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 Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer GCC Top Gainers## Saudi Telecom Co. Dubai Financial Market SRMG Boubyan Petro. Co. Union Properties GCC Top Losers
##

7 Oct 12 183.1 466,232.4 4.9 3,069 40 13:19 1D% 0.3 0.1 0.1 0.1 0.4 0.7 (0.4) 0.1 (0.0) Close# 43.00 1.08 24.50 560.00 0.43 Close
#

4 Oct 12 215.6 466,245.2 7.2 3,437 37 8:24 WTD% 0.3 0.1 0.1 0.1 0.4 0.7 (0.4) 0.1 (0.0) 1D% 4.9 4.9 3.8 3.7 3.1 YTD% 3.1 6.7 3.4 10.9 (8.7) 2.4 15.6 13.2 46.3 Vol. 000 3,958.5 36,725.3 930.9 912.9 29,044.3

%Chg. (15.1) (0.0) (31.4) (10.7) 8.1 TTM P/E N/A 9.8 11.4 10.7 10.6 3.0 11.9 13.8 14.0 YTD% 27.2 28.6 26.0 0.0 65.5 YTD% (19.7) (27.7) 19.1 7.6 3.2

8,512 8,504 8,496 8,488 8,480 9:30

Close 11,506.61 2,056.19 2,042.65 2,529.23 1,346.81 1,716.90 2,027.16 1,077.72 4,957.11 Exchange

10:00

10:30

11:00

11:30

12:00

12:30

13:00

Qatar Commentary The QE index rose 0.3% to close at 8,502.3. Gains were led by the Real Estate and Transportation indices, gaining 0.7% and 0.4% respectively. Top gainers were Gulf Warehousing Co. and Medicare Group, rising 2.8% and 2.2% respectively. Among the top losers, Dlala Brokerage & Inv. Hold. Co. fell 10.0%, while Al Ahli Bank declined 3.4%. GCC Commentary Saudi Arabia: The TASI index declined 0.4% to close at 6,863.3. Losses were led by the Transport and Multi-Investment indices, falling 1.5% and 1.1% respectively. United Electronics Co. fell 4.2%, while Saudi Transport and Investment Co. was down 4.1%. Dubai: The DFM index gained 1.0% to close at 1,644.3. The Investment & Financial Services index rose 2.8%, while the Real Estate & Construction index was up 1.3%. Dubai Financial Market rose 4.9%, while Shuaa Capital was up 4.6%. Abu Dhabi: The ADX benchmark index declined 0.1% to close at 2,647.9. Both the Consumer and Services indices declined 0.4%. Gulf Medical Projects Co. was down 9.8%, while FOODCO Holding fell 9.6%. Kuwait: The KSE index gained 0.2% to close at 6,005.8. Gains were led by the Industrial and Basic Material indices, rising 1.0% and 0.9% respectively. Sokouk Holding Co. gained 9.6%, while Kuwait Real Estate Holding Co. was up 9.4%. Oman: The MSM index rose 0.1% to close at 5,650.4. The Services & Insurance index gained 0.2%, while all other sub-indices ended in red. A'Saffa Foods rose 2.2%, while Al Maha Petroleum Products gained 1.8%. Qatar Exchange Top Gainers Gulf Warehousing Co. Medicare Group Barwa Real Estate Co. Al Khaliji Qatar Electricity & Water Co. Qatar Exchange Top Vol. Trades Dlala Brokerage & Inv. Hold. Co. Qatar Meat & Livestock Co. Qatar German Co. for Med. Dev. Qatar & Oman Investment Co. Mazaya Qatar Real Estate Dev. Close* 41.05 39.00 29.75 17.30 133.20 Close* 36.55 76.70 15.85 11.99 12.00 1D% 2.8 2.2 1.2 0.9 0.7 1D% (10.0) 0.0 (1.9) (1.6) (0.1) Vol. 000 153.0 73.5 290.0 59.5 20.4 Vol. 000 765.9 590.0 531.0 508.4 333.7 YTD% 10.5 59.5 (0.7) 0.8 (4.6) YTD% 151.2 140.8 87.4 19.9 53.6

