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Qatar: Daily Market Report - 24 November

Majed Salah
By Majed Salah
5 days ago
Qatar: Daily Market Report - 24 November

Takaful, Sales


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  1. Daily Market Report Thursday , 24 November 2022 QSE Intra-Day Movement Market Indicators 12,000 Value Traded (QR mn) Exch. Market Cap. (QR mn) 11,950 23 Nov 22 22 Nov 22 %Chg. 516.6 410.0 26.0 664,255.2 661,383.4 0.4 158.1 111.2 42.1 16,890 15,499 9.0 45 44 2.3 26:15 19:21 – Volume (mn) Number of Transactions 11,900 Companies Traded Market Breadth 11,850 Market Indices Close 1D% WTD% YTD% 24,368.29 0.6 (2.6) 5.9 13.3 All Share Index 3,798.18 0.5 (1.0) 3.2 139.8 Banks 4,987.89 0.8 (0.3) 1.3 15.2 Industrials 4,119.50 0.7 (2.7) 2.4 11.2 The QE Index rose 0.6% to close at 11,896.7. Gains were led by the Insurance and Banks & Financial Services indices, gaining 3.1% and 0.8%, respectively. Top gainers were Estithmar Holding and Al Khaleej Takaful Insurance Co., rising 10.0% and 4.3%, respectively. Among the top losers, Qatar General Ins. & Reins. Co. fell 10.0%, while Baladna was down 4.5%. Transportation 4,468.97 (0.5) (3.4) 25.6 14.2 Real Estate 1,738.11 (0.6) (1.8) (0.1) 18.4 Insurance 2,305.11 3.1 (1.8) (15.5) 15.6 Telecoms 1,349.39 (1.4) (4.7) 27.6 12.2 GCC Commentary Consumer 8,512.18 (0.5) (2.2) 3.6 23.7 Al Rayan Islamic Index 5,046.96 (0.1) (2.4) 7.0 9.2 11,800 9:30 10:00 10:30 11:00 11:30 12:00 12:30 Total Return 13:00 Qatar Commentary TTM P/E Saudi Arabia: The Market was closed on November 23, 2022. Dubai: The DFM Index fell 0.1% to close at 3,326.2. The Real Estate index declined 0.7%, while the Communications Services index fell 0.2%. Gulf Navigations Holding declined 3.8%, while Islamic Arab Insurance Co. was down 2.5%. GCC Top Gainers## Exchange The Commercial Bank Qatar Banque Saudi Fransi Saudi Arabia Ahli Bank Oman First Abu Dhabi Bank Kuwait: The Kuwait All Share Index fell 0.2% to close at 7,555.3. The Technology index declined 9.7%, while the Insurance index fell 1.5%. Automated Systems Co. declined 9.7%, while Kuwait Projects Company was down 8.2%. Oman: The MSM 30 Index gained 0.9% to close at 4,543.8. The Financial index gained 1.2%, while the other indices ended flat or in red. National Aluminum Products Co. rose 5.0%, while Ahli Bank was up 4.9%. Abu Dhabi: The ADX General Index gained 1.4% to close at 10,508.4. The Real Estate and Financials Index indices rose 1.7% each. Fujairah Building Industries rose 14.6%, while Rak Co. was up 6.2%. Bahrain: The BHB Index gained marginally to close at 1,863.8. The Communications Services index rose 0.6%, while Consumer Discretionary index was up 0.2%. GFH Financial Group rose 1.9%, while Zain Bahrain was up 0.7%. Close# 1D% Vol. ‘000 YTD% 5.99 4.1 2,251.0 (11.3) 41.95 3.6 273.2 (11.2) 0.15 2.8 380.8 26.7 Abu Dhabi 18.00 3.0 4,729.0 (3.3) Aldar Properties Abu Dhabi 4.55 2.0 12,550.3 14.0 GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD% Sahara Int. Petrochemical Saudi Arabia 35.90 (2.3) 3,056.0 (14.5) Saudi Arabia 188.00 (2.3) 124.1 8.2 Mouwasat Med. Services Co. Saudi Research & Media Grp. Saudi Arabia 184.00 (2.1) 104.0 (6.2) Nahdi Medical Co. Saudi Arabia 188.40 (1.9) 302.2 N/A Ooredoo Qatar 9.22 (1.8) 1,424.7 31.3 Source: Bloomberg (# in Local Currency) (## GCC Top gainers/ losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Gainers Close* 1D% Vol. ‘000 YTD% Qatar General Ins. & Reins. Co. 1.72 (10.0) 282.8 (14.1) (33.3) Baladna 1.70 (4.5) 5,403.6 17.6 2,251.0 (11.3) Ooredoo 9.22 (1.8) 1,424.7 31.3 4.0 903.6 (24.8) Widam Food Company 2.34 (1.6) 0.0 (34.9) 1.05 3.9 99.2 (3.2) Medicare Group 6.65 (1.5) 48.0 (21.7) Close* 1D% Val. ‘000 YTD% 19.00 0.3 106,929.9 (5.9) Close* 1D% Vol. ‘000 YTD% Estithmar Holding 1.84 10.0 38,450.3 49.9 Al Khaleej Takaful Insurance Co. 2.40 4.3 336.6 The Commercial Bank 5.99 4.1 Qatar Insurance Company 2.07 Aamal Company QSE Top Volume Trades QSE Top Losers QSE Top Value Trades Close* 1D% Vol. ‘000 YTD% Estithmar Holding 1.84 10.0 38,450.3 49.9 Masraf Al Rayan 3.65 2.6 17,365.7 (21.4) Estithmar Holding 1.84 10.0 68,395.6 49.9 Qatar Aluminum Manufacturing Co. 1.62 0.2 13,904.9 (10.3) Masraf Al Rayan 3.65 2.6 62,757.9 (21.4) Ezdan Holding Group 1.12 0.2 11,764.7 (16.5) Industries Qatar 14.70 0.8 44,257.1 (5.1) Qatar Islamic Bank 23.39 (0.6) 32,067.3 27.6 Gulf International Services 1.63 0.7 8,951.0 (5.0) QNB Group Regional Indices Close 1D% WTD% MTD% YTD% Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 11,896.70 0.6 (2.6) (4.2) 2.3 141.98 181,076.0 13.3 1.6 3.8 Dubai 3,326.21 (0.1) (0.2) (0.2) 4.1 67.54 158,441.9 9.3 1.1 3.1 Abu Dhabi 10,508.44 1.4 1.0 1.1 24.0 841.32 655,683.1 18.8 3.0 2.0 Saudi Arabia# 10,965.41 0.3 (1.6) (6.0) (2.8) 871.37 2,712,865.6 17.0 2.2 2.7 Kuwait 7,555.34 (0.2) (0.7) 3.2 7.3 128.96 157,842.7 20.2 1.7 2.8 Oman 4,543.76 0.9 1.3 4.1 10.0 5.92 21,257.9 12.8 1.0 4.1 Bahrain 1,863.82 0.0 (0.1) (0.0) 3.7 2.15 66,386.7 5.1 0.7 5.7 Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any, # Data as of November 22, 2022) qnbfs.com
  2. Daily Market Report Thursday , 24 November 2022 Qatar Market Commentary Overall Activity Buy %* Sell %* Net (QR) • Qatari Individuals 27.31% 26.06% 6,423,076.0 Qatari Institutions 25.36% 27.10% (8,990,667.6) Qatari 52.67% 53.17% (2,567,591.7) GCC Individuals 0.23% 0.60% (1,875,259.8) GCC Institutions 1.83% 3.26% (7,373,189.4) GCC 2.06% 3.85% (9,248,449.2) Arab Individuals 12.62% 11.10% 7,844,855.4 Arab Institutions 0.00% 0.21% (1,069,957.6) • • The QE Index rose 0.6% to close at 11,896.7. The Insurance and Banks & Financial Services 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. Estithmar Holding and Al Khaleej Takaful Insurance Co. were the top gainers, rising 10.0% and 4.3%, respectively. Among the top losers, Qatar General Ins. & Reins. Co. fell 10.0%, while Baladna was down 4.5%. Volume of shares traded on Wednesday rose by 42.1% to 158.1mn from 111.2mn on Tuesday. Further, as compared to the 30-day moving average of 135.2mn, volume for the day was 16.9% higher. Estithmar Holding and Masraf Al Rayan were the most active stocks, contributing 24.3% and 11.0% to the total volume, respectively. Arab 12.62% 11.31% 6,774,897.8 Foreigners Individuals 3.15% 2.03% 5,829,292.2 Foreigners Institutions 29.49% 29.65% (788,149.2) Foreigners 32.65% 31.67% 5,041,143.0 Source: Qatar Stock Exchange (*as a % of traded value) Global Economic Data Global Economic Data Date Market Source Indicator Period Actual Consensus 11-23 US U.S. Census Bureau Durable Goods Orders Oct P 1.00% 0.40% Previous 0.30% 11-23 US U.S. Census Bureau Durables Ex Transportation Oct P 0.50% 0.00% -0.90% 11-23 US U.S. Census Bureau Cap Goods Orders Nondef Ex Air Oct P 0.70% 0.00% -0.80% 11-23 US U.S. Census Bureau Cap Goods Ship Nondef Ex Air Oct P 1.30% 0.20% -0.10% 11-23 US Department of Labor Initial Jobless Claims 19-Nov 240k 225k 223k 11-23 US Department of Labor Continuing Claims 12-Nov 1,551k 1,520k 1,503k 11-23 US Markit S&P Global US Manufacturing PMI Nov P 47.60 50.00 50.40 11-23 US Markit S&P Global US Services PMI Nov P 46.10 48.00 47.80 11-23 US Markit S&P Global US Composite PMI Nov P 46.30 48.00 48.20 11-23 US U.S. Census Bureau New Home Sales Oct 632k 570k 588k 11-23 US U.S. Census Bureau New Home Sales MoM Oct 7.50% -5.50% -11.00% 11-23 UK Markit S&P Global/CIPS UK Manufacturing PMI Nov P 46.20 45.80 46.20 11-23 UK Markit S&P Global/CIPS UK Services PMI Nov P 48.80 48.00 48.80 11-23 UK Markit S&P Global/CIPS UK Composite PMI Nov P 48.30 47.50 48.20 11-23 EU Markit S&P Global Eurozone Manufacturing PMI Nov P 47.30 46.00 46.40 11-23 EU Markit S&P Global Eurozone Services PMI Nov P 48.60 48.00 48.60 11-23 EU Markit S&P Global Eurozone Composite PMI Nov P 47.80 47.00 47.30 11-23 Germany Markit S&P Global/BME Germany Man. PMI Nov P 46.70 45.00 45.10 11-23 Germany Markit S&P Global Germany Services PMI Nov P 46.40 46.20 46.50 11-23 Germany Markit S&P Global Germany Composite PMI Nov P 46.40 44.90 45.10 Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Qatar  Baladna explores investment opportunity in Algeria - Baladna said Wednesday that they are exploring an investment opportunity in Algeria, in the field of dairy products. The company said in a press release on the Qatar Stock Exchange’s website that a delegation from the company visited Algeria to study the possibility of future investment and ways of mutual cooperation with the Algerian government, as an initial step to enhance means of cooperation and exchange of information and experience for the development of the dairy industry in the Algeria. (Peninsula Qatar)  New maritime line connecting Qatar, China starts operations - A new maritime line connecting Qatar with China has started operations as part of measures to enhance trade flows in a faster and cost-effective way, according to QTerminals. QTerminals has announced the commencement of the new shipping line linking Qingdao, Tianjin, Shanghai, Ningbo, Nansha (China); Jebel Ali (UAE); Dammam (Saudi Arabia); and Hamad Port, the terminal entity said in a tweet. "This shipping line service will increase direct trade opportunities be- tween the countries through which the shipping line passes and will contribute to the arrival of goods quickly, efficiently, and at lower costs," it said. During Q3 2022, Asia was the principal destination of Qatar’s exports and the first origin of Qatar's imports, representing 60.5% and 40.1% respectively, according to the latest data from the Planning and Statistics Authority. In September, China was at the top of the countries of destination of Qatar's exports with close to QR7bn, a share of 14.6% of total exports; it was the leading country of origin of Qatar's imports with about QR1.64bn, a share of 14.5% of the imports. (Gulf Times)  QIIK hosts Spain-Costa Rica match live screening with Visa - In keeping pace with the exceptional enthusiastic atmosphere of the world’s most important sports event; FIFA World Cup Qatar 2022, QIIK organized a qnbfs.com
