Qatar stocks buoyed by long-term outlook amid robust trading volumes

29/08/2025 02:39 AST

The Qatar Stock Exchange (QSE) showcased resilience this week, with robust trading volumes underscoring investor confidence despite a mild correction in the benchmark index. Analysts warn that upcoming global monetary policy moves and fluctuations in oil prices will play a decisive role in shaping the QSE outlook in the coming weeks.

The session closed yesterday with the general index falling 66.69 points, or 0.58 percent, to settle at 11,338.81. Trading activity was robust, with 139.4 million shares changing hands across 17,159 transactions, generating a total value of QR344.96m.

Market breadth was evenly split, with 20 companies posting gains, 20 recording declines, and 13 finishing unchanged. Market capitalisation fell slightly to QR677.68bn, down from QR679.78bn in the previous session. The decline comes after an eight-week rally that saw the benchmark climb from 10,685 points to 11,649 points.

Speaking to The Peninsula, Ramzi Qasmieh, Investment Manager at Qatar Securities Company, noted that the pullback was widely expected as part of a profit-taking phase.

"This correction allows the index to recalibrate its technical indicators and build momentum for the next phase," Qasmieh said, adding that maintaining levels above 11,170 points would be key for the index to attempt a retest of the 11,750 range.

Banks continue to drive the market, accounting for more than half of the index's weight. The financial sector index has surged to a three-year high of 5,700 points, boosted by strong foreign portfolio inflows into banks and semi-annual cash dividends.

However, the market analyst believes profit-taking may soon taper off. "Most leading stocks are reaching new price levels, and the upcoming trajectory of the QSE will be shaped by global factors, most notably, the US Federal Reserve's interest rate decisions, along with volatility in oil and commodity prices," he explained.

Foreign funds, once strong buyers in June, July, and early August, have turned net sellers in recent weeks, while Gulf and Arab investors have stepped in as net buyers. The adjustment comes after the MSCI index review, which took effect on August 26, resulting in minor weight reductions for certain Qatari companies.

As mid-year earnings reports roll in, trading has taken on a more sideways pattern. While the QSE's correlation with global markets has weakened, Qasmieh cautioned that major monetary policy decisions or political shocks could still impact regional markets.

Looking ahead, the stock market expert expressed optimism for the second half of the year. Qasmieh added, "We expect improved company earnings, led by industrial firms benefiting from stronger global commodity prices, alongside modest profit growth in the transportation sector thanks to the recovery in maritime traffic."

The Peninsula