QSE to face Expected Selling Pressure, Buying Opportunities: Financial Analyst

The Qatar Stock Exchange (QSE) suffered a decline of 3.38 percent this week, witnessing a drop of 338.27 points, bringing the index to 9,682 points from the previous week's close. This downturn was influenced by negative performances across all sectors; the telecommunications sector saw a drop of around 4.61 percent, while the consumer goods and services sector declined by 3.78 percent, with the industrial sector following at a 3.56 percent decrease.

Mubarak Al Tamimi, a financial analyst, commented on QSE's weekly performance, highlighting the ongoing decline due to selling pressure, geopolitical tensions in the region, and the lack of catalysts for semiannual dividend distributions. He characterized the current scenario as a "strong correction" driven by external factors pressuring leading stocks, particularly those in the banking sector.

Al Tamimi clarified that these conditions do not necessarily mean the start of a long-term downward trend, as the historical support level of 9,528 points still exists, which could attract market makers and investors looking for buying opportunities at reduced prices.

The index has reached levels 10,205 and 10,100, which have been significant support levels, adding to the negative pressure. Investors are advised to be more cautious under these circumstances. Al Tamimi mentioned that the market could see further decline towards the 9,528-point level, presenting a potential area where liquidity could enter, allowing market makers and investors to gradually purchase shares.

Although a dip to the historical low of 9,165 points, noted in May 2022, seems improbable at this point, unless geopolitical risks escalate significantly.

Despite the short-term negative outlook, Al Tamimi indicated that there are positive opportunities for medium- and long-term investors, especially in leading stocks with strong fundamentals.