Award Winner 2010 Excellence in Brokerage Business Awarded for Research Promotion and Website Content

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1 Award Winner 2010 Excellence in Brokerage Business Awarded for Research Promotion and Website Content By Muscat Securities Al Maha EYE Global markets & Commodities Watch GLOBAL NEWS WATCH International Indices Index Value USA Dow Jones 15, S&P 500 1, NASDAQ 3, EUROPE FTSE 100 6, CAC 40 4, DAX 30 8, ASIA NIKKEI 14, Hang Seng 22, Strait Times 3, Regional Indices Index Value Muscat 6, Saudi Arabia 8, Dubai 2, Abu Dhabi 3, Kuwait (Price Index) 7, Bahrain 1, Qatar 9, Commodities Crude Oil ($/bbl) Value Crude Oil (WTI) Crude Oil (Brent) Metals Value Gold Future $/OZ 1, Silver Future $/OZ Aluminum $/T 1, Copper $/T 7, Nickel $/T 14, Asian stocks fall for second day 24-Oct-13 Asian stocks fell for a second day after U.S. shares retreated from a record amid disappointing company earnings forecasts. The decline was limited after a private gauge of Chinese manufacturing increased. The MSCI Asia Pacific Index slipped 0.2 percent to , paring losses of as much as 0.5 percent. China s Shanghai Composite Index slid 0.2 percent. Hong Kong s Hang Seng Index slipped 0.88 percent and Japan s Topix index fell 0.4 percent. U.S. stocks drop after 5-day rally on earnings forecasts U.S. stocks declined, with the Standard & Poor s 500 Index falling from a record, as valuations reached an almost four-year high and earnings forecasts disappointed investors. The S&P 500 fell 0.47 percent to 1,746.38, snapping a five-day, 3.3 percent rally. The Dow Jones Industrial Average lost points, or 0.35 percent, to 15, About 6.6 billion shares changed hands on U.S. exchanges, 12 percent higher than the three-month average. Dollar weakens versus peers on taper outlook The dollar weakened versus most major peers as signs that U.S. growth was hampered by a partial government shutdown fueled speculation the Federal Reserve will push back the timing of monetary stimulus reductions. The dollar slid 0.1 percent to $ per euro after sliding to $ yesterday, the weakest since November It was down 0.1 percent to yen after falling 0.8 percent yesterday and touching 97.16, the lowest level since October 9. The 17-nation euro was at yen from WTI rebounds from near 4-month low; U.S. stockpiles rise West Texas Intermediate crude rose for the first time in four days as a measure of China s economic recovery topped forecasts, signaling increased demand in the world s secondbiggest oil consumer. WTI for December delivery climbed as much as 61 cents to $97.47 a barrel on the New York Mercantile Exchange and was trading at $ It slid 1.5 percent yesterday to $96.86, the lowest close since June 28. Brent for December settlement was up 0.07 percent at $ a barrel on the London-based ICE Futures Europe exchange. Forex Cross Currency Rates for Major currencies Currency $ Rs US $ Indian Rupees (Rs) Sterling ( ) Euro ( ) Japanese Yen ( ) GCC Returns (YTD) Currency Rates against OMR Currency Value OMR/ $ OMR/ OMR/ OMR/ OMR/ Rs Debt market Interest Rates LIBOR EURIBOR 1M 3M 6M 1Y Muscat Saudi Arabia Dubai Abu Dhabi Kuwait (Price Index) Bahrain Qatar Sources: Bloomberg, Reuters, Zawya, MSM Data as on 9.00 AM, 24-Oct-13

