1. Market Review and Outlook
QE Index and Volume
The Qatar Exchange (QE) Index gained 323.29 points, or 2.89%,
during the trading week, to close at 11,515.50 points. Market
capitalization increased by 2.73% to reach QR603.0 billion (bn) as
compared to QR586.9bn at the end of the previous week. Of the 42
listed companies, 24 companies ended the week higher while 15 fell
and 3 remained unchanged. Masraf Al Rayan (MARK) was the best
performing stock with a gain of 10.18% on 9.2 million (mn) shares
traded. On the other hand, Qatari Investors Group (QIGD) was the
worst performing stock with a decline of 15.64% on 1.5mn shares
traded.
11,550
11,452.97
11,375
12,500,000
11,361.62
11,305.87
QE Closed on
February 11, 2014
11,200
0
9-Feb
10-Feb
11-Feb
Volume
Week ended
Feb 06, 2014
2,302.7
602,979.9
586,934.5
2.7
56.1
31.4
26,351
22,641
16.4
42
42
0.0
24:15
24:15
–
Exch. Market Cap. (QR mn)
Volume (mn)
Number of Transactions
Companies Traded
Regional Indices
Qatar (QE)*
Dubai
Abu Dhabi
Saudi Arabia
Kuwait
Oman
Bahrain
Close
11,515.50
4,098.67
4,892.41
8,929.60
7,842.62
7,173.24
1,317.94
WTD%
MTD%
YTD%
2.9
4.3
3.6
1.3
0.1
0.9
1.1
3.2
8.7
4.7
1.9
1.1
1.2
1.8
10.9
21.6
14.0
4.6
3.9
5.0
5.5
Market Indices
Close
Total Return
16,547.0
All Share Index
2,863.6
Banks/Financial Svcs.
2,813.8
Industrials
3,719.9
Transportation
1,994.8
Real Estate
1,986.59
Insurance
2,734.1
Telecoms
1,588.7
Consumer
6,497.0
Al Rayan Islamic Index
3,291.9
Market Indices
Weekly Index Performance
WTD%
0.6%
0.6%
0.8%
0.8%
-1.0%
-0.7%
0.2%
1.8%
0.2%
0.5%
Chg. %
20.3
MTD%
6.2
5.3
6.8
4.3
6.0
3.4
5.2
3.9
2.2
6.3
YTD%
6.2
5.3
6.8
4.3
6.0
3.4
5.2
3.9
2.2
6.3
7.0%
4.3%
3.6%
3.5%
2.9%
1.3%
1.1%
0.9%
0.1%
Weekly Exchange
Traded Value ($ mn)
798.87
3,256.76
1,454.15
864.40
635.29
136.55
14.26
Exchange Mkt.
Cap. ($ mn)
165,578.3
81,685.25
134,906.8
486,974.5#
112,270.3
25,592.0
50,846.9
Kuwait
Oman
Bahrain
Qatar
0.0%
Abu Dhabi
Foreign institutions remained bullish for the week with net buying
of QR147.9mn vs. net buying of QR96.0mn in the prior week.
Qatari institutions turned bearish with net selling of QR31.8mn vs. net
buying of QR102.2mn the week before. Foreign retail investors
remained bearish for the week with net selling of QR55.7mn vs. net
selling of QR41.9mn in the prior week. Qatari retailer investors
remained bearish with net selling of QR60.6mn vs. QR156.1mn the
week before. Thus far in 2014, the QE has witnessed net foreign
portfolio investment inflow of ~$599.2mn vs. ~$1,057mn for the full
year of 2013.
QE Index
70.5
Value Traded (QR mn)
Dubai
Trading value during the shortened week (holiday) increased by
20.25% to reach QR2.77bn vs. QR2.30bn in the prior week. The
Banks & Financial Services sector led the trading value during the
week, accounting for 40.95% of the total equity trading value.
Trading volume increased by 25.69% to reach 70.5mn shares vs.
56.1mn shares in the prior week. The number of transaction rose
by 16.39% to reach 26,351 transactions versus 22,641 transactions in
the prior week. The Banks & Financial Services sector also led the
trading volume, accounting for 29.92% of the total.
