QSE reverses 2-day losses on foreign buy support

Reversing a two-day bearish spell, the Qatar Stock Exchange rebounded, mainly on strong buying from foreign institutions, but remained below 10,500 levels.

The telecom, banking and industrials counters witnessed higher demand, which led the 20-stock Qatar Index to gain 0.74% to 10,489.28 points.

The market opened on a stronger note, making gains for the first more than 60 minutes to reach a high of close to 10,500 points, after which profit-booking ensued for 30 minutes. Thereafter, mild buying and selling dotted the markets, but overall it was largely flat for the remainder of the session, settling 78 points high against the previous close.

Buying was more concentrated in large-cap segments in the market, which is up 0.5% year-to-date.

Islamic stocks were seen under-performing the main index as well as other indices in the market, which also saw lower net selling by Gulf individual investors.

However, domestic and Gulf institutions were increasingly net sellers and there was considerably lower net buying from local retail investors.

Trade turnover and volumes declined in the market, where the telecom and banking sectors together accounted for about 71% of the total volumes.

Market capitalisation shot up more than QR4bn, or 0.72%, to QR563.36bn as large and microcap cap equities gained 1% and 0.16%, while small and midcaps fell 0.16% and 0.06% respectively.

The Total Return Index gained 0.74% to 17,495.03 points, the All Share Index by 0.59% to 2,966.04 points and the Al Rayan Islamic Index by 0.44% to 4,184.47 points.

The telecom sector saw its index soar 2.1%, followed by banks and financial services (0.85%), industrials (0.83%), realty and consumer goods (0.09% each); while insurance and transport declined 0.52% and 0.13% respectively.

About 53% of the stocks extended gains with major movers being Ooredoo, Commercial Bank, Qatar Islamic Bank, QNB, Doha Bank, Industries Qatar, Aamal Company, Qatar Electricity and Water, Barwa, Nakilat and Medicare Group.

Nevertheless, Qatar General Insurance and Reinsurance, Vodafone Qatar, Gulf Warehousing, Milaha, Mesaieed Petrochemical Holding, Qatari Investors Group and Al Khaliji saw their stocks lose sheen.

Non-Qatari institutions’ net buying strengthened considerably to QR24.97mn compared to QR4.56mn the previous day.

GCC (Gulf Cooperation Council) retail investors’ net selling fell perceptibly to QR2.13mn against QR7.17mn on Tuesday.

However, domestic institutions’ net selling increased substantially to QR13.4mn compared to QR4.73mn on April 11.

GCC institutions’ net-profit booking rose influentially to QR11.69mn against QR8.33mn the previous day.

Local retail investors’ net buying weakened perceptibly to QR1.99mn compared to QR13.6mn on Tuesday.

Non-Qatari individual investors’ net buying also declined to QR0.28mn against QR2.07mn on April 11.

Total trade volumes fell 33% to 7.2mn shares and value by 30% to QR199.11mn, while deals were up 7% to 3,193.

There was a 60% plunge in the real estate sector’s trade volume to 1.18mn equities, 52% in value to QR23.51mn and 30% in transactions to 319.

The industrials sector’s trade volume plummeted 58% to 0.31mn stocks and value by 10% to QR21.75mn; whereas deals gained 56% to 819.

The transport sector reported a 49% shrinkage in trade volume to 0.29mn shares, 69% in value to QR8mn and 25% in transactions to 218.

The banks and financial services sector’s trade volume tanked 36% to 2.43mn equities and value by 34% to QR90.29mn, while deals rose 13% to 1,217.

The market witnessed a 26% decline in the consumer goods sector’s trade volume to 0.14mm stocks but on a 17% jump in value to QR12.63mn despite a 12% lower transactions to 196.

The insurance sector’s trade volume shrank 14% to 0.19mn shares, whereas value expanded 48% to QR13.08mn and deals by 24% to 175.

However, the telecom sector saw an 18% surge in trade volume to 2.67mn equities and 8% in value to QR29.85mn but on an 11% fall in transactions to 249.

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