Index slipped to 52.9 from That was below the median forecast of 53.9 in a Bloomberg News survey of 20 economists. Gold steady; safe-haven status intact Spot gold held steady on Tuesday, as investors see little change in the metal's safe -haven appeal. Spot gold was little changed at $1, an ounce, after trading in a range between $1, and the record high of $1, on Monday. U.S. gold futures declined 0.8 percent to $1,545.10, up from an intraday low of $1, Forex Cross Currency Rates for Major currencies Currency $ Rs US $ Indian Rupees (Rs) Sterling ( ) Euro ( ) Japanese Yen ( ) Currency Rates against OMR Currency Close % Change OMR/ $ % OMR/ % OMR/ % OMR/ % OMR/ Rs % Debt market Interest Rates LIBOR EURIBOR 1M 3M 6M 1Y 0.213% 0.274% 0.433% 0.762% 1.237% 1.385% 1.675% 2.132% GCC Returns (YTD) 4% 2% 0% -2% -4% -6% -8% Muscat Stock -5.66% 0.98% -0.16% Saudi Arabia Dubai Abu Dhabi Kuwait (Price Index) -1.02% -6.31% Bahrain Qatar -1.83% -1.93% Sources: Bloomberg, Reuters, Zawya, MSM Data as on 9.00 AM, 3-May-11

2 Round up REGIONAL & OMAN NEWS WATCH Al Maha Equity Research - EYE MSM Indices Movement Index MSM 30 Banking & Investments Services &Insurance Industry MSM Sectorial Snapshot Index MSM 30 Banking & Investments Industry Services &Insurance 2-May-11 Last Close Prev. Close Change % Change 6, , % 7, , % 2, , % 6, , % Mcap (RO Dividend P/E P/BV '000) Yield 5,489, % 3,159, % 765, % 1,563, % Net Position Nationality Buy Sell Net Buy / Vol (%) Val (%) Vol (%) Val (%) Sell OMANIS % % % % % GCC 1.67 % 2.37 % 9.17 % % % ARABS 3.55 % 4.82 % 2.77 % 1.62 % 3.20% OTHERS % % 8.19 % % 21.19% MSM Movers Stock Close % Change Volume Oman Refreshment % 22, % Ominvest % 2,291, % National Gas % 60, % Construc. Mat. Ind % 17, % Transgulf Holding % 198, % MSM Shakers Stock Dhofar Beverages Al Batna Dev. & Inv. Ahli Bank A Saffa Foods Oman Hol. Int. MSM Volume Leaders Stock Ominvest Bank Muscat Oman Fisheries Nawras Renaissance Services MSM Value Leaders Stock Close % Change Ominvest Bank Muscat Nawras Renaissance Services Omantel Close % Change Volume % 41, % % 25, % % 89, % % 70, % % 41, % Close % Change Volume % 2,291, % % 1,207, % % 1,041, % % 853, % % 503, % Turnover % 1,179, % % 942, % % 637, % % 530, % % 351, % Breadth Advances 27 Declines 12 REGIONAL Saudi Electric Company selects GE for $500 million power plant supply deal Saudi Electricity Company (SEC) said it has selected General Electric Company (GE) to provide gas turbine technology and services for four of its power plant expansions. The total value of the agreements is expected to be more than $500 million. The four SEC power plant expansions will add 1,680 megawatts of power to the Saudi grid, more than half of SEC s planned annual increase of 3,000 megawatts, according to a company official. OMAN Al Hassan, Siemens extend co-operation agreement Al Hassan Power Industries LLC (AHPI), part of the Manufacturing SBU of Al Hassan Group, recently signed an OEM agreement with Siemens LLC Oman for manufacture of medium voltage switchgear in Oman. The latest agreement between the two parties covers two new Siemens MV switchboard models, 8BK88+ and NXAIR. 8BK88+ is a product designed for the utilities segment with the most compact design, while NXAIR is designed for the oil and gas sector as well as for more technically stringent projects in other industries. The new agreement will enable Al Hassan to source MV Switchgear from Siemens facilities worldwide. Dhofar Cattle Feed announces un-audited results for the first quarter of 2011 Dhofar Cattle Feed Company SAOG announced its initial un-audited results for the three months ended March The Group s revenues declined marginally from RO 5.8 million in the first quarter of last year to RO 5.7 million for the last quarter. The Group recorded a net loss of RO 262 thousand as compared to a net profit of RO 5.7 million for the same period of last year. NBO signs structured facility with Oman Gas National Bank of Oman (NBO) and Oman Gas Company (OGC) recently signed an RO 27.7 million structured finance transaction. The facility was structured to eliminate the interest rate risk for Oman Gas Company on its existing facility to a group of regional banks, denominated in US Dollars. NBO has been successful in funding projects over the last 12 to 15 months and was involved in funding 15 projects during these months. The total amount of these projects totaled $1.5 billion and the bank s share was around $1 billion. MSM Returns (YTD) 2.00% 0.00% -2.00% -4.00% -6.00% -8.00% % % -5.66% -6.25% 0.73% MSM Banking Industry Services Activity Statistics Traded volume Turnover R.O 9,899,594 5,034, % % Sources:Bloomberg,Reuters,Zawya,MSM

