The Gulf funds’ bearish sentiments and the weakened net buying interests of local retail investors acted as a drag on the Qatar Stock Exchange, which yesterday settled a tad above 8,200 levels.
The banking, consumer goods and industrials sectors witnessed higher than average selling pressure as the 20-stock Qatar Index settled 0.91% or 75 points lower at 8,207.24 points, reflecting the apprehensions over the prolonged shutdowns to mitigate the rising risks of global pandemic Covid-19.
The bourse, which had seen a high of 8,296 points within the first 60 minutes of the trading, saw QIIB, Zad Holding, Masraf Al Rayan, Medicare Group, Woqod and Qatar National Cement (QNC) being traded in the special market.
The Gulf and non-Qatari individual investors continued to be net buyers but with lesser intensity in the bourse, whose year-to-date losses swelled to 21.28%.
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 more than QR6bn or 1.3% erosion to QR460.54bn mainly owing to mid and microcap segments.
Islamic stocks were seen declining slower than the other indices in the market, domestic institutions turned net buyers.
Trade turnover and volumes were on the increase in the bourse, where banking, industrials and realty sectors together accounted for more than 78% of the total trading volume.
The Total Return Index shed 0.91% to 15,695.17 points, All Share Index by 1.2% to 2,545.91 points and Al Rayan Islamic Index (Price) by 0.54% to 1,760.29 points. The banking and financial services sector’s index shrank 1.71%, consumer goods (1.67%), industrials (1.41%) and insurance (0.04%); while telecom gained 1.83%, transport (1.45%) and real estate (1.26%).
More than 65% of the traded constituents were in the red with major losers being QNB, Qatar Islamic Bank, Doha Bank, Ahlibank Qatar, Dlala, Qatar Oman Investment, Alijarah Holding, Qatar First Bank, Widam Food, Salam International Investment, Mannai Corporation, Qatari Investors Group, Qatar Industrial Manufacturing, Industires Qatar, Aamal Company, QNC, Mesaieed Petrochemical Holding, Ezdan and Mazaya Qatar; whereas QIIB, al khaliji, United Development Company, Ooredoo and Nakilat were among the gainers.
The Gulf institutions were net profit takers to the tune of QR9.36mn compared with net buyers of QR1.24mn on March 30. Local retail investors’ net buying declined influentially to QR15.52mn against QR21.37mn the previous day.
Non-Qatari individual investors’ net buying also weakened noticeably to QR6.08mn compared to QR6.44mn on Monday.
The Gulf individual investors’ net buying decreased marginally to QR0.35mn against QR0.49mn on March 30. However, domestic institutions turned net buyers to the extent of QR5.94mn compared with net sellers of QR7.71mn the previous day.
Non-Qatari institutions’ net profit booking fell significantly to QR18.58mn against QR21.86mn on Monday. Total trade volumes grew 22% to 149.75mn shares, value by 19% to QR443.53mn and transactions by 7% to 11,842.
There was 75% surge in the real estate sector’s trade volume to 36.66mn equities, 45% in value to QR45.69mn and 16% in deals to 1,133.
The telecom sector’s trade volume soared 57% to 14.9mn stocks, value by 27% to QR46.18mn and transactions by 2% to 1,886. The consumer goods and services sector saw 37% expansion in trade volume to 12.44mn shares and 27% in value to QR41.23mn but on 24% decline in deals to 889. The banks and financial services sector’s trade volume shot up 29% to 43.56 equities, value by 18% to QR228.95mn and transactions by 20% to 5,061.
However, the transport sector reported 49% plunge in trade volume to 2.98mn stocks, 43% in value to QR7.31mn and 26% in deals to 262.
The insurance sector’s trade volume plummeted 21% to 2.42mn shares, value by 14% to QR5.05mn and transactions by 16% to 282.
The market witnessed 9% shrinkage in the industrials sector’s trade volume to 36.79mn equities but on 12% jump in value to QR69.13mn and 8% in deals to 2,329.
In the debt market, there was no trading of sovereign bonds and treasury bills.
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