The Group Securities: Weekly Report on QSE Performance, 8-12 April 2018

General Index Up 1.43% Despite End of Week Drop

Stock indices dropped by the end of the week in reaction to concerns about the situation in the Middle East worsening following American threats to strike the Syrian regime. As a result, the general index retreated to below the level of 9000 points, after having exceeded it in the Tuesday and Wednesday sessions. By the end of the week the general index was still up 1.43% compared to the previous week, and settled at 8918.5 points, while Al Rayan gained 0.68%. Indices of four sectors made an increase, while those of three other sectors dropped. The total capitalization increased to QR491.9 billion, and the profit-to-earnings ratio rose by a multiple of 12.79.

In depth, the General Index increased by about 125.6 points or 1.43%, to the level of 8918.5 points. Al Rayan Islamic Index rose by 0.68%, as well as 3 Sector Indices, most noticeably insurance, while the indices of 4 other sectors dropped, mainly real estate. It has been noticed that the share price of Aamal made the largest gain with a 6.67% hike, followed by Mesaieed by 6.3%, Water & Electricity by 5.35%, and then QIB by 4.43%. In contrast, the share price of Al Mannai recorded the biggest loss with a 10.6% drop, followed by Islamic Holding by 7.9%, Ahli Bank by 5.9%, and finally Investment Holding by 4.8%.

Total trading volume increased by 13.3% during the week to QR1.43 billion, consequently the average daily trading increased to QR286.9 million. Industries Qatar led the traded shares with a volume of QR213 million, followed by the share of QNB with QR176.3 million, Mesaieed with QR148.1 million, and then Doha Bank with QR92.6 million. It was noticed that Non-Qatari portfolios made net purchases worth QR44.9 million. Qatari individual investors made net sales of QR44.9 million, while Qatari portfolios made a total net sales of QR11 million, as for non-Qatari individuals, they made net sales of QR18.5 million. As a result, QSE’s total capitalization increased by QR9.1 billion to reach QR493.9 billion. P/E ratio increased to a multiple of 12.79 compared to 12.59 a week earlier.

Corporate News:

1-       Qatar National Bank's net profit rose to QR3.4 billion in the first quarter of 2018, compared to QR3.2 billion for the same period last year. The bank’s earnings per share amounted to QR3.6 compared to QR3.3 for the same period last year. Total operating revenues for the first quarter increased by 11% to QR5.96 billion, of which QR4.67 billion in net interests. All expenses increased by 17% to QR2.34 billion for the same period, of which QR882.8 million went to the personnel, and QR599.1 million for impairment losses on loans. Consequently, the net profit increased by 7.1% to QR3.43 million. There were fair value of investments losses among others amounting to QR1.47 billion. As a result, the comprehensive income attributable to shareholders amounted to QR2009 million.

 

2-       Doha Bank announced that Fitch Ratings has affirmed the bank’s credit rating at ‘A’ for “its ability to meet its long-term financial obligations”. Moreover, QIIB said that the international rating agencies Fitch and Capital Intelligence gave the bank a rating of ‘A’. As for QIB, Fitch had established the bank's long-term credit rating at A, while Standard & Poor's confirmed the bank's rating at A-.

 

3-       Qatar Central Securities Depository announced that it has raised the maximum ownership of non-Qatari investors in Electricity & Water Co., QIB, Qatar Industrial Manufacturing Co., and Industries Qatar to 49% instead of 25%.

 

4-       Qatar Cinema general assembly approved the distribution of a 10% cash dividend to shareholders for the financial year 2017.

 

5-       QIIB set 15 April to disclose its first quarter financial statements for 2018, while Nakilat and Qatar Insurance chose 24 April, General Insurance will release them on 25 April, and Qatar-Oman and Al Meera will follow suit on 29 April. Ezdan Holding slated the release of its first quarter figures on 30 April, while UDC postponed it to 29 April.

 

6-       Al Meera announced the opening of its 49th shopping center in Aba Al Heran, Qatar.

 

Economic Developments:

 

1-      Ministry of Development Planning & Statistics issued the consumer price index for March 2018, which shows a decrease in inflation to 0.4% compared to 0.8% in February 2018.

 

2-      OPEC oil in Qatar increased during the previous week until Wednesday 11th April by US $3.81 due to the tension in the Middle East to US $68.29 per barrel, compared to the previous month’s price tag of US $64.48 per barrel.

 

3-      Dow Jones index lost 22 points to go down to the level of 24483 points until closing on Thursday. US dollar held its $1.23 position against the euro, and held steady once again against the yen at ¥107.56 per dollar. Gold rose by about US $10 to the level of $1340 per ounce.

 

 

 

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