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Daily Technical Trader – Qatar

Wednesday, 03 June 2015

Stocks Covered Today

Ticker Price 1st

Target

QEWS 223.50 238.00

GWCS 75.00 77.80

QSE Index

Level % Ch. Vol. (mn)

Last 12,184.80 0.1 14.0

Resistance/Support

Levels 1st

2nd

3rd

Resistance 12,270 12,350 12,400

Support 12,150 12,000 11,800

QSE Index Commentary

Overview: The QSE Index closed marginally higher. The Index experienced a bounce, which reached around the 50% Fibonacci retracement level from the previous move. We lean towards a slight drop as the Index flattened out in the past session, indicating buying power may have stabilized. Expected Resistance Level: 12,270 Expected Support Level: 12,150

QSE Index (Daily)

Source: Bloomberg, QNBFS Research

QE Summary

Market Indicators 02 Jun 01 Jun %Ch.

Value Traded (QR mn) 452.7 602.9 -24.9

Ex. Mkt. Cap. (QR bn) 650.9 649.5 0.2

Volume (mn) 12.2 15.5 -21.3

Number of Trans. 6,090 6,389 -4.7

Companies Traded 41 42 -2.4

Market Breadth 21:17 30:7 –

QE Indices

Market Indices Close 1D% RSI

Total Return 18,935.81 0.1 48.2

All Share Index 3,258.39 0.1 49.0

Banks 3,213.10 0.1 48.9

Industrials 3,951.13 1.0 49.7

Transportation 2,479.61 -0.6 53.7

Real Estate 2,729.05 -0.6 46.6

Insurance 4,761.87 -0.3 63.3

Telecoms 1,257.68 -0.7 43.9

Consumer 7,359.19 0.8 53.1

Al Rayan Islamic 4,679.64 0.7 53.3

RSI 14 (Over Bought)

Ticker Close 1D% RSI

QEWS 223.50 0.7 73.7

KCBK 22.38 -0.1 72.8

RSI 14 (Over Sold)

Ticker Close 1D% RSI

QSE Index (30min)

Source: Bloomberg, QNBFS Research

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QEWS

Price % Ch. Volume

Last 223.50 0.68 39,048

Resistance/Support

Levels (QR) 1st

2nd

3rd

Resistance 226.00 238.00 256.00

Support 211.00 179.00 178.00

Commentary

Overview: QEWS is trading in an uncharted territory, which makes is prone to further rise. The attached graphs show positive long term outlook as the bullish price channel is still intact. Technical indicators are positive and pullbacks (corrections) can be used to add long positions on the name. As a result, and over the long term, we see the name might rise further. Expected Target Price: QR238.00 – QR256.00 A sustained break above QR226.00 is needed to trigger the long recommendation. Suggested Stop-Loss Price: QR190.00

(Monthly)

Source: Bloomberg, QNBFS Research

(Weekly)

Source: Bloomberg, QNBFS Research

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GWCS

Price % Ch. Volume

Last 75.00 2.74 156,065

Resistance/Support

Levels (QR) 1st

2nd

3rd

Resistance 76.00 77.80 79.50

Support 73.00 72.40 70.00

Commentary

Overview: The name reached the QR76.00 level and above, which was our specified target for the name. Technical indicators suggest further rise is possible; the MACD is turning up and the RSI is looking positive (on both time frames). Expected Target Price: QR77.80 – QR79.50 A break above QR76.00 is needed to trigger the buy recommendation. Suggested Stop-Loss Price: QR73.00

(Daily)

Source: Bloomberg, QNBFS Research

(Hourly)

Source: Bloomberg, QNBFS Research

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Intraday Fibonacci Support and Resistance Levels Daily Moving Averages Support Levels Resistance Levels

Ticker Close 3rd

2nd

1st

Pivot 1st

2nd

3rd

50 SMA 100 SMA 200 SMA

QSE Index 12,184.80 12,120.61 12,148.05 12,165.00 12,192.43 12,219.87 12,236.82 12,264.25 12,067.96 12,100.41 12,688.39

Total Return 18,935.81 18,836.06 18,878.70 18,905.04 18,947.67 18,990.31 19,016.65 19,059.28 18,748.02 18,535.38 19,168.47

All Share 3,258.39 3,245.98 3,251.31 3,254.60 3,259.93 3,265.26 3,268.55 3,273.88 3,223.01 3,191.72 3,279.21

Al Rayan Islamic 4,679.64 4,634.61 4,651.46 4,661.87 4,678.71 4,695.56 4,705.97 4,722.81 4,552.21 4,405.61 4,444.40

