Author

Wednesday, February 21, 2024 | Daily Newspaper published by GPPC Doha, Qatar.
 Santhosh V. Perumal
Santhosh V. Perumal
Santhosh V. Perumal, a postgraduate in Econometrics with an advance qualification in Capital Markets and Financial Services, is Gulf Times' journalist. His coverage areas are debt and equity, hydrocarbons, international trade, environment, banks, insurance and real estate. Previously, he was in New Delhi, India as Senior Finance Correspondent of PTI.
Gulf Times
Business
QSE remains almost flat despite profit booking pressure

The Qatar Stock Exchange (QSE) Wednesday witnessed a rollercoaster ride with it finally settling almost flat despite buying interests in five of the seven sectors..text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[103804]**The foreign institutions were seen increasingly net sellers as the 20-stock Qatar Index was down mere 0.03% to 10,222.9 points, as investors were cautious ahead of the meeting of Opec+.The Gulf institutions turned net profit takers in the main market, whose year-to-date losses widened to 4.29%.The banking and consumer goods sectors witnessed higher than average selling pressure had its influence in the main bourse, whose capitalisation, nevertheless, was up QR0.07bn or 0.01% to QR595.66bn with microcap segments gaining the most.The Arab individuals’ weakened net buying had its say in the main market, which regained from an intraday low of 10,189 points.The foreign retail investors lower net buying had its influence in the main bourse, which saw as many as 6,850 exchange traded funds (sponsored by Masraf Al Rayan) valued at QR0.02mn trade across one deal.However, the local retail investors were increasingly net buyers in the main market, which saw no trading of sovereign bonds.The Islamic index was seen gaining vis-à-vis decline in the main barometer in the main bourse, which witnessed no trading of treasury bills.The Total Return Index was down 0.03%, while All Islamic Index was up 0.03%. The All Share Index was unchanged in the main bourse, whose trade turnover and volumes were on the decline.The banks and financial services sector index declined 0.32% and consumer goods and services 0.21%; while insurance gained 0.84%, industrials (0.45%), real estate (0.44%), telecom (0.41%) and transport (0.27%).Major losers in the main market included Meeza, Baladna, QIIB, Estithmar Holding, Al Khaleej Takaful and Lesha Bank.Nevertheless, Doha Insurance, Qatari German Medical Devices, Qatar National Cement, Salam International Investment, Qatari Investors Group, Industries Qatar, Barwa, Qatar Electricity and Water, Mazaya Qatar, Ooredoo and Nakilat were among the gainers in the main market. In the junior bourse, both Al Faleh Educational Holding and Mahhar Holding saw their shares appreciate in value.The domestic institutions’ net selling increased considerably to QR9.88mn compared to QR0.43mn on November 21.The Gulf institutions turned net sellers to the tune of QR1.27mn against net buyers of QR1.24mn the previous day.The Arab individuals’ net buying declined substantially to QR1.41mn compared to QR6.21mn on Tuesday.The foreign individual investors’ net buying eased noticeably to QR0.11mn against QR5.14mn on November 21.The Gulf retail investors’ net buying fell marginally to QR0.01mn compared to QR0.75mn the previous day.However, the local retail investors’ net buying strengthened substantially to QR8.29mn against QR1.38mn on Tuesday.The foreign institutions were net buyers to the extent of QR1.33mn compared with net sellers of QR14.29mn on November 21.The Arab institutions had no major net exposure for the 14th consecutive session.Trade volumes in the main market fell 16% to 112.4mn shares, value by 22% to QR351.02mn and deals by 19% to 13,432.The venture market witnessed a 56% contraction in trade volumes to 0.24mn equities, 57% in value to QR0.37mn and 41% in transactions to 40.

Gulf Times
Qatar
Qatar’s mid-term outlook favourable; NDS3 to accelerate economic transition: IMF

Qatar’s economic growth has normalised in 2023, following the World Cup-driven boom, even as the mid-term outlook remains "favourable" on liquefied natural gas (LNG) expansion, according to the International Monetary Fund (IMF).In its Article IV consultation report on Qatar, the Bretton Woods institution also said the upcoming third national development strategy (NDS3) provides an opportunity to accelerate economic transformation towards a knowledge-based and inclusive economy supported by private-sector led growth."Output is expected to expand by about 1.75% per annum during 2023–25 with the non-hydrocarbon sector growing at 2.75%, driven by domestic demand, including from the construction of the North Field expansion project, and robust tourism, boosted by the global visibility brought by the 2022 FIFA World Cup," said Ran Bi, who led the IMF team.Continued normalisation is expected in the near term, with a favorable medium-term outlook supported by the LNG production expansion and intensifying reform efforts, the report said.Broad fiscal discipline, amid hydrocarbon windfalls in 2022-23, resulted in sizeable surpluses and rapid central government debt reduction, which “significantly” strengthened the country’s fiscal position, Bi said."Continued fiscal prudence is expected under the upcoming 2024 budget," she said, adding the next medium-term budget, covering five years for the first time, is being developed to support the NDS3 initiatives and should balance aspiration for transformation and fiscal prudence.In this regard, the IMF team welcomed the ongoing effort to enhance efficiency, including through the implementation of programme-based budgeting, and to increase transparency.The medium-term priorities include accelerating revenue diversification through further mobilisation of non-hydrocarbon tax revenues, enhancing spending efficiency, and reorienting public investment to facilitate private sector growth, which can be supported by a well-functioning medium-term fiscal framework and greater fiscal transparency, according to her.The fiscal and current accounts are projected to remain in surpluses over the medium term, Bi said, adding risks to the outlook are “broadly balanced”.Stressing that Qatar “is at an important juncture” in shifting its growth model from one that is led by the state to a more dynamic and market-oriented one driven by the private sector, Bi said building on the progress made so far, and guided by upcoming NDS3, reforms should focus on enhancing human capital, labour market dynamism, and business environment."Furthering digitalisation with due attention to potential risks, and strengthening climate resilience and green transition are also key for achieving National Vision 2030," she added.

