By Santhosh V Perumal

Business Reporter

The Qatar Stock Exchange yesterday opened the week weak with its key index losing a sizeable 108 points, mainly dragged by insurance, industrials and banking stocks.

Profit-booking pressure from foreign and domestic institutions led the 20-stock Qatar Index (based on price data) to shed 0.84% to 12,640.67 points as volumes also shrank.

Large and small cap stocks witnessed more-than-average selling pressure on the bourse, which is up 21.78% year-to-date.

The index that tracks Shariah-principled stocks was seen melting much slower than the other indices in the market.

The Total Return Index shed 0.84% to 18,853.44 points, the All Share Index by 0.77% to 3,229.52 points and the Al Rayan Islamic Index by 0.17% to 4,324.25 points.

Market capitalisation fell 0.83%, or about QR6bn, to QR691.14bn with large, small and mid cap stocks melting 0.94%, 0.85%, 0.41% respectively.

Insurance stocks tanked 1.26%, followed by industrials (1.14%), banks and financial services (0.92%), real estate (0.61%) and consumer goods (0.37%). Telecom and transport rose 0.59% and 0.29% respectively.

As much as 65% of the traded stocks were in the red with major losers being QNB, Industries Qatar, Qatar Islamic Bank, Commercial Bank, Gulf International Services, Ezdan, Mazaya Qatar, United Development Company and Salam International Investment.

However, Vodafone Qatar, Ooredoo, Barwa and Gulf Warehousing were seen bucking the trend.

Domestic institutions turned net sellers to the tune of QR12.11mn against net buyers of QR1.92mn the previous trading day.

Foreign institutions were also net profit-takers to the extent of QR17.09mn compared with net buyers of QR25.96mn last Thursday.

However, Qatari retail investors turned net buyers to the tune of QR13.74mn against net sellers of QR19.57mn on December 4.

Non-Qatari individual investors were also net buyers to the extent of QR15.46mn compared with net sellers of QR8.31mn the previous trading day.

Total trade volume fell 41% to 5.65mn shares, value by 48% to QR291.69mn and transactions by 37% to 3,628.

The telecom sector saw its trade volume plummet 69% to 0.59mn equities, value by 69% to QR14.22mn and deals by 62% to 203.

The banks and financial services sector reported a 52% plunge in trade volume to 1.4mn stocks, 58% in value to QR126.04mn and 48% in transactions to 1,039.

The consumer goods sector’s trade volume tanked 42% to 0.7mn shares, value by 43% to QR28.36mn and deals by 40% to 344.

The real estate sector witnessed a 30% shrinkage in trade volume to 1.54mn equities, 35% in value to QR38.37mn and 19% in transactions to 754.

The industrials sector’s trade volume was down 9% to 0.77mn stocks, value by 38% to QR48.55mn and deals by 27% to 873.

However, there was a 33% surge in the insurance sector’s trade volume to 0.12mn shares and 27% in value to QR8.13mn, but on a 25% decline in transactions to 133.

The transport sector’s trade volume expanded 6% to 0.53mn equities and value by 13% to QR28.01mn while deals shrank 15% to 282.

In the debt market, there was no trading of treasury bills and government bonds.

Al Khaliji financing pipeline JV for Doha reservoirs project

Al Khaliji has decided to extend finance to a joint venture between Boom Construction Company and CAT International Qatar for the development of transmission pipelines for mega reservoirs project around Doha.

The total value of the project exceeds QR900mn, said a bank spokesman.

The project was recently awarded by Qatar General Electricity and Water Corporation (Kahramaa) and is considered one of the major and significant infrastructure ventures.

Al Khaliji’s financing comes in line with the bank’s strategy to support the roll out of major infrastructure projects and accommodating growth requirements of their preferred customers.

“We are proud of our continued contribution to the enhancement of Qatar’s infrastructure. The financing of such projects, in collaboration with skilled local and international companies, is a key pillar of our bank’s mid-term strategy. We are keen to broaden our financing offerings and play an instrumental role in Qatar’s progression,” Fahad al-Khalifa, al khaliji Group CEO said.

Al Khaliji has long been involved in supporting projects that cater to the needs of infrastructure sector in the country. Recently, it extended financing for contract awarded to a joint venture between Boom Construction Company and Six Construct Qatar. The contract covered the construction and development of Al Rayyan Road (Project 7) stretching from West of New Rayyan roundabout to East of Bani Hajer roundabout, together with the construction and upgrade of associated side roads and service roads.