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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER

QE Index: Short-Term – Uptrend

The QE Index showcased an enthusiastic performance and scaled

up to record a new all-time high. The index closed above the

14,000.0 level for the first time in its lifetime, after feigning a failure in

the past few attempts, which is a positive development. We believe

the index will continue its upbeat mode and tag fresh new highs,

since it has support from the strengthening RSI. On the flip side, the

index may find support near the 14,000.0 level.

Barwa Real Estate Co.: Short-Term – Upmove

BRES built on its gains and breached a series of resistances and the

21-day moving average as well as the ascending pennant in a single

swoop. Further, the stock developed a bullish Marubozu candlestick

pattern, indicating a likely continuation of this upmove. We believe the

stock may continue its rally further and test QR42.50, followed by

QR43.20. However, a dip below QR41.80 may pull the stock to test

QR41.18. Meanwhile, both the indicators look strong.

Al Rayan Islamic Index: Short-Term – Upmove

The QERI Index ended the session in the green for the second

straight session and gained 0.80% to settle above the 4,750.0 mark.

The index has been showing strength since it moved above the

4,700.0 level, in order to keep its upmove intact. However, the index

faces its next important resistance near 4,770.0. A close above this

level may heighten optimism among traders and extend this rally.

Conversely, 4,708.0 may act as an immediate support.

Vodafone Qatar: Short-Term – Upmove

VFQS advanced further and surpassed the important resistance of

QR21.97. The stock has emerged above its strong resistance of

QR21.40 on Monday and rallied further yesterday, which is a positive

sign. We believe, based on the recent price action and spike in

volumes, the stock may extend its gains and test QR22.80. However,

traders may need to exercise caution, if the stock slips below

QR21.97, as it may drag the stock toward QR21.40.

Qatari Investors Group: Short-Term – Bounce Back

QIGD gained 3.66% to clear its resistances of QR58.0, the 21-day

moving average as well as the ascending pennant, after witnessing a

correction over the past few weeks. Notably, volumes were also large

on the rise, indicating that potential buyers stepping in. Further, the

RSI has shown a bullish divergence, which shows strength. Traders

may consider buying the stock at the current level for a target of

QR60.60 with a strict stop loss of QR59.0.

Gulf International Services: Short-Term – Uptrend

GISS jumped 4.73% and breached its key resistances of QR122.50

and QR124.10, tagging a new all-time high. Moreover, the stock rose

on the back of increased participation, indicating further strength. We

believe the stock may continue its positive momentum and record

new highs. Meanwhile, the RSI is in the buy zone, while the MACD

has crossed the signal line into the positive territory which suggests

the stock has enough steam to accelerate further.

Contacts

Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC Head of Research Senior Research Analyst Senior Research Analyst Manager - HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa 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 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.

COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 2 of 2

*These stocks are today’s suggested ideas

Overall Methodology: The charts and descriptions on Page 1 provide an indicative view of the future direction of the equities mentioned. The table on page 2 has been provided to denote historical movements in certain stocks. The historical trend analysis uses 21- and 55-day SMAs for indicating short-term and long-term trends, respectively. Based on these SMAs, the historical direction of the trend is denoted as UP, DOWN or FLAT. Selection of Key Stocks of the Day: Key stocks’ selection is based on our analysis of 19 members of the QE Index (excludes QNBK QD). Analysis includes identifying trends (short-term as well as long-term), patterns and support/resistance levels. Trend Direction: The methods used to determine trend direction are subjective in nature. We use 21-day SMA and 55-day SMA, absolute price movements, price movements relative to SMAs and accurately drawn trend lines and chart patterns to determine the short- and

long-term trends. Investment Horizon: The definition of short term and long term depends upon investors’ preferences and their investment objectives. As a rule of thumb, the time horizon for traders/short-term trend is 1-3 weeks while it is 1-3 months for investors/long-term trend. Combining Technical and Fundamental Analysis: Investors can combine technical analysis (TA) with fundamental analysis (FA) to maximize their investment returns. While the “True Value” of stocks could be estimated by FA, the entry and exit timings could be fine tuned using technical analysis to benefit from short-term movements in stock prices. Trading Tactics: The trend direction should be analyzed based on the time-horizon of your investments. In general, investors attempt selling close to resistance levels during a downtrend and attempt buying close to support levels during uptrend. Definitions:

