Week ended Jan 19, Week ended Jan 12, Market Indicators. Chg. %

Transcription

1 ` Kuwait Bahrain Qatar (QSE)* Abu Dhabi Oman Dubai Saudi Arabia Market Review and Outlook The Qatar Stock Exchange (QSE) Index gained points, or 2.17% during the week to close at 10, Market capitalization increased by 1.67% to QR585.9 billion (bn) versus QR576.3bn at the end of the previous week. Of the 44 listed companies, 28 companies ended the week higher, while 15 fell and 1 remained unchanged. Doha Bank (DHBK) was the best performing stock for the week with a gain of 6.5% on 1.3 million (mn) shares traded. On the other hand, Qatar General Insurance and Reinsurance Co. (QGRI) was the worst performing stock with a decline of 8.3% on 82.6k shares traded. Masraf Al Rayan (MARK), Ezdan Holding (ERES) and Barwa Real Estate (BRES) were the primary contributors to the weekly index decline. MARK was the biggest contributor to the index s weekly gain, adding 53.2 points to the index. ERES was the second biggest contributor to the gains, adding 49.9 points to the index. Moreover, BRES added 23.1 points to the index. On the other hand, Qatar Navigation (QNNS) deleted 4.1 points. Trading value during the week increased by 49.51% to reach QR1.61bn versus QR1.08bn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 35.9% of the total trading value. The Industrials sector was the second biggest contributor to the overall trading value, accounting for 22.5% of the total trading value. QNB Group (QNBK) was the top value traded stock during the week with total traded value of QR176.6mn. Trading volume increased by 32.07% to reach 49.3mn shares versus 37.3mn shares in the prior week. The number of transactions rose by 18.00% to reach 19,553 transactions versus 16,570 transactions in the prior week. The Real Estate sector led the trading volume, accounting for 27.86%, followed by the Banks and Financial Services sector, which accounted for 26.73% of the overall trading volume. Ezdan Holding (ERES) was the top volume traded stock during the week with total traded volume of 7.0mn shares. Foreign institutions remained bullish during the week with net buying of QR60.1mn vs. net buying of QR135.1mn in the prior week. Qatari institutions remained bullish with net buying of QR144.5mn vs. net buying of QR40.5mn the week before. Foreign retail investors remained bearish for the week with net selling of QR12.7mn vs. net selling of QR6.2mn in the prior week. Qatari retail investors remained bearish with net selling of QR191.9mn vs. net selling of QR169.5mn the week before. In 2017 YTD, foreign institutions bought (on a net basis) ~$78.6mn worth of Qatari equities. QSE Index and Volume 11,000 10,800 10,600 10, Market Indicators 10, , , Week ended Jan 19, , Week ended Jan 12, ,000,000 9,000,000 Chg. % Value Traded (QR mn) 1, , Exch. Market Cap. (QR mn) 585, , Volume (mn) Number of Transactions 19,553 16, Companies Traded Market Breadth 28:15 25:17 Market Indices Close WTD% MTD% YTD% Total Return 17, ALL Share Index 2, Banks and Financial Services 3, Industrials 3, Transportation 2, Real Estate 2, Insurance 4, (1.2) Telecoms 1, Consumer Goods & Services 6, Al Rayan Islamic Index 4, Market Indices Weekly Index Performance 6.0% 3.0% 0.0% (3.0%) 15-Jan 16-Jan 17-Jan 18-Jan 19-Jan Volume QSE Index 5.4% 2.3% 2.2% 0.5% (0.5%) (0.8%) (1.0%) 0 Regional Indices Close WTD% MTD% YTD% Weekly Exchange Traded Value ($ mn) Exchange Mkt. Cap. ($ mn) TTM P/E** P/B** Dividend Yield Qatar (QSE)* 10, , Dubai 3, (0.8) , ,386.8 # Abu Dhabi 4, , Saudi Arabia # 6, (1.0) (5.0) (5.0) 5, , Kuwait 6, , , Oman 5, (0.5) (0.8) (0.8) , Bahrain 1, , Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; # Data as of January 18, 2017) Page 1 of 9

2 News Economic, Market & Corporate News QIBK posts net profit of ~QR550mn in 4Q2016, in-line with our estimate Qatar Islamic Bank (QIBK) reported net profit of ~QR550mn, in-line with our estimate of QR560.99mn (variance of about -1.0%). QIBK s total income for 2016 reached QR5.4bn. The bank s total assets stood at QR139.80bn at the end of December 31, 2016, up 10% YoY driven by robust growth in financing activities. Financing assets stood at QR98.20bn, while customer deposits stood at QR95.40bn at the end of December 31, Total capital adequacy of the bank under Basel III guidelines is 16.7% as of December 2016, higher than the regulatory minimum requirements prescribed by the QCB and the Basel Committee. QIBK was