Fed action weighs on QSE sentiment; reservoir index 537 points

The sharp hike in interest rates by the US Federal Reserve to tame 40-year high inflation has impacted the Qatar Stock Exchange, which fell 537 points and wiped out QR 26 billion in market capitalization this week.
Domestic funds were increasingly seen in net selling as Qatar’s 20-stock index fell 4.1% this week, which saw QSE chief executive Tamim Hamad al-Kawari tell a conference in London that the stock exchange is focused on improving liquidity.
Weakening net purchases by foreign institutions had their influence on the market this week, which saw the Commercial Bank close a $750 million Asian syndicate term loan facility.
Net purchases by overseas individuals also declined this week, which saw Doha Bank tap QNBFS as a liquidity provider for its QETF-sponsored exchange-traded fund.
A sell-off across the board, particularly in industries, dampened sentiment in the stock market this week which saw Gulf Warehousing Company (GWC) sign a pact with Ponticelli Freres Group.
Gulf individuals became net profit takers this week which saw global ratings agency Standard and Poor’s upgrade Al Khaleej Takaful’s rating.
Around 94% of constituents traded on the main market were in the red this week, which saw Qatar’s trade surplus swell by 86% year-on-year in May 2022.
Nonetheless, Arab individuals were seen on the rise this week, which saw a total of 0.2 million QETFs valued at QR 2.45 million change hands over 40 transactions.
Gulf individuals were also seen as net buyers this week, which saw up to 0.84 million QATRs sponsored by Masraf Al Rayan worth 2.29 million QRs traded across 133 transactions.
Overall trade and turnover in the main market increased this week, with the industrial and banking sectors together constituting more than 72% of total trading volume.
Market capitalization was seen eroded by more than QR 26 billion or 3.62% to QR 705.8 billion, mostly in the large and mid cap segments this week, which saw no sovereign bond trading and treasury bills.
The total return index fell 4.1%, the All Islamic index 3.62% and the All Share index 3.56% this week.
The industry sector fell by 5.81%, banking and financial services (3.47%), transport (3.09%), real estate (3.01%), insurance (0. 78%), telecoms (0.61%) and consumer goods and services (0.06%). the week.
Major agitators in the main market included Commercial Bank, Qatar Industries, Qamco, Qatar Industrial Manufacturing, Qatar First Bank, Doha Bank, Masraf Al Rayan, Qatari German Medical Devices, Baladna, Qatar Electricity and Water, Qatar Insurance, Qatar Islamic Insurance, Ezdan, Mazaya Qatar, Milaha and GWC; while Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate this week.
Nevertheless, Qatar General Insurance and Reinsurance, Woqod and Qatar Cinema and Film Distribution were among the main market winners this week.
In the main market, the banking and financial services sector accounted for 39% of total trade volume, industries (33%), consumer goods and services (11%), real estate (10%), transport (4%), telecommunications (2%) and insurance (1%) this week.
In value terms, the share of banks and the financial sector was 64%, industries (20%), consumer goods and services (6%), transport and real estate (3% each), telecommunications (2 %) and insurance (1%). this week.
The net sale of domestic funds increased significantly to QR 209.99 million from QR 77.1 million in the week ended June 9.
Gulf institutions became net sellers at QR 23.13 million compared to net buyers of QR 74.96 million the previous week.
Net purchases by foreign funds fell sharply to QR 242.74 million from QR 304.66 million a week ago.
Net purchases by overseas individuals weakened significantly to QR 1.82 million from QR 5.15 million the previous week.
However, Arab individuals were net buyers at QR 24.36 million compared to net sellers of QR 22.23 million a week ago.
Net purchases by Arab institutions increased slightly to QR 2.87 million from QR 1.72 million in the week ended June 9.
Gulf individuals became net buyers at 2.1 million QR compared to net sellers of 7.07 million QR the previous week.
Qatari retail net profit bookings dropped drastically to QR 40.76 million from QR 280.08 million a week ago.
Total trading volume in the main market increased by 6% to 953.73 million shares, value by 56% to 4.91 billion QR and trades by 37% to 111,528.
Banking and financial services sector trading volume more than doubled to 372.84 million shares and value more than doubled to QR 3.14 billion on a 70% increase in trades to 62 955.
However, there was a 38% fall in transport sector trading volume to 34.9 million shares and 38% in value to 167.41 million QR, but a 3% increase in trading at 5,105.
The insurance sector’s trading volume fell 37% to 11.75 million shares, the value fell 51% to 32.81 million QR and trades fell 13% to 1,438.
The consumer goods and services sector saw a 30% contraction in trading volume to 101.24 million shares, but a 4% increase in value to QR 308.54 million and less than 1% transactions at 6,939.
Real estate trading volume decreased by 24% to 95.98 million shares, value by 14% to QR 163.03 million and trades by 15% to 5,225.
The market saw a 14% contraction in telecom trading volume to 21.3 million shares, but a 28% increase in value to 96.31 million QR and 53% increase in trades to 5 465.
The industrial sector’s trading volume fell 13% to 315.71 million shares and the value fell 3% to QR 1 billion, while transactions jumped 16% to 24,401.
The venture capital market recorded a decline of 56.17% in trading volumes to 1.49 million shares, 56.16% in value to 9.78 million QR and 51.74% transactions at 555.

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