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The ex­ten­sion of bank guar­an­tees for the pri­vate sec­tor to one year has bright­ened the prospects in the Qatar Stock Ex­change (QSE), which soared 137 points this week, ahead of Eid hol­i­days. The do­mes­tic and Gulf funds were in­creas­ingly net buy­ers this week, which saw the gov­ern­ment in­clude con­tract­ing and con­struc­tion sec­tors un­der the ben­e­fi­cia­ries for the Na­tional Re­sponse Guar­an­tees Programme, which pro­vides guar­an­tees to lo­cal banks by the Qatar Devel­op­ment Bank. For­eign and lo­cal in­di­vid­u­als were in­creas­ingly net buy­ers this week, which saw Sheikh Ha­mad bin Mo­hamed al-Thani, se­nior vice pres­i­dent (In­vest­ment and Trea­sury), Qatar Insurance Com­pany, view that the QSE-listed firms have strong cap­i­tal and sound busi­ness mod­ule to sup­port them in mit­i­gat­ing the im­pact of the Covid-19 pan­demic.

Four of the five days wit­nessed strong buy­ing in­ter­ests this week, which saw Aven­ticum Cap­i­tal Man­age­ment, a joint ven­ture of the Qatar In­vest­ment Au­thor­ity and Credit Suisse, “de­cid­edly op­ti­mistic” on the QSE in the long-term as the mar­ket has been built on a strong base of prof­itable com­pa­nies. Not­with­stand­ing the in­creased net profit book­ing pres­sure from for­eign funds, the 20-stock Qatar Index set­tled 1.58% higher this week which saw Thaddeus Malesa, Se­nior Ad­viser, Eco­nomics and Re­search of the Fi­nan­cial Sec­tor Of­fice at the QFC high­light cer­tain “bright spots” such as in­for­ma­tion and com­mu­ni­ca­tion that are “im­per­vi­ous” to coro­n­avirus.

The bank­ing and in­dus­tri­als coun­ters wit­nessed higher than av­er­age de­mand this week which saw Cap­i­tal In­tel­li­gence, an in­ter­na­tional rat­ing agency, af­firm the long-term and short­term for­eign cur­rency rat­ing of QNB at ‘AA-’ and ‘A1+’, re­spec­tively.

The To­tal Re­turn Index grew 1.58%, Al Rayan Is­lamic Index by 1.56% and All Share Index by 1.85% this week this which saw as many as 2.09mn Mas­raf Al Rayan spon­sored ex­change traded fund QATR val­ued at QR4.28mn changed hands across 84 trans­ac­tions. Mar­ket cap­i­tal­i­sa­tion reg­is­tered more than QR9bn or 1.83% ex­pan­sion to QR504.4bn mainly on large and small cap seg­ments this week which saw a to­tal of 1,730 Doha Bank-spon­sored QETF worth QR15,056 traded across three deals.

The banks and fi­nan­cial ser­vices index soared 2.35%, in­dus­tri­als (2.24%), realty (1.1%), insurance (0.66%), con­sumer goods and ser­vices (0.57%) and trans­port (0.04%); whereas tele­com de­clined 0.44% this week which saw Aa­mal Com­pany chief ex­ec­u­tive and man­ag­ing di­rec­tor Sheikh Mo­hamed bin Faisal al-Thani say that it has fast tracked its “mo­bile” phar­ma­cies and mo­bile app ‘Ri­mads’ for home de­liv­ery of medicines as part of mea­sures to com­ple­ment the gov­ern­ment’s ef­forts to con­tain the spread of the pan­demic. More than 62% of the traded con­stituents ex­tended gains with ma­jor movers be­ing QNB, Qatar Is­lamic Bank, Doha Bank, Mas­raf Al Rayan, al khal­iji, Qatar First Bank, Dlala, Is­lamic Hold­ing Group,

In­dus­tries Qatar, Aa­mal Com­pany, Gulf In­ter­na­tional Ser­vices, Qatar Na­tional Cement, Bal­adna, Qatar Insurance, Mazaya Qatar, Gulf Ware­hous­ing and Mi­laha this week which saw Nak­i­lat take de­liv­ery of a newly built liq­ue­fied nat­u­ral gas car­rier, “Global En­ergy”, which will be com­mer­cially and tech­ni­cally man­aged in-house.

