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QSE Intra-Day Movement

Qatar Commentary

The QSE Index declined 0.9% to close at 11,116.4. Losses were led by the Transportation and Telecoms indices, falling 2.0% and 1.5%, respectively. Top losers were Medicare Group and Qatar Gas Transport Co., falling 3.1% and 2.9%, respectively. Among the top gainers, National Leasing rose 1.1%, while Qatari Investors Group was up 0.9%.

GCC Commentary

Saudi Arabia: The TASI Index fell 0.2% to close at 6,095.9. Losses were led by the Media & Publishing and Energy & Utilities indices, falling 4.1% and 1.7%, respectively. Saudi Research & Marketing fell 6.1%, while Saudi Industrial Investment was down 4.9%.

Dubai: The DFM Index declined marginally to close at 3,533.8. The Transportation index fell 1.1%, while the Consumer Staples index declined 0.6%. Dar Al Takaful fell 2.9%, while Ekttitab Holding Company was down 2.4%.

Abu Dhabi: The ADX benchmark index rose 0.6% to close at 4,535.4. The Investment & Financial Services index gained 1.5%, while the Banks index rose 1.1%. Sharjah Cement & Industrial Development gained 3.3%, while Arkan Building Materials was up 2.4%.

Kuwait: The KSE Index rose 0.1% to close at 5,448.9. The Health Care index gained 0.9%, while the Basic Material index rose 0.6%. Al-Mal Investment Company gained 12.2%, while MENA Real Estate Company was up 7.3%.

Oman: The MSM Index fell 0.4% to close at 5,849.4. Losses were led by the Industrial and Financial indices, falling 0.5% and 0.4%, respectively. Al Jazeera Steel Products fell 6.9%, while Al Jazeera Services was down 2.6%.

Bahrain: The BHB Index gained 0.1% to close at 1,153.2. The Industrial index rose 0.6%, while the Commercial Banks index gained 0.1%. National Bank of Bahrain rose 2.9%, while Bahrain Commercial Facilities Company was up 1.5%.

QSE Top Gainers Close* 1D% Vol. ‘000 YTD%

National Leasing 18.70 1.1 53.2 32.6

Qatari Investors Group 54.10 0.9 86.9 43.5

Al Khalij 17.75 0.8 62.6 (1.2)

QNB Group 162.90 0.1 150.4 11.7

QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%

Qatar First Bank 11.60 (1.3) 708.5 (22.7)

Gulf International Services 36.25 (1.8) 392.7 (29.6)

Qatar Gas Transport Co. 24.11 (2.9) 353.1 3.3

Masraf Al Rayan 38.15 (1.0) 278.1 1.5

Vodafone Qatar 12.00 (0.1) 247.9 (5.5)

Market Indicators 23 Aug 16 22 Aug 16 %Chg.

Value Traded (QR mn) 160.8 204.8 (21.5)

Exch. Market Cap. (QR mn) 594,942.1 598,957.2 (0.7)

Volume (mn) 4.1 5.2 (21.1)

Number of Transactions 3,205 3,710 (13.6)

Companies Traded 41 43 (4.7)

Market Breadth 4:33 12:27 –

Market Indices Close 1D% WTD% YTD% TTM P/E

Total Return 17,985.63 (0.9) (1.8) 10.9 15.5

All Share Index 3,057.90 (0.7) (1.6) 10.1 14.7

Banks 3,038.84 (0.4) (2.0) 8.3 12.9

Industrials 3,345.28 (0.7) (1.3) 5.0 15.9

Transportation 2,580.51 (2.0) (3.0) 6.2 12.4

Real Estate 2,708.71 (0.9) (0.3) 16.1 23.8

Insurance 4,735.76 (0.6) (0.8) 17.4 12.7

Telecoms 1,254.72 (1.5) (4.5) 27.2 19.1

Consumer 6,520.18 (0.8) (0.9) 8.7 13.7

Al Rayan Islamic Index 4,198.63 (0.8) (1.3) 8.9 18.4

GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%

National Bank of Kuwait Kuwait 0.60 3.4 480.7 (19.3)

