Week ended March 01, Week ended March 08, Chg. % Market Indicators

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1 ` Market Review and Outlook The Qatar Stock Exchange (QSE) Index decreased points or 4.83% during the trading week to close at 8, Market capitalization fell by 4.84% to QR444.9 billion (bn) versus QR467.6bn at the end of the previous trading week. Of the 45 listed companies, 8 companies ended the week higher, while 36 declined and 1 company remained unchanged. Ahli Bank (ABQK) was the best performing stock for the week with a gain of 5.9% on 5.6k shares traded. On the other hand, Vodafone Qatar (VFQS) was the worst performing stock for the week with a decline of 13.6% on 8.4mn shares traded. Industries Qatar (IQCD), Vodafone Qatar (VFQS) and QNB Group (QNBK) were the primary contributors to the weekly index decline. IQCD was the biggest contributor to the index s weekly decline, deleting 62.6 points from the index. VFQS was the second biggest contributor to the mentioned decline, deleting 42.5 points from the index. Moreover, QNBK shaved off 40.7 points from the index. However, Milaha (QNNS) added 4.3 points to the index. Trading value during the week decreased by 38.5% to reach QR742.7nm versus QR1.2bn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 36.7% of the total trading value. The Industrials sector was the second biggest contributor to the overall trading value, accounting for 23.9% of the total trading value. VFQS was the top value traded stock during the week with total traded value of QR68.9mn. Trading volume decreased by 22.3% to reach 39.9mn shares versus 51.3mn shares in the prior week. The number of transactions declined by 22.3% to reach 14,563 transactions versus 18,506 transactions in the prior week. The Banks and Financial Services sector led the trading volume, accounting for 34.0%, followed by the Industrials sector which accounted for 24.6% of the overall trading volume. Qatar First Bank (QFBQ) was the top volume traded stock during the week with 8.5mn shares. Foreign institutions remained bearish with net selling of QR79.4mn vs. net selling of QR75.6mn in the prior week. Qatari institutions remained bullish with net buying of QR14.1mn vs. net buying of QR64.1 in the week before. Foreign retail investors remained bullish with net buying of QR13.4mn vs. net buying of QR11.1mn in the prior week. Qatari retail investors remained bullish with net buying of QR51.8mn vs. net buying of QR0.3mn the week before. Foreign institutions bought (on a net basis) ~$34mn worth of Qatari equities since the beginning of QSE Index and Volume 8,500 8,350 8,200 Market Indicators Week ended March 08, 2018 Week ended March 01, 2018 Chg. % Value Traded (QR mn) ,207.3 (38.5) Exch. Market Cap. (QR mn) 444, ,574.7 (4.8) Volume (mn) (22.3) Number of Transactions 14,563 18,506 (21.3) Companies Traded Market Breadth 8:36 10:33 Market Indices Close WTD% MTD% YTD% Total Return 14, (3.6) (2.7) 1.3 ALL Share Index 2, (3.7) (2.8) (2.9) Banks and Financial Services 2, (3.3) (2.6) (0.7) Industrials 2, (4.2) (2.6) 0.7 Transportation 1, (1.0) Real Estate 1, (6.0) (4.8) (15.5) Insurance 3, (2.0) (4.4) (12.7) Telecoms 1, (4.8) (4.7) (4.6) Consumer Goods & Services 5, (2.8) Al Rayan Islamic Index 3, (3.6) (2.8) 1.9 Market Indices Weekly Index Performance 2.0% 0.0% (2.0%) (4.0%) (6.0%) QSE closed 8, , , Mar 5-Mar 6-Mar 7-Mar 8-Mar 0.6% Saudi Arabia (0.2%) (0.4%) Bahrain Kuwait Volume QSE Index (1.5%) (1.6%) (1.6%) Abu Dhabi Dubai Oman 8, (4.8%) Qatar (QSE)* 16,000,000 8,000,000 0 Regional Indices Close WTD% MTD% YTD% Weekly Exchange Traded Value ($ mn) Exchange Mkt. Cap. ($ mn) TTM P/E** P/B** Dividend Yield Qatar (QSE)* 8, (4.8) (4.0) (2.5) , Dubai 3, (1.6) (2.7) (6.3) ,360.8 # Abu Dhabi 4, (1.5) (1.5) , Saudi Arabia # 7, , , Kuwait 6, (0.4) , Oman 4, (1.6) (1.5) (3.3) , Bahrain 1, (0.2) , Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; # Data as of March 7, 2018) Page 1 of 7

