Global concerns weigh on QSE sentiments; M-cap erodes QR16bn

Global concerns on growth owing to further hardening US Fed rates weighed on the Qatar Stock Exchange, which closed the week weak.The banking counter witnessed higher than average selling pressure as the 20-stock Qatar Index plunged 1.94% this week which saw the global index compiler FTSE Russell include Milaha under its large cap global equity series, effective from the close of September 15, 2022.More than 57% of the traded constituents were in the red this week which saw a Kamco Invest report that said the average share of bad loans to banks' total loan book stood at 2.7% in Qatar during the second quarter of 2022, which is lower than the Gulf average of 3.4%.The foreign institutions’ net buying weakened considerably this week which saw Aamal Company shareholders approve a higher up to 100% foreign ownership limit.The foreign individuals were increasingly net profit takers this week which saw Widam, the main supplier of meat and livestock in the country, sign an agreement Cairo-based Frigo Trading Company for the supply of beef meat.The domestic institutions’ net selling shrank this week which saw a total of 0.09mn Masraf Al Rayan-sponsored exchange traded fund QATR worth QR0.26mn trade across 28 deals.The Gulf funds’ net buying also weakened this week which saw as many as 0.19mn Doha Bank-sponsored QETF valued at QR2.57mn change hands across 101 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 62% of the total trade volume.Market capitalisation eroded about QR16bn or 2.09% to QR764.69bn, mainly on large and midcap segments this week, which saw no trading of sovereign bonds.In the case of venture market, both trade and turnover were on the decline this week which saw no trading of treasury bills in the main market.The Total Return Index tanked 1.94%, All Share Index by 2.33% and All Islamic Index by 1.33% this week, which saw Estithmar Holding disclose the setting up of Elegancia Events.The banks and financial services sector index plummeted 4.65%, telecom (1.78%), realty (066%), transport (0.46%) and insurance (0.28%); while consumer goods and services gained 1.37% and industrials (1.27%) this week, which also saw Estithmar Holding establish Al Wakra Water Treatment Plant.Major losers in the main market included QNB, Estithmar Holding, Qatar First Bank, Qatar National Cement, QIIB, Qatar Islamic Bank, Commercial Bank, Masraf Al Rayan, Mannai Corporation, Aamal Company, Barwa, Mazaya Qatar, Ooredoo and Milaha. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value.Nevertheless, Widam Food, Qatari German Medical Devices, Gulf International Services, Ahlibank Qatar, Doha Bank, Dlala, Medicare Group, Woqod, Baladna, Industries Qatar, Mesaieed Petrochemical Holding, Ezdan and Nakilat were among the gainers in the main market this week.The foreign funds’ net buying declined substantially to QR43.71mn compared to QR170.17mn the week ended August 18.The Gulf institutions’ net buying weakened considerably to QR7.65mn against QR76.52mn the previous week.The domestic institutions’ net buying shrank markedly to QR106.79mn compared to QR167.54mn a week ago.The foreign individuals’ net selling shot up noticeably to QR13.34mn against QR0.53mn the week ended August 18.However, the Arab individuals turned net buyers to the tune of QR21.84mn compared with net sellers of QR29.66mn the previous week.The local retail investors’ net selling fell significantly to QR163.46mn against QR368.23mn a week ago.The Arab institutions’ net profit booking shrank perceptibly to QR2.79mn compared to QR7.18mn the week ended August 18.The Gulf individuals’ net selling decreased influentially to QR0.4mn against QR8.64mn the previous week.Total trade volume in the main market fell 33% to 840.71mn shares, value by 26% to QR2.96bn and deals by 14% to 81,407.In the venture market, trade volume were seen shrinking 75% to 1.26mn stocks, value by 77% to QR8.41mn and transactions by 71% to 434.