Page 1 of 5

Market Review and Outlook QE Index and Volume

The Qatar Exchange (QE) Index declined by 44.07 points, or

0.32%, during the week, to close at 13,830.90 points. Market

capitalization increased by 0.49% to reach QR742.9 billion (bn) as

compared to QR739.2bn at the end of the previous week. Of the 43

listed companies, 15 companies ended the week higher, while 27 fell

and 1 remained unchanged. Ezdan Holding (ERES) was the best

performing stock for the week, with a gain of 4.2% on 30.6 million (mn)

shares traded; the stock is up 21.2% year-to-date (YTD). Qatar Cinema

& Film Distribution Company (QCFS) was the worst performing stock,

with a decline of 5.2% on only 473 shares traded. The stock is still up

14.7% YTD.

ERES, Ooredoo (ORDS) and Gulf International Services (GISS)

pulled the QE Index down during the week. ERES was included in

the QE index from October 01, 2014. In anticipation of being part of the

QE Index, the stock appreciated in the first three trading days of the

week. However, post-inclusion the stock witnessed some profit booking

on the last two trading session pulling the overall QE Index down. On

the other hand, QNB Group (QNBK), Qatar Insurance (QATI) and

Qatar Islamic Bank (QIBK) positively contributed to the QE Index.

QNBK contributed 49.9 points to the QE Index.

Trading value during the week increased by 1.08% to reach

QR2.74bn vs. QR2.71bn in the prior week. The Banks & Financial

Services sector led the trading value during the week, accounting for

37.8% of the total equity trading value. Real Estate sector was the

second biggest contributor to the overall trading value, accounting for

30.6% of the total trading value. Ezdan Holding (ERES) was the top

value traded stock during the week with total traded value of

QR634.8mn.

Trading volume decreased by 2.2% to reach 65.4mn shares vs.

66.8mn shares in the prior week. The number of transactions rose by

3.3% to reach 26,636 transactions versus 25,776 transactions in the

prior week. The Real Estate sector led the trading volume, accounting

for 56.2%, followed by Banks & Financial Services sector which

accounted for 21.7% of the overall trading volume. ERES was also

the top volume traded stock during the week with total traded volume of

30.6mn shares.

Foreign institutions remained bearish during the week with net

selling of QR364.6mn vs. net selling of QR114.0mn in the prior

week. Qatari institutions were bullish with net buying of QR191.2mn vs.

net selling of QR174.0mn the week before. Foreign retail investors

remained bullish for the week with net buying of QR119.9mn vs. net

buying of QR34.5mn in the prior week. Qatari retail investors remained

bullish with net buying of QR53.5mn vs. net buying of QR253.8mn the

week before. Thus far in 2014, the QE has already witnessed net

foreign portfolio investment inflow of ~$2.3bn.

Market Indicators Week ended

Oct . 02, 2014 Week ended

Sep. 25, 2014 Chg. %

Value Traded (QR mn) 2,743.2 2,714.0 1.1

Exch. Market Cap. (QR mn) 742,895.7 739,243.3 0.5

Volume (mn) 65.4 66.8 (2.2)

Number of Transactions 26,636 25,776 3.3

Companies Traded 43 43 0.0

Market Breadth 15:27 2:39 –

Market Indices Close WTD% MTD% YTD%

Total Return 20,628.66 (0.3) 0.7 39.1

All Share Index 3,496.59 (0.3) 0.7 35.1

Banks/Financial Svcs. 3,420.47 1.1 1.5 40.0

Industrials 4,586.53 (0.7) 0.9 31.0

Transportation 2,327.69 (0.4) 0.3 25.3

Real Estate 2,813.26 (2.7) (1.6) 44.0

Insurance 4,117.24 0.7 1.3 76.2

Telecoms 1,670.68 (2.8) 0.6 14.9

Consumer 7,573.20 0.8 0.9 27.3

Al Rayan Islamic Index 4,690.43 (0.1) 0.7 54.5

Market Indices Weekly Index Performance

Regional Indices Close WTD% MTD% YTD% Weekly Exchange

Traded Value ($ mn) Exchange Mkt.

