Key QSE index manages to remain above 10,000 level, despite a 1.15% fall
March 05 2021 09:09 PM

The initial strong gains made on the Qatar Stock Exchange to reflect the global credit rating agency Moody’s outlook on profit resiliency of Qatari banks, however, could not be sustained this week.
In the run, the local bourse was seen losing as much as 116 points or 1.15% even as the 20-stock Qatar Index managed to remain above the 10,000 levels this week which saw Qatar’s February purchasing managers index paint a rosy picture of the country’s non-energy private sector, especially manufacturing and construction.
Otherwise, the Gulf institutions were seen increasingly net buyers and the local retail investors’ net selling weakened this week which saw Qatar’s producer’s price index surge 13% month-on-month in January 2021.
Arab individuals turned bullish, albeit at lower levels, and there were increased net buying interests from the Arab funds this week which saw Mesaieed Petrochemical Holding (MPHC) report QR532mn net profit in 2020.
Amidst the overall bearish overhang, as much as 63% of the traded constituents extended gains to investors this week which saw Qamco’s say its core strategy revolves around revenue growth and cost optimisation.
The Islamic index otherwise bucked the trend with marginal gains this week which saw Qatari German Medical Devices (QGMD) turn profitable in 2020 by reporting net earnings of QR0.88mn.
The telecom, insurance and banking counters witnessed higher than average net selling this week which saw United Development Company enter into QR500mn general corporate banking pact with the Commercial Bank.
Nevertheless, realty, consumer goods and industrials counters witnessed brisk demand this week which saw a total of 3.43mn Masraf Al Rayan-sponsored exchange traded fund QATR valued at QR8.06mn change hands across 566 transactions.
Market capitalisation saw more than QR8bn or 1.41% erosion to QR579.63bn, mainly on large and midcap segments this week which saw a total of 142,946 Doha Bank-sponsored QETF valued at QR1.44mn trade across 28 deals.
The foreign institutions’ net selling considerably increased this week which saw Commercial Bank launch $500mn in additional Tier 1 bonds.
Foreign individuals were increasingly net buyers this week which saw Nakilat say it has been able to navigate the unprecedented challenges in 2020 due to its business continuity plans.
Major shakers included Qatar General Insurance and Reinsurance, Ooredoo, Widam Food, Doha Insurance, Masraf Al Rayan, QNB, Dlala and Industries Qatar this week which saw Arqaam Capital view that QLM Life and Medical Insurance is "best positioned" from the implementation of mandatory health insurance in Qatar.
Nevertheless, QLM, Investment Holding Group, Qatar National Cement, Medicare Group, Baladna, Doha Bank, Alijarah Holding, Qatar First Bank, Qatar Oman Investment, QGMD, Mannai Corporation, Aamal Company and UDC were among the gainers this week which saw the industrials and banking sectors together account for about 70% of the trading volume.
The industrials sector accounted for 58% of the total trading volume, banks and financial services (15%), consumer goods and services (12%), real estate (8%), insurance (4%), and transport and telecom (2% each) this week.
In value, the banks and financial sector’s share was 35%, industrials (30%), consumer goods and services (12%), insurance and realty (7% each), telecom (5%) and transport (4%) this week.
The foreign funds’ net selling increased significantly to QR100.24mn against QR18.09mn the week ended February 25.
The domestic funds’ net buying declined considerably to QR76.96mn compared to QR103.52mn a week ago.
However, the Gulf institutions’ net buying grew substantially to QR52.26mn against QR3.02mn the previous week.
The foreign individuals’ net buying rose perceptibly to QR10.69mn compared to QR9.3mn the week ended February 25.
The Arab individuals were net buyers to the extent of QR1.19mn against net sellers of QR20.6mn a week ago.
The Arab institutions’ net buying grew marginally to QR0.88mn compared to QR0.33mn the previous week.
The local retail investors’ net selling shrank markedly to QR41.09mn against QR72.87mn the week ended February 25.
The Gulf individuals’ net profit booking fell noticeably to QR0.48mn compared to QR5.03mn a week ago.
Total trading volume rose 18% to 1.17bn shares, while value fell 5% to QR2.38bn despite 2% higher transactions at 61,007.
There was 40% surge in the industrials sector’s trade volume to 672.92mn equities, 8% in value to QR712.93mn and 5% in deals to 17,483.
The insurance sector’s trade volume soared 12% to 43.21mn stocks, value by 70% to QR162.36mn and transactions by 79% to 3,337.
The market witnessed 11% jump in the consumer goods and services sector’s trade volume to 138.43mn shares, 5% in value to QR289.2mn and 20% in deals to 7,888.
However, the telecom sector’s trade volume plummeted 49% to 22.33mn equities, value by 20% to QR111.52mn and transactions by 5% to 5,287.
The transport sector reported 12% shrinkage in trade volume to 25.85mn stocks, 10% in value to QR102.83mn and 8% in deals to 3,138.
The real estate sector’s trade volume tanked 12% to 91.82mn shares, whereas value was up less than 1% to QR171.57mn and transactions by 1% to 5,410.
The banks and financial services sector saw less than 1% dip in trade volume to 170.8mn equities, 22% in value to QR824.84mn and 9% in deals to 18,464.

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