Week ended Nov 02, Week ended Oct 26, Chg. % Market Indicators

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1 ` Market Review and Outlook The Qatar Stock Exchange (QSE) Index increased by points or 0.22% during the trading week to close at 8, Market capitalization increased by 0.29% to QR443.5 billion (bn) versus QR442.2bn at the end of the previous trading week. Of the 45 listed companies, 18 companies ended the week higher, while 24 declined and 3 remained unchanged. Aamal (AHCS) was the best performing stock for the week with a gain of 3.45% on 620,350 shares traded. On the other hand, Salam International Investment (SIIS) was the worst performing stock for the week with a decline of 9.09% on 525,338 shares traded. Ooredoo (ORDS), Industries Qatar (IQCD) and Barwa Real Estate (BRES) were the primary contributors to the weekly index increase. ORDS was the biggest contributor to the index s weekly increase, adding points to the index. IQCD was the second biggest contributor to the increase, tagging on 9.27 points to the index. Moreover, BRES added 7.45 points to the index. Alternatively, Doha Bank (DHBK) deleted 8.52 points from the index. Trading value during the week decreased by 9.79% to reach QR687.9 million (mn) versus QR762.6mn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 44.4% of the total trading value. The Industrials sector was the second biggest contributor to the overall trading value, accounting for 15.9% of the total trading value. QNB Group (QNBK) was the top value traded stock during the week with total traded value of QR128.3mn. Trading volume decreased by 17.24% to reach 30.8mn shares versus 37.3mn shares in the prior week. The number of transactions rose by 11.65% to reach 10,955 transactions versus 9,812 transactions in the prior week. The Banks and Financial Services sector led the trading volume, accounting for 36.1%, followed by the Industrials sector which accounted for 23.2% of the overall trading volume. Qatar First Bank (QFBK) was the top volume traded stock during the week with 5.1mn shares. Foreign institutions remained bullish with net buying of QR56.5mn vs. net buying of QR114.6mn in the prior week. Qatari institutions remained bearish with net selling of QR33.8mn vs. net selling of QR84.9mn the week before. Foreign retail investors turned bullish with net buying of QR10.5mn vs. net selling of QR3.0mn in the prior week. Qatari retail investors remained bearish with net selling of QR33.2mn vs. net selling of QR26.7mn the week before. In 2017 YTD, foreign institutions bought (on a net basis) ~$685mn worth of equities. QSE Index and Volume 8,220 8,160 8,100 Market Indicators Week ended Nov 02, 2017 Week ended Oct 26, 2017 Chg. % Value Traded (QR mn) (9.8) Exch. Market Cap. (QR mn) 443, , Volume (mn) (17.2) Number of Transactions 10,955 9, Companies Traded Market Breadth 18:24 11:33 Market Indices Close WTD% MTD% YTD% Total Return 13, (0.2) (19.1) ALL Share Index 2, (0.2) (20.5) Banks and Financial Services 2, (0.3) (0.4) (12.4) Industrials 2, (0.3) (23.4) Transportation 1, (0.2) (0.7) (34.9) Real Estate 1, (28.3) Insurance 2, (32.5) Telecoms 1, (13.3) Consumer Goods & Services 4, (3.0) (1.1) (20.1) Al Rayan Islamic Index 3, (0.2) (17.5) Market Indices Weekly Index Performance 2.0% 1.0% 0.0% (1.0%) (2.0%) 8, , , , Oct 30-Oct 31-Oct 1-Nov 2-Nov Volume QSE Index 1.6% Oman 0.5% 0.4% 0.2% Saudi Arabia Bahrain Qatar (QSE)* (0.1%) Abu Dhabi 8, (0.8%) (1.1%) Dubai Kuwait 10,000,000 5,000,000 0 Regional Indices Close WTD% MTD% YTD% Weekly Exchange Traded Value ($ mn) Exchange Mkt. Cap. ($ mn) TTM P/E** P/B** Dividend Yield Qatar (QSE)* 8, (0.2) (21.9) , Dubai 3, (0.8) (0.4) ,328.5 # Abu Dhabi 4, (0.1) (0.3) (1.8) , Saudi Arabia # 6, (3.6) 4, , Kuwait 6, (1.1) , Oman 5, (12.8) , Bahrain 1, , Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; # Data as of November 01, 2017) Page 1 of 7

