The Group Securities: Weekly Report on QSE Performance, 25-29 Mar 2018

General Index Drops 2.85% to 8574 Points

Al Rayan Islamic Index Loses 3.81%

Five general assemblies were held during the week, and the proposed dividends were approved, which in turn created a pressure on shares prices. The prices were also adversely affected by the disclosure of the results of Qatari German Medical Devices Company and Qatar First Bank, since the losses of the two companies deepened. Also, despite the rise of OPEC oil price during the week to more than US $66 per barrel, the news of general assemblies and disclosures have dragged down the shares prices of all companies in general and Islamic companies in particular. As a result, indices, trading volumes, total capitalization, and the price-earnings ratio decreased.

In depth, the General Index decreased by 252 points or 2.85%, to the level of 8574 points, while Al Rayan Index declined by 3.81%. 6 Sector Indices, namely Real Estate, Telecommunication and Goods & Services. It has been noticed that the share price of Islamic Insurance recorded the biggest loss with a 16.9% drop, followed by QIIB by 13.1%, Qatar First Bank by 12.8%, Milaha by 7.5%, and then Qatar Insurance by 7.4%. In contrast, the share price of Qatar Cinema recorded the biggest win with an 11.1% hike, followed by Ahli Bank by 4.7%, QIB by 3.7%, Vodafone by 1.1%, and finally Zad Holding by 1%.

Total trading volume dropped by 37.8% during the week to QR1029.4 million, consequently the average daily trading retreated to QR205.9 million. QNB led the traded shares with a volume of QR132.8 million, followed by the share of Industries Qatar with QR96 million, Al Rayan with QR84.5 million, and then Qatar First Bank with QR74.5 million. It was noticed that Qatari portfolios monopolized the net sales with transactions worth QR109.3 million, against net purchases of QR65.6 million made by non-Qatari portfolios. Qatari individuals made net purchases of QR26.9 million, and non-Qatari individual investors made net purchases worth QR16.8 million. As a result, QSE’s total capitalization decreased by QR14.9 billion to reach QR470.5 billion. P/E ratio dropped to a multiple of 12.22 compared to 12. a week earlier.

Corporate News:

1.      Investment Holding Group will replace Mazaya Qatar in QE Index, effective April 1st, 2018, while Qatar Electricity & Water Co. will join QE Al Rayan Islamic Index.

2.      The profits of all companies listed on the Qatar Exchange rose by 1.1% to QR38.56 billion in 2017, compared to QR38.14 billion during the same period in 2016.

3.      Qatar First Bank net loss in 2017 amounted to QR269.2 million, compared to a net loss of QR265.6 million in 2016. The bank’s loss per share recorded QR1.35, compared to a loss of QR1.33 for the previous year. The Group noted that the bank’s total revenue decreased by 15.4% to QR334.2 million in 2017 as a result of the following: Revenues recorded QR370.2 million, investment profits and dividends amounted to QR186.1 million, fair value loss stood at QR142.4 million and the share of unrestricted investment accounts holders was QR79.6 million. On the other hand, total expenses decreased by 7.9% to QR579 million, of which QR421.2 million went to non-banking activities. As a result, the net loss for the year rose slightly to QR269.2 million.

4.      The net loss of Qatari German Medical Devices Co. (QGMD) amounted to QR21.6 million in 2017, compared to a net loss of QR10.3 million in the previous year. The company’s loss per share amounted to QR1.88 compared to a loss of QR0.90 in 2016. The Board did not recommend to distribute any dividends. In 2017, the Company's total profit from its direct activities dropped by 16% to QR2.55 million, however, QGMD made QR2.7 million from other revenues. General, administrative and distribution expenses increased by 26% to QR16.4 million. This year, the company recorded a decline in real estate value of QR6.6 million. After adding the financing cost of QR3.9 million, the company’s net loss for the year more than doubled to QR21.6 million. It should be noted that the net equity of the company has fallen to less than half of the capital of QR115.5 million.

5.      Zad Holding Company’s General Assembly decided to distribute QR6.5 per share in cash dividends, and 10% bonus shares instead of 5%. Accordingly, the share will be traded with the right to cash dividends and bonus shares for two working days starting Thursday 29 March 2018.

6.      QIIB’s general assembly approved the distribution of QR4 in cash dividend, while Islamic Insurance approved QR3.5, WOQOD approved QR8, and Al Meera Okayed QR8.5

7.      QNB fixed 10/04/2018 to disclose its Q1 2018 financial statements, while UDC did set 25^th April, Al Rayan scheduled the disclosure on 25^th, Alijarah on 12^th April, QWC on 16^th April, Doha Insurance on 18^th April, and Islamic Holding on 17^th April.

Economic Developments:

1.      OPEC oil continued its rising trend during the previous week, until Wednesday 27^th March, increasing by US $1.94 to US $66.05 per barrel, compared to the previous month’s price tag of US $64.11 per barrel.

2.      Qatar’s foreign merchandise trade balance, showed a surplus of about QR14.1 billion, i.e. an increase of about QR2.7 billion or 23.7% compared to February 2017; and a decreased of nearly QR1.7 billion or 10.7% compared to January 2018.

3.      Dow Jones index gained 145 points to go up to the level of 24103 points until closing on Thursday. U.S. dollar held its position at $1.23 against the euro, and it rose by ¥1.44 against the yen to ¥106.20 per dollar. Gold rose by US $3 to the level of $1327 per ounce.