Qatar Stock Exchange (QSE) index closed this week down 2.41%, losing 255.7 points to settle at 10,335 points, compared to last the week. The decline was driven by pressure across most sectors, with the banking and financial services sector experiencing the steepest drop at 2.67%, followed by the industrial sector and the insurance sector, both down 2.21%. The telecommunications sector, however, saw the largest gains, rising 2.31%.
Financial analyst Mubarak al-Tamimi told the Qatar News Agency (QNA) that investor anticipation characterized trading on the QSE this week, particularly as the FTSE Russell index review approaches on June 18. This event is expected to stimulate buying activity in several listed stocks, especially leading stocks with significant weightings in global indices.
He explained that the market witnessed a significant increase in trading values and volumes recently, driven by the entry and exit of foreign investment portfolios linked to the activation of the Morgan Stanley indices. This impacted trading activity and increased the pace of daily stock movements.
The QSE has seen active trading in recent weeks as a result of the activation and revisions of the Morgan Stanley Emerging Markets Index. These revisions contributed to increased trading liquidity and higher activity levels in a number of stocks targeted by foreign investors and institutions, he added.
Al-Tamimi pointed out that Qatari portfolios and local individuals played a prominent role in stabilizing the market recently through repositioning and rebuilding investment portfolios in a number of leading stocks, particularly in the banking and industrial sectors, which continue to be the primary drivers of the general index's performance.
He argued that the recent activity of the general index was partly speculative in nature, explaining that some liquidity was directed towards profiting from rapid price movements rather than long-term investment. This explains the noticeable volatility witnessed in recent trading sessions.
Regarding technical analysis, he explained that the QSE's general index has not yet been able to break through the key resistance level at 10,733 points, which has kept the market within a cautious trading range, awaiting new catalysts capable of pushing the index to higher levels.
He indicated that the 10,364-point level represents a significant technical support for the general index during the current phase, warning that breaking this level could open the way for the index to decline towards the technical bottom at 10,095 points. These are levels that investors and financial institutions are closely monitoring to determine the market's direction in the coming period.
Al-Tamimi emphasized that the QSE still possesses strong long-term support factors. However, the market's short-term movement will remain linked to developments in the geopolitical landscape, foreign portfolio flows associated with global indices, and the general index's ability to surpass the current technical resistance levels.