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Kuwait Financial Centre “Markaz” Daily Morning Brief Equity watch M. Cap Last Chg Indicators (USD Bn) Close (%) MENA Markets Saudi (TASI) 385 7,359 -0.25 Turkey ISE National 100 192 58,810 -0.35 Kuwait SE WT.INDEX 105 419 -0.21 Qatar(QE Index) 98 8,652 -0.38 Abu Dhabi (ADI) 75 2,488 -0.30 Morocco (CAI) 57 10,346 0.42 Dubai (DFMGI) 49 1,564 0.25 Egypt (Hermes) 58 498 0.72 Jordan (Amman) 24 4,624 0.27 Bahrain (BAX) 17 1,161 -0.07 Oman(Muscat SM) 14 5,792 -0.95 Lebanon (BSE) 13 1,184 0.52 Emerging Markets MSCI EM Index 4,021 993 -1.09 MSCI BRIC Index 1,715 946 -0.80 Shanghai A Share Index 2,621 2,568 -0.00 SENSEX Index (India) 532 16,913 0.48 S&P GCC Composite 252 100 -0.28 Developed Markets MSCI WORLD Index 31,687 812 -0.44 US (S&P 500) 12,804 1,370 0.04 UK (FTSE) 2,564 5,655 0.00 Japan (Nikkei 225) 2,190 9,119 -2.78 France (CAC) 1,088 3,214 1.65 Germany (DAX) 888 6,569 0.12

*

2011 P/E Div. % TTM Yield

MTD %

YTD %

-2.64 -2.00 0.32 -0.60 -0.64 0.50 -4.10 1.31 -0.43 0.75 -1.32 -0.25

14.66 14.71 3.25 -1.45 3.56 -6.18 15.57 30.47 -0.53 1.55 1.69 0.61

-3 -22 -16 1 -12 -13 -17 -42 -13 -20 -16 -20

13 9 17 9 8 11 10 10 12 8 13 10

3.8 2.6 0.9 4.4 6.1 3.9 4.3 4.0 4.8 5.2 6.1 0.8

Interest rate watch

-2.16 9.75 -3.61 7.52 2.33 11.46 -2.34 9.43 -1.91 8.98

-21 -26 -22 -25 -8

12 10 13 14 12*

2.9 3.0 2.1 1.5 3.3*

Yield curve watch

-2.55 -2.03 -1.44 -4.22 0.04 -2.84

-10 0 -6 -17 -17 -15

15 15 11 16 10 12

2.7 2.6 4.2 2.2 4.4 3.9

7.26 8.90 1.49 7.85 1.72 11.38

8 May, 2012

5 – year CDS (USD) watch (bps) Country Saudi Arabia Abu-Dhabi Dubai Qatar Oman Bahrain

Current

2011

117.78 115.78 348.67 120.22 204.00 355.80

123.32 124.89 445.00 125.39 246.00 376.66

52-week High Low 137.30 94.04 148.50 89.96 509.90 319.53 146.93 90.16 290.50 143.00 387.62 220.22

Source: Bloomberg, Reuters Eikon

Inter-bank 3M Int US 3M Deposit rate rates % Rate % Kuwait 0.75 0.48 Saudi 0.60 0.48 UAE 0.60 0.48 Qatar 0.30 0.48 Oman 0.50 0.48 Bahrain 0.87 0.48 Last FOMC Meeting Date: Apr 24-25

Libor (In %)

Diff FY11 Diff 0.27 0.04 0.12 -0.08 0.12 0.03 -0.18 0.05 0.02 0.03 0.39 -0.17 Next FOMC Meet Date: Jun 19-20

US Treasuries

(In %)

- P/E & Div. Yield for GCC as per Zawya

Fixed Income Watch Barclays US treas. 10 Yr JP Morgan Em Bond ETF HSBC/Nasd. Dub GCC $ T.Ret

Last 234 114 138

Chg (%) MTD % 0.02 0.30 0.03 0.28 0.00 0.56

YTD % 1.17 5.01 3.92

2011 231.43 108.36 133.00

2011% 15 2 8

2011

2011%

1564.11 27.78 107.38 482.01

10 -10 14 -7

KIBOR yield curve (%)

Commodity/Currency/Volatility Watch Precious Metals Gold $/oz Silver $/oz IPE Brent $/bbl CRB Commodity Index Volatility & Currency CBOE VIX index USD (1 EUR =) Yen (1 USD =) KWD (1 USD =) KWD (1 EUR =)

Blue chip watch

Close 1,638.10 30.01 113.16 487.57 18.94 1.31 79.90 0.2772 0.3619 * 4Q11

Chg (%) MTD % YTD % -0.24 -1.09 -0.02 0.79 -1.15 -0.24 -0.19 0.13 -0.11

-1.55 -3.04 -5.28 -0.78 10.44 1.40 -0.15 0.02 1.44

4.73 8.03 5.38 1.15 -19.06 -0.78 -3.73 0.38 -0.39

23.4 1.2955 76.92 0.27825 0.3605

32 -3 -5 -1 -4

Corporate earnings watch Company Name

Zain Global Invst. House Dubai Financial Mkt

Earnings Type

Country

Currency

LFY

PFY

% Ch

3M

Kuwait

KWD (Mn)

