Foreign institutions’ substantially stronger buying interests lift sentiments

Foreign institutions’ substantially stronger buying interests lifted the sentiments in the Qatar Stock Exchange, which, however, could sustain the near 10,400 levels it touched intra-week.
Telecom, real estate, consumer goods and banking counters witnessed higher-than-average buying interests this week which saw Kamco, a Kuwait-based economic think-tank view that Qatar possess a cushion of around $23.8 per barrel to balance its 2018 fiscal budget currently.
Notwithstanding higher net selling pressure from local retail investors and domestic funds, the 20-stock Qatar Index gained 114 points or 1.12% this week which saw Qatar Petroleum completes the allotment of the Qatar Aluminium Manufacturing Company's (Qamco) initial public offering.
Islamic stocks were seen gaining slower than the other indices on the market, which showed more than 21% gains year-to-date.
Non-Qatari individuals turned bearish this week which saw no trading of sovereign bonds and treasury bills.
Market capitalisation expanded more than QR7bn or 1.25% to QR583.82bn this week mainly on account of large and small cap equities.
Large and midcap segments saw 32.82% and 15.5% gains; whereas small and microcaps declined 11.43% and 5.63% respectively.
The market witnessed a total volume of 4,076 QATR (Masraf Al Rayan sponsored exchange traded fund or ETF) valued at QR0.1mn trade across 13 transactions and as many as 5,110 QETF (Doha Bank sponsored ETF) valued at QR0.52mn change hands across 12 deals this week which saw Qatar’s moves to introduce a mandatory “rules-based” framework for investor relations from October next year.
The Total Return Index gained 1.12%, Al Rayan Islamic Index (Price) by 0.85% and All Share Index by 1.31% this week which saw Qatar's consumer prices index inflation decline 0.25% year-on-year in October despite costlier education, transport, health, clothing and furniture.
The telecom index soared 4.88%, realty (3.11%), consumer goods (1.54%), banks and financial services (1.23%), transport (0.17%) and industrials (0.17%); while insurance declined 1.05% this week which saw the Institute of Chartered Accountants of England and Wales view that fiscal reforms, new economic visions and rising oil prices are expected to take the Gulf Cooperation Council (GCC) economies into a recovery path.
About 58% of the stocks extended gains with major movers being Ezdan, Vodafone Qatar, Ooredoo, Medicare Group, Masraf Al Rayan, QNB, Doha Bank and Industries Qatar; even as Islamic Holding Group, Qatari General and Reinsurance, Gulf International Services, Salam International Investment and Aamal Company were among the losers this week which saw banking, real estate and telecom stocks constitute more than 77% of the total trading volume.
The banks and financial services constituted 40% of the total volume, realty (21%), telecom (16%), industrials (10%), consumer goods (6%), transport (4%) and insurance (2%); while in terms of trade turnover, banks and financial sector’s share was 47%, consumer goods (17%), real estate (12%), industrials (10%), telecom (9%), transport (3%) and insurance (2%) this week which saw Barwa and Masraf Al Rayan dominate the trading ring in volume and value.
Foreign institutions’ net buying increased significantly to QR209.64mn compared to QR98.97mn the week ended November 15.
However, local retail investors’ net profit booking rose substantially to QR153.67mn against QR95.45mn a week ago.
Domestic funds’ net selling also strengthened considerably to QR39.25mn compared to QR24.13mn the previous week.
Non-Qatari individuals were net sellers to the tune of QR16.72mn against net buyers of QR20.73mn the week ended November 15.
Total trade volume fell 6% to 25.41mn shares and value by 8% to QR1.08bn, while transactions were up 2% to 20,264 this week.
The transport sector’s trade volume plummeted 57% to 1.08mn equities, value by 47% to QR27.6mn and deals by 5% to 897.
The consumer goods sector reported 40% plunge in trade volume to 1.53mn stocks, 50% in value to QR187.46mn and 38% in transactions to 2,556.
The real estate sector’s trade volume tanked 21% to 5.35mn shares, value by 26% 11% to QR126.96mn and deals by 5% to 3,544.
The market witnessed 17% shrinkage in the industrials sector’s trade volume to 2.51mn equities and 30% in value to QR110.13mn but on 9% jump in transactions to 3,297.
The insurance sector’s trade volume was down 14% to 0.61mn stocks, value by 3% to QR19.29mn and deals by 7% to 437.
However, there was 68% surge in the telecom sector’s trade volume to 4.08mn shares to more than double value to QR101.97mn on 47% increase in transactions to 1,935.
The banks and financial sector’s trade volume grew 14% to 10.25mn equities, value by 44% to QR505.02mn and deals by 22% to 7,598.