2 News Economic & Corporate News Qatar deals with siege impact with consummate ease The blockade-induced surprise on Qatari economy is easing and market fundamentals are on a recovery mode, and back to predispute levels. The government s capital injections have offset more than the withdrawal of $12bn in foreign cash from the banking system since May, resulting a phenomenal 18% YoY deposit rise in September, according to NBK s Qatar Chartbook. Releasing MENAP s (Middle East, North Africa, Afghanistan and Pakistan) regional economic outlook in Dubai the other day, IMF also noted the Qatari economy and financial markets were fast adjusting to the impact of the regional diplomatic rift. According to NBK analysts, Qatar s goods imports have recovered back towards pre-dispute levels, after falling 40% YoY in June. Crude output dropped to 0.57 millions of barrels per day in September in compliance with OPEC production cut targets of 127%. Brent crude has risen from its June low of $45; rising global supplies are keeping natural gas prices subdued. Population growth reached a 6-year low of 1.9% in August, though was slowing well before the GCC dispute began. (Peninsula Qatar) Qatar s population inching back to year s highest levels The Ministry of Development Planning & Statistics (MDPS) reported a marginal rise of 1.3% in the country s population. The population on October 31 was 2,668,415, which showed an increase of more than 3,400 compared to the figures released at the end of the previous month (2,634,234 as on September 30). The month of May showed the population at the highest of the year so far, at 2,700,539. It was incidentally the only time the population figures have exceeded 2.7mn in the history of Qatar. The second highest, so far this year was in April, when Qatar housed 2,675,522 people. The April figure was a little more than February, when the authorities reported the population at 2,673,022. The MDPS has said latest figures have showed an increase of more than 2%, compared to the figures of the corresponding month in (GulfTimes.com) QSE listed companies reported QR29.3bn net profits for the 3rd quarter of 2017 With the end of disclosure period for the third quarter of The combined net profit of all companies as of September 30, 2017 amounted to QR29.3bn versus QR 31.1bn for the corresponding period in 2016, an decrease of 6%. It is worth mentioning that Vodafone Qatar was not included in the announcement of the first half financial results due to the fact its financial year starts on April 1 and ends on March 31st of each year. (QSE) IMF: Qatari economy adjusting to impact of blockade The Qatari economy and financial markets are adjusting to the impact of the Gulf diplomatic rift after the initial shock of the June 5, 2017 measures, the International Monetary Fund (IMF) stated in its Regional Economic Outlook. The diplomatic rift between Qatar and four Arab countries is expected to have a limited impact on growth in the region at this stage; the IMF said but noted that a protracted rift could weaken mediumterm growth prospects, not only for Qatar but also for other GCC countries. The initial concern that trade disruptions could affect the implementation of key infrastructure projects has been mitigated by the availability of an inventory of construction materials and of alternative, and competitive, sources of imports, IMF stated. In addition, Qatar is accelerating efforts to further diversify sources of imports and external financing, and to enhance domestic food processing. Some trade has been re-routed through Kuwait and Oman, and alternative food supply sources have been established, allaying fears of potential shortages. Some financial pressures have emerged, the IMF noted and said the downgrade of Qatar s sovereign credit rating and outlook has raised interbank interest rates, and private sector deposits (both resident and non-resident) have declined. Qatar s exports to these countries have been broadly maintained, including large volumes of gas supplied to Oman and the UAE, IMF said. (GulfTimes.com) Qatar s PPP development to boost private sector The development of public-private partnerships (PPPs) in Qatar, among other places, will boost the private sector and improve the business environment, the IMF noted in a report. Qatar s one-stop window for business registration and licensing was also hailed by the IMF as a progress in this direction. In its Regional Economic Outlook, the IMF said policymakers are also taking steps to improve the business environment more generally to encourage private investment and job creation. Such growth-enhancing reforms have taken on more urgency given the needed fiscal consolidation. The GCC countries have already launched ambitious national development strategies, and authorities are now proceeding to the implementation phase. One of the key tasks in this respect will be to embed these strategies