By: Eman Ghaly

Mubasher: The Qatar Stock Exchange (QSE) ended 2017 at its lowest level since 2008, pressured by geopolitical factors and the dispute between four Arab nations and Qatar, coinciding with market losses of QAR 91.45 billion.

Over the course of the year, the general index slid 18.33%, or 1,913.39 points, to 8,523.38 points.

In June 2017, four Arab countries led by Saudi Arabia cut their diplomatic and transport ties with Doha.

The general index has trimmed its losses over the last period after declining 25.5% to 7,750 points, financial analyst Ahmed Eid told Mubasher.

Qatari stocks have become “attractive” to all investor segments on the back of hitting around all-time record lows over the past period, Eid added.

Market’s turnover

The QSE’s turnover started 2017 at QAR 560 billion, then declined to QAR 410 billion after the Gulf rift, finishing the year at QAR 472.02 billion with 16.2% decline.

The bourse’s liquidity decreased 3.98% to QAR 66.2 billion in 2017 from QAR 68.9 billion at the beginning of year, while transactions went down 16.4% to 834,300 from 997,500 in the prior year.

The market’s trading volume rose 24.7% to 2.5 billion shares in 2017 from 1.9 billion shares the year before.

Liquidity

The bourse’s liquidity decreased 3.98% to QAR 66.2 billion from QAR 68.9 billion at the beginning of 2017, while transactions went down 16.4% to 834,300 in 2017 from 997,500 in the prior year.

Moreover, the market’s trade volume rose 24.7% to 2.5 billion shares in 2017 from 1.9 billion shares the year before.

Top performers

The banking sector topped the QSE’s gainers in terms of turnover with a 40.2%, followed by the industrial, real estate and telecommunications sectors which registered 16.9%, 13.9% and 10.1%, respectively.

Qatar National Bank’s (QNB) stock posted the QSE’s highest turnover in 2017 with 13.3%, followed by Masraf Al Rayan with 7.3% and Vodafone Qatar with 6.8%.

Meanwhile, Medicare Qatar led four risers after acquiring 11.05%, while Gulf International Services headed 41 decliners losing 43.09%.

Fourth quarter

The general index increased 2.54% to 8,523.38 points in the fourth quarter of 2017 from 8,312.43 points in the September quarter.

Six sector boosted the general index, topped by the real estate sector with 8.31%, the telecommunications sector with 6.8%, the insurance sector with 3.69% and the banking sector with 3.05%.

The industrial sector and the transportation sectors levelled up 2.29% and 1.78%, respectively in the three-month period ended 31 December, while the goods sector was the only decliner with 2.63%.

 

New Year’s forecasts

Eid said that the Qatari bourse has taken in all negative factors in the previous year that in return would stimulate investors.

The general index eyes moving between resistance at 8,600 and 9,000 points, and support at 8,340 points, the analyst expected.

The QSE’s blue chips, which comprise QNB, Masraf Al Rayan, Qatar Industrial Manufacturing, and Masraf Al Rayan, will lead the market’s hikes in the coming period, as they make up 51% of the market’s relative weight.

The surge of some small-cap stocks such as the Medicare Group and the Investors will push up the general index, according to the analyst.

The banking, the industrial and the real estate sectors will bolster the bourse, Eid said, forecast companies to announce robust financial results and dividends.

The general index’s 5% increase over the next period will support the turnover to reach QAR 500 billion, Eid noted.

Translated by: Kholoud Mohamed Hussein