Qatar shares edge lower amid profit-booking at bank counter

By Santhosh V Perumal

Business Reporter

The Qatar Stock Exchange was yesterday gripped by bearish sentiments mainly on profit-booking at the banking counter.

Qatari retail and institutional investors were net sellers as the 20-stock Qatar Index (based on price data) fell 0.14% to 14,027.46 points on lower volumes.

The index that tracks Shariah-principled stocks was seen gaining vis-à-vis declines in the other indices in the market, which is up 35.14% year-to-date.

The Total Return Index fell 0.14% to 20,921.82 points and the All Share Index by 0.11% to 3,541.05 points; while the Al Rayan Islamic Index rose 0.15% to 4,757.23 points.

However, domestic and foreign institutions were seen net buyers in the bourse, where trading was largely skewed towards realty and banking stocks.

Market capitalisation was down 0.13%, or about QR1bn, to QR743.18bn. Small, large and micro caps fell 0.36%, 0.32% and 0.19% respectively; while mid caps rose 0.12%.

Banks and financial institutions shrank 0.55%, followed by telecom (0.13%) and insurance (0.08%); while real estate gained 0.88%, transport 0.63%, industrials 0.15% and consumer goods rose 0.14%.

Major losers included QNB, Commercial Bank, Doha Bank, Salam International Investment, Mazaya Qatar, Ezdan and Vodafone Qatar.

However, Industries Qatar, Barwa, United Development Company, Gulf Warehousing Company, Widam Food and Milaha were seen to buck the trend.

Vodafone Qatar and Barwa were the most active in terms of volume and value.

Qatari retail investors’ net profit-booking fell to QR38.78mn against QR52.94mn on Tuesday.

Non-Qatari individual investors’ net selling sunk to QR4.05mn compared to QR19.69mn the previous day.

Foreign institutions’ net buying rose to QR23.17mn against QR22.4mn on Tuesday.

Domestic institutions’ net buying sunk to QR19.71mn compared to QR50.15mn the previous day.

Total trading volume fell 15% to 15.71mn shares; value by 8% to QR735.52mn and transactions by 5% to 7,468.

The telecom sector’s trading volume plummeted 73% to 1.29mn equities, value by 66% to QR36.9mn and deals by 46% to 424.

The market witnessed a 46% plunge in the industrials sector’s trading volume to 1.15mn stocks, 37% in value to QR114.36mn and 19% in transactions to 1,671.

The consumer goods sector’s trading volume tanked 17% to 1.27mn shares, while value surged 22% to QR58.71mn and deals by 31% to 652.

The real-estate sector’s trading volume was down 7% to 5.22mn equities, whereas value rose 16% to QR167.65mn and transactions by less than 1% to 1,649.

However, the transport sector’s trading volume almost tripled to 1.82mn stocks and value more than doubled to QR84.78mn on a 68% expansion in deals to 667.

The banks and financial services sector reported a 33% surge in trade volume to 4.4mn shares but there was a 3% fall in value to QR260.88mn and 2% in transactions to 2,250.

The insurance sector’s trading volume vaulted 6% to 0.19mn equities, value by 52% to QR12.24mn and deals by 12% to 155.

In the debt market, there was no trading of treasury bills and government bonds.

Dubai drops on Emaar Malls IPO; most markets slip

Dubai’s bourse fell sharply yesterday as investors accumulated cash for the upcoming initial public offer of Emaar Properties’ malls unit, while most other markets in the region slipped.

The Dubai index fell 3.4% after dropping as much as 4.4% at one stage. Emaar itself lost 2.7%. In one of the largest equity sales in the Middle East since 2008, the company plans to float its unit Emaar Malls Group this month and subscriptions for the shares will open on September 14.

Emaar, which plans to sell a 15% stake in its subsidiary, has indicated it wants to raise at least 5.3bn dirhams ($1.4bn) from the offer. It has also said it aims to sell about 30% of the offer to retail investors.

Abu Dhabi’s index dipped along with Dubai and fell 1.0%. Developer Aldar Properties was hit hardest among blue chips, dropping 4.4%.

Saudi Arabia’s property firms were also weak. Developers Dar Al Arkan and Jabal Omar were down 2.3% and 1.0%.

Egypt’s bourse edged down 0.1% as large property developer SODIC dropped 5.1%, after saying it had received regulatory approval for a rights issue.

Elsewhere in the Gulf, Kuwait’s index added 0.1% to 7,480 points; Oman’s measure rose 0.4% to 7,548 points, while Bahrain’s index slipped 0.2% to 1,461 points.