By Santhosh V. Perumal/Business Reporter

Qatar Stock Exchange, which had only two trading sessions during the week in view of Eid holidays, was overall in the negative turf with its key index settling below the 12,000 level.

Foreign institutions were seen bearish and their domestic counterparts’ net buying weakened during the week which saw global credit rating agency Moody's say that Qatar’s banking sector may witness some pressure on lending capacity and intensified competition in deposit mobilisation with the central bank stipulating loan-to-deposit ratio of up to 100%, starting from 2017.

Telecom witnessed the maximum selling pressure as the 20-stock Qatar Index lost 0.54% during the week which saw an international credit rating agency Fitch upgrade Nakilat's $300mn junior bonds to ‘A’ from ‘A-’ and affirm ‘A+’ rating on $850mn senior bonds with both carrying “stable” outlook.

“Although the market is expected to be range-bound in view of the summer holidays, positive triggers will depend on when the heavyweight Industries Qatar (IQ) announce its results next month,” an analyst said.

Otherwise, global uncertainties have subdued with Greece repaying the arrears to the International Monetary Fund and Iran reaching a nuclear deal but what the markets now wait for is the signals from Washington on the Fed interest rates in the coming months, he added.

Non-Qatari individual investors’ lower buying interests also played its role in dampening the market during the week which witnessed another global credit rating agency Standard and Poor's view that the Gulf Cooperation Council insurance sector, which is already suffering from lack of scale, may cost pressures build up in view of the recently increased regulatory requirements.

The index that tracks Shariah-principled stocks was, however, seen gaining against declines in the other indices in the market during the week.

The 20-stock Total Return Index fell 0.54% and All Share Index (comprising wider constituents) by 0.33%; while Al Rayan Islamic Index was up 0.14% during the week which witnessed the overall trade volumes decline (in view of holidays).

Telecom stocks shrank 2.53%, industrials (0.62%), banks and financial services (0.49%), transport (0.42%) and realty (0.02%); while consumer goods and insurance gained 1.45% and 0.99% during the week which saw transport, industrials, real estate and consumer goods counters report the maximum shrinkage in volumes.

Of the 43 stocks, 18 gained, while 20 declined and three were unchanged. Another two were not traded during the week which saw banking, real estate and industrials sectors together constitute more than 77% of the overall trade volumes.

Nine of the 12 banks and financial services; four of the nine industrials; two each of the eight consumer goods, the four realty and the two telecom; and one of the three transport sector equities close lower during the week.

Major losers included QNB, IQ, Ooredoo, Vodafone Qatar, Gulf International Services, Commercial Bank, Qatar Islamic Bank, Masraf Al Rayan, Alijarah Holding, Nakilat, Mazaya Qatar, Ezdan and Salam International Investment; even as Barwa. Doha Bank, Qatar Insurance, United Development Company, Mannai Corporation and Al Meera bucked the trend during the week.

Market capitalisation fell 0.42% or about QR3bn to QR633.88bn during the week.

Foreign institutions turned net sellers to the tune of QR29.78mn against net buyers of QR11.89mn the week ended July 16.

Domestic institutions’ net buying declined to QR12.75mn compared to QR30.9mn the previous week.

Non-Qatari retail investors’ net buying weakened to QR0.91mn against QR10.95mn the week ended July 16.

However, local retail investors turned net buyers to the extent of QR16.07mn compared with net profit takers of QR53.81mn the previous week.

Total trade volume fell 64% to 6.36mn shares, value by 58% to QR302.07mn and transactions by 52% to 5,531 during the week.

The transport sector saw 87% plunge in trade volume to 0.09mn equities, 78% in value to QR4.48mn and 64% in deals to 143.

The real estate sector’s trade volume plummeted 78% to 1.85mn stocks, value by 78% to QR51.63mn and transactions by 65% to 953.

There was 72% shrinkage in the industrials sector’s trade volume to 0.91mn shares, 63% in value to QR64.82mn and 60% in deals to 1,296.

The telecom sector’s trade volume tanked 67% to 0.52mn equities, value by 61% to QR16.74mn and transactions by 47% to 494.

The market witnessed 47% decline in the insurance sector’s trade volume to 0.17mn stocks, 52% in value to QR14.59mn and 45% in deals to 179.

The banks and financial services sector’s trade volume was lower by 22% to 2.15mn shares, value by 35% to QR117.1mn and transactions by 41% to 1,825.

Although the consumer goods sector’s trade volume was flat at 0.68mn equities, there was 7% fall in value to QR32.69mn and 21% in deals to 641.

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