The Qatar Stock Exchange (QSE) gained 66.85 points or 0.7% to close at 10,227.18 for the week. Market capitalisation rose by 0.7% to QR604.9bn from QR600.6bn at the end of the previous trading week. Of the 54 companies traded, 31 ended higher, two remained unchanged and 21 ended lower. Alkhaleej Takaful Insurance (AKHI) was the best performing stock for the week, rising 6.4%. Meanwhile, Mekdam Holding Group (MKDM) was the worst performing stock for the week,decreasing 14.9%.
QNB Group (QNBK), Industries Qatar (IQCD) and Commercial Bank (CBQK) were the main contributors to the weekly index gain. Adding 28.35, 23.44 and 22.41 points to the index, respectively.
Traded value during the week jumped 43.6% to QR2,465.6mn vs QR1,716.9mn in the prior trading week. Doha Bank (DHBK) was the top value stock traded during the week with total traded value of Q263.4mn.
Traded volume climbed 63.9% to 858.7mn shares compared with 523.9mn shares in the prior trading week. The number of transactions increased 21.6% to 147,820 vs 121,563 in the prior week. Qatar Aluminum Manufacturing (QAMC) was the top volume stock traded during the week with total traded volume of 91.6mn shares.
Foreign institutions remained bearish, ending the week with net selling of QR73.8mn vs net selling of QR147.4mn in the prior week. Qatari institutions turned bullish with net buying of QR127.8mn vs net selling of QR12.9mn in the week before. Foreign retail investors ended the week with net selling of QR46.9mn vs net selling of QR3.8mn in the prior week. Qatari retail investors recorded net selling of QR7.1mn vs net buying of QR164.1mn. Global foreign institutions are net buyers of Qatari equities by $291.5mn YTD, while GCC institutions are long by $31.4mn.
QE Index
After a volatile intra-week activity and bouncing off an uptrend support-line, the QE Index managed to close up by 0.66% printed 10,227.18 as a close. This bounce and a near flat close (versus the week before) signals buyers started to have a stronger participation relative to the past few weeks which has been dominated by sellers, mostly. This shows indecisiveness amongst market participants, which could be the precursor for a bullish move that risk takers may take advantage of only if strict risk management is in place. We maintain the immediate support level at the 10,000 level and our next expected support at the 9,750 level.
DEFINITIONS OF KEY TERMS USED IN TECHNICAL ANALYSIS
RSI (Relative Strength Index) indicator – RSI is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between 0 to 100. The index is deemed to be overbought once the RSI approaches the 70 level, indicating that a correction is likely. On the other hand, if the RSI approaches 30, it is an indication that the index may be getting oversold and therefore likely to bounce back.
MACD (Moving Average Convergence Divergence) indicator – The indicator consists of the MACD line and a signal line. The divergence or the convergence of the MACD line with the signal line indicates the strength in the momentum during the uptrend or downtrend, as the case may be. When the MACD crosses the signal line from below and trades above it, it gives a positive indication. The reverse is the situation for a bearish trend.
Candlestick chart – A candlestick chart is a price chart that displays the high, low, open, and close for a security. The ‘body’ of the chart is portion between the open and close price, while the high and low intraday movements form the ‘shadow’. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis.
Doji candlestick pattern – A Doji candlestick is formed when a security's open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal.
Shooting Star/Inverted Hammer candlestick patterns – These candlestick patterns have a small real body (open price and close price are near to each other), and a long upper shadow (large intraday movement on the upside). The Shooting Star is a bearish reversal pattern that forms after a rally. The Inverted Hammer looks exactly like a Shooting Star, but forms after a downtrend. Inverted Hammers represent a potential bullish trend reversal.
Disclaimer
This publication has been prepared by QNB Financial Services Co WLL (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (QPSC). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Stock Exchange. Qatar National Bank (QPSC) is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. Gulf Times and QNBFS accept no liability whatsoever for any direct or indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of the investor and be based on specifically engaged investment advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision.
