The Qatar Stock Exchange (QSE) index gained 29.85 points, or 0.28%, during the week to close at 10,860.18. Market capitalisation increased by 0.03% to QR570.5bn versus QR570.4bn at the end of the previous week. Of the 43 listed companies, 22 ended the week higher, while 18 fell and three remained unchanged. Ooredoo (ORDS) was the best performing stock for the week with a gain of 4.5% on 607,468 shares traded. On the other hand, Ahli Bank (ABQK) was the worst performing stock with a decline of 4.8% on 169,528 shares traded.
Barwa Real Estate Co (BRES), ORDS and Industries Qatar (IQCD) were the primary contributors to the weekly index gain. BRES was the biggest contributor to the, adding 17.7 points to the index. ORDS was the second biggest contributor, tacking 16.8 points to the index. IQCD contributed 13.0 points.
On the other hand, QNB Group (QNBK) shaved off 18.3 points from the Index, while Commercial Bank of Qatar (CBQK) deleted 14.3 points.
Trading value during the week increased by 10.3% to reach QR1.5bn versus QR1.4bn in the prior week. The banks and financial services sector led the trading value during the week, accounting for 53.2% of the total trading value. The industrials sector was the second biggest contributor to the overall trading value, accounting for 16.7% of the total trading value. Masraf Al Rayan (MARK) was the top value traded stock during the week with total traded value of QR443.1mn.
Trading volume increased by 15.1% to reach 37.3mn shares versus 32.4mn in the prior week. The number of transactions fell by 21.5% to reach 15,482 versus 19,718 in the prior week. The banks and financial services sector led the trading volume, accounting for 44.1%, followed by the transportation sector, which accounted for 18.1% of the overall trading volume. MARK was the top volume traded stock during the week with total traded volume of 11.1mn shares.
Foreign institutions remained bearish during the week with net selling of QR205.6mn versus selling of QR186.4mn in the prior week. Qatari institutions remained bullish with net buying of QR152.1mn versus net buying of QR137.9mn the week before. Foreign retail investors remained bearish for the week with net selling of QR7.7mn versus net selling of QR6.9mn in the prior week. Qatari retail investors remained bullish with net buying of QR61.2mn versus net buying of QR55.4mn the week before.
In 2015 year-to-date, foreign institutions bought (on a net basis) $684.9mn worth of Qatari equities.

Technical analysis of the QSE index


After dipping over 1.5% through the week, the QSE index managed to inch up and close at 10,860.18; it gained a marginal 0.28% versus the week before. The index has been moving below its moving averages and its MACD has been below the zero line for about 11 months. The previous suggest persistent weakness and the little gain made was probably a part of a relief rally that might extend in the coming week. The 10,300 support level and the 11,500 resistance level remain to be the immediate levels to watch for.

Definitions of key terms used in technical analysis


Candlestick chart – A candlestick chart is a price chart that displays the high, low, open, and close for a security. The ‘body’ of the chart is portion between the open and close price, while the high and low intraday movements form the ‘shadow’. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis.
Doji candlestick pattern – A Doji candlestick is formed when a security’s open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal.


DISCLAIMER


This report expresses the views and opinions of Qatar National Bank Financial Services SPC (“QNBFS”) at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. Gulf Times and QNBFS hereby disclaim any responsibility or any direct or indirect claim resulting from using this report.

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