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Kuwait Financial Centre “Markaz” Daily Morning Brief Equity watch M. Cap Indicators (USD Bn) MENA Markets Saudi (TASI) 348 Turkey ISE National 100 191 Kuwait SE WT.INDEX 101 Qatar(QE Index) 95 Abu Dhabi (ADI) 75 Morocco (CAI) 51 Dubai (DFMGI) 46 Egypt (Hermes) 55 Jordan (Amman) 23 Bahrain (BAX) 16 Oman(Muscat SM) 14 Lebanon (BSE) 12 Emerging Markets MSCI EM Index 3,708 MSCI BRIC Index 1,552 Shanghai A Share Index 2,280 SENSEX Index (India) 513 S&P GCC Composite 233 Developed Markets MSCI WORLD Index 30,255 US (S&P 500) 12,759 UK (FTSE) 2,357 Japan (Nikkei 225) 2,086 France (CAC) 976 Germany (DAX) 796

*

Last Close

Chg (%)

MTD %

YTD %

2011 P/E Div. % TTM Yield

6,641 60,737 400 8,264 2,469 9,847 1,493 488 4,414 1,109 5,436 1,160

-0.88 -1.71 -0.49 -0.24 -0.12 -0.16 -1.48 0.00 0.49 -0.12 0.00 0.11

-1.03 3.48 -3 -2.89 18.47 -22 -0.52 -1.33 -16 1.73 -5.87 1 0.87 2.77 -12 -2.06 -10.71 -13 2.86 10.34 -17 1.98 27.98 -42 0.55 -5.04 -13 -1.55 -3.02 -20 -4.45 -4.54 -16 1.85 -1.41 -20

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

4.3 2.6 3.5 4.5 6.2 4.0 4.6 3.7 5.0 5.5 4.7 1.2

905 846 2,242 16,877 92

-2.55 -2.87 -1.26 -1.64 -0.76

-2.61 -2.53 -3.78 -3.17 -0.99

0.04 -3.87 -2.68 9.20 -0.04

-21 -26 -22 -25 -8

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

774 1,351 5,534 8,508 3,102 6,419

-1.73 -0.89 -2.09 -1.86 -2.89 -3.18

-2.05 -0.85 -0.67 -5.53 -2.98 0.05

2.23 7.39 -0.69 0.63 -1.84 8.83

-10 0 -6 -17 -17 -15

14 15 11 15 10 11

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

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

Country Saudi Arabia Abu-Dhabi Dubai Qatar Oman Bahrain

Current

2011

111.27 112.48 329.24 111.99 216.50 346.82

123.32 124.89 445.00 125.39 246.00 376.66

52-week High Low 137.30 96.07 148.50 89.96 509.90 329.23 146.93 91.70 290.50 160.50 387.62 235.74

Source: Bloomberg, Reuters Eikon

Interest rate watch Inter-bank 3M Int US 3M Deposit rate rates % Rate % Kuwait 0.75 0.38 Saudi 0.61 0.38 UAE 0.60 0.38 Qatar 0.40 0.38 Oman 0.36 0.38 Bahrain 0.35 0.38 Last FOMC Meeting Date: Jun 19-20

Yield curve watch Libor (In %)

Diff FY11 Diff 0.37 0.04 0.23 -0.08 0.22 0.03 0.02 0.05 -0.02 0.03 -0.03 -0.17 Next FOMC Mt Date: Jul 31-Aug 1

US Treasuries

(In %)

2.8 2.6 4.3 2.3 4.5 4.1

KIBOR yield curve (%)

Fixed Income Watch

Last 243 117 142

July 24, 2012

5 – year CDS (USD) watch (bps)

