An overall bullish momentum prevailed on the Qatar Stock Exchange (QSE), which led it to break the 11,000 mark twice intra-week, but could not sustain those levels at the end.
Banking and telecom counters witnessed heavy demand, which led the QSE main barometer gain 0.44% during the week which saw Qatar Insurance Company report net profit of QR1.03bn in 2016.
Kuwait had recorded huge 6.47% gains, Bahrain (4.87%), Saudi Arabia (3.77%), Dubai (0.3%) and Muscat (0.29%), while Abu Dhabi fell 1.71% during the week which saw Doha Bank net QR1.05bn in profit in 2016.
The QSE’s year-to-date gains were seen at 5.3% compared to 19.21% in Kuwait, 6.52% in Bahrain, 4.83% in Dubai and 1.71% in Abu Dhabi, whereas Saudi Arabia and Muscat declined 1.05% and 0.55% respectively.
Buying interests were squarely visible particularly in the large cap scrips on the QSE during the week which saw QIIB register QR785mn in net profit in 2016.
Islamic stocks were seen outperforming the main index during the week which saw Qatar National Cement’s 2016 net profit at QR475.1mn.
Local retail investors’ net selling pressure weakened and their non-Qatari counterparts turned net buyers during the week which saw Qatari Investors Group report net profit of QR277.03mn in 2016.
Trade turnover and volumes were on the decline during the week which saw real estate, banking and telecom sectors together account for more than 79% of the volumes.
In volumes, realty constituted 37% of the total, followed by banks and financial services (25%), telecom (17%), industrials (10%), consumer goods (6%), transport (3%) and insurance (2%) during the week which saw Widam Food register QR91.29mn as net profit in 2016.
In value, banks and financial services’ share was 35%, followed by real estate (24%), industrials (14%), consumer goods (11%), telecom (8%), insurance (5%) and transport (3%) during the week which featured a report from Credit Suisse that said the Qatari equity market has just broken out of its technical downtrend on stronger oil price driven rally but is likely to see a correction once its upgrade to FTSE secondary emerging market status is completed in March.
Opening the week marginally higher at 10,960 points, there was a mild profit booking on the second day to take the index to a low of 10,950 points, after which it rebounded to hit a high of 11,058 points on Tuesday. Thereafter, selling pressure ensued for the next two days, finally resting the 20-stock Qatar Share Index at 10,990 points.
The 20-stock Total Return Index gained 0.44%, All Share Index (comprising wider constituents) by 0.34% and Al Rayan Islamic Index by 0.55% during the week which saw a Qatar Investment Fund report view that the recovery in oil price and a strong expansion in non-hydrocarbons should help Qatar effectively manage the future interest rate hikes, helping its economic growth to pick up this year.
Banks and financial services sector saw its index expand 1.92%, telecom (1.35%) and transport (0.22%); whereas realty shrank 1.55%, insurance (1.06%), industrials (0.71%) and consumer goods (0.36%) during the week which witnessed global credit rating agency Standard and Poor's say that the "deterioration" in the profitability of the Gulf banks is likely to continue this year and in 2018, strengthening the prospects of regional consolidation in the sector.
Market capitalisation expanded more than QR2bn or 0.43% to QR588.41bn as large cap equities gained 1.2%, while mid, micro and small caps fell 0.28%, 0.21% and 0.07% respectively during the week which saw Milaha announce its container feeder service between Saudi Arabia and India.
Large, micro, mid and small have reported year-to-date gains of 6.04%, 3.07%, 2.45% and 2.2% respectively.
Of the 44 stocks, only 19 rose, while 22 declined and three were unchanged during the week which saw Mazaya Qatar, Barwa and Masraf Al Rayan dominate the trading ring in volumes and value.
Six of the 13 banks and financial services, four of the eight industrials, three each of the nine consumer goods and the four real estate, and one each of the five insurers, the three transport and the two telecom stocks settled higher during the week.
Major gainers included Commercial Bank, QIIB, Masraf Al Rayan, Al Meera, Qatar National Cement, QNB, Ooredoo, Mazaya Qatar, Doha Bank, Widam Food, Qatar Islamic Insurance, United Development Company and Milaha during the week.
Nevertheless, Qatari German Company for Medical Devices, Islamic Holding Group, Dlala, Ezdan, Medicare Group, al khaliji, Alijarah Holding, Woqod, Qatar Insurance, Aamal Company, Qatar Electricity and Water, Qatari Investors Group, Ezdan, Vodafone Qatar, al khaliji, Qatar First Bank and Gulf Warehousing were among the losers during the week.
Non-Qatari individual investors turned net buyers to the tune of QR1.23mn compared with net sellers of QR12.7mn the week ended January 19.
Local retail investors’ net selling weakened perceptibly to QR144.79mn against QR191.86mn the previous week.
However, domestic institutions’ net buying declined substantially to QR103.3mn compared to QR144.42mn the week ended January 19.
Foreign institutions’ net buying also weakened to QR40.53mn against QR60.15mn the previous week.
Total trade volume fell 10% to 44.59mn shares, value by 15% to QR1.36bn and transactions by 14% to 16,826 during the week.
There was 53% plunge in the industrials sector’s trade volume to 4.55mn equities, 47% in value to QR191.78mn and 32% in deals to 2,592.
The transport sector’s trade volume plummeted 52% to 1.27mn stocks, value by 46% to QR41.55mn and transactions by 54% to 589.
The consumer goods sector reported 20% shrinkage in trade volume to 2.58mn shares, 26% in value to QR152.91mn and 33% in deals to 1,775.
The banks and financial services sector’s trade volume tanked 16% to 11.07mn equities, value by 17% to QR481.83mn and transactions by 6% to 6,227.
However, the insurance sector’s trade volume more than doubled to 0.83mn stocks and value also more than doubled to QR66.62mn on 29% jump in deals to 541.
The market witnessed 23% surge in the telecom sector’s trade volume to 7.8mn shares and 31% in value to QR102.31mn but on 3% fall in transactions to 1,284.
The realty sector’s trade volume soared 20% to 16.49mn equities, value by 17% to QR327.66mn and deals by 11% to 3,818.
In the debt market, there was no trading of treasury bills and government bonds during the week.