into sound medium term macroeconomic frameworks. (GulfTimes.com) Plans to introduce direct shipping lines to North Africa Qatar is considering to start direct shipping lines from the newly opened Hamad Port to North Africa region, connecting several countries, including Tunisia, Morocco and other Arab states in the region to boost bilateral trade. The idea of introducing direct marine link with the region will not only be limited to expanding trade volume but also to use the region as a gateway to Europe and other countries to exporting and reexporting goods from the multi-billion dollar Hamad Port and the upcoming food processing complex being developed adjacent to the iconic port. Qatar Chamber s Vice Chairman, Mohammed bin Ahmed Bin Towar Al Kuwari said, New shipping lines are expected to be started from the Hamad Port to North Africa region, including Tunisia. As Qatar is working to achieve food security by developing a hub at Hamad Port, we are working to establish strategic partnership with many North African and European countries to meet their demands for food grains and other goods. (Peninsula Qatar) IMF: Qatari economy adjusts to blockade After the initial shock of the June 5 measures, the Qatari economy and financial markets are adjusting to the impact of the diplomatic rift, International Monetary Fund (IMF) noted. The initial concern that trade disruptions could affect the implementation of key infrastructure projects has been mitigated by the availability of an inventory of construction materials and of alternative, and competitive, sources of imports. In addition, Qatar is accelerating efforts to further diversify sources of Page 2 of 7

3 imports and external financing and to enhance domestic food processing, IMF stated in its Middle East and Central Asia Regional Economic Outlook released. Qatar s exports to these countries have been broadly maintained, including large volumes of gas supplied to Oman and the United Arab Emirates. Reactions in GCC financial markets have also been benign, with initial spillovers rapidly dissipating. Over the longer term, a protracted rift could slow progress toward greater GCC integration and cause a broader erosion of confidence, reducing investment and growth and increasing funding costs in Qatar and possibly the rest of the GCC, the IMF document noted. (Peninsula Qatar) Spain posts 43% jump in food exports to Qatar Spain s food exports to Qatar have increased by 43% in the first eight months of 2017, Ambassador Ignacio Escobar said. In terms of bilateral relations with Qatar, the exports of agro-food products have been rising steadily since 2015 in very high terms, around 26% every year. We are setting a record, because from January to August 2017, our food exports to Qatar have risen to 43%, and for the first time we have exceeded 23mn, Escobar told Gulf Times on the sidelines of the 3rd Hospitality Qatar press conference held. Escobar said Spanish products are already in the Qatari market but he also underlined the lack of variety of these products in the Qatari market compared to other countries in the region. (Gulf- Times.com) Hospitality Qatar attracts more players in food and food services sector Many international companies in the food and food services sector have identified growth and investment opportunities in Qatar despite the current political situation in the region, according to organizers of the upcoming 3rd Hospitality Qatar. IFP Qatar s General Manager, George Ayache said many countries represented by their respective companies in the food and food services sector continue to express heightened interest in Qatar. At least 80% of the new participants in the third installment of Hospitality Qatar are from the food and food services sector, Ayache told Gulf Times on the sidelines of a press conference on Hospitality Qatar, which is slated on November 7 to 9 at the Doha Exhibition and Convention Center. Asked if the economic blockade had any impact on Qatar s hospitality sector, Ayache said, It had a positive impact on the exhibition. Also, there are continuous investment opportunities in the country regardless of the political situation in the region. We see new countries entering the Qatari market and they are using Hospitality Qatar as a platform or a gateway to penetrate the Qatari market. (Gulf-Times.com) Maritime transport crucial for global economy Speaking at seminar