9,900 9,800 9,700 9,600 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Transcription

1 QSE Intra-Day Movement 9,900 9,800 9,700 9,600 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined 2.5% to close at 9, Losses were led by the Banks & Financial Services and Real Estate indices, falling 3.6% and 2.8%, respectively. Top losers were Doha Insurance Group and QNB Group, falling 8.1% and 4.7%, respectively. Among the top gainers, Islamic Holding Group gained 1.2%, while Dlala Brokerage & Investment Holding Company was up 0.9%. GCC Commentary Saudi Arabia: The TASI Index fell 1.4% to close at 8, Losses were led by the Media and Health Care Equip. indices, falling 3.3% and 2.6%, respectively. Middle East Health. declined 10.0%, while Saudi Paper Manufacturing Co. was down 7.3%. Dubai: The DFM General Index declined 1.0% to close at 2, The Investment & Fin. Services index fell 1.9%, while the Transportation index declined 1.8%. Drake & Scull International fell 5.6%, while DAMAC Properties Dubai Co. was down 3.1%. Abu Dhabi: The ADX General Index fell 0.6% to close at 4, The Investment & Financial Services index declined 2.0%, while the Energy index fell 1.8%. Finance House declined 9.0%, while Wahat Al Zaweya was down 8.3%. Kuwait: The Kuwait Main market Index declined 0.2% to close at 4, The Technology index fell 9.6%, while the Oil & Gas index declined 3.0%. Automated Systems Company fell 9.6%, while The Energy House Holding Co. was down 9.3%. Oman: The MSM 30 Index fell 0.6% to close at 4, Losses were led by the Industrial and Financial indices, falling 0.5% and 0.4%, respectively. Oman and Emirates Inv. Holding fell 3.6%, while Al Sharqia Inv. Holding was down 3.0%. Bahrain: The BHB Index fell 0.1% to close at 1, The Industrial index declined 0.8%, while the Commercial Banks index fell 0.1%. Al Salam Bank - Bahrain declined 1.0%, while Seef Properties was down 0.9%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Islamic Holding Group (24.1) Dlala Brokerage & Inv. Holding Co Al Khaleej Takaful Insurance Co (20.2) Qatar Industrial Manufacturing Co (8.4) Market Indicators 12 Aug Aug 18 %Chg. Value Traded (QR mn) (20.9) Exch. Market Cap. (QR mn) 531, ,045.9 (2.9) Volume (mn) (36.4) Number of Transactions 2,340 3,001 (22.0) Companies Traded Market Breadth 4:37 7:27 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 16, (2.5) (2.5) All Share Index 2, (2.7) (2.7) Banks 3, (3.6) (3.6) Industrials 3, (2.2) (2.2) Transportation 2, (0.7) (0.7) Real Estate 1, (2.8) (2.8) (2.3) 15.9 Insurance 3, (2.8) (2.8) (11.1) 28.9 Telecoms 1, (0.8) (0.8) (7.5) 39.9 Consumer 6, (1.3) (1.3) Al Rayan Islamic Index 3, (1.8) (1.8) GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Comm. Bank of Kuwait Kuwait Bahrain Telecom. Co. Bahrain Saudi Kayan Petrochem. Saudi Arabia , Sahara Petrochemical Co. Saudi Arabia , GFH Financial Group Dubai ,867.5 (6.0) GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Middle East Health. Co. Saudi Arabia (10.0) 3,909.3 (18.8) Dallah Healthcare Co. Saudi Arabia (5.3) (34.2) QNB Group Qatar (4.7) Jabal Omar Dev. Co. Saudi Arabia (4.6) 1,156.8 (36.3) The Commercial Bank Qatar (4.1) (# 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% Doha Insurance Group (8.1) 0.1 (12.1) QNB Group (4.7) The Commercial Bank (4.1) Zad Holding Company (3.8) Qatar Insurance Company (3.6) 58.5 (20.3) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Qatar Gas Transport Company Ltd (1.0) The Commercial Bank (4.1) Ezdan Holding Group (3.5) (12.2) Qatar First Bank 5.14 (0.8) (21.3) Mesaieed Petrochemical Holding (1.6) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group (4.7) 36, The Commercial Bank (4.1) 18, Qatar Gas Transport Co. Ltd (1.0) 13, Industries Qatar (2.8) 11, Qatar Navigation (0.3) 8, (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 9, (2.5) (2.5) (1.9) , Dubai 2, (1.0) (1.0) (2.2) (14.3) , Abu Dhabi 4, (0.6) (0.6) (0.3) , Saudi Arabia 8, (1.4) (1.4) (2.8) , Kuwait 4, (0.2) (0.2) , Oman 4, (0.6) (0.6) 1.6 (13.6) , Bahrain 1, (0.1) (0.1) (0.7) , , 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 2.5% to close at 9, 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. Doha Insurance Group and QNB Group were the top losers, falling 8.1% and 4.7%, respectively. Among the top gainers, Islamic Holding Group gained 1.2%, while Dlala Brokerage & Investment Holding Company was up 0.9%. Volume of shares traded on Sunday fell by 36.4% to 4.3mn from 6.7mn on Thursday. Further, as compared to the 30-day moving average of 7.3mn, volume for the day was 40.8% lower. Qatar Gas Transport Company Limited and The Commercial Bank were the most active stocks, contributing 18.6% and 