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The Qatar Stock Exchange on Sunday opened the week weak despite strong buying interests of Arab and local retail investors. The foreign institutions’ net buying weakened substantially as the 20-stock Qatar Index fell 67 points or 0.5% to 13,330.31 points, although it touched an intraday high of 13,413 points. The Islamic index was seen declining faster than the other indices in the market, whose year-to-date gains were at 14.66%. More than 67% of the traded constituents were in the red the market, whose capitalisation saw about QR4bn or 0.51% increase to QR753.99bn, mainly on the back of mid and small cap segments. A higher than average selling pressure was visible in the consumer goods, transport and telecom counters in the bourse, where the industrials and realty sectors together accounted for more than 66% of the trading volume. The domestic funds’ net selling weakened significantly in the bourse, which saw a total of 65,020 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR821,277 changed hands across 93 deals. The Gulf individuals were increasingly net buyers, albeit at lower levels, 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 0.5% to 27,198.17points, the All Share Index by 0.57% to 4,265.99 points and the Al Rayan Islamic Index (Price) by 0.69% to 2,882.05 points. The consumer goods and services sector index shrank 1.39%, transport (1.3%), telecom (1.07%), banks and financial services (0.73%) and realty (0.5%); whereas insurance and industrials gained 0.21% and 0.13% respectively. Major losers in the main market included Medicare Group, Qamco, Qatar National Cement, Mazaya Qatar, QNB, Alijarah Holding, Qatari German Medical Devices, Gulf International Services, Ezdan, Nakilat and Ooredoo. In the venture market, Al Faleh Educational Holding saw its shares depreciate in value. Nevertheless, Inma Holding, Mannai Corporation, Aamal Company, Qatari Investors Group, QLM, Dlala, Mesaieed Petrochemical Holding and Gulf Warehousing were among the gainers in the main market. In the juniour bourse, Mekdam Holding saw its shares appreciate in value. The foreign institutions’ net buying decreased significantly to QR26.59mn compared to QR305.7mn on March 17. The Gulf institutions’ net buying declined substantially to QR2.7mn against QR117.67mn the previous trading day. However, the Arab individuals turned net buyers to the tune of QR15.36mn compared with net sellers of QR20mn last Thursday. Qatari individuals were net buyers to the extent of QR4.4mn against net sellers of QR140.21mn on March 17. The Gulf individuals’ net buying grew marginally to QR1.35mn compared to QR1.07mn the previous trading day. The domestic funds’ net selling weakened considerably to QR50.33mn against QR263.01mn last Thursday. The foreign individuals’ net selling eased perceptibly to QR0.07mn compared to QR1.24mn on March 17. The Arab institutions had no major net exposure against net buyers to the tune of QR0.03mn the previous trading day. Total trade volume in the main market fell 30% to 247.94mn shares, value by 59% to QR625.56mn and transactions by 42% to 12,955. The transport sector’s trade volume plummeted 72% to 2.86mn equities, value by 72% to QR13.8mn and deals by 52% to 424. The banks and financial services sector reported a 71% plunge in trade volume to 35.47mn stocks, 85% in value to QR125.72mn and 66% in transactions to 4,135. The telecom sector’s trade volume tanked 65% to 1.95mn shares, value by 75% to QR5.53mn and deals by 54% to 242. The market witnessed a 37% shrinkage in the consumer goods and services sector’s trade volume to 41.57mn equities, 36% in value to QR90.42mn and 17% in transactions to 1,648. The insurance sector’s trade volume shrank 22% to 2.3mn stocks and value by 13% to QR6.97mn, while deals were up 8% to 310. However, the real estate sector reported a 26% surge in trade volume to 49.83mn shares but on a 16% contraction in value to QR57.36mn despite 34% higher transactions at 1,595. The industrials sector’s trade volume was up 5% to 113.96mn equities, whereas value eroded 13% to QR325.77mn and deals by 18% to 4,601. The venture market saw an 80.95% contraction in trade volumes to 0.04mn stocks, 73.05% in value to QR0.38mn and 65.82% in transactions to 27.

Global insurance rating agency AM Best has revised the outlook of the insurance sector in the Gulf Co-operation Council (GCC) to "stable" from "negative", driven by rallying oil prices driving economic recovery across the region, increased opportunities for the insurance sector growth and recovering financial markets. In late-February 2022, oil prices hit an eight-year high on Ukraine-Russian crisis. For the first time since 2014, the price of Brent crude exceeded $100 per barrel, in sharp contrast to the lows in early 2020 of $20. Rising oil prices are attributed to supply concerns amidst excess demand for oil, as the countries emerge from periods of pandemic-related measures, it said, adding the economies of the GCC are highly sensitive to oil price changes, and there is a correlation between oil prices and growth in GDP (gross domestic product). Sustained higher oil prices are expected to have a substantial impact on regional economic recovery and public spending capacity across the GCC. As at February 2022, the price of oil on a per barrel basis largely exceeded the estimated fiscal breakeven points of the GCC. "The increased economic activity and greater governmental fiscal manoeuvrability are positives for the insurance markets of the region," it said. The rating agency expects the strengthening economic fundamentals to directly contribute to the demand for insurance products in the near term. Many insurance segments in the GCC observed healthier premium growth year-on-year over the first half of 2021. For many insurers in the GCC, there has historically been at least a partial reliance on public spending -- notably on infrastructure projects—for premium growth opportunities. "A substantial proportion of commercial property and engineering risks underwritten in the GCC are linked to government-backed initiatives," it said. Furthermore, these government-related contracts have often been highly profitable for the region’s insurers, providing strong levels of inward reinsurance commission from extensive reinsurance participation. Outside of the commercial risks segments, as economic activity increases, the demand for insurance protection (particularly in core classes such as motor and medical) will also likely increase, according to AM Best. On recovering financial markets, it said insurers in the region often carry higher-risk investment portfolios, holding a greater proportion of equity and real estate assets compared with developed market counterparts, in part as a long-term inflation hedge. This exposed balance sheets to heightened volatility in early 2020, when the GCC equity markets fell by as much as 30%, and fair-value losses were booked. "However, companies in the region were largely able to absorb these losses owing to the sufficient capital buffers in place. It said merger and acquisition (M&A) is becoming an increasing feature in the GCC insurance markets, which are" fragmented and competition is widespread." "Further consolidation could be seen as a tailwind for the GCC’s insurance markets, potentially improving market profitability by reducing pricing competition, driving operational efficiencies from economies of scale and providing inorganic growth opportunities," it said. However, extensive M&A activity at a level sufficient to alter the competitive landscape may only follow regulatory intervention, for example, from the imposition of increased minimum capital requirements.    

