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The Group Securities: Weekly Report on
QSE Performance, 15-19 June 2018
General Index Climbs to the Level of
9421 Points
The results of the 13 companies that have
disclosed their financial statements last week split between the
increase of profits for 9 companies, and the decline in 3, while
profits turned into losses for Investment Holding Company. This
coincided with a sharp drop in the price of OPEC oil to just
under US $70 a barrel. Therefore, the stock market performance
was relatively weak. The total trading volume increased by 16.5%
but remained below QR1 billion, and while the share prices of 19
companies increased, the share prices of 19 other companies
declined. As a result, the general index rose by 102 points to
9421 points, the total capitalization rose by QR4.1 billion to
QR512.4 billion and the P/E ratio climbed to a multiple of
13.04.
In depth, the general index increased by about 102 points or 1.10%,
to the level of 9421 points, while Al Rayan Islamic Index
increased by 1.31%. Sectoral indices increased, especially
Insurance, Industry and Banking. It has been noticed that the
share price of ZAD was the top gainer, up by 5.51%; followed by
Industries Qatar by 4.39%, Qatar Insurance by 3.65%, Dlala
3.14%, then QIB by 2.83%. In contrast, the share price of
Alijarah was the biggest loser, down by 3.16%; followed by Ezdan
by 2.45%, Gulf International by 2.33%, and Aamal by 1.95%, then
Ooredoo by 1.91%.
Total trading volume climbed by 16.48% to the level of QR908
million in a week, with an increased average daily trading of
QR181.6 million. QNB led the traded shares with a volume of
QR164.8 million, followed by the share of Vodafone with QR89.6
million, Industries Qatar with QR64.1 million, and Nakilat with
QR63.4 million. It was noticed that Qatari portfolios made net
purchases of QR58.1 million, while Non-Qatari portfolios made
net purchases of QR66.2 million. Qatari individuals made total
net sales of QR120.8 million, whereas foreign individual
investors made net sales of QR3.5 million. As a result, QSE’s
total capitalization climbed by QR4.1 billion to reach QR512.4
million, but the P/E ratio dropped to a multiple of 12.91
compared to 13.04 from last week.
Corporate News:
1-
QIB’s net profit for the first half of 2018 amounted to QR1.32
billion, compared to QR1.16 billion for the same period last
year, while the bank’s earnings per share recorded QR5.61 in the
first half of 2018, compared to QR4.93 in the same period in
2017. QIB's operating income increased by 7% to QR3.37 billion
in the first half of 2018, and its total expenses increased by
6.96% to QR690.3 million, of which QR321.3 million for personnel
costs. The bank recorded a net loss in value of financial
investments and assets of QR388.6 million, and the share of
restricted investment holders increased to QR1,000 million. The
result is an increase of 13.7% in the net profit attributable to
shareholders to QR1.32 billion.
2-
Masraf Al Rayan’s net profit amounted to QR1.06 billion in first
half of 2018 compared to QR1.02 billion for the same period of
the previous year, while the bank’s earnings per share recorded
QR1.42 in the first half of 2018 compared to QR1.36 in the same
period in 2017. Al Rayan's total revenues rose by 18% to QR2.43
billion in the first half of 2018 as a result of the bank’s
increased financing activities, while its total expenses
increased by 54.8% to QR727.7 million, of which QR397.6 million
were financing expenses – i.e., the Bank received significant
funds to support its operations. The share of unrestricted
investors increased by 5.8% to QR608.1 million, although the
balance of those accounts increased by only 3.2% to QR55.9
billion. The Bank's net profit for the first six months of 2018
climbed to QR1,065.9 million, 4.5% more compared to the
corresponding period of 2017.
3-
Widam Food net profit of amounted to QR60.6 million in the first
half of 2018, compared to QR54.14 million in the same period
last year, while the company’s earnings per share recorded
QR3.37 in the first half of 2018, versus QR3.01 for the same
period in 2017. Widam Food sales revenues climbed in the first
half of 2018 to QR282.4 million, an increase of 11.4% compared
to the same period of last year. However, the cost of sales rose
by 34.3% to QR503 million, bringing the total loss to 80.8%, or
QR503 million. It should be noted that Government subsidy
increased 52% to QR302.8 million, and with general and
administrative expenses at QR27.7 million, in addition to other
income of QR6.2 million, the net profit increased by 12% to
QR60.61 million.
4-
Ezdan Holding Group’s net profit amounted to QR422.3 million, 63%
lower than the net profit of QR1.15 billion recorded in the same
period last year, while the group’s earnings per share recorded
QR0.16, versus QR0.44 for the corresponding the period of 2017.
