Qatar Exchange extends gains to stay above 10,000

By Santhosh V Perumal/Business Reporter

Foreign institutions yesterday resorted to profit-booking, a trend that was largely visible in other emerging markets, but the Qatar Exchange extended its bullish run to stay above the psychological level of 10,000 for the third day.

Domestic institutions remained bullish, but with lesser vigour, as they pumped in (net) QR24mn to lift the 20-stock Qatar Index (based on price data) by 0.21%, although market breadth was skewed towards shakers.

Transport and banking stocks were seen to outperform the key market indices. The market is up 20.41% year-to-date.

The market liquidity improved, especially on account of substantially higher volumes in telecom, consumer goods and banking sectors.

Aamal Company, Qatar Islamic Bank, International Islamic, al khaliji, Qatari Investors Group, Vodafone Qatar and Milaha were among the prime gainers, while Industries Qatar, Commercial Bank, Masraf Al Rayan, United Development Company and Barwa lost their sheen.

The 20-stock Total Return Index also rose 0.21% to 14,380.87 points, the All Share Index (with wider constituents) by 0.15% to 2,530.60 points and the Al Rayan Islamic Index by 0.19% to 2,886.99 points.

All the three indices factored in dividend income as well.

Transport stocks appreciated 1.23%, followed by banks and financial services (0.54%) and consumer goods (0.05%), while insurance fell 0.81%, telecom (0.65%), real estate (0.52%) and industrials (0.18%).

Market capitalisation was rather flat at QR548.66bn.

Of the 42 stocks, 18 advanced, while 23 declined and one was not traded.

Domestic institutions’ bullish grip slacked with their net buying falling to 5.78%, or QR23.62mn, compared to QR41.53mn on Tuesday.

On the other hand, foreign institutions turned bearish as they were net sellers to the tune of 2.96% or QR12.10mn against net buyers of QR35.73mn the previous day.

On the retail side, Qatari individual investors continued to be profit takers, but with much lesser vigour, as their net selling sunk to 3.81%, or QR15.57mn, compared to QR66.04mn on Tuesday.

Non-Qatari individuals turned bullish as they were net buyers to the extent of 0.99%, or QR4.05mn, against net sellers of QR11.19mn the previous day.

Total trading volume expanded 42% to 12.17mn stocks, value by 21% to QR408.67mn and transactions by 21% to 5,023.

The telecom sector saw its trading volume almost quadruple to 1.72mn shares, but value fell 16% to QR26.01mn. Deals more than doubled to 433.

The consumer goods sector witnessed more than tripling of trading volume to 1.12mn shares, more than doubling in value to QR50.89mn and 1 65% jump in transactions to 596.

The insurance sector saw its trading volume and value more than double to 0.41mn shares and QR24.69mn respectively on more than tripled deals to 268.

There was a 54% surge in industrials trading volume to 1.94mn shares, 20% in value to QR70.55mn and 45% in transactions to 1,092.

The banking sector’s trading volume soared 47% to 3.45mn, value by 17% to QR118.46mn and deals by 9% to 1,221.

The transport sector had seen its trading volume expand 47% to 2.19mn stocks, value by 37% to QR89.17mn and transactions by 3% to 916.

However, the market witnessed a 47% plunge in real estate trading volume to 1.33mn equities, 42% in value to QR28.91mn and 38% in deals to 497.

In the debt market, there was no trading of bonds and treasury bills.

Arabtec jumps 3.9% on merger hopes

Shares in Dubai builder Arabtec jumped to a 15-month high yesterday after its chief executive said it was considering a merger with the largest contractors in Saudi Arabia and Kuwait to create a pan-Gulf construction firm.

“We are now looking for a merger with two of the biggest construction companies in the Gulf, one in Saudi Arabia and the other in Kuwait,” Hasan Abdullah Ismaik told CNBC’s Arabic news channel in an interview, without naming either of the companies.

Arabtec later denied media reports that it was considering a merger.

It was unclear if serious negotiations were actually going on, and bankers in the region said any cross-border merger would face major technical, regulatory and possibly political obstacles. But shares in Arabtec rose 3.9% to 2.65 dirhams in heavy trade.

Dubai’s market index climbed 0.2% to close at 2,670 points, less than 10 points away from Aug. 6’s near five-year high.

Speculative trading dominated most Gulf markets because of a lack of fresh corporate news.

Abu Dhabi’s measure climbed 0.5%, extending 2013 gains to 49%. Trading volume jumped to a two-week high.

Elsewhere, Egypt’s index ticked up 0.05% to 5,390 points; Saudi Arabia’s measure gained 0.4% to 8,215 points; Kuwait’s index slipped 0.3% to 8,102 points; Oman’s index retreated 0.3% to 6,904 points, while Bahrain’s benchmark declined 0.2% to 1,200 points.