US Rate Cut Expectations Place QSE at Multi-Year High; M-Cap Adds QR2.38bn

With expectations running high on interest rate cut in the US, investors, especially domestic funds, increasingly bought equities as the Qatar Stock Exchange Wednesday gained as much as 42 points to touch a multi-year high.

The industrials, consumer goods and transport counters witnessed higher than average demand as the 20-stock Qatar Index rose 0.37% to 11,325.92 points, recovering from an intraday low of 11,253 points.

The Gulf institutions were increasingly into net buying in the main market, whose year-to-date gains improved further to 7.14%.

About 62% of the traded constituents extended gains to investors in the main bourse, whose capitalisation added QR2.38bn or 0.35% to QR673.38bn mainly on small and microcap segments.

The Arab retail investors’ weakened net profit booking had its influence on the main market, which saw no trading of exchange traded funds.

The foreign funds continued to be bullish but with lesser intensity in the main bourse, whose trade turnover and volumes were on the increase.

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

The local retail investors were increasingly net profit takers in the main bourse, which saw no trading of sovereign bonds.

The Total Return Index gained 0.37%, the All Islamic Index by 0.71% and the All Share Index by 0.34% in the main market.

The industrials sector shot up 1.37%, consumer goods and services (0.44%), transport (0.44%), banks and financial services (0.14%) and real estate (0.09%); while telecom declined 1.04% and insurance 0.5%.

Major movers in the main market included Estithmar Holding, Qatar Electricity and Water, AlRayan Bank, Mesaieed Petrochemical Holding, Ahlibank Qatar, Doha Bank, Qatar Oman Investment, Industries Qatar, Mazaya Qatar, Milaha and Gulf Warehousing.

Nevertheless, Qatar Islamic Bank, Ooredoo, Qatar Insurance, Ezdan, Commercial Bank and Vodafone Qatar were among the shakers in the main bourse.

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

The domestic institutions turned net buyers to the tune of QR25.59mn against net sellers of QR36.54mn the previous day.

The Gulf institutions’ net buying strengthened perceptibly to QR8.39mn compared to QR4.96mn on August 5.

The Arab retail investors’ net profit booking weakened markedly to QR2.49mn compared to QR5.82mn on Tuesday.

However, the local retail investors’ net selling expanded noticeably to QR54.44mn against QR48.59mn the previous day.

The foreign individuals’ net profit booking increased considerably to QR3.99mn compared to QR0.81mn on Tuesday.

The Gulf individual investors’ net selling grew marginally to QR1.48mn against QR1.1mn on August 5.

The Arab institutions were net profit takers to the extent of QR0.24mn compared with no major net exposure the previous day.

The foreign institutions’ net buying shrank substantially to QR28.66mn against QR87.91mn on Tuesday.

The main market saw a 2% gain in trade volumes to 240.59mn shares, 10% in value to QR540.03mn and 10% in deals to 26,010.

In the venture market, a total of 0.03mn equities valued at QR0.08mn changed hands across four transactions.