QSE surges 531 points on slowdown in Covid-19-related fatalities
April 10 2020 08:33 PM

Slowdown in Covid-19-related fatalities in the key hotspots across the globe had its positive influence in the Qatar Stock Exchange (QSE), whose key barometer surged 531 points and capitalisation swelled QR30bn.
Foreign institutions’ increased buying interests and the Gulf funds’ weakened net selling pressure had lifted the sentiments in the bourse this week as investors also had renewed hopes of solution to end oil war. The meeting between Russia and the Opec+ had taken place after the close of the week for the QSE.
Local retail investors and domestic institutions were otherwise increasingly net profit takers this week which saw A M Best, an global insurance rating agency, affirm Qatar Islamic Insurance's (QISI) financial strength rating of B++ (Good) and the long-term issuer credit rating of “bbb+”.
Arab individuals and funds were seen bearish this week which saw Qatar's economy witness a marginal slowdown during the fourth quarter of 2019 with the inflation-adjusted gross domestic product edging down 0.6% year-on-year.
An across the board buying – notably within industrials and telecom – lifted the 20-stock Qatar Index 6.28% this week which saw Doha's commercial banks witness more than 13% year-on-year jump in domestic credit to QR1tn at the end of February 2020.
Foreign and the Gulf individuals were seen net profit takers this week which saw four of the five trading sessions in the bullish run.
Opening the week stronger, the market gained for the next three days to reach a high of 9,030 points on Wednesday, after which it declined the next day to finally settle 531 points higher.
The industrials sector index shot up 9.68%, telecom (7.24%), real estate (5.44%), consumer goods and services (5.42%), banks and financial services (5.41%), insurance (5.04%) and transport (4.94%) this week which saw as many as 2.43mn Masraf Al Rayan sponsored exchange traded funds QATR worth QR4.84mn change hands across 108 transactions.
Trade turnover and volumes were on the increase this week which saw a total of 10,900 Doha Bank sponsored QETF worth QR98,391 changed hands across 10 deals.
About 96% of the traded constituents were in the red with major losers being QNB, Qatar Islamic Bank, Commercial Bank, QIIB, Masraf Al Rayan, al khaliji, Alijarah Holding, Dlala, Islamic Holding Group, Qatar German Company for Medical Devices, Salam International Investment, Woqod, Al Meera, Mannai Corporation, Baladna, Qatari Investors Group, Industries Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Qamco, Ezdan, United Development Company, Barwa, Vodafone Qatar, Nakilat and Milaha.
Market capitalisation saw 6.36% expansion to QR508.57bn mainly lifted by large and midcap segments this week which saw Shariah stocks seen gaining higher than the main barometer.
The Total Return Index soared 6.28%, Al Rayan Islamic Index by 7.91%, and All Share Index by 6.21% this week which saw industrials and real estate sectors together constitute about 68% of the total trading volume.
The industrials sector accounted for 42% of the total volume, realty (26%), consumer goods and services (12%), banks and financial services (11%), telecom and transport (4% each), and insurance (1%).
In value, banks and financial services’ share was 31%, industrials (29%), consumer goods and real estate (13% each), telecom (7%), transport (6%) and insurance (2%) this week.
Foreign funds’ net buying increased significantly to QR172.99mn against QR27.92mn the week ended April 2.
The Gulf institutions’ net selling declined noticeably to QR2.91mn compared to QR11.35mn the previous week.
However, local retail investors' net selling grew substantially to QR142.91mn against QR24.58mn a week ago.
Domestic funds’ net selling rose marginally to QR18.02mn compared to QR17.23mn the week ended April 2.
The Arab individuals turned net sellers to the tune of QR5.96mn against net buyers of QR1.74mn the previous week.
Foreign individuals were also net sellers to the extent of QR1.8mn compared with net buyers of QR10.29mn a week ago.
The Gulf retail investors turned net profit takers to the tune of QR0.83mn against net buyers of QR2mn the previous week.
The Arab institutions turned net sellers to the extent of QR0.28mn compared with net buyers of QR0.94mn a week ago.
Total trading volume rose 58% to 790.06mn shares, value by 4% to QR1.39bn and transactions by 23% to 46,793.
The industrials sector’s trade volume more than doubled to 328.93mn equities and value almost doubled to QR406.01mn on almost doubled deals to 14,874.
There was 79% surge in the real estate sector’s trade volume to 205.15mn stocks, 37% in value to QR180.38mn and 58% in transactions to 6,052.
The transport sector’s trade volume shot up 70% to 32.21mn shares and value by 74% to QR78.78mn, while deals more than doubled to 2,449.
The insurance sector reported 28% expansion in trade volume to 11.54mn equities, 29% in value to QR22.53mn and 2% in transactions to 1,026.
The consumer goods sector’s trade volume increased 22% to 93.66n stocks, value by 20% to QR151.2mn and deals by 19% to 3,067.
However, the banks and financial services sector saw 26% shrinkage in trade volume to 88.06mn shares, 36% in value to QR425.13mn and 14% in transactions to 13,057.
The telecom sector’s trade volume tanked 12% to 30.52mn equities, value by 23% to QR92.12mn and deals by 18% to 4,268.

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