07/03/2014 08:28 AST
A resilient Qatar Exchange yesterday appreciated more than 2% to settle above the 11,600 mark, especially on foreign institutions’ buying support, a day after it fell sharply after the recall of envoys by Saudi Arabia, the UAE and Bahrain.
Not only more than 90% of the stocks extended gains but its capitalisation also expanded by QR16bn as the 20-stock Qatar Index (based on price data) stood at 11,607.03 points, with a gain of 2.3%, ending six days of bearish spell, with government stepping up diplomatic efforts to ease tension.
Consumer goods and banks and financial services stocks outperformed the major indices in the market, which is up 11.83% year-to-date.
Markets have discounted the envoys recall in hope that diplomatic efforts would bear fruits, analysts said, adding that the knee-jerk reaction was a one-off (for the 2% fall on Wednesday).
Local retail investors considerably reduced their buying and domestic institutions pared their exposure in the bourse, where trading volumes fell and was largely skewed towards industrials and banking stocks.
The index that tracks Shariah-principled stocks was seen to gain slower than the other indices in the market.
The 20-stock Total Return Index rose 2.3% to 16,911.92 points, the All Share Index (with wider constituents) by 2.27% to 2,940.33 and the Al Rayan Islamic Index by 1.95% to 3,372.15 points.
All the three indices factored in dividend income as well.
Consumer goods equities appreciated 3.92%, followed by banks and financial services (3.12%), real estate (2.13%), telecom (1.78%), insurance (1.64%), industrials (1.18%) and transport (0.66%).
Major gainer included QNB, Industries Qatar, Mesaieed Petrochemical Holding, Qatar Islamic Bank, Commercial Bank, Doha Bank, Masraf Al Rayan, al khaliji, Gulf International Services, United Development Company, Barwa, Ooredoo, Vodafone Qatar, Nakilat, Qatar Insurance and Al Khaleej Takaful. Market capitalisation gained 2.45% to QR662.16bn. Micro caps surged about 4%, large caps by about 3%, mid caps by more than 2% and small caps by more than 1%.
Foreign institutions turned net buyers to the tune of QR61.04mn compared with net sellers of QR50.42mn the previous day.
Domestic institutions’ net buying amounted to QR85.76mn against QR103.99mn on Wednesday.
Qatari retail investors’ net selling stood at QR120.6mn compared to QR43.77mn the previous day.
Non-Qatari individual investors’ net selling was QR26.2mn against QR9.79mn on Wednesday.
Total trading volume fell 35% to 17.24mn stocks, value by 18% to QR992.58mn and transactions by 30% to 10,775.
The telecom sector’s trading volume plummeted 68% to 0.94mn equities, value by 62% to QR29.4mn and deals by 49% to 411.
The transport sector saw its trading volume plunge 42% to 1.03mn shares, while value was up 9% to QR50.62mn. Transactions fell 25% to 328.
The market witnessed a 37% shrinkage in industrials sector’s trading volume to 5.08mn stocks, 36% in value to QR283.44mn and 32% in deals to 5,327.
The real estate sector’s trading volume tanked 37% to 2.33mn equities, value by 37% to QR61.61mn and transactions by 36% to 800.
The banks and financial services sector reported a 36% decline in trading volume to 4.97mn shares, 16% in value to QR362.73mn and 34% in deals to 2,527.
The consumer goods sector’s trading volume was down 9% to 1.56mn stocks, whereas value soared 59% to QR125.27mn and transactions by 30% to 1,125.
However, the insurance sector’s trading volume more than doubled to 1.34mn equities and value also more than doubled to QR79.51mn but on a 41% fall in deals to 257.
In the debt market, there was no trading of treasury bills and government bonds.
Gulf Times
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