QE fall continues on sell pressure from domestic institutions

By Santhosh V Perumal/Business Reporter

The Qatar Exchange fell for the second day yesterday mainly due to selling pressure from domestic institutions.

Profit booking was perceptible, especially in industrials and banking sectors, as the 20-stock Qatar Index (based on price data) lost 0.2% to 8,916.90 points.

Local retail investors continued to be net buyers, but with lesser intensity, and foreign institutions pared their exposure in the market, which is, however, up 6.68% year-to-date (YTD).

Major losers included Industries Qatar, Mazaya Qatar, QNB, Alijarah Holding and Vodafone Qatar; even as Gulf International Services, United Development Company (UDC), Barwa, Milaha and Nakilat bucked the trend.

The 20-stock Total Return Index also fell 0.2% to 12,740.21 points, All Share Index (comprising wider constituents) by 0.33% to 2,270.40 points and Al Rayan Islamic Index by 0.18% to 2,702.98 points. All the three indices factored in dividend income as well.

Under the All Share Index category, the insurance index tanked 1.28%, industrials (0.81%), banks and financial services (0.38%) and telecom (0.05%); while that of transport surged 1.55%, real estate (0.22%) and consumer goods (0.14%).

Industrials, consumer goods, telecom, transport, banking and insurance sectors outperformed the key indices with them gaining YTD 19.44%, 18.15%, 17.78%, 17.23%, 7.98% and 7.43% respectively. The realty index rose 4.4%.

Market capitalisation fell 0.42% or more than QR2bn to QR498.07bn with large and small cap equities melting 0.6% and 0.26% respectively; even as mid caps rose 0.39%.

Mid, small and large cap equities have gained YTD 8.09%, 7.09% and 6.48% respectively; while micro caps lost 3.09%.

Of the 42 stocks, 19 advanced, while 14 declined, six were unchanged and three were not traded.

Domestic institutions’ net selling rose to 5.02% or QR12.30mn. A higher 30.49% of them were into buying against 23.72% the previous day and a higher 35.51% of them into selling compared to 28.65%.

Foreign institutions turned net sellers to the tune of 2.64% or QR6.47mn. A lower 11.93% of them bought equities against 20.83% on Wednesday and a lower 14.57% offloaded compared to 16.54%.

Non-Qatari individual investors turned net buyers to the extent of 1.66% or QR4.07mn. A higher 15.73% of them bought equities against 11.26% the previous day whereas a lower 14.07% sold compared to 18.3%.

Qatari individual investors’ net buying fell to 6% or QR14.70mn. A lower 41.85% of them purchased equities against 44.19% on Wednesday and a marginally lower 35.85% sold compared to 36.51%.

Total trading volume fell 31% to 7.40mn shares, value by 36% to QR245.07mn and deals by 27% to 3,651.

The banks and financial services sector’s trading volume plummeted 63% to 1.05mn shares, value by 61% to QR51.11mn and transactions by 35% to 890.

The telecom sector’s trading volume plunged 62% to 0.23mn shares, value by 57% to QR4.89mn and deals by 43% to 113.

The industrials sector’s trading volume tanked 49% to 0.44mn shares, value by 41% to QR42.42mn and transactions by 41% to 579.

The consumer goods and services sector’s trading volume declined 21% to 0.38mn shares, value by 46% to QR22.60mn and deals by 26% to 351.

The real estate sector’s trading volume shrank 20% to 2.42mn shares, value by 31% to QR43.36mn and transactions by 22% to 841.

The transport sector’s trading volume was down 3% to 2.78mn shares, while value rose 30% to QR76.03mn but deals fell 7% to 775.

However, the insurance sector’s trading volume rose 11% to 0.10mn shares, value by 6% QR4.65mn and transactions by 38% to 102.

Actively traded stocks (in terms of volume) were Nakilat (2.19mn shares); UDC (963,823); Mazaya Qatar (804,838); Milaha (550,360) and Barwa (499,712).

In the debt market, there was no trading of treasury bills.