Reiterating that the QCB’s prudent policies have underpinned financial stability; the IMF said continued diligence is "critical" to maintain banking sector strength in a “higher-for-longer” interest rate environment.
Business
QCB maintains price and financial stability, inflation moderates and banks remain healthy: IMF

The Qatar Central Bank (QCB) has maintained price and financial stability as inflation "moderated", while banks remain "healthy", according to the International Monetary Fund (IMF)."The QCB has maintained price and financial stability. Inflation has moderated following monetary policy tightening in tandem with the US Federal Reserve, consistent with the currency peg to the US dollar," IMF said in its Article IV consultation report on the country.The IMF team, led by Ran Bi, had met with Minister of Finance HE Ali bin Ahmed al-Kuwari; QCB Governor HE Sheikh Bandar bin Mohamed bin Saoud al-Thani, other senior government officials, and private sector representatives during the first fortnight of this month.Reiterating that the QCB’s prudent policies have underpinned financial stability; it said continued diligence is "critical" to maintain banking sector strength in a “higher-for-longer” interest rate environment.The QCB has increased the repurchase rate by 500 basis points since the beginning of 2022 to 6% in July 2023. Since January 2022, repo rate has risen from 1% to 1.25% in March, 1.75% in May, 2.5% in June, 3.25% in July, 4% in September, 4.75% in November, 5.25% in December, 5.5% in March, 5.75% in May 2023 and the 6% in July. In 2022, the average repo rate was 2.77%.On the consumer price index inflation, the IMF report said it will “likely moderate to 2%”.According to the latest data of the Planning and Statistics Authority, higher expenses towards communication, recreation and food led Qatar's general inflation to rise 2.52% year-on-year in October 2023.The IMF report said Qatar's banks remain "healthy", although the non-performing loan ratio has edged up as pandemic-related restructured loans have turned non-performing, output growth has normalised after the World Cup, and financial conditions have tightened."Banks’ relatively high provisioning mitigates the risks," it however said.The QCB has refined macro-prudential measures to further reduce risks associated with banks’ external asset-liability mismatches, especially those of short maturities, which is welcome, according to the report."Continued diligence is critical to enhance banking sector resilience, complemented by reforms to further deepen domestic financial markets, as envisaged in the upcoming financial sector strategy," it said.

The Arab individual investors were seen bullish as the 20-stock Qatar Index rose 0.44% to 10,226.44 points yesterday, reflecting the regional sentiments on expectations that the US Federal Reserve is likely to put an end to interest rate hikes.
Business
Qatar bourse scales 10,200 levels as index gains 45 points

The Qatar Stock Exchange Tuesday gained more than 45 points and its key index scaled the 10,200 levels on the back of buying interests, especially in the industrials sector..text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[103804]**The Arab individual investors were seen bullish as the 20-stock Qatar Index rose 0.44% to 10,226.44 points, reflecting the regional sentiments on expectations that the US Federal Reserve is likely to put an end to interest rate hikes.The foreign retail investors were seen increasingly net buyers in the main market, whose year-to-date losses truncated to 4.26%.The Qatari individuals were increasingly into net buying in the main bourse, whose capitalisation added QR1.22bn or 0.21% to QR595.59bn with small cap segments gaining the most.The Gulf institutions turned bullish in the main market, which regained from an intraday low of 10,164 points and it touched an intraday high of 10,237 points.The Gulf individuals were increasingly net buyers in the main bourse, which saw as many as .09mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.24mn trade across 16 deals.However, the foreign institutions were increasingly net sellers in the main market, which saw no trading of sovereign bonds and treasury bills.The Islamic index was seen gaining slower than the main barometer in the main bourse, which witnessed no trading of treasury bills.The Total Return Index rose 0.44%, All Share Index by 0.29% and Al Rayan Islamic Index (Price) by 0.42% in the main bourse, whose trade turnover grew amidst lower volumes.The industrials sector index added 0.8%, banks and financial services (0.39%) and transport (0.33%); while insurance tanked 1.27%, real estate (0.81%), telecom (0.46%) and consumer goods and services (0.24%).Major gainers in the main market included QIIB, Milaha, Industries Qatar, Commercial Bank, Medicare Group and Estithmar Holding.Nevertheless, 66% of the traded constituents in the main market were in the red with major shakers being Dlala, QLM, Ooredoo, Qatar Insurance, Nakilat, Qatari German Medical Devices, Doha Insurance, Ezdan, Baladna and Qamco. In the venture market, both Al Faleh Educational Holding and Mahhar Holding saw their shares depreciate in value.The Arab individuals were net buyers to the tune of QR6.21mn compared with net sellers of QR6.48mn on November 20.The foreign individual investors’ net buying increased noticeably to QR5.14mn against QR0.04mn the previous day.The local retail investors’ net buying strengthened perceptibly to QR1.38mn compared to QR1.01mn on Monday.The Gulf institutions turned net buyers to the extent of QR1.24mn against net profit takers of QR7.43mn on November 20.The Gulf retail investors’ net buying expanded marginally to QR0.75mn compared to QR0.53mn the previous day.However, the foreign institutions’ net profit booking grew markedly to QR14.29mn against QR13.6mn on Monday.The domestic funds were net sellers to the tune of QR0.43mn compared with net buyers of QR25.93mn on November 20.The Arab institutions had no major net exposure for the 13th consecutive session.Trade volumes in the main market fell 11% to 133.07mn shares, while value was up 5% to QR450.61mn and deals by 4% to 16,626.The venture market witnessed a 25% contraction in trade volumes to 0.55mn equities, 25% in value to QR0.86mn and 9% in transactions to 68.

Snapping three days of bullish momentum, the Qatar Stock Exchange Monday fell 60 points on selling pressure, notably in the industrials, real estate, consumer goods and banking sectors
Business
Foreign funds turn bearish as QSE key index falls 60 points

Snapping three days of bullish momentum, the Qatar Stock Exchange (QSE) Monday fell 60 points on selling pressure, notably in the industrials, real estate, consumer goods and.text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[103804]**banking sectors.The foreign institutions were seen net profit takers as the 20-stock Qatar Index shed 0.58% to 10,181.27 points, reflecting the caution seen in the Gulf shores ahead of the release of minutes from the US Federal Reserve's latest meeting.The Arab retail investors turned bearish in the main market, whose year-to-date losses widened to 4.68%.About 74% of the traded constituents were in the red in the main bourse, whose capitalisation shed QR4.39bn or 0.73% to QR594.37bn with mid and microcap segments losing the most.However, the domestic institutions were seen increasingly into net selling in the main market, which regained from an intraday low of 10,157 points.The local individuals turned net buyers in the main bourse, which saw as many as 8,765 exchange traded funds (sponsored by Masraf Al Rayan) valued at QR0.02mn trade across four deals.The Gulf individuals were marginally bullish in the main market, which saw no trading of sovereign bonds and treasury bills.The Islamic index was seen declining slower than the other indices in the main bourse, which witnessed no trading of treasury bills.The Total Return Index fell 0.58%, All Share Index by 0.65% and Al Rayan Islamic Index (Price) by 0.34% in the main bourse, whose trade turnover and volumes were on the decline.The industrials sector index tanked 1.14%, realty (0.93%), consumer goods and services (0.87%) and banks and financial services (0.78%); while transport gained 1.34% and insurance 0.02%. The telecom index was rather flat.Major losers in the main market included Industries Qatar, QNB, Qatar Electricity and Water, Medicare Group, Zad Holding, Al Khaleej Takaful, Ezdan, QIIB, Commercial Bank, Widam Food, Mannai Corporation and United Development Company. In the venture market, both Al Faleh Educational Holding and Mahhar Holding saw their shares depreciate in value.Nevertheless, Milaha, Doha Insurance, Meeza, Qatar Insurance and Dlala were among the gainers in the main bourse.The foreign institutions turned net sellers to the tune of QR13.6mn compared with net buyers of QR15.15mn on November 19.The Arab individuals were net sellers to the extent of QR6.48mn against net buyers of QR10.96mn on Sunday.However, the domestic funds’ net buying strengthened noticeably to QR25.93mn compared to QR10.67mn the previous day.The local individual investors turned net buyers to the tune of QR1.01mn against net sellers of QR25.21mn on November 19.The Gulf retail investors were net buyers to the extent of QR0.53mn compared with net sellers of QR0.75mn on Sunday.The foreign individual investors turned net buyers to the tune of QR0.04mn against net sellers of QR3.12mn the previous day.The Gulf institutions’ net profit booking weakened marginally to QR7.43mn compared to QR7.71mn on November 19.The Arab institutions had no major net exposure for the twelfth consecutive session.Trade volumes in the main market fell 9% to 148.92mn shares and value by 7% to QR428.95mn, while deals rose 6% to 15,990.The venture market witnessed an 83% surge in trade volumes to 0.73mn equities, 80% in value to QR1.15mn and 63% in transactions to 75.