Saudi Arabia Dubai Saudi Arabia Kuwait Dubai Exchange Bahrain Abu Dhabi Saudi Arabia Qatar Kuwait

1D% Vol. 000 (9.6) (6.4) (4.2) (3.4) (3.0) 157.0 1,804.5 256.3 55.4 1,650.6

Albaraka Banking Gr. Arkan Building Mat. Co. United Electronics Co. Al Ahli Bank ALAFCO

0.75 0.73 92.00 56.50 325.00

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 Dlala Brokerage & Inv. Hold. Co. Al Ahli Bank Mannai Corp Qatar German Co. for Med. Dev. Qatar & Oman Investment Co. Qatar Exchange Top Val. Trades Qatar Meat & Livestock Co. Dlala Brokerage & Inv. Hold. Co. Industries Qatar Masraf Al Rayan Barwa Real Estate Co.
Source: Bloomberg (* in QR)

Close* 36.55 56.50 98.00 15.85 11.99 Close* 76.70 36.55 141.80 26.95 29.75

1D% (10.0) (3.4) (2.0) (1.9) (1.6) 1D% 0.0 (10.0) 0.3 0.0 1.2

Vol. 000 765.9 55.4 0.2 531.0 508.4 Val. 000 45,523.7 28,161.0 10,110.2 8,828.2 8,625.4

YTD% 151.2 7.6 (1.0) 87.4 19.9 YTD% 140.8 151.2 6.6 (3.2) (0.7)

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

Close 8,502.25 1,644.28 2,647.89 6,863.29 6,005.84 5,650.42 1,070.59

1D% 0.3 1.0 (0.1) (0.4) 0.2 0.1 (0.7)

WTD% 0.3 1.0 (0.1) (0.3) 0.2 0.1 (0.7)

MTD% (0.1) 4.1 1.6 0.3 0.4 2.1 (1.5)

YTD% (3.2) 21.5 10.2 6.9 3.3 (0.8) (6.4)

Exch. Val. Traded ($ mn) 50.30 50.79 19.93 1,441.35 90.57 7.25 1.08

Exchange Mkt. Cap. ($ mn) 128,027.4 50,401.8 79,528.8 368,265.8 105,010.1 19,495.6 19,564.8

P/E** 9.1 15.0 9.2 14.3 32.2 10.8 10.1

P/B** 1.7 0.7 1.1 1.9 1.1 1.6 0.8

Dividend Yield 4.3 3.8 4.7 3.6 3.3 4.4 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 0.3% to close at 8,502.3. The Real Estate and Transportation 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. Gulf Warehousing Co. and Medicare Group were the top gainers, increasing 2.8% and 2.2% respectively. Among the top losers, Dlala Brokerage & Inv. Hold. Co. fell 10.0%, while Al Ahli Bank declined 3.4%. Volume of shares traded on Sunday decreased by 31.4% to 4.9mn from 7.2mn on Thursday. Further, as compared to the 30day moving average of 6.0mn, volume for the day was 18.4% lower. Dlala Brokerage & Inv. Hold. Co. and Qatar Meat & Livestock Co. were the most active stocks, contributing 15.6% and 12.0% to the total volume respectively.
Overall Activity Qatari Non-Qatari Buy %* 67.30% 32.70% Sell %* 59.69% 40.31% Net (QR) 13,924,133.11 (13,924,133.11)

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

Earnings
Earnings Releases
Company Jarir Marketing Co. (JMC) Southern Province Cement Co. (SPCC) United Electronics Company (EXTRA)
Source: Company data, Tadawul

Market Saudi Arabia Saudi Arabia Saudi Arabia

Currency SR SR SR

Revenue (mn) 3Q2012

% Change YoY

Operating Profit (mn) 3Q2012 160.0 208.0 26.4

% Change YoY 6.0% 12.4% (2.6%)

