Qatar: Daily Market Report - 19 January

Transcription

1. QSE Intra-Day Movement 10 ,900 10,850 10,800 10,750 Market Indicators 18 Jan 21 17 Jan 21 %Chg. Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth 581.7 626,538.8 166.2 9,127 47 22:22 246.6 624,742.5 95.4 5,261 47 16:27 135.9 0.3 74.1 73.5 0.0 – Market Indices 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QE Index rose marginally to close at 10,863.3. Gains were led by the Insurance and Industrials indices, gaining 1.2% and 0.7%, respectively. Top gainers were Qatari German Company for Medical Devices and Qatar General Insurance & Reinsurance Company, rising 10.0% and 9.7%, respectively. Among the top losers, QLM Life & Medical Insurance Company fell 3.7%, while Qatar First Bank was down 2.6%. GCC Commentary Saudi Arabia: The TASI Index gained 0.6% to close at 8,931.3. Gains were led by the Telecom. Services and Utilities indices, rising 4.1% and 1.9%, respectively. Saudi Telecom Company rose 5.4%, while United Cooperative Assurance was up 4.8%. Dubai: The DFM Index gained 1.2% to close at 2,726.2. The Consumer Staples index rose 2.7%, while the Investment & Financial Services index gained 1.8%. Emirates Refreshments Company rose 15.0%, while Dubai Financial Market was up 6.1%. Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer Al Rayan Islamic Index Close 1D% WTD% YTD% TTM P/E 20,884.28 3,327.15 4,374.63 3,297.67 3,564.94 1,933.90 2,521.24 1,117.66 8,227.67 4,385.08 0.0 0.1 (0.2) 0.7 0.5 0.6 1.2 (0.5) (0.1) (0.0) (0.5) (0.4) (0.6) 0.0 (1.0) 0.4 (1.4) (0.4) (0.3) (0.3) 4.1 4.0 3.0 6.4 8.1 0.3 5.2 10.6 1.1 2.7 18.4 19.1 15.4 29.4 16.3 17.1 N.A. 16.7 29.3 20.1 GCC Top Gainers## Exchange First Abu Dhabi Bank Abu Dhabi Saudi Telecom Co. Saudi Arabia Abu Dhabi Comm. Bank Aldar Properties 7.9 13,279.0 17.1 5.4 805.0 9.6 Abu Dhabi 6.45 4.9 17,817.1 4.0 Abu Dhabi 3.34 3.1 47,841.6 6.0 66.80 2.6 325.0 (0.3) Saudi Arabia GCC Top Losers## Exchange Kuwait: The Kuwait All Share Index gained 0.1% to close at 5,662.6. The Industrials index rose 1.1%, while the Telecommunications index gained 0.6%. National Shooting Company rose 10.1%, while Al Bareeq Holding was up 8.0%. Qatar Islamic Bank QSE Top Gainers Qatari German Co for Med. Devices Qatar General Ins. & Reins. Co. Ahli Bank INMA Holding United Development Company Close* 2.60 2.63 3.85 5.40 1.65 1D% 10.0 9.7 6.9 3.9 2.4 Vol. ‘000 19,734.2 8.8 5.9 7,493.2 8,871.4 YTD% 16.0 (1.0) 11.7 5.6 (0.1) QSE Top Volume Trades Qatar First Bank Qatari German Co for Med. Devices Investment Holding Group United Development Company INMA Holding Close* 1.75 2.60 0.56 1.65 5.40 1D% (2.6) 10.0 (1.1) 2.4 3.9 Vol. ‘000 23,944.5 19,734.2 15,636.4 8,871.4 7,493.2 YTD% 1.4 16.0 (6.3) (0.1) 5.6 Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain Close 1D% WTD% MTD% YTD% 10,863.27 2,726.23 5,489.57 8,931.29 5,662.57 3,643.52 1,454.22 0.0 1.2 4.0 0.6 0.1 0.0 0.1 (0.5) 0.9 4.2 0.4 0.1 0.1 (0.4) 4.1 9.4 8.8 2.8 2.1 (0.4) (2.4) 4.1 9.4 8.8 2.8 2.1 (0.4) (2.4) Vol. ‘000 YTD% 15.10 Advanced Petrochem. Co. Bahrain: The BHB Index gained 0.1% to close at 1,454.2. The Investment index rose 0.2%, while the Services index gained 0.1%. GFH Financial Group rose 1.1%, while Zain Bahrain was up 0.9%. 1D% 116.20 Abu Dhabi: The ADX General Index gained 4.0% to close at 5,489.6. The Banks index rose 6.4%, while the Real Estate index gained 3.1%. First Abu Dhabi Bank rose 7.9%, while Abu Dhabi Commercial Bank was up 4.9%. Oman: The MSM 30 Index gained marginally to close at 3,643.5. The Industrial index rose 1.5%, while the Services index gained marginally. Al Jazeera Steel Products Company rose 8.6%, while Galfar Engineering & Contracting was up 7.0%. Close# Close# 1D% Vol. ‘000 Qatar 17.28 (1.8) 3,582.2 YTD% 1.0 National Bank of Oman Oman 0.15 (1.4) 225.3 (9.4) Ooredoo Qatar 8.38 (0.8) 3,487.4 11.4 Gulf Bank Kuwait 0.22 (0.5) 7,187.6 (1.4) Barwa Real Estate Co. Qatar 3.50 (0.5) 1,278.7 2.9 Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Losers QLM Life & Medical Insurance Co. Qatar First Bank Gulf International Services Qatar Islamic Bank Investment Holding Group Close* 3.77 1.75 1.65 17.28 0.56 1D% (3.7) (2.6) (2.0) (1.8) (1.1) Vol. ‘000 4,567.3 23,944.5 5,788.8 3,582.2 15,636.4 YTD% 19.5 1.4 (4.0) 1.0 (6.3) QSE Top Value Trades QNB Group Qatar Islamic Bank Qatari German Co for Med. Dev. Qatar First Bank INMA Holding Close* 18.56 17.28 2.60 1.75 5.40 1D% 0.4 (1.8) 10.0 (2.6) 3.9 Val. ‘000 103,670.4 62,038.3 49,338.4 42,202.9 39,936.3 YTD% 4.1 1.0 16.0 1.4 5.6 P/E** P/B** 18.4 12.9 21.8 35.7 36.2 12.2 14.1 1.6 0.9 1.5 2.1 1.4 0.7 1.0 Source: Bloomberg (* in QR) Exch. Val. Traded ($ mn) 159.44 88.93 187.31 2,721.35 112.88 4.96 3.70 Exchange Mkt. Cap. ($ mn) 170,982.4 98,256.0 209,313.8 2,445,654.2 106,243.2 16,544.2 22,180.7 Dividend Yield 3.6 3.6 4.5 2.4 3.5 6.9 4.6 Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 8
