Doha:The Qatar Stock Exchange (QSE) index experienced a downturn this week, closing 3.01 percent lower and shedding 285.44 points to settle at 9,192 points. This decline was influenced by pressure from six sectors, with the telecommunications sector experiencing the largest drop of 4.67 percent, while the insurance sector saw a slight gain of 0.17 percent.

According to Qatar News Agency, financial analyst Mubarak Al Tamimi highlighted that the QSE faced significant selling pressure during the week, causing the index to fall below the support level of 9,532 points. This technical development suggests a continuation of the downward trend seen in recent trading sessions.

Al Tamimi explained that the index is currently testing other support levels around 9,079 points. He warned that if the selling pressure continues and no new catalysts emerge, the market could test even lower levels, potentially reaching 8,770 points. However, signs of oversold conditions during the week's trading could lead to buying activity and a gradual recovery in some stocks, especially if liquidity levels improve.

He emphasized that liquidity remains a crucial factor in determining the market's future direction. Improved liquidity could stabilize the index and enhance recovery prospects for stocks. As the third-quarter financial results season nears, Al Tamimi noted that these results could significantly influence trading trends, potentially boosting investor sentiment if they align with expectations.

For investors, Al Tamimi advised focusing on companies with strong financial fundamentals and stable operations, cautioning against making short-term investment decisions based solely on index movements. He stressed the need for caution and close monitoring during this volatile phase, with attention on key support levels, liquidity trends, and third-quarter results as critical factors likely to impact the market's direction.