Buying support makes QSE best performer in GCC
May 13 2016 07:31 PM
QSE's key index gained 193 points during the week

By Santhosh V. Perumal/Business Reporter

Reflecting the rebound in the global oil prices, which neared six-month high, the Qatar Stock Exchange (QSE) saw its key index gain 193 points to become the best performer among the Gulf Cooperation Council bourses during the week.
The bullish momentum was on account of buying support from foreign institutions and local retail investors during the week which saw Doha Bank receive shareholders’ nod for its $5bn capital boost through certificate of deposits and Euro commercial papers.
Consumer goods, telecom, real estate, industrials and transport counters witnessed heavy demand during the week which featured a report from Arab Petroleum Investments Corporation that said Qatar would require $9bn for the next five years in its power sector for generation and transmission and distribution.
Islamic stocks were seen outperforming the market during the week which saw Doha Bank Assurance Company’s outlook being revised to ‘negative’ from ‘stable’ by global credit rating agency Standard and Poor’s.
Small and microcap equities considerably strengthened during the week which saw the 20-stock Qatar Index surge 1.98%.
Dubai saw its bourse gain 1.12%, Saudi Arabia (0.58%) and Kuwait (0.42%); whereas Abu Dhabi fell 0.93%, Muscat (0.17%) and Bahrain (0.12%) during the week which saw Qatar Insurance Company announce the completion of rights issue.
The QSE is down 4.68% year-to-date compared to a steep fall of 8.59% in Bahrain, 3.91% in Kuwait and 3.14% in Saudi Arabia; whereas Muscat gained 10.42%, Dubai 6.15% and Abu Dhabi 1.86%.
Opening the week marginally weak at 9,730 points on Sunday, the market was on a consistent path of gains for the remainder of the session and thus its key index settled at 9,941 points during the week which saw banking, industrials and realty stocks constituted more than 74% of the trading volumes in the QSE.
The 20-stock Total Return Index soared 1.98%, All Share Index (comprising wider constituents) by 1.85% and Al Rayan Islamic Index 3.35% during the week which saw Qatar First Bank (QFB) and Qatari Investors Group dominate the trading ring in terms of volume and value.
Consumer goods stocks appreciated 4.32%, telecom (4.05%), real estate (3.17%), industrials (2.28%), transport (2.1%) and banks and financial services (0.85%); whereas insurance fell 1.32% during the week.
Market capitalisation shot up 1.58% or more than QR8bn to QR535.09bn with small, micro, large and midcap equities gaining 3.28%, 2.74%, 1.65% and 0.68% respectively during the week.
Mid, micro and small cap stocks have gained 2.72%, 2.03% and 0.12% respectively year-to-date; but large caps tanked 6.66%.
Of the 44 stocks, as many 33 rose, while only nine fell and one was unchanged. Another one was not traded. Eight of the nine industrials; seven of the eight consumer goods, six of the 13 banks and financial services; all of the four realty; three each of the five insurers and the three transport; and all of the two telecom stocks close higher during the week.
About 77% of the scrips extended gains with major movers being Ooredoo, Ezdan, Mazaya Qatar, United Development Company, Gulf Warehousing, Gulf International Services, Aamal Company, Qatari Investors Group, Mannai Corporation, Medicare Group, QNB, Masraf Al Rayan, Dlala and Al Meera during the week.
However, QFB, Mesaieed Petrochemical Holding, Qatar General and Reinsurance and Qatar Islamic Bank were seen bucking the trend during the week.
Foreign institutions’ net buying increased considerably to QR84.33mn compared to QR8.07mn the previous week.
Local retail investors turned net buyers to the tune of QR7.65mn against net sellers of QR7.8mn the week ended May 5.
However, domestic institutions’ net selling strengthened perceptibly to QR89.34mn compared to QR15.34mn the previous week.
Non-Qatari individual investors turned net profit takers to the extent of QR2.64mn against net buyers of QR15.08mn the week ended May 5.
Total trade volume fell 7% to 39.65mn shares, while value rose 5% to QR1.39bn and transactions by 12% to 24,661 during the week.
There was 31% plunge in the consumer goods sector’s trade volume to 3.6mn equities and 13% in value to QR239.6mn but on 42% increase in deals to 3,479.
The insurance sector’s trade volume plummeted 26% to 0.45mn stocks and value by 28% to QR32.27mn, while transactions rose 15% to 584.
The banks and financial services sector saw 15% shrinkage in trade volume to 14.17mn shares, 9% in value to QR403.25mn and 10% in deals to 6,869.
The real estate sector’s trade volume declined 6% to 7.3mn equities and value by 1% to QR147.56mn; whereas transactions gained 12% to 3,742.
The market witnessed 6% fall in telecom sector’s trade volume to 3.04mn stocks and 1% in value to QR76.75mn but on 3% rise in deals to 2,708.
However, the transport sector’s trade volume shot up 28% to 3.08mn shares, value by 55% to QR126.47mn and transactions by 42% to 1,821.
The industrials sector reported 20% surge in trade volume to 8.01mn equities, 47% in value to QR365.7mn and 32% in deals to 5,458.
In the debt market, there was no trading of treasury bills and government bonds during the week.

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