An overall bullish overhang led Qatar Stock Exchange (QSE) surpass the 10,900 levels twice during the week to become the third best performer among the Gulf bourses.

Domestic institutions’ robust buying interests powered the QSE main barometer that soared 2.17% during the week which saw QNB report net profit of QR12.6bn for the year ended 2016.

Kuwait had recorded 5.37% gains, Bahrain (2.31%) and Abu Dhabi (0.5%), whereas Dubai fell 0.81%, Saudi Arabia (0.66%) and Muscat (0.49%) during the week which saw Qatar Islamic Bank disclose QR2.15bn net profit in 2016.

QSE’s year-to-date gains were at 4.84% compared to 11.96% in Kuwait, 4.52% in Dubai, 3.48% in Abu Dhabi, 1.58% in Bahrain and 0.84% in Muscat; while Saudi Arabia shank 4.64%.

Buying interests was squarely visible especially in the consumer goods, realty and banking sectors in the QSE during the week which saw Masraf Al Rayan’s 2016 net profit at QR2.08bn.

Islamic stocks were seen outperforming the main index during the week which saw al khaliji post QR427mn net profit in 2016.

Buying pressure was seen predominant in large cap segments during the week which witnessed Qatar Electricity and Water Company (QEWC) and Masdar ink deal to develop solar power projects in Qatar, the UAE and international markets.

Trade turnover and volumes were on the increase during the week which saw real estate, banking, industrials and telecom sectors together account for more than 87% of the volumes.

In volumes, realty constituted 28% of the total, followed by banks and financial services (27%), industrials (20%), telecom (13%), consumer goods (7%), transport (5%) and insurance (1%) during the week which saw Qatar Central Securities Depository allow Islamic Holding Group hold foreign ownership limit up to 49%.

In value, banks and financial services’ share was 36%, followed by industrials (23%), real estate (17%), consumer goods (13%), telecom and transport (5% each), and insurance (2%) during the week which saw transport and consumer goods sectors record fast expansion in volumes and value respectively.

Opening the week strong at 10,742 points, the market then witnessed gains for the next two sessions to take the index to a high of 10,928 points, after there was a mild profit booking. The bullish outlook on the last day again drove the index up, thus overall it closed 232 points higher at 10,941 points, which was about five-month high.

The 20-stock Total Return Index gained 2.17%, All Share Index (comprising wider constituents) by 1.99% and Al Rayan Islamic Index by 2.47% during the week which saw six of the seven sectors exhibit bullish momentum.

Consumer goods sector saw its index surge 4.52%, realty (3.66%), banks and financial services (2.27%), transport (1.49%), industrials (1.17%) and telecom (0.17%); while insurance fell 1.24% during the week which witnessed Ezdan dominate the trading ring in terms of volume and value.

Market capitalisation expanded about QR10bn or 1.67% to QR585.9bn with large, mid, small and microcap equities gaining 2.08%, 1.48%, 1.21% and 0.46% respectively during the week which saw A M Best, a global insurance credit rating agency, view that the Gulf insurers are facing pressure to increase retention levels for high-rise buildings with reinsurers tightening terms and conditions in view of large number of fire incidents.

Large, micro, mid and small have reported year-to-date gains of 4.78%, 3.3%, 2.74% and 2.27% respectively.

Of the 44 stocks, as many as 28 rose, while 15 gained and one was unchanged during the week which saw global credit rating agency Moody’s view that the Gulf economies will continue to face headwinds from subdued growth and stronger inflationary pressures are likely this year on higher prices for fuel as well as increased excise duties on tobacco products and sugary drinks.

Eight of the nine consumer goods, seven of the 13 banks and financial services, three each of the eight industrials, the five insurers and the four real estate, and two each of the three transport and the two telecom stocks closed higher during the week which saw Arab Petroleum Investments Corporation say that international oil companies, which continue to play an important role in the Middle East, are “revisiting” their strategy towards the region owing to multitude of factors.

About 64% of the stocks extended gains with major gainers being QNB, Masraf Al Rayan, Woqod, Doha Bank, Mannai Corporation, Aamal Company, QIIB, Barwa, Ezdan, Nakilat, Gulf Warehousing, QEWC and Medicare Group during the week.

Nevertheless, Qatar Insurance, Qatar General and Reinsurance, Alijarah Holding, Dlala, Qatar First Bank, al khaliji, Commercial Bank, Gulf International Services, Mesaieed Petrochemical Holding, and Mazaya Qatar saw their stocks lose sheen during the week.

Domestic institutions’ net buying increased substantially to QR144.42mn compared to QR40.55mn the previous week.

However, foreign institutions’ net buying weakened substantially to QR60.15mn against QR135.1mn the week ended January 12.

Local retail investors’ net selling strengthened perceptibly to QR191.86mn compared to QR169.41mn the previous week.

Non-Qatari individual investors’ net profit booking also increased to QR12.7mn against QR6.24mn the week ended January 12.

Total trade volume rose 32% to 49.32mn shares, value by 50% to QR1.61bn and transactions by 18% to 19,553 during the week.

The transport sector’s trade volume more than tripled to 2.66mn equities and value more than doubled to QR77.55mn on more than doubled deals to 1,279.

The consumer goods sector’s trade volume more than doubled to 3.21mn stocks and value almost doubled to QR207.15mn on 56% increase in transactions to 2,644.

There was 86% surge in the industrials sector’s trade volume to 9.78mn shares and 35% in value to QR361.89mn but on 22% decline in deals to 3,839.

The realty sector’s trade volume soared 34% to 13.74mn equities, value by 34% to QR280.1mn and transactions by 30% to 3,430.

The banks and financial services sector saw 15% expansion in trade volume to 13.18mn stocks, 76% in value to QR577.31mn and 34% in deals to 6,614.

However, the market witnessed 41% plunge in the insurance sector’s trade volume to 0.41mn shares, 44% in value to QR26.04mn and 31% in transactions to 418.

The telecom sector’s trade volume declined 13% to 6.34mn equities and value by 15% to QR78.17mn, while deals gained 16% to 1,329.

In the debt market, there was no trading of treasury bills and government bonds during the week.

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