Cap. ($ mn) TTM P/E** P/B** Dividend Yield

Qatar (QE)* 13,830.90 (0.3) 0.7 33.3 802.96 203,999.2 18.7 2.3 3.4

Dubai 4,958.18 (1.9) (1.7) 47.1 1,407.99 107,427.6 20.6 1.8 1.9

Abu Dhabi 5,111.25 (0.3) 0.1 19.1 318.80 139,206.0 14.5 1.8 3.3

Saudi Arabia# 10,849.61 0.8 (0.0) 27.1 8,775.96 589,915.6 20.9 2.6 2.6

Kuwait 7,647.98 (0.1) 0.3 1.3 484.15 113,894.9 19.5 1.2 3.6

Oman 7,479.57 0.3 (0.1) 9.4 119.05 27,536.6 11.3 1.7 3.7

Bahrain 1,472.39 0.2 (0.2) 17.9 38.60 54,410.9 11.4 1.0 4.6

Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any) (#Data as of October 01, 2014)

13,835.01

13,844.08

13,728.31

13,758.55

13,830.90

0

12,500,000

25,000,000

13,700

13,975

14,250

28-Sep 29-Sep 30-Sep 1-Oct 2-Oct

Volume QE Index

0.8%0.3% 0.2%

(0.1%) (0.3%) (0.3%)

(1.9%)(3.0%)

(1.5%)

0.0%

1.5%

Saud

i Ara

bia

Om

an

Bah

rain

Kuw

ait

Qata

r (Q

E)*

Abu D

habi

Dubai

Page 2 of 5

News

Economic News

S&P affirms AA/A-1+ for Qatar, outlook stable – Standard &

Poor's (S&P) Ratings Services has affirmed its ‘AA’ long-term and ‘A-1+’ short-term foreign and local currency sovereign credit ratings on Qatar. The outlook is stable. S&P also affirmed the ‘AA’ long-term issue ratings on the bonds issued by Qatari Diar Finance and SoQ Sukuk A. The ratings reflect S&P’s view of Qatar’s high economic wealth and strong fiscal and external balance sheets. (Bloomberg)

Qatar population rises to 2.18mn – According to the statistics

released by the Ministry of Development Planning & Statistics (MDPS), Qatar’s population grew by 7.5% year-on-year to reach an all-time high of 2,187,326 as of September 30. There are 1,634,088 males and 553,238 females as of September 30. This compares to the August 31 population figure of 2,077,357. (Gulf-Times.com)

Reuters: Qatar to outperform GCC states with 6.7% growth –

According to a Reuters poll of analysts, Qatar’s economy is expected to keep outperforming the other five GCC states with a 6.7% growth in 2015, much faster than the 6.0% forecasted in April, as the country spends billions of dollars on infrastructure as it gears up to host the 2022 FIFA World Cup. However, the higher growth forecast also means that the price pressures in the world’s top liquefied natural gas exporter are expected to intensify, taking the inflation rate to 4.0% in 2015 and 4.5% in 2016, the highest among the Gulf countries. Masraf Al Rayan’s (MARK) Senior Economist Farah Ahmed Hersi said that the capital investment into the economy is expanding, population is growing at a double-digit rate and projects are getting fully underway. Despite all these infrastructure-building activity, the construction inflation in the country is still remarkably low. The poll showed that Gulf Arab economies are likely to grow slightly faster in 2015, driven by strong private business activity despite further falls in oil prices. (Reuters)

Non-oil sector seen infusing 9.1% growth to Qatar’s GDP –

GCC business consultant Dr. Abdul Latif Al-Khaja said that industries in the non-hydrocarbon sector are expected to contribute 9.1% to Qatar’s GDP growth between 2013 and 2016. According to Al-Khaja, Qatar’s GDP growth is expected to reach 6.9% between 2013 and 2016 with the oil & gas sector contributing an expected 4.4% and the non-hydrocarbon industries 9.1%. While the government has focused on developing Qatar’s energy sector in the past, Al-Khaja said the oil & gas industry would take a back seat as investment in the non-hydrocarbon industries will drive the economy. (Gulf-Times.com)

Market & Corporate News

Eid Al-Adha holiday for Qatar Exchange – According to a

circular issued by Qatar Central Bank (QCB), the Qatar Exchange (QE) will remain closed for five days in view of Eid Al-Adha, starting October 5, 2014 till October 9, 2014 (Sunday to Thursday). The QE will resume work on October 12, 2014. (QE)

