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Kuwait Financial Centre “Markaz” Daily Morning Brief Equity watch M. Cap Last Indicators (USD Bn) Close MENA Markets Saudi (TASI) 386 7,371 Turkey ISE National 100 190 58,749 Kuwait SE WT.INDEX 105 418 Qatar(QE Index) 98 8,667 Abu Dhabi (ADI) 75 2,486 Morocco (CAI) 57 10,366 Dubai (DFMGI) 49 1,556 Egypt (Hermes) 58 501 Jordan (Amman) 24 4,624 Bahrain (BAX) 17 1,160 Oman(Muscat SM) 14 5,802 Lebanon (BSE) 13 1,181 Emerging Markets MSCI EM Index 3,988 984 MSCI BRIC Index 1,692 934 Shanghai A Share Index 2,617 2,565 SENSEX Index (India) 528 16,546 S&P GCC Composite 252 100 Developed Markets MSCI WORLD Index 31,431 806 US (S&P 500) 12,807 1,364 UK (FTSE) 2,510 5,555 Japan (Nikkei 225) 2,203 9,182 France (CAC) 1,054 3,125 Germany (DAX) 868 6,445

*

2011 P/E Div. % TTM Yield

Chg (%)

MTD %

YTD %

0.17 -0.10 -0.25 0.17 -0.07 0.20 -0.53 0.71 -0.00 -0.11 0.18 -0.28

-2.47 -2.10 0.07 -0.43 -0.71 0.70 -4.60 2.02 -0.43 0.64 -1.14 -0.53

14.86 14.60 2.99 -1.28 3.49 -6.00 14.96 31.39 -0.53 1.44 1.88 0.33

-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

-0.83 -1.30 -0.13 -2.17 0.02

-2.97 8.85 -4.87 6.12 2.20 11.31 -4.46 7.06 -1.89 9.01

-21 -26 -22 -25 -8

12 10 13 14 12*

2.9 3.0 2.1 1.6 3.3*

Yield curve watch

-0.81 -0.43 -1.78 0.69 -2.78 -1.90

-3.34 -2.45 -3.19 -3.56 -2.74 -4.68

-10 0 -6 -17 -17 -15

15 15 10 16 10 11

2.7 2.6 4.3 2.2 4.6 3.9

6.39 8.44 -0.32 8.59 -1.11 9.26

- 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

Current

2011

117.84 115.85 348.76 120.24 204.00 355.87

123.32 124.89 445.00 125.39 246.00 376.66

Saudi Arabia Abu-Dhabi Dubai Qatar Oman Bahrain

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 0.45 Saudi 0.57 0.45 UAE 0.60 0.45 Qatar 0.85 0.45 Oman 0.36 0.45 Bahrain 1.00 0.45 Last FOMC Meeting Date: Apr 24-25

Libor (In %)

Diff FY11 Diff 0.30 0.04 0.12 -0.08 0.15 0.03 0.40 0.05 -0.09 0.03 0.55 -0.17 Next FOMC Meet Date: Jun 19-20

US Treasuries

(In %)

KIBOR yield curve (%)

Fixed Income Watch

Last 235 114 138

9 May, 2012

5 – year CDS (USD) watch (bps)

Chg (%) MTD % 0.29 0.59 0.00 0.28 0.00 0.58

YTD % 1.46 5.01 3.95

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

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 1,604.88 29.42 112.73 485.99 19.05 1.30 79.89 0.2781 0.3615 *4Q11

Chg (%) MTD % YTD % -2.03 -1.97 -0.38 -0.32 0.58 0.45 0.01 -0.34 0.11

-3.55 -4.94 -5.64 -1.10 11.08 1.86 -0.14 -0.32 1.55

2.61 5.90 4.98 0.83 -18.59 -0.33 -3.72 0.04 -0.28

23.4 1.2955 76.92 0.27825 0.3605

32 -3 -5 -1 -4

Corporate earnings watch Company Name

Earnings Type

Country

Currency

LFY

PFY

% Ch

UGB

3M

Bah

BHD(Mn)

3.42

1.81

89.0

CINEMA

3M

Bah

BHD(Mn)

1.26

0.4

Taib Bank

3M

Bah

USD(Mn)

-3.27

-3.06

236. 0 N.M.

