GBCM Morning Briefing

Contents GCC Equity Markets Monitor MSM Statistics and Indicators MENA, Global markets, Benchmark Indices and Currencies Performance Global Commodities and Petrochemicals Oman News MSM Market Watch Regional News Coverage

July 17, 2016

7/17/2016

GCC - Equity Market Monitor 15.0%

10.0%

5.0%

0.0%

-5.0%

-10.0%

Oman

Saudi

UAE (DFM)

Daily Return

-0.9%

-0.4%

-0.3%

UAE (Abu Dhabi) 0.1%

0.1%

Kuwait Wtd 0.1%

YTD Return

8.4%

-3.6%

10.2%

6.3%

-4.0%

-8.6%

0.0%

-3.5%

MTD Return

1.4%

2.5%

4.9%

1.8%

0.5%

-0.7%

5.5%

4.9%

QTD Return

1.4%

2.5%

4.9%

1.8%

0.5%

-0.7%

5.5%

4.9%

GBCM Morning Briefing 2

Kuwait - PI

Qatar

Bahrain

1.1%

-0.1%

MSM - Net Buy/(Sell) Position

Top 5 - Turnover Market Share – Previous Week

Previous Week’s Turnover: RO 14.483 million (c. US$ 37.7 million) Figures In RO

Value Leaders

Sector

Turnover (RO)

Market Share

Al Anwar Holding

Inv Hldg

1,560,347

10.77%

Ooredoo

Telecom

1,380,006

9.53%

BUY

SELL

NET

12,629,924

11,350,286

1,279,638

GCC

799,826

407,518

392,309

Bank Muscat

Banking

1,373,825

9.49%

Arabs

216,288

228,973

(12,685)

Omantel

Telecom

1,118,518

7.72%

OTHERS

837,199

2,496,461

(1,659,262)

Bank Sohar

Banking

1,084,109

7.49%

OMANIS

MSM - Lead Indicators Value Indicators **

Mkt. Cap (In RO 000s)

Daily Market Performance

PER (X)

P/BV (X)

Dividend Yield (%)

Indices Monitor

Current Closing

Previous Closing

Daily % MTD % Chg Chg

YTD % Chg

MSM 30

6,438,955

9.3

1.2

5.4%

MSM 30

5,859.96

5,915.46

-0.94%

1.43%

8.39%

Financial

3,092,556

7.6

0.9

5.1%

Financial

7,484.50

7,490.95

-0.09%

3.00%

15.55%

Industrial

1,128,378

11.0

1.6

4.6%

Industrial

7,441.20

7,486.57

-0.61%

1.81%

9.90%

Services

3,009,653

12.7

2.0

5.8%

Services

3,225.97

3,274.27

-1.48%

-0.30%

5.57%

MSM Shariah

3,461,708

11.6

1.9

5.3%

894.51

901.38

-0.76%

0.92%

4.58%

MSM Shariah

7/17/2016

GBCM Morning Briefing 3

MENA Markets Performance Index

Global Markets Performance

Closing % Chg MENA

%MTD

%QTD

%YTD

9.2 0.6 1.8 3.3 2.0 7.8

8.2 -1.5 6.8 9.3 -3.5 15.5

2.6 2.6 3.0 2.7 1.1 1.7 3.0

-1.5 -1.8 3.2 -1.7 -2.2 0.8 -1.2

7,583.1 0.3 9.2 2,104.1 0.3 0.6 5,383.8 0.0 1.8 20,761.9 0.0 3.3 514.0 -0.3 2.0 82,825.4 0.3 7.8 MENA Benchmark (S&P/ MSCI) 113.8 0.0 2.6 93.7 0.0 2.6 1,493.2 0.0 3.0 445.9 0.0 2.7 494.6 -0.4 1.1 438.4 -0.5 1.7 487.6 0.0 3.0

Egypt Jordan Tunis Morocco Palestine Turkey S&P GCC LMC S&P GCC (USD) S&P GCC (40 Index) MSCI GCC MSCI Frontier MSCI Frontier ex GCC MSCI Arabian Index

