Non-Qatari insitutions turn increasingly profit takers on Qatar Stock Exchange
March 27 2020 09:04 PM

The Qatar Stock Exchange closed in the negative this week, which otherwise saw the US Congress reaching an agreement on the massive $2tn stimulus package to mitigate the rising risks from the global pandemic Covid-19.
Non-Qatari institutions were increasingly net profit takers this week which saw Gulf Warehousing Company's plan to initially acquire a 76% stake in Spick and Span Cleaning Services, a limited liability entity with a capital of QR200,000.
Domestic institutions continued to be net buyers but with lesser intensity this week which saw a Kamco Invest report that found the Gulf equity markets to remain volatile in the near term and the investors' preference would be for the defensive sectors with relatively inelastic demand for the products and services, combined with higher domestic revenue contribution.
Transport and banking counters witnessed higher than average selling pressure as the 20-stock Qatar Index settled 1.14% lower this week.
Local and non-Qatari individual investors continued to be net profit takers but with lesser vigour this week which saw more than 51% of the traded constituents were in the red.
Opening the week marginally higher at 8,589 points, the market plunged the next day to a low of less than 8,300 points, after which it was on the gains for the subsequent two days but only to see profit booking on the last day to overall settle 97 points at 8,479 points.
Major losers included Milaha, QNB, Commercial Bank, Doha Bank, Ahlibank Qatar, Alijarah Holding, Islamic Holding Group, Salam International Investment, Al Meera, Industries Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Qatar Insurance, Al Khaleej Takaful, Barwa and Salam International Investment this week which saw as many as 94,954 Masraf Al Rayan sponsored exchange traded funds QATR valued at QR181,960 change hands across 23 transactions.
However, Ooredoo, Vodafone Qatar, Qatar Islamic Bank, al khaliji, Qatar First Bank, Widam Food, Mannai Corporation, Qatari Investors Group, Aamal Company, United Development Company and Ezdan were among the gainers this week which saw some 16,000 Doha Bank sponsored QETF worth QR136,950 changed hands across six deals.
Trade turnover and volumes were on the decline this week which saw five of the seven sectors reel under the profit booking pressure.
Market capitalisation saw more than QR10bn or 2.06% erosion to QR478.96bn mainly dragged by large and small cap segments this week which saw Islamic stocks seen gaining vis-a-vis declines in the other indices.
The Total Return Index shed 0.65% and All Share Index by 1.59%; while Al Rayyan Islamic Index was up 0.56% this week which saw real estate and banking sectors together constitute more than 60% of the total trading volume.
The transport index tanked 3.34%, banks and financial services (2.63%), consumer goods and services (0.65%), industrials (0.64%) and insurance (0.51%); while telecom and real estate gained 7.61% and 2.82% respectively this week.
Foreign institutions’ net profit booking increased considerably to QR145.21mn compared to QR119.03mn a week ago.
Domestic institutions’ net buying weakened significantly to QR169.16mn against QR234.54mn the previous week.
However, local retail investors' net selling decreased substantially to QR18.66mn against QR115.04mn a week ago.
Non-Qataris' net profit booking shrank influentially to QR5.15mn compared to QR50.24mn the previous week.
Total trading volume fell 39% to 521.37mn shares, value by 41% to QR1.39bn and transactions by 24% to 41,505.
The insurance sector's trade volume plummeted 72% to 7.78mn equities, value by 72% to QR15.33mn and deals by 53% to 852.
The market witnessed 46% plunge in the telecom sector’s trade volume to 22.66mn stocks, 26% in value to QR92.74mn and 23% in transactions to 3,897.
The consumer goods sector's trade volume tanked 44% to 55.07mn shares, value by 54% to QR108.25mn and deals by 37% to 3,298.
There was 40% shrinkage in the real estate sector’s trade volume to 180.6mn equities, 41% in value to QR165.68mn and 43% in transactions to 4,826.
The industrials sector’s trade volume shrank 36% to 91.35mn stocks, value by 42% to QR193.92mn and deals by 18% to 8,291.
The banks and financial services sector saw 34% decline in trade volume to 123.48mn shares, 41% in value to QR723.54mn and 18% in transactions to 18,104.
The transport sector’s trade volume was down 23% to 30.44mn equities, whereas value rose 2% to QR92.78mn and deals by 19% to 2,237.

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