The uncertainly over the simmering Ukraine-Russia crisis had an overarching influence on the Gulf bourses, including the Qatar Stock Exchange, which lost sizeable 235 points in key index and QR11bn in capitalisation this week. The real estate and industrials counters witnessed higher selling pressure as the 20-stock Qatar Index tanked 1.73% this week, which otherwise saw global oil prices strengthen and the US Federal Reserve hike the reference benchmark rate by 0.25%. The domestic institutions increasingly squared off their position this week which Standard and Poor opine that Qatar could gain from Europe’s diversification from Russian gas. The Arab individuals were increasingly net profit takers this week which saw the Qatar Central Bank increase the repo rate, following the US Fed’s move. More than 57% of the traded constituents were in the red this week which saw Mesaieed Petrochemical Holding (MPHC) earmark QR1.5bn capital expenditure for 2022-26. The foreign individuals were also seen increasingly net sellers this week which saw the Qatar Financial Centre develop a sustainable sukuk and bonds framework, the first of its kind in the Gulf region. The Islamic index was seen declining faster than the other indices this week, which saw a total of 191,669 Doha Bank-sponsored exchange traded fund QETF valued at QR2.58mn change hands across 162 transactions. Nevertheless, the foreign funds were increasingly net buyers this week which saw as many as 79,372 Masraf Al Rayan-sponsored QATR worth QR234,577 trade across 15 deals. Market capitalisation was seen eroding 1.4% to QR757.89bn, mainly on large cap segments this week, which saw the industrials and banking sectors together constitute about 63% of the trade volume. The Total Return Index shrank 1.12%, All Share Index by 0.78% and All Islamic Index by 2.42% this week which nevertheless saw total trading volumes and value on the decline. The realty sector index plummeted 5.68%, industrials (2.64%), telecom (0.75%) and insurance (0.44%); while transport gained 1.22% and consumer goods and services (0.59%). The banks and financial services sector index was rather flat this week which saw Qatar’s core inflation rise faster than the general consumer price index this February. Major losers in the main market included Qatar First Bank, Barwa, MPHC, Qamco, Qatar Electricity and Water, Commercial Bank, Doha Bank, Qatari German Medical Devices, Doha Insurance, Qatar General Insurance and Reinsurance, Vodafone Qatar and United Development Company; while in the venture market, it was Mekdam Holding this week which saw no trading of sovereign bonds. Nevertheless, Inma Holding, Dlala, Al Khaleej Takaful, Qatar National Cement, QLM, QIIB, Masraf Al Rayan, Medicare Group, Qatari Investors Group and Nakilat were among the gainers in the main market; whereas Al Faleh Educational Holding saw its shares appreciate in value this week which saw no trading of treasury bills. In the main market, the industrials sector accounted for 36% of the total trade volume, banks and financial services (27%), consumer goods and services (17%), real estate (16%), telecom and transport (2% each), and insurance (1%) this week. In terms of value, the banks and financial sector’s share was 46%, industrials (33%), consumer goods and services (9%), realty (7%), and transport and telecom (2% each), and insurance (1%) this week. The domestic funds’ net selling increased substantially to QR872.72mn against QR477.92mn the week ended March 10. The Arab individuals’ net selling grew noticeably to QR11.2mn compared to QR6.84mn the previous week. The foreign individuals’ net profit booking expanded perceptibly to QR6.9mn against QR6.09mn a week ago. The Arab funds turned net sellers to the tune of QR0.18mn compared with net buyers of QR10.63mn the week ended March 10. However, the foreign funds’ net buying rose significantly to QR838.43mn against QR798.38mn the previous week. The Gulf institutions’ net buying increased markedly to QR421.86mn compared to QR353.9mn a week ago. The Gulf individuals were net buyers to the extent of QR2.8mn against net sellers of QR10.66mn the week ended March 10. Qatari individuals’ net profit booking declined drastically to QR372.09mn compared to QR661.32mn the previous week. Total trade volume in the main market fell 8% to 1.58bn shares and value by 5% to QR5.43bn, while transactions rose 9% to 98,884. The real estate sector’s trade volume soared 75% to 256.65mn equities, value by 47% to QR380mn and deals by 48% to 9,160. The banks and financial services sector reported 71% surge in trade volume to 439.11mn stocks, 37% in value to QR2.52bn and 46% in transactions to 44,797. However, the insurance sector’s trade volume plummeted 56% to 16.94mn shares and value by 48% to QR54.01mn, while deals shot up 22% to 1,314. The consumer goods and services sector saw 42% plunge in trade volume to 283.9mn equities, 24% in value to QR496.39mn and 21% in transactions to 8,443. There was 33% shrinkage in the telecom sector’s trade volume to 25.34mn stocks and 7% in value to QR91.28mn but on 13% growth in deals to 3,650. The industrials sector’s trade volume tanked 25% to 577.8mn shares, value by 33% to QR1.79bn and transactions by 19% to 28,594. The market witnessed 7% contraction in the transport sector’s trade volume to 24.58mn equities but on less than 1% jump in value to QR116.51mn despite 12% lower deals at 2,926. In the venture market, trade volumes declined 64.06% to 0.69mn stocks, value by 74.1% to QR5.24mn and transactions by 52.28% to 220.    

Growth prospects remain robust as the Gulf Cooperation Council (GCC) embraces rate hikes, following the US Fed's 0.25% hike in the key rate, according to Oxford Economics. "The GCC currency dollar pegs require regional central banks to move in tandem (although Kuwait has a bit more flexibility) and indeed regional central banks have already matched the latest rate rise," Oxford Economics said in the latest report. The combination of stronger growth – the GCC will be one of only two regions globally to grow faster in 2022 than in 2021 – and elevated inflation, means moderate tightening in the region seems timely, unlike during the previous cycle. "The resulting rise in financing costs should not pose an immediate risk to growth, but it may dampen the non-oil recovery beyond 2022 even though the region should continue to expand," it said. Oxford’s assessment, which ranks the GCC countries on ten metrics, shows Bahrain, Oman and, to some extent Qatar, may face some headwinds, with Saudi Arabia the least affected. "The rise in short-term rates will lift the cost of credit and reduce lending volumes to businesses and households, but the impact will probably only be felt in 2023," the report said, adding this will probably lead to softer spending, while also cooling regional housing markets. The ascent from historically low levels comes at an opportune time given high oil prices and improving financial positions, which underpin strong demand outlook in the near-term, but also against the backdrop of rising inflation. The underlying strength of the GCC economies implies higher rates are timely as the region braces for more inflation. Although dollar pegs have shielded the GCC region from rising import costs to some extent, the spike in energy and food prices (the two main drivers of price pressures over the past year) will result in a higher near-term peak as it feeds through to regional prices, Oxford Economics said. "We see upside risks to our current 2022 forecast for the GCC inflation of 2.7%, though we believe it should still fall back below 2% in 2023," Oxford Economics said. Crucially, interest rates will remain below 2019 levels into 2023 and they will settle below historical peaks, it said. Additionally, regional sovereign balance sheets are stronger today than they were entering the last tightening cycle, which should contain funding pressures for the regional borrowers. Fiscal deficits are turning into surpluses (except in Bahrain), reducing financing needs and facilitating rebuilding of forex reserves. And all GCC countries will run external surpluses (in double-digits as proportion of GDP except Bahrain and Oman), sustaining appetite for regional assets. "This supports our view that rate hikes should not cloud the growth outlook too much," the report said.    

Strengthened oil prices lifted the sentiments on the Qatar Stock Exchange, whose key index yesterday gained 118 points to inch near 13,400 levels and capitalisation expanded about QR7bn. The foreign and Gulf institutions were increasingly bullish as the 20-stock Qatar Index shot up 0.89% to 13,397.57 points, recovering from an intraday low of 13,283 points. The Islamic index outperformed the other indices in the market, whose year-to-date gains were at 15.24%. More than 67% of the traded constituents extended gains in the market, whose capitalisation saw 0.88% increase to QR757.89bn, mainly on the back of large and small cap segments. The industrials and consumer goods counters witnessed higher than average demand in the bourse, where the industrials and banking sectors together accounted for about 65% of the trading volume. Nevertheless, domestic funds and local retail investors were increasingly net sellers in the bourse, which saw a total of 89,480 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR636,439 changed hands across 55 deals. The Arab institutions’ net buying weakened marginally 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 rose 1.07% to 27,335.4 points, the All Share Index by 0.89% to 4,290.59 points and the Al Rayan Islamic Index (Price) by 1.49% to 2,902.15 points. The industrials sector index zoomed 2.82%, consumer goods and services (2.34%), real estate (0.38%), telecom (0.16%), transport (0.14%) and banks and financial services (0.13%); while insurance declined 0.15%. Major gainers in the main market included Investment Holding Group, Zad Holding, Qatar Electricity and Water, Industries Qatar, Mesaieed Petrochemical Holding, Masraf Al Rayan, Dlala, Qatar Oman Investment, Salam International Investment, Woqod, Baladna, Al Meera, Qamco, QLM and Ezdan. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares appreciate in value. Nevertheless, Doha Insurance, Commercial Bank, Qatari German Medical Devices, Qatar Cinema and Film Distribution and Mazaya Qatar were among the losers in the main market. The foreign institutions’ net buying increased significantly to QR305.7mn against QR152.3mn on March 16. The Gulf institutions’ net buying increased substantially to QR117.67mn compared to QR54mn the previous day. However, the domestic funds’ net selling grew considerably to QR263.01mn against QR116.71mn on Wednesday. Qatari individuals’ net profit booking rose drastically to QR140.21mn compared to QR98.8mn on March 16. The Arab individuals turned net sellers to the tune of QR20mn against net buyers of QR8.84mn the previous day. The foreign individuals’ net selling strengthened marginally to QR1.24mn compared to QR1.15mn on Wednesday. The Gulf individuals’ net buying declined perceptibly to QR1.07mn against QR1.43mn on March 16. The Arab institutions’ net buying eased marginally to QR0.03mn compared to QR0.1mn the previous day. Total trade volume in the main market rose 28% to 355.02mn shares, value by 75% to QR1.53bn and transactions by 8% to 22,494. The transport sector’s trade volume more than doubled to 10.26mn equities and value almost tripled to QR48.99mn on 61% increase in deals to 885. There was a 54% surge in the insurance sector’s trade volume to 2.95mn stocks, 44% in value to QR8mn and 78% in transactions to 287. The banks and financial services sector’s trade volume soared 48% to 121.4mn shares and value more than doubled to QR8623.98mn on a 21% growth in deals to 12,040. The consumer goods and services sector’s trade volume shot up 48% to 66.36mn equities and value more than doubled to QR141.31mn on a 58% jump in transactions to 1,981. The market witnessed a 33% expansion in the telecom sector’s trade volume to 5.57mn stocks and 34% in value to QR22.19mn but on a 33% shrinkage in deals to 526. The real estate sector’s trade volume shot up 18% to 39.46mn shares and value by 19% to QR68.65mn, whereas transactions shank 44% to 1,188. The industrials sector reported a 2% gain in trade volume to 109.03mn equities and 24% in value to QR375.97mn but on an 8% dip in deals to 5,587. The venture market saw seven-fold growth in trade volumes to 0.21mn stocks and more than five-fold in value to QR1.41mn on more than quadrupled transactions to 79.    

