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Kuwait Financial Centre “Markaz” Daily Morning Brief Equity watch M. Cap Last Indicators (USD Bn) Close MENA Markets Saudi (TASI) 356 6,816 Turkey ISE National 100 192 59,662 Kuwait SE WT.INDEX 107 406 Qatar(QE Index) 96 8,695 Abu Dhabi (ADI) 73 2,490 Morocco (CAI) 62 11,305 Dubai (DFMGI) 50 1,539 Egypt (Hermes) 60 505 Jordan (Amman) 23 4,448 Bahrain (BAX) 17 1,142 Oman(Muscat SM) 14 5,607 Lebanon (BSE) 13 1,184 Emerging Markets MSCI EM Index 4,190 1,036 MSCI BRIC Index 1,877 1,038 Shanghai A Share Index 2,476 2,456 SENSEX Index (India) 609 17,849 S&P GCC Composite 240 95 Developed Markets MSCI WORLD Index 32,300 825 US (S&P 500) 12,665 1,351 UK (FTSE) 2,590 5,900 Japan (Nikkei 225) 2,300 9,052 France (CAC) 1,147 3,376 Germany (DAX) 929 6,728

*

2011 P/E Div. % TTM Yield

15 February, 2012

5 – year CDS (USD) watch (bps)

Chg (%)

MTD %

YTD %

-0.22 -1.48 -0.22 0.00 0.95 -0.39 1.16 -0.15 -0.44 -0.06 0.32 0.00

2.87 4.36 0.25 1.48 1.45 0.83 7.21 8.36 0.76 0.23 0.82 1.51

6.21 16.38 0.12 -0.96 3.63 2.51 13.73 32.46 -4.32 -0.11 -1.55 0.64

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

13 10 14 10 8 12 10 10 13 8 12 10

3.6 2.5 4.7 4.2 4.9 3.5 4.4 4.4 3.5 5.0 4.8 0.5

Interest rate watch

-0.55 -0.55 -0.30 0.43 -0.20

3.05 3.47 2.27 3.81 2.09

14.57 17.97 6.61 15.49 3.75

-21 -26 -22 -25 -8

12 10 12 16 12*

2.8 2.8 2.2 1.5 3.5*

Yield curve watch

-0.45 -0.09 -0.10 0.59 -0.26 -0.15

2.79 2.90 3.84 2.84 2.34 4.17

8.96 7.39 5.88 7.06 6.83 14.07

-10 0 -6 -17 -17 -15

14 15 11 16 10 11

2.7 2.5 4.0 2.1 4.7 3.6

Country Saudi Arabia Abu-Dhabi Dubai Qatar Oman Bahrain

Current

2011

131.59 129.13 391.45 129.14 205.00 380.91

123.32 124.89 445.00 125.39 246.00 376.66

52-week High Low 137.30 75.40 148.50 75.40 509.90 319.53 146.93 90.16 290.50 137.50 387.62 220.22

Source: Bloomberg, Reuters Eikon

Inter-bank 3M Int US 3M Deposit rate rates % Rate % Kuwait 0.33 0.50 Saudi 0.51 0.50 UAE 0.55 0.50 Qatar 0.30 0.50 Oman 0.30 0.50 Bahrain 0.80 0.50 Last FOMC Meeting Date: Jan 24-25

Libor (In %)

Diff FY10 Diff -0.17 0.04 0.01 -0.08 0.05 0.03 -0.20 0.05 -0.20 0.03 0.30 -0.17 Next FOMC Meet Date: Mar 13

US Treasuries

(In %)

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

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

Last 232 584 134

Chg (%) MTD % 0.41 -0.67 0.07 1.29 0.00 0.34

YTD % 0.24 3.07 0.86

2011 231.43 567.00 133.00

2011% 15 8 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 M. Cap (USD Companies Bn) Saudi Arabia (SAR) SABIC 76 Al-Rajhi Bank 29 Saudi Telecom 19 Saudi Electricity Co. 16 Samba Fin. Group 12

