9,100 9,050 9,000 8,950 8,900 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Transcription

1 QSE Intra-Day Movement 9,100 9,050 9,000 8,950 8,900 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined 1.5% to close at 8, Losses were led by the Consumer Goods & Services and Industrials indices, falling 1.8% and 1.7%, respectively. Top losers were Qatar Cinema & Film Distribution Co. and Al Khaleej Takaful Group, falling 9.6% and 7.6%, respectively. Among the top gainers, Qatar Islamic Insurance Co. rose 1.8%, while Widam Food Co. was up 0.7%. GCC Commentary Saudi Arabia: The TASI Index fell 1.3% to close at 6, Losses were led by the Banks and Food & Staples Retailing indices, falling 2.2% and 2.1%, respectively. Samba Financial Group and Saudi British Bank were down 4.8% each. Dubai: The DFM Index declined 0.2% to close at 3, The Insurance index fell 0.7%, while the Real Estate & Construction index declined 0.5%. Takaful Emarat fell 3.8%, while Drake & Scull International was down 3.0%. Abu Dhabi: The ADX benchmark index fell 0.8% to close at 4, The Energy index declined 3.7%, while the Banks index fell 1.4%. United Arab Bank declined 6.7%, while Dana Gas Co. was down 4.4%. Kuwait: The KSE Index declined 0.7% to close at 6, The Consumer Services index fell 7.9%, while the Oil & Gas index declined 0.8%. Eyas for Higher & Technical Education fell 20.0%, while National Industries Co. was down 13.2%. Oman: The MSM Index fell 0.5% to close at 5, Losses were led by the Services and Financial indices, falling 0.5% and 0.4%, respectively. Al Batinah Power fell 6.7%, while United Finance was down 3.0%. : The BHB Index gained 0.2% to close at 1, The Commercial Banks index rose 0.5%, while other indices ended flat or in red. National Bank of rose 2.3%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Qatar Islamic Insurance Co Widam Food Co (15.1) Ezdan Holding Group ,082.5 (16.1) Mesaieed Petrochemical Holding (19.0) Market Indicators 20 Jun Jun 17 %Chg. Value Traded (QR mn) Exch. Market Cap. (QR mn) 483, ,997.7 (1.3) Volume (mn) Number of Transactions 2,885 3,217 (10.3) Companies Traded Market Breadth 4:35 7:26 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 14, (1.5) (3.5) (11.3) 14.7 All Share Index 2, (1.3) (2.9) (11.0) 13.2 Banks 2, (1.4) (3.7) (7.0) 11.7 Industrials 2, (1.7) (3.7) (16.2) 16.6 Transportation 1, (1.7) (0.4) (23.0) 11.6 Real Estate 2, (0.1) 0.8 (10.1) 12.8 Insurance 3, (1.3) (5.0) (10.5) 16.8 Telecoms 1, (1.4) (4.1) (8.8) 20.8 Consumer 5, (1.8) (2.8) (10.7) 11.7 Al Rayan Islamic Index 3, (1.3) (2.3) (7.8) 16.2 GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Tihama Adv. & Public Saudi Arabia ,585.5 (52.2) Nat. Bank of Umm. Abu Dhabi (6.5) Nat. Bank of National Ind. Co. Saudi Arabia ,615.9 (21.1) Agility Kuwait , GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% United Arab Bank Abu Dhabi 1.40 (6.7) (12.5) Samba Financial Group Saudi Arabia (4.8) (6.4) Saudi British Bank Saudi Arabia (4.8) 1,408.9 (2.8) Dana Gas Abu Dhabi 0.65 (4.4) 38, Sharjah Islamic Bank Abu Dhabi 1.32 (4.3) 17.9 (5.7) ( # in Local Currency) ( ## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity) QSE Top Losers Close* 1D% Vol. 000 YTD% Qatar Cinema & Film Distribution (9.6) 23.9 (7.8) Al Khaleej Takaful Group (7.6) 47.6 (19.4) Qatar Fuel (3.5) (20.3) Aamal Co (3.2) 1.2 (16.9) Qatar Oman Investment Co (2.6) 12.8 (10.6) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Ezdan Holding Group ,082.5 (16.1) Vodafone Qatar 8.42 (1.5) 2,144.2 (10.1) QNB Group (1.6) (14.9) Gulf International Services (34.4) Masraf Al Rayan (1.9) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group (1.6) 64,450.4 (14.9) Ezdan Holding Group ,396.9 (16.1) Industries Qatar (1.9) 22,460.6 (19.6) Masraf Al Rayan (1.9) 18, Vodafone Qatar 8.42 (1.5) 18,064.6 (10.1) (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 8, (1.5) (3.5) (9.8) (14.4) , Dubai 3, (0.2) (0.2) 3.4 (2.2) , Abu Dhabi 4, (0.8) (1.0) 0.6 (2.0) , Saudi Arabia 6, (1.3) (3.6) , Kuwait 6, (0.7) (0.4) (0.0) , Oman 5, (0.5) (1.0) (4.2) (10.2) , , (0.6) (0.0) , , Qatar Stock Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 5

