QSE starts weekly trade in 2023 on brighter note, jumps over 464 points

January 6, 2023

Following the downbeat end to 2022, one of the most challenging years for the stock market since 2008 with all the major stock markets posting declining, Qatari stocks began weekly trade in 2023 on a brighter note.

The Qatar Stock Exchange (QSE) Index rose by 464.24 points, or 4.5 percent, during the first week of 2023 to close at 11,145.31 points.

The week saw QSE’s market capitalisation increase 3.9 percent to QR631.9 billion compared with QR608.2 billion at the end of the previous trading week.

Foreign institutions turned bullish, closing the week with net buying of Qatari stocks worth QR148.6 million against net selling of QR3.7 million in the previous week.

Foreign retail investors also closed the week with a net buying of QR20 million against a net buying of QR6.8 million in the previous week.

Qatari institutions, however, remained bearish with net selling of QR156.2 million against net selling of QR7.6 million in the week before.

Qatari retail investors also recorded net selling of QR12.4 million against net buying of QR4.4 million in the week before.

The traded value during the week increased 25.8 percent to QR1,564.9 million from QR1,244.2 million in the previous trading week. QNB Group (QNB) was the top-value traded stock during the week with a total traded value of QR259.9 million.

Traded volume increased 23 percent to 439 million shares compared to 357 million shares in the previous trading week. Masraf Al Rayan was the top volume traded stock during the week with a total traded volume of 51.9 million shares.

The number of transactions also rose 35.8 percent to 57,649 against 42,436 in the previous week.

Qatar Islamic Bank (QIB) was the best-performing stock for the week, climbing by 11.5 percent.

Meanwhile, QLM Life & Medical Insurance Company (QLM) was the worst-performing stock for the week, down 6.2 percent.

QIB, QNB, and Industries Qatar (IQ) were the primary contributors to the weekly index gain. QIB and QNB added 168.68 and 98.42 points to the index, respectively. Further, IQ added another 72.37 points.

Of the 47 traded companies, 34 ended the week higher, ten ended lower and three were unchanged.

The week saw all seven sector indices close in positive territory. The banking and financial sector index, which gained 6.09 percent, was the best-performing sector index for the week.

Meanwhile bucking the general declining trend in the regional markets on Thursday, Qatar’s stock market jumped over 300 points to breach the psychological 11,000 mark on the back of gains in its banking shares.

While most Middle Eastern stock markets closed lower on Thursday amid falling oil prices, the main index of the Qatar Stock Exchange (QSE) gained 300.19 points, or 2.72 percent, at the close of trade for the day.

Thursday’s gain helped QSE take its lead forward for the first week of the 2023 trading week to 464.24 points compared to the last week of the previous year, supported by anticipation of sound annual results of companies and hints by the US Federal Reserve to slow down the rate of raising interest rates.

In a statement to Qatar News Agency, Hashim Al-Sayed, a Doha-based analyst and financial expert, said that the general index of the stock exchange during the current year witnessed a positive rebound to exceed the barrier of 11,000 points, compared to last week.

Sayed said that the gain was driven by a package of factors, most notably the approaching launch date of annual corporate results for the year 2022, and hints of the US Federal Reserve to reduce the pace of raising interest rates, in addition to the arrival of stock prices to attractive levels that prompted regional and international investors to increase purchases of Qatari stocks in the last few days.

The financial market expert expected that the companies listed on the stock exchange would achieve outstanding results during the past year, pointing out that the banking sector benefited from raising interest rates in attracting deposits, and the industrial sector also benefited from oil prices that recorded their highest level at $128 a barrel in March.

He also expects the services and real estate sectors to benefit from the momentum of the FIFA World Cup Qatar 2022, which will reflect positively on the annual results. He pointed out that Qatari companies are expected to provide generous cash dividends due to the availability of liquidity.

Sayed pointed out that the market’s performance during the current week interacted positively with the results of the minutes of the US Federal Reserve’s policy meeting, which showed the agreement of all officials on the need to slow down the pace of large increases in interest rates.

He said that there is some kind of reassurance that raising interest rates will be at a slower pace, fluctuating between 25 and 50 points and that inflation data in America, which is scheduled to be announced next week, will reinforce this trend.




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