The Qatar Stock Exchange (QSE) lost 181.33 points or 1.9% to 9,477.68 vs the previous week. Market capitalisation decreased by 1.7% to QR572.6bn from QR582.6 at the end of the previous trading week. Of the 54 companies traded, 20 ended higher, 1 was unchanged, while 33 ended lower. United Development Co (UDCD) was the best performing stock for the week, climbing 6.8%. Meanwhile, Industries Qatar (IQCD) was the worst performing stock for the week, declining 5.8%.
Industries Qatar (IQCD), QNB Group (QNBK) and Qatar International Bank (QIIK) were the main contributors to the weekly index decline, subtracting 67.47, 15.86 and 15.11 points from the index, respectively.
Traded value during the week rose 9.3% to QR1,999.3mn vs QR1,828.4mn in the prior trading week. QNBK was the top value stock traded during the week with total traded value of QR175.6mn.
Traded volume surged 40.5% to 925.7mn shares compared with 658.7mn shares in the prior trading week. The number of transactions increased 29.7% to 121,103 vs 93,354 in the prior week. UDCD was the top volume stock traded during the week with total traded volume of 158.2mn shares.
Foreign institutions turned bullish, ending the week with net buying of QR97.6mn vs net selling of QR95.7mn in the prior week. Qatari institutions remained bearish, ending the week with net selling of QR151.3mn vs net selling of QR5.2mn in the week before. Foreign retail investors ended the week with net buying of QR12.2mn vs. net buying of QR16mn in the prior week. Qatari retail investors ended the week with net buying of QR41.6mn vs net buying of QR84.9mn. Global foreign institutions have a net bearish Qatari equities position of $50.3mn YTD, while GCC institutions are also net sellers by $11.6mn.
QSE Index
The QE Index lost around -1.9% for this week and printed 9,477.68 last, hitting a fresh 52-week low, showing signs of further weakness. Overall trend continues to stay on the bearish side, until the Index reclaims the 10,050 level. Meanwhile, the Index closed below its April 25 low, near 9,550, indicating signs of heavy profit-booking to cotinue, which can eventually drag the Index further down towards 9,200, followed by 9,000. However, acceptance above 9,600, can provide some temporary relief, which can witness a small rebound towards 9,750.
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.