Emirates NBD Dubai 8.45 3.0 357.1 14.2

National Bank of Bahrain Bahrain 0.72 2.9 13.0 13.1

Saudi Public Transport Co. Saudi Arabia 13.83 2.7 918.5 (17.5)

Saudi Chemical Co. Saudi Arabia 41.00 2.3 56.0 (28.5)

GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%

Saudi Res. & Marketing Saudi Arabia 32.24 (6.1) 354.9 (44.2)

Saudi Ind. Investment Saudi Arabia 11.94 (4.9) 3,658.8 (13.5)

Ithmaar Bank Bahrain 0.12 (4.0) 175.4 (20.0)

Gulf Pharmaceutical Ind. Abu Dhabi 2.25 (3.4) 110.0 (6.4)

Qassim Cement Saudi Arabia 56.56 (2.9) 64.6 (19.3)

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)

QSE Top Losers Close* 1D% Vol. ‘000 YTD%

Medicare Group 92.00 (3.1) 92.6 (22.9)

Qatar Gas Transport Co. 24.11 (2.9) 353.1 3.3

Dlala Brokerage & Inv. Holding Co. 23.55 (2.1) 136.9 27.4

Qatar Electricity & Water Co. 227.00 (1.9) 19.3 4.9

Ooredoo 101.00 (1.8) 126.7 34.7

QSE Top Value Trades Close* 1D% Val. ‘000 YTD%

QNB Group 162.90 0.1 24,473.0 11.7

Gulf International Services 36.25 (1.8) 14,279.9 (29.6)

Ooredoo 101.00 (1.8) 12,874.3 34.7

Masraf Al Rayan 38.15 (1.0) 10,620.5 1.5

Qatar Gas Transport Co. 24.11 (2.9) 8,557.6 3.3 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* 11,116.42 (0.9) (1.8) 4.8 6.6 44.16 163,430.6 15.5 1.7 3.7

Dubai 3,533.83 (0.0) (1.1) 1.4 12.1 87.77 92,573.8 12.6 1.3 4.3

Abu Dhabi 4,535.40 0.6 0.4 (0.9) 5.3 35.69 121,310.2 12.1 1.5 5.4

Saudi Arabia 6,095.89 (0.2) (2.1) (3.3) (11.8) 706.30 378,661.3 14.4 1.4 4.0

Kuwait 5,448.86 0.1 (0.4) (0.0) (3.0) 20.23 80,065.3 18.7 1.0 4.3

Oman 5,849.42 (0.4) (0.8) 0.1 8.2 4.98 23,266.4 10.2 1.2 5.0

Bahrain 1,153.16 0.1 0.4 (0.2) (5.2) 1.21 17,855.7 9.7 0.4 4.6

Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)

11,100

11,120

11,140

11,160

11,180

11,200

11,220

9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

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Qatar Market Commentary

The QSE Index declined 0.9% to close at 11,116.4. The Transportation and Telecoms indices led the losses. The index fell on the back of selling pressure from Qatari and GCC shareholders despite buying support from non-Qatari shareholders.

Medicare Group and Qatar Gas Transport Co. were the top losers, falling 3.1% and 2.9%, respectively. Among the top gainers, National Leasing rose 1.1%, while Qatari Investors Group was up 0.9%.

Volume of shares traded on Tuesday fell by 21.1% to 4.1mn from 5.2mn on Monday. Further, as compared to the 30-day moving average of 7.2mn, volume for the day was 42.8% lower. Qatar First Bank and Gulf International Services were the most active stocks, contributing 17.3% and 9.6% to the total volume, respectively.

