1. Page 1 of 6
QE Intra-Day Movement
Qatar Commentary
The QE index rose 1.0% to close at 12,991.2. Gains were led by the
Transportation and Consumer Goods & Services indices, gaining 1.9% and
1.8%, respectively. Top gainers were Medicare Group and Widam Food Co.,
rising 10.0% and 4.2%, respectively. Among the top losers, Ezdan Holding
Group fell 3.0%, while Ooredoo declined 2.8%.
GCC Commentary
Saudi Arabia: The TASI index rose 1.0% to close at 10,405.8. Gains were led
by the Building & Constr. and Real Estate Dev. indices, rising 2.4% and 2.3%,
respectively. Al Hammadi and Mouwasat Med. Serv. gained 10.0% each.
Dubai: The DFM index gained 1.3% to close at 4,885.2. The Transportation
index gained 2.0%, while the Real Estate & Construction index rose 1.8%. Int.
Financial Advisors rose 9.1%, while National Industries Group was up 7.7%.
Abu Dhabi: The ADX benchmark index fell 0.2% to close at 4,984.3. The Ind.
index declined 1.4%, while Banking index was down 0.5%. Nat. Bank of Umm
Al-Qaiwain declined 9.8%, while Umm Al-Qaiwain Cement was down 8.6%.
Kuwait: The KSE index gained 0.3% to close at 7,144.3. The Consumer Serv.
index rose 1.4%, while Consumer Goods index was up 1.1%. Pearl of Kuwait
Real Estate Co. surged 12.9%, while Gulf Glass Manu. Co. was up 9.4%.
Oman: The MSM index rose 1.4% to close at 7,329.0. Gains were led by the
Financial and Industrial indices, rising 1.5% and 1.0%, respectively. Raysut
Cement gained 5.6%, while Oman & Emirates Inv. Holding was up 3.5%.
Bahrain: The BHB index gained 0.2% to close at 1,475.3. The Commercial
Banking index rose 0.6%, while the Services index rose 0.2%. Al Salam Bank
gained 4.8%, while Khaleeji Commercial Bank was up 2.0%.
Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%
Medicare Group 118.20 10.0 377.2 125.1
Widam Food Co. 56.90 4.2 61.0 10.1
Qatar Gas Transport Co. 24.80 3.6 2,402.9 22.5
Gulf Warehousing Co. 50.00 3.1 5.5 20.5
Qatar German Co. for Med. Dev. 14.09 2.8 56.3 1.7
Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%
Mazaya Qatar Real Estate Dev. 20.25 0.0 5,462.2 81.1
Ezdan Holding Group 19.85 (3.0) 3,518.3 16.8
United Development Co. 28.90 2.5 2,832.6 34.2
Qatar Gas Transport Co. 24.80 3.6 2,402.9 22.5
Vodafone Qatar 19.30 1.0 1,108.8 80.2
Market Indicators 04 Aug 14 03 Aug 14 %Chg.
Value Traded (QR mn) 871.1 493.3 76.6
Exch. Market Cap. (QR mn) 693,157.9 690,222.7 0.4
Volume (mn) 23.8 13.7 74.3
Number of Transactions 9,236 5,628 64.1
Companies Traded 41 41 0.0
Market Breadth 27:11 21:16 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 19,376.30 1.0 0.9 30.7 N/A
All Share Index 3,285.31 0.9 0.9 27.0 15.9
Banks 3,167.55 1.2 0.8 29.6 15.5
Industrials 4,270.12 0.4 (0.2) 22.0 16.4
Transportation 2,287.75 1.9 2.6 23.1 14.6
Real Estate 2,781.42 1.3 3.6 42.4 15.0
Insurance 3,821.77 1.6 1.8 63.6 12.1
Telecoms 1,555.49 (1.9) (1.4) 7.0 22.0
Consumer 7,267.02 1.8 3.6 22.2 27.7
Al Rayan Islamic Index 4,408.94 1.7 2.7 45.2 18.9
GCC Top Gainers##
Exchange Close#
1D% Vol. ‘000 YTD%
Al Mouwasat Med.Ser. Saudi Arabia 118.75 10.0 284.2 29.1
Saudi Dairy & Food Co. Saudi Arabia 126.20 9.8 207.1 46.3
Knowledge Eco. City Saudi Arabia 26.10 9.7 8,997.3 47.5
Makkah Const. & Dev. Saudi Arabia 86.90 6.3 486.5 34.7
