The expansionary budget, especially the outlays for 2020, positively influenced the sentiments in the Qatar Stock Exchange, which gained more than 130 points to inch near 10,500 levels, on strong buying interests from the Gulf institutions.
An across the board buying – particularly within insurance, banking, consumer goods and real estate counters – led to a 1.29% surge in the 20-stock Qatar Index to 10,474.13 points.
The weakened net profit booking pressure from domestic funds and non-Qatari individuals also played its role in the market, which reported 1.7% gains year-to-date.
“The new projects worth QR11.5bn in 2020 appear to have brightened the prospects for the private sector in the short term. The increase in the budgeted expenditure (for infrastructure) is also positive, especially considering the market was expecting some (fiscal) stimuli,” an analyst with a brokerage house said.
Qatar on December 16 presented an expansionary 2020 general budget with a five-year high expenditure; giving more impetus to infrastructure projects.
Market capitalisation saw more than QR9bn or 1.58% increase to QR584.9bn mainly owing to large and small cap segments.
Islamic stocks were seen gaining slower than the other indices in the market, where local retail investors were increasingly net sellers.
Trade turnover and volumes were on the decline in the bourse, where banking and industrials sectors together accounted for about 58% of the total volume.
The Total Return Index gained 1.29% to 19,273.28 points, All Share Index by 1.51% to 3,111.68 points and Al Rayan Islamic Index (Price) by 0.87% to 2,336.38 points.
The insurance index soared 2.26%, banks and financial services (1.76%), consumer goods (1.38%), realty (1.38%), telecom (1.3%), industrials (1%) and transport (0.51%).
More than 64% of the stocks extended gains with major movers being QNB, Doha Bank, Industries Qatar, Aamal Company, Qatar Insurance, Qatar General Insurance and Reinsurance, United Development Company, Barwa, Ooredoo and Nakilat; even as Commercial Bank, Dlala, Mannai Corporation and Milaha were among the losers.
The Gulf institutions turned net buyers to the tune of QR13.59mn compared with net sellers of QR8.57mn last Tuesday.
Domestic funds’ net selling declined substantially to QR18.35mn against QR66.19mn the previous trading day.
Non-Qatari individuals’ net selling weakened noticeably to QR4.62mn compared to QR13.92mn on December 17.
The Gulf individuals’ net profit booking declined marginally to QR0.67mn against QR0.83mn last Tuesday.
However, local retail investors’ net selling rose considerably to QR63.13mn compared to QR49.72mn the previous trading day.
Non-Qatari institutions’ net buying eased substantially to QR73.17mn against QR139.18mn on December 17.
Total trade volumes fell 26% to 87.27mn shares, value by 44% to QR290.37mn and transactions by 5% to 7,245.
The telecom sector’s trade volume plummeted 56% to 2.86mn equities, value by 46% to QR12.93mn and deals by 13% to 490.
The banks and financial services sector saw 48% plunge in trade volume to 31.36mn stocks, 58% in value to QR151.74mn and 24% in transactions to 2,664.
The industrials sector’s trade volume tanked 32% to 18.84mn shares, value by 48% to QR39.83mn and deals by 8% to 1,567.
There was 29% shrinkage in the insurance sector’s trade volume to 1.83mn equities and 24% in value to QR5.54mn but on 8% jump in transactions to 221.
However, the transport sector’s trade volume soared 69% to 6.24mn stocks and value almost tripled to QR26.37mn on 9% growth in deals to 300.
The real estate sector reported 64% surge in trade volume to 13.64mn shares and 6% in value to QR16.79mn but on 8% in transactions to 413.
The consumer goods sector’s trade volume shot up 50% to 12.51mn equities, value by 51% to QR37.17mn and deals by 61% to 1,590.
In the debt market, there was no trading of treasury bills and sovereign bonds.