Qatar Stock Exchange Sees Bullish Trend Amid US-China Trade Talks

Strategic Insights -

The Qatar Stock Exchange witnessed a positive trend despite the decline in trade volumes, with its key index rising by 0.65% this week. This was largely driven by the foreign funds, which turned bullish on the index. The banking sector saw a higher-than-average demand, with Doha Bank disclosing that a leading domestic investor acquired a portion of Qatar Investment Authority's stake in it. However, local retail investors turned net profit takers in the main market, and Arab individuals were seen increasingly bearish.

Key Takeaways:

  • The QSE-listed firms undertook five indirect acquisitions valued at QR583mn during 2024, according to the Qatar Financial Markets Authority's 2024 annual report.
  • The main bourse saw a total of 10,112 AlRayan Bank-sponsored exchange traded fund QATR worth QR0.02mn trade across nine deals, with more than 51% of the traded constituents in the red.
  • The Gulf retail investors turned net profit takers in the main bourse this week, with as many as 0.1mn sovereign bonds valued at QR1.04bn changing hands across three transactions.
  • The foreign individuals turned bearish in the main bourse this week, with Bait Al Mashura Finance Consultations disclosing that Qatar's Islamic finance sector saw a 4.1% year-on-year growth in assets to QR683bn during 2024.
  • Market capitalisation added QR2.74bn or 0.43% to QR627.07bn on the back of mid and small cap segments this week, with the industrials and banks constituting more than 50% of the total trade volumes.
  • The Total Return Index gained 0.65%, the All Islamic Index by 0.28%, and the All Share Index by 0.65% this week, respectively.
  • The banks and financial services sector index rose 1.41%, while the industrials and real estate sectors declined 0.94% and 0.32% respectively this week.

Statistics:

  • The QSE-listed firms undertook indirect acquisitions worth QR583mn in 2024.
  • The main bourse saw 10,112 AlRayan Bank-sponsored exchange traded fund QATR trades worth QR0.02mn across nine deals.
  • A total of 0.1mn sovereign bonds valued at QR1.04bn changed hands across three transactions in the main bourse this week.
  • Market capitalisation added QR2.74bn or 0.43% to QR627.07bn on the back of mid and small cap segments this week.
  • Trade turnover declined by 14% to QR1.4bn, and deals by 31% to 73,657 in the main market this week.
  • The Total Return Index gained 0.65%, the All Islamic Index by 0.28%, and the All Share Index by 0.65% this week.
  • The banks and financial services sector index rose 1.41%, while the industrials and real estate sectors declined 0.94% and 0.32% respectively this week.

Sources:

  • Qatar Financial Markets Authority's 2024 annual report.
  • Doha Bank.
  • Bait Al Mashura Finance Consultations.
  • A M Best, a global insurance rating agency.
  • Fitch, a global credit rating agency.