Qatar Exchange Doha Securities Market

10,555.81 -48.47 -0.46 %

QSE surges on banks, IQ; benchmark index up 24.40% year-to-date

(12/5/2018 8:15:00 AM)

Qatar stocks surged 1.45 percent yesterday lifting the entire sectoral indexes firmly into green, powered by blue chips. The benchmark index extended Monday’s gain to add 151.51 points before finishing at 10602.84. The index is 24.40 percent up year-to-date, the highest when compared to its regional peers. Market cap rose to QR595bn.

Masraf Al Rayan jumped 5.34 percent. Doha Bank, which announced it has been selected in the FTSE4Good Emerging Index on Monday, rose 4.47 percent as QIB gained 3.02 percent. Bellwether Industries Qatar (IQ) extended its rally to add 1.53 percent.

An equity research note issued by SICO noted public sector spending related to FIFA 2022 is to support lending growth of QNB in the medium-term. “Since our last report on QNB, the stock has rallied 57 percent”, the SICO analysts said.

Qatari banks reported a modest 2.8 percent YTD lending book growth in October 2018, suggesting tepid demand even in the domestic market. “We believe elevated hydro carbon prices until October 2018, led to liquidity influx for public sector entities, leading to early repayment of loans,” SICO’s Chiradeep Ghosh said in a note sent to The Peninsula.

QNB, Commercial Bank and Ooredoo, the three stocks which were the primary contributors to the past week’s index gain, ended flat. Ooredoo was the biggest contributor to the index’s weekly gain that added 21.9 points to the index.

QNB was the second biggest contributor to the gain, tacking on 12.6 points to the index. Commercial bank contributed 12.0 points to the index. The trend has been up on index and seems to be intact, QNBFS noted in its weekly analysis.

“Corrections are possible and can be used to add position. A solid breakout above 10,36000 would take the index to the 10,550-10,600 levels , QNBFS analysts had predicted on Monday.

Foreign institutional investors were the net buyers yesterday. In the past week, foreign institutions remained bullish with net buying of QR166.9m against net buying of QR209.7m in the prior week.

Qatari institutions remained bearish with net selling of QR49.9m against net selling of QR39.3m in the week before. Foreign retail investors turned slightly bullish with net buying of QR2.4m against net selling of QR16.8m in the prior week.

Qatari retail investors remained bearish with net selling of QR119.3m against net selling of QR153.7m the week before. Foreign institutions bought (net basis) $2.3bn worth of Qatari equities YTD, QNBFS noted.

Oil prices were also on the move yesterday with the prices rising more than 2 percent, extending gains ahead of expected output cuts by producer cartel Opec and a reduction in Canadian supply.

The Peninsula