Foreign Funds Drag QSE Down 44 Points; M-Cap Melts QR1.27bn

The foreign institutions' net profit booking pressure Monday drove the Qatar Stock Exchange (QSE) down about 44 points and its capitalisation melted in excess of QR1bn.

Notwithstanding the EU-US tariff deal and the domestic earnings expectations, the 2-stock Qatar Index declined 0.39% to 11,205.47 points, recovering from an intraday low of 11.266 points.

The telecom sector witnessed higher than average selling pressure in the main market, whose year-to-date gains truncated to 6%.

About 60% of the traded constituents were in the red in the main bourse, whose capitalisation melted QR1.27bn or 0.19% to QR662.45bn mainly on microcap segments.

The Arab individuals turned net sellers in the main market, which saw as many as 4,804 exchange traded funds (sponsored by AlRayan Bank and Doha Bank) valued at QR0.02mn trade across 12 deals.

The foreign retail investors were also seen bearish in the main bourse, whose trade turnover and volumes were on the rise.

The Islamic index was seen declining faster than the other indices of the main market, which saw no trading of treasury bills.

The Gulf individuals were increasingly net profit takers in the main bourse, which saw no trading of sovereign bonds.

The Total Return Index shed 0.39%, the All Islamic Index by 0.53% and the All Share Index by 0.28% in the main market.

The telecom sector index declined 0.51%, real estate (0.35%), banks and financial services (0.33%), consumer goods and services (0.28%), transport (0.28%) and industrials (0.17%): while insurance gained 0.57%.

Major losers in the main market included Qatar Islamic Bank, Meeza, QLM, Vodafone Qatar, Mesaieed Petrochemical Holding, Mannai Corporation, United Development Company and Mazaya Qatar.

Nevertheless, Qatar German Medical Devices, Qamco, Qatar Insurance, Doha Bank and Qatari Investors Group were among the movers in the main bourse.

The foreign institutions turned net sellers to the tune of QR21.22mn compared with net buyers of QR22.78mn the previous day.

The Arab individual investors were net sellers to the extent of QR2.53mn against net buyers of QR0.23mn on Sunday.

The foreign retail investors turned net sellers to the tune of QR1.64mn compared with net buyers of QR1.79mn on July 27.

The Gulf individuals’ net profit booking expanded marginally to QR0.3mn against QR0.03mn the previous day.

The domestic institutions’ net buying eased perceptibly to QR13.04mn compared to QR14.09mn on Sunday.

However, the Qatari retail investors were net buyers to the extent of QR8.09mn against net sellers of QR39.99mn on July 27.

The Gulf institutions’ net buying strengthened markedly to QR4.63mn compared to QR1.57mn the previous day.

The Arab institutions’ net profit booking weakened perceptibly to QR0.08mn against QR0.41mn on Sunday.

The main market reported 28% surge in trade volumes to 153.22mn shares, 38% in value to QR382.74mn and 57% in deals to 19,720.

In the venture market, a total of 0.03mn equities valued at QR0.08mn changed hands across 10 transactions.