Raysut Cement Co. Oman 2.18 5.6 16.3 8.2
GCC Top Losers##
Exchange Close#
1D% Vol. ‘000 YTD%
NBQ Abu Dhabi 3.33 (9.8) 239.5 0.9
Nat. Bank of Abu Dhabi Abu Dhabi 13.55 (4.6) 1,311.8 7.2
Nat. Mobile Telecom Kuwait 1.58 (3.7) 30.3 (10.2)
Ezdan Holding Group Qatar 19.85 (3.0) 3,518.3 16.8
Ooredoo Qatar 125.20 (2.8) 185.1 (8.7)
Source: Bloomberg (
#
in Local Currency) (
##
GCC Top gainers/losers derived from the Bloomberg GCC
200 Index comprising of the top 200 regional equities based on market capitalization and liquidity)
Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD%
Ezdan Holding Group 19.85 (3.0) 3,518.3 16.8
Ooredoo 125.20 (2.8) 185.1 (8.7)
Qatar Industrial Manufacturing Co. 45.55 (2.0) 1.2 8.0
Islamic Holding Group 71.20 (1.1) 13.5 54.8
Qatar Navigation 90.20 (0.9) 147.6 8.7
Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%
Mazaya Qatar Real Estate Dev. 20.25 0.0 114,128.9 81.1
United Development Co. 28.90 2.5 81,308.4 34.2
Ezdan Holding Group 19.85 (3.0) 70,671.5 16.8
Qatar Gas Transport Co. 24.80 3.6 59,475.7 22.5
Masraf Al Rayan 53.30 0.9 54,766.8 70.3
Source: Bloomberg (* in QR)
Regional Indices Close 1D% WTD% MTD% YTD%
Exch. Val. Traded
($ mn)
Exchange Mkt.
Cap. ($ mn)
P/E** P/B**
Dividend
Yield
Qatar* 12,991.23 1.0 0.9 0.9 25.2 239.22 190,341.2 15.9 2.2 3.9
Dubai 4,885.22 1.3 1.1 1.1 45.0 308.95 95,402.1 23.0 1.9 2.1
Abu Dhabi 4,984.27 (0.2) (1.4) (1.4) 16.2 85.51 136,939.8 13.5 1.8 3.3
Saudi Arabia 10,405.81 1.0 1.9 1.9 21.9 2,295.49 567,836.0 20.0 2.5 2.7
Kuwait 7,144.33 0.3 0.2 0.2 (5.4) 57.37 112,418.6 16.9 1.1 3.9
Oman 7,328.96 1.4 1.8 1.8 7.2 22.75 26,899.3 12.4 1.8 3.8
Bahrain 1,475.25 0.2 0.2 0.2 18.1 0.53 54,270.4 11.7 1.0 4.7
Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)
12,850
12,900
12,950
13,000
13,050
13,100
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
2. Page 2 of 6
Qatar Market Commentary
The QE index rose 1.0% to close at 12,991.2. The
Transportation and Consumer Goods & Services indices led the
gains. The index rose on the back of buying support from non-
Qatari shareholders despite selling pressure from Qatari
shareholders.
Medicare Group and Widam Food Co. were the top gainers,
rising 10.0% and 4.2%, respectively. Among the top losers,
Ezdan Holding Group fell 3.0%, while Ooredoo declined 2.8%.
Volume of shares traded on Monday rose by 74.3% to 23.8mn
from 13.7mn on Sunday. Further, as compared to the 30-day
moving average of 14.3mn, volume for the day was 67.0%
higher. Mazaya Qatar Real Estate Dev. and Ezdan Holding
Group were the most active stocks, contributing 22.9% and
14.8% to the total volume respectively.
Source: Qatar Exchange (* as a % of traded value)
Ratings, Earnings and Global Economic Data
Ratings Updates
Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change
Bank Sohar
Capital
Intelligence
Oman
FSR/LT FCR/ST
FCR/SR
BBB/BBB+/A3/2 BBB/BBB+/A3/2 – Stable –
Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Currency Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC
– Local Currency)
Earnings Releases
Company Market Currency
Revenue
(mn)2Q2014
% Change
YoY
Operating Profit
(mn) 2Q2014
% Change
YoY
Net Profit (mn)
2Q2014
% Change
YoY
Emaar Properties Dubai AED 2,807.00 24.4% – – 868.0 28.6%
Muscat National Holding Co.