Reflecting the global sentiments over the rising Covid-19 cases in China, the Qatar Stock Exchange Tuesday plunged 234 points and its key index settled below 13,300 levels and capitalisation eroded QR12bn. The foreign funds’ increased net buying notwithstanding, the 20-stock Qatar Index tanked 1.74% to 13,236.76 points, although it touched an intraday high of 13,464 points. The industrials and real estate counters witnessed higher than average selling pressure in the market, whose year-to-date gains were at 13.86%. The Islamic index was seen declining faster than the other indices in the market, whose capitalisation saw 1.62% decline to QR750.17bn, mainly on the back of large and midcap segments. The foreign individuals were seen net profit takers in the bourse, where the industrials and banking sectors together accounted for more than 71% of the trading volume. More than 76% of the traded constituents were in the red in the bourse, which saw a total of 15,250 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR45,040 changed hands across five deals. The Gulf institutions’ net buying weakened substantially 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 1.58% to 26,917.08points, Al Rayan Islamic Index (Price) by 2.26% to 2,860.87 points and All Share Index by 1.27% to 4,237.36 points. The industrials sector index tanked 3.62%, real estate (3.23%), consumer goods and services (0.67%), banks and financial services (0.42%), telecom (0.3%) and transport (0.23%); while insurance index gained 0.16%. Major losers in the main market included Qatar Electricity and Water, Dlala, Qamco, Mesaieed Petrochemical Holding, Barwa, Commercial Bank, Inma Holding, Qatari German Medical Devices, Al Meera, Baladna, Qatar National Cement, Industries Qatar, Aamal Company, Gulf International Services, QLM, Ezdan and Mazaya Qatar. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, Qatar Cinema and Film Distribution, Qatar Industrial Manufacturing, Al Khaleej Takaful, Investment Holding Group and Widam Food were among the gainers in the main market. The foreign individuals turned net sellers to the tune of QR18.03mn compared with net buyers of QR3.16mn on March 14. The Gulf institutions’ net buying declined substantially to QR26.4mn against QR160.82mn the previous day. However, the foreign institutions’ net buying grew perceptibly to QR195.28mn compared to QR190.27mn on Monday. The Arab individuals turned net buyers to the tune of QR18.19mn against net sellers of QR23.43mn on March 14. The Arab funds were net buyers to the extent of QR0.27mn compared with no major net exposure the previous day. The Gulf individuals turned net buyers to the tune of QR0.09mn against net profit takers of QR0.61mn on Monday. The domestic funds’ net selling decreased markedly to QR200.77mn compared to QR226.01mn on March 14. Qatari individuals’ net profit booking weakened drastically to QR21.43mn against QR104.17mn the previous day. Total trade volume in the main market fell 39% to 220.47mn shares, value by 24% to QR913.51mn and transactions by 20% to 18,085. The real estate sector’s trade volume plummeted 71% to 25.33mn equities, value by 63% to QR42.35mn and deals by 55% to 1,231. There was 66% plunge in the insurance sector’s trade volume to 1.28mn stocks, 66% in value to QR4.49mn and 51% in transactions to 144. The banks and financial services sector’s trade volume tanked 42% to 54.65mn shares, value by 31% to QR403.27mn and deals by 22% to 7,865. The consumer goods and services sector reported 34% shrinkage in trade volume to 28.13mn equities, 47% in value to QR45.56mn and 38% in transactions to 1,116. The transport sector’s trade volume shrank 33% to 3.44mn stocks and value by 27% to QR17.36mn, whereas deals grew 10% to 638. The market witnessed 17% contraction in the industrials sector’s trade volume to 102.87mn shares but on 2% jump in value to QR375.22mn amidst 11% lower transactions at 5,738. However, the telecom sector’s trade volume was up 6% to 4.77mn equities and value by 72% to QR25.26mn on more than doubled deals to 1,353. The venture market reported 46.15% decline in trade volumes to 0.07mn stocks, 42.98% in value to QR0.65mn and 46.51% in transactions to 23.

The core inflation in Qatar's grew faster than the general consumer price index (CPI) inflation year-on-year in February 2022, according to the official statistics. The CPI of January 2022 excluding “housing, water, electricity, gas and other fuels, surged 4.82% year-on-year; while the general CPI inflation rose 3.99% in the review period, said the figures released by the Planning and Statistics Authority. Qatar's cost of living, based on CPI inflation, rose on a yearly basis this February mainly on higher expenses towards food, transport, recreation and clothing. A recent Qatar Economic Outlook suggested that Qatar is expected 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. On a monthly basis, the country's CPI inflation was down 0.26%; while core inflation fell 0.62% in February 2022. The index of recreation and culture, which has an 11.13% weight in the CPI basket, soared 22.16% year-on-year even as it shrank 3.37% month-on-month in February 2022. The food and beverages group, with a weight of 13.45% in the CPI basket, witnessed a 6.92% growth on a yearly basis but was down 0.34% on monthly basis in February 2022. The index of transport, which has a 14.59% weight, was seen shooting up 4.94% year-on-year but fell 0.98% on monthly basis this February. 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 February 2022, the retail price of super, premium gasoline and diesel witnessed a huge 55.35%, 41.38% and 41.38% surge year-on-year respectively. On a monthly basis, the price of super and diesel was flat but that of premium went up 2.5%. Miscellaneous goods and services, with a 5.65% weight, saw its index jump 3.33% and 0.49% year-on-year and month-on-month in February 2022. The index of clothing and footwear, which has a 5.58% weight in the CPI basket, was seen gaining 3.32% and 0.23% on yearly and monthly basis respectively in February 2022. Communication, which carries a 5.23% weight, saw its group index rise 0.31% year-on-year but was unchanged month-on-month respectively in the review period. Education, with a 5.78% weight, saw its index jump 0.48%on a yearly basis but was unchanged month-on-month this February. In the case of furniture and household equipment, which has a 7.88% weight in the CPI basket, the index grew 0.41% and 0.01% year-on-year and month-on-month respectively in January this year. The index of health, which has a 2.65% weight, plunged 3.09% on a yearly basis although it was flat month-on-month in February 2022. The restaurants and hotels group, with a 6.61% weight, tanked 2.45% year-on-year but was up 0.19% on a monthly basis this February. The index of housing, water, electricity and other fuels – with a weight of 21.17% in the CPI basket – saw 0.55% and 1.36% surge on yearly and monthly basis respectively this February. The tobacco index, which has a 0.28% weight, was unchanged on yearly and monthly basis in the review period.    

