FTSE Russell’s doubling of investible weights of 20 stocks from March 20 had a profound effect in lifting the trade volumes and turnover in the Qatar Stock Exchange, which however closed in the negative trajectory this week.
Higher selling pressure within real estate and banking led the 20-stock Qatar Index shed 1.01% this week, which saw Qatar Central Bank hike interest rate by 0.25%, following the US Federal Reserve’s 25 basis points increase.
Islamic stocks however reported gains vis-à-vis decline in the other indices this week which saw Qatar Financial Center aims to constitute least 5% market capitalisation of the QSE through the listing of its registered firms.
A substantially higher net selling by domestic institutions and local retail investors were instrumental in the overall bearish sentiments in the QSE this week which saw Milaha’s multi-year strategy focusing on investment in new markets, especially South East Asian, and foray into truck trading, to achieve medium and long-term growth.
Nevertheless, foreign institutions turned extremely bullish this week which saw Nakilat’s multi-pronged strategy to further expand into global markets to make it a comprehensive maritime service provider than mere a liquefied natural gas carrier.
Overall trade turnover and volumes more than doubled this week which saw banking, real estate and telecom sectors together account for more than 73% of the volumes.
In volumes, banks and financial services constituted 37% of the total, realty (21%), telecom (15%), industrials (13%), transport (8%), and consumer goods and insurance (3% each) this week which saw Medicare Group to replace Mazaya Qatar in the main index and Qatar First Bank (QFB) join Al Rayan Islamic Index and Al Share Index from April 1.
In value, banks and financial services’ share was 44%, industrials (19%), real estate (11%), telecom (9%), consumer goods (7%), transport (6%) and insurance (5%) this week which witnessed Qatar's cost of living, based on consumer price index, rise by a marginal 0.1% month-on-month February 2017.
Opening the week strong at 10,491 points, the market was then on steady decline for the next three days to reach a low of 10,292 points, mainly on stock specific factors. The last day, which witnessed FTSE moves and US Fed decision, saw improved liquidity and buying interests but overall the 20-stock Qatar Index settled 106 points lower this week.
The 20-stock Total Return Index shed 0.59% and All Share Index (comprising wider constituents) by 0.73%, while Al Rayan Islamic Index was up 0.17% this week which saw no trading in treasury bills and government bonds.
The realty index tanked 1.18%, banks and financial services (0.96%), transport (0.89%), industrials (0.87%) and insurance (0.2%), whereas telecom and consumer goods gained 0.81% and 0.79% respectively this week which saw Moody’s, a global credit rating agency, view that Qatari and Omani lenders to benefit the most from easing funding pressures on stabilising oil prices, large international sovereign debt issuances and lower credit growth.
Market capitalisation eroded 1.31% or more than QR7bn to QR556.14bn this week which saw QSE and Kenyan bourse enter into a memorandum of understanding.
About 66% of the stocks were in the red with major losers being QNB, Doha Bank, Ahli Bank, al khaliji, QFB, Industries Qatar, Mesaieed Petrochemical Holding, Aamal Company, Qatar Insurance, Al Khaleej Takaful, United Development Company, Mazaya Qatar, Barwa, Milaha, Nakilat, Alijarah Holding and Qatari German Company for Medical Devices this week.
Nevertheless, among the gainers were Masraf Al Rayan, Medicare Group, Qatari Investors Group, Gulf International Services, Qatar Islamic Insurance, Vodafone Qatar and Ooredoo this week.
Domestic institutions’ net profit booking strengthened considerably to QR676.21mn against QR25.91mn the week ended March 9.
Local retail investors’ net selling increased substantially to QR195.04mn compared to QR5.33mn the previous week.
However, foreign institutions turned net buyers to the tune of QR871.25mn against net sellers of QR23.15mn the week ended March 9.
Total trade volume more than doubled to 102.53mn shares and value also more than doubled to QR4.28bn on 52% increase in transactions to 31,697 this week.
The transport sector’s trade volume more than tripled to 7.74mn equities and value also more than tripled to QR263.16mn on 25% jump in deals to 1,827.
The industrials sector’s trade volume more than doubled to 13.15mn stocks and value more than tripled to QR800.79mn on 58% increase in transactions to 5,949.
The banks and financial services sector’s trade volume more than doubled to 38.32mn shares and value also more than doubled to QR1.87bn on 57% expansion in deals to 11,923.
The telecom sector’s trade volume more than doubled to 15.59mn equities and value more than tripled to QR368.59mn on more than doubled transactions to 2,646.
There was 82% surge in the real estate sector’s trade volume to 21.42mn stocks, 70% in value to QR474.92mn and 57% in deals to 4,739.
The insurance sector’s trade volume gained 7% to 3.06mn shares and value by 62% to QR217.85mn on more than doubled transactions to 1,080.
The market witnessed 7% rise in the consumer goods sector’s trade volume to 3.25mn equities, 14% in value to QR278.06mn and 5% in deals to 3,533.
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