19/04/2014 06:26 AST
Corporate earnings outlook appears to have strengthened the Qatar Stock Exchange where a strong demand was witnessed, especially for small and mid cap stocks during the week.
The overall bullish momentum, triggered by sustained buying interests of foreign institutions, helped the bourse’s 20-stock Qatar Index (based on price data) gain 1.24% to cross the pre-2008 crisis levels during the week.
In comparison, Muscat gained 0.51%, Bahrain (0.5%) and Saudi Arabia (0.23%), while Kuwait, Dubai and Abu Dhabi fell 1.62%, 1.59% and 0.29% respectively during the week.
QSE is up 20.92% year-to-date against Dubai’s stupendous gains of 41.32%, Abu Dhabi (20.19%), Saudi Arabia (11.66%), Bahrain (11.23%) and Muscat (0.14%), while Kuwait was down 1.31%.
Telecom, insurance and banking counters witnessed the most of the buying pressure during the week that saw top sources in the QSE confirm the launch of exchange-traded funds in the coming week.
About 63% of the stocks extended gains in the week that saw Commercial Bank receive approval from the Ministry of Economy and Commerce to hike its foreign ownership limit to 25%.
Lower net selling by local retail investors also helped the upward rally in the week, which saw Doha Bank unveil its moves to acquire HSBC Oman’s business in India.
The index that tracks Shariah-principled stocks were seen gaining faster than the other indices during the week that featured Qatar Islamic Bank (QIB) report a 15% jump in the first quarter (Q1) net profit.
However, domestic institutions continued to be profit takers during the week that witnessed Ahlibank Qatar register 12% growth in Q1 net profit.
The 20-stock Total Return Index gained 1.24%, All Share Index (comprising wider constituents) by 1.25% and Al Rayan Islamic Index by 2.32% in the week that saw Qatar Insurance Company report 12% rise in Q1 net profit. Of the 43 stocks, 27 advanced; while 13 declined and three were unchanged in the week that saw Qatar and South Korea explore investment opportunities in both the countries’ capital markets.
Nine of the 12 banks and financial services; five each of the eight consumer goods and the nine industrials; three of the five insurers; two each of the four real estate and the two telecom; and one of the three transport stocks closed higher in the week that saw Doha Insurance’s Q1 net profit rise 9%.
Telecom stocks appreciated 3.66%, insurance (3.03%), banks and financial services (1.33%), industrials (1.07%) and transport (0.64%); whereas realty and consumer goods fell 0.3% and 0.13% respectively in the week that witnessed Gulf Warehousing report a 40% jump in Q1 net profit.
Among the influential movers were Vodafone Qatar, Ezdan, Nakilat, Qatar National Cement, Aamal Company, QIB, Doha Bank, International Islamic, Masraf Al Rayan, al khaliji, Gulf International Services, Salam International Investment, Qatari Investors Group, Widam Food and Qatar General Insurance and Reinsurance.
However, Industries Qatar, QNB, Woqod, Mazaya Qatar, GWC, Mesaieed Petrochemical Holding, Commercial Bank and Doha Insurance were seen to buck the trend.
The overall market trading volume was down and was largely skewed towards real estate, banks, consumer goods, telecom and industrials sectors in the week.
Market capitalisation expanded 2.73% to QR728.59bn. Small, mid, large and micro cap equities were seen gaining 3.57%, 2.27%, 1.17% and 0.58% respectively in the week.
Small, micro, mid and large cap stocks have gained YTD 29.92%, 21.34%, 19.19% and 18.8% respectively.
Foreign institutions’ net buying stood at QR246.1mn against QR264.87mn in the week that ended on April 10.
Local retail investors’ net selling plunged to QR4.9mn compared to QR25.86mn the previous week.
Domestic institutions’ net selling amounted to QR206.36mn against QR209.37mn the week ended April 10.
Gulf Times
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