By Santhosh V. Perumal
Business Reporter

The Qatar Stock Exchange (QSE) was the worst performer among Gulf bourses, losing a huge 541 points in key index and QR28bn in capitalisation during the week.
Substantial selling pressure in the last two days of the week knocked off 4.35% in the 20-stock Qatar Index, despite buying pressure from foreign institutional investors during the week that saw Asia by-far remain the largest trading partner of Qatar in the first quarter of 2015 with the region accounting for 98.5% of the country's total merchandise trade surplus of QR52.8bn.
In comparison, Abu Dhabi fell 2.88%, Dubai (2.87%), Bahrain (0.97%), Kuwait (0.28%) and Saudi Arabia (0.11%); while Muscat was up 0.11% during the week that witnessed Ooredoo, whose brand equity is now valued at $1.7bn (QR6.19bn), aim at capturing a sizeable share in the global converging communications market as a shift to a digital world opened up vast opportunities.
“Despite the strong fundamental of the domestic economy, unfortunately the market is being swayed by negative news emanating from foreign shores,” an analyst, wishing anonymity, said in an apparent reference to the recent FIFA graft probe.
Opening flat, the next two days was rather a period of small losses and gains but strong selling in the last two days settled the index below the 12,000 mark; even as market experts the “knee-jerk” reaction to negative reports from overseas will rather “wither”, considering the long term prospects of the country’s diversification strategy.
The Qatari bourse has so far (year-to-date) reported 3.12% plunge against Bahrain’s 4.22%, Kuwait (3.38%) and Abu Dhabi (0.27%); while Saudi Arabia rose 17.09%, Dubai 6% and Muscat 0.74%.
Domestic institutions were seen frenetically into a selling mode during the week that saw a business optimism index of Qatar Financial Center reveal that Qatar Inc exhibit “cautious optimism” in the second quarter of this year amid weak outlook for Qatar's hydrocarbon and non-carbon sectors.
However, local retail investors extended a bullish fervour to the market during the week that saw Mannai Corporation’s proposed foray into distribution of ductile iron pipes, valves, fittings and municipal castings for the water, sewage, irrigation and industry market through a joint venture.
The index that tracks Shariah-principled stocks was seen melting faster than the other indices in the market during the week that saw Doha Bank breaks new grounds in corporate cash management with ‘Tadbeer’ web-based platform.
The 20-stock Total Return Index plunged 4.35% and All Share Index (comprising wider constituents) by 4.03% and Al Rayan Islamic Index by 4.71% during the week that saw more than 88% of the companies in the red.
Telecom stocks plummeted 9.31%, real estate (7.43%), industrials (4.47%), consumer goods (3.35%), banks and financial services (3.05%) and transport (0.99%); while insurance shot up 2.17% during the week that saw insurance and transport segments witness considerable expansion in volumes.
Of the 43 stocks, only three gained, while 38 declined and two were unchanged during the week that saw trading volume was largely skewed towards real estate and banking shares.
Nine each of the 12 banks and financial services and the nine industrials, seven of the eight consumer goods, four each of the five insurers and the four realty, all of the three transport and all of the two telecom sector equities close lower during the week.
Major losers included QNB, Industries Qatar, Vodafone Qatar, Ooredoo, Ezdan, United Development Company, Mazaya Qatar, Barwa, Aamal Company, Gulf International Services, Mesaieed Petrochemical Holding, Commercial Bank, Doha Bank, QIIB, Masraf Al Rayan, Dlala, Milaha and Nakilat; even as Qatar Islamic Bank and Qatar Insurance bucked the trend during the week.
Market capitalisation eroded 4.26% to QR633.78bn with large, mid, small and micro cap equities melting 3.61%, 2.79%, 2.39% and 1.64% respectively during the week that witnessed Ezdan, Qatar Insurance, Barwa, Doha Bank and Masraf Al Rayan stocks dominate the trading ring in terms of both volume and value.
Small, micro mid cap stocks have gained 8.66%, 6.68% and 2.5% respectively year-to-date; whereas large cap lost 10.52%.
Domestic institutions’ net profit booking strengthened to QR1.26bn compared to QR84.51mn the previous week.
However, foreign institutions’ net buying zoomed to QR1.22bn against QR300.06mn the week ended May 21.
Local retail investors turned net buyers to the tune of QR46.23mn compared with net sellers of QR192.13mn the previous week.
Non-Qatari retail investors were also net buyers to the extent of QR0.5mn against net profit takers of QR23.42mn the week ended May 21.
Total trade volume rose 54% to 151.83mn shares, value by 57% to QR4.97bn and transactions by 6% to 38,040 during the week.
The insurance sector’s trade volume more than tripled to 7.77mn equities and value almost quadrupled to QR744.22mn on 73% jump in deals to 2,041.
The transport sector’s trade volume more than doubled to 1.97mn stocks, value surged 67% to QR75.91mn and transactions by 21% to 1,006.
The banks and financial services sector reported 92% expansion in trade volume to 23.7mn shares, 84% in value to QR1.28bn and 64% in deals to 11,172.
The real estate sector’s trade volume soared 65% to 99mn equities and value by 48% to QR2.09bn, while transactions were down 15% to 12,347.
The market witnessed 26% jump in the industrials sector’s trade volume to 8.61mn stocks and 7% in value to QR490.12mn but on 1% fall in deals to 6,471.
However, the telecom sector’s trade volume plummeted 41% to 4.92mn shares, value by 38% to QR113.77mn and transactions by 22% to 2,112.
There was 22% plunge in the consumer goods sector’s trade volume to 5.87mn equities but on 1% rise in value to QR181.34mn. There was 14% decline in deals to 2,891.
In the debt market, there was no trading of treasury bills and government bonds during the week.

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