Global energy price hike and the US Federal Reserve’s move to cut rates had their reflection in the Qatar Stock Exchange this week.
Foreign institutions were increasingly into buying this week which saw the key barometer touch a high of 10,540 points; a day after the world witnessed sharp increase in oil price, but fell on the subsequent day.
Domestic funds continued to be net buyers but with lesser intensity this week which saw FTSE Russell’s reclassification of certain listed constituents become effective.
Insurance and industrials counters witnessed higher than average demand, leading to a 0.48% gain in the benchmark this week which saw Qatari bourse view that FTSE Russell's reclassification of shares expected to see "significant" trading activity.
However, there was strong selling pressure from local and non-Qatari retail investors this week which saw Qatar's cost of living; based on CPI (consumer price index), rose 1.16% in August this year compared that in the previous month.
Islamic stocks were seen gaining slower than the main index this week which saw no trading of sovereign bonds and treasury bills.
Trade turnover soared amidst marginally lower volumes this week which saw as many as 21,159 Masraf Al Rayan sponsored exchange traded fund QATR worth QR0.05mn trade across 10 deals.
The Total Return Index rose 0.48%, Al Rayan Islamic Index (Price) by 0.31% and All Share Index by 0.25% this week which saw a total of 223,500 Doha Bank sponsored QETF valued at QR2.31mn change hands across 19 transactions.
Market capitalisation grew about QR5bn or 0.8% to QR583.23bn mainly on small and midcap equities this week which saw the Qatar First Bank (QFB) general assembly to go ahead with the board's proposal to reduce capital by 65%, a balance sheet adjustment that has no impact on the cash position or financial liquidity of the lender.
The insurance index soared 6.47%, industrials (2.76%), consumer goods (0.42%) and banks and financial services (0.14%); while telecom plunged 4.37%, real estate (3.1%) and transport (1.18%) this week which saw Qatar Central Bank cut interest rates, reflecting the US Fed stance.
Major gainers included Mesaieed Petrochemical Holding, Qatar Insurance, Qatar National Cement, Qatar Industrial Manufacturing, Qatar Electricity and Water, Gulf International Services, QNB, Qatar Oman Investment, Doha Insurance and Milaha; even as Ezdan, Ooredoo, Aamal Company, Nakilat, Gulf Warehousing, QIIB and QFB were among the gainers this week which saw banking, industrials and realty stocks constitute more than 81% of the trading volume.
The banks and financial services sector accounted for 34% of the trading volume, industrials (25%), real estate (22%), transport (9%), and telecom, consumer goods and insurance (3% each) this week.
In terms of value, banks and financial services accounted for 40%, industrials (24%), transport (13%), realty (8%), consumer goods (7%), telecom (6%) and insurance (3%) this week.
Non-Qatari funds’ net buying increased substantially to QR185.47mn compared to QR47.98mn the previous week.
However, local retail investors’ selling booking rose considerably to QR186.05mn against QR65.29mn a week ago.
Non-Qatari individuals’ net selling also grew noticeably to QR11.83mn compared to QR0.53mn the week ended September 12.
However, domestic funds’ net buying weakened marginally to QR12.12mn against QR17.98mn a week ago.
Total trade volume was down 1% to 638.89mn shares, while value rose 47% to QR1.94bn and transactions by 4% to 37,273.
The real estate sector reported 36% plunge in trade volume to 137.79mn equities, 8% in value to QR154.09mn and 14% in deals to 5,747.
The telecom sector’s trade volume plummeted 33% to 21.68mn stocks, value by 5% to QR108.16mn and transactions by 4% to 4,456.
The banks and financial services sector saw 6% fall in trade volume to 218.94mn shares but on 30% growth in value to QR774.65mn and 9% fall in deals to 10,981.
However, the transport sector’s trade volume soared 86% to 59.63mn equities to more than double value to QR242.43mn on 30% jump in transactions to 2,377.
There was 82% surge in the insurance sector’s trade volume to 19.3mn stocks to more than double value to QR63.03mn on 31% increase in deals to 1,554.
The consumer goods sector’s trade volume shot up 77% to 20.48mn shares and value by 33% to QR140.71mn, whereas transactions fell 1% to 2,493.
The market witnessed 46% expansion in the industrials sector’s trade volume to 1621.06mn equities to more than double value to QR456.99mn on 9% rise in deals to 9,665.