The cabinet nod allowing the listed companies to increase the foreign ownership limit (FOL) up to 100% had significantly lifted the sentiments in the Qatar Stock Exchange (QSE) this week.
Foreign institutions’ substantial increase in net buying helped the 20-stock Qatar Index soar 258 points or 3.39% this week which saw QNB report net profit of QR3.31bn in the first three months of this year.
The increased net buying interests of the Gulf institutions also had its role in lifting the sentiments this week which saw Qatar Islamic Bank (QIB) report net profit of QR750.03mn in January-March 2021.
According to the QNA, the draft law includes the amendment of Article (7) of the law so that non-Qatari investors can own up to 100% of the capital of Qatari shareholding companies listed on the QSE.
“The decision to raise the percentage of foreign ownership in the shares of Qatari companies will positively affect the liquidity and trading in the market," Qatar Stock Exchange chief executive Rashid bin Ali al-Mansoori said.
The banking and financial services sector witnessed higher than average demand this week which saw al-Mansoori highlight that one or two more entities are expected to be listed in the venture market for the small and medium enterprises in this year.
Both Arab individuals and institutions were bullish, albeit at lower levels, this week which saw Woqod report net profit of QR253mn in the first quarter of this year.
However, domestic funds were increasingly net sellers and the local retail investors turned bearish this week which saw a total of 894,877 Masraf Al Rayan sponsored exchange traded fund QATR valued at QR2.26mn change hands across 121 transactions.
The Gulf individuals were increasingly net profit takers this week which saw a total of Doha Bank sponsored exchange traded fund QETF worth QR4.26mn trade across 50 deals.
Market capitalisation saw more than QR11bn or 1.8% increase to QR627.08bn, mainly on mid and small cap segments this week which saw Al Faleh make an impressive gain on its foray in the venture market of the QSE.
The banks and financial services index soared 4.22%, consumer goods and services (1.82%), industrials (1.32%), insurance (0.97%) and realty (0.21%); while telecom and transport declined 2.35% and 1.02% respectively this week which saw Qatar’s inflation rise in March 2021 mainly on upward pressure from the transport sector, which saw a double-digit jump in retail price of fuels.
Major gainers included Al Khaleej Takaful, Commercial Bank, QIB, Masraf Al Rayan, Qatar First Bank, Woqod, Industries Qatar and Qamco; while Qatar National Cement, Gulf International Services, Vodafone Qatar, Qatar Industrial Manufacturing, Ooredoo, Aamal Company, Ezdan, Milaha and Nakilat were among the losers this week which saw the increasing prospects of the logistics sector as Hamad Port handled container volume of more than 5mn TEUs or twenty foot equivalent units since the start of operations.
Foreign institutions’ net buying increased significantly to QR382.67mn against QR38.97mn a week ago.
The Gulf institutions’ net buying grew considerably to QR30.69mn compared to QR9.66mn the previous week.
The Arab individuals turned net buyers to the tune of QR1.63mn against net sellers of QR0.64mn the week ended April 8.
The Arab funds were net buyers to the extent of QR1.01mn compared with net sellers of QR0.42mn a week ago.
However, local retail investors turned net sellers to the tune of QR183.17mn against net buyers of QR16.42mn the previous week.
The domestic funds’ net selling grew considerably to QR173.7mn compared to QR22.86mn the week ended April 8.
The Gulf individuals’ net profit booking grew markedly to QR49.63mn against QR42.19mn a week ago.
The foreign individuals were net sellers to the extent of QR9.47mn compared with net buyers of QR1.29mn the previous week.
A total of 1.43bn shares valued at QR3.27bn changed hands across 59,225 transactions this week.
The banks and financial services sector saw as many as 309.01mn equities worth QR1.4bn change hands across 22,679 deals.
A total of 578.45mn industrials stocks valued at QR887.08mn changed hands across 15,461 transactions.
The consumer goods and services sector witnessed a total of 289.4mn shares worth QR430.7mn trade across 8,752 deals.
There was a total of 171.48mn real estate equities valued at QR302.56mn change hands across 6,590 transactions.
The telecom sector witnessed a total of 29.71mn stocks worth QR70.24mn trade across 2,143 deals.
In the case of transport, the sector saw as many as 24.72mn shares valued at QR95.63mn changed hands across 2,014 transactions.
A total of 23.26mn insurance equities worth QR82.09mn traded across 1,586 deals.