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1 QSE Intra-Day Movement 9,200 9,100 9,000 8,900 8,800 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined 2.4% to close at 8, Losses were led by the Insurance and Transportation indices, falling 4.4% and 3.3%, respectively. Top losers were Doha Insurance Group and Qatar Insurance Company, falling 7.4% and 6.2%, respectively. Among the top gainers, Islamic Holding Group gained 2.5%, while Zad Holding Company was up 1.9%. GCC Commentary Saudi Arabia: The TASI Index fell 1.3% to close at 8, Losses were led by the Comm. & Prof. Svc and Food & Staples indices, falling 2.5% and 2.3%, respectively. Banque Saudi Fransi declined 4.3%, while Saudi British Bank was down 4.0%. Dubai: The DFM General Index declined 0.6% to close at 2, The Investment & Fin. Services index fell 1.2%, while the Services index declined 1.1%. Takaful Emarat fell 4.8%, while DAMAC Properties Dubai Co. was down 3.8%. Abu Dhabi: The ADX General Index fell 0.2% to close at 4, The Investment & Fin. Services index declined 1.0%, while the Banks index fell 0.9%. Union Insurance Co. declined 9.5%, while Sharjah Group Co. was down 8.7%. Kuwait: The Kuwait Main Market Index fell 0.2% to close at 4, The Insurance index declined 1.6%, while the Consumer Services index fell 0.7%. Energy House Holding Co. fell 5.4%, while Specialities Group Holding Co. was down 4.8%. Oman: The MSM 30 Index rose 0.1% to close at 4, The Services index gained 0.1%, while the other indices ended in red. Ooredoo rose 1.2%, while Renaissance Services was up 0.5%. Bahrain: The BHB Index fell 0.5% to close at 1, The Investment index declined 1.7%, while the Commercial Banks index fell 0.3%. United Gulf Holding Company declined 9.9%, while Ithmaar Holding was down 4.8%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Islamic Holding Group (24.8) Zad Holding Company Qatar Fuel Company United Development Company (1.3) Barwa Real Estate Company Market Indicators 20 June June 18 %Chg. Value Traded (QR mn) ,482.5 (84.1) Exch. Market Cap. (QR mn) 487, ,544.8 (2.5) Volume (mn) (76.5) Number of Transactions 5,779 9,193 (37.1) Companies Traded Market Breadth 8:32 20:18 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 15, (2.4) (2.4) All Share Index 2, (2.4) (2.4) Banks 3, (3.3) (3.3) Industrials 2, (1.6) (1.6) Transportation 1, (3.3) (3.3) Real Estate 1, (0.7) (0.7) (16.5) 13.9 Insurance 3, (4.4) (4.4) (13.0) 25.7 Telecoms (2.3) (2.3) (12.0) 28.9 Consumer 5, Al Rayan Islamic Index 3, (1.4) (1.4) GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% GFH Financial Group Dubai ,172.7 (3.3) Co. for Cooperative Ins. Saudi Arabia (23.7) Yanbu Cement Co. Saudi Arabia (20.5) Emirates Telecom. Group Abu Dhabi ,057.7 (7.4) Bupa Arabia for Coop. Ins. Saudi Arabia (3.4) GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Qatar Insurance Co. Qatar (6.2) (22.6) The Commercial Bank Qatar (5.8) Qatar Electricity & Water Qatar (4.5) QNB Group Qatar (4.4) 1, Banque Saudi Fransi Saudi Arabia (4.3) (# 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 (7.4) 0.2 (14.0) Qatar Insurance Company (6.2) (22.6) The Commercial Bank (5.8) Qatar Electricity & Water Co (4.5) QNB Group (4.4) 1, QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Masraf Al Rayan (1.4) 1,196.6 (9.9) QNB Group (4.4) 1, Ezdan Holding Group 8.30 (2.2) (31.3) Qatar Gas Transport Company Ltd (3.6) (2.4) Mazaya Qatar Real Estate Dev (0.1) (23.4) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group (4.4) 153, Masraf Al Rayan (1.4) 40,564.3 (9.9) Industries Qatar (0.8) 34, Qatar Electricity & Water Co (4.5) 34, Qatar Islamic Bank (1.7) 25, (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 8, (2.4) (2.4) , Dubai 2, (0.6) (3.8) (1.4) (13.3) , Abu Dhabi 4, (0.2) (3.5) (1.2) , Saudi Arabia 8, (1.3) (1.3) , Kuwait 4, (0.2) (0.5) 0.8 (2.9) , Oman 4, (0.1) (0.3) (9.9) , Bahrain 1, (0.5) (0.5) 2.8 (2.3) , , 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 2.4% to close at 8, The Insurance and Transportation indices led the losses. The index fell on the back of selling pressure from non-qatari shareholders despite buying support from Qatari and GCC shareholders. Doha Insurance Group and Qatar Insurance Company were the top