Qatar - Market Review And Outlook - 13 April

Transcription

1. ` QSE Index and Volume Regional Indices Qatar (QSE)* Dubai Abu Dhabi Saudi Arabia# Kuwait Oman Bahrain Close WTD% MTD% YTD% 10,451.47 3,509.34 4,518.14 7,099.13 7,007.89 5,571.62 1,356.22 (0.0) (1.6) (2.1) 0.3 (0.3) (0.7) 0.2 0.6 0.8 1.7 1.4 (0.3) 0.4 0.0 0.1 (0.6) (0.6) (1.5) 21.9 (3.7) 11.1 6,000,000 10,411.77 10,360 0 9-Apr 10-Apr 11-Apr 12-Apr Volume Market Indicators Value Traded (QR mn) Exch. Market Cap. (QR mn) QSE Index Week ended Apr 13 , 2017 1,090.2 Week ended Apr 06 , 2017 1,235.6 561,458.3 560,511.9 0.2 38.8 40.5 (4.3) 14,267 15,354 (7.1) 44 43 2.3 12:31 20:21 – Volume (mn) Number of Transactions Companies Traded Market Breadth Market Indices Total Return ALL Share Index Banks and Financial Services Industrials Transportation Real Estate Insurance Telecoms Consumer Goods & Services Al Rayan Islamic Index Market Indices Weekly Index Performance 1.0% 0.3% 13-Apr Close 17,431.97 2,955.91 3,064.80 3,309.04 2,302.72 2,388.44 4,281.20 1,274.84 6,430.76 4,172.96 WTD% (0.0) (0.0) 0.2 0.1 (0.2) (0.7) (1.1) 1.2 0.5 (0.2) MTD% 1.2 1.1 1.8 0.3 (1.1) 0.1 0.0 7.4 0.1 1.3 Chg. % (11.8) YTD% 3.2 3.0 5.2 0.1 (9.6) 6.4 (3.5) 5.7 9.0 7.5 0.2% 0.0% (0.7%) (2.0%) (1.6%) (3.0%) Weekly Exchange Traded Value ($ mn) 397.24 403.84 216.00 4,033.17 449.96 35.95 25.80 Exchange Mkt. Cap. ($ mn) 154,176.4 107,399.3# 119,589.1 444,495.5 95,261.9 22,270.0 21,709.6 TTM P/E** 15.5 14.9 17.8 17.3 22.4 11.3 8.9 (2.1%) Abu Dhabi (0.0%) (0.3%) (1.0%) Dubai Foreign institutions remained bullish with net buying of QR28.1mn vs. net buying of QR57.5mn in the prior week. Qatari institutions remained bullish with net buying of QR8.6mn vs. net buying of QR19.7mn the week before. Foreign retail investors remained bearish with net selling of QR16.9mn vs. net selling of QR9.3mn in the prior week. Qatari retail investors remained bearish with net selling of QR19.7mn vs. net selling of QR67.8mn the week before. In 2017 YTD, foreign institutions bought (on a net basis) ~$799mn worth of equities. 10,451.47 10,440 Oman Trading volume decreased by 4.33% to reach 38.9mn shares versus 40.54mn shares in the prior week. The number of transactions decreased by 7.08% to reach 14,267 transactions versus 15,354 transactions in the prior week. The Banks and Financial Services sector led the trading volume, accounting for 31.61%, followed by the Real Estate sector, which accounted for 26.89% of the overall trading volume. Vodafone Qatar (VFQS) was the top volume traded stock during the week with total traded volume of 10.0mn shares. 10,489.28 10,485.04 Kuwait Trading value during the week decreased by 11.77% to reach QR1.09bn versus QR1.24bn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 41.29% of the total trading value. The Real Estate sector was the second biggest contributor to the overall trading value, accounting for 18.75% of the total trading value. MARK was the top value traded stock during the week with total traded value of QR139.9 million (mn). 12,000,000 10,509.88 Qatar (QSE)* Barwa Real Estate (BRES), Qatar Insurance Co. (QATI) and United Development Company (UDCD) were the primary contributors to the weekly index decline. BRES was the biggest contributor to the index’s weekly decline, erasing 7.7 points from the index. QATI was the second biggest contributor to the decline, deleting 7.3 points from the index. Moreover, UDCD erased 5.1 points from the index. On the other hand, QNB Group (QNBK) added 10.7 points. 10,520 Bahrain The Qatar Stock Exchange (QSE) Index declined 4.54 points, or 0.04% during the trading week to close at 10,451.47. Market capitalization increased by 0.17% to QR561.5 billion (bn) versus QR560.5bn at the end of the previous week. Of the 44 listed companies, 12 companies ended the week higher, while 31 fell and 1 remained unchanged. Qatar Cinema & Film Distribution Co. (QCFS) was the best performing stock for the week with a gain of 10.0% on only 10 shares traded. On the other hand, Qatar German Co. for Medical Devices (QGMD) was the worst performing stock with a decline of 4.0% on 100,886 shares traded. Saudi Arabia Market Review and Outlook P/B** Dividend Yield 1.5 1.3 1.3 1.6 1.3 1.1 0.8 3.5 3.9 4.5 3.2 3.4 5.3 5.8 # Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; Data as of April 12, 2017) Page 1 of 8
