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Qatar Tuesday said under investments in the previous years was a key reason for the current high energy prices and therefore more investments in the oil and gas sectors are imperative. Addressing the second Qatar Economic Forum (QEF), powered by Bloomberg, HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi said there has been an almost 20% year-on-year decline in capital expenditure in the upstream business over the last seven to eight years. There was the pandemic and the appurtenant overall slowdown worldwide and then the situation was amplified more by the present Russia-Ukraine issue, he said. “The under investments is the underpinning reason for much higher (energy) prices,” he said, adding for the system to correct itself, there was a need for higher investments. The oil market is focused on supply constraints, so prices are likely to remain elevated with strategists at Societe Generale forecasting the black gold at $130 in the third quarter and $120 in the subsequent quarter. “We need to invest more in the oil and gas sector due to the better revenues the oil companies are getting. Also due to the fact that legislators now understand that you can do transition without the base load cover, which is having investments in the gas business,” he said. Sheikh Nawaf Saud al-Sabah, deputy chairman and chief executive, Kuwait Petroleum Corporation, said the massive under investments started in 2014-15 and continued and led to discovery of less than 2bn barrel per year. Typical investment cycle for exploration is seven years from the time oil is discovered, he said. “In Kuwait, we have increased our exploration and investments in building capacity to meet the requirements for the future,” he said, adding the country has been producing hydrocarbons onshore for the last 80 years. “We have now taken steps into exploration offshore. The first offshore drill rig arrived in Kuwait last week,” he said. In terms of capacity building, Sheikh Nawaf said Kuwait Petroleum Company is at present in the commissioning stage of new refinery, which will be the largest in the world at 650,000 barrels of oil per day and that should be online by the end of the year. It (the new refinery) would be the answer to the increased demand from the Europe, he said, adding under the Opec allocation, oil production could be ramped up by 2.7mn bpd. Darren Woods, chairman and chief executive of ExxonMobil, said his company is one of the few international oil companies in the US that have been investing in refining. “We have got a big expansion plan of 250,000 barrels per day (to process the light crude),” he said. The company had kept investing even during the pandemic, when it lost more than $20bn and had to borrow more than $30bn to maintain investment to increase capacity to be ready for post-pandemic demand. In a veiled remark to the UK's decision to impose a 25% windfall tax on oil and gas companies; al-Kaabi said "I don’t see the government pitch in when they (oil firms) make losses and borrow when the oil price was negative in Texas." He said countries should take into account the issue of taxes levied on companies through formulas that ensure a balance in this field, given that the profits achieved by these international oil companies represent their investments in the medium and long term.  

Qatar, which is enhancing its liquefied natural gas (LNG) production, is planning to capture up to 11mn tonnes of carbon dioxide through sequestration as part of the country's measures to responsibly meet the increasing energy demand of the world. "Carbon dioxide sequestration is an important element in expanding our business in the energy sector, while preserving the environment. Going forward, we are going to capture 11mn tonnes of carbon dioxide," HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi told the second Qatar Economic Forum, powered by Bloomberg. Qatar has been capturing and sequestrating up to 2.5mn tonnes of carbon annually since last seven years, he said. Qatar continues to invest in low-carbon technologies such as carbon capture and sequestration and solar energy, and will start producing electricity from solar energy for the first time in the first half of 2022, as it aspires to double the use of solar power plants to generate electricity by 2030. The North Field Expansion will include a carbon capture and storage (CCS) facility to capture carbon dioxide emissions from the project. The CCS facility will be the largest of its kind in the LNG industry, and will be part of a carbon dioxide capture and storage cluster in Ras Laffan in Qatar. Power for the facility will be sourced from an 800MW solar power plant under construction nearby, further reducing the project’s carbon footprint. One of the most important environmental elements of the NFE project is its carbon dioxide capture and sequestration system that will be integrated with the wider CCS scheme in Ras Laffan, which, once fully operational, would be the largest of its kind in terms of capacity in the LNG industry, and would be one of the largest ever developed anywhere in the world, he had said last year. Equipping the expanded operations with CCS builds on the "sustainability pledge" that QatarEnergy had made in January 2021 for its upstream and downstream operations. Qatar is the world's largest LNG producer, and by implementing the sustainability strategy, it would play a decisive role in helping reduce the impact of climate change by implementing measures to curb emissions, produce LNG using the latest proven carbon reduction technologies, and compensating for residual emissions where necessary. Al-Kaabi, who is also the president and chief executive of QatarEnergy, said apart from using solar power for the CCS, the ships that would be used in transportation would not be using heavy fuels, instead it would run in LNG. Qatar is also examining the best ways to develop and use other clean fuels such as hydrogen.  

Commerce minister accompanies delegation on tour of Al Thumama Stadium His Highness the Amir Sheikh Tamim bin Hamad al-Thani will patronise today the opening of the Qatar Economic Forum, Powered by Bloomberg, with the participation of a number of heads of state and government, ministers, senior political and economic officials, experts and heads of companies from Qatar and the world. His Highness the Amir will deliver a speech at the opening session of the forum, which will be held at The Ritz-Carlton, Doha. Being held under the theme ‘Equalising the Global Recovery’, the forum is expected to draw more than 75 main-stage Qatari, regional and international speakers, and more than 500 global attendees, from chief executive officers to influential entrepreneurs and leaders of disruptive businesses. The forum will also discuss the economic strategies adopted to diversify sources of income in a way that contributes to reducing climate change, eliminating poverty, reducing inflation, protecting the environment, providing investment opportunities in the sports sector, preparing to host the FIFA World Cup Qatar 2022, future technology prospects, and ways to support the renaissance of the African continent in the 21st century. Meanwhile, as part of the Qatar Economic Forum programme, HE Sheikh Mohamed bin Hamad bin Qassim al-Thani, Minister of Commerce and Industry, accompanied a delegation of senior officials on a tour of Al Thumama Stadium, during their visit to learn about Qatar’s preparations to host the FIFA World Cup Qatar 2022. The delegation included Faure Essozimna Gnassingbé, President of Togo, and a number of other dignitaries such as Scott Havens, CEO of Bloomberg Media, members of the supreme organising committee of QEF 2022, representatives of diplomatic missions in Qatar, and CEOs of a number of banks and major local and international companies. The delegation was briefed on the various facilities of Al Thumama Stadium and its readiness to host World Cup matches. Located 12km south of the heart of Doha, Al Thumama Stadium will host the FIFA World Cup Qatar 2022 matches from the group stage matches up to the quarter-finals. The design of the stadium was inspired by the ‘gahfiya’, the traditional woven head cap worn by men and boys across the Arab world. Considering that the football extravaganza is happening for the first time in the Middle East region, the attendees of QEF, whose key sessions and themes will start today, were given a glimpse of the prospects and pace with which the country is executing several infrastructure projects in a time bound manner for the smooth conduct of the sporting event. Doha, which has had its name etched in the international economic and financial circles through its World Trade Organisation (WTO) Round in 2001, has always been a sought-after platform to bring together policy makers, thought leaders and different members of the global  business community. Last year’s version had 11 presidents, as well as ranking government officials, international organisations, corporations and experts from as many as 120 countries. Sheikh Ali bin Abdullah bin Khalifa al-Thani, chief executive of Media City and also chairman of the supreme committee organising the second Qatar Economic Forum 2022, has said the participation of world leaders and ranking officials reflects Qatar’s status as a regional and international hub for business, investment, sports, and education. The forum is hosting leading Qatari personalities from the public and private sector, in addition to international speakers and experts in different fields. Participants will share their expertise on wide-ranging topics in the field of management and will discuss the topics on the agenda such as women’s leadership in business, the future of energy, sustainable development, digital transformation, as well as the trends in the global financial system. Havens said the forum is an opportunity for world leaders to discuss ways to drive global economic recovery in a sustainable and comprehensive manner. HE Sheikh Mohamed bin Hamad bin Qassim al-Thani accompanied a delegation of senior officials on a tour of Al Thumama Stadium.

