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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER

QE Index: Short-Term – Bounce Back

The QE Index continued on its northbound journey for the third

consecutive session and gained around 43 points (0.31%) to clear

the 13,700.0 mark. The index momentarily moved above the

13,800.0 level, however later trimmed its gains, as traders opted to

book profits. Meanwhile, the index needs to surpass 13,750.0 and

sustain above it on a closing basis to continue its bullish momentum.

On the flip side, 13,700.0 may act as a psychological support.

Commercial Bank of Qatar: Short-Term – Upmove

CBQK advanced 2.02% and breached the resistances of QR69.50

and the ascending pennant in a single swoop. Notably, volumes were

also large on the rise, indicating optimism among traders. We believe

based on the recent price action the stock has enough steam left to

surpass QR70.70, targeting QR71.50. However, any retreat below

QR70.0 may halt its upmove. Meanwhile, both the indicators are

looking strong, supporting this bullish sentiment.

Al Rayan Islamic Index: Short-Term – Neutral

The QERI Index ended the session in red with a cut of around 27

points (-0.58%) on the back of profit-booking. The index failed to

make any further headway above 4,750.0 and retreated, penetrating

below the support of the 4,708.0 level. The index needs to reclaim

4,708.0 for the bulls to come back in action. Any failure to move

above 4,708.0 may result in a drift down toward the 21-day moving

average. Meanwhile, both the indicators are pointing down.

Qatari Investors Group: Short-Term – Pullback

QIGD continued its decline and breached its support of QR58.0

yesterday. The stock has been in a declining mode and is

experiencing selling pressure over the past few days. Further, the RSI

is drifting down from the mid-line, while the MACD has crossed the

signal line into the negative territory, indicating weakness. We believe

the stock may drift down further and test the 55-day moving average.

However, a close above QR58.0 may provide some relief.

Ooredoo: Short-Term – Bounce Back

ORDS showed strength yesterday and rebounded by gaining 2.44%.

Moreover, the stock cleared QR124.50 and the 21-day moving

average on the back of increased participation. Further the stock

developed a bullish Marubozu candlestick pattern, indicating a

continuation of this upmove. With both the indicators providing bullish

signals, we believe the stock will continue its rally and test QR129.70.

However, any dip below QR125.80 may drag the stock.

Doha Bank: Short-Term – Upmove

DHBK surpassed the resistance of QR62.0 for the first time since

June, after consolidating below it over the past few weeks. The stock

has been moving along the ascending channel and is showing

strength. The prognosis for this time implies further upside as DHBK

has support from both the moving averages, which are pointing up.

Traders could consider buying the stock at the current level for a

target of QR63.30 with a strict stop loss of QR62.0.

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) 13,742.22 UP UP 13,700.00 13,650.00 13,753.36 13,847.11

Al Rayan Islamic Index (QERI Index) 4,702.29 UP UP 4,685.00 4,638.81 4,707.59 4,770.31

Banks and Financial Services Banks and Financial Services

Masraf Al Rayan (MARK QD) 56.30 UP UP 55.80 54.00 57.30 58.20

Commercial Bank of Qatar (CBQK QD)* 70.60 UP UP 70.00 69.50 70.70 71.50

Doha Bank (DHBK QD)* 62.10 UP UP 62.00 61.00 63.30 64.50

Qatar Islamic Bank (QIBK QD) 117.50 UP UP 117.40 115.00 120.00 122.00

Qatar International Islamic Bank (QIIK QD) 88.70 UP UP 87.80 86.10 89.00 90.50

Qatar Insurance (QATI QD) 98.00 UP UP 97.00 96.00 99.00 100.00

Al Khalij Commercial Bank (KCBK QD) 22.20 UP UP 22.00 21.49 22.35 22.50

Consumer Goods and Services Consumer Goods and Services

Medicare Group (MCGS QD) 133.40 UP UP 131.40 128.80 135.20 139.40

Al Meera Consumer Goods Co. (MERS QD) 185.70 DOWN UP 185.00 183.00 187.80 190.00

Industrials Industrials

Industries Qatar (IQCD QD) 188.70 UP UP 188.50 186.40 190.00 191.00

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

Gulf International Services (GISS QD) 118.00 DOWN UP 115.00 111.90 118.10 121.00

Qatari Investors Group (QIGD QD)* 57.40 DOWN FLAT 56.20 54.00 58.00 59.00

Real Estate Real Estate

Barwa Real Estate Co. (BRES QD) 40.05 DOWN FLAT 39.70 39.20 40.10 41.00

United Development Co. (UDCD QD) 29.00 DOWN UP 28.55 28.00 29.05 29.50

Telecom Telecom

Ooredoo (ORDS QD)* 126.00 UP DOWN 124.50 121.40 126.00 129.70

Vodafone Qatar (VFQS QD) 21.30 UP UP 21.00 20.78 21.40 21.97

Transportation Transportation

Nakilat (QGTS QD) 24.14 DOWN UP 24.12 23.90 24.45 24.61

Milaha (QNNS QD) 94.30 FLAT UP 93.00 91.30 95.10 96.50