The Qatar Stock Exchange witnessed its key index surpass 10,300 levels intra-week but could not keep up the momentum towards the end of this week.
Foreign institutions were seen increasingly net buyers this week which saw the bourse announce rejig to its indices, effective from October, and change in the methodology of the indices.
Consumer goods, telecom, transport and banking counters witnessed higher than average demand, reflecting in a 0.2% rise in the main index this week which saw Qatar Financial Center study that found the country’s non-hydrocarbon private sector outlook remain "strongly positive" on the back of fast weakening input prices and robust expectations.
The substantially weakened net selling pressure from non-Qatari individuals also had its role in the market this week which saw Islamic banks in Qatar register a strong double-digit year-on-year growth in credit extension in July this year, substantially outpacing the loan growth within the conventional domestic lenders.
Local retail investors however seen increasingly into profit booking this week which saw Ezdan Holding Group and Qatar Aluminium Manufacturing Company to replace Medicare Group and Qatar First Bank in the Qatar Index.
Domestic institutions continued to be net buyers but with lesser intensity this week which saw Qatar witnessed strong container traffic (net tonnage) growth year-on-year in July 2019, indicating potential for the transport sector.
Islamic stocks were seen gaining faster than the other indices this week which saw no trading of treasury bills and sovereign bonds.
Trade turnover and volumes were on the decline this week which saw as many as 242,862 Masraf Al Rayan sponsored exchange traded fund QATR valued at QR0.56mn change hands across 14 deals.
The Total Return Index rose 0.2% and Al Rayan Islamic Index (Price) by 0.65%, while All Share Index was down 0.03% this week which saw a total of 36,853 Doha Bank sponsored QETF valued at QR0.37mn trade across 15 transactions.
Market capitalisation grew more than QR1bn or 0.2% to QR565.3bn mainly on microcap equities this week which saw Qatar Industrial Manufacturing Company sign an agreement with Doha Bank for the financing of its Gulf Glass project, estimated to cost QR230mn.
The consumer goods index gained 1.55%, telecom (1.52%), transport (0.68%) and banks and financial services (0.5%); while realty, insurance and industrials declined 3%, 1.66% and 0.82% respectively this week which saw Commercial Bank close a three-year $250mn syndicated loan which was mandated to Mizuho Bank to lead and arrange.
Major gainers included Qatar Islamic Bank, QNB, Doha Bank, Ahlibank Qatar, QIIB, Qatar Oman Investment, Salam International Investment, Al Meera, Qatar Industrial Manufacturing, Gulf International Services, Al Khaleej Takaful, Ooredoo, Nakilat and Gulf Warehousing; even as Commercial Bank, Masraf Al Rayan, Qatar First Bank, Alijarah Holding, Qatari German Company for Medical Devices, Medicare Group, Qatari Investors Group, Industries Qatar, Ezdan and Milaha this week which saw banking and real estate stocks constitute about 64% of the trading volume.
The banks and financial services sector accounted for 33% of the trading volume, real estate (31%), industrials (14%), transport (7%), insurance (6%), telecom (5%) and consumer goods (4%) this week.
In terms of value, banks and financial services accounted for 52%, industrials (14%), consumer goods (10%), realty (9%), transport (7%), and insurance and telecom (5% each) this week.
Non-Qatari funds’ net buying increased considerably to QR40.58mn compared to QR25.06mn the week ended August 29.
Non-Qatari individuals’ net profit booking fell significantly to QR11.42mn against QR81.64mn the previous week.
However, local retail investors’ net profit booking grew noticeably to QR114.28mn compared to QR92.68mn a week ago.
Domestic funds’ net buying shrank substantially to QR85.12mn against QR149.26mn the week ended August 29.
Total trade volume fell 18% to 358.23mn shares, value by 28% to QR1.13bn and transactions by 15% to 29,951.
The consumer goods sector’s trade volume plummeted 40% to 15.03mn equities, value by 49% to QR112.98mn and deals by 36% to 2,005.
The industrials sector reported 39% plunge in trade volume to 50.49mn stocks, 44% in value to QR154.17mn and 22% in transactions to 6,668.
The banks and financial services sector’s volume tanked 33% to 117.51mn shares, value by 25% to QR583.76mn and deals by 11% to 10,176.
There was 19% decline in the transport sector’s trade volume to 26.55mn equities, 9% in value to QR73.63mn and 23% in transactions to 1,309.
The telecom sector’s trade volume was down 10% to 17.65mn stocks, value by 26% to QR54.86mn and deals by 28% to 2,278.
However, the insurance sector’s trade volume more than doubled to 20.23mn shares and value also more than doubled to QR53.37mn on more than doubled transactions to 1,869.
The real estate sector saw 14% expansion in trade volume to 110.76mn equities but on 19% contraction in value to QR97.58mn and 10% in deals to 5,646.