The sharp hike in interest rates by the US Federal Reserve to tame a 40-year high inflation had its repercussions in the Qatar Stock Exchange, which plummeted 537 points and wiped off QR26bn in capitalisation this week.
The domestic funds were seen increasingly into net selling as the 20-stock Qatar Index tanked 4.1% this week which saw the QSE chief executive Tamim Hamad al-Kawari tell a London conference that the bourse is focused on improving the liquidity.
The foreign institutions’ weakened net buying had its influence in the market this week which saw Commercial Bank closes $750mn Asian syndicate term loan facility.
The foreign individuals’ net buying also waned this week which saw Doha Bank brings in QNBFS as liquidity provider for its sponsored exchange traded fund QETF.
An across the board selling, particularly in the industrials, dampened the sentiments in the bourse this week which saw Gulf Warehousing Company (GWC) sign pact with Ponticelli Freres Group.
The Gulf individuals turned net profit takers this week which saw the global credit rating agency Standard and Poor’s upgrade rating of Al Khaleej Takaful.
About 94% of the traded constituents in the main market were in the red this week which saw Qatar’s trade surplus swell 86% year-on-year in May 2022.
Nevertheless, Arab individuals were seen bullish this week which saw a total of 0.2mn QETF valued at QR2.45mn change hands across 40 transactions.
The Gulf individuals were also seen net buyers this week which saw as many as 0.84mn Masraf Al Rayan-sponsored QATR worth QR2.29mn trade across 133 deals.
The overall trading and turnover in the main market were on the increase this week, which saw the industrials and banking sectors together constitute more than 72% of the total trade volume.
Market capitalisation was seen eroding more than QR26bn or 3.62% to QR705.8bn, mainly on large and midcap segments this week, which saw no trading of sovereign bonds and treasury bills.
The Total Return Index tanked 4.1%, All Islamic Index by 3.62% and All Share Index by 3.56% this week.
The industrials sector plummeted 5.81%, banks and financial services (3.47%), transport (3.09%), real estate (3.01%), insurance (0.78%), telecom (0.61%) and consumer goods and services (0.06%) this week.
Major shakers in the main market included Commercial Bank, Industries Qatar, Qamco, Qatar Industrial Manufacturing, Qatar First Bank, Doha Bank, Masraf Al Rayan, Qatari German Medical Devices, Baladna, Qatar Electricity and Water, Qatar Insurance, Qatar Islamic Insurance, Ezdan, Mazaya Qatar, Milaha and GWC; while both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value this week.
Nevertheless, Qatar General Insurance and Reinsurance, Woqod and Qatar Cinema and Film Distribution were among the gainers in the main market this week.
In the main market, the banks and financial services sector accounted for 39% of the total trade volume, industrials (33%), consumer goods and services (11%), real estate (10%), transport (4%), telecom (2%) and insurance (1%) this week.
In terms of value, the banks and financial sector’s share was 64%, industrials (20%), consumer goods and services (6%), transport and realty (3% each), telecom (2%) and insurance (1%) this week.
The domestic funds’ net selling grew substantially to QR209.99mn compared to QR77.1mn the week ended June 9.
The Gulf institutions turned net sellers to the tune of QR23.13mn against net buyers of QR74.96mn the previous week.
The foreign funds’ net buying decreased markedly to QR242.74mn compared to QR304.66mn a week ago.
The foreign individuals’ net buying weakened perceptibly to QR1.82mn against QR5.15mn the previous week.
However, Arab individuals were net buyers to the extent of QR24.36mn compared with net sellers of QR22.23mn a week ago.
The Arab institutions’ net buying rose marginally to QR2.87mn against QR1.72mn the week ended June 9.
The Gulf individuals turned net buyers to the tune of QR2.1mn compared with net sellers of QR7.07mn the previous week.
Qatari individuals’ net profit booking fell drastically to QR40.76mn against QR280.08mn a week ago.
Total trade volume in the main market rose 6% to 953.73mn shares, value by 56% to QR4.91bn and transactions by 37% to 111,528.
The banks and financial services sector’s trade volume more than doubled to 372.84mn equities and value more than doubled to QR3.14bn on 70% increase in deals to 62,955.
However, there was a 38% plunge in the transport sector’s trade volume to 34.9mn stocks and 38% in value to QR167.41mn but on 3% increase in transactions to 5,105.
The insurance sector’s trade volume tanked 37% to 11.75mn shares, value by 51% to QR32.81mn and deals by 13% to 1,438.
The consumer goods and services sector reported 30% shrinkage in trade volume to 101.24mn equities but on 4% jump in value to QR308.54mn and less than 1% in transactions to 6,939.
The real estate sector’s trade volume shrank 24% to 95.98mn stocks, value by 14% to QR163.03mn and deals by 15% to 5,225.
The market witnessed 14% contraction in the telecom sector’s trade volume to 21.3mn shares but on 28% surge in value to QR96.31mn and 53% in transactions to 5,465.
The industrials sector’s trade volume was down 13% to 315.71mn equities and value by 3% to QR1bn, whereas deals shot up 16% to 24,401.
The venture market saw 56.17% drop in trade volumes to 1.49mn stocks, 56.16% in value to QR9.78mn and 51.74% in transactions to 555.
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