The Group Securities: Weekly Report on QSE Performance, 3-7 December 2017

December 10, 2017

Qatar Stock Exchange succeeded in absorbing the shock resultant from the Kuwait Summit failure to resolve the Gulf crisis. While optimism about a near breakthrough in the crisis prompted the General Index to rise at the beginning of the week to the level of 8000 points, it relapsed immediately after the Summit. In fact, it remained 59.3 points higher than the previous week, or 0.77%, settling at the level of 7773 points. Led by Insurance and Real Estate, six sectoral indices increased.  As for other groups, we find that total trading volume decreased by 21.2% to QR1125.3 million, with an average of QR225 million per day. Total capitalization of the market surged by QR7.5 billion to QR425.6 billion. P/E ratio multiplied 11.54 times.

In depth, General Index rose by 59.3 points, or 0.77%, to the level of 7773.6 points, and All Shares index rose by 2.64%. While Al Rayan Islamic Index declined by 0.03%, six sectoral indices ended on the positive; namely, Insurance and Real Estate; while Transportation recorded a decline. The share price of Qatar Insurance hit the highest level, notching a 17.09% increase, followed by Ezdan's share by 15.1%, Zad Holding by 9.26%, Gulf International by 8.05%, and Qatar Industrial Manufacturing by 6.58%. In contrast, the share price of Ahli Bank fell by 11.4%, followed by Medicare by 9.05%, Qatari Investors by 6.4%, Islamic Holding by 5.86%, and Mesaieed by 4.69%.

Total trading volume decreased by 21.23% in the space of a week to QR1125.3 million, while the average daily trading fell to QR225 million. QNB’s share dominated the trading with a volume of QR181.7 million, followed by Al Rayan with QR88.1 million, Mesaieed with QR62.3 million, Ezdan with QR54.7 million, and then Qatar Industries with QR52.7 million. It should be noted that Qatari individuals made net sales worth QR24 million, while Qatari portfolios made net sales worth QR86.8 million, against net purchases of QR102.2 million by non-Qatari portfolios, and net purchases worth QR8.6 million by non-Qatari individual investors. Consequently, the QSE’s total capitalization rose by QR7.5 billion to reach QR425.6 billion. P/E ratio stood at a multiple of 11.74, compared to last week’s 11.54.

 

Corporate News:

1.      Mannai Corporation (QPSC) announced the results of its Extraordinary General Assembly meeting held on December 3rd. The meeting resulted in the approval of proposed amendments, including the revision of the Corporation's Articles of Association according to the provisions of Corporate Governance Regulations issued by Qatar Financial Markets Authority.

 

2.      Dlala’s Extraordinary General Assembly was held on 05/12/2017, where a number of resolutions were adopted to amend the Company's Articles of Association.

 

Economic developments:

1.      Banks’ consolidated balance sheet for October has been released showing a fall in bank assets/liabilities worth QR18.1 billion, down to QR1318.7 billion. Government and public sector deposits were affected as well, recording a fall of QR4.3 billion, sitting at QR298.4 billion. As for Government and public sector loans, they reached QR343.4 billion, a rise of QR14.5 billion, while bonds and treasury bonds dropped by QR5.7 billion to QR140.6 billion, whereas the private sector loans increased by QR4.8 billion to QR458.7 billion.

 

2.      Oil prices fell almost 3% on Wednesday, after a sharp increase in U.S. refined fuel inventories indicated a potential drop in demand, while U.S. oil production hit a new record high of 9.7 million barrels per day. OPEC crude oil price fell by $0.33 a barrel to $60.73 a barrel from $61.06 a barrel the previous week.

 

3.      Dow Jones rose by 98 points to 24,329 points. The US dollar exchange rate surged to $1.18 per euro, rising to ¥113.47 per dollar. Gold, on the other hand, fell by about $38 an ounce to the level of $1250.