QSE Needs Upgradation of New Tools To Support Market

Doha: The financial analyst Ramzi Qasmieh underlined that Qatar Stock Exchange (QSE) will be prompted to upgrade new tools in the upcoming period to support the market with the entry of new liquidity, specially since stock prices are currently very attractive.

In a statement to Qatar News Agency (QNA), he pointed out that the price-earnings ratios of the listed companies reached 12 times, which is the lowest historically for QSE, adding that the trading volume during Thursday’s session did not exceed QR700m, albeit synchronization of the session with the application of FTSE Index Reviews, in which the trading volume usually exceeds QR1.5bn, reflecting the caveats of foreign investment funds.

He pointed out that the performance of QSE does not entirely reflect the economic resilience highlighted by the macroeconomic indicators, whether at the level of growth rates, or in terms of surpluses registered in the state’s general budget which amounted to QR30bn in the 3Q of 2022, or balance-of-payment surplus (BoP).

Ramzi Qasmieh indicated that the tightened liquidity with the rise in the interest rate in banks, and the ensuing rise in the opportunity cost and the net selling trend of some funds, along with the decline in oil prices, have impacted the market trend during the current week, pointing out that QSE lose 8 percent since the beginning of December 2022, and 10 percent since the beginning of the last quarter of 2022.

In addition, QSE index fell at the end of the trading week of December by roughly 4.46 percent, losing its balance by 512.41 points, and thus dropping to 10.976 points.

The weekly report of QSE revealed that the market value has declined at the end of the weeks trading to reach QR619.293bn, compared to its level last week, which amounted to QR643.019bn, in addition to recording the value of stock trading about QR2.317bn, by selling 548.848 million shares, through striking 80,571 deals.