10,320 10,310 10,300 10,290 10,280 10,270 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

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1 QSE Intra-Day Movement 10,320 10,310 10,300 10,290 10,280 10,270 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined marginally to close at 10, Losses were led by the Telecoms and Insurance indices, falling 0.5% each. Top losers were Qatar General Insurance & Reinsurance Company and Ahli Bank, falling 3.5% and 3.4%, respectively. Among the top gainers, Islamic Holding Group gained 5.1%, while Widam Food Company was up 3.4%. GCC Commentary Saudi Arabia: The TASI Index rose 0.8% to close at 7, Gains were led by the Diversified Financials and Banks indices, rising 1.8% and 0.9%, respectively. Red Sea International Co. rose 8.1%, while Saudi Advanced Industries Co. was up 4.8%. Dubai: The DFM General Index gained marginally to close at 2, The Services index rose 4.9%, while the Consumer Staples and Discretionary index gained 2.2%. GFH Financial Group rose 9.2%, while Amanat Holdings was up 8.9%. Abu Dhabi: The ADX General index fell 0.2% to close at 4, The Banks index declined 0.5%, while the Telecommunication index fell 0.4%. International Holdings Company declined 5.2%, while Manazel Real Estate was down 2.4%. Kuwait: The Kuwait Main Market Index rose 0.2% to close at 4, The Insurance index gained 1.0%, while Real Estate index rose 0.7%. Warba Insurance Company gained 9.6%, while Sharjah Cement and Industrial Development Co. was up 9.5%. Oman: The MSM 30 Index fell 0.1% to close at 4, Losses were led by the Industrial and Financial indices, falling 0.8% and 0.1%, respectively. Celebrity National Fin. Serv. fell 40.0%, while Oman Qatar Insurance was down 4.8%. Bahrain: The BHB Index gained 0.8% to close at 1, The Investment index rose 1.4%, while the Commercial Bank index gained 0.9%. GFH Financial Group rose 6.4%, while Al Salam Bank - Bahrain was up 3.2%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Islamic Holding Group (40.1) Widam Food Company Alijarah Holding (16.4) Qatar National Cement Company (5.4) Zad Holding Company Market Indicators 30 Dec Dec 18 %Chg. Value Traded (QR mn) (40.8) Exch. Market Cap. (QR mn) 586, ,918.1 (0.2) Volume (mn) (37.3) Number of Transactions 5,004 6,503 (23.1) Companies Traded Market Breadth 22:21 32:11 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 18, (0.0) (0.0) All Share Index 3, (0.1) (0.1) Banks 3, (0.3) (0.3) Industrials 3, (0.1) (0.1) Transportation 2, Real Estate 2, (0.2) (0.2) Insurance 2, (0.5) (0.5) (15.5) 17.5 Telecoms (0.5) (0.5) (9.5) 40.3 Consumer 6, Al Rayan Islamic Index 3, GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% GFH Financial Group Dubai ,455.6 (38.0) Al Salam Bank-Bahrain Bahrain ,124.6 (14.0) Sembcorp Salalah Power. Oman (23.9) Samba Financial Group Saudi Arabia Bank Al Bilad Saudi Arabia GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Boubyan Petrochem. Co. Kuwait 0.98 (1.3) Boubyan Bank Kuwait 0.56 (1.2) Gulf Bank Kuwait 0.25 (1.2) 5, Phoenix Power Co. Oman 0.10 (1.0) 80.0 (27.5) Ooredoo Qatar (0.9) 13.0 (17.0) (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Losers Close* 1D% Vol. 000 YTD% Qatar General Ins. & Reins. Co (3.5) 44.7 (16.7) Ahli Bank (3.4) 6.0 (24.6) Salam International Inv. Ltd (1.4) 47.4 (37.3) Qatar Aluminium Manufacturing (1.2) 3, Mazaya Qatar Real Estate Dev (1.0) 86.7 (14.0) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Qatar Aluminium Manufacturing (1.2) 3, United Development Company , Aamal Company 8.83 (0.1) Qatar First Bank (37.2) Investment Holding Group 4.88 (0.6) (20.0) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% Qatar Aluminium Manufacturing (1.2) 45, United Development Company , Widam Food Company , QNB Group (0.5) 6, Aamal Company 8.83 (0.1) 3, (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 10, (0.0) (0.0) (0.8) , Dubai 2, (7.4) (26.7) , Abu Dhabi 4, (0.2) (0.2) , Saudi Arabia 7, , Kuwait 4, (0.1) (2.2) , Oman 4, (0.1) (0.1) (1.6) (14.9) , Bahrain 1, , , Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 5

