Doha, May 21 (QNA) - The Qatar Stock Exchange index closed this week's trading down by 1.08 percent, losing 113.58 points to settle at 10,379 points compared to the previous week, under pressure from five sectors.

The insurance sector recorded the largest decline at 2.71 percent, while the telecommunications sector achieved the highest gains with a growth of 0.19 percent.

Youssef Bouhlaika, a financial markets analyst, said in remarks to the Qatar News Agency (QNA) that the general index witnessed a decline during the week's trading after rebounding from its lowest levels in about a month and a half, indicating selective buying operations that supported the market and prevented sharp declines.

He expected the general index to continue moving within narrow ranges until after the Eid Al Adha holiday, in light of the absence of strong catalysts and the persistence of caution linked to geopolitical and global economic developments.

Bouhlaika added that the Qatar Stock Exchange recorded volatile and cautious performance this week, amid a delicate balance between optimism over possible political settlements that could ease regional tensions, and ongoing concerns over the repercussions of escalation in the region, rising inflation rates, and borrowing costs on corporate earnings and financial markets in the region.

He noted an acceleration in selling activity by investors during May, amid continued inflationary pressures resulting from geopolitical tensions, in addition to rising financing costs, which has affected investor appetite for equities.

He further added that this coincided with rising global bond yields this week, adding pressure on local equity markets, as long-term yields affected corporate valuations, particularly in markets that rely on high growth rates, prompting investors to reassess their investment positions during the current period.

In conclusion, Bouhlaika said the political and economic uncertainty remains the key factor influencing market trends, especially amid ongoing tensions and investor anticipation of developments in shipping routes and energy supplies through the Strait of Hormuz, given their direct impact on regional economies and markets. (QNA)