Net Profit (mn) 3Q2012 160.7 201.0 28.4

% Change YoY 5.1% 11.7% 7.6%

News
Qatar QNB group net profit up 15.0% YoY QNB Group has announced its financial results for the nine months ended 30 September 2012. The group recorded net profit of QR6.2bn, up by 15.0% compared to the same period last year. Total assets increased by 25.3% YoY to reach QR351.0bn, loans and advances posted strong growth rate of 41.9% YoY to reach QR238.6bn. Meanwhile, customer deposits recorded solid growth of 37.4% YoY to QR268.5bn. The Bank was able to maintain the ratio of non-performing loans to total loans at 1.2%. Provisions were conservatively managed, as the coverage ratio reached 116%. (QE, QNB) Qatar Petroleum sets September land crude at $114.15 barrel According to Qatar News Agency, Qatar Petroleum has set its official price for September sales of Land crude at $114.15 per barrel, up from $110.4 in August. Similarly, it set the September price for Marine crude at $112.3 a barrel, up from $109.14 a barrel in August. (Bloomberg) Qatar Investment Authority approved as QFII in China According to China Securities Journal reports, a new batch of institutions has been approved as Qualified Foreign Institutional Investors (QFII), which includes Qatar Investment Authority. The Chinese authorities will soon define income tax policy for QFIIs, expand investment quota and increase limits on fund remittance. (Bloomberg) QCB: Qatar 1Q2012 budget revenue at QR54bn Qatar Central Bank said Qatars revenue has climbed to QR54bn in 1Q2012 from QR40.6bn a year ago, while expenditure stood at QR44.7bn as compared to QR54bn a year ago. (Bloomberg) Mannai Corp holds EGM to approve rights issue Mannai Corporations board has invited an EGM on October 22 to approve the boards proposals for increasing its share capital by 33% from QR342.1mn to QR456.2mn through a rights issue (one share for every three shares held) of 11.4mn. (QE) QTEL ups stake to 92% in Wataniya Qatar Telecom (QTEL) spent around $1.8bn to substantially raise its stake in Kuwaitbased National Mobile Telecommunications Company (Wataniya), and consolidate its control over the Kuwaiti company. QTEL raised its stake in Wataniya to 92.1% from 52.5% by buying 199.65mn shares for KD2.6 each. (WSJ) QTEL: Stake increase in Wataniya Telecom positive for rating Qatar Telecom (QTEL) said boosting its stake in National Mobile Telecommunications Co. (Wataniya) will be slightly positive for its credit rating. Moodys Investors Service earlier signaled the move could lead to a downgrade. (Bloomberg) QFIB to invest $150mn in Kuwait Energy Company Qatar First Investment Bank (QFIB) will invest $150mn in Kuwait Energy Company. The deal is structured in the form of a convertible murabaha to boost Kuwait Energy's growth plans in exploration and production of oil & gas. (Reuters) Barwa Real Estate to sell company assets worth QR16bn Barwa Real Estate Group plans to sell company assets worth QR16bn to repay its loans. The assets include Barwa Al Khor land in Qatar and Barwa New Cairo project in Egypt. The expected results of this sale will be reflected in the groups 4Q2012 financial statements. (QE) Barwa Real Estate acquires office block in London Barwa Real Estate has acquired ownership of an office block at Cavendish Square in Londons West End through its UK-based company, Cavendish Capital. (QE) Qatar Insurance Co to disclose 3Q2012 results on October 16 Qatar Insurance Company is set to disclose its financial statements for the period ending September 30, 2012 on October 16. (QE) Aamal Co to disclose 3Q2012 financials on October 30 Aamal Company will disclose its financial statements for the period ending September 30, 2012 on October 30. (QE)
