QSE closes week higher on institutional support, stable economic outlook

Doha [Qatar], February 6: The Qatar Stock Exchange (QSE) ended the week on a positive note, with its benchmark index gaining 44.98 points, or 0.4 percent, to close at 11,355.36 points, supported by select heavyweight stocks and continued foreign institutional buying.
Market capitalisation rose by 0.6 per cent to QR679.8 billion, compared to QR675.7 billion at the end of the previous trading week, reflecting improved investor sentiment despite lower trading activity. Of the 54 listed companies that traded during the week, 25 stocks closed higher, 26 declined, while three remained unchanged.
Qatar Insurance Company (QATI) emerged as the best-performing stock of the week, posting a gain of 5.6 percent, while Gulf International Services (GISS) was the worst performer, shedding 8.4 percent over the same period.
The weekly index increase was primarily driven by gains in heavyweight stocks, led by QNB Group (QNBK), AlRayan Bank (MARK) and Nakilat (QGTS), which together provided substantial support to the market. QNBK contributed 50.68 points to the index's rise, followed by MARK with 17.53 points and QGTS with 13.42 points, underlining the continued influence of banking and transport stocks on overall market performance.
Trading activity, however, remained subdued. Total traded value during the week declined by 25.6 percent to QR1,872.6 million, compared with QR2,515.6 million in the previous week. QNBK topped the value chart, accounting for QR236.3 million worth of shares traded.
Similarly, traded volume fell by 24.4 percent to 580.9 million shares, down from 768.1 million shares a week earlier. The number of transactions also dropped by 25.9 per cent to 121,531, compared with 164,045 transactions in the prior week. Qatar Aluminum Manufacturing Company (QAMCO) led the volume chart, with 85.6 million shares changing hands during the week.
On the investor front, foreign institutions remained net buyers of Qatari equities, albeit at a slower pace. They recorded net buying of QR227.4 million during the week, compared to QR325.5 million in the previous week, reflecting sustained confidence in the local market. In contrast, Qatari institutions continued to be net sellers, posting net selling of QR167.7 million, higher than the QR79.3 million recorded a week earlier.
Foreign retail investors ended the week with marginal net selling of QR2.4 million, an improvement from net selling of QR57.8 million in the prior week. Qatari retail investors also remained net sellers, with net selling of QR57.3 million, compared with QR188.4 million in the previous week. On a year-to-date basis, global foreign institutions remain net buyers of Qatari equities to the tune of $297.1 million, while GCC institutions hold net long positions worth $109.9 million.
Commenting on market performance, financial market analyst Youssef Buhulaiqa told Qatar News Agency (QNA) that the QSE is expected to continue its positive trajectory in the coming period, with the general index likely to record further gradual gains. He attributed this outlook to improving corporate results, anticipated distributions, and stable economic and monetary conditions, which together enhance the chances of maintaining positive and stable levels in the short and medium term.
Buhulaiqa noted that the QSE index has succeeded in maintaining its balance, benefiting from strong local economic fundamentals and the attractiveness of Qatar's investment environment, at a time when global markets are facing heightened uncertainty and investors worldwide are increasingly turning to safe assets.
He added that economic indicators point to continued robust growth in Qatari economic activity, supported by infrastructure projects, government spending and the stability of the financial sector. He also highlighted the emergence of positive technical signals, indicating that the general index is stabilising above the 11,250-point level - a key technical and psychological threshold that strengthens prospects for continued positive performance and helps limit selling pressures in the short term.
Concluding his remarks, Buhulaiqa said that with the approach of the general assembly season for listed companies, investors are increasingly anticipating announcements of cash dividends and bonus shares for 2025. These expectations, he said, are among the main drivers of liquidity movement in the coming period, particularly in leading stocks known for stable returns.
Source: Qatar Tribune