2 News Economic & Corporate News IMF: Qatar s financial system remains solid Qatar s economy continues to adjust successfully to lower hydrocarbon prices and the country s financial system remains sound, according to International Monetary Fund (IMF). The availability of fiscal buffers has allowed a gradual fiscal consolidation anchored mainly on reducing current expenditures, with the merger of ministries and cuts in subsidies. Tariffs of some utilities (water and electricity) have been increased and domestic fuel prices are now adjusted regularly in line with movements in international prices. An infrastructure program in the amount of $200bn, equivalent to 121% of Qatar s 2017 GDP, is under way to diversify the economy and prepare for the FIFA 2022 World Cup. IMF noted that the direct economic and financial impact of the diplomatic rift between Qatar and some countries in the region is fading. While economic activity was affected, this has been mostly transitory and new trade routes were quickly established. The banking system has also adjusted. Further, IMF sees Qatar growth average about 2.7% from (Peninsula Qatar, Bloomberg) OBG: Qatar s proposed PPP law aims to incentivize, mobilize private investment The proposed public-private partnership (PPP) law aims to further incentivize and mobilize private investment in Qatar. The proposed PPP law is currently passing through the final stage of the legislatorial process, with government figures hopeful it will pass into law by early 2018, Oxford Business Group (OBG) stated in its The Report: Qatar With Qatar increasingly looking to engage the private sector in undertaking national infrastructure projects, efforts are under way to introduce new legal framework governing public-private partnerships (PPPs) in the country, OBG stated. Despite the absence of a specific legal framework to date, the government has long worked alongside the private sector in various industry projects. The most developed example of this cooperation is in the oil and gas sector, where state-owned Qatar Petroleum (QP) is participating in a number of long-term joint ventures with foreign players, particularly in gas-to-liquids production. QP s joint ventures include partnerships with Shell and Sasol Chevron, OBG noted. (Gulf- Times.com) Qatar Central Bank sells QR900mn of treasury bills Qatar Central Bank sold QR900mn of treasury bills with maturities of three, six and nine months. It sold QR500mn of three-month bills at a yield of 2.52%, QR250mn of six-month at 2.63% and QR150mn of nine-month at 2.9%. In February, Qatar Central Bank had sold QR1.15bn of bills with three-month yields at 2.5%, six-month at 2.6% and nine-month at 2.8%. (Peninsula Qatar) The Commercial Bank extends talks with Tabarak on United Arab Bank The Commercial Bank agreed to extend the exclusivity period granted to Abu Dhabi s Tabarak on potential purchase of its 40% stake in Abu Dhabi listed United Arab Bank to April 2, (QSE) GISS to invest QR1.5bn as part of five-year growth strategy Gulf International Services (GISS) is expecting to further invest QR1.5bn over the next five years as part of a growth strategy aimed at improving efficiency and reducing operating costs. GISS Chairman, Sheikh Khalid Bin Khalifa Al Thani said that despite challenges and setbacks in 2017, GISS was able to deliver a modest performance last year. Nevertheless, I am optimistic about the future performance of GISS in the medium and long run. There are a number of opportunities which are potentially available to GISS in the immediate future, Sheikh Khalid noted. He said the opportunities include additional drilling requirements and aviation services with Qatar Petroleum s recent plans to develop the North Field, and new drilling services arising from the commencement of operations of Qatar Petroleum s new joint venture, North Oil Company. Qatar Navigation inaugurates first phase of Milaha Logistics City Qatar Navigation inaugurated the first phase of the 400,000 square meters Milaha Logistics City with a 35,000 square meters warehousing facility dedicated to temperaturecontrolled cargo. The new facility marks Qatar Navigation s entry into cold chain solutions, and would cater to the food industry, pharmaceuticals, and other fast-moving consumer goods (FMCG). Qatar Navigation s President and CEO, Abdulrahman Essa Al Mannai said, Milaha Logistics City is a significant investment on our part in Qatar s supply chain infrastructure and, in particular, cold chain capabilities, and we expect it to be a key enabler for logistics growth in Qatar. Doha Bank gets approval to raise $2bn debt under EMTN plan Doha Bank shareholders approved the board s proposal to issue bonds up to $2bn under Euro Medium Term Note (EMTN) program as part of efforts to source cost effective long-term funds. The lender also received approval for reducing the minimum amount per issuance of commercial papers to $1mn compared to $50mn in order to attract more retail investors. Doha Bank s Chairman, Sheikh Fahad Bin Mohamed Bin Jabor Al Thani said, Since (customers) deposits