Week ended Feb 22, Week ended Feb 15, Chg. % Market Indicators

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1 ` Market Review and Outlook The Qatar Stock Exchange (QSE) Index increased points or 0.76% during the trading week to close at 9, Market capitalization increased by 0.8% to QR487.4 billion (bn) versus QR481.4bn at the end of the previous trading week. Of the 45 listed companies, 18 companies ended the week higher, while 23 declined and 4 companies remained unchanged. Commercial Bank of Qatar (CBQK) was the best performing stock for the week with a gain of 10.6% on 704.7k shares traded. On the other hand, Widam Food (WDAM) was the worst performing stock for the week with a decline of 6.2% on 569.9k shares traded. Industries Qatar (IQCD), Commercial Bank of Qatar (CBQK) and Qatar Islamic Bank (QIBK) were the primary contributors to the weekly index gains. IQCD was the biggest contributor to the index s weekly increase, adding points to the index. CBQK was the second biggest contributor to the mentioned gains, contributing points to the index. Moreover, QIBK tacked on points to the index. However, Masraf Al Rayan (MARK) deleted 6.85 points from the index. Trading value during the week decreased by 2.05% to reach QR792.7 million (mn) versus QR809.3mn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 44.86% of the total trading value. The Industrials sector was the second biggest contributor to the overall trading value, accounting for 22.25% of the total trading value. QNB Group (QNBK) was the top value traded stock during the week with total traded value of QR88.2mn. Trading volume decreased by 9.02% to reach 32.9mn shares versus 36.2mn shares in the prior week. The number of transactions dropped by 6.58% to reach 13,489 transactions versus 14,439 transactions in the prior week. The Banks and Financial Services sector led the trading volume, accounting for 47.17%, followed by the Industrials sector which accounted for 23.41% of the overall trading volume. Qatar First Bank (QFBQ) was the top volume traded stock during the week with 8.0mn shares. Foreign institutions turned bullish with net buying of QR1.3mn vs. net selling of QR30.5mn in the prior week. Qatari institutions remained bullish with net buying of QR57.4mn vs. net buying of QR71.8mn in the week before. Foreign retail investors remained bearish with net selling of QR2.8mn vs. net selling of QR20.0mn in the prior week. Qatari retail investors remained bearish with net selling of QR55.8mn vs. net selling of QR21.2mn the week before. Foreign institutions bought (on a net basis) ~$76.9mn worth of Qatari equities since the beginning of QSE Index and Volume 9,140 9,100 9,060 Market Indicators Week ended Feb 22, 2018 Week ended Feb 15, 2018 Chg. % Value Traded (QR mn) (2.1) Exch. Market Cap. (QR mn) 487, , Volume (mn) (9.0) Number of Transactions 13,489 14,439 (6.6) Companies Traded Market Breadth 18:23 29:13 Market Indices Close WTD% MTD% YTD% Total Return 15, (0.0) 8.0 ALL Share Index 2, (1.4) 4.1 Banks and Financial Services 2, Industrials 2, (1.1) 7.4 Transportation 1, (3.2) 9.5 Real Estate 1, (8.3) (5.0) Insurance 3, (1.8) (4.2) Telecoms 1, (4.3) (4.5) Consumer Goods & Services 5, (0.4) 8.9 Al Rayan Islamic Index 3, Market Indices Weekly Index Performance 1.2% 0.6% (0.6%) (1.2%) (1.8%) 9, , , , Feb 19-Feb 20-Feb 21-Feb 22-Feb 0.9% 0.8% Bahrain Qatar (QSE)* Abu Dhabi Volume QSE Index (0.1%) (0.1%) Saudi Arabia Kuwait (0.9%) Oman 10,000,000 5,000,000 9, (1.3%) Dubai 0 Regional Indices Close WTD% MTD% YTD% Weekly Exchange Traded Value ($ mn) Exchange Mkt. Cap. ($ mn) TTM P/E** P/B** Dividend Yield Qatar (QSE)* 9, (1.2) , Dubai 3, (1.3) (3.2) (2.5) ,481.7 # Abu Dhabi 4, (0.5) , Saudi Arabia # 7, (0.1) (1.9) 3.9 4, , Kuwait 6, (0.1) , Oman 4, (0.9) (0.6) (2.5) , Bahrain 1, , Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; # Data as of February 21, 2018) Page 1 of 7

