By Santhosh V Perumal/Business Reporter
Weak energy markets had a lingering effect on the Qatar Stock Exchange, which witnessed a whopping 623 points knock-off in its main index and QR60bn in capitalisation erosion during the week.
The local bourse could not cash in on the oil price rebound and the subsequent gains on the last day of the week as Thursday being a holiday in view of the country’s national day.
The 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 has had its spell in the global oil market for quite some time.
More than 95% of the stocks were in the red during the week that saw Qatar marginally revise down its 2015 economic growth projection but said non-hydrocarbons to propel the engine.
An across the board selling — especially in the real estate, consumer goods, insurance, industrials, transport and telecom stocks — led 5.28% plunge in the Qatari bourse during the week that witnessed Qatar caution that the weakening oil prices could represent a key downside risks to the economic outlook, should it prolong.
In comparison, Dubai fell 4.68%, Kuwait (3.62%), Muscat (2.12%), Saudi Arabia (0.87%), Abu Dhabi (0.07%) and Bahrain (0.05%) during the week that witnessed Ezdan shareholders give approval for a higher up to 49% foreign ownership.
The Qatar bourse’s year-to-date gains have narrowed down to 7.73% against Bahrain’s 11.3%, Abu Dhabi’s 1.75% and Dubai’s 1.69%; whereas Kuwait shrank 17.48%, Muscat (16.82%) and Saudi Arabia (2.52%).
Micro and mid cap stocks faced the maximum selling pressure during the week that saw both foreign retail investors and institutions book profits.
Realty stocks plummeted 13.02%, consumer goods (8.67%), industrials (7.33%), transport (6.86%), telecom (6.78%), insurance (3.65%) and banks and financial services (1.63%) during the week that witnessed Gulf Warehousing Company (GWC) bag the right to develop Bu-Sulba Logistics Hub for small and medium enterprises in Qatar.
The index that tracks Shariah-principled stocks was seen melting much faster than the other indices during the week that saw real estate, banks, telecom and industrials, which together account for more than 81% of the total trade volume.
The 20-stock Total Return Index plunged 5.28%, All Share Index (comprising wider constituents) by 5.72% and Al Rayan Islamic Index by 9.43% during the week that saw Barwa Real Estate Company get a contract to build low cost warehousing.
Of the 43 stocks, only two gained, while 41 declined during the week. 10 of the 12 banks and financial services; eight of the nine industrials; all of the nine industrials, the five insurers, the four real estate, the three transport and the two telecom stock closed lower.
As many as 17 of the stocks saw double-digit dip with major losers being Islamic Holding Group, Dlala, Aamal Company, GWC, Mesaieed Petrochemical Holding, United Development Company, Barwa, Ezdan, Mazaya Qatar, Vodafone Qatar, Industries Qatar, Commercial Bank, Doha Bank, Qatar Islamic Bank, Alijarah Holding, Salam International Investment and Widam Food. However, QNB was seen bucking the trend.
Market capitalisation eroded 8.81% to QR618.6bn during the week. Micro, mid, small and large cap equities melted 12.86%, 8.37%, 3.34% and 2.08% respectively.
Micro, small, large and mid cap equities are, however, up 14.33%, 10.12%, 10.03% and 5.71% respectively year-to-date.
Foreign institutions’ net selling rose to QR218.98mn against QR213.39mn the previous week.
Non-Qatari individual investors turned net profit takers to the tune of QR86.67mn compared with net buyers of QR14.13mn the week ended December 11.
Domestic institutions’ net buying soared to QR142.21mn against QR67.54mn the previous week.
Local retail investors’ net buying rose to QR163.44mn compared to QR131.72mn the week ended December 11.
A total of 82.1mn shares valued at QR3.54bn changed hands across 36,876 transactions.
The real estate sector saw a total of 24.99mn equities worth QR561.81mn change hands across 7,482 deals.
The banks and financial sector witnessed as many as 20.1mn stocks worth QR1.25bn trade in 10,136 transactions.
The telecom sector saw 10.89mn shares valued at QR244.74mn trade in 4,459 deals.
The industrial sector saw as many as 10.67mn equities valued at QR800.84mn change hands across 8,163 transactions.
The market saw a total of 8.56mn consumer goods stocks worth QR408.42mn trade across 3,851 deals.
The transport segment recorded 6.3mn shares worth QR243.09mn change hands across 2,306 transactions.
The insurance saw a total of 0.59mn shares worth QR33.5mn trade across 479 deals.
In the debt market, there was no trading of treasury bills and government bonds during the week.
