By Santhosh V Perumal
Business Reporter

The Qatar Stock Exchange (QSE) could not come out of the crash on the opening day due to worries in the global oil market and its key index settled 102 points lower during the week.

Selling pressure was more perceptible, especially in the micro and large cap equities, during the week which witnessed Qatar present its 2016 budget that saw a massive QR90.8bn outlay for major projects amidst QR46.5bn deficit.

About 64% of the traded stocks were in the red during the week which saw Ministry of Development Planning and Statistics (MDPS) project Qatar's economy to grow 3.7% this year but a pick up in hydrocarbon sector is slated to expand the real growth higher at 4.3% in 2016, after which it will ease to 3.9% in 2017.

Opening the week substantially weaker at 9,644 points as oil price hit its seven-year low of $38 a barrel, the market then rebounded for the rest of the session but overall it could not cover the lost ground as it settled 9,913 points.

Profit booking was seen intense – particularly in the telecom, banking and industrials sectors – during the week that saw MDPS forecast that domestic interest rates in Qatar are likely to rise during 2015-17 on increasing funding requirements of government and the commercial banks and “accentuated” by the US Fed lift off, after a gap of 10 years.

Domestic institutions’ net buying substantially weakened and there was also increased net profit booking by local retail investors during the week which saw Al Meera Consumer Goods Company disclose an indirect acquisition of Spinneys Qatar as part of efforts to strengthen its presence in the country.

The 20-stock Qatar Index tanked 1.02% during the week which witnessed Woqod, which is expecting to construct 15-18 petrol stations, outline a total expenditure of about QR1.3bn for capital projects for 2016.

Muscat, Bahrain and Kuwait bourse reported 1.69%, 1.37% and 1.1% decline; while Dubai, Abu Dhabi and Saudi Arabia gained 4.36%, 1.52% and 1.39% respectively during the week which saw Doha Bank sign a new $575mn syndicated two-year loan through its relationship banks.

QSE has fallen 19.31% year-to-date compared to 18.57% in Dubai, 16.09% (Bahrain), 15.51% (Muscat), 15.45% (Saudi Arabia), 13.95% (Kuwait) and 8.4% (Abu Dhabi).

The 20-stock Total Return Index fell 1.02%, All Share Index (comprising wider constituents) by 0.89% and Al Rayan Islamic Index by 1.03% during the week which saw the overall trade volumes decline.

Telecom stocks plunged 3.17%, banks and financial services (1.43%), industrials (1.16%) and real estate (0.21%); whereas consumer goods, insurance and transport gained 0.78%, 0.48% and 0.27% respectively during the week which witnessed Qatar Insurance Company not only suggest a total of 35% dividend for shareholders for 2015 but also a rights issue.

Of the 43 stocks, as many as 28 declined, while only 13 advanced and two were unchanged during the week which saw the banking, realty and industrials stocks together constitute more than three-fourth of the trading volume.

Nine of the 12 banks and financial services, six each of the eight consumer goods and the nine industrials, three of the five insurers, two of the four real estate and one each of three transport and the two telecom stocks close lower in the week.

Major losers included Industries Qatar, Ooredoo, Qatar Islamic Bank, QIIB, Masraf Al Rayan, Dlala, Qatar Industrial Manufacturing, Gulf International Services, Mesaieed Petrochemical Holding, Barwa, Mazaya Qatar and Milaha; even as QNB, Vodafone Qatar, Nakilat, al khaliji, Qatar National Cement, Aamal Company and United Development Company buck the trend during the week.

Market capitalisation melted 0.7% or about QR4bn to QR525.09bn with micro, large and mid cap equities falling 2.75%, 1.45% and 0.35% respectively; while small caps rose 1.22% during the week.

Large, micro, mid and small cap stocks are down 24.69%, 19.13%, 11.67% and 11.6% respectively year-to-date.

Domestic institutions’ net buying plummeted to QR123.1mn compared to QR359.07mn the previous week.

Local retail investors’ net profit booking increased to QR38.37mn against QR0.43mn the week ended December 10.

However, foreign institutions’ net selling considerably declined to QR75.05mn compared to QR341.03mn the previous week.

Non-Qatari retail investors’ net profit booking also fell to QR9.82mn against QR17.74mn the week ended December 10.

Total trade volume was down 7% to 31.54mn shares, value by 10% to QR1.29bn and transactions by 7% to 18,850 during the week.

The market witnessed 42% plunge in the insurance sector’s trade volume to 0.31mn equities, 48% in value to QR20.26mn and 7% in deals to 375.

The real estate sector’s trade volume plummeted 25% to 5.45mn stocks, value by 28% to QR126.65mn and transactions by 22% to 2,596.

The telecom sector saw 22% shrinkage in trade volume to 3.9mn shares and 16% in value to QR88.99mn but on 11% jump in deals to 3,040.

The transport sector’s trade volume tanked 17% to 2.58mn equities, value by 3% to QR77.3mn and transactions by 2% to 1,441.

There was 6% decline in the consumer goods sector’s trade volume to 1.03mn stocks but on 21% expansion in value to QR61.85mn and 25% in deals to 1,336.

The industrials sector’s trade volume was down 4% to 5.27mn shares, value by 3% to QR335.36mn and transactions by 9% to 4,066.

However, the banks and financial services sector reported 13% surge in trade volume to 13mn equities but on 10% fall in value to QR582.34mn and 10% in deals to 5,996.

In the debt market, there was no trading of treasury bills; whereas a total of 400,600 government bonds valued at QR4.01bn changed hands across 25 transactions during the week.