2 News Economic & Corporate News Infrastructure spending can give momentum to Qatar s property market A balanced budget was announced by Qatar for the fiscal year Transportation and other infrastructure projects were assigned the largest share with allocations of QR42.0bn. Sports sector and 2022 FIFA World Cup projects amounted to a total allocation of QR11.2bn in 2018 s budget. Increased government spending and mega deals in pipeline are some of the growth triggers that would help recover the property market in In residential market in the last year, landlords have become more willing to accept rent-free periods or reduce rental expectations. This has been due to additional supply and an increase in vacancy rates following a five-year period of undersupply and strong rental growth. Qatar s retail property market remains underpinned by the high disposable income of a significant section of the population. Infrastructure spending can give momentum to Qatar s property market. On the whole, the Qatar s property market is delicately poised. (Gulf-Times.com) QDB plays key role in economic diversification Qatar Development Bank s (QDB) Chairman, HE Sheikh Abdullah Bin Saoud Al Thani said that QDB was playing a commendable role in the country s ambitious economic diversification strategy, by providing total support to the small and medium sized enterprises (SMEs). Addressing QDB s General Assembly Meeting, Sheikh Abdullah, noted that QDB has focused on redoubling its efforts to support entrepreneurs through various initiatives and programs that create opportunities for local industries despite the many regional and global economic challenges. QDB also adopted unique business models based on innovation, and employs best practices and modern techniques, in addition to continuing to collaborate with its strategic partners to achieve its objectives. QDB stated that its financing portfolio rose to QR8bn last year. The value of the approved guarantees through Al Dhameen program amounted to QR303mn in 2017, an increase of 17.4%. The number of guarantees reached 47 and the number of projects benefiting from the program stood at 300. QDB helped Qatari exporters to participate in the export trade fairs, with a total of 185, while the volume of contracts through bilateral meetings reached QR155mn. (Peninsula Qatar) Qatar s industrial sector remains buoyant despite blockade Faster expansion in the manufacture of refined petroleum products, basic metals and food products helped Qatar s industrials sector remain buoyant in December 2017 amidst economic blockade. The country s Industrial Production Index (IPI) reported 1.3% increase MoM and 0.8% YoY in the review month, according to the Ministry of Development Planning and Statistics (MDPS). According to the Qatar Central Bank s figures, credit to the industrial manufacturing stood at QR7.6bn in December, which constituted about one-fourth of total loans extended to the industrial sector. The manufacturing index, with a relative weight of 15.2%, showed 6.9% YoY increase last December on account of 26.5% increase in the manufacture of refined petroleum products, 23.9% in basic metals, 21.7% in food products, 3.6% in printing and reproduction of petroleum products, 2.5% in rubber and plastics products, 1.7% in chemicals and chemical products and 0.8% in beverages. (Gulf-Times.com) Qatar Airways is set to add 30 new aircraft to its fleet in 2018 Qatar Airways will be adding nearly 30 new aircraft, both Boeing and Airbus to its fleet in 2018, according to Qatar Airways CEO, Akbar Al Baker. Next month, Qatar Airways will be receiving seven more A350s in its fleet. Al Baker said, This is a record for an airline to receive seven aero planes in just one month. It shows our march is going ahead and that Qatar Airways is really the star in the airline industry today. Qatar Airways will not slow down as I have said earlier; we will keep expanding aggressively. (Gulf-Times.com) HIA accelerates capacity expansion Hamad International Airport (HIA) is accelerating its capacity expansion plans as Qatar is gearing up to host the 2022 FIFA World Cup with approximately 96,000 passengers to welcome per day during the world cup, according to HIA s Chief Operating Officer, Badr Al Meer. Our facility expansion also aims at increasing the cargo capacity to 2.8mn from the current 1.4mn tons per year upon completion of second cargo terminal, as well as the airport terminal expansion, which will increase our passenger capacity from 30mn passengers to more than 50mn per year. So far we are on track with achieving this ambition by 2020, Al Meer said. With Qatar Airways growing network now connecting Doha directly to 14 new destinations combined with the airports natural