Press Relea

The Group Securities Weekly Report on QSE Performance, 17-21 September 2017

Has the general index reached the bottom?

September 23, 2017

Oil prices rebounded strongly last week and OPEC oil price reached $ 54.59 a barrel on Thursday. This had a positive impact on trading in Qatar Stock Exchange and the index began to return to green in the last three sessions, reflecting the possibility that the index has reached the bottom at the level of 8278 points. By the end of the week, the general index had lost only 49 points and returned to the level of 8361 points. The total capitalization lost QR 2.4 billion to stand at QR 456.8 billion. The sectoral indices losses shrank, except insurance sector index which decreased by 5.28% due to the news of the closure of Qatar Insurance Company branch in the UAE. Telecommunications and industry indices recorded limited gains. The Group Securities reviews QSE performance in the week ending September 21, 2017 with illustrative charts combined with corporate news and a list of the affecting economic developments.

Corporate News:
1. Vodafone Qatar announced the results of its Board of Directors’ (BOD) meeting held on the afternoon of Tuesday 19 September 2017 in Doha, Qatar.  The Board has approved to invite the shareholders to an Extraordinary General Assembly meeting to approve the proposed changes to the Company’s Articles of Association subject to obtaining prior necessary regulatory approvals. The Board discussed also various business related items.

 2. Ooredoo ORDS announced that the de-listing process of Ooredoo GDR (Global Depositary Receipt) from the London Stock Exchange has now closed, effective from 31 August, 2017.  The primary reason for the delisting was that international investors are now easily able to purchase Ooredoo securities on Qatar Stock Exchange.Ooredoo GDR was admitted to trading on the London Stock Exchange on July 1999.

3- CEO of Umm Al Houl Power Company, a subsidiary of Qatar Electricity and Water Co. (QEWC), announced the completion of 93% of the QAR 11 billion Umm Al Houl Power Station. The station’s power generation capacity amounts to 136 million gallons of water a day and 2,520 megawatts (MW) of electricity, the CEO said on Sunday, according to a filing to the Qatar Stock Exchange (QSE). The power plant supplies Qatar with about 1,600 MW of electricity and 60 million gallons of water per day pumped into the Qatar General Electricity & Water Corporation’s (Kahramaa) network, he added.

4. Qatar Insurance Company has announced that due to the prevailing political events in the region, it was not possible to renew the business license for the company's branch in the Emirate of Abu Dhabi, United Arab Emirates. The branch which has been engaged in insurance business since 2002 and its underwriting Gross premium in this market with an estimated figure of around QAR 110 million per year.

5. A.M. Best Rating Agency has reaffirmed the current rating of Doha Insurance Group (DIG) at A- with a stable outlook. 

Economic Developments:

1. The consumer price index for August dropped to 108.3 from 108.7 in August 2016. As a result, inflation recorded a negative rate of -0.36% compared to a rise of 0.2% in July.

2. Banks consolidated balance for August was released showing an increase of QR 14.9 billion in total assets to stand at QR 1317.8 billion; government and the public sector total debt, including T-bills, increased QR 5.1 billion to reach QR 462.8 billion. Total private sector debt increased QR 3.4 billion to reach QR 453.5 billion.

3. OPEC crude oil price rose 0.96 cents to $ 54.59 per barrel, compared to $ 49.41 per barrel in the previous week. Qatar oil prices rose 6.3 % in mid-August to stand at $ 50.90 per barrel from $ 47.80 per barrel a month earlier.

4. The Dow Jones index rose 82 points to 22350 points. US Dollar exchange rate fell to $ 1.20 per euro but rose to 111.99 yen per dollar. Gold price fell $ 22.5 per ounce to $ 1300.5.