The Group Securities: Weekly Report on QSE Performance, 9-13 September 2018

General Index Exceeds the Level of 10,000 Points

September 16, 2018

Although they remained below QR1 billion, Qatar Stock Exchange’s trading volumes climbed back following the recovery of oil prices, and reached QR958.3 million in a week, a daily average of QR191.7 million. This had a positive impact on the share prices leading to an increase in the shares of 28 companies, headed by Mannai and Milaha. However, the shares of 14 companies declined, led by Doha Insurance. All seven sector indices increased, especially transportation. As a result, the general index rose by nearly 2%, and managed to exceed the level of ten thousand points.

In depth, the general index increased by about 195 points or 1.99%, to the level of 10,022 points, while Al Rayan Islamic Index rose by 1.97%. All sector indices have increased, namely Transportation, Services and Industry. It has been noticed that the share price of Mannai was the top gainer, up by 14.48%; followed by Milaha by 7.87%, QIMC by 6.25%, and UDC by 4.26%, then Al Rayan by 4.16%. In contrast, the share price of Doha Insurance was the biggest loser, down by 6.53%, followed by Qatar First Bank by 2.82%, Islamic Insurance and General insurance by 2% each, then Alkhaleej Takaful by 1%.

The total trading volume increased by 56.2% to the level of QR958.3 million in a week, so the average daily trading volume climbed to QR191.7 million. QNB led the traded shares with a volume of QR210.8 million, followed by the share of Industries Qatar with QR87.5 million, QIB with QR68.5 million, and Al Rayan with QR63.9 million. It was noticed that Qatari portfolios made net sales of QR131.6 million, while Non-Qatari portfolios dominated the net purchases by QR243 million. Qatari individuals made total net sales of QR108.1 million, whereas foreign individual investors made net sales of QR3.3 million. As a result, QSE’s total capitalization rose by QR10.3 billion to reach QR553.9 billion, and the P/E ratio climbed to a multiple of 13.94 from last week’s 13.68.

Corporate News:

1-      It has been decided that the shares of Mesaieed Petrochemical Holding, Qatar Fuel and Qatar Insurance will replace Al Meera Consumer Goods Company, Investment Holding Group and Qatari Investors Group in the QE Index, as of 1st of October 2018.

2-      Qatar First Bank disclosed that one its subsidiaries signed a conditional sale agreement to sell all its shares in a Turkish company. The bank explained that its subsidiary has completed the sale and transfer of all its owned shares to the buyer. The deal was consummated at a valuation of US $30 million which is very close to QFB’s book value. It should be noted that the purchase price will be paid on a deferred basis. It should also be noted that the size of the transaction doesn’t represent more than 10% of the bank’s total assets.

3-      Al Meera Consumer Goods Company has signed a contract with Qatar Rail to operate a number of convenience stores in the red and green lines in Doha Metro.

4-      CEO of Qatar Fuel (Woqod) said that, the company has recently floated tenders for the construction of 4 fuel stations on the Orbital Highway and the new truck road connecting Mesaieed, Hamad Port, Dukhan, Lusail and Al- Khor. He added that the company has opened and operated 8 stations during the past months of this year 2018. The construction work is underway for another 26 permanent and mobile stations, most of which will be opened by the end of this year.

5-      Qatar Industrial Manufacturing Co. (QIMC) announced that it has signed a memorandum of understanding with a German consulting firm specialized in providing technical and advisory services to the glass industry worldwide.

6-      Moody's stops its evaluation of Ezdan Holding Group.

Economic Developments:

1-      Inflation increased to 0.6% in August, from 0.2% recorded in the previous month of July.

2-      Oil prices rose more than 2% on Tuesday as Iranian crude exports suffered U.S. sanctions and after U.S. crude oil production was forecast to grow at a slower rate than previously expected, prompting supply concerns. OPEC oil increased by about US $1.98 to the level of US $77.16 per barrel until Wednesday 12 September. Qatar Petroleum announced that the prices of Qatar oils for the month of August have declined to the level of US $74 per barrel, versus US $75.25 during the month of July.

3-      Dow Jones increased by about 173 points until closing on Thursday to the level of 26183 points. US dollar stood at $1.17 against the Euro, and climbed against the yen at ¥111.84 per dollar. Gold gained about US $1 to climb up to the level of US $1211 per ounce.

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