Extremely weak oil prices, rising geopolitical tensions and higher than expected depreciation of Chinese currency led Qatar Stock Exchange (QSE) plunge 662 points; making it the second worst performer in the Gulf region during the first week of 2016.

About 98% of the traded stocks were in the red and capitalisation knock off QR33bn during the week which saw the Ministry of Development Planning and Statistics disclose that Qatar’s economy is estimated to have grown 3.8% year-on-year during the third quarter of 2015 mainly on the back of construction, finance, trade and utilities sectors.

An across the board selling – particularly in the real estate, banking and industrials – led the 20-stock Qatar Index plummet 6.35% during the week compared to 9.93% in Saudi Arabia, 5.86% in Dubai, 4% in Abu Dhabi, 2.49% in Kuwait, 1.17% in Bahrain and 0.76% in Muscat.

Opening the week weak at 10,314 points, the market kept falling for the next two sessions, after which it showed some resiliency to gain on Wednesday but again subjected to stronger profit taking on the last day and thus the index settled at 9,767 points.

Domestic institutions turned net profit takers during the week, which also saw the total trade turnover on the decline.

However, local and non-Qatari individual investors turned bullish and there was lower net selling by foreign institutions during the week which saw overall trade volumes shrank.

The index that tracks Shariah-principled stocks was seen melting faster than the other indices during the week which witnessed the banking, realty and industrials sectors account for about 71% of the total trading volume.

The 20-stock Total Return Index shed 6.35%, All Share Index (comprising wider constituents) by 6.13% and Al Rayan Islamic Index by 7.02% during the week which saw Gulf International Services and Masraf Al Rayan dominate the trading ring in terms of volume and value.

Real estate stocks plummeted 8.09%, banks and financial services (6.43%), industrials (6.35%), consumer goods (5.75%), insurance (4.4%), transport (3.21%) and transport (2.11%) during the week.

Of the 43 stocks, as many as 41 declined, while one was unchanged. Another one was not traded during the week which saw international rating agency Moody’s withdraw the ‘Baa1’ insurance financial strength rating and stable outlook on Qatar Islamic Insurance Company (QIIC).

Market capitalisation eroded 5.92% to QR520.41bn with micro, large, mid and small cap equities melting 6.66%, 6.32%, 5.41% and 4.58% respectively during the week.

All of the 12 banks and financial services, the five insurers, the four real estate, the three transport and the two telecom; eight of the nine industrials and seven of the eight consumer goods stocks closed lower during the week.

Major losers included QNB, Industries Qatar, Qatari Investors Group, Gulf International Services, Qatar Insurance, Barwa, Aamal Company, Vodafone Qatar, Mesaieed Petrochemical Holding, Commercial Bank, Masraf Al Rayan, al khaliji, Nakilat and Qatar Islamic Insurance during the week.

Domestic institutions turned net sellers to the tune of QR69.23mn against net buyers of QR259.95mn the previous week.

However, local retail investors turned net buyers to the extent of QR61.34mn compared with net sellers of QR88.63mn the week ended December 31.

Non-Qatari retail investors were also net buyers to the tune of QR22.02mn against net sellers of QR109.8mn the previous week.

Foreign institutions’ net profit booking weakened to QR14.13mn compared to QR61.53mn the week ended December 31.

Total trade volume fell 23% to 18.54mn shares, value by 24% to QR717.38mn and transactions by 1% to 13,456 during the week.

There was 54% plunge in the consumer goods sector’s trade volume to 1.12mn equities, 48% in value to QR37.22mn and 30% in deals to 948.

The industrials sector’s trade volume plummeted 41% to 4mn stocks, value by 45% to QR196.86mn and transactions by 21% to 3,284.

The market witnessed 37% shrinkage in the telecom sector’s trade volume to 2.76mn shares, 30% in value to QR63.17mn and 6% in deals to 2,134.

The transport sector’s trade volume tanked 25% to 1.2mn equities and value by 44% to QR32.11mn; while transactions were up 3% to 509.

The insurance sector saw 22% decline in trade volume to 0.32mn stocks, 11% in value to QR20.92mn and 15% in deals to 342.

However, the real estate sector’s trade volume surged 16% to 4.39mn shares, value by 10% to QR91.82mn and transactions by 29% to 2,125.

The banks and financial services sector reported 3% expansion in trade volume to 4.75mn equities, 6% in value to QR275.28mn and 27% in deals to 4,114.

In the debt market, there was no trading of treasury bills and government bonds during the week.