By Samir Al Khoury
The Qatar Stock Index has sustained its upward trajectory for the third consecutive week, currently reaching levels surpassing 10,200 points, marking its highest since October 4, 2023. This surge, amounting to approximately 10% since its October 29, 2023, low of 9,296 points (the lowest since July 14, 2020), can be attributed to several pivotal factors.
Key factors driving this notable uptrend include:
- Positive financial performances of Qatari companies in the third quarter, particularly in the banking and real estate sectors.
- Marked increases in trading volumes.
- Foreign investors demonstrating a robust appetite for the Qatari market.
- Substantial demand for banking sector stocks, with a focus on Masraf Al Rayan, Qatar National Bank, Qatar Islamic Bank, and Commercial Bank of Qatar—constituting a significant portion of the Qatari index.
Most of the Gulf currencies are linked to the US dollar. Each US dollar is equivalent to approximately 3.64 Qatari riyals. Furthermore, it’s important to note that the monetary policies of the Gulf Cooperation Council countries are significantly influenced by the monetary policy of the US Federal Reserve, particularly in relation to interest rates. In this context, the Gulf central banks closely align with the Federal Reserve, mirroring any adjustments, be they increases or reductions, in interest rates by an equivalent magnitude.
Hence, it remains to be seen in the upcoming period whether the positive momentum of the Qatari index will persist. This uncertainty is particularly pronounced in light of the ambiguity surrounding the Federal Reserve’s monetary policy. The markets have already factored in the possibility of an interest rate cut next year. Therefore, it is crucial for us to closely observe and assess the implications of this development on the Qatari market, with a specific focus on stocks within the banking sector.
From a technical standpoint, the Qatari Index has surpassed the 50-day moving average at 10,033 points. The next target appears to be breaching the 200-day moving average at approximately 10,311 points, with the ultimate challenge being to reach the psychological milestone of 11,000 points—last achieved in August 2023.
Examining the Relative Strength Index (RSI), which currently stands at 63 points and is approaching the overbought zone, signals positive momentum for the Qatari index. This suggests a potential continuation of the positive trend, reinforcing the index’s strength in the market.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.
Taurex is the trading name of Zenfinex Global Limited, Stochastic Africa SL Ltd, Zenfinex Global LLC, and Zenfinex Limited.
Zenfinex Global Limited is registered in the Republic of Seychelles with registration number: 8428731-1 and is regulated by the Financial Services Authority of Seychelles (license number SD092). Its registered office address is F20, 1st Floor, Eden Plaza, Eden Island, Seychelles.
Stochastic Africa (SL) Limited is a company registered in Sierra Leone with Company Number: SL270319STOCH05271 and is licensed by the Bank of Sierra Leone under license number BSL/SAL/2023 and with the registered office at 148D Wilkinson Road, Freetown, Sierra Leone.
Zenfinex Global LLC is a company registered with the Financial Services Authority in Saint Vincent and the Grenadines under registered number 138 LLC 2019. Its registered office is Hinds Building, Kingstown, Saint Vincent, and the Grenadines.
Zenfinex Limited is a company registered in England and Wales under registered number: 11077380. Authorised and regulated by the Financial Conduct Authority under firm reference number 816055. Its registered office is 4th Floor, 4 Eastcheap, London, EC3M 1AE, United Kingdom.
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