By Santhosh V Perumal
The Qatar Stock Exchange yesterday settled a little over 13,200 levels, plunging 330 points, mainly on selling pressure in the banking and telecom counters, amid falling overall volumes.
About QR15bn in capitalisation was eroded as the 20-stock Qatar Index (based on price data) plummeted 2.43% to 13,221.29 points, as sentiments continued to be dented by a British newspaper report on alleged corruption relating to Qatar hosting the 2022 FIFA World Cup, even as Supreme Committee for Delivery and Legacy has “vehemently” denied it.
Local retail investors were seen squaring off their position in the market, which is, however, up 27.38% year-to-date.
Market capitalisation eroded 2.03% to 717.3bn. Large, small, mid and micro cap equities were seen melting 2.86%, 1.91%, 1.67% and 0.52% respectively.
The index that tracks Shariah-principled stocks was seen melting slower than the other indices in the market, where banks, realty, telecom, consumer goods and industrials together accounted for about 34% of total volumes
The market witnessed strong selling pressure in the first 60 minutes to drive the index down to about 13,100 points, after which buying interests supported the market for the next 45 minutes to take the index to close to 13,300 points.
However, profit booking gripped as the market neared the closing time and thus the index settled a little over 13,200 points.
The 20-stock Total Return Index shrank 2.43% to 19,715.8 points, All Share Index (with wider constituents) by 2.22% to 3,319.46 and Al Rayan Islamic Index by 2.08% to 4,444.48. All the three indices factored in dividend income as well.
Banks and financial services stocks depreciated 3.08%, telecom (2.81%), industrials (1.93%), transport (0.9%), insurance (0.74%), realty (0.67%) and consumer goods (0.37%).
About 81% of the stocks were in the red with major losers being QNB, Industries Qatar, Masraf Al Rayan, Qatar Islamic Bank, Commercial Bank, Doha Bank, Vodafone Qatar, Ooredoo, Aamal Company, Ezdan, Nakilat, Gulf International Services, Mesaieed Petrochemical Holding, Al Khaleej Takaful and Qatari Investors Group, even as Mazaya Qatar bucked the trend.
Vodafone Qatar, Masraf Al Rayan and Barwa continued to be the most active in terms of both volume and value.
Qatari retail investors’ net selling rose to QR28.56mn compared to QR34.92mn on Monday.
Domestic institutions’ net selling plunged to QR54.58mn against QR111.46mn the previous day.
However, non-Qatari individual investors turned net buyers to the tune of QR0.84mn compared with net profit takers QR3.24mn yesterday.
Foreign institutions’ net buying fell to QR82.12mn against QR89.78mn the previous day.
Total trading volume was down 9% to 35.62mn stocks and value by 1% to QR1.69bn while transactions rose 5% to 13,842.
The consumer goods sector’s trading volume plummeted 41% to 4.05mn equities, value by 17% to QR106.8mn and deals by 15% to 1,118.
There was 24% plunge in the transport sector’s trading volume to 1.16mn shares, 12% in value to QR33.78mn and 12% in transactions to 461.
The banks and financial services sector’s trading volume tanked 16% to 12.09mn stocks and value by 18% to QR778mn whereas deals gained 10% to 5,522.
The real estate sector saw its trading volume shrink 2% to 8.53mn equities but value was up 1% to QR253.7mn. Transactions were down 9% to 2,456.
The telecom sector’s trading volume was down less than 1% to 5.8mn shares, value by 21% to QR156.48mn and deals by 15% to 1,583.
However, the insurance sector’s trading volume more than doubled to 0.74mn stocks and value more than doubled to QR35.89mn on more than doubled transactions to 287.
The market saw more than doubling of volume and value in the industrials sector to 3.24mn equities and QR325.14mn respectively on 54% jump in deals to 2,415.
In the debt market, there was no trading of treasury bills and government bonds.
QSE to brief AFE on upgrade
Qatar Stock Exchange (QSE) will today brief the Arab Federation of Exchanges (AFE) on the upgrade by Morgan Stanley Composite Index and Standard and Poor’s Dow Jones and the underlying implications.
This will be the key topic of QSE CEO Rashid Ali al-Mansoori at the annual conference of the AFE in Dubai, the UAE.
MSCI had upgraded Qatar and the UAE into emerging market from their previous frontier status. Recently, Qatar government allowed a higher up to 49% foreign ownership limit in the listed companies, and the Qatar Financial Market Authority is currently drawing up required legislations in this regard.
The “AFE Equities Summit 2014”, which is held in co-operation with Thomson Reuters, will be followed by AFE board and general assembly meetings.
Top management of NASDAQ OMX, NYSE Euronext, National Stock Exchange of India, S&P Dow Jones Indices and Morgan Stanley will be present at the conference, which hosts world-class speakers and panellists, providing highly relevant and interactive content and addressing all the important issues within the equities space for all stakeholders involved, under one roof.
al-Mansoori also participates in AFE board and general assembly meetings, during which several decisions concerning the member exchanges will be taken, including the approval on the executive committee recommendation on the AFE statements and reports for the financial year 2013 and the estimated budget for 2014, the transition to the of the AFE presidency to the Saudi Stock Exchange.