2. Qatar Market Commentary  The QE Index rose marginally to close at 10,863.3. The Insurance and Industrials indices led the gains. The index rose on the back of buying support from Arab and Foreign shareholders despite selling pressure from Qatari and GCC shareholders.  Qatari German Company for Medical Devices and Qatar General Insurance & Reinsurance Company were the top gainers, rising 10.0% and 9.7%, respectively. Among the top losers, QLM Life & Medical Insurance Company fell 3.7%, while Qatar First Bank was down 2.6%.  Volume of shares traded on Monday rose by 74.1% to 166.2mn from 95.4mn on Sunday. However, as compared to the 30-day moving average of 190.5mn, volume for the day was 12.8% lower. Qatar First Bank and Qatari German Company for Medical Devices were the most active stocks, contributing 14.4% and 11.9% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 33.14% 50.19% (99,143,517.5) Qatari Institutions 19.46% 27.86% (48,839,748.6) Qatari 52.61% 78.05% (147,983,266.1) GCC Individuals 0.46% 0.49% (172,177.6) GCC Institutions 3.13% 3.15% (160,558.8) GCC 3.58% 3.64% (332,736.4) Arab Individuals 8.77% 8.36% 2,371,755.1 Arab Institutions 0.00% 0.00% 15,086.4 Arab 8.77% 8.36% 2,386,841.5 Foreigners Individuals 2.32% 2.14% 1,059,425.8 Foreigners Institutions 32.72% 7.82% 144,869,735.2 Foreigners 35.04% 9.95% 145,929,161.1 Source: Qatar Stock Exchange (*as a % of traded value) Global Economic Data and Earnings Calendar Global Economic Data Date Market Source Indicator Period Actual Consensus 01/18 Japan Ministry of Economy Trade and Industry Industrial Production MoM 01/18 Japan Ministry of Economy Trade and Industry Industrial Production YoY 01/18 China National Bureau of Statistics 01/18 China National Bureau of Statistics Previous Nov -0.5% – 0.0% Nov -3.9% – -3.4% Industrial Production YoY Dec 7.3% 6.9% 7.0% Industrial Production YTD YoY Dec 2.8% 2.7% 2.3% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Earnings Calendar Tickers Company Name Date of reporting 4Q2020 results No. of days remaining Status MARK Masraf Al Rayan 19-Jan-21 0 Due QFLS Qatar Fuel Company 21-Jan-21 2 Due IHGS INMA Holding Group 25-Jan-21 6 Due GWCS Gulf Warehousing Company 26-Jan-21 7 Due QIIK Qatar International Islamic Bank 26-Jan-21 7 Due QNCD Qatar National Cement Company 27-Jan-21 8 Due CBQK The Commercial Bank 27-Jan-21 8 Due KCBK Al Khalij Commercial Bank 27-Jan-21 8 Due QIGD Qatari Investors Group 1-Feb-21 13 Due VFQS Vodafone Qatar 2-Feb-21 14 Due UDCD United Development Company 3-Feb-21 15 Due QAMC Qatar Aluminum Manufacturing Company 4-Feb-21 16 Due DHBK Doha Bank 8-Feb-21 20 Due QEWS Qatar Electricity & Water Company 14-Feb-21 26 Due ORDS Ooredoo 14-Feb-21 26 Due QIMD Qatar Industrial Manufacturing Company 14-Feb-21 26 Due Source: QSE Page 2 of 8
3. News Qatar  QNB launches QNB Pay platform through its Mobile Banking Application – QNB, the largest financial institution in the Middle East and Africa, has launched QNB Pay, a new and innovative platform of its mobile banking app, which includes QNB card digitization that provides mobile card-less payments. This service is - available on Android phones that enable NFC payment, known as mobile contactless payment. One of the most notable new feature of the service is that it can make traditional plastic cards or wallets something of the past, thus adding a convenient, safe and innovative customer experience to the existing digital service packages already enjoyed by QNB customers. This service is the most innovative service of its kind in Qatar, which aims to keep pace with the current development in banking digitization and works to change the future of payments’ environment. It opens the way for the development of further digital services and the adoption of other innovative digital solutions that can support the development of banking services in the State of Qatar. This unique service is designed to add to the many other features of the QNB mobile banking app that meet the daily banking needs of QNB’s customers, saving customers’ time and providing them with additional security to make their payments with ease - both within Qatar and anywhere in the world that provides contactless payment services. (Press Release)  UDCD to disclose its annual financial results on February 03 – United Development Company (UDCD) will disclose its financial statement for the period ending December 31, 2020 on February 03, 2021. (QSE)  