The Qatar Stock Exchange hit a four-month low last week as its benchmark plummeted 564 points and capitalisation eroded about QR39bn on apprehensions over lackadaisical financial results of certain underlying constituents.
Also reflecting the weakened global oil prices, the bourse’s 20-stock Qatar Index plummeted 5.37% last week, which saw QNB outline its plans to expand global reach, particularly its wholesale and commercial banking, in view of robust growth expected in the Gulf, Asia and Europe regions.
An across-the-board selling, particularly in real estate and industrials, led the sensitive 20-stock Qatar Index below 10,000 levels last week which saw Qatar National Cement Company embark upon a multi-pronged strategy that aims to diversify the product portfolio through adding new products to meet the growing local demand and explore export markets.
Foreign institutions were seen net profit takers last week which witnessed Qatar’s PMI (Purchasing Managers Index) touch a six-month high in January on the commencement of operations of 40 new Qatari-owned manufacturing units, especially after blockade.
More than 89% of the traded constituents were in the red last week which saw domestic institutions net buying support getting stronger.
Major losers included Ezdan, QNB, Qatar Islamic Bank, Industries Qatar, Qatari Investors Group, Qatar National Cement, Gulf International Services, Qatar Insurance, Mazaya Qatar, Barwa, Milaha, Doha Bank, Masraf Al Rayan, Qatar First Bank, Qatari German Company for Medical Devices, Salam International Investment and Qatar Electricity and Water last week.
Islamic stocks however weakened slower than the main index in the market last week, which saw no trading of sovereign bonds.
"A dip below 10,580 points would trigger additional weaknesses to 10,200 points and may be lower to 10,000 points," Kamco had said, suggesting that medium-term and long-term investors can stay in the market as long as the index is closing above 10,000 points and 9,500 points, respectively.
The Total Return Index plunged 4.91%, All Share Index by 5.6% and Al Rayan Islamic Index (Price) by 4.6% last week which witnessed no trading of treasury bills.
The realty index plummeted 10.76%, industrials (7.58%), telecom (4.99%), banks and financial services (4.2%), insurance (2.87%), transport (1.81%) and consumer goods (1.16%) last week which saw industrials, banking and telecom segments together account for more than three-fourth of total trade volume.
The industrials sector constituted 36% of the total volume, banks and financial services (20%), telecom (19%), realty (16%), consumer goods and transport (3% each), and insurance (2%) last week.
In terms of value, banks and financial sector’s share was 43%, industrials (27%), real estate (9%), consumer goods (8%), telecom (7%), transport (3%) and insurance (2%) last week.
As many as 3,960 Masraf Al Rayan bank sponsored exchange traded fund QATR valued at QR0.1mn traded across 10 transactions and a total of 1,305 Doha Bank sponsored QETF worth QR0.13mn changed hands across four deals last week.
Foreign institutions turned net sellers to the tune of QR7.11mn compared with net buyers of QR118.25mn a week ago.
However, domestic funds’ net buying increased noticeably to QR40.43mn against QR33.04mn the week ended February 14.
Qatari individuals net selling weakened significantly to QR32.68mn compared to QR142.56mn the previous week.
Non-Qatari individuals’ net profit booking declined perceptibly to QR0.63mn against QR8.73mn a week ago.
Total trade volume fell 23% to 29.41mn shares, value by 14% to QR900.37mn and transactions by 9% to 22,024 last week.
The transport sector’s trade volume plummeted 66% to 1.01mn equities, value by 66% to QR28.03mn and deals by 34% to 794.
The consumer goods sector saw 52% plunge in trade volume to 0.92mn stocks, 36% in value to QR73.43mn and 30% in transactions to 988.
The insurance sector’s trade volume tanked 43% to 0.54mn shares, value by 46% to QR18.33mn and deals by 19% to 702.
The market witnessed 42% shrinkage in the real estate sector’s trade volume to 4.79mn equities, 41% in value to QR85.06mn and 24% in transactions to 3,452.
The banks and financial sector’s trade volume declined 30% to 5.94mn stocks, whereas value grew 12% to QR383.18mn and deals by 28% to 5,523.
There was 11% contraction in the industrials sector’s trade volume to 10.55mn shares but on 2% jump in value to QR246.88n despite 7% lower transactions at 8,400.
However, the telecom sector’s trade volume soared 40% to 5.66mn equities, while value shrank 31% to QR65.45mn and deals by 25% to 2,165.