The Qatar Stock Exchange continued to witness heavy profit booking, leading to more than 442 points plunge in key barometer and QR25bn in capitalisation, following the global sell-off last week and oil’s plunge on Friday. An across the board selling, particularly in the industrials, led the 20-stock Qatar Index plummet 3.52% to 12,119.85 points, although it touched an intraday high of 12,486 points. The domestic institutions were seen net profit takers in the market, whose year-to-date gains were at 4.25%. The Gulf institutions were increasingly net sellers in the bourse, whose capitalisation saw about QR25bn or 3.53% decline to QR680.85bn, mainly on the back of large and midcap segments. The Islamic index was seen declining slower than the main barometer in the market, where the industrials sector alone constituted about 54% of the total trading volume. More than 93% of the traded constituents were in the red in the bourse, which saw a total of 0.2mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.52mn changed hands across 30 deals. Nevertheless, local retail investors turned bullish in the market, which saw no trading of sovereign bonds. Total trade turnover and volumes were on the decline in the bourse, which saw no trading of treasury bills. The Total Return Index shrank 3.52% to 24,825.4 points, All Share Index by 3.28% to 3,887.52 points and Al Rayan Islamic Index (Price) by 3.35% to 2,661.32 points. The industrials sector index tanked 5%, realty (3.05%), banks and financial services (2.93%), transport (2.82%), consumer goods and services (2.45%), telecom (1.93%) and insurance (1.38%). Major losers in the main market included Qatari German Medical Devices, Gulf International Services, Qamco, Ezdan, Salam International Investment, QNB, Qatar Islamic Bank, QIIB, Masraf Al Rayan, Baladna, Industries Qatar, Mesaieed Petrochemical Holding, Estithmar, QLM, Gulf Warehousing and Nakilat. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, Qatar Islamic Insurance and Ahlibank Qatar were the gainers in the main market. The domestic funds turned net sellers to the tune of QR95.26mn compared with net buyers of QR9.61mn on June 16. The Gulf funds’ net selling increased perceptibly to QR27.17mn against QR20.72mn the previous trading day. The Gulf individuals’ net buying eased marginally to QR1.53mn compared to QR1.61mn last Thursday. However, Qatari individuals turned net buyers to the tune of QR57.25mn against net sellers of QR17.05mn on June 16. The foreign funds’ net buying zoomed substantially to QR56.47mn compared to QR37.88mn the previous trading day. The Arab individuals’ net buying strengthened marginally to QR5.91mn against QR5.49mn last Thursday. The foreign individuals were net buyers to the extent of QR0.78mn compared with net sellers of QR17.15mn on June 16. The Arab institutions’ net buying increased marginally to QR0.5mn against QR0.33mn the previous trading day. Total trade volume in the main market fell 38% to 234.16mn shares, value by 72% to QR688.42mn and transactions by 51% to 13,045. The banks and financial services sector’s trade volume plummeted 84% to 35.39mn equities, value by 87% to QR252.1mn and deals by 75% to 4,326. The transport sector reported 74% plunge in trade volume to 3.69mn stocks, 69% in value to QR19.17mn and 63% in transactions to 410. The telecom sector’s trade volume tanked 43% to 3.9mn shares, value by 74% to QR8.5mn and deals by 61% to 509. There was 23% shrinkage in the insurance sector’s trade volume to 3.11mn equities, 1% in value to QR10mn and 62% in transactions to 201. The real estate sector’s trade volume was down 3% to 34.44mn stocks and value by 40% to QR41.9mn, whereas deals shot up 27% to 1,004. However, the market witnessed 63% surge in the industrials sector’s trade volume to 125.77mn shares, 18% in value to QR309.14mn and 24% in transactions to 5,488. The consumer goods and services sector’s trade volume zoomed 34% to 27.86mn equities; while value shrank 56% to QR47.61mn and deals by 20% to 1,107. The venture market saw 60.38% contraction in trade volumes to 0.21mn stocks, 64.03% in value to QR1.41mn and 74.07% in transactions to 56.  

The sharp hike in interest rates by the US Federal Reserve to tame a 40-year high inflation had its repercussions in the Qatar Stock Exchange, which plummeted 537 points and wiped off QR26bn in capitalisation this week. The domestic funds were seen increasingly into net selling as the 20-stock Qatar Index tanked 4.1% this week which saw the QSE chief executive Tamim Hamad al-Kawari tell a London conference that the bourse is focused on improving the liquidity. The foreign institutions’ weakened net buying had its influence in the market this week which saw Commercial Bank closes $750mn Asian syndicate term loan facility. The foreign individuals’ net buying also waned this week which saw Doha Bank brings in QNBFS as liquidity provider for its sponsored exchange traded fund QETF. An across the board selling, particularly in the industrials, dampened the sentiments in the bourse this week which saw Gulf Warehousing Company (GWC) sign pact with Ponticelli Freres Group. The Gulf individuals turned net profit takers this week which saw the global credit rating agency Standard and Poor’s upgrade rating of Al Khaleej Takaful. About 94% of the traded constituents in the main market were in the red this week which saw Qatar’s trade surplus swell 86% year-on-year in May 2022. Nevertheless, Arab individuals were seen bullish this week which saw a total of 0.2mn QETF valued at QR2.45mn change hands across 40 transactions. The Gulf individuals were also seen net buyers this week which saw as many as 0.84mn Masraf Al Rayan-sponsored QATR worth QR2.29mn trade across 133 deals. The overall trading and turnover in the main market were on the increase this week, which saw the industrials and banking sectors together constitute more than 72% of the total trade volume. Market capitalisation was seen eroding more than QR26bn or 3.62% to QR705.8bn, mainly on large and midcap segments this week, which saw no trading of sovereign bonds and treasury bills. The Total Return Index tanked 4.1%, All Islamic Index by 3.62% and All Share Index by 3.56% this week. The industrials sector plummeted 5.81%, banks and financial services (3.47%), transport (3.09%), real estate (3.01%), insurance (0.78%), telecom (0.61%) and consumer goods and services (0.06%) this week. Major shakers in the main market included Commercial Bank, Industries Qatar, Qamco, Qatar Industrial Manufacturing, Qatar First Bank, Doha Bank, Masraf Al Rayan, Qatari German Medical Devices, Baladna, Qatar Electricity and Water, Qatar Insurance, Qatar Islamic Insurance, Ezdan, Mazaya Qatar, Milaha and GWC; while both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value this week. Nevertheless, Qatar General Insurance and Reinsurance, Woqod and Qatar Cinema and Film Distribution were among the gainers in the main market this week. In the main market, the banks and financial services sector accounted for 39% of the total trade volume, industrials (33%), consumer goods and services (11%), real estate (10%), transport (4%), telecom (2%) and insurance (1%) this week. In terms of value, the banks and financial sector’s share was 64%, industrials (20%), consumer goods and services (6%), transport and realty (3% each), telecom (2%) and insurance (1%) this week. The domestic funds’ net selling grew substantially to QR209.99mn compared to QR77.1mn the week ended June 9. The Gulf institutions turned net sellers to the tune of QR23.13mn against net buyers of QR74.96mn the previous week. The foreign funds’ net buying decreased markedly to QR242.74mn compared to QR304.66mn a week ago. The foreign individuals’ net buying weakened perceptibly to QR1.82mn against QR5.15mn the previous week. However, Arab individuals were net buyers to the extent of QR24.36mn compared with net sellers of QR22.23mn a week ago. The Arab institutions’ net buying rose marginally to QR2.87mn against QR1.72mn the week ended June 9. The Gulf individuals turned net buyers to the tune of QR2.1mn compared with net sellers of QR7.07mn the previous week. Qatari individuals’ net profit booking fell drastically to QR40.76mn against QR280.08mn a week ago. Total trade volume in the main market rose 6% to 953.73mn shares, value by 56% to QR4.91bn and transactions by 37% to 111,528. The banks and financial services sector’s trade volume more than doubled to 372.84mn equities and value more than doubled to QR3.14bn on 70% increase in deals to 62,955. However, there was a 38% plunge in the transport sector’s trade volume to 34.9mn stocks and 38% in value to QR167.41mn but on 3% increase in transactions to 5,105. The insurance sector’s trade volume tanked 37% to 11.75mn shares, value by 51% to QR32.81mn and deals by 13% to 1,438. The consumer goods and services sector reported 30% shrinkage in trade volume to 101.24mn equities but on 4% jump in value to QR308.54mn and less than 1% in transactions to 6,939. The real estate sector’s trade volume shrank 24% to 95.98mn stocks, value by 14% to QR163.03mn and deals by 15% to 5,225. The market witnessed 14% contraction in the telecom sector’s trade volume to 21.3mn shares but on 28% surge in value to QR96.31mn and 53% in transactions to 5,465. The industrials sector’s trade volume was down 13% to 315.71mn equities and value by 3% to QR1bn, whereas deals shot up 16% to 24,401. The venture market saw 56.17% drop in trade volumes to 1.49mn stocks, 56.16% in value to QR9.78mn and 51.74% in transactions to 555.    