losers, falling 7.4% and 6.2%, respectively. Among the top gainers, Islamic Holding Group gained 2.5%, while Zad Holding Company was up 1.9%. Volume of shares traded on Wednesday fell by 76.5% to 7.5mn from 32.2mn on previous Thursday. Further, as compared to the 30-day moving average of 12.0mn, volume for the day was 37.3% lower. Masraf Al Rayan and QNB Group were the most active stocks, contributing 15.9% and 13.3% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 27.29% 16.75% 41,477, Qatari Institutions 10.63% 18.61% (31,410,331.49) Qatari 37.92% 35.36% 10,067, GCC Individuals 0.28% 0.20% 319, GCC Institutions 2.13% 1.20% 3,664, GCC 2.41% 1.40% 3,984, Non-Qatari Individuals 6.24% 4.85% 5,493, Non-Qatari Institutions 53.43% 58.39% (19,545,157.78) Non-Qatari 59.67% 63.24% (14,051,875.07) Source: Qatar Stock Exchange (* as a % of traded value) Ratings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Mashreqbank CI Dubai FSR/FLT A-/A- A/A Stable Source: News reports (* LT Long Term, ST Short Term, FSR- Financial Strength Rating, FLT Foreign Long Term, LCR Local Currency Rating, IDR Issuer Default Rating, SR Support Rating) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 06/20 US Mortgage Bankers Association MBA Mortgage Applications 15-Jun 5.1% -1.5% 06/20 Germany German Federal Statistical Office PPI YoY May 2.7% 2.5% 2.0% 06/20 Germany German Federal Statistical Office PPI MoM May 0.5% 0.4% 0.5% (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar Barwa Bank and International Bank of Qatar in advanced merger talks Qatari lenders Barwa Bank and International Bank of Qatar are in advanced talks to merge after discussions for a three-way merger with Masraf Al Rayan collapsed last week. The proposed merger between the two banks could be announced as early as next week, according to sources. The value of the transaction was not immediately available. The two banks had total assets of QR81.7bn at the end of last year, according to their financial reports. (Peninsula Qatar) QSE to launch new incentives for local and global investors Qatar Stock Exchange (QSE) is poised to launch new investment incentives after a series of steps taken this year aimed at developing its systems, making it a platform for attracting local and international investments. These steps have contributed to the increase in demand of local and international entities to invest in the world s largest emerging market listed in the global indices in the region, and the second largest exchange in the Middle East in terms of capital. The latest steps that have been taken in this regard is the launch by the QSE of two investment funds for the first time in its history, at a time when it plans to launch a market for trading shares of small and medium enterprises (SMEs) during 2H2018. (Gulf- QSE to create an incubator to boost family biz Qatar Stock Exchange (QSE) in its quest to establish a market for emerging small and medium-sized companies, is working to create an incubator to achieve sustainability and growth of family businesses, according to QSE s CEO, Rashid Al Mansoori. He stressed the readiness of the QSE to provide all the capabilities available to family businesses. The importance of listing private and family companies on the QSE, he added, stems from the economic influence of these companies in large number of vital sectors in Qatar. Mansoori said, The transformation of family companies into public shareholding companies boosts the effectiveness of the economy in general, which reflects positively on the local economy through the establishment of standards and regulations for family businesses that represent a real addition to the national economy. The new corporate listings are another element that makes the stock exchange more attractive for investment. QSE has already supported the plans of companies that want to be listed, two companies are expected to be listed in the QSE before the end of this year, Mansoori added. (Qatar Tribune) QSE listed firms trading value increase by 76.19% MoM to reach QR10.7bn in May The cash dividends of the Qatar Stock Exchange s (QSE) listed firms rose 20% for the period ended March 31, According to the data published on the QSE, the dividends total value reached QR23.3bn in the previous Page 2 of 5

