International factors such as MSCI decision and those relating to global energy front dampened sentiments on the Qatar Stock Exchange, which once touched as high as more than 10,400 levels this week.
Foreign institutions’ substantially weakened buying interests were visible this week which saw the International Monetary Fund (IMF) say significant fiscal and external buffers enabled Qatar to successfully absorb the adverse shocks from the 2014-16 decline in oil prices and the diplomatic rift.
The buying interests in banks and financial services notwithstanding, the 20-stock Qatar Index lost 154 points or 1.49% this week which saw Qatar Aluminium Manufacturing Company’s (Qamco) initial public offering oversubscribe 2.5 times. Islamic stocks were seen declining faster than the other indices on the market, which showed about 20% gains year-to-date.
Non-Qatari individuals turned bullish and there was weakened net selling by local retail investors and domestic institutions this week which saw as many as 26,300 sovereign bonds valued at QR2.59bn trade across five deals.
Market capitalisation eroded about QR5bn or 0.83% to QR576.63bn this week mainly on account of mid, micro and small cap equities.
Large and midcap segments saw 31.03% and 14.73% gains; whereas small and microcaps declined 10.37% and 6.07% respectively.
The market witnessed a total volume of 23,589 QATR (Masraf Al Rayan sponsored exchange traded fund or ETF) valued at QR0.57mn trade across 43 transactions and as many as 6,068 QETF (Doha Bank sponsored ETF) valued at QR0.62mn change hands across 11 deals this week which saw global index compiler MSCI decide to take Doha Bank off from its Qatar Index with effect from December 3, 2018.
The Total Return Index shrank 1.49%, Al Rayan Islamic Index (Price) by 0.94% and All Share Index by 1.77% this week which saw QTerminals, the recently-established operator of the first phase of Hamad Port in Qatar, is scouting for opportunities in the Black Sea region as part of its strategy to internationalise its footprint.
The consumer goods index tanked 7.4%, industrials (2.3%), telecom (2.19%), insurance (0.82%), transport (0.78%) and realty (0.01%); while banks and financial services rose 0.37% this week which saw QTerminals reach 2mn containers and 5mn tonnes of general cargo at October end, thus tripling the levels since the beginning of the unjust diplomatic and trade embargo in June 2017 by Saudi-led quartet.
As much as 80% of the stocks were in the red with major losers being Woqod, Doha bank, Industries Qatar, Medicare Group, Al Khaleej Takaful, Mesaieed Petrochemical Holding, Vodafone Qatar, Ooredoo and Milaha; even as Gulf International Services, Qatar Industrial Manufacturing, QNB and Barwa were among the gainers this week which saw banking and real estate stocks constitute more than 58% of the total trading volume.
The banks and financial services constituted 33% of the total volume, realty (25%), industrials (11%), telecom, consumer goods and transport (9% each) and insurance (3%); while in terms of trade turnover, consumer goods sector’s share was 32%, banks and financial services (30%), real estate (15%), industrials (13%), transport (4%), telecom (3%) and insurance (2%) this week which saw Woqod and Barwa dominate the trading ring in volume and value.
Foreign institutions’ net buying decreased significantly to QR98.97mn compared to QR359.38mn the week ended November 8.
However, non-Qatari individuals turned net buyers to the tune of QR20.73mn against net sellers of QR12.06mn the previous week.
Local retail investors’ net profit booking declined substantially to QR95.45mn compared to QR266.79mn a week ago.
Domestic funds’ net selling also weakened considerably to QR24.13mn against QR80.41mn the week ended November 8.
Total trade volume fell 8% to 26.98mn shares, while value rose 6% to QR1.17bn despite 1% lower transactions at 19,833 this week.
The telecom sector’s trade volume plummeted 33% to 2.43mn equities, value by 57% to QR40.19mn and deals by 45% to 1,317.
The industrials sector reported 25% plunge in trade volume to 3.02mn stocks, 12% in value to QR157.24mn and 13% in transactions to 3,014.
The real estate sector’s trade volume tanked 13% to 6.76mn shares, while value grew 11% to QR172.4mn and deals by 7% to 3,724.
The banks and financial sector saw 6% decline in trade volume to 8.97mn equities, 28% in value to QR351.72mn and 7% in transactions to 6,213.
The insurance sector’s trade volume was down 3% to 0.71mn stocks, value by 10% to QR19.94mn and deals by 14% to 469.
However, the consumer goods sector’s trade volume more than doubled to 2.56mn shares and value more than tripled to QR377.31mn on more than doubled transactions to 4,149.
There was 9% jump in the transport sector’s trade volume to 2.53mn equities and 7% in value to QR52.4mn but on 38% contraction in deals to 947.
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