Qatar shares bounce back as minister assures on economy. The Qatar Stock Exchange Monday saw 78% of the traded stocks gain, thus giving it an overall lift, after Finance Minister HE Ali Sherif al-Emadi’s assurance on the strength of the economy, whose reserves and investment funds are more than 250% of gross domestic product. An across-the-board buying, particularly in insurance, real estate, telecom and transport, led the 20-stock Qatar Index gain 0.83% to 9,135.16 points, indicating continued confidence of local and non-Qatari retail investors. Recovering from the initial losses, the market saw precipitous gains in the next 45 minutes, after which there was a mild profit-booking. Thereafter, the index was on a slow gaining path but to witness stronger net purchases in the last few minutes to finally settle 75 points against the previous close.
Islamic stocks were seen outperforming the main index in the bourse, whose year-to-date losses were contained at 12.47%. Local and non-Qatari retail investors were increasingly net buyers in the market, which saw stronger demand for small cap stocks. Trade turnover fell amidst higher volumes in the bourse, where banking and realty sectors together accounted for more than 84% of the total volumes.
Market capitalisation expanded 0.92%, or more than QR4bn, to QR491.85bn as small, large, micro and midcap scrips gained 2.65%, 0.79%, 0.71% and 0.64% respectively. The Total Return Index rose 0.83% to 15,319.12 points, the All Share Index by 1.09% to 2,586.38 points and the Al Rayan Islamic Index by 1.09% to 3,601.28 points.
The insurance index soared 3.45%, followed by real estate (2.1%), telecom (1.76%), transport (1.59%), consumer goods (0.92%), industrials (0.76%) and banks and financial services (0.4%).
Major gainers included Gulf Warehousing, Qatar Insurance, Ooredoo, Ezdan, Barwa, Qatar Electricity and Water, Doha Bank, QIIB, Aamal Company, Gulf International Services, Qatar German Company for Medical Devices, Qatar General and Reinsurance and Al Meera; even as Commercial Bank, United Development Company, Qatar National Cement, Qatari Investors Group and Alijarah Holding were among the losers.
Local retail investors’ net buying strengthened perceptibly to QR13.39mn compared to QR9.61mn on June 11. Non-Qatari retail investors’ net buying also increased influentially to QR2.85mn against QR1.99mn the previous day. The GCC (Gulf Cooperation Council) funds’ net selling weakened considerably to QR18.28mn compared to QR77.1mn on Sunday.
Non-Qatari institutions’ net profit-booking weakened marginally to QR32.81mn against QR39.73mn on June 11. However, domestic institutions’ net buying declined significantly to QR41.11mn compared to QR107.55mn the previous day. The GCC individuals’ net profit-booking increased perceptibly to QR6.27mn against QR2.33mn on Sunday. Total trade volumes rose 3% to 13.06mn shares, while value fell 3% to QR328.1mn despite an 8% jump deals to 4,019. There was a 95% surge in the real estate sector’s trade volume to 3.02mn equities, 58% in value to QR45.22mn and 45% in transactions to 886.
The transport sector’s trade volume soared 50% to 1.05mn stocks and value by 36% to QR31.95mn on more than tripled deals to 726. The banks and financial services sector saw a 25% expansion in trade volume to 8mn shares but on a 1% fall in value to QR180.41mn and 11% in transactions to 1,466. However, the telecom sector’s trade volume plummeted 92% to 0.22mn equities, value by 25% to QR20.21mn and deals by 13% to 230. The industrials sector witnessed a 46% plunge in trade volume to 0.39mn stocks, 13% in value to QR24.65mn and 18% in transactions to 357. The insurance sector’s trade volume tanked 45% to 0.06mn shares, value by 37% to QR3.94mn and deals by 32% to 47.
The consumer goods sector reported a 32% shrinkage in trade volume to 0.32mn equities, 48% in value to QR21.71mn and 38% in transactions to 305. In the debt market, there was no trading of treasury bills and government bonds.