QSE rises 0.6% as investors position ahead of third-quarter earnings

The Qatar Stock Exchange (QSE) experienced a weekly gain, with its general index increasing by 0.6 percent to reach 9,824.49 points. This rise occurred as investors evaluated their positions ahead of the third-quarter earnings season. The market capitalization also rose by 0.8 percent to QR591.5 billion from the previous week's close of QR586.8 billion.

Out of the 54 companies traded, 29 closed higher, while 23 declined, with two remaining unchanged. Qatar Investors Group led the gains, surging 14.8 percent, while Damaan Islamic Insurance saw the biggest decline, dropping 5.3 percent. Industries Qatar, Qatar Islamic Bank, and Ooredoo were the key contributors to the index's weekly rise, adding 25.65, 16.27, and 14.58 points, respectively.

The Industrials sector drove the market gains, while the Transportation sector recorded the steepest decline. Despite the overall improvement, the trading activity was mixed, with total traded value falling 28.4 percent to QR1.798 billion. The number of transactions increased by 14.8 percent to 821.5 million shares, while investor flows showed a shift in sentiment, with foreign institutions turning net buyers and Qatari retail investors increasing their net buying.

Financial markets analyst Youssef Bouhlaika attributed the recent selling pressure to investors reassessing their positions before the earnings season, with third-quarter results expected to indicate companies' ability to maintain profitability amidst higher financing costs and slower activity in certain sectors. Bouhlaika highlighted the Qatari economy's resilience, ongoing investments, and strong financial positions of many listed companies as factors supporting the market's prospects for recovery in the third quarter.