US rate cut expectations lift QSE 120 points as foreign funds turn bullish
An imminent rate cut expected from the US Federal Reserve had its positive effect on the global bourses, including the Qatar Stock Exchange (QSE), which saw its index gain as much as 120 points and capitalisation add about QR10bn this week.The foreign institutions were seen increasingly net buyers as the 20-stock Qatar Index gained 1.18% this week which saw the Qatar Financial Centre launch its digital assets framework.The banks and real estate counters witnessed higher than average demand this week which saw stronger new business inflows and surge in jobs signal improved business conditions in Doha's non-energy private sector economy.About 62% of the traded constituents extended gains to investors in the main market this week which saw the QSE introduce a revised liquidity provider scheme that could significantly lower liquidity costs and provide more depth in the order book.The Gulf institutions’ weakened net selling had its influence on the main bourse this week which saw Qatar’s hospitality sector saw improved (year-on-year) room yield in July 2024, particularly in the deluxe hotel apartments and four-star hotels; amidst jump in visitors.However, the local retail investors were increasingly bearish in the main bourse this week, which saw Qatar's maritime see a robust double-digit year-on-year growth in the handling of vehicles (RORO) and livestock this August.The foreign individuals were increasingly net sellers in the main market this week which saw a total of 0.02mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.04mn trade across 15 deals.The Arab retail investors turned net profit takers in the main bourse this week which saw as many as 0.07mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.67mn change hands across 58 transactions.The Gulf individuals were seen bearish in the main market this week which saw the banks and industrials sectors together constitute about 54% of the total trade volumes.The Islamic index was seen gaining slower than the main barometer in the main bourse this week, which saw no trading of sovereign bonds.Market capitalisation added 1.66% to QR597.17bn on the back of large and midcap segments this week, which saw no trading of treasury bills.Trade turnover and volumes were on the decline in both the main market and junior bourse this week, which saw Meeza QSTP enter into QR100mn pact to deliver 1MW (megawatt) capacity in its M-VAULT4 data centre to global hyperscalers.The Total Return Index rose 1.18%, the All Share Index by 1.06% and the All Islamic Index by 1.12% this week, which saw a global credit rating agency Standard and Poor’s forecast that the Gulf banks could likely lose as much as 12% from their net earnings on an expected 150 basis points rate cut by the US Federal Reserve between now and end-2025.The banks and financial services sector index shot up 1.51%, real estate (1.2%), telecom (1.14%), industrials (0.94%), consumer goods and services (0.56%) and insurance (0.23%); while transport declined 0.55% this week which saw Aamal Readymix disclose its intent to acquire remaining shares in Advanced Pipe and Cast.Major gainers in the main bourse included Medicare Group, Commercial Bank, Qatar Oman Investment, Meeza, Dlala, Qatar Islamic Bank, Doha Bank, Masraf Al Rayan, Lesha Bank, Qatar Electricity and Water, Qatar Investors Group, Industries Qatar, Gulf International Services, Al Khaleej Takaful, Qatar Islamic Insurance, United Development Company, Barwa and Ezdan. In the venture market, both Al Mahhar Holding and Techno Q saw their shares appreciate in value this week.Nevertheless, Mekdam Holding, Qamco, Al Faleh Educational Holding, Nakilat and QLM were among the shakers in the market this week.The foreign funds’ net buying increased substantially to QR82.72mn compared to QR31.72mn the week ended August 29.The Gulf institutions’ net profit booking declined significantly to QR8.36mn against QR29.01mn the previous week.However, the local individual investors’ net selling strengthened considerably to QR49.88mn compared to QR25.12mn a week ago.The foreign retail investors’ net selling expanded drastically to QR14.64mn against QR3.2mn the week ended August 29.The Arab individuals turned net sellers to the tune of QR7.2mn compared with net buyers of QR9.13mn the previous week.The Gulf retail investors were net profit takers to the extent of QR2.59mn against net buyers of QR0.09mn the previous week.The domestic funds turned net sellers to the tune of QR0.04mn compared with net buyers of QR16.49mn the week ended August 29.The Arab institutions had no major net exposure against net profit takers to the tune of QR0.09mn the previous week.The main market witnessed 23% plunge in trade volumes to 639.57mn shares, 21% in value to QR1.58bn and 16% in deals to 61,040 this week.In the venture market, trade volumes tanked 22% to 5.15mn equities, value by 20% to QR12.07mn and transactions by 41% to 401.