Global factors continued to play spoilsport in the Gulf bourses, including the Qatar Stock Exchange, which lost more than 18 points. The strong buying interests of foreign and Gulf funds notwithstanding, the 20-stock Qatar Index declined 0.13% to 13,470.86 points, recovering from an intraday low of 13,398 points. The real estate, industrials and consumer goods counters witnessed higher than average selling pressure in the market, whose year-to-date gains were at 15.87%. The Islamic index was seen declining faster than the main barometer in the market, whose capitalisation saw a marginal QR16mn or 0.02% increase to QR762.52bn, mainly on the back of microcap segments. Both domestic funds and local retail investors were increasingly net sellers in the market, where the industrials and consumer goods sectors together accounted for more than 46% of the trading volume. The Arab individuals were seen net profit takers in the bourse, which saw a total of 55,515 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR695,289 changed hands across 17 deals. The Gulf retail investors turned bearish, albeit at lower levels, in the market, which saw no trading of sovereign bonds. Total trade turnover grew amidst lower volumes in the bourse, which saw no trading of treasury bills. The Total Return Index was down 0.01% to 27,348.3 points and Al Rayan Islamic Index (Price) by 0.94% to 2,927.16 points, while All Share Index rose 0.17% to 4,292.16 points. The real estate sector index tanked 2.11%, industrials (1.1%) and consumer goods and services (0.76%); whereas banks and financial services gained 0.99%, telecom (0.39%), insurance (0.32%) and transport (0.19%). Major losers in the main market included Barwa, Al Meera, Investment Holding Group, Salam International Investment, Doha Bank, Industries Qatar, Aamal Company, Mesaieed Petrochemical Holding, Qamco and Al Khaleej Takaful Group. Nevertheless, Gulf International Services, QLM, QNB, Inma Holding, Qatar Islamic Insurance, Commercial Bank and Qatar National Cement 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 funds’ net selling increased significantly to QR226.01mn compared to QR66.22mn on March 13. Qatari individuals’ net profit booking grew drastically to QR104.17mn against QR7.47mn the previous day. The Arab individuals turned net sellers to the tune of QR23.43mn compared with net buyers of QR5.21mn on Sunday. The Gulf individuals were net sellers to the extent of QR0.61mn against net buyers of QR0.81mn on March 13. The foreign individuals’ net buying weakened noticeably to QR3.16mn compared to QR10.37mn the previous day. However, the foreign institutions turned net buyers to the tune of QR190.27mn against net sellers of QR5.11mn on Sunday. The Gulf institutions’ net buying expanded considerably to QR160.82mn compared to QR62.98mn on March 13. The Arab institutions had no major net exposure against net profit takers of QR0.57mn the previous day. Total trade volume in the main market fell 12% to 360.54mn shares, while value rose 31% to QR1.21bn and transactions by 51% to 22,500. The consumer goods and services sector’s trade volume plummeted 58% to 42.92mn equities, value by 47% to QR85.23mn and deals by 22% to 1,794. There was 45% plunge in the insurance sector’s trade volume to 3.82mn stocks, 42% in value to QR13.25mn and 32% in transactions to 291. The telecom sector’s trade volume tanked 28% to 4.51mn shares, while value shot up 16% to QR14.69mn and deals by 50% to 593. The market witnessed 8% shrinkage in the industrials sector’s trade volume to 123.93mn equities but on 1% jump in value to QR368.03mn and 35% in transactions to 6,435. However, the transport sector’s trade volume almost tripled to 5.17mn stocks and value more than doubled to QR23.84mn on more than doubled deals to 579. The real estate sector reported 20% surge in trade volume to 86.56mn shares, 21% in value to QR115.82mn and 48% in transactions to 2,763. The banks and financial services sector’s trade volume was up 7% to 93.64mn equities and value more than doubled to QR586.96mn and deals also more than doubled to 10,045. The venture market reported 50% contraction in trade volumes to 0.13mn stocks, 35.59% in value to QR1.14mn and 24.56% in transactions to 43.    

The Qatar Stock Exchange (QSE) is in talks with an asset manager to launch an ESG (environment, social and governance) fund that will eventually incentivise companies to better embrace the sustainability framework, as Doha strives to become an investment destination of choice for ESG sensitive investors globally. "We are now working on potentially launching a fund here in Qatar to incentivise everybody to pay more attention to ESG aspects," QSE director (Products and Market Development) Mohsin Mujtaba said without divulging more details. He said for the last six years, ever since the ESG guidelines was launched, the focus has been more on the corporate side, encouraging them to disclose more. As much as 30% of the listed companies are actively reporting ESG data and 43% of them are rated by global data providers, he said, adding 90% of the market-capitalisation is rated, which according to him is "a good achievement" in short span of time. "It is becoming difficult for the companies to sit on the sidelines and say we will wait unless there is standard guideline," he said, adding ESG is the future of investing in Qatar. "We do recognise that we will not be the largest market in the region, but we want to be the investment destination of choice for ESG sensitive investments globally," Mujtaba told a Bloomberg's Middle East ESG Series. From a regulatory point of view, he said the bourse has initiated talks with large asset owners who are fully behind the ESG index, which was launched last year in collaboration with MSCI Inc, a leading provider of critical decision support tools and services for the global investment community. The joint index was designed to identify the top 20 securities within the MSCI Qatar IMI Index that demonstrate the best ESG profile. Responding to the growing demand for sustainable investment tools from investors, the MQ 20 ESG Index is the first ESG index on the Qatar equity market and marks the first co-operation between QSE and MSCI in equity indices. "We are now working with asset owners to see how much capital can be invested locally into companies with the ESG filter," Mujtaba said. Stressing that the ESG should be more seen as an risk management tool than a mere reporting framework for investor relations purposes; he said such a strategy would help companies adopt ESG into their culture to better manage the risks of portfolio with sustainability factors. Mujtaba said at present, ESG reporting is voluntary (otherwise 100% of the listed companies would have reported compared to 30%), but "at some point, we are getting to a situation where there are conversations now happening with the regulator on when to make it mandatory." In 2016, the QSE joined the United Nations initiative on sustainable development (SSEI). Since then, it has undertaken the promotion of ESG standards, which are concerned with environment protection and support the role of companies in the fields of social responsibility and governance. In 2017, the bourse had introduced the ESG Guidance in December to assist all listed entities wishing to incorporate ESG reporting into their existing reporting processes. In 2018, the bourse launched the first sustainability platform in the region to encourage listed companies to disclose their reports on sustainable development (ESG).    

