Notwithstanding the inclusion of all its 22 indicated scrips in the FTSE Russell emerging market index, Qatar Stock Exchange (QSE) was the worst performing bourse in the Gulf region as domestic institutions played spoilsport during the week.

Steep correction, especially in the small, micro and large cap segments, led the key 20-stock benchmark of QSE plunge 298 points and capitalisation eroded as much as QR15bn during the week, which saw QNB Group, Qatar's largest bank in terms of assets, get the necessary approvals to establish full-fledged banking operations in India.

Realty, insurance and banking counters witnessed higher than average selling pressure, leading the QSE key index knock off 2.68% during the week which saw a global wealth management firm UBS view that Qatar's foreign exchange peg is least threatened due to its current account surplus and its currency's devaluation may not be feasible on high external debt.

The bearish sentiments in the QSE was rather stronger in the region as Muscat saw its index decline 1.97%, Abu Dhabi (0.87%), Kuwait (0.36%) and Bahrain (0.22%); whereas Saudi Arabia and Dubai gained 0.75% and 0.56% respectively during the week which saw Nakilat’s subsidiary Damen Shipyards Qatar deliver five vessels as part of an eleven-vessel order for New Port Project.

Trading turnover more than doubled on robust expansion in volumes during the week which witnessed Qatar register 2.8% increase in consumer price index inflation in the second quarter on increased transportation costs, due to deregulation of domestic oil prices, and higher costs for package tours.

The Qatari bourse has however made 3.91% gains year-to-date compared to 11.45% in Dubai, 5.7% in Muscat and 4.03% in Abu Dhabi; whereas Saudi Arabia plunged 12.88%, Bahrain (5.97%) and Kuwait (3.67%).

Both non-Qatar individual investors and institutions were seen overwhelmingly scouting for stocks in the market where banking, real estate, industrials and telecom constituted about 86% of the total trading volume.

There was a marginal increase in net profit booking by local retail investors during the week which saw QIIB chose NCR, a global leader in omni­channel technologies, to monitor and manage its ATM network, helping the bank to improve efficiency and reduce operational costs.

Opening the week strong at 11,197 points, the market kept gaining for the next two days to touch a high of 11,315 points on Tuesday, after which the market witnessed stronger corrections and thus settle at 10,837 points.

Tracking the main barometer, the 20-stock Total Return Index shed 2.68%, All Share Index (comprising wider constituents) by 2.58% and Al Rayan Islamic Index 2.68% during the week.

Realty stocks plummeted 4.48%, insurance (3.33%), banks and financial services (2.39%), industrials (1.95%), transport (1.65%), telecom (1.28%) and consumer goods (1.25%) during the week.

Market capitalisation eroded 2.48% to QR580.73bn as small, micro, large and midcap equities lost 2.67%, 2.45%, 2.27% and 1.08% respectively during the week which saw Masraf Al Rayan dominate the trading ring in terms of volume and value.

Large and microcap stocks have gained year-to-date 4.3% and 2.36%; while mid and small caps shrank 2.39% and 2.17% respectively.

Of the 44 stocks, as many as 42 declined, while only two advanced during the week. All of the 13 banks and financial services; the eight consumer goods; the five insurers; the four realty and the two telecom stocks ended in the red during the week.

Major losers included Qatar Insurance, Industries Qatar, Commercial Bank, Mesaieed Petrochemical Holding, Ezdan, Barwa, Milaha, Gulf Warehousing, Mazaya Qatar, Qatar Islamic Bank, Doha Bank and QIIB; even as Aamal Company and Nakilat bucked the trend during the week.

Domestic institutions’ net selling shot up considerably to QR314.97mn compared to QR105.1mn the previous week.

Local retail investors’ net profit booking also increased to QR6.81mn against QR5.82mn the week ended August 25.

However, foreign institutions’ net buying rose perceptibly to QR284.82mn compared to QR101.38mn the previous week.

Non-Qatari individual investors’ net buying soared to QR36.97mn against QR9.46mn the week ended August 25.

Total volume rose 85% to 36.74mn shares and value more than doubled to QR1.7bn on 46% jump in transactions to 23,200 during the week.

The transport sector’s trade volume more than doubled to 2.91mn equities and value also more than doubled to QR98.73mn on 60% increase in deals to 1,549.

The banks and financial services sector’s trade volume more than doubled to 12.39mn stocks and value more than tripled to QR730.74mn on 86% expansion in transactions to 7,876.

The real estate sector saw 81% surge in trade volume to 7.18mn shares, 87% in value to QR153.2mn and 43% in deals to 3,172.

The industrials sector’s trade volume soared 63% to 6.78mn equities, value by 69% to QR350.74mn and transactions by 36% to 5,363.

There was 43% increase in the telecom sector’s trade volume to 5.22mn stocks to more than double value to QR238.51mn on 23% rise in deals to 3,150.

The consumer goods sector’s trade volume expanded 30% to 1.51mn shares and value by 1% to QR68.43mn; while transactions were down 5% to 1,234.

The insurance sector reported 15% jump in trade volume to 0.76mn equities, 13% in value to QR63.14mn and 37% in deals to 856.

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