The Qatar Stock Exchange (QSE) rose 540.08 points or 6.3% to close at 9,151.18 vs the previous week. Market capitalisation jumped 5.6% to QR556.0bn from QR526.4bn at the end of the previous trading week. Of the 54 companies traded, 49 ended higher, while five ended lower. Qatar National Cement (QNCD) was the best performing stock for the week, climbing 15.0%. Meanwhile, QLM Life & Medical Insurance (QLMI) was the worst performing stock for the week, declining 5.7%.
Qatar Islamic Bank (QIBK), QNB Group (QNBK) and Qatar International Islamic Bank (QIIK) were the main contributors to the weekly index gain, adding 96.94, 79.28 and 54.65 points to the index, respectively.
Traded value during the week surged by 50.5% to QR2,805.9mn vs QR1,863.3mn in the prior trading week. QNB Group (QNBK) was the top-value stock traded during the week with total value traded of QR330.3mn.
Traded volume also climbed 24.3% to 1,099.6mn shares compared with 884.9mn shares in the prior trading week. The number of transactions increased 17.7% to 182,479 vs 155,031 in the prior week. AlRayan Bank (MARK) was the top-volume stock traded during the week with total volume traded of 144.9mn shares.
Foreign institutions remained bullish, ending the week with net buying of QR119.2mn vs net buying of QR23.7mn in the prior week. Qatari institutions turned bearish, ending the week with net selling of QR21.8mn vs. net buying of QR71.5mn in the week before. Foreign retail investors ended the week with net selling of QR9.1mn vs net selling of QR28mn in the prior week. Qatari retail investors ended the week with net selling of QR88.3mn vs net selling of QR67.2mn. Global foreign institutions have a net bearish Qatari equities position of $8.8mn YTD, while GCC institutions are also net sellers by $10.8mn.
The QE Index
The QE Index rose 6.3% over the week, last trading at 9,151.2 points and forming a bullish engulfing weekly candlestick. While this move could signal the start of a V-shaped recovery, confirmation is still needed. For now, the advance is viewed as a pullback within the recent downtrend. Major weekly support is back at 9,000 points, although this level is expected to be weak. Resistance is expected to be around 9,600 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.
