DSM index down by 209 points

Qatari stocks fell yesterday in what analysts said was a major correction fuelled by profit-taking by local as well as foreign institutional investors.

None of the 38 traded stocks showed any gains, although individual investors stayed on the market providing tremendous net buying support.

Significantly, the correction, a major one at that, comes ahead of the end of the second quarter (Q2).

The 20-share main index of the Doha Securities Market (DSM) slumped 209 points, or 2.87 percent, to 7, 082 just as June (the close of Q2) is to end in two weeks when listed companies begin reporting their quarterly financials.

“You must remember that global markets also make an impact on the DSM, and it was not a good day for the equity markets worldwide today (yesterday) due to weak economic data,” analyst Thamer Hassan said.

He said the market was recovering a bit faster so a major correction was needed. “We expect an equally faster recovery when Q2 financials of listed entities begin trickling in,” said Hassan.

The insurance counters took the maximum beating (4.56 percent), while the banking and financial services stocks suffered the minimum (2.65 percent).

Zad fell over eight percent, while Qatar Navigation was down by more than five percent. Among other losers were Qatar Insurance, Qatar Islamic Insurance and Commercialbank.