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1 QSE Intra-Day Movement 8,100 8,000 7,900 7,800 7,700 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined 1.0% to close at 7, Losses were led by the Consumer Goods and Services and Real Estate indices, falling 3.9% and 2.8%, respectively. Top losers were Mannai Corporation and Islamic Holding Group, falling 10.0% each. Among the top gainers, Al Khaleej Takaful Group gained 5.8%, while QNB Group was up 0.4%. GCC Commentary Saudi Arabia: The TASI Index fell 0.7% to close at 6, Losses were led by the Diversified Financials and Media indices, falling 10.1% and 9.8%, respectively. Saudi Arabian Amiantit Co. and Kingdom Holding Co. were down 10.0% each. Dubai: The DFM Index declined 1.8% to close at 3, The Consumer Staples index fell 4.7%, while the Financial and Investment Services index declined 3.0%. GFH Financial Group fell 6.3%, while Damac Properties Dubai Co. was down 6.0%. Abu Dhabi: The ADX benchmark index fell 0.4% to close at 4, The Services index declined 3.4%, while the Energy index fell 1.6%. Abu Dhabi National Hotels Co. declined 8.5%, while Ras Al Khaimah Cement Company was down 5.3%. Kuwait: The KSE Index declined 2.8% to close at 6, The Insurance index fell 4.6%, while the Financial Services index declined 4.4%. Gulf Insurance Group fell 20.0%, while Metal & Recycling Co. was down 19.2%. Oman: The MSM Index fell marginally to close at 5, Losses were led by the Industrial and Services indices, falling 0.2% and 0.1%, respectively. Oman fisheries fell 3.7%, while Al Jazeera Services was down 3.4%. Bahrain: The BHB Index fell 1.0% to close at 1, The Commercial Bank index declined 2.3%, while the Investment index fell 0.7%. Ithmaar Holding declined 9.1%, while Ahli United Bank was down 4.6%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Al Khaleej Takaful Group (48.3) QNB Group (18.6) Market Indicators 07 Nov Nov 17 %Chg. Value Traded (QR mn) Exch. Market Cap. (QR mn) 429, ,615.0 (1.2) Volume (mn) (7.9) Number of Transactions 3,969 3, Companies Traded Market Breadth 2:36 3:35 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 13, (1.0) (2.6) (21.2) 12.7 All Share Index 2, (1.5) (3.6) (23.4) 12.3 Banks 2, (0.6) (1.5) (13.7) 12.9 Industrials 2, (1.9) (4.4) (26.8) 16.1 Transportation 1, (2.6) (6.4) (39.1) 11.6 Real Estate 1, (2.8) (6.0) (32.6) 10.5 Insurance 2, (0.2) (5.8) (36.4) 19.0 Telecoms 1, (0.8) (3.2) (16.1) 18.8 Consumer 4, (3.9) (7.0) (25.7) 10.5 Al Rayan Islamic Index 3, (2.6) (5.4) (22.0) 13.6 GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Bahrain Telecom. Co. Bahrain (27.3) HSBC Bank Oman Al Salam Bank-Bahrain Bahrain (20.3) Jabal Omar Dev. Co. Saudi Arabia (15.0) National Comm. Bank Saudi Arabia , GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Kingdom Holding Co. Saudi Arabia 8.10 (10.0) 1,408.3 (32.6) Knowledge Eco. City Saudi Arabia (9.9) 1,193.7 (37.8) Al Tayyar Travel Group. Saudi Arabia (9.9) 11,496.0 (26.6) F.A. Al Hokair Co. Saudi Arabia (9.9) (19.2) Kuwait Projects Co Hold. Kuwait 0.31 (8.8) (38.0) (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Losers Close* 1D% Vol. 000 YTD% Mannai Corporation (10.0) 1.2 (28.9) Islamic Holding Group (10.0) 39.6 (58.1) Qatar German Co for Medical Dev (9.7) 21.0 (43.9) Qatar First Bank 5.30 (8.9) (48.5) National Leasing 8.60 (8.5) 78.4 (43.9) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Investment Holding Group 5.40 (7.1) (46.0) QNB Group (18.6) Aamal Co (8.1) (52.8) Qatar First Bank 5.30 (8.9) (48.5) Qatar Gas Transport Co. Ltd (2.4) (39.4) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group ,468.7 (18.6) Qatar Navigation (2.0) 21,949.9 (47.7) Masraf Al Rayan (2.0) 18,949.1 (7.5) Barwa Real Estate Co (2.0) 13,034.5 (12.8) Qatar Islamic Bank (1.0) 11,182.2 (8.6) (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 7, (1.0) (2.6) (2.9) (24.0) , Dubai 3, (1.8) (3.9) (4.3) (1.4) , Abu Dhabi 4, (0.4) (1.0) (1.3) (2.8) , Saudi Arabia 6, (0.7) (0.3) (0.0) (3.8) 1, , Kuwait 6, (2.8) (6.2) (5.7) , Oman 5, (0.0) (12.2) , Bahrain 1, (1.0) (2.3) (1.9) , , Qatar Stock Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 5

