Telecommunications sector delivers solid gains on global bullish momentum
The telecommunications sector made strong gains on the Qatar Stock Exchange, which maintained the overall bullish momentum this week. Foreign institutions were increasingly inclined to buy net proceeds as the Qatar 20-stock index stood up 0.17% this week, which saw HE Ali bin Ahmed al-Kuwari, Minister of Trade and Industry and Acting Minister of Finance, highlight Qatar’s cautious approach to global debt markets. Five of the seven sectors were in the spotlight this week, which saw the Qatar National Cement bag QR281.4mn contract from the Ministry of Municipality and Environment. Weaker net sales from domestic institutions also helped bolster positive sentiment this week, which saw a total of 266,267 Masraf Al Rayan-sponsored QATR exchange-traded funds, valued at QR 655,415, out of 34 deals. Gulf institutions continued to be net buyers, but with less intensity this week, with a total of 1,157 Doha Bank-sponsored QETFs valued at QR12,126 across four transactions. Market capitalization saw an increase of QR 90 million or 0.14% to QR 624.77 billion, mainly in the small and micro-capitalization segments this week, which saw the industrial, real estate sectors and consumer goods and services together constitute more than 72% of the total volume of trade. The telecoms sector index soars by 7.05%, banks and financial services (0.66%), insurance (0.56%) and transport (0.02%); while real estate fell 2.18%, consumer goods and services (1.03%) and industrials (0.83%) this week, of which around 65% of traded constituents are in the red . The main winners were Ooredoo, Doha Bank, Doha Insurance, Ahlibank Qatar, QNB, Qatar Insurance, Mesaieed Petrochemical Holding and Gulf Warehousing this week, which saw no trading in sovereign bonds. Shakers included Qatar Cinema and Film, Qatari German Medical Devices, Ezdan, Alijarah Holding, QLM, QIIB, Dlala, Qatar Oman Investment, Widam, Baladna, Qatar National Cement, Industries Qatar, Gulf International Services, Qamco, Mazaya Qatar and Qatar Industrial Manufacturing this week that saw no trading in Treasuries. Overall sales and trade volumes were down this week, with the industrial sector accounting for 30% of total trade volume; real estate (23%), consumer goods and services (19%), banks and financial services (16%), telecoms (6%), insurance (3%) and transport (2%) this week that saw the Central Bank of Qatar Governor Sheikh Abdulla bin Saoud al-Thani reiterated the country’s stance on the exchange rate fixed with the dollar. In terms of value, the share of the banking and financial services sector was 30% of the total, manufacturers (26%), real estate (14%), consumer goods and services (12%), telecoms (11 %), insurance (4%) and transport (3%) this week. Net purchases of foreign funds increased significantly to QR 77.29 million from QR 40.51 million in the week ended June 17. Net sales of domestic funds declined significantly to QR 36.6 million from QR 103.7 million the previous week. However, Qatari individuals were QR 26.54 million net sellers against QR 19.89 million net buyers a week ago. Net sales by Arab individuals increased significantly to QR 13.46 million from QR 2.36 million in the week ended June 17. Foreign individuals became net sellers to the tune of QR 13.35 million compared to net buyers of QR 9.25 million the previous week. Gulf individuals were net profit takers of QR 4.55 million against net buyers of QR 4 million a week ago. Arab funds were net sellers by QR 0.01 million from no next major exposure in the week ended June 17. Net purchases by Gulf institutions fell sharply to QR 17.23 million from QR 32.41 million the previous week. Total trading volume fell 20% to 587.19 million shares, value 33% to QR 1.55 billion, and trades 4% to 42,937. There was a 46% drop in transport sector trade volume to 12.17 million shares, 55% in value to QR42.72 million and 31% in trades to 1,640. The industrial sector’s trade volume fell by 34% to 177.53 million shares, the value by 57% to QR 399.74 million, and transactions by 29% 9,609. The banking and financial services sector experienced a contraction of 27% in trading volume to 95.87 million shares, 29% in value to QR472.36 million and 9% in transactions to 12.339. The trade volume of the consumer goods and services sector decreased by 14% to 113.77 million shares, the value by 19% to QR 188.01 million, and transactions by 6% to 4,843. The real estate sector saw a 1% drop in trading volume to 132.65 million shares, but a 4% growth in value to QR 214.28 million and 21% in transactions to 5,793. However, the trade volume of the insurance industry soared 41% to 17.36 million shares, the value by 24% to 63.65 million QR and transactions by 10% to 1,384. The market saw a 26% increase in the volume of trade in the telecommunications sector to 37.84 million shares, 42% in value to 168.22 million QR and 89% in transactions to 7,329.