2. News Economic & Corporate News  QNBK’s net profit rises 12% YoY in 1Q2017 to QR3.2bn – QNB Group (QNBK) reported 12% YoY increase in its 1Q2017 net profit to QR3.2bn, primarily driven by 34% YoY growth in its operating income to QR5.4bn. Net interest income increased by 27% YoY to reach QR4.2bn, with net fee & commission income and net gain from foreign exchange reaching QR0.9bn and QR0.2bn, respectively. The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 28.9%, which is considered one of the best ratios among financial institutions in the region. EPS increased to QR3.5 in 1Q2017 as compared to QR 3.1 in 1Q2016. Total assets increased by 35% YoY to reach QR743bn at the end of March 31, 2017. The growth in total assets was driven by growth of 33% YoY in loans & advances to QR536bn. The Group was able to maintain the ratio of non-performing loans to gross loans at 1.8%. The Group’s conservative policy in regard to provisioning continued with the coverage ratio maintained at 114% as at March 31, 2017. QNBK was successful in attracting new customer deposits to comply with the cap on loans to deposit ratio of 100% set by Qatar Central Bank, which is effective from 2017-end. These deposit mobilization efforts resulted in increased customer funding by 34% YoY to reach QR541bn. This led to the Group’s loan to deposit ratio reaching 99%. Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 15.7% as at March 31, 2017, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. Total Equity increased by 17% YoY to reach QR71bn as at March 31, 2017. In March 2017, QNBK launched its operations in Saudi Arabia’s capital, Riyadh. (QNB Group Press Release)  IMF calls for QCB rethink on 100% loan-to-deposit ratio requirement – The International Monetary Fund (IMF) has suggested that Qatar Central Bank (QCB) consider “suspending or postponing” the implementation of the new loan-to-deposit ratio requirement, which is to become effective from the end of this year. Although progress has been made in implementing Basel III and related regulation, including liquidity ratios, counter-cyclical buffers and buffers for domestic systemically important banks, the new loan-to-deposit requirement, to be set at 100% by 2017-end, is “being questioned” by some banks, which are pushing to change the formula to include long-term wholesale funds in the denominator, the IMF said in its Article IV consultation report. This view from the IMF comes in the wake of Qatar contemplating a new 2017-22 strategic financial plan and is in the process of identifying new priorities. Emphasizing that the introduction of liquidity tools should avoid creating pro-cyclical effects, the IMF said “if the liquidity conditions become tighter for cyclical reasons, consideration should be given to suspending or postponing the implementation of the new loan-to deposit ratio requirement.” As per the financial soundness indicator (FSI) data, loan-todeposit ratio reached a new high of 114.9% (in September 2016) due to tightness in deposit mobilization. The report also said Qatar’s banking sector is “sound but could face risks from sustained low oil prices and increasing interest rates.” (GulfTimes.com)  IMF: Developing risk-free yield curve and elongating T-bonds maturity may help private debt market in Qatar – According to the International Monetary Fund (IMF), developing a risk-free yield curve and