Qatar Stock Exchange (QSE) witnessed three-digit points decline, making it the second worst performer among the Gulf bourses during the week, which otherwise saw FTSE Russell include 22 local stocks in its global secondary emerging market index and the US Federal Reserve maintaining status quo on its key policy rate.

Trade turnover and volumes surged – mainly on insurance, consumer goods and telecom -- during the week, which saw Credit Suisse, a leading global financial services company, view that QSE is still overvalued despite a strong rally over the past one to two months.

Profit booking was seen intense - especially within the realty, industrials and transport counters -- during the week which saw banking, real estate and telecom stocks together constituted about 70% of the total trade volumes.

Micro, mid and small cap equities acted as the major drag in the market, where local retail investors turned bearish and there was increased net selling by domestic institutions during the week.

Non-Qatari individual investors’ net buying also weakened during the week, which saw Islamic stocks declining faster than their conventional peers.

Notwithstanding the strong buying support from foreign institutions, the QSE’s 20-stock Qatar Index settled 1.15% lower during the week which saw Qatar First Bank eye business services, healthcare, education and real estate sectors while expanding into new geographical markets regionally and internationally this year.

The weak weekly performance in the QSE was reflective of the bearish sentiments in the Gulf Cooperation Council equity landscape as Saudi Arabia had fallen 3.69%, Kuwait (0.43%), Muscat (0.2%) and Abu Dhabi (0.09%); while Dubai and Bahrain gained 0.9% and 0.84% respectively.

The Qatari bourse witnessed 0.16% year-to-date losses compared to 13.93% in Saudi Arabia, 6.69% in Bahrain and 3.73% in Kuwait; whereas Dubai stocks soared 11.51%, Muscat (6.66%) and Abu Dhabi (4.36%) during the review period.

Four of the seven sectors reeled under bearish spell in the QSE during the week, which saw Kamco Research say Qatar's banking sector witnessed a buoyant uptrend in credit off-take at the end of second quarter of this year.

Opening the week marginally strong at 10,572 points, the market witnessed a sudden plunge on Monday, ahead of FTSE move to include 22 of local scrips in its emerging market index and the US Fed meeting, to touch a low of 10,153 points.

Thereafter, a week bullish run drove the market up for the next but only to seen weakening on Wednesday. On Thursday, with the global markets witnessing a rally on account of the US Fed’s move to keep the rates unchanged, it was duly reflected in the QSE as well with its key index gaining but overall it lost a sizeable 122 points or 1.15% during the week.

Tracking the main barometer, the 20-stock Total Return Index shed 1.15%, All Share Index (comprising wider constituents) by 1.05% and Al Rayan Islamic Index 1.93% during the week which saw Masraf Al Rayan and QNB dominate the trading ring in terms of volume and value.

Real estate stocks plunged 3.11%, industrials (2.82%), transport (1.85%) and consumer goods (0.34%); whereas telecom gained 0.99%, insurance (0.49%) and banks and financial services (0.39%) during the week which saw Qatar's stock brokerage houses by and large witness sharp decline in trade turnover during the first eight months of this year.

Market capitalisation eroded about 1% or about QR6bn to QR559.63bn as micro, mid, small and large cap equities lost 2.46%, 1.79%, 1.47% and 0.06% respectively during the week.

Mid, small and microcap scrips have year-to-date lost 4.5%, 4.42% and 0.95% respectively; whereas large caps rose 0.67%.

Of the 44 stocks, as many as 31 declined, while only 11 advanced and two were unchanged during the week. Eight of the 13 banks and financial services; seven of eight consumer goods; five of the nine industrials; four each of the five insurers and the four real estate; two of the three transport and one of the two telecom stocks closed lower during the week.

More than 70% of the stocks returned losses with major shakers being Vodafone Qatar, Ezdan, Barwa, Milaha, Aamal Company, Industries Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Alijarah Holding, United Development Company and Qatari German Company for Medical Devices; whereas QNB, Ooredoo, Qatar Islamic Bank, Qatar Insurance, Qatari Investors Group and Islamic Holding Group saw their stocks gain during the week.

Local retail investors turned net sellers to the extent of QR146.04mn against net buyers of QR80.02mn the previous trading week.

Domestic institutions’ net profit booking increased to QR192.16mn compared to QR132.26mn the week ended September 8.

Non-Qatari individual investors’ net buying weakened to QR5.12mn against QR57.16mn the previous trading week.

However, foreign institutions turned net buyers to the extent of QR333.08mn compared with net sellers of QR4.92mn the week ended September 8.

Total volume rose 84% to 59.25mn shares, value by 97% to QR2.85bn and transactions by 12% to 28,600 during the week.

The insurance sector’s trade volume more than tripled to 1.79mn equities and value almost tripled to QR151.46mn on more than doubled deals to 1,515.

The consumer goods sector’s trade volume more than doubled to 2.8mn stocks and value more than tripled to QR216.38mn on 17% jump in transactions to 1,577.

The telecom sector’s trade volume more than doubled to 9.46mn shares and value also more than doubled to QR303.1mn on 32% increase in deals to 4,354.

There was 88% surge in the transport sector’s trade volume to 4.51mn equities, 93% in value to QR141.9mn and 29% in transactions to 2,462.

The real estate sector’s trade volume soared 84% to 11.09mn stocks and value by 92% to QR255.11mn; while deals fell 18% to 3,538.

The industrials sector reported 72% expansion in trade volume to 8.97mn shares, 59% in value to QR525.42mn and 12% in transactions to 6,148.

The banks and financial services sector’s trade volume shot up 69% to 20.63mn equities, value by 88% to QR1.25bn and deals by 8% to 9,006.

In the debt market, there was no trading of treasury bills and government bonds during the week.