An across-the-board buying — particularly in the insurance and real estate — lifted the Qatar Stock Exchange (QSE) above 9,100 levels and market capitalisation exceeded QR500bn this week.
Sustained stronger buying interests of foreign institutions helped the 20-stock Qatar Index surge 5.85% this week, which saw Aamal Company and its wholly-owned subsidiary, Ebn Sina Medical, enter into a distribution agreement with Turkish Company CinnaGen Ilaç.
There was a stronger demand especially for the mid and large cap stocks this week which saw Finance Minister HE Ali Sherif al-Emadi says that Qatar's Islamic lenders, which is the third largest contributor to the global growth in Shariah banking, ought to enhance its finances and work towards activating international partnerships to further cement its position in the global arena.
Islamic stocks were, however, seen underperforming the market this week which saw suggestions that Qatar needs to reform inter-bank liquidity management to study leakages from Islamic banks through inter-bank finance as part of a strategic roadmap for Shariah finance.
However, there was increased net selling by local retail investors and domestic funds and non-Qatari individuals turned bearish this week, which saw Qatar Islamic Finance Report 2017 find that Doha offers as much as $35bn opportunity for asset management industry.
The market was heavily skewed towards gainers this week which saw no trading of treasury bills but some 25,000 sovereign bonds valued at QR248.88mn trade across two transactions.
The banking, industrials and real estate counters together accounted for about 82% of total trading volume this week which saw Qatar Re, the reinsurance subsidiary of Qatar Insurance Company (QIC), receive license to operate a branch in London.
The banks and financial services sector accounted for 32% of the total volume, industrials (27%), realty (24%), telecom and transport (6% each), consumer goods (5%), and insurance (1%) this week which saw Qatar Financial Market Authority approve Morrison and Menon Chartered Accountants and Partners Qatar as external auditors and financial evaluators for the entities listed on the QSE.
The banks and financial services’ share in total trade turnover was 39%, industrials (22%), real estate (17%), consumer goods (9%), transport (8%), telecom (4%) and insurance (2%) this week which saw Aamal Company announce three major new industrial projects through Senyar Industries Qatar Holding in the areas of copper, aluminium and drums manufacturing.
Major gainers included QIC, QNB, Barwa, Ezdan, Industries Qatar, Qatari Investors Group, Aamal Company, Gulf International Services, Mesaieed Petrochemical Holding, United Development Company, Ooredoo, Vodafone Qatar, Nakilat, Milaha, Commercial Bank, QIIB, Doha Bank, Islamic Holding Group, Medicare Group and Woqod; whereas Ahli Bank, Al Khaliji, Mazaya Qatar and Gulf Warehousing were among the losers this week.
Non-Qatari funds’ net buying strengthened influentially to QR144.08mn against QR10.31mn the week ended January 4.
However, local retail investors’ net selling increased substantially to QR76.16mn compared to QR3.98mn a week ago.
Domestic institutions’ net profit booking also increased considerably to QR59.07mn against QR17.41mn the previous week.
Non-Qatari individual investors turned net sellers to the tune of QR9.01mn compared with net buyers of QR11.09mn the week January 4.
Total trade volume rose 68% to 62.62mn shares, value by 76% to QR1.53bn and deals by 65% to 25,698.
The industrials sector’s trade volume more than doubled to 16.62mn equities and value also more than doubled to QR331.16mn on 69% increase in transactions to 5,906.
The market witnessed 77% surge in the transport sector’s trade volume to 3.93mn stocks to more than double value to QR117.54mn on 55% jump in deals to 1,946.
The telecom sector’s trade volume shot up 71% to 3.82mn shares, value by 10% to QR55.35mn and transactions by 11% to 1,500.
The banks and financial services sector saw 69% expansion in trade volume to 19.88mn equities, 80% in value to QR594.54mn and 85% in deals to 8,574.
The consumer goods sector’s trade volume gained 43% to 2.99mn stocks, value by 36% to QR142.93mn and transactions by 36% to 2,385.
There was 37% increase in the real estate sector’s trade volume to 14.79mn shares, 62% in value to QR260.54mn and 69% in deals to 4,799.
However, the insurance sector’s trade volume plummeted 40% to 0.58mn equities, while value grew 6% to QR24.23mn on more than doubled transactions to 588.