By Santhosh V Perumal/Business Reporter
A resolve to the US “fiscal cliff” issue had a positive spillover in the Qatar Exchange with about 81% of its stocks extending gain to investors and QR13bn in capitalisation being added during the week.
The industrials, banking and transport sectors witnessed brisk buying as both the 20-stock Qatar Index and Total Return Index gained 3.1% in the week that saw Qatar Exchange announce the launch of new Islamic index from next week.
Major gainers included QNB, Commercialbank, Masraf Al Rayan, Industries Qatar (IQ), Qatari Investors Group, Gulf International Services, United Development Company, Barwa, Vodafone Qatar, Qatar Telecom, Milaha and Nakilat in the week that witnessed Mannai Corporation disclose that its rights issue will hit the market from January 27.
The QE All Share Index (comprising wider constituents) expanded 3.02% with the insurance index gaining the maximum of 4.16%, followed by industrials (3.4%), banks and financial services (3.05%), consumer goods (2.93%), transport (2.84%), realty (2.37%) and telecom (1.64%).
Globally, markets were in a rally after the US reached a compromise deal to overcome its fiscal issues, whose deadline was December 31 and its “knee-jerk” reaction was reflected on the Gulf bourses as well, analysts said.
In the immediate run, what the market follows will be rather domestic, which is the fourth quarter earnings, one of them said.
Of the 42 stocks; 34 advanced, while only six declined and two were unchanged. Eight of the 12 banks and financial services, seven each of the eight industrials and the eight consumer goods, all of the five insurers, three of the four realty and the two telecom and the three transport stocks closed higher in the week.
Market capitalisation swelled 2.79% or about QR13bn to QR470.25bn.
Foreign institutions turned net buyers to the tune of 5.95% or QR43.88mn. A much higher 26.32% of them bought equities against 13.33% the week ended December 27 whereas a much lower 20.37% offloaded compared to 32.66%.
However, domestic institutions turned net sellers to the extent of 0.18% or QR1.33mn. A higher 36.29% of them were into buying against 25.93% in the previous week but a much higher 36.47% into selling compared to 16.69%.
Qatari individual investors also turned net sellers to the tune of 5.35% or QR39.46mn. A much lower 29.05% of them were into purchasing stocks against 47.26% in the previous week and a lower 34.4% into offloading compared to 38.95%.
Non-Qatari retail investors were net sellers to the extent of 0.43% or QR3.17mn. A lower 8.34% of them bought scrips against 13.47% the week ended December 27 and a lower 8.77% sold compared to 11.7%.
Total trading volume rose 5% to 15.68mn shares and value by 25% to QR737.49mn while transactions fell 1% to 9,963 in the week.
In terms of volume, banks and financial services stocks accounted for 47.51%, transport 15.31%, industrials 12.82%, real estate 11.29%, consumer goods 7.02%, telecom 5.36% and insurance 0.77%.
The insurance sector’s trading volume quadrupled to 0.12mn shares, transport’s surged 82% to 2.40mn, industrials by 30% to 2.01mn and banks and financial services by 14% to 7.45mn; while that of consumer goods plummeted 55% to 1.10mn, realty by 19% to 1.77mn and telecom by less than 1% to 0.84mn.
In terms of value, the banks and financial services sector’s shares constituted 50.37% of the total, industrials 26.07%, transport 7.99%, consumer goods 7.44%, real estate 4.94%, telecom 2.25% and insurance 0.94%.
The insurance sector’s stocks trading value more than quadrupled to QR6.90mn, transport’s more than doubled to QR58.93mn, industrials’ soared by 47% to QR192.24mn and banks and financial services by 33% to QR371.49mn; while that of consumer goods plunged 40% to QR54.89mn, telecom by 9% to QR16.57mn and realty by 8% to QR36.46mn.
IQ stocks accounted for 19.37% of the total stocks trading value, QNB (17.71%) and Rayan (9.14%).
In terms of transactions, the banks and financial services sector’s share in total was 39.06%, industrials 19.48%, transport 12.56%, consumer goods 12.10%, real estate 10.93%, telecom 4.72% and insurance 1.14%.
The consumer goods’ stocks transactions tanked 32% to 1,206; realty by 19% to 1,089; banks and financial services by 6% to 3,892 and telecom by 5% to 1,251; whereas those of transport gained 67% to 1,251; insurance by 61% to 114 and industrials by 31% to 1,941.
