The bearish pressure ran through the entire five days this week on the Qatar Stock Exchange (QSE), which saw a 201 points decline in its key index and more than 9bn in capitalisation.
More than 70% of the traded stocks were in the red as the 20-stock Qatar Index plunged 2.01% this week, which saw the QSE and the Qatar Financial Market Authority giving final touches to legislations pertaining to allow market makers, which are expected to make their advent by the second half of this year.
Kuwait shrank 2.77%, Saudi Arabia (2.51%), Muscat (1.74%), Bahrain (1.61%) and Dubai (1.13%), while Abu Dhabi was up 0.08% this week which Moody’s, a global credit rating agency, view that Qatar’s lifting of 12-year self-imposed moratorium on gas development will support real economic growth and income levels as well as help defend its global market share and sustain higher expenditure and debt levels.
The Qatari bourse’s year-to-date losses (YTD) were at 1.87% against 5.33% in Muscat, 4.32% in Saudi Arabia, 1.73% in Dubai and 0.54% in Abu Dhabi; whereas Kuwait and Bahrain gained 18.54% and 9.34% respectively.
Foreign and domestic institutions turned profit takers this week which saw London Stock Exchange-listed Qatar Investment Fund say Qatar’s renewed gas development at North Field could give it a competitive edge after 2020, when the global liquefied natural gas market is expected to tighten.
Transport and industrials sectors specifically saw robust selling on the QSE this week, which saw Doha Bank report net profit of QR364mn in the first quarter (Q1) of this year.
Selling was skewed towards small cap equities this week which witnessed Al Khaliji post QR160.9mn net profit in Q1, 2017.
Islamic stocks were seen falling faster than the main index this week which saw Gulf International Services (GIS) report a net profit of QR15mn in Q1, 2017.
However, local retail investors turned bullish and there was lower net selling by their non-Qatari counterparts this week which saw the World Bank find that Qatar’s fiscal policy lacks anchors to shield the country’s budget from oil price cycles.
Overall trade turnover declined amidst higher volumes this week, which saw telecom, banking and real estate sectors together account for about 89% of the volumes.
Telecom sector constituted 38% of the total volume, banks and financial services (30%), realty (22%), industrials (5%), transport (3%), consumer goods (2%) and insurance (1%) this week which saw Gulf Warehousing (GWC) post QR50.5mn net profit in Q1, 2017.
Banks and financial services’ share in total trade turnover was 36%, telecom (20%), real estate (18%), industrials (12%), consumer goods (8%), transport (5%) and insurance (1%) this week which saw Aamal Company outline its “careful” diversification strategy by identifying sectors that offer investment opportunities, especially in ready-mix, medical and real estate in Qatar to ensure new and profitable revenue streams.
Opening the week weak at 10,431 points, the market remained on a slippery path for the next day but largely remained flat on Tuesday but only to see stronger profit booking for the next two days, thus settle substantially lower this week which saw Vodafone Qatar, Mazaya Qatar, Ezdan and Alijarah Holding dominate the trading in volume and value.
The 20-stock Total Return Index shed 1.48%, All Share Index (comprising wider constituents) by 1.33% and Al Rayan Islamic Index by 1.46% this week which saw no trading of treasury bills and government bonds.
The transport index plummeted 2.95%, industrials (2.67%), banks and financial services (1.28%), consumer goods (0.83%), realty (0.66%); while telecom and insurance gained 0.76% and 0.36% respectively this week which saw Doha Insurance’s Q1 net profit at QR27.4mn.
Market capitalisation eroded 1.65% to QR552.22bn as small, large, mid and microcap equities tanked 2.16%, 1.82%, 0.94% and 0.7% respectively this week which witnessed Qatar Industrial Manufacturing Company (QIMC) sign an agreement with the UK-based Cheval Residences to launch luxury-serviced apartments in Doha in 2020.
Mid, large and microcap stocks have reported YTD losses of 7.9%, 2.03% and 0.73% respectively, while small caps rose 0.68%.
Major losers included GIS, Commercial Bank, QIMC, Zad Holding, Milaha, Industries Qatar, QIIB, Qatar Islamic Bank, QNB, Masraf Al Rayan, Qatar Electricity and Water, Aamal Company, Mazaya Qatar, United Development Company, Barwa, Ezdan, Nakilat, Milaha and GWC this week.
Nevertheless, major gainers included Doha Insurance, Dlala, Doha Bank, Qatar First Bank, Vodafone Qatar and Ooredoo this week.
Foreign institutions turned net sellers to the tune of QR6.89mn compared with net buyers of QR28.13mn the week ended April 13.
Domestic institutions were also net profit takers to the extent of QR3.98mn compared with net buyers of QR8.5mn the previous week.
However, local retail investors turned net buyers to the tune of QR18.33mn against net sellers of QR19.73mn the week ended April 13.
Non-Qatari individual investors’ net profit booking weakened influentially to QR7.57mn compared to QR17.01mn the previous week.
Total trade volume rose 16% to 45.09mn shares, while value fell 11% to QR970.06mn and transactions by 4% to 13,667 this week.
There was 65% surge in the telecom sector’s trade volume to 17.07mn equities, 49% in value to QR191.03mn and 53% in deals to 1,593.
The banks and financial services sector’s trade volume increased 9% to 13.32mn stocks but value fell 23% to QR348.62mn and transactions by 11% to 4,838. The industrials sector saw 1% jump in trade volume to 2.39mn shares but on 12% decline in value to QR116.41mn despite 11% higher deals to 3,014.
However, the insurance sector’s trade volume plummeted 61% to 0.23mn equities, value by 55% to QR14.1mn and transactions by 47% to 261.
The market witnessed 23% plunge in the transport sector’s trade volume to 1.46mn stocks, 28% in value to QR50.56mn and 9% in deals to 969.
The real estate sector’s trade volume tanked 7% to 9.74mn shares, value by 14% to QR174.79mn and transactions by 25% to 1,703.
The consumer goods sector reported 5% decline in trade volume to 0.88mn equities but on 1% rise in value to QR74.54mn and 5% in deals to 1,289.
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