Local retail investors increasingly buy equities on QSE

Local retail investors yesterday increasingly bought equities amidst weakening of the Qatar Stock Exchange.
Although foreign institutions and individuals turned bullish, the 20-stock Qatar Index fell for the fourth day by 0.67% to 9,406.06 points.
Transport and real estate counters witnessed robust demand in the market, whose year-to-date losses were at 9.88%.
Islamic stocks were seen gaining vis-à-vis declines in the other indices on the bourse, which, however, saw increased net profit booking Gulf institutions and individuals and lower buying support from domestic institutions.
Recovering from the initial weakness, the market soon gained strength to touch near 9,500 points within the first 60 minutes but only to see selling pressure grip it for the next 60 minutes to drive the index near 9,400 points. 
Thereafter, slower buying support drove the index for the next 15 minutes but eventually to witness profit booking for the remaining period. Thus, the index settled 64 points lower.
Trade turnover and volumes were on an expansive mode on the bourse, where telecom and banking sectors together accounted for more than 73% of the total volumes.
Market capitalisation fell 0.83% to QR509.94bn despite 0.64% increase in small cap equities.
The Total Return Index fell 0.67% to 15,773.41 points and All Share Index by 0.55% to 2,679.48 points, while Al Rayan Islamic Index was up 0.15% to 3,761.01 points.
The transport and realty indices expanded 0.37% and 0.28% respectively, whereas industrials declined 1.18%, consumer goods (0.87%), insurance (0.81%), banks and financial services (0.63%) and telecom (0.31%).
Major gainers included Vodafone Qatar, Gulf Warehousing, Gulf International Services, Ahli Bank, Masraf Al Rayan, Qatar First Bank, Alijarah Holding, Mazaya Qatar and Ezdan, even as Industries Qatar, QNB, Doha Bank, QIIB, Qatar Electricity and Water, Ooredoo and Qatari German Company for Medical Devices were among the losers.
Local retail investors’ net buying strengthened influentially to QR17.45mn compared to QR9.06mn on Sunday.
Non-Qatari institutions turned net buyers to the tune of QR3.14mn against net sellers of QR13.03mn the previous day.
Non-Qatari retail investors were also net buyers to the extent of QR2.22mn compared with net sellers of QR3.84mn on July 30.
However, the GCC (Gulf Cooperation Council) funds’ net profit booking soared to QR25.44mn against QR3.28mn on Sunday.
Domestic institutions’ net buying weakened significantly to QR3.82mn compared to QR11.3mn the previous day.
The GCC individuals’ net profit booking increased perceptibly to QR1.18mn against QR0.23mn on July 30. 
Total trade volumes almost tripled to 14.59mn shares and value more than doubled to QR295.79mn on 81% jump in deals to 3,825.
The insurance sector’s trade volume grew eight-fold to 0.08mn equities and value by about eight-fold to QR5.67mn on more than quadrupled transactions to 91.
The transport sector’s trade volume rose almost six-fold to 0.35mn stocks and value by more than seven-fold to QR8.4mn on more than quadrupled deals to 290.
The telecom sector’s trade volume jumped almost five-fold to 8.49mn shares and value more than tripled to QR83.38mn on more than five-fold rise in transactions to 770.
The industrials sector’s trade volume more than doubled to 1.63mn equities and value also more than doubled to QR56.17mn on 68% increase in deals to 580.
The real estate sector’s trade volume more than doubled to 1.66mn stocks and value almost tripled to QR29.68mn on more than doubled transactions to 665.
The banks and financial services sector saw 27% surge in trade volume to 2.17mn shares, 73% in value to QR93.66mn and 25% in deals to 1,221.
However, the consumer goods sector’s trade volume tanked 19% to 0.22mn equities, value by 41% to QR18.82mn and transactions by 12% to 208.
In the debt market, there was no trading of treasury bills and government bonds.


Mideast funds’ sentiment towards 
Qatar stocks improves significantly

Managers’ net views on Qatari stocks no longer negative; valuations now better, economic fears have eased; Q2 earnings season has provided more clarity to managers


Reuters
Dubai




Middle East fund managers have become more positive on regional equities and have a balanced view on Qatar, following a drop in valuations and as the shock of the sanctions imposed on Doha eases, a monthly Reuters poll showed.
The poll showed the sentiment significantly improved towards Qatar.
Twenty-three percent of managers now expect to raise their Qatari equity allocations and 23% to reduce them. Last month, the respective figures were 8% and 38%.
Qatar Exchange data show Gulf funds were heavy net sellers of stocks in the weeks after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Doha on June 5 — in part because some feared further sanctions by their governments could eventually prohibit them from holding Qatari equities.
The market’s drop has now made its valuations more attractive — the stock index is 5% below its pre-crisis level — while economic data and corporate earnings have shown the economy is not being seriously damaged by the sanctions.
The poll of 13 leading fund managers, conducted over the past week, found 38% expected to increase their allocations to regional equities over the next three months and none to reduce them.
In last month’s poll, 31% anticipated raising equity allocations and 8% foresaw reducing them.
Second-quarter earnings released by Gulf companies this week, while mixed, have given some managers a clearer view of how economies are coping with low oil prices.
Mohammed Ali Yasin, managing director of NBAD Securities in Abu Dhabi, said medium-term investors now had an opportunity to build positions in companies that had reported good results for the first half of 2017.
“Those companies will also probably prove to be the best dividend distribution candidates, which means the yield return is an additional incentive to buy,” Yasin added. He said his outlook depended on firm oil prices, which hopefully would average around $50 for a barrel of Brent, and an absence of additional negative political events.
The region’s banking sector is the top pick for one manager, who cited improving margins and “optimisation of funding costs” and their ability to make higher cash payouts this year and next.

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