Qatar: Weekly Market Report - 30 August

Transcription

1. ` QSE Index and Volume Regional Indices Qatar (QSE)* Dubai Abu Dhabi Saudi Arabia# Kuwait Oman Bahrain Close WTD% MTD% YTD% 8,800.56 3,637.55 4,468.41 7,258.64 6,892.10 5,052.55 1,302.46 (1.7) 0.4 (0.6) 0.2 0.1 2.1 0.0 (6.4) 0.1 (2.1) 2.3 0.6 0.6 (1.9) (15.7) 3.0 (1.7) 0.7 19.9 (12.6) 6.7 8,850 5,000,000 8,858.90 8,800.56 8,700 0 27-Aug 28-Aug 29-Aug Volume Market Indicators Value Traded (QR mn) QSE Index Week ended Aug 30 , 2017 622.2 Week ended Aug 24 , 2017 723.7 476,710.5 482,295.6 (1.2) 25.2 34.1 (26.2) 8,360 9,283 (9.9) 43 44 (2.3) 12:31 6:37 – Exch. Market Cap. (QR mn) 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 3.0% 30-Aug Close 14,758.03 2,495.23 2,719.11 2,669.41 1,925.65 1,841.03 3,956.94 1,072.87 5,139.41 3,497.17 WTD% (1.7) (1.2) (1.4) (1.6) 0.6 (0.1) (1.8) (1.3) (2.9) (1.7) MTD% (6.4) (6.9) (5.9) (6.6) (5.2) (11.4) (3.1) (8.9) (7.3) (7.0) Chg. % (14.0) YTD% (12.6) (13.0) (6.6) (19.3) (24.4) (18.0) (10.8) (11.0) (12.9) (9.9) 2.1% 2.0% 0.4% 1.0% 0.2% 0.1% 0.0% 0.0% (1.0%) (0.6%) (2.0%) Weekly Exchange Traded Value ($ mn) 169.94 186.60 84.26 2,620.87 191.99 66.25 7.67 Exchange Mkt. Cap. ($ mn) 130,904.7 102,369.4# 117,268.1 457,436.4 99,321.9 20,736.9 21,405.4 TTM P/E** 15.2 24.1 16.5 17.7 18.2 11.7 7.7 Qatar (QSE)* (1.7%) Abu Dhabi Foreign institutions remained bearish with net selling of QR65.5mn vs. net selling of QR32.0mn in the prior week. Qatari institutions remained bullish with net buying of QR14.9mn vs. net buying of QR38.3mn the week before. Foreign retail investors remained bearish with net selling of QR7.9mn vs. net selling of QR4.3mn in the prior week. Qatari retail investors turned bullish with net buying of QR58.5mn vs. net selling of QR2.0mn the week before. In 2017 YTD, foreign institutions bought (on a net basis) ~$720mn worth of equities. 8,941.01 Bahrain Trading volume decreased by 26.19% to reach 25.19mn shares versus 34.12mn shares in the prior week. The number of transactions decreased by 9.94% to reach 8,360 transactions versus 9,283 transactions in the prior week. The Telecoms sector led the trading volume, accounting for 40.07%, followed by the Banks and Financial Services sector which accounted for 24.05% of the overall trading volume. Vodafone Qatar (VFQS) was the top volume traded stock during the week with 9.96 million (mn) shares. 8,933.52 Kuwait Trading value during the week decreased by 14.03% to reach QR622.2mn versus QR723.7mn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 47.22% of the total trading value. The Industrials sector was the second biggest contributor to the overall trading value, accounting for 17.59% of the total trading value. QNB Group (QNBK) was the top value traded stock during the week with total traded value of QR170.52mn. 10,000,000 Saudi Arabia Masraf Al Rayan (MARK), Qatar Insurance Co. (QATI), and Qatar Islamic Bank (QIBK) were the primary contributors to the weekly index decrease. MARK was the biggest contributor to the index’s weekly decline, deleting 32.46 points from the index. QATI was the second biggest contributor to the decrease, shaving off 18.35 points from the index. Moreover, QIBK erased 16.22 points from the index. Alternatively, Aamal Co. (AHCS) contributed positively to the index, adding 1.05 points to the index. 9,000 Dubai The Qatar Stock Exchange (QSE) Index decreased by 151.26 points, or 1.69% during the trading week to close at 8,800.56 (Sunday through Wednesday due to Eid holidays). Market capitalization decreased by 1.16% to QR476.71 billion (bn) versus QR482.30bn at the end of the previous trading week. Of the 45 listed companies, 12 companies ended the week higher, while 31 declined and 2 remained unchanged. Gulf Warehousing (GWCS) was the best performing stock for the week with a gain of 6.22% on 139,074 shares traded. On the other hand, Mannai Corp. (MCCS) was the worst performing stock for the week with a decline of 8.82% on 13,062 shares traded. Oman Market Review and Outlook P/B** Dividend Yield 1.5 1.3 1.3 1.7 1.2 1.1 0.8 3.9 3.9 4.6 3.3 5.3 5.4 6.0 # Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; Data as of August 29, 2017) Page 1 of 7
