Doha: The Qatar Stock Exchange (QSE) index concluded this week's trading with a decline of 1.14 percent, shedding 112.15 points compared to last week's close. This downturn occurred amid broad sectoral pressures, with the Consumer Goods and Services sector experiencing the most significant losses, decreasing by 1.88 percent, while the Real Estate sector saw a rise of 0.65 percent.
According to Qatar News Agency, financial analyst Mubarak Al Tamimi commented on these developments, noting that the QSE index displayed resilience. It traded sideways throughout the week, fluctuating between a high of 9,934 points and a low of 9,746 points, successfully maintaining above the crucial support level of 9,727 points. Al Tamimi identified profit-taking and caution due to geopolitical developments as primary influences on trading activity, though he emphasized that these factors had not altered the index's positive technical outlook, as it held above key support levels.
Al Tamimi further explained that from a technical standpoint, the index had formed a positive pattern with a W-shaped formation, enhancing the likelihood of renewed upward momentum in the near future. This prospect is particularly strong if the index breaks through and sustains above the resistance level of 9,934 points. He added that surpassing this benchmark would signal an important technical advancement, potentially driving the index toward 10,487 points, supported by an improvement in investor sentiment and increased market liquidity.
The analyst also pointed out that any dip toward the 9,532-point level could offer a favorable buying opportunity for investors. Such levels might attract interest from traders and market makers, providing a solid foundation for establishing new positions, especially if accompanied by heightened trading volumes and values. Al Tamimi emphasized that the index's retention above current support zones is indicative of ongoing resilience.
He stated that current profit-taking might be perceived as a standard portfolio adjustment process rather than a shift in the broader market trend, provided that the index upholds its key support levels. Al Tamimi mentioned the upcoming September FTSE Russell index review, expected to take effect soon, as a potential positive catalyst for the market, which could influence liquidity flows and trading in various listed stocks.
In concluding his analysis, Al Tamimi remarked that the technical outlook for the Qatar Stock Exchange index remains cautiously optimistic. He highlighted that the index's ability to surpass 9,934 points would be crucial in confirming the continuation of an upward trend, while maintaining current support levels is essential for sustaining this trend, as the market anticipates potential catalysts from global index reviews and improved liquidity.
Source: Qatar News Agency