The Group Securities Weekly Report on QSE Performance, 12 – 16 November 2017

The general index continues its decline to 7826 points

The stock market indices continued to decline and last week lost more points where the general index lost 60 points to reach the level of 7826 points. Thus, the index has lost 25% of its value since the beginning of the year. The declines in Islamic-listed stocks were sharp as Al Rayan Islamic Index declined 2.65% versus a decline of only 0.76% for the general index. The biggest declines were in shares Medicare, Ezdan and Qatar First Bank. Five of the sectoral indices were also down; the real estate sector was the most declining by the rate of 10.56%. On the other hand, the total trading decreased by 8.4% to QR 818.2 Billion. Total capitalization decreased   QR 5.8 Billion to QR 420.5 Billion and P/E ratio   was down to 11.6, the lowest level since 2010.
The general index fell 60 points i.e.  0.76%, to 7825.8 points. All shares index decreased by 1.98% while the Islamic Rayan Index decreased by 2.65%. Five sectoral indices, in particular real estate index followed by transport index and services index. Medicare Group share price was the most declining by the rate of 24.9%  followed by Ezdan share price of 18.5%, Qatar First Bank by 11.7%, Qatari Investors Group by 10.2%  and the Islamic Holding Group share price by 9.3%. On the other hand, Qatar Insurance Company share price rose 5.2% followed by the Commercial Bank share 3.27%, QNB share 3.24%, Zad share 2.94% and Industries Qatar share price 1.92%.

The total trading volume fell by 8.4% to QR 818.2 Million and the daily average dropped to QR 163.6 Million. Trading on shares of QNB topped valued at QR162.4 Million followed by Electricity & Water shares worth QR 72.9 Million then Milaha shares QR68.5 Million and Masraf Al Rayan share QR 67.2 Million. Qatari individuals were the sole net sellers of QR 38.9 Million versus net purchases of QR 23.7 Million by non-Qatari portfolios and QR15.2 Million by Qatari portfolios. As a result, the total capitalization of the stock exchange shares declined by QR 5.8 Billion to QR 420.5 Billion and P/E ratio dropped to 11.60 from 11.76 a week ago.

Corporate News:
1 - Widam Food Company announced that it received a copy of the  Court of Cassation - Civil Court ruling in the Appeal No. 314/201and rejected the appeal raised by the Ministry of Municipality and Environment. Thus, Widam Food Company won the case obtaining QR 11,939,369 Million as compensation from the Ministry of Municipality and Environment.  

2. The Board of Directors of Mannai Corporation has announced holding the Extraordinary General Assembly Meeting scheduled for Sunday, December 03, 2017.

3. Qatar First Bank announced that the Astro AD Cayman Ltd, a fully owned subsidiary of Qatar First Bank founded in Cayman Islands, CR No CT 239044 (hereinafter referred to as “Subsidiary”) has sold all its shares in Amanat Holding, founded in UAE and listed in Dubai Financial Market. The sale amount is UAE Dirhams 150,000,000 (Only One Hundred Fifty Million UAE Dirhams). The deal amount does not represent more than 10% of the total assets of the bank. Moreover, conclusion of this deal will not negatively affect in any way on financial position of the bank, and the deal was concluded in full accordance with the standard common commercial practices.

Economic Developments:
1. Banks consolidated balance sheet for October has not been released and the data for September  showed a rise in bank assets / liabilities worth QR 19 Billion to reach QR 1336.8 Billion. Government and public sector deposits rose QR 7.3 Billion to QR 302.7 Billion and the government and public sector loans declined by about QR 5 Billion to QR328.9 Billion. Total bonds and T-bills rose QR 17.5 Billion to QR146.3 Billion while the private sector loans marginally increased to QR 453.9 Billion.

2. The consumer price index for October 2017 rose by 0.2% to 108.7 points compared to the figures of October 2016. As a result, the inflation rate reached 0.2% compared with 5% in September 2017

3. OPEC oil price until last Thursday rose by $ 1.63 a barrel to $ 59.98 per barrel compared to $ 61.61 a barrel in the previous week.

4. The Dow Jones fell nearly 64 points to 23,358 points. US dollar exchange rate rose to $ 1.18 per euro, falling to 112.07 yen per dollar. Gold price rose $ 18 per ounce to $ 1294.