The Qatar Stock Exchange (QSE) index lost 42.93 points, or 0.41%, during the week to close at 10,479.28. Market capitalisation decreased by 0.42% to QR550.6bn versus QR552.9bn at the end of the previous week. Of the 43 listed companies, 10 ended the week higher, while 30 fell and three remained unchanged. Gulf International Services (GISS) was the best performing stock for the week with a gain of 3.1% on 9.8mn shares traded. On the other hand, Al Meera Consumer Goods Co (MERS) was the worst performing stock with a decline of 7.8% on 49,784 shares traded.
Ezdan Holding Group (ERES), Nakilat (QGTS) and Commercial Bank of Qatar (CBQK) were the primary contributors to the weekly index loss. ERES was the biggest contributor to the index’s weekly loss, shedding off 40.3 points from the index. QGTS was the second biggest contributor, erasing 14.8 points from the index. CBQK pushed the index down by 12.1 points. On the other hand, Industries Qatar (IQCD) added 25.0 points to the index, while Qatar Insurance Co (QATI) contributed 14.8 points to the index.
Trading value during the week increased by 163.3% to reach QR2.5bn versus QR954.8mn in the prior week. The industrials sector led the trading value during the week, accounting for 31.4% of the total trading value. The banks and financial services sector was the second biggest contributor to the overall trading value, accounting for 27.9% of the total trading value. QGTS was the top value traded stock during the week with total traded value of
QR597.8mn.
Trading volume increased by 184.6% to reach 64.0mn shares versus 22.5mn in the prior week. The number of transactions rose by 53.4% to reach 25,849 versus 16,854 in the prior week. The transportation sector led the trading volume, accounting for 38.9%, followed by the industrials sector, which accounted for 20.5% of the overall trading volume. QGTS was also the top volume traded stock during the week with total traded volume of 24.6mn shares.
Foreign institutions remained bearish during the week with net selling of QR275.8mn versus selling of QR115.9mn in the prior week. Qatari institutions remained bullish with net buying of QR236.1mn versus net buying of QR7.4mn the week before. Foreign retail investors turned bearish for the week with net selling of QR7.5mn versus net buying of QR16.9mn in the prior week. Qatari retail investors remained bullish with net buying of QR47.0mn versus net buying of QR91.7mn the week before.
In 2015 year-to-date, foreign institutions bought (on a net basis) $572mn worth of Qatari equities.
Technical analysis of the QSE index
The QSE index dropped over 4% during last week but managed to reduce its losses and closed losing only 0.41% at 10,479.28 points compared with the week before. The trend has been down for over a year, but the Hammer candlestick created just above the lower side of the downtrend channel last week indicates the possibility of a bounce. We update our weekly support and resistance levels at 10,000 and 11,300 points, respectively.
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.
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