Qatar Stock Exchange Shows Positive Growth Despite Global Economic Concerns

The Qatar Stock Exchange recorded a positive week, with the index increasing by 68 points and market capitalization rising by QR2.63 billion. Despite the diminished intensity of domestic institutional buying, sectors like transport and telecom saw heightened interest, while foreign funds exhibited net selling. Trade volume and value decreased significantly, reflecting cautious investor sentiment amid global economic uncertainties.

The Qatar Stock Exchange (QSE) demonstrated a positive performance this week, with its key index increasing by 68 points and market capitalization rising by QR2.63 billion, despite existing concerns surrounding US tariffs. The 20-stock Qatar Index climbed by 0.66%. Noteworthy, the QSE abolished the minimum trading commission of QR30, introducing a proportional rate of 0.00275 without a minimum threshold.

There was increased demand in the transport, telecom, real estate, and consumer goods sectors, driven by the launch of the Al-Nukhba program, aimed at enhancing the skills of family-owned and private enterprises in Qatar. Foreign funds exhibited reduced net profit bookings this week, while total assets of Qatar’s commercial banks experienced a year-on-year growth of 3.3%, reaching QR2.04 trillion by January 2025.

Gulf institutions shifted towards net selling, evidenced by trades in the AlRayan Bank-sponsored exchange-traded fund QATR. Similarly, Arab individuals exhibited bearish behavior in the market, with some movements observable in the Doha Bank-sponsored exchange-traded fund QETF. Foreign retail investors also became net sellers, participating in trades worth QR10 million of sovereign bonds.

The Islamic index notably outperformed other indices, driven by a $500 million global bond from Doha Bank, which saw strong investor interest, particularly from Europe and Asia. Market capitalization increased by 0.43% to QR616.07 billion, underpinned by growth in microcap and small segments, alongside a strategic partnership between Doha Insurance and Bupa Global.

Volumes and turnover in the main market decreased markedly, with no treasury bills being traded. The Total Return Index saw a gain of 0.75%, while the All Islamic Index and All Share Index increased by 0.79% and 0.63%, respectively. The industrials and banking sectors constituted over 54% of overall trade volumes this week.

As for sector performance, the transport sector index surged by 3.07%, followed by telecom at 1.78%, and real estate at 1.73%. Nevertheless, certain companies faced declines, including Gulf International Services and Baladna. Overall, approximately 57% of traded constituents generated gains, highlighted by major players such as Qatar General Insurance and Vodafone Qatar.

Conversely, foreign institutions’ net selling showed a significant decline to QR136.98 million from QR463.31 million the prior week. Despite this, Gulf institutions increased net profit booking to QR23.77 million from QR11.96 million. Other retail investors such as Qatari and Gulf individuals exhibited net selling behavior, reflecting a cautious market sentiment.

The volume of trades in the main market experienced a 46% drop, encompassing 510.42 million shares with a 43% reduction in value to QR1.54 billion, alongside a 26% decline in transaction numbers to 63,524. Overall, this week highlighted both resilience and caution among various segments of the QSE as market participants navigate evolving economic conditions.

The Qatar Stock Exchange displayed a commendable performance despite global economic challenges, with the main index rising by 68 points. The market’s resilience is reflected in increased demand across several sectors, and the introduction of new initiatives. However, the decline in trade volume and net selling by various investor categories suggest a cautious outlook moving forward. Sustained interest in Islamic finance instruments and strategic partnerships augur well for future market stability.

Original Source: www.gulf-times.com