Week ended May 24, Week ended May 31, Chg. % Market Indicators

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1 ` Market Review and Outlook The Qatar Stock Exchange (QSE) Index decreased points or 1.86% during the trading week to close at 8, Market capitalization fell by 1.88% to QR491.8 billion (bn) versus QR501.2bn at the end of the previous trading week. Of the 45 listed companies, 13 companies ended the week higher, while 28 declined and 4 remained unchanged. Zad Holding (ZHCD) was the best performing stock for the week with a gain of 5.28% on 10.5k shares traded. On the other hand, Aamal (AHCS) was the worst performing stock for the week with a decline of 7.80% on 225.7k shares traded. Industries Qatar (IQCD), Qatar Islamic Bank (QIBK), and Qatar Electricity & Water (QEWS) were the primary contributors to the weekly index decline. IQCD was the biggest contributor to the index s weekly decline, deleting 47.6 points from the index. QIBK was the second biggest contributor to the mentioned losses, deleting 42.9 points from the index. Moreover, QEWS shaved off 19.5 points to the index. However, Qatar Navigation (QNNS) added 4.4 points from the index. Trading value during the week increased by % to reach QR5.8bn versus QR1.7bn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 68.94% of the total trading value. The Industrials sector was the second biggest contributor to the overall trading value, accounting for 16.73% of the total trading value. QNB Group (QNBK) was the top value traded stock during the week with total traded value of QR2.93bn. Trading volume increased by % to reach 99.7mn shares versus 48.0mn shares in the prior week. The number of transactions increased by 76.98% to reach 38,149 transactions versus 21,556 transactions in the prior week. The Banks and Financial Services sector led the trading volume, accounting for 37.27%, followed by the Transportation sector which accounted for 30.68% of the overall trading volume. Qatar Gas Transport Co. (QGTS) was the top volume traded stock during the week with 29.8mn shares. Foreign institutions remained bullish with net buying of QR829.8mn vs. net buying of QR337.7mn in the prior week. Qatari institutions remained bearish with net selling of QR612.8mn vs. net selling of QR218.5mn in the week before. Foreign retail investors turned bearish with net selling of QR17.2mn vs. net buying QR4.8mn in the prior week. Qatari retail investors remained bearish with net selling of QR199.9mn vs. net selling of QR124.0mn the week before. Foreign institutions bought (net basis) ~$603mn worth of Qatari equities YTD (as of Wednesday and not including Thursday s significant MSCI rebalance). QSE Index and Volume 9,200 9,000 8,800 Market Indicators Week ended May 31, 2018 Week ended May 24, 2018 Chg. % Value Traded (QR mn) 5, , Exch. Market Cap. (QR mn) 491, ,198.0 (1.9) Volume (mn) Number of Transactions 38,149 21, Companies Traded (4.5) Market Breadth 13:28 29:15 Market Indices Close WTD% MTD% YTD% Total Return 15, (1.9) (2.5) 9.5 ALL Share Index 2, (1.9) (4.1) 6.0 Banks and Financial Services 3, (1.7) Industrials 2, (3.5) (8.2) 8.8 Transportation 1, Real Estate 1, (2.0) (15.7) (15.1) Insurance 2, (1.6) (5.3) (16.2) Telecoms (1.7) (14.3) (14.5) Consumer Goods & Services 5, (0.4) (2.7) 16.2 Al Rayan Islamic Index 3, (1.7) (5.4) 2.7 Market Indices Weekly Index Performance 1.4% 0.7% 0.0% (0.7%) (1.4%) (2.1%) 8, , , , May 28-May 29-May 30-May 31-May 0.9% Oman Volume QSE Index 0.3% 0.2% 0.1% 0.1% Dubai Bahrain Abu Dhabi Kuwait (0.4%) Saudi Arabia 8, (1.9%) Qatar (QSE)* 60,000,000 30,000,000 0 Regional Indices Close WTD% MTD% YTD% Weekly Exchange Traded Value ($ mn) Exchange Mkt. Cap. ($ mn) TTM P/E** P/B** Dividend Yield Qatar (QSE)* 8, (1.9) (2.5) 4.2 1, , Dubai 2, (3.3) (12.0) ,225.0 # Abu Dhabi 4, (1.4) , Saudi Arabia # 8, (0.4) (2.4) , , Kuwait 4, (0.4) (3.7) , Oman 4, (2.6) (9.7) , Bahrain 1, (4.9) , Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; # Data as of May 30, 2018) Page 1 of 6