The Qatar Stock Exchange on Thursday declined 0.51%, reflecting global cues after the US Federal Reserve hiked the reference rate by 0.75% in order to tame the 40-year high inflation. A higher than average selling pressure at the industrials, transport and banking counters led the 20-stock Qatar Index to shrink 65 points to 12,562.05 points, although it touched an intraday high of 12,671 points. The Gulf funds were seen net profit takers in the market, whose year-to-date gains were at 8.05%. The foreign institutions’ weakened net buying also had its influence in the bourse, whose capitalisation saw more than QR5bn or 0.73% decline to QR705.8bn, mainly on the back of mid and small cap segments. The Islamic index was seen declining slower than the other indices in the market, where the industrials and banking sectors together constituted about 79% of the total trading volume. The foreign individuals turned bearish in the bourse, which saw a total of 335,057 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR1.06mn changed hands across 55 deals. The Arab individuals’ net buying slackened in the market, which saw no trading of sovereign bonds. Total trade turnover and volumes were on the increase in the bourse, which saw no trading of treasury bills. The Total Return Index shrank 0.51% to 25,731.15 points, the All Share Index by 0.62% to 4,019.32 points and the Al Rayan Islamic Index (Price) by 0.17% to 2,753.61 points. The industrials sector index tanked 0.93%, transport (0.89%), banks and financial services (0.8%) and real estate (0.2%); while consumer goods and services gained 0.78%, telecom (0.51%) and insurance (0.27%). About 60% of the traded constituents were in the red with major shakers being Qatar First Bank, Industries Qatar, Zad Holding, Qatar Industrial Manufacturing, QNB, Qatar Islamic Bank, Mannai Corporation, Qamco, Qatar Islamic Insurance, Al Khaleej Takaful, Ezdan, United Development Company and Milaha. In the venture market, Mekdam Holding saw its shares depreciate in value. Nevertheless, Doha Insurance, Mesaieed Petrochemical Holding, Qatar General Insurance and Reinsurance, QIIB, Woqod, Widam Food, Baladna, Aamal Company and Barwa were among the gainers in the main market. The Gulf funds turned net sellers to the tune of QR20.72mn compared with net buyers of QR0.15mn on June 15. The foreign individuals were net sellers to the extent of QR17.15mn against net buyers of QR3.18mn on Wednesday. The foreign funds’ net buying declined substantially to QR37.88mn compared to QR90.58mn the previous day. The Arab individuals’ net buying weakened perceptibly to QR5.49mn against QR6.55mn on June 15. The Arab institutions’ net buying decreased noticeably to QR0.33mn compared to QR1.81mn on Wednesday. However, the domestic funds turned net buyers to the tune of QR9.61mn against net sellers of QR67.81mn the previous day. The Gulf individuals’ net buying grew marginally to QR1.61mn compared to QR1.22mn on June 15. Qatari individuals’ net profit booking shrank considerably to QR17.05mn against QR35.68mn on Wednesday. Total trade volume in the main market more than tripled to 378.97mn shares and value also more than tripled to QR2.43bn on 11% increase in transactions to 26,542. The banks and financial services sector’s trade volume grew more than five-fold to 220.35mn equities and value more than quadrupled to QR1.88bn on 17% jump in deals to 16,970. The real estate sector’s trade volume more than tripled to 35.55mn stocks and value also more than tripled to QR69.52mn, whereas transactions were down 11% to 793. The insurance sector’s trade volume more than doubled to 4.03mn shares and value also more than doubled to QR10.08mn on 67% growth in deals to 532. The telecom sector’s trade volume more than doubled to 6.82mn equities and value also more than doubled to QR32.93mn on 5% expansion in transactions to 1,309. The transport sector’s trade volume more than doubled to 14.13mn stocks and value also more than doubled to QR62.47mn, while deals shrank 6% to 1,123. The market witnessed 87% surge in the industrials sector’s trade volume to 77.28mn shares and 88% in value to QR261.35mn but on 5% shrinkage in transactions to 4,426. The consumer goods and services sector’s trade volume zoomed 37% to 20.81mn equities and value almost tripled to QR107.56mn on 16% higher deals to 1,389. In the venture market, trade volumes were seen growing 2% to 0.53mn stocks and value by 40% to QR3.92mn on more than doubled transactions to 216.    

Qatar's trade surplus soared 86.8% year-on-year during the first quarter (Q1) of this year as the country's exports grew much faster than imports, according to the official statistics. Asia remained the principal destination of Qatar’s exports and the first origin of imports as the country saw QR74.61bn trade surplus on trade volumes of QR132.92bn during Q1-2022, said the Planning and Statistics Authority (PSA) data. During Q1-2022, the value of Qatar’s total exports (including exports of domestic goods and re-exports) amounted to QR103.8bn, which increased 62.2% and 3.8% year-on-year and quarter-on-quarter respectively. The yearly jump in total exports was mainly due to a 65.5% surge in the shipments of mineral fuels (QR35bn), 57.1% in chemicals and related products (QR3.4bn), 1013.4% in crude materials, inedible, except fuels (QR0.8bn), 30.2% in manufactured goods classified chiefly by material (QR0.6bn) and 83.3% in food and live animals (QR0.03bn). On other hand, there was a 2.1% decline in machinery and transport equipment valued at QR0.05bn and 2.2% in miscellaneous manufactured articles (QR0.01bn). The value of Qatar’s imports during Q1-2022 was QR 29.2bn; which increased 21.3% and 2% on a yearly and quarterly basis respectively. The Q2-2022 year-on-year jump in imports values is mainly due to a 39.7% increase in miscellaneous manufactured articles valued at QR1.7bn, 13.7% in machinery and transport equipment (QR1.2bn), 299.5% in mineral fuels, lubricants and related materials (QR0.6bn), 21.2% in chemicals and related Products (QR0.55bn) and 14.3% in manufactured goods classified chiefly by material (QR0.52bn). The Asian region was the principal destination of Qatar’s exports and the first origin of Qatar’s imports, representing 75.5% and 41.3% respectively; followed by the European Union, accounting for 14.4% and 28.5% respectively; and the GCC (Gulf Co-operation Council), with 5.4% and 5.8% respectively. Trade volume and balance with Asia stood at QR90.35bn and QR66.24bn respectively, European Union (QR23.28bn and QR6.69bn), the GCC (QR7.31bn and QR3.92bn), and the US (QR5.07bn and -QR2.45bn) during Q1-2022. In its World Investment Report, the United Nations Conference on Trade and Development had noted Qatar's “normalisation of relations with the three GCC members will improve investment prospects for Qatar specifically and likely to boost intraregional flows.” An International Monetary Fund paper had earlier said given that low intra-GCC trade is mostly due to similar economic structures of the member countries, the greater regional trade can be boosted by diversifying the economy toward tradable goods. Trade volume and balance with Oceania amounted to QR1.08bn and -QR0.18bn respectively during Q1-2022; Africa (except Arab countries) QR1.21bn and QR0.52bn; other American countries (QR1.21bn and -QR0.15bn); and other Arab countries (QR0.98bn and QR0.07bn. The trade balance and volume of Qatar with other countries not specified amounted to QR0.69bn respectively during the review period.

