Global factors play spoilsport in QSE as index falls 1.41%

Rising geopolitical uncertainties and apprehensions over the US interest rate cut had their ripple effect on the Qatar Stock Exchange (QSE), which closed this week on a weaker note.

The domestic funds were seen net profit takers as the 20-stock Qatar Index plunged 1.41% or 143 points this week which saw Qatar Islamic Bank report net profit of QR2.07bn in the first half (H1) of 2024.

An across the board selling, particularly in the telecom counter, was seen dampening the sentiments in the main bourse this week which saw Commercial Bank of Qatar report H1-2024 net profit of QR1.57bn.

More than 65% of the traded constituents were in the red in the main market this week, which saw Masraf Al Rayan register net profit of QR7789.06mn in H1-2024.

The foreign retail investors were increasingly net sellers in the main bourse this week which saw Dukhan Bank report QR784.14mn net profit in January-June 2024.

However, the foreign funds were increasingly net buyers in the main market this week which saw Ahlibank Qatar register net profit of QR383.01mn in the first six months of this year.

The local retail investors continued to be net sellers but with lesser intensity in the main bourse this week which saw Milaha and Qatar Steel enter into a five-year stevedore services deal.

The Arab retail investors also continued to be bearish but with lesser vigour in the main market this week which saw a total of 0.05mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.1mn trade across 19 deals.

The Gulf individuals continued to be net profit takers but with lesser intensity in the main bourse this week which saw as many as 0.03mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.3mn change hands across 22 transactions.

The Islamic index was seen declining slower than the main barometer in the main market this week which saw the banks and industrials sectors together constitute about 56% of the total trade volumes.

Market capitalisation eroded QR8.51bn or 1.45% to QR580.26bn on the back of large and midcap segments this week, which saw no trading of sovereign bonds.

Trade turnover fell amidst higher volumes in the main market this week which saw no trading of treasury bills.

In the case of venture market, trade turnover and volumes were on an increasing pitch this week, which saw Masraf Al Rayan adopt interim dividend payment framework.

The Total Return Index fell 1.07%, the All Share Index by 0.91% and the All Islamic Index by 1.3% this week which saw the Qatar Financial Markets Authority issue new controls for a company's buyback of its shares with the intention of selling.

The telecom sector index tanked 2.79%, industrials (1.38%), insurance (1.09%), banks and financial services (0.73%), real estate (0.51%), transport (0.5%) and consumer goods and services (0.01%) this week which saw Milaha announce new pendulum service MGX 2 (Milaha Gulf Express 2), to be deployed between China-India/Gulf.

Major shakers in the main bourse included Al Meera, Qatar Electricity and Water, Ooredoo, Aamal Company, Qatar Islamic Bank, QNB, Commercial Bank, Al Faleh Educational Holding, Qatar National Cement, Industries Qatar, United Development Company, Vodafone Qatar, Nakilat and Gulf Warehousing. In the venture market, Techno Q saw its shares depreciate in value this week.

Nevertheless, Widam Food, Doha Bank, Zad Holding, Beema, Gulf International Services, Salam International Investment, Qatari Investors Group and Milaha were among the movers in the main market. In the junior bourse, Al Mahhar Holding saw its shares appreciate in value this week.

The domestic funds turned net sellers to the tune of QR70.73mn compared with net buyers of QR124.84mn the week ended July 11.

The foreign retail investors’ net selling increased noticeably to QR11.51mn against QR0.85mn the previous week.

However, the foreign institutions’ net buying strengthened substantially to QR161.75mn compared to QR14.19mn a week ago.

The local individuals’ net selling decreased drastically to QR35.41mn against QR86.36mn the week ended July 11.

The Gulf institutions’ net selling declined perceptibly to QR28.74mn compared to QR31.35mn the previous week.

The Arab retail investors’ net profit booking weakened marginally to QR12.65mn against QR13.05mn a week ago.

The Gulf individuals’ net selling shrank markedly to QR2.66mn compared to QR6.72mn the week ended July 11.

The Arab institutions’ net profit booking eased marginally to QR0.02mn against QR0.68mn the previous week.

The main market witnessed an 8% jump in trade volumes to 812.26mn shares but on 1% fall in value to QR2.05bn amidst 5% higher deals at 79,338 this week.

In the venture market, trade volumes shot up 11% to 6.49mn equities and value by 11% to QR12.82mn, while transactions declined 24% to 500.