Nev­er­the­less, ma­jor losers in­cluded Com­mer­cial Bank, Ez­dan, Nak­i­lat, Qatar Oman In­vest­ment, Qatar In­dus­trial Man­u­fac­tur­ing, Qatar Ger­man Com­pany for Med­i­cal De­vices and Voda­fone Qatar this week which saw Qatar’s in­dus­trial pro­duc­tion ex­pand this March.

Trade turnover grew amidst marginally lower vol­umes this week which saw in­dus­tri­als sec­tor ac­count for 23% of the to­tal trad­ing vol­ume, con­sumer goods and ser­vices (18%), banks and fi­nan­cial ser­vices (17%), real es­tate and insurance (14% each), trans­port (11%) and tele­com (2%) this week.

In value, the banks and fi­nan­cial sec­tor’s share was 40%, in­dus­tri­als (16%), insurance, trans­port and con­sumer goods and ser­vices (12% each), realty (6%) and tele­com (2%) this week.

Do­mes­tic in­sti­tu­tions’ net buy­ing in­creased in­flu­en­tially to QR174.49mn against QR99.99mn the week ended May 14.

The Gulf in­sti­tu­tions’ net buy­ing grew sub­stan­tially to QR34.26mn com­pared to QR7.03mn the pre­vi­ous week. Lo­cal re­tail in­vestors’ net buy­ing strength­ened con­sid­er­ably to QR8.22mn against QR3.28mn a week ago. For­eign in­di­vid­u­als’ net buy­ing en­hanced sig­nif­i­cantly to QR7.54mn com­pared to QR0.12mn the week ended May 14.

How­ever, for­eign in­sti­tu­tions’ net sell­ing grew sub­stan­tially to QR213.54mn against QR109.68mn the pre­vi­ous week. The Gulf in­di­vid­u­als’ net profit book­ing rose no­tice­ably to QR6.17mn com­pared to QR1.72mn a week ago.

The Arab in­sti­tu­tions’ net sell­ing shot up per­cep­ti­bly to QR5.78mn against QR3.59mn the week ended May 14. Arab in­di­vid­u­als’ net buy­ing weak­ened markedly to QR0.91mn com­pared to QR4.37mn the pre­vi­ous week.

To­tal trad­ing vol­ume fell less than 1% to 967.55mn shares, while value grew 46% to QR2.28bn and trans­ac­tions by 17% to 52,911.

The insurance sec­tor’s trade vol­ume al­most tripled to 139.53mn eq­ui­ties and value also al­most tripled to QR280.96mn on 38% in­crease in deals to 5,624. The banks and fi­nan­cial ser­vices sec­tor’s trade vol­ume more than dou­bled to 168.61mn stocks and value also more than dou­bled to QR912.43mn on 42% jump in trans­ac­tions to 16,720. The trans­port sec­tor saw 54% surge in trade vol­ume to 110.42mn shares, 47% in value to 269.35mn and 54% in deals to 7,133.

The con­sumer goods sec­tor’s trade vol­ume soared 29% to 172.03mn eq­ui­ties, value by 21% to QR262.99mn and trans­ac­tions by 39% to 7,941. How­ever, there was 63% plunge in the real es­tate sec­tor’s trade vol­ume to 135.86mn stocks, 61% in value to QR143.37mn and 40% in deals to 5,307. The tele­com sec­tor’s trade vol­ume plum­meted 42% to 16.33mn shares, value by 10% to QR48.44mn and trans­ac­tions by 20% to 1,661.

The mar­ket wit­nessed 10% shrink­age in the in­dus­tri­als sec­tor’s trade vol­ume to 224.77mn eq­ui­ties but on 10% ex­pan­sion in value to QR366.3mn and 2% in deals to 8,525.

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