US Rate Cut Expectations Lift QSE 104 Points; M-Cap Adds QR6.51bn

Banking on high expectations of rate cut in the US, investors, especially foreign funds, upped their net buying in the Qatar Stock Exchange (QSE), resulting in its key index surge 104 points and capitalisation add in excess of QR6bn.

The telecom and banking counters witnessed higher than average demand as the 20-stock Qatar Index shot up 0.93% to 11,284.11 points, recovering from an intraday low of 11.186 points.

The Gulf individuals’ lower net selling had its influence on the main market, whose year-to-date gains improved further to 6.74%.

More than 69% of the traded constituents extended gains to investors in the main bourse, whose capitalisation added QR6.51bn or 0.98% to QR671bn mainly on large and small cap segments.

However, the local retail investors were increasingly net sellers in the main market, which saw no trading of exchange traded funds.

The domestic funds were also increasingly net profit takers in the main bourse, whose trade turnover and volumes were on the increase.

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

The Arab individuals turned bearish in the main bourse, which saw no trading of sovereign bonds.

The Total Return Index gained 0.93%, the All Islamic Index by 0.78% and the All Share Index by 0.9% in the main market.

The telecom sector index shot up 2.59%, banks and financial services (1.08%), transport (0.66%), consumer goods and services (0.56%), industrials (0.37%) and real estate (0.35%); while insurance was down 0.13%.

Major movers in the main market included Qatar Cinema and Film Distribution, Meeza, Qatar German Medical Devices, Ooredoo, Baladna, Qatar Islamic Bank, QNB, Commercial Bank, Ezdan, Mazaya Qatar and Milaha. In the juniour bourse, Techno Q saw its shares appreciate in value.

Nevertheless, Doha Insurance, Beema, Mannai Corporation, Al Khaleej Takaful and Qatar Islamic Insurance were among the shakers in the main market.

The foreign institutions’ net buying increased substantially to QR87.91mn compared to QR16.82mn the previous day.

The Gulf individual investors’ net profit booking eased marginally to QR1.1mn against QR1.14mn on August 4.

However, the local retail investors’ net selling strengthened significantly to QR48.59mn compared to QR23.71mn on Monday.

The domestic institutions’ net selling expanded drastically to QR36.54mn against QR0.95mn the previous day.

The Arab retail investors turned net sellers to the tune of QR5.82mn compared with net buyers of QR1.63mn on August 4.

The foreign individuals were net sellers to the extent of QR0.81mn against net buyers of QR1.99mn on Monday.

The Gulf institutions’ net buying weakened perceptibly to QR4.96mn compared to QR5.36mn the previous day.

The Arab institutions had no major net exposure for the third straight session.

The main market saw 32% jump in trade volumes to 235.07mn shares and 35% in value to QR488.79mn but on 23% decline in deals to 23,601.

In the venture market, a total of 5,000 equities valued at QR0.01mn changed hands across two transactions.