Doha: The Qatar Stock Exchange index closed this week's trading down by 1.08 percent, losing 113.58 points to settle at 10,379 points compared to the previous week, under pressure from five sectors.
According to Qatar News Agency, the insurance sector recorded the largest decline at 2.71 percent, while the telecommunications sector achieved the highest gains with a growth of 0.19 percent. Youssef Bouhlaika, a financial markets analyst, noted that the general index witnessed a decline during the week's trading after rebounding from its lowest levels in about a month and a half. He indicated that selective buying operations supported the market and prevented sharp declines.
Bouhlaika expected the general index to continue moving within narrow ranges until after the Eid Al Adha holiday, citing the absence of strong catalysts and ongoing caution linked to geopolitical and global economic developments. He highlighted the volatile and cautious performance of the Qatar Stock Exchange this week, balancing optimism over possible political settlements that might ease regional tensions against concerns over the repercussions of regional escalation, rising inflation rates, and borrowing costs on corporate earnings and financial markets.
He observed an acceleration in selling activity by investors during May, attributed to continued inflationary pressures from geopolitical tensions and rising financing costs, affecting investor appetite for equities. This coincided with rising global bond yields, which added pressure on local equity markets, as long-term yields impacted corporate valuations, especially in markets that rely on high growth rates, prompting investors to reassess their investment positions.
In conclusion, Bouhlaika emphasized that political and economic uncertainty remains a key factor influencing market trends, particularly amid ongoing tensions and investor anticipation of developments in shipping routes and energy supplies through the Strait of Hormuz, given their direct impact on regional economies and markets.