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Kuwait Financial Centre “Markaz” Daily Morning Brief Equity watch M. Cap Last Indicators (USD Bn) Close MENA Markets Saudi (TASI) 374 7,150 Turkey ISE National 100 189 58,822 Kuwait SE WT.INDEX 105 409 Qatar(QE Index) 97 8,758 Abu Dhabi (ADI) 75 2,575 Morocco (CAI) 63 11,341 Dubai (DFMGI) 52 1,654 Egypt (Hermes) 61 521 Jordan (Amman) 23 4,494 Bahrain (BAX) 17 1,146 Oman(Muscat SM) 14 5,747 Lebanon (BSE) 13 1,201 Emerging Markets MSCI EM Index 4,229 1,046 MSCI BRIC Index 1,910 1,056 Shanghai A Share Index 2,591 2,563 SENSEX Index (India) 599 17,446 S&P GCC Composite 250 99 Developed Markets MSCI WORLD Index 32,862 839 US (S&P 500) 12,779 1,368 UK (FTSE) 2,622 5,916 Japan (Nikkei 225) 2,354 9,634 France (CAC) 1,190 3,441 Germany (DAX) 963 6,850

*

2011 P/E Div. % TTM Yield

28 February, 2012

5 – year CDS (USD) watch (bps)

Chg (%)

MTD %

YTD %

0.86 -1.53 -0.01 -0.21 0.14 -0.70 -1.33 -0.40 0.60 0.20 0.54 0.38

7.90 2.89 0.86 2.22 4.94 1.15 15.22 11.59 1.80 0.53 3.34 2.90

11.41 14.74 0.74 -0.24 7.20 2.84 22.23 36.41 -3.33 0.19 0.92 2.02

-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 4.6 4.2 4.8 3.3 4.1 4.3 3.5 5.1 6.3 0.5

Interest rate watch

-1.02 -1.09 -0.00 0.00 0.49

3.99 5.24 6.72 1.47 6.36

15.61 20.00 11.25 12.88 8.09

-21 -26 -22 -25 -8

12 10 13 15 12*

2.8 2.8 2.1 1.3 3.5*

Yield curve watch

-0.30 0.14 -0.33 0.00 -0.74 -0.22

4.59 4.20 4.12 9.45 4.33 6.05

10.87 8.75 6.16 13.94 8.91 16.13

-10 0 -6 -17 -17 -15

14 15 11 17 10 12

2.7 2.5 4.0 2.0 4.5 3.6

Country Saudi Arabia Abu-Dhabi Dubai Qatar Oman Bahrain

Current

2011

136.70 139.23 396.79 139.21 195.50 378.59

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 0.35 0.33 Saudi 0.50 0.33 UAE 0.55 0.33 Qatar 0.20 0.33 Oman 0.36 0.33 Bahrain 1.00 0.33 Last FOMC Meeting Date: Jan 24-25

Libor (In %)

Diff FY10 Diff 0.02 0.04 0.17 -0.08 0.22 0.03 -0.13 0.05 0.03 0.03 0.67 -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 ETF HSBC/Nasd. Dub GCC $ T.Ret

Last 232 112 135

Chg (%) MTD % 0.41 -0.58 0.02 1.87 0.00 1.00

YTD % 0.32 3.53 1.52

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

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

Close 1,766.49 35.36 124.17 501.63 18.19 1.34 80.59 0.2770 0.3711 * 3Q11

Chg (%) MTD % YTD % 0.04 0.00 0.00 0.11 5.08 0.02 -0.06 0.03 0.03

1.58 6.76 11.89 0.53 -6.43 -2.34 -5.41 0.14 -2.21

12.94 27.29 15.64 4.07 -22.26 -3.29 -4.55 0.44 -2.86

23.4 1.2955 76.92 0.27825 0.3605

32 -3 -5 -1 -4

Corporate earnings watch Company Name

Emirates Driving Co.

Earnings Type

12M

Country

UAE

Currency

LFY

PFY

% Ch

AED(Mn)

43.69

65.21

-33

News & Views

 Bahrain's Investcorp said it has sufficient cash available to meet its future M. % % P PAT (Mn) debt requirements, days after Fitch flagged concerns about the Cap Pct M Y 2011 / Div Last % Gr company's $838mn in debt falling due in the next 14 months. (USD Chg T T % E yield 4Q11 Companies YoY  Oman Cement Co. said it has been given the green light by the Bn) D D (ttm) environment ministry to restart its first production line after the company Saudi Arabia (SAR) pledged to accelerate the implementation of a project to improve the SABIC 80 100.5 0.0 6.3 4 -8 10 4.0 5,237 -9 environmental impact of Kiln 1. Al-Rajhi Bank 31 78.0 0.3 8.0 12 -16 16 4.2 1,899 14  Nomura said it has received approval from the Saudi market regulator to Saudi Telecom 20 38.1 1.3 11.1 13 -21 10 5.9 2,278 -0 offer international investors access to local stocks. Saudi Electricity Co. 16 14.3 0.4 4.0 3 -1 27 4.9 -514 NM  Passenger numbers through Dubai International Airport rose 14% YoY to Samba Fin. Group 12 51.8 1.5 14.5 11 -24 11 3.2 944 5 hit 4.85mn in January, but cargo continued to suffer amid global uncertainty, falling 2.6% in the same period. United Arab Emirates (AED)  Nakheel has paid AED 202.2mn to its lenders as part its restructuring ETISALAT 20 9.5 0.0 0.4 4 -15 13 6.3 -926 NM commitments. The payments are in line with the due date, which is NBAD 9 11.0 -0.9 2.3 0 12 9 2.7 724 -1 scheduled for the end of this month. First Gulf Bank 8 19.5 3.1 13.7 26 -11 8 5.1 1,022 18  Bahrain-based Arcapita Bank is facing a potentially painful debt workout Emirates NBD 5 3.2 -1.5 7.3 10 7 7 6.2 2,531 523 as it mandates advisers ahead of the March deadline for the group's to Emaar Properties 5 3.1 -1.9 12.4 20 -28 14 3.2 716 162 repay $1.1bn of loans. Kuwait (KWD)  S&P has affirmed its 'BB/B' long and short term corporate credit ratings 13 0.9 0.0 1.2 -6 -41 12 23.5 75 -14 on port operator DP World Ltd. The outlook was revised from positive to ZAIN stable. 17 1.2 0.0 0.0 5 -14 15 3.4 77 -0 NBK  Qatar Petroleum is considering investment in Australian LNG facilities and 8 0.8 0.0 -4.7 -9 -16 27 2.4 10 10 KFH possibly buying into an export boom that poses the only serious challenge Gulf Bank 4 0.5 0.0 -1.0 -5 -11 39 0.0 31 252 to its place as the world's top LNG exporter, a company official said. 3 0.7 -4.0 -4.0 -9 -14 1,125 0.0 -7 NM Comm. Bk. Kuwait  Doha Bank has mandated JP Morgan and Morgan Stanley to arrange Qatar (QAR) fixed-income investor meetings starting this week, and may issue a USD Industries Qatar 21 140.6 -0.8 7.7 6 -4 10 3.9 1,686 19 denominated, benchmark-sized bond depending on market conditions. 26 134.0 0.1 0.7 -3 14 11 3.0 2,092 35 QNB 14 19.2 0.2 0.4 -13 -27 338 0.0 202* 17 Ezdan Real Est. Co. 8 156.7 0.4 7.3 11 -5 11 3.2 567* -13 Q-TEL 6 83.1 -0.6 0.4 -1 -9 11 7.2 379 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>. 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


DMB 28022012