3 Al Maha Financial Services LLC Al Maha Technical Research MSM General Index 6, ,400 6,298 6,346 6, MSM General Index closed Monday's trading session at , gaining 0.6% with volumes of 9.9 million shares traded. shows signs of recovery with the Index managing to surpass the 25 DMA with yesterday's up move. A convincing break out at 6400 levels is likely show an up side of 100 points for the index. Bank Muscat (BKMB) Bank Muscat ended last trading session at 0.781with a gain of 0.9% and with relatively high volumes of 1.2 million shares traded on the counter. BKMB continues it's positive bias by holding on above 200DMA and with it's positive structure on daily charts, forming higher bottoms backed by the advancing trend and momentum indicators on both daily and weekly charts. The stock is likely to advance to levels if it succeeds in breaching the immediate resistance at Source:Tickerchart Al Maha Financial Services LLC

4 Al Maha Financial Services LLC ` Al Maha Technical Research Al Maha Petroleum Products ing (MHAS) Al Maha Petroleum closed the previous trading session at gaining 0.95 % with 7 thousand shares changing hands. MHAS demonstrates continuation of it's consolidation phase of the last couple of months. Movements of key indicators suggest a likely sideways move at the counter with a negative bias for the near term. The stock is likely to find support at United Finance (UFCI) United Finance ended Monday's session at 0.068, advancing 3.03% with volumes of 56 thousand shares traded. UFCI shows a recovery mode with it's gain of 6.25% in the last couple of sessions, surpassing the 25 DMA backed by the positive daily MACD. A convincing close above is likely to show trend reversal for the stock. Source:Tickerchart Al Maha Financial Services LLC

