Attractive valuations on Monday attracted foreign institutions to the Qatar Stock Exchange, whose key index shot up more than 117 points to surpass the record high of 10,800 levels.
An across the board buying – particularly in the transport, telecom and banking counters – lifted the 20-stock Qatar Index by 1.09% to 10,842.99 points, having recovered from an intraday low of 10,703 points.
The bullish outlook of the Gulf funds was extending support to the market, which is up 3.9% year-to-date.
“The QSE concluded the year 2020 with a positive performance and we started the new year with a positive and excellent performance, since its inception, hoping that it will be a good year for all,” QSE chief executive Rashid bin Ali al-Mansoori said.
More than 53% of the traded constituents returned gains in the bourse, whose capitalisation saw more than QR5bn, or 0.89%, increase to QR625.61bn, mainly on mid and small cap segments.
"The index fulfilled the target level at 10,810 points, while a sustainable close above this is needed to gain further confidence and call for a gradual increase to the next strong layer at 11,400 points," Kamco Invest said in its analysis note.
On the negative side, no signs of reversal have been spotted on the weekly chart but a fall below the support level at 10,400 points would trigger some technical correction to 10,080 points and maybe lower to 9,850 points, it said.
Trade turnover grew amidst lower volumes in the market, where the banking and industrials sectors together accounted for more than 51% of the total trading volume.
Islamic equities were seen gaining slower than the other indices in the bourse, which saw local retail investors increasingly book profits and domestic funds turn bearish.
A total of 16,000 exchange traded funds (Masraf Al Rayan-sponsored QATR and Doha Bank-sponsored QETF) valued at QR71,208 changed hands across three deals; while in the debt market, there was no trading of sovereign bonds and treasury bills.
The Total Return Index gained 1.09% to 20,845.3 points, the Al Rayan Islamic Index (Price) by 0.69% to 2,446.32 points and the All Share Index by 1.04% to 3,330.27 points.
The transport index shot up 3.21%, telecom (2%), banks and financial services (1.03%), industrials (0.81%), real estate (0.6%), insurance (0.56%) and consumer goods and services (0.06%).
Major gainers included Nakilat, Milaha, Qatar Islamic Insurance, Al Khaliji, Ooredoo, QNB, QIIB, Medicare Group, Industries Qatar, Mesaieed Petrochemical Holding, Barwa and Vodafone Qatar; even as Ezdan, Investing Holding Group, Mazaya Qatar and Baladna were among the decliners.
Foreign funds’ net buying increased substantially to QR166.17mn against QR69.09mn the previous day.
Gulf funds turned net buyers to the tune of QR14.06mn compared with net sellers of QR35.58mn on Sunday.
However, local retail investors’ net selling rose considerably to QR109.81mn against QR67.95mn on January 10.
Domestic funds were net sellers to the extent of QR33.67mn compared with net buyers of QR23.43mn the previous day.
Arab individuals turned net sellers to the tune of QR20.14mn against net buyers of QR6.93mn on Sunday.
Foreign individuals were net sellers to the extent of QR15.48mn compared with net buyers of QR3.21mn on January 10.
Gulf individuals turned net profit takers to the tune of QR1mn against net buyers of QR0.88mn the previous day.
Arab institutions were seen net sellers to the extent of QR0.2mn compared with no major exposure on Sunday.
Total trade volume fell 6% to 186.96mn shares, while value rose 14% to QR590.71mn and transactions by 46% to 13,747.
The banks and financial services sector’s trade volume plummeted 38% to 50.81mn equities, whereas value grew 4% to QR262.29mn and deals by 54% to 5,664.
The market witnessed a 37% plunge in the consumer goods and services sector’s trade volume to 18.67mn stocks, 35% in value to QR50.36mn and 10% in transactions to 964.
The insurance sector’s trade volume almost quadrupled to 9.2mn shares and value also almost quadrupled to QR23.98mn on a 36% increase in deals to 276.
The realty sector reported a 67% surge in trade volume to 36.92mn equities, 87% in value to QR69.3mn and 81% in transactions to 1,989.
The transport sector’s trade volume shot up 52% to 14.07mn stocks, value by 42% to QR70.26mn and deals by 49% to 1,380.
There was an 8% expansion in the industrials sector’s trade volume to 48.55mn shares, 32% in value to QR78.99mn and 28% in transactions to 1,992.
The telecom sector’s trade volume was up 5% to 8.74mn equities, value by 5% to QR35.52mn and deals by 66% to 1,482.
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