Ahead of the QR3.23bn initial public offer (IPO) of a Qatar Petroleum subsidiary, local retail investors were net sellers to the tune of QR132mn, which dragged the Qatari bourse, making it the worst performer among the Gulf bourses during the week.
Of the five sessions, three of them were in the negative turf in the week that witnessed Mesaieed Petrochemical Holding Company (MHPC) announce its 323.19mn shares at QR10.2 a piece through a maiden offer, which will hit the market next week.
However, the index that tracks Shariah-principled stocks were seen to be in a better position as its index fall was slower than the other major indices in the week that saw Nakilat Shipyard joint ventures received $160mn financing from al khaliji.
The QE 20-stock Qatar Index (based on price data) fell 0.74% in the week that otherwise witnessed Dubai gain 1.99%, Bahrain (1.34%), Abu Dhabi (1.12%) and Kuwait (0.28%), while Muscat and Saudi Arabian bourses fell 0.46% and 0.34% respectively.
The 20-stock Total Return Index fell 0.74%, All Share Index (comprising wider constituents) by 0.8% and Al Rayan Islamic Index by 0.16% in the week, which saw Ministry of Development Planning and Statistics (MDP&S) disclose that Qatar's inflation stood unchanged in November from October as increase in rents was negated by cheaper food, transport and miscellaneous goods.
Transport, real estate, banks and financial services, insurance and telecom stocks suffered the most in the week that saw Energy Minister HE Dr Mohamed bin Saleh al-Sada announce that QP is all set to have a series of IPOs in the coming one decade.
"Overall, sporadic buying will be followed intermittent profit booking, particularly by local retail investors, as a run up to the IPO," an analyst with a conventional brokerage company said.
About 74% of the traded stocks fell in the week, which saw Nebras Power -- a joint venture entity among Qatar Electricity and Water (QEWC), Qatar Petroleum International (QPI) and Qatar Holding (QH) -- announce that it will soon launch commercial activities.
QE had risen 24.31% year-to-date (YTD) compared to 103.88% in Dubai, 59.1% in Abu Dhabi, 28.51% in Kuwait, 24.7% in Saudi Arabia, 17.88% in Muscat and 14.76% in Bahrain.
The overall market trading volume was largely skewed towards banks and financial services, realty, industrials and consumer goods in the week that saw the MDP&S caution that Qatar's project cost inflation is likely to harden due to major infrastructure upgrade and further "aggravate" with Dubai winning the bid to host Expo 2020. Of the 42 stocks, only nine advanced; while 31 declined and two were unchanged in the week that featured a Global report which said Qatar's banking sector saw 25.3% annual rise in net interest income in the third quarter of 2013 against the Gulf average of 10.2%; even as it witnessed "significant" expansion in provisions for bad loans.
Among the influential losers were Industries Qatar, QNB, Masraf Al Rayan, Aamal Company, United Development Company, Barwa, Vodafone Qatar, Nakilat, Milaha and Gulf International Services.
However, Qatar National Cement, Salam International Investments, Islamic Holding Group and Qatar Islamic Group bucked the trend.
Transport stocks depreciated 3.42%, real estate (1.75%), banks and financial services (1.37%), insurance (1.29%), telecom (0.79%) and consumer goods (0.7%); while industrials rose 1.06% in the week.
Seven of the eight consumer goods, six of the 12 banks and financial services, all of the five insurers, four each of the eight consumer goods and the realty; all of the three transport and all of the two telecom stocks closed lower in the week.
Market capitalisation fell 0.79% or more than QR4bn to QR554.96bn. Large and mid cap equities melted 1.42% and 0.41% respectively; while small caps gained as much as 3%.
Small, mid and large cap stocks have gained YTD 35.64%, 27.46% and 19.48% respectively; whereas micro caps lost 2.66%.
Local retail investors were net sellers to the tune of QR131.67mn; whereas non-Qatari individual investors' net buying was QR16.58mn.
Domestic and foreign institutions were net buyers to the extent of QR4.34mn and QR110.55mn respectively.
Total trading volume more than doubled to 58.04mn shares with the banks and financial services sector accounting for 25.5% of the total, realty (18.81%), industrials (17.18%), consumer goods (16.85%), telecom (14.02%), transport (7.06%) and insurance (0.57%).
The consumer goods sector's trading volume grew almost five-fold to 9.78mn stocks, industrials almost tripled to 9.97mn, banks and financial services more than doubled to 14.8mn and telecom more than doubled to 8.14mn. The real estate and transport sectors witnessed 48% and 25% surge to 10.92mn and 4.1mn; while insurance fell 8% to 0.33mn.
Total stocks trading value more than doubled to QR1.97bn with the industrials sector accounting for 32.38% of the total, banks and financial services (30.31%), realty (13.25%), consumer goods (11.97%), telecom (5.54%), transport (5.53%) and insurance (1.03%).
The industrials sector's stocks trading value almost tripled to QR639.17mn, consumer goods more than doubled to QR236.25mn and banks and financial services also more than doubled to QR598.32mn.
The telecom sector's stocks trading value soared 94% to QR109.35mn, real estate by 54% to QR261.52mn and transport by 44% to QR109.21mn; whereas insurance shrank 10% to QR20.27mn.
Qatari Investors Group led the trading value with its stocks accounting for 16.4% of the total, followed by Rayan (13.95%) and Barwa (6.83%).
Total market transactions more than doubled to 29,478 with the industrials sector's share at 30.45%, banks and financial services (30.16%), realty (14.18%), consumer goods (12.67%), telecom (7.04%), transport (4.63%) and insurance (0.87%).
The consumer goods sector's deals more than tripled to 3.735; industrials, insurance, banks and financial services and telecom more than doubled to 8,975; 257; 8,892 and 2,076 respectively; real estate expanded 79% to 4,179 and transport by 65% to 1,364.
In the debt market, there was no trading of treasury bills. However, a total of 7,500 bonds worth QR75.35mn changed hands across one transaction during the week.
© Gulf Times 2013
