Tribune News Network
Doha
The Qatar Stock Exchange (QSE) ended this week on a positive note, supported by a decision from the Qatar Central Bank (QCB) to cut interest rates. The QSE index closed with a gain of 0.63 percent, adding 65.83 points compared to last week’s closing, reaching 10,464.15 points.
Financial analyst Tamer Hassan attributed this rise to the QCB’s decision to reduce its deposit rate by 55 basis points to 5.2 percent, lending rate by 55 basis points to 5.7 percent, and the repurchase rate (Repo Rate) by 55 basis points to 5.45 percent. These cuts followed the US Federal Reserve’s recent move to lower its interest rates by 50 basis points, marking the first such cut since March 2020. The US Fed’s rates now stand between 4.75 percent and 5 percent.
Hassan emphasised that this rate reduction will positively impact the financial markets by increasing cash flow from bank deposits and reducing the cost of financing. He noted that this could stimulate activity across various sectors, enhancing the performance of companies listed on the stock exchange.
Hassan expects the QSE’s general index to rise to 11,000 points in the near future, citing Qatar’s stable inflation levels and favorable business environment. He also anticipates growth in company profits during the third quarter of 2024.
This week saw a significant rise in liquidity on the QSE, with trading reaching QR2.118 billion compared to QR1.629 billion last week. Trading volume amounted to 923.55 million shares, conducted through 65,344 transactions across all sectors.
The QSE is also witnessing the implementation of the FTSE Russell semi-annual review of emerging market indices, which takes effect today. As part of the review, five Qatari companies — Baladna, Makhazin, Mannai, Qatar National Cement Company, and Qatari Investors Group — were removed from the FTSE index of smaller capital companies.
