1

DAILY MARKET UPDATE

April 30, 2018

GLOBAL MARKETS

Indices Closing

Level

Change Performance

Value (%) MTD (%) YTD (%)

Global

S&P 500 2,669.9 3.0 0.1 1.1 (0.1)

Dow Jones Ind. Average 24,311.2 (11.2) (0.1) 0.9 (1.7)

Nasdaq 6,656.4 6.7 0.1 1.1 4.1

FTSE 100 7,502.2 80.8 1.1 6.3 (2.4)

DAX 30 12,580.9 80.4 0.6 4.0 (2.6)

CAC 40 5,483.2 29.6 0.5 6.1 3.2

BIST 100 107,614.3 599.2 0.6 (6.4) (6.7)

Nikkei 22,467.9 148.3 0.7 4.7 (1.3)

Hang Seng 30,280.7 273.0 0.9 0.6 1.2

Shanghai Composite 3,082.2 7.2 0.2 (2.7) (6.8)

BSE Sensex 34,969.7 256.1 0.7 6.1 2.7

GCC

QE Index 9,140.2 52.2 0.6 6.6 7.2

Saudi Arabia (TASI) 8,224.9 (23.5) (0.3) 4.5 13.8

UAE (ADX) 4,685.4 (11.8) (0.3) 2.2 6.5

UAE (DFM) 3,048.5 5.6 0.2 (1.9) (9.5)

Kuwait (KSE) 4,781.8 (21.2) (0.4) (3.7) NA

Oman (MSM) 4,734.4 12.0 0.3 (0.8) (7.2)

Bahrain (BAX) 1,262.8 (0.3) (0.0) (4.2) (5.2)

S&P GCC 1,682.9 (0.4) (0.0) 1.9 5.7

Dow Jones Islamic 3,636.5 0.0 0.0 0.6 0.0

Commodity

Brent (USD/bbl) 74.6 (0.1) (0.1) 5.5 10.9

WTI (USD/bbl) 68.1 (0.1) (0.1) 4.5 12.3

Natural Gas (USD/mmBTU) 2.8 (0.1) (1.8) 1.3 (6.2)

Gold Spot (USD/t oz.) 1,323.4 7.1 0.5 0.0 1.1

Copper (USD/lb) 304.6 (6.8) (2.2) 0.6 (7.8)

Source: Bloomberg

MARKET COMMENTARY

Global

The US equity markets ended mostly higher on Friday, following release of a strong set of earnings data from local companies. The tech heavy Nasdaq inched 0.1%, higher, supported by gains in blue-chip Technology shares. The S&P 500 index closed moderately higher, on the back of gains in Real Estate and Utilities sectors.

The Stoxx Europe 600 inched 0.2% higher, supported by weakness in the EUR. The FTSE 100 rose by 1.1%, as discouraging UK GDP data weighed on the GBP, supporting the earnings prospects of the exporters listed on the benchmark.

In Asia, Japanese benchmark Nikkei inched 0.7% higher, getting a boost from Chip-related firms, after sector heavy-weights Advantest and Kyocera provided an encouraging outlook on their future earnings.

GCC

Most GCC indices ended lower yesterday. The Saudi Arabian index continued its downward trend to inch 0.3% lower, as blue chip SABIC lost 0.6% despite reporting a 5.4% rise in Q1-18 net profit. Alinma Bank slipped 0.6%, despite reporting a 38.0% YoY increase in its Q1-18 net income. In Dubai, Emaar Malls rose 1.3%, after the company reported an increase in its Q1-18 net income. In Abu Dhabi, energy producer Dana Gas dropped 5.0%, pushing the index down by 0.2%.

Qatar

The QE index inched 0.6% higher yesterday, supported by strong buying activity by domestic institutional buyers. Trade turnover and volumes rose, with Industrials, Real Estate and Banking sectors together accounting for about 79.0% of the total volume. Industries Qatar rose 3.7% after posting a 37.0% YoY increase in its Q1-18 net profit, beating the markets estimates. Out of the 45 listed stocks, 43 exchanged hands of which, 30 advanced and 13 declined.