2 Qatar Market Commentary The QSE Index declined 1.5% to close at 8, The Consumer Goods & Services and Industrials indices led the losses. The index fell on the back of selling pressure from GCC and non-qatari shareholders despite buying support from Qatari shareholders. Qatar Cinema & Film Distribution Co. and Al Khaleej Takaful Group were the top losers, falling 9.6% and 7.6%, respectively. Among the top gainers, Qatar Islamic Insurance Co. rose 1.8%, while Widam Food Co. was up 0.7%. Volume of shares traded on Tuesday rose by 10.1% to 9.7mn from 8.9mn on Monday. However, as compared to the 30-day moving average of 12.9mn, volume for the day was 24.7% lower. Ezdan Holding Group and Vodafone Qatar were the most active stocks, contributing 31.6% and 22.0% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 59.45% 47.51% 33,788, Qatari Institutions 18.44% 8.77% 27,351, Qatari 77.89% 56.28% 61,139, GCC Individuals 0.35% 5.77% (15,324,156.25) GCC Institutions 0.45% 7.80% (20,806,169.20) GCC 0.80% 13.57% (36,130,325.45) Non-Qatari Individuals 8.07% 7.58% 1,375, Non-Qatari Institutions 13.25% 22.57% (26,384,668.51) Non-Qatari 21.32% 30.15% (25,009,353.98) 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 Ahli United Bank Fitch BBK Fitch National Bank of Fitch BBB+/F2/bbb/2 BBB+/F2/bbb/2 Negative BB+/B/bb+/3 BB+/B/bb+/3 Negative BB+/B/bb+/3 BB+/B/bb+/3 Negative Source: News reports (* LT Long Term, ST Short Term, FSR- Financial Strength Rating, FCR Foreign Currency Rating, LCR Local Currency Rating, IDR Issuer Default Rating, SR Support Rating, LC Local Currency, VR Viability Rating) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 06/20 Germany German Federal Statistical Office PPI MoM May -0.2% -0.1% 0.4% 06/20 Germany German Federal Statistical Office PPI YoY May 2.8% 2.9% 3.4% (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar Mannai Corporation acquires additional stake in Gfi Informatique (Gfi) Following the announcement on May 11, 2017, Mannai Corporation, Apax France, Altamir and Boussard & Gavaudan, acting in concert and currently holding c. 95% of the share capital and voting rights of Gfi Informatique, announced that Mannai Corporation acquired from Apax France and Altamir, through an off-market transaction, 8,063,789 shares in Gfi Informatique at a price per share of 8.00, representing c. 12% of the share capital and voting rights of Gfi Informatique. (QSE) EY: Qatar s hospitality sector sees 61.8% occupancy in May Qatar s hospitality sector witnessed 61.8% occupancy in May this year, translating as $108 revenue per available room (RevPAR), according to Ernst and Young (EY). In the case of Manama, occupancy was 50.4% and RevPAR stood at $97 in May, EY said in its Middle East and North Africa (MENA) Hotel Benchmark report. In Saudi Arabia, Madina saw 57.6% occupancy and $104 RevPAR; Makkah 41% and $113, Riyadh 63.9% and $119 and Jeddah 80.2% and $247, it said. Jeddah, Makkah, and Madinah are expected to continue this strong trend due to Ramadan. As Eid alfitr is expected to fall on June 25, it is anticipated that certain touristic destinations across MENA will experience strong performance during the last week of June, according to Yousef Wahbah, MENA Head of Transaction Real Estate at Ernst and Young. (Gulf-Times.com) Qatar s ministry introduces industrial production index Qatar has introduced a new industrial production index (IPI), a shortterm quantitative index that measures the changes in the volume of production of a selected basket of industrial products over a given period with respect to a base period Qatar Petroleum and other entities in the hydrocarbons are the major and exclusive sources of data, being contacted periodically; either through direct visits or the electronic collection. Manufacturers of cement, iron and aluminium, and the petrochemical and petroleum refining companies are the sources in the manufacturing activity. International standards are taken into account and followed in the collection, calculation and dissemination of this index in line with the requirements of the system of national accounts, a Ministry of Development Planning and Statistics (MDPS) spokesman said. Page 2 of 5