2 Qatar Market Commentary The QSE Index declined marginally to close at 10, The Telecoms and Insurance indices led the losses. The index fell on the back of selling pressure from Qatari shareholders despite buying support from GCC and non-qatari shareholders. Qatar General Insurance & Reinsurance Company and Ahli Bank were the top losers, falling 3.5% and 3.4%, respectively. Among the top gainers, Islamic Holding Group gained 5.1%, while Widam Food Company was up 3.4%. Volume of shares traded on Sunday fell by 37.3% to 7.4mn from 11.8mn on Thursday. However, as compared to the 30-day moving average of 7.3mn, volume for the day was 1.3% higher. Qatar Aluminium Manufacturing Company and United Development Company were the most active stocks, contributing 45.2% and 16.7% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 48.55% 61.22% (16,516,371.85) Qatari Institutions 20.88% 18.78% 2,735, Qatari 69.43% 80.00% (13,781,228.24) GCC Individuals 0.97% 0.62% 452, GCC Institutions 1.98% 0.53% 1,892, GCC 2.95% 1.15% 2,345, Non-Qatari Individuals 12.91% 13.41% (648,312.33) Non-Qatari Institutions 14.71% 5.43% 12,084, Non-Qatari 27.62% 18.84% 11,436, Source: Qatar Stock Exchange (* as a % of traded value) Earnings Calendar Tickers Company Name Date of reporting 4Q2018 results No. of days remaining Status QNBK QNB Group 15-Jan Due ABQK Ahli Bank 16-Jan Due MARK Masraf Al Rayan 21-Jan Due QNCD Qatar National Cement Company 23-Jan Due Source: QSE News Qatar QFBQ announces $30mn sale deal Qatar First Bank (QFBQ) announced after the fulfillment of all the conditions precedent, it has transferred all its 100% shareholding in QF Ventures UAE to Yaghnam International, a company wholly owned by the Yaghnam family. QF Ventures UAE had been previously used as a platform for investments in the service industry in the region. The deal was completed at a valuation of $30mn to be paid over a period of three years. The size of the transaction reflected in this disclosure does not represent more than 10% of the bank s total assets. (QSE) NLCS board recommends increasing non-qatari ownership to 49% The board of Alijarah Holding (NLCS) has recommended increasing the foreign ownership limit of the company's capital to 49% instead of 25%. The recommendation will be submitted to the Extraordinary General Assembly for the approval. (QSE) ABQK s board meets to discuss the financial statements ended December 31, 2018 on January 16, 2019 Ahli Bank (ABQK) announced that its board of directors will meet on January 16, 2019 to discuss the bank s 2018 financial results and the profit distribution. (QSE) QNBK s board meets to discuss the financial statements ended December 31, 2018 on January 15, 2019 QNB Group (QNBK) announced that its board of directors will meet on January 15, 2019 to discuss the bank s 2018 financial results and the profit distribution. (QSE) MARK s board meets to discuss the financial statements for the year ended December 31, 2018 on January 21 Masraf Al-Rayan (MARK) announced that its board of directors will hold a meeting on January 21, 2019 to discuss and approve the financial statements for the financial year ending December 31, (QSE) EIU: Qatar s fiscal position strengthens on oil, gas revenues The risk of capital outflows induced by the regional blockade on Qatar has largely subsided with the recovery of foreign reserves and the return to a current-account surplus in 2018, according to the Economist Intelligence Unit (EIU). Moreover, reserves at Qatar Investment Authority (QIA, the sovereign wealth fund) are sufficient to maintain the currency peg to the Dollar for several years, meaning that devaluation remains a distant prospect, EIU stated in an overview. Qatar s fiscal position (which is now in a surplus) is also strengthening, because of an increase in oil & gas revenue. In terms of the sovereign risk rating, EIU stated it is supported by an increase in hydrocarbons export revenue in recent months and a commensurate increase in central bank reserves. Recently, S&P affirmed Qatar s sovereign credit ratings at AA-/A-1+. The strength of Qatar s macroeconomic resilience was the basis for the recent Stable outlook on the economy provided by the international ratings agency. The country s banking sector risk rating is supported by strong liquidity positions stemming from the rise in oil prices. (Gulf-Times.com) Hamad Port sees strong rise in cargo movement Hamad Port continues to add new chapters to its success story as it has registered a strong rise in cargo movement in November. The movement of break bulk cargo in the port increased by around 20% last month as it handled 90,955 tons of break bulk cargo in November compared to 76,228 tons of cargo in October. The port, which is one of the largest ports in the region, received 137 ships in November. The port also handled 107,631 Twenty-Foot Page 2 of 5

