Bourse a shining spot in GCC with more than 15% year-to-date returns
September 21 2018 09:51 PM

The Qatar Stock Exchange witnessed the entire week under bearish spell but overall it is seen as the shining spot in the Gulf capital markets with more than 15% year-to-date returns in dollar and riyal terms.
Banking, consumer goods, industrials and transport sectors witnessed a robust two-digit year-to-date surge in their stock prices, thus helping the QSE pip other bourses such as Dubai and Saudi Arabia which reported 17.97% and 7.5% declines respectively. Abu Dhabi’s yearly gains was lesser than that of Doha.
The market has seen investor confidence building up locally, regionally and internationally on the back of attractive valuations, a senior official of a leading investment company said, adding the improving oil price and the government’s continued budget spending act have rather improved sentiments.
The economy started picking up after the embargo and exceeded all expectations in the first quarter of 2018, he said, referring to the government assurance that it will continue ahead with its normal spending, especially for the World Cup event in 2022.
On a weekly basis, the bourse had lost 2.55%, mainly dragged by telecom and banking counters.
Market capitalisation declined 1.91% or about QR11bn to QR543.29bn mainly owing to 2.55% decline in large cap equities. On a year-to-date basis, both large and midcap segments were seen appreciating 21.09% and 14.18% respectively.
The market witnessed a total volume of 21,155 QATR (Masraf Al Rayan sponsored exchange traded fund or ETF) valued at QR0.49mn trade across 36 transactions and as many as 4,330 QETF (Doha Bank sponsored ETF) valued at QR0.42mn change hands across 21 deals this week.
The Total Return Index shed 2.55%, All Share Index 1.6% and Al Rayan Islamic Index (Price) 2.14% this week.
Increased profit booking pressure from domestic funds was mainly instrumental in the overall bearish momentum this week which saw no trading of treasury bills and sovereign bonds.
The telecom index plunged 3.29%, banks and financial services (2.8%), industrials (1.91%), transport (0.55%) and realty (0.43%); while insurance and consumer goods gained 4.43% and 0.84% respectively this week.
More than 70% of the traded stocks were in the red this week which however saw increased buying interests of foreign funds and non-Qatari individuals turn bullish.
Major losers included Doha bank, Medicare Group, Alijarah Holding, Qatari Investors Group, Industries Qatar, QNB, Mazaya Qatar, Milaha, Vodafone Qatar, Ooredoo and Barwa; whereas Zad Holding, Qatar Insurance, Gulf International Services and Doha Insurance were among the gainers this week.
Domestic institutions’ net selling strengthened significantly to QR200mn compared to QR131.67mn the week ended September 13.
However, foreign institutions’ net buying increased considerably to QR291.16mn against QR242.93mn the previous week.
Local retail investors’ net profit booking weakened perceptibly to QR104.39mn compared to QR108.1mn a week ago.
However, non-Qatari individual investors turned net buyers to the tune of QR13.1mn against net sellers of QR3.26mn the previous week.
Total trade volume grew 36% to 37.31mn, value by 41% to QR1.35bn and transactions by 11% to 17,884 this week which saw banking and real estate sectors together constitute about 54% of volumes.
The insurance sector’s trade volume more than quadrupled to 2.53mn equities and value rose almost five-fold to QR96.39mn on more than doubled deals to 838.
The telecom sector’s trade volume almost doubled to 5.04mn stocks, value soared 42% to QR75.02mn and transactions by 24% to 1,515.
The consumer goods sector reported 80% surge in trade volume to 1.82mn shares, 76% in value to QR141.25mn and 51% in deals to 1,484.
The real estate sector’s trade volume soared 43% to 9.47mn equities to more than double value to QR265.85mn on 17% jump in transactions to 3,228.
There was 27% expansion in the industrials sector’s trade volume to 6.45mn stocks, 31% in value to QR216.35mn and 6% in deals to 4,202.
The banks and financial sector’s trade volume grew 22% to 10.56mn shares and value by 16% to QR515.43mn; while transactions were down less than 1% to 5,481.
However, the market witnessed 50% plunge in trade volume to 1.44mn equities, 49% in value to QR40.18mn and 14% in deals to 1,136.

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