Satyendra Pathak
Doha
The Qatar Stock Exchange (QSE) Index recorded a significant gain of 188.43 points, or 1.8 percent, during the trading week to close at 10,660.12 points. This rise was accompanied by an increase in market capitalisation, which climbed 1.7 percent to QR623.4 billion (bn) from QR613.1bn at the end of the previous week. Out of the 52 traded companies, 43 concluded the week with gains, while nine ended lower.
Qatar Aluminum Manufacturing (Qamco) emerged as the best-performing stock of the week, achieving a notable gain of 9.1 percent. In contrast, Qatar Cinema & Film Distributing posted the largest loss, declining by 5.9 percent. The robust performance of Qamco reflects investor confidence in the aluminum sector, which has seen steady demand across regional and international markets.
Industries Qatar (IQ), Ooredoo and Commercial Bank (CBQ) were the primary drivers of the weekly index rise. IQ contributed 47.73 points, highlighting its role as a key player in the petrochemical sector. Ooredoo’s addition of 31.06 points underscores the growing influence of the telecommunications giant, while CBQ’s 30.03-point contribution reflects the strength of Qatar’s banking sector.
Traded value during the week saw a substantial increase of 30.3 percent, reaching QR2,464.5 million compared to QR1,890.8 million in the previous week. This sharp rise indicates a surge in investor activity, driven by optimism surrounding economic growth and corporate earnings. QNB Group (QNB) was the most traded stock by value, with a total traded value of QR316.3 million, reaffirming its position as a favorite among institutional and retail investors alike.
Traded volume experienced an even sharper rise, up 52.8 percent to 1,025.3 million shares from 670.8 million shares in the privious week. This marked increase highlights enhanced liquidity in the market, which is vital for maintaining investor confidence. The number of transactions also increased by 15.8 percent, totaling 83,287 compared to 72,381 in the previous week. Ezdan Holding led in traded volume, with a total of 166.5 million shares exchanged, indicating strong interest in the real estate sector.
Foreign institutions turned net buyers, recording net purchases of QR142.2 million compared to net sales of QR68.4 million in the previous week. This shift suggests a renewed interest in Qatari stocks among global investors, likely driven by attractive valuations and strong macroeconomic fundamentals. Qatari institutions also maintained a bullish stance, with net buying of QR81 million, albeit slightly lower than the QR92 million recorded in the previous week.
Conversely, foreign retail investors ended the week with net sales of QR26.6 million, an increase from the net sales of QR6.9 million the previous week. This indicates some profit-taking activity. Qatari retail investors showed significant net selling activity, totaling QR196.6 million, up from QR17 million in the previous week, reflecting a cautious approach among domestic retail participants.
Year-to-date (YTD), global foreign institutions have been net sellers of Qatari stocks by $9.4 million. Meanwhile, GCC institutions have been net buyers, acquiring Qatari stocks worth $16.1 million. These contrasting trends highlight the differing perspectives of regional and international investors on the outlook for Qatar’s equity market.
The banking and financial services sector remained a standout performer, driven by gains in key stocks like QNB Group and Commercial Bank. The industrials sector, led by Industries Qatar, also made significant contributions to the index’s rise. Meanwhile, the telecommunications sector saw increased activity, with Ooredoo playing a pivotal role.
With foreign institutions showing renewed interest and key sectors demonstrating resilience, the Qatar Stock Exchange is poised for sustained growth. Market analysts predict that favourable economic policies, coupled with strong corporate earnings, will continue to attract investors in the coming weeks.
Additionally, ongoing developments in Qatar’s real estate, industrial, and telecommunications sectors are expected to further bolster market performance, making the QSE an attractive destination for both domestic and international investors.