Definitions of key terms used in technical analysis
The Qatar Stock Exchange (QSE) index fell 438.98 points, or 4.44%, during the trading week to close at 9,447.88. Market capitalisation decreased by 5.0% to QR519.5bn versus QR547.0bn at the end of the previous trading week. Of the 45 listed companies, three ended the week higher, while 39 declined and three remained unchanged. Widam Food Co (WDAM) was the best performing stock for the week with a gain of a 1.9% on 39,914 shares traded. On the other hand, Ezdan Holding Group (ERES) was the worst performing stock for the week with a decline of 15.4% on 2.9mn shares traded.
QNB Group (QNBK), Qatar Islamic Bank (QIBK) and Industries Qatar (IQCD) were the primary contributors to the weekly index loss. QNBK was the biggest contributor to the index’s weekly decrease, deleting 107.5 points from the index. QIBK was the second biggest contributor to the mentioned decrease, removing 82.4 points from the index. Moreover, IQCD shaved off 53.3 points from the index. On the other hand, there were no gainers in the index.
Trading value during the week decreased by 32.2% to QR687.8mn versus QR1.0bn in the prior week. The banks and financial services sector led the trading value during the week, accounting for 49.1% of the total. The industrial sector was the second biggest contributor to the overall trading value, accounting for 18.3% of the total. QNB Group (QNBK) was the top value traded stock during the week with total traded value of QR168.5mn.
Trading volume decreased by 40.4% to reach 22.8mn shares versus 38.2mn in the prior week. The number of transactions declined by 20.5% to reach 14,691 versus 18,470 in the prior week. The real estate sector led the trading volume, accounting for 26.8%, followed by the banks and financial services sector which accounted for 26.5% of the overall trading volume. Ezdan Holding Group (ERES) was the top volume traded stock during the week with 2.8mn shares.
Foreign institutions remained bullish with net buying of QR5.3mn versus net buying of QR147.9mn in the prior week. Qatari institutions remained bearish with net selling of QR58.7mn versus net selling of QR96.6mn in the week before. Foreign retail investors remained bearish with net selling of QR5.4mn versus net selling of QR17.7mn in the prior week. Qatari retail investors turned bullish with net buying of QR47.9mn versus net selling of QR33.5mn the week before.
Foreign institutions bought (net basis) $1.6bn worth of Qatari equities year.
The general index closed down 4.4% from the previous week on profit booking. Furthermore, correction is expected over the index. However, we believe that the index should move towards Fibonacci retracement level of 38.2%.
Candlestick chart – A candlestick chart is a price chart that displays the high, low, open, and close for a security. The ‘body’ of the chart is portion between the open and close price, while the high and low intraday movements form the ‘shadow’. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis.
Doji candlestick pattern – A Doji candlestick is formed when a security’s open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal.