(MNH)*
Oman OMR – – – – 0.5 27.0%
Dhofar International
Development & Investment
Holding Co. (DIDIHC)*
Oman OMR 10.1 39.7% – – 8.4 35.4%
Source: Company data, DFM, ADX, MSM (*1H2014 results)
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
08/04 US Nat. Asso. of Purcha ISM New York July 68.1 – 60.5
08/04 US US Treasury 3M High Yield Rate 4-August 0.03% – 0.03%
08/04 US US Treasury 3M Direct Accepted % 4-August 6.40% – 5.20%
08/04 US US Treasury 3M Bid/Cover Ratio 4-August 4.6 – 4.7
08/04 US US Treasury 3M Indirect Accepted % 4-August 26.00% – 28.20%
08/04 US US Treasury 6M Direct Accepted % 4-August 4.40% – 3.60%
08/04 US US Treasury 6M Indirect Accepted % 4-August 28.60% – 42.70%
08/04 US US Treasury 6M High Yield Rate 4-August 0.05% – 0.06%
08/04 EU Eurostat PPI MoM June 0.10% 0.00% -0.10%
08/04 EU Eurostat PPI YoY June -0.80% -1.00% -1.00%
08/04 UK Markit Markit/CIPS UK Construction PMI July 62.4 62.0 62.6
08/04 UK London Gold Market Fix. London Gold Market PM Fix 4-August 1,290.5 – 1,291.3
08/04 Spain Spanish Labour Ministry Unemployment MoM Net ('000s) July -29.8 -111.9 -122.7
08/04 Japan Bank of Japan Monetary Base YoY July 42.70% – 42.60%
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
News
Qatar
QA to scale up capacity on Perth route by 30% from
October 1 – Qatar Airways (QA) will be increasing capacity on
the Perth route with an aircraft upgrade to a Boeing 777-300.
The increase in capacity will take effect on October 1. The Perth
route, which has seen exceptional growth over the last two
years, provides excellent connections for passengers to the
airline’s numerous destinations in the Middle East and Africa as
well as some 33 destinations in Europe, through the airline’s
new state-of-the-art home, Hamad International Airport (HIA).
The capacity increase from a Boeing 777-200 to a 777-300 will
result in a 30% increase in seats on the direct daily flights to the
Perth Airport, with the number of seats rising by 1,064 a week.
Along with the enhanced capacity, the airline is also celebrating
its second anniversary since the launch of its direct flights to
Perth, the capital of Western Australia. (Gulf-Times.com)
ORDS offers direct transfers to Sri Lanka banks – Ooredoo
Mobile Money has announced that customers can now send
money directly to accounts at 28 banks in Sri Lanka from their
mobile phones through an agreement with MoneyGram.
Overall Activity Buy %* Sell %* Net (QR)
Qatari 56.62% 60.58% (34,536,092.83)
Non-Qatari 43.38% 39.41% 34,536,092.83
3. Page 3 of 6
Customers can also send money to more than 1,500
MoneyGram agent locations across the country. Also through
Ooredoo Mobile Money, customers can transfer money
domestically and internationally to over 339,000 MoneyGram
agents in 200 countries, including the Philippines, India, Nepal,
Bangladesh, Sri Lanka, Egypt, Lebanon, Jordan, Tunisia,
Kenya, Cameroon, Ghana, Nigeria and more. (Peninsula Qatar)
International
Fed says US banks eased loans amid broad pick-up in
demand – According to a Federal Reserve survey, US banks
have eased lending requirements amid a widespread increase in
demand during the second quarter. The Fed said the survey
results showed a continued easing of lending standards and
terms for many types of loan categories amid a broad-based
pick-up in loan demand. The central bank surveyed 75 domestic
banks and 23 US units of foreign banks from July 1 to July 15.