Chg (%) MTD % 0.18 1.74 -0.59 2.44 0.00 0.80

YTD % 4.98 7.56 6.57

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

23.4 1.2955 76.92 0.27825 0.3605

32 -3 -5 -1 -4

Commodity/Currency/Volatility Watch Close Chg (%) MTD % YTD % Precious Metals Gold $/oz 1,576.79 -0.46 -1.27 0.81 Silver $/oz 27.00 -1.06 -1.75 -2.81 IPE Brent $/bbl 103.26 -3.34 5.58 -3.84 CRB Commodity Index 482.34 -0.49 1.42 0.07 Volatility & Currency CBOE VIX index 18.62 14.44 9.02 -20.43 USD (1 EUR =) 1.21 -0.12 4.40 6.85 Yen (1 USD =) 78.27 -0.14 1.92 -1.72 KWD (1 USD =) 0.2795 0.00 0.00 -0.43 KWD (1 EUR =) 0.3418 -0.18 3.54 5.47 Blue chip watch *2Q12. M. % % P Cap Pct M Y 2011 / Last (USD Chg T T % E Companies Bn) D D (ttm) Saudi Arabia (SAR) SABIC 69 86.0 -3.1 -7.3 -11 -8 10 Al-Rajhi Bank 29 71.5 -0.7 -3.1 3 -16 14 Saudi Telecom 21 40.2 1.8 1.8 19 -21 9 Saudi Electricity Co. 14 12.9 -0.4 -0.4 -8 -1 22 Samba Fin. Group 11 44.6 -3.0 -1.1 -4 -24 9 United Arab Emirates (AED) ETISALAT 20 9.2 0.0 -0.2 1 -15 12 NBAD 9 8.3 -0.1 -0.6 4 12 9 First Gulf Bank 7 8.6 -0.5 7.1 11 -11 7 Emirates NBD 4 2.6 -3.0 -3.7 -11 7 9 Emaar Properties 5 3.2 -2.2 12.9 23 -28 10 Kuwait (KWD) 11 0.7 0.0 -5.4 -22 -41 10 ZAIN 15 1.0 0.0 -2.0 -2 -14 14 NBK 7 0.7 -1.4 -5.4 -16 -16 26 KFH Gulf Bank 4 0.4 -2.4 -8.0 -18 -11 37 4 0.8 0.0 0.0 -1 -14 Comm. Bk. Kuwait Qatar (QAR) Industries Qatar 20 132.7 -0.7 6.2 0 -4 9 25 131.5 0.0 0.2 -5 14 11 QNB 1.9 -9 -27 157 Ezdan Real Est. Co. 15 20.3 2.7 9 104.6 0.0 1.1 11 -5 11 Q-TEL Comr’cialBk of Qatar 5 69.8 -1.6 2.0 -17 -9 9

PAT (Mn)

Div yield

1Q12

% Gr YoY

5.8 4.5 5.0 5.4 3.7

5,300* 2,093* 2,408* 1,360* 1,158*

-35 14 7 2 5

6.5 3.6 11.7 7.6 3.2

1,809 1,041 935 641 606

0 12 7 -55 44

9.3 4.0 2.1 0.0 0.0

71 40* 20 7 0.3

1 -40 -11 -25 -75

5.7 3.0 0.7 2.5 8.6

1,907 2,112* 144 711 546*

-9 17 291 -12 7

Corporate earnings watch Earnings

Company Name

United Foods Co Dalqan Real Estate Co Kwt Gyps Manf & Trd Emirates NBD

Type

Country

LFY

6M

UAE

PFY

% Ch

AED (Mn)

11.55

28.88

-60.0

6M

Kuwait

KWD(Mn)

0.10

0.1

-12.0

6M

Kuwait

KWD(Mn)

0.15

0.08

79.0

3M

UAE

AED (Mn)

647.0

744.00

-13.0

Currency

News & Views 

An inflow of affluent families relocating from Arab Spring countries could continue to fuel demand for prime real estate in Dubai in the coming years thereby benefiting companies like Emaar Properties, as said by EFG Hermes its latest note. Abu Dhabi government-controlled investment firm Mubadala Development Co. has said that its oil and gas unit along with its co-concessionaires have secured approval for the development of the Manora field in concession G1/48 in the Gulf of Thailand. Bahrain Mumtalakat Holding Co. is discussing options with the government to restructure its troubled unit Gulf Air, but there are no plans to liquidate the national carrier or merge it with Bahrain Air. Abu Dhabi Gas Liquefaction Co. expects its USD11 billion integrated gas development in Das Island to be operational by 2013, as part of its plan to boost the United Arab Emirates' natural gas supply. Abu Dhabi-based Emirates Aluminium has said that it has produced 1.5 million metric tons of the metal since it started operations in December 2009. Saudi Arabia's stock-exchange regulator has said that it has suspended trading in the shares of Mohammad al Mojil Group for the construction company's failure to disclose financial results on time.

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

DMB24072012  

DMB24072012

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