The Qatar Stock Exchange (QSE) closed the week with a modest gain as investors positioned themselves ahead of the upcoming third-quarter earnings season. The QSE’s general index increased by 60.35 points, or 0.6 percent, to close at 9,824.49, while the market capitalization rose 0.8 percent to reach QR591.5 billion, up from QR586.8 billion the previous week.
Out of 54 traded companies, 29 posted gains, 23 declined, and two remained unchanged. Qatari Investors Group led the advances with a 14.8 percent rise, while Damaan Islamic Insurance recorded the largest decline, falling 5.3 percent. Industries Qatar, Qatar Islamic Bank, and Ooredoo were the top contributors to the index’s weekly increase, adding 25.65, 16.27, and 14.58 points, respectively.
Sector performance was broadly positive, with five sectors showing gains. The Industrials sector led with a 1.76 percent rise, while the Transportation sector experienced the steepest decline, falling 0.85 percent.
Trading activity presented mixed signals. The total traded value dropped 28.4 percent to QR1.798 billion from QR2.512 billion the previous week, with Baladna emerging as the most active stock by value, totaling QR277.5 million in transactions. Conversely, traded volume rose 14.8 percent to 821.5 million shares, compared with 715.4 million shares a week earlier, with Baladna also leading by volume at 225.5 million shares. The number of transactions, however, declined by 6.6 percent to 102,781.
Investor flow data highlighted a shift in sentiment among market participants. Foreign institutional investors moved to net buying, recording purchases worth QR63.5 million compared with net sales of QR127.8 million the previous week. In contrast, Qatari institutions turned net sellers with sales totaling QR137.1 million, reversing from net purchases of QR96.7 million. Foreign retail investors also shifted to net sellers with QR9 million in sales, while Qatari retail investors increased net purchases significantly to QR82.5 million from QR12.6 million.
Despite weekly gains, foreign institutions remained net bearish on Qatari equities overall, holding a net negative position of $41 million year-to-date. Similarly, Gulf Cooperation Council (GCC) institutions remained net sellers, with a net position of $21.2 million.
Financial markets analyst Youssef Bouhlaika noted that investors are re-evaluating their positions ahead of the critical third-quarter results, which are expected to shed light on the ability of listed companies to maintain profitability amid rising financing costs and slowing activity in certain sectors. He emphasized that market movements continue to be influenced by global interest rate trends and ongoing geopolitical developments in the region.
Bouhlaika indicated that periods of selling pressure could present buying opportunities for long-term investors, describing the current phase as a typical cycle of uncertainty related to interest rate adjustments rather than a fundamental market shift. He highlighted the resilience of the Qatari economy, sustained investment in strategic projects, and the solid financial health of many companies as positive factors underpinning potential market recovery.
The analyst suggested that the outlook for the market depends largely on whether upcoming earnings meet or exceed investor expectations, particularly in the Industrials and Banks and Financial Services sectors, which remain sensitive to interest rates and borrowing costs. Performance across other sectors was mixed, reflecting ongoing selectivity by investors awaiting clearer signals from corporate earnings and the broader economic environment.
Looking ahead, market sentiment is expected to remain closely tied to the results of the third-quarter earnings season, with investor focus sharpened on corporate profitability, revenue growth, and the impact of financing expenses. Strong earnings could reinforce the index, but continued uncertainty about interest rates and regional geopolitical risks may lead to selective trading and volatile conditions in the near term.