2 Al Maha EYE Round up REGIONAL & OMAN NEWS WATCH MSM Indices Movement 23-Oct-13 Index Last Prev. MSM 30 MSM30 6, , Financial BKINV 8, , Services SINSI 3, , Industry INDSI 9, , Shariah 1, , MSM Sectorial Snapshot Index MSM 30 Financial Industry Services Sharqiyah Desalin. Gulf Investment Al Hassan Eng. Oman Cable Dhofar Cattle MSM Shakers Oman Chlorine Majan Glass United Insurance Oman Oil Renaissance Ser. MSM Volume Leaders United Insurance Gulf Investment Global Finc. In. Oman Invst& Fin. Al Hassan Eng. Mcap P/E Dividend P/BV (RO '000) (Ann.) Yield 6,640, ,367, ,092, ,180, Volume , ,498, ,076, , , Volume , , ,530, , , Volume ,530, ,498, ,506, ,168, ,076, REGIONAL Saudi construction sector poised for growth With the recent announcement of the Saudi government to allocate a social benefit package of SR billion for the development of housing, infrastructure and transport in the Kingdom, the construction sector is set to see a surge driven by increasing private and public investments. The government has earmarked a total of SR billion for housing development and SR billion for transport expansion while an estimated SR 7.5 billion has been allocated to road projects under construction, news agency reported. Moreover, the General Authority of the Civil Aviation of Saudi Arabia has set aside a fund of SR million for construction of 34 airports across the Kingdom in the next five years and a budget of SR billion has been approved for the rail projects that are either underway or at the bidding phase. Arabtec Construction awarded contract for AED550m Tiara Hotel Net Position Arabtec Holding, the UAE s biggest civil contractor, said that its subsidiary Arabtec Construction has Buy Sell Net Buy / been awarded a contract to construct the final phase of Tiara Hotel on the Palm Jumeirah. It will begin Nationality Vol () Val () Vol () Val () Sell work on the final phase, valued at Dh196 million, in the first quarter of 2014.The work is expected to be OMANIS completed in 18 months, the company said in a statement. GCC ARABS OMAN OTHERS Nawras announces financial results for nine months ended 30 September 2013 MSM Movers Omani Qatari Telecommunications Company SAOG (Nawras) reported a net profit of RO 23.1 million for 9M 2013 compared to RO 26.7 million recorded during the same period last year, registering a decline of Revenue of the Company grew by 5 y-o-y to reach RO million during the first nine months of the year 2013 from RO million reported a year ago. Oman United Insurance Company s takaful joint venture plans IPO Oman United Insurance Company SAOG is set to form a joint venture company, along with few other promoters, for Islamic insurance business. The new joint venture, which will float an initial public offering (IPO) of RO4 million, will raise 40 percent of its RO10 million paid-up capital. The joint venture is going to be the third takaful firm planning to raise funds from public in Oman, after Al Madina Insurance Company and Takaful Oman Insurance. The proposed joint venture is one of the three takaful firms that has received an 'in principal' approval from the insurance regulator Capital Authority (CMA). Al Kamil Power Company discloses results for 9M 2013, declares interim dividend Al Kamil Power Company SAOG reported a net profit of RO million for the nine months ended 30 September 2013, registering an increase of 4.5 y-o-y. The Board of Directors of the Company agreed to disburse an interim dividend for 2013 of 9 out of the audited free reserves of the Company as at 31 December 2012 to the shareholders of the Company who are registered with Muscat Clearing and Depository Company SAOC as at 29 December MSM Returns (YTD) MSM Value Leaders United Insurance Gulf Investment Sembcorp Salalah Global Finc. In. Oman Cable Sources:Bloomberg,Reuters,Zawya,MSM Turnover ,820, ,640, ,028, , , Breadth Advances 20 Declines 14 Total Securities Traded 54 Activity Statistics Traded volume 35,021,452 Turnover R.O 10,577, MSM Financial Industry Services

3 Al Maha Financial Services LLC Technical Analysis MSM General Index Resistance Support EMA 10 EMA 25 RSI(14) ADX(14) 6, ,730 6,635 6,655 6, MSM General Index ended Wednesday's session at inching up by 0.10 with million shares traded. Index shed its initial gains in the second half of the previous session and managed to close in green, while foreign investors continued as net buyers with their net buy position of Recent decline of the index and the inverted hammer candle stick formation on the previous session point to continuation of interim weakness. Oman United Insurance Company (OUIS) alert alert Resistance Support EMA 10 EMA 25 RSI(14) ADX(14) Oman United Insurance closed the previous session at loosing 1.78 with 8.5 million shares traded. OUIS looks to be ending correction mode and the moves of key momentum indicators point to continuation of positive bias for the scrip. The counter also has attracted the highest daily volumes in the last four years, on Wednesday. On the up side, the stock is likely to test resistance at level. Source:Tickerchart Al Maha Financial Services LLC

4 Al Maha Financial Services LLC ` Technical Analysis National Bank of Oman (NBOB) Resistance Support EMA 10 EMA 25 RSI(14) ADX(14) National Bank of Oman ended yesterday's trading session at 0.296, gaining 1.7 with more than a million shares traded on the counter. Though NBOB showed a bounce back on the previous session supported by volumes, the scrip is unlikely to continue the up move as suggested by the key indicators on intraday charts. Trajectory of directional indicator signals a range bound move for the stock for the near term. The scrip needs a convincing break out at levels to continue the northbound move. Omani Qatari Telecommunications Company (NWRS) Resistance Support EMA 10 EMA 25 RSI(14) ADX(14) Nawras closed flat on Wednesday at 0.526, with million shares changing hands. NWRS demonstrates weakness by slipping below short term moving averages. However, the scrip maintains its broad positive trend and continues to remain in the fairly possessed territory. Support is likely for the stock at levels. Source:Tickerchart Al Maha Financial Services LLC

