Week ended Aug 10, Week ended Aug 17, Chg. % Market Indicators

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1 ` Market Review and Outlook The Qatar Stock Exchange (QSE) Index decreased points, or 1.48% during the trading week to close at 9, Market capitalization decreased by 1.47% to QR billion (bn) versus QR500.90bn at the end of the previous trading week. Of the 45 listed companies, 3 companies ended the week higher, while 38 declined and 4 remained unchanged. Qatar Islamic Bank (QIBK) was the best performing stock for the week with a gain of 2.00% on 151,553 shares traded. On the other hand, Investment Holding Group (IGRD) was the worst performing stock for the week with a decline of 18.90% on million (mn) shares traded. Note that IGRD began trading on the exchange on Monday. Masraf Al Rayan (MARK), Qatar Gas Transportation Co.(QGTS) and Ooredoo (ORDS) were the primary contributors to the weekly index decrease. MARK was the biggest contributor to the index s weekly decline, deleting points from the index. QGTS was the second biggest contributor to the decrease, shaving off points from the index. Moreover, ORDS erased points from the index. Alternatively, Qatar Islamic Bank (QIBK) contributed positively to the index, adding points to the index. Trading value during the week decreased by 6.06% to reach QR0.81bn versus QR0.86bn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 37.64% of the total trading value. The Industrials sector was the second biggest contributor to the overall trading value, accounting for 21.39% of the total trading value. Vodafone Qatar (VFQS) was the top value traded stock during the week with total traded value of QR124.31mn. Trading volume increased by 16.63% to reach 37.62mn shares versus 32.25mn shares in the prior week. The number of transactions rose by 29.47% to reach 12,605 transactions versus 9,736 transactions in the prior week. The Telecoms sector led the trading volume, accounting for 37.68%, followed by the Industrials sector which accounted for 24.70% of the overall trading volume. VFQS was the top volume traded stock during the week with total traded volume of 13.9mn shares. Foreign institutions turned bearish with net selling of QR71.5mn vs. net selling of QR61.5mn in the prior week. Qatari institutions turned bullish with net buying of QR16.2mn vs. net selling of QR10.9mn the week before. Foreign retail investors remained bullish with net buying of QR3.1mn vs. net buying of QR6.6mn in the prior week. Qatari retail investors remained bullish with net buying of QR52.2mn vs. net buying of QR65.8mn the week before. In 2017 YTD, foreign institutions bought (on a net basis) ~$731mn worth of equities. QSE Index and Volume 9,250 9,075 8,900 Market Indicators Week ended Aug 17, 2017 Week ended Aug 10, 2017 Chg. % Value Traded (QR mn) (6.1) Exch. Market Cap. (QR mn) 493, ,902.1 (1.5) Volume (mn) Number of Transactions 12,605 9, Companies Traded (2.3) Market Breadth 3:38 9:35 Market Indices Close WTD% MTD% YTD% Total Return 15, (1.5) (3.2) (9.6) ALL Share Index 2, (2.0) (3.5) (9.9) Banks and Financial Services 2, (1.0) (2.2) (3.0) Industrials 2, (0.9) (3.6) (16.7) Transportation 1, (2.4) (5.1) (24.3) Real Estate 1, (5.0) (6.2) (13.1) Insurance 3, (3.0) (2.0) (9.8) Telecoms 1, (2.4) (5.8) (8.0) Consumer Goods & Services 5, (2.6) (3.1) (9.0) Al Rayan Islamic Index 3, (1.3) (3.0) (6.1) Market Indices Weekly Index Performance 2.5% 1.5% 0.5% (0.5%) (1.5%) (2.5%) 9, , , , Aug 14-Aug 15-Aug 16-Aug 17-Aug Volume QSE Index 0.6% Kuwait (0.5%) Saudi Arabia (1.3%) (1.3%) (1.5%) Dubai Abu Dhabi Qatar (QSE)* (1.9%) (2.0%) Bahrain 12,000,000 9, ,000,000 Oman 0 Regional Indices Close WTD% MTD% YTD% Weekly Exchange Traded Value ($ mn) Exchange Mkt. Cap. ($ mn) TTM P/E** P/B** Dividend Yield Qatar (QSE)* 9, (1.5) (3.2) (12.7) , Dubai 3, (1.3) (0.9) ,177.0 # Abu Dhabi 4, (1.3) (1.6) (1.2) , Saudi Arabia # 7, (0.5) 0.5 (1.1) 4, , Kuwait 6, , Oman 4, (2.0) (2.7) (15.5) , Bahrain 1, (1.9) (2.2) , Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; # Data as of August 16, 2017) Page 1 of 7

