QSE index maintains technical support levels: Analyst

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Doha, Qatar: The Qatar Stock Exchange (QSE) index concluded this week’s trading losing 298.190 points, or 2.88 percent, to stand at 10,049 compared to last week’s closing, under the pressure of six sectors.

In remarks to Qatar News Agency (QNA), financial advisor Ramzi Qasmieh said that the QSE index was able, during the session at the end of the current week and the beginning of February, to maintain its cohesion above the level of 10,000 points barrier, which represents a significant support point from a technical and psychological standpoint for the general index.

He pointed out that the levels reached by the QSE index during today’s session represented its lowest level since last Dec. 14, as the index lost 6.85 percent during January.

He indicated that the leading stocks are still putting pressure on the index, as today’s session was affected by the decline in Masraf Al Rayan shares, which lost 2.13 percent, and QIB’s shares, which lost 1 percent, in addition to Milaha shares, which fell by 0.8 percent. He noted that the general index, with the decline recorded in today’s session, has declined weekly by 2.88 percent and since the beginning of the year by 7.21 percent.

He said that various sectors witnessed a decline during the current week, except for the insurance sector, which rose marginally by 0.07 percent, while the financial sector was the most affected sector with a decline of 3.9 percent, followed by the transportation sector with 3.3 percent, and the communications sector with 1.6 percent.

The financial advisor urged investors to avoid the speculative approach, and to be cautious in selecting stocks, especially in light of a market that has taken a downward trend, stressing the need to consider fundamental analysis factors, companies’ distributions and profits, and the strength of their financial position.

He said that the market was not affected by the fixation of interest rates, given that investors were anticipating this decision, and therefore the decline in the QSE index resulted from internal factors, hoping that the performance of the index will improve in the coming period, especially since the macroeconomic indicators are all positive.

He added that the previously mentioned monthly decline in the general index came as a surprise to the expectations of most investors, which may constitute an opportunity to adjust positions and make new ones, especially for those companies that announced lucrative financial dividends.

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