Global factors dampen QSE sentiments; index tanks 310 points, M-cap erodes QR18bn

The concerns over US inflation data and rate hike had their debilitating effect on the global bourses, including the Qatar Stock Exchange (QSE), whose key index plummeted 310 points and capitalisation eroded QR18bn this week.The banking counter witnessed higher than average selling pressure as the 20-stock Qatar Index tanked 2.38% this week which saw Qatar Electricity & Water Company sign share purchase agreement with QatarEnergy to sell its entire stake in Siraj Energy.The Gulf institutions were increasingly net sellers this week which saw QIIB and Qatar Islamic Insurance disclose plans to establish takaful in Morocco, along with other stakeholders.The foreign individuals were net profit takers this week saw Woqod’s net profit at QR763mn during the first nine months of this year.The foreign institutions’ substantially weakened net selling had its influence in the market this week which saw QNBFS, the brokerage subsidiary of QNB, and The Group together constitute about 70% of stocks trade turnover during the first nine months of this year.The Gulf retail investors were increasingly net sellers this week which saw Dlala get necessary approvals for reducing the capital base.More than 80% of the traded constituents were in the red this week which saw Qatar register a strong-double digit year-on-year increase in building permits issued in August with Doha, Al Rayyan and Al Wakra outpacing the national average.In the main market, trade turnover and volumes declined; while the venture market saw higher turnover amidst lower volumes this week which saw a Global Islamic Fintech Report that said Qatar, which is among the top 10 Islamic fintech markets in the world, has the rapidly growing ecosystem for the sector.However, the Arab individuals were seen bullish this week which saw a total of 2.13mn Masraf Al Rayan-sponsored exchange traded fund QATR worth QR5.88mn trade across 126 deals.The local retail investors continued to be net sellers but with lesser intensity this week which saw as many as 0.18mn Doha Bank-sponsored QETF valued at QR2.24mn change hands across 148 transactions.Market capitalisation was seen eroding QR17.77bn or 2.48% to QR708.25bn on the back of large and midcap segments this week which saw the industrials and banking sectors together constitute about 66% of the total trade volume in the main market.The Total Return Index tanked 2.38%, All Share Index by 2.45% and All Islamic Index by 1.89% this week, which saw no trading of sovereign bonds.The banks and financial sector index plunged 3.15%, industrials (2.34%), real estate (2.33%), insurance (1.9%), transport (1.33%) and consumer goods and services (0.56%); while telecom rose 1.54% this week which saw no trading of treasury bills.Major gainers in the main market included Lesha Bank, Al Khaleej Takaful, Inma Holding, Mannai Corporation, Estithmar Holding, QNB, Qatar Islamic Bank, Doha Bank, Masraf Al Rayan, Dlala, Qatari German Medical Devices, Qatar Industrial Manufacturing, Qatar National Cement, Industries Qatar, Gulf International Services, Qamco, Qatar Insurance and Ezdan this week.Nevertheless, Aamal Company, Alijarah Holding, Zad Holding, Vodafone Qatar, Mazaya Qatar and Ooredoo were among the gainers this week. In the venture market, both Al Faleh Educational Holding and Mekdam Holding were among the gainers this week.The Gulf institutions’ net selling increased substantially to QR23.83mn compared to QR5.92mn the week ended October 6.The foreign individuals turned net sellers to the tune of QR11.84mn against net buyers of QR8.11mn the previous week.The Gulf individuals’ net profit booking expanded perceptibly to QR5.03mn compared to QR4.17mn a week ago.The foreign funds’ net buying decreased significantly to QR162.78mn against QR239.27mn the week ended October 6.However, the Arab individuals were net buyers to the extent of QR18.91mn compared with net sellers of QR21.9mn the previous week.The local retail investors’ net profit booking weakened drastically to QR91.39mn against QR127.16mn a week ago.The domestic institutions’ net selling shrank noticeably to QR49.46mn compared to QR88.06mn the week ended October 6.The Arab institutions’ net profit booking eased marginally to QR0.13mn against QR0.17mn the previous week.Total trade volume in the main market fell 16% to 753.2mn shares, value by 23% to QR1.94bn and deals by 16% to 64,443.The venture market reported 8% contraction in trade volumes to 0.35mn equities but on 23% jump in value to QR2.52mn and 43% in transactions to 251.