Gulf International Services' (GIS) subsidiaries such as Gulf Drilling International, Gulf Helicopters, Al Koot and Amwaj will continue efforts not only in maintaining their market share but also looking at to improving asset utilisation. This multipronged approach is aimed at building a resilient future to create long term shareholder value, according to GIS chairman Sheikh Khalid bin Khalifa al-Thani. "In addition, relentless efforts are being placed to achieve an efficient and effective debt structure for the group, which is a key ingredient of our corporate strategy," he told shareholders at the annual general assembly, which approved the 2021 financial results and the dividend. These plans are currently under progress and would bring additional layer of financial sustainability to the group, with opportunities to expand our footprints, and consequently improve the competitive positioning, he said. GIS will continue to emphasise on achieving cost efficiency across all its segments and will continue to implement new measures, which could further transform operations, via creating an additional layer of defence to an already lean organisation, Sheikh Khalid said. Post-pandemic recovery for the group remained "uneven", with aviation and insurance segments continuing to demonstrate persistent improved set of results, while the drilling segment remained under pressure until first half of the year, he said. However, with the latest strategic realisations, the drilling segment has started to show signs of recovery. During 2021, Gulfdrill JV, which was previously awarded to supply five jack-up rigs linked to Qatar’s North Field expansion (NFE), became fully operational with deployment of the remaining three rigs during first half of 2021. "Going forward, with Gulfdrill JV becoming fully operational, it is expected to bring additional revenue streams for the segment, along with improved operational cash flows to the group, he said. The business strategy for aviation services segment has been mainly built on expanding markets domestically and growing international footprints with a focus on Middle East and North Africa and Africa. The strategy also targets growing Gulf Helicopter's fleet to meet anticipated growth; while also upgrading the existing fleet to retain customer base with most advanced aircrafts; and growing maintenance, repairs and overhaul activities. Key strategies for the insurance segment mainly revolves around both the medical and energy line of business via building upon premiums by reaching out to newer clients, locally and internationally including small and medium enterprises or SMEs, within or outside oil and gas sector, benefiting from national projects, such as the NFE and potential implementation of new regulations linked to insurance sector. The growth will also be supported by pricing management with consideration of increased risk retention, wherever economically viable, and renewal of contracts with existing clients, GIS board said. Other key strategies include improved effective implementation of claims management policies and procedures; and diversification of the investment portfolio; coupled with strategic re-allocation of investable assets to support overall profitability within the segment and to ensure strong liquidity position. The business strategy for catering segment has primarily been circled around enhancing client retention; improving the tender success ratio; and raising the market share of manpower and facility management services and maximising occupancy level in the camps. Other key elements of the strategy include continuous cost optimisation and diversification to non-oil and gas sectors like healthcare, transport sector, while also targeting SME clients. "Currently various scenarios and options are being considered and evaluated that would allow management, as well as all the other stakeholders, to apprehend better certainty with a stable view of the market in relation to group’s debt profile and repayment ability," said Mohamed Jaber al-Sulaiti, Manager Privatised Companies Affairs Department, QatarEnergy.    

Uncertainty over the simmering Ukraine-Russia issue loomed large over the Gulf shores, including the Qatar Stock Exchange, which declined 144 points in the key index and QR6bn in capitalisation. Notwithstanding the buying interests of foreign and Arab individuals, the 20-stock Qatar Index declined 1.06% to 13,489.03 points, although it touched an intraday high of 13,654 points. The banking and real estate counters witnessed higher than average selling pressure in the market, whose year-to-date gains were at 16.03%. The Islamic index was seen declining slower than the other indices in the market, whose capitalisation saw a 0.82% decrease to QR762.36bn, mainly on the back of mid and small cap segments. More than 53% of the traded constituents were in the red in the market, where the industrials and consumer goods sectors together accounted for more than 57% of the trading volume. The foreign institutions were seen net profit takers in the bourse, which saw a total of 50,156 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR680,205 changed hands across 13 deals. The Arab institutions were also seen bearish, albeit at lower levels, 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 1.06% to 27,352.15 points, the All Share Index by 0.92% to 4,284.95 points and the Al Rayan Islamic Index (Price) by 0.65% to 2,954.94 points. The banks and financial services sector index shrank 1.17%, real estate (1.13%), industrials (0.93%), telecom (0.83%) and insurance (0.77%); while transport gained 0.38% and consumer goods and services 0.17%. Major losers in the main market included Qatar General and Reinsurance, United Development Company, Qamco, QIIB, QNB, Commercial Bank, Industries Qatar, Gulf International Services, Qatar Insurance, Barwa, Vodafone Qatar and Nakilat. In the venture market, Mekdam Holding saw its shares depreciate in value. Nevertheless, Investment Holding Group, Dlala, Aamal Company, Al Khaleej Takaful, Inma Holding, Doha Bank, Alijarah Holding, Inma Holding, Doha Bank, Qatar Oman Investment, Salam, International Investment, Medicare Group, Mazaya Qatar, Ezdan, Qatar National Cement and Milaha were among the gainers in the main market. In the juniour bourse, Al Faleh Educational Holding saw its shares appreciate in value. The foreign institutions turned net sellers to the tune of QR5.11mn compared with net buyers of QR144.34mn on March 10. The Arab institutions were net sellers to the extent of QR0.57mn against no major net exposure for the previous two sessions. The Gulf institutions’ net buying declined considerably to QR62.98mn compared to QR109.93mn last Thursday. However, the foreign individuals were net buyers to the tune of QR10.37mn against net sellers of QR0.3mn on March 10. The Arab individuals turned net buyers to the extent of QR5.21mn compared with net sellers of QR6.68mn the previous day. The Gulf individuals were net buyers to the tune of QR0.81mn against net sellers of QR3.57mn last Thursday. The domestic funds’ net selling declined significantly to QR66.22mn compared to QR146.72mn on March 10. Qatari individuals’ net profit booking shrank drastically to QR7.47mn against QR96.99mn the previous day. Total trade volume in the main market fell 7% to 410.67mn shares, value by 21% to QR921.29mn and transactions by 17% to 14,935. The telecom sector’s trade volume plummeted 62% to 6.3mn equities, value by 63% to QR12.62mn and deals by 57% to 396. The consumer goods and services sector reported a 52% plunge in trade volume to 101.5mn stocks, 39% in value to QR160.43mn and 38% in transactions to 2,302. The transport sector’s trade volume tanked 13% to 1.91mn shares, while value rose 7% to QR9.83mn and deals by 11% to 273. There was a 9% shrinkage in the insurance sector’s trade volume to 6.97mn equities but on a 13% growth in value to QR22.73mn and 34% in transactions to 431. However, the real estate sector’s trade volume almost tripled to 71.84mn stocks and value more than doubled to QR95.65mn on a 66% jump in deals to 1,864. The market witnessed a 40% surge in the banks and financial services sector’s trade volume to 87.54mn shares but on a 36% contraction in value to QR255.71mn and 5% in transactions to 4,907. The industrials sector’s trade volume expanded 6% to 134.61mn equities, whereas value was down 6% to QR364.31mn and deals by 28% to 4,762. The venture market reported more than doubled trade volumes to 0.26mn stocks and value shot up 41.6% to QR1.77mn and transactions by 42.5% to 57.    

Doha Bank and Milaha (Qatar Navigation) will replace United Development Company and Vodafone Qatar in the Qatar Stock Exchange's 20-stock Qatar Index, effective from April 1. The other constituents of the main barometer will remain Industries Qatar, QNB, Qatar Islamic Bank, Masraf Al Rayan, Commercial Bank, Woqod, QIIB, Nakilat, Qatar Electricity and Water, Mesaieed Petrochemical Holding, Ooredoo, Barwa, Qamco, Gulf International Services, Ezdan, Baladna, Investment Holding Group and Salam International Investment. All listed companies are ranked by giving free float market capitalisation with a 50% weight and average daily value traded also 50% weight. Companies with velocity less than 5% are excluded from the review, as are entities whereby a single shareholder can only own less than 1% of outstanding shares. A 15% cap is applied to an individual constituent's weight in the index, with the excess weight distributed proportionately among the remaining index constituents. In such cases, the fixing of shares figures takes place only at rebalance dates. Milaha will join the Al Rayan Islamic Index, while Al Khaleej Takaful Group and Qatar Islamic Insurance will be removed from the index, a communiqué from the bourse said. The other constituents of the Al Rayan Islamic Index are Masraf Al Rayan, Qatar Islamic Bank, Industries Qatar, Woqod, Ooredoo, Mesaieed Petrochemical Holding, QIIB, Barwa, Qatar Electricity and Water, United Development Company, Qamco, Vodafone Qatar, Ezdan, Al Meera Consumer Goods, Baladna, Qatar National Cement, Medicare Group, Aamal Company, Qatari Investors Group, Gulf Warehousing, Investment Holding Group and Qatar Industrial Manufacturing. Under the new index practices, a review is carried out twice a year to ensure that the selection and weighting of the constituents continues to reflect the purpose of the index. No changes have been made in the constituents of All Share Index and sectors indices. The bourse has seven sectors – banks and financial services (with 12 constituents), insurance (six), industrials (10), real estate (four), telecom (two), transportation (three) and consumer goods and services (10) in the ‘All Share Index’. The index free-float for a stock is total outstanding shares minus shares directly owned by government and its affiliates, those held by founders and board members and shareholdings above 10% or greater of the total outstanding (except those held by pension funds in the country).

