Global recession fears weigh on QSE sentiments; index falls

The global recession fears had its overarching influence on the Qatar Stock Exchange, which saw its index tank 107 points and capitalisation erode QR11bn this week.The consumer goods, industrials, insurance and banking counters witnessed higher than average selling pressure as the 20-stock Qatar Index shed 0.87% this week which saw a rebound in non-oil sectors help Qatar report 2.5% real economic growth on an annualised basis during the first quarter of 2022.About 74% of the traded constituents were in the red this week which saw Qatar's purchasing managers' index signalled a second successive record improvement in operating conditions in the non-energy sector to conclude the second quarter of 2022.Local retail investors were seen net profit takers this week which saw Qatar's cost of living, based on consumer price under (CPI) inflation, soar 5.45% on an annualised basis in June, even as it was broadly stable month-on-month.The Arab individuals were also seen bearish this week which saw Qatar's automobile sector saw a double-digit growth in new registrations on an annualised basis this May, paced by robust sales of new private vehicles and motorcycles.The foreign institutions’ weakened net buying had its influence in the market this week which saw Qatar Electricity and Water Company has signed a pact to sell its plot of land in Lusail City to Regency Land Real Estate Company for QR175mn.The domestic funds continued to be net profit takers but with lesser intensity this week which saw a total of 0.29mn Masraf Al Rayan-sponsored exchange traded fund QATR worth QR0.75mn trade across 49 deals.The Arab institutions continued to be net buyers but with lesser vigour this week which saw as many as 0.08mn Doha Bank-sponsored QETF valued at QR0.97mn change hands across 42 transactions.The overall trading turnover and volumes were on the decline in the main market this week, which saw the industrials and banking sectors together constitute about 63% of the total trade volume.Market capitalisation eroded more than QR11bn or 1.67% to QR672.06bn, mainly on large and midcap segments this week, which saw no trading of sovereign bonds and treasury bills.The Total Return Index shed 0.87% and All Share Index by 1.36%, whereas All Islamic Index was up 0.02% this week.The consumer goods and services sector index plummeted 3.7%, industrials (2.2%), insurance (1.31%) and banks and financial services (1.29%); while transport gained 1.61%, telecom (0.81%) and real estate (0.3%) this week.Major shakers in the main market included Qatari German Medical Devices, Estithmar Holding, Salam International Investment, Baladna and Mannai Corporation. In the venture market, Mekdam Holding saw depreciation in value.Nevertheless, Qatar Islamic Bank, Mesaieed Petrochemical Holding, QIIB, Barwa and Milaha saw their shares increase in value. In the junior bourse, Al Faleh Educational Holding saw its shares appreciate in value.In the main market, the industrials sector accounted for 44% of the total trade volume, banks and financial services (19%), consumer goods and services (15%), real estate (14%), transport (4%), telecom (3%) and insurance (1%) this week.In terms of value, the banks and financial sector’s share was 43%, industrials (32%), consumer goods and services (8%), transport (7%), realty (6%), telecom (3%) and insurance (1%) this week.Qatari individuals turned net sellers to the tune of QR46.55mn compared with net buyers of QR49.53mn the week ended June 30.The Arab individuals were net sellers to the extent of QR12.98mn against net buyers of QR2.49mn a week ago.The foreign funds’ net buying declined substantially to QR107.4mn compared to QR237.61mn the previous week.The Arab institutions’ net buying shrank perceptibly to QR1.81mn against QR3mn the week ended June 30.The foreign individuals’ net buying eased marginally to QR2.01mn compared to QR2.14mn a week ago.However, the Gulf individuals were net buyers to the tune of QR0.79mn against net sellers of QR13.25mn the previous week.The domestic funds’ net selling declined drastically to QR46.41mn compared to QR274.85mn the week ended June 30.The Gulf institutions’ net profit booking shrank marginally to QR6.08mn against QR6.67mn a week ago.Total trade volume in the main market fell 41% to 517.91n shares, value by 37% to QR1.71bn and transactions by 20% to 61,065.The venture market saw 52.94% contraction in trade volumes to 0.96mn stocks, 61.72% in value to QR4.77mn and 50.13% in deals to 371.