DOHA: Qatar bourse tumbled yesterday on weaker-than expected company earnings, coupled by heavy sell-off by local retail investors ahead of Eid holidays.
The main index sharply edged lower 1.79 percent (236.74 points) to finish at 12,952 point.
Over QR 11bn just vanished from the market yesterday, as the market cap slipped to QR693 from Wednesday’s QR704bn.
Of the 43 listed companies, 30 announced their financial results. Some blue chips delivered really lackluster results. As usual, local retail investors dabbled in profit taking as they need liquidity or cash ahead of Eid holidays. The announcement that Saudi bourse will open up its doors to direct foreign investment is also not good news for Qatari market, analysts said.
“Allowing direct foreign investment in the Saudi stock exchange brings the KSA closer to achieving a status upgrade to ‘Emerging’ market and inclusion in the MSCI Emerging Markets Index. However, its not likely to happen before 2017. Currently, MSCI has not assigned any specific category to Saudi Arabia”, analysts at Global Investment House noted yesterday
Real Estate powerhouses Barwa and Ezdan; Masraf Al Rayan, International Islamic and Vodafone were the among the top losers. Barwa tanked by 9.91 percent and Ezdan fell by 7.41 percent dragging the real estate sector index down 6.11 percent. The banking sector fell by 1.45 percent as Masraf Al Rayan shed 4.63 percent and International Islamic shed 2.58 percent. Except Insurance index, which was marginally up by 0.46 percent, all the sector indices ended in red yesterday.
However, both the value and volume was higher than the previous session. Total traded value rose to QR812mn compared to Wednesday’s QR628 m. total volume rose to over 18 million shares from 14 million shares.
In the past week, the main index fell by 2.50 percent or 331.83 points. The week saw market cap falling by 2.97 percent. The Banks and Financial Services sector led trading value by recording QR957m, followed by real estate (QR923m) and the Industrials (QR656m). Overall, the trading value decreased in the past week by 5.07 percent to QR3.4bn compared to the previous week’s QR3.6bn. Trading volume decreased by 6.14 percent, while the number of transactions rose by 8.22 percent.
The UDC led trading value during the past week accounting for 11.14 percent of the total value, followed by Masraf Al Rayan, which accounted for 10.78 percent. The Barwa ranked third , accounting for 8.73 percent.