Severe selling, especially in the mid and microcap segments, led Qatar Stock Exchange plunge 282 points in its key index and QR18bn in capitalisation this week which saw the US Fed maintain status quo on its interest rates.
An across-the-board selling – particularly in the real estate, telecom, insurance and transport counters – dragged the Qatari equity market below 8,900 levels this week which saw robust earnings expansion especially in the industrials, consumer goods, banking and transport sectors help Qatar Inc better net profitability year-on-year in the first quarter of this year.
Four of the five days witnessed profit booking pressure in the bourse this week which witnessed Milaha launch a direct container feeder service between Qatar and Iraq.
About 84% of the traded constituents were in the red this week which saw Qatar's first purchasing managers' index show continued improvement in the business conditions in the non-oil private sector in April this year.
Foreign funds were seen net profit takers as the 20-stock Qatar Index plummeted 3.11% this week which saw no trading of sovereign bonds and treasury bills.
Notwithstanding the overall bearish overhang, local retail investors were increasingly bullish and there was substantially weakened net selling pressure from domestic funds this week.
However, on a year-to-date basis, the bourse's benchmark showed more than 3% increase mainly due to robust demand for consumer goods, industrials and banking sectors, whose indices were up in double digits. Large and midcap scrips also performed well on a yearly basis.
The market witnessed a total volume of 0.4mn QATR (Masraf Al Rayan sponsored exchange traded fund or ETF) valued at QR9.53mn trade across 126 transactions and as many as 0.04mn QETF (Doha Bank sponsored ETF) valued at QR3.91mn change hands across 50 deals this week.
The Total Return Index shed 3.11%, All Share Index 4.19% and Al Rayan Islamic Index (Price) 3.85% this week.
The realty index plummeted 12.97%, telecom (9.55%), insurance (4.26%), transport (4.13%), banks and financial services (2.34%), industrials (1.09%) and consumer goods (1.08%) this week which saw Masraf Al Rayan dominated trading ring in volumes and value.
Major shakers included Ezdan, Ooredoo, Milaha, Barwa and Mazaya Qatar; whereas major gainers included Industries Qatar, Islamic Holding Group, Woqod, Qatar General Insurance and Reinsurance and Qatari German Company for Medical Devices this week which saw industrials and telecom sectors together accounted for more than 57% of total trade volumes.
The industrials sector accounted for 39% of the total trading volume, telecom (18%), banks and financial services (15%), realty (13%), transport (11%), consumer goods (4%) and insurance (1%) this week.
The industrials sector’s share in total trade turnover was 35%, banks and financial sector (24%), consumer goods (14%), telecom (11%), transport (8%), real estate (6%) and insurance (1%) this week.
Non-Qatari institutions turned net sellers to the tune of QR24.29% compared with net buyers of QR25.97mn a week ago.
However, local retail investors’ net buying strengthened substantially to QR27.86mn against QR9.32mn the previous week.
Non-Qatari individuals were net buyers to the extent of QR1.11mn compared with net sellers of QR2.93mn the week ended April 26.
Domestic funds’ net profit booking declined considerably to QR4.69mn against QR32.5mn a week ago.
Total trade volume fell 9% to 51.16mn shares, value by 7% to QR1.23bn and transactions by 6% to 18,243.
The insurance sector reported 56% plunge in trade volume to 0.54mn equities, 51% in value to QR18.29mn and 25% in deals to 533.
The telecom sector’s trade volume plummeted 32% to 9.33mn stocks and value by 18% to QR139.99mn, whereas transactions were up 3% to 2,269.
The banks and financial services sector saw 30% shrinkage in trade volume to 7.58mn shares, 17% in value to QR293.06mn and 10% in deals to 4,721.
The consumer goods sector’s trade volume tanked 24% to 1.79mn equities, value by 9% to QR176.65mn and transactions by 7% to 2,201.
There was less than 1% fall in the real estate sector’s trade volume to 6.41mn stocks, 19% in value to QR79.16mn and 1% in deals to 2,295.
However, the market witnessed 60% surge in the transport sector’s trade volume to 5.63mn shares, 28% in value to QR95.98mn and 4% in transactions to 1,921.
The industrials sector’s trade volume expanded 11% to 19.88mn equities and value by 6% to QR429.83mn, while deals were down 6% to 4,303.