News Column

Qatar shares snap two-day losses on local buy support

February 6, 2014

By Santhosh V Perumal/Business Reporter Gulf stocks rebound The Qatar Exchange yesterday snapped a two-day bearish spell as its index gained 0.77%, mainly on buying support from domestic institutions. Overcoming the strong profit-booking by local retail investors, the 20-stock Qatar Index (based on price data) added 0.77% to 11,134.7 points. Insurance and industrials witnessed higher than average buying interests in the market, which is up 7.27% year-to-date. The 20-stock Total Return Index rose 0.77% to 15,995.51 points, the All Share Index (with wider constituents) by 0.51% to 2,766.23 and the Al Rayan Islamic Index by 0.58% to 3,202.82. All the three indices factored in dividend income as well. Insurance stocks appreciated 3.17%, followed by industrials (0.93%), transport (0.55%), banks and financial services (0.21%), telecom (0.11%) and real estate (0.1%); while consumer goods fell 0.13%. About 59% of the stocks strengthened with influential gainers being Industries Qatar , QNB, Barwa, Qatar Islamic Bank , Commercial Bank , Doha Bank , International Islamic, Masraf Al Rayan , Gulf International Services , Nakilat , Vodafone Qatar and Qatar Insurance . However, United Development Company and Mazaya Qatar were seen to buck the trend. Market capitalisation rose 0.38%, or more than QR2bn, to QR584.81bn. Mid-cap equities gained more than 1%, small caps (0.65%) and large caps (0.31%). Domestic institutions turned net buyers to the tune of QR47.84mn compared with net sellers of QR2.82mn the previous day. Foreign institutions were also net buyers to the extent of QR33.17mn against net sellers QR22.68mn on Tuesday. However, Qatari retail investors turned net sellers to the tune of QR78.26mn against net sellers of QR30.27mn the previous day. Non-Qatari individual investors' net selling was QR2.79mn compared to QR4.73mn on Tuesday. Total trading volume fell 10% to 9.43mn stocks, value by 17% to QR416.7mn and transactions by 10% to 3,920. The consumer goods sector's trading volume plummeted 59% to 1.12mn equities, value by 52% to QR32.76mn and deals by 40% to 461. The banks and financial services sector reported a 14% plunge in trading volume to 2.84mn shares, 20% in value to QR165.72mn and 27% in transactions to 1,176. However, the insurance sector's trading volume zoomed 89% to 0.36mn stocks, while value almost tripled to QR24.31mn and deals more than doubled to 163. The market witnessed a 42% surge in telecom sector's trading volume to 0.85mn equities, 39% in value to QR18.19mn and 22% in transactions to 286. The real estate sector saw its trading volume expand 20% to 2.65mn shares, value by 18% to QR56.45mn and deals by 7% to 587. The industrials sector's trading volume gained 12% to 1.4mn stocks, while value fell 25% to QR112.48mn. Transactions rose 16% to 1,145. Although the transport sector's trading volume was flat at 0.21mn equities, there was a 7% rise in value to QR6.79mn but deals were down 34% to 102. In the debt market, there was no trading of treasury bills. However, a total of 10,000 government bonds valued at QR101.75mn changed hands across two transactions. Middle East bourses rebounded yesterday on positive queues from global markets. Dubai's index surged 1.7% to a new multi-year closing high of 3,875 points, confirming a break above technical resistance at 3,807 points, the 50% retracement of its fall from the 2008 peak. Abu Dhabi's index rose 0.6%. Shares in Abu Dhabi Islamic Bank surged 6.3% to their highest level in more than six years after the bank posted a forecast-beating 41% fourth-quarter profit jump. Saudi Arabia's benchmark rose 0.3% with gains across different sectors. Almarai , the Gulf's biggest dairy company, was among the top gainers, rising 4.2%. Elsewhere, Oman's index edged up 0.6% to 7,095 points; Kuwait's index slipped 0.1% to 7,803 points, while Bahrain's index rose 0.8% to 1,300 points.

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Source: Gulf Times (Qatar)

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