Future Rate Cut Concerns Play Spoilsport As QSE Tanks 349 Points M-Cap Erodes Qr20bn

(MENAFN- Gulf Times)

Market Eye

Concerns on future rate cuts by the US Federal Reserve had its overarching influence in the Qatar Stock Exchange (QSE), which closed the week in the negative, after remaining bullish for four consecutive weeks, with key index plummeting 349 points and capitalisation eroding about QR20bn.
Foreign institutions were seen net profit takers as the 20-stock Qatar Index plunged 3.09% this week which saw an Institute of Chartered Accountants of England and Wales forecast suggest that Qatar's gross domestic product growth to nearly double to 4.8% in 2026 on "significant" liquefied natural gas output through North Field expansion.
More than 60% of the traded constituents were in the red this week which saw Qatar draft new legislations, including an updated public–private partnership law, a foreign investment law and a bankruptcy law, to help the private sector, which otherwise has been saving QR100mn annually through various industrial incentives.
The Gulf institutions turned bearish in the main market this week which saw Ooredoo Group sell a minority 6% stake in Meeza-QSTP to certain funds managed by Fiera Capital (UK) at the current market price.
The Arab individuals were seen net sellers in the main bourse this week which saw Qatar Industrial Manufacturing Company sign a pact to acquire a 7% stake held by Qatar Oman Investment Company in the Qatar Aluminum Extrusion Company.
However, the domestic funds turned net buyers in the main market this week which saw the Qatar Central Bank's second phase of primary dealer framework record 29 deals valued in excess of QR2.8bn to date.
The local retail investors were seen bullish in the main bourse this week which saw a total of 0.02mn AlRayan Bank-sponsored exchange traded fund QATR worth QR0.06mn trade across 14 deals.
The foreign individuals turned net buyers in the main market this week which saw 0.01mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.08mn change hands across 17 transactions.
The Islamic index was seen declining slower than the other indices of the main market this week, which saw as many as 0.21mn of sovereign bonds valued at QR2.12bn trade across four deals.
Market capitalisation plunged QR19.86bn or 2.94% to QR656.75bn on the back of large and midcap segments this week which saw no trading of treasury bills.
Trade turnover and volumes were on the decrease in the main and venture markets this week which saw the consumer goods and realty sectors together constitute more than 61% of the total trade volumes.
The Total Return Index plummeted 3.09%, the All Share Index by 3.11% and the All Islamic Index by 2.01% this week which saw Al Mahhar Holding Company find place in the FTSE Russell Global Equity Index Series.
The banks and financial services sector index plunged 4.62%, industrials (2.16%), transport (1.62%), real estate (1.11%) and consumer goods and services (0.35%); while telecom and insurance gained 0.54% and 0.27% respectively this week which saw Mekdam Holding Group bag a QR204mn contract from Qatar Fertiliser Company.
The market was skewed towards shakers with as many 32 constituents reporting declines, while 16 gained and five were unchanged this week which saw QTerminals, in which Milaha holds 49% stake, work towards sustainability for all its future acquisitions, as it aims to broaden the footprint in the strategic global markets.
Major losers in the main market included QNB, Widam Food, Dukhan Bank, Qatar Islamic Bank, Industries Qatar, Commercial Bank, Doha Bank, AlRayan Bank, Mannai Corporation, Qatar National Cement, Gulf International Services, Qamco, United Development Company, Barwa and Nakilat. In the junior bourse, Techno Q saw its shares depreciate in value this week which saw Gulf Warehousing Company establish a branch of GWC Energy Logistics (Dubai) in Sharjah as part of the company's expansion in the logistics sector across the UAE.
Nevertheless, Medicare Group, Gulf Warehousing, Estithmar Holding, Baladna, Mazaya Qatar and Vodafone Qatar were among the movers in the main market this week which saw QNB Group completes an inaugural benchmark 750mn euros green bond issuance under its medium term note programme in the international capital markets.
The foreign institutions turned net sellers to the tune of QR138.69mn compared with net buyers of QR260.96mn the previous week.
The Gulf institutions were net sellers to the extent of QR26.2mn against net buyers of QR9.11mn the week ended September 18.
The Arab individual investors were net sellers to the tune of QR9.25mn compared with net buyers of QR3.72mn a week ago.
However, the domestic funds turned net buyers to the extent of QR83.9mn against net sellers of QR159.27mn the previous week.
The Qatari individuals were net buyers to the tune of QR73.37mn compared with net sellers of QR101.56mn the week ended September 18.
The foreign retail investors turned net buyers to the extent of QR11.38mn against net profit takers of QR8.39mn a week ago.
The Gulf individuals were net buyers to the tune of QR5.26mn compared with net sellers of QR4.73mn the previous week.
The Arab institutions' net buying expanded marginally to QR0.23mn against QR0.17mn the week ended September 18.
The main market saw 16% contraction in trade volumes to 886.29mn shares, 20% in value to QR2.33bn and 7% in deals to 112,681 this week.
In the venture market, trade volumes shrank 81% to 0.45mn equities, value by 81% to QR1.15mn and transactions by 60% to 94 Stock Exchange QSE Qatar Index

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