Global fears weigh on QSE sentiments; tank index 182 points, M-cap erodes QR8bn
Reflecting global sentiments over higher-than-expected inflation in the United States and the reimposition of the lockdown in China, the Qatar Stock Exchange on Sunday saw its key index fall 182 points and its capitalization erode QR 8 billion.
Above-average selling pressure, particularly at the bank counter, caused the 20-stock Qatar Index to fall 1.39% to 12,917.54 points, despite hitting an intraday high of 13 013 dots.
About 76% of constituents traded were in the red in the market, whose year-to-date gains were 11.11%.
Gulf institutions were seen as net profit takers on the stock exchange, whose capitalization eroded by 1.06% to QR 724.55 billion, mainly driven by the large and mid-cap segments.
The Islamic index fell more slowly than other indices in the market, where the industrial sector alone accounted for around 56% of total trading volume.
Significantly weakened net purchases by foreign institutions also had their influence on the exchange, which saw a total of 30,930 exchange-traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR 0.21 million change hands. through 14 transactions.
Nevertheless, Arab individuals were seen as net buyers in the market, which saw no sovereign bond trading.
Turnover and total trading volumes were down on the exchange, which saw no trading in Treasuries.
The Total Return Index lost 1.39% to 26,459.32 points, the All Share Index by 1.18% to 4,118.19 points and the Al Rayan Islamic Index (Price) by 1.13% to 2,824, 96 dots.
The banking and financial services sector index fell by 1.51%, industry (1.09%), consumer goods and services (0.69%), transport (0.68%), real estate (0, 6%) and insurance (0.42%); while telecoms gained 0.11%.
Major agitators in the main market included Commercial Bank, Qatar Islamic Bank, Qatar First Bank, Qatar Industrial Manufacturing, Baladna, Doha Bank, Masraf Al Rayan, Qatari German Medical Devices, Qatar Industries, Qamco, Qatari Investors Group, QLM, Ezdan and United Development Company.
In the venture capital market, Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate.
Nevertheless, Gulf International Services, Mannai Corporation, Gulf Warehousing, Qatar National Cement, Widam Food and United Development Company were among the winners in the main market.
Gulf institutions became net sellers of QR 10.52 million against net buyers of QR 22.94 million on June 9.
Net purchases by overseas institutions decreased significantly to QR 19.24 million from QR 51.27 million on the previous trading day.
However, Arab individuals were net buyers at QR 11.13 million compared to net sellers of QR 3.88 million last Thursday.
Qatari individuals became net buyers of QR 4.04 million against net sellers of QR 26.68 million on June 9.
Net purchases by overseas individuals increased slightly to QR 2.49 million from QR 2.09 million on the previous trading day.
Domestic fund net selling weakened significantly to QR 25.83 million from QR 45.33 million last Thursday.
Gulf Individual net profit bookings decreased significantly to QR 0.55 million from QR 0.84 million on June 9.
Arab institutions had no major net exposure against net purchases of QR 0.04 million on the previous trading day.
Total trading volume in the main market fell 20% to 145.97 million shares, value fell 30% to QR 479.65 million, and trades fell 35% to 11,507.
There was a 71% drop in transport sector trading volume to 3.76 million shares, 72% in value to 21.62 million QR and 56% in trades to 630.
The insurance industry’s trading volume fell 69% to 2.12 million shares, value fell 67% to 6.68 million QR and trades fell 80% to 114.
The market saw a 62% contraction in real estate trading volume to 8.67 million shares, 56% in value to 11.97 million QR and 56% in trades to 400.
The trading volume of the banking and financial services sector fell by 38% to 25.11 million shares, the value by 37% to 171.33 million QR and transactions by 31% to 5,307.
The telecom sector reported a contraction of 30% in trading volume to 4.02 million shares, 55% in value to 10 million QR and 66% in trades to 380.
However, trade volume in the consumer goods and services sector climbed 61% to 21.26 million shares and value by 18% to 44.68 million QR, while transactions fell by 29 % to 798.
The industrials sector saw a less than 1% increase in trading volume to 81.02 million shares, but a 3% drop in value to 213.36 million QR and a 20% drop in trades to 3,878.
In the venture capital market, trading volumes fell by 54.05% to 0.34 million shares, value by 50.43% to 2.33 million QR and transactions by 36.25 % to 153.