10.4% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 39.15% 29.08% 13,686, Qatari Institutions 5.83% 21.21% (20,928,499.29) Qatari 44.98% 50.29% (7,242,282.61) GCC Individuals 1.36% 0.68% 922, GCC Institutions 2.79% 14.48% (15,907,926.09) GCC 4.15% 15.16% (14,985,772.67) Non-Qatari Individuals 10.85% 13.22% (3,228,546.38) Non-Qatari Institutions 40.04% 21.32% 25,456, Non-Qatari 50.89% 34.54% 22,228, Source: Qatar Stock Exchange (* as a % of traded value) Earnings Releases and Earnings Calendar Earnings Releases Company Market Currency Revenue (mn) 2Q2018 Operating Profit (mn) 2Q2018 Net Profit (mn) 2Q2018 Alujain Corp. Saudi Arabia SR % % Dubai Islamic Insurance and Reinsurance Co. Dubai AED % % Dubai National Insurance & Reinsurance Dubai AED % % United Foods Company Dubai AED % % Air Arabia Dubai AED % % International Holdings Company Abu Dhabi AED % % % Al Dhafra Insurance Co. Abu Dhabi AED % % Al Buhaira National Insurance Company Abu Dhabi AED % % Fujairah Cement Industries Abu Dhabi AED % % National Takaful Company Abu Dhabi AED % % Abu Dhabi National Takaful Co. Abu Dhabi AED % Sharjah Insurance Company Abu Dhabi AED % % Bahrain & Kuwait Insurance Company Bahrain BHD % % United Gulf Investment Corporation Bahrain BHD % -0.5 N/A Source: Company data, DFM, ADX, MSM, TASI, BHB. Earnings Calendar Tickers Company Name Date of reporting 2Q2018 results No. of days remaining Status MRDS Mazaya Qatar Real Estate Development 13-Aug-18 0 Due ZHCD Zad Holding Company 14-Aug-18 1 Due Source: QSE Page 2 of 5

3 News Qatar Qatar s non-oil exports hit QR11.5bn in 1H2018 Despite the ongoing blockade against Qatar imposed by the Arab quartet, the combined value of country s non-oil exports in 1H2018 reached QR11.5bn, registering a sharp increase of 33.7% compared to QR8.6bn witnessed during 1H2017. The total value of non-oil exports for the month of June reached QR1.65bn recording a remarkable increase of 108% compared to QR794mn in June 2017, according to a report released by Qatar Chamber on the foreign trade of the private sector. Qatar Chamber s Director General, Saleh Bin Hamad Al Sharqi said, After one year of the unjust siege imposed on Qatar, the monthly data and statistics of our exports, which indicates the continuous growth, confirm that the exports were not affected by the blockade. Al Sharqi noted the expansion of the list of markets receiving non-oil exports in terms of number and volume of their imports, which is another proof of the quality of the products that constitute the strength of these exports. (Peninsula Qatar) Building permits issued rise 90% MoM in July Municipalities in Qatar issued a total of 729 building permits in July 2018, a rise of 90% over June, according to the Ministry of Development Planning and Statistics (MDPS). The monthly statistics showed 402 building completion certificates were registered in the same month, a general rise of 55% over the previous month. Al Wakrah came at the top of the municipalities, where 202 permits for new buildings were issued followed by Rayyan municipality with 172 permits, Doha municipality (121) and Al Da ayen (107). Analysis of the data showed that villas topped the list with 191 permits. (Gulf-Times.com) Qatar s economy shows signs of strength; construction sector grows significantly Qatar s economy has shown signs of strength in recent months, a recent report stated and noted that the country s construction activity increased significantly as preparations continued for the 2022 World Cup. In May, the merchandise trade surplus grew by nearly 40% due to increased energy exports, according to FocusEconomics. This highlights the resilience of the external sector, given that Qatar continues to face a trade embargo from several of its neighbors, led by Saudi Arabia. Moreover, in June, business conditions improved in the non-oil and gas private sector for the eleventh consecutive month, FocusEconomics stated. Although the economy expanded at a weak pace in the first three months of 2018, due to a decrease in mining and quarrying output, construction activity increased significantly as preparations continued for the 2022 World Cup. Qatar s economy this year should be supported by higher oil prices, economic reforms and the government s infrastructure investment push in preparation for the 2022 World Cup. FocusEconomics panelists forecasted a growth of 2.6% in 2018, which is down by 0.2 percentage point from last month s projection, and 2.8% again in (Gulf-Times.com) Doha Cables eyes Asian and African markets Doha Cables, Qatar s first cable manufacturer, is looking to expand its commercial footprints beyond the borders, focusing mainly on Africa, Asia