Closing

% Chg

%MTD

%QTD

%YTD

-0.2

2.9

2.9

2.3

MSCI World -Ex USA

1,654.6

-0.3

2.7

2.7

-2.3

MSCI Europe- USD

1,440.9

-0.5

2.1

2.1

-5.4

867.8

0.2

4.0

4.0

9.3

Fixed Income (Bloomberg/EFFAS Bond Indices) US 10+ Yr TR

632.7

-0.2

0.2

0.2

15.8

Euro Liquid 10+ Yr TR

236.3

-0.3

-0.4

-0.4

5.4

-2.4

10.4

Commodity (Bloomberg) Commodity

86.7

2,161.7 18,516.6 5,029.6 55,578.2

FTSE 100 CAC 40 DAX

6,669.2 4,372.5 10,066.9

Nikkei Hang Seng Sensex Shanghai Korea Russia

16,497.9 21,659.3 27,836.5 3,054.3 2,017.3 963.7

-0.1 0.1 -0.1 0.2

%QTD

%YTD

3.0 3.3 3.9 7.9

3.0 3.3 3.9 7.9

5.8 6.3 0.4 28.2

0.2 -0.3 0.0

2.5 3.2 4.0

2.5 3.2 4.0

6.8 -5.7 -6.3

0.7 0.5 -0.4 0.0 0.4 -0.9

5.9 4.2 3.1 4.3 2.4 3.5

5.9 4.2 3.1 4.3 2.4 3.5

-13.3 -1.2 6.6 -13.7 2.9 27.3

%QTD

%YTD

0.5 -0.6 -0.4 -1.6 -0.9 -1.5 -0.7 -0.7 0.1 0.7 1.7 0.9 -4.6 0.0 0.0 0.0 -0.1 0.0 0.0

-2.1 1.6 6.7 14.6 -10.5 -1.7 2.0 -3.0 0.0 -1.4 4.0 5.3 -3.3 0.0 0.0 0.1 0.5 0.0 -0.1

Global Currencies

1,700.6

MSCI EM Index

S&P 500 Dow Jones Nasdaq Brazil

%MTD

Asia Pacific

Global Equity (MSCI) MSCI World – USD

Closing % Chg Americas

Europe

Global Benchmark Indices Index

Index

-0.5

-2.4

Source: Data taken from Bloomberg c. 9 AM Muscat Time

Index

Closing % Chg %MTD In Comparison with USD

US Dollar Index USD Vs EURO USD Vs Canadian Dollar USD Vs Japanese Yen USD Vs GBP USD Vs Swedish Krona USD Vs Swiss Franc USD Vs Chinese Renminbi USD Vs Hong Kong Dollar USD Vs Indian Rupee USD Vs Aus Dollar USD Vs Indonesia Rupiah USD Vs Turkish Lira Spot USD Vs Omani Riyal USD Vs UAE Dirham USD Vs Saudi Riyal USD Vs Kuwait Dinar USD Vs Qatar Riyal USD Vs Bahrain Dinar

96.580 1.104 1.297 104.880 1.319 8.588 0.983 6.694 7.754 67.071 0.758 13,096.000 3.016 0.385 3.673 3.750 0.302 3.642 0.377

0.5 -0.8 -0.6 0.4 -1.1 -1.1 -0.2 -0.1 0.0 -0.2 -0.7 -0.2 -4.6 0.0 0.0 0.0 0.0 0.0 0.0

0.5 -0.6 -0.4 -1.6 -0.9 -1.5 -0.7 -0.7 0.1 0.7 1.7 0.9 -4.6 0.0 0.0 0.0 -0.1 0.0 0.0

7/17/2016

GBCM Morning Briefing 4

Commodities Performance Index

Petrochemical Performance

Closing

% Chg

%MTD

%QTD

Index

%YTD

Closing

%MTD

%QTD

%YTD

Aromatics (in USD/ MT)