able to maintain the ratio of non-performing financing assets to total financing assets at 1%, one of the lowest in the industry, reflecting the quality of the bank s financing assets portfolio and its effective risk management framework. The bank continued to pursue the conservative impairment policy with coverage ratio for nonperforming financing assets at 87% at the end of December QIBK proposed cash dividend distribution to shareholders of QR4.75 per share (47.5% of the nominal share value), higher than our estimate of QR4.10 per share. EPS amounted to QR8.55 in 2016 as compared to QR8.06 in (QNBFS Research, QSE, Gulf-Times.com) KCBK reports ~QR1.5mn net profit in 4Q2016, missing our estimates Al Khalij Commercial Bank (KCBK) reported net profit of ~QR1.5mn in 4Q2016, missing our estimate of QR133.60mn (-98.86% variation). In 3Q2016, net profit came in at QR104.8mn. The bank s net operating income for 2016 reached QR1.2bn, up 1% YoY. Total assets stood at QR60.6bn at the end of December 31, 2016 as compared to QR56.63bn at the end of December 31, Loans and advances stood at QR35.20bn, while customer deposits stood at QR32.20bn at the end of December 31, The Board of Directors also recommended the distribution of cash dividend of QR0.75 per share, lower than our estimate of QR1.00 per share. EPS amounted to QR1.07 in 2016 as compared to QR1.74 in (QNBFS Research, QSE, Gulf-Times.com) QEWS and Nebras power sign cooperation agreement with Masdar Qatar Electricity and Water Company (QEWS) and Nebras power, signed a cooperation agreement with Masdar, Abu Dhabi s renewable energy company at Abu Dhabi Sustainability Week to develop renewable and sustainable energy projects. The agreement aims to strengthen mutual cooperation between QEWS, Nebras and Masdar in the development of commercially viable renewable energy projects in Qatar, UAE and international markets. It will also promote collaboration on research & development, education and raising awareness of the importance of sustainable development. (QSE) Qatar's real estate trades exceeded QR1.2bn The total trading value in the real estate sales contracts registered with the Land Registry Department of the Ministry of Justice for the week ending January 12 reached in excess of QR1.233bn. The weekly bulletin issued by the Department showed that the real estate sales included lands, shopping centers, houses residential complexes and towers. The sales were distributed at the municipalities of Doha, Umm Salal, Al Khor, Al Dhakira, Al Rayyan, Al Wakra and Al Shamal. (Bloomberg) QCB sells QR15bn in domestic bonds Qatar Central Bank (QCB) sold QR15bn ($4.1bn) of conventional and Islamic government bonds in its first domestic government debt offer in A document showed the central bank offered threeyear bonds at 2.50%, five-year bonds at 3.10%, seven-year bonds at 3.75%, and 10-year bonds at 4.25%. The document did not specify how many bonds would be sold, but commercial bankers said they believed the issue would offset the maturing of about QR15bn of government bonds in January. (Gulf- Times.com) SMEs major contributors to country's economy Deputy Prime Minister and Minister of State for Cabinet Affairs, H E Ahmed bin Abdullah bin Zaid Al Mahmoud opened Qatar Chamber's second SMEs Conference, which is being held under the auspices of Prime Minister and Interior Minister H E Sheikh Abdullah bin Nasser bin Khalifa Al Thani. The Deputy Prime Minister said that small and medium enterprises are major contributors to any country's economy, adding that the Turkish economy is very advanced in this area. He added that the conference comes in the framework of the economic partnership between Qatar and Turkey. The conference aims at exchanging experiences and expertise between the businessmen from the two countries. (Peninsula Qatar) Qatar GDP estimated to have logged 3.9% growth in 2016 According to business advisory firm ValuStrat, Qatar's economy is expected to have grown 3.9% in the fiscal year With oil price expected to rebound in 2017, the advisory firm said, growth in Qatar's economy would accelerate in the current fiscal year. Oil prices soared above $57 per barrel after OPEC and non-opec members began curbing total production by 1.76mn barrels a day from January adding it expected oil price average at $55 per barrel in (Qatar Tribune) QR46bn of new contracts to spur realty growth Leading consulting group ValuStrat noted in its 2017 Qatar