28/03/2014 05:05 AST
Strong demand for blue-chip stocks yesterday strengthened the Qatar Exchange as its key index inched near the 11,500 mark.
Foreign institutions’ increased net buying were instrumental in lifting the 20-stock Qatar Index (based on price index) for the third consecutive day by 1.33% to 11,482.34 points
The overall bullish momentum appears to have been supported by the robust performance of the listed companies’ cumulative net profitability in 2013, which according to analysts, provided a solid foundation for this year’s robust expected earnings in view of many multibillion dollar projects being awarded and are in the pipeline.
The industrials, banking, real estate and transport sectors were seen to witness higher demand in the market, which is up 10.62% year-to-date.
Lower net selling by domestic institutions also helped in the overall bullish run in the bourse, where trading volumes rose and it was largely skewed towards the realty, banking and industrials counters.
The index that tracks Shariah-principled stocks was, however, seen to gain slower than the other indices in the bourse.
The 20-stock Total Return Index rose 1.71% to 17,040.36 points, the All Share Index (with wider constituents) by 1.49% to 2,946.58 and the Al Rayan Islamic Index by 1.11% to 3,533.01 points. All the three indices factored in dividend income as well.
Industrials stocks surged 1.93%, followed by banks and financial services (1.9%), real estate (1.7%), insurance (1.34%), transport (1.33%), telecom (0.11%) and consumer goods (0.02%).
More than 76% of the stocks extended gains with major movers being Industries Qatar, QNB, Commercial Bank, Qatar Islamic Bank, Doha Bank, United Development Company, Nakilat, Gulf International Services, Mesaieed Petrochemical Holding, Mazaya Qatar, Qatari Investors Group, Alijarah Holding and Widam Food.
However, Barwa, Milaha, Zad Holding and Al Meera were seen to buck the trend.
Market capitalisation rose 1.38%, or about QR9bn, to QR643.53bn.
Foreign institutions’ net buying amounted to QR85.59mn against QR31.26mn on Wednesday.
Domestic institutions’ net selling stood at QR11.48mn compared to QR37.35mn the previous day.
Qatari retail investors turned net sellers to the tune of QR60.15mn against net buyers of QR10.68mn on Wednesday.
Non-Qatari individual investors’ net profit-booking was QR13.97mn compared to QR4.59mn the previous day.
Total trading volume rose 9% to 18.19mn stocks and value by 20% to QR856.77mn while transactions were down 1% to 9,490.
The banks and financial services sector’s trading volume more than doubled to 5.13mn equities and value also more than doubled to QR310.77mn on a 66% jump in deals to 2,680.
The transport sector’s trading volume shot up 69% to 0.76mn shares to more than double the value to QR20.4mn. Transactions gained 80% to 340.
The real-estate sector saw its trading volume surge 24% to 6.2mn stocks, while value fell 5% to QR139.9mn and deals by 12% to 1,375.
The telecom sector saw its trading volume expand 15% to 0.63mn equities and value by 58% to QR16.16mn but on a 25% decline in transactions to 185.
The insurance sector’s trading volume rose 15% to 0.15mn shares and value by 28% to QR8mn whereas deals shrank 22% to 112.
However, the market witnessed a 42% plunge in consumer goods sector’s trading volume to 1.1mn stocks, 33% in value to QR83.61mn and 7% in transactions to 1,021.
The industrials sector’s trading volume tanked 37% to 4.23mn equities, value by 9% to QR277.94mn and deals by 21% to 3,776.
In the debt market, there was no trading of treasury bills and government bonds.
Gulf Times
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