The Group Securities: Weekly Report on QSE Performance, 26-30 Nov 2017

General Index Fluctuates at Bottom with Small Decline

Last week, Qatar Stock Exchange performance was unsteady. In fact, three trading sessions closed up, while two others ended on negative note. The result was a fall by 28.2 points or by 0.36% in five trading sessions. Notably, Al Rayan index surged by 2.29% as result of robust gains made by the shares of its companies; namely, Qatari Investors Group, Qatar Islamic Insurance, and Medicare and Ezdan Holding Group. Moreover, total trading volume increased by 64.7% to QR1428.7 million, with an average daily trading of QR285 million.  Total capitalization remained steady, with a marginal increase of QR418.2 Billion.  P/E Ratio reached a 11.54 multiple, unchanged from the previous week. Qatari individual investors continued to lead net purchases with a volume of QR81.4 million, while non-Qatari portfolios topped net sales with a value worth QR89 million.  The transactions of other categories of investors remained limited.

In depth, General Index slipped by 28.2 points, or 0.36% to the level of 7714.3 points, while All Shares index rose by 0.75%.   Al Rayan Islamic Index increased by 2.29%. Four Sectoral Indices ended low; namely, Insurance, followed by Telecommunication, Industries, and then Banking sector. In contrast, Real Estate, Transport and Commodities recorded strong gains. The share price of Qatar Investors hit the highest level, notching a 28.8% increase, followed by Qatar Islamic Insurance by 25.6%, Medicare Group by 22%, MILAHA, and Ezdan Holding Group. In contrast, the share price of Qatar Industries fell by 6.1%, Qatar Insurance by 6.08%, Al Khaleej Takaful by 5.14%, Doha Bank by 4.25%, and Ooredoo by 4.20%

Total trading volume increased by 64.7% in the space of one week to QR1428.7 million, while the average daily trading  rose to QR285.7 million. QNB’s share dominated the trading with a volume of QR315.3 million, followed by Industries Qatar with QR109.6 million, QIB with QR85 million, MILAHA with QR71.8 million, and Masraf Al Rayan with QR64 million. It should be noted that Qatari individuals dominated net purchases with a volume of QR81.4 million, compared to non-Qatari portfolios that recorded net sales of QR89 million. Consequently, the QSE's total capitalization rose by QR0.1 Billion, reaching QR418.2 Billion. P/E Ratio stood at a multiple of 11.54, similar to the previous week.

1.       Qatar Oman Investment Company (QOIC) announced the opening of the candidacy to the Board’s membership in its new 3- years tenure(2018-2020). Six members will be elected to the Board in the process that will take place starting the morning of Thursday 30/11/2017 throughout 14/12/2017.

2.       Al Khaleej Bank’s ordinary general assembly has approved the nomination and election list of the board of directors which has been prepared to comply with the applicable laws of good governance. The next election of the Board of Directors will be structured around these approved regulations. Furthermore, the Bank’s extraordinary general assembly approved the proposed amendments to the statute

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 QR328.9 Billion, a decline of QR5 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.       Qatar’s Trade Balance recorded a surplus of QR8.7 Billion for October 2017, a hike of QR1 Billion or 12% compared to the same period from the previous year. However, equated to the previous September of 2017, the Trade Balance decreased by 30.9% a fall worth QR3.9 Billion.

3.       OPEC oil price remained stable at $61.06 until past Thursday, compared to $61.14 a barrel in the previous week.

4.       Dow Jones reached a new record height to mark 24,231 points. The US dollar exchange rate remained put at $1.19 per euro, and had seen a slight push up against the yen marking ¥112.10 per dollar. Gold price on the other hand dropped marginally to $1,283 per ounce.