Source: Qatar Stock Exchange (* as a % of traded value)

Ratings and Global Economic Data

Ratings Updates

Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change

Warba Insurance Co. S&P Kuwait FSR/LT-LICR BBB/BBB BBB+/BBB+ Stable –

Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, LICR – Local Issuer Credit Rating, IDR – Issuer Default Rating, SR – Support Rating, LC – Local Currency)

Global Economic Data

Date Market Source Indicator Period Actual Consensus Previous

08/23 US Markit Markit US Manufacturing PMI August P 52.1 52.6 52.9

08/23 EU Markit Markit Eurozone Manufacturing PMI August P 51.8 52.0 52.0

08/23 EU Markit Markit Eurozone Services PMI August P 53.1 52.8 52.9

08/23 EU Markit Markit Eurozone Composite PMI August P 53.3 53.1 53.2

08/23 Germany Markit Markit/BME Germany Manufacturing PMI August P 53.6 53.6 53.8

08/23 Germany Markit Markit Germany Services PMI August P 53.3 54.4 54.4

08/23 Germany Markit Markit/BME Germany Composite PMI August P 54.4 55.1 55.3

08/23 France Markit Markit France Manufacturing PMI August P 48.5 48.8 48.6

08/23 France Markit Markit France Services PMI August P 52.0 50.5 50.5

08/23 France Markit Markit France Composite PMI August P 51.6 50.4 50.1

08/23 Japan Markit Nikkei Japan PMI Mfg August P 49.6 – 49.3

Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)

Overall Activity Buy %* Sell %* Net (QR)

Qatari Individuals 31.19% 36.75% (8,935,073.42)

Qatari Institutions 14.26% 15.98% (2,762,597.99)

Qatari 45.45% 52.73% (11,697,671.41)

GCC Individuals 1.68% 0.71% 1,565,439.77

GCC Institutions 7.79% 11.04% (5,215,590.91)

GCC 9.47% 11.75% (3,650,151.14)

Non-Qatari Individuals 13.34% 8.70% 7,454,838.51

Non-Qatari Institutions 31.75% 26.84% 7,892,984.04

Non-Qatari 45.09% 35.54% 15,347,822.55

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News Qatar

MDPS: Qatar PPI expanded in June as global oil prices rebound – According to the Ministry of Development Planning and Statistics’ (MDPS) data, the rebound in global oil prices appears to have had a positive impact on Qatar, whose producer price index (PPI) witnessed a robust upward path in June, as compared to May 2016. The MDPS said high prices for crude petroleum and natural gas as well as manufactured products such as refined petroleum products and basic metals led Qatar’s PPI for the industrial sector – a measure of the average selling prices received by domestic producers for their output, which expanded 6% MoM in June 2016. However, the overall PPI had declined 25.3% YoY in the review month mainly on account of the weak prices of crude petroleum and natural gas, basic chemicals, refined petroleum products, basic metals and man-made fibers. The PPI for the mining sector, which carries the maximum weight of 72.7%, saw its group index expand 4% MoM in June 2016 on the back of a 6% increase in the prices of crude and natural gas, even as prices of stone, sand and clay were down 0.1%. (Gulf-Times.com)

Qatar-Korea’s $34mn LED plant to produce 500,000 units annually – South Korean Ambassador Heung Kyeong Park said that the $34mn light emitting diode (LED) plant, set to be built in Qatar soon, will produce an initial 500,000 units annually. The envoy said the Korea-Qatar LED project is in progress “with a view of producing LED lights tailored for the Middle East and North African market”, in cooperation with the Korean LED consortium and a Qatari counterpart. (Gulf-Times.com)

BMI: Qatar’s financial position will remain strong over next decade – According to BMI, Qatar, whose budget would turn back to surplus in 2017, will remain in one of the strongest fiscal positions in the world over the next decade and continue to hold massive financial buffers through its sovereign wealth fund (SWF). BMI said, “Qatar’s sovereign position will remain one of the strongest in the world,” forecasting that the budget surplus is expected to be QR5.3bn in 2017, which then would expand to QR13.9bn in 2018, QR20.4bn in 2019, QR27.9bn in 2020, QR39.5bn in 2021, QR53.3bn in 2022, QR68bn in 2023, QR83.2bn in 2024 and QR99.2bn in 2025. Qatar has posted large budget surpluses between 2010 and 2015 on the back of massive hydrocarbon revenues, which allowed it to set up a SWF ‘Qatar Investment Authority’. The authority held $335bn (215% of GDP) of assets at the end of 2015, equivalent to five times the total stock of public debt issued by the Qatari government. As a result, Qatar enjoys the best ratings in the Middle East, along with the UAE and Kuwait. It has Fitch rating of AA (with a stable outlook), Moody’s rating of Aa2 (with a negative outlook) and S&P rating of AA (with a stable outlook). (Gulf-Times.com)