Strong global oil prices had its reflection in the Qatar Stock Exchange, which gained a huge 170 points in key index amidst flat capitalisation this week. The increased buying interests of Gulf funds was visible as the 20-stock Qatar Index settled 1.26% higher this week which saw the International Monetary Fund forecasts Qatar's real economic growth to pace to 3.2% this year on the back of the North Field liquefied natural gas expansion. The industrials, real estate and insurance counters witnessed higher than average demand this week which saw the Qatar First Bank announce its 60% rights issue to raise as much as QR504mn. The Arab institutions were seen bullish this week which saw Milaha outline its multipronged approach to reduce operational costs and expansion of its footprint in the global supply chain. About 66% of the traded constituents extended gains in the market this week which saw Doha Bank and Milaha find place in the 20-stock Qatar Index, effective from April 1. The weakened net selling pressure from the domestic funds had its role in the market this week which saw a global credit rating agency Moody’s view that widening net interest margins and higher non-interest earnings emboldened the profitability in Qatar's banking sector, whose operating efficiency and capital remains strong. The Islamic index was seen outperforming the main barometer this week, which saw a total of 177,755 Doha Bank-sponsored QETF valued at QR2.4mn change hands across 47 transactions. The Gulf individuals’ weakened net profit booking also had its key role in supporting the market this week which saw as many as 95,594 Masraf Al Rayan-sponsored QATR worth QR285,335 trade across 35 deals. Market capitalisation was up mere QR6mn or 0.01% to QR768.64bn, mainly on microcap segments this week, which saw the industrials and consumer goods sectors together constitute more than 71% of the trade volume. The Total Return Index shot up 2.44%, All Share Index by 1.46% and All Islamic Index by 1.56% this week which nevertheless saw total trading volumes and value on the decline. The industrials sector index zoomed 6.53%, realty (3.61%), insurance (1.5%) and consumer goods and services (0.04%); while telecom declined 1.07%, transport (0.35%) and banks and financial services (0.31%) this week, which saw no trading of treasury bills. Major gainers in the main market included Qamco, Inma Holding, Salam International Investment, Qatar Cinema and Film Distribution and Medicare Group; while in the venture market, Mekdam Holding saw its shares appreciate in value this week which saw no trading sovereign bonds. Nevertheless, Ooredoo, Qatar National Cement, Ezdan, QIIB and Medicare Group were among the losers in the main market; whereas in the juniour bourse, Al Faleh Educational Holding saw its shares depreciate in value this week. In the main market, the industrials sector accounted for 44% of the total trade volume, consumer goods and services (27%), banks and financial services (15%), real estate (8%), and insurance, telecom and transport (2% each) this week. In terms of value, the industrials sector’s shares 46%, banks and financial services (32%), consumer goods and services (11%), realty (5%), and transport, telecom and insurance (2% each) this week. The Gulf institutions’ net buying increased significantly to QR353.9mn compared to QR317.55mn the week ended March 3. The Arab funds were net buyers to the tune of QR10.63mn against net profit takers of QR8.35mn the previous week. The domestic institutions’ net selling declined considerably to QR477.92mn compared to QR1.09bn a week ago. The Gulf individuals’ net profit booking eased perceptibly to QR10.66mn against QR16.77mn the week ended March 3. However, Qatari individuals’ net selling expanded drastically to QR661.32mn compared to QR607.87mn the previous week. The Arab individuals’ net profit booking grew noticeably to QR6.84mn against QR3.47mn a week ago. The foreign individuals were net sellers to the extent of QR6.09mn compared with net buyers of QR13.77mn the previous week. The foreign funds’ net buying weakened substantially to QR798.38mn against QR1.4bn the week ended March 3. Total trade volume in the main market fell 9% to 1.77bn shares, value by 18% to QR5.73bn and transactions by 21% to 90,476. The transport sector’s trade volume plummeted 59% to 26.46mn equities, value by 56% to QR116.3mn and deals by 45% to 2,324. There was 35% plunge in the telecom sector’s trade volume to 37.56mn stocks, 56% in value to QR97.96mn and 50% in transactions to 3,242. The real estate sector’s trade volume tanked 34% to 147.04mn shares, value by 22% to QR258.44mn and deals by 3% to 6,186. The banks and financial services sector reported 26% shrinkage in trade volume to 256.99mn equities, 34% in value to QR1.83bn and 34% in transactions to 30,667. However, the insurance sector’s trade volume soared 32% to 38.5mn stocks and value by 29% to QR103.27mn, while deals shrank 50% to 1,074. The market witnessed 4% jump in the industrials sector’s trade volume to 774.92mn shares and 4% in value to QR2.66bn but on 1% fall in transactions to 35,328. The consumer goods and services sector’s trade volume was up 2% to 485.3mn equities, whereas value shrank 9% to QR657.24mn and deals by 7% to 10,655. The venture market saw 45.45% contraction in trade volumes to 1.92mn stocks, 40.38% in value to QR20.23mn and 49.84% in transactions to 461.

The Qatar Stock Exchange on Thursday largely treaded a flat course despite strong buying interests in the telecom and consumer goods counters. The increased net buying interests of foreign and Gulf institutions notwithstanding, the 20-stock Qatar Index was up 0.03% to 13,633 points, although it touched an intraday high of 13,647 points. The Islamic index was seen declining vis-à-vis marginal gains in the key index in the market, whose year-to-date gains were at 17.26%. The local retail investors’ weakened net selling had its influence in the bourse, whose capitalisation saw about QR2bn or 0.24% decrease to QR768.64bn, mainly on the back of microcap segments. The Arab individuals were seen net sellers in the market, where the industrials and consumer goods sectors together accounted for more than 74% of the trading volume. The Gulf individuals turned net profit takers in the bourse, which saw a total of 116,999 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR881,064 changed hands across 36 deals. The foreign retail investors were seen net sellers, albeit at lower levels, 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 was up 0.09% to 27,644.08 points, while the All Share Index fell 0.05% to 4,324.53 points and the Al Rayan Islamic Index (Price) by 0.18% to 2,974.23 points. The telecom sector index gained 0.74%, consumer goods and services (0.6%) and insurance (0.04%); while realty declined 0.57%, banks and financial services (0.15%) and industrials (0.04%). The transport index was flat. More than 54% of the traded constituents in the main market extended gains and included Investment Holding Group, Salam International Investment, Inma Holding, Dlala, Aamal Company, Commercial Bank, Widam Food, Qatar Electricity and Water, Doha Insurance, Vodafone Qatar and Ooredoo. In the venture market, Mekdam Holding saw its shares appreciate in value. Nevertheless, United Development Company, QIIB, Gulf International Services, Mesaieed Petrochemical Holding, Qamco, QNB, Qatar First Bank, Mannai Corporation and Qatari German Medical Devices were among the losers in the main market. In the juniour bourse, Al Faleh Educational Holding saw its shares depreciate in value. The foreign institutions’ net buying increased markedly to QR144.34mn compared to QR117.06mn on March 9. The Gulf institutions’ net buying grew considerably to QR109.93mn against QR68.42mn the previous day. Qatari individuals’ net selling declined considerably to QR96.99mn compared to QR149.51mn on Wednesday. However, the domestic funds’ net selling shot up significantly to QR146.72mn against QR65.2mn on March 9. The Arab individuals turned net sellers to the tune of QR6.68mn compared with net buyers of QR22.66mn the previous day. The Gulf individuals were net profit takers to the extent of QR3.57mn against net buyers of QR0.94mn on Wednesday. The foreign individuals turned net sellers to the tune of QR0.3mn compared with net buyers of QR5.02mn on March 9. The Arab institutions continued to have no major net exposure for the second straight session. Total trade volume in the main market fell 14% to 443.08mn shares, value by 18% to QR1.16bn and transactions by 16% to 18,093. The transport sector reported a 65% plunge in trade volume to 2.2mn equities, 65% in value to QR9.21mn and 61% in deals to 247. The insurance sector’s trade volume plummeted 60% to 7.66mn stocks and value by 59% to QR20.2mn, while transactions gained 13% to 322. There was a 48% shrinkage in the real estate sector’s trade volume to 26.26mn shares, 51% in value to QR45.26mn and 47% in deals to 1,123. The industrials sector’s trade volume tanked 35% to 114.41mn equities, value by 30% to QR389.2mn and transactions by 12% to 6,625. The market witnessed a 28% contraction in the banks and financial services sector’s trade volume to 62.56mn stocks, 15% in value to QR399.87mn and 31% in deals to 5,149. However, the telecom sector’s trade volume almost tripled to 16.47mn shares and value almost doubled to QR34.51mn on more than doubled transactions to 914. The consumer goods and services sector saw a 26% surge in trade volume to 213.32mn equities, 25% in value to QR262.94mn and 23% in deals to 3,713. In the venture market, trade volumes shrank 36.84% to 0.12mn stocks, value by 36.55% to QR1.25mn and transactions by 33.33% to 40.    

