Attractive valuations and positivity in the Gulf region's geopolitical arena helped the Qatar Stock Exchange surpass the targeted level of above 10,900 levels this week, which saw the advent of QLM into the trading ring.
Foreign and domestic funds were seen powering the 20-stock Qatar Index gain by as much as 236 points to settle at a record high of 10,913 points this week, which saw QSE chief executive Rashid bin Ali al-Mansoori say Qatar’s investment climate is “overall good” for investors, including those from the neighbouring countries, but it is not dependent on just one segment for the liquidity.
“The QSE concluded the year 2020 with a positive performance and we started the New Year with a positive and excellent performance, since its inception, hoping that it will be a good year for all,” he said.
About 63% of the traded constituents were in the positive trajectory this week, which witnessed the QSE’s listing director Abdulaziz al-Emadi say that the junior bourse for the small and medium enterprises or venture market, is expected to be up and running soon this year.
"The index fulfilled the target level at 10,810 points, while a sustainable close above this is needed to gain further confidence and call for a gradual increase to the next strong layer at 11,400 points," Kamco Invest said in its analysis note.
The telecom, transport, industrials and insurance counters witnessed higher than average demand this week, which saw Qatar's core inflation rose faster month-on-month than the general consumer price index in December 2020.
Market capitalisation saw more than QR9bn or 1.53% jump to QR628.21bn, mainly on large and midcap segments this week, which saw global credit rating agency Standard & Poor's say that Qatar’s intraregional travel, tourism and real estate sectors will benefit the most, lifting the prospects of the insurance sector in the wake of lifting of blockade.
The weakened net selling by the Gulf institutions also helped in maintaining the overall positive sentiments this week, which saw a total of 134,722 Masraf Al Rayan-sponsored exchange traded fund QATR valued at QR328,675 change hands across 22 transactions.
The market had overcome the strong net profit booking pressure of the local retail investors this week, which saw a total of 71,680 Doha Bank- sponsored QETF trade across 18 deals.
Foreign institutions’ net buying grew substantially to QR471.65mn against QR252.24mn the week ended January 7.
Domestic institutions’ net buying increased considerably to QR45.85mn compared to QR15.42mn the previous week.
Gulf funds’ net profit booking weakened significantly to QR5.55mn against QR22.26mn a week ago.
Arab institutions’ net selling shrank markedly to QR0.23mn compared to QR4.57mn the week ended January 7.
However, Qataris retail investors’ net selling shot up notably to QR479.54mn against QR252.52mn the previous week.
Arab individuals turned net sellers to the tune of QR23.36mn compared with net buyers of QR4.49mn a week ago.
Foreign individuals were net sellers to the extent of QR9.05mn against net buyers of QR7.22mn the week ended January 7.
Gulf individuals turned net profit takers to the tune of QR0.29mn compared with net buyers of QR0.39mn the previous week.
Major gainers included Milaha, Ooredoo, Doha Insurance, Industries Qatar, Al Khaliji, Commercial Bank, QIIB, Qatar First Bank, Qatari German Medical Devices, Al Meera, Qatar Insurance, Barwa, Mazaya Qatar, Vodafone Qatar and Nakilat; even as Ezdan, Dlala, Investment Holding Group, Qatar Oman Investment and Baladna were among the losers this week which, saw Mazaya Qatar acquire four residential buildings in Al Saad for QR150mn.
The banks and financial sector accounted for 28% of the total trading volume, industrials and real estate (21% each), consumer goods and services (14%), insurance (7%), and telecom and transport (4% each) this week which saw QNB posts a fully year net profit of QR12bn; even as it set aside QR5.8bn as loan loss provision in 2020.
In value, the banks and financial sector’s share was 42%, realty and industrials (13% each), consumer goods and services (10%), insurance (9%), transport (7%) and telecom (6%) this week.
Total trading volume gained 18% to 1.07bn shares, value by 50% to QR2.92bn and transactions by 49% to 57,869.
The insurance sector’s trade volume more than quadrupled to 78.23mn equities and value by more than six-fold to QR260.72mn on almost-seven-fold jump in deals to 5,931.
The telecom sector’s trade volume more than doubled to 48.08mn stocks and value also more than doubled to QR176.03mn on more-than-doubled transactions to 6,178.
The real estate sector reported a 48% surge in trade volume to 228.86mn shares, 49% in value to QR371.12mn and 62% in deals to 9,083.
The banks and financial services sector’s trade volume soared 35% to 302.43mn equities, value by 43% to QR1.23bn and transactions by 28% to 18,744.
There was a 23% expansion in the transport sector’s trade volume to 39.76mn stocks, 30% in value to QR190.96mn and 35% in deals to 4,003.
The consumer goods and services’ trade volume was up 2% to 144.72mn shares, value by 21% to QR303.97mn and transactions by 9% to 5,088.
However, the market witnessed a 27% shrinkage in the industrials sector’s trade volume to 229.21mn equities but on 18% growth in value to QR387.22mn and 23% in deals to 8,842.