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Qatari stocks extend gains, QSE up 1.12%

Qatari stocks extend 
gains, QSE up 1.12%

Satyendra Pathak
Extending gains from the previous session, Qatar stocks ended sharply up after a broad-based rally on Tuesday.
The Qatar Stock Exchange (QSE) main index gained 105.75 points, or 1.12 percent, to close at 9,523.63 points on the back of a 5.3 percent jump in petrochemical maker Industries Qatar. Qatar Fuel (Woqod), which went up 3 percent, also played a vital role in lifting the main index higher.
The volume of shares traded increased to 310.326 million from 244.595 million on Monday and the value of shares increased to QR556.505 million from QR430.922 million in the previous session.
Six out of seven sector indices closed in the positive territory on the day that saw the bourse’s market capitalisation rise by QR5 billion to QR555.142 billion.
The industrial sector, which gained 2.67 percent, was the best performing sector index for the day.
The All Share Consumer Goods and Services Index gained 1.9 percent to provide a vital support to the index.
The QSE Total Return Index gained 1.12 percent to close at 18,308.86 points. QSE Al Rayan Islamic Index increased 1.47 percent to close at 3,881.15 points. QSE All Share Index also added 0.81 percent to close at 2,966.63 points.
Meanwhile, Investment Holding Group announced that its net profit declined 52.9 percent year-on-year (YoY) and 40.9 percent quarter-on-quarter (QoQ) in the second quarter of 2020. Investment Holding Group recorded QR15.4 million in net profit for the first half of 2020 against QR27.8 million in the same period last year.
Commenting on the company’s results, QNB Financial Services (QNBFS) said, “Investment Holding Group’s gross profits were in line with our expectations. The company recorded QR74.8 million in revenue with a 35.2 percent fall YoY and 1.7 percent QoQ, which we think is attributable to the suspension of activities as a consequence of coronavirus disruptions as well as postponement of some deliveries to coming quarters.”
“Our investment case for Investment Holding Group’s remains broadly intact and we will retain our estimates and target price for now as we await more color on how business recovery trends shape up during the third quarter of 2020 with the ending of
“Coronavirus disruptions have depressed Investment Holding Group’s top-line and gross margins to an extent within the first half of 2020, overshadowing the company’s successful cost-cutting efforts. As the top-line and margins start to recover in the coming quarters, we think the company’s notably lower cost-base will become an important driver for EPS growth,”
QNBFS said.
Furthermore, nearly all of Investment Holding Group’s contracting work is originally related to government projects.
“Thus, even if delays take place, cancellations are unlikely. Therefore we anticipate the company’s revenue growth to speed up in the second half of 2020. It is also noteworthy that Investment Holding Group’s trading business include masks and outfits for labourers, sales of which have surged notably since the beginning of the pandemic,”
it said.
“We continue to like the company as a turnaround story as well as the new management’s dedication in cost-cutting and its efforts in expanding the trading segment’s product range with high-margin products. We continue to rate Investment Holding Group as an outperform,”
it said.