Ahead of the US Federal Reserve’s meeting, the Qatar Stock Exchange plummeted 105 points to close below 11,700 points on an across the board selling, particularly in the telecom, realty and industrials. The domestic funds were increasingly into net selling as the 20-stock Qatar Index shed 0.82% to 12,626.55 points, although it touched an intraday high of 12,774 points. The foreign funds’ weakened net buying had its influence in the market, whose year-to-date gains were at 8.61%. The Arab individuals’ net buying also waned in the bourse, whose capitalisation saw about QR4bn or 0.55% decline to QR710.98bn, mainly on the back of small and microcap segments. The Islamic index was seen declining faster than the other indices in the market, where the industrials and banking sectors together constituted about 70% of the total trading volume. The local retail investors continued to be net sellers but with lesser intensity in the bourse, which saw a total of 22,748 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.22mn changed hands across 12 deals. The foreign individuals’ net buying slackened in the market, which saw no trading of sovereign bonds. Total trade turnover and volumes were on the decline in the bourse, which saw no trading of treasury bills. The Total Return Index declined 0.82% to 25,863.27 points, All Share Index by 0.55% to 4,044.53 points and Al Rayan Islamic Index (Price) by 0.97% to 2,758.41 points. The real estate sector index tanked 1.26%, telecom (1.24%), industrials (1%), banks and financial services (0.37%), consumer goods and services (0.23%), transport (0.21%) and insurance (0.13%). Some 75% of the traded constituents were in the red with major shakers being Commercial Bank, Gulf International Services, Widam Food, Dlala, Aamal Company, QIIB, Masraf Al Rayan, Mannai Corporation, Baladna, Qatar National Cement, Qatari Investors Group, Industries Qatar, Mesaieed Petrochemical Holding, Qamco, QLM, Ezdan, Barwa, Ooredoo and Gulf Warehousing. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, QNB, Qatar Electricity and Water, Qatar Industrial Manufacturing, Zad Holding and Doha Insurance were among the gainers in the main market. The domestic institutions’ net selling increased noticeably to QR67.81mn against QR54.2mn on June 14. The foreign funds’ net buying declined markedly to QR90.58mn compared to QR108.83mn on Tuesday. The Arab individuals’ net buying weakened perceptibly to QR6.55mn against QR10.22mn the previous day. The foreign individuals’ net buying shrank notably to QR3.18mn compared to QR6.95mn on June 14. However, the Arab institutions’ net buying expanded significantly to QR1.81mn against QR0.73mn on Tuesday. The Gulf individuals were net buyers to the tune of QR1.22mn compared with net sellers of QR0.96mn the previous day. The Gulf funds turned net buyers to the extent of QR0.15mn against net profit takers of QR11.87mn on June 14. Qatari individuals’ net profit booking shrank considerably to QR35.68mn compared to QR59.7mn on Tuesday. Total trade volume in the main market fell 24% to 119.56mn shares, value by 10% to QR631.17mn and transactions by 13% to 23,938. The insurance sector’s trade volume plummeted 49% to 1.57mn equities, value by 48% to QR4.48mn and deals by 1% to 319. The real estate sector reported 43% plunge in trade volume to 11.29mn stocks, 37% in value to QR19.68mn and 51% in transactions to 889. The market witnessed 29% shrinkage in the industrials sector’s trade volume to 41.42mn shares, 24% in value to QR139.02mn and 27% in deals to 4,642. The consumer goods and services sector’s trade volume tanked 27% to 15.22mn equities, value by 11% to QR38.12mn and transactions by 22% to 1,194. There was 18% contraction in the transport sector’s trade volume to 5.62mn stocks, 28% in value to QR25.27mn and 6% in deals to 1,198. The telecom sector’s trade volume was down 11% to 2.65mn shares, value by 11% to QR16.33mn and transactions by 26% to 1,249. The banks and financial services sector saw a 2% dip in trade volume to 41.78mn equities but on 2% jump in value to QR388.26mn despite less than 1% fall in deals to 14,447. In the venture market, trade volumes grew more than 10-fold to 0.52mn stocks and value by eight-fold to QR2.8mn on more than tripled transactions to 105.

    * Qatar improves world ranking in economic performance: IMD Competitiveness Report   Doha has ranked seventh in government efficiency and ninth in economic performance among the 64 developed countries in the World Competitiveness Yearbook 2022, which is published annually by the International Institute for Management Development (IMD) in Switzerland. The country has been ranked 14th in business efficiency and also improved its ranking in infrastructure to 38th rank. Overall, Qatar has been ranked 18th among the reviewed countries. In the case of Saudi Arabia, it was ranked 24, the UAE 12 and Bahrain 30. In economic performance, Doha bettered its performance from 2021 when it was ranked 11. In 2022, Bahrain was ranked 39, Saudi Arabia 31 and the UAE 6. In government efficiency, Bahrain was ranked 39, Saudi Arabia 19 and the UAE three in 2022 and in business efficiency; their ranks were 24, 16 and 17, respectively, in the review year. In infrastructure, Bahrain was ranked 39, Saudi Arabia 34 and the UAE 26 in 2022, IMD report said. The ranking was based on national statistics provided to IMD as well as the result of surveying a sample of businesses manager who provided their views of Qatar’s economy competitive climate. Qatar’s rank has been "positively" influenced by multitude of factors including strong economic performance as represented by, Qatar’s low unemployment rate (ranked first), government subsidies (ranked first), cyber security (ranked first), high percentages of government budget surplus/deficit (ranked second), gross fixed capital formation (ranked second), international experience (ranked second), entrepreneurship (ranked third), and use of big data and analysis (ranked third). "Despite a slight decline in Qatar's ranking among the 64 countries, it continues to rank highly thanks to the flexibility of the Qatari economy in overcoming economic crises," said HE Dr Saleh bin Mohamed al-Nabit, President of the Planning and Statistics Authority. He said Qatar’s consecutive national development strategies, sets out clear goals and interventions in the areas of economic infrastructure and private sector development that will lead to economic and growth, and achieves Qatar National Vision 2030. The online survey took place from February to May. In 2022, IMD received as many as 6,031 responses from the 63 economies worldwide. The respondents assess the competitiveness issues by answering the questions on a scale of 1 to 6. The average value for each economy is then calculated and converted into a 0 to 1.

