Satyendra Pathak
Doha
The Qatar Stock Exchange (QSE) displayed remarkable resilience during a turbulent week for global markets, ending the week with only a marginal decline of 0.77 percent. This is in stark contrast to the steep declines seen in many international stock exchanges, which experienced the shock of what has been dubbed “Black Monday.”
In a statement to QNA, Financial Analyst Mubarak Al Tamimi highlighted the QSE’s ability to maintain relative stability in the face of global market volatility. He noted that the QSE’s general index remained consistent during a period when many global exchanges were reeling from significant losses. The index’s performance was buoyed by strong showings from leading companies such as Industries Qatar, Qatar National Bank (QNB), and Qatar Islamic Bank (QIB).
Al Tamimi pointed out that, despite a sharp drop during Monday’s session, the QSE index recovered, closing the week above the critical 10,000-point mark. This recovery was largely driven by gains in QIB and Industries Qatar shares during the last trading session. The index reached its weekly peak on July 16, closing at 10,205 points, underscoring the market’s ability to absorb global declines and maintain itscohesion.
While the QSE demonstrated overall stability, the shares of small and medium-sized listed companies showed a mixed performance. Several of these stocks experienced declines, though there were notable exceptions, such as Gulf International Services (GIS) and Baladna Company, which saw a rise in their share prices.
Al Tamimi advised investors to hold onto these stocks, despite their currently low prices, suggesting that the market is likely to rebound in the medium to long term. He emphasised that patience would be key for investors lacking speculative strategies, as they could achieve profitable returns by holding out through the current downturn.
The QSE index dropped 77.74 points over the week to close at 10,053.01 points. The market’s capitalisation decreased by 1 percent, falling to QR580 billion from QR585.8 billion at the end of the previous trading week.
Out of the 52 companies traded, 43 ended the week in the red, while seven saw gains and two remained unchanged. GIS was the worst performer, with a decline of 6.9 percent. In contrast, Qatar General Insurance & Reinsurance (QGRI) emerged as the best-performing stock, with a 1.5 percent increase.
Key contributors to the index’s performance included Masraf Al Rayan, GIS, and QNB Group, which provided a positive offset to the overall market decline. However, MARK and GISS deducted 19.46 and 13.70 points from the index, respectively, with QNBK also pulling the index down by 10.50 points.
The week saw a significant increase in trading activity. The traded value surged by 27.1 percent to QR1,958.3 million, up from QR1,541.2 million in the previous week. QNB was the top value traded stock, with a total traded value of QR303.4 million. Traded volume also increased by 28 percent, reaching 727.6 million shares compared to 568.6 million shares in the prior week. Qatar Aluminum Manufacturing (Qamco) led in volume, with 89.1 million shares traded.
The number of transactions rose by 22.9 percent, totaling 73,586 against 59,881 in the previous week.
Foreign institutions turned bearish, ending the week with net selling of QR155.3 million, a significant shift from net buying of QR58.6 million in the previous week. Conversely, Qatari institutions remained bullish, with net buying increasing to QR226.6 million from QR19 million the week before.
Foreign retail investors also leaned towards selling, with net sales of QR33.5 million compared to QR31.1 million in the prior week. Qatari retail investors recorded net selling of QR37.9 million, slightly down from QR46.5 million the week before.
According to estimates by QNB Financial Services (QNBFS), as of Thursday’s close, global foreign institutions were net sellers of Qatari stocks by $21.7 million, while GCC institutions were net sellers by $309.1 million.
Despite the global market turbulence, the Qatar Stock Exchange has shown resilience, maintaining stability and avoiding the severe declines that have affected other markets. While challenges remain, particularly for small and medium-sized companies, the outlook for the QSE remains cautiously optimistic, supported by strong institutional buying and strategic holding by investors.