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International World Bank cuts East Asia growth outlook The World Bank said policy makers in Asias emerging economies have room to provide more fiscal stimulus as Chinas slowdown drags the regions growth to an estimated 11-year low in 2012. Growth in developing East Asia (which excludes Japan and India) will probably ease to 7.2% from 8.3% in 2011, which is the slowest pace since 2001, and lower than the forecast in May of 7.6%. (Bloomberg) Eurozone mulls 20bn separate budget European diplomats discussing the possibility of a separate budget to improve monetary union in the Eurozone are reportedly considering a sum of around 20bn. There is still no clear definition of what a single, central budget would entail, but Germany strongly supports the idea as a way of coordinating transfers among member states, and France is also in favor. (Reuters) UK's Cameron threatens to veto EU budget British Prime Minister David Cameron threatened to wreck European Union budget talks unless other members of the 27-nation bloc agree to "proper control" of spending, without specifying what would be an acceptable settlement for Britain. He also lent his support to a proposal for two EU budgets, one for the Eurozone and another for cash-strapped Britain and the nations outside the single currency. (Reuters) UKs PM David Cameron braces for more budget cuts According to Britains Prime Minister David Cameron, Britain will have to keep cutting public spending to reduce its budget deficit. He said it is really a challenging situation for the government to pull the countrys economy out of recession and win back waning public support. Finance Minister George Osborne said there will be further cuts because economy is healing but it is a longer and harder road to travel. (Gulf-Times.com) Regional Saudi Holland Bank shareholders approve SR1.4bn sukuk Saudi Hollandi Banks shareholders have agreed to issue a SR1.4bn sukuk to support the bank's capital base. (Reuters) Kingdom Holding plans to raise $500mn via syndicated loan Saudi Arabia-based Kingdom Holding is planning to raise up to $500mn through a syndicated loan to refinance existing debt. Kingdom Holding had initially planned a bond issue, but instead decided to go for a loan facility of three years tenure. Kingdom Holding has hired a number of banks including J.P. Morgan Chase, Deutsche Bank, Citigroup, HSBC Holdings, Standard Chartered, Royal Bank of Scotland, Samba Financial Group, Banque Saudi Fransi and Saudi British Bank to facilitate the loan. (Reuters) Alinma Tokio Marine receives SAMA license for cooperative insurance business Alinma Tokio Marine has received license from the Saudi Arabian Monetary Agency (SAMA) to perform cooperative insurance business in general insurance, health insurance and protection & saving insurance segments in Saudi Arabia. (Tadawul) Abdullah A. M. Al-Khodari Sons signs SR39.95mn contract with the Ministry of Water & Electricity Abdullah A. M. AlKhodari Sons Company has signed a contract with the Ministry of Water & Electricity for the construction of sewage networks in Taimaa (Phase 5). The contract is worth SR39.95mn and needs to be completed within 36 months. The financial impact of this project is expected to be reflected in 4Q2012. (Tadawul)

