Negative US oil futures weigh on QSE; index loses another 119 points

Negative US oil futures weigh on QSE; index loses another 119 points

Publication: Gulf Times (English | Newspaper)

The Qatar Stock Exchange yesterday lost another 119 points, reflecting the concerns in the global energy market that saw the US oil futures in the negative. An across the board selling notably within the real estate, industrials, banking and insurance dragged the 20-stock Qatar Index 1.41% to 8,325.85 points. The weakened net buying interests of local retail investors and domestic funds had its dampening effect on the bourse, whose year-to-date losses further strengthened to 20.14%. Market capitalisation saw more than QR7bn or 1.52% erosion to QR465.09bn mainly owing to mid and small cap segments. Islamic stocks were seen declining slower than the other indices in the market, where foreign retail investors were increasingly net buyers. “The roadmap for full resumption of the most affected sectors in the second half of 2020, if achieved, would be significant for realising full potential economic activity in 2021,” Kamco Invest analysts said in their research note on the Gulf Cooperation Council economies in view of the effects of the pandemic Covid-19. Trade turnover shrank amidst higher volumes in the market, where realty, industrials and consumer goods sectors together accounted for more than 80% of the total trading volume. The Total Return Index shed 1.41% to 15,954.31 points, All Share Index by 1.49% to 2,582.69 points and Al Rayan Islamic Index (Price) by 1.37% to 1,815.29 points. The real estate index tanked 2.3%, industrials (1.97%), banks and financial services (1.58%), insurance (1.57%), transport (0.8%), telecom (0.68%) and consumer goods and services (0.19%). About 67% of the traded constituents were in the red with major losers being United Development Company, Barwa, Industries Qatar, Aamal Company, Gulf International Services, Mesaieed Petrochemical Holding, Qamco, QNB, Qatar Islamic Bank, QIIB, Qatar First Bank, Baladna, Ooredoo, Milaha and Salam International Investment. Nevertheless, Qatari Investors Group, al khaliji, Islamic Holding Group, Qatar German Company for Medical Devices, Mannai Corporation, Al Khaleej Takaful and Vodafone Qatar were among the gainers. Qatari individuals’ net buying declined substantially to QR3.28mn compared to QR46.43mn on April 20. Domestic funds’ net buying also weakened noticeably to QR10.55mn against QR19.19mn the previous day. The Gulf institutions’ net buying eased perceptibly to QR7.53mn compared to QR9.88mn on Monday. The Arab individuals’ net buying also decreased but marginally to QR2.24mn against QR3.92mn on April 20. However, foreign individuals’ net buying grew influentially to QR13.48mn compared to QR0.93mn the previous day. The Gulf individuals turned net buyers to the tune of QR1.24mn against net sellers of QR3.52mn on Monday. Foreign institutions’ net profit booking eased considerably to QR38.34mn compared to QR76.98mn on April 20. The Arab institutions had no major exposure against net buyers of QR0.11mn the previous day. Total trade volumes rose 10% to 153.62mn shares, while value fell 20% to QR287.44mn and transactions by 32% to 9,453. The banks and financial services sector saw 37% plunge in trade volume to 18.01mn equities, 25% in value to QR110.65mn and 24% in deals to 3,797. The telecom sector’s trade volume plummeted 27% to 2.4mn stocks, value by 33% to QR6.31mn and transactions by 51% to 411. There was 19% shrinkage in the transport sector’s trade volume to 5.99mn shares, 12% in value to QR15.91mn and 38% in deals to 590. The consumer goods and services sector’s trade volume was down 7% to 26.36mn equities, value by 31% to QR49.28mn and transactions by 42% to 1,179. However, the market witnessed 55% surge in the real estate sector’s trade volume to 67.24mn stocks but on 17% decline in value to QR47.68mn and 35% in deals to 1,327. The industrials sector’s trade volume shot up 21% to 29.32mn shares and value by 2% to QR47.84mn, while transactions were down 10% to 1,736. The insurance sector reported 5% growth in trade volume to 4.29mn equities, value by 21% to QR9.78mn and 17% in deals to 413. In the debt market, there was no trading of sovereign bonds and treasury bills.

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