Page 1 of 5

Market Review and Outlook QE Index and Volume

The Qatar Exchange (QE) Index gained 261.68 points, or 1.86%, during

the week, to close at 14,350.50 points. Market capitalization increased by

2.0% to reach QR762.6 billion (bn) as compared to QR747.6bn at the end of

the previous week. Of the 43 listed companies, 31 companies ended the

week higher, while 12 fell. Islamic Holding Group (IHGS) was the best

performing stock for the week, with a gain of 11.4% on 1.6 million (mn)

shares traded; the stock is up 156.3% year-to-date (YTD). Ahli Bank

(ABQK) was the worst performing stock, with a decline of 1.5% on only

6,990 shares traded. The stock is still up 27.6% YTD.

During the week, QE announced that QE Index, QE All Share and

QE Al Rayan Islamic Index will be rebalanced effective October 1,

2014. Ezdan Holding Group (ERES) and Mazaya Qatar Real Estate

Development (MRDS) will replace Al Khalij Commercial Bank (KCBK)

and Al Meera Consumer Goods Company (MERS) in the Qatar

Exchange (QE) Index. ERES joins the QE Index after having recorded

a share velocity of 8.41% over the preceding 12 months (the stock

hadn’t previously met the 5% QE Index threshold). Aamal Company

(AHCS) and ERES will replace Widam Food Company (WDAM) and

Zad Holding Company (ZHCD) in the QE Al Rayan Islamic Index. In

the QE All Share Index, ERES, Mannai Corporation (MCCS) and

Mesaieed Petrochemical Holding Company (MPHC) were included.

Going Forward from October 1, 2014, all 43 listed stocks will be

included in the QE All Share Index and related sector index

calculations.

Trading value during the week decreased by 9.9% to reach

QR3.3bn vs. QR3.7bn in the prior week. The Banks & Financial

Services sector led the trading value during the week, accounting for

42.0% of the total equity trading value. Ezdan Holding (ERES) was the

top value traded stock during the week with total traded value of

QR494.4mn.

Trading volume decreased by 3.0% to reach 80.8mn shares vs.

83.3mn shares in the prior week. The number of transactions fell by

5.2% to reach 33,675 transactions versus 35,532 transactions in the

prior week. The Real Estate sector led the trading volume, accounting

for 39.9%. ERES was the top volume traded stock during the week with

total traded volume of 24.9mn shares.

Foreign institutions remained bullish during the week with net

buying of QR263.9mn vs. QR49.3mn in the prior week. Qatari

institutions turned bearish with net selling of QR288.4mn vs. net buying

of QR104.1mn the week before. Foreign retail investors remained

bearish for the week with net selling of QR57.9mn vs. net selling of

QR45.6mn in the prior week. Qatari retail investors turned bullish with

net buying of QR82.8mn vs. net selling of QR107.7mn the week

before. Thus far in 2014, the QE has already witnessed net foreign

portfolio investment inflow of ~$2.4bn.

Market Indicators Week ended

Sep. 18, 2014 Week ended

Sep. 11, 2014 Chg. %

Value Traded (QR mn) 3,311.4 3,676.9 (9.9)

Exch. Market Cap. (QR mn) 762,567.6 747,640.6 2.0

Volume (mn) 80.8 83.3 (3.0)

Number of Transactions 33,675 35,532 (5.2)

Companies Traded 43 43 0.0

Market Breadth 31:12 27:13 –

Market Indices Close WTD% MTD% YTD%

Total Return 21,403.63 1.9 5.5 44.3

All Share Index 3,621.54 1.8 5.3 40.0

Banks/Financial Svcs. 3,527.80 2.1 6.3 44.4

Industrials 4,760.98 1.5 4.4 36.0

Transportation 2,368.76 (0.6) 3.2 27.5

Real Estate 3,001.72 0.6 4.1 53.7

Insurance 4,178.85 0.4 1.8 78.9

Telecoms 1,752.24 5.7 11.6 20.5

Consumer 7,584.22 1.0 2.0 27.5

Al Rayan Islamic Index 4,843.47 1.6 3.2 59.5

Market Indices Weekly Index Performance

Regional Indices Close WTD% MTD% YTD% Weekly Exchange

Traded Value ($ mn) Exchange Mkt.

