Large cap equities witnessed heavy offloading, which dragged the Qatar Stock Exchange (QSE) during the week, which also saw the advent of margin trading.

Trade turnover and volumes were also on the decline – mainly on transport, industrials and banking -- during the week, which however saw Prime Minister HE Sheikh Abdullah bin Nasser bin Khalifa al-Thani reiterating the government’s support to the private sector.

Profit booking – especially in transport, insurance and telecom counters – led the Qatari bourse traverse through the negative trajectory during the week which saw QR3mn worth deals being undertaken through margin trading on the very first day.

Local retail investors’ increased net selling and lower buying support from the foreign institutions were seen instrumental in instilling overall bearish sentiments in the QSE during the week, which saw telecom, banking and industrials stocks together constituted more than 73% of the total trade volumes.

Stronger net selling by non-Qatari individual investors also played its part in dragging the QSE during the week, which saw Mannai Corporation being shifted to consumer goods sector from industrials.

Although domestic institutions’ net selling weakened, the QSE’s 20-stock Qatar Index settled 0.75% lower during the week which saw Invest AD view that the third quarter earnings, the US presidential election and a potential rise in the US Fed rate are expected to weigh in the Gulf equity markets.

The QSE appears to be in a better position vis-à-vis majority of bourses in the Gulf region as Dubai bourse tanked 3.45%, Muscat (2.03%), Abu Dhabi (1.94%), Kuwait (1.43%) and Bahrain (1.13%); while Saudi Arabia was marginally up 0.14% during the week.

The Qatari bourse’s year-to-date losses were at 0.69% compared to 18.53% in Saudi Arabia, 6.48% in Bahrain and 5.25% in Kuwait; whereas Dubai gained 6.46%, Muscat (3.77%) and Abu Dhabi (1.91%).

Opening the week weak at 10,403 points, the market plunged on the subsequent day to 10,310 points, after which it regained much of the losses. However, profit booking ensued for the rest of the two days, leading the market to settle overall 78 points down during the week.

Tracking the main barometer, the 20-stock Total Return Index also shed 0.75%, All Share Index (comprising wider constituents) by 0.61% and Al Rayan Islamic Index 0.75% during the week which saw Qatar Petroleum announce deal with Dolphin Energy for additional gas export to the UAE.

Transport stocks shrank 1.86%; insurance (1.79%); telecom (1.49%); banks and financial services (0.63%); consumer goods (0.35%) and industrials (0.34%), while realty gained 0.23% during the week which saw Qatari Investors Group and Qatar Insurance dominate the trading ring in terms of volume and value.

Market capitalisation declined 0.73% or more than QR4bn to QR556.63bn as large, micro and small cap equities melted 1.09%, 0.1% and 0.08% respectively; even as midcaps rose 0.11% during the week which witnessed Widam Foods being included in the Al Rayan Islamic Index.

Small, mid, micro and large cap equities have reported year-to-date losses of 5.25%, 4.34%, 0.36% and 0.12% respectively.

Of the 44 stocks, as many as 26 declined, while 15 advanced, two were unchanged and one was not traded during the week. Seven of the 13 banks and financial services; six of the nine consumer goods; four of the eight industrials; three each of the five insurers and the four real estate; two of the three transport and one of the two telecom stocks settled lower during the week.

More than 60% of the equities returned losses with major shakers being Industries Qatar, QNB, Qatar Insurance, Ooredoo, Masraf Al Rayan, Barwa, Nakilat, Milaha, Qatar Islamic Bank and Dlala; even as Gulf International Services, Ezdan, Commercial Bank, al khaliji and Alijarah Holding were gaining modestly during the week.

Local retail investors’ net profit booking increased perceptibly to QR96.55mn against QR74.42mn the week ended September 29.

Foreign institutions’ net buying declined to QR183.69mn compared to QR200.7mn the previous week.

Non-Qatari individual investors’ net selling jumped to QR12.23mn against QR4.4mn the week ended September 29.

However, domestic institutions’ net profit booking weakened to QR74.81mn compared to QR121.89mn the previous week.

Total volume was down 3% to 28.75mn shares, value by 7% to QR1.04bn and transactions by 15% to 12,274 during the week.

The market witnessed 35% plunge in the transport sector’s trade volume to 1.08mn equities, 7% in value to QR50.22mn and 13% in deals to 905.

The industrials sector’s trade volume plummeted 24% to 5.48mn stocks, value by 31% to QR300.28mn and transactions by 35% to 2,545.

The banks and financial services sector saw 16% shrinkage in trade volume to 5.78mn shares, 17% in value to QR262.86mn and 5% in deals to 4,386.

However, the insurance sector’s trade volume more than tripled to 1.37mn equities and value also more than tripled to QR116.26mn on 6% jump in transactions to 478.

The consumer goods sector reported 57% surge in trade volume to 1.1mn stocks but on 16% fall in value to QR36.12mn. Deals expanded 38% to 1,296.

The real estate sector’s trade volume shot up 12% to 4.14mn shares; whereas value fell less than 1% to QR86.42mn and transactions by 7% to 1,949.

The telecom sector witnessed 9% increase in trade volume to 9.81mn equities and 22% in value to QR192.72mn but on 31% decline in deals to 1,715.

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