5 MSM Corporate Score Sheet Company Price 52-Weeks (Closing) Revenue Result as on (Values in RO '000) 23-Oct-13 High Low Capital Cap Latest Previous Financial National Bank of Oman , , Jun-13 36,164 33, ,772 19, Bank Muscat ,226 1,269, Jun , , ,108 68, Ahli Bank , , Jun-13 18,423 15, ,503 11, Bank Sohar , , Jun-13 21,026 20, ,954 10, Bank Dhofar , , Jun-13 32,240 31, ,674 19, HSBC Bank Oman , , Jun-13 23,127 13, ,279 7, Bank Nizwa , , Jun Ominvest , , Jun-13 33,013 32, ,855 7, ONIC Holding ,342 66, Jun-13 5,923 3, ,308 2, Al Anwar Holding* ,000 39, Jun-13 1,876 1, Gulf Inv. Services ,023 28, Jun-13 1,691 1, , Transgulf Ind. Inv. Holding* ,688 11, Jun (370) NM NM Global Investment ,000 32, Jun-13 2,895 1, ,918 3, Oman United Insurance ,000 33, Jun-13 4,397 3, ,682 2, DIDIC , , Jun-13 2,557 2, ,530 5, Oman and Emirates Hldg ,188 22, Jun-13 3,038 6, ,491 3, Aggregate Industry Oman Cement , , Jun-13 27,337 28, ,298 9, Raysut Cement , , Jun-13 49,523 49, ,420 12, Al Anwar Ceramic , , Jun-13 13,956 10, ,209 3, Oman Cables , , Jun , , ,648 4, Galfar Engineering , , Jun , , ,014 3, National Aluminium ,357 11, Jun-13 10,313 8, Al Hassan Engineering ,521 20, Jun-13 30,897 28, (1,797) Aggregate Services Shell Oman ing , , Jun , , ,046 6, Al Jazeira Services ,172 55, Jun-13 6,293 6, ,764 2, Renaissance Services , , Jun , , ,640 4, Omantel ,000 1,173, Jun , , ,528 61, Nawras , , Jun-13 98,371 95, ,164 19, Oman Inv. & Finance* ,000 56, Jun-13 3,127 2, , Al Maha Petroleum , , Jun , , ,243 5, Aggregate 2,180, MSM-30-6,640, Others Port Services Corp ,504 49, Jun-13 11,638 10, ,642 3, Oman Chlorine ,177 40, Jun-13 4,418 3, ,711 1, Construction Material ,500 6, Jun-13 1,758 1,904-8 (71) NM NM Salalah Mills ,816 65, Jun-13 29,519 24, ,194 2, Oman Flour Mills** , , Jun-13 70,515 60, ,071 7, United Finance ,501 42, Jun-13 3,591 3, ,815 1, A Saffa Foods , , Jun-13 14,053 11, ,930 2, Dhofar Cattlefeed ,700 18, Jun-13 14,338 12, (280) (414) 32 NM NM Voltamp Energy ,050 26, Jun-13 11,322 7, , Jazeera Steel Product ,490 38, Jun-13 46,671 53, ,943 2, Gulf Int. Chemicals ,100 4, Jun-13 1,813 1, Oman Oil ing , , Jun , , ,978 4, Oman Refreshment , , Jun-13 33,725 32, ,635 4, Oman Fisheries* ,500 13, Jun-13 4,425 3, (36) 0.32 NM NM NM * FY March.** FY June Source:MSM Y-o-Y Latest Net Profit Previous Y-o-Y Note : PBV is based on the latest available Financial Statements. Valuations are based on adjusted earnings. NM - Not Meaningful. Financial Sector & MSM-30 PE is excluding Bank Nizwa EPS (Ann.) BVPS PE PBV Dividend Yield (FY12)

6 Al Maha EYE PO Box 1065 PC 117, Al Wadi Al Kabir, Sultanate of Oman Contacts Telephone Customer service & Operations: Zakia Al Ghammari Muna Al Hashmi Halima Al Mahrooqi Pravin Sivan Research: Suresh Kumar Radhika Gadhia Khushboo Badlani Portfolio Management: Shailendra Kumar Singh Brokerage: Abdullah Al Hinai Mahmoud Al Hamsaidi Nasser Al Banna Disclaimer The information contained in this report has been obtained from the sources believed to be reliable and in good faith, but which may not be verified independently. While utmost care has been taken in preparing the above report, Al Maha Financial Services LLC makes no guarantee, representation or warranty, whether expressed or implied, and accepts no responsibility or liability to its accuracy and completeness of the data, being provided. Opinion expressed is our current opinion as of the date appearing on this material only. We do not undertake to advise you as to any change of our views expressed in this document. The investments discussed in this report may not be suitable for all the investors. Investors must take their own decision based on their specific investment objectives and financial position, and using such independent advisors, as they believe necessary. Income from investments may fluctuate. The price or value of the investments, to which this report relates, either directly or indirectly, may fall against the interest of investors. This document is strictly for the use of recipients only. None of the material provided herein may be reproduced, rewritten, rehashed, published, resold or distributed in any manner whatsoever without the prior and explicit written permission of