The Qatar Exchange (QE) Index increased by 77.56 points, or 0.91%, during the week, to close at 8,583.78 points. Market capitalisation rose by 0.63% to reach QR469.3 billion as compared to QR466.4 billion at the end of the previous week. Of the 42 listed companies, 19 companies ended the week higher, 22 fell and 1 remained unchanged. Qatar General Insurance and Reinsurance (QGRI) was the best performing stock with a gain of 10.00%; the stock is down 4.35% year-to-date (YTD), however. Doha Insurance (DOHI) was the top decliner, down 11.07%; the stock is now down 1.85% YTD.

Our top pick, Industries Qatar (IQCD), is the best performing stock (in terms of price performance) YTD on the QE. IQCD has appreciated 12.89% this year versus a 5.94% increase in the QE All Share Index. IQCD benefited from buying interest as investors looked to participate in the company’s upcoming QR8.50 per share cash dividend and 10% bonus issue. We continue to remain bullish on IQCD.

Three major Qatari firms announced 2012 results during the week. Firstly, Qatar Gas Transport Co. or Nakilat (QGTS) reported better- than-expected results for the fourth quarter of 2012 with its net income gaining 12% sequentially. QGTS also surprised investors with a healthy cash dividend of QR1.00 per share for 2012, which was up almost 18% from 2011. As a result, Nakilat’s shares rallied 5.98% for the week. Milaha (QNNS), which owns a 30% stake in Nakilat, also rallied on the back of QGTS’ results. On Thursday, Milaha reported flat quarter-on-quarter (QoQ) net profit for the last quarter of 2012. However, the company exceeded our expectations regarding cash dividends, announcing QR3.75 per share for 2012 (as compared to our estimate of QR3.50). On the other hand, Barwa Real Estate (BRES), while reporting strong QoQ growth in earnings, declined 7.58% for the week. Lack of dividend upside, with BRES announcing flat QR1.00 per share cash dividends for 2012, likely led to selling pressure.

On the regional front, Kuwait was the top performing market, with a gain of 2.4%, while Saudi Arabia was flattish at 0.4%.

Trading value during the week increased by 45.32% to reach QR1,510.9 million, as compared to QR1,039.7 million in the prior week (4 trading days). The Industrials sector led the trading value during the week, accounting for 36.95% of the total equity trading value.

Equity trading volume increased by 77.67% to reach 35.7 million shares, as against 20.1 million shares in the prior week. The number of transactions rose by 35.49% to reach 16,108 transactions versus 11,889 transactions in the prior week. The Real Estate sector led the trading volume, accounting for 32.15% of the total.

Foreign institutions remain bullish for the week with net buying of QR150.3 million vs. QR128.7 million in the prior week. Foreign individuals bought QR7.9 million versus net selling of QR5.9 million in the prior week. Qatari institutions turned slightly bullish with net buying of QR4.1 million versus net selling of QR16.6 million in the prior week. Qatari individuals have been the primary sellers in the month of March with net selling of QR162.3 million as compared to QR106.2 million in the prior week.