The Qatar Exchange (QE) Index gained 73.42 points, or 0.79%, during the week, to close at 9,372.75 points. Market capitalisation rose by 0.63% to reach QR515.4 billion (bn) as compared to QR512.2bn at the end of the previous week. Of the 42 listed companies, 24 companies ended the week higher, 16 fell and 2 remained unchanged. Qatar Electricity & Water Co. (QEWS) was the best performing stock with a gain of 3.18%; the stock is up 22.43% year-to-date (YTD). United Development Company (UDCD) was the top decliner, down 3.68%; the stock is still up 25.00% YTD.
Qatar lifts 2013 GDP growth forecast to 5.3%. According to a report released by the General Secretariat for Development Planning (GSDP), Qatar’s real GDP growth in 2013 is forecasted to increase to 5.3% from the earlier 4.8%. The GSDP cited changes to Qatar’s expected output of oil & gas in 2013 as the key driver behind this increase. Further, the report indicated that 4.5% growth is predicted for 2014. We note that the QNB Group continues to forecast real GDP growth of 6.5% and 6.8% in 2013 and 2014, respectively.
Qatari earnings season set to start. For the benefit of readers, we highlight second quarter 2013 (2Q2013) estimates for key QE companies. For Industries Qatar (IQCD), we forecast earnings per share (EPS) of QR3.57 versus QR4.21 for 1Q2013, a decline of 15.3% quarter-over-quarter (QoQ), but a growth of 1.4% year-over-year (YoY). For Qatar Electricity & Water Co. (QEWS), we expect EPS of QR3.47, an increase of 72.9% (flat YoY). For Qatar Gas Transport Co. (Nakilat or QGTS), we forecast EPS of QR0.38, up 20.0% QoQ (up 4.1% YoY). For Milaha (QNNS), we predict EPS of QR1.85, down 38.4% QoQ (up 35.0% YoY).
For the banking sector, we expect a mixed bag of results. For Masraf Al Rayan (MARK), we forecast EPS of QR0.56 versus QR0.53, a growth of 4.3% QoQ (up 12.3% YoY). For Doha Bank (DHBK), we forecast EPS of QR1.43, a decline of 6.7% QoQ (up 5.4% YoY). For Qatar Islamic Bank (QIBK), we forecast EPS of QR1.42, a growth of 15.1% QoQ (down 4.0% YoY). For Qatar International Islamic Bank (QIIK), we forecast EPS of QR1.19, a decline of 2.4% QoQ (up 9.9% YoY).
Equity trading value during the week decreased by 24.67% to reach QR972.2 million (mn), as compared to QR1,290.7mn in the prior week. The Banks & Financial Services sector led the trading value during the week, accounting for 42.82% of the total equity trading value.
Equity trading volume decreased by 31.03% to reach 19.5mn shares, as against 28.3mn shares in the prior week. The number of transactions fell by 18.16% to reach 12,377 transactions versus 15,124 transactions in the prior week. The Banks & Financial Services sector led the trading volume, accounting for 32.63% of the total volume.
Foreign institutions remained bearish for the week with overall net selling of QR70.1mn (including T-bills) versus. net selling QR100.0mn in the prior week. Foreign individuals bought QR17.0mn (including T-Bills) versus net selling of QR15.5mn in the prior week. Qatari institutions remained bullish with net buying of QR69.2mn versus net buying of QR142.6mn in the prior week. Qatari individuals remained sellers with net selling of QR16.3mn as compared to QR27.1mn in the prior week.