QSE sees 62% of stocks in the red; index loses 19 points
The Qatar Stock Exchange (QSE) experienced a downturn on Thursday, with the index losing about 19 points due to selling pressure, notably in the real estate, industrials, and transport sectors. The 20-stock Qatar Index fell by 0.18%, closing at 10,574.59 points, though it reached an intraday high of 10,606 points.
Foreign individual investors emerged as net sellers, while the net buying by foreign institutions weakened, impacting the main market’s year-to-date gains, which now stand at a marginal increase of 0.03%.
Approximately 62% of the traded stocks were in negative territory on the main bourse, with the market’s overall capitalisation decreasing by QR0.94bn, or 0.15%, to settle at QR624.62bn. This decline was primarily driven by losses in the microcap segments.
Gulf retail investors increased their profit-taking activities in the main market. The session witnessed the trade of 0.05 million exchange traded funds (ETFs), valued at QR0.13 million, facilitated by 15 deals on ETFs sponsored by AlRayan Bank and Doha Bank.
Domestic funds continued their trend of being net sellers, albeit with less intensity, while the overall trade turnover and volumes showed a decline. The Islamic index experienced a sharper decline compared to other indices, with no trading of treasury bills observed.
Local retail investors maintained a bearish stance but with less vigor, and there was no trading activity involving sovereign bonds in the main bourse.
The Total Return Index dropped by 0.18%, the All Islamic Index by 0.25%, and the All Share Index by 0.15% in the main market.
The sectoral performance saw the real estate sector index decrease by 1.08%, industrials by 0.7%, transport by 0.23%, and banks and financial services by 0.11%. On a positive note, telecom managed to gain 1.64%, insurance rose by 0.17%, and consumer goods and services increased by 0.14%.
Key decliners in the main market included Qatar Electricity and Water, Barwa, Ezdan, Alijarah Holding, Estithmar Holding, Dukhan Bank, Salam International Investment, Gulf Warehousing, and Milaha. In the junior bourse, Techno Q experienced a decrease in its share value.
Nevertheless, some stocks showed positive movement, such as Lesha Bank, Medicare Group, Mannai Corporation, Vodafone Qatar, and Ooredoo.
The net selling by foreign individual investors significantly increased to QR7.72 million from QR3.06 million on the previous day. Gulf retail investors’ net profit booking rose slightly to QR0.4 million from QR0.32 million.
Conversely, foreign institutions saw a substantial drop in net buying, decreasing to QR16.87 million from QR34.76 million earlier in the week. Meanwhile, Gulf institutions increased their net buying significantly to QR14 million compared to QR2.86 million on the previous day.
Domestic institutional investors saw a marked reduction in net selling, decreasing to QR9.78 million from QR13.79 million. Arab retail investors’ net profit booking declined noticeably to QR6.5 million, down from QR11.72 million earlier this week.
The selling pressure from Qatari individual investors slightly eased, with net selling reducing to QR6.47 million compared to QR8.76 million on Wednesday. The Arab institutions’ participation remained negligible, with no significant net exposure.
The main market experienced a 23% contraction in trade volumes, which fell to 169.12 million shares. The total trade value decreased by 4% to QR446.69 million, although the number of deals increased by 3% to 22,508.
In the venture market, a modest trade of 3,883 equities valued at QR0.01 million occurred across four transactions.
Overall, the market dynamics highlighted a cautious approach from various investor groups, with a noticeable shift in trading patterns among different categories. The decline in indices and market capitalization reflects the broader trends affecting the QSE, particularly within specific sectors. The coming days will be crucial to determine whether the market stabilizes or continues to observe volatility influenced by global and regional economic factors.
