Satyendra Pathak
Doha
The Qatar Stock Exchange (QSE) index experienced a minor decline over the past week, edging lower by 2.86 points, or 0.03 percent, to close at 10,122.61 points.
This slight dip reflects a continued period of volatility and uncertainty in the market, which has been a characteristic of recent trading sessions. Market capitalisation also saw a slight decline, dropping by 0.2 percent from QR586.3 billion (bn) at the end of the previous trading week to QR585.2 billion. The overall market sentiment appeared mixed, with 21 of the 51 traded companies ending the week in the red, while 30 companies managed to close higher.
Al Faleh Educational stood out as the best-performing stock of the week, soaring by an impressive 33.1 percent. This substantial increase can be attributed to positive investor sentiment surrounding the company’s recent financial performance and future growth prospects, particularly in the education sector, which continues to be a significant focus in Qatar’s economic diversification efforts.
Three major companies QNB Group (QNB), Qatar Navigation (Milaha) and Commercial Bank were the primary contributors to the overall decline in the QSE Index.
QNB, Qatar’s largest financial institution, subtracted a significant 31.51 points from the index, reflecting investor concerns about the banking sector amidst global economic uncertainties. Milaha, a key player in the logistics and shipping sector, contributed to the decline by removing 4.0 points from the index. Commercial Bank, another major financial institution, further weighed down the index by subtracting 3.39 points.
Trading activity on the QSE was subdued during the week, with both the value and volume of trades experiencing a decline. The total traded value decreased by 3.1 percent to QR1,310 million from QR1,352.2 million in the previous trading week.
QNB Group emerged as the top value traded stock during the week, with a total traded value of QR121.1 million, underscoring its dominance in the market despite the overall decline in its share price.
The traded volume also saw a reduction, dropping by 4.3 percent to 527.6 million shares from 551.2 million shares in the previous week. The number of transactions also dipped significantly, by 9.9 percent, to 55,122 compared with 61,184 in the previous week.
Mazaya Real Estate Development was the top volume traded stock during the week, with a total traded volume of 53.6 million shares. This indicates continued interest in the real estate sector, driven by ongoing developments and the government’s focus on infrastructure projects.
Investor sentiment was mixed, with foreign institutions turning bearish during the week, ending with net selling of QR22.7 million, a sharp reversal from the net buying of QR7.1 million observed in the previous week.
This shift in sentiment among foreign investors highlights concerns over global economic conditions and their potential impact on Qatari stocks.
Conversely, Qatari institutions remained bullish, with net buying of QR48.5 million, up from QR12.3 million the previous week. This indicates strong local confidence in the Qatari market, driven by expectations of continued economic growth and government support for key sectors.
Foreign retail investors also turned bearish, recording net selling of QR1.2 million compared with net buying of QR0.7 million in the previous week. Meanwhile, Qatari retail investors continued their trend of net selling, recording QR24.5 million in net sales, up from QR20.2 million the week before. These figures reflect a cautious approach by retail investors, both foreign and local, amidst the ongoing market volatility.
According to an estimate by QNB Financial Services (QNBFS), as of the close of this week, global foreign institutions have been net sellers of Qatari stocks by $27.5 million year-to-date, while GCC institutions have also been net sellers, with $307.7 million worth of Qatari stocks sold. This trend underscores the challenges faced by the QSE in attracting foreign investment amidst global economic uncertainties and regional geopolitical tensions.
Financial analyst Youssef Bouhlaiqa, speaking to Qatar News Agency (QNA), described the QSE index’s performance over the past week as largely stable, with little change observed over the past 30 days. He noted that the general index is currently 6.5 percent lower than its 52-week high on December 31, 2023, but 10.4 percent higher than its low on May 30, 2024.
Bouhlaiqa highlighted the cautious approach adopted by foreign portfolios in their selling activities, characterized by gradual movements in response to changing market conditions. He also pointed out that Qatari portfolios have seen a shift away from buying operations, influenced by expectations of further declines in the market in the coming period.
Looking ahead, the QSE is expected to continue facing volatility as investors remain cautious amidst a complex global economic environment. However, the positive performance of certain sectors, such as education, indicates that there are still growth opportunities within the market. As the market stabilises, investor sentiment may improve, leading to a potential rebound in thecoming months.
