QE Weekly Market Report

20/04/2014 06:49 AST

The Qatar Exchange (QE) Index gained 153.77 points, or 1.24%, during the trading week, to close at 12,550.98 points. Market capitalisation increased by 2.73% to reach QR728.6bn as compared to QR709.2bn at the end of the previous week. Of the 43 listed companies, 27 companies ended the week higher, while 13 fell and 3 remained unchanged. Ezdan Holding Group (ERES) was the best performing stock for the week, with a gain of 24.40% on 4.8mn shares traded. On the other hand, Gulf Warehousing Company (GWCS) was the worst performing stock with a decline of 8.37% on only 1.0mn shares traded.

During the week, Qatar Islamic Bank (QIBK), Ahli Bank (ABQK) and Gulf Warehousing Company (GWCS) reported their first quarter 2014 (1Q2014) results. QIBK posted a net profit (to equity) of QR335.4mn in 1Q2014. On a quarter-over-quarter (QoQ) basis, the net income was down 6.9%. ABQK reported a net profit of QR150.8mn in 1Q2014, surging by 34.5% QoQ (+11.6% year-over-year or YoY) on the back of a 75.2% QoQ drop in net provisions and impairments. Net interest income dipped by 2.5% QoQ (+14.6 YoY) to reach QR179.0mn. GWCS reported a net profit of QR28.9mn vs net income of QR26.8mn in 4Q2013. Overall revenue increased to QR152.9mn in 1Q2014 vs QR127.9mn in 4Q2013, a growth of 19.6% QoQ. Logistics operations (including Logistics Village Qatar) contributed QR104.8mn while freight forwarding contributed QR48.1mn. In our view, the growth primarily came from LVQ Phase 3’s greater occupancy levels. Direct costs were QR98.9mn, while interest charges were QR8.6mn for the quarter.

Trading value during the week decreased by 13.66% to reach QR5.44bn vs QR6.31bn in the prior week. The banks and financial services sector led the trading value during the week, accounting for 30.0% of the total equity trading value. Mazaya Qatar Real Estate Development (MRDS) was the top value traded stock during the week with total traded value of QR422.8mn. Trading volume decreased by 4.52% to reach 168.6mn shares vs 176.6mn shares in the prior week. The number of transactions fell by 5.39% to reach 65,359 transactions versus 69,084 transactions in the prior week. The real estate sector led the trading volume, accounting for 30.4%. Vodafone Qatar was the top volume traded stock during the week with total traded volume of 22.9mn shares.

Foreign institutions remained bullish for the week with net buying of QR246.1mn vs net buying of QR264.9mn in the prior week. Qatari institutions remained bearish with net selling of QR206.4mn vs net selling of QR209.4mn the week before. Foreign retail investors remained bearish for the week with net selling of QR34.3mn vs net selling of QR30.3mn in the prior week. Qatari retail investors remained bearish with net selling of QR4.9mn vs QR25.9mn the week before.

Gulf Times