The record lending by the US banks has helped the economy
rebound from a first-quarter contraction brought on by harsh
winter weather. The figures from the US labor Department
showed employers last week added more than 200,000 jobs for
a sixth straight month in July. The last time that occurred was
1997. The Fed said domestic banks generally continued to ease
their lending standards and various terms for commercial and
industrial loans. The Fed further added that US financial
institutions also reported having eased standards on most types
of commercial real estate loans on balance. (Bloomberg)
France urges ECB, Germany to fight deflationary risk –
French President Francois Hollande told Le Monde daily that the
European Central Bank (ECB) and EU powerhouse Germany
must do more to boost growth and fight a "real deflationary risk"
in Europe. Hollande said a lot will depend on the level of the
Euro, which has weakened over the past few days but not
enough. The ECB must take all necessary measures to inject
liquidity into the economy. Hollande said while the French
government has started warning that it might be difficult to meet
an EU deadline to bring its public deficit under 3% of its GDP
next year. He further added that France is not asking for any
leniency from Germany, but wants them to do more to boost
growth. He said that Germany’s trade surplus and financial
situation will allow it to invest more, which would be the best
thing to happen for France and Europe. (Reuters)
Espirito Santo sets benchmark for creditor pain in EU bank
rules – Portugal’s rescue of Banco Espirito Santo SA may have
eased some doubts about Europe’s banking industry by showing
investors how the European Union’s thinking has evolved on
handling failing lenders. The decision shielding some creditors
spurred a rally in bank stocks and Portuguese assets yesterday
by demonstrating authorities were able to shutter a bank without
sparking a fresh bout of market tensions that have roiled Europe
since 2009. Instead of forcing losses on unsecured depositors
and other senior creditors, as was required of Cyprus, Portugal
is following Spain’s gentler approach that focused losses on
junior debt and stockholders. The yield on Portugal’s 2-year
bonds closed at a record low yesterday. The Bloomberg
European Banks and Financial Services Index rose 0.3%, its
first gain in three days, while Portugal’s benchmark stock gauge
rose 1%. (Bloomberg)
Weak Japan exports, output said to raise concerns at BOJ –
According to sources, Bank of Japan (BOJ) officials are
concerned over increasing signs of weakness in the economy
following a sales-tax increase. Governor Haruhiko Kuroda and
his board will discuss this week if they should lower their
assessment of the nation’s exports and also whether to exercise
caution about a decline in industrial production. Economists from
JPMorgan Chase & Co. and UBS AG have cut their estimates
for second-quarter GDP after data showed exports unexpectedly
declined, retail sales dropped more than forecast and output fell
the most since the March 2011 earthquake. The BOJ is
forecasted to maintain its record stimulus at a two-day meeting
ending August. 8. Prime Minister Shinzo Abe increased the
sales levy by 3 percentage points in April, hitting consumer
spending and ending six straight quarters of growth in the
world’s third-biggest economy. Industrial production tumbled
3.3% in June from the previous month, the steepest decline in
more than three years, as manufacturers cut back in response
to weak consumption. (Bloomberg)
China July HSBC services PMI falls to near nine-year low,
recovery strength in question – A private sector survey
showed the growth in China's services sector slowed sharply in
July to its lowest level in nearly nine years, indicating a recovery
in the broader economy is still fragile and may need further
government support. Weakness in new orders was also seen in
China's official services report at the weekend, which showed
activity slipped to a six-month low. Both surveys contrast with
other data in recent weeks which showed the economy was
regaining momentum thanks to a spate of government stimulus
measures. The weaker readings in services, which account for
about 45% of its GDP, raise the question of whether Beijing
needs to do more to support growth, particularly in the rapidly
cooling property sector. The services purchasing managers'
index (PMI) compiled by HSBC/Markit fell to 50.0 in July from a
15-month high of 53.1 in June, the lowest reading since
November 2005 when the data collection began. The survey
indicated a stagnation of service activity last month, as a reading
above 50 in PMI surveys indicates an expansion in activity while
one below the threshold points to a contraction. In a sign that
economic uncertainty has made companies more reluctant to
spend, a sub-index measuring new business growth hit a 68-
month low of 50.3 in July. (Reuters)
WTO failure points to fragmented future for global trade –
India has dealt a potentially fatal blow to the World Trade
Organization's (WTO) hopes of modernizing the rules of global
commerce and remaining the central forum for multilateral trade
deals. In the short-term, this is a setback for free commerce. In
the longer run, it means trade liberalization may advance – if at
all – among narrower groups of countries, denying dissenters a
chance to block progress. While the unwieldy 160-member,
Geneva-based WTO will survive as a body for enforcing existing
multilateral agreements, smaller clubs of like-minded nations are