QATAR MARKET OVERVIEW

GCC Fundamentals P/E (x)

P/B (x)

Dividend Yield (%)

Value Traded (USD mn)

Qatar All share 13.8 1.3 4.3 54.1

DSM 20 13.6 1.4 4.8 30.2

Saudi Arabia (TASI) 18.1 1.8 3.3 1,290.3

UAE (ADX) 12.5 1.3 5.2 48.5

UAE (DFM) 10.5 1.1 6.0 33.0

Kuwait (KSE) 14.3 1.2 3.9 31.5

Oman (MSM) 11.8 1.0 5.1 6.9

Bahrain (BAX) 8.1 0.8 6.5 1.7

Source: Bloomberg

Qatar Trading Activity Close Price

1D Change Performance Vol. (‘000)

P/E TTM Value (%) YTD (%) YoY (%)

Top Gainers

Qatari Investors Group 36.1 1.5 4.4 (1.3) (36.8) 206.3 17.8

Industries Qatar 112.0 4.0 3.7 15.4 6.5 115.6 18.5

Aamal Co 11.4 0.3 2.8 31.2 (13.6) 86.1 14.4

Qatar German Co 5.8 0.1 2.5 (11.0) (38.8) 7.8 NA

Mesaieed Petrochem 17.5 0.4 2.3 38.9 16.6 2,448.7 20.2

Top Losers

Qatar Navigation 58.1 (2.4) (3.9) 3.9 (17.0) 77.5 13.4

Barwa Real Estate Co 36.0 (0.7) (1.8) 12.5 6.2 118.5 8.6

Qatar General Ins. 47.0 (0.5) (1.1) (4.1) 20.2 5.0 11.5

Qatar Industrial Manu 38.7 (0.3) (0.8) (11.4) (12.0) 13.8 9.4

Islamic Holding Group 26.8 (0.2) (0.7) (28.5) (55.5) 15.2 NA

Source: Bloomberg; Note: Prices are in local currency.

Qatar DSM Index

Source: Bloomberg

QE Sector Indices Closing Level 1D Change (%)

Banks & Financial Services 3,099.0 0.0

Consumer Goods & Services 5,916.8 0.6

Industrials 3,119.2 2.5

Insurance 3,115.4 (0.1)

Real Estate 1,959.5 0.9

Telecoms 1,104.4 0.9

Transportation 1,805.0 (1.1)

Source: Qatar Exchange

Qatar Trading Summary Buy (%) Sell (%)

Qatari Individuals 45.0 50.1

Qatari Institutions 28.7 22.3

Qatari – Total 73.7 72.4

Foreign Individuals 14.2 14.4

Foreign Institutions 12.1 13.2

Foreign – Total 26.3 27.6

Source: Qatar Stock Exchange, Bloomberg

9,140.2

0.0

10.0

20.0

8,000

8,500

9,000

9,500

31/Jan 14/Feb 28/Feb 14/Mar 28/Mar 11/Apr 25/Apr

Index Volume (mn) Index Value

2

DAILY MARKET UPDATE

April 30, 2018

US President Donald Trump has threatened to shut down the federal

government in September-18 if the Congress did not provide additional funding to build the wall on the border of Mexico. (Source:

Reuters)

China’s securities regulator has removed the restrictions limiting the ownership limit of single foreign investors up to 30.0% in securities ventures, either directly or through a partner. (Source: Reuters)

Australian new housing sales declined by 2.0% MoM and 2.2% YoY in March-18, recording three consecutive months of decline in sales volumes led by tighter lending policies for investors being imposed by APRA. (Source: Housing Industry Association)

India’s central bank with an aim to boost domestic market has removed its restriction on foreign investors to only invest in government and corporate bonds with tenures of three years or more. (Source: Reuters)

UAE’s Ministry of Climate Change and Environment in partnership with Delma Marine Industrial Supply & Marine Services Company has successfully installed 100 artificial caves at Jumeirah Fishing Harbour. (Source: Trade Arabia)

Dubai-based DP World has entered into a partnership with Virgin Hyperloop to launch a new international company DP World Cargospeed to provide hyperloop-enabled cargo systems for supporting the fast, sustainable and efficient delivery of palletized cargo. (Source: Trade Arabia)

