Qatari stock alert

QATAR

CLOSING UPDATE: Barwa Real Estate accelerates slide, now down 3.3% in 2 days 18 October 2017 13:23 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

This is an end of day Alert, produced after today's Qatar market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Barwa Real Estate, Qatar's 2nd largest real estate company by market capitalisation, is down QAR1.04 (or 3.3%) over the past two trading days. After falling 0.9% on Tuesday, the stock fell 2.4% on Wednesday to trade at QAR30.23 vs. the QE Index that is down 1.9% in the same period.

Technical indicators complementing today's significant downtrend:

+ The negative 0.32 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price dropped 2.4% in the last week and 2.2% in the last month.

Note

Barwa Real Estate today is at a discount of 22.8% to the 12-month high of QAR39.17 on 22 Feb, 2017. It is at a premium of 11.2% to the 12-month low of QAR27.17 on 24 Nov, 2016.

Bullish Signals:

The company is cash rich with Cash to Market Capitalisation at 26.2%.

Interest cover is less leveraged at 11.2 times.

Tobin's Q Ratio is 0.4. Compared with the rest of the market the stock is undervalued.

As per the Du Pont analysis, Return on Equity of 9.0% is better than sector average of 6.9%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Price/Earnings of 7.3 [10.0]

Dividend yield of 8.3% [6.7%]

Return on Equity 9.0% [6.9%]

Return on Assets 5.5% [4.1%]

TODAY'S ALERT

Morning Alert: Barwa Real Estate drops 2.4%, leads market lower

18 October 2017 10:06 AST

Barwa Real Estate Company (QE:BRES) has dropped 2.4% to trade at QAR30.23 vs. the QE Index which weakened 13.6 points (or 0.2%) to 8,215.7. Representing a weighting of about 3.3% of the index, the stock accounted for 50.6% of today's loss. Trading volume was 14% of average so far today.

Barwa Real Estate Company (QA:BRES; QD:BRES)

ISIN: QA000A0KD6J5

PermID: 4295886955

Source: www.BuySellSignals.com