Week ended Jan 24, Week ended Jan 17, Market Indicators. Chg. %

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1 ` Market Review and Outlook The Qatar Stock Exchange (QSE) Index declined points or 0.70% during the trading week to close at 10, Market capitalization decreased by 0.17% to QR615.9 billion (bn) versus QR616.9bn at the end of the previous trading week. Of the 46 listed companies traded, 12 companies ended the week higher, while 33 declined and 1 remained unchanged. Qatar National Cement Co. (QNCD) was the best performing stock for the week with a gain of 9.1% on a trading volume of 295,112 shares. On the other hand, Zad Holding (ZHCD) was the worst performing stock for the week with a decline of 8.2% on 23,405 shares traded only. Qatar Gas Transport Co. (QGTS), Masraf Al Rayan (MARK) and Industries Qatar (IQCD) were the primary contributors to the weekly index loss. QGTS was the biggest contributor to the index s weekly loss, deleting 23.7 points from the index. MARK was the second biggest contributor to the mentioned loss, removing 22.9 points from the index. Moreover, IQCD erased 13.6 points from the index. On the other hand, Qatar Fuel Co. (QFLS) added 5.1 points to the index. Trading value during the week decreased by 20.6% to QR1.15bn versus QR1.45bn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 44.7% of the total trading value. The Industrials sector was the second biggest contributor to the overall trading value, accounting for 23.6% of the total. QNB Group (QNBK) was the top value traded stock during the week with total traded value of QR188.2 million (mn). Trading volume decreased by 20.6% to reach 39.1mn shares versus 49.2mn shares in the prior week. The number of transactions decreased by 24.1% to 25,624 transactions versus 33,745 transactions in the prior week. The Banks and Financial Services sector led the trading volume, accounting for 42.1%, followed by the Industrials sector which accounted for 28.0% of the overall trading volume. Qatar First Bank (QFBQ) was the top volume traded stock during the week with 5.9mn shares. Foreign institutions remained bullish with net buying of QR235.1mn vs. net buying of QR310mn in the prior week. Qatari institutions turned negative with net selling of QR7.2mn vs. net buying of QR22.3mn in the week before. Foreign retail investors remained bearish with net selling of QR3.6mn vs. net selling of QR10.4mn in the prior week. Qatari retail investors remained bearish with net selling of QR224.3mn vs. net selling of QR321.6mn the week before. Foreign institutions have bought (net basis) ~$200mn worth of Qatari equities in QSE Index and Volume 10,900 10,650 10,400 Market Indicators Week ended Jan 24, 2019 Week ended Jan 17, 2019 Chg. % Value Traded (QR mn) 1, ,452.3 (20.6) Exch. Market Cap. (QR mn) 615, ,904.8 (0.2) Volume (mn) (20.6) Number of Transactions 25,624 33,745 (24.1) Companies Traded Market Breadth 12:33 24:19 Market Indices Close WTD% MTD% YTD% Total Return 18, (0.7) ALL Share Index 3, (0.2) Banks and Financial Services 3, (0.4) Industrials 3, (0.7) Transportation 2, (3.1) Real Estate 2, Insurance 3, (0.6) Telecoms 1, (1.0) Consumer Goods & Services 7, (0.4) Al Rayan Islamic Index 4, (1.0) Market Indices Weekly Index Performance 3.0% 2.0% 1.0% 0.0% (1.0%) (2.0%) 10, , , , Jan 21-Jan 22-Jan 23-Jan 24-Jan 2.5% Bahrain 0.7% 0.2% Abu Dhabi Saudi Arabia# Volume QSE Index (0.1%) (0.3%) Dubai Kuwait (0.7%) Qatar (QSE)* 10, (1.3%) Oman 9,000,000 4,500,000 0 Regional Indices Close WTD% MTD% YTD% Weekly Exchange Traded Value ($ mn) Exchange Mkt. Cap. ($ mn) TTM P/E** P/B** Dividend Yield Qatar (QSE)* 10, (0.7) , Dubai 2, (0.1) (0.6) (0.6) ,360.1 # Abu Dhabi 5, , Saudi Arabia # 8, , , Kuwait 4, (0.3) , Oman 4, (1.3) (3.3) (3.3) , 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 23, 2019) Page 1 of 6

