Strong buying lifts index 1.51% as foreign institutions turn bullish
February 16 2018 08:52 PM

The Qatar Stock Exchange stood above 9,000 points for three of the four sessions this week as foreign institutions turned bullish.

Strong buying – especially in banking, insurance and industrials counters – lifted the 20-stock Qatar Index 1.51% this week which saw market heavyweight Industries Qatar (IQ) report QR3.3bn net profit in 2017.

Islamic stocks were seen gaining faster than the other indices this week which saw Mesaieed Petrochemical Holdings’ 2017 net profit at QR1.1bn.

More than 64% of the traded scrips extended gains this week, which saw Ooredoo report net profit of QR1.9bn in 2017.

Buying interests was seen more within small, mid and microcap segments this week, which saw QNB outline its international expansion strategy.

However, foreign funds and non-Qatari individuals turned bearish and there was increased net selling by local retail investors this week which saw International Monetary Fund managing director Christine Lagarde say Qatar’s robust non-oil growth is a testament to its successful diversification.

The Total Return Index soared 2.2%, Al Rayan Islamic Index by 3.17% and All Share Index by 1.91% this week which saw A M Best, a global insurance rating agency, view that the economic blockade, which is now into the ninth month, is expected to have only a “limited” impact on the credit quality of insurers in Qatar.

The banks and financial services index expanded 3.31%, insurance (2.92%), industrials (1.79%) and telecom (1.22%); whereas consumer goods declined 0.32%, real estate (0.28%) and transport (0.15%) this week which saw banking, industrials and real estate together account for more than 82% of the total trading volume.

The banks and financial services sector accounted for 48% of the total volume, industrials (19%), realty (16%), telecom (10%), consumer goods (4%), transport (2%) and insurance (1%) this week which saw a total of 42,000 sovereign bonds valued at QR416.4mn trade across three deals.

The banks and financial services’ share in total trade turnover was 46%, industrials (20%), real estate (13%), consumer goods (9%), telecom (7%), transport (3%) and insurance (2%) this week which saw no trading of treasury bills.

Major gainers included Masraf Al Rayan, al khaliji, QIIB, Doha Bank, Qatar First Bank, Alijarah Holding, IQ, Qatari Investors Group, Aamal Company, Gulf International Services, Qatar Insurance, Mazaya Qatar, Barwa, Vodafone Qatar and Gulf Warehousing this week.

Nevertheless, QNB, Mannai Corporation, Qatar Electricity and Water, Ezdan, Ooredoo, Milaha and Salam International Investment were among the losers this week.

Domestic institutions turned net buyers to the tune of QR71.78mn compared with net sellers of QR49.26mn a week ago.

However, non-Qatari funds turned net sellers to the extent of QR30.59mn against net buyers of QR49.52mn the previous week.

Local retail investors’ net selling increased considerably to QR21.28mn compared to QR2.32mn the week ended February 8.

Non-Qatari individuals turned net profit takers to the tune of QR19.99mn against net buyers of QR2.19mn a week ago.

Total trade volume fell 30% to 36.18mn shares, value by 37% to QR809.28mn and transactions by 35% to 14,439.

The consumer goods sector reported 70% plunge in trade volume to 1.49mn equities, 40% in value to QR74.12mn and 40% in deals to 1,147.

The transport sector’s trade volume plummeted 64% to 0.79mn stocks, value by 63% to QR23.28mn and transactions by 59% to 592.

The real estate sector saw 48% shrinkage in trade volume to 5.83mn shares, 47% in value to QR108.2mn and 47% in deals to 2,452.

The telecom sector’s trade volume tanked 30% to 3.75mn equities, value by 45% to QR53.82mn and transactions by 34% to 1,285.

There was 26% decline in the industrials sector’s trade volume to 6.73mn stocks, 29% in value to QR163.24mn and 28% in deals to 3,349.

The insurance sector’s trade volume shrank 21% to 0.34mn shares, value by 13% to QR15.62mn and transactions by 7% to 411.

The market witnessed 7% fall in the banks and financial services sector’s trade volume to 17.25mn equities, 33% in value to QR370.99mn and 28% in deals to 5,203.

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