The Qatar Stock Exchange (QSE) benchmark index stayed in the negative territory in October for the second consecutive month after dropping 5 percent m-o-m in September. The index fell by 2.5 percent before closing the month at 10,172.95 points after reaching the lowest level since July-16 at 10,142.17 points.
The Qatar All Share index also receded by 2.4 percent for the month, as all sectoral indices but one ended the month in the red. The index was pulled down mainly by Consumer Goods & Services index, which went down by 6.5 percent for the month, followed by Real Estate, which went down by 6.0 percent. Banks & Financial Services index receded by a lower 0.4 percent over the same period as earnings among the Qatari banks continue to show varying trends. The only index which went up during the month, albeit marginally was the Telecoms index, which went up by 0.1 percent as gains in the shares of Ooredoo (+1.04%) was partially offset by 3.4 percent decline in shares of Vodafone Qatar, a reading of QSE data by KAMCO Research noted.
Trading activity was also down for the month, as value traded during October decreased by 26.5 percent to reach QR 4.3bn, compared to QR 5.9bn in September. Traded volumes declined by 6.9 percent to reach 122 million shares in October as against 131million shares during the previous month.
Monthly gainers chart was topped by Qatari Investors Group that witnessed a surge of 14.4 percent after reporting an 18 percent increase in 9M-16 net profits. Other gainers included Qatar General Insurance and Reinsurance Co. (+8.9%) and Qatar Navigation (+4.6%), although the latter reported a 21 percent decline in 9M-16 profits, as revenues declined by 13% on the back of weak macroeconomic conditions, although the company’s market share and volumes continue to increase.
KAMCO’s monthly market report noted GCC equity markets got a boost in the monthly trading activity as investor sentiment improved, especially towards the end of the month. The positive sentiment was also reflected in the MSCI GCC Index that surged 3.2 percent. Total value traded in the region increased by 41.4 percent to $22.5bn primarily on the back of a $6.4bn or 57 percent increase in value traded in Saudi Arabia further supported by higher trading activity on Boursa Kuwait and the UAE.
