Bourse adds QR21bn as key index inches near 11,900 mark

By Santhosh V Perumal/Business Reporter

Qatar Exchange rose to pre-2008 global crisis levels with its key index inching near the 11,900 levels and capitalisation adding a whopping QR21bn, mainly on institutional buying support in the week.

The 20-stock Qatar Index settled 3.1% higher in the week that saw market heavyweight Industries Qatar (IQ) declare 110% dividend, which provided enough power to make the bourse the second best performer among the Gulf peers.

In comparison, Bahrain gained 3.64%, Dubai (2.05%), Saudi Arabia (0.66%) and Abu Dhabi (0.46%); while Kuwait fell 1.34% and Muscat (0.09%).

Transport, industrials and insurance stocks rose more than 5% each in the week which saw reports that foreign investors are reportedly seen preferring Qatar over the UAE bourse, ahead of  the upgrade by MSCI by May end.

However, there was net selling pressure from both local and non-Qatari retail investors in the week that saw IQ report 5% fall in net profit in 2013.

Buying interests was squarely visible among mid and large cap stocks in the week that witnessed QE and Enterprise Qatar join hands to offer subsidy for small and medium enterprises to enable them list in the junior bourse.

Although the index that tracks Shariah-principled stocks strengthened; its rise was rather slower than the other major indices in the week which witnessed QE announce that Mesaieed Petrochemical Holding Company will be listed on February 26.

The 20-stock Total Return Index rose 3.22%, All Share Index (comprising wider constituents) by 3.44% and Al Rayan Islamic Index by 2.85% in the week that saw Doha Insurance receive shareholders nod for its rights issue.

QE has risen 14.38% year-to-date (YTD) compared to 24.13% in Dubai, 14.55% in Abu Dhabi, 9.37% in Bahrain, 5.31% in Saudi Arabia, 4.86% in Muscat and 2.49% in Kuwait.

More than 74% of the traded stocks extended gains. Of the 42 stocks, 31 advanced; while only nine declined and two were unchanged in the week that witnessed Aamal Company report 15% fall in net profit in 2013.

Transport stocks appreciated 5.49%, industrials (5.35%), insurance (5.07%), real estate (4.51%), consumer goods (4.43%), telecom (2.46%) and banks and financial services (1.75%) in the week that witnessed Mannai Corporation acquire a direct 15% stake in its indirect subsidiary Golden Investments Holdings to effectively raise its holding in Damas to 81%.

Eight of the 12 banks and financial services; six of the eight consumer goods; five of the eight industrials; all of the four realty; three each of the five insurers and the three transport; and all of the two telecom stocks closed higher in the week.

Among the influential movers were IQ, QNB, Milaha, Nakilat, Barwa, Mazaya Qatar, United Development Company, Aamal, Woqod, Commercial Bank, Doha Bank, al khaliji, Widam Food, Qatari Investors Group and Qatar Islamic Insurance in the week.

However, Masraf Al Rayan, Salam International Investment, Gulf International Services, Qatar Insurance and Doha Insurance bucked the trend.

The overall market trading volume was largely skewed towards real estate, banking and financial services, telecom and consumer goods sectors in the week that saw Medicare Group double its net profit in 2013. However, market capitalisation expanded 3.47% to QR623.91bn. Mid cap equities gained about 4%, large caps (more than 3%) and small caps (about 1%) in the week.

Large, mid, small and micro cap stocks have gained YTD 14.44%, 12.67%, 12.49% and 4.45% respectively.

Foreign institutions’ net buying amounted to QR227.74mn compared to QR147.87mn the previous week.

Domestic institutions were net buyers to the tune of QR56.73mn against net sellers of QR31.84mn the week ended February 13.

Local retail investors’ net selling stood at QR202.06mn compared to QR60.64mn the pervious week.

Non-Qatari individual investors’ net selling was QR83.23mn against QR55.66mn the week ended February 13.

Total trading volume rose 26% to 89.11mn shares with the real estate sector accounting for 29.72% of the total, banks and financial services (20.61%), telecom (20.21%), consumer goods (12.27%), transport (6.87%), industrials (6.49%) and insurance (3.84%).

The insurance sector’s trading volume more than doubled to 3.42mn stocks, realty surged 95% to 26.48mn, transport by 86% to 6.12mn, consumer goods by 63% to 10.93mn and industrials by 12% to 5.78mn; while that of banks and financial services fell 13% to 18.37mn and telecom by 5% to 18.01mn.

Total stocks trading value expanded 50% to QR4.14bn with the banks and financial services constituting 28.44% of the total, industrials (20.87%), real estate (17.72%), consumer goods (15.22%), telecom (8.02%), transport (5.92%) and insurance (3.81%).

The transport sector’s stocks trading value more than doubled to QR245mn, realty also more than doubled to QR733.53mn, consumer goods’ surged 80% to QR630.13mn, industrials by 74% to QR864.26mn, insurance by 52% to QR157.78mn, telecom by 25% to QR332.27mn and banks and financial services by 4% to QR1.18bn.

IQ led the trading value with its stocks accounting for 15.34% of the total, followed by Barwa (12.95%) and QNB (7.71%).

Total market transactions gained 24% to 32,713 with the banks and financial services sector’s share at 27.96%, industrials (21.62%), consumer goods (17.08%), real estate (14.65%), telecom (7.03%), transport (6.03%) and insurance (5.63%).

The insurance sector’s deals more than doubled to 1,841; realty expanded 74% to 4,793; consumer goods by 60% to 5,588; industrials by 32% to 7,072 and transport by 32% to 1,971; whereas those of telecom fell 12% to 2,300 and banks and financial services by 7% to 9,148.

In the debt market, there was no trading of treasury bills. However, a total of 10,000 government bonds worth QR100.44mn traded across one transaction in the week.