QSE drops below 13,000 with QR12bn M-cap loss

By Santhosh V Perumal/Business Reporter

The Qatar Stock Exchange yesterday retreated below the 13,000 mark and capitalisation lost more than QR12bn mainly on stronger profit-booking in insurance, industrials, banking and transport stocks.

Lower buying interests from local retail investors and foreign institutions led the 20-stock Qatar Index (based on price data) to shed another 1.79% for the third to 12,788.23 points.

Opening weak, the market was rather unidirectional in losing its steam all throughout the trading session although there was buying support from domestic institutions.

Large and mid cap equities were the hardest hit in the market, which is, however, up 23.21% year-to-date.

Trading volume was on the decline and was skewed towards realty, banks, industrials and telecom stocks.

The 20-stock Total Return Index fell 1.79% to 19,070.01 points, the All Share Index (with wider constituents) by 1.71% to 3,256.73 and the Al Rayan Islamic Index by 1.74% to 4,243.32.

All the three indices factored in dividend income as well.

Insurance stocks plunged 2.36%, followed by industrials (2.32%), banks and financial services (1.74%), transport (1.6%), real estate (0.91%), consumer goods (0.84%) and telecom (0.36%).

More than 88% of the stocks were in the red with major losers being Industries Qatar, QNB, Qatar Islamic Bank, Commercial Bank, Doha Bank, Masraf Al Rayan, Aamal Company, Ezdan, Barwa, Mazaya Qatar, United Development Company, Vodafone Qatar, Nakilat, Milaha, Gulf International Services, Mesaieed Petrochemical Holding, Doha Insurance and Al Khaleej Takaful.

However, Ooredoo, Dlala and al khaliji were seen to buck the trend.

Market capitalisation fell 1.66% to QR724.12bn. Large and mid cap equities fell about 2% each, micro caps more than 1% and small caps 0.48%.

Qatari retail investors’ net buying plunged to QR6.06mn compared to QR91.81mn on Sunday.

Foreign institutions’ net buying shrank to QR1.14mn against QR17.87mn the previous day.

Domestic institutions’ net selling fell to QR1.14mn compared to QR97.8mn on Sunday.

Non-Qatari individual investors’ net profit booking was down to QR5.87mn against QR11.97mn the previous day.

Total trading volume was down 4% to 21.22mn stocks but value rose 20% to QR947.16mn and transactions by 10% to 10,167.

The real estate sector’s trading volume tanked 26% to 7.65mn equities, value by 23% to QR232.27mn and deals by 4% to 2,748.

The market witnessed 15% decline in the industrials sector’s trading volume to 3mn shares, while value rose 21% to QR186.16mn. However, transactions were down 7% to 2,513.

The transport sector’s trading volume shrank 10% to 0.7mn stocks, while value gained 19% to QR24.67mn and deals by 33% to 410.

The telecom sector’s trading volume was down 1% to 2mn equities but value expanded 38% to QR63.85mn and transactions by 16% to 634.

However, the banks and financial services sector reported a 54% surge in trading volume to 6.52mn shares, 63% in value to QR339.92mn and 38% in deals to 2,814.

The consumer goods sector saw its trading volume soar 25% to 0.96mn stocks, value more than doubled to QR84.56mn and transactions rose 46% to 848.

There was a 15% increase in the insurance sector’s trading volume to 0.38mn equities but value fell 8% to QR15.74mn and deals by 2% to 200.