BRES sells land plot worth QR2.54bn – Barwa Real Estate

Company (BRES) has signed a QR2.54bn agreement with the government under which the latter purchased a plot of land in Lusail City. BRES said that the deal will maximize the group’s profit and consequently shareholders returns. BRES has received QR1.04bn in cash, while the remainder (QR1.5bn) was settled against bank facilities. (Gulf-Times.com)

CBQK denies news about discussing financing real estate project with Kuwaiti firm – The Commercial Bank of Qatar

(CBQK) denies the news published on the “Mubasher” website about a Kuwaiti Company discussing the financing of a big real estate project in Doha with the bank. CBQK confirmed that no such discussion has taken place. (QE)

ABQK secures $200mn syndicated term loan – Ahli Bank

(ABQK) has successfully closed a three-year $200mn syndicated term loan facility, which it said will be used for general corporate funding purposes. The loan facility carries a margin of 120 basis points over LIBOR. The initial mandated lead arrangers and bookrunners are Barclays Bank, Commerzbank, First Gulf Bank and HSBC Middle East Limited. Syndication was launched in an initial amount of $100mn and closed significantly oversubscribed. The other participating banks are Arab Banking Corporation, Abu Dhabi Commercial Bank, ING Bank, Mizuho Bank, National Bank of Bahrain, Standard Chartered Bank and Commercial Bank of Dubai. (QE)

Ashghal begins construction of Mashaf-Mesaieed road –

The Public Works Authority (Ashghal) has started constructing the Al Wakrah parallel road that extends from Al Mashaf to Mesaieed. The entire project costs QR2.2bn and is expected to be completed by 2017. The road is 11 kilometers long with five lanes on both sides. The project also includes pedestrian crossing, bridge and separate lanes for motorbikes and pedestrians in addition to a tunnel. (Peninsula Qatar)

ABQK to announce results on October 16 – Ahli Bank

(ABQK) announced its intent to disclose 3Q2014 financial statements on October 16, 2014. (QE)

MCGS to announce results on October 19 – Medicare Group

(MCGS) will announce its 3Q2014 financial statements on October 19, 2014. (QE)

KCBK to disclose results on October 20 – Al Khalij

Commercial Bank (KCBK) will disclose its 3Q2014 financial statements on October 20, 2014. (QE)

QIBK to disclose results on October 20 – Qatar Islamic Bank

(QIBK) will disclose its 3Q2014 financial statements on October 20, 2014. (QE)

QIGD to disclose results on October 21 – Qatari Investors

Group (QIGD) will disclose its 3Q2014 financial statements on October 21, 2014. (QE)

MARK to disclose results on October 21 – Masraf Al Rayan

(MARK) will disclose its 3Q2014 financial statements on October 21, 2014. (QE)

ORDS to announce 3Q2014 results on October 27 –

Ooredoo (ORDS) will disclose its 3Q2014 financial statements on October 27, 2014. (QE)

QFLS to announce results on October 28 – Woqod (QFLS)

will announce its 3Q2014 financial statements on October 28, 2014. (QE)

NLCS to publish results on October 29 – Alijarah Holding

Company (NLCS) will disclose its 3Q2014 financial statements on October 29, 2014. (QE)

QNNS to disclose results on October 29 – Qatar Navigation

(QNNS) will disclose its 3Q2014 financial statements on October 29, 2014. (QE)

Page 3 of 5

Qatar Exchange

Top 5 Gainers Top 5 Decliners

Source: Qatar Exchange (QE)

Source: Qatar Exchange (QE)

Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million)

Source: Qatar Exchange (QE)

Source: Qatar Exchange (QE)

Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million)

Source: Qatar Exchange (QE)

Source: Qatar Exchange (QE)

4.2%

3.9%

2.4% 2.3%

2.0%

0.0%

1.5%

3.0%

4.5%

Ezdan Real Estate

Islamic Holding Group

QNB Group Qatar Insurance

Al Meera Consumer

Goods

-5.2%

-4.4%

-3.8%-3.6%

-1.9%

-6.0%

-4.0%

-2.0%

0.0%

Qatar Cinema &

Film Distribution

Doha Insurance Qatar General

Insurance & Reinsurance

Ooredoo Widam Food Co.

