QSE edges down amid US interest rate cut expectations

Amidst expectations of the US rate reduction, the Qatar Stock Exchange (QSE) closed this week on a weaker note despite buying interests in six of the seven sectors.

The selling pressure in the banking counter was seen instrumental in dragging the 20-stock Qatar Index by a marginal 0.03% this week which saw a Standard Chartered research note that forecasted doubling of Qatar’s economy by 2031.

The local retail investors were increasingly net sellers this week which saw Nakilat explore options in tapping the emerging large-scale ammonia sea transportation market as part of strengthening its expansion strategy.

The foreign institutions’ higher net profit booking had its influence in the main bourse this week which saw Qatar's banks and financial services sector witnessed stronger earnings growth on an annualised basis during the first half (H1) of this year.

The Gulf funds were seen bearish in the main market this week, which saw an International Gas Union report said the top three LNG (liquefied natural gas) export markets in the world – the US, Australia and Qatar currently represent more than half of global liquefaction capacity.

The Gulf individuals were increasingly net sellers in the main bourse this week which saw a total of 0.01mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.1mn trade across four deals.

The Arab retail investors continued to be bullish but with lesser vigour in the main market this week which saw as many as 0.02mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.28mn change hands across 19 transactions.

The Qatari individuals were seen increasingly net profit takers in the main bourse this week which saw the banks and industrials sectors together constitute more than 47% of the total trade volumes.

The Islamic index was seen declining faster than the other indices in the main market this week, which saw no trading of sovereign bonds.

Market capitalisation melted QR1.13bn or 0.19% to QR585.18bn on the back of microcap segments this week, which saw no trading of treasury bills.

Trade turnover grew amidst higher volumes in the main market, while in the venture market; both trade volumes and value were on the rise this week.

The Total Return Index shed 0.36%, the All Share Index by 0.16% and the All Islamic Index by 0.62% this week.

The banks and financial services sector index fell 0.7%; while telecom shot up 2.61%, insurance (1.01%), industrials (1%), consumer goods and services (0.31%) and transport (0.25%) this week.

Major losers in the main bourse included QLM, QNB, Mannai Corporation, Widam Food, Al Meera, Dlala, Zad Holding and Industries Qatar. In the venture market, Techno Q saw its shares depreciate in value this week.

Nevertheless, as much as 59% of the traded constituents in the main market extended gains to investors with major movers being Al Faleh Educational Holding, Medicare Group, Barwa, Mazaya Qatar, Al Khaleej Takaful, Lesha Bank, Qatar Oman Investment, Inma Holding, Estithmar Holding, Qamco, Ooredoo, Vodafone Qatar and Nakilat. In the junior bourse, Al Mahhar Holding saw its shares appreciate in value this week.

The local individuals’ net selling increased markedly to QR24.5mn compared to QR20.17mn the week ended August 15.

The foreign institutions’ net profit booking grew substantially to QR18.43mn against QR2.48mn the previous week.

The Gulf funds turned net sellers to the tune of QR4.25mn compared with net buyers of QR9.47mn a week ago.

The Gulf individuals’ net profit booking rose perceptibly to QR3.19mn against QR2.4mn the week ended August 15.

The Arab institutions were net sellers to the extent of QR0.05mn compared with net buyers of QR0.13mn the previous week.

The Arab individual investors’ net buying weakened noticeably to QR0.55mn against QR4.41mn a week ago.

However, the domestic funds’ net buying strengthened substantially to QR48.48mn compared to QR12.81mn the week ended August 15.

The foreign retail investors turned net buyers to the tune of QR1.39mn against net profit takers of QR1.16mn the previous week.

The main market witnessed 4% shrinkage in trade volumes to 527.55mn shares but on 3% jump in value to QR1.31bn amidst 10% lower deals at 55,122 this week.

In the venture market, trade volumes almost quadrupled to 19.05mn equities and value more than tripled to QR38.32mn on 68% growth in transactions to 719.