Qatar Stock Exchange (QSE) witnessed gainers outnumber decliners but overall its key index settled in the negative this week.
Substantially reduced buying interests of foreign institutions led the 20-stock Qatar Index decline 0.52% this week, which saw Capital Intelligence, a global credit rating agency, place Commercial Bank's long term foreign currency rating and financial strength rating at 'A-' and 'BBB' respectively with “stable” outlook.
Selling pressure was seen more within telecom, banking, transport and consumer goods in the local bourse, whose year-to-date losses were at 0.93%.
Large and small cap equities were the hardest hit this week which witnessed a PricewaterhouseCoopers study that said the GCC (Gulf Cooperation Council) initial public offerings remained lackluster in the fourth quarter (Q4) of 2016 but the sovereign debts stole the limelight.
Islamic stocks were nonetheless seen declining slower than the main index as well as other indices this week which saw oil production cut deal, which became effective from January 1, help Qatar register 74% year-on-year in trade surplus to QR12.32bn in February with its crude and gas exports' value soaring high in double-digits.
However, net selling by domestic institutions and local retail investors weakened considerably and there was increased buying support from non-Qatari individual investors this week which saw Qatar’s consumer price index inflation rise 2% year-on-year in Q4 2016, mainly on higher expenses towards transport, recreation, education, furnishing and housing and utilities.
Overall trade turnover declined amidst higher volumes this week which saw banking, telecom and real estate sectors together account for more than 87% of the volumes.
In volumes, banks and financial services constituted 33% of the total, telecom (32%), realty (22%), industrials (6%), transport (4%), consumer goods (2%) and insurance (1%) this week which saw the QSE’s 20-stock barometer to undergo periodic revision from next week with Medicare Group replacing Mazaya Qatar.
In value, banks and financial services’ share was 46%, real estate (16%), telecom (15%), industrials (11%), transport and consumer goods (5% each), and insurance (2%) this week which saw Qatar First Bank to find its place within Al Rayan Islamic and All Share indices from April 1.
Opening the week weak at 10,413 points, the market then gained for the next two days to reach a high of 10,462 points but could not sustain the rally thereafter as profit booking gripped it, which resulted in the benchmark settle 55 points lower overall this week which saw faster shrinkage in foreign securities’ portfolio led Qatar Central Bank's net international reserves decline more than 7% year-on-year in January 2017.
The 20-stock Total Return Index shrank 0.52%, All Share Index All Share Index (comprising wider constituents) by 0.51% and Al Rayan Islamic Index by 0.42% this week which saw no trading in treasury bills and government bonds.
The telecom index plunged 3.8%, banks and financial services (0.97%), transport (0.85%), consumer goods (0.81%) and industrials (0.36%); whereas realty and insurance gained 1.4% and 0.07% respectively this week which saw Vodafone Qatar, Alijarah Holding and Masraf Al Rayan dominate the trading ring in volumes and value.
Market capitalisation eroded 0.57% or more than QR3bn to QR556.35bn as large, small and midcap equities melted 0.93%, 0.71% and 0.19% respectively, while microcaps rose 1.23% this week.
Mid and large cap scrips have reported year-to-date losses of 6.46% and 0.99%; while small and microcaps registered 2.02% and 1.52% gains respectively.
Among the major losers were Ooredoo, Qatar Islamic Insurance, Medicare Group, Masraf Al Rayan, Ahli Bank, QNB, Doha Insurance, Nakilat, Industries Qatar, Aamal Company, Qatar National Cement and Qatari Investors Group this week.
Nevertheless, more than 52% of the stocks extended gains with major movers being Vodafone Qatar, Al Khaleej Takaful, Mazaya Qatar, Widam Food, Alijarah Holding, Qatari German Company for Medical Devices, Qatar Electricity and Water, Gulf International Services, Mesaieed Petrochemical Holding, Barwa, Ezdan and United Development Company this week.
Foreign institutions’ net buying declined substantially to QR98.06mn compared to QR501.31mn the week ended March 23.
However, domestic institutions’ net profit booking weakened considerably to QR43.22mn against QR414.95mn the previous week.
Local retail investors’ net selling declined perceptibly to QR67.26mn compared to QR89.07mn the week ended March 23.
Non-Qatari individual investors’ net buying increased noticeably to QR12.41mn against QR2.72mn the previous week.
Total trade volume rose 17% to 59.18mn shares, while value fell 13% to QR1.57bn but on 5% jump in transactions to 20,291 this week.
The telecom sector’s trade volume more than doubled to 18.98mn equities, value soared 55% to QR232.62mn and deals by 77% to 3,419.
There was 29% surge in the consumer goods sector’s trade volume to 1.21mn stocks and 2% in value to QR77.64mn but on 9% decline in transactions to 1,353.
The real estate sector’s trade volume shot up 14% to 13.11mn shares, whereas value shrank 3% to QR253.28mn and deals by 2% to 3,372.
However, the industrials sector reported 19% plunge in trade volume to 3.26mn equities, 31% in value to QR172.01mn and 19% in transactions to 2,945.
The transport sector’s trade volume plummeted 12% to 2.32mn stocks, value by 30% to QR76.72mn and deals by 17% to 1,258.
The banks and financial services sector saw 9% shrinkage in trade volume to 19.5mn shares and 21% in value to QR723.96mn but on 7% spurt in transactions to 7,987.
The insurance sector’s trade volume declined 2% to 0.8mn equities and value by 27% to QR35.25mn, while deals were up 19% to 587.Last updated: March 31 2017 09:07 PM
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