Qatar Stock Exchange (QSE) saw bullish spell in three of the five days, yet it closed the week in the negative, becoming the third worst performer among the Gulf bourses.
Weakened buying support from institutions was rather instrumental in driving the QSE main barometer down 0.07% during the week which saw global oil prices lose steam from the previous week’s close on apprehensions that many oil producers may not adhered to the agreed production cut.
Saudi Arabia had registered 3.85% plunge and Muscat 0.52%, whereas Kuwait gained 4.74%, Dubai (2.56%), Abu Dhabi (1.72%) and Bahrain (0.44%) during the week which saw global credit rating agency Standard and Poor’s (S&P) revise its outlook on Ooredoo to “positive” on stronger cash generation.
QSE however reported 2.61% gains year-to-date compared to 6.26% in Kuwait, 5.37% in Dubai and 2.97% in Abu Dhabi; while Saudi Arabia had declined 4%, Bahrain (0.71%) and Muscat (0.35%).
Midcap segments largely witnessed higher than average selling pressure in the QSE during the week which saw Investment Holding Group launch its initial public offer.
Islamic stocks were seen underperforming the main index during the week which saw Ministry of Development Planning and Statistics reveal that Qatar’s consumer price index inflation rose 1.8% year-on-year in December 2016.
Trade turnover and volumes were seen lower during the week which saw Gulf Intelligence disclose that 49% of its survey respondents feel that average Brent price is expected to be $40 this year.
In volumes, banks and financial services sector constituted 31% of the total, followed by realty (28%), telecom (20%), industrials (14%), consumer goods (4%), transport (2%) and insurance (2%) during the week which saw which saw real estate and transport sectors record fast decline in volumes and value respectively.
In value, banks and financial services’ share was 31%, followed by industrials (25%), realty (19%), consumer goods (10%), telecom (9%), insurance (4%) and transport (3%) during the week which S&P say that the Gulf Cooperation Council would require $275bn financing in 2017-19, of which on average around 50% to be raised through conventional/sukuks.
Opening the week strong at 10,726 points, the market then witnessed declines for the next two session to take the index to a low of 10,700 points, after there was buying pressure but not strong enough. Accordingly, the index closed eight points during the week during the week which saw baking, real estate, telecom and industrials sectors together constituted about 92% of the total volumes.
The 20-stock Total Return Index fell 0.07% and Al Rayan Islamic Index by 0.18%, while All Share Index (comprising wider constituents) was up 0.02% and during the week which saw five of the seven sectors exhibit bullish momentum.
Consumer goods sector saw its index soar 1.41%, telecom (0.97%), insurance (0.88%), banks and financial services (0.18%) and industrials (0.04%); whereas real estate and transport shrank 1.22% and 0.78% respectively during the week which witnessed Vodafone Qatar and Mazaya Qatar dominate the trading ring in terms of volume and value.
Market capitalisation was up 0.09% or QR50mn to QR576.3bn mainly on 0.55% fall in midcap equities, even as small, micro and large caps rose 0.72%, 0.4% and 0.3% respectively during the week.
Micro, large, mid and small cap stocks have reported year-to-date gains of 2.82%, 2.64%, 1.24% and 1.05% respectively.
Of the 44 stocks, as many as 17 fell, while 25 gained and two were unchanged. Four each of the 13 banks and financial services, the nine consumer goods and the eight industrials, three of the four real estate and two of the three transport stocks closed lower during the week.
Major losers included Mazaya Qatar, Mesaieed Petrochemical Holding, Milaha, Gulf Warehousing, Ezdan, Barwa, Doha Bank, Qatari German Company for Medical Devices and Qatar Investors Group during the week.
Nevertheless, Alijarah Holding, Woqod, Aamal Company, Qatar Islamic Insurance, Qatar National Cement, QNB, Aamal Company, Qatar Insurance, Ooredoo, Nakilat and Medicare Group were among the gainers.
Foreign institutions’ net buying weakened substantially to QR135.1mn compared to QR175.72mn the week ended January 5.
Domestic institutions’ net buying also declined perceptibly to QR40.55mn against QR49.12mn the previous week.
However, local retail investors’ net selling fell considerably to QR169.41mn compared to QR205.2mn the week ended January 5.
Non-Qatari individual investors’ net profit booking also weakened to QR6.24mn against QR19.65mn the previous week.
Total trade volume was down 5% to 37.34mn shares and value also by 5% to QR1.08bn, while transactions rose 11% to 16,570 during the week.
There was 64% plunge in the transport sector’s trade volume to 0.8mn equities, 64% in value to QR27.78mn and 17% in deals to 602.
The real estate sector’s trade volume plummeted 24% to 10.29mn stocks, value by 17% to QR208.78mn and transactions by 18% to 2,635.
The market witnessed 4% decline in the insurance sector’s trade volume to 0.69mn shares, 19% in value to QR46.45mn and 1% in deals to 605.
However, the consumer goods sector’s trade volume soared 45% to 1.51mn equities, value by 85% to QR104.4mn and transactions by 47% to 1,697.
The telecom sector reported 20% surge in trade volume to 7.3mn stocks and 8% in value to QR92.12mn but on 3% shrinkage in deals to 1,147.
The industrials sector’s trade volume expanded 14% to 5.25mn shares, value by 9% to QR267.78mn and transactions by 40% to 4,930.
The banks and financial services sector saw 6% increase in trade volume to 11.5mn equities but on 8% fall in value to QR328.32mn. Deals were up 9% to 4,954.
In the debt market, there was no trading of treasury bills and government bonds during the week.
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