2 Qatar Market Commentary The QSE Index declined 1.0% to close at 7, The Consumer Goods and Services and Real Estate indices led the losses. The index fell on the back of selling pressure from Qatari and GCC shareholders despite buying support from non-qatari shareholders. Mannai Corporation and Islamic Holding Group were the top losers, falling 10.0% each. Among the top gainers, Al Khaleej Takaful Group gained 5.8%, while QNB Group was up 0.4%. Volume of shares traded on Tuesday fell by 7.9% to 8.5mn from 9.3mn on Monday. However, as compared to the 30-day moving average of 7.5mn, volume for the day was 14.6% higher. Investment Holding Group and QNB Group were the most active stocks, contributing 10.0% and 9.5% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 23.20% 38.93% (42,927,861.04) Qatari Institutions 35.44% 28.99% 17,592, Qatari 58.64% 67.92% (25,335,032.38) GCC Individuals 0.56% 0.78% (589,936.18) GCC Institutions 3.95% 4.90% (2,594,841.82) GCC 4.51% 5.68% (3,184,778.00) Non-Qatari Individuals 6.25% 9.86% (9,873,284.09) Non-Qatari Institutions 30.61% 16.55% 38,393, Non-Qatari 36.86% 26.41% 28,519, Source: Qatar Stock Exchange (* as a % of traded value) Earnings Releases and Global Economic Data Earnings Releases Company Market Currency Revenue (mn) 3Q2017 Operating Profit (mn) 3Q2017 Net Profit (mn) 3Q2017 Al Alamiya for Cooperative Insurance Co. Saudi Arabia SR % % Raydan Co. Saudi Arabia SR % % Fawaz Abdulaziz Alhokair Co. Saudi Arabia SR % % Eastern Province Cement Co. Saudi Arabia SR % % Tourism Enterprise Co. Saudi Arabia SR % % Arab Sea Information System Co. Saudi Arabia SR -0.7 N/A -0.8 N/A Al Hassan Ghazi Ibrahim Shaker Co. Saudi Arabia SR N/A N/A Astra Industrial Group Saudi Arabia SR % 2.6 N/A Allianz Saudi Fransi Cooperative Insurance Co. Saudi Arabia SR % % United Cooperative Assurance Co. Saudi Arabia SR % % Amlak Finance Dubai AED % % National Industries Group Holding Kuwait KD % 2.1 N/A Arabian Scandinavian Insurance Takaful Dubai AED % Gulf Medical Projects Company Abu Dhabi AED % % Emirates Insurance Co. Abu Dhabi AED % % Bahrain National Holding Co. Bahrain BHD % % Source: Company data, DFM, ADX, MSM, TASI, BHB. Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 11/07 EU Eurostat Retail Sales MoM September 0.7% 0.6% -0.1% 11/07 EU Eurostat Retail Sales September 3.7% 2.8% 2.3% 11/07 EU Markit Markit Eurozone Retail PMI October /07 Germany Markit Markit Germany Construction PMI October /07 Germany Markit Markit Germany Retail PMI October /07 France Markit Markit France Retail PMI October (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Page 2 of 5

3 News Qatar Qatari banks see domestic assets rose 16% in September Qatar s banking sector witnessed a robust about 16% expansion in domestic assets in September this year, even as its overseas assets declined more than 4%, according to the Qatar Central Bank (QCB). The domestic assets of Qatar s banks were about five times larger compared with the foreign assets this September, said the QCB s latest monthly statement. Overall, total assets of Qatar s commercial banks grew about 13% to QR1.34tn in September 2017 mainly on faster expansion in credit off-take and securities portfolio. The domestic assets stood at QR1.11tn, which accounted for about 83% of total assets, whereas foreign assets were to the tune of QR0.23tn, or 17%, at the end of September 30, The growing size of the domestic assets indicates the resiliency of the banking sector amid the Gulf crisis that started in June this year. Among the total assets, total credit portfolio amounted to QR894.94bn, which showed a yearly growth of more than 12%. The domestic credit grew more than 12% to QR800.37bn and foreign credit by about 10% to QR94.57bn. The domestic credit constituted 89% of the total credit, while the foreign credit cornered the remaining 11% share in September The country s banking sector saw a 34% expansion in Sukuk (Islamic bonds) alone to QR67.53bn; which included QR61.33bn