With earnings sessions round the corner, Qatar Exchange closed the week on a higher note, albeit on a slower pace.
Local retail investors' net buying of QR66mn lend support to the QE 20-stock Qatar Index (based on price data), which was up 0.14% in the week that otherwise witnessed Abu Dhabi gain 2.33%, Dubai (2.29%) and Muscat (0.64%), while Saudi Arabia, Bahrain and Kuwait fell 0.98%, 0.91% and 0.26% respectively.
The index that tracks Shariah-principled stocks distinctly outperformed other key barometers in the week that saw Isle of Man-based Qatar Investment Fund say that the near term catalysts for the Qatari market include the upcoming earnings season, the recent upgrade to the MSCI 'emerging' market index and a pipeline of initial public offerings against a background of attractive valuations.
The 20-stock Total Return Index rose 0.14%, All Share Index (comprising wider constituents) by 0.04% and Al Rayan Islamic Index by 1.19% in the week that saw Milaha (Qatar Navigation) buyback 0.91mn shares, which was 0.8% of the total outstanding shares.
The returns from banks and telecom was higher than the other sectors in the week, which saw Standard and Poor's view that sukuks are increasingly getting into the Gulf region's financial landscape due to low yields as well as the higher demand for refinancing and funding of mammoth infrastructure sector.
More than 52% of the stocks appreciated in the week, which witnessed Qatar's producer price index for industrials rise 1.6% year-on-year (YoY) in the third quarter (Q3) on higher prices for crude, natural gas, refined petroleum goods, utilities and basic chemicals.
Domestic institutions were seen brisk in profit booking in the week, which saw Global Investment House find that Industries Qatar's double-digit YoY fall in profits act as a major drag in Gulf petrochemical companies' earnings during Q3 this year.
QE has reported 24.29% gains year-to-date (YTD), which, however, was lower than Dubai's 85.72% surge, Abu Dhabi (49.75%) and Kuwait (30.85%). Saudi Arabia rose 21.21%, Muscat (17.5%) and Bahrain (12.38%).
The overall market liquidity which was largely skewed towards telecom, real estate and banking stocks -- fell mainly on faster slippage in volumes in the realty, industrials, banking and consumer goods counters in the week.
The sector prospects in the QE was downcast on weak outlook, especially in the industrials, industrials, telecom and banking equities in the week that saw Al Asmakh Real Estate Development Company find that Qatar's residential market, which is already in the recovery phase, offers 6% to 8% returns on investment, one of the highest in the Middle East.
Of the 42 stocks, 22 advanced; while 18 declined and two were unchanged in the week.
Among the major gainers were Doha Bank, Masraf Al Rayan, Widam Food, Qatari Investors Group, Gulf International Services, Mazaya Qatar, Barwa, Vodafone Qatar and Nakilat.
However, QNB, Industries Qatar, United Development Company, Ooredoo, Milaha and Salam International Investment buck the trend.
The banks and financial services equities rose 0.49%, telecom (0.46%) and real estate (0.17%); while industrials shrank 0.65%, transport (0.55%), insurance (0.26%) and consumer goods (0.01%).
Nine of the 12 banks and financial services, four of the eight consumer goods, three of the eight industrials, two each of the five insurers and the four realty, and one each of the two telecom and the three transport stocks closed higher in the week.
Market capitalisation, however, fell 0.19% or more than QR1bn to QR553.98bn. Large cap equities eroded 0.19%, while small caps gained more than 1%, mid caps (0.37%) and micro caps (0.26%) in the week.
Small, mid and large caps have gained YTD 29.88%, 27.29% and 19.89% respectively; whereas micro caps fell 3.2%.
Qatari individual investors' net buying stood at QR65.93mn against QR31.14mn the pervious week.
Foreign institutions were net buyers to the extent of QR29mn compared with net sellers of QR100.08mn the week ended November 28.
Non-Qatari retail investors were increasingly bearish as their net selling rose to QR32.97mn compared to QR29.77mn the previous week.
Domestic institutions were net sellers to the tune of QR62.13mn against net buyers of QR98.25mn the week ended November 28.
Total trading volume fell 31% to 55.7mn shares with the telecom sector accounting for 29.69% of the total, followed by realty (21.36%), banks and financial services (18.01%), transport (13%), consumer goods (10.07%), industrials (6.68%) and insurance (1.18%).
The real estate sector's trading volume plummeted 54% to 11.9mn shares, industrials by 39% to 3.72mn, banks and financial services by 36% to 10.03mn, consumer goods by 27% to 5.61mn and telecom by 13% to 16.54mn; whereas transport surged 36% to 7.24mn and insurance by 14% to 0.66mn.
Total stocks trading value shrank 31% to QR1.58bn with the banks and financial services sector accounting for 29.7% of the total, followed by industrials (14.98%), realty (14.94%), telecom (13.2%), consumer goods (13.16%), transport (11.83%) and insurance (2.19%).
The real estate sector's stocks trading value plunged 57% to QR236.83mn, industrials by 34% to QR237.35mn, telecom by 32% to QR209.23mn, banks and financial services by 27% to QR470.72mn and consumer goods by 11% to QR208.56mn; while transport gained 21% to QR187.56mn and insurance by 7% to QR34.72mn.
Vodafone Qatar led the trading value with its stocks accounting for 11.93% of the total, followed by Rayan (9.54%) and Nakilat (8.87%).
Total market transactions fell 29% to 22,628 with the banks and financial sector's share at 29.25%, followed by industrials (16.25%), realty (15.21%), telecom (13.32%), consumer goods (13.09%), transport (9.11%) and insurance (3.78%).
The real estate sector's deals tanked 49% to 3,442; consumer goods by 36% to 2,961; industrials by 29% to 3,676; telecom by 24% to 3,013; banks and financial services by 21% to 6,619 and transport by 12% to 2,062; but insurance expanded 60% to 855.
In the debt market, as many as 80,000 treasury bills valued at QR797.87mn traded across one deal. A total of 20,000 bonds worth QR203mn changed hands across one transaction during the week.
© Gulf Times 2013
