News Column

QE snaps 13-day winning run

January 20, 2014

By Santhosh V Perumal/Business Reporter Profit booking particularly in industrials, consumer goods and banking stocks yesterday snapped a 13-day bull-run on the Qatar Exchange and its index retreated below the 11,100 mark. With only two days left for the QR3.23bn initial public offer of Mesaieed Petrochemical Holding Company to close for subscription, local retail investors continued to be net sellers, but with lesser vigour, as the 20-stock Qatar Index (based on price data) shed 0.12% to 11,093.01 points. However, foreign institutions remained bullish, but with lesser intensity on the market, whose key index has been remaining above 11,000 points for the fifth day in succession. Large-cap equities notably witnessed selling pressure on the market, which is however up 6.87% year-to-date. The index that tracks Shariah-principled stocks was the odd one out as the measure reported gains compared to other indices. The 20-stock Total Return Index fell 0.12% to 15,849.37 points and the All Share Index (with wider constituents) by 0.13% to 2,744.58, while the Al Rayan Islamic Index was up 0.07% to 3,228.86. All the three indices factored in dividend income as well. Industrial stocks shrank 0.67%, followed by consumer goods (0.6%) and banks and financial services (0.37%); whereas insurance gained 3.05%, followed by real estate (1.38%), transport (0.44%) and telecom (0.31%). Influential losers included Industries Qatar , QNB, Qatar Islamic Bank , International Islamic, Gulf International Services and Qatari Investors Group . However, Doha Bank , Qatar Insurance Company , United Development Company , Barwa, Mazaya Qatar, Vodafone Qatar and Nakilat bucked the trend. Market capitalisation eroded 0.24%, or more than QR1bn, to QR584.97bn. Large cap equities melted 0.49%; while mid, micro and small caps gained 0.4%, 0.39% and 0.25% respectively. Qatari individual investors' net selling was QR34.4mn compared to QR163.31mn last Thursday. Non-Qatari institutions' net selling amounted to QR0.19mn against QR20.44mn the previous day. Foreign institutions' net buying stood at QR16.27mn compared to QR226.96mn last Thursday. Domestic institutions turned net buyers to the tune of QR18.42mn against net sellers of QR43.29mn the previous day. Total trading volume fell 23% to 12.92mn stocks, value by 38% to QR478.39mn and transactions by 15% to 5,692. The industrials sector's trading volume plummeted 54% to 0.71mn equities, value by 41% to QR66.12mn and deals by 37% to 1,014. There was a 51% plunge in consumer goods sector's trading volume to 0.45mn shares, 66% in value to QR19.06mn and 35% in transactions to 360. The banks and financial services sector reported a 40% shrinkage in trading volume to 3.49mn stocks, 53% in value to QR193.25mn and 19% in deals to 1,909. The insurance sector's trading volume tanked 25% to 0.52mn equities and value by 16% to QR38.31mn, while transactions rose 47% to 311. The market witnessed a 13% decline in real estate sector's trading volume to 5.19mn shares, while value rose 15% to QR107.72mn. Deals were down 2% to 1,280. The transport sector's trading volume fell 12% to 0.84mn stocks and value by 25% to QR25.34mn, whereas transactions gained 8% to 371. However, the telecom sector saw its trading volume surge 93% to 1.72mn equities, value by 48% to QR28.58mn and deals by 40% to 447. In the debt market, there was no trading of treasury bills and government bonds.

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Source: Gulf Times (Qatar)

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