Attractive valuations and global index compiler FTSE Russell’s regrouping of certain constituents helped the Qatar Stock Exchange gain 250 points in its key barometer and about QR13bn capitalisation last week.
Foreign institutions turned bullish as the 20-stock Qatar Index soared 2.51% this week which saw Nakilat disclose a plan to establish a 60:40 joint-venture company with McDermott to provide offshore and onshore fabrication services in Qatar.
Consumer goods and industrials counters witnessed higher-than-average demand last week which saw FTSE Russell include Mesaieed Petrochemical Holding under its large cap category, while Woqod (Qatar Fuel) and Qatar Insurance have found their places within midcap segments.
Domestic funds were increasingly net buyers this week which witnessed the Qatar Financial Center disclose that it is targeting 10 listings on the domestic bourse as it aims 5% of capitalisation to be contributed by its authorised firms by 2022.
More than 63% of the traded constituents extended gains to investors this week which saw Qatar embark on New Emerging Belt Initiative –a new economic corridor focusing in Kuwait, Oman, Pakistan, India and Turkey with a combined economy of more than $2.1tn.
Major gainers included Woqod, Industries Qatar, Mesaieed Petrochemical Holding, Qatari Investors Group, QNB, Masraf Al Rayan, Qatari German Company for Medical Devices, Qatar Electricity and Water, Barwa, Vodafone Qatar and Milaha this week which saw Nakilat report a more than 5% year-on-year jump in net profit to QR892mn in 2018.
Nevertheless, Qatar National Cement, Gulf International Services, Nakilat, Ezdan, United Development Company, Qatar Industrial Manufacturing, Alijarah Holding and Dlala were among the losers this week which saw faster expansion in exports, especially to Asia, and weakened imports, helped Qatar register a 42% year-on-year growth in trade surplus to QR50.86bn during the fourth quarter of 2018.
Islamic stocks were seen gaining faster than the other indices in the market this week which saw higher extraction of hydrocarbons and robust growth in the production of beverages and refined petroleum products led Qatar's industrial production record a marginal 0.3% year-on-year growth in December 2018.
The Total Return Index surged 2.89%, All Share Index by 2.14% and Al Rayan Islamic Index (Price) by 3.31% this week which witnessed no trading of treasury bills and sovereign bonds.
The consumer goods index shot up 5.55%, industrials (5.07%), banks and financial services (2.03%), telecom (0.49%) and realty (0.03%); while transport and insurance declined 1.65% and 1% this week which saw industrials, banking and real estate segments together account for more than 84% of total trade volume.
The industrials sector constituted 44% of the total volume, banks and financial services (21%), realty (19%), telecom and consumer goods (5% each), and transport and insurance (3% each) this week which saw QSE recast its board under the chairmanship of HE Ali bin Ahmed al-Kuwari, Minister of Commerce and Industry.
In terms of value, banks and financial sector’s share was 35%, industrials (29%), consumer goods (19%), real estate (10%), insurance and telecom (3% each), and transport (2%) this week.
As many as 1,630 Masraf Al Rayan bank sponsored exchange traded fund QATR valued at QR0.04mn traded across five transactions and a total of 11,641 Doha Bank sponsored QETF worth QR1.17mn changed hands across 18 deals this week.
Foreign institutions turned net buyers to the tune of QR300.02mn against net sellers of QR7.11mn a week ago.
Domestic funds’ net buying increased significantly to QR76.22mn compared to QR40.43mn the previous week.
However, Qataris net selling grew considerably to QR339.18mn against QR32.68mn the week ended February 14.
Non-Qatari individuals’ net profit booking strengthened noticeably to QR37.06mn compared to QR0.63mn a week ago.
Total trade volume rose 79% to 52.56mn shares, value by 80% to QR1.62bn and transactions by 42% to 31,316 this week.
The consumer goods sector’s trade volume almost tripled to 2.69mn equities and value more than quadrupled to QR308.47mn and deals more than doubled to 2,548.
The insurance sector’s trade volume more than doubled to 1.36mn stocks and value also more than doubled to QR44.06mn on almost doubled transactions to 1,360.
The industrials sector’s trade volume more than doubled to 23.08mn shares, value soared 87% to QR462.03n and deals by 52% 12,736.
The real estate sector’s trade volume more than doubled to 10.17mn equities and value almost doubled to QR161.73mn on 79% surge in transactions to 6,170.
The banks and financial sector saw 85% expansion in trade volume to 10.99mn stocks, 47% in value to QR563.8mn and 6% in deals to 5,845.
The transport sector’s trade volume grew 45% to 1.46mn shares and value by 15% to QR32.19mn, whereas transactions were down 2% to 782.
However, there was 50% plunge in the telecom sector’s trade volume to 2.82mn equities, 30% in value to QR45.94mn and 13% in deals to 1,875.