trying to move ahead faster to update the trade rules among
themselves. Last week India vetoed the adoption of a treaty to
simplify, standardize and streamline the rules for shipping goods
across borders, having previously agreed to its terms at a
ministerial conference in Bali last December. It blocked the text
because it wanted more attention paid to its concerns over food
security. After drawing widespread condemnation, India now
says it wants to keep the treaty alive, with stronger assurances
about protecting its food security needs, until a permanent
solution is found. (Reuters)
Regional
DHL invests $20mn in Saudi Arabia; $117mn in MENA –
DHL Express is set to extend its leadership across the MENA
region with the 2014 completion of a $117mn two-year
investment in new hubs and facilities in Saudi Arabia, UAE and
Egypt. DHL’s investment creates three new gateways in Saudi
Arabia, a hub in Cairo, and launches its biggest ground
operations facility in the region in Dubai. DHL has invested over
$20mn in Saudi Arabia to create three new gateways in
Damman, Riyadh and Jeddah. The new DHL Express Riyadh
4. Page 4 of 6
Gateway and Service Center facility at the King Khaled
International Airport has opened in July 2014. DHL’s Dammam
Gateway and Service Center at the King Fahd International
Airport opened in 2013, while the Jeddah facility is scheduled for
completion later this year. The Dubai hub is being revamped to
use the area vacated by head office resulting in doubling of the
service center capacity. In addition, the gateway and service
center in Abu Dhabi is being relocated to the new Logistics Park
at Abu Dhabi Airport Business City. DHL has also unveiled plans
to grow its presence in Morocco, besides introducing new flights
to Lebanon and Qatar. (GulfBase.com)
Saudi Aramco, Sumitomo to transfer $8.5bn project
ownership to PetroRabigh – Saudi Arabian Oil Company
(Saudi Aramco) and Japan’s Sumitomo Chemical will transfer
ownership of a planned $8.5bn petrochemical facility to their
joint venture PetroRabigh. The new facility, known as Rabigh II,
will be built as an expansion of PetroRabigh’s existing
petrochemical plant, increasing output and introducing higher-
margin products. The ownership of the planned new facility will
be transferred from Saudi Aramco and Sumitomo to
PetroRabigh in 4Q2014. However, both Saudi Aramco and
Sumitomo will continue to guarantee finance needed to build the
project. Sumitomo President Masakazu Tokura said the two
firms will put in around $975mn each, with the rest coming from
project financing. Under the plan, Rabigh II will produce ethylene
propylene rubber (EPR), thermoplastic polyolefin (TPO), methyl
methacrylate (MMA) monomer, polymethyl methacrylate
(PMMA) among other products. The expansion of the $8.5bn
complex aims to increase output from the plant as well as
introduce higher-margin products. (GulfBase.com)
Saudi bank deposits hit SR1, 495.5bn in June – According to
a financial report, deposits in Saudi Arabian banks have hit a
record level of nearly SR1, 495.5bn by the end of June 2014 as
compared to SR1495.4bn in May 2014, reflecting an increase of
744% as compared to the figures of 1992 which stood at
SR177bn. Deposits in Saudi banks are grouped into three major
types: demand deposits, time (saving) deposits and quasi-cash
deposits. The volume of demand deposits in the Saudi banks
stood at SR939.1bn (63% of total deposits) by the end of June
2014, of which SR880.4bn (94%) were owned by individuals and
companies, while the remaining SR58.6% (6%) were owned by
government agencies. Time (saving) deposits accounted for
24% of the total deposits in the Saudi banks at a value of
SR360.2bn, of which SR176.5bn and SR183.7bn were owned
by individuals/companies and government agencies
respectively. Quasi-cash deposits accounted for 13% of the total
deposits in the Saudi banks at a value of SR196.2bn by the end
of June 2014. Deposits grew 13% by SR168bn on a YoY basis
in June 2014. (GulfBase.com)
MMG announces cancellation of MoU with FAS –
Mohammed Al-Mojil Group Company (MMG) announced the
cancellation of the MoU with Saudi Fas Holding (FAS), which
was announced on Tadawul on June 19, 2014 due to the
unwillingness of FAS to execute the MoU through their letter
dated July 16, 2014. (Tadawul)
Carlson Rezidor inks deal for 5 new hotels in Saudi Arabia –
Carlson Rezidor Hotel Group announced that it has signed five
new projects in Saudi Arabia, expanding its portfolio to 22 hotels
in the country. The group, whose core brands are Radisson Blu
and Park Inn by Radisson, will open three hotels in Jeddah and
one each in Riyadh and Dammam. The new projects in Saudi
Arabia are the Radisson Blu Hotel & Residence, Jeddah
Corniche, the Radisson Blu Red Sea Palace hotel, the Radisson
Blu Plaza Residence, Jeddah Salihiyah, the Park Inn by
Radisson Hotel Riyadh Nasiriyah, and the Park Inn by Radisson
Dammam. (Bloomberg)
MM: UAE employment opportunities rise 21% – According to
a survey by Morgan McKinley (MM), professional job
opportunities across the UAE have increased by 21% between
1Q2014 and 2Q2014. A renewed optimism in the job market
was evident with the number of job seekers in the UAE
increasing by 30% between 1Q2014 and 2Q2014. The number
of vacancies increased from 6,653 in 1Q2014 to 8,057 in
2Q2014, representing a 5% rise as compared to 2Q2013. The
survey highlighted that the number of professionals looking for
new positions in 2Q2014 totaled 45,575, while 1Q2014
registered 35,138 jobseekers, representing a 30% increase as
compared to an increase of only 12% in 2Q2013.
