Qatar stock exchange - weekly market report

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Page 1 of 6
Market Review and Outlook QSE Index and Volume
The Qatar Stock Exchange (QSE) Index gained 505.86 points, or
4.46% during the week, to close at 11,347.15. Market
capitalization increased by 4.15% to reach QR623.8 billion (bn)
as compared to QR598.9bn at the end of the previous week. Of
the 43 listed companies, 33 companies ended the week higher,
while 10 fell. Ooredoo (ORDS)was the best performing stock for
the week, with a gain of 10.16% on 871,424 shares traded. On the
other hand, Doha Insurance Co. (DOHI) was the worst
performing stock with a decline of 5.32% on 41,603 shares
traded.
QNB Group (QNBK), Industries Qatar (IQCD) and Qatar Islamic
Bank (QIBK) were the primary contributors to the weekly index
gain. QNBK was the biggest contributor to the Index’s weekly
gain, adding 127.26 points to the Index. IQCD tacked on 65.88
points to the Index while QIBK contributed 55.80 points. On the
other hand, Commercial Bank of Qatar (CBQK) and Doha Bank
(DHBK) contributed negatively to the Index. CBQK and DHBK
erased 2.55 and 0.64 points from the Index, respectively.
Trading value during the week decreased by 14.78% to reach
QR1.99bn vs. QR2.34bn in the prior week. The Banks and
Financial Services sector led the trading value during the week,
accounting for 37.81% of the total trading value. The Industrial
sector was the second biggest contributor to the overall trading
value, accounting for 23.08% of the total trading value. QNBK was
the top value traded stock during the week with total traded
value of QR197.7mn.
Trading volume decreased by 19.50% to reach 46.57mn shares vs.
57.9mn shares in the prior week. The number of transactions
decreased by 4.86% to reach 27,037 transactions versus 28,419
transactions in the prior week. The Real Estate sector led the
trading volume, accounting for 34.42%, followed by the Banks
and Financial Services sector, which accounted for 23.34% of the
overall trading volume. Mazaya Qatar Real Estate Development
Co. (MRDS) was the top volume traded stock during the week
with total traded volume of 6.3mn shares.
Foreign institutions remained bullish during the week with net
buying of QR308.8mn vs. net buying of QR384.9mn in the prior
week. Qatari institutions remained bearish with net selling of
QR107.7mn vs net selling of QR211.7mn the week before.
Foreign retail investors remained bearish for the week with net
selling of QR78.4mn vs. net selling of QR20.4mn in the prior
week. Qatari retail investors remained bearish with net selling of
QR122.6mn vs. net selling of QR152.5mn the week before. In
2015 YTD, foreign institutions bought (on a net basis) ~$615mn
worth of Qatari equities.
Market Indicators
Week ended Sept.
10, 2015
Week ended Sept.
03, 2015
Chg. %
Value Traded (QR mn) 1,993.7 2,339.6 (14.8)
Exch. Market Cap. (QR mn) 623,779.2 598,911.7 4.2
Volume (mn) 46.6 57.9 (19.5)
Number of Transactions 27,037 28,419 (4.9)
Companies Traded 43 43 0.0
Market Breadth 33:10 10:32 –
Market Indices Close WTD% MTD% YTD%
Total Return 18,423.80 4.5 2.5 0.5
All Share Index 3,138.51 4.0 2.1 (0.4)
Banks/Financial Svcs. 3,222.88 4.8 4.5 0.6
Industrials 3,590.71 4.0 0.7 (11.1)
Transportation 2,490.14 6.1 4.6 7.4
Real Estate 2,688.85 2.3 (0.7) 19.8
Insurance 4,659.74 1.4 (1.2) 17.7
Telecoms 1,011.76 7.6 5.0 (31.9)
Consumer 6,784.49 1.3 (1.0) (1.8)
Al Rayan Islamic Index 4,492.00 4.2 1.6 9.5
Market Indices
Weekly Index Performance
Regional Indices Close WTD% MTD% YTD%
Weekly Exchange
Traded Value ($ mn)
Exchange Mkt.
