The UN atomic watchdog's green signal to end Iran sanctions and its apprehensions over supply glut in oil market appears to have caused mayhem in the Gulf equity market, including Qatar Stock Exchange, which plummeted 657 points to settle just above the 8,500 mark.

Four of the stocks touched the lower 10% circuit filter and another seven was near that level as the 20-stock Qatar Index plunged 7.16%, the largest one-day loss since December 2009, to touch about three-year low of 8,527.75 points.

“It will take at least six months for Iranian oil to reach the global market, but the market is being swayed by sentiments regarding the oil price,” an analyst with a leading brokerage house said.

An across the board selling -- particularly in the real estate, telecom, consumer goods and transport stocks -- was visible in the market, whose capitalisation eroded more than QR32bn and trading turnover was on the decline amid higher volumes.

Local retail investors’ buying interests weakened, their Gulf counterparts turned bearish and there was increased net selling by non-Qatari individual investors in the bourse, which is down 18.23% year-to-date.

The index that tracks Shariah-principled stocks was seen melting faster than the other indices in the market, where the realty, banking, industrials and telecom sectors together accounted more than 85% of the total trading volume.

Market capitalisation eroded 6.55% to QR457.86bn with mid, large, micro and small cap equities melting 7.32%, 6.23%, 5.77% and 5.63% respectively.

The Total Return Index plunged 7.16% to 13,255.17points, All Share Index by 6.84% to 2,281.36 points and Al Rayan Islamic Index by 8.29% to 3,061.39 points.

Real estate stocks tanked 9.94%, telecom (9.32%), consumer goods (8.13%), transport (7.17%), industrials (7.02%), insurance (5.26%) and banks and financial services (5.13%).

All of the traded stocks were in the red with major losers being Ezdan, United Development Company, Gulf Warehousing, Widam Food, Industries Qatar, Vodafone Qatar, Ooredoo, Qatar Islamic Bank, Nakilat, Barwa, Mazaya Qatar, Mesaieed Petrochemical Holding, Gulf International Services, Masraf Al Rayan, QIIB, Doha Bank and Commercial Bank.

Local retail investors’ net buying decreased substantially to QR24.27mn compared to QR74.63mn last Thursday.

The GCC (Gulf Cooperation Council) individuals turned net sellers to the tune of QR7.44mn against net buyers of QR4.7mn on January 14.

Non-Qatari individual investors’ net selling rose to QR16.64mn compared to QR5.05mn the previous trading day.

However, domestic institutions turned net buyers to the extent of QR16.34mn against net sellers of QR13.68mn last Thursday.

Non-Qatari institutions’ net profit booking weakened considerably to QR9.72mn compared to QR40.91mn on January 14.

The GCC institutions’ net selling plunged to QR6.77mn against QR19.74mn the previous trading day.

Total trade volume rose 37% to 12.31mn shares, while value shrank 4% to QR374.02mn but on 7% jump in deals to 5,186.

The insurance sector’s trade volume more than doubled to 0.11mn equities and value almost doubled to QR6.37mn but on 11% fall in transactions to 72.

The real estate sector’s trade volume more than doubled to 3.3mn stocks and value also more than doubled to QR58.34mn on almost doubled deals to 1,108.

There was 98% surge in the transport sector’s trade volume to 0.91mn shares, 61% in value to QR23.83mn and 6% in transactions to 307.

The industrials sector’s trade volume soared 63% to 2.95mn equities, value by 29% to QR114.2mn and deals by 24% to 1,117.

The telecom sector saw 57% expansion in trade volume to 1.27mn stocks but on 1% fall in value to QR17.4mn and 5% in transactions to 633.

However, the consumer goods sector’s trade volume plummeted 32% to 0.77mn shares, value by 26% to QR33.42mn and deals by 23% to 562.

The banks and financial services sector reported 7% decline in trade volume to 2.98mn equities, 37% in value to QR120.46mn and 14% in transactions to 1,387.

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