3 Equivalent Units (TEU) containers last month, Qterminals stated. Qterminals was set up by Qatar Navigation (Milaha) and Qatar Ports Management Company (Mwani Qatar) to manage the port. The port handled 7,432 vehicles in November compared to 6,730 vehicles in October, reflecting a rise of 10%. It also witnessed huge rise in cattle movement as it handled 2,178 heads of cattle last month against 1,500 cattle a month before, showing an increase of around 45%. The port is ending the year on positive note as it witnessed huge rise in vessel and cargo movement and achieved several milestones in (Peninsula Qatar) International Pacific trade pact takes off with tariffs cut in six nations A landmark 11-country trade deal, a revamped version of the Trans-Pacific Partnership (TPP), came into force on Sunday with New Zealand s trade minister hailing the opportunities it presented for exporters. The deal, which will slash tariffs across much of the Asia-Pacific region, does not include the US after Washington pulled out of the TPP negotiations in The pact came into effect on Sunday for Australia, New Zealand, Canada, Japan, Mexico and Singapore, with Vietnam to follow on January 14, 2019, Australia s Department of Foreign Affairs and Trade stated on its website. Brunei, Chile, Malaysia and Peru will begin 60 days after they complete their ratification process. Investment bank HSBC stated in a press release that 90% of tariffs on goods in the first six countries were removed on Sunday in the first round of cuts. Australia is looking forward to favorable conditions for its agricultural exports including wheat, prompting US competitors to warn they will need help to compete. The deal will reduce tariffs in economies that together amount to more than 13% of global GDP - a total of $10tn. If the US were included, it would have represented 40%. US President Donald Trump said in April that he would consider rejoining the trade agreement if the terms were more favorable to the US. (Reuters) China's services activity picks up in December Growth in China s services industry picked up in December after a twomonth slowdown, an official survey showed, offering some respite for the slowing economy though the outlook remains gloomy as domestic and external risks to growth rise. The official non-manufacturing Purchasing Managers Index (PMI) rose to 53.8 from 53.4 in November, above the 50-point mark that separates growth from contraction. The services sector accounts for more than half of China s economy, with rising wages giving Chinese consumers more spending power. However, consumer demand and confidence have been faltering recently in a sign of growing pressure on the economy. (Reuters) India will see strong economic growth in 2019 India will witness strong economic growth in the coming year, despite external vulnerabilities arising from rising oil prices, the US- China trade war and America s monetary tightening, the Confederation of Indian Industry body stated. Better demand conditions, settled GST implementation, capacity expansion from growing investments in infrastructure, continuing positive effects of reform policies and improved credit off-take especially in the services sector will sustain the robust GDP growth in the range of 7.5% in 2019, CII Director General, Chandrajit Banerjee said. (Peninsula Qatar) Regional Saudi Arabia sells SR1.285bn Sukuk in monthly issue Saudi Arabia s Finance Ministry has issued SR1.285bn of domestic Islamic bonds in a tap of a Sukuk issue that was originally made in October under its monthly issuance program, the ministry stated. The tap brought total issuance of the October Sukuk up to SR6.535bn: SR2.730bn of 5-year Sukuk, SR1.435bn of 7-year Sukuk