The kneejerk reaction of investors on Saudi Arabia-Iran standoff on Monday cast a spell on the Qatar Stock Exchange as it lost a sizeable 272 points to settle a tad above the 10,000 mark.
An across the board selling – particularly in the real estate, banks and telecom sectors – led the 20-stock Qatar Index plunge 2.64% to 10,041.7 points.
“It is a kneejerk reaction (to Saudi Arabia’s standoff with Iran). The market will find its momentum, albeit at lower levels as it awaits corporate results,” an analyst with a conventional brokerage firm said.
Global sentiments were also fragile due to weak Chinese manufacturing data, which pulled down the markets across the world.
Local retail investors’ net buying weakened and non-Qatari retail investors and institutions turned bearish in the market, which is down 3.72% year-to-date.
The index that tracks Shariah-principled stocks was seen melting faster than the other indices in the market, where the overall trading turnover was seen expanding.
However, domestic institutions’ net profit booking weakened and there was increased net buying from Gulf individual investors in the bourse.
Mid and large cap equities witnessed larger selling pressure in the market, where realty, banking and industrials sectors together accounted for more than 72% of the total trading volume.
Market capitalisation eroded 2.45% or more than QR13bn to QR533.68n with mid, large, small and micro cap equities melting 3.48%, 2.68%, 2.52% and 1.74% respectively.
The Total Return Index shrank 2.64% to 15,608.38 points, All Share Index by 2.55% to 2,679.74 points and Al Rayan Islamic Index by 2.78% to 3,701.43 points.
Real estate stocks plummeted 3.75%, banks and financial services (2.68%), telecom (2.6%), consumer goods (2.34%), industrials (2.05%), insurance (1.97%) and transport (1.17%).
About 95% of the traded stocks were in the red with major losers being QNB, Industries Qatar, Ezdan, Qatar Islamic Insurance, Barwa, Qatar Islamic Bank, Commercial Bank, Doha Bank, Masraf Al Rayan, Islamic Holding Group, Aamal Company, Gulf International Services, Mesaieed Petrochemical Holding, Ooredoo, Vodafone Qatar, Nakilat and Salam International Investment.
Non-Qatari institutions turned net sellers to the tune of QR2mn against net buyers of QR3.82mn on Sunday.
Non-Qatari individual investors were also net sellers to the extent of QR0.69mn compared with net buyers of QR8.73mn on January 3.
Local retail investors’ net buying weakened to QR0.82mn against QR8.85mn the previous day.
However, the GCC (Gulf Cooperation Council) institutions turned net buyers to the tune of QR1.25mn compared with net sellers of QR0.38mn on Sunday.
The GCC individual investors’ net buying increased to QR3.19mn against QR0.09mn on January 3.
Domestic institutions’ net profit booking declined to QR2.56mn compared to QR21.11mn the previous day.
Total trade volume rose 52% to 3.05mn shares, value by 61% to QR108.82mn and deals by 75% to 2,317.
The real estate sector’s trade volume more than tripled to 0.8mn equities and value more than quadrupled to QR17.48mn on more than tripled transactions to 419.
The insurance sector’s trade volume soared 75% to 0.07mn stocks more than doubling value to QR4.52mn on almost doubled deals to 57.
The banks and financial services sector reported 73% surge in trade volume to 0.78mn shares, 80% in value to QR38.24mn and 84% in transactions to 725.
The consumer goods sector’s trade volume grew 19% to 0.25mn equities to more than double value to QR8.03mn. Deals expanded 42% to 203.
The telecom sector saw 15% increase in trade volume to 0.46mn stocks, 14% in value to QR7.87mn and 77% in transactions to 285.
The transport sector’s trade volume shot up 14% to 0.08mn shares, value by 4% to QR1.98mn and deals by 18% to 59.
There was 5% jump in the industrials sector’s trade volume to 0.62mn equities, 12% in value to QR30.69mn and 40% in transactions to 569.
In the debt market, there was no trading of treasury bills and government bonds.