Aided by strong buying support from foreign institutions, the Qatar Stock Exchange yesterday made huge gains for the fourth straight session to settle near the 9,500 level while capitalisation added another QR11bn to almost touch QR511bn.
Robust buying, especially at the industrials and banking counters, helped the 20-stock Qatar Index surge 2.04% to 9,469.93 points, seemingly on the increased presence of the US and UK funds in view of attractive valuations and reflecting the US Federal Reserve’s gradual tightening of monetary policy.
Islamic stocks were seen gaining slower than the main index and other indices in the market, whose year-to-date losses were contained at 9.26%.
Rebounding from the initial weakness, the market saw precipitous gains in the first 30 minutes, after which there was mild profit booking but only to see slower gains for the next 15 minutes. Thereafter, slow selling pressure was witnessed for the next 60 minutes. Some last minute buying interest helped the index to finally settle 190 points higher against the previous close.
Buying was greatly skewed towards large-cap equities in the bourse, which also saw lower net selling pressure from non-Qatari and Gulf individual investors.
However, local retail investors and Gulf institutions were increasingly net profit-takers and there was weakened net buying support from domestic institutions.
Market capitalisation shot up 2.2% to QR510.68bn as large, micro, mid and small cap equities gained 2.62%, 0.88, 0.57% and 0.43% respectively.
Trade turnover and volumes were on the increase in the bourse, where telecom and banking sectors together accounted for more than 70% of the total volumes.
The Total Return Index soared 2.04% to 15,880.52 points, the All Share Index by 1.91% to 2,685.62 points and the Al Rayan Islamic Index by 1.41% to 3,732.36 points.
The industrials index surged 2.57%, followed by banks and financial services (2.46%), realty (1.73%), telecom (1.23%) and insurance (1.22%); while consumer goods and transport declined 0.45% and 0.01% respectively.
More than 72% of the traded scrips extended gains with major movers being Industries Qatar, QNB, Qatar Electricity and Water, Qatar Oman Investment, Qatar Insurance, Vodafone Qatar, Commercial Bank, Qatar Islamic Bank, Qatar National Cement, Aamal Company, Gulf International Services, Ezdan, Mazaya Qatar, Ooredoo, Barwa and Nakilat.
Nevertheless, Gulf Warehousing, Milaha, Woqod, Widam Food, Salam International Investment and Qatari German Company for Medical Devices were among the losers.
Non-Qatari institutions’ net buying strengthened substantially to QR66.86mn compared to QR51.32mn on Wednesday.
Non-Qatari retail investors’ net profit-booking weakened marginally to QR8.66mn against QR8.92mn on July 12.
GCC (Gulf Cooperation Council) individuals’ net selling declined to QR2.64mn against QR3.72mn the previous day.
However, local retail investors’ net selling rose perceptibly to QR57.46mn compared to QR52.6mn on Wednesday.
GCC institutions’ net profit-booking increased influentially to QR0.91mn against QR0.33mn on July 12.
Domestic institutions’ net buying weakened significantly to QR2.9mn compared to QR14.02mn the previous day.
Total trade volumes rose 37% to 17.49mn shares, value by 5% to QR433.04mn and deals by 3% to 5,289.
The telecom sector’s trade volume more than tripled to 7.22mn equities and value more than doubled to QR72mn on a 78% increase in transactions to 665.
There was a 51% surge in the consumer goods sector’s trade volume to 0.59mn stocks, 84% in value to QR52.89mn and 25% in deals to 566.
The insurance sector’s trade volume soared 23% to 0.16mn shares, whereas value fell 11% to QR6.63mn but on a 23% increase in transactions to 133.
The banks and financial services sector saw a 20% expansion in trade volume to 5.05mn equities but on a 9% fall in value to QR175.61mn and 2% in deals to 1,976.
However, the industrials sector’s trade volume plummeted 37% to 1.93mn stocks and value by 20% to QR71.61mn, while transactions gained 12% to 968.
The transport sector reported a 21% plunge in trade volume to 0.81mn shares, 17% in value to QR18.15mn and 38% in deals to 385.
The real estate sector’s trade volume tanked 10% to 1.73mn equities, value by 15% to QR36.15mn and transactions by 12% to 596.
In the debt market, there was no trading of treasury bills and government bonds.
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