2 News Economic & Corporate News MARK posts ~7% YoY increase (~12% QoQ decline) in net profit in 4Q2018, in-line with our estimate; Announces DPS QR2.00 Masraf Al Rayan's (MARK) net profit rose ~7% YoY (but declined ~12% on QoQ basis) to ~QR498mn in 4Q2018, in line with our estimate of QR497mn. EPS increased to QR2.841 in FY2018 from QR2.704 in FY2017. In FY2018, MARK posted a net profit of QR2.13bn as compared to QR2.03bn in FY2017. The bank s board of directors recommended a cash dividend distribution of QR2 per share, in line with our estimate. MARK s CEO, Adel Mustafawi said that the results achieved were decent with the increase in net profit. He said the bank s total assets reached QR97.2bn in December 2018 compared to QR102.9bn in December Financing activities reached QR72.1bn in end-2018 compared to QR72bn in December last year, while investments amounted to QR19.5bn compared to QR23.9bn. Customers' deposits totaled QR61.5bn in end-2018 compared to QR62.5bn in December Shareholders' equity before distribution reached QR13.2bn compared to QR13.1bn in December MARK stated its return on average assets continues to be one of the highest in the market at 2.13%. Return on average shareholders' equity of the bank, before distribution, was 16.1%. Book value per share, before distribution was QR17.7 compared to QR17.59 in December Capital adequacy ratio reached 19.23% compared to 19.32% in Non-performing financing (NPF) analogous to non-performing loans ratio of 0.83% continues to be one of the lowest in the banking industry, reflecting very strong and prudent credit risk management policies and procedures. Moody's Global Investors Services has reaffirmed the outlook for MARK at Stable, and therefore, the current rating of MARK is A1 / Prime-1 with a Stable outlook. This rating reflects the bank s strong government-linked position in Qatar, its ability to diversify sources of income, stability in asset quality and a low NPF ratio. (QNBFS Research, QSE, Gulf- Times.com) KCBK's bottom line rises 43.4% YoY and 3.7% QoQ in 4Q2018, in-line with our estimate; DPS 0.75/sh., in-line with our estimate Al Khalij Commercial Bank's (KCBK) net profit rose 43.4% YoY (+3.7% QoQ) to QR139.0mn in 4Q2018, in line with our estimate of QR139.6mn. Net interest income decreased 6.5% YoY and 0.4% QoQ to QR218.3mn in 4Q2018. The company's net operating income came in at QR256.6mn in 4Q2018, which represented a decrease of 9.5% YoY and 4.8% QoQ. The bank's total assets stood at QR52.1bn at the end of December 31, 2018, down 10.0% YoY and 2.8% QoQ. Loans and advances to customers at the end of December 31, 2018 were QR31.3bn, registering a decline of 10.8% YoY and 4.4% QoQ. Customer deposits fell 12.5% YoY and 9.5% QoQ to reach QR28.6bn at the end of December 31, EPS increased to QR1.54 in FY2018 from QR1.38 in FY2017. In FY2018, higher net fee and commission earnings as well as lower operating expenses and impairments helped KCBK to report more than 10% YoY growth in net profit to QR608.4mn in FY2018; the bank has recommended 0.75 cash dividend to shareholders. KCBK s Chairman and Managing Director, Sheikh Hamad bin Faisal bin Thani Al-Thani said, Despite all the challenges, the bank s strategy and successful business model have enabled us, once again, to deliver strong results. We continue to be well positioned to benefit from the economic expansion in Qatar that will remain robust and we look forward to a very successful KCBK s CEO, Fahad Al-Khalifa said the robust performance was the result of better balance sheet management, focusing on improving margins, containing cost of funding, maintaining cost efficiency and strengthening the capital and funding positions. Net fee and commission income was QR189.7mn, registering an increase of 4% over last year, the bank stated. These results reflect our strategy of continuing to invest in the local economy, and supporting our local clients while we continue to grow our franchise in Qatar. We have divested non-core overseas assets; therefore, although the total average asset base of the bank reduced, our operating income as a percentage of total average assets increased, Al-Khalifa said. During FY2018, the bank continued to review its cost base, thereby reducing the group's operating costs to QR329mn to deliver an efficiency ratio of 28.8%. We also successfully raised $500mn under the banks Euro medium term note program, further strengthening our funding position. The issue was oversubscribed by more than three times and tightly priced, exhibiting the faith of debt investors in the bank s performance and direction, and the underlying strength of the Qatari banking sector. This will support long-term growth, he said. The lender's liquidity coverage ratio and capital adequacy ratio remain well above the minimum levels required by the Qatar Central Bank. Its balance sheet remains strong and liquid with 30% of total assets comprising cash and high quality investment securities. The bank was able to bring down non-performing loans ratio to 1.88% in 2018 from 1.94% in the previous year. (QNBFS Research, QSE, Gulf-Times.com) QNCD's bottom line rises ~53% YoY and ~156% QoQ in 4Q2018 Qatar National Cement s (QNCD) net profit rose ~53% YoY (~+156% QoQ) to ~QR129mn in 4Q2018. In FY2018, QNCD reported net profit of QR347.8mn as compared to QR326.9mn in FY2017. EPS increased to QR5.32 in FY2018 from QR5.00 in FY2017. The board of directors recommended a distribution of 50% of the share capital as cash dividend to the shareholders for FY2018, which amounts to QR5 for each share held. (QSE) N-KOM welcomes the first FSRU at the Erhama Bin Jaber Al Jalahma Shipyard Nakilat-Keppel Offshore & Marine (N- KOM) has recently received its first floating storage regasification unit (FSRU) project at the Erhama Bin Jaber Al Jalahma Shipyard. The FSRU owned by Excelerate Energy (USA) will undergo dry-docking, maintenance and upgrades at the facility, which is renowned for its expertise in handling gas carriers. During its dry-docking, the FSRU will undergo several modifications and retrofitting of new systems, including the installation of a ballast water treatment system (BWTS). Till date, N-KOM has completed six such BWTS installations for various types of vessels such as LNG and LPG vessels as well as very large crude carriers (VLCCs). (Qatar Tribune) Page 2 of 6