The Qatar Stock Exchange Tuesday gained more than 13 points, mainly on the back of buying interests of foreign institutions, amid uncertainties ahead of the US Federal Reserve’s meeting. The telecom, banking, consumer goods and realty counters witnessed higher than average demand as the 20-stock Qatar Index settled 0.1% higher at 12,731.47 points, recovering from an intraday low of 12,641 points. The Arab individuals were seen net buyers in the market, whose year-to-date gains improved to 9.51%. The foreign individuals were increasingly bearish in the bourse, whose capitalisation saw about QR2bn or 0.27% jump to QR714.94bn, mainly on the back of midcap segments. The Islamic index was seen declining vis-a-vis gains in the other indices in the market, where the industrials and banking sectors together constituted about 66% of the total trading volume. The domestic funds’ weakened net selling had its influence in the bourse, which saw a total of 454,389 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR1.42mn changed hands across 73 deals. Nevertheless, local retail investors turned net profit takers in the market, which saw no trading of sovereign bonds. Total trade turnover and volumes were on the increase in the bourse, which saw no trading of treasury bills. The Total Return Index was up 0.1% to 26,078.19 points and All Share Index by 0.28% to 4,066.89 points, while Al Rayan Islamic Index (Price) was down 0.05% to 2,785.34 points. The telecom sector index gained 0.92%, banks and financial services (0.81%), consumer goods and services (0.78%) and realty (0.16%); while industrials declined 0.99%, insurance (0.27%) and transport (0.14%). Major gainers in the main market included QNB, Woqod, QLM, Ooredoo, Mesaieed Petrochemical Holding, QIIB, Widam Food and Qatar General Insurance and Reinsurance. In the venture market, Al Faleh Educational Holding saw its shares appreciate in value. Nevertheless, more than 65% of the traded constituents in the main market were in the red and included Qatar Islamic Insurance, Industries Qatar, Qamco, Qatari Investors Group, Commercial Bank, Qatar First Bank, Qatar National Cement, Gulf International Services, Ezdan and Mazaya Qatar. In the juniour bourse, Mekdam Holding saw its shares depreciate in value. The foreign funds turned net buyers to the tune of QR108.83mn compared with net sellers of QR13.78mn on June 13. The Arab individuals were net buyers to the extent of QR10.22mn against net sellers of QR9.01mn on Monday. The foreign individuals’ net buying grew marginally to QR6.95mn compared to QR6.33mn the previous day. The Arab institutions turned net buyers to the tune of QR0.73mn against no major net exposure on June 13. The domestic institutions’ net selling declined noticeably to QR54.2mn compared to QR71.76mn on Monday. However, Qatari individuals were net sellers to the extent of QR59.7mn against net buyers of QR67.62mn the previous day. The Gulf funds turned net profit takers to the tune of QR11.87mn compared with net buyers of QR19.84mn on June 13. The Gulf individuals were net sellers to the extent of QR0.96mn against net buyers of QR0.77mn on Monday. Total trade volume in the main market rose 3% to 156.73mn shares, value by 4% to QR701.65mn and transactions by 24% to 27,396. The insurance sector’s trade volume more than tripled to 3.07mn equities and value almost tripled to QR8.56mn on more than doubled deals to 321. The transport sector’s trade volume soared 50% to 6.84mn stocks, value by 54% to QR35.19mn and transactions by 44% to 1,273. The banks and financial services sector reported 11% expansion in trade volume to 45.07mn shares, 21% in value to QR382mn and 23% in deals to 14,450. However, the telecom sector’s trade volume plummeted 38% to 2.98mn equities and value by 3% to QR18.26mn, while transactions almost doubled to 1,678. There was 10% contraction in the consumer goods and services sector’s trade volume to 20.83mn stocks, 43% in value to QR42.86mn and 24% in deals to 1,533. The real estate sector’s trade volume was down 3% to 19.96mn shares, whereas value gained 1% to QR31.11mn and transactions by 38% to 1,822. The market witnessed less than 1% fall in the industrials sector’s trade volume to 57.98mn equities and 11% in value to QR183.67mn but on 23% growth in deals to 6,319. In the venture market, trade volumes were seen flat at 0.05mn stocks; even as value shrank 10.26% to QR0.35mn and transactions by 20% to 36.

The Middle East and North Africa (Mena), whose energy investments is slated to grow 9% over the next five years, is well-positioned to supply around 10% to 20% of the global hydrogen market by 2050, with the Gulf and North Africa set to become global export hubs catering for demand in Europe and south east Asia, according to Apicorp (the Arab Petroleum Investments Corporation). The multilateral lending institution's analysis shows that right across the region, blue and green hydrogen would dominate the emerging hydrogen markets in the near term. The report forecasts that hydrogen markets would start scaling up as the market foundations are established, and for the Mena region – the Gulf Co-operation Council or GCC and North Africa specifically – the focus would be on exporting low-carbon hydrogen to demand centres in Europe and south East Asia via ammonia shipments. “In the medium term, blue hydrogen proves to be a more attractive option to the Mena region," said Suhail Shatila, senior energy specialist at Apicorp. Blue hydrogen can be produced at a relatively low cost, and it would only slightly disrupt the existing business models of international and national oil companies, he said. "This is a central metric in the energy transition journey since hydrocarbon producers will play a key role in decarbonising the upstream oil and gas sector and help reach net-zero targets by mid-century,” he added. The global hydrogen demand reached 88mn tonnes per year in 2020 with 58% used for producing ammonia and methanol, and the remaining 42% for refining and industrial applications. The Mena constituted almost 10% of this hydrogen demand and almost all quantities were used as a feedstock for petrochemicals and refining activities. The report forecasted that the total planned and committed investments in the Mena region are expected to increase by 9% to exceed $879bn over the next five years – a $74bn increase from the $805bn estimate in last year’s five-year outlook. In the GCC, it said, the committed projects comprise around 45% of total energy investments – 50% higher than the Mena-wide average of 30%. Ramy al-Ashmawy, senior energy specialist at Apicorp, said the Mena region continues to progress in its unique energy transition path. The Mena countries shoulder the largest share of global investments in oil and gas going forward to ensure global energy security and avoid an impending super cycle that may severely hamper the world economy, according to him. At the same time, the region continues to invest in decarbonisation, renewables and clean energy as part of the long-term strategic vision for a low-carbon future underpinned by a greener, more balanced, and sustainable energy mix, he said. The report said energy diversification is at the top of the agenda, with several Mena countries integrating renewables in their generation mix as part of a shared policy objective to diversify the power mix with low-cost, low-carbon energy sources and bolster power supply security. The region is expected to add 5.6GW of installed capacity from renewables in 2022, nearly double the 3GW which came online in 2021. By 2026, the region is expected to add 33GW by installed capacity of renewables, with around 26GW as utility and distributed solar PV.  

Mirroring the global trends, retail inflation in Qatar showed an upward trend in May 2022 both on annualised and monthly basis, according to the official data. The country's cost of living, based on consumer price index inflation, shot up 5.18% year-on-year and 1.34% month-on-month in May 2022, said the figures released by the Planning and Statistics Authority. The increase in the country's general price level comes amidst an overall inflationary pressure in the global economy, which prompted the central banks to tighten their monetary policies, stoking fears of economic slowdown. Qatar's core inflation grew faster than the general CPI inflation both on a yearly and monthly basis respectively in May 2022. The core inflation (excluding housing and utilities) rose 5.21% and 1.53% year-on-year and month-on-month respectively in the review period. A recent Qatar Economic Outlook suggested that Qatar is slated to see imported and domestic inflationary pressures due to the rise in prices of basic commodities in global markets caused by the bottlenecks in commodity supply chains as well as the negative repercussions of expansionary financial and monetary policies. The index of recreation and culture, which has an 11.13% weight in the CPI basket, zoomed 30.79% and 7.3% on an annualised and monthly basis respectively in May this year. The food and beverages group, with a weight of 13.45% in the CPI basket, witnessed 5.85% and 3.3% growth year-on-year and month-on-month respectively this May. The index of housing, water, electricity and other fuels – with a weight of 21.17% in the CPI basket – saw 5.03% and 0.49% expansion on yearly and monthly basis respectively in May 2022. The miscellaneous goods and services, with a 5.65% weight, saw its index jump 3.51% on an annualised basis but fell 0.79% month-on-month in the review period. The index of transport, which has a 14.59% weight, was seen rising 1.34% year-on-year but was unchanged on a monthly basis in May 2022. The sector has the direct linkage to the dismantling of the administered prices in petrol and diesel as part of the government measures to lower the subsidies. In May 2022, the retail price of super, premium gasoline and diesel witnessed a 16.67%, 11.11% and 24.248% surge year-on-year respectively. On a monthly basis, the price of super, premium and diesel was flat. In the case of furniture and household equipment, which has a 7.88% weight in the CPI basket, the index rose 1.34% and 0.03% year-on-year and month-on-month respectively in May this year. The restaurants and hotels group, with a 6.61% weight, saw its index expand 0.58% and 0.38% year-on-year and month-on-month this May. Education, with a 5.78% weight, saw its index jump 0.48% on a yearly basis but was unchanged month-on-month in May 2022. However, the index of health, which has a 2.65% weight, was seen plummeting 3.14% on a yearly basis, although it was unchanged month-on-month in May 2022. Communication, which carries a 5.23% weight, saw its group index shrank 0.64% on an annualised basis. It was flat month-on-month respectively in the review period. The index of clothing and footwear, which has a 5.58% weight in the CPI basket, was seen declining 0.22% year-on-year but was up 0.11% month-on-month this May. The tobacco index, which has a 0.28% weight, was unchanged on yearly and monthly basis in the review period.