are the only funding source available in the country, which are generally short term, the international market presents itself as the best alternative. To fund long-term growth and projects in the country, the bank needs to have a medium and long-term stable funding base, Sheikh Fahad said, adding such long-term funding would enable the bank to meet the regulatory requirements arising from Basel III ratios and also improve liquidity and interest rate profile. Ezdan Holding Group accepts the resignation of the group CEO Ezdan Holding Group s board of directors accepted the resignation of the group s CEO, Ali Mohammed Al Obaidli on February 28, (QSE) GISS to invest QR1.5bn as part of five-year growth strategy Gulf International Services (GISS) is expecting to further invest QR1.5bn over the next five years as part of a growth strategy aimed at improving efficiency and reducing operating costs. GISS Chairman, Sheikh Khalid Bin Khalifa Al Thani said that despite challenges and setbacks in 2017, GISS was able to deliver a modest performance last year. Nevertheless, I am optimistic about the future performance of GISS in the medium and long run. There are a number of opportunities which are potentially available to GISS in the immediate future, Sheikh Khalid noted. He said the opportunities include additional Page 2 of 7

3 drilling requirements and aviation services with Qatar Petroleum s recent plans to develop the North Field, and new drilling services arising from the commencement of operations of Qatar Petroleum s new joint venture, North Oil Company. Qatar Navigation inaugurates first phase of Milaha Logistics City Qatar Navigation inaugurated the first phase of the 400,000 square meters Milaha Logistics City with a 35,000 square meters warehousing facility dedicated to temperaturecontrolled cargo. The new facility marks Qatar Navigation s entry into cold chain solutions, and would cater to the food industry, pharmaceuticals, and other fast-moving consumer goods (FMCG). Qatar Navigation s President and CEO, Abdulrahman Essa Al Mannai said, Milaha Logistics City is a significant investment on our part in Qatar s supply chain infrastructure and, in particular, cold chain capabilities, and we expect it to be a key enabler for logistics growth in Qatar. QEWS: Foreign investments key asset for future Qatar Electricity and Water Company (QEWS) stated it was considering its foreign investments as very important asset for the future, as the foreign investments shall constitute the major portion of the company profits through foreign projects in which the company participates through Nebras Power Company, where in QEWS owns 60% of the shares. QEWS s 2017 annual report explains that Nebras Power Company s board of directors had agreed on purchasing the shares of Carthage Powers, Rades, Tunisia for $10mn and it is currently negotiating with the liquidator of BTU about the price and the completion of the purchase process. The aim is to acquire 60% of the Carthage plant with a production capacity of 471MW. The consent of the shareholders has been obtained and TAPCO s board of directors decided to transfer the ownership of its shares to Nebras Power Company. (Peninsula Qatar) Rise in bulk cargo traffic at Hamad Port in February Hamad Port received 120 commercial vessels in February. The largest port in the region handled 55,862 tons of bulk cargo compared to 9,890 tons of bulk cargo in January, showing a rise of 465%. The Port handled 103,735 Twenty-Foot Equivalent Units (TEUs) containers and 94,796 tons of break bulk cargo, according to Qterminals. A total of 4,845 vehicles and 50,000 cattle heads were handled by the port last month. January was remarkable month for Hamad port as it received a total of 182 vessels during this month, which was the highest number of vessels handled in a month since the start of its operations. The port had handled 103,996 TEUs containers, 136,511 tons break bulk cargo, 152,671 vehicles and 90,099 heads of cattle in January this year. (Peninsula Qatar) The Commercial Bank to put in extra $300mn to support Alternatif Bank The Commercial Bank committed to put in another $300mn of capital to support the growth and development of its 100%-owned subsidiary, Alternatif Bank in Turkey, according to The Commercial Bank s CEO, Joseph Abraham. Abraham said, Already, our investment in Alternatif Bank that amounts to nearly $1bn marks the Qatari private sector s highest investment in Turkey. We are confident that our investment in Turkey