US Rate Concerns Weigh on QSE as Index Drops 185 Points; M-Cap Erodes QR9.27bn

The Qatar Stock Exchange (QSE), like other Gulf bourses, witnessed strong selling pressure Wednesday, leading its index to plunge 185 points and capitalisation to erode more than QR9bn.

The transport and banking counters witnessed higher than average selling pressure as the 20-stock Qatar Index declined 1.61% to 11,306.78 points, although it touched an intraday high of 11,490 points.

The foreign institutions were increasingly net profit takers in the main market, whose year-to-date gains truncated further to 6.96%.

More than 71% of the traded constituents were in the red in the main bourse, whose capitalisation melted QR9.27bn or 1.36% to QR674.24bn mainly on large and midcap segments.

The domestic funds were increasingly net sellers in the main market, which saw as many as 4,595 exchange traded funds (sponsored by AlRayan Bank and Doha Bank) valued at QR0.03mn trade across eight deals.

The Gulf institutions’ weakened net buying had its influence on the main bourse, whose trade turnover and volumes were on the decrease.

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

However, the local retail investors were seen increasingly net buyers in the main bourse, which saw no trading of sovereign bonds.

The Total Return Index tanked 1.61%, the All Share Index by 1.44% and the All Islamic Index by 1.27% in the main market.

The transport sector index plummeted 1.95%, banks and financial services (1.83%), real estate (1.43%), industrials (0.81%), telecom (0.8%) and consumer goods and services (0.5%); while insurance was up 0.11%.

Major shakers in the main market included Qatar Islamic Bank, Doha Bank, Commercial Bank, Milaha, Qatar Electricity and Water, QNB, Qatar Oman Investment, Gulf International Services, Estithmar Holding, Barwa, Ezdan, Milaha and Nakilat.

Nevertheless, Qatar German Medical Devices, QLM, Mannai Corporation, Dlala and Qatar Industrial Manufacturing were among the movers in the main bourse.

In the venture market, Techno Q saw its shares appreciate in value.

The foreign institutions’ net profit booking increased substantially to QR38.87mn compared to QR18.03mn on August 19.

The domestic institutions’ net selling expanded significantly to QR22.24mn against QR12.7mn the previous day.

The Gulf institutions’ net buying declined noticeably to QR7.95mn compared to QR11.25mn on Tuesday.

However, the local individual investors’ net buying expanded markedly to QR33.03mn against QR23.75mn on August 19.

The Arab retail investors were net buyers to the extent of QR12.63mn compared with net sellers of QR2.05mn the previous day.

The foreign individuals turned net buyers to the tune of QR4.12mn against net profit takers of QR4.28mn on Tuesday.

The Gulf retail investors’ net buying strengthened perceptibly to QR3.36mn compared to QR2.17mn on August 19.

The Arab institutions had no major net exposure against net sellers to the tune of QR0.11mn the previous day.

The main market saw a 10% contraction in trade volumes to 135.8mn shares and 8% in value to QR367.17mn but on 19% jump in deals to 23,870.

In the venture market, a total of 0.68mn equities valued at QR1.86mn changed hands across 131 transactions.