The extension of bank guarantees for the private sector to one year has brightened the prospects in the Qatar Stock Exchange (QSE), which soared 137 points this week, ahead of Eid holidays.
The domestic and Gulf funds were increasingly net buyers this week, which saw the government include contracting and construction sectors under the beneficiaries for the National Response Guarantees Programme, which provides guarantees to local banks by the Qatar Development Bank.
Foreign and local individuals were increasingly net buyers this week, which saw Sheikh Hamad bin Mohamed al-Thani, senior vice president (Investment and Treasury), Qatar Insurance Company, view that the QSE-listed firms have strong capital and sound business module to support them in mitigating the impact of the Covid-19 pandemic.
Four of the five days witnessed strong buying interests this week, which saw Aventicum Capital Management, a joint venture of the Qatar Investment Authority and Credit Suisse, “decidedly optimistic” on the QSE in the long-term as the market has been built on a strong base of profitable companies.
Notwithstanding the increased net profit booking pressure from foreign funds, the 20-stock Qatar Index settled 1.58% higher this week which saw Thaddeus Malesa, Senior Adviser, Economics and Research of the Financial Sector Office at the QFC highlight certain "bright spots" such as information and communication that are "impervious" to coronavirus.
The banking and industrials counters witnessed higher than average demand this week which saw Capital Intelligence, an international rating agency, affirm the long-term and short-term foreign currency rating of QNB at ‘AA-’ and ‘A1+’, respectively.
The Total Return Index grew 1.58%, Al Rayan Islamic Index by 1.56% and All Share Index by 1.85% this week this which saw as many as 2.09mn Masraf Al Rayan sponsored exchange traded fund QATR valued at QR4.28mn changed hands across 84 transactions.
Market capitalisation registered more than QR9bn or 1.83% expansion to QR504.4bn mainly on large and small cap segments this week which saw a total of 1,730 Doha Bank-sponsored QETF worth QR15,056 traded across three deals.
The banks and financial services index soared 2.35%, industrials (2.24%), realty (1.1%), insurance (0.66%), consumer goods and services (0.57%) and transport (0.04%); whereas telecom declined 0.44% this week which saw Aamal Company chief executive and managing director Sheikh Mohamed bin Faisal al-Thani say that it has fast tracked its "mobile" pharmacies and mobile app 'Rimads' for home delivery of medicines as part of measures to complement the government’s efforts to contain the spread of the pandemic.
More than 62% of the traded constituents extended gains with major movers being QNB, Qatar Islamic Bank, Doha Bank, Masraf Al Rayan, al khaliji, Qatar First Bank, Dlala, Islamic Holding Group, Industries Qatar, Aamal Company, Gulf International Services, Qatar National Cement, Baladna, Qatar Insurance, Mazaya Qatar, Gulf Warehousing and Milaha this week which saw Nakilat take delivery of a newly built liquefied natural gas carrier, “Global Energy”, which will be commercially and technically managed in-house.
Nevertheless, major losers included Commercial Bank, Ezdan, Nakilat, Qatar Oman Investment, Qatar Industrial Manufacturing, Qatar German Company for Medical Devices and Vodafone Qatar this week which saw Qatar’s industrial production expand this March.
Trade turnover grew amidst marginally lower volumes this week which saw industrials sector account for 23% of the total trading volume, consumer goods and services (18%), banks and financial services (17%), real estate and insurance (14% each), transport (11%) and telecom (2%) this week.
In value, the banks and financial sector’s share was 40%, industrials (16%), insurance, transport and consumer goods and services (12% each), realty (6%) and telecom (2%) this week.
Domestic institutions’ net buying increased influentially to QR174.49mn against QR99.99mn the week ended May 14.
The Gulf institutions’ net buying grew substantially to QR34.26mn compared to QR7.03mn the previous week.
Local retail investors’ net buying strengthened considerably to QR8.22mn against QR3.28mn a week ago.
Foreign individuals’ net buying enhanced significantly to QR7.54mn compared to QR0.12mn the week ended May 14.
However, foreign institutions’ net selling grew substantially to QR213.54mn against QR109.68mn the previous week.
The Gulf individuals’ net profit booking rose noticeably to QR6.17mn compared to QR1.72mn a week ago.
The Arab institutions’ net selling shot up perceptibly to QR5.78mn against QR3.59mn the week ended May 14.
Arab individuals’ net buying weakened markedly to QR0.91mn compared to QR4.37mn the previous week.
Total trading volume fell less than 1% to 967.55mn shares, while value grew 46% to QR2.28bn and transactions by 17% to 52,911.
The insurance sector’s trade volume almost tripled to 139.53mn equities and value also almost tripled to QR280.96mn on 38% increase in deals to 5,624.
The banks and financial services sector’s trade volume more than doubled to 168.61mn stocks and value also more than doubled to QR912.43mn on 42% jump in transactions to 16,720.
The transport sector saw 54% surge in trade volume to 110.42mn shares, 47% in value to 269.35mn and 54% in deals to 7,133.
The consumer goods sector’s trade volume soared 29% to 172.03mn equities, value by 21% to QR262.99mn and transactions by 39% to 7,941.
However, there was 63% plunge in the real estate sector’s trade volume to 135.86mn stocks, 61% in value to QR143.37mn and 40% in deals to 5,307.
The telecom sector’s trade volume plummeted 42% to 16.33mn shares, value by 10% to QR48.44mn and transactions by 20% to 1,661.
The market witnessed 10% shrinkage in the industrials sector’s trade volume to 224.77mn equities but on 10% expansion in value to QR366.3mn and 2% in deals to 8,525.