will continue growing and add value to the economy of both our countries. Alternatif Bank has the full support of Commercial Bank and we have made a lot of progress in the last year in terms of greater collaboration and integration. Our intention is to continue to align our businesses closer together and transfer our international know-how to take Alternatif Bank to a new phase of sustainable growth supported by strong corporate governance principles. Further, Alternatif Bank set a fiveyear strategy with a customer-centric, growth-focused approach, its CEO, Kaan Gur said. MPHC eyes selective capex program to lift market competitiveness Mesaieed Petrochemical Holding Company (MPHC) is embarking on a selective capital expenditure program to maintain competitiveness in the market, it was announced during MPHC s Annual General Meeting. MPHC s Chairman, Ahmad Saif Al Sulaiti said, Aside from suitable business opportunities, continued investments in operating assets are essential to remain competitive in the market. And we will continue to invest when the right opportunity becomes available. Citing several competitive advantages, Al Sulaiti said MPHC has excellent cost positioning, largely due to competitively priced feedstock. The group benefits from access to competitively priced feedstock under long-term supply agreements. Page 3 of 7

4 Qatar Stock Exchange Top Gainers 9.0% Top Decliners 0.0% 6.0% 5.9% -5.0% 4.3% 3.9% -7.4% 3.0% 2.7% 1.5% -10.0% -9.7% 0.0% Al Ahli Bank Doha Insurance Zad Holding Qatar Islamic Insurance Milaha -13.6% -15.0% Vodafone Qatar -13.1% -13.0% Mesaieed Petrochemical Holding Company Doha Bank Industries Qatar Ezdan Real Estate Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million) Vodafone Qatar Aamal Qatar First Bank Masraf Al Rayan QNB Group 0.0 Qatar First Bank Vodafone Qatar Aamal Mesaieed Petrochemical Holding Company Masraf Al Rayan Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million) 100% 80% 60% 19.84% 15.27% 24.11% 30.52% 13.46% 22.20% (66) Non-Qatari % 20% 40.79% 33.81% Qatari % Buy Sell 482 Qatari Individuals Qatari Institutions (100) 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 down 4.83% mostly on ex-dividends on major names on the Index. The momentum turned weaker as we can see from the moving averages being on top of the Index and pointing downwards. We may see further corrections on the Index but we keep our support level at the 8,000 level; and we update the weekly resistance to the 9,000 mark. 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 March 08 % Change WTD % Change YTD Market Cap. QR Million TTM P/E P/B Div. Yield Qatar National Bank (3.30) (7.14) 108, Qatar Islamic Bank (3.40) (3.71) 22, Commercial Bank of Qatar (4.63) (6.54) 10, N/A Doha Bank (13.00) , Al Ahli Bank (8.44) 7, Qatar International Islamic Bank (2.15) , Masraf Al Rayan (3.46) (3.97) 27, Al Khalij Commercial Bank (0.58) (15.63) 4, Qatar First Bank ,350 N/A 0.8 N/A National Leasing 9.81 (7.01) (8.40) Dlala Holding (4.17) (21.77) N/A Qatar & Oman Investment 7.64 (3.17) (3.29) Islamic Holding Group (3.28) (25.20) 159 N/A Banking and Financial Services 200,078 Zad Holding , Qatar German Co. for Medical Devices 5.88 (2.49) (8.98) 68 N/A 1.0 N/A Salam International Investment 5.87 (1.84) (14.80) 671 N/A 0.5 N/A Medicare Group (1.17) , Qatar Cinema & Film Distribution (9.36) Qatar Fuel (3.44) , Widam Food Co (6.08) (8.80) 1, Mannai Corp (4.84) (0.84) 2, Al Meera Consumer Goods (0.67) , Consumer Goods and Services 21,991 Qatar Industrial Manufacturing (1.12) , Qatar National Cement (6.54) (9.36) 3, Industries Qatar (9.68) (3.09) 56, Qatari Investors Group (2.02) (13.80) 3, Qatar Electricity and Water (2.97) (4.21) 18, Aamal 9.20 (0.33) , Gulf International Services (2.93) (4.52) 3, N/A Mesaieed Petrochemical Holding (13.10) , Invesment Holding Group N/A Industrials 111,150 Qatar Insurance (3.59) (20.38) 11, Doha Insurance Qatar General Insurance & Reinsurance (3.67) 4, Al Khaleej Takaful Insurance (5.88) (9.37) Qatar Islamic Insurance Insurance 17,508 United Development (3.75) , Barw a Real Estate (4.71) , Ezdan Real Estate 8.57 (7.35) (29.06) 22, Mazaya Qatar Real Estate Development 7.78 (1.02) (13.56) N/A Real Estate 41,866 Ooredoo (3.72) (8.76) 26, Vodafone Qatar 7.69 (13.60) (4.11) 6,501 N/A 1.5 N/A Telecoms 33,024 Qatar Navigation (Milaha) , Gulf Warehousing (1.51) (9.32) 2, Qatar Gas Transport (Nakilat) (2.75) , Transportation 19,315 Qatar Exchange 444,932 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