The Qatar Stock Exchange index continued its upward trend for the fourth consecutive week, supported by the decision to reduce interest rates, as it ended the current week’s trading with a rise of 0.63 percent, achieving gains of 65.83 points, to rise to 10,464.15 points, compared to the closing of last week.
In a statement to Qatar News Agency (QNA), financial analyst Tamer Hassan attributed the market’s rise this week to the decision of the Qatar Central Bank to reduce the deposit interest rate at the bank (QCBDR) by 55 basis points to 5.20 percent, reduce the lending interest rate from the bank (QCBLR) by 55 basis points to 5.70 percent, and reduce the repurchase rate (Repo Rate) by 55 basis points to 5.45 percent.
The move came against the backdrop of the US Federal Reserve’s (the central bank) decision to cut interest rates by 50 basis points in one go, for the first time since March 2020, to a range of between 4.75 and 5 percent.
The financial analyst confirmed that the decision to reduce will have a positive impact on the financial markets, expecting an increase in cash flows from bank deposits to them, which will lead to a reduction in the cost of financing and stimulate the activity of companies in various sectors, which in turn will enhance the performance of companies listed on the stock exchange. He expected the general index to rise to 11,000 points, especially since inflation levels in the State of Qatar are acceptable and the operating environment for companies is good, expecting companies to witness growth in their profit levels during the third quarter of 2024. This week witnessed an increase in the stock exchange liquidity levels, reaching 2.118 billion riyals compared to 1.629 billion riyals last week, while the trading volume during the current week amounted to 923 million, 554 thousand and 742 shares, with a number of deals amounting to 65,344 deals in all sectors.
In the same context, the Qatar Stock Exchange is witnessing the implementation of the FTSE Russell review of the results of the semi-annual review of emerging market indices, which will come into effect as of the close of today, September 19.
It is noteworthy that the FTSE Russell review announced included the removal of five Qatari companies from the index of smaller capital companies, namely: Baladna Company, Makhazin Company, Mannai Company, Qatar National Cement Company, and Qatari Investors Group.
The Qatar Stock Exchange index closed its trading session yesterday, up by 57.45 points, or 0.55 percent, to reach 10,464.15 points. During the session, 225 million, 251 thousand, and 253 shares were traded, at a value of 683 million, 390 thousand, and 291.888 riyals, as a result of executing 16,020 deals in all sectors.
During the session, the shares of 33 companies rose, while the shares of 13 other companies fell, and 5 companies maintained their previous closing prices.
The market capitalization at the end of the trading session amounted to 608 billion, 557 million, 16 thousand, and 926.940 riyals, compared to 604 billion, 107 million, 776 thousand, and 198.140 riyals in the previous session.
