The Qatar Stock Exchange (QSE) index rose by 68 points, bolstering market capitalization by QR2.63 billion this week, despite US tariff concerns. Domestic institutions remained net buyers, albeit with reduced intensity, while sector performance highlighted strong demand in transport, telecom, real estate, and consumer goods. Regulation changes and initiatives like the Al-Nukhba programme seek to enhance corporate capabilities. However, trade volumes have notably decreased across the market.
The Qatar Stock Exchange (QSE) demonstrated resilience despite ongoing United States tariff anxieties, as evidenced by a 68-point increase in its key index, resulting in a capitalisation rise of QR2.63 billion this week. While domestic institutions maintained their position as net buyers, their activity diminished in intensity, leading the 20-stock Qatar Index to advance 0.66%. Notably, the QSE introduced a new trading scheme, replacing the previous minimum commission of QR30 with a fixed proportional rate of 0.00275 without any minimum requirement.
Notable sectors, including transport, telecommunications, real estate, and consumer goods, experienced heightened demand during the week. Additionally, the QSE launched the Al-Nukhba programme, a strategic initiative aimed at developing the capacities of promising family-owned and private enterprises within Qatar. Furthermore, foreign funds reduced their net profit bookings, coinciding with a reported year-on-year increase of 3.3% in total assets of commercial banks in Qatar, reaching QR2.04 trillion by January 2025.
Gulf institutions showed a propensity for net selling this week, with a recorded 0.05 million units of the AlRayan Bank-sponsored exchange-traded fund QATR trading at a value of QR0.12 million across 22 transactions. Meanwhile, Arab individual investors exhibited bearish behavior, trading 0.01 million units of the Doha Bank-sponsored exchange-traded fund QETF valued at QR0.08 million through seven deals. Foreign retail investors turned net sellers, exchanging 1,000 sovereign bonds worth QR10 million across a solitary transaction.
The Islamic index outperformed other indices, influenced by Doha Bank’s $500 million global bond, which garnered nearly fivefold oversubscription, attracting 55% of investors from Europe and Asia, with the remainder from the Middle East. Market capitalisation increased by 0.43% to QR616.07 billion, bolstered by growth in small and microcap segments, highlighted by a strategic partnership agreement between Doha Insurance and Bupa Global.
Trade activity witnessed a decline as evidenced by reduced turnover and volumes in the main market, lacking treasury bill transactions. The Total Return Index saw growth of 0.75%, the All Islamic Index increased by 0.79%, and the All Share Index rose by 0.63%, with industrials and banking sectors comprising over 54% of total trade volumes. Sector-specific movements included significant increases in the transport sector index by 3.07%, telecom by 1.78%, and real estate by 1.73%.
In terms of overall performance, 57% of traded constituents gained traction, with major contributors including Qatar General Insurance and Reinsurance, Qatar Cinema and Film Distribution, and Nakilat, among others. Conversely, entities such as Gulf International Services, Baladna, and Mesaieed Petrochemical Holding experienced declines.
Net selling by foreign institutions decreased markedly to QR136.98 million from QR463.31 million in the week ending February 27. Conversely, Gulf institutions exhibited increased net profit bookings totaling QR23.77 million, compared to the previous week’s QR11.96 million. Notably, the trading landscape saw foreign individuals recording net profits of QR12.52 million, contrasting with the prior week’s net buying of QR5.63 million, while the Arab retail investors shifted to net selling, totaling QR9.18 million versus net buying of QR15.99 million. Additionally, both Qatari and Gulf retail investors reported net takings against previous week figures.
In summary, the QSE has shown notable resilience and growth amidst external economic pressures while reflecting varied investor behaviors across different sectors and investment types. The continuing evolution in trading regulations and initiatives like Al-Nukhba appears to position the QSE strategically for future growth.
In conclusion, the Qatar Stock Exchange has displayed noteworthy growth, with a 68-point increase in its key index, facilitated by strategic regulatory changes and sectoral demand. Despite fluctuations in investor behaviors, especially amongst Gulf and foreign institutions, the overall market remains positive, showcasing a commitment to fostering the development of local enterprises through initiatives such as the Al-Nukhba program. The week has illustrated both growth opportunities and challenges, emphasizing the dynamism within Qatar’s financial landscape.
Original Source: www.gulf-times.com
