Rashid Al Mansouri, CEO of Qatar Exchange.
DOHA: A correction pushed Qatari stocks down yesterday, with stock analysts suggesting that the successful completion of the equity offer of Mesaieed Petrochemical Holding Company (MPHC) a day earlier also acted as a dampener.
Trading wasn’t as upbeat the entire past trading week that way as in the previous weeks, as Qatar’s main index shed some 183 points in the week — 88 of those in yesterday’s trading itself.
The index loss worked out to 1.61 in percentage terms. The index closed at 11,155.73 points at the end of trading yesterday.
Prominent stock analyst, Bashir Al Kahlout, described yesterday’s index loss as indicative of a correction. Stock prices have been high in recent weeks so investors booked profits, said Al Kahlout. He said he sees the corrective spell to continue until the index has shed more than 400 points, sliding below the 11,000-mark, to 10,700.
Not many deals were concluded on the exchange yesterday as in the previous days, he added, hinting that the completion of MPHC’s initial public offering (IPO) on Wednesday was also a factor behind the index loss.
The trading value in the week that ended yesterday, in fact, showed a marginal 0.76 percent gain, to a little over QR2.32bn, as against QR2.3bn the previous week.
But volumes suffered as they declined 12 percent in the week to 42.64 million, as against 48.34 million shares the previous week.
The number of deals concluded on the bourse (Qatar Exchange) also fell. The fall was by 5.6 percent, with the total being a little more than 24,000 as compared to 25,500 the previous week.
The market capitalization that almost touched a record QR600bn the previous week (QR598.49bn, to be exact) slid slightly (by 1.53 percent) to QR589.35bn on Thursday.
Banking and financial services sector led both in terms of trading value and volumes, while Industries Qatar (IQ) emerged on top, accounting for nearly a third of total transactions in the week.
Meanwhile, the CEO of Qatar Exchange, Rashid Al Mansouri, attributed the surge of the Qatari stocks in the previous weeks and the index zooming past 11,000 points, to the IPO of MPHC.
“The bourse is all set to list the shares of the company,” Al Mansouri was quoted as saying by Al Sharq. The MPHC will be the 43rd company to be listed on the Qatari bourse and the new listing comes after three years. “The listing will have an immensely positive impact on the bourse,” he said.