The Qatar Stock Exchange (QSE) index shed 601.11 points, or 6.54%, during the week to close at 8,584.01. Market capitalisation decreased by 6.43% to QR458.4bn versus QR489.9bn at the end of the previous week. Of the 43 listed companies, four companies ended the week higher, while 38 fell and one remained.
Ooredoo (ORDS) was the best performing stock for the week with a gain of 5.2% on only 711,027 shares traded. On the other hand, Qatari Investors Group (QIGD) was the worst performing with a decline of 19.24% on 805,868 shares traded.
Ezdan Holding Group (ERES), Industries Qatar (IQCD) and QNB Group (QNBK) were the primary contributors to the weekly index decrease. ERES was the biggest contributor, shedding 166.1 points from the index. IQCD was the second biggest contributor, erasing 103.1 points. QNBK pulled the index down by 78.9 points from the index.
Trading value during the week increased by 32.42% to reach QR1.52bn versus QR1.15bn in the prior week. The banks and financial services sector led the trading value during the week, accounting for 38.87% of the total. The industrials sector was the second biggest contributor, accounting for 23.12% of the total trading value. QNBK was the top value traded stock during the week with total traded value of QR189.1mn.
Trading volume increased by 77.44% to reach 49.49mn shares versus 27.9mn in the prior week. The number of transactions rose by 54.49% to reach 27,054 versus 17,512 in the prior week.
The real estate sector led the trading volume, accounting for 25.44%, followed by the banks and financial services, which accounted for 23.73% of the overall trading volume. Vodafone Qatar (VFQS) was the top volume traded stock during the week with total traded volume of 6.2mn shares.
Foreign institutions remained bearish during the week with net selling of QR184.9mn from the index net selling of QR226.1mn in the prior week. Qatari institutions remained bullish with net buying of QR127.8mn from the index net buying of QR49.1mn the week before. Foreign retail investors turned bearish for the week with net selling of QR15.4mn from the index net buying of QR14.1mn in the prior week. Qatari retail investors remained bullish with net buying of QR72.5mn from the index QR162.9mn the week before.
In 2016 year-to-date, foreign institutions sold (on a net basis) $66mn worth of Qatari equities.
The QSE index closed at 8,584.01 and lost 6.54% from the index the week before. Traded volumes increased yet another week on the drop; this usually means that bearishness remain in command in the current circumstances. As a result, the previous week suggests further weakness to be expected. We update our expected support level to 8,100 points and the resistance level to 9,500 points.
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.