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Kuwait Financial Centre “Markaz” Daily Morning Brief Equity watch M. Cap Indicators (USD Bn) MENA Markets Saudi (TASI) 351 Turkey ISE National 100 200 Kuwait SE WT.INDEX 102 Qatar(QE Index) 95 Abu Dhabi (ADI) 75 Morocco (CAI) 51 Dubai (DFMGI) 47 Egypt (Hermes) 54 Jordan (Amman) 23 Bahrain (BAX) 16 Oman(Muscat SM) 15 Lebanon (BSE) 12 Emerging Markets MSCI EM Index 3,798 MSCI BRIC Index 1,590 Shanghai A Share Index 2,304 SENSEX Index (India) 528 S&P GCC Composite 235 Developed Markets MSCI WORLD Index 30,517 US (S&P 500) 12,677 UK (FTSE) 2,418 Japan (Nikkei 225) 2,161 France (CAC) 1,011 Germany (DAX) 804

*

Last Close

Chg (%)

MTD %

YTD %

2011 P/E Div. % TTM Yield

6,713 63,124 405 8,272 2,476 9,820 1,485 475 4,407 1,115 5,495 1,151

-0.65 0.82 0.46 0.29 -0.11 -0.21 -0.44 0.21 -0.29 -0.18 -0.71 0.22

0.05 4.60 -3 0.93 23.13 -22 0.72 -0.11 -16 1.83 -5.78 1 1.16 3.07 -12 -2.33 -10.95 -13 2.31 9.76 -17 -0.71 24.60 -42 0.39 -5.19 -13 -1.06 -2.53 -20 -3.43 -3.52 -16 1.07 -2.17 -20

12 10 15 9 7 10 10 9 12 8 11 10

4.2 2.5 3.4 4.5 6.1 4.0 4.6 3.7 5.0 5.5 4.7 1.1

927 867 2,267 17,618 93

-0.13 -0.48 -0.30 1.30 -0.36

-0.20 -0.11 -2.74 1.08 -0.13

2.52 -1.49 -1.63 14.00 0.84

-21 -26 -22 -25 -8

12 3.1 9 3.5 11 2.7 14 1.5 11* 3.8*

781 1,341 5,664 8,858 3,175 6,438

-0.43 -0.81 0.65 -0.44 0.59 0.79

-1.16 -1.52 1.67 -1.65 -0.66 0.34

3.16 6.67 1.65 4.76 0.49 9.15

-10 0 -6 -17 -17 -15

14 14 11 15 10 11

July 11, 2012

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

Current

2011

123.41 129.57 352.58 128.08 212.00 346.48

123.32 124.89 445.00 125.39 246.00 376.66

52-week High Low 137.30 94.04 148.50 89.96 509.90 328.63 146.93 90.16 290.50 160.50 387.62 235.40

Source: Bloomberg, Reuters Eikon

Interest rate watch Inter-bank 3M Int US 3M Deposit rate rates % Rate % Kuwait 0.27 0.45 Saudi 0.61 0.45 UAE 0.30 0.45 Qatar 0.90 0.45 Oman 0.28 0.45 Bahrain 0.30 0.45 Last FOMC Meeting Date: Jun 19-20

Yield curve watch Libor (In %)

Diff FY11 Diff -0.18 0.04 0.16 -0.08 -0.15 0.03 0.45 0.05 -0.17 0.03 -0.15 -0.17 Next FOMC Mt Date: Jul 31-Aug 1

US Treasuries

(In %)

2.8 2.7 4.2 2.2 4.4 4.1

- 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 242 115 141

Chg (%) MTD % 0.11 1.27 0.00 0.88 0.00 0.23

YTD % 4.50 5.93 5.97

2011 231.43 108.36 133.00

2011% 15 2 8

2011

2011%

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 =)

