The Group Securities: Weekly Report on QSE Performance, 09-13 April 2017

Though oil prices resurged over the last week, surpassing 53 dollars per barrel; as well as the start of the release of financial results of first quarter of 2017; Qatar Stock Exchange performance did not reflect this development and continued to decline. On the one hand, total trading volume declined to the level of QR1.09 billion, while general index settled at 10451 points, slightly down.  Sectoral indices fluctuated between rise and fall.  The share price of 31 companies fell down, while 12 companies ended the week up. Still, total capitalization increased by QR 1 billion. Individual investors bought net, while portfolio investors exclusively dominated net buy transactions. 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-- Qatar National Bank (QNB) net profit for the first quarter of 2017 amounted to QR 3.2 billion compared to QR 2.8 billion in the corresponding period last year. Earnings per share amounted to QR 3.5 compared to QR 3.1 in the corresponding period in 2016. Net operating income for the first quarter of 2017 increased by 31.5% to QR 5.43 billion, of which QR 4.1 billion was net interest income. Interest income jumped 71% to QR 9.18 billion, while the cost of deposits increased by 139.7% to QR5 billion. Total expenses increased to QR 2 billion including an increase of QR 282 million in the cost of employees to reach QR 821 million, increase in other expenses to QR 631 million and increase in customer loan losses which stood at QR 399 million. As a result, the Bank's net profit in the first quarter increased by 11.8% to QR 2865 million. In terms of the comprehensive income, foreign currencies exchange rate differences recorded a profit of QR 153.5 million compared to a loss of QR 882.3 million in the corresponding period last year. Net change in the fair value recorded a profit of QR 202 million compared to a loss of QR 498 million. As a result, total income reached QR 3185.8 million compared to QR 1 billion in the corresponding period last year.

2-- Ooredoo announced that Ooredoo Kuwait has been informed that the Kuwait Cassation Court has ruled in its favor in Law Suit no. 667/14, Ooredoo Kuwait versus the Ministry of Telecommunications. In the ruling, the court has negated the earlier judgement regarding tariffs on numbers that have been withheld and on numbers in use at the time of ruling. Both parties will be liable for their own legal costs. 

3-- Mazaya Qatar Real Estate Development Company Annual General Meeting (AGM) held on Wednesday, April 12, 2017 approved distributing bonus shares by the rate of 5 shares for every 100 shares. The meeting also approved all items on the agenda.   The general assembly meeting elected members of the Board of Directors for the new term of the next three years (2017-2019).
 
Economic Developments

1-- Banks consolidated balance sheet for March has not been released, but that of February 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-- The Ministry of Development Planning and Statistics (MDPS) has released the Consumer Price Index (CPI) for the month of March 2017. Data shows that the annual inflation rate increased by 0.9% when compared to CPI of 0.7% in February; 1.2% in January; 1.8% December; 2% in November and 2.2% in October 2016

3-- Last week, OPEC oil prices gained around 1.85 dollar and closed at $ 53.67 per barrel on Thursday.

4-- Last week, Dow Jones index lost 203 points to reach the level of 220453 points. US Dollar exchange rate decreased to the level of 108.64 yen, and $ 1.06 per Euro. Gold price increased by 34 dollars to the level of $ 1290 per ounce.