The Group Securities: Weekly Report on QSE Performance, 21 – 25 October 2018

General Index Declines 40 Points to the Level of 10,153 Points

 

 

 

October 21, 2018

In the wake of the decrease in the price of OPEC oil for the third consecutive week to US $ 75 a barrel, the feeble results disclosed by 11 companies – with the exception of Industries Qatar –Islamic Holding turning a loss, and the continued decline in the volume of trading, the shares of 28 companies declined, while the shares price of only 14 companies increased, which led to the failure of the general index to achieve new highs and fall by about 40 points.

In depth, the general index decreased by about 40 points, or 0.40% to the level of 10153 points, while Al Rayan Islamic Index declined by 0.97%. Four sector indices have decreased, led by Communication, Services, Insurance, and Industry. It has been noticed that the share price of Qatar First Bank was the biggest loser, down by 7.77%, followed by Widam by 7.53%, Qatar-Oman by 5.13%, and Dlala by 4.46%, then Khaleej Takaful by 3.64%. In contrast, the share price of Milaha was the top gainer, up by 5.04%, followed by Qatar Cement by 4.4%, and Commercial Bank by 3.10, while QNB achieved an increase of 2.51%, then QIIB by 2.48%.

The total trading volume decreased by 4.35% to the level of QR952.5 million in a week, so the average daily trading volume fell to QR190.5 million. QNB led the traded shares with a volume of QR189.8 million, followed by the share of Industries Qatar with QR90.9 million, Nakilat with QR67.8 million, and then QIB with QR55.3 million. It was noticed that Qatari individuals have dominated the sales with a net of QR140.8 million, while Non-Qatari portfolios made net purchases of QR134.7 million. Qatari Portfolios made total net purchases of QR2.5 million, whereas foreign individual investors made net purchases of QR3.5 million. As a result, QSE’s total capitalization increased by about QR1 billion to reach QR570.1 billion, and the P/E ratio declined to a multiple of 13.61 from last week’s 14.20.

Corporate News:

1-     Industries Qatar (IQ) net profit amounted to QR3.8 billion, compared to QR2.4 billion for the same period last year, while its earnings per share reached QR6.32 in the period ended 30/9/2018, versus QR3.90 for the corresponding period of 2017. IQ’s operating profit for the nine months ended 30/09/2018 increased by 64.5% to QR800 million, while its total expenses decreased by 8.1% to QR173.9 million. After adding a share of the profits of joint ventures worth QR2.92 billion, the result is a net profit of QR3.83 billion, an increase of 62.3%.

 

2-      Mazaya net profit amounted to QR22.14 million, compared to QR17.64 million for the same period last year, while its earnings per share recorded QR0.191, versus QR0.152 for the corresponding period of 2017. Mazaya’s revenues from operations decreased by half to QR29.1 million and has received QR40 million in compensation. Expenses of all types climbed by 29.1% to QR52.3 million, of which QR16.7 million went to general expenditures, while QR35.4 million were spent on finance costs. As a result, the profit increased to QR22.1 million, although QR5.4 million of which was a profit generated from a change in the fair value, which means the real net profit is QR16.7 million and the comprehensive income is QR22.1 million.

 

3-      Qatar Cinema & Film Distribution Company’s net profit amounted to QR6.34 million, compared to QR7.49 million for the same period last year, while its earnings per share reached QR1.01, versus QR1.20 for the corresponding period of 2017. Qatar Cinema’s total operating loss for the nine months ended 30/09/2018 amounted to QR1.51 million, compared to QR 991,000 in the corresponding period, while its rental income recorded QR12.6 million, down by 0.7 million. Expenses, on the other hand, increased by 11.1% to QR7 million resulting in the decrease of the net profit by 16% to QR6.3 million.

 

4-     Qatari Investors Group net profit amounted to QR175.32 million, compared to QR193.25 for the same period last year, while the group’s earnings per share amounted to QR1.41 until the end of the third quarter of 2018, versus QR1.55 recorded in the corresponding period of 2017. Qatari Investors' profit from activity rose by 8.7% to QR295.9 million, while other income and profit amounted to QR7.6 million. On the other hand, expenses also increased by 11.2% to QR73.2 million, and financing expenditures climbed by 52.3% to QR61.7 million. As a result the net profit fell 9.3% to QR175.3 million.

