Gulf funds’ increased net selling drags QSE; index tanks 100 points, M-cap erodes QR6bn

The Qatar Stock Exchange on Wednesday declined 100 points and capitalisation eroded more than QR6bn, reflecting the pessimism in the global market as oil plunged to seven-month low.An across the board selling, particularly in the real estate and telecom and industrials counters, led the 20-stock Qatar Index decline 0.77% to 12,955.07 points, but recovering from an intraday low of 12,897 points.About 80% of the traded constituents were in the red in the market, whose year-to-date gains were at 11.43%.The Gulf institutions and Arab individuals were seen net profit takers in the bourse, whose capitalisation eroded QR6.26bn or 0.86% to QR722.34bn mainly on the back of large cap segments.The Islamic index was seen declining faster than the other indices in the market, which saw a total of 0.11mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.64mn changed hands across 35 deals.Trade turnover and volumes were on the rise in the main market, while the venture market saw higher turnover amidst lower volumes.However, the foreign institutions were increasingly net buyers in the bourse, which saw no trading of sovereign bonds.The local retail investors continued to be net sellers but with lesser intensity in the market, which saw no trading of treasury bills.The Total Return Index shed 0.77% to 26,536.19 points, All Share Index by 0.66% to 4,114.04 points and Al Rayan Islamic Index (Price) by 1.21% to 2,854.13 points.The real estate sector index tanked 2.28%, telecom (2.18%), industrials (1.55%), transport (0.79%), consumer goods and services (0.73%), insurance (0.33%) and banks and financial services (0.05%).Major losers in the main market included Mannai Corporation, Qatari German Medical Devices, Doha Insurance, Aamal Company, Estithmar Holding, Doha Bank, Qatar First Bank, Alijarah Holding, Qatar Oman Investment, Baladna, Industries Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Qamco, Barwa, Ezdan, Ooredoo, Vodafone Qatar and Gulf Warehousing. In the venture market, Mekdam Holding saw its shares depreciate in value.Nevertheless, Qatar Islamic Insurance, Qatar Electricity and Water, QNB, QIIB and Al Khaleej Takaful were among the gainers in the main market.The Gulf institutions turned net sellers to the tune of QR14.24mn compared with net buyers of QR1.2mn on September 6.The Arab individuals were net sellers to the extent of QR2.04mn against net buyers of QR9.5mn the previous day.However, the foreign institutions’ net buying increased perceptibly to QR18.8mn compared to QR14.48mn on Tuesday.The Gulf retail investors’ net buying strengthened markedly to QR2.64mn against QR0.35mn on September 6.The foreign individuals were net buyers to the tune of QR1.97mn compared with net sellers of QR1.13mn the previous day.Qatari individuals’ net profit booking decreased noticeably to QR1.05mn against QR14.18mn on Tuesday.The domestic institutions’ net selling eased perceptibly to QR6.09mn compared to QR10.22mn on September 6.The Arab institutions continued to have no major net exposure for the third straight session.Total trade volume in the main market grew 28% to 159.77mn shares, value by 8% to QR568.03mn and deals by 22% to 23,077.In the venture market, there was 56% contraction in trade volumes to 0.15mn equities but on 2% jump in value to QR1.08mn amidst 20% lower transactions at 53.