Weekly Market Report
The Qatar Exchange (QE) Index declined 100.57 points, or 0.85%, during the trading week, to close at 11,771.83 points. Market capitalisation increased by 9.55% to reach QR683.5bn as compared to QR623.9bn at the end of the previous week. The significant increase is due to the listing of Mesaieed Petrochemical Holding Company (MPHC). With the listing of MPHC, the number of listed companies on the QE has increased to 43. Of the 43 listed companies, 15 companies ended the week higher, while 26 fell and 2 remained unchanged. Debuting on Wednesday, MPHC was the best performing stock for the week, closing at QR49.50 on 16.2mn shares traded. On the other hand, Widam Food Company (WDAM) was the worst performing stock with a decline of 17.45% on 1.9mn shares traded.
During the week, Milaha (QNNS), Qatar Gas Transportation Company (QGTS), WDAM and others reported their 2013 financial results. QNNS posted a net profit of QR171.8mn for the fourth quarter of 2013 (4Q2013), a drop of 15.86% quarter-on-quarter (QoQ). Net income receded mainly due to a 37.40% QoQ surge in operating expenses and SG&A. QNNS announced a cash dividend of QR5.00/share (dividend yield: 5.5%) as compared to QR3.75 in 2012. QGTS, reported net income, before appropriations, of QR176.5mn (-8.69% QoQ, -13.17% year-on-year) for 4Q2013. The bottom-line was also impacted by QR6.4mn in losses from derivative instruments in joint ventures. Dividends per share of QR1.10 was in line with our estimate. WDAM posted a net profit of QR54.9mn in 2013 versus QR75.0mn in 2012. Earnings per share (EPS) amounted to QR3.05 in 2013 compared to QR4.17 in 2012. Widam’s Board recommended cash dividends of QR2.10 per share.
Trading value during the week decreased by 10.47% to reach QR3.71bn vs QR4.14bn in the prior week. The Industrials sector, driven by MPHC, led the trading value during the week, accounting for 44.59% of the total equity trading value. Trading volume declined by 20.14% to reach 71.2mn shares vs 89.1mn shares in the prior week. The number of transactions rose by 30.41% to reach 42,660 transactions versus 32,713 transactions in the prior week. The Industrials sector also led the trading volume, accounting for 31.01%.
Foreign institutions remained bullish for the week with net buying of QR213.2mn vs net buying of QR277.7mn in the prior week. Qatari institutions also remained bullish with net buying of QR113.4mn vs net buying of QR56.7mn the week before. Foreign retail investors turned bullish for the week with net buying of QR16.7mn vs net selling of QR83.2mn in the prior week. Qatari retail investors remained bearish with net selling of QR343.3mn vs QR202.1mn the week before. Thus far in 2014, the QE has already witnessed net foreign portfolio investment inflow of $720.26mn.