2 News Economic & Corporate News QNB Group: Qatar s bank assets jump 11.6% YoY to QR1.32tn in June Qatar s bank assets grew 11.6% YoY in June to QR1.32tn, compared to a growth of 12.3% in May, QNB Group said and noted that domestic assets grew 12.4% YoY in June from 11% in the previous month. Foreign assets grew 11% YoY in June, from 15.4% in May, QNB Group said in its latest Qatar Monthly Monitor. Deposits at Qatar s banks grew by 12.7% YoY in June compared to 11.7% in May. The share of nonresident deposits to total deposits fell marginally to 22.1% from 24.2% the previous month. Non-resident deposits slowed to 26.6% YoY from 31.6% growth the previous month. Private sector deposits slowed to 2.4% YoY compared to 8.9% in June, while public sector deposits growth accelerated to 21.4% compared to 2.2% in June. The QNB Group report showed that loan growth stood at 12% YoY in June, up from 9.8% in May. Loans to the public sector (around 40% of total domestic credit) grew 19.6% YoY versus 16.3% growth in the previous month. Private sector loans grew by 7.6% YoY while foreign credit grew by 11.1%. Qatar s broad money supply (M2) grew by 7.8% in June compared to 4.7% in May, mainly due to a sharp growth in foreign currency deposits, the QNB Group report showed. (Gulf-Times.com) Milaha launches direct container service between Qatar and Kuwait Qatar Navigation (Milaha) has launched the first ever direct feeder service between Qatar and Kuwait. The new service, named KQX (Kuwait Qatar Express Service), will operate between Hamad Port in Qatar and Shuwaikh Port in Kuwait once a week initially, using a 515 TEU (twenty-foot equivalent unit) vessel. With 50 reefer plugs available on the vessel and a highly competitive transit time of a day, the new service is ideal for transporting perishable products and foodstuff, among other cargoes, coming into and out of Qatar, as well as for connecting Kuwait to Milaha s broader feeder network in the Arabian Gulf and beyond. Commenting on the new service, Milaha s President and CEO Abdulrahman Essa al- Mannai said, Qatar and Kuwait have long enjoyed strong economic ties, and today, we are building further on these ties with the launch of the Kuwait Qatar Express Service, which represents a fast and cost-efficient solution, particularly for local and regional exporters aiming to enter the Qatari market. Going forward, our track record in delivering reliable and innovative supply chain solutions allows us to continue responding flexibly to our clients specific requirements with solid value propositions. (Gulf-Times.com) Qatar Investment Authority to announce new investments soon The Qatar Investment Authority (QIA) has made it clear that it has no plans to liquidate its assets around the world and added the QIA will soon announce major new international investments, Lusail daily reported. We have just completed a tour of several countries around the world and you will hear about significant investments soon, the daily quoted QIA s CEO Sheikh Abdullah bin Mohamed bin Saud Al Thani as saying. However, Sheikh Abdullah did not give details of the new investments. The QIA s Chief said economic sanctions imposed on Qatar by Saudi Arabia and three other Arab states had not affected the Qatar sovereign wealth fund s investments and would make new announcements soon. QIA oversees around $338bn in assets, according to Sovereign Wealth Center. It is one of the largest funds in the world, according to the research organization. (Peninsula Qatar) Business avenues widen in Qatar after Saudi Arabia-led siege Many industrialists and businessmen are setting up manufacturing facilities in Qatar in the wake of the Gulf crisis, leading businessman Ahmad Hussain stated. He said, The blockade of Qatar has given strength to nationalism and inspired many people like me to establish new manufacturing companies and factories here. Hussain, who is also