GCC Equities - 1Q - 2009

1Q-09 earnings preview

We present the earnings expectations from eleven sell-side research houses in the GCC region. This report analyzes and compares earnings forecasts for 54 companies across the GCC (representing 54% of the aggregate market capitalization of these six countries).

We have provided investors a ‘cheat sheet’ to help understand analysts’ expectations across these companies and provide a fundamental basis to position portfolios for the upcoming results season. The cheat sheet will also facilitate investors in making a quick appraisal of the results as and when they are announced. Each company’s return on equity (ROE-TTM) has been provided and we have used consensus forecasts to compute the price to earnings (P/E) ratio for 2009E. The price to book ratio (P/BV) has been provided based on latest book value available.

These forecasts are based on publicly available sources of data and our own estimates for companies in the region. Note that we do not endorse market forecasts, but present them on a common platform to provide investors the ability to appraise market expectations. This edition of the report was delayed given the lack of a large number of timely quarterly estimates by sell-side research houses in the region.