The foreign institutions were seen increasingly into net buying as the 20-stock Qatar Index rose 20 points or 0.19% to 10,241.17 points Sunday.
Business
Buying support from foreign and domestic funds, Arab individuals lift QSE sentiments

The Qatar Stock Exchange Sunday saw higher than average demand, especially at the banking counter, as its key barometer remained above 10,200 levels..text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[103804]**The foreign institutions were seen increasingly into net buying as the 20-stock Qatar Index rose 20 points or 0.19% to 10,241.17 points.The domestic funds were also increasingly net buyers in the main market, whose year-to-date losses were minimised to 4.12%.More than 55% of the traded constituents extended gains in the main bourse, whose capitalisation added QR1.17bn or 0.2% to QR598.76bn with small cap segments gaining the most.The Arab retail investors turned bullish in the main market, which touched an intraday high of 10,293 points.However, the local individuals were increasingly net profit takers in the main bourse, which saw as many as 7,378 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.02mn trade across five deals.The Gulf institutions turned net sellers in the main market, which saw no trading of sovereign bonds and treasury bills.The Islamic index was seen gaining slower than the other indices in the main bourse, which witnessed no trading of treasury bills.The Total Return Index rose 0.19%, the All Share Index by 0.26% and the Al Rayan Islamic Index (Price) by 0.04% in the main bourse, whose trade turnover and volumes were on the decline.The banks and financial services sector index gained 0.61%, transport (0.23%) and consumer goods and services (0.12%); while real estate declined 0.77%, insurance (0.37%), industrials (0.17%) and telecom (0.02%).Major gainers in the main market included Qatar National Cement, Widam Food, Beema, Mannai Corporation, Doha Bank, Estithmar Holding and Milaha.In the venture market, Mahhar Holding saw its shares appreciate in value.Nevertheless, Barwa, Lesha Bank, Ezdan, Industries Qatar and Salam International Investment were among the losers in the main market.The foreign institutions’ net buying increased perceptibly to QR15.15mn compared to QR12.2mn on November 16.The Arab individuals turned net buyers to the tune of QR10.96mn against net sellers of QR4.08mn last Thursday.The domestic funds’ net buying strengthened noticeably to QR10.67mn compared to QR2.05mn the previous trading day.However, the local individual investors’ net selling grew markedly to QR25.21mn against QR16.75mn on November 16.The Gulf institutions were net sellers to the extent of QR7.71mn compared with net buyers of QR6.44mn last Thursday.The foreign retail investors’ net profit booking increased noticeably to QR3.12mn against QR0.2mn the previous trading day.The Gulf individuals turned net sellers to the tune of QR0.75mn compared with net buyers of QR0.34mn on November 16.The Arab institutions had no major net exposure for the eleventh consecutive session.Trade volumes in the main market fell 24% to 163.94mn shares, value by 26 to QR462.54mn and deals by 32% to 15,126.The venture market witnessed a 51% contraction in trade volumes to 0.40mn equities, 50% jump in value to QR0.64mn and 40% in transactions to 46.

Gulf Times
Business
GSAS rating to play key role in Qatar’s major office letting in future: CWQ

The Global Sustainability Assessment System (GSAS) rating is expected to play an important role in Qatar's major office lettings in the future as international occupiers are seen increasingly demanding accommodation that meets minimum sustainability targets and energy-efficient buildings, according to Cushman and Wakefield Qatar (CWQ).Corporations’ responsibility towards climate change and sustainability is increasingly evident in 2023, with international occupiers demanding accommodation that meets minimum sustainability targets, it said in the latest report."The number of options available to global corporations in Qatar is reducing, as many will not consider occupying older buildings that don’t meet energy efficiency standards," the report said.With little demand for older office space, retrofitting has become a hot topic among some of Qatar’s developers and landlords, it highlighted."We expect GSAS ratings to play an important role in any major office lettings in Qatar in the coming years. Ultimately, it may be the shortage of high-specification energy efficient buildings that drives new office construction, despite the availability of older office space," CWQ said.GSAS is the first of its kind performance-based sustainability rating scheme for the construction industry in the Middle East region developed by Gulf Organisation for Research and Development in collaboration with TC Chan Center at the University of Pennsylvania, USA.The primary objective of GSAS is to create a sustainable built environment that minimises ecological impact while addressing the specific regional needs and environment of the region.The report highlighted that the Qatar Free Zone Authority, Qatar Financial Centre and Invest Qatar have been taking strides to boost private sector demand and encourage inward investment; however, significant new office demand from the private sector is only likely to become evident in the medium term.Finding that the availability of office accommodation and the relatively slow take-up has resulted in a fall in construction activity in the commercial office sector in 2023; it said "we expect this trend to continue until a significant portion of existing prime office accommodation is absorbed."The current oversupply of office space in Qatar will continue to be a drag on office rents, moving towards 2024, it said, adding the supply of purpose-built office accommodation in Qatar has now surpassed 5.3mn sq m, with an estimated 1.3–1.5mn sq m of vacant space available.Grade-A stock is now typically available to lease for between QR100 and QR120 per sq m per month, exclusive of service charges. Shell and core office space can be leased from QR65 per sq m in areas such as Lusail and West Bay, while this type of accommodation is available for QR50–60 per sq m per month in some of Doha’s older office districts.

