The Qatar Stock Exchange (QSE) appears to have discounted apprehensions over the diplomatic stir as it displayed resiliency to overall remain strong this week.
Insurance, realty, transport and consumer goods counters witnessed higher-than-average demand, which led the QSE report 0.22% gains this week which saw the US-based Institute of International Finance (IIF) view that Qatar's banking industry is well positioned amid diplomatic stir owing to "limited" credit exposure elsewhere in the Gulf Cooperation Council.
Muscat and Saudi Arabian bourses were on the decline; while Dubai, Abu Dhabi, Kuwait and Bahrain rose this week which saw Qatar Insurance Company (QIC), whose 70% of business comes from international franchise, consider 1:10 stock split, a move that ought to encourage more retail investors and enhance the liquidity.
On a year-to-date (YTD) basis, just like the QSE, Muscat, Saudi Arabia, Dubai and Abu Dhabi were in losses.
Three of the five-day session witnessed sustained buying interests this week which saw more than 60% of the traded stocks on the QSE extend gains.
There was considerably weakened net selling pressure from foreign institutions and individuals on the QSE this week which witnessed QNB, the country’s largest lender, report that no big deposit outflows since the diplomatic stir started.
Buying was skewed towards small, micro and midcap equities this week which saw an international insurance rating agency A M Best highlight that Qatar's risk cover sector is likely to have only "negligible" impact from the ongoing diplomatic stir because of their "limited" overseas exposure.
Islamic stocks were seen gaining faster than the main index this week which witnessed Qatar Central Bank hike deposit rate by 0.25% to 1.5%, following a 25 basis points increase in the US interest rates.
However, local retail investors turned net sellers and domestic institutions were increasingly net profit takers this week which saw lower expenses towards food, clothing and recreation led Qatar's cost of living, based on consumer price index, fall 0.6% month-on-month this May.
Overall, trade turnover and volumes were on the decline this week, which saw banking, telecom and real estate sectors accounted for more than 88% of the volumes.
The banks and financial services sector accounted for 38% of the total volume, telecom (34%), realty (16%), transport (5%), industrials (4%), consumer goods (3%) and insurance (1%) this week which saw Vodafone Qatar and Masraf Al Rayan dominate the trading ring in volume and value.
The banks and financial services’ share in total trade turnover was 46%, telecom (16%), real estate (11%), consumer goods (10%), industrials (8%), transport (7%) and insurance (2%) this week, which also saw IIF view that Qatar’s banking system will be "resilient" as long as the 'repo' window remains open.
Opening the week weak at 9,060 points, the market as then on a rebound but fell on Tuesday, after which the market was on a consistent gains for the next two days to overall settle 20 points higher this week, which saw a total of 35,000 treasury bills valued at QR349.58mn trade across one transaction.
Market capitalisation expanded 1.07% or more than QR5bn to QR500.65bn with small, micro and midcap stocks gaining 1.95%, 1.64% and 1.38% respectively this week.
Mid, small, micro and large cap stocks however saw YTD declines of 18.18%, 13.46%, 10.02% and 9.4% respectively.
Major gainers included Gulf Warehousing, QIC, Doha Insurance, Vodafone Qatar, Ezdan, Milaha, Woqod, Qatar Electricity and Water, Gulf International Services, Aamal Company, Qatar Industrial Manufacturing, Ahli Bank, Commercial Bank, Doha Bank and Qatar Islamic Bank this week.
Nevertheless, Ooredoo, Mesaieed Petrochemical Holding, Qatar National Cement, Nakilat, Masraf Al Rayan, Qatar First Bank, Dlala, Qatari Investors Group, Salam International Investment, United Development Company and Islamic Holding Group were among the losers this week.
Non-Qatari institutions’ net selling declined substantially to QR284.86mn compared to QR653.14mn the week ago.
Non-Qatari individual investors’ net profit booking also fell considerably to QR5.79mn against QR156.85mn the previous week.
However, local individual investors turned net sellers to the tune of QR49.95mn compared with net sellers of QR134.9mn a week ago.
Domestic institutions’ net buying weakened influentially to QR340.41mn against QR675.09mn the week ended June 8.
Total trade volume fell 21% to 82.32mn shares, value by 34% to QR1.93bn and transactions by 31% to 21,494 this week.
There was 59% plunge in the industrials sector’s trade volume to 3.06mn equities, 54% in value to QR163.42mn and 41% in deals to 2,172.
The consumer goods sector’s trade volume plummeted 53% to 2.07mn stocks, value by 35% to QR184.81mn and transactions by 43% to 2,163.
The insurance sector reported 52% shrinkage in trade volume to 0.6mn shares, 34% in value to QR39.82mn and 32% in deals to 457.
The transport sector’s trade volume tanked 50% to 4.1mn equities, value by 47% to QR138.88mn and transactions by 26% to 2,532.
The banks and financial services sector saw 37% decline in trade volume to 31.23mn stocks, 40% in value to QR882.12mn and 34% in deals to 7,949.
The real sector’s trade volume shrank 27% to 13.42mn shares, value by 32% to QR202.79mn and transactions by 26% to 3,569.
However, the market witnessed 79% surge in the telecom sector’s trade volume to 27.84mn equities, 62% in value to QR316.82mn and 2% in deals to 2,652.
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