Week ended April 05, Week ended April 12, Chg. % Market Indicators

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1 ` Market Review and Outlook The Qatar Stock Exchange (QSE) Index increased points or 1.43% during the trading week to close at 8, Market capitalization increased by 1.9% to QR493.8 billion (bn) versus QR484.7bn at the end of the previous trading week. Of the 45 listed companies, 15 companies ended the week higher, while 29 declined and 1 company remained unchanged. Aamal Holding (AHCS) was the best performing stock for the week with a gain of 6.7% on 1.4 million (mn) shares traded. On the other hand, Mannai Corporation (MCCS) was the worst performing stock for the week with a decline of 10.6% on 65.0k shares traded. Industries Qatar (IQCD), QNB Group (QNBK), and Qatar Islamic Bank (QIBK) were the primary contributors to the weekly index gains. IQCD was the biggest contributor to the index s weekly increase, adding 52.5 points to the index. QNBK was the second biggest contributor to the mentioned gain, tacking on 49.0 points to the index. Moreover, QIBK contributed 36.3 points to the index. However, Masraf Al Rayan (MARK) deleted 27.4 points from the index. Trading value during the week increased by 13.3% to reach QR1.4bn versus QR1.3bn in the prior week. The Industrials sector led the trading value during the week, accounting for 35.8% of the total trading value. The Banks and Financial Services sector was the second biggest contributor to the overall trading value, accounting for 33.2% of the total trading value. IQCD was the top value traded stock during the week with total traded value of QR213.0mn. Trading volume decreased by 15.8% to reach 48.8mn shares versus 57.9mn shares in the prior week. The number of transactions fell by 0.9% to reach 17,559 transactions versus 17,710 transactions in the prior week. The Industrials sector led the trading volume, accounting for 34.0%, followed by the Banks and Financial Services sector which accounted for 23.9% of the overall trading volume. Mesaieed Petrochemical Holding (MPHC) was the top volume traded stock during the week with 9.1mn shares. Foreign institutions remained bullish with net buying of QR74.4mn vs. net buying of QR75.1mn in the prior week. Qatari institutions remained bearish with net selling of QR11.0mn vs. net selling of QR134.2mn in the week before. Foreign retail investors turned bearish with net selling of QR18.5mn vs. net buying of QR8.0mn in the prior week. Qatari retail investors turned bearish with net selling of QR44.9mn vs. net buying of QR51.1mn the week before. Foreign institutions bought (on a net basis) ~$150mn worth of Qatari equities since the beginning of QSE Index and Volume 9,100 8,900 8,700 Market Indicators Week ended April 12, 2018 Week ended April 05, 2018 Chg. % Value Traded (QR mn) 1, , Exch. Market Cap. (QR mn) 493, , Volume (mn) (15.8) Number of Transactions 17,559 17,710 (0.9) Companies Traded Market Breadth 15:29 20:22 Market Indices Close WTD% MTD% YTD% Total Return 15, ALL Share Index 2, Banks and Financial Services 2, Industrials 3, Transportation 1, (1.7) (4.0) (1.9) Real Estate 1, (0.4) (0.1) (4.4) Insurance 3, (1.9) (1.9) (12.6) Telecoms 1, (0.7) Consumer Goods & Services 5, (1.4) Al Rayan Islamic Index 3, Market Indices Weekly Index Performance 1.8% 1.2% 0.6% 0.0% (0.6%) (1.2%) 8, , , , Apr 9-Apr 10-Apr 11-Apr 12-Apr 1.4% Qatar (QSE)* 0.7% Bahrain Volume 0.4% Dubai QSE Index (0.1%) Kuwait (0.5%) Oman 14,000,000 8, ,000,000 (0.8%) Abu Dhabi 0 Regional Indices Close WTD% MTD% YTD% Weekly Exchange Traded Value ($ mn) Exchange Mkt. Cap. ($ mn) TTM P/E** P/B** Dividend Yield Qatar (QSE)* 8, , Dubai 3, (0.5) (8.2) ,797.4 # Abu Dhabi 4, (0.8) , Saudi Arabia # 7, (1.9) (0.9) 8.0 6, , Kuwait 4, (0.1) (2.7) (2.7) , Oman 4, (0.5) 0.1 (6.3) , Bahrain 1, (2.0) (3.0) , Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; # Data as of April 11, 2018) Page 1 of 7

