Increased selling by Gulf institutions drags QSE
March 29 2020 08:03 PM

The Qatar Stock Exchange on Sunday opened the week weak and its key index index lost more than 48 points, mainly dragged by the increased net selling by the Gulf institutions.

An across-the-board selling, particularly within telecom and real estate counters, led the 20-stock Qatar Index settle 0.57% lower at 8,431.15 points, although it touched a low of 8,360 points intraday.

The domestic institutions' bearish outlook also had its dampening effect on the bourse, whose year-to-date losses increased to 19.13%.

The Gulf equity markets is slated to remain volatile in the near term and the investors' preference will be for the defensive sectors with relatively inelastic demand for their products and services, combined with higher domestic revenue contribution, Kamco Invest had said in a report.

Market capitalisation saw about QR3bn or 0.54% decline to QR476.39bn mainly owing to microcap segments.

Islamic stocks were seen declining faster than the other indices in the market, where local, Gulf and non-Qatari individual investors had turned bullish.

Trade turnover and volumes were on the fall on the bourse, where realty, banking and industrials sectors together accounted for more than 72% of the total trading volume.

The Total Return Index shed 0.57% to 16,123.36 points, All Share Index by 0.51% to 2,623.02 points and Al Rayan Islamic Index (Price) by 0.6% to 1,793.95 points.

The telecom index tanked 2.26%, realty (1.31%), insurance (0.61%), transport (0.52%), industrials (0.43%), banks and financial services (0.4%) and consumer goods and services (0.23%).

More than 72% of the traded constituents were in the red with major losers being Ooredoo, Vodaofone Qatar, United Development Company, Ezdan, Qatar General Insurance and Reinsurance, Barwa, Qatari Investors Group, Industries Qatar, Aamal Company, Gulf International Services, Salam International Investment, Medicare Group, Doha Bank and Alijarah Holding; whereas Qatar Electricity and Water, Qatar National Cement and Mazaya Qatar were among the gainers.

The Gulf institutions’ net profit booking increased considerably to QR5.54mn compared to QR2.89mn on March 26.

Domestic funds turned net sellers to the tune of QR5.06mn against net sellers of QR29.12mn the previous trading day.

However, non-Qatari institutions turned net buyers to the extent of QR6.44mn compared with net sellers of QR5.32mn last Thursday.

Non-Qatari individual investors were also net buyers to the tune of QR2.44mn against net sellers of QR5.23mn on March 26.

The Gulf individuals turned net buyers to the extent of QR1.45mn compared with sellers of QR0.87mn the previous trading day.

Local retail investors were also net buyers to the tune of QR0.27mn against net sellers of QR14.78mn last Thursday.

Total trade volumes fell 57% to 54.73mn shares, value by 54% to QR289.16mn and transactions by 51% to 4,196.

The insurance sector's trade volume plummeted 82% to 0.37mn equities, value by 84% to QR0.73mn and deals by 76% to 51.

The real estate sector witnessed 67% plunge in trade volume to 14.15mn stocks, 49% in value to QR17.6mn and 60% in transactions to 434.

The industrials sector's trade volume tanked 65% to 12.61mn shares, value by 75% to QR15.44mn and deals by 69% to 726.

There was 55% shrinkage in the consumer goods and services sector's trade volume to 4.76mn equities, 52% in value to QR11.96mn and 50% in transactions to 341.

The banks and financial services sector's trade volume shrank 53% to 12.88 stocks, value by 55% to QR56.65mn and deals by 42% to 1,797.

The transport sector saw 9% dip in trade volume to 4.81mn shares, 9% in value to QR12.74mn and 45% in transactions to 122.

However, the telecom sector's trade volume grew 6% to 5.14mn equities, whereas value lost 24% to QR18.74mn and deals by 23% to 725.

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

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