Market Outlook that plans to sign QR46bn of new contracts in 2017 will impact positively on the country s construction and real estate industries. Doha will continue to experience strong residential demand for mid income housing as population growth continues. Major retail developments are expected to come online in the market in For 1Q2017, pressure is expected on office rates due to oversupply and slow economic activity. Inflation is estimated to remain modest at around 2.0%-3.0% over the next three years. The World Bank has reassessed its oil price forecast for 2017, expecting the prices to average at $55 per barrel. Depending on construction delays, the hotel sector supply pipeline until 2017 could include over 9,600 new hotel keys and 3,400 new hotel apartments. (Peninsula Qatar) OPEC: Transport, industry to drive Qatar s oil demand in 2017 A new OPEC report has shown that oil demand is expected to grow in Qatar and many other neighboring countries including Kuwait, Saudi Arabia and the UAE in 2017, driven by the transportation and industrial sectors. Demand in the Middle East region has been projected to grow by 0.11mn barrels per Page 2 of 9

3 day (mbpd). However, in 2017, the Middle East oil demand growth may be challenged by some downside risks, due to geopolitical turbulence in the region. In the Middle East, slower-than-expected oil demand requirements were registered during October 2016 with oil demand in Saudi Arabia declining sharply for the second straight month. Demand has now declined in eight out of 10 months in 2016 in Saudi Arabia, affecting the overall Middle East oil demand picture in Focusing on product performance, LPG, gasoline and fuel oil all recorded gains of around 17%, 2% and 34% YoY, respectively, with fuel oil being supported by power generation consumption, especially in the western part of the country. (Gulf-Times.com) IHG becomes the first family business in country to go public Ending a three-year drought, Qatar s primary capital market witnessed the advent of an initial public offering (IPO) from Investment Holding Group (IHG), the first family business in the country to go public. The IPO has come at a time when the Gulf Cooperation Council s regional equity markets are on the upswing in view of the rebound in the oil prices owing to a cumulative 1.8mn barrels per day production cut, as has been agreed by OPEC and non-opec members. IHG, a diversified company, is offering 49.8mn shares at QR10.1 a piece to collectively raise QR490.8mn, representing 60% of the group s capital which is QR830mn, while the remaining 40% would be retained by Ghanim Sultan al-hodaifi al-kuwari. (Gulf- Times.com) Qatar among top real estate markets in GCC With the rapid economic development and influx of expatriates, Doha, Dubai and Abu Dhabi have emerged as top three real estate markets in the GCC, which has been witnessing one of the fastest rate of growth in the world. The GCC region, especially Qatar, over the past decade, has been witnessing rapid economic development and demographic changes, including the influx of foreign workers, which in turn has increased the region's overall population. This coupled with rise in per capita income has fuelled the demand for residential units in the GCC region, including Qatar, noted Al Masah Capital, in a real estate review report. In a sector-wise review on Qatar s real estate market, the report suggested that the office space sector has undergone dramatic changes since 2000 due to policy decisions. (Peninsula Qatar) MARK s net profit rises to ~QR515.3mn in 4Q2016, in-line with our estimates Masraf Al Rayan (MARK) reported net profit of ~QR515.3mn in 4Q2016 as compared to QR508.72mn in 3Q2016. The net profit came in-line with our estimate of QR549.67mn (-6.0% variance). EPS came in at QR2.77 in 2016 as compared to QR2.76 in The bank s total assets stood at QR91.5bn at the end of December 31, 2016 as compared to QR83.3bn at the end of December 31, Financing activities grew by 8% to QR67.6bn, while customer deposits stood at QR58bn at the end of December 31, The Board of Directors recommended a cash dividend distribution of QR2 per share (20% of the paid-up capital), higher than our estimate of QR1.75 per share. Capital adequacy ratio reached 18.85% (using Basel-III and QCB standards) in 2016 as compared to 18.54% in MARK s CEO, Adel Mustafawi pointed that the bank s growth in 2016 was limited due to liquidity