By Santhosh V Perumal
Business Reporter
The Qatar Stock Exchange on Sunday witnessed severe selloff, taking cue from last weekend’s oil price crash, and its key index plummeted 371 points to settle far below the 10,000 mark.
About 98% of the traded stocks were in the red, and about QR18bn in capitalisation was wiped off as the 20-stock Qatar Index plummeted 3.71% to a two-year low of 9,643.65 points, making it the worst performer among the Gulf bourses.
On Friday the oil price had hit a new seven-year low of $37.93 a barrel after the International Energy Agency’s warning that global oversupply of crude could worsen next year.
“From equity point of view, if oil prices stay at $40 a barrel for several years, it wouldn't have any impact on the stock prices but the problem of equity market is that people are affected by sentiments (of low oil prices),” Amwal managing director Afa Boran said last week at the concluding session of Euromoney Conference Qatar 2015.
An across-the-board-selling, particularly in the industrials, transport and banking sectors, led to an overall bearish spell in the market, which is down 21.51% year-to-date.
Local retail investors turned net profit takers and there was increased net selling by both Gulf individuals and institutions in the bourse, where volumes were on the decline.
The index that tracks Shariah-principled stocks was seen melting faster than the other indices in the market, where the banking and industrials sectors dominated the trading ring as their stocks accounted for more than 61% of the volumes.
Market capitalisation eroded 3.38% to QR510.91bn with micro, large, mid and small cap equities melting 4.52%, 3.94%, 3.33% and 2.48% respectively.
The Total Return Index tanked 3.71% to 14,989.68 points, the All Share Index by 3.55% to 2,575.79 points and the Al Rayan Islamic Index by 4.19% to 3,539.77 points.
Industrials stocks nosedived 4.07%, followed by transport (4.06%), banks and financial services (3.86%), real estate (2.88%), consumer goods and telecom (2.74% each) and insurance (2.1%).
Major losers included Industries Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Aamal Company, Gulf Warehousing, Nakilat, Milaha, QNB, Qatar Islamic Bank, Commercial Bank, Doha Bank, QIIB, Masraf Al Raya, Alijarah Holding, Barwa, Mazaya Qatar, United Development Company, Ezdan, Ooredoo and Vodafone Qatar.
Local retail investors turned net sellers to the extent of QR6.62mn against net buyers of QR20.22mn last Thursday.
The GCC (Gulf Cooperation Council) institutions’ net selling rose to QR4.11mn compared to QR2.38mn on December 10.
The GCC individual investors’ net profit booking strengthened to QR5.31mn against QR0.79mn the previous trading day.
However, domestic institutions’ net buying increased to QR27.41mn compared to QR22.37mn last Thursday.
Non-Qatari individual investors turned net buyers to the tune of QR3.06mn against net sellers of QR1.87mn on December 10.
Non-Qatari institutions’ net profit booking weakened to QR14.45mn compared to QR37.51mn the previous trading day.
Total trade volume was down 2% to 6.88mn shares, while value rose 2% to QR261.8mn and deals by 2% to 4,204.
There was a 74% plunge in the transport sector’s trade volume to 0.2mn equities, 59% in value to QR7.27mn and 59% in transactions to 141.
The insurance sector’s trade volume plummeted 50% to 0.03mn stocks, value by 49% to QR2.15mn and deals by 28% to 44.
The real estate sector saw a 28% shrinkage in trade volume to 1.01mn shares, 26% in value to QR20.36mn and 21% in transactions to 587.
The consumer goods sector’s trade volume tanked 13% to 0.26mn equities and value by 21% to QR10.79mn, while deals were up 1% to 254.
The market witnessed a 2% fall in the telecom sector’s trade volume to 1.17mn stocks but there was a 5% increase in value to QR20.21mn and 28% in transactions to 642.
However, the banks and financial services sector reported a 37% surge in trade volume to 2.75mn shares, 9% in value to QR116.01mn and 5% in deals to 1,261.
The industrials sector’s trade volume soared 13% to 1.46mn equities, value by 27% to QR85.01mn and transactions by 24% to 1,275.
In the debt market, there was no trading of treasury bills and government bonds.
