The Qatar Stock Exchange’s key index rose by 68 points this week, supported by a 0.66% increase in capitalisation to QR2.63 billion. Domestic institutions remained net buyers, while the transport and telecom sectors saw increased demand. The introduction of the Al-Nukhba program and a shift in trading commission outlined an adaptive approach amidst changing market dynamics, even as trading volumes fell significantly.
This week, the Qatar Stock Exchange (QSE) demonstrated resilience, with its key index increasing by 68 points, marking a 0.66% rise. The market capitalization also appreciated by QR2.63 billion. Domestic institutions maintained their net buying stance, albeit with reduced vigor, coinciding with the QSE’s recent change in its trading commission structure from a minimum QR30 to a fixed rate of 0.00275 without a threshold.
High demand for transport, telecom, real estate, and consumer goods sectors was observed, supporting the overall market performance. Additionally, QSE initiated the Al-Nukhba program, aiming to advance training for family-owned and private enterprises in Qatar. The commercial banking sector reported a 3.3% annual growth, totaling QR2.04 trillion as of January 2025 due to reduced foreign fund profit booking.
The market experienced a shift in investor sentiment with Gulf institutions engaging in net selling within the main bourse. A modest amount of AlRayan Bank-sponsored exchange-traded funds traded, alongside bearish activities from Arab individuals. In contrast, foreign retail investors became net sellers with a minor trade of sovereign bonds valued at QR10 million completing one transaction.
The Islamic index outperformed other indices, reflecting strong investor interest, especially from European and Asian markets for Doha Bank’s oversubscribed global bond. Market capitalization increased by 0.43% to QR616.07 billion, spurred by performance within small and micro-cap segments.
Trade turnover and volumes declined significantly this week, with the Total Return, All Islamic, and All Share Indices reflecting modest increases. Notably, the transport sector index surged by 3.07%, while the industrials and banking sectors accounted for a significant share of trade volume. Approximately 57% of traded constituents reported gains, highlighted by key players such as Qatar General Insurance and Vodafone Qatar.
Conversely, numerous stocks including Gulf International Services and Al Faleh Educational Holding faced declines. The data indicated a substantial decrease in foreign net selling to QR136.98 million, while Gulf institutional profit booking rose sharply. Retail movements showed net selling trends among various investor groups, alongside a marked plunge in the overall trading activity compared to the previous week.
In summary, the Qatar Stock Exchange maintained a positive trajectory despite ongoing economic concerns. The market witnessed increased investor participation in specific sectors and indices, notably the Islamic index. Challenges persist in trading activity, with decreased turnover and value transactions. Overall, QSE continues to adapt to changing market conditions and investor behaviors while introducing initiatives to fortify corporate capabilities.
Original Source: www.gulf-times.com