growing passenger traffic, increased aircraft movements, new foreign airlines joining the network, as well as increased cargo activity, the HIA sets its main priority to manage growth and to focus efforts and investment on airport capacity. (Gulf-Times.com) Qatar has good competitive indicators in global market Qatar has good competitive indicators in the global market, Paraguay s Minister of Industry and Commerce, Gustavo Leite said. He said Qatar surprised the world by its smooth handling of the current Gulf crisis and the opening of the Hamad Port under the siege. Leite noted that a high-ranking Qatari ministerial delegation is expected to visit Paraguay soon to strengthen relations in various fields. He said efforts are underway to open an air route between Doha and Paraguay. He called on Qatari investors to invest in his country in various fields, especially agriculture and services. The minister stressed that Paraguay has many investment opportunities, especially in the agriculture sector, where 95% of the land is fertile and suitable for farming, which is a low-cost investment with great advantages. (Gulf-Times.com) Blockade of Qatar by GCC states proving futile The Emir HH Sheikh Tamim Bin Hamad Al Thani said the ongoing blockade of Qatar by its neighbors is proving to be futile, warning that the months-long crisis is undermining the region s security and economic outlook. It has been a futile crisis manufactured by our neighbors, some of whom are major regional players, once believed to be stabilizing factors on the world stage. That is no longer the case. The adventurous policies have undermined regional security and the economic outlook for the GCC as a strategic bloc, the Emir said at the opening session of the Munich Security Conference in Germany. The Emir added, Even with the regional turmoil, Qatar remains one of the most Page 2 of 7

3 peaceful countries in the world. Despite the obstacles imposed on us, including a full land, air and sea blockade since June five last year, Qatar secured new trade routes, accelerated economic diversity, and bonded together in unity. Qatar emerged stronger. (Qatar Tribune) QNB Group: Qatar s forex reserves rise to $37.6bn in December In a clear indication of Qatar s improving international investment position, Qatar Central Bank s (QCB) foreign exchange reserves increased to $37.6bn in December, up from $36.9bn in the previous month. QCB s forex reserves equate to more than six and a half months of import cover, QNB Group stated in its latest report Qatar Monthly Monitor. The report showed that Qatar s current account surplus widened to 5.3% of GDP in 3Q2017 from 2.5% in 2Q2017 while the deficit in the financial account narrowed. The fiscal deficit widened in 3Q2017 to 6.9% of GDP from 4.1% in 2Q2017. Both the country s exports and imports increased YoY in December, indicating heightened economic activity in the country. Imports increased 28.8% YoY in December while exports grew 34.5% YoY, the report stated. Broad money supply (M2) grew to 21.3% in December, up from 18.8% in November. The overnight interbank rate remained flat at 2.08%, while the three-month interbank rate declined to 2.5% in December from 2.75% in November last year. (Gulf-Times.com) QNB Group: Oil prices may average $60-$65 on balanced market in 2018 Oil prices may average $60-65 per barrel on balanced market this year, QNB Group stated in an economic commentary. The Brent oil price has proven to be volatile over the past ten days. After rising to above $70 per barrel in late January, which is 55% higher than the recent low of $45 per barrel set in June last year, the Brent oil price fell back to around $63 per barrel last week. Despite the recent drop, QNB Group has made an upward revision to its forecast for Brent crude oil (in 2018) to $60-65 per barrel (average). The forecast is based on a combination of a regression model, the oil futures curve, and consensus forecasts. Within its regression model QNB Group has revised higher its estimate of the average break-even oil price for US shale oil producers from $58 per barrel to $63 per barrel. At the same time, the futures curve and consensus forecasts have both increased. (Gulf-Times.com) QNB Group contracts with CI Capital in Egypt QNB Group mandated CI Capital in Egypt to advise on the