The Group Securities: Weekly Report on QSE Performance, 11-15 June 2017

Last week, QSE performance remained remarkably steady, with the Gulf political crisis having no impact on the latter. Though foreign portfolios continued net selling, it was with limited amounts worth QR285 million. Qatari portfolios offset this with net buying worth QR 340 million. The performance was not affected by the declining oil prices which slid below 45 dollars per barrel. Likewise, the performance was not affected by the decision of Qatar Central Bank to raise the interest rate by 0.25 per cent. In a nutshell, general index rose by 20 points to the level of 9258 points. Sectoral indices increased, except for banking and telecommunications. Though total trading declined by 34% to QR1.9 billion, total capitalization increased to QR 500 billion. Price-earnings ratio (P/E Ratio) amounted to 13.14 times as much the original price. The share price of 27 companies increased while 14 others went down. 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 Insurance Company Board of Directors held its fourth meeting in 2017 on Tuesday evening 13/6/2017 to discuss the points on the agenda of the meeting.  The board revealed that over 70% of its business today comes from the Group’s international franchise. The board was informed about the procedures of adjusting the nominal value of the company’s share from QAR 10 riyals per share to become QAR 1 riyal per share.

2-- Vodafone Qatar announces the results of the Ordinary General Assembly Meetings held on Monday 12 June 2017.The shareholders of the company approved, among others, the proposal of the Board of Directors to not distribute dividend for the financial year ended 31 March 2017.

3-- The Qatar Stock Exchange announces the completion of the subscription process on the Doha Bank's unsubscribed capital increase shares amounting to three million, three hundred thousand and nine hundred and fifty (3,309,935) shares. The subscription was carried out during the official trading hours in the ordinary market since Tuesday 20/6/2017.

 

Economic Developments

1-- Qatar's central bank said on Thursday it was raising its overnight deposit rate by 25 basis points to 1.50 percent, after the U.S. Federal Reserve raised rates by the same margin. However, the Qatari central bank kept its overnight lending rate unchanged at 5 percent and its repo rate, used to lend money to banks, flat at 2.25 percent.

2-- Banks Consolidated Balance Sheet of May has not been released yet, but that of April shows a rise in total assets / liabilities by QR 25.6 billion to QR 1308.1 billion and a rise of QR 40.5 billion in total domestic public debt, including bonds, to reach QR 464.4 billion. The private sector credit rose QR 0.1 billion to stand at QR 439.1 billion.

3-- Last week, oil prices fell by after US data revealed an increase in its crude oil stockpile, which spurred fears about the ability of OPEC members' agreement to cut the gut. Brent Crude lost around 1.89 dollars or 3.86% to 46.84 dollars per barrel. Open oil continued its decline, losing 1.40dollars per barrel, and closed on Thursday at the level of QR 44.78 dollars per barrel.

4-- Last week, oil prices fell by after US data revealed an increase in its crude oil stockpile, which spurred fears about the ability of OPEC members' agreement to cut the gut. Brent Crude lost around 1.89 dollars or 3.86% to 46.84 dollars per barrel. Open oil continued its decline, losing 1.40dollars per barrel, and closed on Thursday at the level of QR 44.78 dollars per barrel.