Strong profit booking drags QSE below 10,400 levels

Strong profit booking, especially in the banking counter, yesterday dragged the Qatar Stock Exchange below 10,400 levels.

Foreign institutions’ substantially weakened buying interests led the 20-stock Qatar Index shed 0.78% to 10,376.94 points, which is up 21.75% year-to-date.

Market capitalisation eroded about QR7bn or 1.16% to QR582.22bn, mainly on account of large cap equities.

Non-Qatari individuals and Gulf funds turned bullish on the market, where Islamic stocks were seen declining slower than the other indices.

Trade turnover and volumes were on the decline on the bourse, where banking and real estate sectors together accounted for about 59% of the total volume.

The Total Return Index lost 0.78% to 18,283.02 points, All Share Index by 0.83% to 3,061.14 points and Al Rayan Islamic Index (Price) by 0.28% to 2,424.33 points.

The banks and financial services index plunged 2.09%, industrials (0.49%), insurance (0.26%) and trans- port (0.23%); while telecom gained 1.96%, real estate 1.33% and consumer goods 0.13%.

Major losers included QNB, Qatar Islamic Bank, Dlala, Qatar Electricity and Water, Industries Qatar, United Development Company and Milaha; even as Islamic Holding Group, Qatar National Cement, Gulf International Services, Ezdan and Ooredoo were among the gainers.

Non-Qatari funds’ net buying declined significantly to QR56.44mn compared to QR127.53mn on November 5. The Gulf individuals’ net profit booking grew marginally to QR1.12mn against QR0.79mn the previous day.

However, non-Qatari individuals turned net buyers to the tune of QR4.32mn compared with net sellers of QR9.6mn on Monday.

The Gulf funds were also net buyers to the extent of QR1.08mn against net profit takers of QR5.15mn on November 5.

Local individuals’ net profit booking weakened considerably to QR49.88mn compared to QR71.93mn the previous day.

Domestic institutions’ net selling decreased substantially to QR10.84mn against QR40.06mn on Monday.

Total trade volume fell 24% to 6.4mn shares, value by 38% to QR203.69mn and transactions by 19% to 4,231.

The banks and financial services sector saw 29% plunge in trade volume to 1.99mn equities, 36% in value to QR94.84mn and 33% in deals to 1,339.

The real estate sector’s trade volume plummeted 26% to 1.76mn stocks, value by 33% to QR32.51mn and transactions by 20% to 734.

There was 26% shrinkage in the consumer goods sector’s trade volume to 0.17mn shares and 32% in value to QR16.23mn but on 8% jump in deals to 376.

The industrials sector’s trade volume tanked 25% to 0.91mn equities, value by 58% to QR25.58mn and transactions by 12% to 776.

The telecom sector reported 15% decline in trade volume to 0.95mn stocks, 36% in value to QR21.49mn and 16% in deals to 579.

The insurance sector’s trade volume shrank 11% to 0.16mn shares, value by 38% to QR4.05mn and transactions by 7% to 121.

However, the market witnessed 2% increase in the transport sector’s trade volume to 0.45mn equities, 8% in value to QR8.99mn and 23% in deals to 306.