Global apprehensions of the US Federal Reserve set to keep rates high had its ripple effect on the Qatar Stock Exchange (QSE), whose key index plummeted 528 points and capitalisation eroded QR32bn this week.
The foreign institutions were seen net profit takers as the 20-stock Qatar Index tanked 4.4% this week, which saw Qatar Insurance subsidiary Oman Qatar Insurance sign definitive merger pact with Vision Insurance.
The Gulf institutions were seen increasingly into net selling this week which saw Qatar’s automobile sector post an impressive 80.2% year-on-year growth in October 2022.
More than 85% of the traded constituents in the main market were in the red this week which saw the accounting committee of the Qatar Financial Market Authority impose a financial penalty of QR2mn on Dlala Brokerage Company, a subsidiary of Dlala Brokerage and Investment Company.
The Arab institutions’ weakened net buying interests had its miniscule influence in the market this week which saw Baladna extraordinary general assembly meeting approve the acquisition of 75% stake in E-Life Detergent Factory by Baladna Food Industries for QR13.84mn.
An across the board selling pressure, especially the banking sector, was seen largely instrumental in the overall bearish overhang in the market this week which saw a recent policy paper of the International Monetary Fund that said the Gulf economies, whose growth is slated to more than double to 6.5% in 2022 on higher energy prices, should maintain momentum in reforms, irrespective of the level of hydrocarbon prices.
The Islamic index was seen declining slower than the other indices this week which saw a total of 2.43mn Masraf Al Rayan-sponsored exchange traded fund QATR worth QR6.23mn trade across 106 deals.
Trade turnover and volumes were on the increase in both the main and venture markets this week, which saw as many as 0.03mn Doha Bank-sponsored QETF valued at QR0.39mn change hands across 40 transactions.
Market capitalisation was seen eroding QR31.67bn or 4.69% to QR643.02bn on the back of large and midcap segments this week which saw the industrials and banking sectors together constitute more than 65% of the total trade volume in the main market.
The Total Return Index plummeted 4.4%, All Share Index by 4.53% and All Islamic Index by 3.03% this week, which saw no trading of sovereign bonds.
The banks and financial services sector index tanked 5.93%, real estate (4.12%), industrials (3.95%), insurance (1.85%), transport (1.68%), telecom 91.29%) and consumer goods and services (1.15%) this week, which saw no trading of treasury bills.
Major losers in the main market included QNB, Doha Insurance, Commercial Bank, Industries Qatar, Qatar General Insurance and Reinsurance, Qatar Islamic Bank, Doha Bank, QIIB, Masraf Al Rayan, Baladna, Gulf International Services, Mesaieed Petrochemical Holding, Qamco, QLM, Barwa, Ezdan, Mazaya Qatar, Vodafone Qatar, Gulf Warehousing and Nakilat. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value this week.
Nevertheless, Qatar National Cement, Estithmar Holding, Qatar Industrial Manufacturing, Qatar Electricity and Water and Qatar Cinema and Film Distributions were among those gained in the main market this week.
The foreign funds turned net sellers to the tune of QR108.02mn against net buyers of QR201.7mn the week ended December 1.
The Gulf institutions’ net profit booking increased drastically to QR27.7mn compared to QR7.29mn the previous week.
The Arab institutions’ net buying weakened marginally to QR0.02mn against QR0.54mn a week ago.
However, local individuals were net buyers to the extent of QR139.52mn compared with net sellers of QR9.156mn the week ended December 1.
The foreign individuals turned net buyers to the tune of QR10.88mn against net sellers of QR6.31mn the previous week.
The Gulf retail investors were net buyers to the extent of QR1.16mn compared with net sellers of QR2.83mn a week ago.
The domestic funds’ net selling decreased significantly to QR12.43mn against QR166.04mn the week ended December 1.
The Arab individuals’ net profit booking eased perceptibly to QR3.43mn compared to QR10.61mn the previous week.
Total trade volume in the main market shrank 26% to 489.38mn shares, value by 36% to QR1.95bn and deals by 16% to 68,796.
The venture market saw a 19% contraction in trade volumes to 0.47mn equities, 23% in value to QR3.3mn and 27% in transactions to 274.