Attractive valuations and the continued positive sentiments on the consolidation wave in the domestic banking sector led the Qatar Stock Exchange (QSE) witness its key index barometer to surpass 9,300 levels and capitalisation gain about QR10bn this week.
Local, Arab and foreign retail investors were seen bullish as the bourse’s main barometer 20-stock Qatar Index gained 1.13% this week which saw the global credit rating agency Moody’s view that the proposed merger between Masraf Al Rayan and Al Khaliji will not only support profitability but also enlarge Islamic franchise and market share as well as give the required scale to support the retail banking and contain funding costs.
More than 57% of the traded constituents extended gains to investors this week which saw Doha Bank disclose its intent to strengthen its Japan rep office operations to attract more financial institutions from there to invest in Doha’s capital market through its exchange traded fund (QETF).
A higher than average demand for real estate, transport, telecom and consumer goods stocks imparted the bullish momentum to the market this week which saw Nakilat assumes full ownership and management of liquefied natural gas carrier Bu Samra.
Foreign funds’ substantial weakening of net selling pressure also helped the market this week which saw the general cargo movement through Hamad, Doha and Al Ruwais ports continued unhindered as they witnessed three-digit expansion in June this year.
The Total Return Index rose 1.13%, Al Rayan Islamic Index by 1.21% and All Share Index by 1.17% this week this which saw as many as 184,036 Masraf Al Rayan sponsored exchange traded fund QATR valued at QR383,398 changed hands across 22 transactions.
Market capitalisation saw 1.79% expansion to QR544.21bn mainly on large and small cap segments this week which saw a total of 59,213 Doha Bank-sponsored QETF worth QR536,502 traded across 17 deals.
The real estate sector index surged 7.16%, transport (3.01%), telecom (2.4%), industrials (1.8%), consumer goods and services (1.05%) and banks and financial services (0.37%); while insurance was down 0.44% this week which saw the market breadth skewed towards gainers.
Major movers included Ezdan, United Development Company, Barwa, Nakilat, Vodafone Qatar, Ooredoo, Qatari Investors Group, Industries Qatar, Gulf International Services, Doha Bank, Qatar First Bank and Qatari German Company for Medical Devices; even as Commercial Bank, QIIB, Alijarah Holding, Islamic Holding Group, Widam Food, Mannai Corporation and Aamal Company were among the losers this week which saw realty, banking and industrials sectors together account for about 78% of total trading volume.
Trade turnover grew amidst lower volumes this week which saw the real estate sector account for 32% of the total trading volume, banks and financial services (26%), industrials (21%), consumer goods and services (13%), transport (4%), telecom (3%) and insurance (2%) this week.
In value, the banks and financial sector’s share was 34%, realty (26%), industrials (17%), consumer goods and services (11%), transport (7%), telecom (3%) and insurance (2%) this week.
Qatari individuals turned net buyers to the tune of QR50.86mn against net sellers of QR78.55mn the week ended July 2.
The Arab individuals were net buyers to the extent of QR2.22mn compared with net sellers of QR4.99mn a week ago.
Foreign individuals were also net buyers to the tune of QR1.11mn against net sellers of QR1.58mn the previous week.
Foreign institutions’ net selling declined considerably to QR1.67mn compared to QR78.28mn the week ended July 2.
The Gulf individuals’ net profit booking eased noticeably to QR1.67mn against QR3.15mn a week ago.
However, domestic funds turned net sellers to the tune of QR63.36mn compared with net buyers of QR153.68mn the previous week.
The Arab funds’ net profit booking grew marginally to QR0.36mn against QR0.26mn the week ended July 2.
The Gulf funds’ net buying eased noticeably to QR12.78mn compared to QR13.13mn a week ago.
Total trading volume fell 14% to 1.53bn shares, while value rose 6% to QR2.78bn and transactions by 7% to 48,946.
The real estate sector’s trade volume plummeted 32% to 481.98mn equities and value by 5% to QR731.49mn, while deals were up 12% to 11,328.
The consumer goods sector reported 31% plunge in trade volume to 205.37mn stocks, 19% in value to QR295.16mn and 9% in transactions to 6,577.
The industrials sector’s trade volume was down 1% to 314.17mn shares, while value grew 19% to QR461.38mn despite 4% higher deals at 10,010.
However, there was 66% surge in the transport sector’s trade volume to 57.31mn equities, 57% in value to 200.81mn and 52% in transactions to 2,620.
The telecom sector’s trade volume soared 64% to 45.69mn stocks, value by 58% to QR82.89mn and deals by 58% to 3,225.
The market witnessed 46% expansion in the insurance sector’s trade volume to 33.9mn shares, 49% in value to QR59.36mn and 45% in transactions to 1,432.
The banks and financial services sector’s trade volume was up 8% to 389.71mn shares, value by 7% to QR948.03mn and deals by 6% to 13,754.