The real estate and industrials counters witnessed higher than average demand as the 20-stock Qatar Index shot up 2.45% this week which saw Qatar’s consumer price index inflation rise 2.52% year-on-year in October 2023
Business
QSE key index gains 244 points; capitalisation adds QR12bn

Reflecting the optimism in the regional bourses on expectations of an end to rate hikes in the US, Qatar Stock Exchange (QSE) saw its key index gain as much as 244 points and capitalisation add more than QR12bn this week.The real estate and industrials counters witnessed higher than average demand as the 20-stock Qatar Index shot up 2.45% this week which saw Qatar’s consumer price index inflation rise 2.52% year-on-year in October 2023.As much as 78% of the traded constituents extended gains to investors in the main market this week which saw a Cushman and Wakefield Qatar report that said tourism-related sectors in Qatar to remain ‘bright spot’.The Gulf funds were bullish and domestic institutions were increasingly net buyers in the main bourse this week which saw QNB disclose that it cut greenhouse gas emissions by 16%.The Arab retail investors turned net buyers in the main market this week which saw the International Gas Union (IGU) report that said the Middle East, led by Qatar, will be an important region in the global liquefied natural gas landscape.The foreign individuals’ weakened net selling had its influence in the main bourse this week which saw an Invest Qatar report that said Doha’s cultural and creative industries contribute as much as QR20bn to the local economy during 2021, which is 3% gross domestic product.The foreign institutions continued to be net buyers but with lesser intensity in the main market this week, which saw a total of 0.08mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.17mn trade across 16 deals.The Islamic index outperformed the other indices in the main bourse this week which saw as many as 0.02mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.18mn change hands across 11 transactions.Market capitalisation was seen expanding QR12.27bn or 2.1% to QR597.59bn on the back of large and midcap segments this week which saw the industrials and banks together constitute more than 59% of the total trade volume in the main market.Trade volumes and turnover were on the decline both in the main bourse and venture market this week.The Total Return Index zoomed 2.45%, the All Share Index by 2.07% and the All Islamic Index by 3.43% this week, which saw no trading of sovereign bonds.The realty sector index soared 4.63%, industrials (2.9%), banks and financial services (2.29%), telecom (2.02%), consumer goods and services (1.33%) and insurance (0.4%); while transport declined 1.6% this week which saw no trading of treasury bills.Major gainers in the main market included Industries Qatar, Ooredoo, Qatar Electricity and Water, Meeza, Vodafone Qatar, Medicare Group, Widam Food, Masraf Al Rayan, Qatari Investors Group, Qatar Islamic Bank, Commercial Bank, Doha Bank, Dukhan Bank and Baladna. In the venture market, Al Faleh Educational Holding saw its shares appreciate in value this week.Nevertheless, Doha Insurance, Nakilat, Beema, Milaha, Mannai Corporation, Inma Holding and Nakilat were among the shakers in the main market. In the juniour bourse, Mahhar Holding saw its shares depreciate in value this week.The Gulf funds were net buyers to the tune of QR19.48mn against net profit takers of QR7.52mn the week ended November 9.The domestic institutions’ net buying increased markedly to QR9.95mn compared to QR4.4mn the previous week.The Arab individuals turned net buyers to the extent of QR1.12mn against net sellers of QR8.58mn a week ago.The local retail investors’ net selling fell substantially to QR77.23mn compared to QR102.69mn the week ended November 9.The foreign individuals’ net profit booking weakened noticeably to QR0.44mn against QR11.08mn the previous week.However, the Gulf retail investors’ net selling strengthened perceptibly to QR1.61mn compared to QR0.44mn a week ago.The foreign institutions’ net buying shrank considerably to QR48.72mn against QR125.92mn the week ended November 9.The Arab institutions had no major net exposure for the second continuous week.The main market witnessed a 23% contraction in trade volumes to 1.02bn shares, 15% in value to QR2.65bn and 11% in deals to 89,539 this week.In the venture market, trade volumes plummeted 26% to 5.07mn equities, value by 26% to QR6.99mn and transactions by 28% to 496.

Gulf Times
Business
Bullish foreign and Gulf institutions lift QSE 162 points; M-cap adds QR10bn

The Qatar Stock Exchange (QSE) Wednesday gained 162 points and its key index inched towards 10,200 levels on the back of higher demand, especially in the industrials and.text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[102377]**banking equities.The foreign institutions turned bullish as the 20-stock Qatar Index rose 1.62% to 10,178.9 points, reflecting the optimism in the regional markets on gaining oil prices, ahead of the US Federal Reserve meeting.The Gulf institutions were seen net buyers in the main market, whose year-to-date losses truncated to 4.7%.More than 70% of the traded constituents extended gains in the main bourse, whose capitalisation added QR9.78bn or 1.67% to QR596.01bn with large cap segments gaining the most.The Arab retail investors turned net buyers in the main market, which regained from an intraday low of 10,115 points.However, the local retail investors were increasingly into net selling in the main bourse, which saw as many as 0.05mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.15mn trade across seven deals.The domestic funds turned net profit takers in the main market, which saw no trading of sovereign bonds and treasury bills.The Islamic index gained slower than the other indices in the main bourse, which witnessed no trading of treasury bills.The Total Return Index shot up 1.62%, All Share Index by 1.48% and Al Rayan Islamic Index (Price) by 1.32% in the main bourse, whose trade turnover grew amidst lower volumes.The industrials sector index zoomed 2.01%, banks and financial services (1.88%), real estate (1.24%), telecom (1.15%) and consumer goods and services (0.54%); while transport and insurance declined 0.77% and 0.37% respectively.Major gainers in the main market included Industries Qatar, Ooredoo, QNB, Qatar Islamic Bank, Qatar Electricity and Water, Commercial Bank, Ezdan, Medicare Group, Baladna, Meeza, Qatar National Cement, QLM and Gulf Warehousing. In the venture market, Mahhar Holding saw its shares appreciate in value.Nevertheless, Zad Holding, Milaha, Lesha Bank, Doha Bank and Qatari Investors Group were among the shakers in the main market. In the junior bourse, Al Faleh Educational Holding saw its shares depreciate in value.The foreign institutions turned net buyers to the tune of QR47.31mn compared with net sellers of QR18.06mn on November 14.The Gulf institutions were net buyers to the extent of QR13.26mn against net profit takers of QR0.7mn the previous day.The Arab individual investors turned net buyers to the tune of QR0.83mn compared with net sellers of QR2.76mn on Tuesday.However, the local individuals’ net selling increased significantly to QR41.86mn against QR8.07mn on November 14.The domestic funds were net sellers to the extent of QR14.79mn compared with net buyers of QR28.96mn the previous day.The foreign retail investors turned net sellers to the tune of QR4.12mn against net buyers of QR0.32mn on Tuesday.The Gulf individuals were net profit takers to the extent of QR0.63mn compared with net buyers of QR0.32mn on November 14.The Arab institutions had no major net exposure for the ninth straight session.Trade volumes in the main market fell 3% to 251.43n shares, while value grew 3% to QR656.79mn and deals by 8% to 22,171.The venture market witnessed a 22% jump in trade volumes to 1.35mn equities, 34% jump in value to QR1.95mn and about 1% in transactions at 127.