Close

Chg (%) MTD % YTD %

1,567.69 26.82 97.97 477.63

-1.19 -1.90 -2.34 -1.05

-1.84 -2.40 0.17 0.43

0.23 -3.46 -8.76 -0.91

1564.11 27.78 107.38 482.01

10 -10 14 -7

18.72 1.23 79.28 0.2795 0.3450

4.12 0.19 0.25 0.00 -0.03

9.60 3.23 0.62 0.00 2.58

-20.00 5.65 -2.98 -0.43 4.49

23.4 1.2955 76.92 0.27825 0.3605

32 -3 -5 -1 -4

Blue chip watch M. Cap Last (USD Companies Bn) Saudi Arabia (SAR) SABIC 70 87.8 Al-Rajhi Bank 29 73.0 Saudi Telecom 19 36.4 Saudi Electricity Co. 14 13.0 Samba Fin. Group 11 45.1 United Arab Emirates (AED) ETISALAT 20 9.3 NBAD 9 8.3 First Gulf Bank 7 8.5 Emirates NBD 4 2.7 Emaar Properties 5 3.1 Kuwait (KWD) 11 0.7 ZAIN 16 1.1 NBK 7 0.7 KFH Gulf Bank 4 0.4 3 0.7 Comm. Bk. Kuwait Qatar (QAR) Industries Qatar 20 131.4 25 131.9 QNB Ezdan Real Est. Co. 15 19.9 9 105.3 Q-TEL Comr’cialBk of Qatar 5 70.3

Pct Chg

% M T D

% P Y 2011 / Div T % E yield D (ttm)

-0.8 -0.3 -0.8 0.4 -0.9

-5.4 -1.0 -7.8 0.4 0.0

-9 5 8 -7 -3

-8 -16 -21 -1 -24

9 14 8 22 9

-0.2 0.0 -0.1 -0.4 -0.3

0.9 0.1 5.9 -2.6 8.9

2 4 9 -10 19

-15 12 -11 7 -28

0.0 1.9 -1.4 -1.2 0.0

-4.1 3.9 -5.4 -5.7 -6.4

-21 4 -16 -16 -8

-0.1 -0.1 1.5 -0.6 1.2

5.1 0.5 0.1 1.7 2.8

-1 -5 -10 12 -16

PAT (Mn) 1Q12

% Gr YoY

5.7 4.5 5.5 5.4 3.7

7,271 2,011 2,521 -583 1,145

-5 18 60 NM 2

13 9 7 8 10

6.5 3.6 11.8 7.5 3.3

1,809 1,041 935 641 606

0 12 7 -55 44

-41 -14 -16 -11 -14

10 15 26 38 -

9.2 3.8 2.1 0.0 0.0

71 81 20 7 0.3

1 0 -11 -25 -75

-4 14 -27 -5 -9

9 11 155 11 9

5.7 3.0 0.8 2.5 8.5

1,907 2,004 144 711 471

-9 17 291 -12 6

Corporate earnings watch Earnings

Company Name

Type

Saudi Hllndi Bank Al Khaleej Trn & Edu Al Othiam Holding Co Arab Natl Bank

6M 6M 6M 6M

Country

Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia

Currency

LFY

PFY

% Ch

SAR (Mn)

622.30

501.85

24.0

SAR(Mn)

29.91

25.1

19.0

SAR(Mn)

70.60

77.58

-9.0

SAR(Bn)

1.4

1.28

7.0

News & Views   

Saudi Arabia's annual inflation eased to 4.9 percent in June, its lowest level since September 2011, despite a big rise in housing prices. The offering of Saudi Arabia's Al Tayyar Travel Group was oversubscribed by more than six times and raised more than USD 2.2bn, making this the Kingdom's largest IPO in recent years. The UAE sentiment is seen negative and banks are likely to be hit after Royal Bank of Scotland and two other banks abandoned talks on restructuring Dubai Group's USD 10 billion debt and threatened legal action. The Saudi Arabian Council of Ministers recently approved the final draft of five laws establishing a legal framework for mortgage lending in Saudi Arabia, more than a decade after the initial proposal of the laws. The credit quality of rated non-financial corporates in Gulf Cooperation Council (GCC) markets has continued to improve as a result of the modest global economic recovery, high oil prices and the reduction of refinancing exposure, said Moody’s Investors Service in a report. Abu Dhabi-based oil and gas services contractor National Petroleum Construction Co. (NPCC) and French group Technip have been jointly awarded a nearly AED3 billion (USD 817 million) contract to build offshore facilities at an oilfield in Abu Dhabi.

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

DMB11072012  

DMB11072012