QE Intra-Day Movement

Market Indicators Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth Market Indices Close 11,534.26 2,063.68 2,052.24 2,537.34 1,349.05 1,709.99 2,036.63 1,091.44 4,938.93

1 Oct 12 123.5 468,764.0 3.8 2,345 37 15:14 1D% 0.1 0.1 (0.2) 0.4 0.6 0.3 0.2 (0.1) 0.1 Close# 52.25 1.92 53.75 5.30 0.41 Close
#

30 Sep 12 164.3 468,216.2 4.8 3,000 37 14:20 WTD% 0.3 0.2 (0.0) 0.8 0.4 0.3 0.2 (0.4) (0.0) 1D% 10.0 9.7 8.8 7.3 5.4 YTD% 3.4 7.1 3.9 11.2 (8.5) 2.0 16.2 14.6 45.8 Vol. 000 1,735.1 37.2 1,514.7 2.0 19,079.3

%Chg. (24.8) 0.1 (21.3) (21.8) 0.0 TTM P/E N/A 9.8 11.5 10.7 10.6 3.0 11.9 14.0 13.9 YTD% N/A (12.7) N/A 16.5 59.7 YTD% (9.2) (11.7) (24.2) 6.3 (5.5)

8,530 8,520

8,510
8,500 9:30

10:00

10:30

11:00

11:30

12:00

12:30

13:00

Qatar Commentary The QE index rose 0.1% to close at 8,522.7. Gains were led by the Transportation and Industrials indices, gaining 0.6% and 0.4% respectively. Top gainers were Qatar Meat & Livestock Co. and Qatar Islamic Insurance, rising 2.1% and 1.8% respectively. Among the top losers, Aamal Co. fell 1.0%, while Qatar International Islamic Bank declined 0.6%. GCC Commentary Saudi Arabia: The TASI index gained 0.6% to close at 6,882.1. Gains were led by the Transport and Real Estate Development indices increasing 1.6% and 1.3% respectively. Saudi Enaya Cooperative Insurance Co. increased 10.0%, while Alinma Tokio Marine Co. was up 9.9%. Dubai: The DFM index increased 1.9% to close at 1,608.9. The Real Estate & Construction index gained 3.6%, while the Investment & Financial Services index rose 3.4%. National General Insurance Co. jumped 14.1%, while Gulf General Investment Co. gained 7.7%. Abu Dhabi: The ADX benchmark index rose 1.1% to close at 2,634.9. Gains were led by the Real Estate and Services indices, increasing 4.5% and 2.2% respectively. Abu Dhabi National Hotels gained 9.7%, while National Bank of Fujairah was up 7.3%. Kuwait: The KSE index declined 0.1% to close at 5,974.7. The Parallel Market index fell 1.5%, while the Insurance index was down 1.0%. Al Safat Real Estate Co. decreased 9.4%, while Flex Resorts & Real Estate Co. fell 9.1%. Oman: The MSM index gained 0.5% to close at 5,562.9. The Banking & Investment rose 1.0%, while the Industrial index was up 0.5%. Oman Packaging increased 7.5%, while Oman & Emirates Inv. Hold. Co. rose 4.6%. Qatar Exchange Top Gainers Qatar Meat & Livestock Co. Qatar Islamic Insurance Industries Qatar Qatar Industrial Manufacturing Co. Qatar Gas Transport Co. Qatar Exchange Top Vol. Trades Qatar German Co. for Med. Dev. Masraf Al Rayan Gulf International Services Qatar Gas Transport Co. Al Khaliji Close* 73.50 57.50 142.00 56.00 15.89 Close* 14.80 27.05 28.10 15.89 17.19 1D% 2.1 1.8 0.9 0.9 0.9 1D% 0.3 0.0 (0.2) 0.9 (0.1) Vol. 000 220.3 0.9 34.5 42.0 267.0 Vol. 000 690.6 387.5 383.2 267.0 230.7 YTD% 130.8 0.0 6.8 (1.8) (9.3) YTD% 74.9 (2.9) 29.6 (9.3) 0.1

Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer GCC Top Gainers## Enaya

Exchange Saudi Arabia Abu Dhabi Saudi Arabia Abu Dhabi Dubai

Abu Dhabi Nat. Hotels Takween Adv. Ind. Co Nat. Bank of Fujairah Union Properties GCC Top Losers BBK Mobile Telecom. Co. Aluminum Bahrain ALAFCO National Bank of RAK
##

