The Group Securities: Weekly Report on QSE Performance, 26-30 Mar 2017

Though oil prices remained steady over the last week, with Opic rising by the end of the week to $ 50.2 per barrel, QSE performance remained weak at all levels. Trading volumes fell by 13.5% to QR 1.57 billion. General index failed to break through the resistance barrier at the level of 10450 points, sliding below 10400 points. Locally, the only significant event in this week was the distribution of QR 3.5 cash dividend by Qatar Islamic Insurance. Moreover, several companies announced the dates of their disclosure of their financials for Q1 2017. Meanwhile, Qatari portfolios and Qatari individuals sold net as against net buy by non-Qatari portfolios and individual investors. By the end of the week, General Index lost 55 points to the level of 10391 points. Five sectoral indices declined; namely telecommunications. Total capitalization fell by QR3.2 billion to QR556.4 billion, and price-earnings ratio remained unchanged. The Group reviews QSE performance in this week with illustrative charts combined with corporate business news, and a list of the affecting economic factors.

Corporate News:

1-- Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, announced last week that it has affirmed Doha Bank’s (DB) Financial Strength Rating (FSR) at ‘A’. The principal supporting factors are the Bank’s good capital base (currently being further augmented by a rights issue) and good overall asset quality. While the NPL ratio is above average for the peer group, so is the more than full loan-loss reserve coverage, and taken together, the asset quality position is seen as being sound.

2-- Qatar Islamic Insurance approved of the recommendation made by the Board of Directors to distribute cash dividends equaling 35 % of the shares nominal value i.e. QR 3,5 per share for the Year Ended 31.12.2016. The board also approved election nine winners for the Board of Directors for the next three years starting from 2017.

3-- Qatar German Medical Devices Company announced that it will not be able to disclose the financial statements for the financial year ended 31 December 2016 on Wednesday 29/03/2017 due to lack of quorum as the Chairman of the Board of Directors travelled with the Prime Minister's delegation to the Investment Forum held in the United Kingdom and as the Vice Chairman is also abroad due to the health conditions of his family. Accordingly, the disclosure deadline will be extended to 02/04/2017 until the Board members return.

4-- Several companies announced that the disclosure of their financial results for Q1 2017 will be in the second half of April; namely Al Rayan, Al Khaliji, Al Ahli, Water& Electricity Company, and Al Khaleej Takaful Group.

Economic Developments

1-- Banks consolidated balance sheet for February has been released; it shows a rise in total assets by about QR 2.5 billion to stand at QR 1264.4 billion.  The total domestic public debt, including bonds, increased by about QR 18.1 billion to QR 436.9 billion, while the total domestic private sector deposits fell by QR 2.1 billion to the level of QR 438.5 billion.

2— Qatar's trade balance registered a surplus of QR12.3 billion in February 2017, an impressive 74-percent increase from a year ago and a 12.1-percent hike from January, 2017.

3-- Last week, Opec oil prices gained around 0.5 dollars and closed at $ 50.20 per barrel on Thursday.

4-- Last week, Dow Jones index gained 252 points to reach the level of 20663 points. US Dollar exchange rate decreased to the level of 111.38 yen, and $ 1.07 per Euro. Gold price increased by 19 dollars to the level of $ 1247 per ounce.