  3. Daily Market Report Thursday , 24 November 2022 sporting event which was attended by Sheikh Dr. Khalid bin Thani bin Abdullah al Thani, Chairman of the Board of Directors, Board members, and Chief Executive Officer, in addition to QIIK customers and employees and the media who were also invited to attend. The event took place at the Sharq Village. The event included a live telecast on a giant screen of the match between Spain and Costa Rica match within the group stage matches of the FIFA World Cup Qatar 2022. This is amidst a festive atmosphere created by Qatar’s celebrations of the biggest sporting event on earth, where fans from all over the globe came to cheer their favorite teams, which made Qatar a destination of global sport. The event revealed the great passion of the attendees for football and their interest in the match events and the joyful atmosphere that is demonstrated everywhere whether in the areas near the stadiums or in e fan zones. On the margin of the event organized by QIIK in collaboration with Visa, Sheikh Dr. Khalid bin Thani bin Abdullah Al Thani, Chairman of the Board of Directors of QIIK said, “We are committed to celebrate, support and interact with the most important global event with all our capabilities, whether at the level of institutions or individuals. “QIIK has always been a pioneer in supporting sports and contributing to sporting events and the values that they represent, which include human and cultural interaction, openness to the experiences of other peoples, and belief in the power of sport and its ability to bridge countries and peoples”. (Peninsula Qatar)    QNB Group organizes activities for FIFA World Cup Qatar 2022 fans at Lusail Stadium – QNB Group, the Official Middle East and Africa Supporter of the FIFA World Cup 2022, has organized a rich program of events and activities for football fans at Lusail Stadium to celebrate the FIFA World Cup Qatar 2022. The Bank hosted an exclusive entertainment program packed with exciting entertainment for residents and visitors coming to Qatar from all over the world to embark on an experience of a lifetime. The program includes a range of football competitions and activities to continue rising enthusiasm and football passion. TikTok star Khaby Lame, who is the world’s most followed person on TikTok and the QNB Group’s Official FIFA World Cup 2022 Brand Ambassador, made a special appearance in the iconic stadium during the historic game of the Saudi national team against Argentina, bringing joy to football fans. Lame’s participation was marked by joyful moments where football fans imitated his famous signature hand gesture and took souvenir photos with him to capture these special moments. QNB Group also shared the joy of the Saudi fans at Lusail Stadium after their historic World Cup win over Argentina. The entertainment activities come as part of the Bank’s celebration of the first-ever World Cup in the Arab world and Middle East, and its keenness to provide a unique opportunity for fans inspired by the passion of the tournament. Heba Ali Al Tamimi, General Manager of QNB Group Communications, said: “QNB Group has designed a high-energy entertainment program creating memorable moments and unforgettable experiences for fans throughout the FIFA World Cup Qatar 2022™. We look forward to welcoming fans from across the globe in the QNB Group booth for a celebration of the beautiful game through our various activities and games.” QNB Group, currently ranked as the most valuable bank brand in the Middle East and Africa, is proud to be the Official Middle East and Africa Supporter of the FIFA World Cup 2022. (Peninsula Qatar) Qatar Chamber hosts workshop on ‘Issuing conformity certificates for food dispatches’ - Qatar Chamber, in co-operation with the Ministry of Public Health (MoPH) recently hosted a workshop on the mechanisms for issuing conformity certificates for food dispatches. The workshop comes as part of the Ministry’s initiative ‘Third Party: Pre-Shipment Food Inspection on Food Dispatches in the Country of Origin’. It touched on introducing the initiative and its application mechanisms, as well as the challenges that companies may face during the issuance of such certificates. The workshop was attended by Qatar Chamber’s assistant director-general for Government Relations and Committees Affairs Ali Bu Sherbak al Mansouri and Dr Nasr Hassanein from the Food Safety Department at the Ministry of Public Health. (Peninsula Qatar) USQBC hosts business visit to State of Illinois - The US-Qatar Business Council (USQBC) organized a business visit to Chicago, Illinois on November 17th to engage with key policymakers and the local business community to expand and enhance economic partnerships between the State of Qatar and the State of Illinois. The visit featured the following officials: Mohammed bin Sultan Al Kuwari, Consul General of State of Qatar in New York; Fahad Al Dosari, The State of Qatar Commercial Attaché to the United States; Mohammed Barakat, Managing Director and Treasurer of Board of Directors, US-Qatar Business Council The business visit kicked off with a virtual meeting between the group and Congressman Darin Lahood, US Representative from Illinois’ 18th District. Participants discussed the importance of the relationship between Qatar and the State of Illinois and ways to enhance future business & investment ties. During the Business Luncheon hosted by USQBC the Four Seasons Hotel in Chicago, participants were able to network, learn, and explore business opportunities between the State of Illinois and the State of Qatar. The following representatives delivered remarks during the luncheon: Mohammed bin Sultan Al Kuwari, Consul General of State of Qatar in New York; Fahad Al Dosari, Qatar Commercial Attaché to the United States; Mohammed Barakat, Managing Director & Treasurer of Board of Directors, US-Qatar Business Council. The State of Qatar and the State of Illinois are both flourishing trade hubs and some of the world’s most dynamic economies,” said Mohammed bin Sultan Al Kuwari, Consul General of the State of Qatar in New York City. “This visit demonstrates the commitment of Qatar to forging new partnerships as well as expanding trade & investment with Illinois. We look forward to a prosperous future together.” “Both Illinois and Qatar are some of the best places in the world for business and we see many opportunities for Illinois-based companies in Qatar and welcome Qatari investment to Illinois,” said Mohammed Barakat, Managing Director and Treasurer of the Board of Directors of USQBC. “This visit demonstrates the commitment both sides have to increasing investment and commercial ties across their many overlapping industries.” “Companies from Illinois will find it easy to establish and conduct business in Qatar,” said Fahad Al-Dosari, The State of Qatar Commercial Attaché to the United States. “Our government has several programs underway to encourage investment across a range of industries, including Renewable Energy, ICT, and Smart Cities, to achieve economic diversification and sustainability from which Illinois-based businesses, specifically SMEs, could benefit.” (Peninsula Qatar)  Borrell: Qatar sees remarkable progress in workers’ rights - High Representative of the European Union for Foreign Affairs and Security Policy HE Josep Borrell underscored that Qatar has made remarkable progress in the workers’ rights field over the past years. In a speech delivered on his behalf by European Commissioner for Health and Food Safety Stella Kyriakides before the European Parliament, Borrell praised the reforms and legislation implemented by the State of Qatar, saying that Qatar was the first Gulf state to abolish the (kafala) sponsorship system and adopt a new law that sets a non-dis-criminatory minimum wage for workers. The European official pointed out that Qatar is at the forefront of ensuring strict control over infrastructure projects for the 2022 FIFA World Cup Qatar and many other projects. He pointed out that Qatar’s organization of the 2022 World Cup contributed to accelerating the pace of reforming its work system, calling for the need to continue encouraging it to achieve more progress in this field. He affirmed the EU’s readiness to support and assist Qatar in the field of human rights, indicating that Qatar has always been open and welcoming to cooperation in this field. Borrell described the session held by the Subcommittee on Human Rights of the European Parliament last week with Minister of Labor HE Dr. Ali bin Saeed bin Smaikh Al Marri as “constructive,” explaining that the human rights situation in Qatar was discussed with great openness. Earlier, Gilbert F Houngbo, Director-General of the International Labor Organization (ILO) had said, “Qatar has made big progress (abolishment of the kafala system, introduction of minimum wages and heat protection measures) in a relatively short time. (Peninsula Qatar)  World Cup boosting Qatar dhow tourism - The dhow tourism is making money fast during the biggest sporting tournament in the world where visiting fans are trying to experience the beauty of the Doha sea through sailing. The Peninsula talked to two dhow operators in the Corniche who said that with Qatar's hosting of the World Cup, it has boosted their business since the tournament began on Sunday. Bipon who’s a dhow operator for eight years said they are earning as high as QR3,000 per day. “On normal days it’s around QR500 to QR1,000, now it’s QR1,500 to QR3,000. Business is booming as a result of the World Cup.” He said they are receiving an influx of tourists everyday as they have been operating qnbfs.com
