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.
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