The first week of 2017 saw heavy demand for realty, telecom and insurance stocks, which lifted the Qatar Stock Exchange (QSE) amidst rebound in the global oil prices.
It was the second best performer among the Gulf bourses during the week.
The increased buying support from foreign institutions and the bullish outlook of their domestic counterparts led the QSE expand 2.69% during the week which saw the global oil prices hit an 18-month high to trade over $58 a barrel with oil producers’ production cut becoming effective from January 1.
Reflecting the buoyancy in the global energy market, most of the Gulf bourses also had an optimistic run with Dubai gaining 2.75%, Kuwait (1.45%), Abu Dhabi (1.22%) and Muscat (0.17%), while Bahrain and Saudi Arabia fell 1.15% and 0.16% respectively during the week which however saw the International Monetary Fund view that Qatar's ongoing public investments could over-heat the economy in near term and the prospects of further rise in the US rates may “complicate” efforts to bolster growth.
Market capitalisation expanded more than QR12bn on heavy investors’ demand especially for micro and large cap equities during the week which saw QNB forecast that Qatar's economic growth is set to pick up to 3.8% and consumer price index inflation to average 3.4% this year.
Trade turnover expanded amidst lower volumes during the week which witnessed Investment Holding Group, the first Qatari family business that will launch an initial public offering (IPO) next week, chalk out expansion, especially in infrastructure in view of the promising prospects in Qatar.
In volumes, realty sector constituted 35% of the total, followed by banks and financial services (28%), telecom (15%), industrials (12%), transport (6%), consumer goods (3%) and insurance (2%) during the week which saw which saw Masraf Al Rayan announced "voluntary" suspension of the activities of Al Rayan Financial Brokerage Company, its fully-owned subsidiary.
In value, banks and financial services’ share was 32%, followed by real estate and industrials (22% each), telecom (8%), transport (7%), and consumer goods and insurance (5% each) during the week which saw a Kamco Research that said the recovery in the Gulf Cooperation Council (GCC) equity markets is expected to be swifter in 2017, led by a faster pace of economic growth and corporate profitability that continues to remain "largely resilient", backed by higher state spending.
Opening the week marginally weak at 10,429 points, the market then witnessed consistent gains for the remaining days, on the back of strong rebound in the global oil prices, and the index overall gained 281 points during the week which saw Kamco view that equity valuations and government-sponsored maiden offers will be the key to the IPOs in the GCC.
The 20-stock Total Return Index gained 2.69%, All Share Index (comprising wider constituents) by 2.38% and Al Rayan Islamic Index by 2.65% during the week which found that conventional brokerage houses largely saw faster decline in trade turnover than their Islamic counterparts in 2016.
Realty sector saw its index soar 4.24%, telecom (3.24%), insurance (2.66%), industrials (2.44%), banks and financial services (1.77%), consumer goods (1.45%)m and transport (1.19%) during the week which saw Qatar estimated to have grown 3.7% year-on-year during the third quarter of 2016 with hydrocarbons segment expanding 2.7% and non-hydrocarbons by a higher 4.7%.
Market capitalisation appended 2.19% to QR575.8bn with micro, large, mid and small cap equities gaining 2.41%, 2.33%, 1.8% and 0.33% respectively during the week which saw consumer goods register faster decline in trade volumes and value.
Of the 44 stocks, as many as 32 gained, while only 10 fell and two were unchanged. As many as nine of the 13 banks and financial services, all of the eight industrials, four each of the nine consumer goods and the four real estate, all of the three transport, and two each of the five insurers and the two telecom stocks closed higher during the week which saw Mazaya Qatar and Ezdan dominate the trading ring in volumes and value.
About 73% of the stocks extended gains with major movers being Dlala, United Development Company, Mazaya Qatar, Alijarah Holding, QNB, Qatar Islamic Bank, QIIB, Industries Qatar, Woqod, Aamal Company, Qatar Electricity and Water, Gulf International Services, Mesaieed Petrochemical Holding, Ooredoo, Vodafone Qatar and Nakilat during the week which saw real estate, banking and telecom sectors together constituted more than 78% of the total volumes.
Nevertheless, Commercial Bank, al khaliji, Qatar First Bank, Qatar General and Reinsurance, Widam Food, Al Meera and Al Khaleej Takaful were among the losers during the week.
Foreign institutions’ net buying increased substantially to QR175.72mn compared to QR86.05mn the week ended December 29.
Domestic institutions turned net buyers to the tune of QR49.12mn against net sellers of QR12.22mn the previous week.
However, local retail investors’ net selling strengthened considerably to QR205.2mn compared to QR64.81mn the week ended December 29.
Non-Qatari individual investors’ net profit booking also increased perceptibly to QR19.65mn against QR9.22mn the previous week.
Total trade volume was down 5% to 39.16mn shares, while value gained 16% to QR1.13bn and transactions by 11% to 14,971 during the week.
There was 28% plunge in the consumer goods sector’s trade volume to 1.04mn equities, 23% in value to QR56.3mn and 20% in deals to 1,158.
The telecom sector’s trade volume plummeted 21% to 6.06mn stocks, value by 9% to QR85.26mn and transactions by 4% to 1,184.
The banks and financial services sector saw 17% shrinkage in trade volume to 10.88mn shares but on 11% increase in value to QR357.24mn and 2% in deals to 4,542.
The real estate sector’s trade volume shrank 5% to 13.61mn equities and value by 6% to QR250.45mn, while transactions expanded 18% to 3,233.
However, the transport sector reported 69% surge in trade volume to 2.25mn stocks and 14% in value to QR77.28mn but on 13% decline in deals to 729.
The industrials sector’s trade volume soared 67% to 4.6mn shares to more than double value to QR245.26mn on 51% increase in transactions to 3,515.
The market witnessed 47% expansion in the insurance sector’s trade volume to 0.72mn equities, more than doubling value to QR57.52mn on 28% jump in deals to 610.
In the debt market, there was no trading of treasury bills and government bonds during the week.