Banks' external balance sheets have not developed at the same pace across the board, the report said, adding the UAE and Qatar display by far the largest net external balance sheet expansion, which is mostly concentrated on specific banks, with government-backed national champions predominating.
Business
GCC external debt maturity averages $660bn in 2023-25: S&P

The Gulf Co-operation Council (GCC) countries will have an average of $660bn of gross external debt, both public and private, maturing annually over 2023-25, according to Standard and Poor's (S&P), a global credit rating agency.Although the region's banking systems contribute 70% on average to this external debt rollover, driven by their high stock of contractually short-term external debt (including deposits); S&P said given most systems' strong net external asset positions and solid liquidity profiles, the region's banks have buffers to mitigate a hypothetical sudden stop in external funding or capital outflows."While regulators and individual banks try to lengthen the tenor of these facilities, we expect the GCC banking systems' external liability growth to push combined national rollover requirements to nearly $700bn per year by 2025, with the UAE and Qatar together comprising over half of the total," the rating agency said in a report.The $660bn is equivalent to roughly 40% of estimated combined 2023 current account receipts and usable reserves, compared to $250bn in 2013, which was about 14% (Brent oil prices averaged $108 per barrel that year, compared to an average of close to $82 through 2023 so far), according to S&P.Finding that the GCC banking systems' external liabilities coming due within the year will total $465bn in 2023, more than two-thirds of national requirements; it said "we forecast this will increase toward $500bn by 2025."Notably, banks' external balance sheets have not developed at the same pace across the board, it said, adding the UAE and Qatar display by far the largest net external balance sheet expansion, which is mostly concentrated on specific banks, with government-backed national champions predominating.In Qatar, the build-up of external debt was mainly channelled to finance large domestic projects, the rating agency highlighted.Finding that all systems, apart from Bahrain's retail banking sector, had very "comfortable" coverage, it said the government assets (which include estimates of external sovereign wealth fund assets) account for multiple times the stressed liability outflows.Although regional banking systems are driving up national gross external debt as related rollover risks to banks and sovereigns are expected to naturally increase as a result, it said however, most regional governments have liquid assets well exceeding hypothetical outflows and, if ever required, sovereign resources would be rapidly deployed to reinforce confidence."Additionally, our hypothetical stress test highlights regional banking systems are well positioned to meet these requirements without presenting a direct claim on fiscal resources," the report said.

The domestic institutions turned net buyers as the 20-stock Qatar Index rose 0.28% to 10,035.05 points, even as the Gulf bourses evoked mixed response, ahead of this week's US inflation data
Business
Domestic funds turn bullish as QSE gains 28 points; Islamic equities outperform

The Qatar Stock Exchange (QSE) Monday gained more than 28 points on the back of buying interests, especially in the banking sector..text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[101474]**The domestic institutions turned net buyers as the 20-stock Qatar Index rose 0.28% to 10,035.05 points, even as the Gulf bourses evoked mixed response, ahead of this week's US inflation data.The Gulf individual investors were seen net buyers in the main market, whose year-to-date losses truncated further to 6.05%.The Gulf funds were seen increasingly bullish in the main bourse, whose capitalisation added QR0.69bn or 0.12% to QR587.59bn with microcap segments gaining the most.The Arab retail investors continued to be net buyers but with lesser vigour in the main market, which regained from an intraday low of 10,001 points.The foreign individuals remained bullish but with lesser intensity in the main bourse, which saw as many as 5,650 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.01mn trade across two deals.The local retail investors turned net profit takers in the main market, which saw no trading of sovereign bonds and treasury bills.The Total Return Index rose 0.28%, All Share Index by 0.21% and Al Rayan Islamic Index (Price) by 0.43% in the main bourse, whose trade turnover and volumes were on the increase.The banks and financial services sector index gained 0.71%, real estate (0.27%) and consumer goods and services (0.15%); while insurance declined 1.1%, industrials (0.51%), transport (0.26%) and telecom (0.07%).Major gainers in the main market included Widam Food, Masraf Al Rayan, Meeza, Dlala, Zad Holding, Salam International Investment and Qamco. In the venture market, Mahhar Holding saw its shares appreciate in value.Nevertheless, Beema, QLM, Qatar Insurance, Lesha Bank, Industries Qatar and Estithmar Holding were among the shakers in the main market. In the juniour bourse, Al Faleh Educational Holding saw its shares depreciate in value.The domestic funds turned net buyers to the tune of QR4.05mn compared with net sellers of QR10.32mn on November 12.The Gulf individuals were net buyers to the extent of QR0.47mn against net profit takers of QR2.11mn the previous day.The Gulf institutions’ net buying increased perceptibly to QR0.45mn compared to QR0.03mn on Sunday.However, the local individuals turned net sellers to the tune of QR10.88mn against net buyers of QR0.33mn on November 12.The Arab individual investors’ net buying declined markedly to QR1.67mn compared to QR5.46mn the previous day.The foreign institutions’ net buying weakened noticeably to QR3mn against QR4.26mn on Sunday.The foreign retail investors’ net buying eased perceptibly to QR1.23mn compared to QR2.34mn on November 12.The Arab institutions had no major net exposure for the seventh straight session.Trade volumes in the main market soared 39% to 170.26n shares, value by 74% to QR468.96mn and deals by 92% to 16,160.The venture market witnessed a 9% jump in trade volumes to 0.94mn equities, 40% jump in value to QR1.34mn and 81% in transactions at 107.

Gulf Times
Business
Buying interests lift QSE above 10,000 points

The Qatar Stock Exchange (QSE) Sunday opened the week on a stronger note with its key index gaining 30 points to cross the 10,000 mark. .text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[100963]**The Arab individual investors turned net buyers as the 20-stock Qatar Index rose 0.3% to 1,006.93 points.The consumer goods, telecom and transport counters witnessed higher than average demand in the main market, whose year-to-date losses truncated to 6.59%.As much as 63% of the traded constituents extended gains to investors in the main bourse, whose capitalisation added QR1.58bn or 0.27% to QR586.9bn with microcap segments gaining the most.The foreign institutions were increasingly net buyers in the main market, which regained from an intraday low of 9,963 points.The foreign retail investors turned bullish in the main bourse, which saw as many as 5,625 exchange traded funds (sponsored by Masraf Al Rayan) valued at QR0.01mn trade across two deals.The Gulf institutions were net buyers, albeit at lower levels, in the main market, which saw no trading of sovereign bonds.The local retail investors turned marginally bullish in the main bourse, which saw no trading of treasury bills.The Total Return Index rose 0.3%, All Share Index by 0.27% and Al Rayan Islamic Index (Price) by 0.67% in the main bourse, whose trade turnover and volumes were on the decline.The consumer goods and services sector index gained 0.92%, telecom (0.9%), transport (0.43%), industrials (0.29%), banks and financial services (0.13%) and real estate (0.09%), while insurance was flat.Major gainers in the main market included Widam Food, Qatari German Medical Devices, QLM, Qatari Investors Group, Dukhan Bank, Qamco, Ooredoo and Milaha. In the venture market, both Al Faleh Educational Holding and Mahhar Holding saw their shares appreciate in value.Nevertheless, Commercial Bank, Estithmar Holding, Salam International Investment, Doha Insurance and Inma Holding were among the shakers in the main market.The Arab individual investors turned net buyers to the tune of QR5.46mn against net sellers of QR4.7mn on November 9.The foreign institutions’ net buying increased perceptibly to QR4.26mn compared to QR3.56mn the previous trading day.The foreign retail investors were net buyers to the extent of QR2.34mn against net profit takers of QR1.62mn last Thursday.The local individuals turned net buyers to the tune of QR0.33mn compared with net sellers of QR2.45mn on November 9.The Gulf institutions were net buyers to the extent of QR0.03mn against net sellers of QR7.66mn the previous trading day.However, the domestic funds turned net sellers to the tune of QR10.32mn compared with net buyers of QR12.5mn last Thursday.The Gulf individuals were net profit takers to the extent of QR2.11mn against net buyers of QR0.37mn on November 9.The Arab institutions had no major net exposure for the sixth straight session.Trade volumes in the main market fell 13% to 122.8mn shares, value by 32% to QR268.89mn and deals by 46% to 8,421.The venture market witnessed a 17% decline in trade volumes to 0.86mn equities, 39% jump in value to QR0.96mn and 41% in transactions at 59.

