QSE Rises Strongly Amid Regional De-escalation Efforts

The Qatar Stock Exchange (QSE) experienced a strong rally this week, as its benchmark index surged by 191.56 points, or 1.9 percent, to close at 10,112.25, successfully reclaiming the crucial 10,000-point level. This positive performance was attributed to improving investor sentiment, easing regional tensions, and renewed foreign institutional buying. Consequently, the market capitalization of listed companies grew by 2.4 percent, rising to QR608.2 billion from QR594.2 billion at the close of the previous trading week. Market breadth remained positive, with 39 of the 54 listed companies recording gains, 13 stocks declining, and two remaining unchanged, indicating widespread buying interest across various sectors.

Trading activity also saw a notable increase during the week. The total value of shares traded rose by 8.6 percent to QR1.698 billion, up from QR1.563 billion in the preceding week. QNB emerged as the most actively traded stock by value, with transactions totaling QR161.8 million. Concurrently, the total traded volume increased by 3.6 percent to 678.2 million shares, compared to 654.8 million shares in the prior week. Qatar Aluminium Manufacturing Company (Qamco) led the volume chart, with 70.5 million shares changing hands. The number of executed transactions stood at 124,383, a slight decrease from 126,679 recorded the previous week. Among individual stocks, Qatar General Insurance was the top performer, soaring 24.3 percent, while Nebras Power was the weakest, declining 3.9 percent.

Investor sentiment received a significant boost from foreign institutional investors, who ended the week as net buyers of QR98.3 million, a sharp reversal from net selling of QR86.6 million in the previous week. This strong foreign inflow underscored renewed confidence in Qatar’s equity market and its robust economic fundamentals. Conversely, Qatari institutions recorded net selling of QR42.2 million, contrasting with net buying of QR40 million in the previous week. Foreign retail investors were net sellers at QR5.4 million, and Qatari retail investors also remained net sellers, offloading QR50.7 million worth of shares. Despite year-to-date net selling by global foreign institutions amounting to $84 million and GCC institutions totaling $13.7 million, this week's strong institutional inflows suggest improving market confidence and a more optimistic outlook.

Financial analyst Mohammed Salem Al Darwish informed the Qatar News Agency that ongoing de-escalation efforts and optimism surrounding the potential reopening of the Strait of Hormuz, combined with Qatar’s strong economic fundamentals and healthy corporate earnings, are expected to sustain the market’s positive momentum in the coming weeks. Al Darwish highlighted that the QSE index successfully breached the psychologically significant 10,000-point level and is anticipated to maintain its gains above this threshold, supported by positive signals indicating easing regional tensions. He added that further signs of de-escalation and a potential agreement to reopen the Strait of Hormuz would provide additional momentum, helping to sustain the index’s upward trajectory. He also emphasized the resilience of the Qatari economy, the strong financial position of listed companies, and healthy corporate fundamentals as key factors bolstering investor confidence and the market's medium-term outlook.