This week, the Qatar Stock Exchange (QSE) experienced a strong rally, with the benchmark index rising 1.9 percent to finish over the 10,000-point threshold, bolstered by better regional geopolitical conditions and a resurgence in foreign institutional buying that enhanced investor confidence.
The Qatar Stock Exchange (QSE) exhibited robust performance this week, as the benchmark index jumped 191.56 points, or 1.9 percent, finishing at 10,112.25, recapturing the critical 10,000-point mark due to enhanced investor sentiment, reduced regional tensions, and increased foreign institutional purchases.
In line with the positive trend, the market capitalization of listed firms grew by 2.4 percent, climbing to QR608.2 billion from QR594.2 billion at the conclusion of the last trading week.
Also Read: Saudi-led Consortium Finalizes $55 Billion Deal of EA
Market breadth stayed strongly positive, as 39 out of 54 listed firms finished the week in the green, whereas 13 stocks fell and two were flat, indicating widespread buying enthusiasm across various sectors. Trading actions likewise intensified throughout the week. The overall worth of shares exchanged rose by 8.6 percent to QR1.698 billion, in contrast to QR1.563 billion from the prior week. QNB became the stock with the highest trading activity by value, achieving QR161.8 million in trades.
At the same time, overall traded volume increased by 3.6 percent to 678.2 million shares, compared to 654.8 million shares the previous week. Qatar Aluminium Manufacturing Company (Qamco) led the volume chart, recording 70.5 million shares traded throughout the week. The executed transactions numbered 124,383, a slight decrease from the 126,679 noted in the prior week. Among individual stocks, Qatar General Insurance exhibited the week’s best performance, rising 24.3 percent, whereas Nebras Power was the poorest performer, dropping 3.9 percent.
Investor sentiment experienced a notable uplift due to the reentry of foreign institutional investors, who concluded the week as net purchasers of QR98.3 million, indicating a stark recovery from the net selling of QR86.6 million noted in the prior week.
The substantial foreign inflows highlighted a resurgence of confidence in Qatar’s stock market and its foundational economic strengths.
Also Read: Thai NA President Arrives in Ha Noi for Official Visit
Conversely, Qatari institutions noted net sales of QR42.2 million, in contrast to net purchases of QR40 million during the prior week. Foreign retail investors concluded the week with a net sale of QR5.4 million, whereas Qatari retail investors continued to be net sellers, disposing of QR50.7 million in shares.
Even with ongoing year-to-date net selling by international foreign institutions totaling $84 million and GCC institutions at $13.7 million, the robust institutional inflows for the week indicated a rise in market confidence and a more positive perspective. Analysts indicated that continued de-escalation initiatives and hope regarding the reopening of the Strait of Hormuz, along with Qatar's robust economic fundamentals and solid corporate earnings, are anticipated to bolster the market's upward trajectory in the upcoming weeks.
Financial analyst Mohammed Salem Al Darwish remarked to Qatar News Agency that recent geopolitical events in the region had a direct impact on market performance, with the latest de-escalation initiatives significantly bolstering the stock market. He observed that the QSE index had effectively surpassed the psychologically significant 10,000-point mark and is anticipated to uphold its increases above this level next week, bolstered by encouraging signs of reduced regional tensions.
Also Read: Hana Financial Group Boosts Financial Inclusion Push
Al Darwish noted that more indications of de-escalation and the potential for a deal to reopen the Strait of Hormuz would give extra impetus to the market and aid in maintaining the index’s upward trend. He also emphasized the robustness of the Qatari economy, the solid financial standing of publicly traded companies, and sound corporate fundamentals as crucial elements boosting investor confidence and the market's medium-term outlook.