QE bank brokerages fare better; conventional peers drop behind

By Santhosh V Perumal

Business Reporter

Stock broking business of commercial banks witnessed improvement in their market share with QNB Financial Services and Commercial Bank Investment Services faring particularly well. The trend indicates higher income for lenders through non-interest earnings at a time when credit pick-up has been slow.

However, conventional brokerage houses largely saw their share shrink year-to-date in March, according to Qatar Exchange data.

QNB Financial Services accounted for 12.21% of stocks trading value (QR3.64bn) YTD in March against 9.37% in the comparable period of 2012. There were a total of 32,554 deals and volume stood at 63.1mmn shares. The brokerage arm improved its position to third in March this year from seventh in the year-ago period.

Commercial Bank Investment Service accounted for 5.16% of stocks trading value (QR1.54bn) compared to 1.92% in the previous-year period. It had undertaken 7,722 transactions on a volume of 13.95mn shares, bettering its position to fifth from ninth in the year-ago period.

Al-Ahli Brokerage, a subsidiary of Ahlibank Qatar, saw its market share rise to 1.66% of stocks trading value (QR493.95mn) against 1.33% in the year-ago period. Through it, there were a total of 4,094 deals and volume was 9.45mn shares.

Al Rayan Financial Brokerage, a unit of Masraf Al Rayan, accounted for 0.55% of trading value (QR163.23mn). There were a total of 1,577 transactions and volume was 5.23mn stocks.

In the conventional space, Group Securities continued to top the chart accounting for 29.40% of the trading value (QR8.76bn) YTD in March compared to 31.79% in the year-ago period. The entity undertook 161,820 transactions on a volume of 226.35mn shares.

The Qatar Financial Market Authority recently approved Group Securities as liquidity provider and said other licences are on the pipeline.

Qatar Securities came in the second position, accounting for 13.38% of the stocks trading value (QR3.99bn) compared to 10.97% in the previous-year period. There were a total of 43,179 transactions on a volume of 68.30mn shares. In the previous-year period, it occupied the fourth position.

The Gulf Investments Group’s share was 11.27% of trading value (QR3.36bn) YTD in March against 11.54% in the year-ago period with a total of 33,642 deals on a volume of 77.70mn shares.

Dlala Brokerage, another conventional stock broking arm of Dlala Holding, cornered 10.24% of the stocks trading value (QR3.05bn) against 13.96% in the comparable period of 2012. It carried out a total of 33,818 transactions and volume was 77.25mn shares. International Securities accounted for 8.21% of the stocks trading value (QR2.45bn) against 7.98% in the year-ago period. Through it, there were a total of 23,832 deals and volume stood at 39.43mn shares.

Islamic Securities’ market share stood at 5.08% of the trading value (QR1.51bn) compared to 7.78% in the previous-year period. The brokerage undertook 22,367 transactions and volume was 35.57mn stocks.

Dlala-Islamic Brokerage, a Shariah-principled broking unit of Dlala Holding, cornered 2.85% of the stocks trading value (QR847.59mn) compared to 3.36% in the year-ago period. Through it, there were a total of 14,741 transactions and volume was 28.01mn shares.