3 year, while profits of the QSE-listed companies were up by 1.1% to QR38.56bn in 2017 compared to QR38.13bn in The data from the local bourse stated the profits of the listed companies for the fiscal year ending on March 31, 2018 was up 2.5% to QR10.9bn compared to QR10.6bn in the same period in The data showed that the trading value in May 2018 increased by 76.19% to reach QR10.7bn compared to QR6.07bn in April The trading volume increased by 6.75% to mn shares, as against mn shares, while the number of transactions rose by 31.41% to 107,738 transactions, compared to 81,989 transactions in April The banks and financial services sector led trading value in May 2018, accounting for 59.88% of the total trading value, followed by industries (19.37%), transportation (6.51%), telecom (6.26%), consumer goods and services (3.92%), real estate (2.67%), and insurance (1.39%). On market capitalization, the data noted that it fell by 3.46% at the end of May 2018 to QR491.7bn as compared to QR509.3bn at the end of April (Qatar Tribune) Digital governance among key enablers of future banking The future of the banking industry rests on two key enablers, digital governance and sustainable development, according to Doha Bank s CEO, R Seetharaman, who was honored recently with the EU Business School Leadership Award. Seetharaman said, The key areas that require attention by leaders include realignment of business model in accordance with structural changes in environment, building strong corporate image, sustaining growth, grooming people for global environment, leveraging technology, giving back to society, and managing stakeholder expectations. (Gulf- Retail accommodation supply jumps by 200% since 2010 The supply of organized retail accommodation increased by more than 200% since 2010, with the total supply of organized retail surpassing 1.39mn square meters following the recent opening of Tawar Mall in Umm Lekhba, according to a latest report released by Cityscape Qatar. With the completion of the upcoming commercial projects and new malls, such as Doha Mall, Katara Mall, Northgate Mall, and La Gallaria, will be adding more retail space to the existing supply to meet the growing demand. (Peninsula Qatar) Qatar-Portugal ties to get a further fillip with the Amir s visit The expected state visit of HH the Amir Sheikh Tamim Bin Hamad Al Thani to Portugal is seen to further advance bilateral and economic relations between Qatar and Portugal, Ambassador Antonio Tanger said. The presence of His Highness the Amir in Portugal would give a big visibility to Qatar s relationship with Portugal and vice-versa. It will be very important for Qataris to know about the opportunities Portugal has to offer, and for the Portuguese to have a better and stronger relationship with Qatar, the Ambassador said. The embassy will continue with the previous initiatives it had implemented in terms of increasing imports and exports between Qatar and Portugal. Portugal recorded 30% growth in its exports to Qatar in the first two months of (Gulf- International US current account deficit widens to 2.5% of GDP The US current account deficit widened in the first quarter, driven by increases in goods imports, the Commerce Department stated in a report that also showed US firms paid more than $300bn in dividends from repatriated earnings. The Commerce Department stated the current account deficit, which measures the flow of goods, services and investments into and out of the country, widened by $8.0bn to $124.1bn, or 2.5% of national economic output, in the first three months of the year. Analysts polled by Reuters had expected the current account deficit to widen to $129.0bn from the previously reported $128.2bn in the fourth quarter. (Reuters) MBA: US mortgage applications rise most since January US mortgage applications increased the most last week in more than five months, as some 30-year home loan borrowing costs held steady or fell from the prior week, according to the Mortgage Bankers Association (MBA). Domestic home sales and construction have remained resilient this year despite higher mortgage rates, more expensive lumber and shortages of land and labor. US housing starts