Profit booking pressure drags QSE below 10,000 points; M-cap erodes QR5bn

The Qatar Stock Exchange (QSE) Monday lost 57 points and its key index closed below 10,000 points, mainly dragged by telecom, insurance and industrials sectors.

The domestic institutions were seen net sellers as the 20-stock Qatar Index declined 0.56% to 9,998.54 points.

“A close below 9,585 points would deepen the bearish tone and lead to 9,000 points,” a Kamco technical analysis had said.

The market, which was skewed towards decliners, saw its index recover from an intraday low of 9,942 points.

The foreign individual investors were seen net profit takers in the main market, whose year-to-date losses widened to 6.39%.

However, the local retail investors were increasingly net buyers in the main bourse, whose capitalisation eroded QR5.01bn or 0.86% to QR578.93bn, mainly on account of small and microcap segments.

The Gulf institutions were also increasingly into net buying in the main market, which saw a total of 0.04mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.33mn changed hands across 24 deals.

The Gulf individuals were seen net buyers in the main bourse, which saw no trading of sovereign bonds.

The Islamic index was seen declining slower than the other indices in the main market, which saw no trading of treasury bills.

The Total Return Index lost 0.56%, the All Share Index by 0.71% and the Al Rayan Islamic Index (Price) by 0.24% in the main bourse, whose trade turnover and volumes were on the increase.

The telecom sector index tanked 3.45%, insurance (1.98%), industrials (1.17%), and banks and financial services (0.61%); while transport gained 0.64%, consumer goods and services (0.5%) and real estate (0.1%).

As much as 49% of the traded constituents in the main market were in the red with major losers being Qatar Insurance, Mekdam Holding, Ooredoo, Mannai Corporation, Industries Qatar, QNB, Qatari German Medical Devices and Vodafone Qatar.

Nevertheless, Qatar General Insurance and Reinsurance, Widam Food, QIIB, Doha Insurance, Dukhan Bank, Baladna, Estithmar Holding and Nakilat were among the gainers in the main market.

The domestic institutions turned net sellers to the tune of QR2.71mn compared with net buyers of QR15.61mn on April 16.

The foreign individuals were net sellers to the extent of QR0.47mn against net buyers of QR2.27mn the previous day.

However, the local retail investors’ net buying increased substantially to QR9.82mn compared to QR0.48mn on Sunday.

The Gulf institutions’ net buying strengthened markedly to QR7.76mn against QR5.99mn on April 16.

The Gulf retail investors were net buyers to the tune of QR0.88mn compared with net sellers of QR0.68mn the previous day.

The Arab institutions’ net buying amounted to QR0.03mn, same as that on Sunday.

The foreign institutions’ net selling decreased perceptibly to QR10.3mn compared to QR12.58mn on April 16.

The Arab individuals’ net profit booking weakened markedly to QR5.02mn against QR11.12mn the previous day.

In the main market, trade volumes rose 4% to 88.41mn shares, value by 32% to QR283.5mn and deals by 44% to 13,208.