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The Group Securities: Weekly Report on QSE Performance,
11-18 May 2017
Qatar Stock Exchange's key indices and others could not manage
to maintain the upward movement of the market, beyond 10100
points. Traders opted for selling to make profit out of it
sudden rise, or otherwise to cover exposure to debt.
With trading volumes declining to about QR1.02 billion in
a week only, QSE benchmark declined by the end of the week to
the level of 10103 points, slightly down by 42 points compared
to last week. All other indices fell down; total capitalization
decreased by QR 3 billion. 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-- Vodafone Qatar disclosed its financial statements for the
period ended on 31/03/2017. The statements show that the net
loss is QR (269.2) million compared to net loss amounting to QR
(465.7) million for the same period of the previous year. Loss
per share amounted to QR (0.32) for the period ended on
31/03/2017 compared to loss per share amounted to QR (0.55) for
the same period of the previous year. The Board of Directors
recommended to the Annual General Assembly not to distribute
dividend in order to accelerate investment in coverage and fixed
line opportunities.
Though Vodafone's income declined by 2.85% to QR2059 million in
2016, total expenses fell by 11.4% to QR 1522 million.
Consequently, the company achieved an operational profit
worth QR 536.5 million, up by 33.8% compared to last year.
Deducting amortization and depreciation, financing cost, then
the company's loss drops by 42.2% to QR 269.2 million. Hence,
the accumulative loss incurred since incorporation increased by
11.1% to QR 3.97 billion.
2-- Qatar Islamic Bank (“QIB”), priced a highly successful USD
750 million 5-year RegS only Sukuk offering. The Sukuk was
issued at par with an annual profit rate of 3.251% (payable
semi-annually), representing a spread of 135bps over 5-year
mid-swaps. The transaction represents QIB’s return to the public
debt capital markets, following its USD 750mn Sukuk issuance in
October 2015. Citi, Emirates NBD Capital, HSBC, Noor Bank,
QInvest and Standard Chartered Bank acted as joint book runners
and joint lead managers on the transaction.
3-- Mannai Corporation plans to acquire an additional 29% stake
in 2017 and an additional c. 15% stake in 2018 in Gfi
Informatique from Apax France, Altamir and Boussard & Gavaudan.
Economic
Developments
1-- Banks consolidated balance sheet for March has not been
released, but that of February shows a rise in total assets by
about QR 2.5 billion to stand at QR 1264.4 billion.
The total domestic public debt, including bonds,
increased by about QR 18.1 billion to QR 436.9 billion, while
the total domestic private sector deposits fell by QR 2.1
billion to the level of QR 439 billion.
2-- The Ministry of Development Planning and Statistics (MDPS)
has released the Consumer Price Index (CPI) for the month of
March 2017. Data shows that the annual inflation rate increased
by 0.9% when compared to CPI of 0.7% in February; 1.2% in
January; 1.8% December; 2% in November and 2.2% in October 2016.
3-- Last week, OPEC oil prices recouped 1.5 dollar, closing at $
49.87 per barrel on Thursday.
4-- Last week, Dow Jones index lost 91 points to reach the level
of 20805 points. US Dollar exchange rate increased to the level
of 111.26 yen, and $ 1.12 per Euro. Gold price increased by 28
dollars to the level of $ 1256 per ounce.
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