Weekly Market Report
January 30 2016 09:41 PM
Moody’s has affirmed QNB’s ‘Aa3’ deposit rating with a “stable” outlook and affirmed ‘baa1’ BCA. A k

The Qatar Stock Exchange (QSE) index gained 688 points, or 8.01%, during the week to close at 9,272.01. Market capitalisation increased by 8.04% to QR495.3bn versus QR458.4bn at the end of the previous week. Of the 43 listed companies, 32 ended the week higher, while eight fell and three remained the same.
Qatari Investors Group (QIGD) was the best performing stock for the week with a gain of 15.89% on 1.6mn shares traded. On the other hand, Mannai Corp (MCCS) was the worst performing with a decline of 5.01% on only 11,958 shares traded.
QNB Group (QNBK), IQCD, and Ezdan Holding Group (ERES) were the primary contributors to the weekly index gain. QNBK was the biggest contributor, adding 155.0 points to the index. IQCD was the second biggest contributor, adding 134.1 points and ERES added 93.5 points. On the other hand, Milaha (QNNS) shed 11.3 points off the index.
Trading value during the week decreased by 11.85% to reach QR1.34bn versus QR1.52bn in the prior week. The banks and financial services sector led the pack, accounting for 41.40% of the total trading value. The industrials sector was the second biggest contributor, accounting for 26.79% of the total trading value. QNBK was the top value traded stock during the week with total traded value of QR196.3mn.
Trading volume decreased by 14.32% to reach 42.4mn shares versus 49.49mn in the prior week. The number of transactions dropped by 20.51% to reach 21,505 versus 27,054 in the prior week. The banks and financial services sector led the trading volume, accounting for 29.83%, followed by the industrials sector, which accounted for 23.39% of the overall trading volume. ERES was the top volume traded stock during the week with total traded volume of 4.3mn shares.
Foreign institutions turned bullish during the week with net buying of QR95.2mn versus net selling of QR184.9mn in the prior week. Qatari institutions turned bearish with net selling of QR63.8mn versus net buying of QR127.8mn the week before. Foreign retail investors remained bearish for the week with net selling of QR8.1mn versus net selling of QR15.4mn in the prior week. Qatari retail investors turned bearish with net selling of QR23.5mn versus net buying of QR72.5mn the week before.
In 2016 year-to-date, foreign institutions sold (on a net basis) $63mn worth of Qatari equities.
The QSE index bounced up last week and closed at 9,272.01 and gained 8.01% compared with the week before. We hoped for higher volumes on this rise, but the traded volumes did not increase with the week’s uptick. The major trend remains down and we recommend being cautious; volatility was in control of the market in the past week. Our expected support level remains at 8,100 points, yet we changed the resistance slightly to 9,600 points.
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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