Week ended June 14, Week ended June 7, Chg. % Market Indicators

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1 ` Market Review and Outlook The Qatar Stock Exchange (QSE) Index declined points or 1.56% during the trading week to close at 9, Market capitalization fell by 2.35% to QR499.5 billion (bn) versus QR511.5bn at the end of the previous trading week. Of the 45 listed companies, 17 companies ended the week higher, while 25 declined and 3 remained unchanged. Dlala Brokerage (DBIS) was the best performing stock for the week with a gain of 5.5% on 1.53 million (mn) shares traded. On the other hand, Qatar Cinema (QCFS) was the worst performing stock for the week with a decline of 9.1% on 73 shares traded. QNB Group (QNBK), Industries Qatar (IQCD), and Ooredoo (ORDS) were the primary contributors to the weekly index decline. QNBK was the biggest contributor to the index s weekly decline, deleting 54.8 points from the index. IQCD was the second biggest contributor to the mentioned losses, shaving off 35.2 points from the index. Moreover, ORDS deleted 30.5 points from the index. However, Qatar Gas Transport Co. (QGTS) added 14.5 points to the index. Trading value during the week increased by 68.27% to reach QR4.0bn versus QR2.4bn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 72.85% of the total trading value. The Industrials sector was the second biggest contributor to the overall trading value, accounting for 12.80% of the total trading value. QNBK was the top value traded stock during the week with total traded value of QR2.3bn. Trading volume decreased by 0.01% to reach 62.0mn shares versus 62.1mn shares in the prior week. The number of transactions decreased by 10.08% to reach 26,399 transactions versus 29,358 transactions in the prior week. The Banks and Financial Services sector led the trading volume, accounting for 42.74%, followed by the Telecoms sector which accounted for 16.42% of the overall trading volume. QNBK was the top volume traded stock during the week with 14.4mn shares. Foreign institutions remained bullish with net buying of QR1.3bn vs. net buying of QR705.0mn in the prior week. Qatari institutions remained bearish with net selling of QR995.5mn vs. net selling of QR202.5mn in the week before. Foreign retail investors turned bullish with net buying of QR8.7mn vs. net selling of QR61.4mn in the prior week. Qatari retail investors remained bearish with net selling of QR303.5mn vs. net selling of QR441.2mn the week before. Foreign institutions bought (net basis) ~$1.1bn worth of Qatari equities YTD as of yesterday and not including today s significant FTSE rebalance. QSE Index and Volume 9,300 9,150 9,000 Market Indicators Week ended June 14, 2018 Week ended June 7, 2018 Chg. % Value Traded (QR mn) 3, , Exch. Market Cap. (QR mn) 499, ,542.2 (2.3) Volume (mn) (0.0) Number of Transactions 26,399 29,358 (10.1) Companies Traded Market Breadth 17:25 32:9 Market Indices Close WTD% MTD% YTD% Total Return 16, (1.6) ALL Share Index 2, (2.1) Banks and Financial Services 3, (2.0) Industrials 2, (1.8) Transportation 1, Real Estate 1, (3.7) (0.9) (15.9) Insurance 3, (3.4) 8.6 (9.0) Telecoms (3.2) 5.3 (10.0) Consumer Goods & Services 5, (2.7) Al Rayan Islamic Index 3, (1.1) Market Indices Weekly Index Performance 4.0% 2.0% 0.0% (2.0%) 9, , , , , Jun 11-Jun 12-Jun 13-Jun 14-Jun 3.4% Bahrain 1.1% 0.8% Abu Dhabi Kuwait Volume QSE Index (0.0%) (0.1%) Oman# Dubai (0.9%) Saudi Arabia## (1.6%) Qatar (QSE)* 34,000,000 17,000,000 0 Regional Indices Close WTD% MTD% YTD% Weekly Exchange Traded Value ($ mn) Exchange Mkt. Cap. ($ mn) TTM P/E** P/B** Dividend Yield Qatar (QSE)* 9, (1.6) , , Dubai 3, (0.1) 2.5 (9.8) ,113.0 # Abu Dhabi 4, , Saudi Arabia ## 8, (0.9) , , Kuwait 4, (2.4) , Oman # 4, (0.0) (0.2) (9.9) , Bahrain 1, (1.8) , Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; # Data as of June 13, 2018; ## Data as of June 12, 2018) Page 1 of 6