634.8

271.8 257.0220.9

149.3

0.0

225.0

450.0

675.0

Ezdan Real Estate

QNB Group Industries Qatar

Masraf Al Rayan

Doha Bank

30.6

4.2 4.02.8 2.5

0.0

11.0

22.0

33.0

Ezdan Real Estate

Vodafone Qatar Masraf Al Rayan Barwa Real Estate

Doha Bank

0%

20%

40%

60%

80%

100%

Buy Sell

39.80% 37.85%

22.56%15.59%

15.89%

11.52%

21.75%35.04%

Qatari Individuals Qatari Institutions

Non-Qatari Individuals Non-Qatari Institutions

1,711

1,033

1,466

1,277

245

(245)

(500) - 500 1,000 1,500 2,000

Qatari

Non-Qatari

Net Investment Total Sold Total Bought

Page 4 of 5

TECHNICAL ANALYSIS OF THE QE INDEX

Source: Bloomberg

The QE Index declined around 44 points and drifted lower for the second consecutive week. The index failed to make any further headway above 13,900.0

and retreated, as the bulls were unable to push through. However, the index managed to stay above the 13,750.0-13,800.0 support zone after testing these

levels few times in the week. This proves the index has strong support and attracts buying interest near this support band. The intermediate trend formed

due to the current fall is not alarming as the index is trading above its strong support zone. Such corrections are a part of the bull-phase. Going ahead,

13,750.0-13,800.0 will be the key band to watch out for, as it will act as a make or break level for the index. Bulls need not worry until the index stays above

this support band. Any penetration below this band may result in selling pressure and would pull the index toward the 55-day moving average. In case of

sustained weakness, the next support level will be at 13,500.0. On the positive side, technically, the big rally may only resume when the index breaches the

21-day moving average. Meanwhile, both the momentum indicators are providing mixed signals, indicating lack of clarity in index’s current direction. Thus,

the traders may expect a volatile week ahead.

DEFINITIONS OF KEY TERMS USED IN TECHNICAL ANALYSIS

RSI (Relative Strength Index) indicator – RSI is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between 0 to 100. The index is deemed to be overbought once the RSI approaches the 70 level, indicating that a correction is likely. On the other hand, if the RSI approaches 30, it is an indication that the index may be getting oversold and therefore likely to bounce back.

MACD (Moving Average Convergence Divergence) indicator – The indicator consists of the MACD line and a signal line. The divergence or the convergence of the MACD line with the signal line indicates the strength in the momentum during the uptrend or downtrend, as the case may be. When the MACD crosses the signal line from below and trades above it, it gives a positive indication. The reverse is the situation for a bearish trend.

Candlestick chart – A candlestick chart is a price chart that displays the high, low, open, and close for a security. The ‘body’ of the chart is portion between the open and close price, while the high and low intraday movements form the ‘shadow’. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis.

Doji candlestick pattern – A Doji candlestick is formed when a security's open and close are practically equal. The pattern indicates indecisiveness, and

based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal.

Shooting Star/Inverted Hammer candlestick patterns – These candlestick patterns have a small real body (open price and close price are near to each

other), and a long upper shadow (large intraday movement on the upside). The Shooting Star is a bearish reversal pattern that forms after a rally. The

Inverted Hammer looks exactly like a Shooting Star, but forms after a downtrend. Inverted Hammers represent a potential bullish trend reversal.

Contacts

Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian

Head of Research Senior Research Analyst Senior Research Analyst

Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa

Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666

Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 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 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 5 of 5

Source: Bloomberg

Company Name

Price

(October 02)

% Change

5-Day

% Change

YTD

Market Cap.