Exchange Bahrain Saudi Arabia Bahrain Kuwait Abu Dhabi

1D% Vol. 000 (6.0) (3.9) (3.8) (2.9) (2.3) 60.0 19,494.2 15.0 2,058.7 30.0

0.38 9.85 0.50 335.00 4.30

Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity)

Qatar Exchange Top Losers Aamal Co. Qatar International Islamic Bank Doha Bank Medicare Group Qatar National Cement Co. Qatar Exchange Top Val. Trades Qatar Meat & Livestock Co. Gulf International Services Masraf Al Rayan Qatar German Co. for Med. Dev. QNB Group
Source: Bloomberg (* in QR)

Close* 15.76 51.90 55.00 38.60 104.50 Close* 73.50 28.10 27.05 14.80 135.60

1D% (1.0) (0.6) (0.5) (0.5) (0.5) 1D% 2.1 (0.2) 0.0 0.3 (0.1)

Vol. 000 144.0 5.3 45.1 13.9 5.6 Val. 000 16,079.7 10,845.7 10,480.3 10,331.2 10,190.2

YTD% 9.1 (3.9) (14.2) 57.9 (6.7) YTD% 130.8 29.6 (2.9) 74.9 (1.9)

Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain

Close 8,522.68 1,608.94 2,634.92 6,882.12 5,974.68 5,562.91 1,078.72

1D% 0.1 1.9 1.1 0.6 (0.1) 0.5 (0.8)

WTD% 0.3 2.5 1.2 0.0 (0.3) 0.6 (0.4)

MTD% 0.1 1.9 1.1 0.6 (0.1) 0.5 (0.8)

YTD% (2.9) 18.9 9.7 7.2 2.8 (2.3) (5.7)

Exch. Val. Traded ($ mn) 33.91 45.90 42.53 1,366.20 90.65 12.79 0.15

Exchange Mkt. Cap. ($ mn) 128,722.6 49,805.3 79,974.6 368,091.8 104,845.6 19,327.3 19,661.5

P/E** 9.1 14.7 9.2 14.3 32.0 10.6 10.2

P/B** 1.7 0.7 1.1 1.9 1.1 1.5 0.8

Dividend Yield 4.3 3.9 4.7 3.6 3.3 4.5 4.6 Page 1 of 5

Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)

Qatar Market Commentary

The QE index rose 0.1% to close at 8,522.7. The Transportation and Industrials indices were the major contributors to the gains. The index increased on the back of buying support from Qatari shareholders despite selling pressure from non-Qatari shareholders. Qatar Meat & Livestock Co. and Qatar Islamic Insurance were the top gainers, increasing 2.1% and 1.8% respectively. Among the top losers, Aamal Co. fell 1.0%, while Qatar International Islamic Bank declined 0.6%. Volume of shares traded on Monday declined by 21.3% to 3.8mn from 4.8mn on Sunday. Further, as compared to the 30-day moving average of 5.7mn, volume for the day was 34.1% lower. Qatar German Co. for Med. Dev. and Masraf Al Rayan were the most active stocks, contributing 18.4% and 10.3% to the total volume respectively.
Overall Activity Qatari Non-Qatari Buy %* 59.47% 40.52% Sell %* 56.62% 43.38% Net (QR) 3,519,299.72 (3,519,299.72)

Source: Qatar Exchange (* as a % of traded value)

Ratings, Earnings and Global Economic Data

Ratings Updates
Company United Cooperative Assurance Co. # Agency A.M. Best Market Saudi Arabia Type* FSR/ ICR Old Rating New Rating B++/bbb Rating Change Outlook Stable Outlook Change

Source: News reports (* LT Long Term, ST Short Term, FSR- Financial Strength Rating, ICR Issuer Credit Rating, #- ratings assigned)

Earnings Releases
Company Emirates Refreshment Co. (ERC) Dubai Refreshments Company (DRC)
Source: Company data, DFM

Market Dubai Dubai

Currency AED AED

Revenue (mn) 3Q2012 14.7 254.0

% Change YoY 11.3% (5.2%)