2. News Economic & Corporate News  Barwa Bank merger plans in final phase – The merger plans of Barwa Bank are fast progressing. Once the bank completes the legal and financial studies, the report will be submitted before the board of directors and the shareholders, Barwa Bank’s Chief Executive Officer, Khalid Al Subeai said. Speaking on the sidelines of the launch of Barwa Bank’s special edition of ‘Al Mjd’ credit/debit cards’, Al Subeai said the bank is in the final stages of completing its studies. He said after completing the legal and regulatory procedures, the three banks (Barwa Bank, Masraf Al Rayan and International Bank of Qatar) will jointly announce the three-way merger. (Peninsula Qatar)  QSE and Iridium launch third investor relations excellence program – The Qatar Stock Exchange (QSE), in collaboration with Iridium Investor Relations, is launching the IR Excellence Program for the third year since its successful launch in 2015. The QSE has highlighted this as an opportunity for publiclylisted companies to excel, as the IR Excellence Program will once again recognize their achievements and proactive efforts to foster professional investor relations standards. QSE’s Chief Executive Officer, Rashid Bin Ali Al-Mansoori said, “The IR Excellence Program reflects our sincere desire and best intentions to achieve international best practices. We aim to see the QSE’s listed companies committed to improving the flow of information for a more transparent and better-informed market environment. The IR Excellence program recognition is one of the most significant programs in the region, rewarding listed corporates for their investor relations efforts.” (GulfTimes.com)  QCB: Europe accounts for 37% of Qatari banks’ cross border funded liabilities – Qatar’s banking sector depends heavily on Europe on the liability side, as the region accounts for 37% of the cross border funded liabilities, according to a Qatar Central Bank (QCB) report. Around half of the liabilities to foreign financial institutions (9.6% of the total liabilities) are from European banks. In this context, QCB noted that any tightness in the foreign interbank market that arise from uncertainties including Brexit may negatively impact the domestic liquidity position. Banking sector exposure through cross border transactions are geographically diversified to a certain extent, th according to the QCB’s 8 Financial Stability Review. During 2016, both assets and liability exposure to outside Qatar have increased; however, the asset exposures remained within the regulatory caps. Considering the fact that around 49% of the earning assets are with ‘Other MENA’ region and ‘Europe’, vulnerabilities due to geopolitical and economic uncertainties from these region can impact the value of banking sector assets. Nonetheless, the impact will be limited, since these exposures contribute just above 10% of the total assets of the sector. (Gulf-Times.com)  Fitch Ratings cut Qatar’s credit rating to AA-/Negative Outlook – Fitch lowered Qatar’s rating by one notch to ‘AA-’ with a ‘Negative’ outlook. That brought it in line with the other two major rating agencies, Moody's and Standard & Poor's, which assess Qatar at the same level and also have ‘Negative’ outlooks for it. Saudi Arabia, the UAE, Bahrain and Egypt cut ties with Qatar on June 5, accusing it of backing terrorism, which it denies. (Reuters)  QCB takes steps to avoid local banks’ distress or failure – Some five local banks have been identified as Domestic Systemically Important Banks (DSIBs) by Qatar Central Bank (QCB) in its efforts towards increasing their ‘financial strength and withstand onslaught of any external shocks’. Recognizing the fact that the distress of domestic systemically important banks can affect the financial system domestically, a DSIB framework was adopted in 2012. In implementing the framework for DSIBs, QCB sought to achieve the objectives of identifying and designating domestic systemically important banks in Qatar, reducing the probability of failure of these identified