"Qatar has emerged as a vibrant and dynamic melting pot for CCIS, underpinned by a solid foundation of support and enabling ecosystem," Invest Qatar said, adding the CCIS in Qatar are evolving and deeply impacting the nation, fostering innovation and driving sustainable economic growth." PICTURE: Thajudheen
Business
Qatar's cultural and creative industries contribute QR20bn, says Invest Qatar

Doha's cultural and creative industries (CCIS) contributed as much as QR20bn to the local economy during 2021, which is 3% gross domestic product (GDP), according to Invest Qatar.Their contribution reflected the economic value generated through the creation, production and distribution of products and services in CCIS, Invest Qatar said in its latest report.The top three CCI-related business activities are advertising and market research (QR1.5bn); computer programming, consultancy and related activities (QR1.4bn); and manufacturing of wearing apparel (QR0.8bn), it said."Qatar has emerged as a vibrant and dynamic melting pot for CCIS, underpinned by a solid foundation of support and enabling ecosystem," Invest Qatar said, adding the CCIS in Qatar are evolving and deeply impacting the nation, fostering innovation and driving sustainable economic growth."Highlighting that there were as many as 23,907 CCIS-related businesses in Qatar; it said design, infrastructure for urban transport and advertising and marketing lead the enterprise composition of Qatar’s CCIS.Of the 23,907 CCIS-related entities, as many as 4,453 or 19% were in design; 3,167 or 13% in infrastructure; 3,157 or 13% in advertising and marketing; 2,097 or 13% in film, TV, video, radio, photography and music; 2,589 or 11% in IT, software, computer services, programming and consultancy; 2,549 or 11% in creative, arts and entertainment activities; 1,614 or 7% in publishing; 1,587 or 7% in sports activities and, amusement and recreation activities; and 1,284 or 5% in print.The other CCIS-related businesses in Qatar's are 230 in education, 146 in manufacturing, 32 in intellectual property, and 25 in architecture.The success of Qatar's CCIS is supported by five enabling factors such as international influence of culture, talent development and education, policy environment and support, infrastructure and connectivity and environment for entrepreneurship and innovation.A roadmap for enhancing the CCIS provides a structured and holistic approach that requires a co-ordinated effort from all stakeholders, it said adding a legislative and regulatory framework is required for an equitable environment in which CCIS can thrive.The report suggested that nurturing creative talent for CCIS involves a multidimensional approach that focus on talent development and attraction.As part of CCIS employment, cultural professions have a growing share in Qatar's labour force, it said.The professions in the cultural fields include employment in “visual arts, crafts, design services, creativity, audio-visual and interactive media, as well as cultural and natural heritage, performing arts, celebrations, sports, recreation, books, the press, tourism and intangible heritage”.Design and creativity services hold the largest share of workers in cultural professions at 40%, followed by others (26%), cultural and natural heritage (23%), and visual arts and crafts (11%)."Qatar is positioned to develop into a vibrant centre for artistic and cultural talent, advancing forward-thinking projects on a global scale," the Invest Qatar report said.Qatar, with a strong foundation in education, globally renowned universities, and research centres, has been providing a transformative landscape for creative excellence.The report said Qatar's national vision recognises the transformative power of the CCIS in shaping a dynamic and prosperous future.Qatar has state-of-the-art infrastructure and high-speed digital connectivity, making it an attractive destination for investors in the CCIs.These resources provide a solid foundation for fostering innovation and facilitating the growth of CCIs, offering a competitive edge for international investors.Qatar not only provides a vibrant environment for entrepreneurship and innovation, offering ample opportunities for investors in the CCIs to flourish; but also enables creative ventures to thrive and innovate by placing a strong emphasis on fostering cutting-edge technologies and solutions, combined with supportive policies, according to the report.

Qatar government intends to reduce its overall debt-to-GDP ratio, repaying its maturing external debt, according to Standard and Poor's in its latest credit note. PICTURE: Thajudheen
Business
Qatar's government debt-GDP ratio to fall to 30% by 2026: S&P

In its latest credit note, the international rating agency said the government intends to reduce its overall debt-to-GDP ratio, repaying its maturing external debt."We expect the government's debt-repayment strategy to reduce total general government debt to 30% of GDP by 2026, from 46% in 2022," it said.The government's strategy of paying off maturing external debt has reduced debt-servicing costs to below 5% of general government revenue, it noted.Higher gas production related to the NFE or North Field Expansion, expected to come on-stream from end-2025, should further increase Qatar’s government revenue, it said.Highlighting that the country's strong general government net asset position remains credit strength; S&P said "we expect it to increase over the period to 2026, supported by investment returns on Qatar's sovereign wealth fund, Qatar Investment Authority (QIA)."Averaging about 140% of GDP in 2023-26, the government's large liquid assets provide it with a strong buffer to mitigate the effects of external or financial shocks, it said.The government's net asset position "will remain a rating strength", averaging 103% of GDP over 2023-26, the rating agency added.S&P projected that the current account will maintain a surplus of about 20% of GDP on average over 2023-26, in line with its hydrocarbon production and price assumptions."The high level of assets accumulated within the sovereign wealth fund, the QIA, will continue to support Qatar's strong external position," the rating agency said.It estimated that, on average, Qatar's external liquid assets will surpass external debt by about 70% of current account payments in 2023-26.Despite the strong aggregate external position, Qatar stands out in the GCC as having a "significant" amount of net external banking sector liabilities, mainly divided between short-term non-resident deposits and, more recently interbank liabilities, which keep external financing needs high.Qatar ran current account surpluses over 2017-2019, but at the same time, materially increased the level of external debt in the economy to fund infrastructure investment within the country, according S&P.Nevertheless, it noted that banking sector external liabilities declined "significantly" over 2022, prompted by Qatar Central Bank (QCB) regulatory directives."At $60bn, foreign interbank liabilities now constitute the largest portion of bank foreign liabilities and, since end-2021, have increased by about half the amount that non-resident deposits have fallen. Still, we expect a continued regulatory push to further reduce the shorter-term external debt of the banking system particularly as credit growth slows in line with weaker economic activity," it said.

