External factors lift QSE sentiments as index surges 265 points

The softer-than-expected US jobs data and the Federal Reserve’s decision to pause rate hike had their overarching influence in the Gulf regional bourses, including Qatar Stock Exchange (QSE), which saw its key barometer gain 265 points and capitalisation add more than QR13bn this week.
A higher than average demand, especially in the consumer goods and banking counters, led the 20-stock Qatar Index surge 2.73% this week which saw the Qatar Financial Centre’s purchasing managers’ index survey disclose that Doha’s non-energy private sector continued to see improved business conditions at the beginning of the fourth quarter of 2023.
As much as 52% of the traded constituents extended gains to investors in the main market this week which saw Ernst and Young find that Qatar reported the Middle East and North Africa’s second largest initial public offering during the third quarter of 2023 with Meeza raising as much as $163mn.
The domestic institutions continued to be net buyers but with lesser intensity in the main bourse this week which saw Standard and Poor’s (S&P) view that a low cost liquefied natural gas supplier Qatar will remain relatively in a “strong competitive position even beyond 2030”.
The local retail investors turned extremely bearish in the main market this week which saw S&P forecast that Qatar’s consumer price index inflation to moderate to 3% this year against as high as 5% in 2022.
The foreign individuals were seen increasingly into net selling in the main bourse this week which saw Qatar’s producers’ price index surge 5.45% month-on-month in September 2023.
The Arab retail investors were net profit takers in the main market this week, which saw a total of 0.06mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.13mn trade across 24 deals.
The Islamic index outperformed the other indices in the main bourse this week which saw as many as 0.08mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.77mn change hands across 77 transactions.
Market capitalisation was seen expanding QR13.54bn or 2.37% to QR585.32bn on the back of large and midcap segments this week which saw the industrials and banks together constitute more than 56% of the total trade volume in the main market.
Trade volumes and turnover were on the increase in the main bourse but they were on the decline in the venture market this week.
The Total Return Index zoomed 2.73%, the All Share Index by 2.54% and the All Islamic Index by 2.77% this week, which saw no trading of sovereign bonds.
The consumer goods and services sector index sector soared 4.49%, banks and financial services (3.83%), realty (2%) and industrials (1.91%); while telecom declined 2.04%, transport (1.08%) and insurance (1.02%) this week which saw no trading of treasury bills.
Major gainers in the main market included Masraf Al Rayan, Woqod, Dukhan Bank, Doha Bank, QNB, Inma Holding, Mannai Corporation, Industries Qatar, Qamco, Qatar Electricity and Water, Barwa and Mazaya Qatar. In the venture market, Al Faleh Educational Holding saw its shares appreciate in value this week which saw Gulf Warehousing Company (GWC) sign agreement with Qatar Development Bank to support micro, small, and medium-sized enterprises.
Nevertheless, Dlala, Qatar Oman Investment, GWC, Al Khaleej Takaful, Medicare Group, Widam Food, Qatari Investors Group, Gulf International Services, Ooredoo and Nakilat were among the shakers in the main market. In the junior bourse, Mahhar Holding saw its shares depreciate in value this week, which saw S&P affirm Commercial Bank’s long-term issuer credit ratings at 'A-/stable/A-2' with a "stable" outlook.
The foreign institutions were net buyers to the tune of QR125.92mn against net sellers of QR147.56mn the week ended November 2.
However, the local retail investors turned net sellers to the extent of QR102.69mn compared with net buyers of QR31.81mn a week ago.
The foreign individuals’ net profit booking strengthened markedly to QR11.08mn against QR4.24mn the previous week.
The Arab individuals were net sellers to the tune of QR8.58mn compared with net buyers of QR8.67mn the week ended November 2.
The Gulf institutions turned net profit takers to the extent of QR7.52mn against net buyers of QR76.44mn a week ago.
The Gulf retail investors were net sellers to the tune of QR0.44mn compared with net buyers of QR2.84mn the previous week.
The domestic institutions’ net buying decreased significantly to QR4.4mn against QR32.02mn the week ended November 2.
The Arab institutions had no major net exposure compared with net buyers to the extent of QR0.03mn a week ago.
The main market witnessed a 4% jump in trade volumes to 1.32bn shares and 5% in value to QR3.12bn but on 2% fall in deals to 100,768 this week.
In the venture market, trade volumes plummeted 31% to 6.81mn equities, value by 38% to QR9.42mn and transactions by 21% to 692.