on Maritime Navigation and Maritime Transport Contracts in Qatar organized by Qatar International Center for Conciliation and Arbitration (QICCA) at Qatar Chamber, QICCA member, Thani Bin Ali Al Thani said that maritime transport is very important for the global economy as 90% of the world s total trade volume happen through it. The seminar also discussed shipping contracts for the export of liquefied natural gas, Nakilat s role in securing Qatar s maritime exports and the legal regulation of maritime concessions in Qatar. (Peninsula Qatar) EIU report: Qatari banks to remain solvent even in The access to international capital markets and liquidity injections from the Qatar Investment Authority (QIA) will keep Qatari banks solvent even in , according to the Economist Intelligence Unit (EIU). But access to international capital markets will be at rising premiums, the EIU said in a risk assessment update. The EIU noted that Qatar s economic diversification investment projects will sustain robust growth until 2030, before slowing thereafter. There remains potential for bursts of high growth if further gas export projects, beyond those planned for the mid-2020s, are approved by the government. Diversification and the expansion of the services sector, funded by the state s hydrocarbons wealth, will also provide opportunities for growth. The population will continue to increase, largely through immigration, to 3.8mn in As a result, growth in real GDP per capita will be much slower than the headline growth, the EIU said. In its rating, the EIU s credit rating agency said Qatar s overall score only improves slightly in , but its ranking declines as other countries improve faster, falling from 36th to 41st globally. (Gulf-Times.com) MDPS: Qatar s general PPI rises 5% MoM in September Qatar s general Producer Price Index (PPI) increased 5% in September when compared with previous month, according to the Ministry of Development Planning and Statistics (MDPS). General PPI of September increased by 17.8% when compared with the same period last year, MDPS stated. Qatar s monthly Producer Price Index (PPI) has shown an increase of 5.1% in September in the mining segment compared with August, the Ministry of Development Planning and Statistics (MDPS) noted, citing the increase of prices of crude petroleum and natural gas as the reason. An increase of 5% has been recorded in September when compared with the previous month s manufacturing index. The price increase is seen in refined petroleum products (by 6.4%), basic chemicals (4.6%), basic metals (1.8%), paper and paper products (1.5%), grain mill and other products (0.1%). (Gulf-Times.com) Qatar bourse aims for futures trading, short-selling by end The Qatar Stock Exchange (QSE) is looking to roll out futures trading and short-selling by the end of 2018, QSE s CEO, Rashid Ali Al Mansoori said, part of a bid to boost liquidity and encourage more IPOs in the next year. Qatar s benchmark stock index has fallen about 18% since early June, but the index has stabilized since then. Al-Mansoori told Reuters in an interview that Qatar wanted to develop its financial markets despite the Gulf crisis. He said the exchange was in the early stages of introducing futures and short-selling, which could start in late 2018, and market making that would boost liquidity was awaiting final approval from the regulator. These tools could encourage IPO activity amid a single listing in the past three years, namely Investment Holding Group s $138mn offering of 60% of its share capital in August. Investment Holding Group was the first family business in Qatar to list its shares. (Gulf-Times.com) Page 3 of 7

4 Qatar Stock Exchange Top Gainers 4.2% Top Decliners 0.0% 3.5% 3.3% 3.3% 2.8% 2.6% 2.3% -4.0% -5.2% -4.9% -4.9% 1.4% -8.0% -7.1% -9.1% 0.0% Aamal Qatar National Cement Ezdan Real Estate Ooredoo Qatar Insurance -12.0% Salam International Al Khaleej Takaful Investment Insurance Investment Holding group Qatar German Co. for Medical Devices Qatar Fuel Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million) QNB Group Milaha Qatar Fuel Investment Holding group Qatar First Bank 0.0 Qatar First Bank Investment Holding group Ezdan Real Estate Vodafone Qatar Al Khaleej Takaful Insurance Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million) 100% 80% 60% 28.29% 8.40% 17.99% 20.07% 6.87% 22.91% Non-Qatari % 20% 45.33% 