DSIBs and reducing the impact of their distress or th failure, QCB said in its 8 Financial Stability Review. The key components of the DSIB framework were assessment methodology, higher loss absorbency capital requirement, capital and recovery plans and increased supervisory scrutiny to achieve the desired objectives. QCB, in line with the Basel Committee on Banking Supervision (BCBS) requirements, adopted an indicator-based methodology to determine systemic importance of banks in Qatar. Banks were assessed on four specific factors such as size, interconnectedness, substitutability and complexity. (Gulf-Times.com)  Qatari banks capable to face any siege impact – Qatar Central Bank’s (QCB) Governor, HE Sheikh Abdullah Bin Saoud Al Thani has stated that the local banks are capable of facing any possible abnormal conditions resulting from the siege imposed on the country. He said the Qatari banking system is strong and efficient as proved by stress tests carried out routinely by QCB. QCB’s Governor said the banks are highly solvent and profitable. The deposits in the bank are in excess of QR39.3bn. Other data on bank liquidity are available to everyone, through the monthly report released by QCB that also includes data on the monetary base. On the decision of credit rating agency, Moody’s to lower the credit rating of Qatari banks, Sheikh Abdullah said that the current geopolitical risks were a big factor in the agency’s decision. QCB believes the agency will amend that change in the very near future. (Peninsula Qatar)  QCB prepares to launch Second Strategic Plan up to 2022 – Qatar Central Bank (QCB) is preparing to launch its Second Strategic Plan for financial sector regulation up to 2022, QCB’s Governor, HE Sheikh Abdullah Bin Saoud Al Thani said. He said the strategy is a result of successful cooperation between three regulatory bodies, the central bank, the Qatar Financial Markets Authority (QFMA), and the Qatar Financial Centre Regulatory Authority. The strategy is also implemented in the context of Qatar National Vision 2030 and the active role the financial and banking sector plays in diversifying the economy and increasing the contribution of the private sector the in Gross Domestic Product. He said the new strategy builds on its predecessor. It also looks to enhance regulatory cooperation between different bodies. That cooperation will include work on the application of international standards in the banking sector, as work will continue on implementing Basel III. (GulfTimes.com) Page 2 of 7
3.  Qatar’s trade surplus jumps 78.1% YoY to QR11.9bn in July – Qatar’s foreign trade balance (which represents the difference between total exports and imports) showed a surplus of QR11.9bn, an increase of about QR5.2bn or 78.1% compared to July 2016, and a decrease by nearly QR0.6bn or 4.8% compared to June 2017. This data was shown in the preliminary report released by the Ministry of Development Planning and Statistics, on the value of exports of domestic goods, reexports, and imports for July 2017. In July 2017, the total exports of goods (including exports of goods of domestic origin and re-exports) amounted to around QR18.1bn, an increase of 11.4% compared to July 2016, and a decrease by 1.2% compared to June 2017. On other hand, imports of goods in July 2017 amounted to around QR6.2bn, showing decrease of 35.0% over July 2016. (Gulf-Times.com)  Qatar’s non-oil exports hit QR1.3bn in July 2017 – Qatar’s nonoil exports increased by 76% to reach QR1.3bn in July 2017 compared to QR793mn over the previous month, the Qatar Chamber said in its latest report. The Chamber’s monthly report on the private sector’s foreign trade also showed that total exports since January 2017 amounted to QR8.9bn. Non-oil exports in July “registered a remarkable increase,” according to the report, which noted that “the value of non-oil exports returned to pre-siege levels in April when it registered QR1.3bn.” In July, a total of 2,571 certificates of origin were issued to 59 countries, including 2,370 general model certificates, 104 Arab certificates of origin, 94 GCC certificates (industrial), and 20 certificates of preference. The report showed Oman continued to top the list of countries receiving Qatari non-oil exports after the siege with total exports worth QR422mn, representing 31% of total exports or a 42% increase compared to QR297mn in June. Qatar Chamber’s DirectorGeneral, Saleh Hamad al-Sharqi said the return of non-oil export levels to its previous value before the economic blockade “proves the success of Qatar’s private sector in overcoming the consequences of the siege.” (Gulf-Times.com) limit domestic liquidity pressures, BMI said. Even in those states where the fiscal deficit is forecast to be relatively small, including Kuwait and the UAE, governments are likely to issue debt, as borrowing costs remain relatively low and as they look to deepen their capital markets. (Gulf-Times.com)  QFC expects QR200bn direct investments in next five years – Qatar Financial Centre’s (QFC) Chief Executive Officer, Yousuf Mohammed Al Jaida said the proposed Qatar Financial Centre Law, which is expected to be issued soon, will be a game changer in the regional financial market. He added the QFC’s new strategic plans will help empower the financial center capable of competing with several regional and international financial centers, including Dubai. The total number of companies in Qatar Financial Centre has reached 410, with direct investment volume estimated at QR75bn. Over the next five years, the volume of direct investments is expected to double to QR200bn. (Peninsula Qatar)  Hamad Port to be officially opened next month – Hamad Port is to be officially inaugurated in the first week of September, under the auspices of His Highness Emir Sheikh Tamim Bin Hamad Al-Thani, the Ministry of Transport and Communications (MoTC) announced. Located in the Umm al Houl area of southern part of Qatar, Hamad port will represent a paradigm shift in Qatar’s economic diversification and competitiveness, in line with the goals of the Qatar National Vision 2030. (Gulf-Times.com)  BMI Research: Qatar’s capital spending to rise sharply in coming quarters – Qatar will record high levels of capital spending over the coming quarters on the back of large-scale government investments into infrastructure development and projects linked to economic diversification, BMI Research mentioned in its recent report. According to the Fitch Group company, capital expenditure will expand across all GCC states except Bahrain over the coming quarters, as governments invest in infrastructure and projects linked to various economic diversification programs. BMI researchers said rising hydrocarbon prices will strengthen fiscal positions across the GCC, where hydrocarbons make up over half of government revenues in all member states. BMI forecasted Brent crude prices to average $54 per barrel in 2017, rising gradually towards $70 in 2022, a substantial increase from the $45.1 level recorded in 2016. All the GCC states are likely to continue to issue debt to help cover their deficits over the years ahead. This includes those states with still-large fiscal buffers, such as Saudi Arabia, Qatar, and Kuwait, which will be reluctant to draw down heavily on reserves; given the negative impact such action would have on investor sentiment and confidence in their currency pegs to the dollar. Most are likely to borrow substantially on the international capital markets, in order to Page 3 of 7
4. Qatar Stock Exchange Top Gainers Top Decliners 0 .0% 9.0% 6.2% 6.0% 6.0% -4.0% -4.2% -5.9% 3.2% 2.9% 3.0% 2.7% -5.1% -5.4% -8.0% -8.8% 0.0% Gulf Warehousing Qatar & Oman Investment Al Khaleej Takaful Insurance Qatar General Insurance & Reinsurance Qatar Islamic Insurance Source: Qatar Stock Exchange (QSE) Mannai Corp. Gulf International Services Islamic Holding Group Dlala Holding Medicare Group Source: Qatar Stock Exchange (QSE) Most Active Shares by Value (QR Million) 180.0 -12.0% Most Active Shares by Volume (Million) 170.5 12.0 10.0 8.0 83.4 90.0 52.3 4.0 45.0 32.5 0.0 QNB Group Vodafone Qatar Industries Qatar Masraf Al Rayan Source: Qatar Stock Exchange (QSE) 24.31% 80% 5.94% 60% 23.86% 1.6 1.5 1.3 United Development Qatar First Bank QNB Group 0.0 Vodafone Qatar Investment Holding group Source: Qatar Stock Exchange (QSE) Investor Trading Percentage to Total Value Traded 100% Doha Bank 2.3 Net Traded Value by Nationality (QR Million) (73) 34.83% Non-Qatari 262 188 7.21% 21.46% 40% 45.89% 20% 73 36.50% Qatari 361 434 0% Buy Sell Qatari Individuals Qatari Institutions Non-Qatari Individuals Non-Qatari Institutions Source: Qatar Stock Exchange (QSE) (100) - 100 Net Investment 200 Total Sold 300 400 500 Total Bought Source: Qatar Stock Exchange (QSE) Page 4 of 7
