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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER

QE Index: Short-Term – Bounce Back

The QE Index ended the session in green with a gain of around 154

points (1.14%), after experiencing intense selling pressure on

Thursday. The index started the day at 13,859.49, but failed to make

any further headway and retreated, as traders opted to book profits.

Meanwhile, the index could test 13,700.0 if it sustains above 13,550.0

on a closing basis, which may result in a positive bias. On the flip

side, the index could find support at 13,500.0 and 13,450.0.

Qatar Islamic Bank: Short-Term – Pullback

QIBK penetrated below the supports of the ascending trendline and

QR117.40 after consolidating above it over the past few days, which

is a negative signal. Moreover, the RSI has shown a negative slope,

while the MACD has crossed the signal line into negative territory. We

believe the stock may continue to weaken further and drift down

toward QR115.0, which is also in proximity to the 21-day moving

average. However, a close above QR117.40 may halt its pullback.

Al Rayan Islamic Index: Short-Term – Bounce Back

The QERI Index snapped its three-day losing streak and rose by

1.37%, after caving in under selling pressure on Thursday. The index

witnessed a gap-up opening, but later drifted lower due to profit-

booking to settle near 4,700.0. However, traders are advised to wait

for any further follow-through to yesterday’s gains. A close above

4,708.0 would heighten optimism among traders, and push the index

higher. Conversely, 4,650.0 may act as an intermediate support.

Al Meera Consumer Goods Co.: Short-Term – Pullback

MERS breached its support of QR187.80 on Thursday and declined

further yesterday, confirming this pullback. Moreover, the stock has

been moving along the descending trendline over the past few days

and is underperforming. Meanwhile, both momentum indicators are

providing bearish signals, indicating a further downside. Traders may

consider selling the stock at the current level for a target of QR185.0

with a strict stop loss of QR187.80.

Vodafone Qatar: Short-Term – Rebound

VFQS jumped around 9.90% and rebounded to move above the

resistances of QR20.0, QR20.78 as well as both the moving

averages. Notably, volumes were comparatively large on the rise,

indicating that potential buyers are stepping in. Further, the RSI has

rejected the mid-line and has shown a bullish divergence. We believe

the stock may extend its gains and test QR21.40. However, traders

need to be cautious if the stock slips below QR21.0.

Gulf International Services: Short-Term – Pullback

GISS made a positive opening and momentarily moved above the

resistance of the descending trendline, but failed to hold onto its gains

and reversed on the back of large volumes. Moreover, the stock

developed a bearish Marubozu candlestick pattern, indicating a likely

continuation of this pullback. We believe the stock may continue to

move lower until it trades below the descending trendline and test

QR115.0. Meanwhile, both the indicators are pointing down.

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) 13,596.66 UP UP 13,584.34 13,500.00 13,700.00 13,753.36

Al Rayan Islamic Index (QERI Index) 4,691.19 UP UP 4,638.81 4,600.00 4,707.59 4,770.31

Banks and Financial Services Banks and Financial Services

Masraf Al Rayan (MARK QD) 55.30 UP UP 54.00 52.80 55.80 57.30

Commercial Bank of Qatar (CBQK QD) 68.90 UP UP 68.30 67.50 69.50 70.00

Doha Bank (DHBK QD) 61.40 UP UP 61.00 60.00 62.00 63.10

Qatar Islamic Bank (QIBK QD)* 116.20 UP UP 115.00 112.50 117.40 122.00

Qatar International Islamic Bank (QIIK QD) 87.30 UP UP 86.10 85.00 87.80 89.00

Qatar Insurance (QATI QD) 100.00 UP UP 99.00 98.00 101.50 103.00

Al Khalij Commercial Bank (KCBK QD) 22.05 DOWN FLAT 22.00 21.49 22.35 22.50

Consumer Goods and Services Consumer Goods and Services

Medicare Group (MCGS QD) 130.00 UP UP 128.80 126.50 132.00 135.20

Al Meera Consumer Goods Co. (MERS QD)* 187.00 DOWN UP 185.00 183.00 187.80 190.00

Industrials Industrials

Industries Qatar (IQCD QD) 189.90 UP UP 188.50 186.40 191.00 192.10

Qatar Electricity & Water Co. (QEWS QD) 186.00 UP UP 184.00 182.00 188.00 190.00

Gulf International Services (GISS QD)* 117.00 DOWN UP 115.00 111.90 118.10 121.00

Qatari Investors Group (QIGD QD) 59.00 UP UP 57.70 56.20 59.70 60.60

Real Estate Real Estate

Barwa Real Estate Co. (BRES QD) 40.30 DOWN FLAT 40.10 39.70 41.00 41.80

United Development Co. (UDCD QD) 29.25 DOWN UP 29.05 28.55 29.85 30.00

Telecom Telecom

Ooredoo (ORDS QD) 122.50 DOWN DOWN 121.40 120.00 124.50 126.00

Vodafone Qatar (VFQS QD)* 21.25 UP UP 21.00 20.78 21.40 21.97

Transportation Transportation

Nakilat (QGTS QD) 24.17 DOWN UP 24.12 23.90 24.45 24.61

Milaha (QNNS QD) 94.20 FLAT UP 93.00 91.30 95.10 96.50