QSE remains in positive trajectory despite domestic, Gulf funds’ sell pressure

QSE remains in positive trajectory despite domestic, Gulf funds’ sell pressure

Publication: gulf-times.com – English (English | Website)

The Qatar Stock Exchange overcame strong selling pressure from domestic and Gulf funds in order to overall stay afloat in the positive trajectory this week which saw the bourse’s intentions to dual list exchange traded funds (ETFs) in the US’ NASDAQ.
Foreign individuals were seen bullish on the bourse, which had once crossed 9,400 levels this week which saw Commercial Bank report net profit of QR901.02mn in the first half (H1) of this year.
The consumer goods and industrials counters witnessed higher than average demand as the 20-stock Qatar Index settled 0.62% higher this week which saw Qatar Electricity and Water’s H1 net profit at QR661mn.
More than 55% of the traded constituents extended gains this week which saw Qatar Islamic Bank register net profit of QR512.6mn in H1 2020.
The Arab institutions were seen marginally bullish this week which saw Al Khaliji report net profit of QR361.13mn in January-June this year.
The Total Return Index gained 0.69%, All Share Index by 0.49% and Al Rayan Islamic Index by 0.19% this week this which saw Ahlibank Qatar’s H1 net profit at QR294.45mn.
Market capitalisation saw about QR4bn or 0.65% increase to QR548.54bn mainly on small and midcap segments this week which saw as many as 22,857 Masraf Al Rayan sponsored exchange traded fund QATR valued at QR48,516 changed hands across seven transactions.
Four of the seven sectors however witnessed buying interests this week which saw which saw a total of 25,020 Doha Bank-sponsored QETF worth QR229,963 traded across seven deals.
The consumer goods and services index shot up 1.86%, industrials (1.25%), real estate (0.37%) and banks and financial services (0.32%); while insurance declined 1.3%, transport (0.4%) and telecom (0.39%) this week which saw QNBFS, a QNB subsidiary, announce its liquidity provision agreement with Qatar Islamic Bank.
Major gainers included Dlala, Qatar German Company for Medical Devices, Qatar Oman Investment, Medicare Group, Industries Qatar, Inma Holding, Woqod, Qatari Investors Group, Aamal Company, Gulf International Services, Al Khaleej Takaful and Ezdan this week which saw Qatar Financial Center chief executive Yousuf Mohamed al-Jaida say that global investors would soon be able to tap Qatar’s capital markets.
Nevertheless, Qamco, Baladna, Qatar General Insurance and Reinsurance, Alijarah Holding, Mannai Corporation and Widam Food were among the losers this week which saw industrials, consumer goods and banking sectors together account for about 77% of total trading volume.
Trade turnover and volumes were on the increase this week which saw the industrials sector account for 33% of the total trading volume, consumer goods and services (23%), banks and financial services (20%), real estate (16%), transport (3%), and telecom and insurance (2% each) this week which saw Qatar National Cement and Widam Food report their H1 net profit at QR68.29mn and QR49.55mn respectively.
In value, the banks and financial sector’s share was 32%, consumer goods and services (25%), industrials (19%), realty (14%), transport (4%), insurance (3%) and telecom (2%) this week.
Foreign individuals turned net buyers to the tune of QR6.8mn against net sellers of QR9.68mn the week ended July 16.
The Arab institutions were also net buyers to the extent of QR0.9mn against net sellers of QR0.26mn a week ago.
However, domestic funds’ net selling increased significantly to QR49.2mn compared to QR39.59mn the previous week.
The Gulf funds’ net selling also grew considerably to QR24.03mn against QR11.14mn the week ended July 16.
The Gulf individuals turned net sellers to the extent of QR0.23mn compared with net buyers of QR2.35mn a week ago.
Qatari individuals’ net buying weakened substantially to QR15.19mn against QR63.64mn the previous week.
Foreign institutions’ net buying shrank marginally to QR51.24mn compared to QR52.79mn the week ended July 16.
Total trading volume fell 35% to 1.3bn shares, value by 23% to QR2.27bn and transactions by 14% to 45,155.
There was 59% plunge in the telecom sector’s trade volume to 24.74mn equities, 42% in value to QR53.45mn and 28% in deals to 1,730.
The industrials sector’s trade volume plummeted 48% to 487.85mn stocks, value by 38% to QR437.57mn and transactions by 27% to 10,471.
The real estate sector saw 43% shrinkage in trade volume to 211.97mn shares, 38% in value to QR325.93mn and 24% in deals to 7,007.
The insurance sector’s trade volume tanked 42% to 31.26mn equities and value by 44% to QR58.21mn, while transactions were up 5% to 1,760.
The market witnessed 23% contraction in the transport sector’s trade volume to 33.51mn stocks, 29% in value to QR97.82mn and 8% in deals to 2,186.
The banks and financial services sector’s trade volume shrank 18% to 265.03mn shares, value by 14% to QR728.56mn and transactions by 4% to 11,804.
The consumer goods sector reported 5% slippage in trade volume to 302.06mn equities but on 9% growth in value to QR565.54mn despite less than 1% lower deals at 10,197.

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