Doha, March 05 (QNA) - The Qatar Stock Exchange (QSE) index closed this week down 3.22 percent, losing 355.9 points to settle at 10,699 points, pressured by several sectors. The insurance sector saw the largest gains, rising 1.1 percent, while the transportation sector experienced the biggest losses, declining 6.39 percent.

Financial market analyst Youssef Buhulaiqa told Qatar News Agency (QNA) that, the QSE witnessed a noticeable decline in the first trading session following the banks holiday, due to investor caution, noting that the market quickly recovered and began to rise again, reflecting investor confidence in the strength of the Qatari economy and its ability to overcome short-term fluctuations.

Buhulaiqa added that QSE demonstrated remarkable resilience, closing higher on both Wednesday and Thursday despite ongoing regional tensions. He noted that this performance reflects the market's ability to absorb geopolitical shocks and focus on the country's strong economic fundamentals.

He pointed out that the Middle East remains at the heart of the global geopolitical equation, not only from a strategic perspective but also due to its direct impact on energy markets and global economic stability.

He explained that financial markets typically react with a temporary decline in stock prices as geopolitical risks escalate, before a reassessment phase begins and new investment opportunities emerge.

The financial market analyst highlighted that despite these challenges, estimates indicate that the impact of any military escalation on economic growth in the Gulf states will likely remain temporary. He added that most GCC countries possess substantial reserves and financial assets that enable them to cope with any short-term disruptions to energy revenues.

Buhulaiqa noted that non-oil sectors benefit from low tax environments, which limits any potentially significant impact on public finances. (QNA)