Al Ahli Group’s CEO has announced that the inauguration of 20th Century Fox World theme park in Dubai has been postponed on account of oversupplied conditions in the market. (Source: Arabian

Business)

Dubai Electricity and Water Authority has entered into an agreement with the US-based General Electric worth AED 193.0mn (USD 53.0mn) for extending the period of the GE 9E gas turbines at E station at the Jebel Ali Power and Desalination Station. (Source: Trade Arabia)

Dubai based Road and Transport Authority has announced opening of three new bridges as part of Airport Street improvement project. (Source: Trade Arabia)

Dubai based Emirates National Oil Company plans to set up the fully functioning, futuristic service station which will be using multiple sources of energy, including solar, hydrogen and hydrocarbon at the upcoming Expo 2020 Dubai. (Source: Arabian Business)

Abu Dhabi is expected to sign an agreement with Vienna based integrated oil and gas company OMV worth USD 1.5bn for providing oil exploration services. (Source: Arabian Business)

Abu Dhabi based Mubadala Investment Company’s net profit has increased by 11.5% YoY to AED 10.7bn (USD 2.9bn) in FY-17 led by higher growth in Petrochemical and aluminum manufacturing segment. (Source: Trade Arabia)

Abu Dhabi based Al Hilal Bank PJSC has exposed an internal fraud worth more than AED 500.0mn (USD 136.0mn) which involved withdrawal of funds from dormant customer accounts by some employees. (Source: Trade Arabia)

National Bank of Ras Al Khaimah’s consolidated net profit increased by 32.6% YoY to AED 205.1mn (USD 56.0mn) for Q1-18, supported by drop in provisions for impairments and rise in net interest income and net income from Islamic banking activity. (Source: Gulf times)

Sharjah based Aries Group's Indywood Consortium is planning to invest USD 10.0bn in India and the Middle East as a part of its Vision 2020 strategy to open multiplex screens, home cinemas and animation/film schools in next five years. (Source: Arabian Business)

Saudi Arabia based petrochemicals producer Saudi Basic Industries Corporation has recorded a 5.4% YoY increase in its net profit to SAR 5.5bn (USD 1.5bn) in Q1-18 due to improvement in average sale prices and volumes of goods sold. (Source: Trade Arabia)

Saudi Arabia's Real Estate Investment Trusts have exceeded a market capitalization of USD 2.0bn with the number of listed REITs doubling to 12 in the last two quarters. (Source: Trade Arabia)

Saudi Arabia based real estate Company Jabal Omar Development has entered into a MoU with Abu Dhabi Financial Group for exploring new real estate development opportunities in Makkah and in Saudi Arabia. (Source: Trade Arabia)

Oman’s budget deficit declined to OMR 3.7bn in 2017, against OMR 5.3bn in 2016, driven by the government’s balanced financial control policy along with a strong growth in oil revenue during the year, according to Deputy Chairman of the Board of Governors of the Central Bank of Oman. (Source: Times of Oman)

Oman’s Minister of Heritage and Culture has laid the foundation stone for USD 7.0bn Duqm Refinery Project, a joint venture between Oman Oil Company and Kuwait Petroleum Corporation. (Source: Times of Oman)

Bahrain’s Gulf Air is expected to take delivery of four more Boeing 787-9 Dreamliners and two Airbus A320neo aircraft by the end of 2018. In addition to the London route, the Dreamliner will be operating on the Casablanca, Morocco services. (Source: Arabian Business)

Bahrain is expected to receive combat helicopters and aircraft missiles from US Department of Defense at an estimated cost of USD 911.4mn, according to a Pentagon agency. (Source: Trade Arabia)

Kuwait has provisionally agreed to extend the maturity of a USD 4.0bn deposit for Egypt for paying its foreign debts and financial commitments, according to the Governor of the Central Bank of Egypt. (Source: Ahramonline)

International Labor Organization (ILO) has set up an office in Doha as part of a three year technical agreement signed in October-17 by the Government of Qatar and the ILO to strengthen national labor laws and improve labor practices in the nation. (Source: Gulf times)

