DOHA: Weathering a volatile market cycle, Qatari bourse gained 18.36 percent in 2014, outperforming other regional markets. Despite falling oil prices and geopolitical tensions that limited the gains of Qatari stocks, the benchmark index was up 1,906 points to close the year at 12,285.
Market capitalisation rose 21.81 percent, compared to the previous year.
Banks and Financial Services sector; and Insurance stocks were the best performers. Insurance sector surged 69.44 percent, while the banking stocks jumped 31.11 percent. QIB soared by 48 percent, while Masraf Al Rayan gained 41.21 percent. Banking major QNB was up by 23.78 percent.
Vodafone, Gulf International and Barwa Real Estate were the top gainers. Vodafone was up by 53.59 percent.
Gulf International that entered the MSCI index recently, gained 59.18 percent, while Barwa was up by 40.60 percent.
Bellwether Industries Qatar was down by 0.53 percent during the year. Ooredoo slipped by 9.69 percent. MPHC plunged 41 percent.
Trading value during this year increased by 166.13 percent to QR199bn.
The banking sector led the value, accounting for 34.95 percent of the total value, followed by Industrials, real estates and consumer goods and services. The Masraf Al Rayan led trading value during this year , accounting for 9.01 percent of the total trading value, followed by QNB and Barwa Real Estate .
Trading volume increased by 129.15 percent and the number of transactions rose by 114.03 percent to over 2 million transactions as compared to the previous year’s 961,811 transactions. Representing a 33.27 percent of the total trading volume, the real estate sector lifted the volume, followed by Banks and Financial Services; Industrials and Telecoms sector. Thirty-one companies of the 43 listed companies ended this year higher, while 12 fell.
According to market analysts, Qatar was the Gulf’s best-performing market this year. Abu Dhabi rose 5.6 percent. Oman and Kuwait lost 7.2 and 13.4 percent respectively, while Bahrain rose 14.2 percent.
The SICO Investment Bank’s “GCC equities quarterly preview” noted the aggregate fourth quarter 2014 profits of the GCC companies covered by the it are expected to increase 10 percent year-on-year, but decline 9 percent Q-o-Q.
“With the exception of telecom sector, we expect Quarter-over-Quarter earnings to decline across sectors”, the bank said in a note sent to The Peninsula.
Most GCC banks is expected to report YoY decline in provisioning charges, offsetting the impact of lower trading income. UAE banks’ net interest margins (NIMs) will continue to face pressure, while year-on-year fee income growth to continue. Qatari banks are expected to witness lower provisioning charges, while mid-tier banks to continue to report stronger lending.
SICO’s covered Qatari companies include Industries Qatar and Ooredoo; and the banks include QNB, QIB and Commercial Bank.
The Peninsula