Banks & Financials Services

MARK 46.10 45.53 45.82 46.00 46.28 46.57 46.75 47.03 47.49 47.05 49.04

CBQK 55.80 55.47 55.66 55.78 55.97 56.16 56.28 56.47 56.54 59.31 61.84

DHBK 54.50 53.57 53.83 54.00 54.27 54.53 54.70 54.97 53.50 54.80 56.75

QIBK 107.60 106.67 106.97 107.16 107.47 107.77 107.96 108.27 102.99 103.56 106.76

QIIK 79.40 78.73 79.04 79.23 79.53 79.84 80.03 80.33 79.97 81.48 83.51

Insurance

QATI 96.20 95.60 95.94 96.16 96.50 96.84 97.06 97.40 84.71 80.97 81.49

Consumer Goods & Services

MCGS 179.00 160.53 168.29 173.08 180.83 188.59 193.38 201.13 162.28 150.35 138.00

Industrials

IQCD 140.80 139.00 139.65 140.05 140.70 141.35 141.75 142.40 142.02 144.80 165.43

QEWS 223.50 219.50 221.03 221.97 223.50 225.03 225.97 227.50 204.77 197.89 192.71

GISS 77.90 76.63 77.24 77.62 78.23 78.84 79.22 79.83 86.26 91.91 102.48

QIGD 53.60 52.67 53.16 53.47 53.97 54.46 54.77 55.27 47.15 44.04 47.15

Real Estate

BRES 51.60 50.67 51.01 51.22 51.57 51.91 52.12 52.47 48.82 47.89 45.52

UDCD 23.65 23.42 23.49 23.54 23.62 23.69 23.74 23.82 22.48 23.20 25.06

ERES 17.81 17.14 17.41 17.57 17.83 18.10 18.26 18.52 17.48 16.56 17.39

MRDS 19.00 18.91 18.96 18.99 19.05 19.10 19.13 19.19 18.55 18.62 20.00

Telecommunication

ORDS 94.00 93.00 93.38 93.62 94.00 94.38 94.62 95.00 98.86 105.98 114.88

VFQS 17.16 16.99 17.07 17.12 17.19 17.27 17.32 17.39 17.46 17.12 18.20

Transportation

QGTS 22.47 22.16 22.33 22.44 22.60 22.77 22.88 23.04 22.55 23.25 23.53

QNNS 99.00 97.60 98.10 98.40 98.90 99.40 99.70 100.20 99.00 100.91 98.85 Source: Bloomberg, QNBFS Research; Note: Numbers in Italics denote moving averages that are above the given index level/stock price

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Definitions:

Candlestick: A chart that displays the high, low, opening and closing prices for a security in a single period. The body of the candle is made up by the opening

and the closing prices, i.e., the taller the body the greater the range between these two prices and vice versa. A colored candle denotes a closing price that is

lower than the opening price, while a white candle shows the opposite. The candlestick's shadows or wicks show the period's high and low prices and how they

compare to the opening and closing price. In general, the shape of the candle will vary upon the positions of the period's high, low, opening and closing prices.

Support: A level that could cause more buyers to step in in order to prevent the security from falling or causing the security price to head higher.

Resistance: An inverse of a support level. A resistance area or level could cause more sellers to step in in order to prevent the security from rising or causing the

security price to head lower.

SMA (Simple Moving Average): Is an arithmetic average, which calculates the average price of a security over a defined number of periods and is thus

considered a lagging indicator. SMAs used in our analysis refer to closing prices. In general, SMAs serve many purposes, such as a smoothing tool, an indicative

price direction and potential support/resistance levels.

Market Breadth: Breadth indicates the number of securities that have closed higher vs. the number of decliners in a particular exchange.

MACD (Moving Average Convergence/Divergence): Is a trading indicator, which shows changes in the strength, direction, momentum and duration of a trend in

a stock's price through a collection of three time series calculated from historical closing price data.

RSI (Relative Strength Index): Is a momentum indicator that compares a security’s price gains to its losses for a predetermined number of periods (we generally

use 14 periods). The RSI attempts to point out how a security, in relative terms, is in the overbought/oversold zone. Securities with a RSI above 70 could be

considered as overbought, and below 30 could be considered as oversold.

Pattern/Formation: Is a graphical presentation of a security’s price activity over a certain period of time. Formations come in different shapes (such as, head &

shoulders, triangles, flags, and so on). They can be used to identify potential trends, reversal of trends, price targets, entry and exit points, etc.

Fibonacci Retracements: Are horizontal lines that indicate expected areas of support/resistance for a security based on a predetermined price movement. These

levels are usually indicated by Fibonacci ratios of 23.6%, 38.2%, 50.0%, 61.8% and 100% from that particular movement.

Fibonacci Pivot and Intra-day Support/Resistance: A Pivot Point is generally used to formulate expected future support/resistance levels. From the base Pivot

Point, Fibonacci multiples of the high-low differential are added to form resistance levels and subtracted to form support levels.

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Contacts:

Saugata Sarkar Sahbi Kasraoui QNB Financial Services SPC

Head of Research Head of HNI Contact Center: (+974) 4476 6666

Tel: (+974) 4476 6534 Tel: (+974) 4476 6544 PO Box 24025

saugata.sarkar@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa Doha, Qatar

Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of QNB SAQ (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange QNB SAQ 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. QNBFS accepts no liability whatsoever for any direct or indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of the investor and be based on specifically engaged investment 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. 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. For reports dealing with Technical Analysis, expressed opinions and/or recommendations may be different or contrary to the opinions/recommendations of QNBFS Fundamental Research as a result of depending solely on the historical technical data (price and volume). 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. This report may not be reproduced in whole or in part without permission from QNBFS.