Concerns over Fed rate hike rattle QSE as index drops 166 points; M-cap erodes QR9bn
Worries over an impending sharp rate hike in the United States rattled global markets, the reverberation of which was felt on the Qatar Stock Exchange, which on Monday lost 165 key index points and QR 9 billion in market capitalization. .
The transport, banking and telecommunications counters saw above-average selling pressure as Qatar’s 20-stock index plunged 1.19% to 13,801.16 points, despite falling reached an intraday high of 13,995 points.
Local retail investors were increasingly net sellers in the market, with year-to-date gains of 18.71%.
Gulf funds were also increasingly net profit takers on the exchange, whose capitalization fell by more than QR 9 billion or 1.21% to QR 770.15 billion, mainly thanks to the segments of the mid and small caps.
The Islamic Index fell faster than other indices in the market, which saw a total of 0.07 million exchange-traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR 0.45 million change hands on 15 trades.
Arab individuals turned bearish in the market, which saw no sovereign bond trading.
Net purchases of national funds were seen to weaken significantly on the exchange, which saw no trading in Treasuries.
The Total Return Index fell 1.19% to 28,269.26 points, the All Share Index fell 1.2% to 4,383.49 points and the Al Rayan Islamic Index (Price) fell 1.33% to 3 014.43 points.
The index for the transport sectors fell by 2.38%, telecoms (1.93%), banks and financial services (1.38%), insurance (1.12%), real estate ( 0.95%) and industrialists (0.77%); while consumer goods and services increased by 0.18%.
Over 80% of constituents traded were in the red in the main market and included Mannai Corporation, Doha Insurance, Milaha, Aamal Company, Estithmar Holding, QNB, QIIB, Gulf International Services, QLM, Ezdan, Barwa and Ooredoo.
In the venture capital market, Al Faleh Educational Holding saw its shares depreciate.
Nevertheless, Qatari German Medical Devices, Ahlibank Qatar, Woqod, Qatar National Cement and Dlala were among the main market winners. In the junior stock market, Mekdam Holding saw its shares rise in value.
Qatari retail net sales increased significantly to QR 72.72 million from QR 46.27 million on August 21.
Net sales of Gulf institutions increased noticeably to QR 10.64 million from QR 7.59 million the previous day.
Arab individuals became net sellers at QR 5.12 million against net buyers of QR 11.33 million on Sunday.
Gulf retail investors were net sellers at QR 2.88 million against net buyers of QR 1.08 million on August 21.
Net purchases by national institutions decreased significantly to QR 27.17 million from QR 45.84 million the previous day.
However, net purchases by overseas institutions increased significantly to QR 66.09 million from QR 2.48 million on Sunday.
Foreign retail net profit bookings weakened markedly to QR 1.9 million from QR 6.87 million on August 21.
Arab funds had no major net exposure for the second consecutive day.
Total trading volume on the main market fell 9% to 203.43 million shares, while value jumped 26% to QR 774.42 million and trades jumped 31% to 18,494.
In the venture capital market, trading volumes plunged 46% to 0.28 million shares, value by 58% to 1.53 million QR and transactions by 58% to 76.