By Santhosh V Perumal/Business Reporter Dividend expectations continued to build up bullish momentum on the Qatar Exchange, helping its key index inch near the 10,900 levels and market capitalisation gain QR13bn during the week. Foreign institutions' QR520mn net buying lent substantial support in lifting the 20-stock Qatar Index by 3.11% in the week, which saw Muscat gain 3.87%, Kuwait (1.58%), Abu Dhabi (1.34%), Bahrain (1.24%), Dubai (0.93%) and Saudi Arabia (0.69%). An across-the-board buying — particularly in telecom, transport, banks and insurance stocks — sustained the bullish momentum during the week, notwithstanding the profit-booking pressures from local retail investors in view of the QR3.23bn initial public offer of Mesaieed Petrochemical Holding Company (MPHC), a Qatar Petroleum unit. All the five sessions were in the positive trajectory during the week that witnessed Doha Insurance Company (DIC) line up rights issue to reap as much as QR437mn as part of shoring up capital base and improving the credit rating, as it embarks on local and international expansion. Small and mid cap stocks were the most sought-after in the week that saw Nakilat Damen Shipyards Qatar, a joint venture between Nakilat and Dutch shipbuilder Damen, lay the keels for two 16m-long stan tugs. The 20-stock Total Return Index rose 3.11%, All Share Index (comprising wider constituents) by 2.55% and Al Rayan Islamic Index by 2.44% in the week that saw Qatar's commercial banks' brokerage arm register enhanced earnings through intermediary business year-to-date (YTD) in December. However, domestic institutions were increasingly into selling during the week, which saw Abu Dhabi Investment Company say that fourth-quarter earnings are likely to be the main influence on Gulf markets in the coming weeks. "The cash liquidity pressures on account of (MPHC) IPO have already been discounted. Now, the dividend expectations are driving the market sentiments," an analyst said. QE has risen 4.77% YTD compared to 4.71% in Muscat, 4% in Dubai , 2.97% in Abu Dhabi , 1.67% in Saudi Arabia, 1.58% in Kuwait and 1.17% in Bahrain . The overall market trading volume was largely skewed towards banks and financial services, realty and industrials in the week. About 74% of the traded stocks extended gains. Of the 42 stocks, 31 advanced; while only nine declined and two were unchanged in the week. Among the influential gainers were Industries Qatar , QNB, Barwa, Mazaya Qatar, Ezdan , Milaha , Nakilat , Ooredoo , Qatar Islamic Bank , Doha Bank , Commercial Bank , International Islamic, Masraf Al Rayan , al khaliji, Al Meera , Widam Food , Doha Insurance and Qatar Islamic Insurance . However, United Development Company and Vodafone Qatar bucked the trend. Telecom stocks appreciated 4.91%, followed by transport (3.61%), insurance (3.34%), banks and financial services (3.32%), industrials (1.26%), consumer goods (0.81%) and real estate (0.37%). All of the 12 banks and financial services, five each of the eight consumer goods and the eight industrials, three each of the five insurers and the four realty, two of the three transport and one of the two telecom stocks closed higher in the week. Market capitalisation surged 2.26% or about QR13bn to QR574.37bn. Small and mid cap stocks gained more than 3% and large and micro by more than 2% each respectively. Small, mid, large and micro cap stocks have gained YTD 6.1%, 4.29%, 3.59% and 2.45% respectively. Foreign institutions' net buying amounted to QR519.71mn compared to QR126.22mn the previous week. However, domestic institutions' net selling was QR346.48mn against QR95.39mn the week ended January 2 . Local retail investors' net selling stood at QR144.56mn compared to QR30.61mn the previous week. Non-Qatari individual investors' net selling was QR28.68mn against QR0.23mn the week ended January 2 . Total trading volume more than doubled to 61.94mn shares with the banks and financial services sector accounting for 29.72% of the total, realty (28.03%), industrials (15.55%), consumer goods (8,45), transport (7.23%), telecom (7.1%) and insurance (3.97%). The insurance sector's trading volume jumped almost five-fold to 2.46mn stocks, real estate more than tripled to 17.36mn, transport more than doubled to 4.48mn, consumer goods more than doubled to 5.2mn, banks and financial services surged by 96% to 18.41mn and industrials by 82% to 9.63mn, while telecom fell 24% to 4.4mn. Total stocks trading value more than doubled to QR2.9bn with the banks and financial services accounting for 36.01% of the total, industrials (25.03%) realty (15.57%), consumer goods (11.12%), transport (4.92%), insurance (3.7%) and telecom (3.64%). The consumer goods sector's trading value gained almost five-fold to QR322.22mn, insurance more than quadrupled to QR107.16mn, real estate almost quadrupled to QR451.14mn, banks and financial services almost tripled to QR1.04bn, transport more than doubled to QR142.4mn, industrials expanded 85% to QR725.19mn and telecom by 36% to QR105.59mn. Barwa led the trading value with its stocks accounting for 11.94% of the total, followed by Qatari Investors Group (10.05%) and QNB (8.76%). Total market transactions shot up 87% to 31,167 with the banks and financial services sector's share at 33.17%, industrials (25.78%), realty (16.85%), consumer goods (9.84%), telecom (5.21%), transport (5.03%) and insurance (4.11%). The insurance sector's deals almost quadrupled to 1,281; real estate more than doubled to 5,252; consumer goods more than doubled to 3,068; banks and financial services soared 96% to 10,337, transport by 88% to 1,568, industrials by 44% to 8,036 and telecom by 13% to 1,625. In the debt market, a total of 40,000 treasury bills valued at QR396.68mn changed hands across two transactions. As many as 7,500 government bonds worth QR76.06mn traded across one deal during the week.
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