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

QSE general index saw a decline for the third week in raw, losing 106 points to settle at 10361 points.  Five key sectoral indices declined, namely real estates. Total capitalization dropped by QR 7.4 billion to QR556.1 billion. This regress came to pass on the back of the financial releases of Qatar First Bank (QFB), Mazaya, Gulf Takaful and Aamal, three of which were in decline; in addition to the major loss of QFB. Moreover, Al Meera, UDCD, Medicare Group, Milaha, Nakilat all held their respective general assembly meetings and approved the distribution of proposed profit.  Foreign portfolios bought net as against net sales by individuals and Qatari portfolios worth QR 871 million. Average daily trading increased to QR855 million, with the total capitalization down to QR556.1 million. Earning per price ratio dropped to the level of 14.57 double the original price, compared to 14.90 times in the last week.  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 First Bank's income from non-banking activities increased by 6.2% to QR 442.7 million in 2016, while its investments incurred losses as result of negative change in the fair value worth QR176.5 million compared to QR 138.1 million in the same period last year. Deducting share of investors worth QR 386.1 million, then the bank's total income drops 40% compared to last year. In contrast, total expenses increased by 9.8% to QR 628.4 million. Hence, QFB incurred a net loss of QR265.7 million for its stakeholders, compared to QR 66 million last year.

2--  Mazaya Qatar total profit from its operations in 2016 decreased by the rate of 28.7% to QR 101.3 million including QR 101.3 million from construction operations. After deducting general and administrative expenses worth QR 16.6 million, cost of financing worth QR 31.2 million and a net loss in the fair value of investments worth QR 4.4 million, the net profit for the year fall 33.9% to QR 74.6 million.

 

3-- Al-Khaleej Takaful Group net profit in 2016 fell to QR 13.29 million compared to QR 43.39 million in 2015. Earnings per share stood at QR 0.52 versus QR 1.7 in the corresponding period in the previous year. The Board of Directors recommended distributing a cash dividend of 6% of the share nominal value. Net takaful contributions in 2016 declined by 17.1% to QR 136.5 million while the surplus dropped 14.5% to QR 46.4 million and consequently the total income from investments and revenues fell by 21.5% to QR 68.7 million. In contrast, total expenses rose by 24.9% to QR 55.1 million, of which QR 32.2 million is general and administrative expenses. As a result, the net profit for shareholders fell 69% to QR 13.3 million.

 

4-- Qatar Stock Exchange Announced the Completion of the capital increase subscription of the Commercial Bank of Qatar (CBQ) unsubscribed shares amounting to 3,792,314 Shares. Selling will start on Tuesday March 14, 2017 and will be carried out during the official trading hours at the main market. 

 

5--  Zad Holding Company announced that it has received a notice from the Court of First Instance informing that lawsuit filed by the company against Qatar Financial Markets Authority had been rejected in the Court meeting held on 28.02.2017. The company will arrange the necessary legal procedures for filing an appeal.

 

6-- Al Meera Consumer Goods Company has opened its new branch in Al Wakra (East), making it the third Al Meera branch to open its doors to consumers in Al Wakra. The new Al Wakra (East) shopping center is located in the Al Jabal Area, with the branch entailing a total 2267 m2, of which around 1500 m2 is the supermarket area.

Economic Developments

1-- Qatar's Consumer Price Index (CPI) for the month of February 2017, reached 108.4, an increase by 0.1 percent, compared to CPI of January 2017, the Ministry of Development Planning & Statistics (MDPS) has said. On year-on-year (y-o-y) basis, CPI in February 2017, has recorded a growth of 0.7 percent compared to February 2016.

2-- Banks consolidated balance sheet for February has not been released but January shows a decline in total assets by about QR 9.9 billion to stand at QR 1261.9 billion.  The total domestic public debt, including bonds, decreased by about QR 16.7 billion to QR 418.8 billion, while the total domestic private sector deposits rose by QR 2 billion to the level of QR 440.6 billion.

3--Last week, Opec oil prices lost around 1.2 dollars and closed at $ 49.70 per barrel on Thursday.

4-- Qatar Central Bank (QCB) has announced an increase in the interest rates. QMR Lending (QMRL) rate rose from 4.75% to 5.00%, and QMR Deposit (QMRD) rate rose from 1.00% to 1.25%, effective as of the date hereof. According to QCB statement Thursday, the cash reserve ratio (CRR) was also reduced from 4.75% to 4.50% starting from April 2017.  

 

5-- Last week, Dow Jones index settled at the level of 20915 points, slightly up. US Dollar exchange rate decreased to the level of 112.72 yen, and $ 1.08 per Euro. Gold price increased by 25 dollars to the level of $ 1228.9 per ounce.