The Qatar Stock Exchange gained 68 points this week, achieving capital growth of QR2.63bn. Despite US tariff concerns, the 20-stock Qatar Index rose 0.66%. A shift in the trading commission model was introduced, and demand surged in specific sectors. Notably, some selling pressures emerged from Gulf institutions and foreign investors, while a significant decrease in trading activity was recorded overall.
The Qatar Stock Exchange (QSE) maintained a positive trajectory, reporting a gain of 68 points alongside a capital increase of QR2.63 billion this week. Amid concerns regarding existing US tariffs, the 20-stock Qatar Index rose by 0.66%. The QSE has also changed its trading commission structure, replacing the QR30 minimum with a fixed proportional rate of 0.00275, with no minimum threshold.
Demand was notably strong in the transport, telecom, real estate, and consumer goods sectors during this period. Additionally, the QSE initiated the Al-Nukhba program aimed at enhancing the capabilities of promising family-owned and private companies in Qatar. The assets of commercial banks in Qatar showed a 3.3% year-on-year growth, reaching QR2.04 trillion in January 2025, reflecting some positive market influences despite foreign funds’ weakened net profit bookings.
Throughout the week, Gulf institutions exhibited increasing net selling trends, with small transactions reported for the AlRayan Bank-sponsored exchange-traded fund (ETF) QATR. Arab individuals also took a bearish stance, with minimal changes in the Doha Bank-sponsored ETF QETF. Conversely, foreign retail investors turned into net sellers with significant movements in sovereign bonds.
The Islamic index outperformed others, primarily due to a successful Doha Bank global bond offering, which was oversubscribed five-fold, with 55% of investors from Europe and Asia. The total market capitalization rose by 0.43%, reaching QR616.07 billion, led by small and microcap segments, amidst a strategic agreement between Doha Insurance and Bupa Global.
Trade turnover and volumes declined, witnessing no treasury bills trading. The Total Return Index increased by 0.75%, with sector performance varying significantly: transport rose by 3.07%, while insurance remained unchanged. About 57% of traded constituents made gains, primarily led by firms such as Qatar General Insurance and Reinsurance, along with others.
However, several companies including Gulf International Services and Baladna faced losses this week. Foreign institution net selling decreased to QR136.98 million from QR463.31 million the previous week, while Gulf institutions reported increased profit booking. Arab, foreign, and Qatari individual investors showed varying trends between net selling and profit-taking.
The overall trading activity saw a significant decline, with trade volumes dropping 46% to 510.42 million shares, a 43% reduction in value to QR1.54 billion, and a 26% decrease in transactions to 63,524. These trends indicate a cautious but positive market environment overall, despite various selling pressures.
The QSE demonstrated resilience with a gain of 68 points and a capital increase amidst external tariff concerns. While domestic institutions remained net buyers, overall net selling became evident among Gulf institutions and foreign investors. The week’s significant declines in trading volumes and values indicate a need for cautious optimism in the market, coinciding with the launch of supportive initiatives such as the Al-Nukhba program.
Original Source: www.gulf-times.com
