Institutional investors were increasingly net buyers as the Qatar Stock Exchange (QSE) displayed strong bullish sentiments this week which saw global credit rating agency Moody’s upgrade outlook on many corporate entities to “stable” from “negative”.
The Islamic equities were seen outperforming the market and other indices this week which saw Qatar Islamic Bank (QIB) report net profit of QR1.33bn in the first half (H1) of this year.
Insurance and industrials witnessed higher than average demand, leading to a 1.1% increase in the 20-stock Qatar Index this week which saw Masraf Al Rayan register January-June net profit of QR1.07bn.
The market witnessed a total volume of 45,387 QATR (Masraf Al Rayan sponsored exchange traded fund or ETF valued at QR0.98mn trade across 29 transactions and as many as 16,287 QETF (Doha Bank sponsored ETF) valued at QR1.51mn change hands across 19 deals this week which saw QIIB record QR484mn net profit in H1, 2018.
Investors’ penchant for large and microcap equities was visible more this week which saw Doha Bank report a net profit of QR471mn in H1 this year.
The Total Return Index gained 1.1%, All Share Index 0.74% and Al Rayan Islamic Index (Price) 1.31% this week which saw United Development Company's first half net profit at QR279mn.
The insurance index soared 2.35%, industrials (1.66%), banks and financial services (0.97%) and consumer goods (0.29%); while realty declined 1.11%, transport (0.58%) and telecom (0.07%) this week which witnessed Al Khaliji's net profit at QR335mn in the first six months of this year.
The market breadth was in balance with equal number of gainers and losers this week which saw Qatar receive total foreign investments of QR676.4bn; while its total outward investments were QR402.5bn at the end of the first quarter this year.
However, local retail investors were seen increasingly profit takers this week which saw no trading of government bonds and treasury bills.
Major gainers included Qatar Insurance, Industries Qatar, Zad Holding, Dlala, QIB, Masraf Al Rayan, Vodafone Qatar and Gulf Warehousing this week which saw Vodafone Qatar and Dlala dominate the trading ring in volume and value.
Nevertheless, Ezdan, Gulf International Services, Aamal Company, Ooredoo, Nakilat and Al Khaliji were among the losers this week which saw telecom and banking sectors together accounted for more than 54% of total trade volume.
The telecom sector accounted for 31% of the total trading volume, banking and financial services (23%), transport (14%), real estate (13%), industrials (9%), and consumer goods and insurance (5% each) this week.
The banks and financial sector’s share in total trade turnover was 39%, consumer goods (14%), industrials and telecom (13% each), transport (9%), realty (7%) and insurance (6%) this week.
Non-Qatari institutions’ net buying increased significantly to QR66.19mn compared to QR48.56mn a week ago.
Domestic funds’ net buying grew considerably to QR58.11mn against QR10.45mn the week ended July 13.
Non-Qatari individuals’ net profit booking fell marginally to QR3.45mn compared to QR5.07mn the previous week.
However, local retail investors’ net selling shot up substantially to QR120.85mn against QR53.94mn a week ago.
Total trade volume fell 2% to 31.99mn shares; while value rose 16% to QR907.98mn despite 5% lower transactions at 13,481.
The real estate sector’s trade volume plummeted 20% to 4.2mn equities, value by 18% to QR59.74mn and deals by 11% to 1,787.
There was 13% plunge in the telecom sector’s trade volume to 9.97mn stocks and 18% in value to QR117mn but on 5% jump in transactions to 1,713.
The industrials sector’s trade volume was down 5% to 2.78mn shares, whereas value rose 2% to QR117.83mn despite 12% lower deals at 2,712.
However, the consumer goods sector reported 59% surge in trade volume to 1.69mn equities, 71% in value to QR127.56mn and 30% in transactions to 1,488.
The transport sector’s trade volume soared 45% to 4.35mn stocks, value by 46% to QR79.71mn and deals by 16% to 1,267.
The market witnessed 5% rise in the insurance sector’s trade volume to 1.59mn shares and 30% in value to QR56.42mn but on 38% shrinkage in transactions to 673.
The banks and financial services sector’s trade volume was up 1% to 7.4mn equities and value by 27% to QR349.73mn; while deals fell 7% to 3,841.