5. TECHNICAL ANALYSIS OF THE QSE INDEX Source : Bloomberg The Index closed down by 1.69% from the week before and now 8,800.56 but on significantly lower volumes. The Index remained below the 9,000 level and we are looking at the 8,300 level to be our next support, unless the Index manages to go back above the 9,000 level. Our expected resistance remains around the 10,000 mark. 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 5 of 7
6. Com pany Nam e Price August 30 % Change WTD % Change YTD Market Cap. QR Million Qatar National Bank 130.60 (0.31) (11.81) 120,628 Qatar Islamic Bank 93.00 (2.62) (10.49) Commercial Bank of Qatar 29.81 (1.29) (3.69) Doha Bank 30.16 0.03 Al Ahli Bank 30.10 (0.66) Qatar International Islamic Bank 54.70 Masraf Al Rayan Al Khalij Commercial Bank TTM P/E P/B Div. Yield 9.6 1.9 21,975 10.6 1.5 5.1 12,065 285.2 0.7 N/A (10.50) 9,351 9.6 0.9 9.6 (18.96) 6,030 9.4 1.2 3.2 (0.91) (12.90) 8,280 10.3 1.5 7.3 38.15 (3.30) 1.46 28,613 14.0 2.3 5.2 12.02 (1.48) (29.29) 4,327 10.2 0.6 6.2 Qatar First Bank 6.85 (3.52) (33.50) 1,370 N/A 0.8 N/A National Leasing 12.89 (0.08) (15.86) 638 N/A 0.6 3.9 Dlala Holding 16.25 (5.08) (24.38) 462 27.6 1.9 N/A Qatar & Oman Investment 2.4 8.70 5.97 (12.56) 274 24.8 0.9 5.7 Islamic Holding Group Banking and Financial Services 45.31 (5.41) (25.72) 257 66.4 1.9 2.2 Zad Holding 75.00 0.00 (15.92) 981 9.6 1.1 6.0 7.81 (2.38) (22.67) 90 N/A 1.3 N/A Qatar German Co. for Medical Devices Salam International Investment 214,269 8.40 (1.18) (23.98) Medicare Group 69.04 (4.24) 9.76 Qatar Cinema & Film Distribution 25.00 0.00 103.00 Widam Food Co. Mannai Corp. Qatar Fuel Al Meera Consumer Goods Consum er Goods and Services 960 11.4 0.6 9.5 1,943 28.9 2.0 2.6 (8.93) 157 59.6 1.2 4.0 (1.81) (22.79) 10,241 14.3 1.6 6.2 63.10 (0.79) (7.21) 1,136 N/A 3.9 5.5 67.93 (8.82) (15.09) 3,099 6.4 1.1 5.9 150.10 (0.07) (14.47) 3,002 15.1 2.4 6.0 21,609 Qatar Industrial Manufacturing 42.50 (1.85) (4.49) 2,020 9.6 1.3 7.1 Qatar National Cement 67.00 0.90 (14.30) 4,379 11.2 1.5 5.4 Industries Qatar 91.00 (1.62) (22.55) 55,055 21.2 1.7 4.4 Qatari Investors Group 44.79 (2.63) (23.44) 5,569 20.6 2.2 2.2 186.00 (1.85) (18.06) 20,460 13.1 2.5 4.0 Aamal 10.35 0.49 (24.06) 6,521 14.6 0.8 5.8 Gulf International Services 18.39 (5.93) (40.87) 3,418 N/A 0.9 5.4 Mesaieed Petrochemical Holding 12.90 (1.30) (18.35) 16,206 16.6 1.2 4.7 7.46 1.50 N/A 619 N/A 0.7 4.0 Qatar Electricity and Water Invesment Holding Group Industrials 114,246 Qatar Insurance Doha Insurance 66.00 (2.94) (10.50) 18,302 18.9 1.9 2.0 14.20 1.43 (21.98) 710 8.3 0.7 4.2 Qatar General Insurance & Reinsurance 35.00 2.94 (25.53) 3,063 17.7 0.5 4.3 Al Khaleej Takaful Insurance 15.79 3.20 (25.17) 403 27.2 0.8 3.8 Qatar Islamic Insurance Insurance 56.50 2.73 11.66 848 13.3 2.6 6.2 United Development 15.17 (2.69) (26.54) 5,371 9.3 0.5 8.2 Barw a Real Estate 31.69 (2.19) (4.69) 12,331 9.4 0.7 7.9 Ezdan Real Estate 11.24 1.35 (25.61) 29,814 14.5 1.0 4.4 9.90 (1.39) (27.76) 1,146 42.4 0.8 N/A 87.59 (1.03) (13.96) 28,057 15.4 1.3 4.0 8.30 (2.35) (11.42) 7,017 N/A 1.5 N/A Qatar Navigation (Milaha) 63.83 (0.89) (33.23) 7,310 17.0 0.5 5.5 Gulf Warehousing Qatar Gas Transport (Nakilat) 47.80 6.22 (14.64) 2,801 13.4 1.8 3.3 16.99 0.18 (26.42) 9,413 10.9 1.8 5.9 Mazaya Qatar Real Estate Development Real Estate Ooredoo Vodafone Qatar Telecom s Transportation Qatar Exchange 23,326 48,663 35,074 19,524 476,710 Source: Bloomberg Page 6 of 7
7. Contacts Saugata Sarkar , CFA 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 7 of 7