The Group Securities: Weekly Report on QSE Performance, 31 Dec 2017– 4 Jan 2018

Despite Sagging Trade Volumes General Index Surges

Last week, Qatar Stock Exchange’s performance slowed down again, clearly evidenced by a decline in the average daily trading volume to about QR173 million. Yet, key indices recorded new highs, with the general index hitting 8631 points; and total capitalization and P/E ratio also ended on a positive note. Overall, the stability of the market was driven by rising oil prices amounting to $65 per barrel; in addition to the upcoming dividends dates, presumably starting from next week.

In depth, General Index increased 105 points or 1.23%, to the level of 8631 points. All Shares index rose by 0.72%, while Al Rayan Islamic Index increased by 3.49%. All sectors indices ended on the positive; particularly, Transport, Services, and Industry. The share price of Ahli Bank hit the highest level, scoring a 25.15% increase, followed by Medicare by 16.54%, Gulf Warehousing by 13.14%, Al Khaleej Takaful by 7.95%, and Mesaieed 6.61%. In contrast, the share price of Commercial Bank recorded the biggest loss with a drop of 5.17%, followed by Ezdan by 3.99%, General Insurance by 3.47%, Qatar-Oman Investment Company by 1.89%, and Qatar Insurance by 1.30%.

Total trading volume dropped by 31.3% to QR866.1 million, average daily trading dropped to QR173.2 million. Al Rayan shares led the trading with a volume of QR87.8 million, followed by QNB with QR74.0 million, United Development with QR61.5 million, and QIB with QR51.1 million. It Qatari portfolios made net sales worth QR17.4 million, against net purchases of QR10.3 million by non-Qatari portfolios. Qatari individuals made net sales of QR4.0 million, while non-Qatari individual investors made net purchases worth QR11.1 million. Consequently, QSE’s total capitalization rose by QR5.1 billion to reach QR477.8 billion. P/E ratio rose to a multiple of 13.18 compared to 13.04 a week earlier.

Corporate News:

1.      The General Assembly of Vodafone Qatar approved, at its extraordinary meeting held on 18 October 2017, the decision to amend its financial year-end from 31 March to 31 December. Consequently, the Company’s financial year-end will start on 1 January and end on 31 December.  This will ensure alignment of the Company’s financial results announcements and other reporting requirements with the rest of companies listed in Qatar.

2.      Salam International Investment’s BoD announced that candidacy to its membership is going to be open from January 3 until the end of February 1.

3.      Qatar Reinsurance Company Limited, a subsidiary of Qatar Insurance Group (QIC), signed a purchase agreement to acquire a group of Gibraltar-domiciled insurance companies. The said companies is working under the umbrella of Markerstudy Group.

4.      Medicare Group said it had no explanation for the increase in the company's share price, and confirmed that it had no information or passed any resolutions that could have been behind the increase in demand for the company's shares in the past two days.

5.      The Board of Directors of Al Khalij Commercial Bank (al khaliji) announced the opening of nominations for the Board membership. Two independent shareholders candidates will be elected to fill two seats of the board for a three-year tenor. Applications will be received from Sunday, January 7, 2018 until the end of the day on Sunday, January 21, 2018.

Economic Development:

1.    Banks' consolidated balance sheet figures for November have been recently released. Data showed banks' assets increased by QR14 billion to QR1332.7 billion. Government and public sector deposits increased by QR9.6 billion to QR308 billion. On the other hand, the total loans of the government and public sector increased to reach QR491.2 billion, while the total private sector deposits increased to QR348.3 billion, and its loans surged to reach QR461 billion.

2.      OPEC oil prices expected to have increased to the level of $65.12 until last Wednesday, compared to $63 a barrel in the previous week.

3.      Dow Jones index gained 356 points to hit the level of 25075 points until Thursday. U.S. dollar dropped to $1.21 per euro, while it saw an increase against the yen to ¥113.21 per dollar. Gold rose by $30 to the level of $1321 per ounce.