Gulf Times - 11/5/2006

Bears once again tightened their grip yesterday on the Doha Securities Market (DSM) as the index shed 181 points to close at 8,314.21 points. Despite buying interest in the insurance stocks, the Qatar Stock Index crept steadily towards a year’s low.

With industry, banks and services counters playing the spoilsport, the 20-stock weighted benchmark QSI contracted by 2.12% against the previous close of 8,494.39 points, amidst increasing trading activities in terms of volumes and values.

Market wealth eroded by QR4bn and breadth hung towards declines.

Trading volumes rose by 17%, while values surged by 23% and the number of transactions were up by 24%.

The insurance sector alone outperformed the benchmark as its index expanded by 1.41%, while the indices of industry, banks and services sectors tapered by 2.91%, 2.23% and 2.17% respectively.

Of the 33 listed companies, only five saw value appreciation, while 19 fell and four were unchanged.

Of the six-listed banks, one gained, while only one of the five insurance companies added value. Among the six industries, only one saw its shares rise, while in the case of 16 services companies, only three rose.

Opening a bit strong against the previous close of 8,314.21 points, the index, however, was rather on a free downward ride with no signs of spikes in the entire 150-minute trading.

This is certainly not a panic movement, analysts said, adding there is much more than what is visible, indicating rumour mongering in the market.

Market capitalisation (M-cap) eroded to QR236.59bn compared with the previous day’s level of QR241.22bn. About 5.81mn stocks worth QR323.09mn changed hands across 5,531 deals.

Major gainers were Qatar Insurance (+QR4.1 to 123.1), Salam International Investments (+QR1 to 22.1), Untied Development Company (+QR0.9 to 45.9), Medicare Group (+QR0.5 to 22.9) and Barwa (+QR0.4 to 28.3).

Active stocks were Barwa (1.6mn shares traded), Nakilat (1.01mn), UDC (655,326), Salam International Investments (555,552), Qatar Islamic Bank (318,901), Industries Qatar (301,968), National Leasing Company (271,879) and Medicare Group (176,416).