elongating treasury bonds’ (T-bonds) maturity beyond 10 years could go a long way in pricing the other financial instruments, thus helping establish a private debt market in Qatar. “The establishment of a private debt market needs to be supported by the development of a risk-free yield curve. Further progressive extension of maturities to cover the 9-months-3-year gap and lengthen maturities of bonds beyond 10-years could be considered,” IMF said in its Article IV consultation report on Qatar. This, according to it, would help in the pricing of other financial instruments. Qatar concurred with the IMF that further efforts are needed to strengthen the market infrastructure and, in particular, develop a domestic corporate debt market. Stressing that developing the local currency debt market is a key policy priority for Qatar, it said further development could help reduce the country’s reliance on foreign funding as it advances the diversification agenda and prepares for the FIFA 2022 World Cup. (Gulf-Times.com)  IMF: Qatar public debt seen at 48% of 2016 GDP remains manageable – Qatar’s public debt, which is projected at nearly 48% of GDP at 2016-end remains manageable, given the estimated size of the sovereign wealth fund, the International Monetary Fund (IMF) said in its recent country report. According to the IMF, Qatar government borrowing was “being increasingly used to finance the budget.” The authorities have been financing the 2016 fiscal deficit mainly through domestic and foreign borrowing, without drawing down their sovereign wealth fund. In 2016, Qatar raised a total of $14.5bn of external debt and issued $2.6bn of domestic bonds and Sukuk, the IMF noted. The report noted that fiscal policy measures have been implemented in Qatar to “adjust to the new environment of sustained lower energy prices.” The oil price shock has adversely affected the overall fiscal balance, it said. The central government surplus fell from 12.3% of GDP in 2014 to 1.2% in 2015. (Gulf-Times.com)  Qatar hospitality industry witnesses higher occupancy in February – Qatar’s hospitality industry witnessed higher occupancy but average room rates declined, resulting in a marginal improvement in hotel rooms’ yield (in dollar terms) in February this year against that in the previous year period, according to Ernst and Young (EY). Doha hotel rooms’ yield (revenue per available room) rose by 0.4% YoY to $138 despite a 6.4% jump in occupancy to 72.8% even as average room rate declined 8.4% to $189 in February 2017, EY said in its Middle East Hotel Benchmark Survey. However, a faster decline in average room rates led Qatar’s hospitality sector witness a double-digit decline YoY in its hotel rooms’ yield (in dollar terms) during the first two months of this year, it said. Doha hotels’ rooms yield plunged 10.3% to $129 during JanuaryFebruary 2017 on 9.6% decrease in average room rate to $187 and a marginal 0.5% fall in occupancy to 68.9%, it said. (GulfTimes.com) Page 2 of 8
3.  QNB Group emerges as most valuable brand in Qatar while strengthening position in Asia and Africa – QNB Group has emerged as Qatar’s most valuable brand and found its prestigious position among the top 50 brands in the Middle East. As a country, Qatar ranked third in terms of number of brands and total brand value, more than double of Kuwait, according to a valuation by Brand Finance. Brand Finance is the world’s leading brand valuation and strategy consultancy, with offices in over 15 countries. In the corporate brand battle, QNB Group brand value is up 56% to $3.8bn. (Peninsula Qatar)  IMF: VAT at 5% could help Qatar get 1.5% points revenue of non-hydrocarbon GDP a year – Revenue from value-added tax (VAT) at a rate of 5% could help Qatar generate additional revenue of about 1.5 percentage points of non-hydrocarbon GDP a year, an International Monetary