Buying interests in five of the seven sectors could not greatly influence the Qatar Stock Exchange (QSE), which was the worst performer among the Gulf bourses during the week and the year ended 2016.
Although foreign institutions were seen increasingly net buyers, the QSE made a wee 0.08% gain during the week, which saw Global view that Qatar’s oil output is slated to be lower by more than 11% year-on-year in 2017, in line with the decision of Organisation of the Petroleum Exporting Countries (Opec) and non-Opec members to cut production, effective from January 1, 2017.
Abu Dhabi surged 2.47%, Bahrain (1.8%), Saudi Arabia (1.73%), Kuwait (1.27%), Muscat (0.81%) and Dubai (0.39%) during the week which saw global insurance credit rating agency A M Best affirm Qatar Insurance and its main subsidiaries QIC International and Qatar Re's financial strength rating FSR at 'A (Excellent)' and the long-term issuer credit ratings at "a" with "stable" outlook.
The QSE saw its year-to-date gains at mere 0.07% although telecom saw their stocks vault 22%, insurance 10%, transport 5%, and banking and industrials (4% each); while real estate and consumer goods fell 4% and 2% respectively.
In comparison, Dubai witnessed gains of 12.06%, Muscat 6.96%t, Abu Dhabi 5.55%, Saudi Arabia 4.32%, Kuwait 2.37% and Bahrain 0.38%.
Insurance, consumer goods, industrials and transport sectors witnessed stronger buying on the QSE during the week which witnessed Ezdan Mall Company, one of the Ezdan Holding Group subsidiaries, announce the opening of Carrefour Hypermarket in Al Wakrah's Ezdan Mall, located opposite the Al Wakra Hospital.
Islamic stocks were seen gaining faster than the conventional scrips during the week which saw Kamco view that speculations are rife that oil price could reach $60 per barrel in 2017 and $70 in the subsequent year but price of more than $50 a barrel would trigger additional output from US shale producers, pushing market "rebalancing" to late 2017.
Small and microcap equities witnessed considerable buying interests during the week which saw the Ministry of Development Planning and Statistics disclose that foreign direct investment into Qatar amounted to QR137.2bn in 2015 with other American countries, European Union, the US and Gulf countries being the principal sources.
Trade turnover declined amidst increase in volumes during the week which saw real estate, banking and telecom sectors together constituted more than 85% of the total volumes.
In volumes, realty sector constituted 35% of the total, followed by banks and financial services (32%), telecom (19%), industrials (7%), consumer goods (4%), transport (3%) and insurance (1%) during the week which saw which saw real estate and telecom register faster expansion in trade volumes and value.
In value, banks and financial services’ share was 33%, followed by real estate (27%), industrials (13%), telecom (10%), consumer goods (8%), transport (7%) and insurance (3%) during the week, which saw Vodafone Qatar and Ezdan dominate the trading ring in volumes and value.
Opening the week weak at 10,395 points, the market weakened for the next two days to reach a low of 10,305 points, after which there was sustained increase for the next two days, a sharp one on Thursday, but overall it added only nine points during the week.
The 20-stock Total Return Index was up 0.08%, All Share Index (comprising wider constituents) by 0.22% and Al Rayan Islamic Index by 0.38% during the week.
Insurance sector saw its index gain 2.54%, consumer goods (1.4%), industrials (1.35%), transport (1.27%) and banks and financial services (0.11%), while realty and telecom fell 2.49% and 0.64% respectively during the week.
Market capitalisation expanded more than QR1bn or 0.25% to QR563.47bn with small, micro, large and midcap equities gaining 2.28%, 1.63%, 0.74% and 0.34% respectively during the week.
Large cap stocks have reported 3.25% gains year-to-date, whereas small, mid and microcap stocks fell 10.64%, 6.31% and 2.79% respectively.
Of the 44 stocks, as many as 28 gained, while 13 fell and three were unchanged. As many as seven of the 13 banks and financial services, six each of the nine consumer goods and the eight industrials, and three each of the five insurers, the four real estate and the three transport stocks settled higher during the week.
More than 65% of the stocks extended gains with major movers being Commercial Bank, Qatar First Bank, Qatar Insurance, Mazaya Qatar, Qatar National Cement, Qatar Electricity and Water, United Development Company, Zad Holding, Widam Food, Qatar General and Reinsurance and Al Khaleej Takaful during the week.
Nevertheless, QNB, Gulf International Services, Ezdan, Ooredoo, Vodafone Qatar, Medicare Group, Qatar Islamic Insurance and Medicare Group were among the losers during the week.
Foreign institutions’ net buying increased to QR86.05mn compared to QR75.18mn the week ended December 22.
Local retail investors’ net profit booking weakened considerably to QR64.81mn against QR148.58mn the previous week.
However, domestic institutions turned net sellers to the tune of QR12.22mn compared with net buyers of QR76.84mn the week ended December 22.
Non-Qatari individual investors’ net profit booking strengthened to QR9.22mn against QR3.55mn the previous week.
Total trade volume rose 31% to 41.01mn shares, while value declined 13% to QR970.18mn and transactions by 11% to 13,506 during the week.
The real estate sector witnessed 92% surge in trade volume to 14.26mn equities, 88% in value to QR266.7mn and 15% in deals to 2,746.
The telecom sector’s trade volume soared 61% to 7.7mn stocks, value by 33% to QR94.13mn and transactions by 20% to 1,236.
There was 17% increase in the transport sector’s trade volume to 1.33mn shares, 60% in value to QR67.9mn and 1% in deals to 842.
The banks and financial services sector’s trade volume was up 3% to 13.03mn equities, while value shrank 46% to QR321.34mn and transactions by 28% to 4,432.
However, the insurance sector reported 34% plunge in trade volume to 0.49mn stocks, 36% in value to QR25.37mn and 4% in deals to 476.
The consumer goods sector’s trade volume tanked 14% to 1.44mn shares, whereas value shot up 45% to QR72.81mn and transactions by 24% to 1,452.
The market witnessed 3% decline in the industrials sector’s trade volume to 2.76mn equities, 26% in value to QR121.92mn and 26% in deals to 2,322.
In the debt market, there was no trading of treasury bills and government bonds during the week.