BMI: Qatar would be region’s best performing IT market – The Information Technology (IT) sector in Qatar is unlikely to meet growth expectations in 2016. Industry sources do not expect much improvement next year either, though the country has been forecast to be one of the best-performing IT markets in the region. According to BMI Research, demand for computer hardware held up better in Qatar than most commodity-reliant markets in 2015. Qatar’s medium-term outlook was stronger across the whole IT market than the rest of the GCC countries. BMI said, “Major project spending by the government will drive IT services demand as Qatar engages in major modernization initiatives for the economy and public services, particularly in infrastructure for the 2022 FIFA World Cup.” “The hardware outlook is weaker, with retail market saturation placing a limit on growth potential and vendors are reliant on replacement sales. We forecast a compound annual growth rate (CAGR) of 5.3% for the whole IT market over 2016-2020 to a value of QR4.9bn.” According to a report by Research

and Markets, analysts forecast that Qatar’s IT market would grow at a CAGR of 12.37% over 2014-2019. The report covered the existing scenario and growth prospects of the IT market in Qatar for the 2015-2019 periods. (Peninsula Qatar)

New Qatari firm to sell petroleum products abroad – HH Emir Sheikh Tamim bin Hamad Al Thani issued Law No. 9 of 2016 for setting up a Qatari shareholding company for selling petroleum products in the international market. According to the law, a Qatari shareholding company, wholly owned by Qatar, will be established and represented by Qatar Petroleum. The company, with the name “Qatar Petroleum for selling petroleum products” LLTD, will sell petroleum products that fall under the government regulation and specified in the law. The Cabinet earlier endorsed the draft law amending some provisions of Decree No. 15 of 2007 on the regulation of the marketing and sale of products outside Qatar under the government regulation and referred it to the Advisory Council. The law stipulates that the new company will perform as a commercial entity “with the right of ownership of government-regulated products to market and sell them in Qatar and outside on its name.” (Peninsula Qatar)

ORDS launches innovative service for companies – Ooredoo (ORDS) launched ‘Mobile Device Management’, an innovative service that enables companies to monitor all devices, content and apps operating on the ORDS network. With Mobile Device Management, ORDS said businesses would be able to allow users access to corporate resources on their own devices, while still ensuring user privacy and integrity of company data. Powered by IBM MaaS360, the capabilities of the solution will allow enterprises to have their own app catalogue that presents users with approved or recommended public applications and in-house developed applications, while offering the ability to automatically push updates of those applications as they are made available. (Gulf-Times.com)

Turkish firm to build QR7.6bn highway as part of Al Khor Expressway project – Qatar signed an agreement with Turkish company Tekfen for the construction of a QR7.6bn highway as part of the Al Khor Expressway project. The deal was signed in Ankara by the Minister of Municipality and Environment. The highway will span 34 kilometers, including 12 bridges and crossings and will link Doha with Lusail, Al Khor and the new stadiums. The ministry said project will consist of five lanes in each direction and is expected to be completed in 30 months. It will also include eight intersections and pedestrian, bicycle and motorcycle lanes. (Peninsula Qatar)

International

CBO: US budget deficit to reach $590bn for fiscal year 2016 – The Congressional Budget Office (CBO) said that the US budget deficit is expected to grow to $590bn in fiscal year 2016 due to slower than expected growth in revenues and higher spending for programs including Social Security and Medicare. The estimate, which is $56bn larger than CBO's forecast in March, shows the deficit increasing in relation to economic output for the first time since 2009. CBO said the deficit is expected to be $152bn higher than in 2015 and will equal 3.2% of economic output. The deficit peaked at $1.4tn in 2009 and shrank to $485bn in 2014. The nonpartisan research agency also said that debt held by the public will amount to nearly 77% of GDP by the end of 2016, three percentage points higher than 2015 and its highest ratio since 1950. (Reuters)