Fund (IMF) estimate showed. In its ‘Qatar Country Report’, the International Monetary Fund (IMF) said the GCC agreement on the introduction of VAT in 2018 was a welcome development. “Qatar has started to take actions to ensure its smooth and timely implementation. These include establishing a separate and independent tax authority, and recruiting experts to help with the design and implementation of the VAT,” the IMF noted. According to the IMF, the Qatari authorities also plan to implement excises on tobacco and sugary drinks, starting in 2017 in line with a GCC-wide agreement. This measure is estimated to yield about 0.2% of non-hydrocarbon GDP in revenue. On the expenditure side, controlling public service benefits and spending on goods & services, while preserving key public investment projects, would contribute to reducing total public spending by 13 percentage points of nonhydrocarbon GDP by 2021, with some impact on growth, the report said. (Gulf-Times.com)  IMF hails Qatar’s move to adjust to lower oil prices – Qatar, which accounts for one-third of global liquefied natural gas trade, is well positioned to mitigate the macroeconomic challenges from sustained lower hydrocarbon prices, given its substantial financial buffers, with real economic growth expected to be 3.4% this year, according to the International Monetary Fund (IMF). It also found more room for broadening the tax base, particularly corporate income tax, over the medium term, as well as for further hikes in domestic fuel prices, as Qatar’s fuel and gas prices remain low against global prices. Welcoming Qatar’s responsiveness to adjust to lower energy prices, it asked the Gulf country to sustain its sound policies, which would help strengthen the fiscal position, maintain financial stability, and promote more diversified and sustainable growth. Nevertheless, growth is expected to moderate in the medium term, as public investment growth tapers off and hydrocarbon output continues to slow down, IMF said, adding real GDP growth is projected at 3.4% for 2017, reflecting still significant expansion in the non-hydrocarbons on public investments and supported by the added output from the new Barzan gas project. (Gulf-Times.com)  QNB Group: Qatar banking assets jump 14.2% YoY to QR1.27tn in February – Total assets of Qatar’s banks grew to QR1.27tn in February, 14.2% YoY compared to 12.8% in January, a recent report by QNB Group showed. Domestic assets grew 12.1% YoY in February, from 12.8% the previous month, driven largely by growth in domestic credit, QNB Group Economics said in its latest ‘Qatar Monthly Monitor’. Bank deposits grew 19.8% YoY in February from 14.8% growth in January. The share of non-resident deposits to total deposits moderated to 25.8% from 27.1% the previous month, QNB Group said. Private sector deposit growth jumped to 10.6% YoY from 2.8%, while the contraction in public sector deposits eased to -4.1% from -13.3%. Non-resident deposits grew 101.4% as the banking sector continued to source foreign funds, the report said. Loan growth accelerated to 13.3% YoY in February from 12.1% in January. Loans to the public sector (41% of total domestic credit) drove the headline, with growth of 26.5% in February. Private sector loans grew by 7%, while foreign credit grew by 6.5%. (Gulf-Times.com)  Transport, clothing lifts Qatar CPI inflation in March – Increased expenses towards transportation and clothing pushed up Qatar’s cost of living, based on consumer price index (CPI), MoM in March this year, according to official estimates. The CPI inflation rose 0.9% YoY, mainly on costlier transport, education, furniture and miscellaneous goods & services, said the figures released by the Ministry of Development Planning and Statistics. The International Monetary Fund recently said during 2017-18, subsidy cuts, increase in public fees, a