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Kuwait Financial Centre “Markaz” Daily Morning Brief Equity watch M. Cap Last Indicators (USD Bn) Close MENA Markets Saudi (TASI) 365 6,980 Turkey ISE National 100 177 56,936 Kuwait SE WT.INDEX 105 411 Qatar(QE Index) 98 8,403 Abu Dhabi (ADI) 76 2,463 Morocco (CAI) 53 9,747 Dubai (DFMGI) 48 1,467 Egypt (Hermes) 56 479 Jordan (Amman) 23 4,452 Bahrain (BAX) 17 1,149 Oman(Muscat SM) 14 5,619 Lebanon (BSE) 13 1,173 Emerging Markets MSCI EM Index 3,642 899 MSCI BRIC Index 1,540 850 Shanghai A Share Index 2,503 2,456 SENSEX Index (India) 498 16,153 S&P GCC Composite 241 96 Developed Markets MSCI WORLD Index 29,469 755 US (S&P 500) 12,113 1,295 UK (FTSE) 2,326 5,268 Japan (Nikkei 225) 2,079 8,611 France (CAC) 997 3,008 Germany (DAX) 823 6,271

*

Chg (%)

MTD %

YTD %

2011 P/E Div. % TTM Yield 12 9 17 9 7 10 10 10 12 8 12 10

4.0 2.7 2.3 4.5 6.1 4.1 4.5 3.9 5.0 5.3 6.4 0.9

Interest rate watch

0.00 -11.38 -0.58 0.00 -13.46 -3.47 -0.00 -2.16 6.58 0.00 -6.73 4.52 0.07 -6.21 4.21

-21 -26 -22 -25 -8

12 10 12 13 12*

2.9 3.0 2.2 1.5 3.6*

Yield curve watch

0.00 0.00 0.00 0.00 0.00 0.00

-10 0 -6 -17 -17 -15

15 14 10 15 10 11

2.7 2.7 4.5 2.3 4.5 4.1

-0.24 2.99 -5.47 1.84 -4.80 6.32

- 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

Saudi Arabia Abu-Dhabi Dubai Qatar Oman Bahrain

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

Current

2011

120.00 126.96 388.00 131.00 242.50 354.41

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 90.16 290.50 144.50 387.62 220.22

Source: Bloomberg, Reuters Eikon

Inter-bank 3M Int US 3M Deposit rate rates % Rate % Kuwait 0.65 0.50 Saudi 0.57 0.50 UAE 0.46 0.50 Qatar 0.40 0.50 Oman 0.31 0.50 Bahrain 1.00 0.50 Last FOMC Meeting Date: Apr 24-25

Libor (In %)

Diff FY11 Diff 0.15 0.04 0.07 -0.08 -0.04 0.03 -0.10 0.05 -0.19 0.03 0.50 -0.17 Next FOMC Meet Date: Jun 19-20

US Treasuries

(In %)

KIBOR yield curve (%)

Fixed Income Watch

Last 237 111 137

Country

0.19 -7.66 8.75 0.00 -5.12 11.06 0.42 -1.51 1.36 -0.62 -3.45 -4.28 -0.18 -1.61 2.55 0.00 -5.31 -11.61 -0.61 -10.08 8.36 -1.59 -2.43 25.65 -0.97 -4.12 -4.22 -0.24 -0.35 0.45 -0.67 -4.26 -1.34 0.00 -1.16 -0.30

-9.37 -7.35 -8.19 -9.55 -6.37 -7.25

21 May, 2012

5 – year CDS (USD) watch (bps)

Chg (%) MTD % 0.00 1.67 0.36 -2.34 0.00 -0.02

YTD % 2.55 2.27 3.32

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 1,592.00 28.63 107.14 480.59 25.1 1.28 79.16 0.2787 0.3562

Chg (%) MTD % YTD % 0.00 0.00 0.00 0.00 0.00 0.01 -0.19 -0.05 -0.03

-4.32 -7.50 -10.32 -2.20 46.36 3.59 0.78 -0.53 3.06

1.78 3.06 -0.22 -0.29 7.26 1.36 -2.83 -0.17 1.21

23.4 1.2955 76.92 0.27825 0.3605

32 -3 -5 -1 -4

Corporate earnings watch Company Name

Al Masar Lsng & Inv Coast Inv & Dev Kwt China Inv Co

Earnings Type

Country

PFY

% Ch

9M

Kwt

KWD(Mn)

-1.51

-1.46

N.M.

