Strong buying — especially in transport, real estate and banking equities — lifted the 20-stock Qatar Index by 1.34% to 12,939.8 points yesterday.
Qatar Stock Exchange (QSE) yesterday hit an all-time high to inch near the 13,000 levels on multi-fold positive factors and its capitalisation added about QR18bn with foreign retail investors and institutions extending robust buying support.
Strong buying — especially in transport, real estate and banking equities — lifted the 20-stock Qatar Index (based on price data) by 1.34% to 12,939.8 points, amid dip in volumes. The previous high close was in September 2005.
“We are delighted to see the market break new highs — it’s testament to the strength and organisation of the listed companies, and of all stakeholders involved in developing the market here in Qatar,” QSE CEO Rashid bin Ali al-Mansoori said in a rare comment on the day-to-day performance.
Finding huge amount of positive sentiment surrounding the market and doubled volumes, he said: “we hope it is set to be a bumper year for the equity market.”
A 12-month streak has seen the blue chip index return 53.27 %, whilst it has trebled in value since the lows in March 2009.
The index that tracks Shariah-principled stocks was, however, seen gaining slower than the other indices in the bourse, which is up 24.67% year-to-date, making it the second best performer globally.
“Positive earnings results, the MSCI reclassification, market reforms and the launch of new products underpin the incredible stock market performance in the last 12 months,” al-Mansoori said.
Analysts said a breakthrough in the talks among Qatar, Saudi Arabia, the UAE and Bahrain to break the political impasse also had a positive effect to the rally.
Trading volumes was mainly skewed towards banking, real estate, transport, telecom and consumer goods equities.
The 20-stock Total Return Index gained 1.34% to 19,296.03 points, All Share Index (with wider constituents) by 1.17% to 3,327.98 and Al Rayan Islamic Index by 1.16% to 4,292.34 points. All the three indices factored in dividend income as well.
Transport stocks appreciated 5.04%, realty (2.39%), banks and financial services (1.44%), telecom (1.1%), industrials (0.16%) and insurance (0.05%); while consumer goods fell 0.52%.
More than 78% of the stocks returned gains with major movers being QNB, Industries Qatar, Nakilat, Ezdan, Barwa, United Development Company, Qatar Islamic Bank, Doha Bank, al khaliji, Vodafone Qatar, Milaha, Mesaieed Petrochemical Holding, Doha Insurance and Qatar Islamic Insurance.
However, Commercial Bank and Gulf International Services (GIS) were seen to buck the trend.
Over half of QSE listed companies have returned beyond 20% this year, with seven companies reporting share price gains of 50% to 150%. Top performers this year include Ezdan, Mazaya Qatar, GIS, Vodafone Qatar and Masraf Al Rayan.
Market capitalisation expanded 2.39% to QR770.27bn. Mid, small, micro and large cap equities were seen gaining 2.73%, 1.74%, 1.42% and 0.97% respectively.
Foreign institutions’ net buying surged to QR90.29mn compared to QR39.18mn the previous day.
Non-Qatari individual investors turned net buyers to the extent of QR28.78mn against QR38.15mn on Monday.
However, Qatari retail investors turned net sellers to the tune of QR36.87mn compared with net buyers of QR27.49mn on Monday.
Domestic institutions’ net profit booking strengthened to QR82.01mn against QR28.52mn the previous day.
Total trading volume was down 3% to 56.89mn stocks, while value rose 9% to QR1.88bn and transactions by 1% to 18,755.
The transport sector’s trading volume more than quadrupled to 8.86mn equities and value also more than quadrupled to QR225.26mn on almost tripled deals to 2,002.
The market witnessed 87% surge in the insurance sector’s trading volume to 1.12mn shares, more than doubled value to QR58.3mn and 98% in transactions to 737.
The banks and financial services sector reported 32% expansion in trading volume to 13.76mn stocks, 43% in value to QR564.04mn and 12% in deals to 4,863.
The consumer goods sector’s trading volume was up 1% to 7.48mn equities and value by 12% to QR211.3mn, while transactions were down 1% to 2,293.
However, the real estate sector’s trading volume plummeted 44% to 12.01mn shares, value by 35% to QR385.04mn and deals by 43% to 2,775.
There was a 23% plunge in the telecom sector’s trading volume to 7.84mn stocks, 11% in value to QR160.45mn and 2% in transactions to 1,808.
The industrials sector’s trading volume shrank 4% to 5.84mn equities but value gained less than 1% to QR294.67mn and deals by 3% to 4,277.
In the debt market, there was no trading of treasury bills and government bonds.