Weakened buying interests trigger 129 point plunge for QSE

Small, micro and midcap stocks were battered heavily on Wednesday, leading the Qatar Stock Exchange plunge 129 points and settle below the 10,100 mark.

An across the board selling – particularly in realty, insurance, industrials and transport sectors – dragged the 20-stock Qatar Index 1.26% to 10,073.03 points. The market’s year-to-date losses widened to 3.42%.

Foreign institutions’ considerably weakened buying interests were seen instrumental in the rout in the market, where Islamic stocks were seen declining faster than the conventional ones.

Trade turnover and volumes were on the decline in the bourse, where real estate, banking and consumer goods stocks together constituted about 69% of the total volumes.

Although non-Qatari individual investors exhibited lesser penchant for buying; their local counterparts and Gulf institutions turned bullish and there was substantial weakening of net selling by domestic institutions.

Market capitalisation eroded 1.11% or more than QR6bn to QR543.77bn as small, micro, mid and large cap equities melted 3.48%, 2.07%, 1.52% and 0.66% respectively.

The Total Return Index shed 1.26% to 16,297.5 points, All Share Index by 1.3% to 2,777.32 points and Al Rayan Islamic Index by 1.97% to 3,657.53 points.

Realty sector saw its index plummet 2.44%, insurance (2.18%), industrials (1.78%), transport (1.76%), consumer goods (1.7%), telecom (0.76%) and banks and financial services (0.34%).

About 83% of the stocks were in the red with major losers being Industries Qatar, Barwa, Ezdan, Nakilat, QNB, Ooredoo, Vodafone Qatar, Commercial Bank, Qatar Islamic Bank, Doha Bank, Aamal Company, Qatari Investors Group, Gulf International Services, Mesaieed Petrochemical Holding, Mazaya Qatar, Alijarah Holding, Dlala, Medicare Group and Milaha; even as QIIB and al khaliji saw their stocks make modest gains.

Non-Qatari institutions’ net buying weakened considerably to QR36.49mn against QR119.2mn the previous day.

Non-Qatari individual investors’ net buying declined to QR0.37mn compared to QR2.87mn on November 1.

However, the GCC (Gulf Cooperation Council) institutions turned net buyers to the tune of QR11.75mn against net sellers of QR13.53mn on Tuesday.

Local retail investors were also net buyers to the extent of QR0.26mn compared with net sellers of QR6.35mn the previous day.

The GCC individual investors turned net buyers to the tune of QR1.84mn against net sellers of QR0.29mn on November 1.

Domestic institutions’ net profit booking weakened perceptibly to QR50.74mn compared to QR101.9mn on Tuesday.

Total trade volume fell 29% to 5.59mn shares, value by 31% to QR219.18mn and deals by 4% to 3,255.

There was 83% plunge in the industrials sector’s trade volume to 0.53mn equities, 84% in value to QR26.74mn and 9% in transactions to 483.

The telecom sector’s trade volume plummeted 58% to 0.59mn stocks, value by 49% to QR11.31mn and deals by 20% to 251.

The real estate sector reported 1% fall in trade volume to 1.36mn shares; but on 17% jump in value to QR34.65mn and 31% in transactions to 1,037.

However, the insurance sector’s trade volume grew 30-fold to 0.3mn equities and value by about 14-fold to QR15.06mn on more than quadrupled deals to 100.

The consumer goods sector’s trade volume almost tripled to 1.12mn stocks and value soared 69% to QR67.09mn; while transactions shrank 43% to 395.

The market witnessed 3% gain in the transport sector’s trade volume to 0.33mn shares and 15% in value to QR8.91mn but on 6% dip in deals to 180.

The banks and financial services sector’s trade volume was up 2% to 1.35mn equities, while value fell 2% to QR55.42mn and transactions by 6% to 809.

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