neared an 11-year peak in May at an annualized pace of 1.350mn units, while building permits fell 4.6%, the Commerce Department stated. MBA stated its seasonally adjusted index on filings for home loans rose to in the week ended June 15. This was up 5.1% from a week ago, marking the largest percentage gain since 8.3% jump in the week of January 5. (Reuters) US home sales stumble as prices hit record high US home sales unexpectedly fell for the second straight month in May as an acute shortage of properties on the market pushed house prices to a record high. The sales decline, which was reported by the National Association of Realtors (NAR), indicated the housing market was continuing to lag a strong economy and would likely not contribute to growth in the second quarter. Existing home sales slipped 0.4% to a seasonally adjusted annual rate of 5.43mn units last month. Economists polled by Reuters had forecast existing home sales rising 1.5% to a rate of 5.52mn units in May. (Reuters) UK s industrial orders jump in June British manufacturers reported increase in industrial orders this month after a largely sluggish start to 2018, and inflation pressures eased, industry data showed, potentially easing Bank of England concerns about an economic slowdown. Factory output recorded its biggest monthly fall since 2012 in April, according to earlier official figures, raising the prospect that the economy s nearstagnation in the first three months of 2018 reflected more than just unusually icy weather. Since then, business surveys have pointed to an upturn among manufacturers, and this gathered strength in June s industrial orders data from the Confederation of British Industry (CBI). The CBI s monthly orders balance jumped to +13 this month from -3 in May, its highest since January and well above all forecasts in a Reuters poll. (Reuters) Greece s current account deficit widens in April, tourism revenues flat Greece s current account deficit widened in April compared to the same month a year earlier on the back of a larger trade gap and a smaller services balance surplus, according to the Bank of Greece. Central bank s data showed the deficit at 1.344bn Euros from a deficit of 0.506bn Euros in April Tourism revenues edged higher to 490mn Euros from 485mn in the same month a year earlier. The rise in the balance of goods deficit by 503mn Euros is mainly attributable to the higher net oil import bill. Central bank stated that Page 3 of 5

4 excluding oil, the trade gap showed a small increase of 73mn Euros as imports increased in absolute terms more than exports. A contraction in the services surplus was due to lower net receipts, mainly from travel services, despite 9.6% rise in arrivals. (Reuters) Regional Privatization drive to kick-start Middle East s IPO activity in 2H2018 Middle East s IPO activity slowed in 1H2018 with geopolitics weighing on the IPOs, according to a Baker McKenzie report. Overall (domestic and cross-border) IPO activity in the Middle East has gone off to a slow start, with capital raising amounting to only $263mn from six IPOs in 1H2018. In comparison, 1H2017 had seen $872mn from some 13 deals and $639mn from three deals in 1H2016. Despite the slow start in 1H2018, IPO activity is expected to start to pick up in 2H2018 as a result of the privatization drive in the region, which will lead to the listing of government and quasigovernment enterprises, the Baker McKenzie report noted. (Gulf- Global Sukuk issuance declines on reduced financing needs in GCC The GCC is witnessing reduced financing needs, thus leading to a significant slowdown in global issuance of Sukuks or Islamic debts, according to Standard and Poor s (S&P). Total global Sukuk issuance dropped 15.3% YoY to $44.2bn in 1H2018 with the decline being even more pronounced for foreign currency Sukuk issuance at 45%, S&P stated in a report. (Gulf- Wind and solar technologies to push MENA s electricity mix to 50% by 2050 Wind and solar technologies will push the MENA region s electricity mix to 50% by 2050, according to a study. In the MENA, solar and wind will eventually undercut cheap domestic gas and oil, and together with new nuclear plants, push the region s electricity mix to 50% zero-carbon by 