US-China trade deal lifts QSE as foreign funds play active role; M-cap adds QR6bn

The US-China trade deal had its overarching influence in the Qatar Stock Exchange (QSE), which closed this week on a higher note with market capitalisation adding more than QR6bn.

The foreign institutions were increasingly net buyers as the 20-stock Qatar Index gained 0.52% this week which saw the US President Donald Trump’s historic visit to Qatar.

The insurance, industrials and banking counters saw higher than average demand this week which saw the Ministry of Commerce and Industry showcased its bespoke services available for the family businesses to transform into listed companies.

The Gulf institutions were seen increasingly net buyers in the main bourse this week which saw the Islamic Financial Services Board view that Qatar offers "significant" growth opportunities for the Shariah-compliant finance industry.

The domestic institutions’ substantially weakened net selling had its influence on the main bourse this week which saw a total of 0.26mn AlRayan Bank-sponsored exchange traded fund QATR worth QR0.58mn trade across 73 deals.

More than 66% of the traded constituents extended gains to investors in the main market this week which saw as many as 0.01mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.07mn change hands across 14 transactions.

The Gulf individuals’ lower net profit booking had its marginal effect on the main bourse this week which saw no trading of sovereign bonds.

However, the local retail investors turned bearish in the main market, which saw no trading of treasury bills.

The Arab individuals were seen increasingly into net selling in the main bourse this week which saw the Qatar Financial Markets Authority suggest creating a resilient financial sector for long term growth.

The Islamic index was seen gaining slower than the other indices of the main market this week, which saw the Qatar Electricity and Water Company (QEWC) sign an agreement to build Ras Abu Fontas Power and Water Facility with a capacity of 2,400 MW of electricity and 110 MGD of water.

Market capitalisation added QR6.03bn or 0.97% to QR624.62bn on the back of large and midcap segments this week which saw the industrials, banking and consumer goods sectors together constitute more than 76% of the total trade volumes.

Trade turnover and volumes were on the increase in both the main and ventures markets this week which saw an international rating agency Moody’s confirm the credit rating of AlRayan Bank at 'A2' with a "stable" outlook.

The Total Return Index rose 0.52%, the All Islamic Index by 0.47% and the All Share Index by 0.79% this week which Moody’s also confirm QIIB’s credit rating at 'A2/Prime-1' with a "stable" outlook.

The insurance sector index surged 3.12%, industrials (1.86%), banks and financial services (0.93%) and consumer goods and services (0.28%); while transport declined 0.36%, real estate (0.94%) and telecom (0.43%) this week.

Major movers in the main market included Estithmar Holding, Lesha Bank, Qatar Insurance, Gulf International Services, Mannai Corporation, QNB, Alijarah Holding, Dukhan Bank, Qatar Oman Investment, Salam International Investment, Baladna, Al Faleh Educational Holding, Industries Qatar, Qamco, QEC, Qatar Insurance, Barwa and Ezdan.

Nevertheless, Qatar Cinema and Film Distribution, Nakilat, Doha Bank, Beema, Gulf Warehousing and Al Mahhar Holding were among the shakers in the main bourse. In the venture market, Techno Q saw its shares depreciate in value this week.

The foreign institutions’ net buying increased noticeably to QR168.97mn compared to QR156.83mn the previous week.

The Gulf institutions’ net buying strengthened significantly to QR31.11mn against QR20.26mn the week ended May 8.

The domestic institutions’ net profit booking weakened drastically to QR53.08mn compared to QR133.42mn a week ago.

The Gulf individual investors’ net selling eased marginally to QR2.42mn against QR3.6mn the previous week.

However, the Qatari individuals’ net selling grew substantially to QR109.43mn compared to QR41.31mn the week ended May 8.

The Arab retail investors were net sellers to the tune of QR22.71mn against net buyers of QR3.04mn a week ago.

The foreign individuals’ net profit booking expanded perceptibly to QR11.68mn compared to QR1.81mn the previous week.

The Arab institutions turned net sellers to the extent of QR0.76mn against no major net exposure the week ended May 8.

The main market saw 20% surge in trade volumes to 1.09bn shares, 20% in value to QR2.34bn and 9% in deals to 96,142 this week.

In the venture market, trade volumes jumped six-fold to 0.12mn equities and value by more than six-fold to QR0.33mn on almost tripled transactions to 42.