2 News Economic & Corporate News Qatar aims to double trade volume with the US Emir HH Sheikh Tamim Bin Hamad Al Thani said that there are more than 650 US companies operating in Qatar and the volume of trade cooperation between the State of Qatar and the US reached $125bn, and the plan is to double these figures in the near future. HH the Emir pointed out that Qatar is the fastest growing economy in the Middle East region and expressed the hope to work hand in hand with the US. (Peninsula Qatar) Qatar economy more accessible to world post-illegal blockade, says Sheikh Ahmed The illegal blockade on Qatar since June 2017 has presented the country with an opportunity to make its economy more accessible to the world, and bolster its trade relations, particularly with the US, according to the Minister of Economy and Commerce, HE Sheikh Ahmed Bin Jassim Bin Mohamed Al Thani. The illegal blockade was with the aim of undermining Qatar s position as an economically independent and sovereign state, but we have emerged stronger and more independent than ever before, Sheikh Ahmed said in his address to a reception organized by the US Chamber of Commerce in cooperation with the Qatar-US Business Council and the Embassy of Qatar in Washington. Qatar, he said, has successfully established direct commercial routes with a number of strategic hubs around the world, diverting trade to its major trading partners. Through these agreements, Qatar aims to expand its trade activities by establishing a sea fleet that connects Qatar with its major trading partners in the world, targeting a market of 400mn population in its first stage, Sheikh Ahmed added. (Gulf-Times.com) Qatar-Oman joint investments reach more than QR5.5bn Joint investments between Qatar and Oman have reached more than QR5.5bn and Qatar will soon see the establishment of a water bottling plant in a joint venture. The joint investments between Qatar and Oman have increased over time, so did trade exchange. In fact, the value of joint investments was estimated at more than QR5.5bn, including Omani investments in Qatar worth QR427mn, Youssef Al Emadi, Director of the Industrial Zones Department at the Ministry of Energy. These investments included import of food products and construction materials to Qatar. Highlighting that the Qatari investments in Oman were in the fields of telecommunications, electricity, cars assembly, food products and tourism, he projected an increase in trade value between the two countries with the increasing imports from Oman. (Gulf-Times.com) Local production during blockade reaches 300% Minister of Municipality and Environment, HE Mohamed Bin Abdullah Al Rumaihi said that the local production during the blockade period increased 300%. He said that the Ministry is seeking to provide all means and forms of support to various owners of productive farms and halal breeders in order to achieve the desired goal. The Ministry has allocated QR105mn for 2018 of the budget for support to the agricultural, fish and livestock sector with a view to achieving food security, in addition, QR70mn allocated for the next five years, the Minister added. (Peninsula Qatar) Qatar economy, World Cup work progressing fast says Al Emadi Economy of Qatar, the world s top exporter of liquefied natural gas (LNG), is set to grow 2.6% this year and closer to 3% in 2019, according to Finance Minister, HE Ali Sherif Al Emadi. The Gulf state s economy has largely recovered from a boycott imposed by other Arab states last June and is again one of the region s fastest-growing. Qatar moved quickly to safeguard its economy after Saudi Arabia, the UAE, Bahrain and Egypt cut diplomatic and transport ties with Qatar, accusing it of financing terrorism. We are still doing very well and will make sure economic growth outpaces that of the region, Al Emadi said, forecasting private sector growth of 4% in He said Qatar was moving on fast with spending in preparation of hosting the 2022 World Cup and that 90% of infrastructure work for the event would be completed by