Foreign funds steer QSE in positive trajectory; Islamic index outperforms

Notwithstanding the weak Chinese data and uncertainties over the US rates, the Qatar Stock Exchange (QSE) witnessed about 43 points gain in its key index this week.
The foreign institutions were net buyers as the 20-stock Qatar Index rose 0.42% this week which saw the Qatar Financial Centre’s purchasing managers’ index disclose that Doha's non-energy private sector’s strong expansion in August on notable boost to new orders in the manufacturing and financial services.
The industrials sector witnessed robust demand this week which saw Qatar Industrial Manufacturing Company expected to start the initial operations of its subsidiary Gizaz (Gulf Glass Factory) to produce as much as 1mn glass containers per day by mid of November 2023.
The Gulf retail investors turned bullish in the main bourse this week which saw Qatar's maritime sector report brisk growth in general cargo, livestock, vehicles (RORO) and building materials movement through Hamad, Doha and Al Ruwais ports during the first eight months of this year.
The domestic institutions continued to be net buyers but with lesser intensity in the main market this week which saw Qatar register a robust double-digit year-on-year growth in sales of new private vehicles this July, even as the automobile sector on the whole was on a reverse gear.
The foreign individuals were also net buyers but with lesser vigour in the main bourse this week which saw Aamal Company’s intent to start negotiations with Al Faisal Holding on the sale of a land parcel owned by the company.
The Arab retail investors were net profit takers in the main market this week which saw QNBFS to start liquidity provision activity for the shares of Meeza.
The Islamic index outperformed the other indices this week which saw a total of 0.38mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.84mn trade across 32 deals.
The local individuals turned bearish in the main market this week which saw as many as 0.15mn Doha Bank-sponsored exchange-traded fund QETF valued at QR1.43mn change hands across 101 transactions.
Market capitalisation rose QR0.86bn or 0.14% to QR602.98bn on the back of microcap segments this week which saw the industrials, consumer goods and banks together constitute more than 78% of the total trade volume in the main market.
The Total Return Index added 0.42% and the All Islamic Index by 0.78%, while the All Share Index was down 0.03% this week, which saw no trading of sovereign bonds.
The industrials index shot up 5.28%, real estate (0.14%) and transport (0.09%); while banks and financial services declined 2.16%, insurance (1.98%), consumer goods and services (0.41%) and telecom (0.06%) this week which saw no trading of treasury bills.
Major gainers in the main bourse included Industries Qatar, Al Khaleej Takaful, Qamco, Gulf International Services, Inma Holding, Qatar National Cement, Mesaieed Petrochemical Holding and Qatar General Insurance and Reinsurance this week.
Nevertheless, about 57% of the traded constituents in the main market were in the red with major losers being Baladna, Meeza, Masraf Al Rayan, Qatari German Medical Devices, Estithmar Holding, QNB, Doha Bank, Alijarah Holding, Qatar Oman Investment, Beema, QLM and Gulf Warehousing. In the venture market, both Al Faleh Educational Holding and Mahhar Holding saw their share depreciate in value this week.
The foreign funds turned net buyers to the tune of QR8.18mn compared with net sellers of QR310.59mn the week ended August 31.
The Gulf individual investors were net buyers to the extent of QR4.17mn against net sellers of QR1.44mn the previous week.
However, the Gulf institutions turned net sellers to the tune of QR70.88mn compared with net buyers of QR33.67mn a week ago.
The Arab retail investors were net profit takers to the extent of QR11.09mn against net buyers of QR44.35mn the week ended August 31.
The local individuals turned net sellers to the tune of QR5.06mn compared with net buyers of QR133.87mn the previous week.
The domestic institutions’ net buying weakened markedly to QR68.91mn against QR81.33mn a week ago.
The foreign individuals’ net buying shrank noticeably to QR5.77mn compared to QR18.82mn the week ended August 31.
The Arab funds had no major net exposure against net profit takers to the extent of QR0.02mn the previous week.
The main market witnessed a 2% contraction in trade volumes to 1.02bn shares and 10% in value to QR2.54bn but on 9% jump in deals to 96,601 this week.
In the venture market, trade volumes surged 34% to 5.23mn equities, value by 28% to QR10.87mn and transactions by 19% to 981.