Energy

660.0

1.5

1.5

6.5

NYMEX Crude

46.0

0.6

-4.9

-4.9

9.7

Benzene FOB Korea Spot

645.0

7.5

7.5

13.2

ICE Brent Crude

47.6

0.5

-4.2

-4.2

12.0

Benzene CFR Japan Spot

650.0

7.4

7.4

13.0

Benzene CFR India Spot

655.0

7.4

7.4

12.9

Crude Oil, Oman

44.4

0.6

-7.1

-7.1

42.1

NYMEX Natural Gas

2.8

0.0

-5.7

-5.7

9.2

NYMEX Gasoline

142.2

0.6

-5.3

-5.3

Condensates (in USD/ MT)

-4.0

Precious Metals Gold Spot

1,337.5

0.2

1.2

1.2

26.0

Silver Spot

20.2

-0.4

8.1

8.1

46.0

Platinum Spot

1,093.0

-0.9

6.7

6.7

22.4

Palladium Spot

650.2

0.4

8.8

8.8

15.6

1,654.8

-1.0

0.7

0.7

10.3

LME Copper-Spot

4,900.5

-0.4

1.3

1.3

4.1

LME Zinc-Spot

2,200.5

0.7

4.7

4.7

38.2

LME Lead-Spot

1,867.3

-1.3

4.6

4.6

3.9

LME Nickel-Spot

10,238.8

-0.8

8.9

8.9

16.6

614.0

Corn - Active Contract

358.3 424.8

-0.2

-0.6

-0.6

48.0

-1.8

-3.5

-3.5

-6.5

-2.1

-4.7

-4.7

-13.7

CBOT - Soya bean

1,057.3

-0.5

-8.3

-8.3

19.8

745.0

0.9

12.9

12.9

55.9

-6.3

0.9

Naphtha C&F Japan

397.8

-5.3

-5.3

-3.1

Naphtha CIF NWE Cargo

391.1

-4.6

-4.6

2.6

Naphtha fob Singapore Spot

42.9

-5.4

-5.4

-2.5

Ethylene Spot

1,000.0

0.0

0.0

12.4

Ethylene FOB Korea Spot

1,090.0

3.3

3.3

2.8

Ethylene FOB Japan Spot

1,085.0

3.3

3.3

3.3

710.0

2.9

2.9

21.4

2EH CFR Far East Asia

755.0

-1.3

-1.3

11.9

2EH CFR South East Asia

805.0

-1.2

-1.2

15.8

DOP CFR Far East Asia

795.0

-3.6

-3.6

0.6

Polymers (in USD/ MT) LLDPE Future Contract (CNY/ MT) 9,100.0 0.8 Film Grd Poly HDPE Far E Spot 1,140.0 2.2

0.8 2.2

19.3 9.6

Film Grd Poly HDPE SE Asia

1,155.0

2.2

2.2

10.0

Film Grd Poly HDPE India Spot

1,180.0

3.5

3.5

11.3

Urea (in USD/ MT) Urea Price (RMB/ MT)

Shipping Baltic Dry Index

-6.3

Intermediate (in USD/ MT)

Agriculture

Wheat - Active Contract

391.0

Propylene FOB Korea Spot

Steel US - Hot Roll Coil Steel

European Naptha

Olefins (in USD/ MT)

Base Metals LME Aluminium-Spot

Benzene Aromatics Rotterdam

1,295.0

-1.9

-1.9

-10.7

UREA Cornbelt

230.0

-4.2

-4.2

-22.0

UREA Middle East

185.0

-11.9

-11.9

-22.9

US Urea Avg. Retail Price

383.1

-2.3

-2.3

-10.8

Source: Data taken from Bloomberg c. 9 AM Muscat Time

7/17/2016

GBCM Morning Briefing 5

Oman News Ooredoo reports H1 results

(Source: MSM)



The company revenue recorded a growth of 8.9% to R.O 132.8 million compared with R.O 121.9 million in the corresponding period of 2015. This is inline with our estimates.



