The Qatar Stock Exchange (QSE) index gained by 198.82 points, or 2.05%, during the week to close at 9,913.75. Market capitalisation increased by 1.72% to QR533.9bn versus QR524.9bn at the end of the previous week. Of the 44 listed companies, 28 ended the week higher, while 14 fell and two remained unchanged. Al Meera Consumer Goods Co (MERS) was the best performing stock for the week with a gain of 6.0% on 330,829 shares traded, while Qatar Cinema & Film Distribution Co (QCFS) was the worst performing with a decline of 10.3% on 8,966 shares traded.
Industries Qatar (IQCD), Ezdan Holding Group (ERES) and Qatar Insurance Co (QATI) were the primary contributors to the weekly index gain. IQCD was the biggest contributor to the increase, adding 41.1 points to the index. ERES was the second biggest contributor, adding 26.3 points. Moreover, QATI contributed 26.1 points to the index. On the other hand, Aamal Co (AHCS) deleted 1.5 points from the index.
Trading value during the week increased by 86.9% to reach QR1.5bn versus QR801.4mn in the prior week. The banks and financial services sector led the trading value during the week, accounting for 33.0% of the total trading value. The telecoms sector was the second biggest contributor to the overall trading value, accounting for 25.2% of the total. Vodafone Qatar (VFQS) was the top value traded stock during the week with total traded value of QR329.4mn.
Trading volume increased by 163.5% to reach 65.4mn shares versus 24.8mn in the prior week. The number of transactions increased by 26.4% to reach 16,608 versus 13,136 in the prior week. The telecoms sector led the trading volume, accounting for 57.5%, followed by the banks and financial services sector, which accounted for 18.7% of the overall trading volume. VFQS was the top volume traded stock during the week with total traded volume of 37.1mn shares.
Foreign institutions remained bullish during the week with net buying of QR3.9mn versus net buying of QR17.6mn in the prior week. Qatari institutions turned bearish with net selling of QR2.5mn versus net buying of QR85.8mn the week before. Foreign retail investors remained bullish for the week with net buying of QR21.1mn versus net buying of QR15.2mn in the prior week. Qatari retail investors remained bearish with net selling of QR22.6mn versus net selling of QR119.4mn the week before.
In 2016 year-to-date, foreign institutions bought (on a net basis) $1.7bn worth of Qatari equities.
The index gained 2.05% and closed 9,913.75. We mentioned last week that even though the index broke below our support level of 9,750, it could wobble around that level, and it did. The current uptick last week could prove positive for the next couple of weeks, given that the benchmark stays above our current updated support level of 9,750; resistance remains at the 11,500 level.
Candlestick chart – A candlestick chart is a price chart that displays the high, low, open, and close for a security. The ‘body’ of the chart is portion between the open and close price, while the high and low intraday movements form the ‘shadow’. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis.
Doji candlestick pattern – A Doji candlestick is formed when a security’s open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal.
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