2 News Economic & Corporate News QInvest posts profit of QR1.7mn on revenues of QR73.1mn in 1Q2018 QInvest, Qatar s private investment group reported net profit of QR1.7mn on revenues of QR73.1mn in the first three months of this year. The region s prominent Islamic financial institution s global assets stood at QR4.51bn at the end of first quarter ended March 31, The group s revenues and net profit fell in line with expectations, while costs have remained stable. The group maintained a strong liquidity position with a healthy capital adequacy ratio of 25.8% as of March 31, QInvest s CEO, Tamim Hamad Al Kawari said, While 1Q2018 saw headwinds in the region, the diversified nature of the group has allowed us to capitalize on more favorable global market conditions. Its asset management business has had a strong start to the year and has sustained top quartile performance in both local and global markets. During the reporting period, the unit migrated the management of its US growth equity fund from Edgewood Management to Spyglass Capital Management, a spinoff from Edgewood. (Gulf-Times.com) Weekly real estate trading volume exceeds QR448mn Qatar s real estate trading volume crossed QR448mn in the period (May 20-24), data released by the Ministry of Justice s Real Estate Registration Department showed. The department s weekly report stated the trading included empty lands, towers, residential buildings, multipurpose lands and commercial buildings. Most of the trading took place in Doha, Al Daayen, Al Rayyan, Umm Salal, Al Khor, Al Thakhira, Al Wakrah and Al Shamal. Last week s (May 13-17) trading volume stood around QR271.43mn. (Qatar Tribune) Qatar s non-oil exports jump to reach QR2.2bn in April Qatar recorded 68% MoM jump in non-oil exports to reach QR2.2bn in April 2018, and 71% increase YoY, according to Qatar Chamber. The Chamber s Research and Studies Department and Member Affairs Department reported that a total of 3,068 certificates of origin were issued in April 2018, including 2,812 general form certificates, 99 unified GCC certificates (industrial), 129 unified Arab certificates of origin, and 28 certificates of origin for preference. Qatar Chamber s Director General, Saleh Bin Hamad Al Sharqi said the 71% YoY increase in non-oil exports indicates development in the sector, which has been growing at an accelerated pace since the beginning of 2018 due to the efforts and facilities provided to the industrial sector. Al Sharqi noted that the volume of exports in April is a real indicator that confirms the efforts of the state in the development of the industry sector and increasing the capacity and efficiency of its productive institutions despite the surrounding circumstances. (Gulf-Times.com) Qatar s inflation 0.6% up YoY in the first quarter Higher expenses towards transportation, health, food and clothing pushed up Qatar s cost of living, based on consumer price index, by 0.6% YoY in the first quarter of this year. The CPI inflation was up 0.2% compared to 4Q2017, owing to costlier transportation, health, restaurants and clothing, according to the Ministry of Development Planning and Statistics. Transport index, which has 14.59% weightage in the CPI basket, increased 8% and 3.5% YoY and QoQ respectively in 1Q2018. The operation of personal transport became costlier by more than 14% and transport services by 9% YoY. Health index, which carries 1.79% weightage in the CPI basket, expanded 5.3% and 2.2% YoY and QoQ in 1Q2018. The hospital and outpatient services increased 9% and 5% respectively on a yearly basis. (Gulf-Times.com) QIMD acquires foreign partner s stake in QPPC Qatar Industrial Manufacturing Company (QIMD) acquired the foreign partner s stake in Qatar Plastic Products Company (QPPC). With the acquisition of shares in the company, QIMD will now be a majority stakeholder in QPPC. QIMD s Chairman, Sheikh Abdul Rahman Bin Mohammed Bin Jabor Al Thani signed the contract for the purchase of the foreign partner s 33.33% share in QPPC of the company s capital, thus increasing its share capital to 66.66%. QIMD s CEO, Abdul Rahman Al Ansari said, We are confident that this acquisition will strengthen our investment portfolio in the industry and that this transaction will have a positive impact on our profits. (Peninsula Qatar) Move to allow 100% FDI in all sectors seen enhancing Qatar s global profile Qatar s moves to allow 100% foreign capital in all sectors is positive, especially in the banking sector, and is expected to further enhance the country s position in the global foreign direct investment (FDI) landscape. It rather reflects upon Qatar s confidence in the international investments amidst the continuing economic blockade. During 3Q2017, Qatar s total inward foreign investments amounted to QR665bn, of which FDI was QR135.1bn, portfolio investment of QR95.8bn, other investments of QR429.5bn and derivatives of QR4.6bn, according to the Ministry of Development Planning and Statistics. About 90% of inward FDI went into the oil and gas and associated downstream manufacturing and other activities such as transportation and marketing. In terms of the book value of investments, manufacturing activities accounted for 56% of the total value of FDI, followed by mining and quarrying (32%) and financial and insurance activities (6%) at the end of (Gulf-Times.com) FTSE Global Index semi-annual review increases weights on select Qatari names FTSE announced in its semi-annual review index weight changes on several companies trading on the QSE. QNB Group (QNBK) along with IQCD, QEWS, GISS, and QIBK will see a weight bump in the index. While most of the increases was in line with our/street expectations, we note that IQCD s investability weight was increased to 49% (vs. 33% used by MSCI), which should drive higher fund flows into the name than we expected. Changes impacting Qatari names will be effective as of market close on Thursday June 14. (QNBFS Research, QNBFS Sales, FTSE Russell) Page 2 of 6

