Earnings outlook lifts QSE sentiments as index vaults 224 points

Robust earnings expectations masked apprehensions over the geopolitical tensions in the region that the Qatar Stock Exchange (QSE) saw its key index gain as much as 224 points and capitalisation add more than QR14bn this week.

The domestic institutions were increasingly net buyers as the 20-stock Qatar Index vaulted 2.13% this week which saw Qatar Islamic Bank report net profit of QR3.27bn in the first nine months (9M) of this year.

The telecom, banking and real estate counters witnessed higher than average demand in the main bourse this week which saw Commercial Bank report net profit of QR2.34bn in 9M-2024.

As much as 65% of the traded constituents extended gains to investors in the main market this week which saw Dukhan Bank’s 9M-2024 net profit at QR1.14bn.

However, the local retail investors were increasingly net sellers in the main bourse this week which saw Woqod report net profit of QR771.3mn in January-September 2024.

The foreign funds were seen increasingly bearish in the main market this week, which saw Ahlibank Qatar’s 9M-2024 net profit at QR647.15mn.

The foreign retail investors were increasingly net profit takers in the main bourse this week which saw a total of 0.17mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.38mn trade across 39 deals.

The Gulf institutions were increasingly net sellers in the main market this week which saw as many as 0.04mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.46mn change hands across 38 transactions.

The Arab funds were seen net profit takers in the main bourse this week which saw the banking and realty sectors together constitute about 51% of the total trade volumes.

The Islamic index was seen gaining slower than the other indices in the main market this week, which saw no trading of sovereign bonds.

Market capitalisation added QR14.36bn or 2.33% to QR630.44bn on the back of large and midcap segments this week, which saw no trading of treasury bills.

Trade turnover and volumes were on the increase in the main market this week, which saw Lesha Bank report net profit of QR96.64mn in 9M-2024.

The Total Return Index zoomed 2.13%, the All Share Index by 2.12% and the All Islamic Index by 2.03% this week, which saw QSE disclose that it has started publishing daily report on buyback by companies.

The telecom sector index shot up 3.88%, banks and financial services (2.56%), real estate (2.18%), insurance (1.98%), transport (1.75%), consumer goods and services (1.13%) and industrials (1.11%) this week which saw Qatar registered a robust double-digit year-year-on-year growth in tourists’ inflow -- especially from the Americas, Europe and Gulf regions this August; as its hospitality sector saw improved room yield, particularly in the four-star hotels and deluxe hotel apartment categories.

Major gainers in the main market included Ezdan, Ooredoo, QIB, Dlala, Medicare Group, QNB, QIIB, Masraf Al Rayan, Woqod, Industries Qatar, Aamal Company, Qatar Industrial Manufacturing, Qatar Insurance, Barwa, Vodafone Qatar, Nakilat and Milaha. In the juniour bourse, Al Mahhar Holding and Techno Q saw their shares jump in value this week which saw Lesha Bank sign twin pacts with Barwa.

Nevertheless, Al Faleh Educational Holding, Beema, Widam Food, Qatar German Medical Devices, Inma Holding, Estithmar Holding, Qamco and Gulf Warehousing were among the losers in the main market this week which saw Standard and Poor's (S&P), an international credit rating agency find that sustainable debt issuance from Qatar rose this year; even as the UAE and Saudi Arabia constituted the most of such issuances in the Middle East in the first nine months of this year.

The domestic funds’ net buying increased substantially to QR641.98mn compared to QR156.01mn the week ended October 10.

However, the Qatari individuals’ net selling increased significantly to QR266.73mn against QR65.98mn the previous week.

The foreign institutions’ net selling strengthened considerably to QR204.82mn compared to QR49.95mn a week ago.

The foreign individuals’ net selling expanded drastically to QR85.71mn against QR17.11mn the week ended October 10.

The Gulf institutions’ net profit booking grew markedly to QR62.06mn compared to QR5.09mn the previous week.

The Arab individual investors’ net selling expanded marginally to QR18.23mn against QR17.54mn a week ago.

The Gulf retail investors’ net profit booking rose perceptibly to QR4.04mn compared to QR0.51mn the week ended October 10.

The Arab institutions turned net sellers to the tune of QR0.3mn against net buyers of QR0.16mn the previous week.

The main market witnessed a 7% jump in trade volumes to 897.59mn shares, 26% in value to QR2.45bn and 2% in deals to 72,435 this week.

In the venture market, trade volumes grew more than six-fold to 2.48mn equities and value also by more than six-fold to QR6.35mn on more than tripled transactions to 257.