The Qatar Exchange (QE) Index gained 23.93 points, or 0.21%, during the trading week, to close at 11,367.31 points. Market capitalisation decreased by 0.5% to reach QR634.5bn as compared to QR637.7bn at the end of the previous week. Of the 43 listed companies, 27 companies ended the week higher, while 15 fell and 1 remained unchanged. Zad Holding (ZHCD) was the best performing stock for the week, with a gain of 12.93% on 0.1mn shares traded. On the other hand, Mesaieed Petrochemical Holding Co (MPHC) was the worst performing stock with a decline of 8.38% on 10.6mn shares traded.

During the week, the QE announced the results of its semi-annual index review. According to the announcement, Al Khalij Commercial Bank (KCBK) and Medicare Group (MCGS) will replace National Leasing or Alijarah Holding (NLCS) and Widam Food Co (WDAM) in the QE Index on April 01, 2014. The index is rebalanced twice a year. As per index rules, the maximum weight any stock can have in the QE index is 15% (and excess weight will be allocated to the remaining stocks proportionately). On the international front, the key news was the further scaling down of bond purchases by the US Federal Reserve and potential interest rate increases in 2015. The US Fed decided to cut bond purchases by a further $10bn per month. This is the third time in a row that the central bank has tightened its stimulus efforts. The latest reduction brings the Fed’s monthly bond-buying down to $55bn from $85bn last year.

Trading value during the week decreased by 15.2% to reach QR3.28bn vs QR3.87bn in the prior week. The Industrials sector led the trading value during the week, accounting for 35.1% of the total equity trading value. Barwa Real Estate Company (BRES) was the top value traded stock during the week with total traded value of QR476.3mn. Trading volume declined by 10.7% to reach 72.6mn shares vs 81.4mn shares in the prior week. The number of transactions fell by 3.4% to reach 44,274 transactions versus 45,854 transactions in the prior week. The Real Estate sector led the trading volume, accounting for 35.1%. BRES was also the top volume traded stock during the week with total traded volume of 13.2mn shares.

Foreign institutions turned bearish for the week with net selling of QR43.6mn vs net buying of QR20.5mn in the prior week. Qatari institutions remained bullish with net buying of QR59.7mn vs net buying of QR577.6mn the week before. Foreign retail investors turned bullish for the week with net buying of QR42.3mn vs net selling of QR59.5mn in the prior week. Qatari retail investors remained bearish with net selling of QR58.3mn vs QR538.5mn the week before. Thus far in 2014, the QE has already witnessed net foreign portfolio investment inflow of $736mn.