The substantial sale of national funds dampens sentiment; M-cap erodes 20 billion QR


Ahead of the Eid al-Fitr holiday, the Qatar Stock Exchange (QSE) recorded strong profits, particularly from domestic funds, causing its key index to plunge 460 points and its capitalization to erode 20 billion. of QR this week.
Imminent U.S. interest rate hikes and a weak global economic outlook have impacted Gulf shores, including the QSE, whose key barometer fell 3.28% this week, which saw companies listed companies report a 26.43% year-on-year increase in their net profit to QR 10.72 billion in the first quarter (Q1) of 2022.
Gulf institutions also became net sellers this week, which saw Qatar Insurance Group considering a merger with Oman’s Vision Insurance.
The Islamic benchmark index fell faster than other indexes this week, leading Industries Qatar (IQ) to report a net profit of QR 2.71 billion in the first quarter of 2022.
Industrials saw above-average selling pressure this week, leading Qamco to report a net profit of QR 239.6 million in the first quarter of 2022.
Foreign individuals were seen as net profit takers this week, leading Ooredoo to post a net profit of QR 659.12 million in January-March 2022.
Arab funds turned net sellers, albeit at lower levels, this week which saw Doha Bank record a net profit of QR 401.45 million in the first quarter of 2022.
Local retail investors continued to be net sellers, but with less vigor this week, which saw Gulf International Services’ first quarter net profit at QR 83.3 million.
More than 63% of the components traded on the main market were in the red this week, which saw the Aamal company report a net profit of QR 73.62 million in the first quarter of 2022.
Gulf individuals were however increasingly seen in net purchases this week, which saw Masraf Al Rayan report a net profit of QR 501 million in the first quarter of 2022.
Six of the seven sectors were rocked by selling pressure this week, which saw a total of 366,945 Doha Bank-sponsored QETF exchange-traded funds, valued at QR 4.94 million, change hands across 120 transactions.
The venture capital market saw frantic trading this week, which saw up to 1.72 million QATR sponsored by Masraf Al Rayan worth 5.28 million QR traded across 212 trades.
Market capitalization was seen eroding over QR 20 billion or 2.6% to QR 760.72 billion this week, mainly in the large and mid cap segments this week, which saw Industrials, banking and consumer goods together constitute more than 86% of the volume of trade.
The Total Return Index fell 2.92%, the All Share Index 2.4% and the All Islamic Index 3.89% this week, which saw total trading volumes and value in an expansive fashion.
The industrial sectors index plunged 5.89%, transport (2.76%), real estate (2.41%), consumer goods and services (1.92%), banks and financial services (1.38 %) and insurance (0.37%); while telecoms gained 3.73% this week, which saw no trading in sovereign bonds and treasuries.
The main losers in the main market were Mannai Corporation, Investment Holding Group, IQ, Baladna, Qatar Islamic Bank, QIIB, Masraf Al Rayan, Qatari German Medical Devices, Salam International Investment, Woqod, Qatar Electricity and Water, Qatar National Cement, Qamco , Mesaieed Petrochemical Holding, Barwa and Milaha.
In the venture capital market, Mekdam Holding saw its shares depreciate this week.
Nevertheless, Inma Holding, Ooredoo, QLM, Medicare Group, Qatar First Bank, Commercial Bank and Vodafone Qatar were among the winners on the main market, while on the junior exchange it was Al Faleh Educational Holding.
In the main market, the consumer goods and services sector accounted for 30% of total trade volume, industrials (29%), banks and financial services (27%), real estate (8%), telecoms ( 3%), transport (2%) and insurance (1%) this week.
In value terms, the share of banks and the financial sector was 48%, industries (31%), consumer goods and services (13%), real estate and telecommunications (3% each), transport (2 %) and insurance (1%). this week.
The domestic funds net profit booking increased significantly to QR 516.26 million from QR 267.16 million in the week ended April 21.
Gulf funds became net sellers at QR 28.72 million compared to net buyers of QR 40.2 million the previous week.
Overseas individuals were net sellers at QR 7.62 million compared to net buyers of QR 6.94 million a week ago.
Arab funds became net sellers at QR 0.64 million against net buyers of QR 0.5 million in the week ended April 21.
However, net purchases by foreign funds increased sharply to QR 576.43 million from QR 308.36 million the previous week.
Net purchases by Gulf individuals strengthened significantly to QR 17.66 million from QR 3.54 million a week ago.
Arab individuals became net buyers of QR 11.69 million against net sellers of QR 4.49 million in the week ended April 21.
Qatari retail net profit bookings fell significantly to QR 52.53 million from QR 87.9 million the previous week.
Total trading volume in the main market increased by 13% to 906.72 million shares, value by 20% to 3.59 billion QR and trades by 17% to 84,339.
Telecom sector trading volume soared 68% to 23.25 million shares and value doubled to QR 92.18 million on trades more than doubled to 4,101.
The consumer goods and services sector reported a 40% increase in trading volume to 274.22 million shares, 32% in value to 476.31 million QR and 22% in trades to 8,748.
The trading volume of the banking and financial services sector jumped 18% to 241.91 million shares, a value of 24% to 1.71 billion QR and transactions of 16% to 40,997.
The market saw a 3% jump in industrial sector trading volume to 267.02 million shares, 18% in value to QR 1.09 billion and 22% in trades to 22,941.
However, the trading volume of the real estate sector fell by 23% to 70.15 million shares, the value by 33% to 107.53 million QR and transactions by 8% to 3,841.
There was a 15% drop in transport sector trading volume to 18.98 million shares, 26% in value to 79.35 million QR and 26% in trades to 2,905.
The insurance sector’s trading volume fell 15% to 11.13 million shares, the value fell 33% to 29.66 million QR and trades fell 25% to 806.
In the venture capital market, trading volumes more than doubled to 1.07 million shares and value more than doubled to QR 7.61 million on trades more than doubled to 488.

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