Qatar shares remain bearish due to profit booking

By Santhosh V. Perumal

Business Reporter

Severe profit booking in real estate, along with robust selling in the consumer goods and telecom stocks, led the Qatar Stock Exchange to remain under bearish spell for the second day.

Mainly dragged by micro cap equities, the 20-stock Qatar Index (based on price data) shrank 1.94% to 12,327.62 points as volumes also declined.

Local retail institutions were seen brisk in profit booking in the bourse, which is, however, up 18.77% year-to-date.

Market capitalisation declined 1.42% or about QR10bn to QR677.76bn with micro, mid, large and small cap stocks falling 3.3%, 1.81%, 1.14% and 0.14% respectively.

The index that tracks Shariah-principled stocks was seem melting faster than the other indices in the market, where trade was highly skewed towards realty, banks and industrials, which accounted for more than 85% of the total trade volume.

The Total Return Index lost 1.94% to 18,386.53 points, All Share Index by 1.58% to 3,158.25 points and Al Rayan Islamic Index by 2.4% to 4,117.23 points.

Real estate stocks deflated 4.2%, consumer goods (2.73%), telecom (2.2%), transport (2.02%), industrials (1.38%) and banks and financial services (0.75%); whereas insurance rose 0.64%.

More than 81% of the stocks were in the red with major shakers being Barwa, Ezdan, Mazaya Qatar, Widam, Food, Vodafone Qatar, Nakilat, Gulf Warehousing, Qatari Investors Group, Industries Qatar, Qatar Islamic Bank, Commercial Bank, Masraf Al Rayan, Alijarah Holding and Islamic Holding Group; even as Aamal Company and QNB bucked the trend.

Qatari retail investors turned net sellers to the tune of QR37.8mn against net buyers of QR22.42mn the previous day.

Non-Qatari individual investors’ net selling fell to QR11.55mn compared to QR26.05mn on Monday.

Foreign institutions’ net profit booking fell to QR17.22mn against QR24.19mn on December 29.

Domestic institutions’ net buying strengthened to QR66.37mn compared to QR28.01mn the previous day.

Total trade volume was down 9% to 23.36mn shares, while value rose 7% to QR1.05bn but transactions were down 2% to 10,596.

The insurance sector’s trade volume plummeted 56% to 0.24mn equities, value by 46% to QR17.84mn and deals by 32% to 209.

The market witnessed 39% plunge in the telecom sector’s trade volume to 1.35mn stocks, 34% in value to QR29.49mn and 34% in transactions to 587.

The transport sector’s trade volume tanked 30% to 0.71mn shares, value by 29% to QR29.73mn and deals by 21% to 303.

The consumer goods sector saw its trade volume decline 29% to 1.14mn equities, value by 18% to QR50.26mn and transactions by 19% to 690.

The real estate sector’s trade volume shrank 18% to 10.38mn stocks, value by 4% to QR301.53mn and deals by 11% to 3,614.

However, the industrials sector’s trade volume soared 40% to 4.52mn shares but value fell 32% to QR168.54mn whereas transactions rose 10% to 2,373.

The banks and financial services sector reported 16% surge in trade volume to 5.02mn equities, 92% in value to QR452.72mn and 28% in deals to 2,820.

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