Ezdan’s net operating income shrank by 56.7% to QR659 million in
the first half of 2018. This sharp decline was a result of loss
of profits in the past period from the sale of investments and
shares in companies amounting to QR640 million. Despite the
decrease in general and administrative expenses by 14.7% to
QR117 million, financing costs increased by 34.5% to QR450.3
million. It should be noted that there were gains in the fair
value of investments amounting to QR267.8 million. As a result
the net profit for the first half of 2018 suffered a drop of
63.4% to QR422.3 million. In terms of comprehensive income, and
with a change in fair value of QR213 million, the total
comprehensive income amounted to QR650.1 million, versus QR818.1
million in the corresponding period of 2017.
5-
United Development Company net profit amounted to QR260 million,
compared to QR284 million recorded in the same period last year.
The company’s earnings per share recorded QR0.74 in the first
half of 2018, versus QR0.80 in the corresponding period of 2017.
UDC’s net income declined by 5.8% in the first half of 2018 to
settle at QR444.7 million, while income from investments and
others increased 25.4% to QR83.8 million. General and
administrative expenses and sales decreased by 6.6% to QR152.3
million. Adding losses on the fair value of financial
investments of QR31.8 million, and the increase of net financing
cost by QR10.5% to QR69.2 million, the result is a decline in
the net profit of 8.3% to QR260.4 million in this period.
6-
Commercial Bank Group’s net profit amounted to QR855 million,
compared to QR180 million for the same period last year, while
the bank’s earnings per share amounted to QR2.11, versus QR0.45
for the same period of 2017. Commercial Bank’s net income from
its activities in the first half of 2018 increased by 3.7% to
QR1832.7 million, but expenses diminished by 33.3% to QR1,066.1
million (this decrease was due to a reduction in loan losses by
half or QR428 million). After adding the share in profits of
other companies worth QR86.5 million, the net profit for this
period multiplied several times to settle at QR855.1 million. In
terms of comprehensive income, there were currency differences
and fair value losses of QR532 million. As a result, the
comprehensive income decreased to QR323 million, compared to
QR332.6 million recorded in the corresponding period of 2017.
7-
Ahli Bank’s net profit amounted to QR353.23 million, compared to
QR342.21 million for the same period last year, while the bank’s
EPS recorded QR1.68 versus QR1.63 for the same period of 2017.
Ahli bank’s total income increased by 3.9% to QR538.1 million.
The bank’s total expenses also increased by 5.2% to QR184.8
million, of which QR87.8 million went to staff expenses and
QR84.4 million for loan losses and investments. Consequently,
the net profit rose by 3.2% to QR353.2 million with a slight
change in the fair value that amounted to QR7.2 million.
8-
Qatar Electricity & Water Company’s (QEWC) net profit amounted to
QR813 million, compared to QR811 million for the same period in
2017, while the company’s earnings per share recorded QR7.39 for
the six months ended 30 June 2018, versus QR7.37 for the same
period last year. QEWC’s revenues generated from sales dropped
by 12.6% to QR1,344.2 million, but its net after-cost revenues
fell by only 1.5% to QR650.9 million due to a large cost
reduction. After adding other income of QR94.6 million to profit
from joint ventures amounting to QR280.1 million, and deducting
general expenses of QR96.1 million and financing costs of
QR102.5 million, the result is a net profit of QR280.1 million,
marginally increased compared to last year.
9-
Qatar International Islamic Bank’s (QIIB) net profit amounted to
QR484 million, compared to QR465 million for the same period
last year, while the bank’s earnings per share recorded QR3.20
in the first half of 2018, versus QR3.07 in the corresponding
period of 2017. QIIB’s total income increased by 14.8%. The
bank’s total expenses increased by 6.63% to QR252.6 million.
Shareholders' share of profits rose by 31.8% to QR270.5 million,
an increase of only 18.5%. As a result, the net profit increased
4% to QR484 million.
10-
The results of
Doha Bank, Al Khaliji, Gulf Warehousing and Islamic Holding were
released later on Thursday. The results varied between a
profit-to-loss as in the case of Investment Holding Company, a
decline in profits as in Doha Bank, and an increase in profits
as in the case of Al Khaliji and GWC.
Economic Developments:
1-
OPEC oil fell by about US $4.42 to the level of US $69.98 per
barrel until 11th of July, compared to US $74.40 per
barrel a week prior.
2-
Dow Jones rose again by about 805 points to the level of 25021
points until closing on Thursday. US dollar stood at $1.16
against the Euro, and against the yen at ¥112.40 per dollar.
Gold declined by about US $20 to US $1223 per ounce.
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