QEWS to disclose its annual financial results on February 14 – Qatar Electricity & Water Company (QEWS) will disclose its financial statement for the period ending December 31, 2020 on February 14, 2021. (QSE)  QNCD to hold its investors relation conference call on February 01 – Qatar National Cement Company (QNCD) announced that the conference call with the Investors to discuss the financial results for the annual 2020 will be held on February 01, 2021 at 12:00 pm, Doha Time. (QSE)  Ooredoo to hold it's investors relation conference call on 15/02/2021 to discuss the financial results - Ooredoo announces that the conference call with the Investors to discuss the financial results for the Annual 2020 will be held on 15/02/2021 at 02:00 PM , Doha Time. (QSE)  QFC posts 63.7% jump in number of new firms in 2020 – Qatar Financial Centre (QFC) has witnessed a significant 63.7% YoY increase in the number of new firms licensed on its platform in 2020. Ending 2020 on a high note, the QFC maintained its business growth for the eighth consecutive year, despite the unprecedented global economic slowdown due to the COVID-19. It had registered 334 firms in 2020 against almost 200 firms in 2019. The expansion of the QFC-registered firms, which represents a variety of industries, both financial and nonfinancial services, included a record increase of 139.5% in the digital sector. Given the tremendous opportunities that emerged in the technology and digital sectors amidst the COVID-19 outbreak, and backed by the QFC’s fintech services provider license, the platform welcomed 91 new digital firms, hailing from diverse countries including India, the US, Pakistan, France, Russia and the UK. The QFC also continued to leverage its support to other firms across its strategic clusters, namely sports, media and financial services, registering 62 newcomers from these sectors. This increase pushes the QFC much closer to achieving its goal of registering 1,000 firms, ahead of the designated date as per its 2022 strategy. (Gulf-Times.com)  Shura Council approves draft law on commercial companies – The Shura Council yesterday approved a draft law amending some provisions of the Commercial Companies Law issued under Law No. 11 of 2015. At the beginning of the meeting, the Council discussed a draft law on mortgaging movable funds. The draft law includes 9 chapters and 49 articles, which aims to give companies and individuals the opportunity to acquire bank loans guaranteed by mortgaged movables and contribute to lowering the cost of loans by finding guarantees for banks that reduce the risk of default. The move will benefit small and medium-sized enterprises in playing a major role in enhancing the local economy. The draft law also includes provisions related to the scope of application, establishing an electronic record at the Qatar Central Securities Depository (QCSD) and data needed to be recorded, establishing the right to mortgage and its entry into force, and establishing the rights of mortgagee. After discussion, the Council decided to refer the aforementioned Draft Law to the Financial and Economic Affairs Committee to study it and submit a report thereon to the Council. (Peninsula Qatar)  OBG: North Field, seaport, airport expansion projects to trigger billions of dollars into construction sector – Qatar's North Field expansion as well as Hamad International Airport, and Hamad Port expansion projects are set to trigger billions of dollars into the construction activity and investment to drive the sector beyond 2022, according to an Oxford Business Group (OBG) COVID-19 response report. Expecting the economy to rebound this year with a 2.5% growth; the report said, "Upcoming expansion projects such as the North Field, Hamad International Airport and Hamad Port will drive construction activity beyond 2022." Qatar still has a solid line-up of infrastructure and hospitality projects to prepare itself for the large influx of visitors in 2022, in addition to other large projects including the North Field expansion project, Hamad International Airport and Hamad Port, said the report made by OBG in partnership with AlJaber Engineering. Construction has flourished in recent decades to become a key growth engine, driven by public infrastructure spending related to Qatar National Vision 2030 and the 2022 FIFA World Cup, it said. As Qatar’s construction industry heads into the 2020s, there is a strong focus on what is to come beyond the 2022 FIFA World Cup, which has dominated the sector for much of the past decade, it said, adding the sector reached its peak during the 2016-19 period when a number of bigticket projects related to the sporting event were planned and implemented. On the North Field Expansion, it said the first stage, which is now undergoing preparation for implementation, Page 3 of 8