moderate recovery in global commodity prices and the implementation of a value added tax are expected to moderate Qatar’s inflation over the medium term. The transport sector, which has a 14.59% weight, saw its group index expand 1.5% this March against February 2017 level, but a huge 8% rise on a yearly basis. The sector has the direct linkage to the dismantling of the administered prices in petrol and diesel. The recreation and culture group, which has a 12.68% weight in the CPI basket, saw its index gain 0.7% MoM in March 2017, but reported a 1.6% rise on a yearly basis. The clothing and footwear segment, which carries a 5.11% weight, witnessed a 0.4% rise on a monthly basis and 0.2% rise on yearly basis in March. (Gulf-Times.com)  Qatar’s non-oil exports at QR1.71bn in February – The value of non-oil exports in February 2017 has increased by 22.1% to QR1.71bn compared to QR1.4bn in the previous month. The value of non-oil exports are up 31.5% compared to same month in 2016, said Qatar Chamber in its report on the foreign trade. Around 60.1% of the non-oil exports were received by the GCC countries (estimated to be QR1bn), whereas the rest of exports were distributed to 51 countries worldwide, noted the report. Saudi Arabia, Oman, Egypt, Turkey and India are main importers of Qatari products. The statement said that number of certificates of origin issued in February was 4,658 certificates which confirm the strong trade movement of local companies that keep pace with Qatar economy. (Peninsula Qatar)  Qatar's nominal GDP expands on investments – Qatar’s quarterly nominal GDP expanded by 4.1% YoY to $40.4bn in 4Q2016, while 3Q2016 GDP was revised upwards to $38.8bn from $38.6bn previously. Investment was the biggest contributor to GDP, with 11.8% YoY growth and an expanded share of 44.9% from 41.0% a year ago. According to QNB Group analysts, the country’s net exports continued to fall on a YoY basis, although at a slowing pace; net exports fell 42.1% in 4Q2016 compared to 71.4% in 3Q2016; government and private consumption grew by 7.1% and 8.1%, respectively. The nonPage 3 of 8
4. hydrocarbon sector drove real GDP growth in 4Q2016 . The real GDP growth slowed to 1.7% YoY in 4Q2016 while 3Q2016 real GDP was revised upwards to 3.9% from 3.7% previously. Growth in the non-hydrocarbon sector picked up to 5.9%, while 3Q2016 GDP was revised upwards to 5.3% from 4.7%. Construction was the fastest growing sector in 4Q2016, with growth at 17.3%. The hydrocarbon sector contracted by 2.5% in 4Q2016, following an expansion of 2.6% in 3Q2016. (Peninsula Qatar)  QNB Group: Qatar growth set to strengthen in 2017 on nonhydrocarbons – Driven by a stronger non-hydrocarbon sector growth due to higher oil prices, an increase in capital spending and fading drag from manufacturing, Qatar’s growth is expected to pick up this year, QNB Group said in a report. The country’s real GDP growth was 1.7% in 4Q2016 and 2.2% for 2016 as a whole, moderating from an annual growth of 3.6% in 2015, figures released recently by the Ministry of Development Planning and Statistics (MDPS) showed. The hydrocarbon sector contracted by 1% in 2016, QNB Group said in an economic commentary and noted this was due to declines in both crude oil and natural gas production. Crude oil production, which accounts for around 15% of the hydrocarbon sector, fell by 0.7% in the year owing to maturing oil fields. Natural gas and related liquids production - the remaining 85% of the hydrocarbon sector - declined likely as a result of maintenance carried out on some of Qatar’s liquefied natural gas trains during the year. (Gulf-Times.com)  BMI: Qatar and GCC well-placed to lure pharmaceutical investment – Qatar and the other Gulf Cooperation Council (GCC) countries remain well-placed to attract pharmaceutical investment, BMI Research said in a new report. The