Financial Analyst to QNA: Interest Rate Cuts Boost QSE Gains

Supported by the decision to cut interest rates, the Qatar Stock Exchange (QSE) index ended the current week's trading with an increase of 0.63 percent, gaining 65.83 points, compared to last week's closing, to reach 10,464.15 points. In remarks to Qatar News Agency, financial analyst Tamer Hassan attributed the market's rise this week to the decision of the Qatar Central Bank (QCB) to reduce the deposit rate at the bank (QCBDR) by 55 basis points to 5.20 percent, reduce the lending rate from the bank (QCBLR) by 55 basis points to 5.70 percent, and reduce the repurchase rate (Repo Rate) by 55 basis points to 5.45 percent. The move came against the backdrop of the US Federal Reserve's (the central bank) decision to cut interest rates by 50 basis points in one go, for the first time since March 2020, to a range of between 4.75 and 5 percent. The financial analyst emphasized that the decision to reduce will have a positive impact on the financial markets, expecting an increase in cash flows from bank deposits , which will lead to a reduction in the cost of financing and stimulate the activity of companies in various sectors, which in turn will enhance the performance of companies listed on the stock exchange. He expected the general index to rise to 11,000 points, especially since inflation levels in the State of Qatar are acceptable and the operating environment for companies is good, expecting companies to witness growth in their profit levels during the third quarter of 2024. This week saw an increase in the liquidity levels in the QSE, reaching around QR 2.118 billion compared to QR 1.629 billion last week. The trading volume during the current week reached 923,554,742 shares, with a number of deals reaching 65,344 deals across all sectors. In the same context, the Qatar Stock Exchange is witnessing the implementation of the FTSE Russell review of the results of the semi-annual review of emerging market indices, which will come into effect as of the close of today, Sep. 19. The announced FTSE Russell revie w included the removal of five Qatari companies from the index of smaller capital companies, including Baladna, Makhazin, Mannai, Qatar National Cement Company, and Qatari Investors Group Source: Qatar News Agency