Operating Profit (mn) 3Q2012

% Change YoY

Net Profit (mn) 3Q2012 0.1 37.5

% Change YoY NA 22.1%

Global Economic Data

Date 10/01 10/01 10/01 10/01 10/01 10/01 10/01 10/01 10/01 10/01 10/01 10/01 Market US US EU EU France Germany UK UK UK UK Italy China Source Markit ISM Eurostat Markit Markit Markit Lloyds Bank Hometrack Hometrack Markit Markit Markit Indicator Markit US PMI Final ISM Manufacturing Euro-Zone Unemployment Rate PMI Manufacturing PMI Manufacturing PMI Manufacturing Lloyds Business Barometer Hometrack Housing Survey (MoM) Hometrack Housing Survey (YoY) PMI Manufacturing PMI Manufacturing Manufacturing PMI Period September September August September September September September September September September September September Actual 51.1 51.5 11.40% 46.1 42.7 47.4 10 -0.10% -0.50% 48.4 45.7 49.8 Consensus 51.5 49.7 11.40% 46 42.6 47.3 49 44 50.1 Previous 51.5 49.6 11.40% 45.1 46 47.4 10 -0.10% -0.50% 49.6 43.6 49.2

Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)

News
Qatar Qatars population crosses 1.84mn According to the Qatar Statistics Authority (QSA), Qatars population has risen to 1.84mn as of September 2012 vs. 1.7mn at the end of September 2011. Data shows that the male component of the population was 1.36mn, while females totaled 480,588. (Peninsula Qatar) Barwa Bank plans to float Doha IPO According to Barwa Bank CEO Steve Troop, Barwa Bank is planning an Initial Public Offering (IPO) on the Doha stock exchange and is being advised by local investment bank QInvest. Barwa Banks IPO will most likely be an offering by existing shareholders rather than a fresh issue of shares and a potential listing is likely in 1H2013. (Reuters) UDC Board amends the financing contract between banks and UDC United Development Companys (UDC) Board has decided to approve the amendment of the facility agreement between a pool of banks and United Development Company and repay $25mn of the total amount of funding. Additionally, UDC Board also decided to approve the amendment of the facility agreement between pool of banks and Medina Centrale OMC, a wholly owned subsidiary of UDC and repay the amount of QR63.6mn. (QE)

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 QFIB signs agreement to sell ENPI stake Qatar First Investment Bank (QFIB) has signed a share purchase agreement with Saudi Printing & Packaging Company (SPPC) to sell its 71.3% stake in Emirates National Factory for Plastic Industries (ENPI Group). (GulfBase.com) Xstrata shareholders likely to approve $33bn Glencore proposal Xstrata has given its blessing to a revised $33bn bid from Glencore. The revised deal ensures a payment plan to keep its top managers on board. (Gulf-times.com) SIIL to disclose 3Q2012 financial statements on October 21 The board will meet on October 21 to discuss the financial statements for the nine months ended September 30. (QE) Commercialbank to disclose 3Q2012 financial statements on October 22 Commercialbank will disclose 3Q2012 financial statements for the period ending September 30, 2012 on October 22. (QE) Al Khaleej Takaful Group to disclose 3Q2012 financial statements on October 22 Al Khaleej Takaful Group will disclose 3Q2012 financial statements for the period ending September 30, 2012 on October 22. (QE) International Bernanke defends bond buying Federal Reserve Chairman Ben Bernanke defended the Federal Reserves controversial bond-buying stimulus plan, saying it is necessary to support a flagging economic recovery. Bernanke pushed back against accusations that the Fed's policy is laying the groundwork for inflation, enabling the government to run large budget deficits, undercutting the dollar and hurting savers. He said that while the country's unusually weak economic performance had forced the Fed to resort to less conventional tools after lowering interest rates to effectively zero, the Fed's goals of price stability and maximum sustainable employment have not changed. (Reuters) Germany signals Spain should hold off bailout Germany has signaled that Spain should refrain from a Eurozone bailout for its public finances while Spain is ready to request a bailout for its public finances as early as next weekend. German Finance Minister Wolfgang Schaeuble said Spain is taking all the right steps to overcome its fiscal problems and does not need a bailout, arguing that investors will recognize and reward Spanish reforms in due course. (Reuters) Fitch: Government announcements are neutral for Spanish rating Fitch said Spain's latest budget cuts and a key audit on the health of its banks do not affect its rating on the country's sovereign debt. Fitch said the budget measures and bank capital needs do not change the key assumptions underlying its rating for Spain of BBB/Negative outlook. While, rating agency Moodys said Spanish banks' upcoming recapitalization is creditpositive but it may be insufficient. Meanwhile, the ratings agency said the recapitalization amounts published by Spain are below Moody's estimates of what would be needed for Spanish banks to maintain stability in adverse and highly adverse scenarios. (Reuters, Bloomberg) Regional S&P: Regulation could help Saudi insurer premiums recover According to S&P, growth of premiums in Saudi Arabia's Islamic insurance industry has been slowing, but changes in the regulatory environment could reverse that trend in the coming years. S&P said gross premiums in Saudi Arabia grew 9.8% to an estimated SR18bn in 2011. (Reuters)

