The Group Securities: Weekly Report on QSE Performance, 08-12 Oct 2017

QSE performance improved over the last week and increased across the board. General index rose up throughout all trading sessions. Sectoral indices increased, and trading volumes jumped by 4.3% to QR 845.6 million. As result, the index increased by 210 points to the level of 8342 points, and total capitalization by QR10.1 billion. This rise coincided with the third wave of financial disclosures, initiated by QNB and Medicare Group.  QNB posted an increase of 20%, while Medicare notched 6%. 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-- Operational income dropped by 3% to QR 16.96 billion in nine months, including 13.22 billion as interests. Total cost decreased by 15.5% to QR 6.01 billion, including staff cost by 8.6% to QR 2.54 billion, loan loss by 38% to QR 959 million. As result, net profit attributable to shareholders increased by 6.2% to QR 10.25 billion. The comprehensive income losses – including loss as result of currency rate changes- dropped to QR 633 million compared to QR 3385 million in the same period last year. Hence, comprehensive income increased to QR 9503 million, compared to QR 6276 million in similar period.

2-- Medicare Group's operational income increased by 8% to QR 141.55 million in in the third quarter. Operational cost increased by 8.6% to QR 91.93 million. Adding other sources of income worth 8 million; deducting depreciation allocation worth QR 20.15 million; financing cost worth QR1.27 million, net profit rises by 2.1% to QR 36.25 million. Still, shareholder's equity dropped by 5.6% to QR 959.5 million.

3-- Qatar Islamic Bank (QIB) announced that it has entered a strategic partnership with Ibn Ajayan Trading Group. Under the terms of the deal, QIB will be the preferred financing partner for the Qatar-based equipment dealer. As part of the agreement, customers of Ibn Ajayan Trading Group who would like to purchase new equipment are entitled to use the Bank’s attractive Fleet and Heavy Equipment financing scheme.

4-- United Development Company (UDC) declares it has received the final approval from Qatar Industrial Manufacturing Company (QIMC) to its offer to sell its 400,000 shares in Gulf Formaldehyde Company (GFC) , representing 10% of the capital of GFC.

5-- A group of other companies announced their intent to disclose their financial results for the third quarter of 2017, including: Aamal, Ezdan, Mannai corporation, Kahrama, General Insurance, Investment Holding Group, Al Meera, Mazaya, Doha Insurance, Cinema, Ezdan

Economic Developments

1-- Banks consolidated balance sheet for August has been released showing a rise in total assets by about 14.9 billion to around QR1317.8 billion.  The total domestic public debt, including bonds, increased by about QR 5.1 billion to QR 462.8 billion, while the total domestic private sector deposits increased by QR 3.4 billion to the level of QR 453.5 billion.

2-- Last week, OPEC oil prices lost around  0.19$  closing at 54.44 dollar per barrel on Thursday, compared to $ 54.63 last week.

3-- Last week, Dow Jones index gained 412 points hitting a historic level at 22817 points. US Dollar exchange rate stood at the level of 111.82 yen, and $ 1.18 per Euro. Gold price increased by 23.6 dollars to the level of $ 1306 per ounce.