Qatar shares extend losses on across-the-board selling pressure
May 12 2019 09:00 PM

The Qatar Stock Exchange opened the week weak in the sixth straight session of losses as its key index fell below 10,000 points despite weakened net selling by foreign institutions.

An across-the-board selling – especially at the transport, real estate, telecom, insurance and banking counters – led the 20-stock Qatar Index to decline about 1% to 9,928.22 points.

A Kamco technical analysis suggests that medium-term and long-term investors can stay in the market with a stop-loss below 10,200 points and 9,700 points, respectively.

Domestic institutions’ substantially lower net buying interests and the marginally bearish outlook of local retail investors were instrumental in dampening the market, whose sensitive index is down 3.6% year-to-date.

Market capitalisation eroded about QR6bn, or 1.01%, to QR553.06bn mainly owing to mid and small cap segments.

Islamic equities were seen declining faster than the main index in the market, where Gulf funds turned net sellers.

Trade turnover and volumes were on the decline in the bourse, where the industrials sector alone accounted for about 47% of the total volume.

The Total Return Index shed 0.99% to 18,268.76 points, the All Share Index by 1.2% to 2,999.75 points and the Al Rayan Islamic Index (Price) by 1.03% to 2,263.97 points.

The transport index plummeted 2.26%, real estate (2.19%), telecom (2.12%), insurance (1.73%), banks and financial services (1.11%), consumer goods (0.51%) and industrials (0.42%).

More than 84% of the traded constituents were in the red with major losers being Nakilat, Gulf Warehousing, Ezdan, Mazaya Qatar, Al Khaleej Takaful, Qatari Investors Group, Doha Insurance, Gulf International Services, Alijarah Holding, Qatari German Company for Medical Devices, Salam International Investment, QNB, Medicare Group and Widam Food; even as Woqod alone was the gainer.

Non-Qatari individuals turned net sellers to the tune of QR5mn compared with net buyers of QR6.17mn last Thursday.

The Gulf individuals were also net sellers to the extent of QR1.38mn against net buyers of QR0.36mn the previous trading day.

Local retail investors turned net sellers to the tune of QR0.42mn compared with net buyers of QR22.71mn on May 9.

Domestic institutions’ net buying weakened significantly to QR12.49mn against QR81mn last Thursday.

However, Gulf funds turned net buyers to the extent of QR0.63mn compared with net sellers of QR3.98mn the previous day.

Non-Qatari institutions’ net profit booking declined substantially to QR6.35mn against QR101.25mn on May 9.

Total trade volume fell 21% to 7.51mn shares, value by 57% to QR119.28mn and transactions by 40% to 3,708.

The banks and financial services sector saw a 58% plunge in trade volume to 1.04mn equities, 81% increase in value to QR24.57mn and 65% in deals to 724.

The insurance sector’s trade volume plummeted 53% to 0.08mn stocks, value by 60% to QR2.38mn and transactions by 62% 61.

The market witnessed a 52% shrinkage in the transport sector’s trade volume to 0.15mn shares, 57% in value to QR3.31mn and 31% in deals to 109.

The realty sector’s trade volume tanked 32% to 1.56mn equities, value by 43% to QR17.09mn and transactions by 29% to 798.

However, there was a 73% surge in the telecom sector’s trade volume to 0.95mn stocks but on a 15% fall in value to QR9.04mn and 16% in deals to 308.

The consumer goods sector’s trade volume soared 15% to 0.23mn shares, whereas value was down 4% to QR18.09mn and transactions by 9% to 300.

The industrials sector reported a 2% rise in trade volume to 3.51mn equities, while value declined 42% to QR44.79mn and deals by 9% to 1,408.

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

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