MODON, ABB ink contract to build new industrial complex Saudi Industrial Property Authority (MODON) has signed a contract with ABB of Switzerland to build a new industrial complex to manufacture high-pressure gas-insulated switches (GIS) and maintenance of electrical transformers in Dammam second Industrial City on an estimated area of 40,000 square meters. The new project involves an investment of more than $40mn. The new production unit will be ready by the mid-2013. (GulfBase.com) Petrochem starts Saudi Polymers Company project National Petrochemical Companys (Petrochem) JV project, Saudi Polymers Company has started full commercial operations. The commercial operations will be reflected in Petrochems financials starting from 4Q2012. (Tadawul) SALAMA receives temporary SAMA approval to sell insurance products Saudi IAIC Cooperative Insurance Company (SALAMA) received SAMAs temporary approval to sell comprehensive motor insurance and motor third party liability products for four months starting October 1. (Tadawul) Al Ahsa Development Company to buy stake from partner in AMSC Al Ahsa Development Companys Board has approved to buy stake in Al-Ahsa Medical Services Company (AMSC) from one of its partners in AMSC. (Tadawul) UAE Central Bank to discuss exposure rules with banks According to the UAEs Central Bank officials, the Central Bank will discuss with commercial banks about their compliance with a deadline for them to limit their exposure to state-linked debt. Under new rules, announced in early April with a September 30 deadline, bank's lending to the governments of the sevenmember UAE federation and related entities is capped at 100% of its capital base, while lending to a single borrower is fixed at 25%. Previously, there was no limit. (Reuters) UAE, Morocco banks bid for BNP's Egypt retail arm Dubaibased Emirates NBD and Morocco-based AttijariWafabank have bid to buy BNP Paribas' Egyptian retail arm. The sale is expected to generate as much as $500mn for BNP Paribas. (Reuters) UAE banks ink AED4bn Arabtec JV finance deal A consortium of UAE banks led by top lender Mashreq has secured an AED4bn financing deal, with a JV between TAVCCC-Arabtec for the construction of midfield terminal building at Abu Dhabis International Airport. The joint mandated lead arrangers for the Shariah-compliant syndicated contracting facility are Al Hilal Bank, First Gulf Bank, Mashreq and Union National Bank, while Mashreq and Arab Bank took part in the deal as lead arrangers. (GulfBase.com) DP World: Willing to buy assets in Latin America DP World said it is ready to look at acquisitions in Latin America to meet demand from customers and has enough cash for investments without needing to sell assets. (Bloomberg) First Gulf Bank said to price $650mn at discount to sukuk First Gulf Bank has raised $650mn from the sale of five-year bonds, pricing the notes at a 27% discount to its last debt sale in January. The lender sold dollar-denominated debt at 210 basis points above the benchmark midswap rate. The bank priced $500mn of Islamic bonds nine months ago at a spread of 287.5 basis points over the midswap rate, a premium that was at 206 basis points. (Bloomberg) FGB to issue 5-year conventional bond under EMTN First Gulf Bank (FGB) has mandated Citigroup, Deutsche Bank, HSBC, NBAD and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners for a 5-year conventional bond
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under FGB's $3.5bn Euro Medium Term Note Program (EMTN). (ADX) DSV to buy Dubai-based Swift Freight Danish freight forwarder DSV has agreed to buy Dubai-based Swift Freight with the aim of expanding in the Middle East and Africa. DSV said the purchase agreement includes full ownership of the companies in the UAE, China and India and initially a 33% share of the companies in Africa. (Reuters) ADIA hires senior private equities executive Abu Dhabi Investment Authority (ADIA) has hired Colm Lanigan to head Principal Investments at its private equities department. Lanigan will be responsible for overseeing the fund's acquisition of equity stakes in private companies. (Reuters) Kuwait Central Bank Governor: Kuwait should cut spending Kuwait Central Banks Governor Mohammad al-Hashel said Kuwait's government should take all necessary measures to cut spending and focus on investing in projects that will benefit the economy in the long-term. (Reuters) CBB Treasury Bills oversubscribed The Central Bank of Bahrains (CBB) BHD35mn issue of Government Treasury Bills this week has been oversubscribed by 306%. The bills have a maturity of 91 days. The weighted average rate of interest is 1.09%, compared with 1.19% for the previous issue on September 19, 2012. (AME Info) Ithmaar Bank, FLB shareholders to discuss possible merger Ithmaar Bank said its negotiations on a proposed merger with one of its Bahrain-based associates, First Leasing Bank, reached an advanced stage. Ithmaar Bank CEO and member of the Board, Mohammed Bucheerei said the Board of both Ithmaar Bank and First Leasing Bank approved the merger plans and that Bahrains banking and financial services regulator, the Central Bank of Bahrain (CBB), also gave its initial approval. He said the proposed merger plans will be presented to Ithmaar Bank and First Leasing Bank shareholders at EGMs for discussion and possible approval. (Bahrain Bourse) Bahrain rail master plan to finish by year-end Bahrain is aiming to complete its rail master plan by the end of 2012, in line with the estimated $149bn that is being spent by Gulf countries as they build up new transport networks. Bahrains Minister of Transportation, Kamal Ahmed said Bahrain is reviewing the alignment of the train network, for linking to Saudi Arabia and Bahrain. (GulfBase.com) Bahrains Isa Bin Salman Highway Revamp Project 60% complete The Bahrain Works Ministry said 60% of the construction work on the BHD1.59mn Isa Bin Salman Highway Revamp Project has been completed. The project was awarded to Bahrain Asphalt Company. (GulfBase.com)