  4. Daily Market Report Thursday , 24 November 2022 non-stop for 24 hours since the tournament started. “Mostly they are from Brazil, Argentina, Algeria, and Korea,” said Bipon. When asked what the peak time is when more tourists arrive, he said at 4pm because they want to see the sunset and the lighting is perfect for photo taking. The price for a 20-minute dhow ride costs only QR20, and for a personal dhow ride, QR200 per hour. Shahadussan who’s been working as a dhow operator for seven years expressed his happiness as his business is picking up. He explained that the quadrennial event has improved the dhow tourism drastically. “People are coming from all nationalities – Argentina, Saudi Arabia, Dubai, Oman and Qatar.” The two operators said that on Thursday, Friday, and Saturday of a given week, the number of visitors doubled. According to Shahadussan, this is because individuals have more time to explore the city because they aren’t working. (Peninsula Qatar)  Qatar Tourism and SC launch social media competition - Qatar Tourism (QT) and the Supreme Committee for Delivery & Legacy (SC) have announced a new, joint social media competition calling upon the country’s visitors to share their #UltimateQatarExperience. As Qatar prepares to welcome more than 1mn visitors in November and December, the competition encourages tourists to showcase their experiences while visiting the country. For a chance to win $100,000 prize visitors simply need to upload pictures and videos to their social media channels, using the @Vis-itQatar and #UltimateQatarExpe-rience tags. Three different prize values are open to entrants ($100,000, $50,000, and $30,000), that each include a three-night stay at a 5-star hotel, return flights from Qatar Airways, and two tickets to a once-in a lifetime experience. (Peninsula Qatar)  Deputy Prime Minister meets Belgian FM - Deputy Prime Minister and Minister of Foreign Affairs HE Sheikh Mohammed bin Abdulrahman Al Thani yesterday met with Belgium's Minister of Foreign Affairs, European Affairs and Foreign Trade and the Federal Cultural Institutions HE Hadja Lahbib, who is currently visiting the country to attend the FIFA World Cup Qatar 2022. The meeting dealt with reviewing bilateral cooperation, particularly in the field of energy, and Qatar’s efforts in the field of human rights, in addition to developments in the Middle East and Afghanistan, and the latest on the nuclear talks. (Peninsula Qatar)  'Health, property and motor lines corner 68% of QFCRA-licensed insurers' non-life business in 2021' - Health, property and motor lines accounted for 68% of the total business volume of the Qatar Financial Centre Regulatory Authority (QFCRA) authorized insurance firms, according to QFCRA annual report for 2021, which was released recently. "Non-life business has remained broadly consistent compared to the previous year and was dominated by health, property and motor lines, which in aggregate accounted for 68% of the total business volume in 2021 compared to 76% in 2020," the report said. Long-term insurance business represented 22% of the total business volume against 14% the previous year, it said, adding as many as 13 insurance companies and eight insurance intermediaries are licensed by the QFCRA during the review period. The total gross written premium (GWP) by the QFC insurance companies increased by 2.1% year-on-year to QR851mn in 2021; while the proportion of retained premiums was seen growing to 81% in 2021 compared to 77% in 2020. The retention ratio stood at 83% in the first quarter of 2021, which then declined to 68% in the second quarter of 2021, after which increased to 89% in the third quarter and again fell to 80% in the fourth quarter of 2021. The retention ratio refers to the portion of premiums (and therefore risk) that is kept on a company's books rather than being passed on to reinsurance companies. The QFCRA-licensed insurance companies' total assets were dominated by investments, including cash and bank balances and other investments, which together represented 62% of the total assets at the end of December 31, 2021. In the case of the composition of total liabilities of the QFCRA-licensed insurers, it has remained fairly consistent and was dominated by insurance-related liabilities comprising technical reserves, which together represented 71% of total liabilities at the end of December 31, 2021. Most of the business written by the QFCRAlicensed insurance firms was in Qatar, followed by other Gulf Cooperation Council countries. (Gulf Times)  Cabinet okays decree on Ashghal deal for Al Wakra, Al Wukair sewage project - The Cabinet, at a meeting chaired by Prime Minister and Minister of Interior HE Sheikh Khalid bin Khalifa bin Abdulaziz Al Thani on Wednesday, approved a draft decree approving the Public Works Authority (Ashghal) agreement for Al Wakra and Al Wukair Sewage Treatment Works project. This project was proposed in partnership between the public and private sectors. The Cabinet also approved a draft decision by the Minister of Communications and Information Technology to specify the correspondence system service fees for the semigovernmental and private sectors. The Cabinet approved the renewal of the membership of the chairman and members of the Grievance Committee of the Qatar Financial Markets Authority (QFMA). The Grievance Committee of QFMA, which is headed by a chairman, who is a chief of the Court of Appeals, along with two Court of Appeals judges as well as two others having experience in the securities field as its members, is competent to decide on the grievances concerning the penal decisions issued by the QFMA. The Cabinet also took the necessary measures to ratify a memorandum of understanding for cooperation in the fields of youth and sports between the governments of Qatar and the Eastern Republic of Uruguay. The Cabinet then reviewed and took the appropriate decisions on a draft Amiri decision to reorganize some public bodies, institutions and government agencies; the outcomes of the 8th Meeting of ministers responsible of Islamic affairs and endowments in the Gulf Cooperation Council (GCC) countries; and a report on the meetings of the opening week of the 77th session of the UN General Assembly. (Qatar Tribune) International  US weekly jobless claims at 3-month high; equipment spending resilient The number of Americans filing new claims for jobless benefits increased to a three-month high last week amid rising layoffs in the technology sector, but that likely does not suggest a material shift in labor market conditions, which remain tight. Economists urged against reading too much into the rise in weekly unemployment benefit claims reported by the Labor Department on Wednesday, noting the data tend to be volatile at the start of the holiday season as companies temporarily close or slow hiring. Claims remain in line with pre-pandemic levels. "It's certainly possible that layoffs are helping to boost increases in claims filings," said Isfar Munir, an economist at Citigroup in New York. "While this could be interpreted as evidence of a softening labor market, we would caution against this. The holiday season introduces a great deal of volatility into this data. It may be hard to disentangle the impact of seasonal patterns versus layoffs until January." Initial claims for state unemployment benefits rose 17,000 to a seasonally adjusted 240,000 for the week ended Nov. 19, the highest level since mid-August. Economists polled by Reuters had forecast 225,000 claims for the latest week. Moody's Analytics estimates the break-even level for claims at around 270,000. The jobs market has remained resilient in the face of the Federal Reserve's most aggressive interest rate-hiking cycle since the 1980s aimed at curbing high inflation by dampening demand in the economy. Economists say massive swings because of the COVID-19 pandemic had distorted the seasonal adjustment factors, the model that the government uses to strip out seasonal fluctuations from the data. According to Brean Capital Senior Economic Advisor Conrad DeQuadros, seasonally adjusting the raw claims data with the average of the adjustment factors for 2005 and 2011, years that the calendar aligned with in 2022, would have resulted in claims rising only 3,000 last week. "Nonetheless, the claims data should be closely watched in the coming weeks to see if this rise in claims is anything other than noise or poor seasonal adjustment," DeQuadros said. The claims report also showed the number of people receiving benefits after an initial week of aid increased 48,000 to 1.551mn in the week ending Nov. 12. The so-called continuing claims, a proxy for hiring, covered the period during which the government surveyed households for November's unemployment rate. Continuing claims increased between the October and November survey periods. Economists, however, forecast the unemployment rate unchanged at 3.7%. There were also signs of resilience in business spending on equipment, one of the two pillars of support for the economy. A separate report from the Commerce Department showed orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.7% in October. These so-called core capital goods orders decreased 0.8% in September. Shipments of core capital goods jumped 1.3% after dipping 0.1% in September. The report added to strong retail sales last month in qnbfs.com
