Firm oil prices had had its reflection on the equity front with the Qatar Stock Exchange (QSE) gaining a robust 289 points to surpass the 10,100 mark and capitalisation enhance about QR14bn during the week.
Buying was seen more pronounced in the micro cap equities during the week which saw Gulf International Services (GIS) outline a fresh QR1.9bn capital expenditure over the next five years.
Investors largely scrambled for real estate, consumer goods and industrials stocks during the week which saw the London Stock Exchange-listed Qatar Investment Fund (QIF) remain optimistic on growth prospects on the QSE in the medium-to-long term as the country is “well positioned to weather” the current oil price scenario.
Shariah-stocks were seen outperforming the major indices on the market during the week, which saw Moody's, a global credit rating agency, say Qatar Insurance Company's (QIC) QR162mn capital increase is "credit positive".
Foreign institutions hurriedly picked up stocks to lift the market during the week, which saw Global Investment House view that the acquisition of 99.81% stake in Turkey's Finansbank is expected to expand QNB’s loans, deposits and assets by 15% to 20% but likely to add 60-70 basis points to the Qatari bank's non performing loan ratio.
The bourse opened the week stronger but only to witness profit booking on the subsequent day to take the index to a low of 9,892 points. However, with global oil prices showing rebound, the market witnessed gains for the remainder of the sessions and settled at 10,137 points on Thursday.
Notwithstanding selling pressure from domestic institutions as well as local and non-Qatari individual investors; the 20-stock Qatar Index gained 2.94% during the week which saw Dubai surge 4.04%, Abu Dhabi (3.98%), Kuwait (1.34%) and Muscat (0.3%); while Bahrain was down 0.68%.
The QSE is down 2.81% year-to-date against a fall of 6.61% in Kuwait, 3.42% in Bahrain and 0.03% in Muscat; even as Dubai and Abu Dhabi reported 3.15% and 2.63% gains respectively.
The 20-stock Total Return Index rose 3%, All Share Index (comprising wider constituents) by 2.57% and Al Rayan Islamic Index by 4.38% during the week which saw trading turnover and volumes on the rise.
Realty stocks shot up 4.58%, consumer goods (3.88%), industrials (2.83%), banks and financial services (2.29%), transport (1.27%) and insurance (0.87%), while telecom fell 0.78% during the week which witnessed banks, real estate, industrials, telecom and consumer goods together account for more than 92% of the total trading volume.
Market capitalisation expanded 2.6% to QR536.93bn with micro, small, mid and large cap equities gaining 4.96%, 2.36%, 2.31% and 1.96% respectively during the week which saw GIS and Barwa dominate the trading ring in terms of volume and value.
Mid cap stocks have gained 3.56% year-to-date; even as large, micro and small caps fell 5.22%, 4.77% and 2.36% respectively.
Of the 43 stocks, as many as 35 advanced, while only six declined and two were unchanged during the week which saw QIF view that the banking sector growth in Qatar is expected to remain "healthy" and at least ten banks from Gulf countries have applied for licences to the Qatar Central Bank.
Eleven of the 12 banks and financial services; seven of the nine industrials; five of the eight consumer goods; four each of the five insurers and the four realty; all of the three transport and one of the two telecom stocks closed higher during the week, which saw the falling oil prices and thus the weakened hydrocarbons has had a consequent dampening effects on the net earnings of the industrial companies listed on the QSE.
More than 83% of the stocks extended gains with major movers being QNB, Industries Qatar, Aamal Company, Ezdan, Mazaya Qatar, Vodafone Qatar, Gulf Warehousing, Qatar Islamic Bank, QIIB, Alijarah Holding, Dlala, Islamic Holding Group, Qatari German Company for Medical Devices, Al Meera and Widam Food; even as Ooredoo, Al Khaliji and Salam International Investment during the week which saw Qatar’s trade surplus shrink 58% year-on-year to QR7.25bn in January 2016 on substantially lower exports, especially petroleum gases and crude, and higher imports.
Foreign institutions turned net buyers to the tune of QR194.3mn compared with net sellers of QR30.5mn the week ended February 25.
However, domestic institutions’ net profit booking strengthened considerably to QR108.61mn against QR23.63mn the previous week.
Local retail investors turned net sellers to the extent of QR74.69mn compared with net buyers of QR53.52mn the week ended February 25.
Non-Qatari retail investors were also net profit takers to the tune of QR11mn against net buyers of QR0.61mn the previous week.
Total trade volume rose 10% to 63.93mn shares and value by 13% to QR2.29bn, while transactions were down less than 1% to 28,738 during the week.
The telecom sector’s trade volume more than tripled to 7.4mn equities and value more than doubled to QR166.45mn on 68% jump in deals to 3,972.
The insurance sector’s trade volume almost doubled to 0.93mn stocks and value more than doubled to QR57.33mn on 59% increase in transactions to 739.
There was 63% surge in the transport sector’s trade volume to 4.04mn shares, 29% in value to QR117.12mn and 6% in deals to 1,475.
The banks and financial services sector’s trade volume soared 34% to 18.74mn equities, value by 50% to QR891.74mn and transactions by 20% to 8,441.
However, the market witnessed 29% plunge in the industrials sector’s trade volume to 11.35mn stocks, 26% in value to QR491.6mn and 32% in deals to 6,263.
The consumer goods sector’s trade volume tanked 11% to 7.34mn shares, even as value gained 20% to QR257.08mn and transactions by 1% to 3,684.
The real estate sector saw 2% decline in trade volume to 14.13mn equities, 14% in value to QR309.94mn and 10% in deals to 4,164.
In the debt market, there was no trading of treasury bills and government bonds during the week.