13-Feb
Week ended
Feb 13, 2014
2,769.1
Market Indicators
Market Breadth
Masraf Al Rayan (MARK) was the biggest contributor to the QE
Index’s gain. The stock contributed 116.48 points to the index‟s
weekly gain. MARK is up 27.96% year-to-date (YTD). QNB Group
(QNBK) was the second biggest contributor adding 82.09 points to
the index; QNBK is up 10.17% YTD. On the other hand, Qatari
Investors Group (QIGD) shaved 39.48 points off the index during
the week.
12-Feb
Saudi Arabia
During the week, Qatar second largest lender, Commercial Bank
of Qatar (CBQK) reported 2013 results. The bank posted a net profit
of QR300mn vs. our estimate of QR419mn (Bloomberg consensus:
QR428mn), up by ~7% quarter-over-quarter (down ~33% year-overyear or YoY). Net profit on a YoY basis declined primarily on the back
of significant increases in provisions and expenses. The bank
announced a cash dividend of QR2.0/share (dividend yield of 2.8%)
and a 20% bonus share issue.
25,000,000
11,515.50
TTM P/E**
P/B**
Dividend Yield
14.6
17.5
13.3
17.9
16.7
11.1
9.2
1.9
1.5
1.7
2.2
1.2
1.6
0.9
4.1
2.0
3.7
3.3
3.6
3.6
3.7
#
Source: Bloomberg, country exchanges and Zawya (** Trailing Twelve Months; * Value traded ($ mn) do not include special trades, if any) ( Data as of February 12, 2013)
Page 1 of 5

2. News
Economic News
 QNB Group: Qatar’s inflation may rise to 3.8% in 2014 from
3.1% last year – According to a QNB Group report, Qatar‟s
inflation may rise to 3.8% this year from 3.1% last year in view
of a recovery in land prices in December and January. A
recovery in land prices in December and January could reverse
the slowdown in rent inflation by mid-2014. Rent inflation has
slowed in recent months in line with QNB Group‟s projections,
tracking movements in the underlying price of land. Rent
inflation slowed from 6.7% in the year to August 2013 to 4.8%
in the year to December 2013, based on the Consumer Price
Index (CPI) data released by the Ministry of Development
Planning & Statistics (MSDP). QNB Group has analyzed data
purely on land transactions in Qatar, based on weekly statistics
published by the Ministry of Justice (MoJ). This data suggests
that the slowdown in rent inflation tracked land prices with a sixmonth delay. Land prices fell from March to November 2013 on
the basis of an average of prices for the last 12 months (which
reduces the impact of seasonal factors and single large
transactions). QNB Group said as rents tend to follow land
prices with a six-month delay, we expect rent inflation to
continue to slow to below 4% between now and May 2014. The
report added that land prices are a fundamental driver of rents
in Qatar and falling land prices are likely to slow rent inflation.
Land is the main component of the cost of building, developing
and buying real estate. (Gulf-Times.com)
Market & Corporate News
 CBQK: Weak 4Q2013 profitability on the back of significant
provisions and expenses – CBQK posted a net profit of
QR300mn vs. our estimate of QR419mn (Bloomberg
consensus: QR428mn), up by ~7% QoQ (down ~33% YoY).
Net profit on a YoY basis declined primarily on the back of
significant increases in provisions and expenses. The bank
booked provisions of QR267mn in 4Q2013 vs. QR101mn in
4Q2012 (3Q2013: QR231mn). Net interest income dipped by
2% QoQ (+37% YoY) to reach QR632mn. Commercial Bank
registered non-interest income (including income from
associates) of QR464mn in 4Q2013 vs. QR274mn in 3Q2013
which translates into a growth of 69% QoQ (+15% YoY). This
robust performance was mainly due to higher fees &
commissions and higher foreign exchange income. Operating
expenses (mainly attributed to ABank) hindered the growth
stemming from net operating income. Expenses surged by 45%
and 83% QoQ and YoY, respectively. Moreover, the bank‟s
cost-to-income ratio deteriorated in 4Q2013 (48%) vs. 37% in
4Q2012. The bank announced a cash dividend of QR2.0/share
(DY: 2.8%) vs. our estimate of QR5.50/share and a 20% bonus
share issue. While the cut makes business sense, we await
further color from management to determine the dividend policy
going forward. Loans significantly expanded QoQ and YoY.
