The Qatar Stock Exchange opened the week and 2019 on a stronger note with a 63 points gain, mainly on increased buying interests from foreign funds.
Insurance, real estate, consumer goods and telecom counters witnessed higher than average trading this week which saw Qatar Petroleum complete the distribution of the first tranche of free incentive shares to the eligible shareholders of Mesaieed Petrochemical Holding Company (MPHC).
As much as 60% of the traded stocks extended gains with major movers being Qatar National Cement, Aamal Company, Qatar General and Reinsurance, Ezdan, Ooredoo, Milaha, MPHHC, Qatar Insurance, Commercial Bank, Doha bank, Woqod and Widam Food this week, which saw Qatar's economy displayed robust performance during the third quarter of 2018 with the real (inflation-adjusted) growth ticking 2.2% year-on-year.
Nevertheless, Industries Qatar, Nakilat, Mazaya Qatar and Ahlibank were among the losers this week which saw Alijarah recommend increasing the foreign ownership limit 49% against the present limit of 25%.
Islamic stocks were seen gaining faster than the main index in the market, which however saw a 0.55% jump in market capitalisation to QR591.165bn this week.
A substantially weakened selling pressure from local retail investors also helped the bullish run in the week, which saw reports that Qatar’s commercial banks' brokerage businesses display a robust performance compared with that of the conventional entities during 2018.
However, domestic funds turned bearish and there was weakened buying interests of non-Qatari individuals this week which saw a robust expansion in foreign portfolio and other investments help Qatar report about 9% year-on-year growth in total overseas investments inflow during the third quarter of 2018.
The market witnessed a total volume of 690 QATR (Masraf Al Rayan sponsored exchange traded fund or ETF) valued at QR0.02mn trade across three transactions and as many as 3,160 QETF (Doha Bank sponsored ETF) valued at QR0.32mn change hands across seven deals this week which saw no trading of sovereign bonds and treasury bills.
The Total Return Index gained 0.61%, All Share Index by 0.92% and Al Rayan Islamic Index (Price) by 0.89% this week which saw a robust expansion in the extraction of hydrocarbons and stronger manufacturing sector helped Qatar's industrial producers' earnings register a double-digit growth year-on-year in November 2018.
The insurance index soared 6.75%, realty (2.4%), consumer goods (1.66%), telecom (0.89%), banks and financial services (0.27%) and industrials (0.13%); while transport was down 0.08% this week which saw industrials, real estate and banking segments together account for about 86% of total trade volume.
The industrials index constituted 52% of the total volume, real estate (19%), banks and financial services (15%), telecom (7%), transport and consumer goods (3% each) and insurance (2%); while in terms of trade turnover, industrials sector’s share was 39%, banks and financial services (29%), real estate (14%), telecom and consumer goods (6% each), and transport insurance (3% each) this week.
Foreign institutions’ net buying grew significantly to QR93.2mn compared to QR66.28mn the previous week.
Qataris net profit booking declined substantially to QR49.15mn against QR82.87mn the week ended December 27.
However, domestic funds were net sellers to the tune of QR48.69mn compared with net buyers of QR10.1mn a week ago.
Non-Qatari individuals’ net buying weakened marginally to QR5.24mn against QR6.4mn the previous week.
Total trade volume fell 45% to 30.03mn shares, value by 28% to QR663.31mn and transactions by 31% to 22,355 this week.
The industrials sector’s trade volume plummeted 57% to 15.43mn equities, value by 52% to QR256.01mn and deals by 44% to 12,978.
The insurance sector reported 52% plunge in trade volume to 0.47mn stocks, 44% in value to QR16.73mn and 31% in transactions to 404.
The banks and financial sector’s trade volume tanked 38% to 4.42mn shares, whereas value grew 6% to QR194.92mn and deals by 4% to 3,767.
The consumer goods sector saw 36% shrinkage in trade volume to 0.87mn equities, 22% in value to QR36.71mn and 21% in transactions to 932.
The transport sector’s trade volume declined 15% to 0.93mn stocks, value by 12% to QR20.47mn and deals by 19% to 959.
There was 10% fall in the real estate sector’s trade volume to 5.79mn shares, less than 1% in value to QR95.86mn and less than 1% in transactions to 2,266.
However, the telecom sector’s trade volume soared 52% to 2.08mn equities to more than double value to QR42.61mn on 37% jump in deals to 1,049.