20/12/2016 07:42 AST
Reversing the two-day bearish trend brought about by the US Federal Reserve’s 0.25% hike in rates, Qatar Stock Exchange on Monday opened the week on a stronger footing and its key index gained 48 points, taking cue from the 2017 Budget.
Industrials and consumer goods counters witnessed higher demand as the 20-stock Qatar Index rose 0.47% to 10,272.37 points.
Islamic stocks were seen considerably outperforming the main indices in the market, whose year-to-date losses were at 1.51%.
"The market eased down after finding a resistance line at around 10,400 points, but still early to anticipate an end to the positive sentiment as attempts to break above 10,400 points can still be seen," Kamco said in its technical analysis.
However, managing to do so would re-activate the buying potential and promote additional strength towards 10,600 points and maybe 10,900 points, it said.
On the contrary, only a close below 10,000 would bring back to focus 9,800 points and 9,700 point. Weekly and daily relative strength index indicators are currently looking "neutral", it said, adding “Medium-term investors can stay in the market as the index is closing above 10,000 points, while long-term investors can enter the market at levels higher than 10,400.”
Foreign institutions and individuals as well as Gulf retail investors turned net buyers in the bourse.
Trade turnover and volumes were however on the decline in the market, where banking, real estate and telecom sectors together accounted for about 78% of the total volume.
Market capitalisation gained more than QR2bn or 0.44% to QR553.41bn as mid, small, micro and large cap equities added 1.18%, 1.03%, 0.9% and 0.07% respectively.
The Total Return Index rose 0.47% to 16,620.01 points, All Share Index by 0.46% to 2,823.18 points and Al Rayan Islamic Index 1.47% to 3,831.06 points.
Industrials sectors saw its index surge 2.26%, consumer goods (0.74%), transport (0.24%) and telecom (0.02%), while insurance fell 0.21% and banks and financial services (0.16%). The index of real estate was rather unchanged.
More than 60% of the traded stocks extended gains with major movers being Industries Qatar, Qatari Investors Group, Aamal Company, Gulf International Services, Gulf Warehousing, Barwa, Commercial Bank, Alijarah Holding, Dlala, Islamic Holding Group and Vodafone Qatar.
Nevertheless, QNB, Qatar Insurance, Mazaya Qatar, Ezdan, Doha Bank, Qatar First Bank, al khaliji and Qatar Electricity and Water saw their stocks lose sheen.
Non-Qatari institutions turned net buyers to the tune of QR7.07mn against net sellers of QR19.4mn the previous trading day.
Non-Qatari individual investors were also net buyers to the extent of QR3.49mn compared with net sellers of QR0.35mn last Thursday.
The GCC (Gulf Cooperation Council) individual investors turned net buyers to the tune of QR0.24mn against net sellers of QR0.3mn on December 15.
However, local retail investors turned net sellers to the extent of QR15.61mn compared with net buyers of QR10.99mn the previous trading day.
The GCC institutions were also net profit takers to the tune of QR0.67mn against net buyers of QR2.76mn last Thursday.
Domestic institutions’ net buying weakened to QR5.46mn compared to QR6.33mn on December 15.
Total trade volume fell 28% to 7.48mn shares and value by 20% to QR216.83mn, while deals gained 16% to 4,032.
There was 66% plunge in the insurance sector’s trade volume to 0.12mn equities, 72% in value to QR6.21mn and 29% in transactions to 105.
The consumer goods sector’s trade volume plummeted 53% to 0.18mn stocks, value by 11% to QR8.6mn and deals by 1% to 248.
The banks and financial services sector saw 48% shrinkage in trade volume to 2.95mn shares, 44% in value to QR85.49mn and 12% in transactions to 1,363.
The telecom sector’s trade vol
Gulf Times
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