(GulfBase.com)
UAE’s overall trade with Japan robust – Japan has
maintained its robust performance in the trade with UAE in
2013, propelled by increased exports of motor vehicles. In the
overall trade, UAE was Japan’s 8th largest trading partner in
2013, behind China, USA, South Korea, Australia, Taiwan,
Thailand and Saudi Arabia. By meeting nearly 23% of the total
crude oil requirements of Japan, UAE remained Japan’s 2nd
largest supplier of crude oil after Saudi Arabia, which covered
31.83% of Japan’s total crude oil imports. Mineral fuels formed
98.5% of Japan’s imports from the UAE in 2013. The remaining
small portion comprises semi-finished aluminium, scrap metals,
precious stones and metals, electrical machinery, readymade
garments, plastics, backing related goods, perfumes and
cosmetics. The value of imports from the UAE fell by 3.3% to
$42.53bn in 2013, from $43.31bn in 2012. UAE was Japan’s 5th
largest supplier of products in general, covering 5.11% of the
total imports. The value of Japan’s crude oil imports from the
UAE amounted to 79.39% of the total value of Japan’s imports
from the UAE in 2013. In terms of volume, Japan’s crude oil
imports from the UAE increased by 3.23% to 301.43mn barrels
in 2013 as compared to 291.99mn barrels in 2012.
(GulfBase.com)
DEC: SMEs employ 42% of Dubai workforce – According to a
report by the Dubai Economic Council (DEC), the small &
medium enterprises (SMEs) account for 95% of the total
enterprise population in Dubai and employs approximately 42%
of Dubai's workforce. The report recommended changes to the
current legislative and regulatory framework surrounding the
creation of security interests, with an intention to encourage
banks to further lend to SMEs and in turn improve their access
to finance. (GulfBase.com)
DIC completes sale of Mauser to CD&R for $1.7bn – Dubai
International Capital (DIC), the private equity arm of Dubai
Holding, announced that it has completed the sale of Mauser
Group to Clayton, Dubilier & Rice (CD&R) for $1.7bn. The sale
agreement was announced on May 12, 2014. Bank of America
Merrill Lynch acted as exclusive financial advisor to DIC. Latham
& Watkins provided DIC with legal counsel. (GulfBase.com)
Damac acquires land plot from Dubailand for $513mn –
Dubai developer Damac has acquired a development land plot
from Dubailand for $513mn. The plot comprises around 55mn
square feet of land in Dubai and is being purchased through the
company’s subsidiary Front Line Investment Management. The
consideration will be satisfied using the proceeds of the $650mn
Sukuk, which the company placed in 2Q2014. (Bloomberg)
DIB provides AED360mn refinancing facility to UP – Dubai
Islamic Bank (DIB) has signed an agreement with Union
Properties (UP) to provide the latter with an AED360mn re-
financing facility. The Islamic refinancing facility will assist UP to
5. Page 5 of 6
effectively manage its balance sheet as well as enhance focus
on its core business/expansion plans as the developer looks to
capitalize on the opportunities currently available in the real
estate market. Emerging strongly from the financial crisis, the
developer is moving forward with its growth plans after having
repaid AED7bn worth of legacy bank debt. (Bloomberg)
Etisalat expands network coverage – Emirates
Telecommunication Corporation (Etisalat) has expanded its
preferred partner network for data roaming. Customers
subscribed to Etisalat’s mobile data packs can now access
internet on the country’s largest roaming network of a total of
248 operators in 106 countries. Etisalat’s enhanced roaming
network includes all GCC countries, allowing customers to enjoy
data usage anywhere in the region as well as in 36 new
destinations worldwide including Hong Kong, Iran, Japan,
Maldives, Philippines, Tunisia, South America and South Korea.