Foreign direct investment (FDI) into Qatar rebounded in 2021, attracting 82 projects, which represented a stupendous 273% growth compared to inbound project numbers in 2019, according to the fDi Report 2022. The Gulf country accounted for more than 6% of the total inbound FDI projects in the Middle East and Africa region, said the report, prepared by fDi Intelligence, a services from the Financial Times. The report said one of the most capital intensive investments in 2021 was the US-based Eat Just’s plans for a new $200mn commercial facility in Qatar. It will produce cell-based meat, with plans to eventually add capacity to also produce the company’s egg alternative product called Just Egg. Qatar also saw as many as 12 outbound FDI projects in 2021, which was more than 2% of the total outbound projects of 571 from the Middle East and Africa region, the report said. The number of FDI projects into Africa and the Middle East increased from 1,083 in 2020 to 1312 in 2021, a growth of 21%. The regional capital investment rose to $65.5bn and job creation jumped by 23%, it said. The Middle East experienced project growth of 45% during 2021, attracting more projects than it did in 2019. Africa, despite a small decline in the number of projects, experienced an increase in the value of announced projects to $38.9bn in 2021, a 24% increase from the previous year. The UAE remained the top destination for inbound projects in the region in 2021. It received 455 investments, accounting for 35% of total projects in the region and 16% of total job creation. Saudi Arabia had 126 inbound projects, accounting for about 10% of the total projects in the region. Among the notable inbound FDI projects into the Middle East and Africa region is the $3.5bn green ammonia project of India-based ACME Group coming up at the Duqm special economic zone in Oman. The large-scale facility will produce green hydrogen and green ammonia to export to demanding markets, such as Europe and Asia, by the end of 2022. On a region-wise performance, the report said FDI projects into Asia-Pacific increased by 10% in 2021 from a year earlier, with 2,551 projects announced capital investment into the region remained stable in the period, with a 0.7% increase from 2020 to $165.7bn. The outward capital investment also experienced an increase of 7% in 2021 from the previous year, as $160bn was invested by investors from the region. The number of FDI projects into Europe increased from 5,648 in 2020 to 6,259 in 2021, seeing a total increase of 11%. The region also saw a 16% increase in capital investment and a 24% increase in job creation from 2020 to 2021. In 2021 the total number of FDI projects into North America rose to 1,936, up 5% from 2020. The region also witnessed a 28% increase in capital investment to $99.5bn and a 16% rise in jobs to over 181,200 in the period.

Global factors such as 40-year high inflation in the US and lockdown in China continued to bludgeon bourses across the world, including the Qatar Stock Exchange, which on Monday plummeted 199 points on an across-the-board sell off, particularly in the industrials and banking sectors. The domestic institutions were increasingly net sellers as the 20-stock Qatar Index tanked 1.54% to 12,718.21 points, although it touched an intraday high of 12,914 points. About 87% of the traded constituents were in the red in the market, whose year-to-date gains were pared to 9.4%. The foreign funds turned bearish in the bourse, whose capitalisation saw about QR12bn or a 1.6% erosion to QR712.99bn, mainly on the back of mid and small cap segments. The Islamic index was seen declining slower than the other indices in the market, where the industrials and banking sectors together constituted about 65% of the total trading volume. The Arab individuals were seen net sellers in the bourse, which saw a total of 192,170 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR1.83mn changed hands across 19 deals. Nevertheless, local retail investors turned bullish in the market, which saw no trading of sovereign bonds. Total trade turnover and volumes were on the increase in the bourse, which saw no trading of treasury bills. The Total Return Index shed 1.54% to 26,051.02 points, the All Share Index by 1.52% to 4,055.65 points and the Al Rayan Islamic Index (Price) by 1.36% to 2,786.63 points. The industrials sector index tanked 1.93%, banks and financial services (1.63%), transport (1.21%), real estate (1.13%), telecom (0.89%), consumer goods and services (0.69%) and insurance (0.23%). Major shakers in the main market included Doha Insurance, QIIB, Qatar Industrial Manufacturing, Gulf Warehousing, Mesaieed Petrochemical Holding, QNB, Commercial Bank, Qatari German Medical Devices, Industries Qatar, Qamco, Gulf International Services, QLM, Ezdan and Nakilat. Nevertheless, Dlala, Qatar Islamic Insurance, Aamal Company, Qatar National Cement and Qatar General Insurance and Reinsurance were among the gainers in the main market. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares appreciate in value. The domestic institutions’ net selling expanded substantially to QR71.76mn compared to QR25.83mn on June 12. The foreign funds turned net sellers to the tune of QR13.78mn against net buyers of QR19.24mn the previous day. The Arab individuals were net sellers to the extent of QR9.01mn compared with net buyers of QR11.13mn on Sunday. However, Qatari individuals’ net buying increased significantly to QR67.62mn against QR4.04mn on June 12. The Gulf funds turned net buyers to the tune of QR19.84mn compared with net sellers of QR10.52mn the previous day. The foreign individuals’ net buying strengthened noticeably to QR6.33mn against QR2.49mn on Sunday. The Gulf individuals were net buyers to the extent of QR0.77mn compared with net profit takers of QR0.55mn on June 12. The Arab institutions continue to have no major net exposure for the second straight session. Total trade volume in the main market rose 4% to 152.49mn shares and value by 42% to QR673mn on almost doubled transactions to 22,145. The real estate sector’s trade volume more than doubled to 20.51mn equities and value also more than doubled to QR30.74mn on more than tripled deals to 1,321. The banks and financial services sector reported 61% surge in trade volume to 40.53mn stocks and 85% in value to QR316.61mn on more than doubled transactions to 11,781. The transport sector’s trade volume soared 21% to 4.55mn shares, value by 6% to QR22.86mn and deals by 40% to 881. The market witnessed 20% expansion in the telecom sector’s trade volume to 4.83mn equities and 88% in value to QR18.8mn on more than doubled transactions to 849. The consumer goods and services sector’s trade volume was up 9% to 22.11mn stocks and value by 69% to QR75.32mn on more than doubled deals to 2,025. However, the insurance sector saw 55% plunge in trade volume to 0.96mn shares and 55% in value to QR3mn but on 33% growth in transactions to 152. The industrials sector’s trade volume plummeted 28% to 58.01mn equities and value by 4% to QR205.67mn, whereas deals shot up 32% to 5,136. In the venture market, trade volumes were seen declining 85.29% to 0.05mn stocks, value by 83.26% to QR0.39mn and transactions by 70.59% to 45.    