  5. Daily Market Report Thursday , 24 November 2022 suggesting that the economy continued to expand, though risks of a recession next year are mounting as the Fed's rate hikes are seen stifling demand. A survey from S&P Global on Wednesday showed its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, contracting further in November, with a measure of new orders dropping to its lowest level in 2-1/2 years. (Reuters)  US new home sales unexpectedly rise in October - Sales of new US singlefamily homes unexpectedly jumped in October, shrugging off rising mortgage rates and house prices, which have drastically eroded affordability. New home sales rebounded 7.5% to a seasonally adjusted annual rate of 632,000 units last month, the Commerce Department said on Wednesday. September’s sales pace was revised down to 588,000 units from the previously reported 603,000 units. Sales surged 45.7% in the Northeast and accelerated 16.0% in the densely populated South. But they tumbled 34.2% in the Midwest and fell 0.8% in the West. Economists polled by Reuters had forecast new home sales, which account for about 10% of US home sales, would decline to a rate of 570,000 units in October. New home sales are volatile on a month-to-month basis. Sales dropped 5.8% on a Y-O-Y basis in October. The housing market has been hammered by aggressive Federal Reserve interest rate hikes that are aimed at curbing high inflation by dampening demand in the economy. The 30-year fixed mortgage rate breached 7% in October for the first time since 2002, data from mortgage finance agency Freddie Mac showed. The rate averaged 6.61% in the latest week. Sales of previously owned homes logged their ninth straight monthly decline in October, while singlefamily homebuilding and permits for future construction dropped to the lowest levels since May 2020, reports showed last week. The median new house price in October was $493,000, a 15.4% increase from a year ago. There were 470,000 new homes on the market at the end of last month, up from 463,000 units in September. Houses under construction accounted for 63.4% of the inventory, with homes yet to be built making up 23.6%. Completed houses accounted for 13% of the inventory, well below a longterm average of 27%. At October’s sales pace it would take 8.9 months to clear the supply of houses on the market, down from 9.4 months in September. (Reuters)  Report: US new vehicle sales to be flat in November amid high interest rate - US new vehicle retail sales are expected to be relatively flat in November as high vehicle prices, coupled with interest rate increase, are moderating demand, a report from industry consultants J.D. Power-LMC Automotive showed on Wednesday. Consumers who were willing to shell out more money for cars amid a shortage are now pulling back from spending as higher loan payment pressures affordability. The average monthly finance payment in November is set to be $712, up 7.2% from November 2021, according to the report. Although, demand, transaction prices and retailer profits continue to show strength on the retail side, these metrics will show signs of either moderation or decline, according to Thomas King, president of the data and analytics division at J.D. Power. King said he expects the trend observed in November to continue into 2023. Retail sales of new vehicles this month are expected to reach 933,402 units, a 0.3% decrease from November 2021, the report said. November seasonally adjusted annualized rate for total new vehicle sales is expected to be 13.9mn units, up from 12.9mn units a year earlier, the report showed. The report, however, flagged that new-vehicle transaction prices continue to rise but at a slower pace than earlier this year. Total new vehicle sales in November, including retail and non-retail transactions, are projected to reach 1,102,300 units, a 5.6% increase from November 2021, according to the report. Globally, vehicle selling rate is expected to increase slightly in November to 86.5mn units but volume growth from November 2021 is expected to be moderate at 8%. “The potential for new lockdowns in China and a rail strike in the United States add some risk to the outlook for November and December, but inventory is generally improving,” said Jeff Schuster, president, global forecasts at LMC Automotive. (Reuters)  US core capital goods orders, shipments rebound strongly in October New orders for US-made capital goods unexpectedly rebounded in October while shipments increased solidly, suggesting business spending on equipment started the fourth quarter on a strong footing despite a cooling in demand from higher interest rates. Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.7% last month, the Commerce Department said on Wednesday. These so-called core capital goods orders decreased 0.8% in September. Economists polled by Reuters had forecast core capital goods orders would be unchanged. The data is not adjusted for inflation. Core capital goods increased 9.2% on a Y-O-Y basis in October. There were increases in orders for machinery, computers and electronic products as well as electrical equipment, appliances and components. But primary metals orders slipped. Shipments of core capital goods jumped 1.3% after dipping 0.1% in September. Core capital goods shipments are used to calculate equipment spending in the gross domestic product measurement. Business spending on equipment rebounded sharply in the third quarter after contracting in the second quarter. The Federal Reserve’s rate-hiking cycle is the most aggressive since the 1980s. Despite the rebound in core capital goods orders and shipments last month, manufacturing is slowing as higher borrowing costs dampen demand for goods. The sector, which accounts for 11.3% of the US economy, is also being hobbled by a strong dollar due to tighter monetary policy, as well as an inventory overhang and weak global demand. Orders for items ranging from toasters to aircraft that are meant to last three years or more accelerated 1.0% in October after rising 0.3% in September. They were boosted by a 2.1% increase in orders for transportation equipment, which followed a 2.5% surge in September. Motor vehicle orders gained 0.6%. Orders for the volatile civilian aircraft category rose 7.4% after soaring 23.4% in September. Boeing said on its website it had received 122 aircraft orders last month, compared to 96 in September. (Reuters)  US business activity weakens further; Eurozone downturn eases slightly - US business activity contracted for a fifth straight month in November as higher interest rates slowed demand but the downturn in Eurozone business activity ebbed slightly as the world braces for a recession-hit year ahead, surveys showed on Wednesday. S&P Global said its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 46.3 this month from a final reading of 48.2 in October. A reading below 50 indicates contraction in the private sector. Activity is slumping under the weight of the Federal Reserve’s most aggressive interest rate-hiking cycle since the 1980s aimed at curbing inflation by dampening economic demand. By the US central bank’s preferred measure, inflation is still running at more than three times its 2% goal. The flash composite new orders index dropped to 46.4, the lowest level in two and half years, from a final reading of 49.2 in October. Outside the initial wave of the COVID-19 pandemic, this was the worst reading since 2009. “Companies are reporting increasing headwinds from the rising cost of living, tightening financial conditions - notably higher borrowing costs – and weakened demand across both home and export markets,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. A Reuters poll of economists last week gave a 60% chance of a US recession within a year and the Fed is primed for a 50 basis point hike at its next policy meeting in three weeks’ time as the battle to quash high inflation continues. Meanwhile, the downturn in Eurozone business activity eased slightly in November, offering a glimmer of hope the expected recession there may be shallower than feared, but consumers still cut spending amid a cost-of-living crisis. There has been mounting evidence the bloc is entering a recession and in a Reuters poll published on Tuesday economists gave a 78% chance of one within a year. S&P Global’s flash Composite Purchasing Managers’ Index (PMI), seen as a good gauge of overall economic health, nudged up to 47.8 from 47.3 in October, confounding expectations for a fall to 47.0 in a Reuter’s poll. However, November is the fifth month the index has been below the 50 mark separating growth from contraction. “Today’s PMI data continue to show that the Eurozone has entered a recession, with the surveys pointing to a milder contraction compared to previous recessions,” said Paolo Grignani at Oxford Economics. The downturn in German economic activity also eased in November, a sister survey showed, offering some hope an expected recession in Europe’s largest economy could be milder than first feared. But in France activity contracted for the first time since February 2021 as lower new orders weighed on the Eurozone’s secondbiggest economy. In Britain, outside the European Union, economic activity fell at close to its fastest pace in nearly two years in November, adding to signs of recession there. (Reuters) qnbfs.com
  6. Daily Market Report Thursday , 24 November 2022   UK PMI sticks near 21-month low as orders weaken - British economic activity fell at close to its fastest pace in nearly two years in November, adding to signs of recession as orders sank and employment growth slowed, a survey showed on Wednesday. The 'flash' or preliminary version of the IHS Markit/CIPS composite purchasing managers' index (PMI) for Britain edged up to 48.3 from 48.2 in October, which was its lowest reading since January 2021, when there was a COVID-19 lockdown. "A further steep fall in business activity in November adds to growing signs that the UK is in recession, with GDP likely to fall for a second consecutive quarter in the closing months of 2022," Chris Williamson, chief business economist at IHS Markit, said. PMI readings below 50 represent economic contraction, and economists polled by Reuters had expected the flash PMI to fall again this month to 47.5. IHS Markit said that aside from the pandemic, the UK PMI was now pointing to the biggest quarterly fall in economic output since early 2009, during the global financial crisis, with a drop of 0.4%. Official data showed Britain's economy shrank by 0.2% in the three months to the end of September, and last week Britain's Office for Budget Responsibility said it estimated the economy had entered a recession which would last until late next year. On Tuesday, the Organization for Economic Cooperation and Development forecast Britain would have the biggest fall of output among the Group of Seven rich nations next year. The PMI showed new orders fell at the fastest rate since January 2021 and that employment growth had slowed. "The business mood remains among the gloomiest seen over the past quarter century amid the numerous headwinds, which include the cost-of-living crisis, the Ukraine