US new home sales race to near nine-year high – New US single-family home sales unexpectedly surged in July, reaching their highest level in nearly nine years amid robust demand, brightening the housing market outlook and bolstering views that economic

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growth will pick up in 3Q2016. Housing market strength should offset some of the drag from manufacturing, with other data showing production at factories remaining constrained by weak orders. The Commerce Department said new home sales jumped 12.4% to a seasonally adjusted annual rate of 654,000 units in July, the highest level since October 2007. It was the fifth straight monthly gain in new home sales. July's increase, however, likely exaggerates housing market strength as it has not been matched by robust housing starts. However, sales were up 31.3% YoY. (Reuters)

Eurozone business growth stable in August, France surprises upwards – According to surveys, surprisingly strong growth in France supported stable Eurozone private business activity during August but factories could face a tougher September as new order growth stumbled. Muddying the outlook for the coming months is the UK’s vote in late June to leave the EU, although so far the economic repercussions seem to have been confined to Britain, not its main trading partner. (Reuters)

Scottish economy to see £2-11bn Brexit hit – The Scottish government said that leaving the European Union (EU) will sap Scotland's economy by between £1.7 and £11.2bn by 2030, depending on which new trade relationship Britain chooses. Presenting the figures, Scotland's First Minister Nicola Sturgeon said she was seeking "in good faith" to negotiate the Scottish chapter of the terms under which Britain leaves the EU, but would keep Scottish independence from the UK as an option. (Reuters)

Kuroda: BOJ may apply 'fintech' to its operations in future – Bank of Japan (BOJ) Governor Haruhiko Kuroda said the central bank may apply financial technology, or "fintech," to its operations in the future given its growing influence on global payments, settlements and financial services. He said "The BOJ is ready to make its best efforts to support the sound development of fintech to enhance the welfare of financial service users as well as economic activities." (Reuters)

Japan August manufacturing output rises for first time in six months-flash PMI – Japanese manufacturing activity showed signs of steadying in August as output rose for the first time in six months, in a tentative sign that the economy may be recovering from a slump earlier this year. The IHS Markit/Nikkei Japan Flash Manufacturing Purchasing Managers Index (PMI) edged up to 49.6 in August from a final 49.3 in July on a seasonally adjusted basis. The headline index remained below the 50 threshold that separates contraction from expansion for the sixth month, but the rate of decline was slight. The index for output rose to a preliminary 50.6 from 49.4 in the previous month. While marginal, that would indicate the first increase since February if confirmed in revised data. (Reuters)

Regional

Deloitte: Global luxury goods sector will grow more slowly in 2016 – According to Deloitte’s annual report titled “Global Powers of Luxury Goods 2016 Disciplined innovation”, the global luxury goods sector is expected to grow more slowly in 2016, at a rate many retailers may find it disappointing. The report examines the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in FY2014. The Middle East region represents a big opportunity for luxury brands. Luxury malls in Abu Dhabi and Dubai have helped put these cities on the map for the industry, and the UAE as a whole will continue to enjoy strong growth. (GulfBase.com)

GCC governments issue $88bn bonds in 1H2016 – GCC sovereigns have been the biggest issuers of bonds so far in 1H2016. Around $88bn of issuances have come from sovereigns or government-related enterprises to plug the budget deficits caused by falling oil prices, which contributes around 60-85% of the government’s

revenues. The second biggest issuers have been banks with $59bn issues in 1H2016, followed by power and telecom firms. (GulfBase.com)

Investors buy KSA CDS contracts for at least 5 years before bond sale – Investors are buying the most amount of protection against a Saudi Arabian debt default for at least five years before the Kingdom taps the international bond market. The net amount of outstanding credit-default swap (CDS) contracts has climbed to $1.1bn. (Bloomberg)

KSA government raising up to SR20bn bonds from banks – The Saudi Arabian government is raising up to SR20bn from banks in August sale of domestic bonds. The government began the regular monthly sales in mid-2015 to help cover a budget deficit caused by low oil prices. Since then, it has sold SR156.6bn of bonds, of which SR70.5bn has come in 1H2016. (Gulf-Times.com)