CBQK‟s loan book grew by 3% QoQ (+38% YoY). Moreover,
deposits followed suit and expanded by 9% QoQ (+52% YoY).
As such, the LDR rested at 106% vs. 112% in 3Q2013 (117%
at the end of 2012). The growth in loans and deposits is a onetime occurrence due to the consolidation of ABank. ABank
contributed 17% and 13% to overall loans and deposits,
respectively. Finally, CBQK‟s investment portfolio expanded by
25% QoQ (+59% YoY). CBQK‟s NPL ratio marginally
deteriorated QoQ to 3.6% vs. 3.3% in 3Q2013 (1.1% at the end
of 2012). Moreover, the bank issued Tier 1 Capital Notes
(QR2bn) which improved the CAR to 14.1% vs. 12.5% in
9M2013 (2012:17.0%). We maintain our target price of
QR87.59/share and rate the stock an Outperform. While
reported 4Q2013 results were below our estimates, we believe
that the reduction in dividends along with the additional
provisioning undertaken during the quarter should benefit the
bank‟s expansion strategy/profitability going forward.
 QIMD reports net profit of QR202.1mn in 2013 – QIMD‟s
financials revealed a net profit of QR202.1mn in 2013 versus
QR208.2mn in 2012. Earnings per Share (EPS) amounted to
QR5.11 in 2013 compared to QR5.26 in 2012. The company‟s
Board of Directors recommended 20% bonus shares along with
the results. (QE)
 QGRI reports net profit of QR1.37bn in 4Q2013 – Qatar
General Insurance & Reinsurance Company (QGRI) has
reported a net profit of QR1.37bn in 4Q2013 as compared to
QR19.3mn in 3Q2013. The net earned premiums was
QR52.8mn in 4Q2013 indicating a fall of 0.1% QoQ. For the full
year 2013, EPS amounted to QR36.96 vs. QR3.04 in 2012. The
significant increase in 4Q2013 net income is due to fair value
gain on investment properties of QR2.0bn in 2013 vs.
QR39.9mn in 2012. Meanwhile, QGRI‟s board of directors has
recommended a cash dividend of QR1.50 and a 20% stock
dividend per share, which will have to be approved by
shareholders at the annual general assembly, scheduled on
March 16, 2014. (QE)
 QFLS report net profit QR1.2bn profit in 2013 – Qatar Fuel
Company (Woqod) posted a net profit of QR1.2bn in 2013 vs.
QR1.1bn in 2012. Earnings per Share (EPS) amounted to
QR18.72 in 2013 compared to QR17.70 in 2012. QFLS‟ Board
of Directors recommended cash dividends of QR10.0 per
share, in addition to 30% bonus shares i.e. 3 shares per 10
outstanding shares. (QE)
 QIGD post net profit of QR220.6mn for 2013 – Qatari
Investors Group (QIGD) posted a net profit of QR220.6mn in
2013 versus QR152.2mnn in 2012. Earnings per Share (EPS)
amounted to QR1.77 in 2013 compared to QR1.22 in 2012. The
Board has recommended distribution of cash dividends of
QR0.75 per share (same as last year). This recommendation
will be raised to the Ordinary-General Assembly meeting which
will take place at Al Mirqab Hall, Four Seasons Hotel on
Wednesday, 26th February, 2014 at 4.00 pm. In case a quorum
is not met, the Extra-General Assembly meeting will be held on
Wednesday, 5th March 2014 at 4:00pm on the same venue.
(QE)
 QNB Group aims to be top lender in Mideast, Africa by
2017 – QNB Group‟s Chief Financial Officer has said that the
bank is aiming to become the largest lender in the Middle East
and Africa, as it continues to look beyond its home market for
new growth opportunities. QNB Group, currently the biggest
bank in the Gulf region, is looking for acquisition targets in
Turkey, Morocco and sub-Saharan Africa. He further added that
the bank is targeting 31% of its profits and 26% of its lending to
come from its international operations in 2014, up from 28%
and 19% respectively in 2013. The bank hopes to achieve 40%
of its profits from foreign sources by 2017. The bank is targeting
a net profit gain of 7-9% and a loan growth of 12-14% in 2014.
