Oil price fall to an 11-year low and increasing geopolitical tensions on Thursday led Qatar Stock Exchange plunge 304 points in index and QR15bn in capitalisation.
An across the board selling – particularly in the real estate and insurance sectors – led the 20-stock Qatar Index plummeted 3.02% to 9,767.22 points.
The steep correction in the Qatari bourse also reflects the turmoil in the global markets due to higher than expected depreciation of Chinese currency.
More than 88% of the traded equities were in the red in the market, which is down 6.35% year-to-date.
Foreign institutions hurriedly squared off their position and there was also increased net selling from domestic and Gulf institutions in the market, which saw an increased trading turnover.
However, there was increased net buying support especially from local and foreign retail investors in the bourse, where banking, real estate and industrials sectors together accounted for more than 74% of the total trading volume.
Market capitalisation eroded 2.73% to QR520.41n with large, mid, micro and small mid cap equities melting 2.87%, 2.77%, 2.77% and 2.02% respectively.
The Total Return Index shrank 3.02% to 15,181.74 points, All Share Index by 2.87% to 2,606.45 points and Al Rayan Islamic Index by 3.02% to 3,585.21 points.
Realty stocks tanked 4.26%, insurance (3.82%), banks and financial services (2.8%), consumer goods (2.46%), industrials (2.25%), telecom (2.06%) and transport (1.93%).
Major losers included QNB, Industries Qatar, Ezdan, Barwa, Mazaya Qatar, Ooredoo, Vodafone Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Qatar Insurance, Qatar Islamic Bank, Commercial Bank, Doha Bank, Alijarah Holding, Dlala, Nakilat, Qatari German Company for Medical Devices and Widam Food.
Non-Qatari institutions turned net sellers to the tune of QR18.57mn against net buyers of QR26.37mn on Wednesday.
Domestic institutions’ net profit booking rose to QR20.64mn compared to QR19.37mn the previous day.
The GCC (Gulf Cooperation Council) institutions’ net selling strengthened to QR9.78mn against QR6.91mn on January 6.
However, local retail investors’ net buying increased to QR41.32mn compared to QR0.87mn on Wednesday.
The GCC individuals turned net buyers to the extent of QR0.72mn against net sellers of QR0.4mn the previous day.
Non-Qatari individual investors were also net buyers to the tune of QR6.94mn compared with net profit takers of QR0.56mn on January 6.
Total trade volume rose 85% to 6.49mn shares, value by 86% to QR267.99mn and deals by 47% to 4,183.
The transport sector’s trade volume grew almost six-fold to 0.65mn equities and value by more than seven-fold to QR18mn on more than tripled transactions to 220.
The insurance sector’s trade volume almost tripled to 0.13mn stocks and value also almost tripled to QR9.17mn on more than doubled deals to 147.
The real estate sector’s trade volume more than doubled to 1.67mn shares, value soared 85% to QR32.52mn and transactions by 69% to 696.
The banks and financial services sector reported 88% surge in trade volume to 1.73mn equities, 78% in value to QR103.55mn and 23% in deals to 1,110.
The industrials sector’s trade volume expanded 86% to 1.43mn stocks, value by 81% to QR71.91mn and transactions by 73% to 1,129.
The consumer goods sector’s trade volume was up 9% to 0.25mn shares but value more than doubled to QR13.72mn. Deals gained 71% to 264.
However, there was 6% decline in the telecom sector’s trade volume to 0.63mn equities but on 18% rise in value to QR19.12mn and 4% in transactions to 617.
In the debt market, there was no trading of treasury bills and government bonds.