QSE upward trend continues with influx of new liquidity

12/12/2025 10:11 AST

The Qatar Stock Exchange (QSE) index closed the current week up 1.780 percent, adding 190.35 points to its tally, to stand at 10,903 points compared to last week's closing.

QSE's figures showed that the banking and financial services sector achieved the largest profits with a growth rate of 2.74 percent, followed by the insurance and telecommunications sectors with 2.61 percent each.

In this context, financial market analyst Youssef Buhulaiqa told Qatar News Agency (QNA) that the QSE is poised to achieve significant gains during the coming period and the beginning of next year, based on positive results that enhance investor confidence and support economic growth opportunities. He expected the upward trend to continue with improved sentiment and the influx of new liquidity into the market.

Bouhaliqa highlighted the QSE's reaction to the announcement of the 2026 state budget and the interest rate cut. He added that lower interest rates encourage borrowing and reduce debt costs, which positively impacts company profitability and increases the attractiveness of stocks.

Conversely, bonds typically become more attractive when interest rates rise, as they are considered safer and offer higher returns. The financial market analyst indicated that the interest rate cut, although usually associated with an economic slowdown, reinforces the importance of adopting a long-term investment vision, especially in light of the current shifts in monetary policies.

He noted that current investor expectations favor stronger performance for the indices, with leading sectors, particularly real estate and banking, clearly benefiting. He also pointed out that small businesses are often the first to benefit from interest rate cuts, whether through lower financing costs or an improved economic cycle in the early stages of recovery.

QNA