Weekly Market Report

The Qatar Stock Exchange (QSE) index gained 438.57 points, or 4.64%, during the trading week to close at 9,886.45. Market capitalisation increased by 5.2% to QR546.3bn versus QR519.5bn at the end of the previous trading week. Of the 45 listed companies, 28 ended the week higher, while 16 declined and one remained unchanged. Qatar Islamic Bank (QIBK) was the best performing stock for the week with a gain of a 12.9% on 695,263 shares traded. On the other hand, Aamal (AHCS) was the worst performing stock for the week with a decline of 3.8% on 149,672 shares traded.QNB Group (QNBK), Qatar Islamic Bank (QIBK) and Industries Qatar (IQCD) were the primary contributors to the weekly index gains. QNBK was the biggest contributor, adding 141.8 points to the index. QIBK was the second biggest contributor, adding 131.8 points to the index. Moreover, IQCD tacked on 53.4 points to the index. On the other hand, Al Meera Consumer Goods & Services Co (MERS) deleted 2.2 points from the index.Trading value during the week increased by 54.6% to QR1.1bn versus QR687.8mn in the prior week. The banks and financial services sector led the trading value during the week, accounting for 43.6% of the total. The industrial sector was the second biggest contributor to the overall trading value, accounting for 19.0% of the total value. QNB Group (QNBK) was the top value traded stock during the week with total traded value of QR208.3mn.Trading volume increased by 38.4% to reach 31.5mn shares versus 22.8mn shares in the prior week. The number of transactions increased by 25.3% to reach 18,406 versus 14,691 in the prior week. The real estate sector led the trading volume, accounting for 30.0%, followed by the banks and financial services sector, which accounted for 24.8% of the overall trading volume. Ezdan Holding Group (ERES) was the top volume traded stock during the week with 5.5mn shares.Foreign institutions remained bullish with net buying of QR192.3mn versus net buying of QR5.3mn in the prior week. Qatari institutions remained bearish with net selling of QR52.8mn versus net selling of QR58.7mn in the week before. Foreign retail investors remained bearish with net selling of QR26.2mn versus net selling of QR5.4mn in the prior week. Qatari retail investors turned bearish with net selling of QR113.2mn versus net buying of QR47.9mn the week before. Foreign institutions bought (net basis) $2.1bn worth of Qatari equities year-to-date.The general index closed up for the week at 9886.45 (up 4.64% on weekly basis); it managed to erase most of its recent corrective wave and remains above the downtrend line. The mentioned are all signs of strong recovery and momentum could continue to be positive in the medium term. The next level, which needs to be breached upwards, is the 10,000 psychological level and preferably on higher volumes; the recent volumes were not as strong as we wished them to be on such positive move. Our weekly support level is placed at 9,200 points.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.