QE extends gains as valuations attract foreign buying interest

By Santhosh V Perumal

Business Reporter

Attractive valuations prompted foreign institutions to buy (net) equities worth QR108mn, lifting the Qatar Exchange for the second day yesterday.

More than 74% of the equities appreciated as the 20-stock Qatar Index (based on price data) rose 0.75% to 9,915.21 points.

The industrials sector was seen outperforming major indices in the market, which is up 18.62% year-to-date.

Domestic institutions, however, increasingly resorted to profit-booking amid higher volumes, especially on a substantial jump in trading activities at the consumer goods, industrials and real estate counters.

Major gainers included QNB, Qatar Islamic Bank, Commercial Bank, Industries Qatar, Qatari Investors Group, Gulf International Services, Qatar Insurance, United Development Company, Barwa, Mazaya Qatar, Nakilat and Milaha; even as Vodafone Qatar bucked the trend.

The 20-stock Total Return Index also gained 0.75% to 14,166.56 points, the All Share Index (with wider constituents) by 0.7% to 2,482.75 points and the Al Rayan Islamic Index by 0.56% to 2,830.57 points.

All the three indices factored in dividend income as well.

Industrials equities appreciated the maximum of 0.84%, followed by consumer goods (0.74%), banks and financial services (0.73%), insurance (0.63%), realty (0.56%), transport (0.54%) and telecom (0.29%).

Market capitalisation rose 0.73%, or about QR4bn, to QR535.87bn. Large and small cap equities gained about 1% each and mid cap (0.58%).

Foreign institutions were increasingly bullish as their net buying rose to QR108.33mn compared to QR54.83mn on Monday. However, domestic institutions’ bearish grip strengthened as their net selling surged to QR97.95mn against QR3.96mn the previous day.

Non-Qatari individuals continued to be bearish, but with lesser vigour, as their net selling fell to QR6.41mn compared to QR7.73mn on Monday.

Qatari individual investors’ profit-booking became less intense as their net selling sunk to QR3.98mn against QR43.14mn the previous day.

Total trading volume expanded 70% to 9.21mn stocks, value by 85% to QR530.01mn and transactions by 57% to 6,324.

The consumer goods sector’s trading volume more than doubled to 0.65mn shares and value more than tripled to QR35.44mn as deals more than tripled to 958.

The insurance sector saw its trading volume more than double to 0.23mn equities, while value also more than doubled to QR13.37mn as transactions more than tripled to 314.

The industrials sector’ trading volume more than doubled to 1.91mn shares, value soared 84% to QR200.47mn and deals by 41% to 1,758.

There was an 85% surge in the real estate sector’s trading volume to 1.85mn stocks; value more than doubled to QR41.28mn as transactions jumped 51% to 685.

The banking sector’s trading volume gained 67% to 3.85mn shares on more-than-doubled value and deals to QR211.12mn and 1,944 respectively.

However, the telecom sector’s trading volume plummeted 23% to 0.24mn shares, value by 75% to QR8.86mn and transactions by 72% to 225.

The market witnessed 11% plunge in transport sector’s trading volume to 0.48mn stocks, whereas value expanded 24% in value to QR19.47mn and deals by 98% to 440.

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