The Group Securities: Weekly Report on QSE Performance, 11-15 Feb 2018

General Index Climbs to 9028 Points

 

 

The performance of the market fluctuated during most of the week, although finally settled on the positive with an increase of about 134 points, or 1.51% to the level of 9028 points. However, total trading declined by 37.1% to QR809.3 million and the shares of 29 companies declined, while the shares of only 13 increased, but the total capitalization made a noticeable climb of QR3.7 billion. Five disclosures of varying levels were issued over the course of the week; ranged from the positive such as the disclosures of Industries Qatar, Mesaieed and Ooredoo, to the less so, such as General Insurance’s and QIMC’s. Moreover, the events of the week coincided with the continued decline in oil prices, as OPEC oil drops to the level of US $60.62 a barrel.

In depth, General Index increased 134 points or 1.51%, to the level of 9028 points, while Al Rayan Islamic Index made a climb of 3.17%. All sectors indices ended on the positive, led by Banking, Insurance and Industry. The share price of Islamic Insurance recorded the biggest win, notching an 8.16% hike, followed by Vodafone by 8.06%, Al Khaliji Bank by 7.50%, Qatari Investors by 7.03%, and then GWC by an increase of 6.65%. In contrast, the share price of Ezdan recorded the biggest loss with a 3.08% drop, followed by Milaha with a fall of 3.05%, Mannai by 2.89%, Qatar Cinema by 2.37%, and then Salam International by 2.08%.

Total trading volume dropped by 37.1% during the week to QR809.3 million, as well as the average daily trading, which retreated to QR202.3 million. QNB shares led the trading with a volume of QR85.7 million, followed by Al Rayan with QR61.2 million, Barwa bank with QR51.9 million, and then Qatar First Bank with QR51.7 million. It was noticed that Qatari portfolios dominated net purchases with QR21.2 million, against net sales of QR30.5 million made by non-Qatari portfolios. Qatari individuals made net sales of QR21.2 million, and non-Qatari individual investors made net sales worth QR20 million. Consequently, QSE’s total capitalization rose by QR3.7 billion to reach QR481.4 billion. P/E ratio dropped to a multiple of 12.70 compared to 13.11 last week.

Corporate News:

1.      The net profit of Mesaieed Petrochemical Holding Company for the year 2017 amounted to QR1,088 million, compared to QR995 million for the same period of the previous year. The petrochemical company’s earnings per share for 2017 amounted to QR0.87 compared to QR0.79 for the corresponding period. Mesaieed Board recommended the distribution of cash dividends of QR0.70 per share for the financial period ended on 31/12/2017. Mesaieed’s total revenue for the year 2017 increased by 8.9% to QR1,003.9 million, of which QR971.7 million generated from the company’s share in the results of joint ventures. Public and administrative expenses were down to QR16.4 million, while tax rebates rose to QR100.8 million from QR89.8 million in 2016. Consequently net profit rose 9.4% to QR1,088.2 million.

 

2.      Industries Qatar (IQ) net profit recorded about QR3,315 million in the fiscal year of 2017, compared to QR2,955 million for the same period of the previous year. The Company’s earnings per share settled at QR5.48 in 2017, versus QR4.88 for the previous year. IQ’s Board recommended distributing QR5 per share in cash dividends. Industries Qatar total revenue dropped by 38% to QR709.6 million. While the company's administrative and distribution expenses decreased by 5.5% to QR257 million, IQ’s revenues from other investments increased by 12.5% to QR254.6 million. However, the majority of the company's income comes from its share in net profits of joint and associate companies, which increased by 49.3% to QR2,634.6 million. As a result, the net profit of the Industries Qatar rose by 12.2% to QR3,315 million, and there were limited changes in the comprehensive income.

 

3.      Ooredoo’s net profit recorded QR1.9 billion in 2017, compared to QR2.1 billion for the same period last year. The company’s earnings per share settled at QR6.14 versus QR6.84 for the corresponding period in 2016, while the Board recommended cash dividends of QR3.5 per share. Ooredoo’s net operating revenues in the financial year of 2017 stabilized at QR20.7 billion, while all expenses dropped 2.3% to QR17.1 billion; of which QR6.9 billion in administrative and general expenses, and QR8.4 billion in depreciation and amortization. Deducting QR610.3 million in concession fees and taxes, the net profit attributable to shareholders increased 10.3% to QR1,966.5 million. Changes in overall income were positive and limited.

 

4.      Qatar General Insurance (QGI) net revenue amounted to QR307.3 million in 2017, versus QR219.3 million for the same period of the previous year. QGI’s earnings per share recorded QR3.51, compared to QR2.51 in 2016. The company’s Board recommended cash dividends of QR2.2 per share. QGI’s 2017 subscription results held steady with a limited decline to QR105.6 million. The results of investments and other operations decreased by 8.7% to QR397.2 million. All expenses increased by 7.3% to QR285.9 million. The company received unexpected profits of about QR838.4 million compared to only QR2 million in the previous year thanks to its share in a number of associates. As a result, the net profit attributable to shareholders increased by 40.2% to QR307.4 million. The company had a currency loss and a decrease in fair value of QR346 million, compared to QR17.1 million in the previous year. As a result, the total loss attributable to shareholders amounted to QR39.4 million compared to QR202.2 million in the previous year.

 

5.      Qatar Industrial Manufacturing Company net profit recorded QR206.1 million for the year financial year of 2017, compared to QR193.8 million for the same period of 2016. The Company’s earnings per share settled at QR4.34 compared to QR4.08 for the same period of last year. The Board recommended distributing QR3 per share in cash dividends. Gross profit from sales in 2017 decreased by 50.6% to QR97 million, while all expenses fell by 15.7% to QR64.8 million. After the addition of other items, the most important of which was the share of associate companies’ results amounting to QR158.8 million, the net profit attributable to shareholders decreased by 13.5% to QR210.4 million. The comprehensive income dropped to QR168.3 million due to cumulative negative changes in fair value.

Economic Development:

 

1.      OPEC oil price of dropped on Wednesday recording a decrease of $3.62 to $60.62 a barrel from $64.30 a barrel the previous week.

 

2.      Dow Jones index gained 340 points to hit the level of 25200 points until Thursday. U.S. dollar dropped to $1.23 per euro and 3% against the yen to ¥105.91 per dollar. Gold rose by $38 to the level of $1360 per ounce.

 

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