Posted on February 27, 2016

Bearish sentiments continued to torment the Qatar Stock Exchange for the second day on Thursday as the key index lost another 70 points mainly on selling pressure from domestic and Gulf institutions. Banking and transport stocks notably witnessed profit-booking to drag the 20-stock Qatar Index 0.71% to 9,847.36 points. Lower buying interests of local retail investors also played its part in the bearish run in the bourse, which is down 5.58% year-to-date. However, non-Qatari individual investors and institutions turned bullish in the market, where trading turnover fell amid increase in volumes.

The index that tracks Shariah-principled stocks however saw gains vis-à-vis declines in the other indices in the market, where consumer goods, industrials, realty and banking goods stocks together accounted for about 90% of the total trading volume. Market capitalisation eroded 1%, or more than QR5bn, to QR523.34bn with large, mid and small cap equities melting 1.28%, 0.33% and 0.17%. Micro caps rose 0.73%. The Total Return Index was down 0.2% to 15,598.64 points and the All Share Index by 0.26% to 2,673.51 points, while the Al Rayan Islamic Index rose 0.38% to 3,613.76 points.

Banks and financial services stocks shrank 1.06%, followed by transport (0.58%), insurance (0.56%), industrials (0.3%) and telecom (0.22%); whereas real estate and consumer goods gained 1.5% and 0.89% respectively.Major losers included Industries Qatar, Mannai Corporation, Vodafone Qatar, Nakilat, QNB, Doha Bank, Qatar Islamic Bank and Commercial Bank; even as Gulf International Services, Aamal Company, Ezdan, Mazaya Qatar, United Development Company and Islamic Holding Group bucked the trend.

Domestic institutions’ net profit taking increased to QR18.59mn compared to QR9.24mn on Wednesday. The GCC (Gulf Cooperation Council) institutions turned net sellers to the tune of QR10.46mn against net buyers of QR2.34mn on February 24. Local retail investors’ net buying weakened to QR21.28mn compared to QR28.86mn the previous day. However, non-Qatari institutions turned net buyers to the extent of QR2.83mn against net sellers of QR11.32mn on Wednesday. Non-Qatari individual investors were also net buyers to the tune of QR5.13mn compared with net sellers of QR6.7mn on February 24.

The GCC individuals’ net profit booking weakened to QR0.23mn against QR3.95mn the previous day. Total trade volume rose 10% to 10.81mn shares, value by 2% to QR328.96mn and deals by 12% to 5,310. The industrials sector’s trade volume more than doubled to 2.51mn equities and value also more than doubled to QR105.04mn on a 20% jump in transactions to 1,629. The telecom sector reported a 52% surge in trade volume to 0.88mn stocks and 9% in value to QR23.88mn, but on a 7% fall in deals 666. The consumer goods sector’s trade volume soared 45% to 3.08mn shares, while value was down 3% to QR46.14mn and transactions by 3% to 798.

However, there was a 78% plunge in the transport sector’s trade volume to 0.17mn equities, 73% in value to QR8.72mn and 60% in deals to 157. The insurance sector’s trade volume plummeted 67% to 0.07mn stocks, value by 82% to QR2.75mn and transactions by 67% to 70. The banks and financial services sector saw a 29% shrinkage in trade volume to 1.98mn shares, 16% in value to QR102.1mn and 26% in deals to 1,304. The real estate sector’s trade volume declined 4% to 2.11mn equities, value by 22% to QR40.32mn and transactions by 10% to 686. In the debt market, there was no trading of treasury bills and government bonds.

source: Gulf Times