GCC countries offer the most significant commercial opportunities for drug makers, it said. Despite suffering from a host of economic and political fragilities, the overall outlook is a favorable one, with the Gulf States well-positioned within the wider Middle East and Africa region. It is vital that pharmaceutical companies identify those markets with high growth potential as well as the levels of risk involved. GCC pharmaceutical markets will continue to present sizeable opportunities to drug makers operating in the wider Middle East and Africa (MEA) region, the report said. While economic and political turmoil remains widespread throughout the MEA region, the GCC boasts of a number of strategic advantages that will continue to arouse significant multinational interest. Broadly, the GCC has a more attractive pharmaceutical profile than the MEA region with drug approvals tending to be quicker in these countries. (Gulf-Times.com) companies. The covered companies represent 72% of the total market capitalization. (Peninsula Qatar)  QFBQ launches second phase of cost rationalization plan– Qatar First Bank (QFBQ) in its Annual General Meeting (AGM) discussed the bank’s results and future outlook after releasing financials for the year ended December 31, 2016 and announced the launch of the second phase of the cost rationalization plan. QFBQ’s board of directors, chaired by Chairman Abdulla bin Fahad bin Ghorab al-Marri, along with shareholders and attendees of the AGM, discussed and approved, the bank’s audited financial results and the performance of the eight full year of operation, and QFBQ’s first year as a listed entity on the Qatar Stock Exchange (QSE). (Gulf-Times.com)  Private sector deposits increased to QR361.9bn – The government and public sector institutions’ deposits in the banks have increased by QR26.6bn to reach QR195.8bn. While the government deposits have reached the level of QR67.bn, the deposits of government institutions have touched QR96.6bn. The semi-government institutions’ deposits rose to QR32.1bn, the Group Securities noted in its detailed reading of the banks’ consolidated balance sheet issued by the Qatar Central Bank (QCB) for the month February. Meanwhile, government and the public sector's total loans increased by QR18.1bn to QR318.9bn. The government loans rose to QR165.5bn, up by QR17.8bn in the previous month. Government institutions’ loan reached QR140.1bn with an increase of QR0.3bn and the loans availed by the semigovernmental institutions remained to the January levels of QR13.3bn, with no change. QCB data showed the balance of Qatar Government bonds and bills with banks settled at the level of QR118bn with no change. The total domestic public debt (government, government institutions, quasigovernmental institutions, bills and bonds) increased QR18.1bn to reach the level of QR436.9bn. Qatar banks’ assets (and liabilities) increased to QR1.26tn, up by QR2.5bn from the end of January. Bank’s total deposits at Qatar Central Bank declined by QR1.5bn in February to reach QR44.3bn.The breakdown shows QR35bn as the obligatory reserve balance. This reserve is set by QCB at the rate of 4.75% of the total customers' deposits at each bank. The obligatory reserve is deposited permanently and with no interest. QR9.39bn is banks’ free balances at QCB. The total domestic private sector deposits at local banks, by the end of February, increased by QR5bn to QR361.9bn, in addition to deposits worth QR10.7bn by non-banking financial institutions. (Peninsula Qatar)  Industries Qatar’s earnings to increase by 32% in 1Q2017 – Supported by higher steel and chemical prices, Industries Qatar’s earnings is projected to improve by 32% YoY in 1Q2017, at an estimated median of QR919mn. The earnings of QNB Group, QIIK, QIBK and Qatar Electricity & Water Company are also estimated to increase on YoY for 1Q2017, a consensus earnings estimate by SICO Investment Bank has noted. The SICO analysts who covered a total of 155 listed companies in the GCC, including 13 Qatari companies, said the region’s earnings are estimated to increase 5% YoY and 22% on QoQ basis, led by positive expectations on most GCC Page 4 of 8