3M

Kwt

KWD(Mn)

-2.780

-5.16

N.M.

3M

Kwt

KWD(Mn)

4.61

1.87

146

Currency

LFY

M. % % P PAT (Mn) News & Views Cap Pct M Y 2011 / Div  Saudi Arabia's finance ministry said it approved 592 contracts worth SAR Last % Gr (USD Chg T T % E yield 1Q12 Companies 42.93bn ($11.5bn) during the first quarter of 2012, compared to 711 YoY Bn) D D (ttm) contracts worth SAR 50.91bn in the year earlier period. Saudi Arabia (SAR)  Oil production in Saudi Arabia rose to 9.923mn bpd in March, from SABIC 75 93.8 -0.3 -8.5 -3 -8 10 5.3 7,271 -5 9.853mn bpd in February, overtaking Russia as the world's largest Al-Rajhi Bank 29 72.0 0.3 -7.7 4 -16 14 4.5 2,011 18 producer for the first time in six years.  Saudi Aramco said it has completed, ahead of schedule, the second stage Saudi Telecom 21 40.2 0.0 -5.4 19 -21 9 5.0 2,521 60 of offshore non-associated gas field. The firm managed to raise output Saudi Electricity Co. 15 13.1 0.4 -4.4 -6 -1 23 5.3 -583 NM from 500mn standard cubic feet of fuel a day to about 1bn std cubic feet. Samba Fin. Group 11 47.3 -0.8 -8.6 2 -24 10 3.5 1,145 2  Qatar Solar Technologies, which is building a $1bn polysilicon plant in Ras United Arab Emirates (AED) Laffan, has signed an agreement with Qatar Electricity & Water Co. to ETISALAT 19 8.8 0.0 1.4 -3 -15 12 6.8 1,809 -0.5 look into ways of developing solar energy. NBAD 9 8.8 -0.3 0.6 10 12 9 3.4 1,041 12.2  Qatar's Al Faisal Holding Co. has bought Radisson Blu Aqua Hotel in First Gulf Bank 7 8.7 -1.3 -3.9 12 -11 7 11.6 935 6.8 Chicago, adding another property to its growing portfolio of assets. By Emirates NBD 4 2.7 0.7 -3.2 -7 7 9 7.3 641 -54.6 2020 the group hopes to own 25 hotels in prime cities across the globe.  Dubai government has been increasing its borrowing from Emirates NBD Emaar Properties 5 2.9 -0.7 -11.9 12 -28 9 3.5 606 44.0 as the emirate seeks new sources of funding. Its borrowing from ENBD Kuwait (KWD) reached AED 62.18bn ($16.94bn), or almost a third of the bank's loan 11 0.7 1.4 -5.4 -22 -41 10 9.3 71 1 ZAIN book, putting it in breach of new central bank limits on exposures to 16 1.1 1.9 0.0 4 -14 15 3.8 81 0 NBK government borrowers. 7 0.7 0.0 -5.5 -17 -16 25 2.2 20 -11.4 KFH  The government of the UAE will settle or restructure the toxic loans of Gulf Bank 4 0.4 -1.2 -5.7 -15 -11 38 0.0 7 -24.6 about 368 nationals worth nearly AED 568mn ($155mn), state run agency 4 0.8 5.2 3.8 3 -14 NM 0.0 0.3 -75.3 Comm. Bk. Kuwait WAM reported. Qatar (QAR)  Nakheel has launched a new mixed-residential development on Palm Industries Qatar 21 136.6 -0.7 -6.4 3 -4 10 5.5 1,907 -9 Jumeirah. The two-building project named Palm Views will include a total 26 133.0 -0.4 -0.3 -4 14 11 3.0 2,004 17 of 192 studio units priced at AED 1mn ($272,300) each, with retail space. QNB  Bahrain's Gulf Finance House said holders of $110mn Sukuk have agreed 14 19.5 -1.5 1.6 -12 -27 67 0.8 144 291 Ezdan Real Est. Co. to extend debt repayment until June of 2018. The deal also comes with a 10 116.7 -0.4 -16.7 8 -5 12 2.2 711 -12 Q-TEL two-year "grace period" for principal repayments this year and in 2013. 5 69.8 -0.3 -3.1 -17 -9 9 8.6 471 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

DMB21052012  

DMB21052012