Cap. ($ mn)
TTM P/E** P/B** Dividend Yield
Qatar (QSE)* 11,853.01 4.5 2.5 (3.5) 547.50 171,352.1 12.2 1.8 4.3
Dubai 3,621.25 1.4 (1.1) (4.0) 489.85 94,439.7# 11.7 1.1 7.2
Abu Dhabi 4,537.56 3.6 1.0 0.2 252.92 123,402.7 12.1 1.4 5.0
Saudi Arabia# 7,748.92 4.9 3.0 (7.0) 6,869.54 462,758.3 16.6 1.8 3.4
Kuwait 5,764.92 0.1 (1.0) (11.8) 229.30 89,124.8 14.7 1.0 4.5
Oman 5,800.99 0.9 (1.2) (8.5) 46.00 23,590.1 10.6 1.4 4.5
Bahrain 1,290.90 (0.7) (0.6) (9.5) 127.37 20,191.4 8.2 0.8 5.3
Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any; # Data as of September 09, 2015)
11,277.66
11,319.98
11,430.47
11,659.42
11,853.01
0
8,000,000
16,000,000
10,900
11,400
11,900
6-Sep 7-Sep 8-Sep 9-Sep 10-Sep
Volume QSEIndex
4.9% 4.5%
3.6%
1.4%
0.9%
0.1%
(0.7%)
(1.0%)
1.0%
3.0%
5.0%
SaudiArabia
Qatar(QSE)*
AbuDhabi
Dubai
Oman
Kuwait
Bahrain

2. Page 2 of 6
News
Economic News
 NB Group: Non-hydrocarbon investments to drive Qatar real GDP
growth – QNB Group (QNBK) in its Qatar Economic Insight has
said that Qatar’s real GDP growth is expected to accelerate to
4.7% in 2015 and 6.4% in both 2016 and 2017 as the government
expands its investment spending program in the non-
hydrocarbon sector. According to the report, Qatar is well-
positioned to withstand lower oil prices thanks to its strong
macroeconomic fundamentals, including relatively low fiscal
breakeven price, accumulation of significant savings from the past
and low levels of public debt. Oil prices are also expected to stay
lower for longer, averaging $55 per barrel in 2015-16 on
oversupplied markets, before rising to $60 in 2017 as US shale
output growth weakens. Inflation is expected to remain subdued
in 2015 as international food prices continue to fall due to
slowing demand growth and the build-up in stocks after good
global harvests. Domestic inflation is expected to remain weak in
2015, despite strong population growth, as additional housing
units are lowering housing inflation. Overall inflation is projected
to pick up in 2016 and 2017 owing to the expected recovery in
food prices in 2016 and higher oil prices in 2017. Meanwhile,
QNBK said that Qatar’s international reserves rose to $43.8bn in
July 2015 from $42bn in June. In terms of months of prospective
import cover, international reserves rose to 7.8 months of
imports from 7.5 months in June. QNBK expects accumulation of
international reserves to continue, reaching $46bn, or eight
months of import cover at the end of 2015. The overall balance of
payments recorded a small deficit of $3.3bn in 1Q2015, leading to
a decrease in international reserves. The current account surplus
narrowed to $6.1bn (12.8% of GDP) in 1Q2015 on lower
hydrocarbon exports, the capital & financial account recorded a
deficit of $9.1bn in 1Q2015. QNBK expects Qatar’s current
account surplus to shrink in 2015, before stabilizing in 2016-17.
(Gulf-Times.com)
 Qatar vows to go ahead with major infrastructure projects – HE the
Finance Minister Ali Shareef Al-Emadi said Qatar is backed by a
strong national budget and cash reserves and it will not scale back
major infrastructure projects or cut food and fuel subsidies
despite declining oil prices. The Finance Minister stressed that
many of the government’s $200bn infrastructure projects are
already in the execution stage. On slashing fuel and other
subsidies, the Finance Minister said Qatar’s financial situation is
healthy and the country does not need to initiate extra measures.