The Net profit for H1 2016 is RO 24.9 million compared to RO 22.2 million in 2015, an increase of 12.2% YoY. This is inline with our estimates.



Income tax for the second quarter ending June 2016 includes a reversal of tax amounting to OMR 0.6m on account of revising the tax provision for the year to be at 12% instead of the 15% provided for in first quarter of 2016.



Further, Income tax for the second quarter of last year includes an additional charge of OMR 0.9m on account of the tax years 2008 to 2013.

Al Jazeera Steel reports H1 results 

(Source: MSM)

Company has reported a PAT of RO 2.708 million an increase of 88% YoY. This is well above our estimates.

Renaissance Services reports H1 results

(Source: MSM)



For Q2 2016 the company has reported a loss of RO 2 million (approx) which is disappointing. This is below our estimates.



For H1 the Company has reported a Net loss of RO 1.518 million as against a Net loss of RO 4.668 million.

National Bank of Oman reports H1 results

(Source: MSM)



The bank has reported a PAT of RO 29.4 million an increase of 5% YoY. This is above our estimates.



The Loans, advances and financing activities for customers (net) for H1 2016 had increased by 15% To RO 2,793 million. While the Customers’ deposits have declined marginally by 1% to RO 2,440 million.

GBCM Morning Briefing 6

Oman News Dhofar Cattle Feed reports H1 results

(Source: MSM)



The parent Company has reported a PAT of RO 757k a decline of 26.5% YoY.



The subsidiary and associate results are not yet published by the respective companies as such initial consolidated results are not available.

Al Izz Bank reports H1 results 

(Source: MSM)

The bank has reported a net loss of RO 2.090 million for H1 2016 as against a net loss of 3.053 million.

Ominvest reports H1 results 

(Source: MSM)

The Company has reported a PAT of RO 11.667 million for H1 2016 an increase of 11% YoY.

Al Maha Petroleum reports H1 results 

(Source: MSM)

The Company has reported a PAT of RO 4.540 million for H1 2016 a decline of 13% YoY. This is above our estimates.

Ahli Bank reports H1 results

(Source: MSM)



The bank reported a Net profit of RO 14.2 million for H1 2016 a marginal decline of 2.7% YoY. This is above our estimates.



Loans and advances during H1 2016 grew by 1.1% YoY to RO 1,548 million. While the customer deposits increased by 0.8% to RO 1,234 million.

Al Suwadi Power reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 4.440 million for H1 2016 an increase of 40.0% YoY. This is above our estimates.

Salalah Mills reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 2.025 million for H1 2016 a decline of 25.9% YoY. This is below our estimates.

GBCM Morning Briefing 7

Oman News Sohar Poultry reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 473k for H1 2016 a decline of 28.9% YoY.

Takaful Oman Insurance reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 1.621 million for H1 2016 as against a net profit of RO 814k during the previous year.

Sohar Power reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 1.873 million for H1 2016 an increase of 266.5% YoY.

Oman Oil Marketing reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 4.851 million for H1 2016 a decline of 12.0% YoY. This is above our estimates

United Power reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 352k for H1 2016 a decline of 34.8.0% YoY

Al Batinah Power reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 4.194 million for H1 2016 a considerable surge of 27.4% YoY.

Bank Sohar reports H1 results

(Source: MSM)



The bank reported a Net profit of RO 8.813 million for H1 2016 a decline of 36.5% YoY. This is below our estimates.



Loans and advances during H1 2016 grew by 12.5% YoY to RO 1,785 million. While the customer deposits declined by 4.8% to RO 1,491million.

GBCM Morning Briefing 8

Oman News Galfar Engg reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 540k for H1 2016 as against a Net profit of RO 13k during the corresponding period previous year. This is below our estimates.

Dhofar Poultry reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 215k for H1 2016 as against a net profit of RO 309k during the previous year.

Gulf Int Chemicals reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 412k for H1 2016 a decline of 16%YoY. This is above our estimates.

Oman Chlorine reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 840k for H1 2016 a decline of 32.6% YoY.

