By Santhosh V. Perumal/Business Reporter
Fiscal austerity measures appears to have had profound influence in the Qatar Stock Exchange as all of the 42 traded stocks closed in the red and as much as QR30bn capitalisation was wiped off during the week.
An across the board selling – especially in the real estate and telecom sectors – led the key index plummet 609 points during the week, also reflecting the nervousness in the market on lower oil prices and an expected US rate hike in December.
Both foreign institutions and non-Qatari individual investors turned net profit takers during the week that witnessed the Minister of Development Planning and Statistics Dr Saleh Mohamed Salem al-Nabit underscore on the need for “greater discipline” in the government spending and reforming subsidy and tax regime.
The Shariah-principled stocks bore the maximum brunt of overall selling pressure during the week that saw the banking, telecom, realty and industrials sectors constitute more than 83% of the overall trading volume.
The 20-stock Qatar Index plunged 5.32% during the week that however saw International Monetary Fund managing director Christine Lagarde say Qatar's economy is expected to grow 4% this year and a bit higher at 4.5% in 2016 on the back of large public infrastructure programme and exploration of a new gas field.
The 20-stock Total Return Index tanked 5.32% and All Share Index (comprising wider constituents) by 5.02% and Al Rayan Islamic Index by 5.99% during the week that saw Amwal, in collaboration with Germany’s leading private bank Donner and Reuschel launch a new GCC (Gulf Cooperation Council) fund ‘D&R Amwal GCC SICAV Equity Fund’, which will invest in the emerging equity markets of the Gulf region.
Real estate stocks nosedived 7.78%, telecom (7.72%), insurance (5.26%), industrials (4.46%), consumer goods (4.26%), banks and financial services (4.21%) and transport (2.47%) during the week that witnessed Finance Minister HE Ali Sherif al-Emadi say Qatar’s 2016 general budget will be “realistic” but expected to show a “moderate” deficit.
Of the 43 stocks, as many as 42 declined, while one was not traded during the week that saw the Ministry of Development Planning and Statistics reveal that Qatar's cost of living, based on consumer price index (CPI), rose 1.7% year-on-year in October..
All of the 12 banks and financial services, the nine industrials, the five insurance, the four realty, the three transport, the two telecom and seven of the eight consumer goods stocks ended in the red during the week.
Major losers include Industries Qatar, QNB, Ezdan, Barwa, Vodafone Qatar, Ooredoo, Aamal Company, Qatar Islamic Bank, Commercial Bank, Doha Bank, Dlala, Alijarah Holding, Gulf International Services, Qatar Insurance and Nakilat during the week.
Market capitalisation eroded 4.96% to QR570.36bn during the week that saw enhanced overall trading volumes.
Foreign institutions turned net sellers to the tune of QR186.35mn compared with net buyers of QR25.43mn the previous week.
Non-Qatari retail investors were also net profit takers to the extent of QR6.95mn against net buyers of QR22.4mn the week ended November 5.
However, domestic institutions turned net buyers to the tune of QR137.85mn compared with net sellers of QR79.8mn the previous week.
Local retail investors’ net buying strengthened to QR55.45mn against QR32.08mn the week ended November 5.
Total trade volume rose 11% to 32.35mn shares, value by 19% to QR1.39bn and transactions by 30% to 19,718 during the week.
The telecom sector saw 88% surge in trade volume to 6.93mn equities, 52% in value to QR117.5mn and 71% in deals to 2,942.
The insurance sector’s trade volume soared 80% to 0.45mn stocks, value by 68% to QR31.81mn and transactions by 46% to 463.
There was 38% expansion in the real estate sector’s trade volume to 6.8mn shares, 56% in value to QR168.11mn and 45% in deals to 2,612.
The industrials sector’s trade volume shot up 30% to 5.61mn equities, value by 36% to QR399.56mn and transactions by 33% to 5,097.
However, the market witnessed 48% plunge in the transport sector’s trade volume to 2.84mn stocks, 43% in value to QR80.57mn and 39% in deals to 1,500.
The consumer goods sector’s trade volume declined 9% to 2.15mn shares and value by 5% to QR99.53mn, while transactions grew 18% to 1,549.
The banks and financial services sector reporte4d 6% fall in trade volume to 7.57mn equities but on 17% rise in value to QR492.55mn and 52% in deals to 5,555.
In the debt market, there was no trading of treasury bills and government bonds during the week.