3 The index consists of three main components: mining with a relative weight of 83.6%, manufacturing 15.2%, electricity 0.7% and water 0.5%. Qatar s IPI grew 0.6% QoQ in 1Q2017, mainly on account of production increase in crude and natural gas as well as refined petroleum products and basic metals. On a yearly basis, the country s IPI showed a marginal 0.2% fall in 1Q2017 primarily on lower production in the manufacturing segment. The mining and quarrying index expanded 1% QoQ in 1Q2017 on the back of 1% rise in extraction of crude petroleum and natural gas and 1.2% in quarries. On a yearly basis, the index was rather unchanged despite more than 17% expansion in quarries. (Gulf-Times.com) MEC extends bidding period for old Doha Exhibition Center until July 2 The Ministry of Economy and Commerce (MEC) announced that at the request of investors, it has decided to extend the bidding period for investment opportunities to transform the old Doha Exhibition Center into a modern and integrated entertainment city until July 2, The Technical Committee to Stimulate Private Sector Participation in Economic Development Projects at the Ministry, in coordination with the Qatar Tourism Authority (QTA), has announced the decision for the extension of the tender period. (Peninsula Qatar) Qatari businessmen seek to strengthen trade ties with Oman Qatari businessmen aspire to strengthen trade relations with their Omani counterparts and sign long-term agreements to establish cooperation in various trade sectors to ensure increased trade and smooth flow of goods between the two countries over the long term, Qatar Chamber said. The Qatari businessmen were on a working visit to Oman as part of a delegation that included more than 140 people, seeking to enhance trade relations between the two brotherly countries, discuss the investment opportunities available and the possibility of establishing alliances between Qatari and Omani businessmen, and explore joint ventures both in Qatar and Oman, the statement noted. A number of Qatari businessmen highlighted that the launch of two direct shipping routes between Hamad Port and the Omani ports of Sohar and Salalah would contribute to achieving these objectives, thereby enhancing the movement of trade between two countries. (Gulf-Times.com) India seeks Qatar investment, gas deal to revive power plants India is ready to sign long-term gas purchase deals with Qatar provided that Doha agrees to acquire stake in power plants which have been hit by gas shortages, Oil Minister Dharmendra Pradhan said. Pradhan said that India was open to granting stakes to Qatar in local oil and gas companies and Liquefied Natural Gas (LNG) terminals, should the Gulf Emirate make such a proposal. (Zawya) International US current account deficit widens to 2.5% of GDP The US current account deficit widened slightly in the first quarter, as the country imported more crude oil, car parts and supplies for its factories. The Commerce Department said that the current account deficit, which measures the flow of goods, services and investments into and out of the country, expanded by 2.4% to $116.8bn. The current account deficit for the fourth quarter was revised up to $114.0bn from the previously reported $112.4bn. Economists polled by Reuters had forecast the deficit rising to $123.8bn in the first quarter. The first-quarter current account deficit represented 2.5% of GDP, up from 2.4% in the fourth quarter. The current account deficit has dropped from a record high of 6.3% of GDP in the fourth quarter of 2005 as rising domestic oil production and lower global oil prices curbed the import bill. (Reuters) Eurozone s current account surplus dips in April The Eurozone's current account surplus dipped in April as imports into the 19-member currency bloc increased and the services surplus eased, European Central Bank (ECB) data showed. The working-day and seasonally adjusted surplus narrowed to 22.2bn Euros from 35.7bn Euros a month earlier. The rolling 12- month surplus eased to 3.2% of the bloc's GDP from 3.4% a year earlier. The unadjusted surplus dropped to 21.5bn Euros from 46.4bn. The ECB earlier said it expected the current account surplus to decline somewhat this year, partly on higher commodity - especially oil - prices. The bank expects a drop to 2.8% of GDP from 3.4%, and for the reading to hover around the lower level for some years. (Reuters) BDI industry body: German economy to grow by around 1.5% in 2017 Germany's BDI industry association confirmed its forecast that German economic output would increase by around 1.5% in 2017 as exports pick up but it warned that Europe's largest economy should not rest