Cap. ($ mn) TTM P/E** P/B** Dividend Yield

Qatar (QE)* 14,350.50 1.9 5.5 38.3 909.35 209,401.1 17.9 2.4 3.5

Dubai 5,097.82 2.8 0.7 51.3 1,504.82 97,991.6 21.2 1.9 1.9

Abu Dhabi 5,233.18 1.0 3.0 22.0 480.65 142,132.7 14.9 1.8 3.2

Saudi Arabia# 11,080.92 0.2 (0.3) 29.8 12,992.43 601,659.4 21.3 2.7 2.5

Kuwait 7,598.36 1.5 2.3 0.6 610.05 113,735.7 19.5 1.2 3.6

Oman 7,504.87 (0.5) 1.9 9.8 91.65 27,488.0 11.3 1.7 3.7

Bahrain 1,467.05 (0.1) (0.3) 17.5 21.62 54,331.0 11.4 1.0 4.6

Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any) (#Data as of September 17, 2014)

14,109.16 14,137.33 14,137.67

14,165.05

14,350.50

0

15,000,000

30,000,000

13,950

14,175

14,400

14-Sep 15-Sep 16-Sep 17-Sep 18-Sep

Volume QE Index

2.8%1.9% 1.5% 1.0%

0.2%

(0.1%) (0.5%)

(4.0%)

0.0%

4.0%

Dubai

Qata

r (Q

E)*

Kuw

ait

Abu D

habi

Saud

i Ara

bia

Bah

rain

Om

an

Page 2 of 5

News

Market & Corporate News

Ezdan, Mazaya to be included in QE Index – QE Index, All

Share and QE Al Rayan Islamic Index will be rebalanced effective October 1, 2014. Ezdan Holding Group (ERES) and Mazaya Qatar Real Estate Development (MRDS) will replace Al Khaliji Commercial Bank (KCBK) and Al Meera Consumer Goods Company (MERS) in the Qatar Exchange (QE) Index. ERES joins the QE Index after having recorded a share velocity of 8.41% over the preceding 12 months (the stock hadn’t previously met the 5% QE Index threshold). Aamal Company (AHCS) and ERES will replace Widam Food Company (WDAM) and Zad Holding Company (ZHCD) in the QE Al Rayan Islamic Index. The basket is re-structured based on the ranking of a company’s liquidity adjusted capitalization. The QE also conducted the scheduled review of qualifying stocks for the QE All Share Index, which contains listed stocks with an annual share velocity greater than 1%. ERES, Mannai Corporation (MCCS) and Mesaieed Petrochemical Holding Company (MPHC) will join the QE All Share Index. All 43 listed stocks will be included in the QE All Share Index and related sector index calculation from October 1, 2014. (QE)

UDCD to borrow from CBQK to repay DHBK loan – United

Development Company (UDCD) is borrowing QR629mn from Commercial Bank of Qatar (CBQK) to repay an existing loan of the same amount from Doha Bank (DHBK). According to the statement on the QE Website, this will help in reducing the interest expense for UDCD. (QE)

GDI signs QR825mn rig deal with Keppel FELS – Gulf

Drilling International (GDI), a wholly-owned subsidiary of Gulf International Services (GISS), has signed a construction pact with Singapore-based Keppel FELS for a new jack-up drilling rig ‘Halul’ at an estimated cost of QR825mn. The new jack-up drilling rig is scheduled for delivery in 1Q2016. Halul will have accommodation facilities for 150 persons and a cantilever outreach of 70 feet and be rated for 300 feet water depth and a drilling depth of 30,000 feet. The rig will be enabled by an offline stand building and comes equipped with all the features, facilities and equipment. Halul will become the fifth KFELS B Class designed rig in GDI’s fleet. Upon delivery in 2016, it will join Qatar Petroleum’s offshore operation as the fourth jack-up rig supplied by GDI. (Gulf-Base.com)