Alinma Tokio, Ace Arabia and MetLife AIG ANB gets SAMA approval for insurance product – Alinma Tokio Marine Company, Ace Arabia Cooperative Insurance Company and MetLife AIG ANB Cooperative Insurance Company have obtained the final approval from the Saudi Arabian Monetary Agency (SAMA) to sell insurance product. (Tadawul)

Saudi Arabia’s imports fell 24% YoY in June 2016 – According to data from the Central Department of Statistics & Information, Saudi Arabia's imports decreased 23.9% YoY in June 2016, while non-oil exports dropped 10%. (Bloomberg)

UAE-HK to boost trade ties – UAE-Hong Kong trade ties are set to consolidate further given the spurt of events and exhibitions lined up in both the countries starting as early as first week of September and running toward the end of 2016. (GulfBase.com)

UAE hospitality revenue forecast to reach $9.8bn by 2020 – Hospitality revenue in the UAE is forecast to increase by 10.8% annually from 2015 to $9.8bn by 2020, despite concerns over a slowdown in 2016 in foreign visitor spending. A steady growth in international tourists at 7% annually, and the opening of new attractions such as theme parks, are expected to drive the revenue increase. (Bloomberg)

HKTDC: UAE agrees to deposit $1bn in Egypt – Middle East region HKTDC Deputy Director Abdul Aziz Nasser said that the UAE has agreed to deposit $1bn with Egypt’s central bank to help the nation meet the requirements for a $12bn loan deal with the International Monetary Fund. (Gulf-Times.com)

Dubai-UK trade stood at AED6.7bn in 1Q2016 – The Dubai-UK trade stood at AED29.7bn in 2015, and AED6.7bn in 1Q2016 with imports accounting for AED4.6bn, exports making up AED393mn, and re-exports worth AED1.66bn. (Bloomberg)

Dubai-based MAF will double size of Ajman mall – Dubai-based shopping mall developer Majid Al Futtaim announced plans to redevelop City Centre Ajman that will see the mall almost double in size. With an estimated cost of $163.3mn, the expanded City Centre Ajman will feature 150 retail and dining outlets, as well as an expanded VOX Cinemas with 4DX screens and specially-designed children’s theatres. (Bloomberg)

Aramex signs deal with Dubai-based NewBridge Pharmaceuticals – Aramex has signed a deal with Dubai-based NewBridge Pharmaceuticals (NBP) to further grow its healthcare brand internationally. The shipping company signed a deal to provide a wide range of logistics services for NBP throughout the MENA region, Canada and the UK – it has plans to open another facility hub in the US soon. (Bloomberg)

Media.net acquired for $900mn – Media.net, a Dubai-based advertising technology start-up, has been acquired for about $900mn by a group of Chinese investors. The deal would represent the third-largest acquisition in the ad tech industry, after Alphabet

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unit Google’s acquisition of DoubleClick and Microsoft’s deal for aQuantive. (Bloomberg)

Financial free zone regulators in Abu Dhabi, Dubai ink MoU – The financial free-zone regulators of Dubai and Abu Dhabi have signed a memorandum of understanding (MoU) aimed at increasing cooperation and a greater exchange of information. (Bloomberg)

CEO: RAKBANK expects flattish loan growth in 2016 – National Bank of Ras Al Khaimah (RAKBANK) CEO said that RAKBANK expects a "flattish" loan growth in 2016 as borrowing demand remains muted from small and medium-sized enterprises (SMEs). (Reuters)

Electricity consumers in rural areas grow by 7% – Total number of consumers of Rural Areas Electricity Company (Raeco), which serves people in rural areas, has increased by 7.4% to 33,187 at the end of 2015, from 30,904 customers at the end of 2014. As many as 70% of Raeco customers are in the domestic category and consume around 49% of the total energy supplied. Government and commercial customers consumed 19% and 15%, respectively, of the total electricity supplied. (GulfBase.com)

Advanced digital meters needed for introducing ‘cost reflective’ tariff – Advanced digital electricity meters and metering systems are required to be installed at the premises of large electricity consumers before introducing the proposed ‘cost reflective’ tariff. These are required for measuring energy consumption on an hourly basis for determining large consumers. (GulfBase.com)

