The Qatar Stock Exchange scaled new highs of above 9,500 levels and capitalisation in excess of QR514bn this week on robust earnings outlook, and hence dividend expectations, as well as rising global oil prices.
Domestic institutions’ strengthened buying interests led the 20-stock Qatar Index gain 2.82% this week which saw Qatar’s Economy and Commerce Minister tell World Economic Forum in Davos that the country’s economy performed better than expected last year.
Kamco analysts had forecasted that "a jump over 9,250 points will open the space for additional strength to take place to 9,600 points and 10,000 points."
Transport, industrials and consumer goods counters witnessed higher than average demand this week which saw QIIB report net profit of QR832mn in 2017.
Islamic stocks were, however, seen underperforming the main market this week which saw Ezdan Holding report QR1.7bn net profit in 2017.
Buying interests were seen more pronounced in mid, large and small cap segments this week which saw Doha Bank report QR1.11bn net profit in 2017.
Non-Qatari individuals’ weakened net profit booking also helped maintain positive rally this week which witnessed Al Khaliji post QR551mn net profit in 2017.
However, local retail investors were increasingly net sellers and foreign funds’ net buying weakened this week which saw Capital Intelligence, the international credit rating agency, affirm Qatar’s long-term foreign and local currency ratings of ‘AA-’ and short-term foreign and local currency ratings of ‘A1+’.
The banking, real estate and industrials counters together accounted for about 83% of total trading volume this week which saw Milaha acquire its largest container vessel to date, Majd, a 3,768 TEU (twenty-foot equivalent unit) vessel.
The banks and financial services sector accounted for 49% of the total volume, realty (17%), industrials (16%), telecom (7%), consumer goods (6%), transport (4%) and insurance (1%) this week which saw Gulf warehousing company and Al Asmakh Real Estate Development sign a management pact that will bring the latter’s logistics park under the management of Gulf Warehousing for the 22-year period between 2018–40.
The banks and financial services’ share in total trade turnover was 45%, consumer goods (16%), industrials (15%), real estate (12%), telecom (6%), transport (4%) and insurance (2%) this week which saw Aamal Company purchase real estate assets worth QR180mn from its related entities.
About 58% of the scrips extended gains with major movers being Milaha, Nakilat, QNB, Qatar Islamic Bank, Doha Bank, QIIB, Industries Qatar, Gulf International Services, Qatar Electricity and Water, Mesaieed Petrochemical Holding, Barwa, United Development Company and Woqod this week.
Nevertheless, Islamic Holding Group, Alijarah Holding, Qatar Oman Investment, Medicare Group, Qatari Investors Group, Qatar Insurance, Ezdan, Vodafone Qatar and Gulf Warehousing were among the losers this week which saw as many as 66,200 sovereign bonds valued at QR654.69mn trade across three deals.
Domestic institutions’ net buying increased considerably to QR114.65mn compared to QR48.19mn the previous week.
Non-Qatari individuals’ net selling weakened influentially to QR1.66mn against QR28.35mn a week ago.
However, local retail investors’ net profit booking strengthened substantially to QR126.27mn compared to QR55.93mn the week ended January 18.
Non-Qatari funds’ net buying declined perceptibly to QR13.28mn against QR36.26mn the previous week.
Total trade volume fell 16% to 60.2mn shares, value by 3% to QR1.51bn and transactions by 9% to 21,887.
There was 42% plunge in the industrials sector’s trade volume to 9.7mn equities, 29% in value to QR222.37mn and 25% in deals to 3,946.
The insurance sector’s trade volume plummeted 29% to 0.65mn stocks, value by 2% to QR34.8mn and transactions by 10% to 589.
The telecom sector reported 24% shrinkage in trade volume to 4.32mn shares, 17% in value to QR83.76mn and 21% in deals to 1,599.
The banks and financial services sector’s trade volume tanked 11% to 29.59mn equities, value by 5% to QR681.72mn and transactions by 10% to 8,010.
The transport sector’s trade volume was down 2% to 2.13mn stocks, while value gained 9% to QR57.27mn despite 12% lower deals to 1,083.
However, the market witnessed 7% rise in the real estate sector’s trade to 10.47mn shares and 15% in value to QR183.57mn but on less than 1% fall in transactions to 3,349.
The consumer goods sector’s trade volume gained 5% to 3.34mn equities, value by 42% to QR245.13mn and deals by 25% to 3,311.
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