MARK transfers ownership of Al Rayan Partners – Masraf

Al Rayan (MARK) announced to its shareholders that the process of transferring the ownership of Al Rayan Partners company from Al Rayan Investment LLC to be owned by MARK has been completed in accordance with the MARK’s Board Decision and its plan to restructure its group companies. MARK’s Board of Directors saw it suitable that Al Rayan Investment (which is fully owned by MARK) to focus on its core business: investment and financial advisory activities. Accordingly, the decision was made to transfer the ownership of Al Rayan Partners to MARK, where its engineering department will manage Al Rayan Partners operations as it has the expertise. Meanwhile, MARK’s management is also studying the potential to convert the ownership of its share in Linc Facility Services company to the ownership of Al Rayan Partners due to the similar nature of their activities. (QE)

ORDS announces date to pay interest to GMTN holders –

Ooredoo (ORDS) has announced that its wholly owned subsidiary, Ooredoo International Finance Limited (OIFL) will pay both principal and interest payments to its global medium-term note (GMTN) holders. OIFL will pay GMTN holders

$16.9mn on interest payment, which is due on October 14, 2014, and $18.8mn on interest payment that is due on October 20, 2014. (QE)

QNBK acquires additional 11% stake in Ecobank for $283mn – QNB Group (QNBK) has acquired an additional

holding of 11.0% in Ecobank Transnational Incorporated (Ecobank). QNB Group’s total stake in Ecobank is now 23.5% (The two stakes include the current outstanding ordinary shares and the conversion of QNB’s convertible preference shares). The cost of this additional holding was equivalent to $283mn. The acquisition was funded through existing resources and QNBK will account for Ecobank as an Associate in accordance with International Financial Reporting Standards. QNB Capital and Morgan Stanley are acting as financial advisors to QNB in relation to this transaction. This enables QNB Group to become the largest shareholder whilst strengthening the partnership with Ecobank, a leading pan-African bank and is a fundamental step towards QNB’s strategy of being a MEA Icon by 2017. (QNB Group Press Release)

S&P to move Qatar, UAE stocks to emerging indices on September 22 – Ratings agency Standard & Poor's (S&P) said

S&P Dow Jones will move Greek stocks into emerging indices on September 22, while formally upgrading Qatar and the UAE from frontier indices to emerging markets. S&P's decision to re-classify the three countries as emerging markets was announced on October 2013, which came after similar moves by rival index provider, MSCI. In November 2013, MSCI moved Greece to emerging markets from its developed indices and re-classified Qatar and the UAE as emerging markets at the end of May 2014. S&P said Greece and Qatar would carry weights of 0.8% and 0.9% of the S&P emerging markets BMI index, while the UAE would have 1.0%. (Reuters)

Qatar Re sees 60% jump in gross premiums to $550mn in 2014 – Qatar Re, a wholly-owned subsidiary of Qatar Insurance

Company (QATI), which is slated to become a global multi-line reinsurer, is expecting its gross premiums to grow more than 60% to $550mn by the end of 2014. The company is expanding into liability and facultative property lines of business and is growing its presence in the Americas and Asia. At present, agriculture, credit and surety, energy, marine, aviation and engineering businesses account for about a third of the company’s portfolio. Property (17%), motor liability (30%) and Lloyd’s third-party capacity (20%) complete the company’s well-diversified book of business. Geographically, Qatar Re has built a far more balanced portfolio. As of June 30, 2014, its European business accounted for more than 50% of the company’s portfolio, followed by the Americas (25%), Asia (17%), Africa (3%) and Oceania (3%). (Gulf-Times.com)