4. includes contracts for associated onshore liquefaction and storage facilities , the construction of new liquefied natural gas or LNG trains, utilities and off-site facilities, a helium recovery unit, nontechnical buildings, warehouses, workshops and associated amenities. Qatar is gearing up for a significant 64% boost in production from its North Field, from 77mn tons per annum (TPA) of LNG in 2019 to approximately 126mn TPA by 2027. (Gulf-Times.com)  QDB’s support to small, medium firms grows – In the year when Small and Medium Enterprises (SMEs) faced tough challenges due to COVID-19 outbreak, the small and medium firms got timely support from the QDB. Whether it was regarding financial services, consultancy or guidance, QDB registered impressive growth in all segments of its services during 2020. The direct lending from QDB grew to QR7.31bn last year, registering a growth of 9% from 2019, said the bank on its social media account, highlighting its achievement in 2020. The bank had granted direct loans of about QR6.7bn during 2019. The stateowned development organization is the main entity responsible for supporting and promoting local SMEs to establish a vibrant private sector in the country. There was a growth of 34% in number of beneficiaries from QDB’s advisory (consultation) service as 474 entities benefitted from such services in 2020 compared to 354 in 2019. QDB, apart from providing local as well as global market access and financial support services, it also offers a lot of other benefits such as incubation facilities, consultancy, market intelligence, training and skill development programs, meetings, seminars, workshops and exhibitions. During 2020, the number of incubated companies reached 320, registering around 25% compared to 2019. Small- and mediumsized enterprises make up a large share of Qatari enterprises and are a key pillar of the State’s ambitions to diversify the economy. In light of the National Development Strategy (NDS) for Qatar (2018-2022), the SME sector represents a target area for future development. (Peninsula Qatar)  Egypt, UAE resume first Qatar flights after blockade – The first direct flights between Qatar and two of the blockading nations – Egypt and the UAE – took to the skies on Monday following the end of a three and a half year regional crisis earlier this month. (Al Jazeera)  Annual real estate trading value exceeds QR31bn – The trading volume of registered real estates during 2020 at the Ministry of Justice’s real estate registration department stood at QR31,021,742,761. The data of the annual analytical real estate bulletin issued by the Ministry of Justice showed 5,117 real estate transactions were recorded, which confirms the strength and durability of the real estate sector and its continued strong growth as a major supporter of the national economy. During 2020, the municipalities of Doha, Al Rayyan and Al Daayen topped the most active trades in terms of financial value, followed by the municipalities of Al Wakra, Umm Salal, Al Khor and Al Thakhira, Al Shamal and Al Shahaniya. The value of the transactions of the Doha municipality amounted to QR14,972,472,275, followed by Al Rayyan municipality with QR5,594,183,878, while that of Al Daayen municipality was QR4,795,149,665, followed by Al Wakra with QR2,663,800,923, while that of Umm Salal reached QR1,992,901,259, and that of Al Khor and Al Thakhira municipality reached QR568,585,470, followed by Al Shamal at QR404,471,021 and Al Shahaniya at QR30,176,161. (Peninsula Qatar)  Al-Baker: Qatar Airways to continue taking every single aircraft ordered with Boeing, Airbus – Qatar Airways will continue to take every single aircraft that the national carrier has ordered from both the manufacturers (Boeing and Airbus), Group Chief Executive HE Akbar al-Baker has said. “At Qatar Airways we are very prudent in the way we place our aircraft orders and our requirements,” al-Baker told the BBC recently. As of December, last year, the airline’s fleet included 52 Airbus A350 and 30 Boeing 787, Qatar Airways data show. In the last few months of 2020, Qatar Airways took delivery of three Airbus A350-1000s, reaffirming its position as the largest operator of Airbus A350 aircraft with an average age of 2.6 years. (Gulf-Times.com) International  IEA says oil, gas methane emissions down 10% in 2020 as output fell – Global emissions of the potent greenhouse gas methane from oil and gas production dropped 10% in 2020 mainly