The Group Securities: Weekly Report on QSE Performance, 04-08 June 2017

In light of extraordinary circumstances, QSE's indices fluctuated vehemently over the last week, namely because of the political spat between Gulf countries and Qatar, as well as the decline of oil prices. Oil prices fell by 2 dollars to the level of 46 dollars per barrel, though politics was the factor that strongly affected QSE trading. Stock prices slid sharply at the beginning of the week, over two days, before recovering in the following days. Foreign portfolios dominated sale transactions with a total of QR 653 million, as against net buy by Qatari portfolios. As result total trading increased by QR3 billion. General index lost around 702 points. Other sectoral indices also declined. Total capitalization lost around QR 35.4 billion. Price-earnings ratio fell 13.04 times the original price. 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 Stock Exchange announces trading suspension on Qatar Fuel Company (WOQOD) on Tuesday, 06 June 2017 due to its EGM being held on that day. The company approved exempting the state of Qatar, Qatar Foundation for Education, Science and Community Development, Qatar Investment Authority and Qatar Holding Company from the requirement for maximum limit of company shares ownership, provided for by Article (9-1) of the Articles of Associations, specifying the maximum ownership limit at 0.000333 of the share capital, currently equaling (33.140) shares. he amendments included increasing the membership of the Board of Directors from 7 members to 9 members, by giving the National Retirement & Social Insurance Fund the right to appoint 2 more Board members, maintaining Qatar Petroleum right to appoint 3 members including the Chairman and the Vice Chairman, and also the General Assembly right to elect 4 members.

3-- Mannai Corporation and Woqod announced the results of their Board of Directors’ (BOD) meeting held on 6 June, 2017 and discussed administrative and financial matters relating to operations of the Companies.

4-- Qatari Investors Group discloses the judgment in favor of the Company for Case No. 394/2017, filed by Shatea Al Nile Company (Ezdan Holding) against Qatari Investors Group, request to approve the plaintiff as a second spare Board Member of the Board of Directors of the defendant’s company in the Board Elections held on 7/11/2016 for the three years (2017, 2018, 2019) and compel the defendant to pay the expenses for the reasons stated in the lawsuit.

Economic Developments

1-- Qatar's central bank announced the result of the Treasury Bills auction held on 1 June 2017. All of the three-, six- and nine-month bills on offer were sold, with bids totaling QR 690 million riyals.

2-- Banks Consolidated Balance Sheet of April has been released showing a rise in total assets / liabilities by QR 25.6 billion to QR 1308.1 billion and a rise of QR 40.5 billion in total domestic public debt, including bonds, to reach QR 464.4 billion. The private sector credit rose QR 0.1 billion to stand at QR 439.1 billion.

3-- Last week, oil prices fell by 4% after US data revealed an increase in its crude oil stockpile, which spurred fears about the ability of OPEC members' agreement to cut the gut. OPEC oil continued its decline, losing 3.6 dollars per barrel, and closed on Thursday at the level of QR 45.78 dollars per barrel.

4-- Last week, Dow Jones index gained 66 points to reach the level of 21272 points. US Dollar exchange rate stood at the level of 110.36 yen, and $ 1.12 per Euro. Gold price increased by 12 dollars to the level of $ 1269 per ounce.