By Santhosh V. Perumal/Business Reporter
Qatar Stock Exchange witnessed severe profit booking, especially by foreign institutions, resulting in a huge 942 points run off in the sensitive index and QR45bn in capitalisation during the week.
The Organisation for Petroleum Exporting Countries’ (OPEC) cut its demand forecast for 2015, leading to further weakening of oil prices -- the mainstay of Gulf economies – rather played spoilsport in the regional bourses during the week.
The gloomy environment across the Gulf markets came about as a result of Opec’s decision to trim 2015 demand forecast due to weaker outlook for Europe and Asia as well as higher supply from the US shale and other non-Opec sources.
More than 95% of the stocks were in the red during the week that saw global lender Standard Chartered Bank say that Qatar’s key liquefied natural gas sector is likely to see less volatility in 2015 than the oil sector, as most of the country’s liquefied natural gas is sold on long-term contracts.
An across the board selling – especially in the real estate, consumer goods, insurance and industrials stocks – led to 7.4% plunge in the Qatari bourse during the week that witnessed al khaliji decide to finance a joint venture between Boom Construction and C A T International Qatar for the development of transmission pipelines for mega reservoirs project around Doha.
In comparison, Dubai plummeted 13.81%, Muscat (11.7%), Abu Dhabi (7.1%), Saudi Arabia (6.29%), Kuwait (4.61%) and Bahrain (2.13%) during the week.
The Qatar bourse’s year-to-date gains have narrowed down to 13.74% against Bahrain’s 11.35%, Dubai’s 6.68% and Abu Dhabi 1.82%; whereas Muscat reported huge 15.03% shrinkage, Kuwait 14.38% and Saudi Arabia (1.66%).
Small and micro cap stocks faced the maximum selling pressure during the week that saw domestic institutions turn bullish.
Realty stocks tanked 10.41%, consumer goods (8.91%), insurance (8.2%), industrials (8.03%), transport (6.15%), banks and financial services (5.23%) and telecom (4.58%) during the week that saw Business Optimism Index say that Qatar's economic outlook remains "overwhelmingly" positive in the fourth quarter mainly on the back of its construction sector, driven by several new projects and tenders, as well as strong prospects for the small and medium enterprises.
The index that tracks Shariah-principled stocks was seen melting faster than the other indices during the week that saw banks, real estate and industrials, which together account for about 71% of the total trade volume.
The 20-stock Total Return Index plunged 7.4%, All Share Index (comprising wider constituents) by 7.06% and Al Rayan Islamic Index by 8.24% during the week.
Of the 43 stocks, as many as 40 of them declined; while only one advanced and two were unchanged during the week. 11 of the 12 banks and financial services; eight of the nine industrials; seven of the eight consumer goods; and all of the five insurers, the four real estate, the three transport and the two telecom stock close lower.
Major losers included QNB, Industries Qatar, Gulf International Services, Ooredoo, Ezdan, Qatar Islamic Bank, Commercial Bank, Doha Bank, Masraf Al Rayan, Mazaya Qatar, Milaha, Nakilat and Gulf Warehousing.
However, Islamic Holding Group, al khaliji and Mannai Corporation was seen bucking the trend.
Market capitalisation eroded 6.41% to QR652.25bn during the week. Small, micro, mid and large cap equities melted 9.45%, 8.23%, 6.88% and 5.66% respectively.
Micro, mid, small and large cap equities are, however, up 31.21%, 15.36%, 13.92% and 12.37% respectively year-to-date.
Foreign institutions turned net profit takers to the tune of QR213.39mn against net buyers of QR77.71mn the previous week.
However, domestic institutions turned net buyers to the extent of QR67.54mn compared with net sellers of QR185.21mn the week ended December 4.
Local retail investors’ net buying rose to QR131.72mn against QR100.41mn the previous week.
Non-Qatari individual investors’ net buying fell to QR14.13mn compared to QR27.68mn the week ended December 4.
A total of 44.82mn shares valued at QR2.39bn changed hands across 28,038 transactions.
The real estate sector saw a total of 14.05mn equities worth QR340mn change hands across 5,769 deals.
The banks and financial sector witnessed as many as 11.08mn stocks worth QR964.43mn trade in 8,251 transactions.
The telecom sector saw 5.76mn shares valued at QR130.84mn trade in 1,813 deals.
The industrial sector saw as many as 6.5mn equities valued at QR556.44mn change hands across 7,121 transactions.
The market saw a total of 3.18mn consumer goods stocks worth QR195.16mn trade across 2,432 deals.
The transport segment recorded 3.4mn shares worth QR159.23mn change hands across 1,814 transactions.
The insurance saw a total of 0.86mn shares worth QR48.86mn trade across 838 deals.
In the debt market, there was no trading of treasury bills but a total of 58,500 government bonds worth QR597.37mn changed hands in three transactions during the week.
