The Group Securities: Weekly Report on QSE Performance, 18-22 Feb 2018

General Index Settles Below 9100 Points

The previous week was slow in terms of disclosures and trading volume, which once again plummeted to below the level of QR800 million. Besides, the only disclosures released during the week were of the Islamic Insurance and Alkhaleej Takaful, with expected dividends distribution rates. The week closed on the share drop of 23 companies, while the remaining 18 companies witnessed an increase in their shares. On a wider picture, the general index made a move of 69 points up, but settled below 9100 points, while all sectors indices increased ever so slightly, and the total capitalization recorded a QR5.9 billion upsurge.

In depth, the General Index increased by 69 points or 0.76%, to the level of 9096 points, alike Al Rayan Islamic Index, which made a climb of 0.12% only. All sectors indices ended on the positive, especially Insurance and Real Estate. It has been noticed that the share price of Widam recorded the biggest loss, with a drop of 6.18%, followed by General Insurance by 4.61%, Dlala by 4.41%, Islamic Insurance by 4.22%, and then Qatari Investors by a slide of 3.34%. In contrast, the share price of Commercial Bank recorded the biggest win notching a 10.64% increase, followed by Qatar Cinema with a 10% hike, Qatar Insurance by 6.91%, Zad Holding by 6.08%, and then Ezdan by 5.71%.

Total trading volume dropped by 2.05% during the week to QR792.7 million, as well as the average daily trading, which retreated to QR158.5 million. QNB shares led the trading with a volume of QR88.2 million, followed by QIB with QR55 million, Qatar First Bank with QR53.4 million, and then Barwa with QR49 million. It was noticed that Qatari portfolios made net purchases with QR57.4 million, against net purchases of QR1.3 million made by non-Qatari portfolios. Qatari individuals made net sales of QR55.8 million, and non-Qatari individual investors made net sales worth QR2.8 million. Consequently, QSE’s total capitalization rose by QR5.9 billion to reach QR487.4 billion. P/E ratio climbed to a multiple of 12.86 compared to 12.70 last week.

Corporate News:

1.     Islamic Insurance net profit amounted to QR61.9 million in the fiscal year of 2017, versus QR63.5 million in 2016, while the company’s earnings per share reached QR4.13 compared to QR4.23 for the corresponding period. The Board recommended distributing cash dividends of QR3.5 per share. Islamic Insurance net surplus more than doubled in 2017, hitting a percentage of 108.4% to QR24.8 million, but the year-end surplus remained steady at QR83.5 million, unchanged from the previous year. With additional revenues, the total revenue amounted to QR99.9 million, compared with QR104.3 million in the previous year, and the company’s all expenses decreased by 6.9% to QR37.97 million. Consequently the net income fell by 2.5% to QR61.9 million.

 

2.       Alkhaleej Takaful Group net profit amounted to OR14.6 million for the fiscal year of 2017, compared to QR13.2 million for 2016. Alkhaleej earnings per share recorded QR0.58, compared to QR0.52 for the same period last year. The Board of Directors recommended distributing cash dividends amounting to QR0.50 per share. The company’s financial statements were not released.

 

3.      Widam’s Ordinary General Assembly approved the distribution of cash dividends of QR4.25 per share, while Al Ahli approved the distribution of 10% in cash dividends as well as 5% in bonus shares. On another hand, QIB’s General Assembly approved the distribution of cash dividend of QR5 per share and increase the maximum percentage of foreign ownership in the bank's shares to 49%, whereas Doha Bank’s Assembly discussed and approved the distribution of QR3 per share in dividends, among other things. As for Alijarah, the company announced the postponement of its Extraordinary General Assembly meeting for lack of quorum.

 

4.      Both Gulf International (GIS) and Milaha announced the opening of candidacy to their Board of Directors memberships for the next 3 year tenor, with GIS specifying the number of openings to 4 seats.

Economic Developments:

1.      Banks' assets (and liabilities) increased by QR3.1 billion to QR1366.7 billion by the end of January, compared to QR1363.6 billion by the end of December. The Government and public sector deposits dropped by QR18.9 billion to QR296.5 billion, while their total loans – excluding bonds – increased by QR7.5 billion to reach QR349 billion. The total private sector loans surged by QR1.9 billion to QR463.4, alike its deposits, which increased by QR2.1 billion to QR358.6 billion.

 

2.      OPEC oil price increased on Wednesday notching an upsurge of $2.21 to $62.81 a barrel from $60.62 a barrel the previous week.

 

3.      Dow Jones index gained 102 points to hit the level of 24962 points until Thursday. U.S. dollar rose to $1.23 per euro and 1% against the yen to ¥106.95 per dollar. Gold lost about $30 to settle at the level of $1330 per ounce.