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Doha: After two blistering weeks of fierce sell-off, Qatar stock market regained a solid 4.21percent in the past week, thanks to the market intervention.
The week witnessed QSE benchmark index rallying three straight sessions, after the Supreme Committee for Crisis Management announced a massive stimulus package on Sunday. The market closed the week flat on Thursday at 8,576.59points. QSE is 17.73 percent down year-to-date.
The Banking and Financial Services sector, which tanked 12.38 percent in the previous week, rebounded 8.75 percent in the past week. Real estate regained 1.16 percent from the sharp 9.42 percent fall in the previous week and Telecom regained 10.47 percent from the previous week’s 18.71 percent plunge and Transportation sector gained 7.39 percent from 8.50 percent decline. QNB advanced 14.06 percent compared with the previous week.
The Banks and Financial Services sector led the trading value, accounting for 52.06 percent, followed by Industrial sector (14.35 percent) and Real Estate sector (11.98 percent). QNB led the trading value accounting for 22.35 percent of the total value, followed by Masraf Al Rayan (12.64 percent) and Commercial Bank (6.79 percent). Total trading value increased by 13.91 percent to QR2.34bn from the previous week’s QR2.06bn. Trading volume was decreased by 5.23 percent to QR852m, from QR899m, while number of transactions jumped by 15.40 percent to reach 54,623.
Market capitalization rose by 6.05 percent to QR489bn.
In terms of trading volume, real estate sector led the pack, accounting for 35.17 percent, followed by Banking and Financial Services sector (23.86 percent) and Industrial sector (16.65 percent). Of the total listed companies, 25 ended higher in the past week, while 20 fell and two companies remained unchanged.
Analysts expect GCC equity markets to remain volatile in near term and prefer defensive sectors with relatively inelastic demand for their products and services. Kamco Invest’s analysts noted that their most preferred defensive sectors are Utilities, Telecoms and Consumers.
GCC market sell-off over the past two weeks was mainly due to the oil market logjam. “The 25 percent decline in the oil prices came as a double blow for the oil exporters in the region as the growth in the oil production comes at a time when world oil demand is under severe pressure due to COVID-19”, Kamco Invest noted in its latest ‘GCC Equity Market Outlook’.