the Chief Executive Officer of Pharma Packaging Industries, credited Qatar government s quick initiatives in the aftermath of the Saudi-led blockade to the increase in the number of applications in the industrial sectors of Qatar. Qatar government s Own your Factory in Qatar in 72 Hours project has already attracted as many as 9,349 applications from local and international companies. (Gulf-Times.com) Consumer confidence in Qatar rises in 2Q2017 The consumer confidence index on the economic performance of Qatar rose nearly 0.1 points during the second quarter of 2017, compared to the first quarter of the same year, according to a report issued by the Ministry of Development Planning and Statistics (MDPS). The quarterly report of the consumer confidence index showed that the index reached points compared to points during the first quarter of The index ranges between points. According to the report, families expressed optimism about the current situation in the second quarter of 2017 compared to the first quarter of the same year, reflecting the continued confidence of consumers in the economic situation in the country, and confirming the ability of the Qatari economy to overcome the challenges despite the unjust siege. (Gulf-Times.com) Cost of living in Qatar up by 0.2% MoM in July Qatar s cost of living, based on consumer price index (CPI), increased slightly by 0.2% MoM in July due to higher expenses on food and beverages, recreation and culture, transport, and health, according to the Ministry of Development Planning and Statistics figures. Similarly, CPI inflation rose 0.2% YoY on increasing prices in transport, food and beverages, education, and health. The index of Food and Beverages, which has a 12.58% weight, jumped 4.2% MoM this July and 4.5% on a yearly basis. (Gulf-Times.com) QSE to do more for effective corporate disclosure Qatar Stock Exchange s (QSE) Chief Executive Officer (CEO) Rashid bin Ali Al Mansoori said the corporate disclosures in the country is one of the best in the region in terms of transparency. The bourse will, though, talk to all the stakeholders and make sure that the financials of the listed companies are in line with the global best practices. Al Mansoori said, Right now, we don t have any issue. But we do believe this is not the end. We will continue to further improve the quality corporate disclosures. Earlier, talking to the Peninsula, a section of Qatar-based fund managers had shared the concern that lack of transparency in the corporate disclosures of some listed companies was an Page 2 of 7

3 issue for international investors. They were of the view that some largest publicly traded companies do not demonstrate enough transparency measures to help investors take proper investment decisions. They could make quality fundamental analysis of the companies only if they get access to quality financial reports. They said companies with hard to understand disclosures are riskier as investors can never be sure about those companies real fundamentals. (Peninsula Qatar) Qatar s LNG exports to Pakistan to reach $1bn, says official Qatar s exports of liquefied natural gas (LNG) to Pakistan are expected to reach $1bn per year, an official said during the first Qatar-Pakistan Business Council meeting held at the Qatar Chamber headquarters. During the meeting, Federation of Pakistan Chambers of Commerce & Industry President Zubair F Tufail lauded Qatar s LNG exports to Pakistan, whose industrial sector, according to him, suffered losses due to power outages. Citing the challenges Pakistan is facing the field of energy supply, Tufail said until last year, the country had endured long power outages lasting to as long as 16 hours per day. (Gulf-Times.com) QSE listed companies reported QR20bn net profit for 1H2017 With the end of disclosure period for 1H2017, forty - four companies out of the forty five listed companies at Qatar Stock Exchange (QSE) have disclosed their financial statements results for the six month period ended June 30, 2017, The combined net profit of all companies as of June 30, 2017 amounted to QR20bn versus QR21.7bn for the corresponding period in 2016, decrease of 7.8%. 