3 Qatar Stock Exchange Top Gainers 12.0% Top Decliners 0.0% 8.0% 9.1% 8.8% 6.5% -3.0% 4.0% 5.0% 3.7% -6.0% -5.7% -4.7% 0.0% Qatar National Cement Al Khaleej Takaful Insurance Co. Qatar Oman Investment Co. Ahli Bank Ezdan Holding Group -9.0% -8.2% Zad Holding -7.8% Qatar Cinema & Film Distribution Co. -7.2% Qatari German Co. for Medical Dev. Qatar Gas Transport Co. Ltd. Aamal Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million) QNB Group Industries Qatar Masraf Al Rayan Qatar Fuel Qatar Aluminium Manufacturing 0.0 Qatar First Bank Qatar Aluminium Manufacturing Doha Bank Masraf Al Rayan United Development Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million) 100% 80% 49.89% 29.50% 9.95% Non-Qatari % 9.63% 13.69% 40% 13.07% 46.86% (232) 20% 27.41% Qatari 698 0% Buy Sell 467 Qatari Individuals Qatari Institutions (400) (200) Non-Qatari Individuals Non-Qatari Institutions Net Investment Total Sold Total Bought Page 3 of 6

4 TECHNICAL ANALYSIS OF THE QSE INDEX Source: Bloomberg The General Index closed slightly lower by 0.7% from last week and closed at 10, points. It has been moving towards the 11,000 resistance level. We remind our readers that the rising-wedge price formation would become an issue if it is breached downwards. We maintain our expected weekly support level to 10,000 points, and the resistance at the 11,000 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 4 of 6

5 Name Price January 24 % Change WTD % Change YTD Market Cap. QR Million TTM P/E P/B Div. Yield Qatar National Bank , Qatar Islamic Bank (0.50) , Commercial Bank of Qatar , Doha Bank (0.14) 6, Al Ahli Bank , Qatar International Islamic Bank (1.70) , Masraf Al Rayan (2.19) (2.35) 30, Al Khaliji Bank (1.35) , Qatar First Bank 4.13 (0.96) N/A 0.8 N/A National Leasing Dlala Holding (1.48) N/A 1.3 N/A Qatar & Oman Investment Islamic Holding Group (2.82) (2.15) 121 N/A 0.9 N/A Banking and Financial Services 298,234 Zad Holding (8.16) , Qatar German Co. for Medical Devices 5.90 (7.23) N/A 1.4 N/A Salam International Investment 5.00 (1.77) N/A 0.4 N/A Medicare Group (0.76) , Qatar Cinema & Film Distribution (7.83) (7.83) Qatar Fuel , Qatar Meat and Livestock (2.04) , Mannai Corp , Al Meera Consumer Goods (1.89) , Consumer Goods and Services 29,004 Qatar Industrial Manufacturing , Qatar National Cement , Industries Qatar (0.81) , Qatari Investors Group (1.41) , Qatar Electricity and Water (0.54) , Aamal 9.50 (4.71) , Gulf International Services (3.04) (4.18) 3, N/A Mesaieed Petrochemical Holding (0.06) , Invesment Holding Group 5.18 (2.26) Qatar Aluminum Manufacturing (2.62) (8.24) 6,836 N/A N/A N/A Industrials 155,854 Qatar Insurance (0.03) , Doha Insurance (3.20) (7.56) Qatar General Insurance & Reinsurance (2.19) , Al Khaleej Takaful Insurance Qatar Islamic Insurance (1.75) Insurance 18,523 United Development (0.37) , Barw a Real Estate , Ezdan Real Estate , N/A Mazaya Qatar Real Estate Development 7.58 (2.45) (2.82) N/A Real Estate 62,166 Ooredoo (0.30) , Vodafone Qatar 8.12 (2.17) , N/A Telecoms 31,135 Qatar Navigation (Milaha) (0.01) , Gulf Warehousing (0.53) , Qatar Gas Transport (Nakilat) (5.73) , Transportation 20,951 Qatar Exchange 615,868 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) 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 6 of 6