The Qatar Stock Exchange (QSE) index gained 411.61 points, or 4.44%, during the week to close at 9,683.62. Market capitalisation increased by 4.43% to QR517.2bn versus QR495.3bn at the end of the previous week. Of the 43 listed companies, 33 ended the week higher, while nine fell and one remained unchanged. Medicare (MCGS) was the best performing stock for the week with a gain of 29.79% on 774,534 shares traded. On the other hand, Gulf International Services (GISS) was the worst performing stock with a decline of 18.57% on 4.3mn shares traded.
Ezdan Group Holding (ERES), Qatar Islamic Bank (QIBK) and QNB Group (QNBK) were the primary contributors to the weekly index gains. ERES was the biggest contributor, adding 128.98 points to the index. QIBK was the second biggest contributor, tacking on 72.31 points to the index. Moreover, QNBK contributed 57.42 points to the index’s weekly gain. On the other hand, Gulf International Services (GISS) contributed negatively to the index, shedding 44.82 points from index.
Trading value during the week increased by 3.33% to reach QR1.39bn versus QR1.34bn in the prior week. The banks and financial services sector led the pack during the week, accounting for 31.6% of the total trading value. The industrials sector was the second biggest contributor, accounting for 25.3% of the total trading value. GISS was the top value traded stock during the week with total traded value of QR171.9mn.
Trading volume increased by 6.34% to reach 45.1mn shares versus 42.4mn in the prior week. The number of transactions increased by 10.4% to reach 23,745 versus 21,505 in the prior week. The banks and financial services sector led the trading volume, accounting for 25.73%, followed by the real estate sector, which accounted for 24.09% of the overall trading volume. ERES was the top volume traded stock during the week with total traded volume of 5.3mn shares.
Foreign institutions remained bullish during the week with net buying of QR106.1mn versus net buying of QR95.2mn in the prior week. Qatari institutions remained bearish with net selling of QR65.9mn versus net selling of QR63.8mn the week before. Foreign retail investors turned bullish for the week with net buying of QR4.4mn versus net selling of QR8.1mn in the prior week. Qatari retail investors remained bearish with net selling of QR44.8mn versus net selling of QR23.5mn the week before.
In 2016 year-to-date, foreign institutions sold (on a net basis) $42mn worth of Qatari equities.
Technical analysis of the QSE index
The QSE index continued its uptick and closed at 9,683.62 and gained 4.44% versus the week before. The major trend remains down and volatility was in control yet another week but still on low volumes. Our expected support level remains at 8,100 points, and we updated our weekly resistance level to 10,500 points.
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.
DISCLAIMER
This report expresses the views and opinions of Qatar National Bank Financial Services SPC (“QNBFS”) at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. Gulf Times and QNBFS hereby disclaim any responsibility or any direct or indirect claim resulting from using this report.
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