war, steepening export losses - often linked to Brexit, higher borrowing costs, fiscal tightening and heightened political uncertainty," Williamson said. However, firms reported the weakest inflation pressures in more than a year, although they remained high by historic standards. This drop will be welcomed by the Bank of England, which fears that inflation could be slow to fall back to its 2% target, after hitting a 41-year high of 11.1% in October. (Reuters) Reuter’s poll: Bank of England to raise Bank Rate by 50 bps in Dec, peak at 4.25% in Q1 - The Bank of England will press on with interest rate rises to battle inflation even though Britain is heading into a long albeit shallow recession, with consumers facing an extended cost of living crisis, a Reuter’s poll of economists found. Finance Minister Jeremy Hunt announced more pain in an autumn financial statement last week, with tax rises now and spending cuts further ahead, so any relief on borrowing costs would have been welcomed by indebted households. After adding 75 basis points to Bank Rate earlier this month the Monetary Policy Committee will add a more modest 50 basis points on Dec. 15, taking it to 3.50%, the Nov. 18-22 poll found. In an October poll, the rate was expected to end this year at 3.75%. Over 75% of respondents, 43 of 56, opted for 50 basis points while 13 said 75. "In terms of being able to pivot back to 50 I think there was enough in the autumn statement to calm some of the fears at the Bank of England on the outlook for next year," said James Smith at ING. Hunt's budget plan came after the blow dealt to Britain's fiscal reputation by former prime minister Liz Truss' unfunded tax cuts, which sent the Pound to an all-time low against the US dollar and forced the BoE to prop up bond markets. "When you listen to what some of the MPC have been saying, they tried to send a very strong dovish signal in November and that was to try and take some of the heat into what is priced into markets. It does also depend a little on the Fed," said ING's Smith. At the Nov. 3 meeting Governor Andrew Bailey told investors, who were pricing in a peak around 4.70%, their rate hike bets looked too big. The United States Federal Reserve has made four consecutive 75 basis point increases but was expected to shift down the pace to a 50 basis point move next month. December's move by the BoE will be followed by another 75 basis point lift across its two meetings next quarter, with the poll suggesting the Bank will then pause at 4.25%, matching the terminal rate given last month. But when asked about the risk to their terminal rate forecast, 15 said it was that it would come later and be higher than they expect and seven said that it would come earlier and be lower. The Bank's dilemma is inflation is running at more than five times its mandated 2% target 11.1% in October - and was not expected to reach the goal until at least 2025, yet it is raising interest rates as the country enters recession. Britons have been hit by soaring energy prices following Russia's invasion of Ukraine, food prices rising at the fastest pace since 1980, and disruptions to supply chains exacerbated by Britain's departure from the European Union. Asked how long before the cost-of-living crisis eases significantly, six said it would be 6-12 months while ten said it would be 1-2 years. One said it would be over two years. When asked about the probability of a recession within a year, poll respondents gave a median response of 90%, sharply higher than the 75% given in October. Quarterly gross domestic product (GDP) forecasts supported that number, with the economy predicted to shrink 0.4% this quarter and next and 0.3% in the following one. A 0.2% contraction was pencilled in for last quarter. Across next year the economy was expected to contract 0.9% while in 2024 it will expand 0.9%, the median view from the poll of 60 economists predicted. Inflation will peak at 10.7% this quarter, the poll found. It will then gradually fall, dipping to 10.0% next quarter and then to 7.7%, 6.5% and 4.5% in the following quarters. (Reuters)  Easing Eurozone downturn offers hope of milder recession - The downturn in Eurozone business activity eased slightly in November offering a glimmer of hope the expected recession may be shallower than feared, but consumers still cut spending amid a cost-of-living crisis, a survey showed on Wednesday. There has been mounting evidence the bloc is entering a recession and, in a Reuters, poll published on Tuesday economists gave a 78% chance of one within a year, with GDP expected to fall 0.4% this quarter and next. S&P Global's flash Composite Purchasing Managers' Index (PMI), seen as a good gauge of overall economic health, nudged up to 47.8 from 47.3 in October, confounding expectations for a fall to 47.0 in a Reuters poll. However, November is the fifth month the index has been below the 50 mark separating growth from contraction. "Today's PMI data continue to show that the Eurozone has entered a recession, with the surveys pointing to a milder contraction compared to previous recessions," said Paolo Grignani at Oxford Economics. The downturn in German economic activity also eased in November, a sister survey showed, offering some hope an expected recession in Europe's largest economy could be milder than first feared. However, in France activity contracted for the first time since February 2021 as lower new orders weighed on the Eurozone's second-biggest economy. In Britain, outside the European Union, economic activity fell at close to its fastest pace in nearly two years in November, adding to signs of recession there. Another Reuter’s poll gave a 90% chance of a British recession within a year but that the Bank of England would press on with interest rate rises to battle inflation running at more than five times its 2% target. (Reuters)  Eurozone spreads tighten, German curve inverts after PMI data - The German yield curve inverted further and spreads between core and peripheral bond yields tightened after Purchasing Managers’ Index (PMI) data showed that overall demand continued to decline, suggesting a shorter monetary tightening path. November is the fifth month the S&P Global’s flash Composite PMI index has been below the 50 mark separating economic growth from contraction. “The sticking point is that the Eurozone composite PMI index is still below the 50 mark, confirming expectations that the euro area economy will enter a mild recession at the turn of the year,” Francesco Di Bella rate strategist at Unicredit said. “With this backdrop, a 50 bps rate hike in December is fully on the cards,” he added. “That said, next week’s inflation data might still change market expectations on future ECB moves.” Germany’s 10-year government bond yield, the bloc’s benchmark, was up 0.5 basis points (bps) at 1.98%. It hit its lowest since October 5 at 1.949% last week. The 2-year yield, more sensitive than other maturities to ECB rate hikes, rose 6 bps to 2.16%. The gap between 10-year and 2-year German yields was at -17.6 bps, after hitting its lowest level since June 2008 at 18.1. Such a reaction implies hikes in the short term but also suggests markets expect rates to be lower over a more extended period. Market participants said this scenario could be a precursor of a recession or a signal that central banks will win their battle against inflation soon and be able to ease monetary policy, allowing the economy to grow. ECB Vice-President Luis de Guindos said on Wednesday the central bank will keep raising interest rates until it brings inflation down to around its 2% mid-term goal even though the Eurozone economy is heading towards a recession. Italy’s 10-year bond yield fell 4.5 bps to 3.88%, with the spread between Italian and German 10-year yields tightening to 188 bps. Investors will also watch US Treasuries before the release of minutes from the Nov. 1-2 Federal Reserve policy meeting, due late on Wednesday. Analysts said minutes from the Federal Open Market Committee (FOMC) might provide insights about expectations for a qnbfs.com
  7. Daily Market Report Thursday , 24 November 2022 slower pace of hikes but a potentially higher terminal rate. They also flagged the meeting was before the soft inflation data released on November 10. However, minutes might show some building differences between officials who favor a wait-and-see approach and those who present a view that financial conditions will need to tighten further. (Reuters) its kind in Saudi Arabia, will be completed in coming years and have a capacity of 400,000 barrels of crude per day, he added. During an event to open a SABIC building in Al Jubail, the prince also said Saudi Arabia plans to open a new port in the industrial city of Ras Al Khair to export petrochemicals. (Reuters)  Nestle to invest $1.86bn in Saudi Arabia over 10 years - Nestle (NESN.S) will invest 7bn Saudi Riyals ($1.86bn) in Saudi Arabia over 10 years, the kingdom's investment ministry said on Twitter on Wednesday. The ministry added it signed a memorandum of understanding with Nestle in the field of food industries saying it includes establishing a factory and a research and development center. The company plans an initial investment of 375mn Riyals in Saudi Arabia, it said. (Reuters)  Saudi Central Bank licenses new payment financial technology company - The Saudi Central Bank (SAMA) announces the licensing of a new payment financial technology company, namely: Tweeq International financial Company to provide E-wallet services. This brings the total number of payment companies licensed by SAMA to 23 companies, in addition to 5 companies were granted an "Inprinciple Approval". This comes as part of SAMA's role to promote the development of the financial technology sector to ensure ultimate stability and growth of the sector. This should help attract new investors and bring an added value to the sector, while complying with SAMA's regulatory requirements meant to enhance the overall financial stability and support greater opportunities of the Saudi's