The Group Securities: Weekly Report on QSE Performance, 12-16 Feb 2017

Last week, only a few companies released their financial results, namely Qatar Islamic Insurance, Qatar General Insurance, Qatar Oman Investment Co, and Waqood which disclosed its results late on Thursday. All of these financials were negative and less than those of last year. Investment Holding Group also disclosed the result of subscription in its share, which did not exceed 30% of the share capital. However, despite these facts, daily average trading increased a bit, and all sectoral indices as well as total capitalization increased. Non-Qatari individuals and portfolio investors dominated net buying as against net sale by Qatari portfolio and individual investors. 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:

1— Qatar Islamic Insurance net profit amounted to QR 63,502 million compared QR 81,988 million for the same period of the previous year. Earnings per Share (EPS) amounted to QR 4, 23 compared to QR 5, 47 for the same period of the previous year. The Board recommended distribution of Cash Dividends of 30 % from the share par value i.e. QR 3 for each share for the year 2016. The company's agency fees increased by QR5 million to QR78.3 million in 2016, while total income dropped by 14% to QR104.3 million. Expenses increased slightly by QR1.5 million to QR40.8 million. As result, the company's net profit decreased by 22.5% to QR 63.5 million.

 

2-- Qatar General Insurance & Reinsurance's net profit is QR 219.3 million compared to QR 925.7 million for the same period of the previous year. EPS amounted to QR 2.51 compared to QR 10.58 for the same period of the previous year. Qatar General Insurance total income dropped by 50% to QR637.5 million compared to QR1227 million, including QR203.7 million as net premium. Total expenses rose by QR381.3 million compared to QR320 million last year. As result, the company's net profit attributable to shareholders amounted to QR219.3 million compared to QR925.7 million. Comprehensive income dropped to QR 202.2 million.

 

3-- Qatar Oman Investment's net profit is QR 13,374,260 compared to QR 18,341,064 for the same period of the previous year. ESP amounted to QR 0.425 compared to QR 0.582 for the same period of the previous year. The boards recommend the distribution of 5% cash dividend equivalent to 50 dirhams per share. Qatar Oman Investment's total income dropped to 19.4 million compared to QR25.1 million in the last year, including QR14 million as net investment revenues.  Expenses increased slightly to QR6.33 million. As result, this year's net profit fell by 26.8% to QR13.4 million. However, the company incurred losses as result of negative change in the fair value of investment worth QR17.7 million, thus turning profit into a loss in the comprehensive income worth QR4.3 million, compared to 6.96 million in the last year.

 

4-- Woqod disclosed its financial statements for the period ended on 31.12.2016. The statements shows that the net profit is QR 883,110,228 Compared to net profit amounting Restated to   QR 1,050,060,646 For the same period of the previous year. Earnings per Share (EPS) / amounted to QR 9.68 For the period ended 31.3.2016 to EPS amounted Restated to QR 11.51  for the same period of the previous year. Approval of the recommendation of the Board to distribute the profits as a cash dividend of 70% of the nominal value of shares (7 Riyals per share), in addition, 9% bonus shares (9 shares for every 100 shares) for the fiscal year ending on 31/12/2016.

 

6-- Qatar First Bank said it sold part of its stake in a Dubai-based healthcare service provider, where the Bank owned 10.5% of its shares.

 

Economic Developments

 

1-- Banks consolidated balance sheet for January has not been released yet, but that is of December showed a rise in total assets compared to November by about QR 70 billion to stand at QR 1271 billion.  The total domestic public debt, including bonds, increased by about QR 30 billion to QR 428 billion while the total domestic private sector deposits rose by QR 4.5 billion to the level of QR 438 billion.

2--Last week, Opec oil prices settled at the level of $53.14, slightly up by $ 0.38 compared to last Thursday.

3-- Last week, Dow Jones index gained 355 points to reach the level of 20624 points. US Dollar exchange rate fell to the level of 112.82 yen, and $ 1.06 per Euro. Gold price settled at the level of $ 1236 per ounce.