Widening net interest margins and higher non-interest earnings emboldened the profitability in Qatar's banking sector, whose operating efficiency and capital remains strong, according to Moody's, an international credit rating agency. The Qatari banks, it rates, reported an aggregate net profit of QR22.2bn for full-year 2021, up 9% from a year earlier, largely driven by an increase in both net interest and non-interest incomes. "We expect bottom-line profitability to continue to improve in 2022 as operating income continues to grow while provisioning efforts may ease," Moody's said. Expecting Qatar's real GDP (gross domestic product) to grow by 2.7% in 2022 (3.3% in 2021) after contracting by 3.6% in 2020 as a result of the pandemic and the related decline in oil prices; Moody's said the economic recovery in 2022 will be supported by projects and spending linked to the gradual increase in hydrocarbon production, higher oil prices and robust non-hydrocarbon economic activity after a relaxation of travel and lock-down measures imposed at the height of the pandemic and tourism activity related to 2022 FIFA World Cup. During 2021, net interest income increased, mainly due to lower interest expenses, Moody's said, adding total operating income rose by 10%. The rise was largely driven reduction in interest expense due to the low interest-rate environment. Interest costs fell, while interest income remained broadly flat. Combined with 4% lending growth, this pushed the net interest margin (NIM) to 2.2% for 2021 from 2.1% for 2020. NIMs widened to 2.2% in 2021 from 2.1% in both 2020 and 2019 because a decline in asset yields in the current lower interest rate environment to 4% from 4.3% was more than fully offset by a decline in funding costs to 2.1% from 2.4%. The funding composition of Qatari banks has shifted with increasing reliance on external funding, mostly driven by the larger banks in the system. "We expect benchmark interest rates to rise this year and, combined with increased lending volumes on the back of robust economic growth, will support net interest income for Qatari banks over the next 12 to 18 months," it said. Growth in operating profit was also supported by a jump in non-interest income, which rose 9% year-on-year, after declining 11% in 2020. The increase was largely due to a combination of trading gains, an uptick in lending volumes and fee-generating activity, and a better financial performance by associates. "The growth rate in non-interest income is likely to slow in 2022 as trading gains and one-offs normalise while the economic recovery continues to support fee-based income," Moody's said. Terming operating efficiency as strength, it said the aggregate cost-to-income ratio further improved to 24% in 2021 from 25.2% a year earlier. The banks improved their operating efficiency in 2021 through cost-control measures such as reducing staff and travel expenses, easing pressure on their bottom-line profit. While the benefits of the cost control measures accrued in 2021, aggregate operating expenses for the Qatari banking sector increased by 5% for 2021. On strong capital base, it said the banks expanded their capital buffers during the year, supported by strong earnings and solid profit retention. The banks' combined tangible common equity rose to 15.6% of risk-weighted assets as of December 2021 from 15.1% a year earlier. "We expect solid profitability to continue to support healthy capital buffers," it said.    

Qatar witnessed a total of 697 building permits issued in February 2022 with Al Wakra, Al Rayyan and Doha municipalities together constituting more than 63% of the total, according to the Planning and Statistics Authority (PSA). On a yearly basis, total building permits issued in the country witnessed a 46.1% decline with Al Rayyan registering 69% plunge, followed by Umm Slal 53.3%, Al Shahaniya 48.5%, Al Shamal 46.7%, Doha 39.9%, Al Khor 35.3%, Al Daayen 26% and Al Wakra 17.5% in February 2022. There was a general 8% decrease month-on-month in the building permits issued in Qatar with Al Rayyan recording 26% shrinkage, Al Khor (25%), Al Shahaniya (19%) and Doha (13%). Nevertheless, Al Shamal witnessed a 23% growth, Al Wakra and Umm Slal (9% each) and Al Daayen (1%) in the review period. The building permits data is of particular importance as it is considered an indicator for the performance of the construction sector which in turn occupies a significant position in the national economy. Of the total number of new building permits issued, Al Wakra constituted 165 permits or 24% of the total, followed by Al Daayen (151 permits or 22%), Al Rayyan (146 permit or 21%), Doha (119 permits or 17%), Umm Slal (50 permits or 7%), Al Khor (33 permits or 5%), Al Shahaniya (17 permits or 2%) and Al Shamal (16 permits or 2%). The new building permits (residential and non-residential) constituted 366 permits or 53% of the total building permits issued in February 2022, additions 46% (323 permits) and fencing 1% (eight permits). Of the new residential buildings permits, villas topped the list, accounting for 183 permits or 74% of the total, dwellings of housing loans 18% (45 permits) and apartments 7% (17 permits). Among the non-residential sector, commercial structures accounted for 91 permits or 76% of the total, mosques 11% (13 permits0 and the industrial buildings as workshops and factories 6% (seven permits). Qatar saw a 2.7% year-on-year jumping the total building completion certificates issued in February 2022 with Al Shamal registering 100% increase, Doha (58.1%), Al Khor (41.7%) and Al Wakra (16.7%). However, there was a 72.7% contraction in Al Shahaniya, 25% in Al Daayen, 17.4% in Umm Slal and 11.3% in Al Rayyan during the review period. On a monthly basis, the total number of building completion certificates issued in Qatar rose 8% with Al Shamal recording 200% growth, Al Khor (143%), Al Rayyan (21%), Al Wakra (18%) and Doha (5%). On the other hand, there was a decrease of 73% in Al Shahaniya, 41% in Umm Slal and 7% in Al Daayen in the review period. Qatar saw a total of 347 building completion certificates issued in February 2022, of which 286 or 82% was for the new buildings (residential and non-residential) and 81 or 16% for additions. Of the total number of new building completion certificates issued in February 2022, Al Wakra constituted 26% or 91 certificates, followed by Al Rayyan (25% or 86 certificates), Doha (20% or 68 certificates), Al Daayen (15% or 51 certificates), Umm Slal (5% or 19 certificates), Al Khor (5% or 17 certificates), Al Shamal (3% or 12 certificates) and Al Shahaniya (1% or three certificates). Of the 210 residential buildings completion certificates issued, as many as 136 or 65% were for villas, 57 or 27% for dwellings of housing loans and 12 or 6% for the apartments. Of the 136 villas completion certificates issued this February, as many as 34 were in Al Rayyan, 33 in Al Daayen, 23 in Al Wakra, 18 in Doha, 12 in Umm Slal, nine in Al Khor and seven in Al Shamal. Of the 57 dwellings of housing loans completion certificates issued, Al Rayyan saw 28, Al Daayen (13), Al Wakra (12), Al Khor (three) and Umm Slal (one). In the case of 12 apartments, Doha issued seven completion certificates, Al Wakra (three) and Al Daayen and Al Khor (one each).    

