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The Qatar Exchange (QE) Index dropped by 227.29 points, or 1.75%, during the trading week, to close at 12,727.64 points. Market capitalisation decreased by 8.86% to reach QR725.7bn compared to QR796.2bn at the end of the previous week. Of the 43 listed companies, 6 companies ended the week higher, while 36 fell and 1 remained unchanged. United Development Company (UDCD) was the best performing stock for the week, with a gain of 5.12% on 32.9mn shares traded. On the other hand, Ezdan Holding Group (ERES) was the worst performing stock with a decline of 40.76% on 5.0mn shares traded.
During the week, international equity index compiler MSCI announced that it will cut the weightings of eight major Qatari and UAE stocks when it upgrades those countries to emerging markets status. On May 14, MSCI is expected to announce the final list of constituents of its revised emerging market index. This is expected to attract fresh foreign money into the two countries’ equity markets. However, MSCI said it would ‘apply an adjustment factor of 0.5’ to the weightings of Industries Qatar, QNB Group, Commercial Bank and Doha Bank in Qatar. In the UAE, it will apply the same adjustment factor to Arabtec, Dana Gas, Dubai Islamic Bank and Emaar Properties as foreigners could have trouble increasing their exposure to these shares in the future. MSCI also added that it might reconsider its decision to apply the adjustment factor to the eight stocks if those companies raised their foreign ownership ceilings before mid-May.
Trading value during the week decreased by 30.53% to reach QR5.10bn vs QR7.34bn in the prior week. The real estate sector led the trading value during the week, accounting for 38.54% of the total equity trading value. United Development Company (UDCD) was the top value traded stock during the week with total traded value of QR851.8mn.
Trading volume decreased by 36.97% to reach 134.2mn shares vs 212.8mn shares in the prior week. The number of transactions decreased by 29.11% to reach 54,785 transactions versus 77,279 transactions in the prior week. The real estate sector also led the trading volume, accounting for 51.11%. UDCD was also the top volume traded stock during the week with total traded volume of 32.9mn shares.
Foreign institutions turned bearish for the week with net selling of QR75.0mn vs net buying of QR347.3mn in the prior week. Qatari institutions remained bearish with net selling of QR129.0mn vs net selling of QR204.1mn the week before. Foreign retail investors remained bullish for the week with net buying of QR30.1mn vs net buying of QR40.4mn in the prior week. Qatari retail investors turned bullish with net buying of QR174.4mn vs net selling QR183.5mn the week before. Thus far in 2014, the QE has already witnessed net foreign portfolio investment inflow of $1.1bn.