Doha:The Qatar Stock Exchange (QSE) index concluded the week's trading with a modest decline of 0.370 percent, equivalent to a loss of 37.47 points, settling at the 10,028-point level. This downturn was influenced by pressure from three sectors, following last week's market close.
According to Qatar News Agency, financial analyst Mubarak Al Tamimi indicated that the QSE underwent a corrective phase during this week's trading as the index neared a crucial resistance level at 10,205 points. This level prompted selling pressure due to profit-taking actions, following significant gains across most market sectors, which experienced growth rates exceeding 10 percent during the week.
Al Tamimi explained that the recent decline represents a natural corrective movement, as several stocks had become overbought after a recent rally. He emphasized that profit-taking does not necessarily indicate a change in the overall market trend, but rather an effort to consolidate gains and establish new buying positions.
He further noted that the general index currently faces an initial support level at 9,919 points, which is a critical technical milestone for the upcoming period. Maintaining this level could enhance trading stability and revive buying momentum. Conversely, falling below the 9,919-point threshold could lead the index to test the next support level at 9,857 points, necessitating careful monitoring of market performance and liquidity flow.
On a different note, Al Tamimi stated that if the general index tests and surpasses the resistance level at 10,205 points, it could target higher technical levels, specifically 10,487 points, followed by 10,719 points. This scenario suggests a potential upward trend, contingent upon sustained buying momentum and improved performance of key stocks.
Regarding market liquidity, the analyst highlighted that the QSE has reached levels not observed for some time, indicating renewed investment interest. Both local and foreign investment portfolios are entering the market, primarily focusing on bellwether stocks and those with significant relative weight in the index. The fact that some stocks have reached their daily upper price limit, or "Limit Up," demonstrates strong demand for certain companies and an improved investor appetite, especially given the week's accomplishments across various sectors.
Source Qatar News Agency