QR Million TTM P/E P/B Div. Yield

Qatar National Bank 207.90 2.41 20.87 145,474 14.8 2.8 3.4

Qatar Islamic Bank 114.50 1.33 65.94 27,056 19.1 2.3 3.5

Commercial Bank of Qatar 72.50 1.54 22.88 21,528 13.4 1.3 2.3

Doha Bank 59.00 0.17 1.37 15,244 10.7 1.4 7.6

Al Ahli Bank 53.10 (0.75) 25.51 8,772 15.7 2.3 N/A

Qatar International Islamic Bank 89.60 (0.99) 45.22 13,563 17.2 2.6 4.2

Masraf Al Rayan 55.80 (0.18) 78.27 41,850 23.4 4.1 2.7

Al Khaliji Bank 22.20 (0.05) 11.06 7,992 15.3 1.4 4.5

National Leasing 27.70 (1.07) (8.13) 1,371 32.9 1.1 5.4

Dlala Holding 61.80 0.32 179.64 1,372 17.4 5.1 N/A

Qatar & Oman Investment 17.88 (0.11) 42.81 563 22.9 1.7 3.4

Islamic Holding Group 124.20 3.85 170.00 497 40.7 8.3 1.4

Banking and Financial Services 285,280

Zad Holding 88.40 (1.78) 27.19 1,156 10.7 1.5 4.0

Qatar German Co. for Medical Devices 13.69 (1.16) (1.16) 158 N/M 0.9 N/A

Salam International Investment 19.84 (0.70) 52.50 2,268 15.9 1.4 5.0

Medicare Group 130.70 0.15 148.95 3,678 29.4 4.5 1.4

Qatar Cinema & Film Distribution 46.00 (5.15) 14.71 263 22.4 1.9 N/A

Qatar Fuel 227.40 1.47 4.05 19,206 16.1 3.1 3.4

Qatar Meat and Livestock 62.70 (1.88) 21.28 1,129 20.1 4.6 3.3

Al Meera Consumer Goods 186.20 2.03 39.68 3,724 14.4 2.9 4.3

Consumer Goods and Services 31,582

Qatar Industrial Manufacturing 47.30 (0.73) 12.17 2,248 11.1 1.5 N/A

Qatar National Cement 141.70 (0.56) 19.08 6,958 15.9 2.8 4.2

Industries Qatar 190.00 (0.52) 12.49 114,950 18.3 3.8 5.8

Qatari Investors Group 58.70 0.34 34.32 7,298 31.9 3.4 1.3

Qatar Electricity and Water 190.10 0.58 14.96 20,911 14.3 3.5 3.6

Mannai Corp. 115.50 1.32 28.48 5,269 9.4 2.7 4.8

Aamal 15.70 (0.57) 4.67 9,420 17.6 1.3 N/A

Gulf International Services 122.40 (1.77) 150.82 22,747 26.8 7.0 1.3

Mesaieed Petrochemical Holding 33.30 (0.75) N/A 41,835 N/A 3.1 1.1

Industrials 231,636

Qatar Insurance 100.50 2.34 88.91 16,134 16.5 3.0 2.0

Doha Insurance 33.00 (4.35) 32.00 1,650 11.5 1.6 6.1

Qatar General Insurance & Reinsurance 44.30 (3.80) 10.98 3,064 2.1 0.6 2.8

Al Khaleej Takaful Insurance 47.00 (0.84) 67.40 1,043 12.2 1.6 N/A

Qatar Islamic Insurance 86.70 (1.48) 49.74 1,301 15.5 4.6 4.3

Insurance 23,193

United Development 28.90 (0.34) 34.21 10,233 20.6 1.0 3.3

Barw a Real Estate 41.45 1.34 39.09 16,129 12.4 1.2 4.8

Ezdan Real Estate 20.60 4.20 21.18 54,641 42.3 1.9 1.5

Mazaya Qatar Real Estate Development 24.05 (0.62) 115.12 2,405 13.5 2.0 3.1

Real Estate 83,409

Qatar Telecom 132.90 (3.63) (3.13) 42,571 17.0 1.7 3.0

Vodafone Qatar 21.45 (0.42) 100.28 18,134 N/M 3.2 0.8

Telecoms 60,704

Qatar Navigation (Milaha) 95.80 (0.52) 15.42 10,972 12.2 0.9 5.2

Gulf Warehousing 52.00 0.00 25.30 2,473 21.1 3.1 2.9

Qatar Gas Transport (Nakilat) 24.37 (0.33) 20.35 13,647 16.6 3.7 4.5

Transportation 27,092

Qatar Exchange 742,896