Reflecting the global sentiments on higher-than-expected inflation in the US and the re-imposition of lockdown in China, the Qatar Stock Exchange on Sunday saw its key index tank 182 points and capitalisation erode QR8bn. A higher-than-average selling pressure, especially at the banking counter, led the 20-stock Qatar Index fall 1.39% to 12,917.54 points, although it touched an intraday high of 13,013 points. About 76% of the traded constituents were in the red in the market, whose year-to-date gains were at 11.11%. The Gulf institutions were seen net profit takers in the bourse, whose capitalisation saw 1.06% erosion to QR724.55bn, mainly on the back of large and midcap segments. The Islamic index was seen declining slower than the other indices in the market, where the industrials sector alone constituted about 56% of the total trading volume. The foreign institutions’ substantially weakened net buying also had its influence in the bourse, which saw a total of 30,930 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.21mn changed hands across 14 deals. Nevertheless, the Arab individuals were seen net buyers in the market, which saw no trading of sovereign bonds. Total trade turnover and volumes were on the decline in the bourse, which saw no trading of treasury bills. The Total Return Index shed 1.39% to 26,459.32 points, the All Share Index by 1.18% to 4,118.19 points and the Al Rayan Islamic Index (Price) by 1.13% to 2,824.96 points. The banks and financial services sector index tanked 1.51%, industrials (1.09%), consumer goods and services (0.69%), transport (0.68%), real estate (0.6%) and insurance (0.42%); while telecom gained 0.11%. Major shakers in the main market included Commercial Bank, Qatar Islamic Bank, Qatar First Bank, Qatar Industrial Manufacturing, Baladna, Doha Bank, Masraf Al Rayan, Qatari German Medical Devices, Industries Qatar, Qamco, Qatari Investors Group, QLM, Ezdan and United Development Company. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, Gulf International Services, Mannai Corporation, Gulf Warehousing, Qatar National Cement, Widam Food and United Development Company were among the gainers in the main market. The Gulf institutions turned net sellers to the tune of QR10.52mn compared with net buyers of QR22.94mn on June 9. The foreign institutions’ net buying decreased significantly to QR19.24mn against QR51.27mn the previous trading day. However, the Arab individuals were net buyers to the extent of QR11.13mn compared with net sellers of QR3.88mn last Thursday. Qatari individuals turned net buyers to the tune of QR4.04mn against net sellers of QR26.68mn on June 9. The foreign individuals’ net buying expanded marginally to QR2.49mn compared to QR2.09mn the previous trading day. The domestic funds’ net selling weakened markedly to QR25.83mn against QR45.33mn last Thursday. The Gulf individuals’ net profit booking eased perceptibly to QR0.55mn compared to QR0.84mn on June 9. The Arab institutions had no major net exposure against net buying to the tune of QR0.04mn the previous trading day. Total trade volume in the main market fell 20% to 145.97mn shares, value by 30% to QR479.65mn and transactions by 35% to 11,507. There was a 71% plunge in the transport sector’s trade volume to 3.76mn equities, 72% in value to QR21.62mn and 56% in deals to 630. The insurance sector’s trade volume plummeted 69% to 2.12mn stocks, value by 67% to QR6.68mn and transactions by 80% to 114. The market witnessed a 62% shrinkage in the real estate sector’s trade volume to 8.67mn shares, 56% in value to QR11.97mn and 56% in deals to 400. The banks and financial services sector’s trade volume tanked 38% to 25.11mn equities, value by 37% to QR171.33mn and transactions by 31% to 5,307. The telecom sector reported a 30% contraction in trade volume to 4.02mn stocks, 55% in value to QR10mn and 66% in deals to 380. However, the consumer goods and services sector’s trade volume soared 61% to 21.26mn shares and value by 18% to QR44.68mn, whereas transactions shrank 29% to 798. The industrials sector saw less than 1% rise in trade volume to 81.02mn equities but on 3% fall in value to QR213.36mn and 20% in deals to 3,878. In the venture market, trade volumes dipped 54.05% to 0.34mn stocks, value by 50.43% to QR2.33mn and transactions by 36.25% to 153.

Islamic equities were seen outperforming in the Qatar Stock Exchange, which gained a robust 2.34% amidst weakened trading volume this week. The foreign institutions were increasingly net buyers as the 20-stock Qatar Index shot up 2.34% this week which saw the Gulf International Services (GIS) work towards merging its subsidiary Amwaj with Shaqab. The domestic funds’ substantially weakened net selling also had its influence in the market this week which saw the Qatar Financial Centre’s purchasing managers’ index (PMI) find that Doha signal “record” improvement in the operational environment for the private sector in May this year. The transport, telecom, industrials and real estate counters witnessed higher than average demand this week which saw the PMI caution that inflationary pressure continues to mount in Qatar. The Arab institutions were increasingly net buyers this week which saw Masraf Al Rayan’s special purpose vehicle MAR Finance’s $4bn trust certificates get ‘(P)A1’ rating from the global credit rating agency Moody’s. The foreign individuals were also increasingly bullish this week which saw Estithmar Holding launch two new projects in the hospitality sector. The Gulf institutions continued to be net buyers but with lesser vigour this week which saw a total of 0.1mn Doha Bank-sponsored exchange traded fund QETF valued at QR1.3mn change hands across 60 transactions. More than 74% of the traded constituents in the main market extended gains this week which saw as many as 0.16mn Masraf Al Rayan-sponsored QATR worth QR0.45mn trade across 44 deals. The overall trading and turnover in the main market were on the decline this week, which saw the industrials and banking sectors together constitute about 59% of the total trade volume. The venture market also reported shallow trading this week which saw which saw a total of 0.19mn government bonds valued at QR1.86bn trade across two transactions in the money market. Market capitalisation was seen gaining more than QR5bn or 0.75% to QR732.28bn, mainly on mid and microcap segments this week, which saw no trading of treasury bills. The Total Return Index soared 2.34%, All Islamic Index by 3.78% and All Share Index by 1.18% this week. The transport sector index zoomed 4.93%, telecom (4.39%), industrials (3.12%), realty (2.85%), insurance (2.06%) and consumer goods and services (1.45%); while banks and financial services declined 0.4% this week. Major movers in the main market included Qatar Industrial Manufacturing, Qatar Insurance, GIS, Gulf Warehousing, Doha Insurance, QIIB, Qatar Islamic Bank, Doha Bank, Woqod, Masraf Al Rayan, Industries Qatar, Mesaieed Petrochemical Holding, Qamco, Barwa, Ezdan, Ooredoo, Nakilat and Milaha. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares appreciate in value this week. Nevertheless, QNB, Qatari German Medical Devices, Aamal Company, Dlala and Commercial Bank were among the losers in the main market this week. In the main market, the industrials sector accounted for 40% of the total trade volume, banks and financial services (19%), consumer goods and services (16%), real estate (14%), transport (6%), telecom (3%) and insurance (2%) this week. In terms of value, the banks and financial sector’s share was 39%, industrials (33%), consumer goods and services and transport (9% each), realty (6%), telecom and insurance (2% each) this week. The foreign funds’ net buying increased markedly to QR304.66mn compared to QR266.83mn a week ago. The foreign individuals’ net buying grew perceptibly to QR5.15mn against QR3.15mn the previous week. The Arab funds’ net buying rose marginally to QR1.72mn compared to QR1.01mn the week ended June 2. The domestic funds’ net profit booking declined substantially to QR77.1mn against QR305.38mn a week ago. However, Qatari individuals’ net selling grew markedly to QR280.08mn compared to QR244.16mn previous week. The Arab individuals’ net selling expanded noticeably to QR22.23mn against QR5.5mn the week ended June 2. The Gulf individuals’ net profit booking strengthened noticeably to QR7.07mn compared to QR0.22mn a week ago. The Gulf funds’ net buying weakened significantly to QR74.96mn against QR284.28mn the previous week. Total trade volume in the main market fell 17% to 901.81mn shares, value by 49% to QR3.14bn and transactions by 34% to 81,305. The banks and financial services sector’s trade volume plummeted 60% to 169.74mn equities, 70% in value to QR1.21bn and 52% in deals to 37,050. The consumer goods and services sector reported 36% plunge in trade volume to 144.81mn stocks, 51% in value to QR297.18mn and 30% in transactions to 6,914. The telecom sector’s trade volume tanked 30% to 24.88mn shares, value by 53% to QR75.2mn and deals by 31% to 3,573. There was a 5% decline in the transport sector’s trade volume to 55.85mn equities but on 16% jump in value to QR272.09mn amidst 19% lower transactions to 4,936. However, the real estate sector’s trade volume zoomed 66% to 126.05mn stocks, value by 52% to QR189.97mn and deals by 45% to 6,157. The market witnessed 44% expansion in the industrials sector’s trade volume to 361.92mn shares, 8% in value to QR1.03bn and 6% in transactions to 21,023. The insurance sector’s trade volume soared 26% to 18.56mn equities, value by 53% to QR66.51mn and deals by 15% to 1,652. The venture market saw 15.63% drop in trade volumes to 3.4mn stocks, 7.66% in value to QR22.31mn and 12.94% in transactions to 1,150.