and SR2.370bn of 10-year Sukuk. (Reuters) Adeptio and Kuwait Food raise $1.3bn for refinancing Adeptio AD Investments and its unit, Kuwait Food, raised a combined $1.3bn in loans for refinancing, according to data compiled by Bloomberg. Adeptio, a UAE-based investor group led by Emaar Properties Chairman Mohamed Alabbar, raised $673mn from senior secured funds maturing in May Kuwait Food, also known as Americana, the unit of Adeptio, raised $627mn from an Islamic facility maturing in December First Abu Dhabi Bank (FAB), HSBC Bank Middle East, Mashreqbank and Samba arranged the debt. (Bloomberg) Emaar talks with Egypt over new capital city project stall Talks between Egyptian officials and Dubai-based Emaar Properties to develop a 1,500 acre (607 hectares) plot in the new administrative capital have stalled, underscoring the country s struggle to involve top-tier foreign companies in the mega project. (Gulf-Times.com) Sharjah makes enhanced offer for Invest Bank The Government of Sharjah in the UAE has made an enhanced offer to invest in Invest Bank and the bank s shareholders will vote on the deal on January 8, 2019, the lender stated. Sharjah, one of seven Emirates in the UAE federation, had earlier offered to invest up to $517mn in Invest Bank, one of the smaller banks in the UAE. A shareholder vote had been scheduled for December 29, 2018, but the meeting is adjourned until January 8, 2019 to vote on the enhanced offer, the lender stated. It did not give details of what the enhanced offer entailed. (Gulf-Times.com) Dana Gas gets additional Egypt payments as it plans more exploration Dana Gas stated that the total payments from Egypt reached $199mn this year, helping the energy producer boost its balance sheet as it prepares for more exploration. The company received $44.3mn, the Sharjah based firm stated. It comprises $35mn from the government and $9.3mn from the sale of 157,350 barrels of El Wastani condensate. Dana Gas stated that the levels of its receivables in Egypt are now at its lowest since Payments this year are 21% higher than last year. CEO Patrick Allman-Ward said that the payment will enable Dana Gas to complete "final preparations to drill our first offshore deepwater exploration well in the block 6 North El Arish concession area early in 2019." (Bloomberg) Kuwait s 3Q2018 real GDP rises 1.8% YoY The Central Statistical Bureau in Kuwait published preliminary GDP at current and constant prices for 3Q2018, which showed that GDP at constant prices rose to KD9,809.5mn in 3Q2018 as compared to KD9,632.8mn in the same quarter a year ago, representing a rise of 1.8%. Oil and oil products sector rose to KD5,829.2mn as compared to KD5,743.1mn, representing a rise of 1.5% YoY. Non-oil sectors rose to KD3,980.3mn as compared Page 3 of 5

4 to KD3,889.7mn, representing a rise of 2.3% YoY. The economy grew 0.1% in 3Q2018 from the previous quarter. (Bloomberg) Page 4 of 5

5 Rebased Performance Daily Index Performance Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 QSE Index S&P Pan Arab S&P GCC 1.0% 0.5% 0.0% (0.5%) 0.8% Saudi Arabia (0.0%) Qatar 0.2% Kuwait 0.8% Bahrain (0.1%) Oman (0.2%) Abu Dhabi 0.0% Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (1.7) MSCI World Index 1, (11.1) Silver/Ounce (9.2) DJ Industrial 23, (0.3) 2.7 (6.7) Crude Oil (Brent)/Barrel (FM Future) (3.0) (21.9) S&P 500 2, (0.1) 2.9 (7.0) Crude Oil (WTI)/Barrel (FM Future) (0.6) (25.0) NASDAQ 100 6, (4.6) Natural Gas (Henry Hub)/MMBtu (11.7) (8.2) STOXX (17.8) LPG Propane (Arab Gulf)/Ton (1.6) 0.0 (35.0) DAX 10, (0.2) (22.2) LPG Butane (Arab Gulf)/Ton (0.4) 0.7 (35.6) FTSE 100 6, (17.8) Euro (4.7) CAC 40 4, (16.2) Yen (0.7) (0.9) (2.1) Nikkei 20, (0.1) 0.1 (10.4) GBP (6.0) MSCI EM (16.9) CHF (1.0) SHANGHAI SE Composite 2, (0.5) (28.7) AUD (9.8) HANG SENG 25, (1.0) (15.0) USD Index (0.1) (0.6) 4.6 BSE SENSEX 36, (3.2) RUB (0.1) Bovespa 87, (1.8) BRL 0.26 (0.2) 0.6 (14.7) RTS 1, (1.0) (7.6) (*$ adjusted returns) Contacts Saugata Sarkar, CFA, CAIA Shahan Keushgerian Zaid al-nafoosi, CMT, CFTe Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) Tel: (+974) Tel: (+974) QNB Financial Services Co. W.L.L. Contact Center: (+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