Doha: The Qatar Stock Exchange (QSE) Index closed this week with a notable decline of 3.38 percent, losing 338.27 points to settle at 9,682 points compared to last week's close. The downturn was attributed to negative performances across all sectors, prominently led by the telecommunications sector, which fell by approximately 4.61 percent. This was followed by a 3.78 percent drop in the consumer goods and services sector, and a 3.56 percent decline in the industrial sector.
According to Qatar News Agency, financial analyst Mubarak Al Tamimi commented on QSE's weekly performance, indicating that the index's continued decline was due to persistent selling pressure, ongoing geopolitical tensions in the region, and the lack of catalysts related to semiannual dividend distributions. Al Tamimi described the current situation as a "strong correction," influenced by external factors and pressure on leading stocks, particularly those in the banking sector.
He further elaborated that the current conditions do not necessarily indicate the onset of a long-term downward trend. He emphasized that the 9,528-point level remains a crucial technical support level that could capture the interest of market makers and investors looking for buying opportunities at lower prices. Despite losing key levels at 10,205 and 10,100 points, which reinforced negative pressures, Al Tamimi suggested that investors should exercise greater caution.
Al Tamimi added that there is potential for a further decline toward the 9,528-point level, which may present an opportunity for liquidity to enter the market and for market makers and investors to engage in gradual purchases. He noted that while the short-term outlook remains negative, a fall to the historical low of 9,165 points recorded in May 2022 appears unlikely unless there is a significant escalation in geopolitical risks.
In conclusion, Al Tamimi highlighted the positive opportunities available for medium- and long-term investors at support levels, especially in leading stocks with strong fundamentals.