(Gulf-Times.com)
Page 2 of 5

3. Qatar Exchange
Top 5 Gainers
Top 5 Decliners
0.0%
12.0%
10.2%
-2.9%
-2.7%
Mannai Corp.
-3.6%
Ezdan Real
Estate
-4.5%
7.7%
8.0%
-6.0%
7.2%
5.6%
5.4%
4.0%
-12.0%
-15.6%
0.0%
Masraf Al
Rayan
Qatar Fuel
Vodafone
Qatar
Qatar General
Qatar
Insurance & International
Reinsurance Islamic Bank
Source: Qatar Exchange (QE)
-18.0%
Qatari
Investors
Group
Dlala Holding
National
Leasing
Source: Qatar Exchange (QE)
Most Active Shares by Value (QR Million)
Most Active Shares by Volume (Million)
600.0
24.0
18.8
400.0
357.9
16.0
257.6
226.4
9.2
206.9
177.0
200.0
8.0
5.8
5.1
3.7
0.0
0.0
Masraf Al
Rayan
Commercial
Bank of Qatar
Vodafone
Qatar
Industries
Qatar
Source: Qatar Exchange (QE)
Barwa Real
Estate
Vodafone
Qatar
Masraf Al
Rayan
Barwa Real
Estate
United
Development
Commercial
Bank of Qatar
Source: Qatar Exchange (QE)
Investor Trading Percentage to Total Value Traded
Net Traded Value by Nationality (QR Million)
92
16.01%
100%
21.35%
80%
13.13%
60%
20.42%
21.57%
45.10%
47.29%
Non-Qatari
863
15.14%
955
40%
(92)
20%
Qatari
1,907
1,814
0%
Buy
Sell
Qatari Individuals
Qatari Institutions
Non-Qatari Individuals
Non-Qatari Institutions
Source: Qatar Exchange (QE)
(500)
Net Investment
500
1,000
Total Sold
1,500
2,000
2,500
Total Bought
Source: Qatar Exchange (QE)
Page 3 of 5

4. TECHNICAL ANALYSIS OF THE QE INDEX
Source: Bloomberg
The QE Index extended its relentless rally in a truncated week, registering gains on every single trading day tagging a new 52-week high. The positive
development was that the index managed to cling onto its support near the 11,170.0 level and cleared the (11,200.0, 11,300.0, 11,400.0 and 11,500.0)
psychological levels as strong buying interest pushed the index at its highest point since 2008. The index after witnessing a strong rally a couple of weeks
back, witnessed correction creating a strong base near the 11,000.0 level and rebounded to record an impressive rally. The index is currently in strong bullrun mode and may continue its bullish momentum toward the 11,600.0-11,700.0-750.0 levels as it has little resistance until then. We believe the bulls may
continue their dominance over the bears until the index trades above the support of the ascending trendline. However, traders may need to keep a close
watch near the 10,450.0 level for any reversal signs. Any dip below this level may provide a buying opportunity near the 10,340.0 level. Meanwhile, the
index has support for a further higher move from the RSI which is trending strongly in the overbought territory, while the MACD has crossed the signal line
into the positive territory indicating the possibility of a prolonged near-term uptrend. Thus, traders may adopt a bullish approach, and accumulate on every
possible dip, but must also follow strict stop losses.
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.
Page 4 of 5

5. Price % Change 5(Feb 06)
Day
% Change
YTD
Market Cap.