necessary action to sell approximately 2.1% of QNB Group s stake in QNB ALAHLI, Egypt, to reach approximately 95% after the sale, in order to comply with the free float requirements of the Egyptian Stock Exchange (EGX) and the requirements of other concerned local regulators. QNB Group s current shareholding in QNB ALAHLI amounts to 97.12%. (QSE) Aamal Company announces Doha Cables wins two-year Kahramaa contract worth QR1.24bn Aamal Company announced that Doha Cables, a fully-owned subsidiary of Senyar Industries Qatar Holding, in which Aamal Company is 50% shareholder, has been awarded a two-year contract by Qatar General Electricity & Water Corporation (Kahramaa) to supply LV, 11 KV and pilot power cables. The contract is for a call-off agreement under which Doha Cables will provide materials to Kahramaa within two days of an order being placed. Winning this contract is expected to positively impact Doha Cables revenues for the first quarter of 2018, during which period the first order has been placed. (QSE) Ahli Bank manages its net interest margins in 2017 Asset repricing and loan growth more than offset the increased funding cost, thus helping Ahli Bank effectively manage its net interest margins in Moreover, the focus was on improving the maturity profile of the bank s liabilities, Ahli Bank s Chairman and Managing Director, Sheikh Faisal Bin AbdulAziz Bin Jassem Al Thani told shareholders at the Annual Ordinary General Assembly Meeting, which also endorsed the net profit of QR639.7mn as well as 10% cash dividend. Extraordinary General Assembly Meeting also approved the board s proposal to increase the capital by 5% (through bonus issue) to QR210.36mn shares. (Gulf-Times.com) QIBK approves increase in FOL to 49% from 25% Qatar Islamic Bank s (QIBK) annual general assembly meeting approved board of director s recommendation to increase the limit of QIBK s Sukuk Program in US Dollars from $3bn to a maximum of $4bn. The general assembly also approved the renewal of the QR7.5bn limit for the Additional Tier 1 (AT1) Perpetual Sukuk, of which QR4bn has been utilized, during the bank s Ordinary and Extraordinary General Assembly. The general assembly also approved the board s recommendation to increase in percentage ownership of non-qataris in QIBK s capital from 25% to 49%, as well as the distribution of 50% cash dividends at QR5 per share. (Gulf-Times.com) AKHI posts net loss of ~QR2mn in 4Q2017 Al Khaleej Takaful Insurance Company (AKHI) reported net loss of ~QR2mn in 4Q2017 as compared to net profit of ~QR0.2mn in 3Q2017. EPS amounted to QR0.58 in FY2017 as compared to QR0.52 in FY2016. The company s board of directors recommended a distribution 5% cash dividend. (QSE) QISI s net profit declines 16.2% QoQ in 4Q2017 Qatar Islamic Insurance Company s (QISI) net profit declined 16.2% QoQ (- 11.9% YoY) to QR11.80mn in 4Q2017. The company s total revenue came in at QR24.69mn in 4Q2017, which represents an increase of 16.8% QoQ. However, on YoY basis total revenue fell 1.4%. EPS amounted to QR4.13 in FY2017 as compared to QR4.23 in FY2016. QISI s board recommended distribution of cash dividends of 35% from the share par value i.e. QR3.5 for each share for the year In FY2017, QISI reported more than 1% YoY rise in gross written contribution (premium) of QR316.6mn. The shareholders profit stood at QR61.9mn in FY2017 compared to QR63.5mn recorded a year ago. The policyholders surplus registered more than 100% growth to QR16.2mn in FY2017 compared to QR7.9mn in the previous year. QISI s Chairman, Sheikh Abdulla Bin Thani Al Thani said the company would distribute, for the eighth consecutive year, 20% surplus to all the eligible policyholders for FY2017. (QSE, Gulf-Times.com) Page 3 of 7

4 Qatar Stock Exchange Top Gainers Top Decliners 12.0% 10.6% 1 8.0% 4.0% 6.9% 6.1% 5.7% -3.0% -6.0% -6.2% -4.6% -4.4% -4.2% -3.3% The Commercial Qatar Cinema & Qatar Insurance Zad Holding Ezdan Real Bank Film Distribution Estate -9.0% Widam Food Co. Qatar General Insurance & Reinsurance Dlala Holding Qatar Islamic Insurance Qatari Investors Group Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million) QNB Group Qatar Islamic Bank Qatar First Bank Barwa Real Estate Masraf Al Rayan 0.0 Qatar First Bank Mesaieed Petrochemical Holding Company Mazaya Qatar Aamal United Development Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million) 100% 80% 60% 22.55% 22.39% 14.98% 15.34% 21.61% 14.37% (2) Non-Qatari % 20% 40.86% 47.91% Qatari % Buy Sell 495 Qatari Individuals Non-Qatari Individuals Qatari Institutions Non-Qatari Institutions (100) Net Investment Total Sold Total Bought Page 4 of 7