on its laurels. The good economic situation is not a free ticket to taking a rest, said BDI s President, Dieter Kempf. Our success is due to a weak euro exchange rate, a moderate oil price and the European Central Bank's expansive monetary policy, he said, adding that Germany's influence on those factors was limited. Given global risks, the German economy needs to be made resilient to crises so record tax revenues and budget surpluses should not lead to tax cuts but rather be used to invest and to reform tax legislation. (Reuters) China business confidence index rises in 2Q2017 Business confidence among entrepreneurs in China improved in 2Q2017 from 1Q2017, according to a survey by the People's Bank of China published. Another central bank survey showed bankers' confidence also rose in the second quarter, though 30.1% of bankers believed monetary policy was relatively tight in the April-June period, up 9.8 percentage points from the first quarter. (Reuters) Regional S&P: Islamic finance growth to lose momentum in 2018 Islamic finance industry will continue to expand in 2017, but lose some momentum in 2018, S&P Global Ratings forecast. The industry s assets reached $2tn at year-end 2016, slightly below S&P s September forecast. Even though Sukuk issuance accelerated in 1H2017 and will likely stay strong in the second half, we don t believe this growth rate is sustainable. We think stronger growth is possible if, together, supervisory bodies and market participants achieve greater standardization, resulting in a truly global industry, S&P Global Ratings said. It noted that the current economic situation in core Islamic finance markets and depreciation of local currencies have weighed on the industry s performance in 2016 and (GulfBase.com) OPEC, non-opec compliance with oil cuts hits highest in May According to sources, OPEC and non-opec oil producers' Page 3 of 5

4 compliance with a deal to cut global output has reached its highest in May since they agreed on the curbs last year, reaching 106% last month. OPEC compliance with the output curbs in May was 108%, while non-opec compliance was 100%. (GulfBase.com) IIF: GCC breakeven oil price to fall further According to the Institute of International Finance (IIF), government spending cuts and mobilization of non-hydrocarbon revenues will help the fiscal breakeven oil prices in the GCC to decline further in the coming years. Qatar s fiscal breakeven oil price (including investment income from the sovereign wealth fund or SWF) is expected to be $59 per barrel in 2017 and $55 in 2018 compared to $60 in Fiscal breakeven oil prices, which have become an increasingly popular tool among economists and decision makers, are the minimum oil prices needed to meet the spending commitments of oil exporting countries while balancing their budgets. In 2017, Qatar has the second lowest breakeven price as s is expected to be $105, Saudi Arabia $90, Oman $80 and the UAE $60; while that of Kuwait to be $51. In 2018, s fiscal breakeven oil price is expected to be $86, Saudi Arabia and Oman $76 each, the UAE $52 and Kuwait $48. (Gulf-Times.com) MENA hospitality industry earnings decline in May The majority of the MENA hospitality industry experienced a decrease in earnings during May 2017 as both lower occupancies and lower average room rates reduced overall revenue per average room (RevPAR), Ernst & Young said in its MENA Hotel Benchmark Survey Report. Abu Dhabi and Dubai maintained strong occupancy levels at 73.5% and 77.8% respectively but witnessed a decrease in RevPAR when compared to the same month last year. (GulfBase.com) Improved regulatory environment necessary for GCC REITs to flourish Investor sentiment and lack of understanding, along with a weak regulatory environment, are the biggest challenges for the growth of REITs in the Middle East, according to CFA Society Emirates, which gauged the opinions of the society s members and charter holders in the UAE. According to survey, the majority of CFA Society Emirates members ranked expected returns from a REIT portfolio higher than cash equivalents and bonds, and said that they intend to invest in REITs. However, they believe that the returns from REITs would be lower than stocks, private equity and real estate. (GulfBase.com) MSCI to consider adding Saudi Arabia to key index during 