Interest rate cuts boost QSE gains: Financial Analyst
The Peninsula
Doha: 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...
Doha: 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 (QNA), 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 emphasised 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.
