Global equities meltdown knocks QSE below 9,500
February 11 2016 07:40 PM
Group Securities accounted for 1.29mn QSE transactions YTD July 2014. PICTURE: Noushad Thekkayil
Group Securities accounted for 1.29mn QSE transactions YTD July 2014. PICTURE: Noushad Thekkayil

By Santhosh V. Perumal/Business Reporter

Global equities meltdown and weak oil prices had its knock-on effect in the Qatar Stock Exchange, which plunged 134 points to sink below the 9,500 mark.

An across the board selling – particularly in the real estate, consumer goods, telecom and insurance – dragged the 20-stock Qatar Index 1.39% to 9,485.9 points.

Foreign institutions’ increased net profit booking and bearish grip of their domestic counterparts extended the weak run for the second day in the market, where trading turnover and volumes were however on the rise.

Nevertheless, local retail investors were increasingly bullish and their non-Qatari counterparts turned net buyers in the bourse, which is down 9.05% year-to-date.

The index that tracks Shariah-principled stocks was seen dropping faster than the other indices in the market, where industrials, banking and realty stocks together accounted for more than 85% of the total trading volume.

Market capitalisation eroded 1.41% or more than QR7bn to QR505.97bn with small, mid, large and micro cap equities declining 1.49%, 1.38%, 1.28% and 1.13% respectively.

The Total Return Index shed 1.39% to 14,794.21 points, All Share Index by 1.41% to 2,532.5 points and Al Rayan Islamic Index by 1.53% to 3,415.91 points.

Real estate stocks shrank 2.22%, consumer goods (1.78%), telecom (1.68%), insurance (1.45%), industrials (1.37%), banks and financial services (1.25%) and transport (0.05%).

More than 80% of the stocks were in the red with major losers being Gulf International Services, QNB, Barwa, Ezdan, Vodafone Qatar, Ooredoo, Qatar Insurance, Qatari Investors Group, Industries Qatar, Doha Bank, QIIB, Alijarah Holding and Dlala; even as Aamal Company, Nakilat, Qatar Islamic Bank, Commercial Bank and Al Khaleej Takaful bucked the trend.

Non-Qatari institutions’ net selling increased substantially to QR62.05mn compared to QR22.06mn on February 10.

Domestic institutions turned net sellers to the tune of QR5.42mn against net buyers of QR16.46mn on Wednesday.

However, local retail investors’ net buying surged to QR67.02mn compared to QR15.54mn the previous trading day.

Non-Qatari individual investors turned net buyers to the extent of QR4.01mn against net sellers of QR1.41mn on February 10.

The GCC (Gulf Cooperation Council) individuals’ net buying rose to QR1.91mn compared to QR0.69mn on Wednesday.

The GCC institutions’ net profit booking weakened to QR5.45mn against QR9.19mn the previous trading day.

Total trade volume rose 15% to 8.5mn shares, value by 24% to QR318.55mn and deals by less than 1% to 4,286.

The insurance sector’s trade volume grew more than five-fold to 0.16mn equities and value also by more than five-fold to QR10.14mn on almost doubled transactions to 120.

There was 85% surge in the industrials sector’s trade volume to 3.55mn stocks, 81% in value to QR129.22mn and 21% in deals to 1,483.

The telecom sector’s trade volume soared 75% to 0.49mn shares, value by 68% to QR20.89mn and transactions by 32% to 606.

The banks and financial services sector reported 6% jump in trade volume to 2.45mn equities, 13% in value to QR105.96mn and 3% in deals to 1,137.

However, the transport sector’s trade volume plummeted 57% to 0.2mn stocks, value by 67% to QR5.31mn and transactions by 53% to 117.

The market witnessed 38% plunge in the consumer goods sector’s trade volume to 0.36mn shares but value rose 4% to QR20.92mn; even as there was 32% decline in deals to 357.

The real estate sector’s trade volume tanked 30% to 1.27mn equities, value by 34% to QR26.11mn and transactions by 30% to 466.

In the debt market, there was no trading of treasury bills and government bonds.



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