5 MSM Corporate Score Sheet Company Price Revenue Net Profit EPS PE Face Cap Result as on (Values in RO '000) 2-May-11 FY 2010 Y-o-Y % Y-o-Y % Net Worth BVPS PBV Value Capital FY 2010 FY10 (FY 10) Change. Change. Banks & Inv. Holding National Bank of Oman , , Dec-10 78,100-5% 27,200 29% , % Bank Muscat ,837 1,209, Dec ,195 7% 101,700 38% , % Ahli Bank , , Dec-10 19,364 42% 14,100 65% , Bank Sohar , , Dec-10 30,595 34% 10,220 27% , % Bank Dhofar , , Dec-10 57,251 16% 33,280 31% , % Oman International Bank , , Dec-10 29,839-6% 17,585-18% , % Ominvest , , Dec-10 54,122 7% 11,959 5% , % ONIC Holding ,342 51, Dec-10 2, % 13, % , Al Anwar Holding* ,000 13, Dec-10 7,251 3% (213) -106% NA 18, NA Oman and Emirates Hldg ,188 17, Dec % % , NA Oman Inv. & Finance* ,000 24, Dec-10 15,403-16% 2,442-3% , Financial Services ,500 6, Dec % (700) -374% NA 7, NA Gulf Inv. Services ,023 10, Dec-10 1,654-18% % , NA DIDIC , , Dec-10 21, % 18,461 89% , % Global Investment ,000 17, Dec-10 3,935-30% % , Aggregate ,019, % Industry Oman Cement , , Dec-10 62,523-13% 24,505 1% , % Raysut Cement , , Dec-10 64,978-27% 20,722-28% , % Oman Flour Mills** ,750 91, Dec-10 23, % 3,211-39% , Al Hassan Engineering ,521 36, Dec-10 60,246 12% 2,710 1% , % Al Anwar Ceramic ,469 55, Dec-10 17,398 10% 5,353 8% , % Oman Cables ,970 90, Dec ,900 29% 8,100 21% , % Jazeera Steel Product ,490 35, Dec-10 64,912 62% 1, % , % Voltamp Energy ,500 31, Dec-10 13,932 12% 2,442 11% , % National Aluminium ,357 14, Dec-10 20,981-28% 2,146-15% , % Aggregate 765, , , % Services Shell Oman ing , , Dec ,604 8% 13,991 7% , % Al Jazeera Services ,172 23, Dec-10 9,872 15% 1,949-44% , % Renaissance Services , , Dec ,429 2% 27,648 10% , % Omantel , , Dec ,600 1% 112,000 6% , % Oman Fisheries* ,500 15, Dec-10 14,185 51% 1,091-25% , Galfar Engineering , , Dec ,851 11% 5,906 57% , % Aggregate 1,563, , % MSM-30 5,489, ,604 35% 3,240, % Others Dhofar Insurance ,000 37, Dec-10 53,811-8% 3,037-14% , % Oman Oil ing ,450 87, Dec ,200 28% 6,900 29% , % Oman United Insurance ,000 13, Dec-10 20,994 4% 2,788-27% , % Port Services Corp ,504 48, Dec-10 19,139 3% 5,599 4% , % ACWA Power Barka ,000 41, Dec-10 40,210 0% 8,078 0% , % Taageer Finance ,667 17, Dec-10 8,945 2% 2,465 12% , % Dhofar Cattlefeed ,700 10, Dec-10 22,523 3% % , Majan Glass ,322 20, Dec-10 9,846-7% 2,751-11% , % Oman Chlorine ,883 21, Dec-10 5,878 7% 2,557 3% , % Construction Material ,500 5, Dec-10 3,377 11% % , Salalah Mills ,125 35, Dec-10 29,199 7% 3, % , % Nawras , , Dec ,900 10% 50,000 20% , % * FY March.** FY June Source:MSM Note : PBV based on the latest available Financial Statements Al Maha Equity Research - EYE Dividend Yield (FY 10)

6 Al Maha Equity Research - EYE PO Box 1065 PC 117, Al Wadi Al Kabir, Sultanate of Oman Contacts Telephone Research: Suresh Kumar suresh@almahafinancial.com Radhika Gadhia radhika@almahafinancial.com Khushboo Badlani khushboo@almahafinancial.com Institutional Sales: A. S. Kedarnath kedar@almahafinancial.com Steven Noronha steven@almahafinancial.com Brokerage: Abdullah Al Hinai abdullah@almahafinancial.com Mahmoud Al Hamsaidi mahmoud@almahafinancial.com Nasser Al Banna nasser@alamahfinancial.com Disclaimer The information contained in this report has been obtained from the sources believed to be reliable and in good faith, but which may not be verified independently. While utmost care has been taken in preparing the above report, Al Maha Financial Services LLC makes no guarantee, representation or warranty, whether expressed or implied, and accepts no responsibility or liability to its accuracy and completeness of the data, being provided. Opinion expressed is our current opinion as of the date appearing on this material only. We do not undertake to advise you as to any change of our views expressed in this document. The investments discussed in this report may not be suitable for all the investors. Investors must take their own decision based on their specific investment objectives and financial position, and using such independent advisors, as they believe necessary. Income from investments may fluctuate. The price or value of the investments, to which this report relates, either directly or indirectly, may fall against the interest of investors. This document is strictly for the use of recipients only. None of the material provided herein may be reproduced, rewritten, rehashed, published, resold or distributed in any manner whatsoever without the prior and explicit written permission of