5. Qatar Stock Exchange Top Gainers Top Decliners 12 .0% 0.0% 10.0% 8.0% -2.0% -2.4% -2.8% 3.6% 4.0% 2.6% 1.5% 1.0% -4.0% -3.8% -4.0% -3.7% 0.0% Qatar Cinema & Medicare Group Film Distribution Al Ahli Bank Ooredoo Qatar National Cement -6.0% Qatar German Co. Commercial Bank of National Leasing for Medical Devices Qatar Al Khaleej Takaful Insurance Qatar Islamic Insurance Source: Qatar Stock Exchange (QSE) Source: Qatar Stock Exchange (QSE) Most Active Shares by Value (QR Million) 150.0 Most Active Shares by Volume (Million) 139.9 12.0 10.0 120.4 94.3 100.0 8.0 79.8 74.4 5.0 4.0 50.0 3.3 2.8 2.8 0.0 0.0 Masraf Al Rayan QNB Group Vodafone Qatar Ezdan Real Estate Source: Qatar Stock Exchange (QSE) 24.35% 21.77% 80% 9.49% 11.05% 60% 25.11% 24.33% Masraf Al Rayan National Leasing Mazaya Qatar 41.05% 42.86% Net Traded Value by Nationality (QR Million) 11 Non-Qatari 358 369 40% 20% Ezdan Real Estate Source: Qatar Stock Exchange (QSE) Investor Trading Percentage to Total Value Traded 100% Vodafone Qatar Barwa Real Estate (11) Qatari 732 721 0% Buy Sell Qatari Individuals Qatari Institutions Non-Qatari Individuals Non-Qatari Institutions Source: Qatar Stock Exchange (QSE) (200) - 200 Net Investment 400 Total Sold 600 800 Total Bought Source: Qatar Stock Exchange (QSE) Page 5 of 8
6. TECHNICAL ANALYSIS OF THE QSE INDEX Source : Bloomberg The Index closed another week flat but managed and lost only 4.54 points; Index reached 10,451.47. Nothing has changed since last week’s report which means that indecision remains. Support level remains at 10,300, and resistance level at the 11,500 level. DEFINITIONS OF KEY TERMS USED IN TECHNICAL ANALYSIS RSI (Relative Strength Index) indicator – RSI is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between 0 to 100. The index is deemed to be overbought once the RSI approaches the 70 level, indicating that a correction is likely. On the other hand, if the RSI approaches 30, it is an indication that the index may be getting oversold and therefore likely to bounce back. MACD (Moving Average Convergence Divergence) indicator – The indicator consists of the MACD line and a signal line. The divergence or the convergence of the MACD line with the signal line indicates the strength in the momentum during the uptrend or downtrend, as the case may be. When the MACD crosses the signal line from below and trades above it, it gives a positive indication. The reverse is the situation for a bearish trend. Candlestick chart – A candlestick chart is a price chart that displays the high, low, open, and close for a security. The ‘body’ of the chart is portion between the open and close price, while the high and low intraday movements form the ‘shadow’. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis. Doji candlestick pattern – A Doji candlestick is formed when a security's open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal. Shooting Star/Inverted Hammer candlestick patterns – These candlestick patterns have a small real body (open price and close price are near to each other), and a long upper shadow (large intraday movement on the upside). The Shooting Star is a bearish reversal pattern that forms after a rally. The Inverted Hammer looks exactly like a Shooting Star, but forms after a downtrend. Inverted Hammers represent a potential bullish trend reversal. Page 6 of 8