The Qatar Stock Exchange on Wednesday witnessed minor correction despite buying interests in the transport, real estate and insurance counters. Notwithstanding the demand for transport, real estate and insurance sectors, the 20-stock Qatar Index fell about 54 points or 0.39% to 13,628.87 points, although it touched an intraday high of 13,793 points. The Islamic index was seen declining faster than the other indices in the market, whose year-to-date gains shot up to 17.23%. The foreign institutions’ weakened net buying had its strong influence in the bourse, whose capitalisation saw QR3bn or 0.39% decrease to QR770.52bn, mainly on the back of mid and microcap segments. The net selling pressure of the domestic funds and the local retail investors was seen weakening in the market, where the industrials and consumer goods sectors together accounted for more than 67% of the trading volume. The foreign individuals turned net buyers in the bourse, which saw a total of 71,230 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR915,779 changed hands across 20 deals. The Gulf funds continued to be net buyers but with lesser intensity in the market, which saw no trading of sovereign bonds. Total trade turnover declined amidst higher volumes in the bourse, which saw no trading of treasury bills. The Total Return Index fell 0.29% to 27,618.09 points, All Share Index by 0.24% to 4,326.79 points and Al Rayan Islamic Index (Price) by 0.57% to 2,979.63 points. The industrials sector index shed 0.54%, consumer goods and services (0.34%), banks and financial services (0.3%) and telecom (0.1%); while transport gained 1.02%, real estate (0.44%) and insurance (0.22%). Major losers in the main market included Ooredoo, Gulf International Services, Qatar Islamic Bank, Industries Qatar, Medicare Group and Ezdan. In the venture market, Mekdam Holding saw its shares depreciate in value. Nevertheless, Investment Holding Group, Qatar National Cement, QIIB, Ezdan, Qatari German Medical Devices, Medicare Group, Baladna, Qatar Industrial Manufacturing, Mesaieed Petrochemical Holding, Nakilat and Gulf Warehousing were among the gainers in the main market. In the juniour bourse, Al Faleh Educational Holding saw its shares appreciate in value. The foreign institutions’ net buying decreased drastically to QR117.06mn against QR303.2mn on March 8. The Gulf institutions’ net buying reduced markedly to QR68.42mn compared to QR83.94mn the previous day. However, the Arab individuals turned net buyers to the tune of QR22.66mn against net sellers of QR19.1mn on Tuesday. The foreign individuals were net buyers to the extent of QR5.02mn compared with net sellers of QR8.18mn on March 8. The Gulf individuals turned net buyers to the tune of QR0.94mn against net sellers of QR6.63mn the previous day. Qatari individuals’ net selling declined considerably to QR149.51mn compared to QR205.67mn on Tuesday. The domestic funds’ net selling weakened significantly to QR65.2mn against QR149.89mn on March 8. The Arab institutions had no major net exposure compared with net buyers of QR2.35mn the previous day. Total trade volume in the main market rose 26% to 516.92mn shares, while value fell 7% to QR1.42bn and transactions by 14% to 21,518. The consumer goods and services sector’s trade volume quadrupled to 169.45mn equities and value almost tripled to QR211.11mn on 69% increase in deals to 3,018. The insurance sector’s trade volume more than tripled to 19.34mn stocks and value more than tripled to QR49.35mn on 33% jump in transactions to 284. The banks and financial services sector’s trade volume almost doubled to 87.39mn shares and value grew 6% to QR468.84mn but on 20% decline in deals to 7,459. There was 30% surge in the real estate sector’s trade volume to 50.94mn equities, 26% in value to QR92.69mn and 21% in transactions to 2,123. However, the industrials sector’s trade volume plummeted 33% to 177.61mn stocks, 36% in value to QR555.71mn and 29% in deals to 7,549. The transport sector reported 12% shrinkage in trade volume to 6.26mn shares, 9% in value to QR26.66mn and 20% in transactions to 639. The telecom sector’s trade volume was down 1% to 5.92mn equities, whereas value expanded 3% to QR17.65mn despite 27% lower deals at 446. The venture market saw 38.71% contraction in trade volumes to 0.19mn stocks, 44.51% in value to QR1.97mn and 43.4% in transactions to 60.    

The Qatar Stock Exchange on Tuesday gained more than 91 points and its key index inched toward 13,700 levels, mainly reflecting the sentiments in the global oil prices, which breached $132 a barrel. The real estate and industrials counters witnessed higher than average demand as the 20-stock Qatar Index rose 0.67% to 13,682.58 points, although it touched an intraday high of 13,713 points. The Islamic index was seen gaining faster than the other indices in the market, whose year-to-date gains shot up to 17.69%. The foreign institutions’ increased net buying had its strong influence in the bourse, whose capitalisation saw about QR1bn or 0.12% increase to QR773.52bn, mainly on the back of microcap segments. The Gulf funds’ continued to net buyers but with lesser intensity in the market, where the industrials sector alone accounted for about 65% of the trading volume. The Arab institutions also continued to be net buyers but with lesser vigour in the bourse, which saw a total of 44,970 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR514,704 changed hands across 15 deals. The domestic funds were increasingly net profit takers in the market, which saw no trading of sovereign bonds. Total trade turnover declined amidst higher volumes in the bourse, which saw no trading of treasury bills. The Total Return Index rose 0.83% to 27,697.22 points, All Share Index by 0.51% to 4,337.2 points and Al Rayan Islamic Index (Price) by 1.01% to 2,996.64 points. The realty sector index zoomed 2.51%, industrials (0.77%), insurance (0.62%), banks and financial services (0.53%) and telecom (0.1%); while transport declined 1.49%. The consumer goods and services sector index rather tread a flat path. Major gainers in the main market included Qamco, Barwa, Gulf International Services, Qatar Islamic Bank, Commercial Bank, Inma Holding, Mannai Corporation and Qatar Electricity and Water. In the venture market, Mekdam Holding saw its shares appreciate in value. Nevertheless, Investment Holding Group, Qatar National Cement, QIIB, Ezdan, Qatari German Medical Devices, Medicare Group, Baladna, Qatar Industrial Manufacturing, Mesaieed Petrochemical Holding, Nakilat and Gulf Warehousing were among the losers in the main market. The foreign institutions’ net buying increased drastically to QR303.2mn compared to QR233.18mn on March 7. Qatari individuals’ net selling declined marginally to QR205.67mn against QR209.15mn the previous day. However, the domestic funds’ net selling grew significantly to QR149.89mn compared to QR116.1mn on Monday. The Arab individuals’ net profit booking shot up noticeably to QR19.1mn against QR3.71mn on March 7. The foreign individuals’ net selling grew perceptibly to QR8.18mn compared to QR2.63mn the previous day. The Gulf individuals’ net selling strengthened considerably to QR6.63mn against QR1.4mn on Monday. The Gulf institutions’ net buying reduced markedly to QR83.94mn compared to QR91.62mn on March 7. The Arab institutions’ net buying weakened notably to QR2.35mn against QR8.2mn the previous day. Total trade volume in the main market rose 4% to 411.7mn shares, while value fell 6% to QR1.52bn and transactions by 2% to 25,163. The real estate sector’s trade volume soared 27% to 39.09mn equities, value by 58% to QR73.79mn and deals by 47% to 1,750. There was 23% surge in the industrials sector’s trade volume to 265.83mn stocks, 4% in value to QR872.16mn and 2% in transactions to 10,678. However, the telecom sector’s trade volume plummeted 35% to 5.96mn shares, value by 41% to QR17.07mn and deals by 52% to 613. The transport sector reported 34% plunge in trade volume to 7.13mn equities, 42% in value to QR29.45mn and 52% in transactions to 796. The consumer goods and services sector’s trade volume tanked 29% to 42.4mn stocks, value by 36% to QR71.52mn and deals by 17% to 1,792. The banks and financial services sector witnessed 25% contraction in trade volume to 45.74mn shares and 16% in value to QR441.71mn but on 7% jump in transactions to 9,331. The insurance sector’s trade volume was down 7% to 5.55mn equities, value by 7% to QR16.23mn and deals by 16% to 213. The venture market saw 76.15% shrinkage in trade volumes to 0.31mn stocks, 73.65% in value to QR8.55mn and 58.43% in transactions to 106.