Foreign funds’ robust buying interests lift sentiments; index appends 244 points

The Qatar Stock Exchange gained more than 244 points this week, mainly on the strong buying interests of the foreign institutions.The industrials and telecom counters witnessed higher than average demand as the 20-stock Qatar Index shot up 2.18% this week which saw the global credit rating agency Standard and Poor’s view that the corporate sentiments in Qatar are expected to improve in the second half of this year.The Gulf funds were increasingly net buyers this week, which saw Qatar’s trade surplus almost triple year-on-year to QR19.2bn in August 2021.The Arab individuals turned net buyers this week which saw Qatar register 4% year-on-year real growth during the second quarter of this year, mainly powered by non-oil sectors.About 71% of the traded constituents in the main market extended gains this week which saw a Kamco Invest report that said Qatar’s project market grew 215% year-on-year, the fastest growth within the Gulf region, during the first half of this year.Domestic institutions were nevertheless seen net sellers this week which saw Commercial Bank and Industries Qatar (IQ) equities touch 52-week high.Local and Gulf retail investors were seen net sellers this week which saw a total of 443,651 Masraf Al Rayan sponsored exchange traded fund QATR valued at QR1.13mn change hands across 53 transactions.The Islamic index was seen gaining slower than the conventional indices this week which saw a total of 106,654 Doha Bank-sponsored QETF valued at QR1.2mn trade across 22 deals.Market capitalisation saw more than QR12bn or 1.9% jump to QR661.26bn, mainly on large and midcap segments this week which saw the industrials, banking and consumer goods sectors together constitute about 81% of the total trade volume.The Total Return Index shot up 2.18%, All Share Index by 1.77% and All Islamic Index by 1.72% this week which saw the Qatar Central Bank governor HE Sheikh Abdullah bin Saoud al-Thani view that the country’s banking sector remains ‘safe, sound and solid’.The industrials sector index surged 5.53%, telecom (2.96%), real estate (1.4%), banks and financial services (0.83%) and transport (0.3%); while insurance declined 0.71% and consumer goods and services 0.19% this week which saw no trading of sovereign bonds.Major movers included IQ, Qatar Industrial Manufacturing, Gulf International Services, Investment Holding Group, Commercial Bank, Ooredoo, Qatar Islamic Bank, Doha Bank, Salam International Investment, Mannai Corporation, Qatar Electricity and Water, Mesaieed Petrochemical Holding, Qamco, Barwa, United Development Company and Vodafone Qatar in the main market and Mekdam Holding in the junior market this week, which saw no trading of treasury bills.Nevertheless, Qatar Cinema and Film Distribution, Qatar General Insurance and Reinsurance, Medicare Group, Al Meera, Qatar First Bank, Al Khaliji and Aamal Company were among the losers this week which saw the overall trade turnover and volumes on the increase in the main market, while they were on the decline in the venture market.The industrials sector accounted for 48% of the total trade volume, banks and financial services (19%), consumer goods and services (14%), real estate (7%), telecom (6%), transport (5%) and insurance (2%) this week.In terms of value, the industrials sector’s share stood at 38%, banks and financial services (33%), consumer goods and services (9%), transport (7%), telecom (6%), realty (4%) and insurance (2%) this week.The foreign funds’ net buying grew significantly to QR196.33mn against QR25.69mn the week ended September 23.The Gulf institutions’ net buying increased markedly to QR30.62mn compared to QR24.05mn the previous week.The Arab individuals turned net buyers to the tune of QR7.07mn against net profit takers of QR3.56mn a week ago.However, the domestic funds’ net selling rose substantially to QR173.43mn compared to QR51.51mn the week ended September 23.Local retail investors were net sellers to the extent of QR56.73mn against net buyers of QR0.12mn the previous week.The foreign individuals turned net sellers to the tune of QR2.55mn compared with net buyers of QR3.87mn a week ago.The Gulf individuals were net profit takers to the extent of QR1.32mn against net buyers of QR1.46mn the week ended September 23.The Arab institutions had no major net exposure compared with net sellers of QR0.13mn the previous week.Total trade volume in the main market grew 30% to 902.74mn shares, value by 46% to QR2.58bn and transactions by 30% to 54,334. In the venture market, volumes shrank 15% to 0.47mn equities, value by 17% to QR1.16bn and deals by 9% to 82.In the main market, the transport sector’s trade volume more than doubled to 41.2mn stocks and value also more than doubled to QR178.56mn on almost doubled transactions to 3,121.The telecom sector’s trade volume more than doubled to 51.27mn shares, value soared 73% to QR165.78mn and deals by 60% to 5,364.The banks and financial services sector saw 32% surge in trade volume to 167.4mn equities, 65% in value to QR862.1mn and 33% in transactions to 17,590.The industrials sector’s trade volume shot up 30% to 432.32mn stocks, value by 32% to QR982.11mn and deals by 23% to 17,805.There was 25% expansion in the insurance sector’s trade volume to 19.49mn shares, 24% in value to QR51.12mn and 74% in transactions to 995.The consumer goods and services sector’s trade volume was up 19% to 130.84mn equities, value by 25% to QR244.98mn and deals by 35% to 5,571.However, the real estate sector reported 8% shrinkage in trade volume to 60.23mn stocks but on 2% jump in value to QR97.6mn despite 14% lower transactions at 3,888.