Aided by strong buying – especially in the telecom and transport stocks – Qatar Stock Exchange on Tuesday extended the bullish run to the second day and its key index gained another 26 points.
An extremely weak selling pressure from domestic institutions and marginal net buying support from Gulf individuals and institutions helped the 20-stock Qatar Index rise 0.25% to 10,431.25 points, also reflecting the rebound in the global oil market.
"Medium-term investors can stay in the market as long as the index closes above 10,250 points, while long-term investors can only enter above 10,600 points," a Kamco Research note had said.
Trade turnover and volumes were otherwise on the decline in the bourse, which limped back to positive trajectory year-to-date with mere 0.02% gain.
Industrials, transport and banking counters witnessed severe decline in volumes in the market, where Islamic stocks were seen underperforming the main index.
However, there was a substantial decline in the net buying support from foreign institutions and increased net selling by local retail investors.
Market capitalisation rose 0.26% or more than QR1bn to QR560.35bn as large, micro and midcap equities gained 0.48%, 0.35% and 0.08% respectively; while small caps were down 0.05%.
The Total Return Index gained 0.25% to 16,877.06 points, All Share Index by 0.22% to 2,877.01 points and Al Rayan Islamic Index by 0.1% to 3,918.02 points.
Telecom equities shot up 1.61%, transport (1.05%), insurance (0.49%), industrials (0.33%) and banks and financial services (0.25%); whereas realty and consumer goods fell 0.67% and 0.13% respectively.
About 53% of the stocks extended gains with major movers being QNB, Ooredoo, Nakilat, Industries Qatar, Qatar Insurance, Gulf International Services, Qatar Islamic Bank, Commercial Bank, Vodafone Qatar, Mazaya Qatar and Salam International Investment; even as Ezdan, Barwa, Mesaieed Petrochemical Holding, Doha Bank, QIIB, Alijarah Holding and Dlala saw their scrips lose sheen.
Domestic institutions’ net selling weakened considerably to QR3.06mn compared to QR118.91mn on October 10.
The GCC (Gulf Cooperation Council) institutions turned net buyers to the tune of QR0.29mn against net sellers of QR13.04mn on Monday.
The GCC individual investors were also net buyers to the extent of QR0.17mn compared with net sellers of QR0.1mn the previous day.
However, non-Qatari institutions’ net buying weakened perceptibly to QR17.69mn against QR140.3mn on October 10.
Local retail investors’ net profit booking increased to QR14.93mn compared to QR8.12mn on Monday.
Non-Qatari individual investors’ net profit booking rose marginally to QR0.17mn against QR0.13mn the previous day.
Total trade volume fell 55% to 3.8mn shares and value by 52% to QR155.08mn; while deals grew 29% to 2,877.
There was 83% plunge in the industrials sector’s trade volume to 0.53mn equities and 80% in value to QR34.32mn on 3% jump in transactions to 552.
The transport sector’s trade volume plummeted 64% to 0.16mn stocks and value by 50% to QR5.52mn; while deals gained 86% to 205.
The banks and financial services sector saw 61% shrinkage in trade volume to 1.03mn shares, 42% in value to QR52.39mn and 2% in transactions to 757.
The telecom sector’s trade volume tanked 54% to 0.56mn equities and value by 20% to QR23.56mn; whereas deals grew 13% to 449.
The market witnessed 38% decline in the insurance sector’s trade volume to 0.08mn stocks, 23% in value to QR4.57mn and 14% in transactions to 80.
However, the consumer goods sector’s trade volume more than quadrupled to 0.39mn shares and value also more than quadrupled to QR13.02mn on more than doubled deals to 259.
The real estate sector reported 31% surge in trade volume to 1.06mn equities and 31% in value to QR21.7mn on more than doubled transactions to 575.
In the debt market, there was no trading of treasury bills and government bonds.