Qatar is set to make its first foray into the international bond markets since the Arab row erupted last year. It is meeting UK and US investors ahead of issuing 5, 10 and 30 year Dollar notes. Qatar s banking sector is still very liquid and can provide funding options for Qatari firms, while some of the more developed companies in the country have already accessed international bond markets, the minister added. (Gulf- Times.com) Growth in exports from India to Qatar estimated at more than 50% in 2017 There has been a substantial growth in exports from India to Qatar since the economic blockade on this country more than ten months ago, according to Indian Ambassador to Qatar, P Kumaran. The envoy said the growth in exports from India to Qatar is believed to be more than 50% in the last one year. However, it is too early to say if the growth in exports is owing to the movement of the vessels carrying goods directly to Qatar, which used to call on another major port of the region. The concerned section at the embassy is evaluating the data and the final figures would be available shortly. The Ambassador said India has been the third largest trade partner of Qatar, with the bilateral trade exceeding $9bn last year and in the wake of the developments since June 5, 2017, there has been a steady growth in the imports from India, especially of such goods as foodstuffs and construction materials. (Gulf-Times.com) The Commercial Bank signs $250mn Asian syndicated loan The Commercial Bank signed a $250mn two year loan facility, which was syndicated in the Asian Market. The facility has a one year extension option and the proceeds will be used for general corporate purposes. Mizuho Bank Limited, Bank of China Limited, ICICI Bank Limited, Shinhan Bank Co., The Export-Import Bank of the Republic of China, KDB Asia Limited and The Gunma Bank Limited participated in this transaction. Mizuho Bank Limited acted as sole bookrunner, mandated lead arranger and facility agent. Launched and closed in Asia, the deal helped diversify The Commercial bank s funding sources and attracted first time lenders, despite the challenging market conditions in the region, which clearly underlines the strengths of Qatar and The Commercial Bank. (QSE) Qatargas delivers first LNG cargo to Pavilion Gas in Singapore Qatargas has made inaugural delivery of liquefied natural gas (LNG) to Pavilion Gas Pte Ltd, a wholly-owned subsidiary of Page 2 of 7

3 Pavilion Energy. The shipment was delivered to the Singapore LNG Receiving Terminal on Jurong Island onboard the Qatargas-chartered Q-Flex vessel Al Oraiq. Qatar Petroleum s President and CEO, Saad Sherida Al Kaabi, also Qatargas Chairman said, Qatargas is proud to supply the first cargo of Qatari LNG to Pavilion Gas in the Republic of Singapore. We have great confidence in Pavilion Gas and the Singaporean market, and we look forward to building an even stronger relationship with them in the years ahead. (Gulf-Times.com) Umm Al Houl power plant 99% complete The Prime Minister and Minister of Interior, HE Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani visited the under-construction Umm Al Houl Power Plant of the Qatar Electricity and Water Company (QEWS). The plant is set to be officially opened soon. At the end of the visit, Sheikh Abdullah Bin Nasser praised the achievements made in the huge project, whose operation depends on highly efficient and skilled Qatari engineers and technicians, and lauded the company s Qatarisation efforts. Umm Al Houl Power Plant is one of the largest desalination and power generation plants in the region. Built at a cost of QR11bn, the plant would have a daily production capacity of 136mn gallons of water and 2,520MW of electricity. Once completed, Umm Al Houl Power Plant will provide 25% of Qatar s electricity and 30% of water needs. The project has the participation of QEWS (60%), Qatar Petroleum (5%), Qatar Foundation (5%), and a consortium of Japanese companies Mitsubishi Corporation