Satyendra Pathak
Doha
The Qatar Stock Exchange (QSE) concluded the week on a positive note, with the main index advancing by 72.41 points, or 0.7 percent, to close at 10,520.04. The rally was supported by strong performances across several blue-chip stocks and a generally positive market sentiment, buoyed by both local and global economic signals.
Market capitalisation also saw a modest increase, climbing 0.6 percent to reach QR618.6 billion, compared to QR615.0 billion at the end of the previous trading week. Among the 53 listed companies that were traded during the week, 32 registered gains, 19 declined, and two remained unchanged, reflecting a broadly optimistic investor outlook.
Vodafone Qatar emerged as the standout performer for the week, recording a gain of 9.3 percent. On the other end of the spectrum, Damaan Islamic Insurance Company was the worst performing stock, losing 5.5 percent over the same period.
Key drivers of the index’s weekly rise were Nakilat, QNB Group, and Vodafone Qatar. Nakilat alone added 34.42 index points, while QNB contributed 22.65 points. Vodafone Qatar followed closely, adding 17.12 points to the index.
Despite the index’s upward movement, overall trading activity witnessed a decline. The total traded value for the week dropped by 6.3 percent to QR1,959.7 million, down from QR2,092.4 million in the previous week. Al Rayan Bank led in terms of traded value, registering QR169.1 million worth of transactions.
Traded volume also fell by 2.9 percent to 905.4 million shares, compared with 932.5 million shares in the prior week. The number of transactions was significantly lower, dropping 12.1 percent to 88,298 trades from 100,458. Qatar Aluminum Manufacturing Company (Qamco) topped the volume chart, with 99.9 million shares changing hands.
On the investor side, foreign institutions remained notably bullish, ending the week with net purchases totaling QR177.1 million, up from QR105.2 million in the previous week. In contrast, Qatari institutions recorded net selling of QR133.4 million, reversing their position from net buying of QR15.0 million a week earlier. Foreign retail investors continued to sell, albeit at a slower pace, with net selling of QR2.4 million compared to QR28.2 million in the prior week. Qatari retail investors also maintained a net selling position, amounting to QR41.3 million, a reduction from QR92 million the week before.
Year-to-date data shows that global foreign institutions remain net sellers of Qatari equities by $212.4 million, while institutions from the GCC are also net sellers by $77.8 million, indicating continued outflows at the broader regional level.
Commenting on the market outlook, financial analyst Youssef Bouhlaiqa projected that the QSE index is likely to surpass the 10,700 mark and potentially breach the 11,000-point level by the start of next month. He attributed this anticipated rally to multiple favorable factors, including the recent decision by the US Federal Reserve to keep interest rates steady between 4.25 percent and 4.5 percent. Following suit, the Qatar Central Bank also decided to maintain its current policy rates, a move that is expected to boost investor confidence and liquidity in the local market.
Bouhlaiqa further emphasised the role of both local and foreign portfolios in revitalizing market activity, particularly through investments in companies that posted strong first-quarter results. He also pointed out that current stock valuations are attractive, making them suitable for accumulation by medium- and long-term investors.
The average daily trading volume on the QSE this week was estimated at approximately QR392 million, indicating a stable trading environment despite the overall decline inactivity.
As macroeconomic conditions stabilize and interest rates remain unchanged, the QSE appears well-positioned for further gains in the coming weeks, contingent on continued investor participation and corporate earnings momentum.
