The Qatar Stock Exchange (QSE) Index gained 203.78 points, or 1.99%, during the week to close at 10,427.91. Market capitalisation increased by 2.01% to QR562.1bn versus QR551.0 at the end of the previous week. Of the 44 listed companies, 26 companies ended the week higher, while 16 fell and 2 remained unchanged. Qatar Cinema & Film Distribution Co (QCFS) was the best performing stock for the week with a gain of 9.1% on 669 shares traded. On the other hand, Qatar Electricity & Water Co (QEWS) was the worst performing stock with a decline of 4.3% on 72,801shares traded.
QNB Group (QNBK), Masraf Al Rayan (MARK) and Industries Qatar (IQCD) were the primary contributors to the weekly index gain. QNBK was the biggest contributor to the index’s weekly increase, adding 59.2 points to the index. MARK was the second biggest contributor to the gains, adding 58.1 points to the index. Moreover, IQCD contributed 39.2 points to the index. On the other hand, Qatar Electricity & Water Co (QEWS) deleted 21.1 points from the index.
Trading value during the week decreased by 31.99% to reach QR1.1bn versus QR1.6bn in the prior week. The Banks and Financial Services sector led the trading value during the week, accounting for 54.08% of the total trading value. The Industrial sector was the second biggest contributor to the overall trading value, accounting for 14.83% of the total trading value. MARK was the top value traded stock during the week with total traded value of QR226.7mn.
Trading volume decreased by 43.09% to reach 31.3mn shares versus 55.0mn shares in the prior week. The number of transactions fell by 30.29% to reach 15,229 transactions versus 21,845 transactions in the prior week. The Banks and Financial Services sector led the trading volume, accounting for 40.44%, followed by the Real Estate sector, which accounted for 23.76% of the overall trading volume. MARK was the top volume traded stock during the week with total traded volume of 6.0mn shares.
Foreign institutions remained bullish during the week with net buying of QR75.2mn vs net buying of QR139.2mn in the prior week. Qatari institutions turned bullish with net buying of QR77.0mn vs net selling of QR3.0mn the week before. Foreign retail investors remained bearish for the week with net selling of QR3.6mn vs net selling of QR20.2mn in the prior week. Qatari retail investors remained bearish with net selling of QR148.6mn vs net selling of QR116.0mn the week before. In 2016 YTD, foreign institutions bought (on a net basis) ~$1.8bn worth of Qatari equities.
The index continued with its uptick and gained 2% versus the previous week; it closed at 10,427.91. The closing on the index remains below the 21SMA on the weekly chart. If the index breaks and remains above its 21SMA, then we expect further gains to be seen. Support level is at 9,750 and our expected resistance is at the 11,500 level.
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.
QNB