2019 Global index compiler MSCI said it would consider upgrading Saudi Arabia to emerging market status, a move that would attract tens of billions of Dollars of fresh foreign money as the country seeks to diversify its economy beyond oil. MSCI will announce its decision in June 2018, and any move to upgrade would take effect in two phases - in May 2019 and August Riyadh opened its market, the Arab world's biggest, to direct investment by foreign institutions in June 2015 and has been bringing its settlement and other systems closer to international practice since then. So many fund managers expect a positive decision. (Reuters) AATSC announces the partial redemption of Sukuk Arabian Aramco Total Services Company (AATSC) announced the partial redemption of Sukuk (scheduled semi-annually) with a fixed distribution payment of SR101,997,280 (which represents 2.72% Sukuk original face value) as per the redemption schedule. (Tadawul) CBUAE: Money supply in UAE continues to increase in May; foreign assets rise Central Bank of the UAE (CBUAE) announced the money supplies in different measures, including money in circulation and bank and government deposits, have increased by 0.6% in May compared to the money supplies in April. The biggest increase came from an increase of 0.9% recorded in Gross bank assets, including bankers acceptances, which rose from AED2662bn at the end of April to AED2686bn at the end of May During May 2017, total bank deposits also increased by AED10.6bn mainly due to AED12.7bn increase in Resident Deposits, overriding the AED2.1bn fall in Non- Resident Deposits. CBUAE also reported that total foreign assets rose to AED322.4bn (vs. AED317.4 bn in April). Cash, bank balances and deposits with banks abroad rose in May by AED45.3bn to AED215.7bn in April. (GulfBase.com, Bloomberg) Finance House raises stake in Insurance House UAE s Finance House buys 10mn shares in Insurance House. Results in total number of share of Finance House in Insurance House reached 53.5mn shares, equal to 44.38%. (Reuters) Etisalat Nigeria loan restructuring talks fail as lenders step in Etisalat has been instructed to transfer its 45% stake in Etisalat Nigeria to a loan trustee after debt restructuring talks with lenders failed, the Abu Dhabi telecoms company said. (Reuters) DSI seeks regulatory approval to initiate capital restructuring program Drake & Scull International (DSI), said it will proceed with the final preparations to secure the approval of the Securities and Commodities Authority (SCA) to initiate the 75% share capital reduction. The company is preparing to fulfill the regulatory requirements to initiate the share capital reduction and to subsequently effectuate the cancellation of 1,714mn shares to extinguish its total accumulated losses attributed to the owners of the parent. The latest developments represent a critical progress in the capital restructuring program that will enable the company to resolve its liquidity challenges and to execute its turnaround strategy to stabilize the business and to pursue its growth objectives in the regional MEP sector. (GulfBase.com) Page 4 of 5

5 Saudi Arabia Qatar Kuwait Oman Abu Dhabi Dubai Rebased Performance Daily Index Performance % 0.2% % (1.0%) (2.0%) (1.3%) (1.5%) (0.7%) (0.5%) (0.8%) (0.2%) 70.0 May-13 May-14 May-15 May-16 May-17 QSE Index S&P Pan Arab S&P GCC Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (0.0) (0.9) 7.9 MSCI World Index 1, (0.7) (0.0) 9.8 Silver/Ounce (0.2) (1.3) 3.5 DJ Industrial 21, (0.3) Crude Oil (Brent)/Barrel (FM Future) (1.9) (2.8) (19.0) S&P 500 2, (0.7) Crude Oil (WTI)/Barrel (FM Future) (2.2) (3.4) (19.5) NASDAQ 100 6, (0.8) Natural Gas (Henry Hub)/MMBtu (3.5) (22.2) STOXX (1.0) (0.4) 13.6 LPG Propane (Arab Gulf)/Ton (1.3) (2.1) (18.8) DAX 12, (0.9) (0.1) 17.7 LPG Butane (Arab Gulf)/Ton (1.1) (1.9) (33.5) FTSE 100 7, (1.6) (1.1) 7.0 Euro 1.11 (0.1) (0.6) 5.9 CAC 40 5, (0.6) Yen (0.1) 0.5 (4.7) Nikkei 20, GBP 1.26 (0.8) (1.2) 2.3 MSCI EM 1, (0.4) CHF (0.1) 4.5 SHANGHAI SE Composite 3, (0.2) AUD 0.76 (0.3) (0.5) 5.2 HANG SENG 25, (0.3) USD Index (4.4) BSE SENSEX 31, (0.3) RUB (3.2) Bovespa 60, (3.1) (2.6) (1.6) BRL 0.30 (1.3) (1.0) (2.2) RTS (1.7) (1.3) (14.9) (*$ adjusted returns) 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) 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