2050, stated New Energy Outlook 2018 by Bloomberg. We move from 2/3 fossil fuels in 2017 to 2/3 renewable energy by 2050, the report stated, adding for wind and solar that s 50-by-50. (Gulf- Franklin Templeton funds become QFI in Saudi Arabia Franklin Templeton funds recently became Qualified Foreign Investors (QFI) in Saudi Arabia. This will allow the funds to invest directly in Saudi Arabia s stock market. With several funds having already obtained QFI status, applications for other funds are also currently under review. (GulfBase.com) CBUAE announces new caps on banking fees Central Bank of the UAE (CBUAE) published an amendment to Annexure 2 of the Regulations Regarding Bank Loans and Services Offered to Individual Customers (2011). The amendment sets out the new maximum limits or fee caps for fees or commissions charged on retail customer service. The fee caps apply to banking consumer related charges for example, home loans and late fees for credit cards. This update comes as CBUAE is undertaking more active supervision of the banking sector with the adoption of consumer protection principles, competition inhibiting, usury, notary function, and strategic related principles. Furthermore, banks and finance companies must have the appropriate product approval processes in place for all products which include an examination of the basis and appropriateness of the fee calculation and, if applicable charge lower fees than those prescribed in the caps. (GulfBase.com) Fitch: Abu Dhabi stimulus confirms fiscal adjustment is over Abu Dhabi s new economic stimulus program will have limited sovereign credit impact given the sovereign s strong balance sheet and low fiscal break-even oil price, Fitch Ratings stated. However, it highlights the winding down of fiscal adjustment and suggests that the fiscal policy-making framework has seen little improvement during the period of low oil prices, despite sharp spending cuts and increases in non-oil revenue. (GulfBase.com) Bahrain s non-oil growth to hit 4.6% over Bahrain s non-oil growth is expected to average 4.6% over , underpinned by government infrastructure spending on a record $8bn worth of projects, noted National Bank of Kuwait (NBK) in its Economic Update. Capital spending spans a variety of projects in transportation, water and power, and housing sectors, the report added. Due to continued output gains in the non-oil sector, real GDP growth accelerated in 2017 to 3.9% from 3.2% in (GulfBase.com) Bank ABC wins CBB nod for share price liquidity Bank ABC obtained approval from the Central Bank of Bahrain (CBB) to appoint a market maker for enhancing the liquidity of its share trading on the Bahrain Bourse. This arrangement was also approved by the shareholders during Bank ABC s Ordinary General Assembly meeting held in March. To achieve this goal, Bank ABC has appointed as of June 20 the Securities and Investment Company (SICO) as the designated market maker with respect to the bank s ordinary shares listed on the Bahrain Bourse. (GulfBase.com) Page 4 of 5

5 Rebased Performance Daily Index Performance % 0.0% (1.0%) (2.0%) (1.3%) (0.2%) (0.5%) 0.1% (0.2%) (0.6%) (3.0%) (2.4%) 40.0 May-14 May-15 May-16 May-17 May-18 QSE Index S&P Pan Arab S&P GCC Saudi Arabia Qatar Kuwait Bahrain Oman Abu Dhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (0.5) (0.9) (2.7) MSCI World Index 2, (0.8) 0.7 Silver/Ounce (0.1) (1.7) (3.9) DJ Industrial 24, (0.2) (1.7) (0.2) Crude Oil (Brent)/Barrel (FM Future) (0.5) S&P 500 2, (0.4) 3.5 Crude Oil (WTI)/Barrel (FM Future) NASDAQ 100 7, Natural Gas (Henry Hub)/MMBtu (2.0) (4.2) STOXX (1.4) (4.8) LPG Propane (Arab Gulf)/Ton (0.4) (0.6) (13.9) DAX 12, (2.6) (5.3) LPG Butane (Arab Gulf)/Ton (0.1) (14.4) FTSE 100 7, (0.7) (3.2) Euro 1.16 (0.2) (0.3) (3.6) CAC 40 5, (0.2) (2.5) (2.5) Yen (0.3) (2.1) Nikkei 22, (0.9) 1.2 GBP 1.32 (0.0) (0.8) (2.5) MSCI EM 1, (1.8) (5.6) CHF 1.00 (0.2) 0.1 (2.2) SHANGHAI SE Composite 2, (4.5) (11.6) AUD 0.74 (0.2) (1.0) (5.6) HANG SENG 29, (2.0) (1.2) USD Index BSE SENSEX 35, (0.0) (2.1) RUB (0.3) Bovespa 72, (16.7) BRL 0.27 (0.7) (1.1) (12.2) RTS 1, (3.1) (*$ 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) 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 5 of 5