 

5-     Qatar Islamic Insurance Company net profit amounted to QR57.48 million, compared to QR50.14 million for the same period last year, while the company’s earnings per share reached QR3.83 until end of the third quarter of 2018, versus QR3.34 for the corresponding period of 2017. Islamic Insurance total revenues for the nine months ended on 30/09/2018 rose by 17.8% to QR88.6 million, of which 75 million generated from were for the Agency Fees, while total expenses also climbed by 23.9% to QR25.1 million. Resulting in the increase of the net profit by 14.7% to QR57.5 million.

 

6-     Vodafone Qatar net profit amounted to QR75.4 million in the nine months ended 30/09/2018, compared to a net loss of QR227.74 million for the same period last year, while the company’s earnings per share reached QR0.09, versus a loss of QR0.27 for the corresponding period of 2017. Vodafone's revenue in the first nine months of 2018 rose by 4.9% to QR1534.8 million, while its expenses increased by 1.3% to QR1109.2 million. Depreciation and amortization expenses decreased by 44.3% to QR319.2 million, and after deducting the Agency Contract fees of SAR 25.2 million, the company achieved a net profit of QR75.4 million, versus a net loss of QR227.7 million.

 

7-     Islamic Holding Group net loss amounted of QR398.17 thousand, compared to a net profit of QR196.76 thousand for the same period last year, while the company’s loss per share amounted to QR0.07 for the period ended 30/09/2018, versus QR0.03 for the corresponding period of 2017. Islamic Holding’s net operating profit declined by 19% to QR5.5 million, of which QR2.4 million generated from brokerage and commission income, while the company’s expenses fell 11.4% to QR5.94 million. As a result, the company went from profitable to a net loss of QR 398,000 versus a net profit of QR 197,000 and a comprehensive income loss of QR 245,000.

 

8-     Gulf Warehousing Company (GWC) net profit amounted to QR173.91 million, compared to QR157.26 million for the same period last year, while the company’s earnings per share reached QR2.97, versus QR2.68 for the corresponding period of 2017. GWC’s gross profit from the operation of stores increased by 20.1% to QR303.6 million in the first nine months of 2018, in addition to QR10.6 million generated from other income. The company’s total expenses increased by 7.6% to QR82.1 million, and the cost of financing increased by 92.4% to QR58.3 million. As a result, the net profit for this period increased by 10.1% to QR173.2 million.

 

9-     Commercial Bank net profit amounted to QR1.25 billion, compared to QR258.98 million for the same period last year, while the bank’s earnings per share reached QR3.11, versus QR0.65 for the corresponding period of 2017. Commercial Bank's net operating income stood at QR2.66 billion, of which QR1.9 billion was generated from interest, while its expenses fell by 41.4% to QR1.4 billion. As a result, the net profit for this period increased by 386% to QR1.25 billion. It should be noted that there was a significant loss in the fair value, reducing the comprehensive income to QR165.5 million, compared to QR451.7 million recorded in the corresponding period of 2017.

 

10-  Al Khalij Commercial Bank (Al Khaliji) net profit amounted to QR469.40 million in the first nine months of 2018, compared to QR453.56 million for the same period last year, while its earnings per share reached QR1.3, versus QR1.26 for the corresponding period of 2017. Al Khaliji’s net operating income dropped by 4.8% to QR886.9 million in the first nine months, of which QR696.8 million were generated from interest, while the bank’s total expenses fell by 14.7% to QR405.6 million. As a result, the net profit increased by 3.5% to QR469.4 million and comprehensive income climbed to QR530.9 million due to a positive change in the fair value of about QR61.5 million.

 

11-Qatar Insurance Company’s net profit amounted to QR452 million in the first nine months of 2018, compared to QR304 million for the same period last year, while the company’s earnings per share reached QR1.16, versus QR0.95 for the corresponding period of 2017. Qatar Insurance’s gross revenue rose by 38.7% to QR 1,043.7 million in the first nine months of 2018, of which QR378.3 million were generated from insurance and QR615 million from investment, while the company’s total expenses climbed by 28.1% to QR582.9 million. As a result, the net profit hiked by 48.5% to QR451.6 million, and due to fair value losses, the comprehensive income amounted to QR290.3 million, compared to QR74.6 million recorded in the corresponding period of 2017.

 

Financial & Economic Developments:

 

1-      OPEC oil price decreased by about US $4.46 per barrel to the level of US $75.04 per barrel until Wednesday.

 

2-      Dow Jones kept falling during last week until Thursday and lost 765 points to settle at the level of 24651. US dollar stood at $1.14 against the Euro, and at ¥112.11 per dollar. Gold increased by about US $5 to US $1234 per ounce.