Positive Trends Persist in Qatar Stock Exchange as Index Climbs 68 Points
The Qatar Stock Exchange has seen its key index rise by 68 points, increasing capitalisation by QR2.63 billion. Domestic institutions remain net buyers, although with reduced intensity. The launch of the QSE’s Al-Nukhba program and sector growth in transportation and real estate highlight positive developments, despite decreased trading volumes and shifts in investor behaviors.
The Qatar Stock Exchange (QSE) has experienced a notable rise, with its key index increasing by 68 points, leading to a capitalisation boost of QR2.63 billion amidst ongoing US tariff concerns. The 20-stock Qatar Index rose by 0.66%, reflecting sustained support from domestic institutions, albeit with reduced intensity. Importantly, the QSE has replaced the minimum trading commission of QR30 with a proportional rate of 0.00275, enhancing trading flexibility.
This week saw increased activity in sectors such as transportation, telecommunications, real estate, and consumer goods on the main bourse. Notably, the QSE introduced the Al-Nukhba programme, aimed at improving the skills of family-owned and private enterprises in Qatar. Additionally, the total assets of commercial banks in Qatar reported a 3.3% annual growth, amounting to QR2.04 trillion as of January 2025.
Despite these positive trends, Gulf institutions exhibited a shift towards net selling, with notable trading patterns of the AlRayan Bank-sponsored exchange-traded fund (QATR) and a bearish trend among Arab individuals in the market. Foreign retail investors also shifted to net selling, trading 1,000 sovereign bonds worth QR10 million.
The Islamic index notably surpassed others, corroborated by the substantial interest in Doha Bank’s recently oversubscribed global bond. Market capitalisation rose by 0.43%, reaching QR616.07 billion, largely driven by gains in small and micro-cap segments, with Doha Insurance announcing a strategic partnership with Bupa Global.
However, trading volumes and turnover saw significant declines this week, with no treasury bill transactions. The Total Return Index, All Islamic Index, and All Share Index reported upward movements, showcasing resilience amidst a challenging trading environment. The industrial and banking sectors accounted for over 54% of total trade volumes, bolstered by strong performances in transport and real estate.
A considerable percentage of traded stocks, approximately 57%, observed gains, with prominent performers including Qatar General Insurance, Nakilat, and Vodafone Qatar. Conversely, several entities like Gulf International Services and Baladna reported declines. Furthermore, net selling by foreign institutions diminished significantly, contrasting with an increase in Gulf institutions’ net profit bookings.
Overall, the trading sentiments among various investor groups shifted, with significant net profit taking observed among foreign individuals and Qatari participants. The domestic institutions saw a noted drop in net buying activity, amidst an overall decline in market trading volumes and a significant decrease in the number of deals this week.
In summary, the Qatar Stock Exchange has maintained a positive trajectory despite external economic pressures, with substantial gains recorded in key sectors. The introduction of the Al-Nukhba programme and adjustments to trading commissions reflect efforts to foster a favorable investment environment. However, fluctuations in investor sentiments, particularly among foreign and Gulf institutions, indicate a cautious outlook moving forward. Continued monitoring of market trends and institutional behaviors will be essential in navigating these complexities.
Original Source: www.gulf-times.com