and European markets. The company, which is involved in a series of big-ticket projects in Qatar, has already opened its commercial office in Philippines ahead of its global expansion plans. Doha Cables, which is involved in a number of long-term mega projects in Qatar, is now hedging their exposure to copper through HSBC UK to ensure that the company is providing quality service to its clients, according to Doha Cables Vice-President, Ahmed Fathy Al Sewedy. (Peninsula Qatar) South Korea sees further lift in Qatar ties Improving relations between North Korea and South Korea have played a significant role in the further development of the latter s economic and bilateral ties with Qatar, according to a top diplomat. South Korea s new Ambassador to Qatar, Kim Changmo lauded Qatar s support for South Korea s call for peace, including denuclearization. Kim said, Qatar has continuously supported South Korea s efforts for denuclearization and for bringing peace to the Korean peninsula. Qatar has always been behind us; officially, they are always making announcements in support of our relationship and our efforts, so indirectly the improvement of North Korea and South Korea s relationship had also helped improve our bilateral relations with Qatar. Kim also said that with better and developed North Korea and South Korea relations, Qatar would have more chances to invest in North Korea, just as it had invested in South Korea. (Gulf- Times.com) International UK s consumer spending dips in July, modest pay rises ahead British consumer spending dipped last month and few employers plan to offer bigger pay rises, according to economic surveys that suggest future growth is likely to remain modest. Consumer spending figures from payment card company Visa suggested the third quarter got off to a soft start, with July spending down 0.9% in inflation-adjusted terms as only bars, restaurants and supermarkets gained from scorching weather and the World Cup. (Reuters) China s July new loans up 1.45tn Yuan, above estimates Chinese banks extended 1.45tn Yuan in new Yuan loans in July, the China Banking and Insurance Regulatory Commission stated, considerably higher than analysts expectations, as policymakers continue to pump liquidity into a slowing economy. Faced with sluggish domestic demand and potential pressure from a trade war with the US, Chinese policymakers have recently boosted policy support and softened their stance on deleveraging. The central bank is also due to issue M2 money supply and outstanding loan growth data this week. Analysts polled by Reuters had predicted new July Yuan loans of 1.2tn Yuan, easing from a five-month high of 1.84tn Yuan in June, according to a Reuters survey of 36 analysts. (Reuters) Regional Middle East tops global ranking for energy self-sufficiency ratio With energy production more than 2.5 times as large as its demand, the Middle East region has the highest energy selfsufficiency ratio in the world. The region produced nearly 15% of global energy in 2016, an increase from just over 13% for the previous five years. This growth is largely driven by oil and gas, where the Middle East produced 34% of global oil, and nearly 17% of the world s gas. The Middle East s global share of natural gas production has increased every year since Page 3 of 5

4 With 33% of the Middle East s natural gas production, Iran maintained its position as the region s largest producer of natural gas in 2016, closely followed by Qatar at 30% of the regional production. (GulfBase.com) GCC region s private sector to help bridge funding gap Gulf nations will face an average infrastructure-funding gap of about 40% in the next five years and private sector involvement will be critical, partner for financial services at Oliver Wyman, Jeff Yousuf said. He said that public-private partnerships (PPPs) are very good investment option in the Gulf as a means to boost private sector contribution to the economy. He said that PPPs are vital as governments can offload some of the financing burden and project risks onto the private investors, acquire private sector expertise and improve operating efficiency. (GulfBase.com) Saudi Arabia and the UAE s PMI fell in July Emirates NBD and Markit Economics released the July PMI data for Saudi Arabia and the UAE. The UAE s PMI fell to 55.8 in July 2018 from 57.1 in June Further, Saudi Arabia s PMI also fell to 54.9 in July 2018 from 55 in June (Bloomberg) SRC in key mortgage portfolio acquisition deal with NCB Saudi Real Estate Refinancing Company (SRC) stated that it has signed an agreement with National Commercial Bank (NCB) for a mortgage portfolio acquisition. The partnership