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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER

QE Index: Short-Term – Uptrend

The QE Index rose around 61 points (0.44%) to scale yet another life-

time high and close near the 14,100.0 mark. The index started the

day on a sluggish note and momentarily penetrated below the

14,000.0 level. However, buyers stepped in and quickly offset all the

weakness. The index has support for a further higher move from both

the momentum indicators, which are positively poised. Conversely,

the 14,050.0 level may act as an intermediate support.

Commercial Bank of Qatar: Short-Term – Pullback

CBQK penetrated below its important support of QR74.30 on

Wednesday and further declined on Thursday, confirming this

pullback. Moreover, the RSI has shown a negative slope, while the

MACD is closing the signal line in a bearish manner, indicating

weakness. We believe the stock may continue to drift lower toward its

immediate support of QR72.40. However, if the stock manages to

climb above QR74.30 it may provide some relief.

Al Rayan Islamic Index: Short-Term – Neutral

The QERI Index continued it winning streak for the fourth straight

session and gained around 12 points (0.25%) to settle at 4,768.98.

However, unfortunately for the bulls, the index failed to close above

the 4,770.0 level for the third time. Therefore, the 4,770.0 level poses

a hurdle that the index must surpass and sustain above it in order to

continue its upward momentum. On the flip side, any failure to clear

4,770.0 on a closing basis may result in a pullback.

Ooredoo: Short-Term – Pullback

ORDS failed to make any further headway above QR132.0 and

drifted lower after encountering stiff resistance. This level has so far

proven to be an elusive mark despite rejected test over the past few

days. Therefore, the preferred direction for ORDS seems to be on the

downside. We believe the stock may continue to weaken further and

test QR129.70. However, a close above QR132.0 may attract buyers.

Meanwhile, the RSI is sliding down toward the mid-line.

Milaha: Short-Term – Upmove

QNNS continued its bullish momentum and advanced 0.72% on

Thursday. The stock has been showing strength to register gains,

since moving above the 21-day moving average over the past few

days. We believe based on the recent price action, the stock has

enough steam to surpass QR97.80, targeting QR98.80. However,

any retreat below QR96.50 may drag the stock down. Meanwhile,

both the indicators are moving up in a bullish manner.

Industries Qatar: Short-Term – Bounce Back

IQCD gained 1.52% and breached its important resistances of

QR192.10 and QR193.50 in a single swoop. Notably volumes were

also large on the rise, indicating optimism among traders. The stock is

currently at the threshold of its immediate resistance of QR194.60. If

IQCD manages to close above QR194.60, another higher wave is

likely toward QR198.0. However, a dip below QR193.50 may halt its

upmove. Meanwhile, the RSI has shown a bullish divergence.

Contacts

Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC Head of Research Senior Research Analyst Senior Research Analyst Manager - HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666 Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar

DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report.

COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 2 of 2

*These stocks are today’s suggested ideas

Overall Methodology: The charts and descriptions on Page 1 provide an indicative view of the future direction of the equities mentioned. The table on page 2 has been provided to denote historical movements in certain stocks. The historical trend analysis uses 21- and 55-day SMAs for indicating short-term and long-term trends, respectively. Based on these SMAs, the historical direction of the trend is denoted as UP, DOWN or FLAT. Selection of Key Stocks of the Day: Key stocks’ selection is based on our analysis of 19 members of the QE Index (excludes QNBK QD). Analysis includes identifying trends (short-term as well as long-term), patterns and support/resistance levels. Trend Direction: The methods used to determine trend direction are subjective in nature. We use 21-day SMA and 55-day SMA, absolute price movements, price movements relative to SMAs and accurately drawn trend lines and chart patterns to determine the short- and

long-term trends. Investment Horizon: The definition of short term and long term depends upon investors’ preferences and their investment objectives. As a rule of thumb, the time horizon for traders/short-term trend is 1-3 weeks while it is 1-3 months for investors/long-term trend. Combining Technical and Fundamental Analysis: Investors can combine technical analysis (TA) with fundamental analysis (FA) to maximize their investment returns. While the “True Value” of stocks could be estimated by FA, the entry and exit timings could be fine tuned using technical analysis to benefit from short-term movements in stock prices. Trading Tactics: The trend direction should be analyzed based on the time-horizon of your investments. In general, investors attempt selling close to resistance levels during a downtrend and attempt buying close to support levels during uptrend. Definitions:

