Qatar share index back in the negative terrain

(MENAFN- Gulf Times) Qatar Stock Exchange was back in the negative trajectory on Wednesday and its key index settled below the 11,900 mark, apparently taking cue from the Ministry of Development Planning and Statistics' cut in growth estimates for this year.

Selling pressure from foreign and GCC (Gulf Cooperation Council) institutions as well as local retail investors were instrumental in dragging the 20-stock Qatar Index shed 0.89% to 11,836.95 points amid heighted trade volumes.

Banking and insurance counters bore the maximum selling pressure in the bourse, which is down 3.65% year-to-date.

The index that tracks Shariah-principled stocks was however seen gaining, albeit at lower level, against declines in the other indices in the market, where trading was skewed towards the banking and real estate sectors.

"(The cut) in macro variables will have a downward risk but markets are resilient enough to gauge the sectoral prospects," an analyst wishing anonymity said.

Qatar had on Tuesday cut its growth forecast to 7.3% this year from an earlier estimate of 7.7% and hinted that it could show the first fiscal deficit in 15 years in 2016 itself against the previous forecast of 2017.

Market capitalisation shrank 1.02% or about QR7bn to QR630.29bn with large and mid cap equities melting 1.33% and 0.64%; whereas micro and small caps rose 0.3% and 0.23% respectively.

The Total Return Index fell 0.89% to 18,395.24 points and All Share Index by 0.85% to 3,169.41 points, while Al Rayan Islamic Index was up 0.1% to 4,607.99 points.

Banks and financial services' stocks tanked 1.47%, insurance (1.01%), telecom (0.87%), industrials (0.72%), realty (0.24%) and transport (0.22%); whereas consumer goods gained 0.63%.
About 68% of the traded stocks were in the red with major losers being QNB, Industries Qatar, Doha Bank, Commercial Bank, Islamic Holding Group, Qatar General and Reinsurance, Ooredoo, Aamal Company, Mesaieed Petrochemical Holding, Ezdan ad Milaha.
However, Gulf Warehousing, QIIB, al khaliji, Barwa, Mazaya Qatar, Al Meera and Medicare Group were seen bucking the trend.
Local retail investors turned net sellers to the tune of QR4.78mn against net buyers of QR4.02mn on Tuesday.
The GCC institutions were also net sellers to the extent of QR8.92mn compared with net buyers of QR1.75mn on June 9.
Non-Qatari institutions' net profit booking strengthened to QR41.53mn against QR0.16mn the previous day.
The GCC individual investors' net buying weakened to QR1.72mn compared to QR9.43mn on Tuesday.
However, domestic institutions turned net buyers to the tune of QR39.04mn compared with net sellers of QR8.29mn on June 9.
Non-Qatari individual investors were also net buyers to the extent of QR14.47mn against net sellers of QR6.75mn the previous day.
Total trade volume rose 54% to 6.38mn shares, value by 66% to QR336.53mn and deals by 29% to 4,130.
The insurance sector's trade volume tripled to 0.06mn equities and value more than doubled to QR4.27mn on almost tripled transactions to 65.
The transport sector's trade volume more than doubled to 0.39mn stocks and value also more than doubled to QR18.36mn on 71% jump in deals to 185.
The banks and financial services sector's trade volume more than doubled to 1.8mn shares and value also more than doubled to QR121.87mn on 76% increase in transactions to 1,215.
The market witnessed 53% surge in the consumer goods sector's trade volume to 0.9mn equities and 4% in value to QR46.01mn but on 7% fall in deals to 600.
The real estate sector's trade volume soared 37% to 1.7mn stocks, value by 51% to QR48.53mn and transactions by 54% to 894.
There was 24% expansion in the industrials sector's trade volume to 0.99mn shares, 48% in value to QR84.29mn and 2% in deals to 922.
The telecom sector's trade volume expanded1 12% to 0.55mn equities, value by 47% to QR13.2mn and transactions by 1% to 249.
In the debt market, there was no trading of treasury bills and government bonds.