Qatar Exchange broke the 11,300 resistance level with ease and capitalisation enhanced by QR12bn during the week on robust dividend expectations.
Foreign institutions net bought QR400mn worth stocks to lift the 20-stock Qatar Index by 2.09% against Dubai's addition of 5.81%, Abu Dhabi (2.96%), Kuwait (1.48%), Muscat (0.84%), Bahrain (0.67%) and Saudi Arabia (0.12%).
Telecom and banking sectors outperformed the major indices during the week that witnessed Qatar Petroleum subsidiary Mesaieed Petrochemical Holding Company's QR3.23bn initial public offer receive "significant demand" from Qatari retail investors to witness "heavy" subscription.
However, local retail investors continued to be into profit booking during the week that saw Credit Suisse say dividend yields will be a more important driver of returns in Qatar this year and many foreign investors seek to enhance exposure, ahead of its emerging market inclusion.
Four of the five trading days were in the positive trajectory during the review week that witnessed Doha Bank disclose that it aims 50% of its total assets from international operations within the next five years.
Large and small cap stocks were the most sought- after in the week that also saw Doha Bank announce that its full-fledged Indian branch will start functioning within six to eight months.
The 20-stock Total Return Index rose 2.09%, All Share Index (comprising wider constituents) by 1.87% and Al Rayan Islamic Index by 0.65% in the week that saw state-owned transport entity Mowasalat plan to come out with an IPO.
Domestic institutions continued to be net buyers but with lesser vigour during the week, which saw Gulf Drilling International, which is soon to become a fully-owned subsidiary of Gulf International Services, take possession of its eighth jack-up drilling rig.
"Now that liquidity pressures have eased (with the closing of IPO subscription), the dividend expectations, especially from blue-chips, have been trending in," an analyst said.
QE has risen 9.24% year-to-date (YTD) compared to 13.33% in Dubai, 8.51% in Abu Dhabi, 5.35% in Muscat, 3.03% in Kuwait, 2.77% in Saudi Arabia and 2.25% in Bahrain.
The overall market trading volume was largely skewed towards realty as well as banks and financial services sectors in the week, which witnessed Qatar Islamic Bank report its net profit rise 8% to QR1.34bn.
A half of the traded stocks extended gains. Of the 42 stocks, 21 advanced; while 17 declined and four were unchanged during the week that saw International Islamic 2013 net profit rise 11% to QR750mn.
Telecom stocks appreciated 8.5%, banks and financial services (2.17%), insurance (1.63%), real estate (0.87%), industrials (0.76%) and transport (0.12%); while consumer goods fell (0.33%) in the week that witnessed al khaliji report 8% growth in net profit to QR551mn in 2013.
Five of the 12 banks and financial services, four of the eight industrials, three each of the eight consumer goods and the five insurers, and two each of the four realty, the three transport and the two telecom stock closed higher during the week.
Among the influential gainers were Industries Qatar (IQ), QNB, Barwa, Ooredoo, Nakilat, Qatar Islamic Bank, Doha Bank, Vodafone Qatar, Gulf International Services, Doha Insurance and Qatar Insurance. However, Commercial Bank, Mazaya Qatar, Qatar National Cement and Aamal Company bucked the trend.
Market capitalisation surged 2.07% to QR598.49bn. Large caps gained about 3%, small caps by about 2% and mid caps by about 1%.Small, large, mid and micro cap stocks have gained YTD 10.26%, 8.95%, 7.07% and 3.44% respectively.
Foreign institutions' net buying amounted to QR400.37mn compared to QR820.29mn the previous week. Domestic institutions' net selling was QR42.95mn against QR83.45mn the week ended January 16.
Local retail investors' net selling stood at QR335.95mn compared to QR628.15mn the previous week.
Non-Qatari individual investors' net selling was QR21.47mn against QR108.69mn the week ended January 16.
Total trading volume fell 24% to 48.44mn shares with the realty sector accounting for 29.31% of the total, banks and financial services (27.06%), telecom (13.98%), industrials (12.71%), transport (6.44%), insurance (4.79%) and consumer goods (4.71%).
The telecom sector's trading volume plummeted 52% to 2.28mn stocks, banks and financial services by 38% to 13.11mn, transport by 32% to 3.12mn, real estate by 22% to 14.2mn and industrials by 16% to 6.64mn; whereas that of telecom surged 28% to 6.77mn and insurance by 20% to 2.32mn.
Total stocks trading value shrank 25% to QR2.31bn with the banks and financial services accounting for 40.09% of the total, industrials (23.12%), realty (14.62%), telecom (6.29%), insurance (6.26%), consumer goods (5.78%) and transport (3.84%).
The consumer goods sector's stocks trading value plunged 53% to QR133.43mn, transport by 41% to QR88.7mn, banks and financial services by 36% to QR925.64mn, industrials by 17% to QR533.94mn and real estate by 1% to QR337.57mn; while that of telecom soared 58% to QR145.12mn and insurance by 25% to QR144.56mn.
QNB led the trading value with its stocks accounting for 14.74% of the total, followed by IQ (9.59%) and Barwa (9.05%).
Total market transactions declined 13 to 25,492 with the banks and financial services sector's share at 31.48%, industrials (26.07%), realty (18.77%), telecom (8.25%), consumer goods (6.31%), insurance (4.68%) and transport (4.44%).
The consumer goods' deals tanked 39% to 1,609; banks and financial services by 26% to 8,025; transport by 22% to 1,132 and industrials by 4% to 6,645; whereas those of telecom expanded 18% to 2,103; insurance by 10% to 1,193 and real estate by 1% to 4,785.
In the debt market, there was no trading of treasury bills. However, a total of 20,000 government bonds valued at QR201.88mn traded across five transactions during the week.
© The Peninsula 2014