constraints in the market. (QNBFS Research, QSE, Gulf-Times.com) Qatar PPI rises 3.3% in 3Q2016 on higher prices According to official data, higher prices, especially for hydrocarbons, water and some of the manufactured items such as iron & steel, paints and juices pushed up Qatar s producer price index (PPI) by 3.3% during 3Q2016 compared to the previous quarter s level. Qatar s PPI for the industrial sector one of the key indicators used to reduce prices when estimating GDP at constant prices however fell by a huge 20.3% compared to 3Q2015, said the figures released by the Ministry of Development Planning and Statistics (MDPS). MDPS had released a new PPI series in late With a base year of 2013, it draws on an updated sampling frame and new weights. The previous sampling frame dates from 2006, when the Qatari economy was much smaller and the range of products made domestically much narrower. The PPI for mining, which carries the maximum weight of 72.7%, saw its group index gain 5.9% QoQ during 3Q2016 on the back of a 5.9% increase in the price of crude and natural gas and 0.5% in stone, sand and clay prices. (Gulf-Times.ocm) Moody's: Government spending in Qatar set to increase Supported by an expected higher oil prices, the GCC's aggregate fiscal deficit will narrow to 7.5% of GDP in 2017 and 4.9% in 2018, from 8.8% of GDP in 2016 and 8.7% of GDP in However, fiscal deficits will remain sizeable in Saudi Arabia, Bahrain and Oman in light of challenges to further consolidation from low per capita incomes, as per Moody s GCC sovereign outlook for the year Qatar, UAE and Kuwait will record relatively low fiscal deficits of 4.0%, 2.9% and 3.0% of GDP, respectively in Given Qatar's stronger countercyclical approach, the ratings agency expects government spending to increase again in 2017 and 2018 after a short period of consolidation in The authorities have merged ministries, reduced the expatriate workforce, instituted a wage freeze, and cut administrative expenses. (Peninsula Qatar) Rents for old buildings fall on low demand According to industry sources, rents of old residential buildings and partitioned villas have fallen by 10 to 20% over the past six months with more people now opting for buildings with better facilities and service. Real estate experts are expecting a gradual population shift from Doha to outside areas, as a result of massive government investment in developing areas. Ahmed Al Arouqi, General Manager, Roots Real Estate and a real estate expert said, Oversupply and relatively low demand for old buildings in areas like Najma, Mansoura and Old Airport has led to a fall in rents by 10 and 20%. Majority of tenants now prefer new buildings with good maintenance services and facilities. He said many people avoid old residential buildings for the fear that they can be demolished any time. Land prices remain very high in Doha and very few plots are available for developers and even owners of those plots are not willing to sell them looking for better offers. This has forced real estate developers to invest in outside areas where land is available at relatively low prices. (Peninsula Qatar) QNBK s net profit rises 10% YoY in 2016 QNB Group (QNBK) reported 10% YoY increase in its 2016 net profit to QR12.4bn, primarily supported by 40% YoY growth in its net interest income to QR17.8bn. Net fee & commission income rose 54% YoY to QR3.5bn, while net gain on foreign exchange increased 36% YoY to QR1bn. Consequently, the bank s operating Page 3 of 9

4 income climbed 42% YoY to QR23.1bn in On the other hand, the bank s total expenses doubled to QR7.0bn in 2016 from QR3.5bn in QNBK s cost-to-income ratio came in at 30.4% compared to 21.5% in Total assets increased by 34% YoY to reach QR720bn at the end of 2016, the highest ever achieved by the Group. The growth in total assets was driven by growth of 34% in loans & advances to QR520bn, while customer deposits increased 28% YoY to QR507bn in Accordingly, loan to deposit ratio stood at 103% in 2016 as compared to 98% in The bank s NPL ratio rose to 1.8% at the end of December 2016 (from 1.4% at the end of December 2015). QNBK s coverage ratio decreased to 114% at the end of December 2016, from 127% at the end of December EPS stood at QR14.4 in 2016 compared to QR13.4 in During 2016, QNB Group completed the acquisition of 99.88% stake in QNB Finansbank, for EUR2.71bn. Capital Adequacy Ratio (CAR) stood at 16% as at December 31, 