A higher than average demand, especially in the consumer goods and banking counters, led the 20-stock Qatar Index surge 2.73% this week which saw the Qatar Financial Centre’s purchasing managers’ index survey disclose that Doha’s non-energy private sector continued to see improved business conditions at the beginning of the fourth quarter of 2023
Business
External factors lift QSE sentiments as index surges 265 points

The softer-than-expected US jobs data and the Federal Reserve’s decision to pause rate hike had their overarching influence in the Gulf regional bourses, including Qatar Stock Exchange (QSE), which saw its key barometer gain 265 points and capitalisation add more than QR13bn this week.A higher than average demand, especially in the consumer goods and banking counters, led the 20-stock Qatar Index surge 2.73% this week which saw the Qatar Financial Centre’s purchasing managers’ index survey disclose that Doha’s non-energy private sector continued to see improved business conditions at the beginning of the fourth quarter of 2023.As much as 52% of the traded constituents extended gains to investors in the main market this week which saw Ernst and Young find that Qatar reported the Middle East and North Africa’s second largest initial public offering during the third quarter of 2023 with Meeza raising as much as $163mn.The domestic institutions continued to be net buyers but with lesser intensity in the main bourse this week which saw Standard and Poor’s (S&P) view that a low cost liquefied natural gas supplier Qatar will remain relatively in a “strong competitive position even beyond 2030”.The local retail investors turned extremely bearish in the main market this week which saw S&P forecast that Qatar’s consumer price index inflation to moderate to 3% this year against as high as 5% in 2022.The foreign individuals were seen increasingly into net selling in the main bourse this week which saw Qatar’s producers’ price index surge 5.45% month-on-month in September 2023.The Arab retail investors were net profit takers in the main market this week, which saw a total of 0.06mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.13mn trade across 24 deals.The Islamic index outperformed the other indices in the main bourse this week which saw as many as 0.08mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.77mn change hands across 77 transactions.Market capitalisation was seen expanding QR13.54bn or 2.37% to QR585.32bn on the back of large and midcap segments this week which saw the industrials and banks together constitute more than 56% of the total trade volume in the main market.Trade volumes and turnover were on the increase in the main bourse but they were on the decline in the venture market this week.The Total Return Index zoomed 2.73%, the All Share Index by 2.54% and the All Islamic Index by 2.77% this week, which saw no trading of sovereign bonds.The consumer goods and services sector index sector soared 4.49%, banks and financial services (3.83%), realty (2%) and industrials (1.91%); while telecom declined 2.04%, transport (1.08%) and insurance (1.02%) this week which saw no trading of treasury bills.Major gainers in the main market included Masraf Al Rayan, Woqod, Dukhan Bank, Doha Bank, QNB, Inma Holding, Mannai Corporation, Industries Qatar, Qamco, Qatar Electricity and Water, Barwa and Mazaya Qatar. In the venture market, Al Faleh Educational Holding saw its shares appreciate in value this week which saw Gulf Warehousing Company (GWC) sign agreement with Qatar Development Bank to support micro, small, and medium-sized enterprises.Nevertheless, Dlala, Qatar Oman Investment, GWC, Al Khaleej Takaful, Medicare Group, Widam Food, Qatari Investors Group, Gulf International Services, Ooredoo and Nakilat were among the shakers in the main market. In the junior bourse, Mahhar Holding saw its shares depreciate in value this week, which saw S&P affirm Commercial Bank’s long-term issuer credit ratings at 'A-/stable/A-2' with a "stable" outlook.The foreign institutions were net buyers to the tune of QR125.92mn against net sellers of QR147.56mn the week ended November 2.However, the local retail investors turned net sellers to the extent of QR102.69mn compared with net buyers of QR31.81mn a week ago.The foreign individuals’ net profit booking strengthened markedly to QR11.08mn against QR4.24mn the previous week.The Arab individuals were net sellers to the tune of QR8.58mn compared with net buyers of QR8.67mn the week ended November 2.The Gulf institutions turned net profit takers to the extent of QR7.52mn against net buyers of QR76.44mn a week ago.The Gulf retail investors were net sellers to the tune of QR0.44mn compared with net buyers of QR2.84mn the previous week.The domestic institutions’ net buying decreased significantly to QR4.4mn against QR32.02mn the week ended November 2.The Arab institutions had no major net exposure compared with net buyers to the extent of QR0.03mn a week ago.The main market witnessed a 4% jump in trade volumes to 1.32bn shares and 5% in value to QR3.12bn but on 2% fall in deals to 100,768 this week.In the venture market, trade volumes plummeted 31% to 6.81mn equities, value by 38% to QR9.42mn and transactions by 21% to 692.

A view of the Ras Laffan Industrial City, Qatar's principal site for the production of liquefied natural gas and gas-to-liquids. Qatar, a low-cost LNG supplier, will remain in a relatively strong competitive position even after 2030, according to Standard & Poor's.
Business
‘Qatar to remain strong competitively beyond 2030’; NFE to enhance revenue base: S&P

Qatar, a low-cost supplier of liquefied natural gas (LNG), will remain in a relatively strong competitive position even after 2030, according to Standard & Poor's (S&P), a global credit rating agency. Higher gas production related to the North Field Expansion or NFE, expected to come on stream from end-2025, should increase Qatar’s government revenue, it said, adding high oil prices and rising hydrocarbon production will support strong fiscal and external balances over 2023-26. Highlighting that the demand for LNG is likely to peak in the mid-2030s, it said the "stable" outlook reflects its view that Qatar's fiscal and external buffers should continue to benefit from the country's status as one of the world's largest exporters of LNG over the next two years, further boosted once production increases through the NFE over 2025-27. Expecting Qatar to remain one of the largest exporters of LNG globally, S&P said between 2025 and 2027, the government plans to increase Qatar’s LNG production capacity by 64%, to 126mn tonnes per year (mtpy) from 77 mtpy currently. "The strategic pivot away from Russian gas, particularly by European economies, suggests there will be demand for additional exports from Qatar. In our forecast, we assume that actual LNG production will be largely flat until 2025 but increase about 30% over 2026-27. We expect the full increase in capacity will take some time to materialise," the note said. QatarEnergy, the state-owned hydrocarbons bellwether, is responsible for all phases of the oil and gas industry in Qatar, including the NFE. It has maintained an interest of about 75% in the increase in LNG production capacity of 49 mtpy (to 126 mtpy from 77 mtpy). So far, QatarEnergy has signed LNG sale and purchase agreements with its joint venture partners amounting to up to 18 mtpy for terms, about 38% of the capacity increase. The contracts include those with China National Petroleum and China Petrochemical Corporation (Sinopec) for 4 mtpy each, Shell and TotalEnergies up to 3.5 mtpy each, ConocoPhillips up to 2 mtpy (this contract is for at least 15 years, the others are for 27 years), and Eni up to 1 mtpy. The credit rating agency also noted that once the NFE project boosts LNG production after 2025, per capita income levels of the country would increase further. Qatar's income levels remain among the highest of rated sovereigns, supporting its credit profile, it said, adding high GDP per capita, estimated at $77,200 in 2023, mitigates the effects of relatively weak trend growth, measured by the weighted average 10-year per capita real GDP growth rate. Expecting capital spending to remain strong, with a moderation in government investment mitigated by QatarEnergy's investment in the NFE project; S&P projects government investment of about QR60bn (6% of GDP or gross domestic product) by 2026, against a peak of about QR103bn (19% of GDP) in 2016, as some major infrastructure projects have been completed. "However, we expect QatarEnergy will invest about 8% of GDP on average per year over 2022-25. Public sector investment makes up about two-thirds of the gross capital formation in Qatar's economy," it said. Expecting a narrowing fiscal surplus in 2023, because of the decline in the oil price to average about $82 per barrel, from about $100 in 2022, S&P said with its expectation of largely flat oil production and prices from 2023, until production begins to pick-up in 2026, the budgetary surplus is slated to remain at about 4% of GDP annually over the period.