2 News Economic & Corporate News QNB Group: Qatar s goods trade surplus benefiting from recovering imports, buoyant exports Qatar s goods trade surplus is benefiting from recovering imports and buoyant exports, driven by higher hydrocarbon prices, QNB Group stated in its weekly economic commentary. The latest monthly indicators on trade and industrial prices show the Qatari economy benefiting from higher global hydrocarbon prices, ensuring that the already dwindling impact of the diplomatic rift on the economy recedes yet further. In particular, the latest monthly trade statistics showed the goods trade surplus increased higher in April. In level terms, the surplus topped QR14.7bn. In percentage terms, the surplus was up a stunning 49% YoY versus April The surpluses surge is a byproduct of recovering, but still muted, import growth (up 3.1%) and, most importantly, a buoyant export performance due to higher hydrocarbon prices. In level terms, April s exports were up more than QR5bn versus a year ago; a gain of more than 27%. Inevitably, the export surge is driven by the dominant hydrocarbon sector, whose exports were up QR4.7bn versus last April so accounting for around 90% of exports total gain. (Gulf-Times.com) Mannai Corporation raises its stake in Gfi Informatique to 96% Mannai Corporation is acquiring an additional 15% stake in Gfi Informatique for 87mn, effectively taking its total holding in the Paris-based IT firm to 96%. Mannai Corporation will buy 10.21mn shares or 15% at 8.5 per piece from Apax France, Altamir and Boussard and Gavaudan, through off-market transactions, effective from June 14, Following the completion of this acquisition, Mannai Corporation will alone hold 96% of the share capital and voting rights of Gfi Informatique; whereas Apax France, Altamir and Boussard and Gavaudan will no longer hold shares in Gfi Informatique. (Gulf- Times.com) Nakilat signs deal to set up JV and buy 55% stake in FSRU Qatar Gas Transport Company Limited (Nakilat) signed an agreement with Texas-based Excelerate Energy to establish a joint-venture entity (JV) and acquire 55% stake in a floating storage regasification unit (FSRU) as part of efforts to expand its global footprint. Minister of Energy and Industry, Mohamed Bin Saleh Al Sada said, This acquisition is pivotal to Qatar, as this is the first FSRU co-owned by a Qatari company, which paves the way for Qatari liquefied natural gas (LNG) to expand its outreach to developing and emerging markets. This will enable Nakilat to widen its international outreach and thus, secure its industry-leading position in the dynamic and competitive LNG market. Nakilat s CEO, Abdullah Al Sulaiti said it is proud to be the first Qatari company to acquire ownership in an FSRU as it aims at maintaining its leadership in energy transportation and simultaneously support the country s position as the top exporter of clean energy worldwide. (Gulf-Times.com) Qatar Stock Exchange working to develop REITs; sees ETF pipeline Qatar Stock Exchange is looking to develop Real Estate Investment Trusts (REITs) that could have domestic and international underlying properties, Mohsin Mujtaba, Director of products and market development, said in a joint conference call with FTSE Russell. Bourse is already talking to local developers to bring their properties into a REIT, Mujtaba said, without mentioning expected date of launch. More ETFs are in pipeline after two were launched in Qatar earlier this year, Mujtaba added. Exchange has seen increased activity by foreign investors following increase in foreign ownership limit to 49% earlier this year, leading to inflows from institutional investors. Further, he noted that IPO of Qatar Petroleum aluminum venture expected for this year should be sizable. (Bloomberg) AkzoNobel extends Nakilat supply deal for vessel coating Paint-maker AkzoNobel secured a two-year deal with Qatar Gas Transport Company Limited (Nakilat) to continue supplying a coating that prevents slime from accumulating on ships and reducing its performance. The two companies already have a long-standing relationship. The new agreement means that by the end of 2018, AkzoNobel will supply more than 640,000 liters of its award-winning foul release coating the Intersleek 1100SR. (Qatar Tribune) CBQK ends talks with Tabarak Investment on UAB s stake The Commercial Bank (CBQK) ceased discussions with Tabarak Investment, owned by Tabarak Commercial Investment One Person Company, in respect of the potential purchase of CBQK s stake in United Arab Bank (UAB), a publicly listed entity on the Abu Dhabi Securities Exchange with its registered head office in Sharjah, UAE. (QSE) Woqod raises non-qatari ownership to 49% Qatar Fuel Company s (Woqod) annual general meeting amended Article 9-1 of Woqod s Articles of Association to raise non-qatari ownership to 49% of the company s share capital and to raise the limits of private ownership to 1%. Woqod s CEO, Saad Rashid Al Muhannadi said, The amendment aims to give effect to the instructions of Qatar Petroleum to its listed affiliate companies, and also to address the request of Qatar Stock Exchange to undertake the said amendments with the purpose of enhancing the investment attractiveness of Qatari companies, after the classification of the state of Qatar was raised by MSCI and a number of international indexing agencies to the level of emerging markets, thus becoming the largest emerging market in the region. (Gulf-Times.com) BRES EGM declares the increase of non-qatari shareholding percentage to 49% and approves the amendment to the Articles of Association Barwa Real Estate Company (BRES) held the company s Extraordinary General Assembly meeting (EGM) on June 6, The EGM endorsed all proposals and recommendations made by the board members regarding the following: 1) The approval to increase the shareholding percentage of non-qataris in the shares of the company from 25% to 49% of the total shares of the company. 2) The approval to amend the company s Articles of Association to be in accordance with the amendments of non-qatari ownership percentages. All necessary measures are to be taken in accordance with the relevant laws and procedures to implement the said decision, after obtaining the approval from the Ministry of Economy. (QSE) Page 2 of 6