because of lower output as opposed to concerted climate action, a report by the International Energy Agency (IEA) found. Methane has more than 80 times the warming potential of carbon dioxide in its first 20 years in the atmosphere and is liable to leak from oil and gas infrastructure, such as pipelines. Other industries, including agriculture, are also big methane emitters. Last year, oil and gas operations emitted over 70mn tons of methane, or around 10% less than in 2019, the IEA, which helps governments set energy policy, said. “A large part of the drop in methane emissions in 2020 occurred not because companies were taking more care to avoid methane leaks from their operations, but simply because they were producing less oil and gas,” the IEA said. “There is clearly a risk that this downward trend will be reversed by an increase in production to fuel a rebound in global economic activity.” An unprecedented deal in April between the Organization of Petroleum Exporting Countries, Russia and other nations cut oil production by around 10mn barrels per day, or 10% of pre-coronavirus global demand. US sanctions have crippled Venezuelan production and Libya’s oil industry has suffered from prolonged domestic strife. US producers were hit by oil prices slumping in 2020 as the COVID-19 pandemic sapped demand and a volume war broke out between Russia and Saudi Arabia. In the IEA’s Sustainable Development Scenario, which would see global warming curbed to manageable levels, energy sector methane emissions would have to fall to below 50mn tons by 2025 and below 25mn tons by 2030. (Reuters)  British firms call for immediate $10.3bn in COVID aid – British firms called on Tuesday for another 7.6bn Pounds ($10.3bn) of emergency government help, saying they cannot wait until Finance Minister Rishi Sunak’s March budget to learn if they will get more pandemic support. With Britain back under lockdown and companies adjusting to life after Brexit, firms are taking big decisions about jobs and investment and need to know if their financial lifelines will be extended, the Confederation of British Industry said. “We just have to finish the job. Now would be a very odd time to end that support,” CBI Director-General Tony Danker said in a statement. Sunak has extended his support measures several times already and has said his response to the pandemic will cost 280bn Pounds during the current financial year, saddling Britain with a peacetime record budget deficit. But Page 4 of 8
5. he is facing calls on many fronts to spend yet more including from lawmakers , some from his Conservative Party, who want an emergency welfare benefit increase to be prolonged. The CBI said Sunak should extend until June his broad job retention scheme, which is scheduled to expire in April, and then follow it up with targeted support for jobs in sectors facing a slow recovery such as aviation. He should give firms more time to pay back value-added tax which was deferred last year, grant a similar deferral for early 2021 and extend a business rates tax exemption for companies forced to close by the lockdown as well as their suppliers. (Reuters)  Scholz: Germany needs to extend and tighten COVID-19 lockdown – Germany must extend and tighten its lockdown measures to get down infection numbers in the pandemic more quickly, Finance Minister Olaf Scholz said. “I consider an extension and precise measures to increase the effectiveness of the (existing) measures necessary,” Scholz said, adding that stricter rules for working from home should be considered to reduce mobility and social contacts. German Chancellor Angela Merkel and the 16 state premiers are expected to discuss further curbs on Tuesday to slow the spread of new, more infectious variants of the coronavirus. (Reuters)  Japan MOF estimates record rollover debt issuance in fiscal 2023/24 due to COVID stimulus – Japan’s Ministry of Finance (MOF) expects to issue a record rollover debt of 157.37tn Yen ($1.52tn) in fiscal 2023/24 due to a huge amount of short-term bills to fund coronavirus stimulus packages, a draft government document seen by Reuters showed. The initial issuance forecast for the year through March 2024 exceeds the previous record of 147.19tn Yen planned for fiscal 2009, when the global financial crisis forced the government to resort to huge stimulus spending to support the economy. The latest estimates for the next three years were based on the budget for fiscal 2021, assuming an annual economic expansion of 1.5% as a baseline case and 3% in a growth scenario. The estimates will be submitted to parliament in the coming days for deliberation on the state budget