QE index drops below 11,900 level; 64% stocks in the red

By Santhosh V Perumal/Business Reporter

The Qatar Exchange yesterday retreated below 11,900 levels with more than 64% of the stocks ending in the red.

Strong selling pressure, especially in transport, led the 20-stock Qatar Index (based on price data) to shed 0.37% to 11,855.94 points.

Net selling pressure was seen to be intense among retail investors in the market, which is up 14.22% year-to-date.

Trading volumes fell marginally and was largely skewed towards banking, telecom and realty stocks in the market.

The index that tracks Shariah-principled stocks was seen to lose its steam faster than the other indices.

The 20-stock Total Return Index was down 0.07% to 17,107.59 points, the All Share Index (with wider constituents) by 0.03% to 2,964.84 and the Al Rayan Islamic Index by 0.39% to 3,378.17 points. All the three indices factored in dividend income as well.

Transport stocks plunged 1.17%, followed by banks and financial services (0.23%) and telecom (0.11%); while insurance gained 0.88%, followed by industrials (0.34%), consumer goods (0.2%) and real estate (0.16%).

Influential shakers included Qatar Islamic Bank, International Islamic, Nakilat, Barwa, Mazaya Qatar, Vodafone Qatar, Milaha, Qatari Investors Group and Salam International Investment.

However, Industries Qatar, Gulf International Services, United Development Company and Qatar Insurance bucked the trend.

Market capitalisation fell 0.23%, or more than QR1bn, to QR623.82bn. Micro caps melted about 2%, followed by large caps (0.42%), mid caps (0.22%) and small caps (0.13%).

Foreign institutions’ net buying amounted to QR75.37mn compared to QR32.56mn the previous day.

Domestic institutions’ net buying was QR28.96mn against QR18.97mn on Monday.

Qatari retail investors’ net selling stood at QR89.82mn compared to QR39.57mn the previous day.

Non-Qatari individual investors’ net selling was QR14.45mn against QR12.03mn on Monday.

Total trading volume was down 1% to 13.23mn stocks, whereas value rose 21% to QR722.58mn. Transactions fell 10% to 5,065.

The telecom sector saw its trading volume plummeted 24% to 2.19mn equities and value by 32% to QR48.2mn but on 12% rise in deals to 364.

The banks and financial services sector reported a 17% plunge in trading volume to 3.89mn shares but on a 29% jump in value to QR274.9mn. Transactions fell 20% to 1,478.

The industrials sector’s trading volume tanked 10% to 1.47mn stocks while value soared 45% to QR210.35mn but deals slumped 27% to 1,140.

However, the transport sector’s trading volume soared 48% to 1.41mn equities, value by 36% to QR51.37mn and transactions by 12% to 533.

There was a 43% expansion in consumer goods sector’s trading volume to 1.44mn shares but value fell 2% to QR62.42mn. Deals gained 19% to 745.

The real estate sector saw its trading volume rise 27% to 2.53mn stocks, value by 8% to QR57.41mn and transactions by 21% to 578.

There was a 24% jump in insurance sector’s trading volume to 0.31mn equities and 33% in value to QR17.94mn but on a 19% slippage in deals to 227.

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

UAE shares resume bull run

UAE stock markets surged yesterday, resuming their bullish momentum after a sluggish start to the week, while weak earnings ahead of a new share listing weighed on Qatar.

Other regional markets were mixed. Dubai’s index rose 1.8%, taking its 2014 gains to 24.5% - though it has remained in a range since hitting a five-year high on February 17.

Shares in Union Properties led trading volumes and jumped 5.0%. The firm on Monday proposed increasing the limit on foreign investors’ ownership of it to 25%.

Firms in the UAE and Qatar are preparing for an upgrade of their markets to emerging market status by index compiler MSCI, which will take place at the end of May.

Cairo’s benchmark index slipped 0.2%, coming off Monday’s five-year high.

Bank shares suffered after Moody’s Investors Service maintained its negative outlook on the Egyptian banking sector despite improving earnings. Elsewhere in the Gulf, Abu Dhabi’s index climbed 1.6% to 4,959 points; Saudi Arabia’s index ticked up 0.05% to 9,062 points, Bahrain’s index ended flat at 1,387 points, while Oman’s index slipped 0.1% to 7,101 points.

Kuwait’s market was closed for a public holiday.