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Rebased Performance

Daily Index Performance

140.0 130.0 120.0 110.0 100.0

90.0 80.0
Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12

2.4%
1.8%
122.5 107.9 101.6 106.0 98.2

1.9%

1.2%
0.6%

1.1%
0.6%

0.5% 0.1%
(0.1%)

0.0%
(0.6%)

Saudi Arabia

(1.2%)

(0.8%)
Kuwait Bahrain Abu Dhabi Oman Dubai
YTD% 10.6 14.9 19.5 24.2 4.5 8.7 4.0 (5.1) 21.8 5.0 9.5 0.6 0.3 (0.1) 1.5 1.4 2.4 (0.8) 0.0 0.3 0.7 2.6

4
QE Index S&P Pan Arab S&P GCC

Source: Bloomberg

Source: Bloomberg

Asset/Currency Performance Gold Silver Crude Oil (Brent) Euro Yen GBP CHF AUD USD Index RUB BRL
Source: Bloomberg

Close ($) 1,775.30 34.66 112.29 1.29 77.99 1.61 1.07 1.04 79.82 31.11 0.49

1D% 0.2 0.3 (0.9) 0.2 0.0 (0.2) 0.2 (0.2) (0.1) (0.2) 0.1

WTD% 0.2 0.3 (0.9) 0.2 0.0 (0.2) 0.2 (0.2) (0.1) (0.2) 0.1

YTD% 13.5 24.5 3.3 (0.6) 1.4 3.8 0.1 1.5 (0.4) (3.2) (8.0)

Global Indices Performance DJ Industrial S&P 500 NASDAQ 100 DAX FTSE 100 CAC 40 Nikkei Shanghai BSE Sensex Bovespa RTS
Source: Bloomberg

Qatar

Close 13,515.11 1,444.49 3,113.53 7,326.73 5,820.45 3,434.98 8,796.51 2,086.17 18,823.91 59,570.80 1,513.81

1D% 0.6 0.3 (0.1) 1.5 1.4 2.4 (0.8) 0.0 0.3 0.7 2.6

WTD%

Contacts

Ahmed M. Shehada
Head of Trading Tel: (+974) 4476 6535 ahmed.shehada@qnbfs.com.qa

Keith Whitney
Head of Sales Tel: (+974) 4476 6533 keith.whitney@qnbfs.com.qa

Saugata Sarkar
Head of Research Tel: (+974) 4476 6534 saugata.sarkar@qnbfs.com.qa

Sahbi Kasraoui
Manager - HNWI Tel: (+974) 4476 6544 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 or 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.

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