QSE maintains weekly gaining trend as foreign investors remain bullish
Loans of commercial banks in Qatar grew by 7.2% year-to-date for 2021, compared to a growth of 8.6% in 2020: QNBFS report
CONTINUING its weekly gaining trend, the Qatar Stock Exchange (QSE) general index increased by 207.80 points, or 1.78 percent, during the last week, to close at 11,871.43 points.
Foreign institutions remained bullish throughout the week with net buying of QR508 million against net buying of QR427 million in the previous week.
Foreign retail investors also remained bullish throughout the week with net buying of QR24 million against net buying of QR40 million in the previous week.
As of Wednesday closing, foreigners were net buyers of Qatari stocks worth 1,359.53 million since the start of the current financial year.
Qatari institutions, however, remained negative with net selling of QR399 million against net selling of QR389 million in the week before. Qatari retail investors also remained bearish with net selling of QR133 million against net selling of QR78 million the week before.
Despite selling pressure from Qatari investors, the week saw QSE’s market capitalisation go up by 1.27 percent to QR684.4 billion as compared to QR675.8 billion at the end of the previous week.
Trading value during the week increased by 7.9 percent to QR3,370.2 million against QR3,123.6 million in the previous trading week. QN Group (QN ) was the top value traded stock during the week with a total traded value of QR390.6 million.
Trading volume receded by 4.1 percent to 1,200.6 million shares against 1,251.8 million shares in the previous trading week. Gulf International Services (GIS) was the top volume traded stock during the week with a total traded volume of 200 million shares.
The number of transactions marginally increased 0.8 percent to 70,560 against 70,032 in the previous week.
Masraf Al Rayan, Industries Qatar and QN were the primary contributors to the weekly index gain. Masraf Al Rayan and Industries Qatar added 62.6 and 42.1 points to the index, respectively. Moreover, QN added another 32.4 points to the index.
GIS was the best performing stock for the week, with a gain of 11 percent. On the other hand, Qatar German Company for Medical Devices was the worst-performing stock with a decline of 5.8 percent.
Of the 47 companies traded during the week, 26 ended the week higher. While 20 stocks closed lower, there was no change in the remaining one stock.
The week saw six of the seven sector indices close in the positive territory. The transport sector, which gained 3.1 percent, was the best performing sector index for the week. The baking and the financial services sector, which gained almost 2 percent, was also vital in lifting the general index higher.
Except for the telecom sector, all other sectors gained.
Meanwhile, in a monthly update on the country’s banking sector, QN FS said that the total assets of commercial banks in Qatar remained flat month-on-month (MoM) and up 5.9 percent year-todate (YTD) in September 2021 and stood at QR1.78 trillion.
The bank’s loan book declined by 0.7 percent MoM and increased 7.2 percent YTD, while deposits increased by 2.1 percent MoM and 7.7 percent YTD in the month of September 2021.
Public sector pushed the credit downwards (down 4.5 percent MoM in September). As deposits went up by 2.1 percent in September, the LDR went down to 124.1 percent against 127.6 percent in August.
Public sector deposits increased by 4.3 percent MoM and 11.4 percent YTD for the month of September 2021, driving the overall deposits growth. Looking at segment details, the government institutions’ segment representing 56 percent of public sector deposits went up by 7.8 percent MoM and 5.8 percent YTD 2021.
The semi-government institutions’ segment declined by 2.4 percent MoM and went up 14 percent YTD 2021. The government segment moved up by 1.3 percent MoM and 22 percent YTD. Non-resident deposits increased by 1.7 percent MoM and 15.4 percent YTD 2021.
Private sector deposits went up by 0.7 percent MoM and 0.6 percent YTD 2021. On the private sector front, the consumer segment moved down by 0.2 percent MoM and increased 2.5 percent YTD, while the companies and institutions’ segment went up by 1.9 percent MoM and went down 1.7 percent YTD 2021.
The overall loan book declined 0.7 percent in September 2021. Total domestic public sector loans went down by 4.5 percent MoM and up 10 percent YTD. The government segment’s loan book declined by 11.9 percent MoM and increased by 15.4 percent YTD 2021.
However, the government institutions’ segment representing 55 percent of public sector loans increased by 1.2 percent MoM and 7.8 percent YTD, while the semi-government institutions’ segment went up by 2.5 percent MoM and declined 6 percent YTD.
Private sector loans gained by 1.4 percent MoM and are up 7.4 percent YTD. Services segment mainly contributed toward the private sector loan growth for the month of September 2021. Services contributing 28 percent to private sector loans increased by 3.2 percent MoM and 12.6 percent YTD. Real Estate contributing 22 percent to private sector loans went up by 0.7 percent MoM and 5.8 percent YTD.
General Trade that contributes 21 percent to private sector loans moved up by 1.6 percent MoM and 7.7 percent YTD. Consumption and others segment that contributes 21 percent to private sector loans increased 0.3 percent MoM and 0.9 percent YTD during the month of September 2021.