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.