The Qatar Stock Exchange (QSE) declined 255.70 points or 2.4% to close at 10,335.86 vs the previous holiday-shortened week. Market capitalisation decreased 1.8% to QR622.5bn from QR633.9bn at the end of the previous trading week. Of the 54 companies traded, 23 ended higher, while 31 ended lower. Dlala Holding (DBIS) was the best performing stock for the week, rising 9.6%. Meanwhile, AL Khaleej Takaful (AKHI) was the worst performing stock for the week, decreasing 8.4%.
Qatar Islamic Bank (QIBK), QNB Group (QNBK) and Industries Qatar (IQCD) were the main contributors to the weekly index decline, deleting 78.83, 44.37 and 43.35 points from the index, respectively.
Traded value during the week increased by 17.4% to QR1,985.9mn vs QR1,691.0mn in the prior trading week. QNB was the top value stock traded during the week with total traded value of QR222.1mn.
Traded volume soared 37.4% to 669.5mn shares compared with 487.3mn shares in the prior trading week. The number of transactions increased by 191.9% to 151,702 vs 51,975 in the prior week. Baladna (BLDN) was the top volume stock traded during the week with total traded volume of 73.7mn shares.
Foreign institutions remained bearish, ending the week with net selling of QR289.3mn vs net selling of QR53.5mn in the prior week. Qatari institutions remained bullish with net buying of QR74.6mn vs net buying of QR109.1mn in the week before. Foreign retail investors ended the week with net buying of QR53.8mn vs net selling of QR20.4mn in the prior week. Qatari retail investors recorded net buying of QR161.0mn vs net selling of QR35.3mn. Global foreign institutions are net buyers of Qatari equities by $45.0mn YTD, while GCC institutions are long by $28.3mn.
The QSE Index
The QE Index closed down by 2.4% from the week before; it printed 10,335.9 at the close. Despite the recent drop, we remain to have a positive outlook in the upcoming weeks, given a strong breakout above the 11,000 level with a spike in traded volumes. We reiterate our previously reported view that clearing the above-mentioned level means chances for the continuation of the longer-term uptrend are more likely to shape, and we target the 11,300 level is next expected resistance. Our support level remains at the 10,000 points.
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 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.