3 Qatar Stock Exchange Top Gainers Top Decliners 6.0% 5.3% 5.0% 4.8% 0.0% 4.0% -3.0% 2.7% 2.5% -4.3% -4.2% -4.2% -4.1% 2.0% -6.0% 0.0% Zad Holding Al Khaleej Takaful Insurance Gulf Warehousing Qatar Industrial Manufacturing Mannai Corp. -9.0% -7.8% Aamal Qatar Islamic Bank National Leasing Qatar & Oman Investment Ezdan Real Estate Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million) 3, , , , QNB Group Qatar Islamic Bank Qatar Gas Transport (Nakilat) Qatar Electricity Industries Qatar and Water 0.0 Qatar Gas Transport (Nakilat) QNB Group Vodafone Qatar Mesaieed Petrochemical Holding Company Qatar Islamic Bank Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million) 100% 80% 60% 78.46% 64.06% Non-Qatari 813 3,856 4,669 40% 20% 0% 2.85% 2.55% 20.03% 9.40% 9.59% 13.06% Buy Sell (813) Qatari 1,095 1,907 Qatari Individuals Non-Qatari Individuals Qatari Institutions Non-Qatari Institutions (2,000) (1,000) - 1,000 2,000 3,000 4,000 5,000 Net Investment Total Sold Total Bought Page 3 of 6

4 TECHNICAL ANALYSIS OF THE QSE INDEX Source: Bloomberg The QE General Index closed slightly down (-1.86%) from the week before, and closed at 8, for Thursday s close. Indicators remained flat and the Index is trapped between the 8,600 support and the 9,000 resistance levels. 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 4 of 6

5 Company Name Price May 31 % Change WTD % Change YTD Market Cap. QR Million TTM P/E P/B Div. Yield Qatar National Bank (0.80) , Qatar Islamic Bank (4.34) , Commercial Bank of Qatar (1.97) , Doha Bank (3.48) (8.60) 8, Al Ahli Bank (0.03) (19.21) 6, Qatar International Islamic Bank (2.36) (5.22) 7, Masraf Al Rayan (1.21) (11.34) 25, Al Khalij Commercial Bank (22.54) 3, Qatar First Bank (17.15) 1,082 N/A 0.7 N/A National Leasing 9.12 (4.20) (14.85) Dlala Holding (0.23) (12.65) N/A Qatar & Oman Investment 6.00 (4.15) (24.05) Islamic Holding Group (3.16) (26.40) 156 N/A 1.2 N/A Banking and Financial Services 242,438 Zad Holding , Qatar German Co. for Medical Devices 5.18 (3.18) (19.81) 60 N/A 1.2 N/A Salam International Investment (20.75) 624 N/A 0.4 N/A Medicare Group (0.68) (18.81) 1, Qatar Cinema & Film Distribution (12.00) Qatar Fuel (1.73) , Widam Food Co (1.09) (4.00) 1, Mannai Corp (22.54) 2, Al Meera Consumer Goods , Consumer Goods and Services 23,188 Qatar Industrial Manufacturing (5.29) 1, Qatar National Cement (11.00) 3, Industries Qatar (3.75) , Qatari Investors Group (2.09) (18.03) 3, Qatar Electricity and Water (3.55) , Aamal 9.22 (7.80) , Gulf International Services (1.23) (4.63) 3, N/A Mesaieed Petrochemical Holding (4.05) , Invesment Holding Group 5.41 (3.39) (11.31) Industrials 121,619 Qatar Insurance (2.54) (27.17) 10, Doha Insurance (7.14) Qatar General Insurance & Reinsurance , Al Khaleej Takaful Insurance (14.27) Qatar Islamic Insurance (0.02) (10.41) Insurance 16,559 United Development , Barw a Real Estate , Ezdan Real Estate 8.48 (4.07) (29.80) 22, N/A Mazaya Qatar Real Estate Development 6.35 (3.05) (29.44) N/A Real Estate 41,706 Ooredoo (0.28) (26.06) 21, Vodafone Qatar 8.20 (3.76) ,932 N/A 1.5 N/A Telecoms 28,426 Qatar Navigation (Milaha) , Gulf Warehousing (3.50) 2, Qatar Gas Transport (Nakilat) (8.70) 8, Transportation 17,847 Qatar Exchange 491,781 Source: Bloomberg Page 5 of 6

6 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 6 of 6