An across the board buying was visible during the week which saw global credit rating agency Moody’s say that QNB is expected to maintain “strong” liquidity buffers even after acquiring National Bank of Greece's 99.81% stake in the Turkish Finansbank but may look for fresh capital raising in the first half of 2016 to replenish Tier 1 capital.
Although the week started with huge gains there was subsequent profit booking pressure for the next two days; only to strengthen in the last two days as crude oil rose after Russian Energy Minister Alexander Novak revealed the proposed reductions in output amid a global supply overhang that led prices touch a 12-year low.
Foreign institutions turned bullish and there was weakened net selling by non-Qatari retail investors during the week which saw Commercial Bank report QR1.46bn net profit in 2015.
More than 76% of the stocks extended gains to investors during the week which saw Doha Bank report a QR1.37bn net profit in 2015.
Notwithstanding selling pressure from domestic institutions and local individual investors, the 20-stock Qatar Index soared 8.01% during the week which saw QIIB announce QR784mn net profit in 2015.
Dubai gained 8.97%, Abu Dhabi (4.64%), Muscat (3.07%), Kuwait (1.3%) and Bahrain (0.53%) during the week which witnessed Qatar National Cement net a profit of QR463.55mn in 2015.
QSE has fallen 11.1% year-to-date against 10.77% in Kuwait, 9.32% in Dubai, 9.21% in Abu Dhabi, 7.21% in Muscat and 3.64% in Bahrain.
Buying interests were seen intense particularly in the large cap equities in the QSE during the week which saw decline in total trade turnover and volumes.
The index that tracks Shariah-principled stocks was seen gaining slower than the other indices during the week which witnessed the banking, real estate and industrials sectors together account for more than 76% of the total trading volume.
The 20-stock Total Return Index soared 8.02%, All Share Index (comprising wider constituents) by 7.51% and Al Rayan Islamic Index by 7.38% during the week which saw Gulf International Services (GIS) and Barwa dominate the trading ring in terms of volume and value.
Insurance stocks shot up 12.67%, industrials (8.53%), banks and financial services (7.79%), realty (7.62%), consumer goods (5.36%), telecom (4.77%) and transport (1.47%) during the week which saw global insurance rating agency A M Best has affirmed the financial strength rating of “B++ (Good)” and the issuer credit ratings of “bbb+” of Qatar Islamic Insurance Company (QIIC) with “stable” outlook for both ratings.
Market capitalisation expanded 8.04% to QR495.28bn with large, mid, small and micro cap equities gaining 8.4%, 5.72%, 4.05% and 2.41% respectively during the week.
Micro, small, large and mid cap stocks have however fallen year-to-date 14.59%, 14.3%, 10.25% and 9.93% respectively.
Of the 43 stocks, 32 advanced, while only eight declined and two were unchanged. Another one was not traded. As many as seven each of the 12 banks and financial services and the nine industrials; six of the eight consumer goods; four each of the five insurers and the four real estate; and two each of the three transport and the two telecom stocks closed higher during the week.
Major influential gainers included QNB, Industries Qatar, Qatari Investors Group, Qatar Insurance, Qatar General and Reinsurance, GIS, Mesaieed Petrochemical Holding, Ezdan, Barwa, Ooredoo and Nakilat; even as al khaliji, Milaha, Mannai Corporation, Islamic Holding Group and Widam Food bucked the trend during the week.
Foreign institutions turned net buyers to the tune of QR95.19mn against net sellers of QR184.91mn the week ended January 21.
Non-Qatari retail investors’ net profit booking weakened to QR8.06mn compared to of QR15.38mn the previous week.
However, local retail investors turned net sellers to the extent of QR23.5mn against net buyers of QR72.5mn the week ended January 21.
Domestic institutions were also net profit takers to the tune of QR63.78mn compared with net buyers of QR127.79mn the previous week.
Total trade volume fell 14% to 42.4mn shares, value by 12% to QR1.34bn and transactions by 21% to 21,505 during the week.
There was 42% plunge in the consumer goods sector’s trade volume to 3.77mn equities, 38% in value to QR88.5mn and 40% in deals to 1,766.
The telecom sector’s trade volume plummeted 39% to 4.07mn stocks, value by 30% to QR80.37mn and transactions by 35% to 2,740.
The market witnessed 35% shrinkage in the insurance sector’s trade volume to 0.28mn shares, 37% in value to QR17.21mn and 32% in deals to 300.
The transport sector’s trade volume tanked 34% to 2.04mn equities, value by 40% to QR47.15mn and transactions by 6% to 1,303.
The real estate sector saw 8% fall in trade volume to 11.57mn stocks, 10% in value to QR193.87mn and 14% in deals to 3,950.
However, the banks and financial services sector’s trade volume rose 5% to 12.36mn shares, even as value shrank 6% to QR555.85mn and transactions by 21% to 6,416.
The industrials sector reported less than 1% jump in trade volume to 8.31mn equities and 2% in value to QR359.68mn but on 5% decline in deals to 5,030.
In the debt market, there was no trading of treasury bills and government bonds during the week.