Given the current fluctuation in global prices, which makes it
difficult to predict future oil prices, Al-Emadi said Qatar will
continue its conservative fiscal policies on maximizing utilization
of available financial resources; increase efficiency in public
expenditure, and ensure the implementation of the budget as
planned. In addition, he also said the government will continue to
implement capital expenditure plans on major health, education,
and infrastructure projects, the implementation of 2022 FIFA
World Cup related-projects, support growth in non-oil sectors and
expand private sector participation in different economic
activities. The Finance Minister added that Qatar’s private sector
will be the key driver of the country’s future growth. Qatar will
continue to see growth and the country will rely more on the
private sector. (Gulf-Times.com, Peninsula Qatar)
Market & Corporate News
 Nakilat raises foreign ownership limit to 49% – Qatar Gas
Transport Co. (Nakilat) announced its decision to raise foreign
ownership limit to 49%, from the existing 25%. An extraordinary
general meeting (EGM) of the Qatari marine transport company
agreed to raise its non-Qatari ownership limit, among a number of
amendments to the company’s Articles of Association. According
to the decision, Qatari governmental institutions, Qatari non-for-
profit organizations, Qatari governmental pension and
investments funds can own a percentage of share capital up to
five percent of the company’s total shares. (Peninsula Qatar)
 Boeing, QNB Group facilitate growth of Qatar aircraft financing
sector – Aircraft manufacturer Boeing and Qatar National Bank
(QNB Group) hosted an aircraft financier and investor roundtable
in Doha, bringing together a number of representatives from
financial institutions in Qatar and the region to discuss the
current aircraft finance market, forecast airplane deliveries and to
learn more about aircraft financing. Boeing's latest commercial
aviation market outlook forecasts demand for 3,180 new
airplanes for the Middle East region over the next 20 years, worth
around $730bn. QNB Group has been leading the way in aircraft
financing in the GCC region. QNB group has been instrumental in
arranging financing for a number of airlines in the GCC and EU
with the partnership of banks across the globe. (Peninsula Qatar)
 AHCS expands into maritime transportation with AMTS – Aamal
Company (AHCS) has established a new subsidiary – Aamal for
Maritime Transportation Services (AMTS). AMTS will take
ownership of vessels initially to transport aggregates from Al
Fujairah in the UAE to Mesaieed Industrial City in Qatar. AMTS
will ensure security of supply for AHCS-owned subsidiary Gulf
Rocks. In addition to meeting AHCS’ transportation requirements,
AMTS will make capacity available to third party operators to
optimize the vessels’ utilization rates and profitability. The
vessels are capable of shipping non-industrial commodities such
as grains as well as aggregates and similar industrial raw
materials. The commercial operations will start immediately as
the acquisition of the first vessel, a bulk carrier with a capacity of
56,726 tons, has been completed. AMTS will have an initial share
