QSE Makes Weekly Gain of 1.8% on Banking Strength

The Qatar Stock Exchange (QSE) index recorded a solid gain of 183.46 points, or 1.8 percent, during the trading week to close at 10,447.63 points, marking its third consecutive week of positive performance. This upward movement was largely driven by strong demand in the banking sector, bolstered further by encouraging quarterly earnings reports from several listed companies.

The overall market capitalisation of the QSE increased by 1.6 percent, rising to QR615 billion from QR605.5 billion at the end of the previous trading week. Among the 53 companies that traded during the week, 23 ended higher, 29 declined, and one remained unchanged. 

Qatar General Insurance & Reinsurance (QGRI) stood out as the best performing stock of the week, registering a sharp increase of 13.7 percent. On the other hand, Al Faleh Educational Holding Company (FALH) was the week’s worst performer, slipping by 3.5percent.

The rally was spearheaded by major banking stocks. Qatar Islamic Bank (QIB) was the leading contributor to the index’s gain, adding 52.20 points. QNB Group (QNB) followed closely with a contribution of 43.42 points, while Commercial Bank (CBQ) added another 27.05 points to the overall index.

Despite the index’s upward momentum, overall market activity saw a slight decline. The total traded value during the week fell by 6 percent to QR2,092.4 million, compared with QR2,225.9 million in the previous week.

Industries Qatar (IQ) emerged as the most traded stock by value, recording a weekly turnover of QR197.3 million. Traded volume also dropped, down 15.2 percent to 932.5 million shares, compared to 1,099.1 million shares in the prior week. Baladna led the market in terms of volume, with a total of 97.4 million shares exchanged. Interestingly, the number of transactions rose by 6.7 percent to reach 100,458, up from 94,110 the week before.

Investor sentiment showed notable shifts. Foreign institutional investors continued to be net buyers, though their net buying dropped to QR105.2 million from QR133.5 million the previous week. Qatari institutions turned bullish, posting net buying of QR15.0 million in contrast to net selling of QR38.1 million a week earlier. 

However, foreign retail investors increased their selling activity, recording net sales of QR28.2 million versus QR11.0 million the week before. Qatari retail investors also remained net sellers, offloading QR92.0 million worth of shares, compared to QR84.4 million in the prior week.

On a year-to-date basis, global foreign institutions are net sellers of Qatari equities amounting to $255.5 million, while institutions from the Gulf Cooperation Council (GCC) have a net short position of $83.4 million.

Speaking to QNA, Ramzi Qasmieh, Investment Manager at Qatar Securities Company, noted that the QSE Index’s continued rise reflects market resilience and investor confidence, particularly in the banking sector, which gained approximately 2.86 percent during the week. 

He added that the industrial sector saw a 0.99 percent increase, telecommunications advanced by 1.12 percent, while the real estate sector experienced a decline of 1.2 percent.

Qasmieh attributed much of the week’s positive sentiment to the release of Q1 2025 earnings reports, which showed a collective year-on-year profit growth of 0.92 percent among listed companies. 

He highlighted that stocks such as Lesha Bank, Gulf International Services, and Beema Insurance saw stronger investor interest due to their favorable earnings results. He also pointed out that stability in global financial markets has contributed to a cautious sense of optimism among investors.

From a technical standpoint, Qasmieh observed that the index is nearing a key resistance level of 10,500 points. A breakout above this level could potentially trigger further upside, possibly pushing the index toward the 10,700-point mark in the near term.

Overall, the Qatar Stock Exchange concluded the week on a strong note, underpinned by a resilient banking sector and improving corporate earnings, setting a positive tone for the coming weeks despite a dip in trading volumes.