Satyendra Pathak
Doha
The Qatar Stock Exchange (QSE) Index ended the week on a positive note, rising by 75 points, or 0.73 percent to close at 10,398.32 points. Market capitalisation saw a notable increase of 0.8 percent, reaching QR602 billion (bn), up from QR597.2 billion at the end of the previous trading week.
Among the 51 companies traded during the week, 24 ended higher, 24 closed lower, and three remained unchanged, reflecting a balanced market sentiment.
Doha Bank was the best-performing stock for the week, posting a gain of 6.3 percent, driven by investor optimism around the bank’s recent strategic initiatives and robust financial outlook. Conversely, QLM Life & Medical Insurance Company (QLM) was the worst performer, dropping by 3.8 percent, impacted by concerns over its earnings outlook.
Key contributors to the index’s rise included QNB Group (QNB), Qatar Islamic Bank (QIB), and Commercial Bank (CBQ). QNB was the leading contributor, adding 56.71 points to the index, followed by QIB with 26.10 points, and CBQ with 13.05 points. Their strong performance underscored the resilience of Qatar’s banking sector amid ongoing global economic uncertainties.
The week saw an increase in traded value by 3.1 percent, reaching QR1,629 million compared to QR1,579.6 million in the previous week, reflecting heightened investor activity. QNB Group (QNB) emerged as the top value-traded stock, with a total traded value of QR230.7 million, signaling strong investor confidence in the stock following its share buyback announcement.
However, traded volume declined by 4.6 percent to 609.9 million shares from 639.6 million shares in the prior week, indicating cautious trading behavior among investors. The number of transactions, on the other hand, rose by 3.4 percent to 63,118, compared to 61,040 in the prior week. Masraf Al Rayan was the top volume-traded stock with a total traded volume of 53.4 million shares, highlighting its appeal among retail investors.
Investor sentiment showed a shift this week, with foreign institutions turning bearish, ending with net selling of QR46.6 million compared to net buying of QR74.4 million in the previous week. Meanwhile, Qatari institutions turned bullish, recording net buying of QR51.7mn against a marginal net selling of QR40,550 the week before.
Foreign retail investors also reversed their stance, ending the week with net buying of QR20.8 million against net selling of QR24.4 million the previous week. In contrast, Qatari retail investors maintained a net selling position, recording QR26 million, albeit lower than the QR49.9 million recorded the previous week.
According to an estimate by QNB Financial Services (QNBFS), year-to-date, global foreign institutions have been net sellers by $22.8 million, while GCC institutions have sold Qatari stocks worth $304 million, reflecting broader regional market dynamics.
Financial analyst Youssef Bouhlaiqa attributed the QSE’s positive performance to QNB’s board of directors’ decision to repurchase shares worth up to QR2.9 billion. The buyback boosted market liquidity and trading volumes, driving up investor confidence.
QNB stock led gains, rising 4.841 percent and trading at the highest value of around QR94 million. This decision not only bolstered QNB’s stock price but also led the banking and financial services sector to rise by 2.36 percent, adding 105.19 points.
Bouhlaiqa highlighted that the share buyback would support market confidence, enhance shareholder value, and improve liquidity. He anticipates that other companies listed on the QSE may follow QNB’s lead, further strengthening the market outlook.
The QSE’s strong finish this week, buoyed by strategic corporate actions and solid performance by key financial institutions, points to a resilient market poised for further growth. Continued investor engagement, combined with proactive decisions by major companies, is expected to sustain positive momentum in the weeks ahead.