Demand in banks and transport counters lift QSE 44 points

Heightened geopolitical tensions in the region notwithstanding, the Qatar Stock Exchange (QSE) was in the positive trajectory with its key index gaining as much as 44 points and capitalisation adding QR2.75bn this week.The domestic institutions were seen increasingly into net buying as the 20-stock Qatar Index rose 0.42% this week which saw QNB report net profit of QR12.71bn in January-September 2024.The banking and transport counters witnessed higher than average demand in the main this week which saw Milaha win a long-term contract valued at QR792mn from North Oil Company.The Gulf institutions’ weakened net profit booking had its influence in the main market this week which saw Gulf International Services’ subsidiary Al Koot Insurance and Reinsurance plan to get listed on the local bourse.The Arab funds continued to be bet buyers but with lesser intensity in the main bourse this week which saw Qatar Steel, an Industries Qatar subsidiary, receive a non-binding offer for the acquisition of its entire equity holding in Bahrain-based Foulath Holding.The foreign funds were seen increasingly bearish in the main market this week, which saw Lesha Bank complete the acquisition of Bereke Bank in Kazakhstan.The local retail investors turned net profit takers in the main bourse this week which saw a total of 0.45mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.98mn trade across 115 deals.The foreign individuals were increasingly net sellers in the main market this week which saw as many as 0.01mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.06mn change hands across six transactions.The Gulf individuals turned net sellers in the main bourse this week which saw the banking, consumer goods and industrials sectors together constitute more than 73% of the total trade volumes.The Islamic index was seen declining vis-à-vis gains in the other indices in the main market this week, which saw no trading of sovereign bonds.Market capitalisation added 0.45% to QR616.08bn on the back of small and microcap segments this week, which saw no trading of treasury bills.Trade turnover and volumes were on the decline in the main market this week, which saw Qatar Electricity and Water Company (QEWC), in cooperation and Qatar General Electricity and Water Corporation, plan to build, own and operate peak units with a production capacity of 500 megawatts.The Total Return Index gained 0.42% and the All Share Index by 0.51%, while the All Islamic Index fell 0.31% this week, which saw Ooredoo raise $500mn through its oversubscribed bonds.The banks and financial services sector index shot up 1.1%, transport (0.64%), industrials (0.17%) and insurance (0.09%); while real estate declined 1.76%, consumer goods and services (0.93%) and telecom (0.37%) this week which saw QNB commence its buyback scheme.Major gainers in the main market included Qatar General Insurance and Reinsurance, Al Faleh Educational Holding, QIIB, QNB, Commercial Bank, Doha Bank, Lesha Bank, Baladna and Nakilat. In the junior bourse, Al Mahhar Holding and Techno Q saw their shares jump in value this week which saw Qatar Financial Centre view that a sustained growth in business conditions in Doha’s non-energy private sector led employment reach a record high in September 2024 as companies boost capacity.Nevertheless, about 61% of the traded constituents were in the red with major losers being Qatar German Medical Devices, Medicare Group, Barwa, Al Khaleej Takaful, Vodafone Qatar, Masraf Al Rayan, Dukhan Bank, GIS, Estithmar Holding, Qamco, QLM and Mazaya Qatar this week.The domestic funds’ net buying increased substantially to QR156.01mn compared to QR57.77mn the week ended October 3.The Gulf institutions’ net profit booking decreased substantially to QR5.09mn against QR36.62mn the previous week.However, the Qatari individuals turned net sellers to the tune of QR65.98mn compared with net buyers of QR9.16mn a week ago.The foreign funds’ net selling strengthened considerably to QR49.95mn against QR11.83mn the week ended October 3.The Arab individuals’ net profit booking expanded markedly to QR17.54mn compared to QR7.76mn the previous week.The foreign individual investors’ net selling was up marginally to QR17.11mn against QR16.7mn a week ago.The Gulf retail investors were net sellers to the extent of QR0.51mn compared with net buyers of QR4.54mn the week ended October 3.The Arab institutions’ net buying eased perceptibly to QR0.16mn against QR1.43mn the previous week.The main market witnessed a 12% contraction in trade volumes to 841.72mn shares, 12% in value to QR1.95bn and 9% in deals to 71,222 this week.In the venture market, trade volumes tanked 75% to 0.38mn equities, value by 70% to QR1.05mn and transactions by 45% to 32.