QSE seen in corrective phase to set up new buying positions

The Qatar Stock Exchange index concluded the week with a 0.370% drop, slipping 37.47 points to hit 10,028 points, amid challenges in three key sectors. Analyst Mubarak al-Tamimi of Qatar News Agency reported the QSE endured a corrective phase during the trading week. This adjustment came as the broad index neared a resistance level of 10,205 points, where it faced selling pressure from profit-taking after a surge in most sectors, with growth rates surpassing 10%.

Al-Tamimi explained the current decline is a typical market correction since several stocks hit overbought levels following the rally. He noted profit-taking doesn't necessarily indicate a change in the market trend; instead, it shows consolidation of gains and a setup for new buying positions. The index is presently encountering a support level at 9,919 points, a crucial technical marker for the upcoming period.

If the market holds above this level, it would boost trading stability and renewed buying momentum. However, a fall below the 9,919-point threshold might push the index to test the next support at 9,857 points, requiring close monitoring of investor sentiment and liquidity flow in the forthcoming sessions.

Al-Tamimi pointed out that if the QSE rebounds to test the resistance level of 10,205 points and breaks through, it could open the door to higher technical levels, including 10,487 and then 10,719 points, hinting at a potential upward trend if buying momentum endures and bellwether stocks improve. On the liquidity front, the market has reached historic levels, signaling a renewed investment interest from local and foreign investors, particularly in bellwether stocks and those with significant weight in the index.

He observed that certain stocks reaching their daily upper limits indicate strong demand for several companies, reflecting a positive investor appetite, especially with gains across multiple sectors throughout the week.