NDSQ hopes to double its workforce – Nakilat Damen

Shipyards Qatar’s (NDSQ) Managing Director Jan-Wim Dekker stated the company hopes to double the number of its workers from 900 to about 1,800 in the coming years in order to cope with the expanding maritime industry in Qatar. According to Dekker, the company recently completed building new 22 vessels and has done 14 refits on its yards. NDSQ also built two 16-meter long mooring boats for towage operator Nakilat-SvitzerWijsmuller (NSW). These vessels will work on a long-term charter for Qatar Petroleum and will be part of the growing fleet of NSW vessels in the Port of Ras Laffan. (Gulf-Times.com)

Page 3 of 5

Qatar Exchange

Top 5 Gainers Top 5 Decliners

Source: Qatar Exchange (QE)

Source: Qatar Exchange (QE)

Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million)

Source: Qatar Exchange (QE)

Source: Qatar Exchange (QE)

Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million)

Source: Qatar Exchange (QE)

Source: Qatar Exchange (QE)

11.4%

6.8%

5.9%

3.8%3.4%

0.0%

4.0%

8.0%

12.0%

Islamic Holding Group

Ooredoo Qatar International Islamic Bank

Qatar & Oman Investment

Qatar Islamic Insurance

-1.5%-1.4% -1.4%

-1.2%-1.1%

-2.0%

-1.4%

-0.8%

-0.2%

Al Ahli Bank Widam Food Co.

Al Meera Consumer

Goods

Gulf Warehousing

National Leasing

494.4

265.8248.9

211.0197.1

0.0

200.0

400.0

600.0

Ezdan Real Estate

Qatar International Islamic Bank

Masraf Al Rayan

QNB Group Industries Qatar

24.9

7.1

4.9 4.4 4.4

0.0

9.0

18.0

27.0

Ezdan Real Estate

Vodafone Qatar Salam International Investment

Qatar & Oman Investment

Masraf Al Rayan

0%

20%

40%

60%

80%

100%

Buy Sell

45.01% 42.51%

19.50% 28.21%

14.04%15.79%

21.46%13.49%

Qatari Individuals Qatari Institutions

Non-Qatari Individuals Non-Qatari Institutions

2,136

1,176

2,342

970

(206)

206

(500) - 500 1,000 1,500 2,000 2,500

Qatari

Non-Qatari

Net Investment Total Sold Total Bought

Page 4 of 5

TECHNICAL ANALYSIS OF THE QE INDEX

Source: Bloomberg

The QE Index showcased yet another enthusiastic performance and ended the week at a record new high above the 14,350.0 mark. The index registered

gains on every single trading session with not even an iota of profit booking, as it fervently gained strength to strength. The index has been on a steep

ascent since July and has not looked back since then. Moreover, the index has been forming higher tops and higher bottoms, and is moving along the

ascending trendline. We believe the index is in the bull-run mode and will maintain its positive momentum further to tag new highs, as it is currently moving

in an unchartered territory with no resistance. On the flip side, 14,300.0 and 14,150.0-14,200.0 may act as immediate support zones. Meanwhile, the RSI is

moving strongly into the overbought territory, while the MACD is diverging away from the signal line in a bullish manner, indicating the index may continue

its acceleration further.

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.

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 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 5 of 5

Source: Bloomberg

Company Name

Price

(September 18)

% Change

5-Day

% Change

YTD

Market Cap.

