Doha, October 15 (QNA) - The Qatar Stock Exchange (QSE) index wrapped the current week with a 2.17 percent decline, shedding 195.44 points from the previous week's close to settle at 8,810 points. The decline, which affected all sectors, marks the fifth consecutive weekly loss.

Financial analyst Mubarak Al Tamimi told Qatar News Agency (QNA) that the QSE had faced notable selling pressure this week, mirroring downturns in global and regional financial markets. This was compounded by ongoing geopolitical tensions, both regionally and globally, which dampened investor sentiment and prompted a more cautious approach to trading.

The analyst explained that the QSE's general index remains influenced by the prevailing market uncertainty. He noted that the index is approaching critical technical levels that warrant close monitoring; specifically, the 8,764-point mark serves as a pivotal support level. A breach of this level could push the index toward its next support level at 8,664 points, should the selling trend persist and pressure on bellwether stocks intensify.

Al Tamimi further indicated that the index's trajectory in the coming period will depend on its ability to hold steady at these support levels, as well as on geopolitical developments and trends in global markets. He noted that a failure to maintain these support levels could prolong the current correction, whereas a stabilization in trading activity and a return of liquidity could pave the way for a potential rebound.

Regarding lower price levels, the analyst explained that the 7,997–8,704 point range serves as a potential technical zone to monitor should the decline persist, though this does not necessarily confirm a definitive sideways trend. He noted that this area might attract investors looking for opportunities to enter the market gradually, provided there are signs of market stabilization and an easing of selling pressure.

As for his outlook for the coming period, the analyst anticipates that the correction phase in the Qatar Stock Exchange will likely continue. He highlighted geopolitical developments and global market volatility as key factors that will dictate the index's direction. He emphasized that navigating the current environment requires a focus on support and resistance levels, as well as the performance of bellwether (leading) stocks; price declines alone should not be taken as sufficient evidence that an investment opportunity is attractive.

Al Tamimi concluded by noting that the market is in a sensitive phase, necessitating caution and a selective approach to investment opportunities. He added that any recovery in positive momentum will depend on the index's ability to hold its ground, a return of buying liquidity, and a cooling of geopolitical tensions. Conversely, should external pressures persist and key support levels be breached, the correction phase could extend further over the coming weeks. (QNA)