QSE settles below 13,150 levels amid falling volumes

By Santhosh V Perumal

Business Reporter

Three consecutive days of bearish run had had its toll on the Qatar Stock Exchange, which yesterday settled below 13,150 levels, shedding another 79 points, amid falling volumes.

Profit booking pressure in the telecom, industrials and real estate masked the robust buying interests in consumer goods that the 20-stock Qatar Index (based on price data) fell 0.59% to 13,142.69 points.

The bearish sentiments brought about by a British newspaper report on alleged corruption relating to Qatar hosting the 2022 FIFA World Cup appears to losing its grip with markets discounting its fears.

Qatar’s Supreme Committee for Delivery and Legacy, which is responsible for organising the 2022 FIFA World Cup, has already “vehemently” denied the reports carried by the British newspaper.

Banks, realty, telecom and transport stocks largely accounted for the overall trading volume in the market, which is, however, up 26.62% year-to-date.

Market capitalisation fell 0.2% or more than QR1bn to 715.87bn. Mid, small and large cap equities were seen melting 0.43%, 0.4% and 0.14% respectively; while micro caps gained 0.92%.

The market witnessed violent gyrations both ways during the first 30 minutes with the index reaching a low of less than 13,150 points and reach a high of 13,250 points.

Thereafter, the market witnessed some profit booking to once again take the index close to 13,150 points but after which buying interests drove it above the 13,200 mark. Selling pressure during the last 90 minutes finally settled the index below the 13,150 level.

The 20-stock Total Return Index shrank 0.59% to 19,598.59 points, All Share Index (with wider constituents) by 0.25% to 3,311.27 and Al Rayan Islamic Index by 0.59% to 4,418.46. All the three indices factored in dividend income as well.

Telecom stocks plunged 2.23%, industrials (1.2%), real estate (0.33%) and insurance (0.15%); while consumer goods shot up 3.21%, transport (0.18%) and banks and financial services (0.16%).

Major losers included Industries Qatar, Masraf Al Rayan, Qatar National Cement, Ooredoo, Vodafone Qatar, Doha Bank, Commercial Bank, Barwa, Gulf International Services, United Development Company and Mesaieed Petrochemical Holding.

However, QNB, Woqod, Qatar Islamic Bank, Ezdan, Mazaya Qatar, Nakilat, Al Khaleej Takaful and Qatar Islamic Insurance bucked the trend.

Masraf Al Rayan and Barwa continued to be the most active in terms of both volume and value.

Total trading volume shrank 49% to 18.28mn stocks, value by 45% to QR936mn and transactions by 34% to 9,108.

The telecom sector’s trading volume plummeted 59% to 2.38mn equities, value by 53% to QR73.45mn and deals by 49% to 814.

The banks and financial services sector reported 57% plunge in trading volume to 5.25mn shares, 54% in value to QR354.36mn and 45% in transactions to 3,019.

The insurance sector’s trading volume tanked 50% to 0.37mn stocks and value by 48% to QR18.81mn but deals were up 7% to 307.

The real estate sector saw its trading volume shrink 48% to 4.44mn equities, value by 55% to QR114.24mn and transactions by 41% to 1,451.

The consumer goods sector’s trading volume declined 45% to 2.21mn shares, value by 6% to QR100.2mn and deals by 12% to 984.

The market saw a 40% fall in the industrials sector’s trading volume to 1.94mn stocks, 28% in value to QR232.82mn and 15% in transactions to 2,051.

However, the transport sector’s trading volume surged 46% to 1.69mn equities, value by 25% to QR42.12mn and deals by 5% to 482.

In the debt market, a total of 156,000 treasury bills valued at QR1.55bn traded across 15 transactions; while in government bonds, there was no trading.