The Group Securities: Weekly Report on QSE Performance, 30 July-03 Aug 2017

Last week, trading conditions were poor in light of scorching summer heat and the negative financials of seven companies. Woqod, Salam, Mannai, Mesaieed, Cinema and Investment Holding Group all had dwindling profit. Al Meera was the only company to maintain the steadiness of profit. Consequently, average daily trading dipped to QR 171.8 million daily. General index slid to QR 155 points or 1.65% to QR9243 points. Except for insurance, sectoral and other indices also fell down. Total capitalization also decreased by QR 8.2 billion to QR 500.9 billion. It was notices that portfolios sold net, as against individual investors, especially foreign portfolios which sold net worth QR 61.9 million. The Group reviews QSE performance in this week with illustrative charts combined with corporate business news, and a list of the affecting economic factors.

Corporates News:

1-- The company's total revenues, after subtracting operating costs, decreased by 8.4% to QR 359.3 million and the revenues are mostly from its operations. Total expenses including salaries, general and administrative expenses, financing costs, management incentives and depreciation increased by 11.7% to QR 337.9 million. Net profit attributable to shareholders decreased by 62.8% to QR 17.7 million compared to QR 47.6 million in the corresponding period. The fair value of available-for-sale investments decreased by QR 5.7 million and accordingly the comprehensive income decreased to QR 12.06 million.

2-- Gulf International's operational income dropped in the second quarter of this year by 35% to QR 195.8 million. Administrative and public expenses increased by 14.3% to QR128.5 million. Net financing cost increased by 42.5% to 61 million. Adding other items, including losses incurred as result of depreciation worth QR 10.9 million, then net profit falls by 90% to QR 15.8 million. Hence, comprehensive income fell by QR 4.2 million as result of the decline of its items by 11 million. 

3--  Although insurance revenues in the first half of the year increased by 25.2% to QR 99.8 million, yet, net insurance revenues decreased by 22.4% to QR 37.5 million. Investment revenues doubled several times to QR 28.5 million compared to QR 6.4 million in the corresponding period last year. As a result, net profit increased 62.2% to QR 33.9 million. On the other hand, the fair value losses on available-for-sale investments doubled to QR 51.8 million turning the company's profit to a comprehensive loss of QR 5.4 million compared to a profit of QR 23.4 million in the corresponding period in 2016.

4-- Mesaieed Petrochemicals total income from its different factories droped by 4.3% to QR 433.9 million.  Public and administrative expenses fell slightly by QR8 million. Adding some tax returns worth QR 42.8 million, net profit drops by 4.3% to QR 468.6 million. Comprehensive income seems on par with net profit.

5-- Al Meera's total income from sales increased by 9.8% to QR 236.6 million. Other sources of income settled at QR 48.5 million. In contrast, total expenses increased by 13.55 to QR 182.2 million, including QR 151.9 million of public and administrative expenses. As result, net profit stood at QR 102.36 million. There was a decline in the fair value of some investment worth QR 11.6 million, which lowered the comprehensive income to QR 90.87 million. 

6-- Mannai Corporation's total income from sales dropped 9.5% to QR 549.7 million in the second quarter of this year. Other sources of income and dividends also fell by 31.5% to QR 88.1 million. Total expenses fell by 9% to QR 471.4 million, including 200.8 million as public and administrative expenses; QR 154 million distribution expenses, and QR 116.6 million as financing and depreciation expenses. As result, net profit dropped by 1.8% to QR 166.5 million. The exchange rate of currencies yielded QR 151.5 million, thus bringing the comprehensive income up to QR 318 million.

7-- Mannai Corporation's total income from sales dropped 9.5% to QR 549.7 million in the second quarter of this year. Other sources of income and dividends also fell by 31.5% to QR 88.1 million. Total expenses fell by 9% to QR 471.4 million, including 200.8 million as public and administrative expenses; QR 154 million distribution expenses, and QR 116.6 million as financing and depreciation expenses. As result, net profit dropped by 1.8% to QR 166.5 million. The exchange rate of currencies yielded QR 151.5 million, thus bringing the comprehensive income up to QR 318 million.

8-- Woqod's total profit from fuel sales increased by 35 to QR 615.3 million in the second quarter of this year. Other sources of income declined by 3.1% to QR 551.6 million. In contrast, total expenses increased by 25% to QR 726.7 million. As result, total profit fell by 31% to QR 373 million.  There was a negative change in the fair value of assets worth QR 193.5 million. Hence, comprehensive income dropped by 59% to QR 186 million.

Economic Developments

1-- Banks consolidated balance sheet for July has not been released yet, but that of June shows a rise in total assets by about 7.7 billion to around QR1305.8 billion.  The total domestic public debt, including bonds, decreased by about QR 15.1 billion to QR 442.6 billion, while the total domestic private sector deposits increased by QR 6.9 billion to the level of QR 448.5 billion.

2-- Last week, OPEC oil prices recouped 0.46 dollar, closing at $ 50.70 per barrel on Thursday.

3-- Last week, Dow Jones index lost 5135 points to reach the level of 21858 points. US Dollar exchange rate stood at the level of 109.20yen, and $ 1.18 per Euro. Gold price increased by 31 dollars to the level of $ 1295 per ounce.