Oil price plunge to near $30 a barrel, a near 12-year lower, has had a knock on effect on the Qatar Stock Exchange, which plunged 195 points to settle below the 9,500 mark.

An across the board selling – particularly in the transport, consumer goods and industrials counters – led the 20-stock Qatar Index plummet 2.01% to a 27-month low of 9,477.09 points.

Lower buying support from local and Gulf retail investors as well as domestic institutions were seen instrumental in dragging the market, which is down 9.13% year-to-date.

Non-Qatari individual investors turned bearish and there was also higher net profit booking by Gulf institutions in the bourse, where trading turnover was on the decline.

The index that tracks Shariah-principled stocks was seen melting faster than the other indices in the market, where realty, industrials and banking sectors together accounted about 76% of the total trading volume.

Market capitalisation eroded 2% or more than QR10bn to QR504.77n with large, mid, small and micro mid cap equities melting 3.12%, 2.53%, 1.6% and 0.89% respectively.

The Total Return Index tanked 2.01% to 14,730.77 points, All Share Index by 1.9% to 2,531.75 points and Al Rayan Islamic Index by 2.03% to 3,479.42 points.

Transport stocks shrank 2.96%, consumer goods (2.2%), industrials (2.01%), banks and financial services (1.84%), realty (1.68%), insurance (1.39%) and telecom (1.34%).

About 84% of the stocks were in the red with major losers being Industries Qatar, QNB, Qatar Insurance, Mazaya Qatar, Ezdan, Barwa, Ooredoo, Vodafone Qatar, Aamal Company, Gulf International Services, Qatar Islamic Bank, Doha Bank, Masraf Al Rayan, Islamic Holding Group and Nakilat; even as Mannai Corporation and Qatar Islamic Insurance bucked the trend.

Local retail investors’ net buying weakened to QR19.85mn compared to QR35.8mn on January 11.

The GCC (Gulf Cooperation Council) individuals’ net buying also fell to QR2.23mn against QR4.11mn on Monday.

Domestic institutions’ net buying plunged to QR17.91mn compared to QR53.23mn the previous day.

The GCC institutions’ net profit booking increased to QR20.98mn against QR18.2mn on January 11.

Non-Qatari individual investors turned net sellers to the tune of QR5.28mn compared with net buyers of QR2.59mn on Monday.

However, non-Qatari institutions’ net profit booking weakened considerably to QR13.73mn against QR77.51mn the previous day.

Total trade volume fell 24% to 4.22mn shares, value by 27% to QR179.44mn and deals by 27% to 2,753.

The banks and financial services sector reported 48% plunge in trade volume to 0.98mn equities, 48% in value to QR59.72mn and 47% in transactions to 715.

The consumer goods sector’s trade volume plummeted 36% to 0.3mn stocks, while value rose 24% to QR16.86mn and deals by 32% to 327.

The market witnessed 17% decline in the real estate sector’s trade volume to 1.17mn shares, 29% in value to QR24.04mn and 29% in transactions to 533.

The industrials sector’s trade volume tanked 13% to 1.05mn equities, value by 11% to QR58.72mn and deals by 25% to 639.

However, the telecom sector saw 52% surge in trade volume to 0.38mn stocks and 4% in value to QR8.81mn but on 61% shrinkage in transactions to 159.

The transport sector’s trade volume grew 7% to 0.29mn shares, value by 19% to QR8.25mn and deals by 19% to 141.

Although the insurance sector’s trade volume was flat at 0.04mn equities, there was 40% jump in value to QR3.04mn. Transactions shrank 35% to 39.

In the debt market, there was no trading of treasury bills and government bonds.

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