Strong selling — especially within telecom, insurance and consumer goods — resulted in the Qatar Stock Exchange sinking below 10,200 levels on Wednesday.
Local retail investors’ increased net selling was largely instrumental in dragging the 20-stock Qatar Index 1.09% to 10,152.62 points, which is, however, up 19.11% year-to-date.
There could be some selling activity on the short-term period as part of a natural correction, knowing that the nearby support levels are located at 10,000 points, 9,660 points and 9,450 points, a Kamco technical analysis said.
Mainly led by midcap segments, market capitalisation declined about QR5bn or 0.79% to QR570.38bn.
There was also increased net selling by domestic funds and lower buying interests of Gulf funds on the market, where Islamic stocks were seen declining marginally faster than the other indices.
Doha Bank and Masraf Al Rayan sponsored exchange traded funds QETF and QATR reported 0.49% and 0.42% declines respectively.
Trade turnover grew amidst lower volumes on the bourse, where banking, real estate and industrials sectors together accounted for more than 67% of the total volume.
The Total Return Index shed 1.09% to 17,887.79 points, Al Rayan Islamic Index (Price) by 1.1% to 2,383.6 points and All Share Index by 0.86% to 2,997.02 points.
The telecom index declined 2.32%, insurance (2.04%), consumer goods (1.46%), industrials (1.3%), realty (1.24%) and banks and financial services (0.34%); whereas transport gained 0.41%.
About 76% of the traded stocks were in the red with major losers being Ooredoo, Qatar Insurance, Industries Qatar, Vodafone Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Widam Food, Qatar First Bank and Qatar Oman Investment; even as Milaha, Ahlibank, Dlala and United Development Company were among the gainers.
Local individuals’ net selling increased considerably to QR32.43mn compared to QR21.06mn the previous day.
Domestic institutions’ net profit booking strengthened marginally to QR1.75mn against QR0.44mn on Tuesday.
The Gulf institutions’ net buying declined perceptibly to QR1.08mn compared to QR1.47mn on October 23.
However, non-Qatari funds’ net buying grew significantly to QR31.22mn against QR23.66mn the previous day.
Non-Qatari individuals turned net buyers to the tune of QR1.47mn compared with net sellers of QR1.83mn on Tuesday.
The Gulf individuals were also net buyers to the extent of QR0.37mn against net profit takers of QR1.83mn on October 23.
Total trade volume fell 8% to 6.65mn shares, while value rose 9% to QR215.89mn despite 19% lower transactions at 3,667.
The telecom sector’s trade volume plummeted 37% to 0.77mn equities, value by 29% to QR9.87mn and deals by 29% to 258.
The banks and financial services sector saw 12% plunge in trade volume to 1.71mn stocks but on 10% rise in value to QR92.1mn despite 21% decline in transactions to 1,256.
The industrials sector’s trade volume shrank 10% to 1.3mn shares, while value expanded 14% to QR50.34mn and deals by 10% to 824.
The market witnessed 3% fall in the transport sector’s trade volume to 1.06mn equities, 5% in value to QR24.92mn and transactions by 22% to 463.
However, the insurance sector’s trade volume doubled to 0.2mn stocks, value soared 88% to QR6.57mn and deals by 16% to 148.
The consumer goods sector’s trade volume doubled to 0.16mn shares, value grew 37% to QR9.68mn and transactions by 3% to 193.
There was 8% shrinkage in the real estate sector’s trade volume to 1.45mn equities and 11% in value to QR22.43mn but on 7% fall in deals to 525.
In the debt market, there was no trading of treasury bills and sovereign bonds.
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