Masraf Al Rayan and Al Khaliji, who received approval from the financial regulator for the merger, made modest gains on Wednesday on the Qatar Stock Exchange, which otherwise entered the second day of a downtrend.
Despite the bullish outlook for retail investors and increased net purchases by Gulf institutions, the Qatar 20-stock index fell 11 points or 0.1% to 10,782.18 points, after hitting an intraday high of 10. 802 points.
Foreign establishments remained net buyers, but with less vigor in the market, whose cumulative gains were contained at 3.32%.
Telecommunications, transportation, banking and industry meters experienced above-average selling pressure on the exchange, whose capitalization fell by around QR2 billion or 0.25% to 627, 07 QR, mainly due to the small and micro-capitalization segments.
More than 57% of the traded components were in the red in the market, which saw the industrial and banking sectors together constitute more than 57% of the total volume of trade.
Overall turnover and trading volumes were increasing on the exchange, where Islamic stocks were seen to decline more slowly than other indexes.
Arab funds continued to have no major net exposure to the market, which saw a total of 407,181 exchange-traded funds (QATR sponsored by Masraf Al Rayan and QETF sponsored by Bank of Doha) valued at 1.85 million QR changed hands in 42 transactions; while in the debt market there was no trading of sovereign bonds and treasury bills.
The total return index fell 0.1% to 21,343.97 points, the All Share index fell 0.22% to 3,422.6 points and the Islamic Al Rayan index (price) fell 0.09 % at 2,493.67 points.
The telecoms sector index fell 0.81%, transport (0.52%), banks and financial services (0.27%) and manufacturers (0.19%). while consumer goods and services gained 0.26% and real estate (0.12%). The insurance index followed a flat course.
The main losers are Vodafone Qatar, Doha Bank, Qatar General Insurance and Reinsurance, Investment Holding Group, Qamco, Qatar National Cement, Gulf International Services and Milaha; although Al Khaleej Takaful, Qatari Investors Group, Mannai Corporation, Zad Holding, Medicare Group, Al Khaliji and Masraf Al Rayan were among the winners.
Net sales of domestic funds increased significantly to reach QR 41.83 million from QR 20.34 million on June 15.
Net purchases of foreign funds fell sharply to QR 21.03 million from QR 28.07 million the previous day.
However, net purchases of Gulf funds rose significantly to QR 8.93 million from QR 6.3 million on Tuesday.
Arab individuals were net buyers of QR 4.57 million against a net seller of QR 1.69 million on June 15.
Foreign individuals became net buyers to the tune of QR 3.79 million against net sellers of QR 3.28 million the day before.
Qatari individuals were net buyers of QR 2.75 million against net sellers of QR 9.02 million on Tuesday.
Gulf individuals became net buyers at QR 0.76 million against net profit takers of QR 0.05 million on June 15.
Total trade volume increased 85% to 154.19 million shares, value 98% to QR416.75 million, and trades 50% to 10,202.
Insurance sector trade volume increased more than seven times to 5.55 million shares and the value also more than seven times to QR 23.87 million on transactions nearly quadrupled to 522 .
The telecommunications sector’s trade volume more than tripled to 9.93 million shares and the value also more than tripled to QR 44.27 million on deals nearly doubled to 1,232.
The industrial sector’s trade volume more than doubled to 53.68 million shares and the value also more than doubled to QR 129.09 million with trades surging 64% to 2,810.
The trading volume of the banking and financial services sector more than doubled to 34.45 million shares and the value also more than doubled to reach QR 139.06 million with a 63% expansion of transactions to 3,567.
The market saw a 54% increase in trade volume in the consumer goods and services sector to 26.11 million shares, 46% in value to QR37.45 million and 6% in transactions to 877.
The transport sector’s trade volume jumped 40% to 2.97 million shares, value 57% to QR 11.4 million, and transactions 5% to 436.
There was a 14% jump in real estate trading volume to 21.49 million shares and 12% in value to QR31.6 million, but a 16% drop in transactions to 758.