The Group Securities: Weekly Report on QSE Performance, 11-15 Sep 2016

QSE started the week on remarkable rise of all sectors shored up by the support of non-Opec oil producers' agreement to cut output starting from next January. Share prices went up in the first three sessions. In addition, the US Federal Reserve decision to hike interest rate, followed suit by the Qatar Central Bank, led to the fall of oil prices, which increased pressure on sellers in the international as well as local bourses. The total trading volumes rose up by 25.3% to QR 1.63 billion, with a daily average of QR 326.1 million. The general index thus gained 170 points or 1.96%, compared to the last week, settling at 10224 points. As result, share price of 30 companies increased while 11 went down. Six of the sectoral indices hiked, namely real estates, industries and banks respectively. Total capitalization increased by QR11 billion to QR 551 billion. P/E ratio doubled 13.87 times.  It is worth noting that estimates of the public budget was released on Thursday, and thus had no impact on the performance of the market. The Group reviews QSE performance in this week with illustrative charts combined with corporate business news, and a list of the affecting economic factors

Corporate News:

The Board of Directors of the Commercial Bank (P.S.Q.C.) invited its shareholders to subscribe to the new shares, by way of a rights issue, as approved by the Bank’s Extraordinary General Assembly meeting held on 16 November 2016. During the meeting, the Extraordinary General Assembly resolved to increase the issued share capital of the Bank form QAR3,266,292,100 to QAR 3,854,527,390 by way of offering 58,823,529 new ordinary shares for subscription to shareholders and holders of subscription rights in the proportion of 1 share for every 5.5 shares held (the Rights Issue) in accordance with the provisions of the Commercial Companies Law No (11) of 2015 and the Trading in Rights Issue Regulations (the QFMA Regulations) issued by the Qatar Financial Markets Authority (the QFMA).

Priority will be given to shareholders who are registered in the shareholders’ register with Qatar Central Securities Depository (QCSD) at close of trading on Thursday, 8 December 2016 and to Holders of Subscription Rights (as defined below). Shares will be offered at a price of (QAR 25.50) twenty-five Qatari Riyals and 50 Dirhams each (10 Qatari Riyals nominal value 15.50 Qatari Riyals issue premium) according to the pricing mechanism set by Qatar Exchange and the competent authorities.

Trading Rights Issue will commence on Wednesday 14 December 2016 and end on Wednesday 28 December 2016.

Economic Factors in Play:

1-Qatar's Minister of Energy and Industry HE Dr. Mohammed bin Saleh Al Sada, who is also the current president of the Conference of the Organization of Petroleum Exporting Countries (OPEC) said non-OPEC oil-producing countries have agreed to slash their output by 558,000 barrels per day (bpd), following OPEC's recent decision to cut its own output as from first of January.

 2- Qatar's central bank said on Thursday it was raising policy rates by 25 basis points, the official Qatar News Agency reported. The overnight lending rate rose to 4.75 percent and the overnight deposit rate rose to 1.00 percent. The maturity of the repo rate for public debt securities was changed to seven days from 14 days and the rate was adjusted to 2.25 percent, the central bank said without elaborating.

 

 

3- The Consumer Price Index (CPI) has shown a 2 percent increase year-on-year in November, data released by the Ministry of Development Planning and Statistics (MDPS) has showed. On a month-on-month basis, the CPI changed 0.1 percent in November and stood at 108.6, the MDPS report said on Tuesday.

 

4- Banks consolidated balance sheet for November has not been released yet, but  that of October shows  a decline in total assets below their level in September by about QR 1.9 billion to stand at QR 1192.3 billion.  Total government and the public sector deposits decreased by about QR 1.8 billion to QR 177.9 billion. The total domestic public debt, including bonds, by about QR 9.6 billion to QR 388.3 billion while the total domestic private sector credit rose by QR 3 billion to the level of QR 432.3 billion. 

 

5-Last week, Dow Jones index gained 86 points to reach the level of 19843 points. US Dollar exchange rate increased to the level of 117.94 yen, and $ 1.05 per Euro. Gold price decreased by $24 and stood at the level of $ 1137 per ounce.