04/07/2015 03:52 AST
A robust 187-point gains intra-week notwithstanding, Qatar Stock Exchange (QSE) closed the week weak as its key index lost 12 points, mainly dragged by real estate, transport and consumer goods stocks.
Local retail investors were increasingly into net profit booking and foreign institutions’ buying support considerably weakened during the week which saw Qatar changed the base year for the estimation of gross domestic product to 2013 from 2004, thus showing a real (inflation-adjusted) economic growth of 4% in 2014 against a higher 6.1% using the previous base.
Although domestic institutions turned net buyers, the 20-stock Qatar Index fell a marginal 0.1% during the week which witnessed Milaha subsidiary Qatar Shipping fully acquire two liquefied natural gas carriers from Societe General.
In comparison, Saudi Arabia fell 2.47%, Dubai (1.4%), Bahrain (1.32%), Abu Dhabi (0.72%) and Kuwait (0.48%), while Muscat was up mere 0.03% during the week which saw Doha Bank disclose that it has issued Tier I capital instruments to the tune of QR2bn.
Qatar’s bourse has so far (year-to-date) fallen 1.34% against Kuwait’s 5.41% and Bahrain’s 5.34%; even as Saudi Arabia reported 9.64% increase, Dubai (8.34%), Abu Dhabi (4.37%) and Muscat (1.59%).
Non-Qatari individual investors continued to be bullish but with lesser intensity during the week which saw Al Meera Consumer Goods Company announce that its subsidiaries are planning to sell their 49% stake in the Al Oumara Bakeries to Qatar Quality Food for a consideration of QR3mn.
Opening the week on a weaker note, the index kept declining for the second day to touch a low of 12,014 points. But substantial buying interests propped up the market on Tuesday to a high of 12,201 points, after which it was again gripped by profit booking. The market was once again on the positive path on the last day but overall it settled at 12,121 points.
The index that tracks Shariah-principled stocks was seen melting faster in the market during the week which saw the overall trade volume decline.
The 20-stock Total Return Index was down 0.08% and Al Rayan Islamic Index by 0.72%, while All Share Index (comprising wider constituents) was up mere 0.06% during the week which witnessed realty, insurance and transport saw the maximum slippage in volumes.
Real estate stocks shrank 2.36%, transport (0.6%), consumer goods (0.4%) and telecom (0.15%); whereas banks and financial services rose 0.93%, industrials (0.7%) and insurance (0.06%) during the week which saw Qatar's producer price index plunge 37.4% year-on-year in April 2015 on a double-digit dip in the prices for crude, natural gas, refined petroleum products, basic metals and basic chemicals.
Of the 43 stocks, only 14 gained, while 24 declined and five were unchanged during the week which saw real estate, banking and industrials sectors together constitute more than three-fourth of the overall trade volumes.
Six each of the 12 banks and financial services and the eight consumer goods, five of the nine industrials, three of the four realty, two of the three transport and one each of the five insurers and the two telecom sector equities close lower during the week.
About 56% of the stocks were in the red with major losers being Ezdan, Mazaya Qatar, Barwa, Nakilat, Salam International Investment, Widam Food, Commercial Bank, Doha Bank, Masraf Al Rayan, Dlala, Aamal Company, Gulf International Services (GIS), Qatari German Company for Medical Devices and Vodafone Qatar; even as QNB, Industries Qatar, Islamic Holding Group, Qatar Electricity and Water, United Development Company and Milaha bucked the trend during the week.
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