QR Million
TTM P/E
P/B
Div. Yield
189.50
5.28
10.17
132,599
14.0
2.5
3.7
Qatar Islamic Bank
81.00
5.19
17.39
19,140
14.4
1.6
4.6
Commercial Bank of Qatar
71.50
(1.79)
0.99
17,692
11.0
1.1
8.4
Doha Bank
65.40
1.08
12.37
16,898
11.4
1.5
6.3
Al Ahli Bank
64.20
(1.98)
16.73
8,158
15.5
2.3
4.7
Qatar International Islamic Bank
73.90
5.42
19.77
11,186
14.9
2.1
4.7
Masraf Al Rayan
40.05
10.18
27.96
30,038
17.6
2.9
2.5
Al Khaliji Bank
21.20
4.13
6.05
7,632
13.9
1.4
4.7
National Leasing
29.45
(3.60)
(2.32)
1,457
16.7
1.1
5.1
Dlala Holding
20.25
(4.48)
(8.37)
450
N/M
2.0
N/A
Qatar & Oman Investment
12.40
(1.59)
(0.96)
391
26.0
1.2
4.0
Islamic Holding Group
45.45
0.11
(1.20)
182
20.1
3.1
2.5
Company Name
Qatar National Bank
245,821
Banking and Financial Services
Zad Holding
70.00
0.00
0.72
916
9.3
0.7
5.7
Qatar German Co. for Medical Devices
14.50
2.11
4.69
167
N/M
0.9
N/A
Salam International Investment
14.37
1.41
10.45
1,643
14.4
1.0
4.9
Medicare Group
57.00
5.36
8.57
1,604
26.1
2.1
3.2
Qatar Cinema & Film Distribution
42.50
4.81
5.99
243
32.5
1.8
4.7
312.60
7.68
10.03
20,309
17.0
3.4
3.2
48.00
0.00
(7.16)
864
14.4
3.5
8.3
152.30
3.61
14.25
3,046
20.9
2.4
5.3
Qatar Fuel
Qatar Meat and Livestock
Al Meera Consumer Goods
28,792
Consumer Goods and Services
52.00
(0.76)
2.77
2,059
9.8
1.5
5.8
Qatar National Cement
117.00
(0.43)
(1.68)
5,745
13.2
2.3
5.1
Industries Qatar
179.20
3.58
6.10
108,416
13.3
3.4
4.3
5,097
23.1
2.4
1.8
0.99
18,370
13.3
3.0
4.0
Qatar Industrial Manufacturing
41.00
Qatari Investors Group
(15.64)
(6.18)
Qatar Electricity and Water
183.70
1.16
Mannai Corp.
102.00
(2.86)
13.46
4,653
10.1
2.0
4.7
Aamal
14.70
(0.41)
(2.00)
8,820
14.0
1.3
N/A
Gulf International Services
84.30
2.18
12,533
20.7
4.4
1.8
38.20
165,694
Industrials
Qatar Insurance
82.00
0.74
23.31
10,531
12.9
2.0
2.5
Doha Insurance
30.50
0.16
22.00
785
11.7
1.4
3.0
Qatar General Insurance & Reinsurance
47.50
5.56
(0.84)
2,738
1.3
0.8
1.8
Al Khaleej Takaful Insurance
38.40
(0.26)
5.21
656
13.7
1.1
2.2
Qatar Islamic Insurance
65.00
3.17
12.26
975
15.3
3.5
5.4
15,685
Insurance
United Development
22.43
(0.49)
(0.80)
7,564
9.2
0.7
4.5
Barwa Real Estate
30.55
(0.33)
2.52
11,888
17.4
0.9
4.9
Ezdan Real Estate
16.50
(2.65)
(2.94)
43,766
N/M
1.6
0.8
Mazaya Qatar Real Estate Development
12.36
(1.12)
10.55
1,236
18.7
1.1
4.9
64,454
Real Estate
148.50
0.20
8.24
47,568
18.0
1.9
3.4
12.36
7.20
15.41
10,449
N/M
1.8
N/A
Qatar Navigation (Milaha)
91.60
2.92
10.36
10,491
10.7
0.9
4.1
Gulf Warehousing
42.00
0.00
1.20
1,998
19.7
2.5
N/A
Qatar Gas Transport (Nakilat)
Transportation
21.48
3.27
6.07
12,029
15.7
3.4
4.7
Qatar Telecom
Vodafone Qatar
58,017
Telecoms
24,517
Qatar Exchange
602,980
Source: Bloomberg
Contacts
Saugata Sarkar
Ahmed M. Shehada
Keith Whitney
Sahbi Kasraoui
Head of Research
Head of Trading
Head of Sales
Manager - HNWI
Tel: (+974) 4476 6534
Tel: (+974) 4476 6535
Tel: (+974) 4476 6533
Tel: (+974) 4476 6544
saugata.sarkar@qnbfs.com.qa
ahmed.shehada@qnbfs.com.qa
keith.whitney@qnbfs.com.qa
sahbi.alkasraoui@qnbfs.com.qa
QNB Financial Services SPC
Contact Center: (+974) 4476 6666
PO Box 24025, 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