06/06/2015 01:28 AST
Domestic institutions instilled confidence in the Qatar Stock Exchange (QSE), which gained more than 190 points during the week, making it the best performer in the Gulf region, amid overseas news reports on “uncertainties” regarding Qatar’s 2022 FIFA World Cup.
More than 65% of the stocks extended gains to investors and more than QR11bn in capitalisation was added during the week that saw QSE chief executive Rashid bin Ali al-Mansoori’s clarion call for small and medium enterprises in the wider Gulf Cooperation Council and Middle East and North Africa to seek listing in Qatar’s bourse.
Notwithstanding the strong selling pressure of foreign institutions and local retail investors, the 20-stock Qatar Index surged 1.6% during the week that witnessed global credit rating agency Moody's upgrade the insurance financial strength rating of Qatar Islamic Insurance Company to ‘Baa1’ from ‘Baa2’ with a “stable” outlook.
In comparison, Abu Dhabi rose 1.56%, Muscat (1.12%), Dubai (0.79%), Kuwait (0.14%) and Bahrain (0.05%); while Saudi Arabia fell 0.91% during the week that saw Gulf Drilling International, a subsidiary of Gulf International Services (GIS), expressing confidence in countering the “negative” effects as the present day rates 10% to 15% lower than the previous levels.
“The market has discounted the negative news relating to FIFA,” an analyst, wishing anonymity, said in an apparent reference to the resignation of FIFA president Sepp Blatter in the wake of corruption scandal that rocked Zurich-based global football governing body.
“The recent events at FIFA will not impact on our preparations for the 2022 FIFA World Cup,” the Supreme Committee for Delivery & Legacy said. Moreover, Foreign Minister HE Dr Khalid bin Mohamed al-Attiyah blamed “prejudice” for criticism of 2022 bid and said “No way Qatar can be stripped” (of the right to host the World Cup).
The market opened the week on a stronger note and kept gaining for the second day. On the third day, accretion was rather slow but overall index had reached a high of 12,185 points. Thereafter, profit booking pressures gripped the market and thus the index settled at 12,092 points.
Qatari bourse has so far (year-to-date) reported 1.58% fall against Bahrain’s and Kuwait’s decline of 4.17% and 3.24% respectively; while Saudi Arabia rose 16.02%, Dubai (6.84%), Muscat (1.87%) and Abu Dhabi (1.29%).
Non-Qatari individual investors were also in a selling mode during the week that saw a Boston Consulting Group report, which said Qatar outperformed the GCC and the rest of the world with its “highly impressive” progress in governance, thus translating as high well-being scores.
Large and small cap equities were seen high in demand during the week that witnessed Vodafone Qatar narrow its net loss by 12% to QR216mn for the year ended March 31, 2015 on the back of double-digit increase in revenues from higher customer base.
The index that tracks Shariah-principled stocks was seen gaining much faster than the other indices in the market during the week.
The 20-stock Total Return Index surged 1.6%, All Share Index (comprising wider constituents) by 1.44% and Al Rayan Islamic Index by 2.18% during the week that saw almost halving of overall trade volumes.
Telecom stocks appreciated 4.37%, industrials (3.58%), banks and financial services (2.14%), consumer goods (1.97%) and transport (1.91%); whereas real estate and insurance tanked 2.96% and 2.3% respectively during the week that witnessed transport sector more than double its volume.
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