Etisalat has also added 110 new networks in existing and new
countries. (GulfBase.com)
BTG teams up with Abu Dhabi Fund for Ariel Re acquisition
– Brazilian Bank Grupo BTG Pactual’s (BTG) CEO, Andre
Esteves, said that the bank is partnering with shareholder Abu
Dhabi Investment Council to expand its reinsurance business.
BTG and the sovereign fund will each take a 50% stake in Ariel
Re, the reinsurance unit that BTG has said it is acquiring from
Global Atlantic Financial Group Ltd. BTG announced the
acquisition of Ariel Re on July 10, 2014 without disclosing its
partner or financial terms. (Bloomberg)
Ardian in talks to buy $2bn of ADIA – According to sources,
private-equity firm Ardian, formerly known as Axa Private Equity,
is in talks to purchase more than $2bn in private-equity fund
stakes from the Abu Dhabi Investment Authority (ADIA). ADIA
hired Cogent Partners to advice on selling mostly buyout fund
stakes. Ardian made a bid on the portfolio before ADIA could
start a sales process. (Bloomberg)
NBK’s Consumer Banking Head resigns – National Bank of
Kuwait (NBK) said that its Head of Consumer Banking, Mazen
al-Nahedh, has resigned from his post. However, he will remain
in the role until October 21, 2014. (Reuters)
ONIC Holding to consider Ominvest merger at next board
meeting – Oman National Investment Corporation Holding
(ONIC Holding) said that it would discuss a possible merger with
Oman International Development & Investment Company
(Ominvest) at its next board meeting. In July 2014, Ominvest
had written to ONIC Holding about forming a strategic
arrangement between the two firms, with any tie-up subject to
approvals of shareholders and regulators. ONIC Holding said it
had received the merger letter and this would be discussed at its
next board meeting, after which it would make a further
disclosure on the matter. (MSM, Reuters)
Bank Muscat Oryx Fund expands to MENA region – Bank
Muscat Oryx Fund, managed by the asset management division
of Bank Muscat, has decided to widen the objective of the fund
to invest in companies listed in the MENA region, whereas in the
past investment was limited to the GCC countries only. The
decision was taken at the EGM of the unit holders of the Bank
Muscat Oryx Fund held on July 15, 2014. (Bloomberg)
NCSI: Omani exports drop 8% on decline in oil revenue –
According to the figures released by the National Centre for
Statistics and Information (NCSI), the total value of Omani
exports, which include oil & gas, non-oil products and re-
exports, declined by 7.9%, totaling OMR5.14bn by the end of
1Q2014, as compared to OMR5.58bn registered in 1Q2013. The
decline was due to a 9.3% fall in oil & gas exports by the end of
1Q2014, as compared to 1Q2013, generating export revenue of
OMR3.37bn by the end of March 2014, as compared to
OMR3.72bn by the end of March 2013. The total value of re-
exports declined by 27.2% over the same period, recording a
total value of OMR760.6mn by the end of 1Q2014 as against
OMR1.04bn in 1Q2013. According to the NCSI foreign trade
report, the total value of merchandise imports declined by 8.1%,
totaling OMR2.94bn by the end of March 2014 as compared to
OMR3.20bn during the same period in 2013. The total volume of
merchandise imports by volume registered a drop of 7.4% by
the end of March 2014, totaling 5.98mn tons as compared to
6.46mn tons recorded during the same period in 2013.
(Bloomberg)
Ahli bank posts OMR13.1mn net profit in 1H2014 – Ahli bank
reported a net profit of OMR13.1mn in 1H2014 against a net
profit of OMR12.5mn in 1H2013. Bank’s total assets increased
to OMR1, 517mn in 1H2014 from OMR1, 297mn in 1H2013.
