QSE Rises 1.2% Amid Strong Earnings, Increased FII Buying

Qatar Stock Exchange (QSE) witnessed a strong rebound this week as the main index advanced by 124.33 points, or 1.2 percent, to close at 10,260.17 points.

The weekly gain in the QSE Index was largely supported by continued financial disclosures for the first quarter of 2025, the distribution of pending 2024 corporate profits, and a temporary suspension of tariffs by the United States on certain trading partners, which improved investor sentiment in Qatar and across regional markets.

Market capitalisation increased significantly during the week, rising from QR597.6 billion to QR605.5 billion, reflecting a 1.3 percent growth. The overall market breadth was highly positive, with 43 out of the 53 listed companies ending the week higher. Nine companies closed in the red, while one remained unchanged.

Among individual stock performances, Doha Bank emerged as the top gainer for the week, posting a notable rise of 17 percent. The bank’s sharp ascent was underpinned by improved investor confidence in its financial results and future growth outlook.

 On the contrary, Industries Qatar recorded the largest decline for the week, falling by 3.3 percent amid profit-taking and sector-specificconcerns.

The rally in the QSE Index was primarily driven by strong performances in the banking sector. Qatar Islamic Bank contributed the most to the index’s upward movement, adding 36.45 points. Doha Bank followed closely, contributing 31.87 points, while Qatar International Islamic Bank added another 23.65 points to the index. These gains underscore the banking sector’s central role in sustaining the market’s positive momentum.

Trading activity on the exchange increased sharply over the week. 

The total value of shares traded rose by 41.5 percent to QR2.225 billion, compared with QR1.573 billion in the previous trading week.

Estithmar Holding led in terms of traded value, with transactions worth QR203.9 million. Traded volumes also jumped significantly, increasing by 58.6 percent to reach 1.099 billion shares, up from 693.2 million shares in the prior week. 

The number of transactions executed during the week stood at 94,110, marking a 28.2 percent rise from 73,419 transactions in the preceding week. Mazaya Real Estate Development Company topped the chart in terms of volume traded, with 156.2 million shares changing hands.

Investor activity during the week reflected a shift in institutional sentiment. Foreign institutional investors were net buyers to the tune of QR133.5 million, a significant reversal from the net selling of QR42.7 million recorded in the previous week. In contrast, Qatari institutions turned net sellers with a total of QR38.1 million in outflows, compared to net buying of QR15.9 million in the prior week.

On the retail side, foreign investors continued to offload their holdings, recording net sales of QR11 million, which was slightly better than the previous week’s QR13.4 million in net sales. Qatari retail investors were also net sellers, with total outflows of QR84.4 million, a sharp increase from QR13.4 million in the prior week.

On a year-to-date basis, global foreign institutions have been net sellers of Qatari equities amounting to $285.5 million, while institutional investors from the GCC have net short positions worth $82.3 million.

Financial analyst Mubarak Al Tamimi, speaking to Qatar News Agency (QNA), attributed the weekly rise in the index to multiple reinforcing factors. 

Chief among them were the ongoing publication of strong financial results by listed companies for the quarter ending March 31, 2025, and the continued distribution of 2024 dividends. He further noted that the US decision to suspend certain tariffs for a 90-day period had a positive impact not just on Qatari equities, but also on regional and global markets.

Al Tamimi added that the QSE Index is currently undergoing a technical correction after having previously touched the 10,714 mark. 

He pointed out that the index is now targeting a near-term level of 10,571, supported by generally optimistic investor sentiment and strong operating results across several sectors.

The average daily trading value for the week was approximately QR445 million, indicating healthy participation and liquidity in the market. All sectors showed activity, but the banking, real estate, and industrials sectors were particularly buoyant.

Looking ahead, the market outlook remains cautiously optimistic. While the immediate performance is likely to be influenced by further earnings announcements and macroeconomic indicators, the current momentum suggests that investors are positioning themselves strategically amid a relatively stable economic backdrop and improving corporate fundamentals.