OIFC reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 2.865 million for H1 2016 a decline of 14.4% YoY. This is in line with our estimates.

Dhofar Insurance reports H1 results 

(Source: MSM)

The company reported a Net loss of RO 2.835 million for H1 2016 as against a Net profit of RO 71k during the corresponding period previous year.

Al Hassan Engg reports H1 results 

(Source: MSM)

The company reported a Net profit of RO 99k for H1 2016 as against a Net loss of RO 1.345 million during the corresponding period previous year. This is below our estimates.

GBCM Morning Briefing 9

MSM - Market Watch

Source: Bloomberg, GBCM Research

Market Outlook – To open on a positive note During the last trading week, the MSM Index surged up by 0.8% and closed the week at 5,859.96 points. Over the weekend the world witnessed Nice (France) Attack and a failed military coup in Turkey which are likely to have a minimal impact on the regional markets though some knee jerk reaction may be seen. With Q2 results started coming in, the regional markets are likely to take cue on the same during the week. For the day, the MSM Index is likely to open in green and to witness stock specific activty throughout the trading session.

GBCM Morning Briefing 10

UAE News Abu Dhabi Islamic Bank reports Q2 results

(Source: Arabian Business)



Abu Dhabi Islamic Bank (ADIB) warned it was restricting the amount of new credit it was extending due to an increase in defaults across its business lines.



The message from the emirate's largest Islamic bank is perhaps the most stark yet of the impact on the banking sector in the United Arab Emirates from reduced government spending as a result of lower oil prices.



The bank posted a 1 percent rise in second-quarter net profit to 507.5 million dirhams ($138.2 million).

Union National Bank reports Q2 results 

(Source: Reuters)

Union National Bank’s (UNB) 2Q16 net profit declined 17.3% YOY to AED 469.5 million.

Commercial Bank of Dubai reports Q2 results 

(Source: Reuters)

Commercial Bank of Dubai’s (CBD) 2Q16 net profit declined 22% YOY to AED 245 million. Impairment allowances on the bank’s loans & advances and Islamic finance more than doubled to AED 181.6 million (vs. AED 77.9 million in 2Q15).

GBCM Morning Briefing 11

GCC News Qassim Cement reports H1 2016 results

(Source: Argaam)



Qassim Cement reported a net profit of SAR 250.6 million for the first half of 2016; a 24.2% YoY drop compared to the same period last year.



The decline was attributed to lower sales, subdued demand, along with higher cost of goods due to increases in electricity and fuel prices.

Almarai reports Q2 2016 results

(Source: Argaam)



The Net Income for the second quarter grew by 18.5% to SAR 628.8 million as compared to the corresponding quarter of the previous year.



This is on the back of continuous growth in the main segments from Dairy & Juice by 9.5%, Bakery by 16.2% and Poultry by 20.1%.

S&P: Qatar’s economy to remain resilient

(Source: Gulf Base)



Qatar’s economy is expected to remain resilient, supported by solid macroeconomic fundamentals, according to Standard & Poor’s.



The recent forecast is despite the ratings agency’s expectation of continued institutional weaknesses and a moderate increase in hydrocarbon prices over the next two years.

.

GBCM Morning Briefing 12

| Institutional Sales - Hunaina Banatwala, (+968) 2235 0717 |Institutional Brokerage - Talal Al Balushi, (+968) 2235 0725| | Equity Research - Kanaga Sundar, (+968) 2235 0727 | Vijay Sridharan, (+968) 2235 0728 |

Disclaimer: This document has been prepared and issued by Gulf Baader Capital Markets SAOC ("the Company") on the basis of publicly available information, internally developed data and other sources believed to be reliable. While all care has been taken to ensure that the facts stated are accurate and the opinions given are reasonable, neither Gulf Baader Capital Markets SAOC nor any employee shall be in anyway responsible for the contents of this report. The Company may have a position and may perform buying/selling for itself or its clients in any security mentioned in this report. This is not an offer to buy or sell the investments referred therein.

7/17/2016

GBCM Morning Briefing 13