Qatar Tourism Authority’s chairman has announced that they have achieved a remarkable growth in its international markets, particularly in BRICS countries and are also expecting Qatar’s cruise tourism industry to double by 2020. (Source: Gulf times)

Qatar Petroleum has entered into a 15 years agreement with Vietnam to supply up to 2mn tons per year of liquefied petroleum gas and naphtha. (Source: Gulf times)

Considering the holy month of Ramadan and the ensuing summer, Qatar Islamic Bank has announced a new finance campaign to meet customers’ growing needs which includes offering a cash bonus of 1.0% of the total financing amount. (Source: Gulf times)

Qatar based developer United Development Company has reported a 9.8% YoY decline in its net profit to QAR 220.0mn due to the challenging economic conditions in Q1-18. (Source: Gulf times)

Qatar First Bank has reported a net loss of QAR 28.6mn in the Q1-18 over a revenue of QAR 92.3mn led by a challenging macroeconomic landscape. (Source: Gulf times)

Qatar Navigation recorded a 10.2% YoY increase in its net profit to QAR 260.0mn partly offset by low shipping rates and the knock-on effect on vessel valuations in the sectors of operations. (Source: Peninsula Qatar)

As part of the MoU signed by the Qatar Ports Management Company (Mwani Qatar) the Port of Sudan for developing the Port of Suakin, the company has send cranes and tow vessels to Suakin port. (Source: Qatar

Tribune)

GLOBAL NEWS

GCC NEWS

QATAR NEWS

3

DAILY MARKET UPDATE

April 30, 2018

FX RATES Currencies Value Currencies Value

EUR/USD 1.2160 USD/QAR 3.6415

USD/JPY 109.0500 EUR/QAR 4.4281

GBP/USD 1.3811 JPY/QAR 0.0334

USD/CHF 0.9877 GBP/QAR 5.0293

USD/CAD 1.2828 CHF/QAR 3.6868

AUD/USD 0.7581 CAD/QAR 2.8387

NZD/USD 0.7085 AUD/QAR 2.7606

USD/INR 66.1613 INR/QAR 0.0550

USD/TRY 4.0426 TRY/QAR 0.9008

USD/ZAR 12.3294 ZAR/QAR 0.2954

USD/BRL 3.4578 BRL/QAR 1.0531

Source: Bloomberg

INTERBANK OFFERING & US SWAP RATES Duration Overnight 1 Week 1 Month 3 Month 1 Year

LIBOR 1.70 1.75 1.91 2.36 2.78

EURIBOR (0.44) (0.38) (0.37) (0.33) (0.19)

QAIBOR 2.27 2.33 2.45 2.65 3.04

SAIBOR NA 1.92 2.07 2.38 2.77

EIBOR 1.53 1.74 2.00 2.47 3.16

BMIBOR 1.63 1.90 2.43 2.78 3.28

KIBOR NA NA 1.75 2.00 2.44

Source: Bloomberg

US Swap Rates

Source: Bloomberg

FX Commentary

The USD remained supported for most period of the Friday’s session, before ending marginally lower against a basket of currencies, with the dollar index settling at 91.512. Weakness in the USD was triggered after investors booked profits following the recent uptrend in the currency. The EUR weakened against USD extending its losses from Thursday’s session, as the European Central Bank’s Chief, Mario Draghi, did not provide any hints regarding the alteration of the central bank’s quantitative easing program in the coming period. Moreover, discouraging French and Spanish growth data also weighed on the common currency. The GBP weakened against USD to the lowest level since March-18, as preliminary reading of UK Q1-18 economic growth trailed market expectations.

