95% equities extend gains on QE on robust buying

By Santhosh V Perumal

Business Reporter

The Qatar Exchange yesterday opened the week on a stronger note with 95% of its stocks extending gains and capitalisation enhancing by about QR8bn, mainly due to robust buying support from foreign institutions.

Although local and foreign retail investors, as well as domestic institutions resorted to profit booking, the 20-stock Qatar Index (based on price data) rose for the second straight session by 1.67% to 9,780.34 points. The market is up 17% year-to-date.

Buying was pronounced in transport, real estate and industrials and they outperformed the benchmarks as their indices appreciated more than 2% each on reports of the US-Russia deal to put Syria’s chemical weapons under international control.

The overall market liquidity improved significantly, especially on higher volumes in the banking, telecom and transport counters.

Major movers included Industries Qatar, QNB, Commercial Bank, Doha Bank, United Development Company, Barwa, Mazaya Qatar, Barwa, Qatar Insurance, Masraf Al Rayan, al khaliji, Gulf International Services, Milaha, Nakilat, Widam Food and Al Meera.

The 20-stock Total Return Index also gained 1.67% to 13,973.87 points, All Share Index (with wider constituents) by 1.60% to 2,460.85 points and Al Rayan Islamic Index by 1.6% to 2,803.85 points. All the three indices factored in dividend income as well.

Transport stocks gained the maximum of 2.8%, followed by realty (2.51%), industrials (2.11%), consumer goods (1.42%), banks and financial services (1.17%), insurance (0.97%) and telecom (0.95%).

Total market capitalisation expanded 1.43% to QR533.24bn. Mid caps rose about 2%, and micro, large and small caps by more than 1% each. Foreign institutions were increasingly bullish as their net buying swelled to QR61.55mn compared to QR12.31mn last Thursday.

However, domestic institutions were increasingly into profit booking as their net selling surged to QR11.37mn against QR2.78mn the previous trading day.

Qatari individual investors were also increasingly bearish as their net selling soared to QR39.66mn compared to QR15.01mn last Thursday.

Non-Qatari individuals turned profit takers that they were net sellers to the tune of QR10.56mn against net buyers of QR5.51mn the previous day.

Total trading volume shot up 80% to 13.47mn stocks, value by 70% to QR477.85mn and transactions by 42% to 5,135.

The banking sector witnessed an almost tripling in trading volume to 4.30mn shares and an almost doubling of value to QR152.39mn on a 65% jump in deals to 1,503. The market witnessed more than doubling of telecom sector’s trading volume to 0.50mn stocks, value surged 78% to QR23.52mn and transactions by 1% to 256.

The transport sector’ trading volume zoomed 93% to 1.78mn stocks, value more than doubled to QR53.72mn and deals also more than doubled to 566.

The industrials sector’s trading volume expanded 61% to 1.27mn stocks, value by 25% to QR87mn and transactions by 28% to 904.

There was a 48% jump in real estate sector’s trading volume to 4.42mn equities, 43% in value to QR94.14mn and 31% in transactions to 11,78. The consumer goods sector’s trading volume gained 33% to 1.14mn shares, value by 65% to QR63.96mn and deals by 28% to 667.

The insurance sectors’ trading volume was up 20% to 0.06mn shares and value by 5% to QR3.12mn whereas transactions fell 2% to 61.

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

Regional markets surge after deal on Syria

Regional markets rose sharply yesterday after the US-Russian deal on removing Syria’s chemical weapons appeared to avert, at least for coming weeks or months, a US military strike against Damascus.

The Saudi benchmark climbed 1.8% to 8,034 points, its fifth gain in the last six sessions since it dropped to a two-month low on fears of a possible US attack on Syria.

Gains were spread across sectors and the index broke minor technical resistance at 8,004 points, its early September high; stronger resistance lies on August’s multi-year peak of 8,223.

In the UAE, Dubai’s index jumped 4.8% to 2,660 points, up for a fourth session since it slumped to a two-month low.

Real estate shares led gains and Union Properties surged 11.6% to a near four-year-high. The stock has risen 89.9% in 2013, mostly in the last four weeks. It was briefly suspended at the opening while the company notified the market of a board meeting. It resumed after the company released a short statement, which said the meeting was held to discuss the minutes of a previous meeting and “the regular activities of the company”.

In Abu Dhabi, small-cap Eshraq Properties rose 4.6%. The company said in March that it aimed to cross-list its shares in Saudi Arabia’s market; it said yesterday that it was negotiating with several banks in Saudi Arabia to select a financial advisor in order to complete the cross-listing requirements. Abu Dhabi’s benchmark rose 1.8%.

In Egypt, Citadel Capital slipped 1.5% to 3.22 Egyptian pounds. The private equity firm has obtained regulatory clearance to ask shareholders to approve a 3.64bn Egyptian pound ($528mn) capital increase, it said yesterday.

The main Egyptian index gained 0.5%, leaving it nearly flat on the year.

Elsewhere, in Kuwait the index rose 1.9% to 7,730 points, the Oman index gained 0.7% to 6,623 points and the index in Bahrain advanced 0.3% to 1,186 points.