Almost one-in-three listed companies saw improvement in earnings despite the Covid-19 pandemic, as the Qatar Stock Exchange (QSE) reported QR15.8bn cumulative net profit in the first half (H1) of this year.
The transport sector saw earnings growth in the QSE, which otherwise reported 18.75% year-on-year fall in its cumulative net profits in January-June 2020 compared to 6.32% shrinkage in the corresponding period of 2019, said the figures collated from the QSE website.
The insurance sector was overall in the red due to a loss in one of the key constituents. Moreover, consumer goods and industrials sectors were seen major drag in the cumulative net profitability in the review period.
During H1-20, the transport sector’s cumulative net earnings grew 4.88% year-on-year to QR0.96bn but reflecting slowdown from 7.27% expansion in the corresponding period of 2019.
The sector has three listed constituents and its net profit constituted 6% of the total net profit of the listed companies compared to 5% the year-ago period. Two among them saw slowdown in earnings growth and one registered improvement.
The cumulative net profitability of banks and financial services sector, which has 13 listed entities, declined 8.04% year-on-year to QR11.28bn against 5.18% growth in the comparable period of 2019.
The banking and financial services sector contributed 71% to cumulative net profits in H1-20 against 62% the year ago period. Five each of the constituents witnessed higher growth in profits and slowdown in earnings; while two turned into black from red in the review period on a yearly basis.
The corona virus and the slide in oil prices would make a dent in the net profitability of the banking sector in the Gulf Cooperation Council (GCC) for the whole of this year, Moody's, an international credit rating agency had said earlier.
The industrials sector, which has 10 listed constituents, witnessed a huge 46.75% year-on-year contraction in net profitability to QR1.53bn against 38.62% decrease in the year-ago period.
The sector contributed 10% to the overall net profitability of the listed entities in the review period compared to 15% in H1-19. Seven of the constituents saw slowdown in net earnings; while three showed improvements in growth.
The consumer goods sector, which has 10 listed entities, witnessed a 63.4% year-on-year plunge in cumulative net profit to QR0.36bn at the end of June 30 compared to a 2.47% fall in the previous year period.
The sector contributed 2% to the overall net profitability in the review period against 5% a year-ago period. While the two witnessed improvement in earnings, four saw deterioration and two moved from black to red in the review period on annual basis.
The realty segment, which has four listed entities, saw a 27.09% year-on-year in net earnings to QR0.85bn during H1-20 against 23.03% contraction the year-ago period. The sector constituted 5% of the overall net profitability in H1-2020 and 2019. Three saw weaker performance in net earnings and one showed improvement in profitability growth.
The telecom sector saw its H1-20 net profit decline 2.14% to QR0.9bn compared to 24.62% surge the year-ago period. The sector contributed 6% to overall net profit in the review period against 5% in H1-2019.
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