50.16% (67) Qatari 503 0% Buy Sell 436 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 at 8,146.23, with a gain of 0.22% from the week before. We don t see significant momentum with this week s uptick; volumes were lower than previous weeks. We would like to see more volumes with the expected bounce above the 8,000 level. Indicators are mostly flat, and candlesticks show indecision around the key support. The next potential resistance level is around the previous trough at 8,300, albeit it is a minor one. Our major resistance level remains around the 10,000 level. DEFINITIONS OF KEY TERMS USED IN TECHNICAL ANALYSIS RSI (Relative Strength Index) indicator RSI is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between 0 to 100. The index is deemed to be overbought once the RSI approaches the 70 level, indicating that a correction is likely. On the other hand, if the RSI approaches 30, it is an indication that the index may be getting oversold and therefore likely to bounce back. MACD (Moving Average Convergence Divergence) indicator The indicator consists of the MACD line and a signal line. The divergence or the convergence of the MACD line with the signal line indicates the strength in the momentum during the uptrend or downtrend, as the case may be. When the MACD crosses the signal line from below and trades above it, it gives a positive indication. The reverse is the situation for a bearish trend. Candlestick chart A candlestick chart is a price chart that displays the high, low, open, and close for a security. The body of the chart is portion between the open and close price, while the high and low intraday movements form the shadow. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis. Doji candlestick pattern A Doji candlestick is formed when a security's open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal. Shooting Star/Inverted Hammer candlestick patterns These candlestick patterns have a small real body (open price and close price are near to each other), and a long upper shadow (large intraday movement on the upside). The Shooting Star is a bearish reversal pattern that forms after a rally. The Inverted Hammer looks exactly like a Shooting Star, but forms after a downtrend. Inverted Hammers represent a potential bullish trend reversal. Page 5 of 7

6 Company Name Price November 02 % Change WTD % Change YTD Market Cap. QR Million TTM P/E P/B Div. Yield Qatar National Bank (0.57) (18.23) 111, Qatar Islamic Bank (6.64) 22, Commercial Bank of Qatar (14.71) 10, N/A Doha Bank (2.93) (16.47) 8, Al Ahli Bank (19.23) 6, Qatar International Islamic Bank (21.97) 7, Masraf Al Rayan (6.30) 26, Al Khalij Commercial Bank (1.08) (29.88) 4, Qatar First Bank 6.11 (4.08) (40.68) 1,222 N/A 0.7 N/A National Leasing (34.01) 500 N/A Dlala Holding (3.29) (24.85) N/A Qatar & Oman Investment 7.45 (1.19) (25.13) Islamic Holding Group (4.34) (45.74) Banking and Financial Services 200,931 Zad Holding (0.73) (23.77) Qatar German Co. for Medical Devices 6.66 (4.86) (34.06) 77 N/A 1.1 N/A Salam International Investment 7.00 (9.09) (36.65) Medicare Group (0.77) , Qatar Cinema & Film Distribution (8.93) Qatar Fuel (4.86) (31.03) 9, Widam Food Co (1.64) (11.76) 1, Mannai Corp (1.38) (19.50) 2, Al Meera Consumer Goods (19.63) 2, Consumer Goods and Services 19,795 Qatar Industrial Manufacturing (9.44) 1, Qatar National Cement (19.43) 4, Industries Qatar (18.51) 57, Qatari Investors Group (50.24) 3, Qatar Electricity and Water (0.60) (20.31) 19, Aamal (44.97) 4, Gulf International Services (3.85) (43.73) 3,252 N/A Mesaieed Petrochemical Holding (21.01) 15, Invesment Holding Group 6.55 (5.21) N/A 544 N/A Industrials 111,678 Qatar Insurance (38.97) 12, Doha Insurance (1.48) (23.08) Qatar General Insurance & Reinsurance (1.23) (14.89) 3, Al Khaleej Takaful Insurance (7.11) (48.01) Qatar Islamic Insurance (4.85) (3.93) Insurance 17,688 United Development (35.74) 4, Barw a Real Estate (9.44) 11, Ezdan Real Estate (37.13) 25, Mazaya Qatar Real Estate Development 8.14 (0.73) (40.60) N/A Real Estate 42,556 Ooredoo (13.75) 28, Vodafone Qatar 6.99 (0.14) (25.40) 5,909 N/A 1.3 N/A Telecoms 34,033 Qatar Navigation (Milaha) (2.78) (45.08) 6, Gulf Warehousing (25.00) 2, Qatar Gas Transport (Nakilat) (35.04) 8, Transportation 16,784 Qatar Exchange 443,466 Source: Bloomberg Page 6 of 7

7 Contacts Saugata Sarkar, CFA 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