Geopolitical uncertainties dampen sentiments as index loses 80 points; but movers outnumber shakers

22/03/2025 08:01 AST

Escalating regional geopolitical tensions had its impact on the Qatar Stock Exchange (QSE), which saw its key index lose as much as 80 points and capitalisation melt around QR3bn this week.

The foreign funds squared off their position as the 20-stock Qatar Index shed 0.76% this week, which saw the Qatar Central Bank keep the rates unchanged, following the US Federal Reserve's move to maintain status quo on its benchmark rates.

The banking and telecom counters witnessed higher than average selling pressure in the main bourse this week which saw a PricewaterhouseCoopers report that said Qatar's $500mn funding deal to expand artificial intelligence and data centre infrastructure would strengthen Middle East's digital transformation.

The domestic institutions' weakened net selling had its influence on the main market this week which saw the Institute of Chartered Accountants of the England and Wales (ICAEW) report that forecast Qatar's economy to expand by 2.1% this year with growth expected to more than double in 2026 as additional liquefied natural gas capacity comes online.

The local individual investors' lower net buying also had its say on the main bourse this week which saw a total of 0.05mn AlRayan Bank-sponsored exchange traded fund QATR worth QR0.11mn trade across 21 deals.

The foreign retail investors' net buying was seen slackening in the main market this week which saw as many as 0.02mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.17mn change hands across 23 transactions.

The Gulf institutions continued to be net profit takers but with lesser intensity in the main bourse this week which saw no trading of sovereign bonds.

The Islamic index was seen declining slower than the other indices of the main market this week, which saw Barwa outline its 2025 strategic plan that will help increasing revenues - including commencing development of the Madinatna Schools project and the first phase of the Barwa Hills project - and rationalising expenditures.

Market capitalisation eroded QR2.96bn or 0.49% to QR605.84bn on the back of small and microcap segments this week which saw Nakilat celebrate steel cutting ceremony marking the commencement of construction of six gas carriers at HD Hyundai Samho (HSHI) shipyard in South Korea.

Trade turnover and volumes were on the increase in the main market; while the junior market's trade volume and value were on the decline this week which saw no trading of treasury bills.

The Total Return Index shrank 0.64%, the All Islamic Index by 0.39% and the All Share Index by 0.58% this week which saw the consumer goods, real estate and banking sectors together constitute more than 72% of the total trade volumes.

The banks and financial services sector index tanked 1.33%, telecom (0.89%) and insurance (0.27%); while consumer goods and services gained 1.1%, realty (0.7%), transport (0.27%) and industrials (0.26%) this week which saw Techno Q, celebrating the 29th anniversary this year, all set make further inroads into the neighbouring countries as it seeks to strengthen its position as the region's leading systems integrator.

Major losers in the main market included Mannai Corporation, Qatari Investors Group, Al Khaleej Takaful, Beema, QIIB, QNB, Qatar Islamic Bank, Doha Bank, Doha Insurance, Qatar Insurance and Ooredoo this week which saw the ICAEW view that Doha's recent transformative strategies - including the revamp of bankruptcy laws and public private partnership (PPP) - will help "unlock" stronger inflows of foreign direct investments.

Nevertheless, about 60% of the traded constituents in the main bourse extend gains with major movers being Qatar German Medical Devices, Estithmar Holding, Medicare Group, Al Faleh Educational Holding, Qatar Islamic Insurance, Lesha Bank, Dukhan Bank, Salam International Investment, Widam Food, Aamal Company, Mesaieed Petrochemical Holding and Qamco.

In the venture market, Techno Q saw its shares appreciate in value this week.

The foreign institutions' net selling increased significantly to QR222.6mn compared to QR170.13mn the week ended March 13.

The domestic institutions' net buying declined noticeably to QR185.4mn against QR210.2mn the previous week.

The Qatari individual investors' net buying weakened perceptibly to QR26.7mn compared to QR30.64mn a week ago.

The foreign retail investors' net buying shrank markedly to QR2.55mn against QR12.02mn the week ended March 13.

The Gulf individual investors' net buying eased marginally to QR0.75mn compared to QR1.77mn the previous week.

However, the Arab retail investors turned net buyers to the tune of QR11.83mn against net sellers of QR10.83mn a week ago.

The Arab funds were net buyers to the extent of QR0.05mn compared with no major net exposure the week ended March 13.

The Gulf institutions' net profit booking declined drastically to QR4.63mn against QR73.38mn the previous week.

The main market witnessed a 22% surge in trade volumes to 861.14mn shares and 16% in value to QR2.22bn on more than doubled deals to 137,814 this week.

In the venture market, trade volumes plummeted 75% to 0.11mn equities, value by 75% to QR0.31mn and transactions by 65% to 37.

Gulf Times