Domestic Funds’ Strong Buying Mitigates Losses in QSE

The Qatar Stock Exchange (QSE) Tuesday opened substantially weak but managed to gain some lost grounds to finally close 72 points lower; mitigated by strong buying support from domestic funds.

The Arab individuals were seen increasingly net profit takers as the 20-stock Qatar Index shed 0.67% to 10,509.82 points, but recovering from an intraday low of 10,408 points.

The local retail investors’ substantially weakened net buying had its influence on the main market, whose year-to-date losses widened to 2.35%.

About 56% of the traded constituents were in the red in the main bourse, whose capitalisation melted QR5.04bn or 0.8% to QR624.48bn mainly on account of small and midcap segments.

The foreign institutions continued to be net sellers but with lesser intensity in the main market, whose trade turnover and volumes were on the decline.

The domestic institutions were increasingly net buyers in the main bourse, which saw 0.05mn exchange traded funds (sponsored by AlRayan Bank and Doha Bank) valued at QR0.26mn trade across 41 deals.

The Gulf individuals’ lower net buying had its marginal effect on the main market, which saw no trading of sovereign bonds.

The Islamic index was seen declining slower than the other indices of the main bourse, which saw no trading of treasury bills.

The Total Return Index shed 0.67%, the All Share Index by 0.72% and the All Islamic Index by 0.05% in the main bourse.

The banks and financial services sector index tanked 1.51%, transport (1.17%), telecom (1.07%) and insurance (0.41%); while consumer goods and services gained 1.28%, industrials (1.04%) and real estate (0.82%).

As many as 21 gained, while 30 declined and three were unchanged.

Major shakers in the main market included Qatar Cinema and Film Distribution, Mosanada Facilities Management, Inma Holding, Ezdan, QLM, QNB, Qatar Islamic Bank, Commercial Bank, Lesha Bank, Qatar German Medical Devices, Meeza, Estithmar Holding, Mazaya Qatar, Vodafone Qatar, Ooredoo and Nakilat.

Nevertheless, Salam International Investment, Mekdam Holding, Barwa, Zad Holding, Woqod, Widam Food, Industries Qatar and Gulf Warehousing were among the gainers in the main bourse. In the venture market, Techno Q saw its shares appreciate in value.

The Arab retail investors’ net selling increased significantly to QR10.59mn against QR0.29mn the previous day.

The local individuals’ net buying weakened substantially to QR25.37mn compared to QR146.3mn on March 2.

The Gulf individual investors’ net buying shrank noticeably to QR0.67mn against QR4.32mn on Monday.

However, the domestic institutions’ net buying grew considerably to QR57.24mn compared to QR9.2mn the previous day.

The Gulf institutions turned net buyers to the tune of QR3.5mn against net sellers of QR0.76mn on March 2.

The foreign individuals were net buyers to the extent of QR2.04mn compared with net sellers of QR5.99mn on Monday.

The foreign institutions’ net profit booking declined drastically to QR78.22mn against QR152.52mn the previous day.

The Arab institutions had no major net exposure compared with net sellers of QR0.25mn on March 2.

The main market saw 22% contraction in trade volumes at 168.03mn shares, 34% in value to QR499.64mn and 49% in deals to 28,716.

In the venture market, a total of 0.1mn equities valued at QR0.19mn changed hands across 22 transactions.