The Group Securities Weekly Report on QSE Performance, 24-28 September 2017


Do foreign portfolios manipulate the market?

 

 

 


After a rise that extended to several sessions in the last two weeks, a strong setback took place in the stock market indices on Wednesday and Thursday, as a result of intensive selling led by non-Qatari portfolios with a net value of QR 86.4 million. As a result, the general index lost about 48 new points with the benchmark index falling to 8312 points, which represented a cumulative loss by the rate of 20.35% since the beginning of the year. This decline in Qatar Stock Market took place despite the fact that oil price continued to rise during the week and reached its highest level this year and despite the dividend distribution season is approaching with the beginning of the fourth quarter. However, the situation in the stock market is no longer favorable and attractive, a matter that requires changing the pattern of thinking in addressing the weaknesses that have been prevailing for years.
The Group reviews QSE performance in the week ending 28 September with illustrative charts combined with corporate news and a list of the affecting economic developments.


Corporate News:
1. In order to achieve standard levels of data security and for ensuring data flow speed while maintaining continuity, a contract has been signed between The Group and Qatar National Broadband Network (Qnbn) for establishing a private fiber optic network to connect four sites including Qatar Stock Exchange.

2. QNB Group has announced its intention to disclose its financial statements for the third quarter of 2017 on October 11, 2017. Other companies that have also announced dates for disclosure include: Doha Bank, Medicare Group, Salam International, Al Ahli, Al Khaleej Takaful Group, Masraf Al Rayan, Al Khalij Commercial Bank (al khaliji), Dalala and QIB.


Economic Developments:
1. Banks consolidated balance sheet for August was released before two weeks showing an increase of QR 14.9 billion to reach QR 1317.8 billion and the total government and public sector debts, including T-Bills, increased QR 5.1 billion to stand at QR 462.8 billion. Private sector debts also increased about QR 3.4 billion to reach the level of QR 453.5 billion.


2. The trade balance of the State of Qatar during   August achieved a surplus of QR 12.6 billion, recording an increase of QR 3.9 billion or 45.4% compared to the corresponding month last year and a rise of approximately QR 0.6 billion compared to the situation in July 2017.


3. OPEC oil prices rose to $ 55.59 a barrel from $ 54.59 a barrel in the previous week.


4. Dow Jones Index recorded its highest quarterly gain in 20 years, rising 55 points to a historic high of 22405 points. US Dollar exchange rate rose to $ 1.18 per euro and 112.46 yen per dollar. Gold price fell about $ 18 an ounce to the level of 1282.5 dollars.