The Qatar Stock Exchange closed the last week of December with a huge 171 points gains to stay above the 10,400 mark; even as it lost a sizeable 1,856 points year-to-date (YTD).
More than 67% of the traded stocks extended gains during the week, which saw Global, a Kuwait-based economic think-tank, view that Qatar's 2016 budget is aimed at achieving equilibrium between revenue and expenditure to enhance the financial stability and economic growth in the country and the government is “visibly attentive” to developing the non-oil sector, especially the private sector.
Opening the week strong at 10,303 points, the market kept gaining for the next three sessions to reach a high of 10,436 points on Wednesday but subsequent marginal profit booking led the index settle at 10,429 points on the last day.
Buying was seen intense — particularly in the industrials and telecom sectors — during the week which witnessed Qatar Electricity & Water Company enter into a pact with Nebras Power to sell its 9.75% stake in Phoenix Power Company and 15% in Phoenix Operating and Maintenance Company.
Domestic institutions were seen increasingly bullish in the market during the week which saw reports that Qatar, which has not yet responded to the US Fed liftoff of interest rates, can afford to wait in the short term but will have to eventually reciprocate, which may slowdown the non-hydrocarbon segment that is increasingly becoming a growth engine for the country.
However, non-Qatari individual investors turned bearish and there was also increased net selling by local retail investors and foreign institutions during the week which saw overall trade volumes shrank in view of institutional investors keeping away from the market due to holidays.
The index that tracks Shariah-principled stocks was however seen gaining slower than the other indices during the week which witnessed the industrials, banking and telecom sectors account for about 66% of the total trading volume.
The 20-stock Qatar Index soared 1.66% during the week. It has, however, reported 15.11% decline YTD.
The 20-stock Total Return Index gained 1.66%, All Share Index (comprising wider constituents) by 1.62% and Al Rayan Islamic Index by 1.5% during the week. The indices had fallen 11.53%, 11.88% and 5.99% respectively YTD.
Industrials stocks gained as much as 4.74%, telecom (4.07%), banks and financial services (1.57%), consumer goods (0.87%) and transport (0.82%); whereas insurance tanked 3.25% and real estate (0.66%) during the week.
On YTD basis, telecom shares were the hardest hit with 33.6% plunge, followed by industrials (21.11%), consumer goods (13.13%) and banks and financial services (12.42%); whereas transport gained 4.85%, realty (3.92%) and insurance (1.9%).
Of the 43 stocks, as many as 29 gained, while 12 declined and two were unchanged during the week which saw market capitalisation shoot up 2.14% or about QR12bn to QR553.18bn.
Ten of the 12 banks and financial services, seven of the nine industrials, four of the eight consumer goods and two each of the five insurers, the four realty, the two telecom and the three transport stocks closed higher during the week.
Major gainers included QNB, Industries Qatar, Aamal Company, Ooredoo, Vodafone Qatar, QEWS, Mesaieed Petrochemical Holding, Gulf International Services, Commercial Bank, al khaliji, Nakilat, Milaha, Barwa, United Development Company, Widam Food and Qatar Islamic Insurance; even as Qatar Islamic Bank, Ezdan, Mazaya Qatar, Qatar Insurance and Qatar General Insurance and Reinsurance bucked the trend during the week.
Domestic institutions’ net buying increased substantially to QR259.95mn compared to QR5.36mn the previous week.
However, foreign institutions’ net selling strengthened to QR61.53mn against QR7.18mn the week ended December 24.
Local retail investors’ net profit booking also increased to QR88.63mn compared to QR29.75mn the previous week.
Non-Qatari retail investors turned net sellers to the tune of QR109.8mn against net buyers of QR31.38mn the week ended December 24.
Total trade volume fell 14% to 23.97mn shares, value by 2% to QR940.84mn and transactions by 13% to 13,567 during the week.
There was 36% plunge in the consumer goods sector’s trade volume to 2.46mn equities, 7% in value to QR72.24mn and 23% in deals to 1,346.
The real estate sector’s trade volume plummeted 32% to 3.8mn stocks, value by 26% to QR83.8mn and transactions by 32% to 1,646.
The banks and financial services sector reported 32% shrinkage in trade volume to 4.62mn shares, 25% in value to QR258.85mn and 22% in deals to 3,246.
The insurance sector’s trade volume tanked 18% to 0.41mn equities and value by 22% to QR23.58mn, while transactions were up 6% to 403.
The market witnessed 5% fall in the telecom sector’s trade volume to 4.36mn stocks but on 21% jump in value to QR90.06mn and 3% in deals to 2,272.
However, the transport sector’s trade volume soared 27% to 1.59mn shares and value by 50% to QR56.91mn; while transactions shrank 21% to 495.
There was 25% surge in the industrials sector’s trade volume to 6.73mn equities, 27% in value to QR355.4mn and 3% in deals to 4,159.
In the debt market, there was no trading of treasury bills and government bonds during the week.
The market reached a high of 10,436 points on Wednesday.
