Doha, December 08 (QNA) - Qatar Stock Exchange (QSE) index fell by 4.4 percent at the end of the trading week of December, losing 528.4 points and dropping to 11,489 points, under pressure from diverse sectors, especially the banking and financial services sector, which declined by 5.93 percent.

In his readings of the index's performance results achieved by the index in the current week, financial analyst Alaa Al Sheikhly predicted that the index would soon gain momentum as listed companies announce Q4 earnings results.

He said that he expects those earnings to see a boost from Qatar's hosting of the World Cup. He also pointed out that the index will be affected by two key factors: the first one is the decline in energy prices in the global markets, the second one pertains to the reduction of liquidity level in the market, pointing out that the current oil prices that range between $77 to $78 per barrel has haunted the gulf financial markets, considering that the returns of the listed industrial companies are affected by the fluctuations in oil prices.

Al Sheikhly clarified that there was a silver lining to the lack of liquidity, which is that there was no heavy selling. He highlighted the outflows of capital in response to central banks raising rates the reduction in liquidity in the finance market has a positive segment which implies the absence of heavy sales, while the negative part includes the flow out of hot money towards the banking sector due to the rise of interest rates, a situation that will prompt the investors to wait in anticipation of prices decline.

In addition, QSE's weekly report revealed the decline of market value at the end of the weeks trading to reach QR 643.019 billion, compared to its level last week, which amounted to QR 674.692 billion, in addition to recording the value of stock trading about QR 1.953 billion, by selling 489.376 million shares, through concluding 68,796 deals.

(QNA)