Loans & advances grew from OMR1, 042mn in 1H2013 to
OMR1, 250mn in 1H2014 while customers’ deposits increased
from OMR923mn in 1H2013 to OMR996mn in 1H2014. Non-
performing loan ratio stood at 1% as of June 2014. (Bloomberg)
Zain Bahrain set to raise BHD9.12mn through IPO – Zain
Bahrain said that it is offering 48mn shares equivalent to 15% of
issued share capital at a price of 190 fils starting September 2,
2014. The initial public offering (IPO) closes on September 16,
2014 and the results of subscription and allotment basis will be
announced on September 18, 2014. The IPO is open to Bahraini
institutional and retail investors as well as GCC institutional
investors. The current issued share capital of Zain Bahrain is
BHD32mn divided into 32mn shares of BHD1 each. After its
conversion into a public joint stock company, the fully paid share
capital will be BHD36.8mn divided into 368mn shares with a
face value of 100 fils. The offering price, therefore, represents a
premium of 90 fils per share, that is, 90% of face value. Based
on the IPO price, the company is valued at BHD60.8mn. Zain
Bahrain said the proceeds amounting to BHD9.12mn will
primarily (95% to 98%) be used to fund capital expenditure
(capex). The capex is aimed at upgrading network infrastructure
to improve indoor coverage, expanding capacity to meet high
bandwidth demands and introducing smart features for
smartphones. (GulfBase.com)
Investcorp Bank’s FY2014 profit jumps 25% to $131.2mn –
Investcorp Bank reported a net profit of $131.2mn for the year
ended June 30, 2014 as compared to $104.9mn in the year
ended June 30, 2013, reflecting an increase of 25%. Fully
diluted earnings per share jumped 84% to $129 per ordinary
share from $70 in FY2013. Return on average equity was 16%.
Total assets stood at $2.30bn as of June 30, 2014 as compared
to $2.48bn as of June 30, 2013. Investcorp said it returned
around $1.3bn to investors from sales in eight firms, including
stakes in German insulation materials company Armacell and
online payments business Skrill Group - which it sold to CVC
Capital Partners for €600mn in August 2013. It also made a
number of new investments totaling $609mn, including in US-
based accessories brand Totes Isotoner Corp and UK-based
snack food maker Tyrrells. Investcorp’s board of directors has
proposed a dividend of $15 per ordinary share, along with the
full dividend of 12% on preference shares. (Bahrain Bourse,
Reuters)
6. Contacts
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian
Head of Research Senior Research Analyst Senior Research Analyst
Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509
saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa
Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC
Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025
sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar
DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar
Financial Markets Authority and the Qatar Exchange; QNB 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. 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. While this publication has been prepared with the utmost degree of care by our analysts,
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. QNBFS reserves the
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views and opinions included in this report.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
Page 6 of 6
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg
80.0
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
180.0
190.0
200.0
210.0
Jul-10 Jul-11 Jul-12 Jul-13 Jul-14
QE Index S&P Pan Arab S&P GCC
1.0% 1.0%
0.3%
0.2%
1.4%
(0.2%)
1.3%
(0.4%)
0.0%
0.4%
0.8%
1.2%
1.6%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD%
Gold/Ounce 1,288.30 (0.4) (0.4) 6.9 DJ Industrial 16,569.28 0.5 0.5 (0.0)
Silver/Ounce 20.17 (0.8) (0.8) 3.6 S&P 500 1,938.99 0.7 0.7 4.9
Crude Oil (Brent)/Barrel (FM
Future)
105.41 0.5 0.5 (4.9) NASDAQ 100 4,383.89 0.7 0.7 5.0
Natural Gas (Henry
Hub)/MMBtu
3.79 1.1 1.1 (12.8) STOXX 600 331.15 (0.2) (0.2) 0.9
LPG Propane (Arab Gulf)/Ton 99.75 (0.5) (0.5) (21.1) DAX 9,154.14 (0.6) (0.6) (4.2)
LPG Butane (Arab Gulf)/Ton 118.25 0.4 0.4 (12.9) FTSE 100 6,677.52 (0.0) (0.0) (1.1)
Euro 1.34 (0.0) (0.0) (2.3) CAC 40 4,217.22 0.3 0.3 (1.8)
Yen 102.57 (0.0) (0.0) (2.6) Nikkei 15,474.50 (0.3) (0.3) (5.0)
GBP 1.69 0.2 0.2 1.8 MSCI EM 1,069.30 0.9 0.9 6.6
CHF 1.10 (0.1) (0.1) (1.5) SHANGHAI SE Composite 2,223.33 1.7 1.7 5.1
AUD 0.93 0.2 0.2 4.7 HANG SENG 24,600.08 0.3 0.3 5.6
USD Index 81.33 0.0 0.0 1.6 BSE SENSEX 25,723.16 1.0 1.0 21.5
RUB 35.83 0.1 0.1 9.0 Bovespa 56,616.33 1.3 1.3 9.9
BRL 0.44 (0.0) (0.0) 4.6 RTS 1,212.21 (0.0) (0.0) (16.0)
186.7
160.1
144.2
