By: Eman Ghaly
Mubasher: The Qatar Stock Exchange (QSE) plunged 3.20% or 260.73 points to reach 7,885.50 points in the current week ended on Thursday, 9 November, against 8,146 points in the week earlier, and market capitalisation lost QAR 17.11 billion.
The QSE’s drop during the current week is attributed to the geopolitical tensions in the GCC, Iran, and Lebanon that led to breaking its strong support level of 8,000 points, the financial analyst Ahmed Eid told Mubasher.
Eid forecasted that if the political tensions continued the QSE will aim the support level at 7,500 points, and if it dropped down it the index will reach 7,250 points.
Regarding the rise in QSE by the end of Thursday, Eid noted that it occurred as a weak reaction to the declines in the index during the week.
The QSE searches for more of initial public offerings (IPOs) and listing companies to attract more foreign investors in the coming period.
If political situation improved in the coming week, the QSE will aim to reach 8,000 to convert to a strong resistance level, which the index on the long-term may reach 8,250 points, and after it 8,600 points, Eid indicated.
On a weekly basis, the market capitalisation value the QSE listed stocks decreased 3.86% to QAR 426.36 billion, from QAR 443.47 billion.
The Qatari body's liquidity surged 29.8% to reach QAR 893.2 million on 9 November, compared to QAR 687.9 million in the week before.
Trading volume rose 5.4% to 32.4 million shares, from 30.8 million shares.
On a weekly basis, transactions went up 30.3% to reach 14,300 transactions by the end of week on 9 November, compared to 10,900 transactions on 2 November.
Trading volume and value grew due to implementing some transactions, whereas stocks’ trading remained down, Eid noted.
The banks sector acquired 47.4% of the QSE’s trading value, followed by the industrials sector with 19.5%, transportation with 9.7%, and real estate with 8.8%.
The banks sector acquired the QSE’s traded volume with 31.6%, followed by industrials with 23.7%, real estate with 18.3%, and telecoms with 11.02%.
Qatar National Bank’s (QNB) acquired 22.2% of the stocks’ trading value in the week ended on Thursday, 9 November, followed by Qatar International Islamic Bank’s (QIIB) with 5.8%, and Qatar Navigation’s (Milaha) with 7.4%.
In the week ended on Thursday, 9 November, 38 stocks tumbled, led by National Leasing Holding Company’s (Alijarah) stock with 18.9%, whereas four stocks grew, topped by Al Khaleej Takaful Group’s stock with 3.4%, while three stocks remained unchanged.
Translated by: Mohamed Hesham Azab