QSE Shows Resilience As Investor Confidence Supports Market Activity

Demonstrating resilience and sustained investor confidence, the Qatar Stock Exchange (QSE) continued to attract active trading during the week despite regional market pressures. The benchmark index closed the week at 10,699 points, down 355.9 points or 3.22 percent, reflecting short-term sectoral fluctuations while maintaining strong market fundamentals.

During the week, the insurance sector emerged as the top performer, posting gains of 1.1 percent, while the transportation sector recorded the largest decline of 6.39 percent. Out of the 54 listed companies traded, six stocks ended the week higher while 48 closed lower. Market capitalization eased by 3.3 percent to QR636.4 billion from QR658.4 billion at the end of the previous trading week.

Among individual stocks, Salam International Investment Limited was the best-performing share, rising 6.4 percent during the week. Meanwhile, Qatar Aluminum Manufacturing Company recorded the steepest decline, falling 15.7 percent.

Key market heavyweights including QNB Group, Industries Qatar and Nakilat were the main contributors to the weekly decline in the index, removing 67.15, 54.69 and 51.12 points respectively.

Trading activity remained solid, indicating continued investor engagement. Total traded value during the week reached QR2.5 billion, slightly lower than QR2.74 billion recorded in the previous week. QNB Group led the market in terms of traded value with QR308.9 million.

Encouragingly, trading volume increased by 1.9 percent to 885.3 million shares compared with 869.2 million shares in the previous week. 

The number of transactions also rose by 8 percent to 160,052 from 148,235, highlighting strong market participation. Qatar Aluminum Manufacturing Company topped the market in terms of traded volume with 107.9 million shares.

Financial market analyst Youssef Buhulaiqa told Qatar News Agency (QNA) that the market initially saw a noticeable decline in the first trading session after the banks’ holiday due to cautious investor sentiment. However, the market quickly recovered and began to rise again, reflecting investor confidence in the strength of the Qatari economy and its ability to overcome short-term fluctuations.

He noted that the QSE demonstrated remarkable resilience, closing higher on both Wednesday and Thursday despite ongoing regional tensions. According to Buhulaiqa, this performance highlights the market’s ability to absorb geopolitical shocks and remain focused on the country’s strong economic fundamentals.

Buhulaiqa also pointed out that the Middle East continues to occupy a central place in the global geopolitical landscape, not only strategically but also because of its direct impact on energy markets and global economic stability. He explained that financial markets often react to rising geopolitical risks with temporary declines before entering a reassessment phase during which new investment opportunities emerge.

Despite these challenges, he said estimates suggest that the impact of any potential military escalation on economic growth in the Gulf region will likely remain temporary. Most GCC countries possess substantial reserves and financial assets that allow them to manage short-term disruptions to energy revenues.

He further highlighted that strong non-oil sectors and a low-tax environment help limit any significant impact on public finances. Market data also indicated continued international confidence, with global foreign institutions remaining net buyers of Qatari equities by $454.7 million year-to-date, while GCC institutions recorded net purchases of $97million.