QSE undergoes corrective phase following strong gains

Doha: The Qatar Stock Exchange index concluded the week with a 0.370 percent drop, falling to 10,028 points from last week's close, amid pressure from three sectors. Financial analyst Mubarak Al Tamimi noted that the Qatar Stock Exchange experienced a corrective phase as it neared a critical resistance level at 10,205 points. Strong gains across most sectors drove growth rates exceeding 10 percent during the week, leading to profit-taking among several stocks that had reached overbought levels.

However, this decline is seen as a natural movement, aiming to consolidate gains and establish new buying positions, rather than signaling a change in the overall market trend. The index currently faces an initial support level at 9,919 points, a technical milestone for the period ahead. If the index breaks below this level, it may test the next support at 9857 points.

The analyst emphasized that a return of the index to the 10,205 resistance level, followed by surpassing it, could pave the way for higher targets, including 10,487 points and 10,719 points, suggesting a potential upward trend if buying momentum persists. Liquidity in the market is at an elevated level, indicating a resurgence of investment interest from both local and foreign investors, particularly in bellwether stocks and companies with significant weight in the index.