Vision 2030. In this regard, SAMA reiterates its commitment to support and facilitate the improvement of Fintech sector, encourage innovation and increase efficiency in financial transactions in a bid to boost financial inclusion in the Kingdom. This also comes in quite handy to realizing the objectives of the FinTech strategy by making the Kingdom one of the world's leading countries in the field, and it will contribute to the economic empowerment of the Saudi society and its citizens by promoting further innovations in technology-based financial services. Meanwhile, SAMA emphasizes the importance of dealing with licensed or authorized financial institutions. For further details, please check SAMA's website. (Zawya)  GCC investors optimistic over bright Saudi outlook - Investors across the GCC expect cash deposit returns of above 3% this year as against less than 3% in 2021, a new survey has found. Conducted by Bahrain-based SICO, the second annual investor return assessment survey however found that inflation remains the key concern for the next 12 months. The regional asset manager, broker, market maker, and investment bank has published the results in the GCC Report, Mapping Investor Expectations and Regional Outlook which concluded that investors are generally optimistic about the economic outlook of Saudi Arabia and the UAE while being broadly neutral on other countries such as Kuwait, Bahrain, and Oman. Respondents picked private equity as the asset class requiring the highest returns, at 14%, reflecting its significance to investors, despite the higher risk associated with it compared to other asset classes. With regards to 10year USD government bonds, required returns in Saudi Arabia, the UAE and Kuwait, stood between 3-5% annually. While the majority of respondents maintained their annual return expectations in their 2022 responses at a similar level to 2021 for Oman and Bahrain between 6-8%, a considerable number of investors this year also expect higher returns of between 9-11% for this asset class. Within income-generating real estate, investors required 9-11% in the UAE – the highest across GCC markets – while investors required a lower return of 6-8pc in Kuwait, Bahrain, and Saudi Arabia. Return requirements for listed equities increased to 9-11% in Saudi Arabia and the UAE from 6-8% last year. Similarly, higher return expectations are trending for the other GCC markets as well. In its second year running, the online survey commenced this year in September and compiled data from C-Suite executives, investment and fund managers, business owners, and institutional investors representing a diverse mix of GCC enterprises, multinational companies, listed and private companies, and government entities. (Zawya)  153,347 Saudis quit job market in 1H of 2022 - The total number of Saudis who left their jobs during the first half of the year 2022 accounted for 153,347 men and women, according to the monitoring of Okaz/Saudi Gazette. Around 89,000 Saudi working men and women tendered their resignations. This represents more than 58% of the total number of Saudi Regional    India, Gulf Cooperation Council to launch free trade pact negotiations on November 24 - India and the Gulf Cooperation Council (GCC) will announce the launch of negotiations for a free trade agreement on November 24, which aims at promoting two-way commerce and investments between the regions, an official said. India's exports to the GCC member countries grew by 58.26% to about $44bn in 2021-22, as against $27.8bn in 2020-21, according to data from the Commerce Ministry. The share of GCC members in India's total imports rose to 18% in 2021-22, from 15.5% in 2020-21. Bilateral trade has increased to $154.73bn in 2021-22, from $87.4bn in 2020-21. "GCC officials will be here for the announcement," the official said. India has already implemented a free trade pact with the UAE in May this year. This would be a kind of resumption of FTA talks as earlier two rounds of negotiations had been held in 2006 and 2008 between India and GCC. Third round did not happen as GCC deferred its negotiations with all countries and economic groups. India imports predominately crude oil and natural gas from the Gulf nations such as Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones; metals; imitation jewelry; electrical machinery; iron and steel; and chemicals to these countries. Besides trade, Gulf nations are host to a sizeable Indian population. Out of about 32 million non-resident Indians (NRIs), nearly half are estimated to be working in Gulf countries. These NRIs send a significant amount of money back home. According to a November 2021 report of the World Bank, India got $87bn in foreign remittances in 2021. Of this, a sizeable portion came from the GCC nations. (Bloomberg) New impetus for sustainable waste management in GCC - Rebound Plastic Exchange, a global B2B digital trading platform for recycled plastics, is geared to support the Cooperation Council for the Arab States of the Gulf (GCC) to achieve sustainable waste management, a recent report by the company stated. Currently, it is estimated that it will take $60-85bn. invested across four key value streams, plastic, concrete and cement, metal, and bio-waste over the next 20 years to meet targets throughout the GCC region - according to a new report by Boston Consulting Group (BCG) in collaboration with the World Business Council for Sustainable Development (WBCSD). The recent launch of Rebound Plastic Exchange will spur trust and quality assurance amongst buyers and sellers in the GCC, providing companies and nations with a vital benchmark for their capacity to adopt and trade quality assured plastics, equip them with frameworks to facilitate exchange and highlight the tangible benefits of transparent plastic trading. Rebound Plastic Exchange General Manager, Maryam Al Mansoori (pictured) said: “Facilitating the demand supply gap with the GCC’s recycling infrastructure will position the GCC as a key actor in the global effort towards circularity. Rebound Plastic Exchange can help do just that.” The report, titled “Recycling in the GCC: Securing Valuable Resources for a Sustainable Future”, finds that the GCC generates between 105 and 130 mn tons of waste per annum, and that the $85bn investment stronghold would cover design, collection, sorting, and recycling investment across these four key waste streams. The recorded numbers underscore how the generated waste in the Gulf countries comes primarily from Municipal Solid Waste (MSW), Construction and Demolition Waste (CDW) and agricultural waste. As the host of COP28 next year, the UAE has an opportunity to not only drive climate action at home but also to set an example to the world. Hosting the International Solid Waste Association (ISWA) World Congress in 2023, Oman will certainly build on the momentum by attracting key stakeholders to the region. (Peninsula Qatar) Saudi's SABIC and Aramco plan to start project to convert crude into petrochemicals - Saudi Basic Industries Corporation (SABIC) (2010.SE) and Saudi Aramco (2222.SE) are planning to start a joint project to convert crude into petrochemicals in Ras Al Khair, the kingdom's energy minister Prince Abdulaziz bin Salman said on Wednesday. The project, the first of qnbfs.com
  8. Daily Market Report Thursday , 24 November 2022 employees registered with the General Organization for Social Insurance (GOSI) whose subscriptions were suspended in the past. It was revealed in the monitoring that there are 19 reasons attributed for quitting the job by the Saudi employees, of which the lion’s share was resignation. The second reason was the expiry of the employment contract and the employer’s unwillingness to renew the contract. The number of Saudis in this category during the half-month period exceeded 15,000 men and women. Their percentage is 10 of the total GOSI subscribers. The third reason was the termination of the contract during the probation and training period. Their number reached about 14,000 male and female employees, representing 9.28%. The number of Saudi men who left their jobs in the first half of this year is about 81,000 Saudis, while the number of women is about 72,000. Despite the higher number of men leaving their jobs compared to women, the reasons why women stop working are due to the end of the contract and its non-renewal by the two parties. Their number reached 2089 women compared to 1642 men. (Zawya)   UAE set sights on 50mln containers by 2032 - The UAE will continue to promote its shipping sector as it recognizes the critical role of the maritime sector in keeping trade flowing, its top official says. Hessa Al Malek, advisor to the Minister for Maritime Transport Affairs, UAE Ministry of Energy and Infrastructure, emphasized that seafarers are undoubtedly the backbone of the maritime and shipping sector. “We aim to increase the volume of containers handled by the nation to 50mn by 2032, with a growth rate of about 150%. This is in addition to our ambition of increasing the number of ships and tankers carrying the UAE flag to 2,000 ships,” Al Malek said while addressing the 4th annual ‘Safety at Sea’ conference in Dubai. The conference was held under the patronage of the UAE Ministry of Energy and Infrastructure and Tristar Group’s Maritime Logistics division and participated by industry stakeholders, experts and executives in maritime and shipping sector. The event highlighted issues related to the physical and mental well-being of seafarers as well as discussed pressing issues such as decarbonization, energy efficiency, digitalization, and the role of AI in driving the progress of the sector. Al Malek said the UAE has led the way in taking action and launching ground-breaking initiatives. “During the peak of the pandemic, we were the first country in the world to facilitate the safe exchange of more than 240,000 seafarers and their safe return to their home countries,” she said. Referring to recent initiatives such as ‘Salmeen’, ‘sail safely’ and ‘supporting our blue