1> Simple Moving Average (SMA): A SMA is the average of the closing price of a security for a given period. 2> RSI (Relative Strength Index): A technical momentum indicator that ranges from 0 to 100 and compares the stock’s recent price movements by evaluating recent gains and losses. Stocks with RSI above 70 could be considered overbought and below 30 could be

considered oversold. If the RSI falls below 70, it is a bearish signal. On the other hand, if the RSI rises above 30 it is considered bullish. We use a RSI of 14 days. 3> MACD (Moving Average Convergence Divergence): MACD denotes the relationship between two moving averages, which is used to spot changes in strength, direction, momentum and duration of a stock price trend. The MACD is calculated by subtracting the 26-day

exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the signal line, is also plotted on top of the MACD, functioning as a trigger for buy/sell signals. The MACD line above the signal line provides a positive signal and vice versa.

Name (Ticker) Last Close Trend Support Resistance

Short Term Long Term First Second First Second

Qatar Exchange Index (QE Index) 14,046.61 UP UP 13,993.34 13,909.87 14,067.31 14,150.00

Al Rayan Islamic Index (QERI Index) 4,750.13 UP UP 4,707.59 4,685.00 4,770.31 4,811.58

Banks and Financial Services Banks and Financial Services

Masraf Al Rayan (MARK QD) 56.20 UP UP 55.80 54.00 57.30 58.20

Commercial Bank of Qatar (CBQK QD) 74.70 UP UP 74.30 72.40 75.00 76.50

Doha Bank (DHBK QD) 62.90 UP UP 62.00 61.00 63.30 64.50

Qatar Islamic Bank (QIBK QD) 117.50 UP UP 117.40 115.00 120.00 122.00

Qatar International Islamic Bank (QIIK QD) 89.80 UP UP 89.00 87.80 90.50 92.40

Qatar Insurance (QATI QD) 100.00 UP UP 98.00 97.00 100.00 101.00

Al Khalij Commercial Bank (KCBK QD) 22.41 UP UP 22.35 22.00 22.50 22.85

Consumer Goods and Services Consumer Goods and Services

Medicare Group (MCGS QD) 131.30 FLAT UP 128.80 126.50 131.40 135.20

Al Meera Consumer Goods Co. (MERS QD) 187.60 DOWN UP 185.00 183.00 187.80 190.00

Industrials Industrials

Industries Qatar (IQCD QD) 189.60 UP UP 188.50 186.40 190.00 191.00

Qatar Electricity & Water Co. (QEWS QD) 190.50 UP UP 190.00 188.00 192.00 194.00

Gulf International Services (GISS QD)* 128.30 UP UP 124.10 122.50 129.90 131.50

Qatari Investors Group (QIGD QD)* 59.50 UP UP 59.00 58.00 60.60 61.30

Real Estate Real Estate

Barwa Real Estate Co. (BRES QD)* 41.95 UP UP 41.80 41.00 42.50 43.20

United Development Co. (UDCD QD) 29.60 FLAT UP 29.50 29.05 30.00 30.45

Telecom Telecom

Ooredoo (ORDS QD) 131.00 UP UP 129.70 126.00 132.00 134.00

Vodafone Qatar (VFQS QD)* 22.00 UP UP 21.97 21.40 22.80 23.00

Transportation Transportation

Nakilat (QGTS QD) 25.00 DOWN UP 24.90 24.45 25.30 25.90

Milaha (QNNS QD) 96.00 UP UP 95.10 94.50 96.50 97.80