issued by the government and QR3.02bn by banks. The domestic Sukuk witnessed more than 43% growth to QR64.87bn, which was 96% of the total Sukuk in September 2017; whereas overseas Sukuk saw more than 48% decline to QR2.66bn. (Gulf- Times.com) Qatar Chamber s Chairman invites private sector to benefit from free zones law amendments Qatar Chamber s Chairman, Sheikh Khalifa Bin Jassim Bin Mohammed Al Thani said the Law No 21 of 2017 that amended some provisions of Law No 34 of 2005 on investment in free zones, which was issued by His Highness the Emir Sheikh Tamim Bin Hamad Al Thani, contributes to bringing more local and foreign investments to Qatar. Sheikh Khalifa urged Qatari businessmen and foreign investors to benefit from the incentives and advantages the free zones provide in light of the amendments related to the law on these areas. Qatar Chamber s Chairman said the advantages include direct link with the outside world, privacy in dealing with the customs, import and monetary aspects, as well as other advantages related to the flow of goods entering and exiting, which allows a great deal of freedom in transactions. (Gulf-Times.com) Qatar Airways aims to create a mega-carrier Qatar Airways wants to create a virtual mega-carrier that will benefit from economies of scale in negotiations on fuel and aircraft purchases while it boosts investment in other airlines, Qatar Airways CEO said. The Qatari carrier announced a $661mn deal to buy a 9.61% stake in Hong Kong s Cathay Pacific Airways to broaden its reach and potentially allow the one world alliance member to increase traffic through its Doha hub. (Gulf- Times.com) India, Turkey, Iran plan food manufacturing units in Qatar A number of Indian, Turkish and Iranian food companies have expressed their willingness to set up manufacturing units in Qatar, IFP Qatar s General Manager, George Ayache said. Ayache said that Qatar has emerged as one of the prime destinations for investment in food industry as the country is striving hard to become self-reliant in meeting the requirement for food products in the local market. He added, Qatar wants quality international food brands to set up their manufacturing units in the country. They are extending all support to such companies. The exhibition being organized by IFP is an ideal platform for both the parties to meet and finalize deals. (Qatar Tribune) Ooredoo sees demand in security solutions for financial sector Ooredoo is seeing strong demand in security solutions for the banking and finance sector on the back of the Information Security Conference for the Financial Sector organized recently by the Qatar Central Bank. Solutions include managed security operations center, managed firewall, malware protection, vulnerability management, cloud web and security, and DDoS mitigation. Ooredoo s COO, Yousuf Abdulla Al Kubaisi said, Thanks to strong investment in digital technologies, Qatar is ideally-positioned to enhance its standing as a global hub for banking and finance innovation. (Gulf-Times.com) Qatar-Oman direct lines reduce outward cargo shipping time by five days The shipping time of outward cargo from the country to various destinations has reduced considerably after Qatar Ports Management Company (Mwani Qatar) launched two direct shipping lines between Hamad Port and the ports of Sohar and Salalah in Oman, freight forwarding agents have said. According to several cargo forwarding firms, the shipping time to several destinations has been reduced by at least four to five days as a result of better connectivity and frequency provided by the new shipping lines. (Qatar Tribune) HIA recognized as Best Airport in West Asia The Hamad International Airport (HIA) recognized as the Best airport in West Asia for the third time in a row at the Future Travel Experience (FTE) Asia Awards 2017 in Singapore. The awards celebrate airports and airlines that have displayed customer experience and innovative leadership. The third FTE Asia Awards ceremony took place at FTE Asia Expo 2017 at the Marina Bay Sands in Singapore