QE Weekly Review

Increased buying by foreign institutions helped the Qatar Exchange gain during the week, which saw other Gulf bourses in negative trajectory.

Mid and micro cap equities largely helped the QE Index (based on price data) and Total Return Index (which factors in dividend income as well) gain 0.21% each in the week that saw Saudi Arabian bourse shed 2.56%, Muscat (2.37%), Dubai (0.91%), Bahrain (0.71%), Abu Dhabi (0.23%) and Kuwait (0.01%).

However, Doha’s bourse shrunk year-to-date (ytd) 5.63% vis-à-vis Muscat’s fall of 4.39% and Bahrain (2.61%); while Dubai, Saudi Arabia, Abu Dhabi and Kuwait gained 10.17%, 3.77%, 2.67% and 0.8% respectively.

Realty and consumer goods specifically came under buying spotlight in the week that saw a Bank of America Merrill Lynch report, which said Qatar’s real economic growth will exceed 6% this year in line with the International Monetary Fund’s projections, based on the “strong” performance of the non-hydrocarbon sector.

Major gainers included United Development Company, Barwa, Industries Qatar, Commercialbank, National Leasing, Salam International Investment, Mawashi and Gulf International Services; even as Vodafone Qatar, Qatar Telecom, Nakilat, Gulf Warehousing, Mazaya Qatar and Qatari Investors Group bucked the trend in the week that witnessed global credit rating agency Standard & Poor’s assign `AA’ rating to Qatar’s proposed dollar-denominated sukuk.

The QE All Share Index (comprising wider constituents) was up 0.05% with the indices of realty, consumer goods and industrials gaining 4.07%, 1.01% and 0.52%, while those of insurance, telecom, transport and banks fell 1.17%, 0.68%, 0.58% and 0.55% respectively in the week that saw Qatar’s cost of living, based on consumer price index, rise 1.6% year-on-year in June.

The indices of transport and real estate have lost ytd 9.57% and 1.08%; whereas those of consumer goods, telecom, insurance, industrials and banks and financial services gained 25.83%, 14.06%, 9.38%, 7.25% and 1.15% respectively.

Of the 42 stocks; only 19 advanced, while 21 declined and two were unchanged. Four of the 12 banks and financial services, five each of the eight consumer goods and the eight industrials, three of four real estate and two of the five insurance stocks closed higher in the week credit rating agency Moody’s report say modest global economic recovery and reduced refinance requirements helped the GCC non-financial corporates improve their credit quality. Market capitalisation was up 0.04% or QR20mn to QR453.62bn with micro and mid cap equities gaining 0.65% and 0.55%; while large and small caps lost 0.32% and 0.14% respectively in the week.

Micro and small cap equities have gained ytd 14.85% and 5.41%; while mid and large caps fell 6.25% and 5.68% respectively.

Foreign institutions were increasingly bullish as their net buying zoomed to 40.26% from 2.27% the previous week. Their net buying amounted to QR232.16mn.

A much higher 54.87% of them bought equities compared to 24.85% the week ended July 5 whereas a lower 14.61% of them offloaded against 22.58%.

Domestic institutions turned profit takers that they were net sellers to the extent of 43.89% compared with net buyers of 0.43% the previous week. Their net selling was QR253.09mn. A lower 8.25% of them were into buying against 15.04% the week ended July 5 while a much higher 52.14% into selling compared to 14.61%.

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