By Santhosh V. Perumal/Business Reporter
Domestic institutions instilled confidence in the Qatar Stock Exchange (QSE), which gained more than 190 points during the week, making it the best performer in the Gulf region, amid overseas news reports on “uncertainties” regarding Qatar’s 2022 FIFA World Cup.
More than 65% of the stocks extended gains to investors and more than QR11bn in capitalisation was added during the week that saw QSE chief executive Rashid bin Ali al-Mansoori’s clarion call for small and medium enterprises in the wider Gulf Cooperation Council and Middle East and North Africa to seek listing in Qatar’s bourse.
Notwithstanding the strong selling pressure of foreign institutions and local retail investors, the 20-stock Qatar Index surged 1.6% during the week that witnessed global credit rating agency Moody's upgrade the insurance financial strength rating of Qatar Islamic Insurance Company to ‘Baa1’ from ‘Baa2’ with a “stable” outlook.
In comparison, Abu Dhabi rose 1.56%, Muscat (1.12%), Dubai (0.79%), Kuwait (0.14%) and Bahrain (0.05%); while Saudi Arabia fell 0.91% during the week that saw Gulf Drilling International, a subsidiary of Gulf International Services (GIS), expressing confidence in countering the “negative” effects as the present day rates 10% to 15% lower than the previous levels.
“The market has discounted the negative news relating to FIFA,” an analyst, wishing anonymity, said in an apparent reference to the resignation of FIFA president Sepp Blatter in the wake of corruption scandal that rocked Zurich-based global football governing body.
“The recent events at FIFA will not impact on our preparations for the 2022 FIFA World Cup,” the Supreme Committee for Delivery & Legacy said. Moreover, Foreign Minister HE Dr Khalid bin Mohamed al-Attiyah blamed “prejudice” for criticism of 2022 bid and said “No way Qatar can be stripped” (of the right to host the World Cup).
The market opened the week on a stronger note and kept gaining for the second day. On the third day, accretion was rather slow but overall index had reached a high of 12,185 points. Thereafter, profit booking pressures gripped the market and thus the index settled at 12,092 points.
Qatari bourse has so far (year-to-date) reported 1.58% fall against Bahrain’s and Kuwait’s decline of 4.17% and 3.24% respectively; while Saudi Arabia rose 16.02%, Dubai (6.84%), Muscat (1.87%) and Abu Dhabi (1.29%).
Non-Qatari individual investors were also in a selling mode during the week that saw a Boston Consulting Group report, which said Qatar outperformed the GCC and the rest of the world with its “highly impressive” progress in governance, thus translating as high well-being scores.
Large and small cap equities were seen high in demand during the week that witnessed Vodafone Qatar narrow its net loss by 12% to QR216mn for the year ended March 31, 2015 on the back of double-digit increase in revenues from higher customer base.
The index that tracks Shariah-principled stocks was seen gaining much faster than the other indices in the market during the week.
The 20-stock Total Return Index surged 1.6%, All Share Index (comprising wider constituents) by 1.44% and Al Rayan Islamic Index by 2.18% during the week that saw almost halving of overall trade volumes.
Telecom stocks appreciated 4.37%, industrials (3.58%), banks and financial services (2.14%), consumer goods (1.97%) and transport (1.91%); whereas real estate and insurance tanked 2.96% and 2.3% respectively during the week that witnessed transport sector more than double its volume.
Of the 43 stocks, 28 gained, while only 14 declined and one was unchanged during the week that saw realty, banking and telecom together constitute more than 78% of the overall trade volumes.
Nine of the 12 banks and financial services, six of the nine industrials, four of the eight consumer goods and two each of the five insurers, the four real estate, three transport and the two telecom sector equities close higher during the week.
Major gainers included QNB, Industries Qatar, Vodafone Qatar, Ooredoo, Qatari Investors Group, Qatar Electricity and Water, Aamal Company, GIS, Commercial Bank, Doha Bank, QIIB, al khaliji, Dlala, Al Meera, Barwa, Milaha, Gulf Warehousing and Nakilat during the week.
However, Ezdan, Mazaya Qatar, Mesaieed Petrochemical Holding, Islamic Holding Group and Qatar Insurance were seen bucking the trend during the week.
Market capitalisation expanded 1.75% to QR644.87bn with large, small, mid and micro cap equities gaining 2.89%, 2.71%, 0.73% and 0.61% respectively during the week that witnessed Ezdan, Barwa and Qatar Insurance stocks dominate the trading ring in terms of both volume and value.
Small, micro mid cap stocks have gained 11.61%, 7.51% and 3.25% respectively year-to-date; whereas large cap lost 7.93%.
Domestic institutions turned net buyers to the tune of QR357.61mn compared with net sellers of QR1.26bn the previous week.
However, foreign institutions turned net sellers to the extent of QR186.09mn against net buyers of QR1.22bn the week ended May 28.
Local retail investors were also net profit takers to the tune of QR133.99mn compared with net buyers of QR46.23mn the previous week.
Non-Qatari retail investors turned net sellers to the extent of QR37.53mn against net buyers of QR0.5mn the week ended May 28.
Total trade volume fell 49% to 77.66mn shares, value by 38% to QR3.1bn and transactions by 14% to 32,819 during the week.
The market witnessed 81% plunge in the insurance sector’s trade volume to 1.48mn equities, 81% in value to QR140.15mn and 55% in deals to 923.
The real estate sector’s trade volume plummeted 65% to 35.01mn stocks, value by 56% to QR918.99mn and transactions by 35% to 7,973.
The banks and financial services sector reported 35% shrinkage in trade volume to 14.99mn shares, 25% in value to QR954.91mn and 31% in deals to 7,752.
The consumer goods sector’s trade volume tanked 37% to 3.68mn equities, value by 5% to QR172.9mn and transactions by 22% to 2,253.
There was 32% decline in the transport sector’s trade volume to 1.34mn stocks, 18% in value to QR62.22mn and 8% in deals to 929.
However, the telecom sector’s trade volume more than doubled to 10.33mn shares and value also more than doubled to QR250.55mn on more than doubled transactions to 5,660.
The industrials sector witnessed 26% surge in trade volume to 10.83mn equities, 23% in value to QR601.84mn and 13% in deals to 7,329.
In the debt market, a total of 15,000 treasury bills valued at QR149.35mn changed hands across one transaction; while there was no trading of government bonds during the week.