Qatar's banks had the highest cover of 98.5% against Stage 3 bad loans in the Gulf Co-operation Council or GCC during the first quarter of 2022, according to Kamco Invest, a regional financial powerhouse. The GCC average coverage was 83.6% against Stage 3 bad loans, said Kamco Invest in a report. Bahraini banks were at 72.2% followed by Omani and the UAE-listed banks at 63.5% and 63.2%, respectively during the review period. The average share of bad loans (Stage 3 loans) on the GCC banks’ loan books remained stable quarter-on-quarter (q-o-q) at 4%. Non-performing loans for the UAE banks continued to remain the highest in the GCC at 5.9% of aggregate gross loans at the end of Q1-2022, which was 20bps (basis points) below Q4-2021 share. On the other hand, Kuwaiti banks reported the lowest bad loans on their books at 1.6% at the end of Q1-2022, in line with Q4-2021. The Stage 2 provision cover at the GCC level (excluding Saudi Arabian banks) stood at 14.2% in Q1-2022, a slight increase from 13.7% in Q4-2021 with the UAE showing the biggest cover of 15.9% while Qatari banks reported the smallest cover at this stage at 6.2%. Kamco Invest said the marginal increase in net interest income during Q1-2022 and an equivalent increase in average earning assets during the last four quarters resulted in flat net interest margin (NIM) for the aggregate GCC banking sector. NIM at 2.8% remained at one of the lowest levels over the last few quarters owing to benchmark rate cuts implemented last year by governments globally in order to boost economic activity and investments. In addition, the effects of the recent rate hikes is expected to be reflected starting from Q2-2022. NIM remained relatively stable across the board in the GCC during Q1-2022 as compared to the previous quarter. The NIM continued to remain the highest in the case of Saudi Arabian banks at 3.12% during Q1-2022 and it was the only market in the GCC to report NIM of over 3% in the GCC. Meanwhile, the report said expectations of aggressive rate hike by the US Fed this year, followed by higher rates next year is expected to have a positive impact on NIMs of the GCC banks. However, the impact of rate hikes is reflected with a lag of three to four quarters. In addition, the extent to replication of rate hikes by the GCC central banks against US Fed Fund rate hikes also affects the trajectory of NIMs in the GCC, according to the report. Nevertheless, despite some GCC central banks skipping rate hikes, the overall impact of a fed fund rate hike is "positive" on the aggregate NIM reported by the GCC banks.

The Qatar Stock Exchange on Thursday gained more than 134 points to inch towards 13,100 levels as the Gulf institutions turned bullish. A higher than average demand at the telecom and insurance counters led the 20-stock Qatar Index to surge 1.04% to 13,099.25 points, recovering from an intraday low of 12,981 points. About 58% of the traded constituents extended gains to investors in the market, whose year-to-date gains improved to 12.67%. The foreign individuals turned net buyers in the bourse, whose capitalisation saw QR4bn or 0.55% jump to QR732.28bn, mainly on the back of midcap segments. The Islamic index was seen gaining faster than the other indices in the market, where the industrials and banking sectors together constituted more than 66% of the total trading volume. The local retail investors’ weakened net selling had its influence in the bourse, which saw a total of 24,150 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.25mn changed hands across 15 deals. The Arab individuals’ net profit booking also had its say in the market, which saw a total of 0.19mn sovereign bonds valued at QR1.86bn trade across two transactions. Total trade turnover and volumes were on the decline in the bourse, which saw no trading of treasury bills. The Total Return Index rose 1.04% to 26,831.51 points, the All Share Index by 0.72% to 4,167.5 points and the Al Rayan Islamic Index (Price) by 1.13% to 2,857.15 points. The telecom sector index soared 2.64%, insurance (1.33%), transport (1.03%), industrials (0.79%), banks and financial services (0.67%) and consumer goods and services (0.25%); while real estate declined 0.59%. Major gainers in the main market included Gulf International Services, Qatar Electricity and Water, Ooredoo, Milaha, Qatar Islamic Bank, Qatar Oman Investment, Qatar Insurance, Al Khaleej Takaful and Qatar Islamic Insurance; while Al Faleh Educational Holding was the mover in the venture market. Nevertheless, Al Meera, Zad Holding, Mannai Corporation, Barwa, Baladna and QNB were among the losers in the main market. In the juniour bourse, Mekdam Holding saw its shares depreciate in value. The Gulf institutions turned net buyers to the tune of QR22.94mn compared with net sellers of QR14.99mn on June 8. The foreign individuals were net buyers to the extent of QR2.09mn against net sellers of QR2.47mn on Wednesday. Qatari individuals’ net selling declined substantially to QR26.68mn compared to QR75.87mn the previous day. The Arab individuals’ net selling weakened markedly to QR3.88mn against QR11.52mn on June 8. The Gulf individuals’ net profit booking shrank notably to QR0.84mn compared to QR2.27mn on Wednesday. However, the domestic funds turned net sellers to the extent of QR45.33mn against net buyers of QR30.24mn the previous day. The foreign institutions’ net buying decreased significantly to QR51.27mn compared to QR76.84mn on June 8. The Arab institutions’ net buying eased marginally to QR0.04mn against QR0.05mn on Wednesday. Total trade volume in the main market fell 13% to 182.9mn shares and value by 2% to QR681.08mn, while transactions rose 12% to 17,661. The consumer goods and services sector’s trade volume plummeted 71% to 13.21mn equities, value by 51% to QR37.92mn stocks and deals by 43% to 1,120. There was a 17% shrinkage in the transport sector’s trade volume to 13.1mn stocks but on 12% increase in value to QR78.17mn and 63% in transactions to 1,435. The banks and financial services sector’s trade volume shrank 6% to 40.81mn shares and value by 2% to QR271.04mn, whereas deals were up 8% to 7,667. The market witnessed a 1% rise in the real estate sector’s trade volume to 22.53mn equities, 26% in value to QR27.16mn and 23% in transactions to 1,106. However, the insurance sector’s trade volume soared 87% to 6.83mn stocks and value by 54% to QR20.4mn on more than doubled deals to 570. The industrials sector reported an 11% surge in trade volume to 80.66mn shares, 6% in value to QR220.05mn and 38% in transactions to 4,864. The telecom sector’s trade volume was up 5% to 5.76mn equities, value by 44% to QR22.34mn and deals by 37% to 1,106. In the venture market, trade volumes tanked 13.95% to 0.74mn stocks, value by 28.9% to QR4.7mn and transactions by 19.46% to 240.