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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER

QE Index: Short-Term – Upmove

The QE Index slipped 0.74% to close at 13,882.49. The Index

touched an intra-day high of 14,052, but was unable to close above

the psychological 14,000 level as it retreated sharply. However, the

trend remains bullish, and a close above 14,000 would be a positive

sign. If the index slips further, there is support at 13,847 and at

13,733. The RSI and the MACD have moved lower after yesterday’s

fall, suggesting some profit booking is underway.

Industries Qatar: Short-Term – Pull back

IQCD formed a bearish Marubozu candlestick pattern to close at the

lowest point of the day. The stock fell 2.1% to close at QR188.0. The

MACD has given a negative crossover, while the RSI is trending

lower. We expect the stock to fall further from its current levels. On

the downside, QR186 would be the first support level, below which

the stock can fall toward the QR184 level. However, a close above

the QR192.50 level would indicate an uptrend for the stock.

Al Rayan Islamic Index: Short-Term – Neutral

The QERI Index slipped 0.55% to close at 4,692.44. Moreover, the

index has closed just below its 21-day moving average, while both the

technical indicators for the index are moving lower. These suggest

there is further weakness in the QERI Index. A move below the

support level of 4,638 would confirm a short-term downtrend for the

index, which can take it down toward 4,550. However, a close above

the 4,770 level would indicate renewed strength in the index.

Nakilat: Short-Term – Upmove

QGTS jumped 1.4% yesterday to move above its 21-day moving

average and close at its resistance level of QR24.90. The RSI is

trending higher, while the MACD is about to give a positive crossover.

An upmove from here can take the stock to its resistance of QR25.30.

If that is broken, the stock can test the level of QR25.90. However,

investors should turn cautious if the stock slips below its 21-day

moving average (currently at QR24.48).

Doha Bank: Short-Term – Upmove

DHBK has been trading in an upward trending channel over the last

couple of months. In the last couple of weeks, the stock has made

gradual advances and is now close to the upper end of the trading

channel. Both the RSI and the MACD are also trending higher. We

believe the stock is likely to continue this uptrend and move toward its

resistance of QR64.0. However, investors should exercise cautioun if

the stock moves below the QR61.40 level.

Medicare Group: Short-Term – Pull Back

MCGS slipped 1.23% to close at QR129.90. The stock has witnessed

a phenomenal run over the last couple of months, gaining by more

than 80%. However, the stock has seen some correction over the last

couple of weeks. MCGS is likely to test its support level of QR126.5. If

this level is broken, the stock can fall to QR122.80. Both the RSI and

the MACD indicate continued weakness in the stock. However,

investors should turn cautious if MCGS closes above QR135.

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) 13,882.49 UP UP 13,847.11 13,770.09 13,909.87 13,950.00

Al Rayan Islamic Index (QERI Index) 4,692.44 UP UP 4,685.00 4,638.81 4,707.59 4,770.31

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) 73.20 UP UP 72.50 71.80 75.00 76.50

Doha Bank (DHBK QD)* 62.30 UP UP 61.40 61.00 64.00 64.50

Qatar Islamic Bank (QIBK QD) 117.00 UP UP 115.00 111.00 117.40 120.00

Qatar International Islamic Bank (QIIK QD) 89.20 UP UP 89.00 87.80 90.50 93.50

Qatar Insurance (QATI QD) 100.00 UP UP 98.00 97.00 100.00 101.00

Al Khalij Commercial Bank (KCBK QD) 22.30 UP UP 21.99 21.80 22.35 22.49

Consumer Goods and Services

Medicare Group (MCGS QD)* 129.90 UP UP 126.50 122.80 135.00 137.50

Al Meera Consumer Goods Co. (MERS QD) 185.00 DOWN UP 183.00 181.40 185.00 187.80

Industrials

Industries Qatar (IQCD QD)* 188.00 UP FLAT 186.00 184.00 192.50 195.00

Qatar Electricity & Water Co. (QEWS QD) 187.00 UP UP 186.00 184.00 188.00 190.00

Gulf International Services (GISS QD) 121.90 UP UP 121.00 118.10 122.50 124.10

Qatari Investors Group (QIGD QD) 57.60 DOWN UP 56.20 54.00 58.00 59.00

Real Estate

Barwa Real Estate Co. (BRES QD) 40.20 DOWN FLAT 40.10 39.70 41.00 41.80

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

Telecom

Ooredoo (ORDS QD) 131.00 UP UP 129.70 126.00 132.00 134.00

Vodafone Qatar (VFQS QD) 21.20 UP UP 21.00 20.78 21.40 21.97

Transportation

Nakilat (QGTS QD)* 24.90 UP UP 24.48 24.12 25.30 25.90

Milaha (QNNS QD) 93.60 DOWN FLAT 93.00 91.30 95.10 96.50