Extraneous forces dampen sentiments in QSE as index tanks 412 points; M-cap erodes QR24bn

Volatility in the global energy markets and the US Federal Reserve's 25 basis points hike in key rate had its ramifications in the Qatar Stock Exchange, whose key index plummeted 412 points and capitalisation eroded QR24bn this week.The foreign institutions were seen net profit takers as the 20-stock Qatar Index plummeted 3.71% this week which saw Qamco report a record QR919mn net profit in 2022.The banking, real estate and insurance counters witnessed higher than average selling pressure this week which saw QNBFS, the subsidiary of QNB, start market making for Commercial Bank, Qatar Electricity and Water and Ooredoo.About 86% of the traded constituents were in the red this week, which saw the brokerage entity Dlala to soon start margin trading.The foreign retail investors were seen net sellers this week which saw QInvest extend the book-building period for Meeza initial public offering until February 9.The Arab retail investors’ weakened net buying had its influence in the main market this week which saw Qatar’s ports witness 59% year-on-year jump in transshipment volumes through Hamad, Doha and Al Ruwais ports in January 2023.The Islamic index was seen declining slower than the other indices this week which Milaha and Turkish heavy lift and engineered transport specialist Hareketsaw enter into a strategic alliance.The domestic funds continued to be net sellers but with lesser intensity this week which saw a total of 0.46mn Masraf Al Rayan-sponsored exchange traded fund QATR worth QR1.13mn trade across 30 deals.Trade turnover and volumes were on the increase in the main market this week, which saw as many as 0.12mn Doha Bank-sponsored exchange traded fund QETF valued at QR1.31mn change hands across 78 transactions.Market capitalisation was seen eroding QR23.54bn or 3.73% to QR606.8bn on the back of large and midcap segments this week which saw the industrials and banking sectors together constitute more than 77% of the total trade volume in the main market.The Total Return Index knocked off 3.71%, All Share Index by 3.86% and All Islamic Index by 3.11% this week, which saw no trading of sovereign bonds.The banks and financial services sector index plummeted 5.63%, real estate (5.47%), insurance (4.81%), transport (2.39%), consumer goods and services (1.36%) and industrials (1.16%); while telecom was up 0.2% this week which saw no trading of treasury bills.Major losers in the main market included Gulf Warehousing, Doha Bank, Masraf Al Rayan, Dlala, Widam Food, QNB, Qatar Islamic Bank, Lesha Bank, Alijarah Holding, Medicare Group, Baladna, Gulf International Services, Estithmar Holding, Qatar Insurance, Qatar General Insurance and Reinsurance, Al Khaleej Insurance, Barwa, Ezdan, Mazaya Qatar and Milaha. In the venture market, Al Faleh Educational Holding saw its shares depreciate in value this week.Nevertheless, Qatar Cinema and Film Distribution, Qatar Islamic Insurance, Ooredoo, Ahlibank Qatar and Woqod were among the gainers in the main market this week.The foreign funds were net sellers to the tune of QR7.62mn against net buyers of QR189.28mn the week ended January 26.The foreign individuals turned net sellers to the extent of QR5.19mn compared with net buyers of QR10.15mn a week ago.The Arab individual investors’ net buying decreased noticeably to QR3.81mn against QR17.25mn the previous week.However, the Gulf funds were net buyers to the tune of QR57.97mn compared with net sellers of QR31.76mn the week ended January 26.The local retail investors turned net buyers to the extent of QR18.62mn against net sellers of QR47.21mn a week ago.The Gulf retail investors were net buyers to the tune of QR0.28mn compared with net sellers of QR1.82mn the previous week.The Arab institutions turned net buyers to the extent of QR0.18mn against net sellers of QR0.05mn the week ended January 26.The domestic institutions’ net profit booking weakened substantially to QR68.05mn compared to QR135.83mn a week ago.Total trade volume in the main market expanded 10% to 744.9mn shares, value by 24% to QR2.89bn and deals by 18% to 86,996.