Qatar shares edge lower amid selling pressure

The Qatar Stock Exchange yesterday lost for the second day and its key index settled below 10,000 levels, mainly dragged by local retail investors and foreign funds.

The insurance, consumer goods, realty, industrials and banking counters witnessed higher than average selling pressure as the 20-stock Qatar Index shrank 0.27% to 9,999.46 points, although it touched an intraday low of 9,982 points.

Gulf individuals were also seen marginally bearish in the market, whose year-to-date losses swelled to 4.09%.

Domestic funds and foreign individuals were however seen bullish in the market, where Islamic stocks were seen declining faster than the conventional ones. Market capitalisation saw more than QR2bn, or 0.34%, decrease to QR595.61bn, mainly owing to mid and microcap segments.

A total of 25,215 exchange traded funds (both Masraf Al Rayan-sponsored QATR and Doha Bank-sponsored QETF) valued at QR245,820 changed hands across four transactions; while in the debt market, there was no trading of sovereign bonds and treasury bills.

Trade turnover and volumes were on the decline in the bourse, where the real estate and industrials sectors together accounted for about 60% of the total trading volume. The Total Return Index shed 0.27% to 19,223.64 points, the Al Rayan Islamic Index (Price) by 0.42% to 2,350.54 points and the All Share Index by 0.38% to 3,091.61 points. The insurance index declined 0.95%, consumer goods and services (0.82%), realty (0.47%), industrials (0.44%) and banks and financial services (0.33%); while transport and telecom gained 0.21% and 0.13% respectively.

About 73% of the traded constituents were in the red with major losers being Salam International Investment, Alijarah Holding, Al Khaleej Takaful, Medicare Group, Mazaya Qatar, Aamal Company, Qatar Oman Investment, Qatar Insurance, Vodafone Qatar and United Development Company; even as Gulf International Services, Commercial Bank, Inma Holding, Ooredoo and Doha

Bank were among the gainers. Local individuals’ net selling increased substantially to QR27.08mn compared to QR9.68mn on October 14.

Foreign institutions turned net sellers to the tune of QR21.21mn against net buyers of QR2.01mn the previous day.

Gulf individuals were net sellers to the extent of QR0.68mn compared with net buyers of QR3.13mn on Wednesday. However, domestic funds’ net buying increased considerably to QR49.16mn against QR22.71mn on October 14.

Foreign individuals turned net buyers to the tune of QR1.79mn compared with net sellers of QR1.37mn the previous day.

Gulf funds were also net buyers to the extent of QR1.05mn against net sellers of QR4.88mn on Wednesday.

Arab individuals’ net profit booking weakened notably to QR3.07mn compared to QR11.87mn on October 14.

Arab institutions continued to have no major exposure.

Total trade volumes fell 9% to 166.4mn shares and value by 21% to QR337.67mn, while transactions rose 4% to 7,219. There was a 57% plunge in the transport sector’s trade volume to 2.76mn equities, 64% in value to QR8.25mn and 31% in deals to 218.

The industrials sector’s trade volume plummeted 25% to 46.36n stocks and value by 30% to QR56.5mn, whereas transactions grew 4% to 1,623.

The banks and financial services sector saw a 20% shrinkage in trade volume to 27.38mn shares and 30% in value to QR115.29mn but on a 17% growth in deals to 2,368.

The consumer goods and services sector’s trade volume tanked 14% to 31.27mn equities, value by 39% to QR42.3mn and transactions by 11% to 867.

The insurance sector reported a 13% contraction in trade volume to 2.66mn stocks, 23% in value to QR5.13mn and 31% in deals to 144.

However, the real estate sector’s trade volume soared 40% to 52.71n shares, value by 34% to QR99.29mn and transactions by less than 1% to 1,598.

The market witnessed an 8% rise in the telecom sector’s trade volume to 3.24mn equities, less than 1% in value to QR10.91mn and 38% in deals to 401.