and Tepco (30%). (Gulf-Times.com) QNB Group: Qatar s GDP forecasts revised up for 2018 Qatar s overall real GDP growth will exceed 2.8% this year from the earlier forecast of 2.5%, QNB Group stated in an economic commentary. QNB Group stated it was revising up its Qatar s GDP growth forecasts for three main reasons. First, QNB Group recently raised its forecast for oil prices from $55 a barrel to $63 a barrel, which will lead to higher incomes and spending in the non-hydrocarbon sector. Second, it now expects a sharper rebound in hydrocarbon output as maintenance on LNG production facilities appears to have been dragged out in 2017, but should now be completed. Third, the economic impact of the blockade has been less than expected and QNB Group has, therefore, reduced the expected drag from the blockade on 2018 GDP. As a result, QNB Group is now forecasting overall real GDP growth of 2.8% in 2018 from 2.5% previously. According to QNB Group, Qatar s GDP growth in 4Q2017 was held back by the hydrocarbon sector. The latest data showed an unexpected drop of 6.4% in hydrocarbon production in 4Q2017 from the previous quarter. Given that crude oil production increased by 3.2% over this period, the drop in hydrocarbon GDP must be due to gas production, most likely as a consequence of temporary shutdowns for routine maintenance on LNG facilities. For the full year 2017, overall real GDP growth was 1.6% with the non-hydrocarbon sector growing 4.2% and the hydrocarbon sector contracting 1.1%. Lower oil and gas output in 2017 was due to both lower crude oil production and maintenance on LNG facilities. (Gulf- Times.com) QNBK s net profit rises 7% YoY to QR3.4bn in 1Q2018 QNB Group (QNBK) recorded net profit of QR3.4bn in 1Q2018, up by 7% compared to previous year. This was mainly driven by operating income, which increased to QR6.1bn, up by 12% compared to 1Q2017, demonstrating QNBK s success in maintaining growth across the range of revenue sources. Net interest income increased by 12% to reach QR4.7bn, with net fee and commission income and net gain from foreign exchange reaching QR1.0bn and QR0.3bn, respectively, reflecting success in diversifying sources of income. QNBK s prudent cost control policy and strong revenue generating capability allowed it to improve the efficiency ratio (cost to income ratio) to 27.8%, which is considered one of the best ratios among financial institutions in the region. Total assets increased by 12% from March 31, 2017 to reach QR834bn, setting a benchmark for peer financial institutions. This was driven by a growth rate of 12% in loans and advances to reach QR598bn. QNBK was successful in attracting funding, which resulted in increased customer funding by 12% to reach QR604bn from March This led to QNBK s loans to deposits ratio maintained at 99%. QNBK was able to maintain the ratio of non-performing loans to gross loans at 1.8%, a level considered one of the lowest amongst financial institutions in the MEA region, reflecting the high quality of QNBK s loan book and the effective management of credit risk. QNBK s conservative policy in regard to provisioning continued with the coverage ratio maintained at 110% as at March 31, Total Equity increased by 2% from March 31, 2017 to reach QR73bn as at March 31, Earnings per share increased to QR3.6 in 1Q2018 from QR3.3 in 1Q2017. Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 16.0% as at March 31, 2018, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. QNBK is keen to maintain a strong capitalization in order to support future strategic plans. During the first quarter, as part of QNBK s continued drive to enhance its status as a global financial institution, the Board of Directors have recommended to the Extraordinary General Assembly Meeting of shareholders (to be held on April 17, 2018), to approve the increase of non-qatari ownership limit from 25% to 49% as well as increasing single ownership limit to be increased from 2% to 5%, in accordance