7. Com pany Nam e Price April 13 % Change WTD % Change YTD Market Cap. QR Million TTM P/E P/B Div. Yield Qatar National Bank 149.50 0.67 0.95 138,085 11.1 2.3 Qatar Islamic Bank 101.80 (0.29) (2.02) 24,055 11.8 1.7 4.7 Commercial Bank of Qatar 32.00 1.05 3.38 12,951 40.8 0.7 N/A Doha Bank 30.10 (1.15) (10.68) 7,777 9.7 0.9 9.6 Al Ahli Bank 34.95 2.64 (5.90) 7,002 11.1 1.6 2.7 Qatar International Islamic Bank 64.00 (1.69) 1.91 9,688 12.3 1.5 6.3 Masraf Al Rayan 42.50 (0.12) 13.03 31,875 15.4 2.5 4.7 Al Khalij Commercial Bank 14.41 (1.37) (15.24) 5,188 12.2 0.7 5.2 Qatar First Bank 8.48 (1.40) (17.67) 1,696 N/A 0.9 N/A National Leasing 18.00 (3.74) 17.49 891 176.7 0.9 2.8 Dlala Holding 22.11 (1.91) 2.89 628 160.9 2.4 N/A Qatar & Oman Investment 2.1 9.66 (0.41) (2.91) 304 22.8 1.0 5.2 Islamic Holding Group Banking and Financial Services 66.60 (0.60) 9.18 377 91.0 2.6 1.5 Zad Holding 88.90 (1.11) (0.34) 1,163 11.4 1.3 4.5 9.55 (4.02) (5.45) 110 N/A 1.5 N/A Qatar German Co. for Medical Devices Salam International Investment 240,516 10.52 (0.28) (4.80) 1,203 10.5 0.7 7.6 101.50 3.57 61.37 2,857 43.9 2.8 1.8 33.00 10.00 20.22 207 48.5 1.5 3.0 135.60 0.67 1.65 13,482 15.3 1.9 4.7 Widam Food Co. 63.80 (0.93) (6.18) 1,148 N/A 3.8 5.5 Mannai Corp. 79.40 (0.63) (0.75) 3,622 6.8 1.4 5.0 165.10 (1.02) (5.93) 3,302 16.6 2.4 5.5 Medicare Group Qatar Cinema & Film Distribution Qatar Fuel Al Meera Consumer Goods Consum er Goods and Services 27,094 Qatar Industrial Manufacturing 45.20 (0.44) 1.57 2,148 11.1 1.4 6.6 Qatar National Cement 80.00 1.01 2.33 5,228 11.0 1.7 4.5 111.40 0.63 (5.19) 67,397 22.8 2.0 3.6 61.30 (0.16) 4.79 7,621 27.5 3.0 1.6 217.00 0.56 (4.41) 23,870 15.5 2.9 3.5 Aamal 14.41 (1.30) 5.72 9,078 19.5 1.1 N/A Gulf International Services 27.75 (1.42) (10.77) 5,157 78.1 1.4 3.6 Mesaieed Petrochemical Holding Industrials 14.87 (0.20) (5.89) 18,681 18.8 1.3 4.0 Qatar Insurance Doha Insurance 70.60 (1.12) (4.26) 19,578 17.6 2.4 1.8 16.42 (1.97) (9.78) 821 11.4 0.8 3.7 Qatar General Insurance & Reinsurance 39.10 0.00 (16.81) 3,422 15.6 0.5 3.8 Al Khaleej Takaful Insurance 20.00 (2.77) (5.21) 511 39.0 0.9 3.0 Qatar Islamic Insurance Insurance 61.10 (2.40) 20.75 917 14.4 2.7 5.7 United Development 19.85 (2.17) (3.87) 7,029 11.3 0.6 6.3 Barw a Real Estate 36.00 (1.64) 8.27 14,008 8.7 0.8 6.9 Ezdan Real Estate 15.79 (0.06) 4.50 41,883 23.0 1.4 3.2 Mazaya Qatar Real Estate Development Real Estate 14.00 (1.48) (2.71) 1,544 20.7 1.1 N/A Industries Qatar Qatari Investors Group Qatar Electricity and Water Ooredoo 139,181 25,248 64,464 105.00 1.45 3.14 33,634 15.4 1.5 3.3 9.44 0.21 0.75 7,981 N/A 1.7 N/A Qatar Navigation (Milaha) 75.00 0.54 (21.55) 8,589 12.0 0.6 4.7 Gulf Warehousing Qatar Gas Transport (Nakilat) 53.10 0.76 (5.18) 3,112 14.9 2.0 3.0 21.01 (0.90) (9.01) 11,640 12.2 2.2 4.8 Vodafone Qatar Telecom s Transportation Qatar Exchange 41,614 23,341 561,458 Source: Bloomberg Page 7 of 8
8. Contacts Saugata Sarkar 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 Mohamed Abo Daff QNB Financial Services Co. W.L.L. Senior Research Analyst Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6589 PO Box 24025 mohd.abodaff@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.). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange. Qatar National Bank (Q.P.S.C.) is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. QNBFS accepts no liability whatsoever for any direct or indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of the investor and be based on specifically engaged investment advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. For reports dealing with Technical Analysis, expressed opinions and/or recommendations may be different or contrary to the opinions/recommendations of QNBFS Fundamental Research as a result of depending solely on the historical technical data (price and volume). QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. This report may not be reproduced in whole or in part without permission from QNBFS COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 8 of 8