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) QSE chief reiterates interest of family firms in Qatar to go public Family companies in Qatar have expressed a great deal of interest to list on the Qatar Stock Exchange (QSE), said QSE s CEO Rashid bin Ali al-mansoori, who noted that the listing of Investment Holding Group would stimulate other family companies to go public on the QSE. We are pleased to welcome Investment Holding Group into the family of listed companies on the exchange. Investment Holding Group is a company that will increase exchange depth and bring new opportunities to the investing public, Al-Mansoori said during Investment Holding Group s listing ceremony. Investment Holding Group Deputy CEO Mohamad Ghanim al-hodaifi rang the market-opening bell to celebrate the firm s milestone. Al- Mansoori said the listing, which brings the total number of QSE-listed companies to 45, demonstrates the interest of family businesses in listing on the QSE. (Gulf-Times.com) Pakistan pharmaceutical companies to set up manufacturing plants in Qatar Two top Pakistani pharmaceutical companies, including Martin Dow Pharmaceuticals, are set to begin manufacturing drugs in Qatar within a year, according to the Head of a visiting trade delegation from South Asia. Martin Dow is a leading drug manufacturing company in Pakistan which also owns two plants in France. We have had a very healthy discussions yesterday and today with representatives from government entities and Qatari businessmen. The results of the meetings are very fruitful and encouraging. Several cooperation agreements have been signed, Zubair F Tufail, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) stated. Zubair, while talking on the sidelines of the first meeting of Qatar-Pakistan Joint Business Council, added, Under the new cooperation agreements, two leading pharmaceutical firms are going to set up manufacturing plants in Qatar immediately with 100% ownership, which are expected to bring the first batch of their products within a year. A 12-member trade delegation consisting of top business leaders from a wide-range of industries, including food and agriculture, textiles, chemicals, education and Islamic finance, concluded their two-day visit to Doha. (Peninsula Qatar) Doha Bank CEO: Qatar remains financially stable Qatar has remained resilient amid the Gulf crisis, according to the Chief Executive Officer (CEO) of Doha Bank Dr R. Seetharaman, who described the country s financial system as stable and functional. These are changing and challenging times. Qatar has proved to be resilient, Doha Bank s CEO Dr R. Seetharaman said. He said Qatar s total reserves stood at $340bn, including assets of its sovereign wealth fund, Qatar Central Bank (QCB) reserves, cash, and gold. Essentially the 30% reserves in June were only QCB reserves to improve local market liquidity. Qatar s reserves are more than twice of its GDP. In terms of financial stability, Qatar is strong, stable and functional, Seetharaman pointed out. (Gulf-Times.com) QFLS' bottom line rises 11.4% QoQ in 2Q2017 Qatar Fuel Company s (QFLS) net profit rose 11.4% QoQ to QR196.6mn in 2Q2017 as compared to QR176.5mn in 1Q2017. EPS amounted to QR3.75 in 1H2017 as compared to QR5.43 in 1H2016. In 1H2017, QFLS reported a net profit (after excluding minority interest) of QR373mn as compared to QR540mn in 1H2016, with a decrease of QR167mn or 31% YoY. QFLS CEO Saad Rashid Al-Muhannadi said the reason for the decrease in earnings was primarily due to the change in terms for fuel supplies to QFLS and its customers and secondly to the increase in the National Pension Funds contributions as per the current legislation, as well as the decline in the value of investment in shares. Al-Muhannadi said QFLS would exert its best endeavors to improve