Satyendra Pathak
Doha
The Qatar Stock Exchange (QSE) index rose by 72.46 points, or 0.7 percent, during the trading week, closing at 10,125.47 points. The market witnessed a significant rise in capitalisation, increasing by 1.1 percent to QR586.3 billion (bn) from QR580 bn at the end of the previous trading week.
Among the 52 companies traded, 27 ended the week on a positive note while 25 saw declines. The standout performer for the week was Qatar General Insurance & Reinsurance, which registered a gain of 6.2 percent. Conversely, Widam Food Company took the biggest hit, dropping by 9.9 percent.
Leading the charge in boosting the QSE index were QNB Group (QNB), Qatar International Islamic Bank (QIIB), and Ooredoo. QNB contributed the largest portion to the index’s rise, adding 52.51 points. QIIK followed with a contribution of 18.37 points, and ORDS further accumulated 13.91 points to the index.
Despite the positive momentum in the index, overall trading activity dipped. The total traded value during the week fell by 31.0 percent to QR1,352.2 million compared to QR1,958.3 million in the previous week. QNB Group emerged as the top value traded stock, accounting for QR152.3 million in total traded value.
Similarly, traded volumes also saw a decline of 24.2 percent, with 551.2 million shares exchanged, down from 727.6 million shares in the prior trading week. The number of transactions also dropped by 16.9 percent to 61,184, from 73,586 the previous week. Mazaya Real Estate Development led in terms of volume, with a total traded volume of 60.4 million shares.
Foreign institutions turned bullish after a week of net selling, ending the week with net buying of QR7.1 million compared to net selling of QR155.3 million in the previous week. Similarly, Qatari institutions continued to maintain their bullish stance, with net buying of QR12.3 million, albeit lower than the previous week’s net buying of QR226.6 million.
Foreign retail investors also shifted to net buying, recording QR0.7mn compared to net selling of QR33.5 million in the previous week. However, Qatari retail investors remained net sellers, with net sales amounting to QR20.2 million, slightly lower than the QR37.9 million recorded in the previous week.
As of the latest trading session, global foreign institutions have remained net sellers of Qatari stocks for the year to date, with total net sales reaching $22.4 million. Meanwhile, GCC institutions have also been net sellers, offloading Qatari stocks worth $306.5 million.
Despite the overall market fluctuations, financial analyst Youssef Bouhlaiqa remains optimistic about the future performance of the QSE index. Speaking to QNA, Bouhlaiqa noted that the QSE index is expected to continue its upward trend, driven by the robust results achieved by listed Qatari companies.
"The figures revealed by the QSE regarding the companies’ results will increase investor attraction and enhance the market’s liquidity in the coming period,” Bouhlaiqa said.
He further pointed out that while the QSE index rose by 0.7 percent in the last five days, it had decreased by 0.7 percent over the past 30 days. However, the index is still 10.5 percent higher than its lowest point on May 30, 2024.
Data released by the QSE showed that the combined profits of listed Qatari companies increased by 5.5 percent in the first half of 2024, reaching QR25.72 billion. This marks a significant improvement compared to QR24.386 billion during the same period in 2023.
The banking and financial services sector was the leading contributor, with net profits amounting to QR14.9 billion, representing approximately 58 percent of the total profits of listed companies. The industrial sector followed with total profits of QR4.645 billion, while the communications sector recorded QR2.164 billion in net profits.
The services and consumer goods sector achieved the most substantial gains during the first half of 2024, with net profits growing by 22.7 percent. On the other hand, the real estate sector saw a decline in net profits by 12.32 percent.
With these solid figures and improving investor sentiment, the outlook for the QSE appears positive, setting the stage for continued growth in the coming months.