Reflecting the growing concerns on the nature and longevity of the Middle East conflict, the Qatar Stock Exchange (QSE) saw more than 70% of its constituents end in red, leading to 132 points plunge in key index and more than QR10bn erosion in capitalisation.
The transport, industrials and banking counters witnessed higher than average selling pressure as the 20-stock Qatar Index knocked off 1.28% this week which saw Capital Intelligence, a global credit rating agency, affirm Qatar Islamic Bank’s long-term foreign currency rating and short-term foreign currency rating at ‘AA-’ and ‘A1+’, respectively.
"Economic disruption and rising risks are now guiding the sentiments in the regional markets,” a chief investment officer of a leading financial institution said.
The market was heavily skewed towards shakers in the main market this week which saw Mazaya Qatar, which prepares to handover its first two residential projects in Lusail City this year, now evaluates new investment opportunities as part of the strategy to create sustainable value for shareholders.
The industrials and banking sectors accounted for about 55% of the trading volumes in the main market this week which saw Moody’s, a global rating agency, view that sovereigns, like Qatar, with greater fiscal flexibility, stronger execution capacity and an established record of infrastructure investment are better positioned to absorb repair costs, mobilise temporary supply and accelerate resilience spending.
The Islamic index was seen declining slower than the other indices of the main market this week, which saw a total of 0.03mn AlRayan Bank-sponsored exchange traded fund QATR worth QR0.06mn trade across 24 deals.
Market capitalisation eroded QR10.42bn or 1.71% to QR600.61bn on the back of large and midcap segments this week which saw a total of 0.04mn Doha Bank-sponsored exchange traded fund QETF worth QR0.46mn trade across 39 transactions. Trade turnover and volumes were on the decline in the main market this week which saw as many as 0.23mn sovereign bonds valued at QR2.23bn change hands across six deals.
Trade turnover and volumes were on the increase in the venture market this week which saw no trading of treasury bills.
The Total Return Index tanked 1.28%, the All Share Index by 1.38% and the All Islamic Index by 0.29% this week which saw Estithmar Holding announce the issuance of the fourth tranche, which amounts to QR105mn, as part of its QR3.4bn sukuk programme, listed on the London Stock Exchange.
The transport sector index plummeted 4.76%, industrials (1.89%), banks and financial services (1.29%), real estate (0.63%) and insurance (0.53%); while consumer goods and services gained 0.68% and telecom 0.27% this week.
Of the 54 stocks, as many as 38 declined, while only 15 gained and one was unchanged this week.
Major shakers in the main market included Nakilat, Gulf International Services, Ezdan, Qamco, Doha Bank, QNB, Lesha Bank, Medicare Group, Industries Qatar, United Development Company, Vodafone Qatar and Gulf Warehousing this week. Nevertheless, QLM, Meeza, Ahlibank Qatar, Woqod, Qatar Islamic Bank, Mesaieed Petrochemical Holding, Barwa and Ooredoo were among the movers in the main bourse. In the venture market, Techno Q saw its shares appreciate in value this week.
The main bourse saw 33% contraction in trade volumes to 523.86mn shares and 31% in value to QR1.72bn but on 11% contraction in deals to 121,563 this week.
In the venture market, trade volumes surged 86% to 0.26mn equities, value by 89% to QR0.51mn and transactions by 69% to 61 this week.