QE edges higher as valuations prompt buying interest

16/02/2011 00:00 AST

Attractive valuation prompted both foreign and domestic institutions to scout for small and micro cap stocks, lifting Qatar’s bourse by 0.50% yesterday.

The 20-stock benchmark settled 45 points higher at 8,981.10 points, led by Masraf Al Rayan, al khaliji, Commercialbank, QNB, Industries Qatar and Qatar Electricity and Water. The market is up 3.45% year-to-date.

Insurance stocks gained 2.27%, followed by banks and financial institutions (0.81%) and industry (0.34%), while services fell 0.11%.

Market capitalisation was up 0.21% or about QR1bn to QR443.66bn mainly on small, micro and large cap equities, which gained 1.10%, 0.91% and 0.29% respectively.

Of the 43 stocks, 24 gained, while 15 declined and two were unchanged. Two others were not traded.

Foreign institutions turned bullish as they were net buyers to the tune of 7.93% against net sellers of 5.03% in the previous day.

A higher 23.63% of them were into buying compared to 18.68% on Monday, while a lower 15.70% were into selling against 23.71%.

Domestic institutions were increasingly bullish as their net buying rose to 8.02% from 4.32% in the previous day.

A higher 28.69% of them bought equities against 19.64% on Monday and a higher 20.67% of them sold compared to 15.32%.

Qatari individual investors, on the other hand, turned profit-takers as they were net sellers to the extent of 13.84% against net buyers of 1.73% in the previous day.

A lower 35.69% of them purchased equities compared to 46.80% on Monday, while a higher 49.53% sold against 45.07%.

Non-Qatari retail investors’ bearish grip strengthened as their net selling rose to 2.10% from 1.01% in the previous day.

A lower 11.99% of them were into buying against 14.89% on Monday and a marginally lower 14.09% were into offloading compared to 15.90%.

Total trading volume fell 15% to 10.98mn equities, value by 3% to QR344.75mn and deals by 9% to 5,673.

The insurance sector’s trading volume plunged 40% to 0.03mn shares, value by 28% to QR2mn and transactions by 19% to 48.

The industrial sector’s trading volume tanked 31% to 0.64mn shares, value by 16% to QR41.87mn and deals by 31% to 574.

The services sector’s volume shrank 19% to 6.82mn but value rose 2% to QR168.57mn and transactions by 1% to 3,472.

Banks and financial institutions however witnessed a 2% rise in trading volume to 3.49mn equities whereas value fell 1% to QR132.31mn and deals by 18% to 1,579.

Actively traded stocks (in terms of volume) were Mawashi (2.95mn shares); Rayan (2.54mn); Salam International Investments (942,517); Barwa (885,773) and Gulf International Services (494,878).

Gulf Times