News & Views

M. % % P PAT (Mn) Cap Pct M Y 2011 / Div  Kuwait central bank will change its loan-to-deposit ratio (LTD) rules for Last % Gr (USD Chg T T % E yield 1Q12 Companies banks to boost lending, its governor said. As per the new rules, if funding YoY Bn) D D (ttm) matures after 1 year, banks should have a LTD of 100%, and 90% if Saudi Arabia (SAR) funding matures between 3M and a year. Also, other sources of funding SABIC 80 100.0 0.5 -2.4 4 -8 10 5.0 7,271 -5 such as bonds and loans will be allowed while calculating LTD. Al-Rajhi Bank 30 76.3 0.3 -2.2 10 -16 15 4.3 2,011 18  Kuwait National Petroleum Co. will launch a tender next month to build the long-delayed Al-Zour refinery with a capacity of 615,000 bpd, a senior Saudi Telecom 22 41.8 -0.2 -1.6 24 -21 10 4.8 2,521 60 executive said. Contracts might be awarded by early next year and Saudi Electricity Co. 15 13.4 -0.4 -2.2 -4 -1 23 5.2 -583 NM completion scheduled in 2017. Samba Fin. Group 12 49.5 -0.4 -4.3 6 -24 10 3.3 1,145 2  Kuwait has referred a $800mn gas contract between Kuwait Oil Co. and United Arab Emirates (AED) Shell to the public prosecution to investigate suspected irregularities. ETISALAT 19 8.6 0.2 -0.2 -5 -15 12 6.9 1,809 -0.5  National Industrialization Co. will issue its first Sukuk this month, under NBAD 9 8.9 0.3 2.1 12 12 9 3.4 1,041 12.2 an SAR 5.575bn program. The sukuk will be privately placed and the first First Gulf Bank 7 8.9 -1.0 -1.4 14 -11 7 11.3 935 6.8 of the series is expected to carry a floating rate of 6M SIBOR reference Emirates NBD 4 2.8 -0.4 -1.8 -5 7 9 7.2 641 55 rate.  National Industrialization Co and Sahara Petrochemical have agreed a Emaar Properties 5 3.0 -1.0 -8.0 17 -28 9 3.3 606 44.1 SAR 5.09bn ($1.36bn) loan with nine local banks to fund development of Kuwait (KWD) three new factories. 11 0.7 1.4 0.0 -18 -41 11 8.8 75 -14* ZAIN  Dubai's sovereign wealth fund has given up control of luxury retailer 17 1.1 -1.9 0.0 4 -14 15 3.8 81 0 NBK Barneys New York. In a deal with its creditors, Perry Capital and Yucaipa 8 0.7 0.0 -1.4 -14 -16 26 2.1 20 -11 KFH Companies will exchange debt for equity. Perry will become the majority Gulf Bank 4 0.4 0.0 -2.3 -11 -11 39 0.0 7 -25 owner, with Yucaipa and Istithmar as minority holders. 3 0.8 0.0 -2.6 -4 -14 NM 0.0 -7 NM* Comm. Bk. Kuwait  The cost of expanding and modernising Oman’s water transmission Qatar (QAR) infrastructure is projected at OMR 2.9bn ($7.5bn) over the next two Industries Qatar 22 144.1 -0.3 -1.3 8 -4 10 5.2 1,907 -9 decades, Chairman of Public Authority for Electricity & Water said. 26 133.4 0.1 0.0 -3 14 11 3.0 2,004 17  Bahrain is to spend between $6bn and $8bn on modernising its refinery QNB within the next six to seven years, Energy Minister said. 15 21.0 2.3 9.3 -5 -27 72 0.7 144 291 Ezdan Real Est. Co.  Bahrain plans a sovereign bond targeting the US market by the summer, 9 137.2 -0.1 -2.1 27 -5 12 2.2 711 -12 Q-TEL its central bank said. The bond is expected to be a conventional issue. 5 72.3 0.3 0.4 -14 -9 9 8.3 471 6 Comr’cial Bk of Qatar 1 Note: 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


DMB09052012