and recognized HIA s continued commitment to delivering the highest standard of service to its passengers. (Gulf-Times.com) International BRC: UK retailers suffer worst in October since 2008 British shoppers cut back their spending last month at the fastest pace for any October since 2008, a reminder of the strain on household budgets even before the Bank of England raised interest rates, a survey showed. Retail sales declined by an annual 1.0% on a like-for-like basis, which strips out changes in store size, the British Retail Consortium (BRC) said. Sales rose 1.9% in September. Payment company Barclaycard also reported weak consumer spending, with a split between spending on essentials and spending on discretionary items. Consumer price inflation reached 3% in September, its highest level in more than five years and above the Bank of England s 2% target. The central bank expects the consumer price index to peak at 3.2% in October. The BRC, whose figures are not seasonally adjusted, said total sales last month edged up 0.2%, Page 3 of 5

4 which was also the weakest increase for any October since Barclaycard s measure of consumer spending growth eased to 2.4%, compared with an increase of 3% in September. (Reuters) UK house prices pick up speed, BoE rate hike would not hurt British house prices rose in three months to October at their fastest pace since February and the Bank of England s (BoE) interest rate hike is unlikely to offset the impact on prices from a lack of homes for sale, mortgage lender Halifax said. House prices increased by an annual 4.5% in the August-October period, picking up speed from 4.0% increase in three months to September, Halifax said. The rise was in line with a median forecast in a Reuters poll of economists. (Reuters) Clothes, furniture boost Eurozone s retail sales in September An increase in sales of clothes, furniture and electrical goods boosted Eurozone s retail sales in September by more than expected despite a fall in motor fuel sales, pointing to rising domestic demand as the economy gathers pace. The European Union s statistics office Eurostat stated that retail sales in 19 countries sharing the Euro rose 0.7% MoM for 3.7% jump. Economists polled by Reuters had expected a monthly rise of 0.6% and 2.7% annual gain. Eurostat also revised sharply upwards retail sales data for August to -0.1% MoM from -0.5% previously estimated and to a gain of 2.3% from 1.2%. Retail sales signal the strength of domestic demand, a vital component of the Eurozone s GDP, which in the third quarter rose 0.6% QoQ and 2.5%, accelerating from 2.3% in the previous three months. (Reuters) Germany s industrial output falls in September, but outlook Positive Germany s industrial production fell twice as much as expected in September, dropping after rise a month earlier, but grew by 0.8% in the third quarter as a whole and should increase further in the months ahead, the Economy Ministry said. Industrial output fell by 1.6% on the month after rising by 2.6 in August, which was the biggest increase in more than six years, data from the Economy Ministry showed. The September reading compared with the mid-range forecast in a Reuters poll for a drop of 0.8%. A breakdown of the data showed a sharp drop in factories production of capital goods. The ministry said industrial production rose by 0.8% in the third quarter, adding that activity in the sector remained very lively. (Reuters) Regional SAMA: Corruption probe not hurting economy Saudi Arabian Monetary Authority (SAMA) sought to reassure the business community that a sweeping anti-corruption investigation would not hurt the economy, saying companies and banks could operate as normal. At the request of the attorney-general, SAMA is freezing personal bank accounts of suspects pending court rulings on their cases, but it is not suspending operations of their companies. SAMA stated, In other words, corporate businesses remain unaffected. It is business as usual for both, banks and corporate. (Reuters) Saudi Arabian firms looking at overseas