The Qatar Exchange (QE) Index gained 70.60 points, or 0.69%, during the week, to close at 10,283.00 points. Market capitalization increased by 0.62% to reach QR553.2 billion (bn) as compared to QR549.8bn at the end of the previous week. Of the 42 listed companies, 23 companies ended the week higher while 18 fell and 1 remained unchanged. Dlala Brokerage & Investments Holding Company (DBIS) was the best performing stock with a gain of 9.51%; the stock is down 29.22% year-to-date (YTD). Islamic Holding Group (IHGS) was the worst performing stock with a decline of 3.15%; the stock is still up 5.13% YTD.
Post the announcement of a QR20bn real estate deal with Qatari Diar, Barwa Real Estate Co. (BRES) was the biggest contributor to the QE Index’s weekly gain. The stock contributed 35.9 points to the index’s weekly gain; BRES is up 8.03% week-over-week (WoW). Qatari Investors Group (QIGD) was the second biggest contributor adding 15.6 points; the stock gained 8.53% WoW. In our view, QIGD’s stock continues to benefit from improved fundamentals and saw continued appetite from domestic individuals during the week.
On the other hand, Gulf International Services (GISS) dragged the index down by 6.2 points WoW on profit taking. We note that the stock has been a significant outperformer almost doubling this year. Industries Qatar (IQCD) also shaved 5.8 points off the index during the week; IQCD is up 18.3% YTD.
Trading value during the week increased by 37.45% to reach QR2.6bn vs. QR1.9bn in the prior week. The Real Estate sector, driven by BRES, led the trading value during the week, accounting for 28.16% of the total equity trading value.
Trading volume increased by 47.43% to reach 82.0mn shares vs. 55.6mn shares in the prior week. The number of transaction rose by 31.66% to reach 35,140 transactions versus 26,689 transactions in the prior week. The Real Estate sector led the trading volume as well, accounting for 38.22% of the total.
Foreign institutions remained bullish for the week with net buying of QR195.0mn versus net buying of QR67.8mn in the prior week. Qatari institutions turned bearish with net selling of QR132.7mn vs. net buying of QR103.9mn the week before. Foreign retail investors turned bullish for the week with net buying of QR22.6mn vs. net selling of QR23.0mn in the prior week. Qatari retailer investors remained bearish with net selling of QR85.2mn vs. net selling of QR148.5mn the week before.
The GCC markets were mixed during the week. Dubai’s benchmark index was the top performer, surging by 2.3% WoW; it is up 78.2% YTD. On the other hand, the QE Index is up 23.0% YTD. With the annual dividend announcement season drawing near and considering the market’s attractive valuation we expect increased investor interest in the QE over the coming months.