Market Review and Outlook

The Qatar Stock Exchange (QSE) experienced a significant rise of 6.3% to close at 9,151.18 points, marking a notable increase from the previous week. The market capitalization surged by 5.6% to QR556.0bn, up from QR526.4bn in the prior trading week. Among the 54 companies traded, 49 ended higher while five closed lower. Qatar National Cement (QNCD) led the weekly gains with a 15.0% increase, while QLM Life & Medical Insurance (QLMI) faced the steepest decline at 5.7%.

QNB Group (QNBK), Qatar Islamic Bank (QIBK), and QNB Group (QNBK) were the primary contributors to the index gain, adding 96.94, 79.28, and 54.65 points respectively. The total traded value during the week surged by 50.5% to QR2,805.9mn, up from QR1,863.3mn in the previous trading week. QNB Group (QNBK) commanded the highest value traded with QR330.3mn, while traded volume climbed by 24.3% to 1,099.6mn shares, compared to 884.9mn shares in the prior week.

The number of transactions also increased by 17.7% to 182,479 compared to 155,031 in the previous week.

AlRayan Bank (MARK) recorded the highest traded volume during the week with 144.9mn shares, followed by QNB Group (QNBK) at 108.0mn shares. Foreign institutions maintained their bullish stance, ending the week with net buying of QR119.2mn, a significant jump from QR23.7mn in the previous week. Conversely, Qatari institutions turned bearish, ending the week with net selling of QR21.8mn, compared to net buying of QR71.5mn in the prior week.

Foreign retail investors ended the week with net selling of QR9.1mn, a decrease from QR28mn in the prior week. Qatari retail investors, however, continued selling with QR88.3mn, up from QR67.2mn in the prior week. Global foreign institutions held a net bearish position on Qatari equities of $8.8mn year-to-date, while GCC institutions were net sellers by $10.8mn.

The QE Index, which rose 6.3% over the week, closed at 9,151.2 points, forming a bullish engulfing weekly candlestick. This move may signal the start of a V-shaped recovery, although confirmation is still pending. For now, it is viewed as a pullback within the recent downtrend. Major weekly support is at 9,000 points, though this level is expected to be weak, while resistance is anticipated around 9,600 points.