The Qatar Stock Exchange (QSE) Index lost 337.97 points, or 3.11%, during the week to close at 10,522.21. Market capitalisation decreased by 3.1% to QR552.9bn versus QR570.5bn at the end of the previous week. Of the 43 listed companies, six ended the week higher, while 36 fell and two remained unchanged. Qatar General Insurance & Reinsurance Co (QGRI) was the best performing stock for the week with a gain of 2.9% on 12,344 shares traded. On the other hand, Gulf International Services (GISS) was the worst performing stock with a decline of 9.1% on 2.4mn shares traded.
QNB Group (QNBK), Industries Qatar (IQCD) and Masraf Al Rayan (MARK) were the primary contributors to the weekly index loss. QNBK was the biggest contributor to the index’s weekly loss, shedding off 64.2 points from the index. IQCD was the second biggest contributor, losing 58.1 points from the index. MARK pushed the index down by 40.5 points. On the other hand, Milaha (QNNS) added 3.5 points to the Index, while Qatar Electricity & Water Co (QEWS) contributed 2.6 points in the green.
Trading value during the week decreased by 37.7% to reach QR954.8mn versus QR1.5bn in the prior week. The banks and financial services sector led the trading value during the week, accounting for 39.3% of the total trading value. The industrials sector was the second biggest contributor to the overall trading value, accounting for 26.0% of the total trading value. GISS was the top value traded stock during the week with total traded value of QR128.0mn.
Trading volume dropped by 39.6% to reach 22.5mn shares versus 37.3mn in the prior week. The number of transactions rose by 8.9% to reach 16,854 versus 15,482 in the prior week. The banks and financial services sector led the trading volume, accounting for 28.9%, followed by the Transportation sector, which accounted for 23.7% of the overall trading volume. Qatar Gas Transport Co (QGTS) was the top volume traded stock during the week with total traded volume of 5.0mn shares.
Foreign institutions remained bearish during the week with net selling of QR115.9mn versus selling of QR205.6mn in the prior week. Qatari institutions remained bullish with net buying of QR7.4mn versus net buying of QR152.1mn the week before. Foreign retail investors turned bullish for the week with net buying of QR16.9mn versus net selling of QR7.7mn in the prior week. Qatari retail investors remained bullish with net buying of QR91.7mn versus net buying of QR61.2mn the week before.
In 2015 year-to-date, foreign institutions bought (on a net basis) $659.6mn worth of Qatari equities.

Technical analysis of the QSE index

The QSE index closed at 10,522.21, losing 3.11% from the week before. The index continued its bearish action and standing on a critical level between 10,300 and 10,500 points. It is imperative for the index to sustain its level above the 10,300 support level. Otherwise, we might see panic selloff throughout the market. Our expected resistance remains around the 11,500 level.

Definitions of key terms used in Candlestick chart

A candlestick chart is a price chart that displays the high, low, open, and close for a security. The ‘body’ of the chart is portion between the open and close price, while the high and low intraday movements form the ‘shadow’. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis.
Doji candlestick pattern – A Doji candlestick is formed when a security’s open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal.

DISCLAIMER

This report expresses the views and opinions of Qatar National Bank Financial Services SPC (“QNBFS”) at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. Gulf Times and QNBFS hereby disclaim any responsibility or any direct or indirect claim resulting from using this report.