capital of QR0.2mn, which will be internally funded through cash,
and without any debt financing. AHCS will hold 1% of the shares
directly, with the remaining 99% held by Gulf Rocks. AHCS will
have an overall effective interest of 74.75% in AMTS. (QSE, Press
Release)
 New sponsorship law gets Cabinet approval – Qatar News Agency
(QNA) has reported that the Cabinet gave its nod for a law
regulating the entry, exit and residency of expatriates, popularly
known as the new sponsorship law, after reviewing the
recommendations of the Advisory Council on a draft law in this
regard. The bill includes provisions to regulate the procedures
and conditions of expatriates’ entry, exit, residency, recruitment
as well as changing of jobs from one employer to another. It also
refers to the responsibilities of the employer and the expatriate
worker. The Minister of Interior has been empowered to issue
residency permits to investors under the jurisdiction of the new
law. This step aims at regulating investment of non-Qatari capital
in the economic activity in the country. Owners and beneficiaries
of properties and residential buildings, in line with the law, are
entitled to residency permit without a sponsor. The Minister may
also grant residency permits to other categories based on a
Cabinet decision. (Gulf-Times.com)

3. Page 3 of 6
Qatar Stock Exchange
Top Gainers Top Decliners
Source: Qatar Stock Exchange (QSE)
Source: Qatar Stock Exchange (QSE)
Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million)
Source: Qatar Stock Exchange (QSE) Source: Qatar Stock Exchange (QSE)
Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million)
Source: Qatar Stock Exchange (QSE) Source: Qatar Stock Exchange (QSE)
10.2%
9.4%
8.0% 7.9%
7.2%
0.0%
4.0%
8.0%
12.0%
Ooredoo Gulf
Warehousing
Qatar Islamic
Bank
Qatar Gas
Transport
(Nakilat)
Qatari
Investors
Group
-5.3%
-1.8%
-1.4%
-1.1% -1.0%
-6.0%
-4.0%
-2.0%
0.0%
Doha Insurance National Leasing MannaiCorp. Al Ahli Bank Qatar National
Cement
197.7
180.2
168.5
160.1
133.7
0.0
70.0
140.0
210.0
QNB Group Barwa Real
Estate
Gulf
International
Services
Qatar Islamic
Bank
Masraf Al
Rayan
6.3
4.8
4.2
3.6 3.4
0.0
3.0
6.0
9.0
Mazaya Qatar Ezdan Real
Estate
Barwa Real
Estate
Qatar Gas
Transport
(Nakilat)
Vodafone
Qatar
0%
20%
40%
60%
80%
100%
Buy Sell
35.10% 41.25%
16.27%
21.67%
11.77%
15.70%
36.87%
21.38%
Qatari Individuals Qatari Institutions
Non-Qatari Individuals Non-Qatari Institutions
1,024
970
1,254
739
(230)
230
(500) - 500 1,000 1,500
Qatari
Non-Qatari
Net Investment Total Sold Total Bought

4. Page 4 of 6
TECHNICAL ANALYSIS OF THE QSE INDEX
Source: Bloomberg
The Index continued its recovery we mentioned last week. It gained 4.46% from the week before but on lower volumes. This bounce is expected to be met with
high resistance levels, starting from the 11,900 level to the 12,200 level. It should be noted that we are still in a bearish trend until this status quo changes. On a
different note, the closest support is going to be around the 11,300 level.
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.

5. Page 5 of 6
Source: Bloomberg
Company Name
Price
(Sept 10)
% Change 5-
Day
% Change
YTD
Market Cap.