5 TECHNICAL ANALYSIS OF THE QSE INDEX Source: Bloomberg The Index closed up 0.76% from the week before; it ended Thursday s session at 9, It remains in a corrective wave upwards, but the Index constituents have dropped significantly. That signifies the Index remaining positive in direction but losing some of its steam as it gets closer to the 10,000 level. Our current support level remains at 8,000 points. DEFINITIONS OF KEY TERMS USED IN TECHNICAL ANALYSIS RSI (Relative Strength Index) indicator RSI is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between 0 to 100. The index is deemed to be overbought once the RSI approaches the 70 level, indicating that a correction is likely. On the other hand, if the RSI approaches 30, it is an indication that the index may be getting oversold and therefore likely to bounce back. MACD (Moving Average Convergence Divergence) indicator The indicator consists of the MACD line and a signal line. The divergence or the convergence of the MACD line with the signal line indicates the strength in the momentum during the uptrend or downtrend, as the case may be. When the MACD crosses the signal line from below and trades above it, it gives a positive indication. The reverse is the situation for a bearish trend. Candlestick chart A candlestick chart is a price chart that displays the high, low, open, and close for a security. The body of the chart is portion between the open and close price, while the high and low intraday movements form the shadow. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis. Doji candlestick pattern A Doji candlestick is formed when a security's open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal. Shooting Star/Inverted Hammer candlestick patterns These candlestick patterns have a small real body (open price and close price are near to each other), and a long upper shadow (large intraday movement on the upside). The Shooting Star is a bearish reversal pattern that forms after a rally. The Inverted Hammer looks exactly like a Shooting Star, but forms after a downtrend. Inverted Hammers represent a potential bullish trend reversal. Page 5 of 7

6 Company Name Price February 22 % Change WTD % Change YTD Market Cap. QR Million TTM P/E P/B Div. Yield Qatar National Bank , Qatar Islamic Bank (2.97) , Commercial Bank of Qatar , N/A Doha Bank (0.41) , Al Ahli Bank (10.86) 6, Qatar International Islamic Bank (0.35) , Masraf Al Rayan (0.60) , Al Khalij Commercial Bank (7.96) 4, Qatar First Bank ,340 N/A 0.8 N/A National Leasing Dlala Holding (4.41) (7.01) N/A Qatar & Oman Investment Islamic Holding Group (3.17) (18.67) 173 N/A Banking and Financial Services 218,253 Zad Holding (3.09) 1, Qatar German Co. for Medical Devices 5.99 (0.50) (7.28) 69 N/A 1.0 N/A Salam International Investment 6.04 (1.31) (12.34) 690 N/A Medicare Group (1.88) , Qatar Cinema & Film Distribution (9.36) Qatar Fuel , Widam Food Co (6.18) , Mannai Corp (1.76) , Al Meera Consumer Goods , Consumer Goods and Services 22,791 Qatar Industrial Manufacturing (0.85) , Qatar National Cement , Industries Qatar , Qatari Investors Group (3.34) (11.53) 4, Qatar Electricity and Water , Aamal , Gulf International Services , Mesaieed Petrochemical Holding , Invesment Holding Group 6.27 (0.16) N/A Industrials 124,570 Qatar Insurance (3.90) 13, Doha Insurance Qatar General Insurance & Reinsurance (4.61) (7.55) 3, Al Khaleej Takaful Insurance (2.81) (6.04) Qatar Islamic Insurance (4.22) Insurance 19,699 United Development (0.42) , Barw a Real Estate (0.26) , Ezdan Real Estate (17.30) 26, Mazaya Qatar Real Estate Development 8.00 (0.99) (11.11) N/A Real Estate 48,107 Ooredoo (3.03) 28, Vodafone Qatar 7.37 (1.86) (8.10) 6,231 N/A 1.4 N/A Telecoms 34,419 Qatar Navigation (Milaha) , Gulf Warehousing (3.33) (9.07) 2, Qatar Gas Transport (Nakilat) , Transportation 19,524 Qatar Exchange 487,364 Source: Bloomberg Page 6 of 7

7 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) 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 7 of 7