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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER

QE Index: Short-Term – Bounce Back

The QE Index gained for the second straight session and rose

around 103 points (0.76%) to close at its highest point of the day. The

index cleared the13,600.0 psychological level and further extended

its gains, with the bulls in control. Meanwhile, the index faces its next

important resistance near 13,750.0. Any move above this level may

result in a rally toward 13,850.0. On the flip side, 13,650.0 may act as

an intermediate support.

Medicare Group: Short-Term – Rebound

MCGS gained 1.92% and cleared the resistance of the descending

trendline, which had restricted its bullish move earlier. Moreover, the

stock ended in a small bullish candlestick formation on daily charts,

indicating the upmove may continue. Further, the RSI has shown a

positive divergence, supporting this bullish sentiment. We believe the

stock may proceed toward QR135.20. However, any retreat below

the trendline around QR131.40 may pull the stock lower.

Al Rayan Islamic Index: Short-Term – Bounce Back

The QERI Index advanced around 38 points (0.82%) and ended the

session in the green for the second consecutive day. The index

moved above the 4,708.0 level and gained further momentum, as the

bulls were back in action. We believe the index may continue its

positive momentum and test 4,770.0-4,800.0 levels, if it is able to

sustain above 4,708.0 on a closing basis. Conversely, the index could

find support near the 4,700.0 level.

Qatari Investors Group: Short-Term – Pullback

QIGD penetrated below the 21-day moving average for the first time

since August, after holding above it over the past few weeks. Further,

the RSI has shown a negative slope, while the MACD has crossed

the signal line into the negative territory. We believe the stock is

unlikely to cling onto its immediate support of QR58.0 and may drift

down further to test the 55-day moving average. Conversely, if the

stock manages to put its head above QR58.0, it may halt its pullback.

Masraf Al Rayan: Short-Term – Bounce Back

MARK rebounded on Sunday and extended its gains by rallying

around 2.90%. Moreover, the stock found support of its 21-day

moving average and cleared the resistance of QR55.80. Further, the

RSI has shown a bullish divergence, indicating strength in the

upmove. We believe the stock may march toward QR57.30.

However, traders may exercise caution if the stock slips below

QR55.80, which may drag it back into the congestion zone.

Gulf International Services: Short-Term – Pullback

GISS has been experiencing steady decline over the past few days

and continued to move lower yesterday. The stock has been facing

stiff resistance of the descending trendline and is underperforming.

We believe the stock needs to clear this hurdle of the descending

trendline in order to proceed ahead; until then GISS may continue to

drift lower and test its support of QR115.0. Meanwhile, both the

indicators are providing bearish signals, indicating weakness.

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) 13,699.51 UP UP 13,650.00 13,584.34 13,753.36 13,847.11

Al Rayan Islamic Index (QERI Index) 4,729.55 UP UP 4,707.59 4,638.81 4,770.31 4,811.58

Banks and Financial Services Banks and Financial Services

Masraf Al Rayan (MARK QD)* 56.90 UP UP 55.80 54.00 57.30 58.00

Commercial Bank of Qatar (CBQK QD) 69.20 UP UP 68.90 68.30 69.50 70.00

Doha Bank (DHBK QD) 61.70 UP UP 61.00 60.00 62.00 63.10

Qatar Islamic Bank (QIBK QD) 118.90 UP UP 117.40 115.00 120.00 122.00

Qatar International Islamic Bank (QIIK QD) 88.20 UP UP 87.80 86.10 89.00 90.50

Qatar Insurance (QATI QD) 98.50 UP UP 97.00 96.00 99.00 100.00

Al Khalij Commercial Bank (KCBK QD) 22.10 FLAT FLAT 22.00 21.49 22.35 22.50

Consumer Goods and Services Consumer Goods and Services

Medicare Group (MCGS QD)* 132.50 UP UP 131.40 128.80 135.20 139.40

Al Meera Consumer Goods Co. (MERS QD) 189.50 DOWN UP 187.80 185.00 190.00 191.50

Industrials Industrials

Industries Qatar (IQCD QD) 190.00 UP UP 188.50 186.40 191.00 192.10

Qatar Electricity & Water Co. (QEWS QD) 185.00 FLAT FLAT 184.00 182.00 186.00 188.00

Gulf International Services (GISS QD)* 116.60 DOWN UP 115.00 111.90 118.10 121.00

Qatari Investors Group (QIGD QD)* 58.20 DOWN UP 58.00 56.20 59.00 59.70

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) 123.00 DOWN DOWN 121.40 120.00 124.50 126.00

Vodafone Qatar (VFQS QD) 21.24 UP UP 21.00 20.78 21.40 21.97

Transportation Transportation

Nakilat (QGTS QD) 24.25 DOWN UP 24.12 23.90 24.45 24.61

Milaha (QNNS QD) 94.00 FLAT UP 93.00 91.30 95.10 96.50