Qatar QSE hits 20-week low, sees $2.45bln erode

About 67% of the traded stocks were in the red as the 20-stock Qatar Index shed 1.48% this week

Investors monitor market activity at the Qatar Exchange in Doha September 11, 2011. Image used for illustrative purpose.

Investors monitor market activity at the Qatar Exchange in Doha September 11, 2011. Image used for illustrative purpose.

REUTERS/Mohammed Dabbous
29 April 2017
Santhosh V. Perumal

Domestic institutions played spoilsport in the Qatar Stock Exchange (QSE), which led it hit a 20-week low and capitalisation erode more than QR9bn this week.

About 67% of the traded stocks were in the red as the 20-stock Qatar Index shed 1.48% this week, which saw Industries Qatar (IQ) and Ooredoo report QR928mn and QR584mn net profit respectively in the first quarter (Q1) of this year.

Selling pressure was seen especially within consumer goods, industrials, transport and telecom counters this week which saw Qatar Insurance's and Qatar National Cement’s Q1, 2017 net profit at QR302mn and QR84.84mn respectively.

Islamic stocks were seen falling faster than the main index this week which saw QIIB post QR236.5mn net profit in January-March this year.

However, local retail investors were increasingly net buyers, non-Qatari individuals turned bullish and there was lower net selling by foreign institutions this week which saw Masraf Al Rayan registers net profit of QR510mn in Q1, 2017.

Overall trade turnover grew amidst flat volumes this week, which saw banking, telecom and real estate sectors together account for about 84% of the volumes.

Banks and financial services sector constituted 30% of the total volume, telecom (29%), realty (25%), transport and industrials (6% each), consumer goods (3%) and insurance (1%) this week which saw Barwa's Q1, 2017 net profit at QR479.43mn.

Banks and financial services’ share in total trade turnover was 37%, real estate (17%), telecom (15%), industrials (14%), consumer goods (9%), transport (7%) and insurance (2%) this week which saw Aamal Company's Q1, 2017 net profit at QR139.7mn.

Opening the week weak at 10,197 points, the market fell further the next day but only to see an overall gains for the next two days to reach a high of 10,206 points. Profit booking pressure on the last day resulted in the overall index settle 152 points lower this week which saw Milaha net earnings at QR236mn in Q1, 2017.

The 20-stock Total Return Index shed 1.48%, All Share Index (comprising wider constituents) by 1.53% and Al Rayan Islamic Index by 1.6% this week which saw Nakilat Q1, 2017 net profit at QR191mn.

The consumer goods index plummeted 3.47%, industrials (2.72%), transport (2.06%), telecom (1.72%), banks and financial services (1.05%) and realty (1.02%), while insurance was up 0.15% this week which saw Woqod net profit at QR176.46mn in Q1, 2017.

Market capitalisation melted 1.72% to QR542.73bn this week which witnessed no trading of treasury bills and sovereign bonds.

Major losers included QNB, IQ, QFB, Aamal Company, Mazaya Qatar, Vodafone Qatar, Ooredoo, Nakilat, Milaha, Zad Holding, Woqod, Medicare Group, Qatar National Cement, Qatari Investors Group, Gulf International Services, Doha Insurance, Barwa and Ezdan this week.

Nevertheless, major gainers included Qatar Islamic Bank, Doha Bank, Commercial Bank, QIIB, Dlala, Mesaieed Petrochemical Holding, Qatar Islamic Insurance and Gulf Warehousing this week.

Domestic institutions’ net selling strengthened considerably to QR21.4mn from QR3.98mn the week ended April 19.

However, local retail investors’ net buying increased perceptibly to QR21.29mn from QR18.33mn the previous week.

Non-Qatari individual investors turned net buyers to the tune of QR2.07mn against net sellers of QR7.57mn the week ended April 19.

Foreign institutions’ net profit booking declined to QR2.07mn from QR6.89mn the previous week.

Total trade volume was rather flat at 45.05mn shares, while value rose 19% to QR1.15bn and transactions by 17% to 15,968 this week.

The banks and financial services sector saw almost flat trade volume at 13.37mn equities but on 22% increase in value to QR425.23mn and 8% in deals to 5,237.

However, the transport sector’s trade volume soared 91% to 2.79mn stocks, value by 57% to QR79.3mn and transactions by 16% to 1,122.

The consumer goods sector reported 73% surge in trade volume to 1.52mn shares, 38% in value to QR102.64mn and 31% in deals to 1,684.

The industrials sector’s trade volume shot up 14% to 2.73mn equities, value by 36% to QR157.93mn and transactions by 32% to 3,971.

There was 14% expansion in the real estate sector’s trade volume to 11.11mn stocks, 15% in value to QR200.33mn and 26% in deals to 2,144.

The insurance sector’s trade volume grew 9% to 0.25mn shares, value by 23% to QR17.33mn and transactions by 30% to 338.

Nonetheless, the market witnessed 22% shrinkage in the telecom sector’s trade volume to 13.28mn equities, 12% in value to QR167.98mn and 8% in deals to 1,472.

© Gulf Times 2017

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