drafts. Japan has deployed a combined $3tn in economic packages to combat the twin health and economic crises, with annual government bond issuance at an all-time high of 236tn Yen. Japan is saddled with a public debt burden that is more than twice the size of its $5tn economy, by far the largest among the industrialised nations, due to years of massive stimulus and the snowballing costs of supporting its fast-ageing population. (Reuters)  China's economy picks up speed in fourth quarter, ends 2020 in solid shape after COVID-19 shock – China’s economy picked up speed in the fourth quarter, with growth beating expectations as it ended a rough coronavirus-striken 2020 in remarkably good shape and remained poised to expand further this year even as the global pandemic rages unabated. GDP grew 2.3% in 2020, official data showed, making China the only major economy in the world to avoid a contraction last year as many nations struggled to contain the COVID-19 pandemic. And China is expected to continue to power ahead of its peers this year, with GDP set to expand at the fastest pace in a decade at 8.4%, according to a Reuters poll. The world’s second-largest economy has surprised many with the speed of its recovery from the coronavirus jolt, especially as policymakers have also had to navigate tense US-China relations on trade and other fronts. Beijing’s strict virus curbs enabled it to largely contain the COVID-19 outbreak much quicker than most countries, while government-led policy stimulus and local manufacturers stepping up production to supply goods to many countries crippled by the pandemic have also helped fire up momentum. GDP expanded 6.5% YoY in the fourth quarter, data from the National Bureau of Statistics showed, quicker than the 6.1% forecast by economists in a Reuters poll, and followed the third quarter’s solid 4.9% growth. (Reuters)  China gasoline exports fall in 2020 for first time since 2012 as pandemic curbs travel demand – China's gasoline exports fell for the first-time last year since 2012, as fuel demand shrank globally after government-imposed travel restrictions to contain the spread of the coronavirus pandemic. Exports of gasoline from China, the world's second-largest oil consumer, were 16mn tons last year, down 2.3% from 2019's level though still well above 2018's 12.9mn tons, data from the General Administration of Customs released on Monday showed. Exports in December were 1.45mn tons, down 16.5% from the same month a year ago, data showed. Diesel exports were also weak in 2020, down 7.6% from a year ago at 19.76mn tons, with December shipments at 1.49mn tons. Demand for jet kerosene was hit hardest by the pandemic as hundreds of thousands of international flights were cancelled. Exports of the fuel were 9.98mn tons in 2020, down 43.4% from a year ago. Having emerged more quickly from the initial impact of the pandemic, China has been leading the recovery in oil demand, as it relaxed domestic travel restrictions and factory output surged. Customs data on Monday also showed that imports of liquefied natural gas (LNG) in 2020 hit a record 67.13mn tons, shored up by demand for heating during the northern Asia winter. December imports also marked a record monthly high of 7.59mn tons, up 18.2% from the same month a year earlier and breaking the previous record of 6.61mn tons set in November. (Reuters) Regional  Russia’s flagship crude gets a boost from Saudi production cuts – Russia’s flagship crude is rising in price in Europe in the wake of Saudi Arabia’s surprise oil production cuts. The nation’s Urals crude sold at a slight discount of $0.70 a barrel to benchmark Dated Brent in northwest Europe on January 15, a increase of almost $1 from an 8-month low seen before Christmas, according to traders monitoring a pricing platform run by S&P Global Platts. Saudi Arabia, the world’s top oil exporter, surprised global oil markets earlier this month by announcing a plan to go it alone with output cuts of 1mn bpd in February and March. Most European buyers have seen their contractual volumes for February cut, and one refiner did not get any allocated cargoes. By contrast, Russia will boost its output slightly while most other nations participating in a supply-management pact kept production stable. Urals, which has similar properties to Saudi Arabia’s benchmark Arab Light crude, has seen an increase in demand from European refiners in the wake of the Riyadh’s decision to scale back supplies. Only two or three out of 48 cargoes for loading from Baltic ports in January have yet to find buyers, according to Urals traders, who say that the market has become busier since the Saudi cuts. (Bloomberg) Page 5 of 8