QR Million TTM P/E P/B Div. Yield
Qatar National Bank 195.80 6.12 (8.03) 137,007 12.5 2.4 3.8
Qatar Islamic Bank 120.00 8.01 17.42 28,355 16.2 2.0 3.5
Commercial Bank of Qatar 55.70 (0.54) (10.55) 18,193 9.7 1.1 5.7
Doha Bank 51.00 (0.20) (10.53) 13,177 9.6 1.0 7.8
Al Ahli Bank 46.60 (1.06) (6.12) 8,468 13.3 2.0 2.9
Qatar International Islamic Bank 79.00 6.18 (3.30) 11,958 13.9 2.3 5.1
Masraf Al Rayan 44.85 5.41 1.47 33,638 16.0 3.4 3.9
Al Khaliji Bank 21.49 2.33 (2.54) 7,736 12.7 1.3 4.7
National Leasing 16.70 (1.76) (16.50) 826 N/A 0.7 5.1
Dlala Holding 20.35 5.06 (39.14) 578 N/A 2.0 N/A
Qatar & Oman Investment 13.70 1.48 (11.04) 432 6.7 1.2 5.8
Islamic Holding Group 118.20 3.23 (5.06) 473 32.5 7.6 2.5
Banking and Financial Services 260,841
Zad Holding 91.60 0.11 9.05 1,198 10.4 1.5 4.4
Qatar German Co. for Medical Devices 13.78 1.70 35.76 159 N/A 1.0 N/A
Salam International Investment 12.41 0.08 (21.70) 1,419 18.2 0.9 4.8
Medicare Group 168.50 2.12 44.02 4,742 24.1 5.4 1.1
Qatar Cinema & Film Distribution 39.50 0.51 (1.25) 248 19.1 1.8 2.3
Qatar Fuel 155.90 1.76 (23.69) 13,167 11.5 2.0 5.8
Qatar Meat and Livestock 54.00 2.86 (10.60) 972 15.8 4.1 4.6
Al Meera Consumer Goods 254.20 (0.51) 27.10 5,084 23.7 3.9 3.5
Consumer Goods and Services 26,990
Qatar Industrial Manufacturing 43.65 4.43 0.69 2,074 12.5 1.4 6.9
Qatar National Cement 102.00 (0.97) (15.00) 5,509 13.0 2.1 3.6
Industries Qatar 135.00 5.39 (19.64) 81,675 13.8 2.6 5.2
Qatari Investors Group 49.00 7.22 18.36 6,092 26.1 2.6 1.5
Qatar Electricity and Water 218.00 3.81 16.27 23,980 15.0 3.6 3.4
Mannai Corp. 94.40 (1.36) (13.39) 4,306 8.8 2.0 6.4
Aamal 13.84 2.06 (4.33) 8,719 13.8 1.2 6.9
Gulf International Services 62.00 6.35 (36.15) 11,522 7.4 3.1 8.9
Mesaieed Petrochemical Holding 20.93 (0.76) -29.1 26,295 20.3 1.9 5.3
Industrials 170,173
Qatar Insurance 97.00 1.89 23.12 17,908 19.0 3.1 2.2
Doha Insurance 23.48 (5.32) (19.03) 1,174 13.2 1.1 4.3
Qatar General Insurance & Reinsurance 56.00 1.82 9.15 4,455 4.7 0.8 3.1
Al Khaleej Takaful Insurance 34.00 1.49 (23.03) 868 16.1 1.4 3.8
Qatar Islamic Insurance 74.50 (0.53) (5.70) 1,118 14.9 3.6 5.4
Insurance 25,523
United Development 23.74 3.99 0.64 8,406 12.3 0.8 5.3
Barw a Real Estate 44.00 3.65 5.01 17,121 2.8 0.9 5.0
Ezdan Real Estate 18.70 1.36 25.34 49,602 34.0 1.7 2.1
Mazaya Qatar Real Estate Development 16.36 5.07 (10.30) 1,718 10.0 1.3 1.7
Real Estate 76,847
Qatar Telecom 74.80 10.16 (39.63) 23,960 16.8 1.1 5.3
Vodafone Qatar 14.00 1.67 (14.89) 11,836 N/M 2.2 1.5
Telecoms 35,796
Qatar Navigation (Milaha) 99.50 3.11 0.00 11,395 9.6 0.8 5.5
Gulf Warehousing 70.00 9.38 24.11 3,329 20.8 3.7 2.1
Qatar Gas Transport (Nakilat) 23.01 7.93 (0.39) 12,886 13.5 3.2 5.2
Transportation 27,610
Qatar Exchange 623,779

6. Contacts
Saugata Sarkar Sahbi Kasraoui QNB Financial Services SPC
Head of Research Head of HNI Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6534 Tel: (+974) 4476 6544 PO Box 24025
saugata.sarkar@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa Doha, Qatar
Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of QNB SAQ (“QNB”). QNBFS is regulated by the Qatar
Financial Markets Authority and the Qatar Exchange QNB SAQ 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.
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