QSE Enters Third Day of Bearish Run As Local Retail Investors, Funds Weigh; M-Cap Erodes QR5.23bn

The bearish spell continued for the third straight session in the Qatar Stock Exchange (QSE) Tuesday with its key index losing 47 points and capitalisation eroding more than QR5bn, reflecting the concerns over future rate cuts by the US Federal Reserve, which signalled a measured approach to further easing.

The transport and banking counters witnessed higher than average selling pressure as the 20-stock Qatar Index shed 0.42% to 11,174.88 points, although it touched an intraday high of 11,234 points.

As much as 51% of the traded constituents were in the red in the main market, whose year-to-date gains truncated further to 5.71%.

The Arab individuals turned net profit takers in the main bourse, whose capitalisation eroded QR5.23bn or 0.78% to QR669.05bn; mainly on large and midcap segments.

The local retail investors were also seen net sellers in the main market, which saw as many as 8,352 exchange traded funds (sponsored by AlRayan Bank and Doha Bank) valued at QR0.02mn trade across three deals.

The domestic institutions were seen bearish in the main bourse, whose trade turnover grew amidst lower volumes.

The Islamic index made gains vis-a-vis declines in the other indices of the main market, which saw no trading of treasury bills.

The foreign funds continued to be net sellers but with lesser vigour in the main bourse, which saw as many as 0.21mn sovereign bonds valued at QR2.12bn change hands across four deals.

The Total Return Index shed 0.42% and the All Share Index by 0.65%, while the All Islamic Index was up 0.1% in the main market.

The transport sector index tanked 1.06%, banks and financial services (1.05%), insurance (0.26%), industrials (0.14%) and real estate (0.14%); whereas consumer goods and services gained 0.68% and telecom 0.08%.

As many as 21 stocks gained, while 26 declined and four were unchanged.

Major losers in the main market included QNB, Baladna, Al Faleh Educational Holding, Nakilat, Dukhan bank, Industries Qatar and Milaha.

In the junior bourse, Techno Q saw its shares depreciate in value.

Nevertheless, Medicare Group, Qatar Islamic Bank, Qatar German Medical Devices, Al Meera, Inma Holding, Al Mahhar Holding, Estithmar Holding and Qamco were among the movers in the main market.

The Arab individuals turned net sellers to the tune of QR5.72mn against net buyers of QR1.33mn the previous day.

The local retail investors were net sellers to the extent of QR5.02mn compared with net buyers of QR24.36mn on Monday.

The domestic institutions turned net profit takers to the tune of QR2.24mn against net buyers of QR7.57mn on September 22.

However, the Gulf funds were net buyers to the extent of QR12.47mn compared with net sellers of QR9.42mn the previous day.

The foreign retail investors turned net buyers to the tune of QR4.7mn against net profit takers of QR0.75mn on Monday.

The Gulf individual investors’ net buying increased marginally to QR1.31mn compared to QR1.2mn on September 22.

The Arab institutions’ net buying was rather flat at QR0.05mn.

The foreign institutions’ net profit booking weakened substantially to QR5.55mn against QR24.35mn the previous day.

The main market saw a 14% shrinkage in trade volumes to 177.43mn shares but on 2% jump in value to QR468.27mn and 2% in deals to 23,671.

In the venture market, a total of 0.08mn equities valued at QR0.2mn changed hands across 26 transactions.