Saudi Aramco boosts supertanker charters to US Stateowned Saudi Arabian Oil Company (Aramco) has increased the number of supertankers it hires to haul oil to the US. In October, the company has chartered at least seven very large crude carriers to carry about 14mn barrels in total. (GulfBase.com) Al Masane Al Kobra copper mine to build SR1.5bn smelter Al Masane Al Kobra Mining Company Chairman Talal Al Shaer said the company is planning to build smelter worth SR1.5bn within a year. He also reaffirmed the companys plans to shelve, sell or defer development of any asset that does not generate expected returns. (GulfBase.com) UAE banks demand extension on loan rules The UAE banks reportedly seek a 3-year extension on new loan rules that went into effect from September 30. Local banks also demanded that government-related entities with stable cash flows and highquality assets be exempted from the loan rules. (Bloomberg) Arqaam Capital to buy Libya financial services firm Dubaibased Arqaam Capital has agreed to buy a financial services firm in Libya to tap into the countrys economic growth. Arqaam said the acquisition of Al Rashad Finance & Management Advisory will give Arqaam a presence in the country, and the potential to deal securities and manage portfolios. (Reuters) Etihad Airways 3Q2012 revenues up 19% Etihad Airways has reported revenue of $1.3bn, reflecting a YoY increase of 19%. This rise was helped by passenger growth due to code sharing and partnerships. Further, the airlines cargo revenue in the quarter grew 6% YoY to $181mn. (Reuters) Etihad Airways sees opportunity in India, Asia Etihad Airways CEO James Hogan said the airline seeks to extend its geographical reach to India and other Asian markets. He said the airline has been receiving offers from Indian carriers as well. (Reuters) Industry park to drive Abu Dhabi's new Khalifa Port Abu Dhabi Ports Company CEO Tony Douglas said Abu Dhabi's new Khalifa Port, built at a cost of $7.1bn, expects to reach its initial target for container handling capacity in five years due to a growing industrial park nearby. (Reuters) Burgan Bank plans to acquire 25% stake in Malta's Fimbank Kuwait based Burgan Bank is planning to buy a 25% stake in Malta-based trade finance specialist, Fimbank. Burgan Bank said it has received approval from the Kuwait Central Bank for the acquisition. Further, the bank said that the acquisition is conditional to signing a final agreement with Fimbank and approval from relevant authorities in Malta. (Reuters) PAEW awards O&M tender to Oman National Engineering & Investment Co The Public Authority for Electricity & Water (PAEW) has awarded the contract for operation & maintenance (O&M) of its assets at South Sharqyia province to Oman National Engineering & Investment Company. The contract is valued at OMR4.8mn. (MSM) GFH commits to $3bn for Tunis harbor project Bahrain's Gulf Finance House (GFH) said it is committed to a multi-billion plan to build Tunis Financial Harbor. GFH's acting CEO Hisham Alrayes said Tunisia would become North Africa's leading financial hub once the Tunis Financial Harbor development worth $3bn is completed. (DFM) ABC partners with Moodys Analytics to implement Unified Credit Culture Arab Banking Corporation (ABC) has appointed Moodys Analytics as its strategic training partner to deliver an in-house comprehensive credit training program in line with the banks policy of continuous development of a
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rigorous credit culture across the entire ABC Group. (Bahrain Bourse) Standard Bank of South Africa closes its debut syndicated loan issue of $175mn The Standard Bank of South Africa Ltd signed a 364-day term loan funding worth $175mn. Mashreq was the mandated lead arranger and sole bookrunner of the financing. Al Khalij Commercial Bank, Arab Banking Corporation, China Construction Bank Corporation, Doha Bank, Industrial & Commercial Bank of China Limited, Abu Dhabi Branch, Samba Financial Group and Union National Bank also joined as mandated lead arrangers. Bank of China Limited, Commercial Bank of Qatar, Credit Libanais and Raiffeisenlandes bank Oberosterreich Aktiengesellschaft, also participated. The financing is significantly oversubscribed by more than 2.5 times from the initial launch amount of $100mn with commitment received worth $253mn. (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-10Sep-10 Jan-11 May-11Sep-11 Jan-12 May-12Sep-12

1.1%
122.2 107.9 101.6 106.0 98.2

1.0%

0.7% 0.3% 0.3% 0.2% 0.1%

(0.1%) (0.1%)
(0.5%) (0.4%) (0.7%)

Saudi Arabia

(0.9%)

Kuwait

Bahrain

Abu Dhabi

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 ($) 1,780.60 34.52 113.11 1.30 78.67 1.61 1.08 1.02 79.34 30.99 0.49

1D% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

WTD% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YTD% 13.9 24.0 4.1 0.6 2.3 3.8 1.0 (0.2) (1.0) (3.6) (8.3)

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

Close 13,610.15 1,460.93 3,136.19 7,397.87 5,871.02 3,457.04 8,863.30 2,086.17 18,938.46 58,571.59 1,508.72

Oman

1D% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

WTD% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Dubai
YTD% 11.4 16.2 20.4 25.4 5.4 9.4 4.8 (5.1) 22.5 3.2 9.2

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

Qatar

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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