A multitude of positive factors helped the Qatar Stock Exchange (QSE) reach an eight-year high and add a whopping QR68bn in capitalisation, thus making it the second best performer during the week.
Robust buying interests from foreign retail investors and institutions led the bourse’s 20-stock Qatar Index (based on price data) gain 3.22% to hit an all-time high during the week that saw Qatar Rail award a largest-ever risk cover deal to a consortium of national insurance companies led by Qatar Insurance Company (QIC).
In comparison, Dubai gained 6.85%, Bahrain (2.14%), Saudi Arabia (0.27%), Muscat gained 0.51%, Bahrain (0.5%), Abu Dhabi (0.28%) and Saudi Arabia (0.23%), while Muscat and Kuwait fell 1.04% and 0.03% respectively during the week.
“We are delighted to see the market break new highs — it’s testament to the strength and organisation of the listed companies, and to all stakeholders involved in developing the market here in Qatar,” QSE CEO Rashid bin Ali al-Mansoori had said in a rare comment on the day-to-day performance.
QSE is up 24.81% year-to-date against Dubai’s stupendous gains of 51%, Abu Dhabi (20.53%), Bahrain (13.61%), Saudi Arabia (11.96%), while Kuwait and Muscat were down 1.34% and 0.91% respectively.
Real estate, transport, insurance and banking counters witnessed most of the buying pressure during the week that saw large investors making a return to the QSE.
The prospering Qatari economy, the strong performance of listed companies, the general budget for 2014-15 and the commencement of many large government projects were all positive contributing factors behind the strong trading performance and upward momentum in the market, which led to return of large investors.
About 79% of the stocks extended gains in the week that saw Doha Bank report 1% rise in first quarter (Q1) net profit.
Mid, large and micro cap equities were the most preferred stock during the week, which saw Qatar National Cement register 10% jump in Q1 net profit.
The index that tracks Shariah-principled stocks were seen gaining faster than other indices during the week that featured Gulf International Services (GIS) report 39% jump in net profit in Q1.
However, local retail investors heavily resorted to profit booking during the week that witnessed Masraf Al Rayan report 8% jump in Q1 net profit.
The 20-stock Total Return Index gained 3.23%, All Share Index (comprising wider constituents) by 2.96% and Al Rayan Islamic Index by 4.28% in the week that saw Qatar Islamic Insurance Company report a 32% jump in Q1 net profit.
Of the 43 stocks, 34 advanced; only eight declined and one was unchanged in the week that saw Salam International Investments (SIIL) double its Q1 net profit.
All of the 12 banks and financial services; six of the nine industrials; five each of the eight consumer goods; four each of the five insurers and the four realty; two of the three transport and one of the two telecom stocks closed higher during the week that witnessed International Islamic report 15% rise in Q1 net profit.
Real estate stocks appreciated 6.16%, transport (5.06%), insurance (3.62%), banks and financial services (3.22%), industrials (2.34%), telecom (1.44%) and consumer goods (0.12%) during the week.
Among the influential movers were Industries Qatar, QNB, Doha Bank, Qatar Islamic Bank, Masraf Al Rayan, Dlala, Aamal Company, Ezdan, United Development Company, Mazaya Qatar, Barwa, Vodafone Qatar, Nakilat, Milaha, Mannai Corporation, Doha Insurance, QIC, Al Khaleej Takaful, Al Meera, Qatari Investors Group, Vodafone Qatar, Ezdan, Nakilat, Milaha and SIIL.
However, Ooredoo, GIS, Mesaieed Petrochemical Holding (MPHC), Qatar General Insurance and Reinsurance and Widam Food were seen to buck the trend.
The overall market trading volume were on the higher side and was largely skewed towards real estate, banks, telecom, consumer goods and industrials sectors in the week that witnessed MPHC report a net profit of QR463.76mn in Q1.
Market capitalisation expanded 9.28% to QR796.22bn. Mid, large, micro and small cap equities were seen gaining 4.96%, 4.51%, 3.75% and 1.98% respectively in the week that saw Mannai Corporation report a 73% increase in Q1 net profit.
Small, micro, mid and large cap stocks have gained YTD 32.48%, 25.89%, 25.1% and 24.17% respectively.
Foreign institutions’ net buying surged to QR347.26mn against QR246.1mn the week that ended April 17.
Non-Qatari individual investors turned net buyers to the tune of QR40.38mn compared with net sellers of QR34.3mn the previous week.
Local retail investors’ net selling soared to QR183.54mn against QR4.9mn the week ended on April 17.
Domestic institutions’ net selling fell to QR204.1mn compared to QR206.36mn the previous week.
Total trading volume rose 26% to 212.84mn shares with the real estate sector accounting for 27.65% of the total, banks and financial services (21.26%), telecom (15.56%), consumer goods (13.5%), industrials (10.98%), transport (8.5%) and insurance (2.54%).
The trading volume of transport and insurance more than doubled to 18.1mn and 5.4mn stocks; telecom surged 42% to 33.12mn, industrials by 23% to 23.38mn, banks and financial services by 19% to 45.26mn, realty by 15% to 58.85mn and consumer goods by 11% to 28.73mn.
Total stocks trading value expanded 35% to QR7.34bn with the banks and financial services sector constituting 27.35% of the total, real estate (23.33%), industrials (15.81%), consumer goods (14.28%), telecom (8.89%), transport (6.57%) and insurance (3.77%). The stocks trading value of transport sector more than doubled to QR482.2mn; insurance surged 95% to QR276.92mn, telecom by 56% to QR652.78mn, consumer goods by 53% to QR1.05bn, realty by 32% to QR1.71bn and banks and financial services by 23% to QR2.01bn.
Barwa led the trading value with its stocks accounting for 9.2% of the total, followed by Vodafone Qatar (7.86%) and Masraf Al Rayan (7.27%).
Total market transactions rose 5% to 7,279 with the banks and financial services sector’s share at 24.82%, industrials (22.41%), real estate (19.92%), consumer goods (13.48%), telecom (8.85%), transport (6.44%) and insurance (4.07%).
The insurance sector’s deals expanded 91% to 3,145; telecom by 49% to 6,839; consumer goods by 42% to 10,421; transport by 35% to 4,976; banks and financial services by 11% to 19,182; industrials by 6% to 17,322 and realty by 6% to 15,394.
In the debt market, there was no trading of treasury bills and government bonds in the week.