QR Million TTM P/E P/B Div. Yield

Qatar National Bank 213.00 2.50 23.84 149,042 15.2 2.8 3.3

Qatar Islamic Bank 120.00 2.48 73.91 28,355 20.0 2.4 3.3

Commercial Bank of Qatar 73.80 0.41 25.08 21,914 13.7 1.3 2.3

Doha Bank 62.60 0.64 7.56 16,174 11.3 1.5 7.2

Al Ahli Bank 54.00 (1.46) 27.64 8,921 16.0 2.3 N/A

Qatar International Islamic Bank 94.60 5.94 53.32 14,319 18.2 2.8 4.0

Masraf Al Rayan 57.40 1.95 83.39 43,050 24.1 4.2 2.6

Al Khaliji Bank 22.90 1.33 14.56 8,244 15.8 1.5 4.4

National Leasing 28.10 (1.06) (6.80) 1,390 33.4 1.1 5.3

Dlala Holding 65.00 1.88 194.12 1,443 18.3 5.3 N/A

Qatar & Oman Investment 18.37 3.79 46.73 579 23.5 1.7 3.3

Islamic Holding Group 117.90 11.44 156.30 472 38.7 7.9 1.4

Banking and Financial Services 293,903

Zad Holding 90.20 0.22 29.78 1,180 10.9 1.5 3.9

Qatar German Co. for Medical Devices 13.99 1.75 1.01 162 N/M 1.0 N/A

Salam International Investment 20.19 0.95 55.19 2,308 16.1 1.4 5.0

Medicare Group 130.50 0.31 148.57 3,673 29.3 4.5 1.4

Qatar Cinema & Film Distribution 49.25 2.07 22.82 281 24.0 2.1 N/A

Qatar Fuel 226.00 1.89 3.41 19,088 16.0 3.1 3.4

Qatar Meat and Livestock 65.00 (1.37) 25.73 1,170 20.8 4.8 3.2

Al Meera Consumer Goods 187.40 (1.37) 40.59 3,748 14.5 2.9 4.3

Consumer Goods and Services 31,609

Qatar Industrial Manufacturing 48.50 1.89 15.02 2,305 11.4 1.5 N/A

Qatar National Cement 146.40 2.38 23.03 7,188 16.4 2.9 4.1

Industries Qatar 198.00 2.06 17.23 119,790 19.1 4.0 5.6

Qatari Investors Group 60.80 2.70 39.13 7,559 33.0 3.5 1.2

Qatar Electricity and Water 196.50 2.61 18.83 21,615 14.8 3.6 3.5

Mannai Corp. 115.80 (0.43) 28.81 5,283 9.4 2.7 4.7

Aamal 16.16 (0.86) 7.73 9,696 18.1 1.4 N/A

Gulf International Services 126.00 (0.08) 158.20 23,416 27.6 7.2 1.3

Mesaieed Petrochemical Holding 34.00 0.89 N/A 42,715 N/A 3.1 1.0

Industrials 239,567

Qatar Insurance 99.90 (0.10) 87.78 16,038 16.4 3.0 2.0

Doha Insurance 36.00 2.86 44.00 1,800 12.5 1.8 5.6

Qatar General Insurance & Reinsurance 47.70 0.21 19.50 3,300 2.3 0.7 2.6

Al Khaleej Takaful Insurance 47.40 (0.32) 68.82 1,052 12.3 1.6 N/A

Qatar Islamic Insurance 90.90 3.41 56.99 1,364 16.3 4.8 4.1

Insurance 23,553

United Development 29.95 1.01 39.09 10,605 21.4 1.0 3.2

Barw a Real Estate 42.65 0.24 43.12 16,596 12.8 1.2 4.7

Ezdan Real Estate 19.99 2.51 17.59 53,023 41.0 1.8 1.6

Mazaya Qatar Real Estate Development 24.90 1.59 122.72 2,490 13.9 2.1 3.0

Real Estate 82,714

Qatar Telecom 139.60 6.81 1.75 44,717 17.9 1.8 2.9

Vodafone Qatar 22.40 2.75 109.15 18,937 N/M 3.3 0.8

Telecoms 63,654

Qatar Navigation (Milaha) 97.00 (0.61) 16.87 11,109 12.3 0.9 5.2

Gulf Warehousing 51.80 (1.15) 24.82 2,464 21.0 3.1 2.9

Qatar Gas Transport (Nakilat) 24.99 (0.44) 23.41 13,994 17.0 3.8 4.4

Transportation 27,567

Qatar Exchange 762,568