Banking and industrials sectors lift QSE 112 points; M-cap gains QR6.05bn

Strengthening global oil prices and expectations on early cut in interest rates by the US Federal Reserve had their reflection in the regional bourses, including the Qatar Stock Exchange (QSE), which closed this week on a higher note.

The banking and industrials counters experienced higher than average demand as the 20-stock Qatar Index shot up 1.12% this week which saw QNB and QIIB outline their strategies to offer semi-annual dividend to shareholders.

The domestic institutions were seen increasingly into net buying in the main bourse this week which saw Kamal Naji, chief economist of Qatar Financial Centre, view that Doha’s gross domestic product is projected to grow at 2% in 2024, with near-term outlook slated to remain stable.

The semi-annual dividend policy of companies in which QatarEnergy is a shareholder and the announcement of QNB and QIIB as well as expectations on other entities to follow suit have had positive impact on the market this week.

The foreign individuals turned net buyers in the main market this week which saw a global credit rating agency Standard and Poor’s report that found QNB and Qatar Islamic Bank have seen their market capitalisation expand 2.7% and 1.4% respectively in the second quarter of 2024 against that in the first quarter of same year.

The Gulf institutions’ weakened net profit booking had its influence in the main bourse this week which saw Qatar's ports achieve the second-highest monthly container handling rate in June 2024, with over 144 000 TEUs (twenty-foot equivalent units), registering a 51% jump over the same period last year.

The local retail investors’ lower net selling had its say in the main market this week which saw the Qatar Financial Centre’s purchasing managers’ index that said Doha's non-energy economy signalled demand strengthening this June as it registered sharpest growth in nearly two years.

The local individuals’ declining bearish grip played its part in the main bourse this week which saw Qatar's producers' price index, which measures the average changes in prices received by domestic producers for their output, rose 2.24% year-on-year this May.

However, the foreign funds were seen net profit takers in the main market this week which saw a total of 0.4mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.84mn trade across 66 deals.

The Gulf individual investors were increasingly net sellers in the main bourse which saw as many as 0.06mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.53mn change hands across 44 transactions.

The Islamic index was seen gaining slower than the other indices in the main market this week which saw the banks and industrials sectors together constitute about 59% of the total trade volumes.

Market capitalisation shot up QR6.05bn or 1.05% to QR581.08bn on the back of large and midcap segments this week, which saw no trading of sovereign bonds.

Trade turnover and volumes were on the decline in the main market this week which saw no trading of treasury bills.

In the case of venture market, trade turnover and volumes were seen expanding this week, which saw Edaa amends the foreign ownership limit in Aamal Company to 100% of the capital.

The Total Return Index zoomed 1.12%, the All Share Index by 1.12% and the All Islamic Index by 0.93% this week which saw Fitch affirm the credit rating of Qatar Islamic Bank at 'A' with a "stable" outlook.

The banks and financial services sector index soared 1.76%, industrials (1.68%) and consumer goods and services (0.9%); while transport declined 1.47%, real estate (0.65%), telecom (0.3%) and insurance (0.25%) this week.

Major gainers in the main market included Widam Food, Zad, QIIB, Inma Holding, Qatar Islamic Bank, QNB, Mannai Corporation, Baladna, Mekdam Holding, Al Faleh Educational Holding, Qatar National Cement, Industries Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Qatar General Insurance and Reinsurance and Al Khaleej Takaful. In the venture market, Al Mahhar Holding saw its shares appreciate in value this week.

Nevertheless, Qatar Cinema and Film Distribution, Mazaya Qatar, Qatari German Medical Devices, Qatar Oman Investment, Milaha, Masraf Al Rayan, QLM and Nakilat were among the shakers in the main bourse this week.

The domestic funds’ net buying increased perceptibly to QR161.81mn compared to QR158.93mn the week ended June 27.

The foreign individuals turned net buyers to the tune of QR11.84mn against net sellers of QR12.89mn the previous week.

The Gulf institutions’ net profit boking declined substantially to QR62.37mn compared to QR99.65mn a week ago.

The local individuals’ net selling weakened considerably to QR72.61mn against QR85mn the week ended June 27.

The Arab retail investors’ net selling eased noticeably to QR5.76mn compared to QR7.76mn the previous week.

However, the foreign institutions were net sellers to the extent of QR29.09mn against net buyers of QR46.86mn a week ago.

The Gulf individuals’ net profit booking grew markedly to QR3.49mn compared to QR0.29mn the week ended June 27.

The Arab institutions’ net selling expanded marginally to QR0.34mn against QR0.18mn the previous week.

The main market witnessed 10% slump in trade volumes to 608.89mn shares, 14% in value to QR1.88bn and 10% in deals to 69,348 this week.

In the venture market, trade volumes almost quadrupled to 11.38mn equities and value surged 67% to QR17.78mn, while transactions shrank 58% to 298.