Gulf and foreign funds turn net sellers as QSE remains bearish

The Qatar Stock Exchange (QSE), like other regional bourses, awaited clues from the US Federal Reserve on interest rates, as it settled lower this week.
The consumer goods, industrials and insurance sector saw higher than average selling pressure as the 20-stock Qatar Index fell 0.13% this week which saw the International Monetary Fund (IMF) find Qatar’s economic growth to “normalise” this year, even as the mid-term outlook remains "favourable" on liquefied natural gas expansion.
As much as 71% of the traded constituents were in the red in the main market this week which saw IMF find that the Qatar Central Bank (QCB) maintained price and financial stability as inflation "moderated", while banks remain "healthy".
The Gulf institutions were seen net profit takers in the main bourse this week which saw the QSE acting chief executive officer Abdul Aziz Nasser al-Emadi disclose the next stage of its strategy of developing organically, as the country enter new phase of growth with LNG output expansion.
The foreign institutions turned bearish in the main market this week which saw the QCB assistant governor (Financial Instruments and Payment Systems) Sheikh Ahmed bin Khalid al-Thani disclose that its instant payment system is expected to be operational by early next year. The local retail investors continued to be net sellers but with lesser intensity in the main bourse this week which saw Petrotec, a subsidiary of Mahhar Holding, enter into an OEM Equipment Refurbishment and Sales Agreement with Seatrax UK.
The domestic funds were increasingly net buyers in the main market this week, which saw a total of 0.13mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.29mn trade across 26 deals.
The Islamic index was seen making gains vis-à-vis declines in the other indices in the main bourse this week which saw as many as 0.01mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.05mn change hands across eight transactions.
Market capitalisation was seen melting QR2.56bn or 0.43% to QR595.03bn on the back of microcap segments this week which saw the industrials and banks together constitute more than 59% of the total trade volume in the main market.
Trade volumes and turnover were on the decline both in the main bourse and venture market this week, which saw Naufar, a leading healthcare institution in Qatar, enter into a strategic collaboration with Meeza as part of efforts to revolutionize its digital capabilities.
The Total Return Index was down 0.13% and the All Share Index by 0.21%, while the All Islamic Index grew 0.16% this week, which saw no trading of sovereign bonds.
The consumer goods and services sector index tanked 1.27%, industrials (0.71%), insurance (0.5%) and banks and financial services (0.08%); while telecom and transport gained 1.73% and 1.42% respectively this week which saw no trading of treasury bills.
Major losers in the main market included Lesha Bank, Ezdan, Nakilat, Zad Holding, QLM, Baladna, Salam International Investment, Medicare Group, Dlala, Mekdam Holding, Meeza, Gulf International Services, Estithmar Holding, Aamal Company, United Development Company and Mazaya Qatar. In the venture market, both Al Faleh Educational Holding and Mahhar Holding saw their shares depreciate in value this week, which saw QNB Financial Services announce liquidity provision for Masraf Al Rayan.
Nevertheless, Doha Insurance, Milaha, Qatar National Cement, Vodafone Qatar and Ooredoo were among the gainers in the main market this week which saw QNB Financial Services announce liquidity provision for QATR.
The Gulf funds were net sellers to the tune of QR23.87mn compared with net buyers of QR19.48mn the week ended November 16.
The foreign institutions turned net sellers to the extent of QR5.95mn against net buyers of QR48.72mn the previous week.
However, the domestic institutions’ net buying increased drastically to QR34.64mn compared to QR9.95mn a week ago.
The Arab individuals’ net buying strengthened noticeably to QR8.38mn against QR1.12mn the week ended November 16.
The foreign retail investors were net buyers to the tune of QR1.62mn compared with net sellers of QR0.44mn the previous week.
The Gulf individual investors turned net buyers to the extent of QR0.98mn against net sellers of QR1.61mn a week ago.
The local retail investors’ net profit booking weakened substantially to QR34.64mn compared to QR77.23mn the week ended November 16.
The Arab institutions had no major net exposure for the third continuous week.
The main market witnessed a 35% contraction in trade volumes to 665.72mn shares, 23% in value to QR2.04bn and 18% in deals to 73,663 this week.
In the venture market, trade volumes plummeted 56% to 2.22mn equities, value by 50% to QR3.49mn and transactions by 41% to 294.