Qatar Stock Exchange sees profit-taking after strong rally

Doha, Qatar: The Qatar Stock Exchange (QSE) experienced profit taking last week and early this week, following eight consecutive weeks of growth, acco...

Doha, Qatar: The Qatar Stock Exchange (QSE) experienced profit-taking last week and early this week, following eight consecutive weeks of growth, according to Ramzi Qasmieh, Investment Manager at Qatar Securities Company. 

The index, which has climbed 8.9 percent since the start of the year, saw some top-performing stocks lose momentum after hitting their highest levels in more than three years.

“This profit-taking was expected,” Qasmieh told The Peninsula in an interview, noting that it came as part of a “gradual, rather than sudden, price correction.” He emphasised that Monday’s trading session was particularly affected by activity in Industries Qatar, which was not eligible for its first-half dividend payouts, further influencing investor sentiment.

Despite the correction, sector performance remained uneven, with banking and financial services leading the market. The sector rose 3.54 percent this week, while the transportation sector posted gains of 2.87 percent. Qasmieh attributed the strong performance of banks to robust foreign fund inflows.

“Foreign funds made evident purchases of bank shares, considering the quality of these banks’ assets and their profitability levels, along with the appealing valuations of their share prices in comparison to those of banks in the region,” he said.