2016, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. Based on 2016 results, the Board of Directors recommended cash dividend of QR3.5 per share and bonus share of 10% of the share capital (1 share for every 10 shares). (Company Press Release) Vodafone Qatar, QMIC launch fleet management service Vodafone Qatar and Qatar Mobility Innovations Centre (QMIC) have launched a partnership to provide fleet management service, a telematics service designed to track and perform logistics management for companies aiming to enhance productivity and tackle road safety issues. The service utilizes Vodafone s Global Internet of Things (IoT) Platform that was launched in Qatar earlier in The main components of Vodafone s fleet management service are a QMIC Masarak telematics tracking device coupled with a Vodafone global SIM installed in the vehicle. The Masarak system provides a tracking portal on a computer, which is accessed by the customer through the Internet or on a mobile phone. (Gulf- Times.com) Qatar s GDP expected to recover in QNB Group (QNBK) said Qatar s gross domestic product (GDP) is expected to recover in with headline real GDP forecast to grow 3.8% in 2017 and 4.1% in The country s growth is expected to pick up driven by the non-hydrocarbon sector as a result of a fading drag from manufacturing, rising government capital spending and high population growth. According to GDP data for 3Q2016 published by Qatar s Ministry of Development Planning and Statistics (MDPS) recently, Qatar s real GDP growth accelerated from 1.8% in 2Q2016 to 3.7% in 3Q2016 owing to a recovery in the hydrocarbon sector. As a result, growth in the first three quarters of 2016 averaged 2.3% versus the same period a year earlier. QNBK expects growth to pick up going forward driven by the non-hydrocarbon sector as a result of a fading drag from manufacturing, rising government capital spending and high population growth. The hydrocarbon sector recovered from a contraction of 2% YoY in 1H2016 to grow by 2.7% YoY in 3Q2016. (Gulf-Times.com) S&P upgrades ORDS outlook to positive; rating affirmed at A- S&P Global Ratings has revised its outlook on Ooredoo (ORDS) to positive from stable. At the same time, it affirmed the A- long-term and A-2 short-term corporate credit ratings of the Qatari telecom major. The outlook revision reflects S&P s expectation that ORDS will generate higher Free Operating Cash Flow (FOCF) from 2017 following lower capital expenditure (capex) requirements and that it will maintain solid credit ratios in the absence of sizeable acquisitions. S&P expects annual capex and licence fees to decline gradually to QR6bn-QR7bn in 2017 and about QR5bn in 2018, from above QR10bn in previous years. (Gulf-Times.com) Qatar regaining its appetite for deals Qatar is regaining its appetite for deals. In the past two months alone, the world s richest country per capita invested in Turkey s biggest poultry producer, Russian oil giant Rosneft, and UK gas company National Grid. The investments have been made through the Qatar Investment Authority, created in 2005 to handle the country s windfall from liquefied natural gas sales, of which it is the world s biggest exporter. According to the Sovereign Wealth Fund Institute, the country has amassed $335bn in assets around the globe, making its sovereign wealth fund the fourteenth largest in the world. (Gulf-Times.com) Al-Shaibei: JV Islamic bank set to add significant value to Moroccan economy QIIK Chief Executive Officer Abdulbasit Ahmad al-shaibei said joint venture Islamic bank promoted by Qatar s QIIK and Morocco s CIH Bank will add significant value to the Kingdom s economy. Al-Shaibei said, We are not going to take business away from conventional banks in Morocco. Islamic banking will bring back that money, which remains isolated. We will bring the money back to the North African Kingdom s economy. The joint venture in Morocco, which will be among those pioneering Shariah-compliant Islamic banking in the Kingdom, is expected to formally start operations soon. (Gulf-Times.com) QIIK Chief: Qatar s focus on infrastructure, projects will keep everyone busy QIIK Chief Executive Officer, Abdulbasit Ahmad al-shaibei said Qatar s emphasis on infrastructure and other projects that facilitate economic expansion will keep everyone busy in He said Qatar s budget for 2017 looks promising and many projects are being fast-tracked in Qatar. Sustaining spending in key