More than 70% of the traded constituents extended gains to investors in the Qatar Stock Exchange this week, which saw the listed companies’ cumulative first half net profit at QR16bn.
Higher than average demand for the consumer goods, insurance and telecom sectors visible on the bourse this week, which saw Standard and Poor’s and Moody’s affirm the credit ratings of Industries Qatar (IQ).
Foreign funds were seen bullish as the 20-stock Qatar Index gain 1.72% this week which saw Aamal Cables, a subsidiary of Aamal Company, secure a three-year contract from Kahramaa.
Trading volume, value and deals were on the increase this week which Qatar Central Bank’s (QCB) latest financial stability report disclose that the banks’ overall risks is lower compared to those in 2018.
The market saw substantial gains in the first half of this week, leading the index touch a high of 9,813 points and lose steam towards the end but overall settled 165 points higher this week.
"The bias remains positive and further advance towards the psychological resistance level at 10,000 point is likely to take place on the coming period, knowing that above this will confirm a gradual increase to the high of last year at 10,810 point," Kamco said in its analytical note.
Medium-term investors can stay in the market with a stop-loss below 9,400 points, while long-term investors can enter the market above 9,760 points, the note said.
The Arab individuals were seen marginally bullish and there was weakened net selling by the Gulf retail investors this week which saw QTerminals, in which Milaha has a 49% stake, ink a 35-year concession pact with Ukraine to develop Olvia port.
However, domestic funds turned bearish and there was increased net selling by foreign individuals this week which saw as many as 1.19mn Masraf Al Rayan sponsored exchange traded funds QATR valued at QR2.65mn change hands across 25 deals.
Market capitalisation saw more than QR9bn or 1.62% increase to QR568.39bn, mainly on large and small cap segments this week which saw the QCB report highlight that Islamic lenders fared well in 2019.
The Total Return Index gained 1.72%, the All Share Index 1.63% and Al Rayan Islamic Index 1.31% this week which saw a total of 33,565 Doha Bank sponsored QETF valued at QR319,431 trade across eight transactions.
The consumer goods and services index shot up 4.02%, insurance (3.39%), telecom (1.81%), banks and financial services (1.53%), industrials (1.15%), real estate (1.09%) and transport (0.28%) this week which saw the country’s industrial production index rise 0.7% on a monthly basis in June 2020.
Major gainers included IQ, QNB, Qatar Insurance, Ooredoo, Qatar Electricity and Water, Aamal Company, Woqod, Mazaya Qatar, Commercial Bank, Masraf Al Rayan, Dlala, Inma Holding, Mannai Corporation, Vodafone Qatar and Milaha; even as Qatar German Company for Medical Devices, Al Khaleej Takaful, Qatari Investors Group, Gulf International Services, Medicare Group, Mesaieed Petrochemical Holding and Gulf Warehousing were among the losers this week which saw industrials, consumer goods and banking sectors together account for about 78% of total trading volume.
Trade turnover and volumes were on the increase this week which saw the industrials sector account for 33% of the total trading volume, consumer goods and services (23%), banks and financial services (21%), real estate (14%), transport (4%), insurance (3%) and telecom (2%) this week.
In value, the banks and financial sector’s share was 36%, consumer goods and services (35%), industrials (20%), consumer goods and services (19%), realty (11%), transport (9%), and insurance and telecom (3% each) this week.
Foreign funds turned net buyers to the tune of QR125.45mn against net sellers of QR33.79mn the week ended August 6.
The Arab individuals were net buyers to the extent of QR0.53mn compared with net sellers of QR3.49mn the previous week.
The Gulf individuals’ net profit booking declined considerably to QR0.27mn against QR4.58mn a week ago.
However, Qatari individuals’ net selling grew to QR84.26mn compared to QR83.92mn the week ended August 13.
Domestic funds turned net sellers to the tune of QR19.26mn against net buyers of QR123.81mn the previous week.
Foreign individuals’ net selling strengthened drastically to QR14.18mn compared to QR6.1mn a week ago.
The Gulf institutions were net sellers to the extent of QR6.42mn against net buyers of QR7.41mn the week ended August 13.
The Arab funds turned net profit takers to the tune of QR1.71mn compared with net buyers of QR0.37mn a week ago.
Total trading volume rose 30% to 1.57bn shares, value by 23% to QR2.67bn and transactions by 18% to 54,632.
The transport sector’s trade volume more than doubled to 66.14mn equities and value more than doubled to QR253.79mn on 54% jump in transactions to 3,627.
There was a 71% surge in the insurance sector’s trade volume to 42.39mn stocks, 78% in value to QR82.17mn and 14% in deals to 1,622.
The consumer goods sector’s trade volume soared 44% to 360.48mn shares, value by less than 1% to QR497.08mn and transactions by 17% to 10,162.
The industrials sector reported 40% expansion in trade volume to 512.06mn equities, 17% in value to QR532.81mn and 27% in deals to 13,719.
The real estate sector’s trade volume shot up 27% to 211.72mn stocks, value by 49% to QR296.88mn and transactions by 11% to 7,296.
The banks and financial services sector saw 5% jump in trade volume to 341.13mn shares, 20% in value to QR943.94mn and 17% in deals to 15,454.
However, the telecom sector’s trade volume tanked 19% to 31.54mn equities, value by 24% to QR68.15mn and transactions by 21% to 2,752.
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