60% stocks extend gains to investors as QR4bn added to capitalisation

By Santhosh V Perumal/Business Reporter

Foreign institutions’ QR265mn (net) buying had had its significant influence in the strong rally on Qatar Exchange (QE) during the week.

QE, which was the second best performer in the Gulf region during the week, saw about 60% of the stocks extend gains to investors.

More than QR4bn in capitalisation was added during the week that saw HH the Emir Sheikh Tamim bin Hamad al-Thani chalk out new economic path by outlining priorities towards controlling inflation, in his maiden speech at the 42nd Advisory Council.

The QE 20-stock Qatar Index (based on price data) gained 1.41% in the week that witnessed Saudi Arabia add 2.71%, Muscat (1.2%), Bahrain (0.37%) and Abu Dhabi (0.16%); while Dubai and Kuwait fell 0.81% and 0.09% respectively.

Transport and industrials sectors outperformed the major indices during the week, which featured global credit rating agency Standard and Poor’s expect that Qatar, along with Kuwait, may soon introduce new rules, including capital charges for bank lending to projects, which ought to affect financial services firm.

Local and non-Qatari retail investors continued to be profit takers in the exchange during the week that saw Industries Qatar (IQ) subsidiary Gulf Drilling International sign a QR865mn five-year contract with Occidental Petroleum of Qatar (Oxy) to press into service its newly acquired rig.

The 20-stock Total Return Index rose 1.41%, All Share Index (comprising wider constituents) by 1.05% and Al Rayan Islamic Index by 1.19% in the week that saw Qatar Insurance eye $1bn premium from its Q-Re in the next five years.

QE had reported 19.35% gains year-to-date (YTD), which, however, was lower than Dubai’s 78.64% surge, Abu Dhabi (46.41%), Kuwait (33.79%) and Saudi Arabia (21.49%). Muscat and Bahrain were up 17.24% and 13.19% respectively.

There overall market liquidity — which was largely skewed towards banking, real estate and industrials — expanded mainly on higher volumes in the banking, industrials and telecom stocks in the week that witnessed Invest AD caution that the Gulf regional earnings look like a mixed bag and equity market sentiment could see some short-term weakness.

The sector prospects in the QE were rather bright, especially on strong outlook on the telecom, banking and industrials equities in the week.

Of the 42 stocks, 25 advanced; while 16 declined and one was unchanged in the week.

Among the major gainers were IQ, Nakilat, Commercial Bank, Doha Bank, Qatar Islamic Bank, Masraf Al Rayan, Qatari Investors Group, Gulf International Services, Barwa, United Development Company, Milaha and Qatar Insurance Company; even as QNB, Alijarah Holding, Ooredoo, Mazaya Qatar, Al Meera and Qatar General Insurance and Reinsurance bucked the trend in the week.

Transport equities were seen appreciating 2.29%, industrials (1.75%), realty (1.38%), banks and financial services (0.97%), consumer goods (0.18%) and insurance (0.08%); while telecom fell 0.86%.

Seven of the eight industrials, six of the 12 banking, four of the five insurers, three of the eight consumer goods; two each of the four real estate and the three transport and one of the two telecom stocks closed higher in the week.

Market capitalisation expanded 0.77% to QR537.22bn. Mid cap equities gained about 2% and large caps by 1%; whereas small caps fell about 1% in the week.

Small, mid and large caps have gained YTD 23.05%, 21.32% and 16.33% respectively; whereas micro caps fell 5.79%.

Foreign institutions were increasingly bullish as their net buying surged to QR265.22mn compared to QR85.38mn the week ended October 31.

However, domestic institutions turned bearish as they were net sellers to the tune of QR127.53mn against net buyers of QR46.76mn the previous week.

Qatari individual investors continued to be bearish but with lesser vigour as their net selling fell to QR93.81mn against QR107.02mn the week ended October 31.

Non-Qatari retail investors were increasingly into profit booking as their net selling soared to QR43.89mn compared to QR25.12mn the previous week.

Indicating higher liquidity, total trading volume rose 9% to 38.04mn shares with the banking and financial services sector accounting for 34.17% of the total, followed by real estate (25.45%), industrials (16.93%), consumer goods (8.75%), transport (6.55%), telecom (4.47%) and insurance (3.68%).

The banking sector’s trading volume more than doubled to 13mn shares, telecom’s surged 83% to 1.7mn, industrials by 78% to 6.44mn and transport by 24% to 2.49mn; whereas insurance’s plummeted 41% to 1.4mn, consumer goods by 34% to 3.33mn and realty by 34% to 9.68mn.

Reflecting brighter expected prospects, total stocks trading value expanded 30% to QR1.88bn with the banks and financial services sector stocks accounting for 34.73% of the total, followed by industrials (31.71%), real estate (11.2%), consumer goods (9.51%), telecom (4.78%), transport (4.28%) and insurance (3.79%).

The telecom sector’s stocks trading value almost tripled to QR90.09mn, banks and financial services’ shot up 94% to QR654.2mn, industrials by 77% to QR597.34mn and transport by 45% to QR80.62mn; while insurance’s plunged 42% to QR71.37mn, realty by 35% to QR210.98mn and consumer goods by 26% to QR179.1mn.

Total market transactions expanded 78% to 27,159 with the banks and financial services sector’s share at 26.97%, followed by industrials (24.35%), consumer goods (15.57%), real estate (13.33%), telecom (8.18%), transport (5.88%) and insurance (5.71%).

The telecom sector’s deals more than tripled to 2,221; insurance’s more than doubled to 1,552; consumer goods’ surged 97% to 4,228; industrials by 91% to 6,614; banks and financial services by 85% to 7,326; transport by 43% to 1,597 and realty by 14% to 3,621.

In the debt market, as many as 2,500 bonds worth QR25.13mn traded across two transactions and a total of 101,000 of treasury bills valued at QR1bn changed hands in 20 deals.