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 % Change USA Dow Jones 11, % S&P 500 1, % NASDAQ 2, % EUROPE FTSE 100 5, % CAC 40 3, % DAX 30 5, % ASIA NIKKEI 8, % Hang Seng 18, % Strait Times 2, % Regional Indices Index Value % Change Muscat 5, % Saudi Arabia 6, % Dubai 1, % Abu Dhabi 2, % Kuwait (Price Index) 5, % Bahrain 1, % Qatar 8, % Commodities Crude Oil ($/bbl) Close % Change Nymex Crude Future % Dated Brent Spot % WTI Cushing Spot % Metals Close % Change Gold Future $/OZ 1, % Silver Future $/OZ % Aluminum $/T 2, % Copper $/T 7, % Nickel $/T 17, % Forex Cross Currency Rates for Major currencies Currency $ Rs US $ Indian Rupees (Rs) Sterling ( ) Euro ( ) Japanese Yen ( ) Currency Rates against OMR Currency Close % Change OMR/ $ % OMR/ % OMR/ % OMR/ % OMR/ Rs % Debt market Interest Rates LIBOR EURIBOR 1M 3M 6M 1Y 0.249% 0.457% 0.659% 0.981% 1.201% 1.462% 1.688% 2.032% U.S. stocks fall as Fitch says Europe a risk to American banks 17-Nov-11 U.S. stocks tumbled, erasing previous gains, as Fitch Ratings said further contagion from Europe s debt crisis will pose a risk to American banks and amid concern higher oil prices will hamper economic growth. The S&P 500 slid 1.7 percent to 1, The Dow Jones Industrial Average fell points, or 1.6 percent, to 11, The Nasdaq Composite dropped points, or 1.73 percent, to 2, About 7.4 billion shares traded on the New York Exchange, NYSE Amex and Nasdaq, below this year's daily average of 8 billion shares. Asian stocks fall for third day, regional benchmark heading for lowest close in four weeks Asian stocks fell for a third day, with the regional benchmark heading for its lowest close in four weeks, after Fitch Ratings said a worsening European debt crisis poses a serious risk to U.S. banks, stoking concern about the global financial system. The MSCI Asia Pacific Index slid 0.6 percent to Hong Kong s Hang Seng Index dropped 0.88 percent. Japan s Nikkei 225 Average remains flat. Oil drops from five-month high after rising above $100 a barrel Oil fell from the highest in more than five months on speculation yesterday s surge above $100 a barrel was exaggerated amid concern Europe s debt crisis will slow economic growth in the U.S., the biggest crude consumer. Crude for December delivery slid as much as 97 cents to $ a barrel and was trading at $ Prices have gained 11.7 percent this year, after increasing 15 percent in Brent oil for January settlement on the London-based ICE Futures Europe exchange fell as much as $1.30, or 1.2 percent, to $ a barrel. Euro touches five week low as debt crisis dims economic outlook for Europe The euro touched the lowest in five weeks against the dollar and the yen on speculation Europe s spreading debt crisis will curb economic growth and pressure the region s central bank to ease monetary policy. The 17-nation currency maintained this week s slide versus the greenback before Spain auctions up to 4 billion euros ($5.4 billion) of bonds today and France sells as much as 8.2 billion euros of debt. The euro fell to $1.3422, the lowest since October 10, before trading at $ The euro was little changed at yen. Japan s yen was unchanged at per dollar. GCC Returns (YTD) 2% 0% -2% -4% -6% -8% -10% -12% -14% -16% -18% -20% -22% Muscat % Saudi Arabia Dubai Abu Dhabi Kuwait (Price Index) -6.53% % -8.98% % Bahrain % 0.77% Qatar Sources: Bloomberg, Reuters, Zawya, MSM Data as on 9.00 AM, 17-Nov-11

