By Santhosh V. Perumal
Business Reporter

Qatar Stock Exchange gained 51 points on Thursday to inch near the 10,000 mark, a day after the country’s 2016 budget saw substantial allocation for major projects and the US announce a 0.25% hike in interest rates.

Strong buying in the consumer goods, transport, banking and industrials led the 20-stock Qatar Index gain 0.52% to 9,912.92 points.

Finance Minister HE Ali Sherif al-Emadi on Wednesday presented 2016 budget that saw QR90.8bn allocation for major projects despite a deficit of QR46.5bn.

Domestic institutions increased net buying was mainly instrumental in instilling confidence in the market, which is, however, down 19.31% year-to-date.

The bullish outlook of Gulf institutions and increased buying support from non-Qatari individual investors also helped the, bourse, where overall volumes declined.

The index that tracks Shariah-principled stocks was seen gaining faster than the other indices in the market, where the banking, industrials and real estate sectors dominated the trading ring as their stocks accounted for 80% of the volumes.

Market capitalisation rose 0.73% or about QR4bn to QR525.09bn with mid, small and large cap equities gaining 1.15%, 0.82% and 0.77% respectively; even as micro caps were down 0.08%.

The Total Return Index gained 0.52% to 15,408.21 points, All Share Index by 0.58% to 2,646.89 points and Al Rayan Islamic Index by 0.67% to 3,656.28 points.

Consumer goods stocks soared 2.73%, transport (1.5%), banks and financial services (0.92%) and industrials (0.91%); while telecom shrank 2.35%, insurance (1.04%) and realty (0.4%).

About 55% of the stocks extended gains with major movers being Industries Qatar, QNB, Milaha, QIIB, Islamic Holding Group, Qatari Investors Group, Gulf International Services, Mesaieed Petrochemical Holding, Barwa and United Development Company; whereas Ooredoo, Vodafone Qatar, Ezdan, Commercial Bank, Dlala and Alijarah Holding bucked the trend.

Domestic institutions’ net buying increased perceptibly to QR49.66mn compared to QR18.19mn the previous day.

The GCC (Gulf Cooperation Council) institutions turned net buyers to the tune of QR4.52mn against net sellers of QR0.19mn on December 16.

Non-Qatari individual investors’ net buying increased to QR5.68mn compared to QR1.26mn on Wednesday.

However, non-Qatari institutions’ net profit booking surged to QR35.42mn against QR17.18mn the previous day.

Local retail investors’ net selling also expanded to QR21.06mn compared to QR1.29mn on December 16.

The GCC individual investors’ net profit booking soared to QR3.36mn against QR0.77mn on Wednesday.

Total trade volume fell 18% to 5.6mn shares and value by 6% to QR258.13mn, while deals were up 1% to 3,850.

The transport sector saw 81% plunge in trade volume to 0.17mn equities, 80% in value to QR5.35mn and 68% in transactions to 122.

The real estate sector’s trade volume plummeted 36% to 0.8mn stocks, value by 40% to QR16.79mn and deals by 34% to 345.

The market witnessed 26% shrinkage in the telecom sector’s trade volume to 0.63mn shares, even as there was 42% increase in value to QR25.21mn and 33% in transactions to 787.

However, the consumer goods sector’s trade volume soared 92% to 0.23mn equities but value fell 4% to QR12.34mn and deals by 2% to 306.

There was 13% expansion in the insurance sector’s trade volume to 0.09mn stocks and 1% in value to QR5.69mn but on 14% decline in transactions to 96.

The industrials sector’s trade volume grew 1% to 0.99mn shares, while value fell 2% to QR58.81mn and deals by 20% to 690.

The banks and financial services sector saw less than 1% rise in trade volume to 2.69mn equities, 8% in value to QR133.95mn and 45% in transactions to 1,504.

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