Weekly Market Report
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The Qatar Exchange (QE) Index gained 138.72 points, or 1.41%, during the week, to close at 9,976.21 points. Market capitalisation increased by 0.77% to reach QR537.2 billion (bn) as compared to QR533.1 at the end of the previous week. Of the 42 listed companies, 25 companies ended the week higher while 16 fell and 1 remained unchanged. Milaha (QNNS) was the best performing stock with a gain of 3.13%; the stock is up 40.89% year-to-date (YTD). Qatar Cinema & Film Distribution Co. (QCFS) was the worst performing stock with a decline of 9.73%; the stock is down 29.88% YTD.
The GCC markets were mixed during the week. Saudi Arabia’s benchmark index (SASEIDX) was the top performer, surging by 2.7% week-over-week) WoW. The second best performing market was Qatar, rising by 1.4% MoM followed by Oman, up 1.2% MoM. Other regional indices were mixed with Dubai’s benchmark index (DFMGI) declining by 0.8% WoW. However, DFMGI is still the best performing index YTD with a gain of 78.6%.
QE Index is up 19.3% YTD. After posting a flattish performance in September, the Qatari equity market rebounded in October and the first week of November. We believe the upcoming dividend payouts season (Qatari stocks usually pay annual dividends with full year results; the 2013 results will be announced in early part of 2014) and the relative underperformance versus regional indices are the primary drivers of the market in the last couple of weeks. On the results front, all companies (with the exception of Vodafone Qatar) reported their nine-month results. Despite posting generally weaker-than-expected results, in aggregate, the 41-listed companies reported a 6.67% growth in net profits against 1.88% in the comparable period of 2012. On the banking sector front, deposits have increased by 14.8% YTD while loan book has grown by 9.0% YTD (as of September 2013). The banking sector’s loan-to-deposit ratio (LDR) stood at 106% at the end of September 2013 vs. 111% at the end of 2012.
Trading value during the week increased by 29.72% to reach QR1.88bn vs. QR1.45bn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 34.73% of the total equity trading value.
Trading volume increased by 8.86% to reach 38.0mn shares vs. 34.9mn shares in the prior week. The number of transactions rose by 77.89% to reach 27,159 transactions versus 15,267 transactions in the prior week. The Banks and Financial Services sector led the trading volume, accounting for 34.17% of the total.
Foreign institutions remained bullish for the week with net buying of QR265.2mn vs. net buying of QR85.4mn in the prior week. Qatari institutions turned bearish with net selling of QR127.5mn vs. net buying of QR46.8mn the week before.