with the applicable laws and regulations. QNBK's successful funding from the international markets during 1Q2018 which included, amongst others, (1) private placements totaling USD2.5bn with two-three year maturity in multiple currencies including CNH and (2) capital market issuances of AUD700mn with a five and ten-year maturity in Australia and USD720mn Formosa bonds in Taiwan. QNBK also announced the successful closing of the syndication for its USD3.5bn three year senior unsecured term loan facility in February The syndication was well supported by 21 International Banks and the facility was upsized due to strong demand from the market. (QNB Group Press Release) Page 3 of 7

4 Qatar Stock Exchange Top Gainers 9.0% Top Decliners 0.0% 6.0% 6.7% 6.3% 5.4% 4.4% 4.0% -4.0% -5.9% -4.8% -4.8% 3.0% -8.0% -7.9% 0.0% Aamal Mesaieed Petrochemical Holding Company Qatar Electricity and Water Qatar Islamic Bank Industries Qatar -12.0% -10.6% Mannai Corp. Islamic Holding Group Al Ahli Bank Investment Holding group Zad Holding Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million) Industries Qatar QNB Group Mesaieed Petrochemical Holding Company Doha Bank Qatar Fuel 0.0 Mesaieed Petrochemical Holding Company Vodafone Qatar Mazaya Qatar Doha Bank Qatar First Bank Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million) 100% 80% 29.40% 24.21% 8.55% 9.84% Non-Qatari % 27.50% 28.27% 40% 20% 34.56% 37.69% (56) Qatari 946 0% Buy Sell 890 Qatari Individuals Qatari Institutions (200) ,000 Non-Qatari Individuals Non-Qatari Institutions Net Investment Total Sold Total Bought Page 4 of 7

5 TECHNICAL ANALYSIS OF THE QSE INDEX Source: Bloomberg The Index closed 1.43% higher than the week before; it managed to breakout above the corrective channel that has been created few weeks ago. That seems to be positive as long as the Index maintains its level above the weekly support at the 8,000 points level. We reiterate the need for a breakout above the 9,000 resistance before it may turn bullish. 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 5 of 7

6 Company Name Price April 12 % 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 , Doha Bank (1.72) (9.65) 7, Al Ahli Bank (5.90) (18.40) 6, Qatar International Islamic Bank (5.13) 7, Masraf Al Rayan (2.66) (5.17) 26, Al Khalij Commercial Bank (0.63) (21.97) 3, Qatar First Bank 6.15 (1.44) (5.82) 1,230 N/A 0.8 N/A National Leasing (1.14) (3.08) Dlala Holding (0.95) (21.84) N/A Qatar & Oman Investment 7.21 (0.28) (8.73) Islamic Holding Group (7.90) (26.32) 156 N/A 1.2 N/A Banking and Financial Services 225,640 Zad Holding (4.76) , Qatar German Co. for Medical Devices 5.65 (2.59) (12.54) 65 N/A 1.2 N/A Salam International Investment 5.61 (4.27) (18.58) 641 N/A 0.4 N/A Medicare Group (2.04) (3.94) 1, Qatar Cinema & Film Distribution (0.71) Qatar Fuel , Widam Food Co (0.02) (4.10) 1, Mannai Corp (10.63) (15.97) 2, Al Meera Consumer Goods (1.59) (4.91) 2, Consumer Goods and Services 21,915 Qatar Industrial Manufacturing (13.07) 1, Qatar National Cement (1.84) (14.17) 3, Industries Qatar , Qatari Investors Group (0.42) (9.29) 4, Qatar Electricity and Water , Aamal , Gulf International Services , N/A Mesaieed Petrochemical Holding , Invesment Holding Group 5.55 (4.80) (9.02) Industrials 131,280 Qatar Insurance (2.36) (19.65) 11, Doha Insurance (2.98) (13.86) Qatar General Insurance & Reinsurance (1.04) (5.10) 4, Al Khaleej Takaful Insurance (0.97) (22.96) Qatar Islamic Insurance (10.86) Insurance 17,256 United Development (4.21) (1.95) 4, Barw a Real Estate , Ezdan Real Estate (12.42) 28, Mazaya Qatar Real Estate Development 7.21 (0.55) (19.89) N/A Real Estate 46,965 Ooredoo (8.58) 26, Vodafone Qatar 9.00 (2.81) ,609 N/A 1.7 N/A Telecoms 34,182 Qatar Navigation (Milaha) (0.81) (5.45) 6, Gulf Warehousing (6.71) 2, Qatar Gas Transport (Nakilat) (2.97) (8.70) 8, Transportation 16,606 Qatar Exchange 493,845 Source: Bloomberg Page 6 of 7

7 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 7 of 7