Foreign funds exert selling pressure as 71% of QSE stocks end in red

Foreign institutional investors accelerated profit-taking on the Qatar Stock Exchange, pushing the 20-stock Qatar Index down 0.99% to 11,226.84 points after touching an intraday high of 11,367. The risk-off tone, ahead of key US inflation data, triggered broad-based selling and shaved roughly 112 points from the benchmark, wiping about QR7bn from market capitalisation.

Market snapshot

Heavier selling in industrials, insurance, and banks weighed on the main market, narrowing year-to-date gains to 6.2%. Gulf institutions turned bearish, and overall capitalisation fell by QR6.93bn (about 1.02%) to QR670.75bn, led primarily by large- and small-cap names.

Domestic institutions pared their net buying substantially, while local retail investors turned net buyers amid rising turnover and volumes. The Islamic index declined less than the broader gauges, and there was no trading in treasury bills or sovereign bonds during the session.

Index performance

• Total Return Index: -0.99%
• All Share Index: -1.06%
• All Islamic Index: -0.59%

Sector moves

• Industrials: -1.61%
• Insurance: -1.26%
• Banks and Financial Services: -1.25%
• Transport: -0.27%
• Consumer Goods and Services: -0.24%
• Telecom: +0.25%
• Real Estate: +0.12%

Winners and laggards

About 71% of traded constituents finished lower. Notable decliners included Meeza, Industries Qatar, QNB, Qatar Insurance, Qatar Electricity and Water, Qatar Islamic Bank, Doha Bank, AlRayan Bank, Gulf International Services, QLM, Nakilat, and Gulf Warehousing.

Gains in Ezdan, Medicare Group, Milaha, Vodafone Qatar, Inma Holding, and Mazaya Qatar helped limit downside. In the venture market, Techno Q advanced.

Flows and investor positioning

• Foreign institutions increased net profit-taking to QR50.95mn, up from QR31.06mn the previous session.
• Gulf institutions flipped to net sellers at QR1.6mn after being net buyers of QR8.3mn on August 27.
• Domestic institutions’ net buying fell to QR18.76mn from QR31.4mn.
• Foreign individuals’ net buying eased to QR1.18mn from QR1.86mn.
• Qatari individuals turned net buyers at QR29.75mn versus net sellers of QR6.35mn on August 27.
• Arab retail investors shifted to net buyers at QR2.7mn from net sellers of QR3.38mn.
• Gulf individuals were marginal net buyers at QR0.18mn versus net sellers of QR0.59mn previously.
• Arab institutions showed no significant net exposure, compared with net profit-taking of QR0.18mn on August 27.

Liquidity and trading activity

Trading momentum improved in the main market, with volumes up 2% to 143.38mn shares, value up 4% to QR359.1mn, and the number of deals rising 5% to 18,014. Exchange traded funds sponsored by AlRayan Bank and Doha Bank saw 2,966 units change hands across eight deals, totaling about QR0.02mn.

In the venture market, 1.63mn shares worth QR4.55mn were traded across 275 transactions.

Overall, the session reflected risk aversion led by foreign funds, concentrated pressure in heavyweight sectors, and selective interest from local retail buyers. While telecom and real estate posted modest gains, breadth remained weak as most constituents ended in the red.