Strong demand for Islamic stocks despite weak sentiment

The Qatar Stock Exchange has seen strong demand for Islamic stocks, although it has stabilized lower this week.
Despite increased buying interest from Gulf funds, the 20-stock Qatar index fell 0.28% this week, helping Anoud Tech, a subsidiary of Qatar Insurance Company, secure businesses in Europe and in the Caribbean for its ‘Anoud +’ insurance platform.
Individuals in the Gulf and Arab institutions have been seen optimistic amid a general bearish mood this week, which saw Qatar’s three major ports see cargo tonnage nearly tripled and the growth of RORO and cargo handling doubled. business materials in August.
The banking, transport and telecoms counters this week experienced above-average selling pressure, which nevertheless saw the winners outnumber the declines.
Foreign institutions continued to be net buyers but with less intensity this week, which saw a total of 52,826 QATR exchange-traded funds sponsored by Masraf Al Rayan and valued at 131,356 QR across 14 transactions.
Four of the seven sectors were in the spotlight this week, which saw a total of 68,455 Bank of Doha sponsored QETFs valued at QR 739,987 million across 10 transactions.
Market cap saw more than QR 1 billion, or 0.19%, decline to QR 637.78 billion, mostly in micro-capitalization segments this week, which saw industrials, consumer goods and services and banks together constitute about 86% of the total volume of trade.
The Total Return index fell by 0.28% and the All Share index by 0.28%; while the All Islamic index rose 0.23% this week, which saw no trading in sovereign bonds.
The index of banks and financial services fell by 0.82%, transport (0.36%) and telecoms (0.34%); while manufacturers gained 0.83%, real estate (0.68%), insurance (0.14%) and consumer goods and services (0.02%) this week which saw no trading of treasury bills.
The main losers are Ahlibank Qatar, Zad Holding, Qatari Investors Group, Medicare Group, Commercial Bank, QNB, Qatar Islamic Bank, Masraf Al Rayan and Gulf Warehousing this week, which saw overall revenue and volume increase.
However, Investment Holding Group, Al Khaleej Takaful, Qatari German Medical Devices, Mannai Corporation, Widam Food, Dlala, Qatar Oman Investment, Baladna, Gulf International Services, Qatar Industrial Manufacturing, Qamco, Qatar Islamic Insurance, Ezdan, Mazaya Qatar and Vodafone Qatar were among the winners.
The industrial sector accounted for 46% of the total volume of trade, consumer goods and services (23%), banking and financial services (18%), real estate (9%), telecommunications and transport (2% each ) and insurance (1 each).
In value terms, the share of banks and financial services amounts to 38% of the total, manufacturers (33%), consumer goods and services (17%), real estate (5%), telecoms (4% ), transport (3%) and insurance (2%).
Net purchases by foreign funds declined significantly to QR 104.82 million from QR 197.56 million in the week ended August 26.
Net purchases by Arab individuals fell sharply to QR 5.01 million from QR 16.13 million a week ago.
However, the net purchases of Gulf institutions increased significantly to QR 10.27 million from QR 5.13 million the previous week.
Gulf individuals were net buyers of QR 2.4 million versus net sellers of QR 3.33 million in the week ended August 26.
Foreign individuals became net buyers to the tune of QR 1.29 million versus net sellers of QR 1.42 million a week ago.
Arab funds were net buyers to the tune of QRF 0.65 million against no major net exposure the week before.
Net sales of domestic funds weakened significantly to QR 97.44 million from QR 148.55 million in the week ended August 26.
In particular, net profit bookings from Qatari individuals fell to QR 26.99 million from QR 55.25 million a week ago.
Total trade volume increased 10% to 782.21 million shares, value 8% to QR1.97bn and trades less than 1% to 44,177.
The industrial sector’s trade volume soared 30% to 358.2 million shares, the value 31% to QR 645.75, and trades 21% to 13,520.
The telecommunications sector reported a 15% increase in trading volume to 15.41 million shares, 37% in value to QR 76.77 million and 64% in transactions to 3,280.
The trade volume of the consumer goods and services sector jumped 14% to 176.3 million shares, the value by 27% to QR318.74 million and transactions by 19% to 6,466.
However, there was a 43% drop in transport sector trade volume to 14.53 million shares, 46% in value to QR51.44 million and 45% in trades to 1,389.
Insurance sector trade volume fell 25% to 10.29 million shares, value 16% to QR32.06 million, and trades 1% to 787.
The real estate sector saw a 15% contraction in trading volume to 71.73 million shares, 23% in value to 98.25 million QR and 37% in transactions to 3,791.
The trading volume of the banking and financial services sector fell by 6% to 135.74 million shares, its value by 2% to QR746.67 million and transactions by 7% to 14,944.

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