Buoyed by strong foreign inflows, Qatar Stock Exchange (QSE) on Wednesday inched near 10,000 points, thus breaking the pre-blockade levels by wide margin, and capitalisation reached QR550bn.
Robust buying – especially in realty, insurance and banking – led the 20-stock Qatar Index gain for the fourth straight session by a huge 1.54% or 151 points to 9,976.51 points.
The index broke the levels achieved on June 4, 2017 of 9,923.6 (pre-blockade levels).
QSE chief executive Rashid bin Ali al-Mansoori said the positive performance reflects the strong fundamentals of Qatar’s economy and the investment attractiveness of the bourse and its listed companies.
The index has delivered 17.05% returns since the beginning of the year until the close of Wednesday’s trading session making it the best performing market across emerging and developed markets globally, a QSE spokesman said, adding in 2018 the market has seen $1.45bn in foreign net inflows demonstrating confidence in Qatar.
The spokesman said QSE has proven its ability to overcome the challenges of the economic blockade, which brought the best out of Qatar’s capital market, and performance has exceeded expectations with positive results on all levels.
Masraf Al Rayan sponsored exchange traded fund QATR saw 0.32% gains, while Doha Bank sponsored QETF fell 0.21%.
The Islamic equities were seen underperforming other indices in the market, which however saw local and non-Qatari retail investors’ net selling weaken.
Trade turnover and volumes were on the decline in the bourse, where banking and real estate sectors together accounted for about 65% of the total volume.
The average daily traded value on QSE has recorded significant increase since the beginning of the year to reach QR350mn during January-July 2018 against QR328mn in the year-ago period.
The Total Return Index rose 1.54% to 17,577.5 points, All Share Index by 2.05% to 2,906.21 points and Al Rayan Islamic Index (Price) by 1.13% to 2,405.31 points.
The realty index soared 6.13%, insurance (2.32%), banks and financial services (2.2%), industrials (0.86%) and consumer goods (0.02%); while transport and telecom declined 0.08% and 0.07% respectively.
More than 63% of the traded stocks extended gains with major movers being Ezdan, Barwa, Commercial Bank, QNB, Qatar Islamic Bank, QIIB, Doha Bank, Qatar Insurance and Qatar Electricity and Water; whereas Zad Holding, Dlala Holding, Milaha, Ooredoo and Mazaya were among the losers.
Local individual investors’ net selling declined considerably to QR21.57mn compared to QR54.79mn on July 31.
Non-Qatari individuals’ net selling also weakened significantly to QR9.37mn against QR12.43mn on Tuesday.
Domestic institutions’ net profit booking shrank marginally to QR31.15mn compared to QR31.2mn the previous day.
However, the Gulf individual investors turned net sellers to the tune of QR2.26mn against net buyers of QR0.36mn on July 31.
The Gulf institutions’ net profit booking grew perceptibly to QR3.72mn compared to QR3.48mn on Tuesday.
Non-Qatari funds’ net buying declined influentially to QR68.04mn against QR101.57mn the previous day.
Total trade volume fell 35% to 6.64mn shares, value by 34% to QR238.33mn and transactions by 23% to 3,827.
The transport sector’s trade volume plummeted 79% to 0.24mn equities, value by 73% to QR6.43mn and deals by 55% to 188.
There was 56% plunge in the telecom sector’s trade volume to 0.53mn stocks, 50% in value to QR9.8mn and 39% in transactions to 263.
The banks and financial services sector’s trade volume tanked 45% to 2.16mn shares, value by 36% to QR119.98mn and deals by 35% to 1,268.
The industrials sector reported 44% shrinkage in trade volume to 0.71mn equities, 39% in value to QR40.21mn and 24% in transactions to 784.
However, the insurance sector’s trade volume soared 85% to 0.5mn stocks, value by 87% to QR18.63mn and deals by 29% to 203.
There was 26% surge in the consumer goods sector’s trade volume to 0.34mn shares but on 47% decline in value to QR15.63mn despite 5% higher transactions at 272.
The real estate sector’s trade volume was up 5% to 2.15mn equities, value by 2% to QR27.67mn and deals by 14% to 849.
In the debt market, there was no trading of treasury bills and sovereign bonds.