agreement is a first-of-its-kind between SRC and NCB to support home buyers and boost opportunities for home ownership. The pact will pave the way for more market liquidity, which will be provided to homebuyers through NCB. The partnership with NCB follows agreements signed by SRC last year with three mortgage finance companies. SRC has SR3bn of funding to spend on mortgage portfolio acquisition and short-term warehousing finance to create the market conditions to allow banks to offer more home loans. (GulfBase.com) Saudi Aramco, Air Products, ACWA Power to form gasification/power JV in Saudi Arabia Saudi Aramco, Air Products and ACWA Power signed a term sheet to set up a gasification/power joint venture (JV) in Saudi Arabia. The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for approximately $8bn, according to a statement. Air Products will own at least 55% of the joint venture, to be set up in Jazan Economic City, with Saudi Aramco and ACWA Power owning the balance. (Reuters) Saudi Arabia completes $1.3bn road projects in 1H2018 The Saudi Arabian transport ministry announced that it has completed work on 55 road projects worth $1.32bn during 1H2018. Another 477 projects running 12,050 kilometers long are under construction. Out of this, 67 are in Riyadh, 61 in Makkah and 27 in Madinah, it added. (GulfBase.com) Oman s economy witnessing a transformation Oman s economy is witnessing a structural transformation, with increased diversification leading to accelerated non-oil economic activities and reduced dependence on the hydrocarbon sector over the last few years, according to the Central Bank of Oman s (CBO) Annual Report International oil prices also recovered significantly due to a resurgent global demand and the Organization of Petroleum Exporting Countries (OPEC) and non-opec oil producers agreement clearing the global supply glut. The recovery in oil prices and improved non-oil activities led to Oman s nominal GDP growing by 8.7% in 2017 as against a contraction of 3.0% in 2016, the report stated. The economic recovery was fairly broad-based, with both hydrocarbon and non-hydrocarbon activities growing by 20.8% and 3.9%, respectively. All three non-oil hydrocarbon groups; industry, services, and agriculture and fishing witnessed growth in 2017, the report noted. (GulfBase.com) Inflation in Oman rises 1.42% in July The rate of inflation in Oman increased by 1.42% in July 2018 compared to the same month in 2017, according to the National Centre for Statistics and Information (NCSI). It also stated that the inflation rate increased by 0.14% compared to June The rise in the price index in July 2018 is attributed to the rise in prices in major groups, such as housing, water, electricity, gas, and other fuels by 0.6%; transport by 7.07%; restaurants and hotels by 0.35%; miscellaneous goods and services by 0.91%; and education by 4.9%. (GulfBase.com) KHCB s net profit narrows to BHD0.6mn in 2Q2018 Khaleeji Commercial Bank (KHCB) recorded net profit of BHD0.6mn in 2Q2018 as compared to BHD1.6mn in 2Q2017. Total income came in at BHD5.6mn as compared to BHD6.4mn in 2Q2017. Total assets stood at BHD741.25mn at the end of June 30, 2018 as compared to BHD785.22mn at the end of December 31, Financing assets stood at BHD343.04mn, while placements from financial institutions stood at BHD112.01mn at the end of June 30, EPS came in at BHD in 2Q2018 as compared to BHD in 2Q2017. (Bahrain Bourse) Page 4 of 5

5 Rebased Performance Daily Index Performance % (1.0%) (2.0%) (1.4%) (0.2%) (0.1%) (0.6%) (0.6%) (1.0%) (3.0%) (2.5%) 50.0 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 QSE Index S&P Pan Arab S&P GCC Saudi Arabia Qatar Kuwait Bahrain Oman Abu Dhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (0.1) (0.2) (7.0) MSCI World Index 2, (1.1) (0.7) 1.7 Silver/Ounce (0.8) (0.6) (9.6) DJ Industrial 25, (0.8) (0.6) 2.4 Crude Oil (Brent)/Barrel (FM Future) (0.5) 8.9 S&P 500 2, (0.7) (0.2) 6.0 Crude Oil (WTI)/Barrel (FM Future) (1.3) 11.9 NASDAQ 100 7, (0.7) Natural Gas (Henry Hub)/MMBtu 2.96 (2.0) 4.2 (16.4) STOXX (2.4) (2.5) (6.0) LPG Propane (Arab Gulf)/Ton (1.7) DAX 12, (3.3) (3.2) (8.8) LPG Butane (Arab Gulf)/Ton (2.7) FTSE 100 7, (1.7) (2.0) (6.0) Euro 1.14 (1.0) (1.3) (4.9) CAC 40 5, (2.9) (2.8) (3.3) Yen (0.2) (0.4) (1.7) Nikkei 22, (1.1) (0.6) (0.4) GBP 1.28 (0.5) (1.9) (5.6) MSCI EM 1, (1.5) (1.0) (8.3) CHF 1.00 (0.2) (0.1) (2.1) SHANGHAI SE Composite 2, (0.4) 1.9 (19.8) AUD 0.73 (1.0) (1.4) (6.5) HANG SENG 28, (0.8) 2.5 (5.6) USD Index BSE SENSEX 37, (0.9) RUB Bovespa 76, (3.9) (9.7) (14.1) BRL 0.26 (1.6) (4.1) (14.3) RTS 1, (3.7) (7.7) (8.4) (*$ 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