The domestic funds were seen net profit takers as the 20-stock Qatar Index lost 0.81% to 10,038.27 points yesterday.
Business
Domestic funds’ profit booking drags QSE 82 points; M-cap melts QR3.26bn

The Qatar Stock Exchange (QSE) Wednesday shed 82 points on the back of selling pressure, especially in the telecom and industrials sectors. .text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[99507]**The domestic funds were seen net profit takers as the 20-stock Qatar Index lost 0.81% to 10,038.27 points, as the markets expect the US Federal Reserve to increase interest rates.Dr Federico Sturzenegger, an economist and former president of Argentina Central Bank recently told Gulf Times that the US inflation is far from being resolved, hence “forcing the Fed to keep interest rates high for some time”.The Gulf retail investors were increasingly net sellers in the main market, whose year-to-date losses widened to 6.02%.About 75% of the traded constituents were in the red in the main bourse, whose capitalisation melted QR3.26bn or 0.55% to QR588.8bn with small and microcap segments losing the most.The foreign institutions’ weakened net buying had its influence on the main market, whose index had touched an intraday high of 10,107 points.The Islamic index was seen declining faster than the other indices in the main bourse, which saw as many as 5,050 exchange traded funds (sponsored by Masraf Al Rayan) valued at QR0.01mn trade across two deals.The local retail investors continued to be net sellers but with lesser intensity in the main market, which saw no trading of sovereign bonds.The Arab and foreign local retail investors also continued to be bearish but with lesser vigour in the main bourse, which saw no trading of treasury bills.The Total Return Index shed 0.81%, the All Share Index by 0.66% and the Al Rayan Islamic Index (Price) by 0.99% in the main bourse, whose trade turnover and volumes were on the decline.The telecom sector index tanked 1.37%, industrials (1.11%), real estate (0.77%), banks and financial services (0.55%) and transport (0.54%); while consumer goods and services was up 0.02% and insurance 0.01%.Major shakers in the main market included Mazaya Qatar, Aamal Company, Qatar Industrial Manufacturing, Qatar Islamic Bank, Ooredoo, Dukhan Bank, Meeza, Industries Qatar, Qamco, Ezdan and Gulf Warehousing.In the venture market, Mahhar Holding saw its shares depreciate in value.Nevertheless, Ahlibank Qatar, Mannai Corporation, Doha Bank, Qatar Oman Investment and Qatar Islamic Insurance were among the gainers in the main market. In the junior bourse, Al Faleh Educational Holding saw its shares appreciate in value.The domestic institutions were net sellers to the tune of QR6.73mn compared with net buyers of QR1.35mn on November 7.The Gulf individuals’ net profit booking strengthened marginally to QR0.26mn against QR0.19mn the previous day.The foreign institutions’ net buying decreased noticeably to QR30.86mn compared to QR38.02mn on Tuesday.However, the local individuals’ net selling declined perceptibly to QR13.5mn against QR22.11mn on November 7.The Gulf institutions’ net profit booking weakened markedly to QR7.26mn compared to QR8.6mn the previous day.The Arab individual investors’ net selling shrank notably to QR2mn against QR5.64mn on Tuesday.The foreign retail investors’ net profit booking eased perceptibly to QR1.11mn compared to QR2.83mn on November 7.The Arab institutions had no major net exposure for the fourth straight session.Trade volumes in the main market fell 37% to 187.13mn shares, value by 25% to QR519.52mn and deals by 17% to 17,794.The venture market witnessed 10% decline in trade volumes to 1.13mn equities, 20% in value to QR1.38mn and 10% in transactions to 124.

Meeza, which became Qatar's first IPO through book building, was listed on the Qatar Stock Exchange in August 2023.
Business
Qatar reports Mena’s second-largest IPO in Q3-2023: EY

Qatar has reported the Middle East and North Africa's (Mena) second-largest initial public offering (IPO) during the third quarter (Q3) of 2023 with Meeza, an established end-to-end managed IT services and solutions provider, raising as much as $193mn, according to Ernst and Young (EY), a global consultant.Meeza, which became Qatar's first IPO through book building, was listed on the Qatar Stock Exchange (QSE) in August 2023.As many as 324.49mn shares were offered for subscription, representing 50% of the total capital. Some 121.39mn shares were offered for qualified investors who participated in the book-building process, representing 18.71% of the capital, and 203.1mn shares for Qatari individual and corporate investors, representing 31.29% of the company's capital.The Mena markets otherwise saw six IPOs during Q3-2023, raising $523mn. This however represented a 14% decrease in the number of maiden offers and a 66% drop in proceeds compared with the previous year period.EY said the first-day returns were "positive", with all six listings registering a gain. Meeza shares were seen vaulting 6% on debut, although it touched an intra-day high of 10%."Investor confidence in the region continues, with 21 out of the 29 year-to-date (YTD) IPOs ending Q3-2023 with a gain in share price since listing," said Brad Watson, EY Mena Strategy and Transactions Leader.At the end of Q3-2023, there were a total of 29 IPOs YTD in Mena with total proceeds of $5.8bn, marking a 6% reduction in volume and a 61% decline in funds raised year on year. All YTD listing activity took place in the Gulf Cooperation Council region."Despite the lower levels of proceeds from Mena listings, the IPO pipeline for the fourth quarter (Q4) of 2023 and into 2024 remains promising, particularly driven by Saudi Arabia, where 27 companies have announced their intention to list on the Tadawul," EY said.The IPOs remain driven by the dominant economies of Saudi Arabia and the UAE, which are pursuing their strategic agenda of increasing capital market activity on the local exchanges and stepping up efforts to attract foreign investment, according to Watson.“Despite a slow Q3 2023, we are still optimistic that the remainder of 2023 and 2024 will show a healthy number of IPOs on the Mena markets based on current pipelines. The Q4-2023 is already off to a strong start with three IPOs successfully completed in Saudi Arabia, and we are expecting additional IPOs toward the end of 2023 in the UAE," said Gregory Hughes, EY Mena IPO and Transaction Diligence Leader.EY said sustainability initiatives continue to gain prominence in the region, with companies increasingly realising the importance of environmental, social, and corporate governance (ESG) to investors.With the UAE gearing up to host the 28th UN Climate Change Conference (COP28) this year, Mena stock exchanges are doing their part in supporting ESG reporting and adoption.