By Basher Kahlout
The week witnessed the disclosure of 14 listed companies of their results for the nine months, which showed a decline in the profits of Industries Qatar (IQ), Qatar Islamic Bank (QIB), Doha Insurance and QCFS. Doha Bank and National Cement (QNCD) showed stability in their profits.
Eight companies recorded an increase in profits, notably Qatar Insurance and Gulf International, Medicare (MCGS) and Salam International (SIIS), as General Insurance showed big jump in its profits due to the increase in fair value of investment in real estates.
The week also witnessed some other news including signing an agreement to expand the cement plant, which is owned by the Investors Group, and the successful issuance of bonds worth $1.5bn by QNB, and Nakilat (QGTS), which won contracts to build ships and to operate them.
By the end of the week, the Qatar Exchange index fell below support barrier of 9,700 points to 9652.4. The index dropped to 71.7 points or 0.73 percent to reach 9652.4 points. The all-share indices decreased 22.6 points or 0.92 percent to 2,423 points.
The drop of main index and the indices of all-shares resulted from low prices of share indices of three main sectors. The banking and the financial sector index dropped by 2.42 percent and the Consumer Goods and Services sector declined by 0.46 percent.
In contrast, the insurance sector rose by 1.91 percent and the real estate sector was up by 0.88 percent. While the transportation sector gained 0.49 percent, the telecommunications sector rose by 0.09 percent.
The decline of the indicators in general, was outcome of the low prices of shares of 23 companies, against the rise in prices of 18 firms. Ezdan share prices remained stable without change.
The Qatar Cinema share price showed the highest decrease by 9.98 percent, followed by Qatar German Co Medical by 5.61percent. QNB dropped by 5.33 percent and Widam Company slipped 4.87 percent. In contrast, share price of General Insurance showed the highest increase by 3.83 percent, followed by Barwa, up 3.29 percent. Qatar Navigation rose by 3.15 percent and Qatar Insurance gained 2.31 percent.
Concerning liquidity, the total trading volume increased by 41.6 percent to QR1.5bn, and the daily trading average increased to QR300.4m compared to QR212.2m in the previous week.
The total trading of the shares of top six firms reached about QR826m, which is 55 percent of the total. The shares of Industries Group topped the trading by QR253.7m, followed Barwa, Medicare, QNB. Commercial Bank and UDC.
The market capitalisation dropped by QR6bn to QR522.5bn. Qatar portfolio sold net stocks worth QR70.8m, and non-Qatari portfolio sold stocks worth QR40.8m. Foreign investors bought stocks for a total of QR85.6m against Qatari individuals’ total buying of QR26.1m.
In general, the performance of the stock has continued to decline for the second week in a row with exception of trading volumes. The strong results of several companies in the third quarter did not help lift the benchmark index.