Qatar Stock Exchange Plunges Amid Regional Geopolitical Tensions and Unstable Oil Markets

Strategic Insights -

The Qatar Stock Exchange (QSE) experienced a significant decline this week, with a 311-point drop and a QR16 billion erosion in capitalization. The regional geopolitical tensions were a major concern, leading to a 2.89% plunge in the 20-stock Qatar Index. The foreign funds were seen as net profit takers, while the Gulf individuals and institutions were bearish. However, the domestic institutions turned net buyers, and the Arab individuals were increasingly net buyers. The main market saw a 30% decline in trade volumes, a 3% drop in value, and a 13% decrease in deals.

Key Takeaways:

  • The Qatar Stock Exchange (QSE) suffered a 311-point decline and a QR16 billion erosion in capitalization this week.
  • The 20-stock Qatar Index plunged 2.89% due to regional geopolitical tensions.
  • Fitch, an international credit rating agency, views Qatar's banking sector as having less pressure for consolidation in the Gulf region.
  • The foreign funds were net profit takers this week, while the Gulf individuals and institutions were bearish.
  • The domestic institutions turned net buyers, and the Arab individuals were increasingly net buyers.
  • The main market saw a 30% decline in trade volumes, a 3% drop in value, and a 13% decrease in deals.
  • The telecom, banking, and transport counters experienced higher than average selling pressure this week.
  • Milaha signed a strategic pact with Fincantieri for cooperation in areas such as marine services, project management, and technology integration.
  • International Islamic Liquidity Management Corporation stated that Qatar's Islamic liquidity management sector is slated to evolve rapidly in the near-to-medium term.
  • The Gulf institutions' net buying eased significantly to QR32.98mn compared to QR121.39mn a week ago.
  • The domestic funds were net buyers to the tune of QR262.9mn compared with net sellers of QR63.47mn the week ended May 22.

Statistics:

  • The 20-stock Qatar Index plunged 2.89% this week.
  • The QSE suffered a QR16 billion erosion in capitalization this week.
  • The main market saw a 30% decline in trade volumes to 1.04 billion shares.
  • Trade value declined by 3% to QR3.09 billion.
  • Deals decreased by 13% to 115,643.
  • The foreign funds were net sellers to the tune of QR357.99mn compared with net buyers of QR61.44mn the previous week.
  • The Gulf individual investors' net selling grew perceptibly to QR2.14mn against QR1.5mn the week ended May 22.
  • The Gulf institutions' net buying eased significantly to QR32.98mn compared to QR121.39mn a week ago.

Sources:

  • Qatar Stock Exchange (QSE)
  • Fitch, an international credit rating agency
  • International Islamic Liquidity Management Corporation
  • Milaha
  • Standard and Poor's, a global credit rating agency
  • AlRayan Bank
  • QNB
  • QIIB
  • Lesha Bank
  • Qatar Oman Investment
  • Baladna
  • Industries Qatar
  • Qamco
  • Mesaieed Petrochemical Holding
  • Medicare Group
  • Al Faleh Educational Holding
  • Mazaya Qatar
  • United Development Company
  • Milaha
  • Nakilat