The Qatar Stock Exchange (QSE) has reported a 68-point gain, enhancing its capitalisation by QR2.63 billion. Despite concerns related to US tariffs, domestic institutions continued as net buyers, albeit with reduced intensity. Various sectors, particularly transport and telecom, demonstrated strong demand, while the QSE introduced measures to support family-owned businesses. However, trading volumes and values saw a decline this week.
The Qatar Stock Exchange (QSE) has shown positive momentum, with its key index increasing by 68 points this week, contributing to a capitalisation rise of QR2.63 billion. Despite ongoing US tariff concerns, domestic institutions remained consistent net buyers, although their activity decreased. The Qatar Index, consisting of 20 stocks, rose by 0.66% this week, coinciding with the removal of the minimum trading commission in favor of a lower fixed proportional rate of 0.00275 without a minimum threshold.
Significant interest was observed in the transport, telecommunications, real estate, and consumer goods sectors. This surge in demand aligns with the introduction of the Al-Nukhba programme, aimed at bolstering the capabilities of promising family-owned and private enterprises in Qatar. Concurrently, foreign funds displayed reduced net profit booking, while total assets of Qatari commercial banks demonstrated a year-on-year growth of 3.3%, reaching QR2.04 trillion by January 2025.
While Gulf institutions displayed increased net selling tendencies, trading activity included 0.05 million units of the AlRayan Bank-sponsored exchange-traded fund (ETF) worth QR0.12 million. Arab individuals exhibited a bearish attitude in the market, trading 0.01 million units of the Doha Bank-sponsored ETF valued at QR0.08 million. Conversely, foreign retail investors became net sellers, offloading 1,000 sovereign bonds valued at QR10 million in a single transaction.
The Islamic index outperformed its counterparts this week, highlighted by the Doha Bank’s $500 million global bond issuance, which garnered significant interest from European and Asian investors—55% of the total. Market capitalisation expanded by 0.43% to QR616.07 billion, predominantly fueled by small and micro-cap segments, further strengthened by a strategic partnership between Doha Insurance and Bupa Global.
Nonetheless, trade turnover and volume declined this week, with no treasury bills traded. The Total Return Index climbed by 0.75%, while the All Islamic Index increased by 0.79% and the All Share Index rose by 0.63%. The industrial and banking sectors accounted for over 54% of total trading activity, and notable sector performances included a 3.07% rise in the transport index and steady growth in Qatar’s maritime sector.
Approximately 57% of traded components recorded gains, with significant contributions from entities like Qatar General Insurance and Reinsurance, and Vodafone Qatar. Conversely, there were declines noted for Gulf International Services, Baladna, and others. In the venture market, Techno Q’s stock depreciated.
Data reveal a substantial reduction in foreign institutions’ net selling, which decreased to QR136.98 million from QR463.31 million the previous week. In contrast, net profit bookings from Gulf institutions surged to QR23.77 million, up from QR11.96 million. Foreign individuals transitioned to net profit takers, while Arab retail investors and Qatari individuals exhibited bearish conditions. The domestic institutions’ purchasing activity significantly declined to QR191.89 million from QR392.64 million the prior week, showcasing an overall 46% drop in trade volumes to 510.42 million shares, a 43% decrease in value to QR1.54 billion, and a 26% reduction in deals to 63,524.
In summary, the Qatar Stock Exchange has successfully maintained a positive trajectory despite external pressures, marked by significant institutional activity and a resilience in various market segments. While overall trading volume and value have declined, strategic initiatives such as the Al-Nukhba programme indicate a commitment to long-term growth. The mixed sentiments among different investor classes underscore the dynamic nature of the QSE, leaving room for potential future developments and fluctuations.
Original Source: www.gulf-times.com