Close

Chg (%) MTD % YTD %

1,719.10 33.54 117.35 495.44 19.54 1.31 78.41 0.2778 0.3646 * 4Q11

-0.20 -0.45 -0.49 -0.52 2.63 0.50 -1.08 -0.12 0.36

Last

Pct Chg

% M T D

95.0 73.8 36.3 14.2 48.9

0.0 -0.3 -0.5 0.4 -0.4

0.5 2.1 5.8 3.3 8.2

-1.15 1.27 5.74 -0.71 0.51 -0.34 -2.78 -0.11 -0.47 % Y T D -1 6 7 2 5

9.91 20.73 9.28 2.79 -16.50 -1.30 -1.90 0.18 -1.12

23.4 1.2955 76.92 0.27825 0.3605

P 2011 / Div % E yield (ttm) -8 -16 -21 -1 -24

10 15 9 27 10

4.2 4.4 6.2 4.9 3.2

Corporate earnings watch Company Name

32 -3 -5 -1 -4

Galfar Engg & Contrctng Oman Intl Marketing Renaissance Services Co. Gulf Nor Afr Holding

PAT (Mn) 3Q11

5,237* 1,899* 2,278* -514* 944*

% Gr YoY -9 14 -0 NM 5

Earnings Type

LFY

PFY

% Ch

Country

Currency

12M

Oman

OMR(Mn)

5.17

6

12M

Oman

OMR(Mn)

-0.04

-0.2

14 NM

12M

Oman

OMR(Mn)

2

29

-92

12M

Kuwait

KWD(Mn)

-2

0

NM

News & Views   

Iraq aims to more than double northern oil production from around 600,000 bpd to about 1.3mn bpd by the end of 2014, executives from the Northern Oil Co said. Kuwait will complete the feasibility study soon for a JV with Sinopec and Total SA to build a 300,000 bpd refinery and 1mn MTPA ethylene complex in Zhanjiang in China, the head of Kuwait oil company said. QNB Finance, a subsidiary of Qatar National Bank, will raise $1bn through the sale of a 5yr bond, priced to yield 3.456%, a banker familiar with the deal said. Saudi Cement Co. said it will reopen two kilns with a combined production capacity of 5,325 tons of clinkers by May, responding to rising demand for cement. Saudi utility Marafiq signed an agreement with Saudi banks for a SAR 4.5bn ($1.2bn) Islamic Murabaha loan for projects and operations. S&P has affirmed ‘A/A-1’ long- and short-term corporate credit ratings on Qatar’s incumbent fixed-line and mobile operator Qtel. The outlook is stable. S&P has said that rising tension between Iran and the West is increasing political and economic risks for sovereign & corporate issuers in the Middle East and is focusing attention on the key role of the Strait of Hormuz in trade for the Gulf. Bahrain’s Gulf Air has decided to close four of its biggest underperforming routes - Syrian captal Damascus, Athens (Greece), Milan (Italy) and Kuala Lumpur (Malaysia) from next month.

ETISALAT 20 9.4 1.4 -1.2 3 -15 10 6.4 704* -65 NBAD 9 10.9 0.0 1.4 0 12 9 2.8 724* -1  First Gulf Bank 7 17.9 0.6 4.1 16 -11 8 5.6 1,022* 18 Emirates NBD 5 3.0 1.0 -1.0 1 7 6 6.7 175 -59 Emaar Properties 5 3.0 1.4 8.8 16 -28 14 3.4 406 -34  Kuwait (KWD)  13 0.9 -2.3 2.4 -4 -41 12 23.3 70 -13 ZAIN 17 1.2 -1.7 -1.7 4 -14 15 3.4 77* -0 NBK 8 0.8 -1.2 -3.5 -8 -16 28 2.4 25 -5 KFH  Gulf Bank 4 0.5 0.0 0.0 -4 -11 33 0.0 3* -63 3 0.7 0.0 -5.3 -10 -14 32 0.0 -7* NM Comm. Bk. Kuwait Qatar (QAR) Industries Qatar 20 134.0 -0.3 2.6 1 -4 9 4.1 2,074 46  26 136.3 0.2 2.4 -1 14 12 2.9 2,092* 35 QNB 14 18.9 0.0 -1.3 -15 -27 332 0.0 202 17 Ezdan Real Est. Co. 7 149.9 0.5 2.7 6 -5 11 3.3 567 -13 Q-TEL 6 81.1 0.5 -2.1 -3 -9 11 7.4 379* 23 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>.

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Daily Morning Brief 15022012