The QSE’s key index gained 68 points this week, raising market capitalisation by QR2.63 billion. Domestic institutions were net buyers, while there was increased net selling from Gulf institutions. Heightened demand was noted in transport, telecom, and real estate sectors, alongside the launch of the Al-Nukhba initiative. However, trade volumes and values declined significantly.
The Qatar Stock Exchange (QSE) maintains an upward trend with its key index gaining 68 points, reflecting a capital increase of QR2.63 billion this week despite ongoing U.S. tariff concerns. Domestic institutions remained net buyers, though to a reduced extent, contributing to a 0.66% rise in the 20-stock Qatar Index. Notably, the QSE has amended its trading commission structure, eliminating the minimum trading fee and implementing a proportional rate of 0.00275.
Sector performance showed heightened demand in transport, telecom, real estate, and consumer goods. Meanwhile, the QSE announced the launch of the Al-Nukhba program, aimed at enhancing the capabilities of family-owned and private enterprises in Qatar. The decline in foreign fund activity influenced the market, yet total bank assets in Qatar recorded a 3.3% year-on-year growth, reaching QR2.04 trillion as of January 2025.
This week, Gulf institutions exhibited a trend of net selling, trading the AlRayan Bank’s exchange-traded fund (ETF) with minimal volumes. Similarly, Arab individuals reflected a bearish sentiment in the market, while foreign retail investors also turned net sellers, moving QR10 million in sovereign bonds. In terms of indices, the Islamic index outperformed others; Doha Bank’s bond issuance saw significant interest from European and Asian investors.
Market capitalization rose by 0.43% to QR616.07 billion, bolstered by small and micro-cap stocks. Meanwhile, trade volumes and turnover diminished, indicating no trading activity in treasury bills. The Total Return Index, All Islamic Index, and All Share Index showed modest gains, with industrials and banking dominating over half of the trade volume.
The sector indices revealed considerable increases, particularly in transport (3.07%), telecom (1.78%), and real estate (1.73%). In notable corporate activities, a strategic partnership between Doha Insurance and Bupa Global was established. Despite gains in 57% of constituents, several companies, including Gulf International Services and Baladna, faced declines.
Examining the net positions, foreign institutions’ selling saw a reduction to QR136.98 million, while Gulf institutions’ profit booking increased significantly. Other investor categories, including foreign individuals and Qatari individuals, transitioned to net sellers compared to prior weeks. Overall, the main market experienced a major decline in trade activity, with a 46% drop in volumes and a 43% reduction in value, highlighting a shift in trading dynamics.
The Qatar Stock Exchange has successfully navigated challenges, recording a net index gain amidst prevailing tariff concerns and fluctuating trading activities. While domestic institutions remain influential as net buyers, the overall market dynamics have shifted with increased selling from foreign and Gulf institutions. The launch of significant initiatives, like the Al-Nukhba program, reflects ongoing commitment to enhancing the economic landscape, despite a notable decline in trade volumes and values this week.
Original Source: www.gulf-times.com