1> Simple Moving Average (SMA): A SMA is the average of the closing price of a security for a given period. 2> RSI (Relative Strength Index): A technical momentum indicator that ranges from 0 to 100 and compares the stock’s recent price movements by evaluating recent gains and losses. Stocks with RSI above 70 could be considered overbought and below 30 could be

considered oversold. If the RSI falls below 70, it is a bearish signal. On the other hand, if the RSI rises above 30 it is considered bullish. We use a RSI of 14 days. 3> MACD (Moving Average Convergence Divergence): MACD denotes the relationship between two moving averages, which is used to spot changes in strength, direction, momentum and duration of a stock price trend. The MACD is calculated by subtracting the 26-day

exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the signal line, is also plotted on top of the MACD, functioning as a trigger for buy/sell signals. The MACD line above the signal line provides a positive signal and vice versa.

Name (Ticker) Last Close Trend Support Resistance

Short Term Long Term First Second First Second

Qatar Exchange Index (QE Index) 14,088.82 UP UP 14,050.00 13,993.34 14,102.54 14,150.00

Al Rayan Islamic Index (QERI Index) 4,768.98 UP UP 4,750.00 4,707.59 4,770.31 4,811.58

Banks and Financial Services Banks and Financial Services

Masraf Al Rayan (MARK QD) 56.30 UP UP 55.80 54.00 57.30 58.20

Commercial Bank of Qatar (CBQK QD)* 73.50 UP UP 72.40 70.70 74.30 75.00

Doha Bank (DHBK QD) 62.20 UP UP 62.00 61.00 63.30 64.50

Qatar Islamic Bank (QIBK QD) 117.10 DOWN UP 115.00 112.50 117.40 119.90

Qatar International Islamic Bank (QIIK QD) 89.30 UP UP 89.00 87.80 90.50 92.40

Qatar Insurance (QATI QD) 100.00 UP UP 98.00 97.00 100.00 101.00

Al Khalij Commercial Bank (KCBK QD) 22.60 UP UP 22.50 22.35 22.85 23.23

Consumer Goods and Services Consumer Goods and Services

Medicare Group (MCGS QD) 130.10 DOWN UP 128.80 126.50 131.40 135.20

Al Meera Consumer Goods Co. (MERS QD) 190.00 UP UP 190.00 187.80 191.50 193.90

Industrials Industrials

Industries Qatar (IQCD QD)* 194.00 UP UP 193.50 192.10 194.60 198.00

Qatar Electricity & Water Co. (QEWS QD) 191.50 UP UP 190.00 188.00 192.00 194.00

Gulf International Services (GISS QD) 126.10 UP UP 124.10 122.50 129.80 131.50

Qatari Investors Group (QIGD QD) 59.20 FLAT UP 59.00 58.00 59.70 60.60

Real Estate Real Estate

Barwa Real Estate Co. (BRES QD) 42.55 UP UP 42.50 41.80 42.75 43.20

United Development Co. (UDCD QD) 29.65 FLAT UP 29.50 29.05 30.00 30.45

Telecom Telecom

Ooredoo (ORDS QD)* 130.70 UP UP 129.70 126.00 132.00 134.00

Vodafone Qatar (VFQS QD) 21.80 UP UP 21.40 21.00 21.97 22.50

Transportation Transportation

Nakilat (QGTS QD) 25.10 UP UP 24.90 24.45 25.30 25.90

Milaha (QNNS QD)* 97.60 UP UP 96.50 95.10 97.80 98.80