2 Al Maha EYE Round up REGIONAL & OMAN NEWS WATCH MSM Indices Movement Index MSM 30 Financial Services Industry MSM Sectorial Snapshot Index MSM 30 Financial Industry Services 16-Nov-11 Last Close Prev. Close Change % Change 5, , % 6, , % 2, , % 5, , % Mcap (RO Dividend P/E P/BV '000) Yield 5,209, % 2,799, % 686, % 1,724, % Net Position Nationality Buy Sell Net Buy / Vol (%) Val (%) Vol (%) Val (%) Sell OMANIS 87.91% 72.96% 42.69% 57.64% 15.33% GCC 6.99% 20.67% 48.35% 25.22% -4.55% ARABS 1.69% 1.03% 2.11% 2.28% -1.25% OTHERS 3.41% 5.34% 6.86% 14.86% -9.52% MSM Movers Nawras Omantel Nat. Bk. Of Oman MSM Shakers National Securities Muscat Thread Mills Gulf Mushroom Sohar Power Global Investment Close % Change Volume % 206, % % 620, % % 83, % Close % Change Volume % 10, % % 6, % % 5, % % 3, % % 8, % REGIONAL Qtel boosts stake in Singapore's StarHub Qatar Telecom (Qtel) has acquired a further 7.45 percent of StarHub, Singapore's second biggest telecom company, through its Asia Mobile Holdings joint venture with Singapore Technologies Telemedia. The company plans to take advantage of further growth opportunities to develop the presence in South East Asia, said Nasser Marafih, CEO of Qtel Group. The acquisition was completed through a share purchase agreement with Aranda Investments, a unit of Singapore state investor Temasek. Saudi Arabia approves Shell Kidan gas joint venture Saudi government has approved a joint venture between Royal Dutch Shell and Saudi Aramco. A study would be conducted to see the possible development of Kidan area. Kidan is rich in sour gas and is near the 750,000 barrels per day (bpd) Shaybah oilfield, one of the biggest in the world's top oil exporter. Officials from Shell and the joint venture have said further studies are needed to understand the economics of the field before deciding whether it can be developed. South Rub al-khali Company (SRAK) will drill up to three appraisal wells and conduct extensive studies and aims to complete its appraisal by end OMAN Oman Oil, SAIL to set up RO1bn steel plant Steel Authority of India Ltd (SAIL) said that it has signed an initial pact with Oman Oil Company to jointly set up a 3million tonne per annum (mtpa) gas-based steel plant in Oman at an investment of around RO1.14 billion. The plant is likely to come up in Sohar as the Oman government looks to further develop Sohar Freezone by setting up a steel cluster. The shareholding pattern of the proposed venture is yet to be decided, said C S Verma, chairman of SAIL. Oman National Engineering and Investment Company wins a contract for supply of manhole covers Oman National Engineering and Investment Company has been awarded the contract for supply of manhole covers for the sum of RO 236,100 by Ms. Monte Adriano Middle East LLC. The Company expects realization of reasonable profit from the contract. MSM Volume Leaders Bank Sohar Bank Muscat Omantel Al Jazeira Services Dhofar Insurance Close % Change Volume % 3,377, % % 625, % % 620, % % 301, % % 301, % MSM Returns (YTD) 2% -2% MSM Financial Industry Services MSM Value Leaders Omantel Bank Sohar Bank Muscat Nawras Renaissance Services Close % Change Turnover % 742, % % 523, % % 446, % % 128, % % 111, % -6% -10% -14% -18% % % Breadth Advances 3 Declines 17 Total Securities Traded 44-22% -26% -30% % % Activity Statistics Traded volume Turnover R.O 6,551,514 2,346,743 Sources:Bloomberg,Reuters,Zawya,MSM

3 Al Maha Financial Services LLC Al Maha Technical Research MSM General Index , ,616 5,430 5,554 5, MSM General Index ended flat on Wednesday's trading session at with a marginal loss of 0.07% and with volumes of 6.5 million shares traded. closed in red for the consecutive fourth session in a row, while Omani investors continued as net buyers. The inverted hammer candle stick formation of the index on the last session and the trajectories of key trend and momentum indicators on daily charts suggest continuation of the interim negative bias for the market. National Bank of Oman (NBOB) National Bank of Oman closed the previous trading session at 0.310, advancing 0.32% with 84 thousand shares traded on the counter. NBOB demonstrates sideways move with a negative bias by slipping below 25 DMA and the daily MACD turning negative. Movements of key indicators point to continuation of the range bound move at the counter for the near term. Immediate support is likely for the stock at level. Source:Tickerchart Al Maha Financial Services LLC

4 Al Maha Financial Services LLC ` Al Maha Technical Research Sohar Power (SHPS) Sohar Power ended last trading session at 1.605, shedding 4% with thin volumes. SHPS shows interim weakness with it's gap down opening of the last session backed by the downward sloping momentum indicators on daily charts. However, the broad outlook continues to be positive for the scrip with it's stay above the 200DMA. The stock is likely to find immediate support at level. Al Maha Petroleum Products ing (MHAS) Al Maha Petroleum closed flat on Wednesday's session at , with relatively low volumes. MHAS continues to demonstrate bullishness by staying above long term moving averages with positive MACD on both daily and weekly charts. The stock has also moved back from the over bought zone. The scrip is likely to test resistance at level. Source:Tickerchart Al Maha Financial Services LLC