army’, the advisor said these initiatives improve the quality of life of seafarers and enhance maritime safety to protect people’s lives. “It is necessary that we continue our efforts towards ensuring a better life for our ‘blue army,’ who have and will continue to play a major role in the industry’s success,” Al Malek said. Boasting a coastline of more than 1,650km, the UAE’s strategic location at the crossroads of global shipping routes makes the country a key trade and logistics hub. This is testified by the fact that the nation’s ports receive over 21,000 ships annually, and its ports handle more than 17mn containers each year. (Zawya) UAE’s Fincasa Capital pledges up to $76.23mn for property sector in 2023 - Dubai-based investment firm Fincasa Capital plans to earmark around AED 280mn for the real estate sector during 2023 through its company Star Runner Property. The planned amount marks a significant leap from Fincasa Capital’s allocation of nearly AED 25mn in 2022, according to a press release. Meanwhile, the announced investment aims to further boost Star Runner’s position in the local property industry. It also aligns with Fincasa Capital’s ongoing efforts to expand its business and reinforce Dubai’s economic status as one of the world’s key investment hubs. Furthermore, this step will scale up Fincasa Capital’s current services in various areas, including startups, investment migration, cross-border investments, foreign direct investment (FDI), and citizenship by investment. Varis Sayed, Founder of Fincasa, said: “With the allocation, we will focus on investing in premium real estate projects being developed by leading Dubai-based developers.” Sayed added: “We will capitalize on the projects’ growth potential in keeping with our commitment to deliver high-end services to our clients as their trusted investment partner in Dubai and the region.” The Founder also mentioned that the transaction is a vital step that will foster Star Runner’s portfolio of elite property units, while enabling it to be ranked among the industry’s top-tier companies. (Zawya)  World Corporate Summit under way featuring 1,500 global business leaders - The World Corporate Summit is hosting 1,500 leaders in Dubai from across the globe to exchange ideas and build partnerships that will impact the world economy, cementing the UAE’ position as a global business hub. Running until 15th December 2022, this exclusive 20-day senior executive summit features over 100 dialogues as round table discussions, as well as networking events and private gala dinners. The World Corporate Summit offers a platform that enables renowned global leaders to interact, network, and brainstorm the future of the global economy, across all verticals such as business, finance, education, health, sports, media, technology and industry. During the summit, the key highlight of sports week will be Investopia: The Future of Sport, hosted by Abdullah bin Touq Al Marri, Minister of Economy and Chairman of Investopia, taking place on 7th and 8th December 2022. Sports being a valuable aspect for the UAE, Investopia, was designed to shape the future economy of sport and become a major investment arm of the UAE government. “By bringing together the major players of the world of sport and business in Dubai, to share in the passion of football while exploring investment opportunities, during the biggest international sporting event, we are laying the foundation for a more inclusive and modern World Economic Forum, with the support of Dubai's Department of Economy and Tourism,” said Bernard Caiazzo, President of WCS and President of the Global Football Alliance. Ahmed Al Khaja, CEO of Dubai Festivals and Retail Establishment (DFRE), commented, “We are pleased to extend our support to the World Corporate Summit, a significant gathering of top global executives that further reinforces Dubai’s position as an international hub for events, business and tourism. As a multifaceted destination that offers visitors a multitude of different experiences, events form a key element of Dubai’s tourism strategy that is guided by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to ensure Dubai becomes the most sought-after destination and the best city in the world to live and work in.” The private invitation-only inaugural edition of the World Corporate Summit, supported by Dubai’s Department of Economy and Tourism, with the mission of driving economic growth, not only in the UAE but also globally, provides attendees the opportunity to do business while attending their national team’s matches, supporting economic growth and tourism in the GCC region. (Zawya)  Survey: More than half of UAE's top executives plan to quit jobs, cut work hours - Employers can expect a wave of resignations in 2023, as most UAE professionals holding leadership roles are planning to make career changes next year, including moving jobs or retiring from work, according to a new survey. More than half (53%) of the country’s top-level executives polled for the Bupa Global 2022 Executive Wellbeing Index confirmed that they are reassessing their priorities and are planning to either leave their current employer or reduce working hours. They are also looking at the possibility of stopping work completely to improve their mental health and spend more time with loved ones. “Over the next year, the ‘rethinking of priorities’ will see one of the biggest waves of resignations and changes globally and locally… as some of the UAE’s top executives leave their jobs, become consultants, go part-time, retire or stop working completely,” Bupa said in a statement. The trend is likely to create “seismic shifts in the local labor market at the highest level” at a time of ongoing global economic uncertainty, Bupa noted. According to the study, about nine in ten (94%) of top leaders in the UAE have experienced symptoms of poor mental health in the last 12 months. About one in five (20%) have experienced burnout, while 24% reported having “feelings of sadness and anxiety categorized as low mood” and 22% cited lack of energy. One in five (20%) have also experienced feelings of anger, mood swings and burnout. Executives also deal with “daily worries”, including personal financial stability (26%), family stress (23%) and changes to COVID management policies (22%). (Zawya)  Maktoum bin Mohammed meets with Chairman of KPMG International HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, today met with Bill Thomas, Global Chairman and CEO of KPMG International. In his discussions with the KPMG International Chairman and CEO that took place at the Dubai International Financial Centre, His Highness Sheikh Maktoum stressed Dubai’s commitment to forge strong partnerships with qnbfs.com
  9. Daily Market Report Thursday , 24 November 2022 the world’s leading professional services companies. KPMG is a global network of independent member firms offering audit, tax and advisory services. Operating in 145 countries and territories, KPMG serves the needs of businesses, governments, public-sector agencies, not-for-profits and the capital markets. During the meeting, HH said that Dubai is committed to providing global professional and financial services companies with the growth-friendly ecosystem, world-class infrastructure and legislative framework necessary to develop their business in the country and tap the vast opportunities in the fast-growing markets of the extended region. The platform provided by Dubai has supported many global companies in the sector in advancing their reach, growth and innovation in the region, His Highness noted. The Chairman of KPMG International expressed his appreciation for the support extended by Dubai and the UAE to the company and the emirate’s efforts to catalyze the development of the professional and financial services market in the region. He said KPMG looks forward to new opportunities to strengthen its relationship with the UAE and Dubai. Dubai’s emergence as a key regional financial hub and its world-class infrastructure have created new avenues for global firms to expand their business and advance innovation. (Zawya)  UAE makes full name mandatory on passports for travel - The UAE has issued a new directive making it mandatory for passengers traveling to and from the Emirates to have both their primary (first name) and secondary (surname) names mentioned in their passports, media reports said. The circular stated that travelers with only one name will not be allowed to enter the Emirates from November 21, 2022, according to a report on Travelobiz.com. This new naming policy does not apply to people who have a valid residence permit or work visa, and the same name is updated in both the first and surname columns. Indian airlines, including Air India Express, SpiceJet, and IndiGo have informed travel agents about the change in the naming policy, the report said. The rules only apply to tourist, visit, or on-arrival visas and do not apply to existing resident card holders, reports said, explaining that passengers traveling with a single name on passports on residence/employment visas shall be allowed to travel. Meanwhile, passengers traveling with a single name on passports on a tourist/visit visa or any other visa shall not be allowed to travel, it clarified. (Zawya)  Dubai’s Depa secures new deals worth $42.7mn - Dubai-based interiors company Depa has secured deals for hospitality projects worth AED157mn ($42.7mn). The deals, secured through the company’s business unit specializing in the provision of interior solutions, include a AED120mn hospitality package within the Red Sea Island development in Saudi Arabia. The company also secured a “mock-up package” for another project on the Red Sea in Tabuk Province and a similar deal for another project in the City of Neom, according to a statement on Nasdaq. The two deals are estimated to be worth AED37mn. (Zawya)  ADFD, AIIB explore ways to strengthen cooperation over sustainable economic development - Mohamed Saif Al Suwaidi, Director-General of Abu Dhabi Fund for