QSE key index plunges 318 points; M-cap erodes QR19bn

The increasing geopolitical volatilities had its repercussions in the regional markets, including the Qatar Stock Exchange (QSE), whose key index plummeted 318 points and capitalisation eroded QR19bn this week.
The Gulf institutions were increasingly net sellers as the 20-stock Qatar Index plunged 3.15% this week which saw Qatar Islamic Bank report net profit of QR3.06bn in the first nine months (9M) of this year.
An across the board selling – particularly in the transport, real estate and telecom counters – weakened the sentiments in the main market this week which saw Commercial Bank report 9M net profit at QR2.36bn.
The local retail investors turned net profit takers this week which saw Nakilat register net profit of QR1.19bn in January-September 2023.
About 92% of the traded constituents in the main bourse were in the red this week which saw Milaha’s 9M net profit at QR870mn.
"The index remains within the negative territory as it closes below all moving averages on the weekly chart. The first improvement sign would happen once the bulls manage to overcome 10,430 points, also found here the upper end level of the one-year descending trend line, which will then increase the chances of targeting 11,215 point," a Kamco Invest technical analysis note had said.
On the negative side, only below the strong support line at 9,585 points could shift the tone to a deeper bearish move and lead to 9,000 points, it said, adding medium-term and long-term investors can re-enter the market at levels higher than 11,150 points and 11,270 points, respectively.
The Arab individuals were increasingly net sellers in the main bourse this week, which saw Ahlibank Qatar’s 9M net profit at QR615mn.
The Arab institutions were seen increasingly into net profit booking in the main bourse this week which saw Lesha Bank register net profit of QR66.8mn in January-September 2023.
The Islamic index declined slower than the other indices in the main market this week which saw a total of 0.04mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.08mn trade across 14 deals.
The Gulf individuals continued to be net sellers but with lesser intensity in the main market this week which saw as many as 0.08mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.75mn change hands across 39 transactions.
Market capitalisation eroded QR18.8bn or 3.15% to QR578.54bn on the back of large and midcap segments this week which saw the industrials and banks together constitute about 59% of the total trade volume in the main bourse.
The Total Return Index tanked 3.15%, the All Share Index by 3.08% and the All Islamic Index by 2.95% this week, which saw no trading of sovereign bonds.
The transport sector index plummeted 6.56%, realty (5.06%), telecom (3.67%), banks and financial services (3.35%), consumer goods and services (2.16%), industrials (1.49%) and insurance (1.21%) this week which saw no trading of treasury bills.
Major shakers in the main market included Alijarah Holding, Qatari Investors Group, Qatari German Medical Devices, Mazaya Qatar, Ezdan, Commercial Bank, QNB, QIB, Doha Bank, Masraf Al Rayan, Ooredoo, Nakilat, Qamco, QLM, Milaha, Baladna and Gulf Warehousing. In the venture market, both Al Faleh Educational Holding and Mahhar Holding saw their shares depreciate in value this week Al Khaleej enter into pact with the US-based Cigna Healthcare for providing health insurance in Qatar.
Nevertheless, Zad Holding, Meeza and Qatar Islamic Insurance were the gainers in the main bourse this week which saw an Ernst and Young report that said high prices of liquefied natural gas led Qatar's banking sector register a 22% growth in net earnings to QR2.8bn in 2022.
The Gulf institutions’ net selling increased substantially to QR43.39mn compared to QR17.23mn the week ended October 12.
The local retail investors turned net sellers to the tune of QR23.06mn against net buyers of QR16.27mn a week ago.
The Arab individual investors’ net profit booking grew substantially to QR21.58mn compared to QR0.36mn the previous week.
The Arab institutions turned net selling rose marginally to QR0.13mn against QR0.09mn the week ended October 12.
However, the foreign funds’ net buying strengthened considerably to QR59.92mn against QR40.92mn a week ago.
The domestic institutions were net buyers to the extent of QR37.35mn compared with net sellers of QR14.15mn the previous week.
The Gulf individuals’ net selling decreased drastically to QR5.343mn against QR21.04mn the week ended October 12.
The foreign individuals’ net profit booking shrank markedly to QR3.78mn compared to QR4.33mn a week ago.
The main market witnessed 21% shrinkage in trade volumes to 716.63mn shares, 13% in value to QR2.13bn and 2% in deals to 84,756 this week.
In the venture market, trade volumes more than doubled to 8.61mn equities and value more than doubled to QR12.4mn on more than doubled transactions to 864.