US-Japan Trade Deal Lifts QSE Sentiments as Index Nears 11,200 Mark; M-Cap Adds QR3.23bn

The US-Japan trade deal had its positive spillover on the Qatar Stock Exchange (QSE), which yesterday inched towards 11,200 points, mainly on the back of strong buying interests from foreign institutions.

The telecom, industrials and banking counters witnessed higher than average demand as the 20-stock Qatar Index gained 0.42% to 11,187.5 points, recovering from an intraday low of 11,085 points.

The Gulf institutions were seen increasingly bullish in the main market, whose year-to-date gains improved further to 5.83%.

More than 67% of the traded constituents extend gains to investors in the main bourse, whose capitalisation added QR3.23bn or 0.49% to QR660.67bn mainly on small and microcap segments.

The foreign retail investors turned net buyers, albeit at lower levels, in the main market, which saw as many as 0.01mn exchange traded funds (sponsored by AlRayan Bank and Doha Bank) valued at QR0.11mn trade across 13 deals.

The domestic funds’ weakened net selling had its influence on the main bourse, whose trade turnover and volumes were on the rise.

The Islamic index was seen gaining slower than the main barometer of the main market, which saw no trading of treasury bills.

The Gulf retail investors continued to be net buyers but with lesser intensity in the main bourse, which saw no trading of sovereign bonds.

The Total Return Index gained 0.42%, the All Islamic Index by 0.41% and the All Share Index by 0.39% in the main market.

The telecom sector index rose 0.8%, industrials (0.49%), banks and financial services (0.45%), real estate (0.36%), consumer goods and services (0.2%) and insurance (0.15%); while transport declined 0.28%.

Major gainers in the main market included Commercial Bank, Ezdan, QIIB, Mazaya Qatar, Baladna, Dukhan Bank, Mekdam Holding, Mesaieed Petrochemical Holding, Al Khaleej Takaful, Ooredoo and Vodafone Qatar.

Nevertheless, Mannai Corporation, Gulf Warehousing, Qatar Islamic Bank, Medicare Group and Nakilat were among the shakers in the main bourse.

In the venture market, Techno Q saw its shares depreciate in value.

The foreign institutions’ net buying increased significantly to QR57.5mn compared to QR8.66mn the previous day.

The Gulf institutions’ net buying strengthened noticeably to QR4.56mn against QR0.66mn on July 22.

The foreign retail investors turned net buyers to the tune of QR0.88mn compared with net sellers of QR0.35mn on Tuesday.

The domestic funds’ net selling weakened marginally to QR18.4mn against QR19.93mn the previous day.

However, the Qatari individuals’ net profit booking rose substantially to QR41.16mn compared to QR2.98mn on July 22.

The Arab individuals were net sellers to the extent of QR3.75mn against net buyers of QR11.36mn on Tuesday.

The Arab institutions’ net profit booking strengthened marginally to QR0.21mn compared to QR0.03mn the previous day.

The Gulf individual investors’ net buying shrank markedly to QR0.62mn against QR2.62mn on July 22.

The main market saw a 17% jump in trade volumes to 207.22mn shares, 16% in value to QR521.81mn and 11% in deals to 21,058.

In the venture market, a total of 0.02mn equities valued at QR0.06mn changed hands across five transactions.