listings JPMorgan is in early talks with Saudi Arabian companies about overseas listings, its investment bank Chief said, raising the possibility that more firms could join Saudi Aramco in seeking an international flotation. JPMorgan is among the banks advising Saudi Aramco on an international public offering (IPO). LSE has made strong case for Saudi Aramco listing The London Stock Exchange (LSE) has made a very strong case for Saudi Aramco to lists its shares in Britain, a spokesman for Prime Minister Theresa May said after President Donald Trump urged the king of Saudi Arabia to list in New York. UAE and Saudi Arabia sign work plan for AEO The UAE and Saudi Arabia have signed a work plan for the Authorized Economic Operator (AEO) agreement launched by the two countries in Dubai, aimed at quickly implementing the mutual acknowledgement made for the AEO program between the two countries. Joint venture behind Fujairah plant to announce project bond Emirates SembCorp Water & Power, the joint venture behind a desalination plant in Fujairah, is expected to announce a US Dollar project bond issue, sources said. The bond would come less than two weeks after the launch of a $3bn project bond by a subsidiary of Abu Dhabi National Oil Company (ADNOC) which, having attracted orders in excess of $11bn while it was being marketed showed investors appetite for these issues. (Reuters) RAK Ceramics to expand its capacity in India to 18mn tons UAE based ceramic producer, RAK ceramic would expand output in India to 18mn tons from 11mn tons. The company s India expansion plans include acquiring another factory. (Bloomberg) Emirates NBD launches $750mn five-year bond Emirates NBD launched $750mn five-year bond at 125 basis points (bps) over mid-swaps. ENBD Capital, HSBC, Nomura, Societe Generale and Standard Chartered Bank are joint bookrunners on the bond issue, which is expected to be rated A+ by Fitch and A3 by Moody s. (Reuters) ADNOC issues $3bn bond The Abu Dhabi National Oil Company (ADNOC) announced the successful issuance and closing of $3bn bond, one of the largest non-sovereign bond offerings in the history of the Middle East. The bond, issued by Abu Dhabi Crude Oil Pipeline (ADCOP), an entity 100% owned by the ADNOC Group, highlights the more proactive and flexible management of ADNOC s portfolio of assets and capital structure. Abu Dhabi airport terminal worth $5.2bn set to open in 4Q2019 Abu Dhabi Airports announced that it has so far spent $3.4bn or 66% of the $5.2bn budget for its iconic structure Midfield Terminal Building (MTB) which will be completed by 4Q2019. Islamic banks in Bahrain urged to fully comply with new standards The new Islamic banking legislation, under which independent external scrutiny is a mandatory requirement, will promote corporate governance and compliance with Basel III norms. Islamic banks in Bahrain have until June-end next year to fully comply with new standards mandated by Central Bank of Bahrain. Page 4 of 5

5 Rebased Performance Daily Index Performance Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 QSE Index S&P Pan Arab S&P GCC 0.0% (0.5%) (1.5%) (2.0%) (2.5%) (3.0%) (0.7%) Saudi Arabia Qatar (2.8%) Kuwait Bahrain (0.0%) Oman (0.4%) Abu Dhabi (1.8%) Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (0.5) MSCI World Index 2, (0.0) Silver/Ounce (1.6) DJ Industrial 23, Crude Oil (Brent)/Barrel (FM Future) (0.9) S&P 500 2, (0.0) Crude Oil (WTI)/Barrel (FM Future) (0.3) NASDAQ 100 6, (0.3) Natural Gas (Henry Hub)/MMBtu (16.4) STOXX (0.7) (0.5) 19.9 LPG Propane (Arab Gulf)/Ton (3.3) (2.6) 32.8 DAX 13, (0.9) (0.9) 28.0 LPG Butane (Arab Gulf)/Ton (3.8) (4.5) 0.8 FTSE 100 7, (0.6) Euro 1.16 (0.2) (0.2) 10.2 CAC 40 5, (0.7) (0.8) 23.8 Yen (0.1) (2.5) Nikkei 22, GBP 1.32 (0.0) MSCI EM 1, CHF 1.00 (0.2) SHANGHAI SE Composite 3, AUD 0.76 (0.6) (0.1) 6.1 HANG SENG 28, USD Index (0.0) (7.1) BSE SENSEX 33, (2.0) (1.7) 30.7 RUB (3.5) Bovespa 72, (2.9) (1.2) 19.2 BRL 0.31 (0.7) 1.0 (0.6) RTS 1, (0.5) (*$ adjusted returns) 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 5 of 5