Development (ADFD), today met at the Fund’s headquarters Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB). The meeting was attended by Khalifa Abdullah Al Qubaisi, Deputy Director-General of ADFD, and other officials from both sides. The two sides discussed the development of bilateral relations and explored new investments opportunities in vital sectors. Al Suwaidi said, “ADFD has close relations with the Asian Infrastructure Investment Bank, especially as the two entities share similar objectives. The Fund is keen to enhance economic cooperation with the bank that would support the common mission to achieve sustainable development in developing countries.” He welcomed AIIB’s decision to opt for Abu Dhabi as the preferred location to have its first operational office outside of China, which he said would also help in the unification of efforts to smoothen coordination between the UAE and AIIB to achieve the bank's strategic objectives for expansion. Al Suwaidi also discussed ways to enhance cooperation between ADFD and the bank over the Energy Transition Accelerator Financing (ETAF) initiative to accelerate the global energy transition, a strategic priority of both organizations. He pointed out that ADFD and AIIB had contributed to the platform, which plays a critical role in financing renewable energy projects. The UAE participated in the seventh annual meeting of the Board of Governors of the Asian Infrastructure Investment Bank in October of this year. Represented by 105 member states, in addition to the strategic partners of the bank, the meeting highlighted the importance of increasing investment in clean energy projects and unification of efforts to reduce the effects of climate change. (Zawya)  Aldar partners with ADGM Academy to further develop local talent Aldar Properties (Aldar) has entered a strategic collaboration with the Abu Dhabi Global Market Academy (ADGMA), the knowledge arm of Abu Dhabi’s international financial center (ADGM), to develop a range of talent development programs for Emirati graduates amid the company’s ambitious drive to create 1,000 job opportunities for UAE nationals by 2026. Since the introduction of the NAFIS program in September 2021, Aldar has hired more than 260 Emiratis across the group. The collaboration is part of a Memorandum of Understanding recently signed between Aldar and ADGMA that aims to enhance both entities’ contribution towards the UAE’s knowledge-based economy and foster the next generation of business leaders in the private sector. Commenting on the collaboration, Bayan Al Hosani, Executive Director of People, Culture and Performance at Aldar, said, “Investing in our people and contributing to the sustainable future of the UAE are top priorities that guide how we operate at Aldar. We are proud to partner with ADGMA to deliver on these priorities and accelerate our contribution towards the UAE’s knowledgebased economy. Together, we can provide our talent with the necessary tools and access to excel in the workplace and play an active role in the development and prosperity of our nation.” Training modules on interpersonal skills, working in teams, workplace culture, career development and management, and the importance of networking are among the areas covered by ADGMA’s program. Once the training is completed, participants will have the opportunity to receive on-the-job training within the Aldar Group. (Zawya)  Kuwait: KIPCO completes merger with QPIC - The Kuwait Projects Company (KIPCO) announced Wednesday it has already completed its merger by amalgamation with Qurain Petrochemical Industries (QPIC), with the merged entity now trading on Boursa Kuwait under a single ticker, KPROJ. Marking the completion of the transaction, all QPIC shares have been transferred to KIPCO following an in-kind capital increase. KIPCO's authorized, issued and paid-up capital now stands at KD 504.8mn ($1.55bn) distributed over 5.048bn shares. The swap ratio was 2.24 KIPCO shares for every QPIC share, KIPCO said in a press release. KIPCO's market capitalization is now over KD 600mn ($1.94bn), it said, adding that the combined portfolio would further diversify revenue streams and allow for expansion into new businesses. KIPCO's Group Chief Executive Officer Sheikha Dana Nasser Sabah Al-Ahmad Al-Sabah said: "Today marks a milestone for KIPCO. We view the merger as a transformative transaction that will make KIPCO stronger and provide greater value to its shareholders, both the old and the new." She said the transaction was executed smoothly, reflecting the confidence that all parties have in the benefits of this merger. She expressed appreciation to the regulators, namely the Capital Markets Authority, Competition Protection Authority, Ministry of Commerce and Industry, Boursa Kuwait and Kuwait Clearing Company, for their efforts in ensuring that all aspects of this transaction were in line with the best interests of all stakeholders. She added KIPCO has now engaged a global advisory to take an in-depth look into its portfolio companies in a bid to maintain a diversified revenue stream and balance asset concentration to mitigate market risks. KIPCO had reached a preliminary agreement to merge by amalgamation with QPIC in March. (Zawya)Bahrain  Bareeq Al Retaj unveils key sustainable community project in Bahrain Bahraini real estate developer Bareeq Al Retaj has announced the launch of its pioneering sustainable community on the kingdom's eastern coast. Located close to a local heritage village and Aquaculture Centre, the new development Ras Hayan Village will boast waterfront villas and apartments, leisure, hospitality and retail space as well as a stunning marina, all set amidst a natural mangrove forest. Ras Hayan is unique in its organically conscious zoning and master-planning of residential, leisure and natural spaces, holistically integrated into the natural environment, said the Bahraini real estate developer at the unveiling of the project at the debut Cityscape Bahrain. Many of the residences provide calm canal aspects, with the Northern most canal opening onto a qnbfs.com
  10. Daily Market Report Thursday , 24 November 2022 natural mangrove forest whose biodiversity is being preserved and enhanced, it stated. Announcing the project, Dr Maher Al Shaer, Managing Director and Vice Chairman of Bareeq Al Retaj, said: "Ras Hayan area is of great importance to the heritage of Bahrain, and we want to allow people to live amongst its natural ecosystems. Saving and enhancing the inter-tidal wetlands has been a priority for us, and we plan to expand the existing mangroves and build an observatory for residents." "In Ras Hayan you will find a distinct relaxed village dimension, avoiding the large one-size-fits-all feeling of some larger projects and focusing on creating community through clever and organic master planning," stated Al Shaer. Bareeq Al Retaj said Ras Hayan Village was one of the four pioneering projects being brought to life on its 150 sq m stand during the three-day expo. A special team will be on hand to cater to all potential buyers. Ras Hayan’s residential offerings incorporate a limited number of waterfront and canal villas with larger-than-average plot sizes, and inland meandering neighborhoods where streets are verdant, and residents can connect with their natural environment. (Zawya)  Crown Prince and Prime Minister launches Cityscape Bahrain 2022 - His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, launched the first edition of Cityscape Bahrain 2022, at Exhibition World Bahrain in Sakhir. HRH Prince Salman highlighted that the kingdom’s real estate sector continues to grow and attract investments in parallel with the launch of major development projects, which reflects the robust cross-sector development in Bahrain. A broad range of exhibitors will be participating in Cityscape Bahrain 2022 and showcasing dozens of large real estate projects comprised of 10,000 properties. (Zawya) qnbfs.com
  11. Daily Market Report Thursday , 24 November 2022 Rebased Performance Daily Index Performance 180.0 2.0% 0.3% 136.3 Oct-19 QSE Index Oct-20 S&P Pan Arab Oct-21 Oct-22 S&P GCC Source: Bloomberg Dubai 60.0 Oct-18 (2.0%) Abu Dhabi 80.0 (0.1%) (0.2%) Oman 121.5. 8 100.0 Bahrain 120.0 1.4% 0.0% 0.0% Kuwait 128.5 Saudi Arabia 140.0 0.9% 0.6% Qatar 160.0 Source: Bloomberg Asset/Currency Performance Close ($) 1D% WTD% YTD% Gold/Ounce 1,749.68 0.5 (0.1) (4.3) Silver/Ounce 21.54 2.1 2.8 (7.6) Crude Oil (Brent)/Barrel (FM Future) 85.41 (3.3) (2.5) 9.8 Crude Oil (WTI)/Barrel (FM Future) 77.94 (3.7) (2.7) 3.6 6.17 0.0 1.0 69.0 LPG Propane (Arab Gulf)/Ton 81.50 (1.7) (4.0) (27.4) LPG Butane (Arab Gulf)/Ton 97.50 (0.8) 0.5 (30.0) 1.04 0.9 0.7 (8.6) Yen 139.60 (1.2) (0.5) 21.3 GBP 1.21 1.4 1.4 (10.9) CHF 1.06 1.0 1.3 (3.2) AUD 0.67 1.3 0.9 (7.3) USD Index 106.08 (1.1) (0.8) 10.9 RUB 118.69 0.0 0.0 58.9 BRL 0.19 0.2 0.5 4.1 Natural Gas (Henry Hub)/MMBtu Euro Source: Bloomberg Global Indices Performance Close 1D%* WTD%* YTD%* 2,697.39 0.8 1.4 (16.5) 34,194.06 0.3 1.3 (5.9) 4,027.26 0.6 1.6 (15.5) 11,285.32 1.0 1.2 (27.9) 438.82 1.3 1.6 (18.1) 14,427.59 0.7 0.3 (16.8) FTSE 100 7,465.24 1.4 2.4 (10.1) CAC 40 6,679.09 1.0 0.8 (15.0) Nikkei 28,115.74 0.0 0.1 (20.4) 932.30 0.5 (1.1) (24.3) 3,096.91 (0.0) (0.6) (24.5) HANG SENG 17,523.81 0.5 (2.6) (25.3) BSE SENSEX 61,510.58 0.1 (0.4) (3.8) 108,841.15 (0.6) (0.8) 7.2 1,147.43 0.4 0.0 (28.1) MSCI World Index DJ Industrial S&P 500 NASDAQ 100 STOXX 600 DAX MSCI EM SHANGHAI SE Composite Bovespa RTS Source: Bloomberg (*$ adjusted returns) qnbfs.com
  12. Daily Market Report Thursday , 24 November 2022 Contacts QNB Financial Services Co. W.L.L. Contact Center: (+974) 4476 6666 info@qnbfs.com.qa Doha, Qatar Saugata Sarkar, CFA, CAIA Head of Research saugata.sarkar@qnbfs.com.qa Shahan Keushgerian Senior Research Analyst shahan.keushgerian@qnbfs.com.qa Phibion Makuwerere, CFA Senior Research Analyst phibion.makuwerere@qnbfs.com.qa Roy Thomas Senior Research Analyst roy.thomas@qnb.com 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. qnbfs.com