By Samir Al Khoury,
The Qatari main index continues its upward trajectory for the 22nd day in a row, reaching levels above 10,000 points, specifically 10,049 points today. This marks its highest level since March 26, 2024. It has also risen about 10% since the low of May 30, 2024, when it recorded 9,165 points—its lowest level since July 2, 2020—until today’s session. However, it is still down about 7% year-to-date, making its performance the worst among Gulf indices this year. For example:
1. The Saudi Tadawul Index (TASI) has declined by approximately 3%.
2. The Dubai Financial Index (DFMGI) has increased by approximately 0.70%.
3. The Abu Dhabi FADX15 index has declined by approximately 5.00%.
4. The Kuwaiti Premier Market Index (BKP) has increased by approximately 1.00%.
Several sectors have contributed to these recent significant gains in Qatari stocks, most notably the banking sector, with shares of Qatar National Bank and Qatar Islamic Bank constituting a large percentage of the Qatari index.
Markets are closely watching the upcoming release of Qatari companies’ business results for the second quarter of this year, starting next week.
It is worth noting that most Gulf currencies are pegged to the US dollar, with each US dollar equivalent to approximately 3.64 Qatari riyals. Additionally, the monetary policies of the Gulf Cooperation Council (GCC) countries are significantly influenced by the US Federal Reserve’s policies, particularly regarding interest rates. Gulf central banks, including those of Saudi Arabia, the Emirates, Qatar, Bahrain, and Kuwait, typically follow the Federal Reserve’s lead on rate hikes or cuts.
Therefore, we will see in the coming period whether this positive momentum for the Qatari index will continue amid the uncertainty regarding the Federal Reserve’s monetary policy. The markets are currently pricing in two interest rate cuts this year, so we must closely monitor the impact of this on the Qatari market, especially on stocks in the banking sector.
Technically, the Qatari index today managed to cross the 200-day moving average barrier at 10,006 points, indicating an upward trend for this index. The 20-day moving average remains at 9,728 points, serving as a strategic support level.
As for the Relative Strength Index (RSI), it records 79 points, which is in the overbought area, indicating positive momentum for the Qatari Index.
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.
*All trading involves risk.