6.  SABIC said to shortlist Citi, MS for specialty chemicals IPO – Saudi Basic Industries Corp. (SABIC) has shortlisted banks including Citigroup Inc. and Morgan Stanley (MS) for potential roles on an initial public offering of its specialty chemicals unit, sources said. The Wall Street banks and others bid for the deal and SABIC is still finalizing the group, sources said. Specialty chemicals generate about $2bn of revenue each year for Riyadhbased Sabic, which is controlled by the Kingdom’s state energy firm, Saudi Aramco. Bloomberg News first reported in November that SABIC is speaking with advisors about a potential listing of the business. Reuters reported Monday that SABIC had hired NCB Capital to work on the unit’s IPO and was finalizing appointments of foreign banks, citing unidentified sources. (Bloomberg)  UAE banks’ investments in bonds, stocks rise in November – Total investments of Emirati banks in bonds and stocks soared by AED6.1bn or 1.4% on a MoM basis in November 2020 to reach AED454.2bn, according to data from the Central Bank of the UAE (CBUAE). This is compared to AED448.1bn in October 2020. The UAE banks’ investments in debt securities increased by AED3.5bn on a monthly basis in November, standing at AED284.9bn. Likewise, banks’ investments in stocks jumped by AED300mn in November when compared to the previous month. (Zawya)  DP World's Dubai Maritime City close to completing Phase 1 – Infrastructure works at one of Dubai’s mega developments, Dubai Maritime City (DMC), are nearing completion. DP World’s purpose-built maritime center is envisioned to become a major hub for maritime services. It was previously scheduled to start operations by 2021, but the completion date for the first phase of the project has been postponed to 2021. In a statement on Monday, DMC said construction of the road and infrastructure works in Phase 1 of the project’s commercial district is now almost 80 percent complete, adding that all “components” that will facilitate the delivery of services at DMC are set for completion on time. “Despite the disruptions in the global industry, we take pride in the fact that the pandemic and the resulting restrictions on movement did not cause any significant delays in the project,” CEO and Managing Director of DP World, UAE, Mohammed Al Muallem said. (Zawya)  Dubai’s property glut could mean two more years of price drop – Dubai home prices will likely extend declines this year and next as the market works to clear an oversupply that is been a drag on values since 2014, according to property broker JLL. “We’re really not at the bottom yet,” Head of Middle East research at JLL, Dana Salbak said. “We’re likely to see single-digit declines between 5% to 8% over the next year given that supply stays under control and developers continue to phase out their projects rather than flood the market.” A property glut and faltering demand have driven Dubai home prices down by more than 30% since the market peaked seven years ago, a decline made worse by the coronavirus pandemic. The government has responded by setting up a committee to manage supply and demand as some of the city’s largest developers continued with construction. Some developers have been calling for a moratorium on new projects in Dubai, the Middle East’s tourism and financial hub that’s grown reliant on real estate to power its economy. Developers are expected to flood Dubai with more properties this year. Average home prices in Dubai fell 8% last year. Rents slumped by 12% and are now about 4% below the lowest level reached in 2010. (Bloomberg)  ADNOC hires banks to sell stakes in power supply projects – Abu Dhabi National Oil Company (ADNOC) has hired banks to sell stakes in power supply projects, the Financial Times reported, citing unidentified sources familiar with plans. Banks including MUFG were hired to sell a stake to foreign investors in a $2bn to $6bn project to connect its offshore production facilities to the onshore electricity grid using subsea cables. The company also hired Credit Suisse to sell a stake in its power station at Ruwais refinery in a deal valued at more than $1bn. (Bloomberg)  Kuwait Emir accepts cabinet resignation in governmentassembly standoff – Kuwait’s Emir has accepted the resignation of the cabinet, state news agency KUNA said on Monday, after a standoff between the government and parliament over questioning the prime minister. The political confrontation, which erupted less than a month after the cabinet was appointed, has posed the first big challenge to Emir, Sheikh Nawaf al-Ahmed al-Sabah, who assumed power in September. It