70.9

69.9

1.4

12M

Kuwait

KWD (Mn)

-57.5

-73.2

N.M

3M

UAE

AED (Mn)

30.5

2.20

14x

M. % % P PAT (Mn) News & Views Cap Pct M Y 2011 / Div Last % Gr  Kuwait Finance & Investment Co. said its board has decided to propose (USD Chg T T % E yield 1Q12 Companies reducing its capital by KWD 83.43mn ($300mn) to KWD 30.71mn. Nearly KWD YoY Bn) D D (ttm) 14.83mn of the capital cut is due to unsubscribed shares at the recent capital Saudi Arabia (SAR) increase while KWD 68.6mn will be used to write-off its accumulated losses. SABIC 80 99.5 -0.3 -2.9 3 -8 10 5.0 7,271 -5  Kuwait Cement Co. plans to open its second plant in Shuaiba within the Al-Rajhi Bank 30 76.0 -0.7 -2.6 9 -16 15 4.3 2,011 18 next few months to boost its daily capacity by 8,500 tons to c.16,000 tons. Saudi Telecom 22 41.9 0.2 -1.4 24 -21 10 4.8 2,521 60  Kuwait Gulf Oil, unit of Kuwait Petroleum Corp., plans to increase its oil Saudi Electricity Co. 15 13.5 -0.4 -1.8 -3 -1 23 5.2 -583 NM production by 100,000bpd to 350,000bpd by 2014-15 and also aims to Samba Fin. Group 12 49.7 0.2 -4.0 7 -24 10 3.3 1,145 2 increase gas extracted from oil fields to 500mn feet. United Arab Emirates (AED)  Kuwait's Al Enma'a Real Estate has been awarded a KWD 8.76mn ($31.5mn) ETISALAT 19 8.6 0.0 -0.5 -5 -15 12 7.0 1,809 -0.5 deal by the country's health ministry. The project involves providing hospital NBAD 9 8.9 -0.3 1.7 11 12 9 3.4 1,041 12.2 maintenance, renovation, and expansion works over five years. First Gulf Bank 7 9.0 -0.6 -0.4 16 -11 7 11.2 935 6.8  MTC Vodafone Bahrain (Zain Bahrain) has allocated $50mn to develop and Emirates NBD 4 2.8 0.0 -1.4 -5 7 9 7.2 641 -54.6 upgrade its network in 2012 and will invest an equal amount in 2013. Zain Emaar Properties 5 3.0 -0.3 -7.0 18 -28 10 3.3 606 44.1 Bahrain expects to sign the upgrade contracts by June with Nokia Siemens, Kuwait (KWD) Huawei, and other companies. * 11 0.7 -1.4 -1.4 -19 -41 11 8.9 75 -14 ZAIN  Plans are moving ahead for Kuwait's metro system with Partnerships Technical 17 1.1 1.9 1.9 6 -14 15 3.7 81 0 NBK Bureau (PTB) inviting contractors to develop rolling stock and systems for the 8 0.7 -1.4 -1.4 -14 -16 26 2.1 20 -11.4 KFH project. The $7bn metro project should be completed in five phases, with Gulf Bank 4 0.4 0.0 -2.3 -11 -11 39 0.0 7 -24.6 construction beginning in 2013. * 3 0.8 0.0 -2.6 -4 -14 NM 0.0 -7 NM  Drydocks World is asking for a delay in court hearings related to its $2.2bn Comm. Bk. Kuwait Qatar (QAR) debt restructuring after running into an obstruction with its Singapore Industries Qatar 22 144.6 -1.0 -1.0 9 -4 10 5.2 1,907 -9 business. 26 133.3 -0.3 -0.1 -4 14 11 3.0 2,004 17 QNB  Airbus said Etihad Airways has canceled a $2.2bn order for 7 of its A35015 20.5 -7.7 6.8 -8 -27 70 0.7 144 291 Ezdan Real Est. Co. 1000s, the latest setback to the delayed twin-engined long range aircraft. 9 137.4 -0.5 -1.9 27 -5 12 2.2 711 -12 Q-TEL 5 72.1 0.1 0.1 -14 -9 9 8.3 471 6 Comr’cial Bk of Qatar Note: 1 Weekend Details – Saudi Arabia – Thursday & Friday; Turkey, Morocco & Lebanon – Saturday & Sunday; MENA Ex-Saudi Arabia, Turkey, Morocco & Lebanon – Friday & Saturday; US, European & Emerging Markets – Saturday & Sunday. Markaz Research can now be accessed on Bloomberg. Type “MRKZ” <Go>. This report has been prepared and issued by Kuwait Financial Centre S.A.K (Markaz), which is regulated by the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is subject to copyrights. Sale of any copies of this report is strictly prohibited. This report cannot be quoted without the prior written consent of Markaz. Any user after obtaining Markaz permission to use this report must clearly mention the source as “Markaz “. This Report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable but in no way are warranted by us as to its accuracy or completeness. Markaz has no obligation to update, modify or amend this report. For further information, please contact ‘Markaz’ at P.O. Box 23444, Safat 13095, Kuwait. Tel: 00965 1804800 Fax: 00965 22450647. Email: research@markaz.com


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