Bull run continues unabated as QSE gains for fifth week in row

Satyendra Pathak Doha Continuing its gaining trend for the fifth week in a row, the Qatar Stock Exchange (QSE) general index moved up by 69.22 points, or...

Satyendra Pathak Doha Continuing its gaining trend for the fifth week in a row, the Qatar Stock Exchange (QSE) general index moved up by 69.22 points, or 0.63 percent, during the last week, to close at 11,102.66 points.The week saw QSE’s market capitalisation move up by 0.1 percent to QR639 billion as compared to QR638.2 billion at the end of the previous week. The bull run at the QSE is mainly supported by foreign institutions that remained bullish throughout the week. The foreign institutional investors closed the week with a net buying of QR192 million against a net buying of QR328 million in the previous week. Foreign retail investors also remained bullish to close the week with net buying of QR15 million against net buying of QR2 million in the previous week.According to an estimate by QNB Financial Services (QNBFS), foreigners are net buyers of Qatari stocks worth $902.9 million as of Wednesday closing since the start of the current financial year. Qatari institutions, however, remained negative with net selling of QR149 million against net selling of QR170 million in the previous week. Qatari retail investors also remained bearish with net selling of QR59 million against net selling of QR160 million the week before. Trading value during the week declined by 15 percent to QR1.824 billion against QR2.147 billion in the previous trading week.Masraf Al Rayan was the top value traded stock during the week with a total traded value of QR217.5 million.Trading volume dropped by 18.3 percent to 712.7 million shares against 872.1 million shares in the previous trading week. Investment Holding Group was the top volume traded stock during the week with a total traded volume of 155.2 million shares.The number of transactions also declined 2.9 percent to 44,020 against 45,323 in the previous week.Qatar Islamic Bank (QIB), Commercial Bank of Qatar (CBQ) and Masraf Al Rayan were the primary contributors to the weekly index increase. QIB and CBQ added 33.9 and 27.6 points to the index, respectively. Masraf Al Rayan added another 18.9 points to the index.According to a statement published on the QSE website this week, Commercial Bank had mandated Mizuho Bank to lead and arrange $200-250 million. The syndicated loan was aimed at Asian investors and was oversubscribed with the bank retaining up to $450 million in facility amount. The purpose of the facility is to help the bank achieve its general funding and working capital needs.Gains in banking stocks were mainly driven by Qatar’s cabinet decision to approve increase of non-Qatari capital ownership in major banks like QNB, Qatar Islamic Bank, Commercial Bank, Masraf Al Rayan to reach 100 percent.In a tweet following the decision, QSE CEO Rashid Al Mansoori said, “The decision is expected to enhance the country’s economic activity and attract overseas funds in efforts to diversify the economy.”Of the 48 traded companies listed on QSE, 22 closed the week higher. While 24 stocks declined, there was no change in the share price of the remaining two stocks. Qatar Cinema and Film Distribution was the best performing stock for the week, with a gain of 4.6 percent. On the other hand, Investment Holding Group was the worst-performing stock with a decline of 4.7 percent.The week saw three of the seven sector indices close in the positive territory with the transport sector leading the gainers. The transport sector, which gained over 1.5 percent, saw all three of its constituents close make gains during the week.The Qatar Gas Transport Company (Nakilat), which gained over 2 percent, was instrumental to lift the transport sector higher.Meanwhile, the week also witnessed global index provider FTSE Russell announce the inclusion of three QSE-listed firms Baladna, Doha Insurance Group and Qatar Industrial Manufacturing in its microcap category.The changes will be effective on the closing of September 16, 2021. The inclusion of these companies in FTSE Russell index is expected to attract more inflow of foreign funds to Qatar’s market.