By Santhosh V. Perumal/Business Reporter

Strong correction -- especially in the telecom and banking sectors – snapped three consecutive days of bullish run in the Qatar Stock Exchange on Wednesday and its key index drained a sizeable 271 points.

Foreign institutions hurriedly squared off their position, leading the 20-stock Qatar Index (based on price data) plummet about 2% to 13,528.67 points.

Large and mid-cap equities came under severe selling pressure in the market, which is, however, up 30.34% year-to-date.

The index that tracks Shariah-principled stock was seen melting slower than the other indices in the bourse, where trading volume was largely skewed towards realty and banking stocks.

The Total Return Index also shed about 2% to 20,177.81 points, All Share Index by 1.78% to 3,420.36 points and Al Rayan Islamic Index by 1.64% to 4,597.51 points.

Market capitalisation eroded 1.95% or more than QR14bn to QR730.41bn with large, mid, small and micro caps melting 2.44%, 1.36%, 0.82% and 0.46% respectively.

Telecom stocks sunk 2.41%, banks and financial services (2.35%), realty (1.68%), industrials (1.43%), consumer goods (0.82%), transport (0.79%) and insurance (0.72%).

More than 81% of the stocks were in the red with major losers being QNB, Industries Qatar, United Development Company, Mazaya Qatar, Qatar Islamic Bank, Commercial Bank, International Islamic, Masraf Al Rayan, Aamal Company, Ezdan, Vodafone Qatar, Ooredoo, Nakilat and Milaha.

However, Islamic Holding Group and Alijarah Holding were seen bucking the trend.

Foreign institutions turned net sellers to the tune of QR97.57mn against net buyers of QR14.48mn on Tuesday.

Domestic institutions’ net buying fell to QR16.95mn compared to QR18.49mn on November 4.

Qatari retail investors turned net buyers to the extent of QR73mn against net profit takers of QR35.8mn the previous day.

Non-Qatari individual investors’ net buying rose to QR7.57mn compared to QR2.83mn on Tuesday.

Total trade volume was up 1% to 11.46mn shares, value by 14% to QR564.98mn and transactions by 19% to 6,591.

The market witnessed 46% surge in the real estate sector’s trade volume to 5.38mn equities, 53 in value to QR139.93mn and 37% in deals to 1,344.

The insurance sector’s trade volume soared 25% to 0.25mn stocks, value by 28% to QR12.86mn and transactions by 56% to 187.

The banks and financial services sector reported 24% expansion in trade volume to 2.32mn shares, 55% in value to QR224.31mn and 45% in deals to 2,201.

However, the telecom sector’s trade volume plummeted 49% 1% to 1.05mn equities, value by 41% to QR30.29mn and transactions by 22% to 485.

There was 47% plunge in the transport sector’s trade volume to 0.65mn stocks, 34% in value to QR30.21mn and 7% in deals to 438.

The consumer goods sector saw its trade volume shrink 40% to 0.5mn shares, value by 28% to QR22.91mn and transactions by 25% to 269.

The industrials sector’s trade volume tanked 13% to 1.31mn equities and value also by 13% to QR104.47mn but on 12% gain in deals to 1,667.

In the debt market, a total of 25,000 treasury bills valued at QR248.96mn traded across three transactions; there was no trading of government bonds.