QSE nears 2-year high on foreign funds' buying spree
January 10 2019 09:35 PM

Foreign funds’ continued buying spree on Thursday gave a more than 123-point thrust to the Qatar Stock Exchange and placed its key barometer above 10,650 points, a near two-year high.

The industrials, consumer goods and banking counters witnessed higher-than-average buying interests, helping the 20-stock Qatar Index to gain 1.17% to 10,658.22 points.

Hordes of factors such as strengthened oil prices and expansionary budgetary policies have acted favourably in the market, where valuations still remain attractive, sources said, hinting the benchmark has the potential to hit above 11,000 points in short-to-medium term.

Gulf individuals were seen marginally bullish in the market, whose sensitive index has settled 3.49% year-to-date.

Market capitalisation expanded more than QR6bn, or 1.02%, to QR611.46bn mainly owing to large and midcap segments.

Islamic equities were seen gaining slower than the main index in the market, where domestic funds turned bearish and there was increased selling pressure from local retail investors.

Trade turnover grew amidst lower volumes in the bourse, where the industrials, banking and real estate sectors together accounted for about 83% of the total volume.

The Total Return Index rose 1.17% to 18,778.6 points, the All Share Index by 0.93% to 3,216.6 points and the Al Rayan Islamic Index (Price) by 0.98% to 2,491.09 points.

The industrials index soared 1.65%, followed by consumer goods (1.32%), banks and financial services (1.02%), insurance (0.53%) and telecom (0.43%); whereas insurance and transport declined 0.51% and 0.13% respectively.

About 56% of the traded constituents were in the positive trajectory with major gainers being Industries Qatar, Mesaieed Petrochemical Holding, Qatari Investors Group, Commercial Bank, Qatar Islamic Bank, Doha Bank, Qatar Oman Investment, Qatari German Company for Medical Devices and Doha Insurance; even as Al Khaliji, Qatar First Bank, Widam Food, Aamal Company, Qatar General and Reinsurance and Milaha were among the losers.

Non-Qatari institutions’ net buying increased considerably to QR76.71mn compared to QR39.64mn on January 9.

Gulf individuals turned net buyers to the tune of QR0.24mn against net sellers of QR0.27mn on Wednesday.

However, local individuals’ net selling strengthened significantly to QR61.61mn compared to QR47.12mn the previous day.

Gulf institutions’ net profit-booking expanded substantially to QR11.52mn against QR5.71mn on January 9.

Non-Qatari individuals’ net selling grew perceptibly to QR2.99mn compared to QR1.09mn on Wednesday.

Domestic funds turned net profit-takers to the extent of QR0.84mn against net buyers of QR14.48mn the previous day.

Total trade volume fell 25% to 10.88mn shares, while value grew 2% to QR348.07mn despite 15% lower transactions at 7,344.

The transport sector’s trade volume plummeted 61% to 0.31mn equities, value by 52% to QR8.83mn and deals by 47% to 328.

The telecom sector reported a 55% plunge in trade volume to 0.47mn stocks, 25% in value to QR13.34mn and 22% in transactions to 461.

The consumer goods sector’s trade volume tanked 53% to 0.44mn shares, value by 1% to QR40.52mn and deals by 14% to 547.

The real estate sector saw a 33% shrinkage in trade volume to 2.25mn equities, 30% in value to QR40.12mn and 31% in transactions to 987.

The industrials sector’s trade volume shrank 27% to 3.51mn stocks, while value expanded 12% to QR97.41mn but on a 13% slump in deals to 2,772.

However, there was a 62% surge in the insurance sector’s trade volume to 0.67mn shares, 67% in value to QR24.01mn and 18% in transactions to 361.

The banks and financial services sector’s trade volume was up 1% to 3.24mn equities, value by 19% to QR123.83mn and deals by 1% to 1,888.

In the debt market, there was no trading of treasury bills and sovereign bonds.

The industrials, consumer goods and banking counters witnessed higher-than-average buying interests on Thursday, helping the 20-stock Qatar Index to gain 1.17% to 10,658.22 points.

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