US rate hike pause lifts QSE sentiments as index gains 80 points; Islamic equities outperform

Vijay Valecha, Special to the Gulf Times Dec 15, 2023

The softening of the tightening bias in the US rate scenario had its reflection on the Qatar Stock Exchange (QSE), whose key index gained as much as 80 points this week.

The foreign institutions were increasingly net buyers as the 20-stock Qatar Index settled 0.81% higher this week which saw United Development Company receive bid from the Qatar Investment Authority to buy 40% of its stake in Qatar Cool.

"The Fed's statement following the announcement indicates a softening of the tightening bias...Markets were seeking clarity about rate cuts next year and the FOMC (Federal Open Market Committee) did not disappoint, as it signalled a potential Fed pivot," said Vijay Valecha chief investment officer at Century Financial.

The industrials, transport and real estate counters witnessed higher than average demand this week which saw Al Faleh Educational Holding received approval from the Qatar Financial Market Authority to shift its trading to the main market.

The foreign individuals were increasingly bullish this week which saw global credit rating agency Moody’s affirm Commercial Bank’s rating of “A2/Prime-1” with “stable” outlook.
The Arab retail investors turned net buyers this week which saw QIIN ink pact with Mastercard to develop digital channels for international remittances.

As much as 64% of the traded constituents extended gains to investors in the main market this week which saw N-KOM rebrand as Qatar Shipyard Technology Solutions.
The domestic institutions continued to be net buyers but with lesser intensity in the main bourse this week which saw Qatar report a double-digit year-on-year growth in the building permits issued in November 2023.

The Gulf institutions were increasingly into net profit booking in the main market this week which saw contracts worth more than QR1.7bn signed until last November through cooperation with eight international companies and efforts underway to enhance the success of this initiative and support the private sector.

The local retail investors turned bearish in the main bourse this week which saw a total of 0.09mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.2mn trade across 30 deals.

The Gulf individuals were seen increasingly net selling in the main market this week which saw as many as 0.01mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.14mn change hands across eight transactions.

The Islamic index outperformed the other indices in the main bourse this week which saw the industrials and banks together constitute more than 58% of the total trade volume.
Market capitalisation was seen adding QR0.93bn or 0.16% to QR578.32bn on the back of microcap segments this week, which saw no trading of sovereign bonds.

Trade volumes and turnover were on the increase both in the main bourse and venture market this week, which saw no trading of treasury bills.

The Total Return Index rose 0.81%, the All Share Index by 0.27% and the All Islamic Index by 1.59% this week.

The industrials sector index zoomed 1.94%, transport (1.36%) and realty (1.07%), while consumer goods and services declined 1.45%, telecom (0.63%), banks and financial services (0.27%) and insurance (0.23%) this week.

Major gainers in the main market included Beema, Ahlibank Qatar, Milaha, Qatar National Cement, Dukhan Bank, Qatar Islamic Bank, QIIB, Alijarah Holding, Widam Food, Industries Qatar, Salam International Investment, Gulf International Services, Aamal Company, Mesaieed Petrochemical Holding, Qamco and Ezdan. In the venture market, Al Faleh Educational Holding saw its shares appreciate in value.

Nevertheless, Qatar General Insurance and Reinsurance, QNB, Zad Holding, Mekdam Holding, Woqod, Qatari German Medical Devices, Qatar Industrial Manufacturing and Nakilat were among the losers in the main market. In the junior bourse, Mahhar Holding saw its shares depreciate in value this week.

The foreign funds’ net buying increased substantially to QR105.85mn compared to QR30.34mn the week ended December 7.

The foreign individual investors’ net buying expanded drastically to QR28.96mn against QR9.91mn the previous week.

“2024 looks like gold will firm up its safe haven status further. Not that anyone doubted it…”

The Arab individuals turned net buyers to the tune of QR8.16mn compared with net sellers of QR0.41mn a week ago.

However, the Gulf institutions’ net selling increased perceptibly to QR149.66mn against QR143.02mn the week ended December 7.

The local retail investors were net profit takers to the extent of QR3.97mn compared with net buyers QR40.01mn the previous week.
The Gulf individual investors’ net selling strengthened marginally to QR0.62mn against QR0.11mn a week ago.
The domestic institutions’ net buying weakened significantly to QR11.23mn compared to QR63.21mn the week ended December 7.
The Arab institutions had no major net exposure against net buyers to tune of QR0.06mn the previous week.
The main market witnessed a 26% surge in trade volumes to 753.76mn shares, 43% in value to QR2.6bn and deals by 15% to 76,689 this week.
In the venture market, trade volumes shot up 32% to 1.86mn equities, value by 23% to QR1.96mn and transactions by 78% to 251.

Source:

Gulf Times