sectors such as health, education, infrastructure and transport, Qatar s budget for 2017 has earmarked QR93.2bn for major projects. It is expected that the government would sign contracts for new projects with a total of QR46.1bn in This will include infrastructure and transportation projects worth QR25bn, projects related to FIFA World Cup 2022 facilities (QR8.5bn), health and education projects (QR5.8bn) and projects in other sectors (QR6.8bn). (Gulf-Times.com) Seetharaman: Oil prices may hit $60 for a barrel in 2017 Doha Bank CEO, Dr R Seetharaman said global oil prices could possibly hit the $60 per barrel mark following OPEC production cuts. OPEC is trying to cut the output and Saudi Arabia has reaffirmed that it will cut its production and again, OPEC and non-opec are cutting the output and definitely oil reaching $60 per barrel in 2017 is a possibility. Doha Bank s CEO also said he expects Qatar s economy to achieve a 3.4% growth in Non-hydrocarbon growth is going to be between Page 4 of 9

5 7% and 8%, and the government is going to run a balanced budget and no current account deficit. Of course, there will be a fiscal deficit on account of the huge investment in infrastructure. It is a good budget; the government has aligned the monetary policy and fiscal policy. (Gulf-Times.com) Page 5 of 9

6 Qatar Stock Exchange Top Gainers Top Decliners 9.0% 0.0% 6.0% 7.2% 6.5% 5.9% 5.5% 5.4% -1.7% -1.4% -3.0% 3.0% -4.2% -6.0% 0.0% Mannai Corp. Doha Bank Aamal Masraf Al Rayan Qatar Fuel -6.8% -9.0% -8.3% Qatar General Insurance & Reinsurance Qatar Cinema & National Leasing Dlala Holding Qatar First Bank Film Distribution Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million) QNB Group Industries Qatar Masraf Al Rayan Ezdan Real Estate Barwa Real Estate 0.0 Ezdan Real Estate Vodafone Qatar Aamal Qatar First Bank Masraf Al Rayan Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million) 100% 80% 60% 21.73% 17.99% 10.84% 11.63% 22.90% 31.88% Non-Qatari % 20% 35.56% 47.49% (47) Qatari 1,132 0% Buy Sell 1,084 Qatari Individuals Non-Qatari Individuals Qatari Institutions Non-Qatari Institutions (200) ,000 1,200 Net Investment Total Sold Total Bought Page 6 of 9

7 TECHNICAL ANALYSIS OF THE QSE INDEX Source: Bloomberg The Index closed in the green and gained 2.17% in the past week. As we have mentioned in previous published opinion, the break above the 21SMA was positive and bullish on the general Index; this uptick may continue further. We elevate our expected support level to 10,500 and keep the resistance at the 11,500 level. 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 7 of 9

8 Company Name Source: Bloomberg Price (January 19) % Change WTD % Change YTD Market Cap. QR Million TTM P/E P/B Div. Yield Qatar National Bank , Qatar Islamic Bank , Commercial Bank of Qatar (1.23) (0.77) 10, Doha Bank , Al Ahli Bank (1.28) 7, Qatar International Islamic Bank , Masraf Al Rayan , Al Khalij Commercial Bank (1.30) (1.94) 6, Qatar First Bank (1.37) (2.33) 2,012 N/A 1.0 N/A National Leasing (4.18) N/A Dlala Holding (1.72) N/A 2.4 N/A Qatar & Oman Investment Islamic Holding Group (0.32) Banking and Financial Services 245,402 Zad Holding (5.83) 1, Qatar German Co. for Medical Devices N/A 1.2 N/A Salam International Investment , Medicare Group , Qatar Cinema & Film Distribution (6.80) Qatar Fuel , Widam Food Co , Mannai Corp , Al Meera Consumer Goods , Consumer Goods and Services 28,147 Qatar Industrial Manufacturing , Qatar National Cement (0.34) , Industries Qatar , Qatari Investors Group (0.68) (0.85) 7, Qatar Electricity and Water , Aamal , N/A Gulf International Services (1.26) , Mesaieed Petrochemical Holding (0.38) (1.46) 19, Industrials 149,101 Qatar Insurance (0.11) , Doha Insurance (1.10) Qatar General Insurance & Reinsurance (8.32) (9.68) 3, Al Khaleej Takaful Insurance (0.90) Qatar Islamic Insurance Insurance 27,364 United Development , Barw a Real Estate , Ezdan Real Estate , Mazaya Qatar Real Estate Development (1.22) , N/A Real Estate 66,093 Ooredoo , Vodafone Qatar ,116 N/A 1.7 N/A Telecoms 42,294 Qatar Navigation (Milaha) (1.28) (3.24) 10, Gulf Warehousing , Qatar Gas Transport (Nakilat) , Transportation 27,496 Qatar Exchange 585,897 Page 8 of 9

9 Contacts Saugata Sarkar 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 QNB SAQ ( QNB ). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange QNB SAQ 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 9 of 9