Qatar: QSE edges higher amid energy optimism and investor caution

DOHA: Qatar’s stock market closed the week on a cautiously positive note, buoyed by a rebound in energy prices and selective buying in blue-chip stocks, though investor sentiment remained tempered by concerns over global economic headwinds.

The Qatar Stock Exchange (QSE) benchmark index gained 1.2 percent over the week, settling at 10,530 points. Trading volumes were steady, with energy and banking stocks providing the main lift, while real estate counters saw mixed performances.

The rally came as Brent crude prices climbed back above $95 a barrel, supporting optimism in Qatar’s energy-driven economy. Investors were particularly encouraged by strength in QatarEnergy-linked entities, which analysts say continue to underpin market confidence despite global uncertainty.

“Oil and gas are the backbone of Qatar’s economy, and when prices strengthen, the QSE tends to follow,” financial strategist Mohammed Kareem told The Peninsula. “We have seen investors re-enter the market this week, especially in large-cap energy and banking stocks, because they see them as safe havens in a volatile global environment.”

Banking shares also gained ground, led by Qatar National Bank, amid expectations of stable earnings in the third quarter. The financial sector added 1.8 percent over the week, offsetting declines in some industrial names.

Kareem noted that the resilience of the banking sector has provided a floor for the market in recent months. “Liquidity remains strong, and banks are well-capitalised, which reassures both local and foreign investors,” he said.

On the other hand, the real estate sector continued to be a “drag” on the index, the expert noted. “Investors are still cautious about the market, especially with so many projects coming online post-World Cup,” Kareem explained.

Foreign investor flows were another highlight, with net inflows totaling QR200m for the week, signaling renewed interest in Qatari equities. Analysts attribute this partly to the country’s continuing inclusion in major emerging market indices, which helps attract global funds.

“Foreign participation is a key stabilizer for the QSE. Even though global markets are jittery because of inflation and central bank policies, Qatar’s fiscal stability and energy surplus make it an attractive play,” he said.

However, traders are expected to focus on third-quarter earnings reports, which begin rolling out later this month. Energy sector profits are forecast to remain robust, while banks are likely to post steady results. Real estate and retail, however, may continue to face pressure.

The financial analyst stressed that “Earnings season will be the next big driver. If results meet expectations, we could see the index push toward the 10,800 level. But if global markets take another dip, Qatar won’t be completely
immune.”

Overall, analysts suggest that the QSE’s performance reflects a balance of optimism around Qatar’s energy-driven growth story and caution over external risks such as US interest rate hikes, China’s economic slowdown, and persistent geopolitical tensions.

“Qatar’s stock market is in a consolidation phase. The fundamentals are solid, but investors are keeping one eye on oil prices and another on global risk factors. That’s the tightrope we are walking right now,” Kareem added.

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