3 Qatar Stock Exchange Top Gainers Top Decliners 6.0% 5.5% 0.0% 4.0% 4.5% 4.3% 4.2% 4.0% -4.0% -5.1% -5.0% 2.0% -8.0% -6.2% -6.2% -9.1% 0.0% Dlala Holding Zad Holding Milaha Mannai Corp. Qatar Gas Transport (Nakilat) -12.0% Qatar Cinema & Film Distribution Qatar Fuel Ooredoo Qatar Insurance United Development Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million) 2, , , QNB Group Qatar Islamic Bank Industries Qatar Qatar Electricity and Water Qatar Gas Transport (Nakilat) 0.0 QNB Group Vodafone Qatar Qatar Gas Transport (Nakilat) Masraf Al Rayan Qatar Islamic Bank Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million) 100% 80% 81.77% 49.28% Non-Qatari 1,299 2,049 3,348 60% 2.32% 40% 20% 2.54% 3.14% 12.55% 28.21% 20.20% (1,299) Qatari 1,922 0% Buy Sell 623 Qatari Individuals Qatari Institutions (2,000) (1,000) - 1,000 2,000 3,000 4,000 Non-Qatari Individuals Non-Qatari Institutions Net Investment Total Sold Total Bought Page 3 of 6

4 TECHNICAL ANALYSIS OF THE QSE INDEX Source: Bloomberg The QE General Index closed slightly down for the week by 1.56% from the week before, and closed at 9, for Thursday s close. The Index remained above the 9,000 level, but the possibility of testing the mentioned level is strong in the coming weeks. Our resistance levels remains at the 9,500-9,600 points. On the other hand, support remains around the 8,600 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 4 of 6

5 Company Name Price June 14 % Change WTD % Change YTD Market Cap. QR Million TTM P/E P/B Div. Yield Qatar National Bank (3.41) , Qatar Islamic Bank (1.47) , Commercial Bank of Qatar , Doha Bank (3.51) 8, Al Ahli Bank (0.33) (18.94) 6, Qatar International Islamic Bank (1.15) 8, Masraf Al Rayan (1.46) (8.61) 25, Al Khalij Commercial Bank (0.92) (23.94) 3, Qatar First Bank 5.28 (2.40) (19.14) 1,056 N/A 0.7 N/A National Leasing 9.60 (0.93) (10.36) Dlala Holding (2.45) N/A Qatar & Oman Investment 6.23 (0.32) (21.14) Islamic Holding Group (1.40) (26.64) 156 N/A 1.1 N/A Banking and Financial Services 245,450 Zad Holding , Qatar German Co. for Medical Devices 5.29 (1.12) (18.11) 61 N/A 1.2 N/A Salam International Investment (23.37) 604 N/A 0.4 N/A Medicare Group (8.95) 1, Qatar Cinema & Film Distribution (9.05) (19.96) Qatar Fuel (6.22) , Widam Food Co (0.80) 1, Mannai Corp (17.68) 2, Al Meera Consumer Goods (0.01) , Consumer Goods and Services 23,602 Qatar Industrial Manufacturing (4.46) 1, Qatar National Cement (1.89) (13.28) 3, Industries Qatar (2.71) , Qatari Investors Group (1.10) (16.26) 3, Qatar Electricity and Water , Aamal 9.10 (1.52) , Gulf International Services (1.68) (3.95) 3, N/A Mesaieed Petrochemical Holding (3.19) , Invesment Holding Group 5.50 (1.08) (9.84) Industrials 122,711 Qatar Insurance (5.11) (17.53) 11, Doha Insurance (7.14) Qatar General Insurance & Reinsurance , Al Khaleej Takaful Insurance (15.41) Qatar Islamic Insurance (8.13) Insurance 17,964 United Development (5.02) (2.57) 4, Barw a Real Estate (3.26) , Ezdan Real Estate 8.49 (3.85) (29.72) 22, N/A Mazaya Qatar Real Estate Development (23.33) N/A Real Estate 41,315 Ooredoo (6.22) (22.75) 22, Vodafone Qatar ,389 N/A 1.6 N/A Telecoms 29,843 Qatar Navigation (Milaha) , Gulf Warehousing (3.16) 2, Qatar Gas Transport (Nakilat) , Transportation 18,660 Qatar Exchange 499,545 Source: Bloomberg Page 5 of 6

6 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 6 of 6