The Qatar Stock Exchange (QSE) registered gains on Tuesday, with its main index adding over 28 points and market capitalisation growing by nearly QR2bn. The positive performance was influenced by easing trade tensions between the US and China, alongside robust buying from Gulf institutions.
The 20-stock Qatar Index climbed 0.26% to close at 10,924.78 points, recovering from an intraday low of 10,886. This pushed the market’s year-to-date gains to 3.35%. The overall market capitalisation increased by QR1.72bn, or 0.26%, to QR653.22bn, driven primarily by small-cap stocks.
Sector and Stock Performance
Demand was particularly strong for insurance and industrial stocks. The insurance sector index saw the largest increase, rising by 0.75%, followed by the industrials index which gained 0.73%. Other advancing sectors included transport (0.25%), banks and financial services (0.09%), and telecoms (0.07%). In contrast, the consumer goods and services sector fell by 0.22%, and real estate dipped by 0.03%.
Overall, 24 stocks advanced while 21 declined and seven remained unchanged. Key gainers included Qatar General Insurance and Reinsurance, Estithmar Holding, Industries Qatar, Doha Insurance, and Commercial Bank. Among the stocks that lost value were Qamco, Baladna, Widam Food, Al Mahhar Holding, and Dlala. In the venture market, Techno Q shares also depreciated.
Shifts in Investor Activity
A significant shift in investor sentiment was evident, with Gulf institutions turning strongly bullish. They became net buyers to the value of QR97.09mn, a stark reversal from being net sellers of QR9.1mn the previous day. This regional confidence contrasts with trends seen elsewhere, such as the recent announcement that the Middlesex University Dubai owner is to list 30% of its shares on the Saudi Exchange.
However, other investor groups engaged in profit-taking. Local retail investors were net sellers of QR39.09mn, compared to being net buyers of QR12.08mn on Monday. Domestic institutions significantly increased their net selling to QR26.87mn. Foreign institutions also expanded their net selling substantially to QR23.26mn from QR1.22mn the day before. Foreign retail investors, Arab individuals, and Gulf individuals also turned into net sellers.
Trading Volume and Value Increase
Trading activity on the main market saw a considerable rise. Trade volume jumped 32% to 130.62mn shares, while the value of transactions surged 67% to QR479.51mn. The number of deals also increased by 9% to 20,291. Other market indicators also ended in positive territory, with the Total Return Index gaining 0.26%, the All Share Index rising 0.22%, and the All Islamic Index up by 0.24%.
The day’s trading demonstrated a divergence between strong regional institutional confidence and profit-taking by local and international investors. Despite the widespread selling from several key groups, the substantial buying from Gulf institutions was enough to steer the market to a positive close.
