Page 1 of 2

TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER

QE Index: Short-Term – Pullback

The QE Index fell for the second consecutive session and dropped

around 428 points (-3.09%) on the back of heavy selling pressure.

The index penetrated below many important psychological levels as

well as the ascending trendline support in a single swoop, ending the

session below 13,450.0. Meanwhile, the index has its immediate

support at the 21-day moving average. Any sustained weakness

below this level may further drag the index to test 13,350.0.

Barwa Real Estate Co.: Short-Term – Pullback

BRES declined further and dipped below its important supports of

QR40.10, QR39.70 along with both the moving averages in a single

trading session, which is a negative sign. Moreover, the stock has

been on a declining mode after peaking at QR43.45. We believe the

stock may continue to weaken further and move down toward

QR38.40. However, a close above QR39.70 may halt its pullback.

Meanwhile, both indicators are indicating weakness.

Al Rayan Islamic Index: Short-Term – Pullback

The QERI Index continued its southbound journey for the third

straight session and witnessed a sharp decline of -3.33%. Moreover,

the index slipped below the key levels of 4,770.0 and 4,650.0 in a

single trading session, caving in under selling pressure. We believe

this strong breach of supports has bearish implications. The index

may extend its losses further, if it retreats below the 21-day moving

average and drift lower toward the 4,530.0 level.

Ooredoo: Short-Term – Pullback

ORDS breached a series of important supports and suffered severe

selling pressure on Thursday. Moreover, the stock developed a long

bearish Marubozu candlestick pattern, indicating a likely continuation

of this pullback. Meanwhile, the RSI has shown a negative

divergence, while the MACD is moving in a bearish manner,

indicating further downside. We believe the stock may continue its

decline and test QR113.80, followed by QR110.50.

Masraf Al Rayan: Short-Term – Pullback

MARK fell sharply and penetrated below the important supports of

QR55.80 and QR54.0 along with both the moving averages in a

single swoop. The stock has been showing signs of weakness since

failing to move above QR59.90. We believe although the stock is

trading close to its immediate support of QR51.80, it seems unlikely it

may cling onto it. MARK may drift down further to test QR49.75.

Meanwhile, both indicators are providing bearish signals.

Vodafone Qatar: Short-Term – Pullback

VFQS witnessed heavy selling pressure on Thursday and breached

its key supports of QR21.40 and QR20.0 along with both the moving

averages in a single swoop. With the RSI showing negative slope,

and the MACD providing bearish crossover, it appears VFQS is likely

to continue its pullback. The stock has its immediate support at

QR19.29; a drop below which may drag the stock further down

toward the QR18.75 level.

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) 13,443.16 FLAT UP 13,350.54 13,195.88 13,500.00 13,584.34

Al Rayan Islamic Index (QERI Index) 4,627.60 FLAT UP 4,600.00 4,528.58 4,638.81 4,707.59

Banks and Financial Services Banks and Financial Services

Masraf Al Rayan (MARK QD)* 52.00 DOWN DOWN 51.80 49.75 54.00 55.80

Commercial Bank of Qatar (CBQK QD) 68.10 UP UP 67.30 66.50 68.30 69.00

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

Qatar Islamic Bank (QIBK QD) 119.00 UP UP 117.40 115.00 122.00 125.00

Qatar International Islamic Bank (QIIK QD) 87.40 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) 21.70 DOWN DOWN 21.49 21.00 22.00 22.35

Consumer Goods and Services Consumer Goods and Services

Medicare Group (MCGS QD) 129.00 UP UP 126.50 122.60 130.00 132.00

Al Meera Consumer Goods Co. (MERS QD) 187.20 DOWN UP 185.00 183.00 187.80 190.00

Industrials Industrials

Industries Qatar (IQCD QD) 193.50 UP UP 192.10 191.00 194.60 197.70

Qatar Electricity & Water Co. (QEWS QD) 171.00 DOWN DOWN 170.91 168.00 173.00 176.64

Gulf International Services (GISS QD) 117.20 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)* 39.10 DOWN DOWN 38.40 37.40 39.70 40.10

United Development Co. (UDCD QD) 29.15 DOWN FLAT 29.05 28.55 29.85 30.00

Telecom Telecom

Ooredoo (ORDS QD)* 114.30 DOWN DOWN 113.80 110.50 115.90 117.70

Vodafone Qatar (VFQS QD)* 19.34 DOWN DOWN 19.29 18.75 20.00 20.78

Transportation Transportation

Nakilat (QGTS QD) 23.50 DOWN FLAT 23.00 22.45 23.90 24.12

Milaha (QNNS QD) 89.00 DOWN DOWN 88.70 87.00 89.40 90.20