The Qatar Stock Exchange increased by 68 points this week, along with a QR2.63 billion rise in market capitalization. The changes in trading commissions and the launch of the Al-Nukhba program signal a positive outlook, despite U.S. tariff concerns. However, net selling by Gulf institutions and decreased trading volumes pose challenges.
The Qatar Stock Exchange (QSE) demonstrated positive momentum this week, with its index recording a gain of 68 points and market capitalization increasing by QR2.63 billion. Despite ongoing U.S. tariff concerns, the 20-stock Qatar Index rose by 0.66%. The QSE also adjusted its trading commission, abolishing the QR30 minimum in favor of a proportional rate of 0.00275 without a threshold.
Investors in the transport, telecom, real estate, and consumer goods sectors exhibited heightened demand, which coincided with the launch of the Al-Nukhba program—an educational initiative aimed at enhancing capabilities among family-owned and private companies in Qatar. Meanwhile, the total assets of commercial banks in the nation saw a 3.3% increase year-over-year, reaching QR2.04 trillion in January 2025, influenced by foreign funds reducing net profit booking.
In terms of trading activity, Gulf institutions engaged in net selling, while foreign retail investors turned net sellers as well, with a significant portion of trading involving sovereign bonds. The Islamic index outperformed others in the market, buoyed by Doha Bank’s $500 million global bond, which experienced substantial over-subscription with notable participation from European and Asian investors.
Market capitalization rose 0.43% to QR616.07 billion, supported by small and micro-cap segments, and trade turnover reflected a downward trend this week, with no treasury bills traded. The overall indices experienced positive adjustments, with the Total Return Index up 0.75% and the All Share Index rising by 0.63%, underscoring strong performances in industrial and banking sectors that accounted for over 54% of trade volumes.
Performance by sector highlighted the transport sector’s index soaring by 3.07%, while telecom, real estate, and consumer goods also reported gains. Approximately 57% of traded constituents exhibited positive movement, led by companies such as Qatar General Insurance and Reinsurance and Vodafone Qatar. Conversely, Gulf International Services and Al Faleh Educational Holding were among the notable decliners.
Despite a significant reduction in net selling by foreign institutions to QR136.98 million, Gulf institutions reported an increase in net profit booking to QR23.77 million. A detailed view indicated that foreign individuals acted as net profit takers, while Arab retail investors shifted to net selling. Domestic institutions’ net buying also declined considerably. The trading activity diminished significantly, witnessing a 46% fall in volume and a decline in transaction value by 43%.
The Qatar Stock Exchange has shown a positive trajectory this week, with significant index gains and increased market capitalizations, despite concerns arising from U.S. tariffs. The adjustments to the trading commission and the Al-Nukhba program reflect proactive measures to stimulate market activity. Nevertheless, shifts in institutional investment patterns and decreased trading volumes highlight challenges ahead.
Original Source: www.gulf-times.com