5 MSM Corporate Score Sheet Company Price Revenue (Values in RO '000) 16-Nov-11 Face Cap Result as on Value Capital Y-o-Y % Latest Change Financial National Bank of Oman , , Sep-11 44,616 6% 27,256 26% , % Bank Muscat ,837 1,103, Sep ,911 17% 87,130 21% , % Ahli Bank , , Sep-11 18,753 37% 13,379 29% , Bank Sohar , , Sep-11 25,638 12% 12,326 31% , % Bank Dhofar , , Sep-11 45,011 6% 28,730-2% , % Oman International Bank , , Sep-11 23,147 4% 12,177-6% , % Ominvest , , Sep-11 38, % 6,698-27% , % ONIC Holding ,342 27, Sep-11 9,534 14% (537) -105% NA 48, NA Al Anwar Holding* ,000 12, Sep-11 6,892 28% 313-4% , Oman United Insurance ,000 11, Sep-11 12,783 44% (57) -104% NA 18, NA % Gulf Inv. Services ,023 7, Sep % % NA 15, NA Transgulf Ind. Inv. Holding* ,688 4, Sep-11 (12) -24% (537) NA NA 7, NA DIDIC ,000 83, Sep-11 1,147-90% (1,589) -110% NA 73, NA % Aggregate ,009, % Industry Oman Cement , , Sep-11 36,265-11% 9,703-57% , % Raysut Cement , , Sep-11 62,668 26% 11,710-38% , % Al Anwar Ceramic ,469 59, Sep-11 14,231 7% 4,426 6% , % Oman Cables ,970 62, Sep ,483 13% 4,315 7% , % Jazeera Steel Product ,490 30, Sep-11 68,411 47% 2,751 81% , % Voltamp Energy ,500 23, Sep-11 11,154 11% 1,255-37% , % Dhofar Cattlefeed ,700 9, Sep-11 18,555 9% 171 NA , Galfar Engineering , , Sep ,382-10% 3,315-3% , A Saffa Foods ,500 46, Sep-11 15,944 13% 2,576 5% , % Gulf Int. Chemicals ,100 2, Sep-11 2,671-25% % , % National Aluminium ,357 11, Sep-11 16,176 2% 1,076-33% , % Aggregate 686, , , % Services Shell Oman ing , , Sep ,910 13% 10,571-6% , % Al Jazeira Services ,172 17, Sep-11 8,044 12% % , NA % Renaissance Services , , Sep ,294 10% 3,402-81% , % Omantel , , Sep ,151 6% 82,414-2% , % Nawras , , Sep ,009 5% 35,594-6% , % Oman Inv. & Finance* ,000 19, Sep-11 5,889-47% 1, % , Aggregate 1,724, , % MSM-30 5,209, ,356 3,382, % Others Dhofar Insurance ,000 34, Sep-11 15,731 93% (1,373) -176% NA 28, NA 1.2 6% Oman Oil ing , , Sep ,293 31% 6,244 28% , % Port Services Corp ,504 36, Sep-11 14, % 3,886-11% , % ACWA Power Barka ,000 47, Sep-11 31,875 7% 6,853 21% , % Oman Chlorine ,177 24, Sep-11 5,026 15% 1,980 1% , % Construction Material ,500 3, Sep-11 2,415-2% (217) -338% NA 8, NA Salalah Mills ,816 39, Sep-11 29,758 57% 3,155 24% , % Oman and Emirates Hldg ,188 10, Sep % (2,936) NA NA 18, NA Oman Flour Mills** ,750 64, Sep-11 14,955 34% % , Oman Fisheries* ,500 11, Sep-11 10,964 46% % , Al Hassan Engineering ,521 16, Sep-11 44,585 13% 1,700-1% , % * FY March.** FY June Source:MSM Note : PBV is based on the latest available Financial Statements Latest Net Profit Y-o-Y % Change EPS Annualised Net Worth BVPS PE Al Maha EYE PBV Dividend Yield (FY 10)

6 Al Maha EYE PO Box 1065 PC 117, Al Wadi Al Kabir, Sultanate of Oman Contacts Telephone Research: Suresh Kumar Radhika Gadhia Khushboo Badlani Portfolio Management : S.V. Uppiliappan uppiliappan@almahafinancial.com Institutional Sales: A. S. Kedarnath kedar@almahafinancial.com Brokerage: Abdullah Al Hinai abdullah@almahafinancial.com Mahmoud Al Hamsaidi mahmoud@almahafinancial.com Nasser Al Banna nasser@almahafinancial.com Operations & Customer service : Zakia Al Ghammari zakia@almahafinancial.com Muna Al Hashmi muna@almahafinancial.com 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