Thailand’s PTTEP to sell Oman 44 project – Thailand’s largest oil & gas explorer, PTT Exploration & Production (PTTEP) will sell its Oman 44 natural gas project to ARA Petroleum LLC in a shift in investments in the Middle Eastern country. The deal is expected to close in early 4Q2016. (GulfBase.com)

NBO launches seamless banking to enhance cross-border trade – National Bank of Oman (NBO) reinforced its commitment to Oman’s bilateral trade ties with the UAE by launching a series of technological innovations to deliver a seamless banking experience for entrepreneurs and companies operating across borders. NBO developed this service to support and catalyze cross-border trade. (GulfBase.com)

Contacts

Saugata Sarkar Shahan Keushgerian Zaid al-Nafoosi, CMT, CFTe

Head of Research Senior Research Analyst Senior Research Analyst

Tel: (+974) 4476 6534 Tel: (+974) 4476 6509 Tel: (+974) 4476 6535

saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa

QNB Financial Services Co. WLL One Person Company

Contact Center: (+974) 4476 6666

PO Box 24025

Doha, Qatar

Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services Co. WLL One Person Company (“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. Page 6 of 6

Rebased Performance Daily Index Performance

Source: Bloomberg Source: Bloomberg

Source: Bloomberg Source: Bloomberg (*$ adjusted returns)

80.0

100.0

120.0

140.0

160.0

180.0

Jul-12 Jul-13 Jul-14 Jul-15 Jul-16

QSE Index S&P Pan Arab S&P GCC

(0.2%)

(0.9%)

0.1% 0.1%

(0.4%)

0.6%

(0.0%)

(1.2%)

(0.8%)

(0.4%)

(0.0%)

0.4%

0.8%

Saudi A

rabia

Qata

r

Kuw

ait

Bahra

in

Om

an

Abu D

habi

Dubai

Asset/Currency Performance Close ($) 1D% WTD% YTD%

Global Indices Performance Close 1D%* WTD%* YTD%*

Gold/Ounce 1,337.56 (0.1) (0.3) 26.0 MSCI World Index 1,738.55 0.3 0.4 4.6

Silver/Ounce 18.82 (0.5) (2.5) 35.8 DJ Industrial 18,547.30 0.1 (0.0) 6.4

Crude Oil (Brent)/Barrel (FM Future) 49.96 1.6 (1.8) 34.0 S&P 500 2,186.90 0.2 0.1 7.0

Crude Oil (WTI)/Barrel (FM Future) 48.10 2.2 (0.9) 29.9 NASDAQ 100 5,260.08 0.3 0.4 5.0

Natural Gas (Henry Hub)/MMBtu 2.71 (0.8) 2.7 17.3 STOXX 600 343.60 0.9 1.0 (2.2)

LPG Propane (Arab Gulf)/Ton 46.75 2.5 1.1 19.5 DAX 10,592.88 0.9 0.4 2.3

LPG Butane (Arab Gulf)/Ton 58.50 1.7 0.9 1.7 FTSE 100 6,868.51 1.0 1.1 (1.5)

Euro 1.13 (0.1) (0.2) 4.1 CAC 40 4,421.45 0.7 0.5 (0.7)

Yen 100.24 (0.1) 0.0 (16.6) Nikkei 16,497.36 (0.5) (0.3) 4.3

GBP 1.32 0.5 0.9 (10.4) MSCI EM 906.50 0.3 (0.4) 14.1

CHF 1.04 (0.1) (0.3) 4.1 SHANGHAI SE Composite 3,089.71 0.3 (0.5) (14.8)

AUD 0.76 (0.1) (0.2) 4.5 HANG SENG 22,998.93 0.0 0.3 4.9

USD Index 94.54 0.0 0.0 (4.1) BSE SENSEX 27,990.21 0.2 (0.2) 5.8

RUB 64.61 (0.3) 1.1 (10.9) Bovespa 58,020.04 0.4 (1.6) 64.3

BRL 0.31 (1.1) (0.9) 22.5 RTS 972.25 0.9 0.7 28.4

135.5

98.0

97.6