QSE Remains Under Bear Grip for Second Day as Index Loses 51 Points; M-Cap Melts QR3.28bn

Ahead of a US Senate vote on President Donald Trump's landmark tax and spending bill, the Qatar Stock Exchange (QSE) Tuesday remained under bearish spell for the second straight session as its key index fell more than 51 points and capitalisation melted in excess of QR3bn.

The insurance, telecom, real estate and industrials counters witnessed higher than average selling pressure as the 20-stock Qatar Index shed 0.48% to 10,698.39 points, although it touched an intraday high of 10,771 points.

The domestic institutions turned net sellers in the main market, whose year-to-date gains truncated to 1.2%.

About 58% of the traded constituents were in the red in the main bourse, whose capitalisation melted QR3.28bn or 0.52% to QR632.07bn mainly on account of small and microcap segments.

The Gulf retail investors were seen bearish in the main market, which saw 2,748 exchange traded funds (sponsored by AlRayan Bank and Doha Bank) valued at QR0.03mn trade across five deals.

The Gulf funds turned net profit takers in the main bourse, whose trade turnover and volumes were on the decline.

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

The local retail investors continued to be net sellers but with lesser intensity in the main bourse, which saw no trading of sovereign bonds.

The Total Return Index lost 0.48%, the All Share Index by 0.54% and the All Islamic Index by 0.64% in the main market.

The insurance sector index tanked 2.41%, telecom (1.33%), realty (0.67%), industrials (0.65%), banks and financial services (0.47%), and consumer goods and services (0.29%); while transport gained 0.43%.

Major shakers in the main bourse included Qatar Cinema and Film Distribution, Qatar Insurance, Ahlibank Qatar, Mesaieed Petrochemical Holding, Qatar Electricity and Water, Commercial Bank, AlRayan Bank, Woqod, Industries Qatar, Estithmar Holding, Ooredoo and Vodafone Qatar.

Nevertheless, Mannai Corporation, Mekdam Holding, Meeza, Al Mahhar Holding, Baladna and Nakilat were among the gainers in the main market. In the junior bourse, Techno Q saw its shares appreciate in value.

The domestic funds turned net sellers to the tune of QR17.61mn compared with net buyers of QR33.06mn the previous day.

The Gulf retail investors were net sellers to the extent of QR5.12mn against net buyers of QR1.55mn on June 30.

The Gulf institutions turned net profit takers to the tune of QR2.21mn compared with net buyers of QR16.17mn on Monday.

However, the foreign institutions’ net buying increased significantly to QR23.29mn against QR4.99mn the previous day.

The Arab individual investors were net buyers to the extent of QR9.62mn compared with net sellers of QR9.92mn on June 30.

The local retail investors’ net profit booking decreased substantially to QR7.56mn against QR43.25mn on Monday.

The foreign individual investors’ net selling weakened perceptibly to QR0.41mn compared to QR2.59mn the previous day.

The Arab institutions had no major net exposure for the second consecutive session.

The main market saw 35% contraction in trade volumes to 115.46mn shares, 36% in value to QR307.18mn and 26% in deals to 18,968.

In the venture market, a total of 0.21mn equities valued at QR0.58mn changed hands across 55 transactions.