the results in future. He said four stations were opened in 1H2017, whereas eight stations are under construction and 14 are under their tendering and designing stage. In this respect, he also spoke about petrol stations expansion projects. He said two such projects were completed and three are pending completion. Al-Muhannadi also said that QFLS is currently coordinating with the Municipality for the allocation of 26 locations for the construction of petrol stations. With regard to FAHES centers, he said three centers will be opened in 2017, whereas another two centers will be opened in (QSE, Gulf-Times.com) Page 3 of 7

4 Qatar Stock Exchange Top Gainers Top Decliners 0.0% 3.0% 2.0% 2.0% -9.0% -9.0% -7.4% -6.8% -6.2% 1.0% 1.1% 0.9% -18.0% -18.9% 0.0% Qatar Islamic Bank Gulf Warehousing Qatar & Oman Investment -27.0% Investment Holding group Qatar General Insurance & Reinsurance Qatar Cinema & Film Distribution Mazaya Qatar Ezdan Real Estate Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million) Vodafone Qatar QNB Group Gulf International Services Doha Bank Investment Holding group 0.0 Vodafone Qatar Investment Holding group Gulf International Services United Development Doha Bank Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million) 100% 80% 60% 7.83% 9.33% 24.54% 16.69% 8.95% 22.54% (68) Non-Qatari % 58.30% 51.83% 68 20% Qatari 600 0% Buy Sell 669 Qatari Individuals Qatari Institutions (200) 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 another week, this time by 1.48% from the week before and now it sits at 9, Weakness continued but the good news is that the Index reached around the 9,000 level which we have expected and it is considered as a strong support. We would like to see a reversal signal around here to see a relief rally. Our expected resistance remains around the 10,000 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 August 17 % Change WTD % Change YTD Market Cap. QR Million TTM P/E P/B Div. Yield Qatar National Bank (0.44) (8.23) 125, Qatar Islamic Bank (6.83) 22, Commercial Bank of Qatar (1.80) (3.24) 12, N/A Doha Bank (3.81) (10.09) 9, Al Ahli Bank (15.19) 6, Qatar International Islamic Bank (2.28) (11.46) 8, Masraf Al Rayan (2.31) , Al Khalij Commercial Bank (2.23) (25.24) 4, Qatar First Bank 7.41 (1.72) (28.06) 1,482 N/A 0.9 N/A National Leasing (4.49) (13.90) 653 N/A Dlala Holding (16.01) N/A Qatar & Oman Investment (13.67) Islamic Holding Group (4.26) (20.74) Banking and Financial Services 222,519 Zad Holding (15.92) Qatar German Co. for Medical Devices 8.02 (2.20) (20.59) 93 N/A 1.3 N/A Salam International Investment 8.88 (1.33) (19.64) 1, Medicare Group (3.45) , Qatar Cinema & Film Distribution (7.41) (8.93) Qatar Fuel (3.23) (21.51) 10, Widam Food Co (1.48) (2.21) 1,197 N/A Mannai Corp (2.60) (6.38) 3, Al Meera Consumer Goods (1.57) (14.25) 3, Consumer Goods and Services 22,486 Qatar Industrial Manufacturing (1.15) (3.37) 2, Qatar National Cement (0.43) (10.21) 4, Industries Qatar (0.21) (20.68) 56, Qatari Investors Group (1.05) (19.32) 5, Qatar Electricity and Water (1.50) (15.90) 20, Aamal (2.55) (21.35) 6, Gulf International Services (2.76) (35.47) 3,730 N/A Mesaieed Petrochemical Holding (16.71) 16, Invesment Holding Group 8.11 (18.90) N/A 673 N/A 0.8 N/A Industrials 117,574 Qatar Insurance (2.01) (7.38) 18, Doha Insurance (2.28) (24.73) Qatar General Insurance & Reinsurance (9.01) (34.47) 2, Al Khaleej Takaful Insurance (5.70) (26.26) Qatar Islamic Insurance (3.79) Insurance 23,555 United Development (4.12) (22.28) 5, Barw a Real Estate (2.37) (0.75) 12, Ezdan Real Estate (6.18) (20.58) 31, Mazaya Qatar Real Estate Development (6.81) (26.08) 1, N/A Real Estate 51,527 Ooredoo (2.70) (11.59) 28, Vodafone Qatar 8.86 (1.01) (5.44) 7,490 N/A 1.6 N/A Telecoms 36,319 Qatar Navigation (Milaha) (1.07) (32.53) 7, Gulf Warehousing (15.00) 2, Qatar Gas Transport (Nakilat) (4.41) (26.72) 9, Transportation 19,551 Qatar Exchange 493,530 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