SOVEREIGN YIELD CURVES & CDS SPREAD Qatar vs US Treasuries Yields

b Source: Bloomberg

5 Years CDS Spreads 6M Change 5 Years CDS Spread 6M Change

US 27.9 (0.4) Turkey 196.3 4.6

UK 17.9 (8.7) Brazil 171.2 (4.4)

Germany 11.1 (0.1) Egypt 277.4 (76.6)

France 18.3 (2.7) Abu Dhabi 64.7 0.6

Italy 89.0 (42.6) Bahrain 288.9 38.2

Greece 330.9 (189.3) Dubai 114.9 (22.8)

Russia 132.4 2.5 Qatar 89.6 (13.9)

Japan 25.8 (8.8) Saudi Arabia 89.4 5.3

Source: Bloomberg

ECONOMIC CALENDAR Time Country Event Period Survey Prior

11:00 Eurozone M3 Money Supply YoY Mar 4.10% 4.20%

12:00 Italy CPI EU Harmonized YoY Apr P 0.80% 0.90%

15:00 Germany CPI MoM Apr P (0.10%) 0.40%

15:00 Germany CPI YoY Apr P 1.50% 1.60%

03:30 Japan Nikkei Japan PMI Mfg Apr F - 53.3

Source: Bloomberg

GCC COMPANY RESULTS Company Name Revenues (mn) YoY (%) QoQ (%) Net Profit (mn) YoY (%) QoQ (%)

Industries Qatar 1,377.8 24.4 (5.3) 1,267.9 36.6 32.4

Qatar Navigation 697.8 7.7 (16.5) 259.8 10.0 142.6

United Development NA NA NA 214.5 (7.0) 109.2

Qatar General Insurance NA NA NA 50.8 18.0 (81.3)

Al Meera Consumer Goods NA NA NA 43.3 7.0 (24.4)

Zad Holding Co 316.8 19.4 (12.7) 49.8 1.0 (3.2)

Qatar & Oman Investment Co NA NA NA 5.4 (43.5) NA

Qatar Cinema & Film Distrib. 1.3 (42.8) (41.2) 2.7 (7.9) 757.3

First Abu Dhabi Bank NA NA NA 2,997.9 68.2 6.2

Source: Bloomberg; Note: All figures are in local currency

2.74% 2.91% 2.95% 2.99% 3.02%

1.57%1.93% 2.09% 2.25%

2.52%

0.0%

2.0%

4.0%

2 Yrs 5 Yrs 7 Yrs 10 Yrs 30 Yrs

Current Last Year

3.30%3.97% 4.22% 4.43% 5.02%

2.49% 2.80% 2.92% 2.96% 3.13%

0.0%

2.0%

4.0%

6.0%

2 Yrs 5 Yrs 7 Yrs 10 Yrs 30 YrsQatar US

4

DAILY MARKET UPDATE

April 30, 2018

QSE MAIN FINANCIAL INDICATORS (As on 26th April 2018)