also complicates the government’s efforts to tackle the worse economic crisis in the wealthy Gulf state, which is facing a large budget deficit in the absence of a debt law that has long-caused political deadlocks. Prime Minister Sheikh Sabah al-Khalid alSabah and his cabinet will continue in a caretaker capacity until the formation of a new government, KUNA said. (Reuters)  Oman sells OMR57mn 28-day bills at yield 0.652% – Oman sold OMR57mn of 28-day bills due on February 17, 2021. The bills were sold at a price of 99.95, have a yield of 0.652% and will settle on January 20, 2021. (Bloomberg)  Bahrain says it attracted $885mn in investment in 2020 – Bahrain attracted $885mn in direct investment in 2020 through new companies setting up and expanding in the kingdom, the country’s investment agency said in a statement on Monday. Bahrain Economic Development Board said local, regional and international investors had launched operations and invested in sectors including financial services, manufacturing, logistics services and tourism. (Reuters)  Bahrain-based GFH acquires 80% stake in Hidd Mall – GFH Financial Group has expanded its presence in the retail sector by acquiring 80% stake in Hidd Mall alongside a strategic investor. Financial terms of the transaction were not disclosed. The 46,000 square meter mall, located in the fast-growing area of Hidd in Muharraq, is fully leased on a long-term basis to LuLu Hypermarkets, the largest retail chain in the Middle East. The mall is fully occupied currently, with LuLu sub-leasing the space to a diverse range of multinational, regional and local tenants. GFH’s investment management chief Hammad Younas said: “This a resilient investment in a key sector which we believe will witness significant growth as the pandemic winds down. Malls anchored by grocery stores have already proved highly resilient, with families choosing to stay at home more during the pandemic.” The mall gets high footfalls from Hidd residents. In addition to the hypermarket, it offers a range of banking, retail and F&B outlets such as NBB, Khaleeji Commercial Bank, Standard Chartered Bank, Malabar Gold and Diamonds, Yum Yum Tree Food Court, KFC, Baskin Robbins, Jasmi’s and Gloria Jean’s Coffees. (Zawya) Page 6 of 8
7.  Bahrain sells BHD70mn 91-day bills; bid-cover at 2.12x – Bahrain sold BHD70mn of 91-day bills due on April 21, 2021. Investors offered to buy 2.12 times the amount of securities sold. The bills were sold at a price of 99.454, have a yield of 2.17% and will settle on January 20, 2021. (Bloomberg) Page 7 of 8
8. Rebased Performance Daily Index Performance 4 .0% 4.2% 160.0 2.8% Dec-17 QSE Index Dec-18 Dec-19 S&P Pan Arab 0.1% 0.0% 1D%* WTD%* YTD%* (0.0) (0.0) 0.9 30,814.26 0.0 0.0 0.7 500# 3,768.25 0.0 0.0 0.3 12,998.50 0.0 0.0 0.9 408.68 0.0 0.0 1.2 13,848.35 0.3 0.3 (0.8) Dubai Close Dec-20 S&P GCC Source: Bloomberg Source: Bloomberg Asset/Currency Performance Close ($) 1D% WTD% YTD% Gold/Ounce 1,841.26 0.7 0.7 (3.0) MSCI World Index 25.35 2.4 2.4 (4.0) DJ Industrial# Silver/Ounce 0.1% 2,713.49 80.0 60.0 Dec-16 1.2% 0.0% Abu Dhabi 0.0% Saudi Arabia 109.6 0.6% Oman 120.6 100.0 1.4% Bahrain 120.0 Kuwait 123.5 Qatar 140.0 Global Indices Performance Crude Oil (Brent)/Barrel (FM Future) 54.75 (0.6) (0.6) 5.7 S&P Crude Oil (WTI)/Barrel (FM Future) 52.36 0.0 0.0 7.9 NASDAQ 100# 2.77 0.0 0.0 16.6 STOXX 600 LPG Propane (Arab Gulf)/Ton 95.00 0.0 0.0 26.2 DAX LPG Butane (Arab Gulf)/Ton 94.25 0.0 0.0 35.6 FTSE 100 6,720.65 (0.4) (0.4) 3.5 1.21 (0.0) (0.0) (1.1) CAC 40 5,617.27 (0.1) (0.1) (0.1) Yen 103.69 (0.2) (0.2) 0.4 Nikkei 28,242.21 (0.9) (0.9) 2.5 GBP 1.36 (0.0) (0.0) (0.6) MSCI EM 1,358.98 0.1 0.1 5.2 CHF 1.12 0.1 0.1 (0.7) SHANGHAI SE Composite 3,596.22 0.7 0.7 4.1 AUD 0.77 (0.3) (0.3) (0.2) HANG SENG 28,862.77 1.0 1.0 6.0 USD Index 90.77 (0.0) (0.0) 0.9 BSE SENSEX 48,564.27 (1.0) (1.0) 1.5 RUB 74.03 0.5 0.5 (0.5) 121,241.60 0.6 0.6 (0.0) BRL 0.19 (0.1) (0.1) (1.9) 1,474.86 0.0 0.0 6.3 Natural Gas (Henry Hub)/MMBtu Euro Source: Bloomberg Bovespa RTS Source: Bloomberg (*$ adjusted returns, #Market was closed on January 18, 2021) Contacts Saugata Sarkar, CFA, CAIA Shahan Keushgerian Zaid al-Nafoosi, CMT, CFTe Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) 4476 6534 Tel: (+974) 4476 6509 Tel: (+974) 4476 6535 saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa Mehmet Aksoy, PhD QNB Financial Services Co. W.L.L. Senior Research Analyst Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6589 PO Box 24025 mehmet.aksoy@qnbfs.com.qa 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.). QNB FS 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 8 of 8