Qatar Stock Exchange Reports Positive Growth Amidst Mixed Investor Sentiment
The Qatar Stock Exchange (QSE) index rose by 68 points this week, boosted by domestic institutions, despite US tariff concerns. The QSE launched the Al-Nukhba program to support local businesses. Trade turnover has notably decreased, and net selling has increased among foreign and Gulf institutional investors.
The Qatar Stock Exchange (QSE) has displayed a positive trend, with its key index significantly rising by 68 points this week, leading to an increase in market capitalization by QR2.63 billion. Despite ongoing concerns regarding US tariffs, domestic institutions maintained their positions as net buyers, although with reduced intensity. The 20-stock Qatar Index experienced a 0.66% rise during this timeframe. Moreover, the QSE has revamped its trading commission structure by eliminating the minimum commission of QR30 in favor of a fixed proportional rate of 0.00275 without a minimum threshold.
Throughout the week, demand surged in various sectors such as transport, telecom, real estate, and consumer goods, coinciding with the launch of the QSE’s Al-Nukhba program. This initiative is aimed at enhancing the skills of promising family-owned and private enterprises in Qatar. Furthermore, the total assets of commercial banks in Qatar witnessed a year-on-year growth of 3.3%, amounting to QR2.04 trillion in January 2025, influenced by weakened net profit booking among foreign funds.
Conversely, Gulf institutions shifted towards net selling, evidenced by the exchange-traded fund (ETF) activity, which included 0.05 million units of AlRayan Bank-sponsored QATR trading for QR0.12 million across 22 deals. Arab individuals adopted a bearish stance in the market as well. Additionally, foreign retail investors emerged as net sellers, executing the sale of 1,000 sovereign bonds valued at QR10 million in a single transaction.
The Islamic index significantly outperformed other indices during the week, following Doha Bank’s successful global bond issuance of $500 million, which was nearly five times oversubscribed, attracting a majority of investors from Europe and Asia. Market capitalization increased by 0.43% to QR616.07 billion, buoyed by the performance of small and microcap segments, while Doha Insurance and Bupa Global announced a strategic partnership agreement.
Trade activity declined notably in the main market, with a significant reduction in trade turnover and volumes, as treasury bill trading saw no activity. The Total Return Index rose by 0.75%, the All Islamic Index by 0.79%, and the All Share Index by 0.63%, demonstrating resilience in the industrials and banking sectors, which together made up over 54% of total trade volumes. The transport sector index rallied by 3.07%, while the telecommunications, real estate, and consumer goods sectors also recorded commendable performances.
Approximately 57% of the traded constituents experienced gains, including major firms like Qatar General Insurance, Nakilat, and Vodafone Qatar. However, entities such as Gulf International Services and Baladna reported losses during the week. In the venture market, Techno Q saw a decline in share value. Notably, net selling by foreign institutions decreased substantially this week, reaching QR136.98 million, down from QR463.31 million the prior week, while Gulf institutions’ net profit booking surged to QR23.77 million.
Overall, the Qatari stock market exhibited mixed trends, with various investors adjusting their strategies amidst fluctuating conditions. Notably, domestic institutions’ net buying declined significantly to QR191.89 million from QR392.64 million in the previous week. The market overall experienced a steep 46% decrease in trade volumes, reflecting a contraction in investor activity and trade engagement over the week.
In summary, the Qatar Stock Exchange has demonstrated positive growth, with a notable gain in the key index and increased market capitalization despite external concerns. Domestic institutions remain key players, although their intensity in net buying has diminished. The launch of the Al-Nukhba program signals a strong commitment to advancing local enterprises. However, a decline in trade turnover and volumes indicates a need for monitoring investor sentiment and activity in the upcoming weeks.
Original Source: www.gulf-times.com