Company Dividend Yield

(%) P/B Ratio

(x) P/E Ratio

(x) EPS

(QR) BV/Share

(QR) Stock Price

(QR) Company

Ahli Bank 3.1 1.2 10.2 3.0 25.2 31.0 االهلي

Comm. Bank of Qatar 2.8 0.9 24.1 1.5 42.1 35.9 التجاري

Dlala 0.0 0.2 19.0 0.6 48.6 11.2 داللة

Doha Bank 11.2 0.8 7.5 3.6 34.9 26.9 الدوحة بنك

Islamic Holding 3.7 1.1 (M) (س) (M) (س) القابضة اإلسالمية 27.0 24.0

Al khalij Commercial Bank 6.8 0.6 7.2 1.5 17.5 11.1 الخليجي

Rayan 5.6 2.1 13.3 2.7 17.6 36.0 الريان

National Leasing 5.2 0.5 153.5 0.1 20.1 9.6 االجارة

Qatar First Bank (QFC) 0.0 0.8 (M) (س) (M) (س) ل 6.1 7.7 QFC األو

Qatar Islamic Bank 4.0 1.7 10.5 10.2 64.7 106.8 المصرف

Intl. Islamic Bank 7.1 1.3 10.2 5.5 45.0 56.2 الدولي

QNB 4.0 2.3 10.4 14.5 66.7 150.1 الوطني قطر بنك

Qatar Oman 6.9 0.8 24.5 0.3 8.8 7.3 قطروعمان

Banks & Financial Services 4.5 1.7 11.1 5.8 38.4 - المالية والخدمات البنوك

Mannai Corp. 8.3 0.7 4.3 11.1 64.5 48.0 المناعي مجمع

Medicare 6.0 1.9 26.5 2.5 35.6 67.2 الرعاية

Al Meera 6.2 2.0 14.2 9.7 69.0 137.5 الميرة

Cinema 4.4 1.1 18.2 1.2 21.1 22.6 السينما

Qatar Fuel 5.8 1.9 14.2 9.7 71.1 138.0 للوقود قطر

Qatar German Co. Med 0.0 1.2 (M) (س) (M) (س) الطبية 5.6 4.7

Salam International 0.0 0.4 (M) (س) (M) (س) السالم 5.7 12.9

Widam 6.7 3.4 10.6 6.0 19.0 63.8 ودام

Zad Holding Company 9.3 0.6 4.6 15.2 116.2 70.0 زاد

Consumer Goods & Services 6.1 1.5 12.2 5.4 44.7 - االستهالكية والخدمات البضائع

Aamal 5.4 0.9 13.9 0.8 12.7 11.1 أعمال

Gulf International 0.0 0.9 40.5 0.5 19.8 18.5 الدولية الخليج

Investment Holding 4.4 0.5 11.6 0.5 10.5 5.7 ضة قاب ثمار ال ت س ا

Industries Qatar 4.6 1.9 19.7 5.5 56.6 108.0 قطر صناعات

Mesaieed 4.1 1.5 19.7 0.9 11.6 17.1 مسيعيد

Qatar Electricity & Water 3.9 2.4 13.4 14.7 81.7 197.0 وماء كهرباء

The Investors 2.2 1.6 17.0 2.0 21.4 34.6 المستثمرين

Ind. Manf. Co. 7.7 1.1 10.0 3.9 34.4 39.0 التحويلية

National Cement Co. 8.1 1.2 11.1 5.0 48.0 55.5 االسمنت

Industrials 4.4 1.7 17.4 2.4 25.0 - الصناعات

Alkhaleej Takaful 0.0 0.6 20.0 0.6 19.3 11.5 الخليج

Doha Insurance 5.8 0.6 15.4 0.8 20.8 13.0 الدوحة

Qatar Insurance 3.5 1.5 27.8 1.3 25.1 37.0 قطر

General Insurance 4.6 0.7 13.5 3.5 70.8 47.5 العامة

Islamic Insurance 6.6 2.3 12.8 4.1 23.4 52.9 االسالمية

Insurance 4.0 1.1 20.8 1.7 32.4 - التأمين

Barwa 6.8 0.8 8.3 4.4 48.6 36.7 بروة

Ezdan Holding 4.5 1.0 17.4 0.6 11.4 11.1 القابضة إزدان

Mazaya Qatar 0.0 0.6 29.3 0.2 12.8 7.1 قطر مزايا

United Dev. Company 8.6 4.8 8.5 1.7 3.0 14.6 للتنمية المتحدة

Real Estate 5.5 1.0 12.3 1.2 14.7 - العقارات

Ooredoo 4.4 1.1 13.0 6.1 72.2 79.6 كيوتل

Vodafone Qatar 0.0 1.8 (M) (س) (M) (س) قطر فودافون 9.3 5.3

Telecoms 3.4 1.2 18.7 1.5 23.7 - االتصاالت

Gulf warehousing Co 4.0 1.5 11.6 3.7 27.9 42.7 مخازن

Nakilat 6.9 0.9 9.6 1.5 15.7 14.6 ناقالت

Qatar Navigation 5.8 0.5 14.7 4.1 118.3 60.5 المالحة

Transportation 6.0 0.7 11.4 2.1 32.8 - النقل

Market 4.6 1.4 13.0 3.0 27.1 - Source: Qatar Exchange; Note: The above mentioned indicators were calculated according to the latest reliable financial data.

DISCLAIMER It is understood that any opinions expressed by Commercial Bank or its affiliates as to the commentary, market information, and future direction of prices of specific securities reflects the views of the individual analyst who issued them, and not necessarily represent the views of Commercial Bank or its affiliates in any way. In no event shall CBQ or its affiliates have any liability for any direct or indirect losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this materials or for any delays, inaccuracies, errors in, or omissions of the said information.